digital transformation in automotive
DESCRIPTION
Jo Caudron's presentation about Digital Transformation in automotive for Autobuzz, at "Huis van de automobiel". It was about all the disruption that is happening around us, which affects every sector, including automotive, and how we can deal with it. Who will stand up against the digital excellence of Tesla?TRANSCRIPT
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Digital transformation: !
the impact of digital disruption on your world
!!
AutoBuzz, September 2014
[email protected] / @jcaudron / +32 475 43 80 98
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Out Now!
• www.digitaltransformationbook.com
• English version available now
- Hardcover book
- eBook
• Dutch version coming early October
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Jo Caudron
Digital Consulting Firm
Social Media Campaigning Platform
Dado Van Peteghem
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@jcaudron
• a digital consulting company
• founded in 2009 by Jo Caudron, currently we are 6 consultants
• our mission is to help you find a new balance between the certainties of your traditional business and the opportunities of innovations in (digital) media
• our scope is everything in the digital space, with focus on social, mobile, tablets, location, connected TV, new radio, ...
• We work for large European clients
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@jcaudron
Our Field of Activities
!Digital Transformation Modeling:
Digital impact on traditional communication, media, business, ...
Online Social
Mobile & Tablets
Future Media & Marcomm
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@jcaudron
Smile, you’re in a crisis ;-)
The future is about permanently dealing with change and going in and out of moments of crisis. !Are you ready to deal with this in your business context?
Digital Transformation
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Digital Transformation is really happening
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@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The Business
Digital (at the sideline)
Digital in the core
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@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The BusinessDigital (at
the sideline)
From ...
The Business
Digital (at the sideline)
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@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The BusinessDigital (at
the sideline)
Digital in the core
From ...
The Business
Digital (at the sideline)
Digital in the core
Digital in the core
Digital in the core
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@jcaudron@jcaudronDigital Transformation
TV
Rad
io
Prin
t
Billb
oard
s
DM
Dig
ital M
edia
From ... ... to
Sale
s
Mar
ketin
g &
Com
mun
icat
ion
Serv
ice
& S
uppo
rt
HR IT
PR &
Ext
erna
l Com
mun
.
R&
D &
Ent
erpr
ise
2.0
Digital Transformation
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@jcaudron@jcaudron
Do you accept...?How big should CHANGE be?
In order to change the world?
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Kodak Stock Evolution
1988 2000 2002 2004 2006 2008 2010 2012
Digital Photography
Iphone
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1.750
1.500
1.200
1.000
750
500
250
0
Jan 2007 Jan 2008 Jan 2009 Jan 2010
175
150
125
100
75
50
25
0
Blockbuster Netflix
Blockbuster Versus Netflix (source: CNBC)
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@jcaudron@jcaudron
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@jcaudron
Waves of Digital Transformation
1995+ !Music Photography Video Rental …
2010+ !Print Media TV Travel …
2015+ !Retail Healthcare Automotive Education …
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@jcaudron
The rollercoaster and the canary in the coalmine
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7 metaphors to understand
the impact of change
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The Glass House
The Package
The Frog
The GatekeeperThe Traveller
The Participant
The Cyborg
THE WHEEL OF CHANGE
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Transparency Closeness
Responsiveness Speed / Agility Authenticity
Accountability Bi-directional Humanization
The Glass House
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Transparency Closeness
Responsiveness Speed / Agility Authenticity
Accountability Bi-directional Humanization
The Glass House
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Transparency Closeness
Responsiveness Speed / Agility Authenticity
Accountability Bi-directional Humanization
The Glass House
148K
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Tesla shares its patents
Transparency Closeness
Responsiveness Speed / Agility Authenticity
Accountability Bi-directional Humanization
The Glass House
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Transparency Closeness
Responsiveness Speed / Agility Authenticity
Accountability Bi-directional Humanization
The Glass House
The relationship is changing
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
Angry BirdsTwitter,
Newspaper Website
CNN online / app
Blogs
Vertical sites and specialties portals
Yelo App Boxee
Spotify + Metafy
Sporza.be
LinkedIn, Monster, ...
eBay
Pinterest, blogs
Weather Pro (iPhone)
Traffic: Inrix + iCoyote (iPhone)
Digg.be
Twitter, Facebook
RSS
Breaking news
In-depth analysis
Services
Weather
Classifieds
Jobs
Sports
TVFun
Specials
Discovery
culture
Trends & Lifestyle
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
versus
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
https://cloudyourcar.com/
Car fleet management using the cloud
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
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From monolithic to atomic
Small & Simple APPification
Long Tail Personalized Real-Time
Utility / Usability Value for Money Agile/Cloud/SaaS
The Package
Product, services and packages are changing.
