asae tech conference 2012 closing keynote on disruptive tech

The Challenges and Opportunitiesof Business in the Disruptive Tech EraClosing Keynote by Dion Hinchcliffe (@dhinchcliffe)

® 2012 Dachis Group 2

IntroductionDion Hinchcliffe

• ZDNet’s Enterprise Web 2.0• http://blogs.zdnet.com/Hinchcliffe

• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise

• Chief Strategy Officer• http://dachisgroup.com

• mailto:[email protected]

• : @dhinchcliffe

Spring 2012

http://blogs.zdnet.com/Hinchcliffe

http://blogs.zdnet.com/Hinchcliffe

http://www.ebizq.net/blogs/enterprise

http://www.ebizq.net/blogs/enterprise

http://hinchcliffeandco.com/

http://hinchcliffeandco.com/

mailto:[email protected]

mailto:[email protected]

® 2012 Dachis Group

To continue this discussion (and for slides):

3

Hashtag: #tech12 gh1

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group

The good news: Technology is driving business productivity

4


Dachis Group

But is this coming from traditional IT?

5


Dachis Group

Is IT even leading innovation today?

6


Dachis Group

Yet 60% of CIOs believe they should be driving growth and productivity.

7

Source: Deloitte Survey, 2011


Dachis Group

But technology change is happening faster than ever before

• A tsunami of new mobile devices and technologies• A vast wave of social media• The rumbles of cloud computing and SaaS• The shift to DIY• A flood of Big Data• Consumerization!

8


Dachis Group

A perfect storm of technology change

9


Dachis Group

Happening almost all at once

10


Dachis Group

Pervasive disruption is here...


Dachis Group

12

IT

WorldWorkers

Another Way ofLooking At All This


Dachis Group

New Digital Engagement Channels Are The Focus

13

And wherethe value is...


Dachis Group

The channel shift has been global

14

From: Social Business By Design, 2012

1.3 billon

people


Dachis Group

Yet businesses are still fairly immature with digital

Webinars

social mediaP2P video

online video

direct mailmobileapps

Competent Maturing

Immature

cloud

big data gamification


Dachis Group

Is all this change worth it?Life Expectancy of S&P 500 Company Pace of Technology Change

Human Population Growth


Dachis Group

Key data point #1: Mobile

• Smart mobile devices outshipped PCs in early 2011

• Tablets are expected to on par with PCs by 2015

• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs

• Global mobile data going geometric is going to be the largest challenge to growth and use

• App stores are creating all new conduits between IT suppliers and workers

17


Dachis Group

Mobile Internet Ramping Up Faster Than Desktop Internet by 5x

Source: Mary Meeker, Morgan Stanley

® 2010 Dachis Group. Confidential and Proprietary

Mobile Business Strategy | June 2010

Channel Fragmentation Is Now The Norm

19

400 social networks with over 1 million users = aggregate audience of about 900 million

2 billion mobile Internet users + 100 millionnext-gen smart phone users across hundreds of device types

Have Become The De Facto Primary Channels for Customer and Worker Engagement

+


Dachis Group

The Risks of Inaction


Dachis Group

Opportunity - The Stories

• Augmented Reality • Real-time Translation• The “Taxi” Button• Multi-point Video Conferencing• The CRM “lite” app & “walking the line”• Business intelligence


Dachis Group

The Smart Mobility Lesson

•Mobility isn’t just about computing that can move around

•It’s a fundamental re-invention of computing

•All new possibilities now exist

•We must reinvent our businesses around what these new platforms make possible


Dachis Group

Why Smart Mobility is qualitatively different

• Sensors (and lots of them)• Always connected• Location awareness in 3D space• App stores• Long battery life• Always on• Touch-based interfaces• Voice control• New operating systems


Dachis Group

The Take-Aways for Mobile

• Mobile first, mobile apps, on any device (BYOD, BYOA)

• Build the “button” for your business• Enable customers and workers to self-

service with apps and data• Rethink business solutions

for what mobile devices are uniquely capable of

• And do it quickly, though you do have a (small) window of opportunity to learn

Do this and avoid smart mobility


Dachis Group

Key data point #2

• Social is now the dominant form of Internet communication on the planet

• Enterprises are 2-4 years behind the rest of the world.

