DISRUPT OR BE DISRUPTED

Mark LewisSenior Advisor

Blog: blog.valtech.dk Twitter: @mmark

“The iPhone is a nicheproduct”

Olli-Pekka Kallasvuo, CEO Nokia, 2008

DID THEY NOT KNOW – OR CARE – ENOUGH ABOUT WHAT WAS HAPPENING AROUND THEM?

The key considerations are whether the performance attributes implicit in the innovation will be valued within the networks already served; whether other networks must be addressed or new ones created in order to realize value for the innovation.

Clayton Christensen, The Innovators Dilemma, 1997

= THE EXTENDED VALUE CHAIN.

IT’S (ALMOST) ALL ABOUT CUSTOMER CENTRICITY.

SO WE NEED TO STAY AHEAD OF THE S-CURVE.

Technology life cycle: The S-curve

Time or engineering effort

Pro

duct

per

form

ance

“Think of yourself like a consumer technology company”Curt Garner, CIO Starbucks, 2013

TOO LITTLE, TOO LATE

Surfing the S-curves

Time or engineering effort

Pro

duct

per

form

ance

1st technology

2nd technology

3nd technology

WITHIN A VALUE NETWORK, EACH FIRM’S PAST CHOICES OF MARKETS DETERMINES ITS PERCEPTIONS OF THE ECONOMIC VALUE OF A NEW TECHNOLOGY.

CEOs consider technology the single most important external force shaping their organization’s future. Likewise, the most common barrier to agility and change is legacy technology and systems.

Source: The Customer-activated Enterprise – Insights from the Global C-suite Study, IBM 2013

Macro-perspective: Technology paradigms

Source: Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages, Carlota Perez, 2002

The major transformation results, not from one technology or a set of them, but from all industries innovating in convergent directions. That’s what creates the synergies and the self-reinforcing loops that make demand dynamic for all.

Carlota Perez, The New Technological Revolution, 2013

TECHNOLOGY TRENDS

Source: Hype cycle, Gartner 2014

WEARABLES

CONNECTED HOME

3D PRINTING

NEAR FIELD

COMMUNICATION

CONNECTED CARS

MOBILE HEALTH

INTERNET OF

EVERYTHING

50 billion connected things

“Fixed” Computing(You go to the device)

Mobility / BYOD(Device goes with you)

Internet of Things(Golden age of device)

Internet of Everything(People, Process, Data, Things)

1995 2020

200M

10B

50B things

ALL THOSE NEW TECHNOLOGIES CONNECT THE BUSINESS WITH THE CUSTOMER.

JUST AS THEY CONNECT THE PHYSICAL WITH THE DIGITAL.

DIGITAL IS COMING FULL CIRCLE.

AND THE KEY DRIVER IS THE CUSTOMER EXPERIENCE.

IT’S THE DESIGN AND THE INTERACTION.

THIS INVOLVES TRUE OMNICHANNEL.

It’s all about the synergies

Often research items online, but prefer to buy in-store

Often look at items in-store, but usually purchase online

Have researched an item online, then viewed it in-store, and purchased online

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Source: Statista, 2013

Share of respondents

WEBROOMING: 69%SHOWROOMING: 46%

Reasons to ‘webroom’

Don't want to wait for delivery

Will ask the store to price match

Like the option of being able to return the item to the store if needed

Want to check an item's availability online before purchasing in-store

Like to go to store to touch and feel a product before buying

Don't want to pay for shipping

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Source: Merchant Warehouse, 2014

Share of respondents

MOBILE IS THE KEY

Mobile share of internet traffic is surging

2010 2011 2012 2013 2014 2015E0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Global Mobile Traffic as % af Total Internet Traffic

Source: StatCounter Global Stats, 2014

MOBILE HAS CHANGED HOW CONSUMERS INTERACT WITH RETAIL.

1 IN 3 SHOPPERS USE THEIR SMARTPHONES TO FIND INFORMATION INSTEAD OF ASKING EMPLOYEES.

Source: Mobile In-Store Research, Google 2013

In-store mobile use

Search engine Store websites Brand websites Store apps Deal websites0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Source: Mobile In-Store Research, Google 2013

In 2015 the gap will increase between marketing leaders and ebusiness professionals who will re-engineer their business to deliver valuable mobile moments and the majority of executives who will continue to consider mobile as just another digital channel.

Source: Predictions 2015: Most Brands Will Underinvest In Mobile, Forrester 2014

Source: Digital Impact on In-Store Shopping, Google/Ipsos MediaCT/Sterling Brands, 2014

#latergram?

In other words..

• Use mobile to transform the Customer Experience.

• Anticipate the needs and engage at the right moment – the mobile moment.

• Mobile is not a destination but an always-on experience. And it’s not a smaller version of the desktop experience.

• Seek for mobile to transform business models both in cost structure and revenue generation.

Now, you can just take out your smartphone and shop straight from the fitting room, browse customer reviews or just jump online for fun. It’s now easier to access with free customer Wifi.

GAP press release, 2014

MOBILE WINE MOMENT

If you don’t cannibalize your own business, someone else will do it for you. If you do not serve new consumer needs, your competitors will.

DISRUPTING VALUE CHAINS

We are going to unveil the Tesla home battery, the consumer battery that would be for use in people’s houses or businesses fairly soon.

Elon Musk, Tesla CEO, 2015

Across the value chain

DISRUPTION OF EVERYTHING

Single point in value chain

Beautiful new user interfaces – aided by data-generating consumers – helping make data useful and challenging non-cloud business models.

PROVIDE THE PLATFORM, OWN THE CUSTOMER EXPERIENCE.

Economies of Scale(production)

Economies of Experience(consumption)

Industrial Design(static)

Service Design(dynamic)

ORCHESTRATE THE CUSTOMER EXPERIENCE.

Prerequisites include..

• Data • Identification• Consent!• Consolidated systems• Customer journey• Experience strategy• Consolidated channel views• Re-humanization of touch points

THE AUDI EXPERIENCE

KEEP YOUR FRIENDS CLOSE, BUT YOUR ENEMIES EVEN CLOSER.

IS YOUR VALUE CHAIN IN DANGER OF BECOMING PART OF AN ALTERNATIVE VALUE NETWORK?

ENTER THE COLLABORATIVE ECONOMY.

COMPANY AS A SERVICEMOTIVATE A MARKETPLACEPROVIDE A PLATFORM

FREE PATENTS

Source: Collaborative Economy Honeycomb, 2014

COLLABORATION IS THE FINAL STAGE IN A DIGITAL TRANSFORMATION. OR MAYBE JUST THE NEXT S-CURVE?

Thank youThank you