4. EMERGING DIGITAL ECONOMY
Healthcare crowdfunding platform Watsi
grabs $1.2M from Tencent and more
Bitcoin might fail but the blockchain is
here to stay - the internet of value
Look into my Eyes: Iris-Scanning
Smartphone Unlock
Virtual Drift: Real Driving Experience in
Virtual Reality
Is the IPFS (InterPlanetary File System)
going to re-architect the Internet?
Tesla Model S: Owners Hack their Cars
China’s First “Cloud Hospital”: Alibaba
with Xi’an International Medical Investment
Is Uber going to disrupt the entire on
demand economy?
Facebook vs. Twitter vs. Snapchat:
who will win the News Wars?
Quantitative Trading for everybody?
6. • Any product owned can be converted to resource
• Any resource can be shared
• Any shared resource can be provided as a service to
increase the utilization
• Aggregators/platform of services becoming billionaire,
cutting the line between product suppliers and
consumers
• It’s not a product game anymore, it’s about product+
service + ecosystem
DISRUPTION
8. PARADIGM SHIFT
Paradigm Shift!
1 : N mass consumption !
Analog World !
Digital Customer Priorities!
Let me Choose
and Decide!
Transform!!
1 : 1 customer relation!
Digital World ! I want to Share
and Connect!
Know Me
Anywhere!
9. 1. NETFLIX’S INFRASTRUCTURE EVOLVEMENT
2015
10.2008
Started online
video streaming
9,2 mio
2008
Subscription#
06.2013
34,2 mio
Announced
OpenConnect
Turned from IBM to
public cloud (AWS)
16,3 mio
11.2010
Picked Akamai as
primary CDN
14 mio
03.2010
Ended all agreements
with CDNs
12.2013
41,4 mio
Cloud technology should be acommodity. We stopped buildingour own data centers.
“
”- Adrian Cockcroft Chief Cloud Architect, Netflix
We just outgrew the ability to
buy the public capacity. We’re
big enough that we need to do
it ourselves.
“
”- Adrian Cockcroft
10. 2. TESLA’S EVOLVEMENT
20152004 2005 20082007 2009 2010 2013 20142012
07.2003
founded by Martin
Eberhard & Marc
Tarpenning
2003
Investment$
+515 mio
Strategic partnership with
Daimler AG +50m$;
US Gov loan +465m$;
IPO +26mio$
“ ”
- First american car company IPO since Ford in 1956
06.2010
+26 mio
IPO
Building networkk
of charging stations
FIRE
2013
delivered its
28500 Model S
07. 2014
Serie B
+13 mio
02.2005
Unveiled
first Roadster
+40 mio
07.2007
introducing
Model S
Total 70 mio
06.2008
Serie A by Elon
Mask
+7,5 mio
02.2004
11. 3. iQiYi’S PROJECT “GREEN MIRROR”
In average,the Fast Forward
and Rewind function is used at
least once for each video view.
“
”- Xing Tang, CTO, iQiYi
? What does it mean for a VoD site which has 4.3 billion monthly VV (video views)?
How to get some values out of these “meaningless” statistics?
So What?
For end users:
Automatic trailer generation
Condensed version of TV series with
user profile variants
For producers:
More favorable performers
More favorable plots
For advertisers:
Better place for advertising implantation
00:00
02:00
04:00
06:00
08:00
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42:00
44:00
46:00
48:00
50:00
52:00
54:00
56:00
58:00
60:00
timeline
FocusIndex
!
Enhance the video player to record every single user click
Aggregate the statistics and map to each second of certain video clip
“Focus Index” - Lower value means more users skipped that segment
“Man From Star”, Episode 3. HB Entertainment, South Korea
12. Externally
• Transparency is killing any non-value-add component within a
value chain and at the same time creating new businesses
• Access to seed funding has never been more possible
Internally
• “For traditional industry, actively transforming = suicide, not
transforming = waiting to die”?