• Yet data shows that revenue of social businesses is 20+% higher on average. Profitability is better too.

- Source: McKinsey and Frost & Sullivan

25

The Adoption Rates of E-mail, Social Networks, and E2.0

20112006

1B

750M

500M

250M

2007 2008 2009 2010

Sources:

Glo

bal U

sers

projected

ConsumerSocialNetworks

E-mail

100%

75%

50%

25%

Enterprise 2.0

comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC

high estimate

low estimate

Per

cent

of

Ent

erpr

ises


Dachis Group

Hundreds of public social networks...

26...channel fragmentation


Recent Examples of Social Media Transformation

27


Dachis Group

Source: Alcatel-Lucent

Status as of December, 2011


Dachis Group


Dachis Group

21% increase in bottom line in Q4 2011


Dachis Group

Legal Industry: Case Study

• Roberts & Durkee• A Florida based law firm

specializing in product liability, construction defects & commercial & insurance litigation

• Wanted to get the word out about the 2001 China toxic drywall situation

• Employed a sophisticated multi-channel social media outreach program

• Social media discussions of the issue led to high SEO and stream of prospects needing help

• Led to over hundred major new cases in a short time

• “We get about half of our new cases through our blog.” - David Durkee, Managing Partner

“We have a very specific, very educated group of people who are going through the biggest crises of their lives, all with the same needs, all needing the same information… and I needed to be able to get that information out in public very quickly.”


Dachis Group

Organizations that extensively use social media have 1.6 times higher profit growth.

-Frost and Sullivan


Dachis Group

Results for non-profits as well


Dachis Group

Investments are still nascent for non-profits

• 98% have Facebook page with average community size of over 8k fans.

• Average Facebook and Twitter communities grew by 30% and 81%, respectively.

• Average value of a Facebook Like is $214.81 • 73% allocate 1/2 a full time employee to

managing social networking activities. • 43% budget $0 for their social networking

activities. • The top 3 factors for success are: Strategy,

prioritization, dedicated staffBlackbaud Survey, 2012


Dachis Group

Fully social organizations get outsized benefits

35

Source: 2011 McKinsey Web 2.0 Survey


Dachis Group

The biggest challenge: Engaging at scale

36


Dachis Group

The Cloud Is Increasingly Subversive

• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people

37


Dachis Group

A new mindset has arrived: Consumerization

• “It’s not so hard, I can do this myself.”• “There’s an app for that.”• “I’ll just install this myself.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.”

38

Simple Fast Easy

And WorksThe Way

They Want It To

DIY


Dachis Group

A tidal wave of data

• 80-90% of IT information is not accessible

• The amount of information today is just a trickle compared to what it will be in 2-3 years

• It will require all new technologies and skills that IT departments don’t have

• Google Search and Analytics has taught all of us how easy it should be

39


Dachis Group

Our information landscape is now measured in millions of exabytes

• Social ecosystems are largely responsible today.• Soon it will be sensors that are the dominant data

source.• The good news: Information is no longer

submerged.• However, it is increasingly becoming an onslaught.

40

1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes

VisibleKnowledge Us


Dachis Group

“Information overload is not the problem. It’s filter failure.” - Clay Shirky

41


Dachis Group

42


Dachis Group

Getting value from Big Data

• Obtain simple, easy to use business intelligence tools anyone can use

- Don’t forget Google is a big data app• Should be cross silo• Must integrate internal

and external data• Must provide actionable business-level insights,

not just raw stats• Some existing BI tools can do this• Then “Moneyball” your business processes• But brand new services will typically bring this to

your organization

43

Last year, WiseWindow, a syndicated data provider, provided its real-time social media sentiment measurement technology, Mobi, across Bloomberg's network of 300,000 desktop terminals.The Story:

The Motivation:

WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sources are truly predictive of an industry's stock prices." Their social data analysis was found to boost investment returns by over 30% annually.