From bundling to unbundling to rebundling
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
http://www.macobserver.com/tmo/article/apple-lands-digital-wallet-deal-with-amex-visa-mastercard
Apple is bypassing the payment systems with its mobile wallet:
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
https://www.uber.com/
Uber: bypassing the taxi industry
And other startups are also gaining popularity
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
https://www.clickmechanic.com/
ClickMechanic: an online marketplace aiming to connect consumers with car mechanics (UK)
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
If you can sell expensive cars online, you can sell anything online.
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog “we will build this ourselves…”
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By-passing Virtualization
(services, products, support,
distribution, ...) Distortion of the
value chain
The Frog
The position in the value chain is challenged
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The Gatekeeper
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The GatekeeperCrowd-sourced opinions
Peers as news distributors
Automatic algorithms
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The GatekeeperNew “experts”
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The Gatekeeper
Brands by-passing the media to directly connect with the audience
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The Gatekeeper
Guess who will determine what happens IN your future cars…
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Gatekeeper meets the Second
Gatekeeper (the power of social
media) Fragmentation of (communication)
touchpoints Recommendations Ambassadorship
The Gatekeeper
Opinion making is challenged
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Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
The Traveller
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
Primary location and place of consumption change
The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
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The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
http://www.zipcar.com/
Car sharing initiatives
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
Peer-to-peer airport rentalsThe Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
Elon Musk acts upon the input he receives form the
community
The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Traveller
Mobile technology Location / Local
Always on / Instant gratification
Decreased mobility (for society)
De-centralized / NWOW
“Good is good enough” Small Data
Consumers are uniting and creating powerful communities
The Participant
Community Gamification Co-creation / Collaboration
The power of the crowd
Empowered Self (Self-)service
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
http://www.digitaltrends.com/mobile/mercedes-benzs-google-glass-app-feeds-directions-straight-to-your-eyeballs/
Mercedes’ Glass app pipes directions through Google Glass and directly to the wearer’s eyeballs
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
Contextual Awareness: technology knows everything
Location/time-aware Activity-
awareProduct-aware Intention-
aware
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
http://www.designboom.com/technology/audi-a3-car-manual-enhanced-by-augmented-reality-app/
Augmented reality
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
http://www.extremetech.com/extreme/183174-googles-new-self-driving-car-electric-no-steering-wheel-and-incredibly-cute
Robots are entering our daily lives
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
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The Cyborg
Quantified Self Wearable Computing
Internet of Things Big Data
Open Data Monitoring
Even Smaller Contextual Awareness
Technology keeps progressing
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Transparency Accountability
Proximity Responsiveness Bi-directional Humanization Authenticity
The Glass House
Relationship
Monolithic vs. atomic
APPification Long Tail
Personalized Experience
Speed Price
(Self-)service Scalability
The Package
Product, Service & Packaging
Bypassing Virtualization
Fragmentation of touchpoints
The Frog
Position in the value
chain
New gatekeepers Recommendations
"Good is good enough"
Ambassadorship
The Gatekeeper
Opinion making
The Traveller
Place Utility
Empowered self Delivery fulfillment
New way of working
Contextual awareness Real-time
Location & Place
The Participant
Community Gamification Collaboration
The power of the crowd
Community
The Cyborg
Internet of things Wearables
Quantified self Robotics
Data Monitoring
Progressive Technology
We have to prepare for a digital future, with new rules and new relationships
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Digital Transformation Modeling (DTM)
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@jcaudron
Disruption is real, deal with it!
Disruption
Modeling
Transformation
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@jcaudron
It’s no longer about digital, it’s about business
Corporate (comm) Strategy
Digital Strategy
Social Strategy
Company Strategy
Digital World
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@jcaudron
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8080
Impact
Insights
Scenarios
Business Cases
Trendwatching
DigitalTransformationModeling
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8080
Impact
Insights
Scenarios
Business Cases
Trendwatching
DigitalTransformationModeling
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8080
Impact
Insights
Scenarios
Business Cases
Trendwatching
DigitalTransformationModeling
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8080
Impact
Insights
Scenarios
Business Cases
Trendwatching
DigitalTransformationModeling
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8080
Impact
Insights
Scenarios
Business Cases
Trendwatching
DigitalTransformationModeling
Trendwatching !