• “From oil lamp to electric bulb is not an incremental
improvement”, success of the past is the biggest load to
carry
GAME IN FOR EXCELLENCE
13. Dimension Traditional Industry Digital Natives
Funding Weak High to extrem
Resource allocation short-term project based full throttle from day one - success or
failure
Approach to timing make money ASAP grow, conquer, secure mkt pos and
then monetize
Scalability structurally limited designed and built to scale
Customer Relations insufficient sets new standards
Agility barely exist MVP
Hierarchy/Org Chart complex & overlapping flat networking style
Attitude towards risk & failure little incentive to try & no tolerance for
failure no risk no fun
Sense of competition blinded by own success win versus the rest of the world
Production constrains heavily regulated nothing to care about
CRITICAL LEVERS FOR TRANSFORMATION
15. • What counts in a mesh era is not physical PoS or online
traffic anymore?
• Who controls the touch points to your customers today? and
tomorrow?
• What do you do to exceed your customers’ expectation?
• How relevant are you today to a 15 years old?
• Who are your ecosystem of choice?
• How well are you helping your ecosystem to grow?
1. WHO OWNS YOUR CUSTOMERS?
16. • How fast can your organisation learn?
• How fast can your product or services adapt to changes?
• How much does it cost you to scale?
• Does everybody has the same understanding of the threats,
opportunities and direction to move?
• Does your management team have the courage of
consistently cannibalise your own core businesses?
• What do you do to attract the right talent?
• How fast can you allocate resources to accelerate?
2. HOW FAST ARE YOU?
17. • It’s not about internet+ - it’s about building your growth engine
for the future
• It’s not only diversifying - it’s about riding on the global vectors
• It’s not just securing revenue - it’s about building monopoly
position step by step
• It’s not just about data - it’s about replace hierarchy, title and ego
in product decisions
• It’s not just about technology - it’s about your capability to
experiment, fail often, fail cheap and to scale fast
• It’s not an one off effort - it’s a never ending journey of learning
3. TYPICAL TRAPS
19. 7 HABITS 1/2
Source: The seven habits of highly effective digital enterprises, McKinsey May 2014!
Be unreasonably aspirational!
• Make someone accountable at board level !
• Create stretch vision!
• Measure digital value!
Acquire new capabilities!
• Buy scarce talent en masse!
• Hire for digital skills, not industry experience!
• Move into adjacent markets!
Ring fence and cultivate
talent!
• Protect digital talent from “business as usual”!
• Don’t rely on existing HR models!
Challenge everything!
• Don’t accept historical norms!
• Question status-quo!
• Cover every function, product, BU, location!
20. Source: The seven habits of highly effective digital enterprises, McKinsey May 2014!
Be quick and data driven!
• Continually evolve your value proposition!
• Embrace live testing!
• Create a data-based view of each customer!
Follow the money!
• Create a value oriented zero-based tech budget !
• Invest across the value chain!
• Scale success rapidly!
Be obsessed with the
customer!
• Learn from every interaction!
• Relentlessly evolve, improve customer experience!
• Leaders of successful digital businesses know all of these habits!
• The real innovators will learn to excel at all seven of them!
• Doing so requires a radically different mind-set and operating approach!
7 HABITS 2/2
22. 1. MUST DO HOMEWORK
Best in Class Industry Example!3 Levers to mater!
Easy adjustment and support of new
products / biz models by Lego-alike
technology architecture
More transactions by offering one payment
service in all offers!
User growth by minimizing usage hurdles for
an integrated product world via SSO1) access!
1) SSO = single sign on!
Technology Engine!
Money "
Flow!
User "
Journey !
23. 2. FOOD FOR THOUGHTS
• View the 24h a day from an end user pov;
• view the services from human needs and family life cycle
pov;
• Focus & simplify - what do you NOT do?
• Take care of the old - ageing population services
• Take care of the young - millennials education