Industry: Finance

In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter turned out to be the first and richest source of data, even over the official U.S. Geologic Survey.

The Story:

The Motivation:Many visualizations have been created to show how the information about natural disaster (see the Wall Street Journal example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.

Industry: Disaster Management

T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media.

The Story:

The Results:The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.

Industry: Telecommunications

Source: Financial Times


So. How Do We Get There?

47


Dachis Group

For IT, tech change today is nearly unsustainable

48


Dachis Group

Rethinking tech adoption

• Ignoring technology change isn’t the answer

• Maintaining backlogs isn’t the answer• Giving up isn’t the answer• Proceeding in the same direction isn’t the

answer• Letting everyone do whatever they want

isn’t the answer

• Should we look at new models for IT?

49


Dachis Group

Facing Reality:IT is becoming pervasive and user-driven

50

• In 2000, only 10% of IT was unsanctioned or outside of central control

• Today that’s 30% and climbing quickly.

2000 2010

CoIT

TraditionalIT

2013


Dachis Group

We Must Become Resilient to Constant Change

51

There is great economic and social value in achieving this (in pink above)


Dachis Group

How do we design for loss of control?

• “Make change an integral function. Native.” - JP Rangaswami

52

growthrefinement

disruptionrenewal

cycles ofchange

frequentadaptivecourse

corrections

Dachis Group

The Future of IT: Consumerization & Cooperation

CoIT

Technological Disruption

Lineof

Business

ITDept.

Ente

rpri

se E

volu

tion

The Business/ITDivide

Shadow IT Adoption

Consumer Tech

Cloud Computing/SaaS

Social Computing

Next-Gen Smartphones

differing priorities

change backloglack of alignment

unlike competencies

App Stores

• Broad enterprise uptake of consumer tech• Business-led solutions with IT support• Disruptive software distribution models• IT as enabling business infrastructure• Exponential increases in apps/devices• Decentralized governance

profit center vs. overhead

control vs. progress

narrowinggap

pressure tochange

Common Ground

• Consumerization of the workplace

• Rise of shadow IT (10% ten years ago, nearly a 3rd today)

• SaaS makes enterprise cloud apps just a URL away

• Smartphones the new “IT dept in your pocket”

• Tech savvy business users leading the charge with their own vision

Dachis Group

Getting There• Option #1: Don’t change. New tech will

route around you.• Option #2: Deliberately give up all

non-essential control. - But make it secure and safe.• Empower workers and business partners on the edge:

It fundamentally changes what’s possible• Give everyone simple, easy to understand rules of

CoIT engagement for social, mobile, and cloud.• Lay the foundation for managing and governing

10-100x more IT and data.• Throw out the traditional IT playbook & go “emergent.”• Identify CoIT skills, then cultivate or hire for them.• Become a change agent and an IT revolutionary. You

probably won’t have your job in it’s current form long anyway.

Thank you


Dachis Group

Also See: Social Business By Design

• Published May, 2012• From John Wiley & Sons• The definitive management

strategy guide and handbook on social business.

• Explores major real-world successes and how to emulate them..

• The most complete and business-focused statement on what social business is and why it’s strategically vital.

• Recently #1 in Amazon’s Hot New Releases

• Companion Web site at

56

http://socialbusinessbydesign.com



asae tech conference 2012 closing keynote on disruptive tech

Technology

dachis group opportunity

dachis groupis

dachis grouphappening

creative commons

dachis groupyet businesses

dachis groupkey data

dachis groupthe channel

dachis groupthe good