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For most companies, this is still a mighty long
way to go…
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AllDigitalNow
8080
Trendwatching
Impact
Insights
Scenarios
Business Cases
Objective: Create a detailed view on how “digital” your entire organization actually is. Define recommendations to improve the Digital Culture on all levels. !Approach: • Assessment
• Digital Readiness In-Company Survey
• Senior Management Scan (incl. BoD)
• Division Scan • Digital Leadership Creation:
action plan and (individual) coaching to inject more digital DNA on all levels (custom)
Objective: Elaborate (each of the cases of) the short list of business cases that were defined in the general DTM approach. !Approach • detailed approach to develop
the business model for each idea, based on
• comparative research to validate ideas in a broader context
• the Business Model Generation methodology
Objective: Kick-start the Digital Agenda for the organization, based on all previous steps. The Digital Agenda is the strategic and tactical roadmap for digital transformation and serves as a evolutive roadmap. !This contains: • future vision of transformation • company LT and ST strategy • operational plan (business
cases) • actions for cultural change • digital status
Digital Leadership
Development
Business Case
Development
Digital Agenda
Development
3 Transformation
1
Star
t
2
Follo
w-u
p
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For most companies, this is still a mighty long
way to go…
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So, where are you? How digital is your
company? !
Digital Leadership Assessment
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“If you can't understand the new world of digital, fire yourself.
Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the
board of directors. If the board has a low digital IQ, the company
will have a low digital IQ”
George Colony CEO Forrester Research
So, where are you? How digital is your
company? !
Digital Leadership Assessment
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Your Market Your Company Your Leadership
Digital Leadership Assessment The Age Test
Is this you?
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Your Market
Your Company
Your Leadership
Digital Leadership Assessment The Age Test
Guess who’s this
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Digital Leadership Assessment The 7x7 Test
Who’s an (active) user?
CEO
Sales Mkt CIO COO HR CFO …
Facebook V X
Twitter X X
LinkedIn V V
Snapchat X X
Youtube V X
Smart-phone! V V
Tablet V X
…
Pick 7 (or more) relevant digital
activities
Score your leadership team on active usage/understanding
If a member doesn't score at least 4 out of 7, he’s out.
In Out
If the majority of leadership is out, the company is out
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Probably you just failed both tests …
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Build Your Digital Transformation Team
!It doesn’t have to be large and costly
!It needs to be strategically high-
priority
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@jcaudron
The Factory The Guesthouse The Garage
Incremental innovation • Development of ‘need to have’
digitals projects and technology
• Working on the existing foundation of the company
• Follows general procedures and regulations
• Slow
Change projects • Small and dedicated project-teams, focused
on in-house innovation
• Limited independency: they are an (internal) supplier of the factory
• Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture
Breakthrough innovation • Small dedicated teams focused on innovation
• Autonomous operations and decisions
• Possibly separate entities
• Focused on agile and rapid development and roll-out of ideas in a stand-alone model
•These can be grass-root internal initiatives or acquisition of interesting targets
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@jcaudronDigital Transformation
From ... ... to
The BusinessDigital (at
the sideline)
Digital in the core
From ...
The Business
Digital (at the sideline)
Digital in the core
Digital in the core
Digital in the core
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@jcaudronDigital Transformation
From ... ... toFrom ...
Your captain
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@jcaudron
The Digital Commandments, your new mantra!
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@jcaudron
1. The customer always
decides
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@jcaudron
2. All things you do must start from a
superior experience
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@jcaudron
3. From now on, you are an agile and flexible company
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@jcaudron
4. You live in a world
of uncertainty
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@jcaudron
5. Always play on the offense instead of
the defense
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@jcaudron
6. Don’t be afraid to cannibalize
your own business
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@jcaudron
7. Never, ever, disrespect
new or small players
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Things to take away ...
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@jcaudron
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Digital transformation: !
the impact of digital disruption on your world
!!
AutoBuzz, September 2014
[email protected] / @jcaudron / +32 475 43 80 98