disruption presentationv2.35

Defining a Disruptive

Strategy

Executive Management Workshop

Sāo Paulo, Brazil

July 17, 2015

by Anthony DeLima

[email protected]

© Copyright 2015 – All Rights Reserved CARTENIA GROUP

The 5 Hypothesis

Strategic Focus

The Digital Era

Your Culture

Our Approach

Q&A

© Copyright 2015 – All Rights Reserved

“Understanding The Journey”

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Hypothesis #1

I am the customer, I am in control, I make choices, and I manage my

journey as your customer. [availability, pricing, characteristics, delivery, service]


Digital business transformation is driven by four critical factors;

Social Media

Everything Real-time Growth of Mobile Technology

Highly Informed Customers

Hypothesis #2


Defining a Digital strategy is not an end-goal - it’s a continuous journey. It’s the result of learning more about

the relationship between customer behavior and technology and to

deliver disruptive value.

CARTENIA GROUP © Copyright 2015 – All Rights Reserved

Hypothesis #3

Best-in-class companies leverage customer behavior to continuously mold their value proposition while

creating new ways to connect with customers across channels.


Hypothesis #4

Defining a Digital strategy has a little to do with technology but a lot

more with understanding real time customer needs and delivering new

value in a B2C, or B2B model.


Hypothesis #5

Where is the focus? What are your priorities? What’s the end-game?

Revisiting the Value-creation Levers


GROWTH

RETURN ON CAPITAL

RISK MANAGEMENT

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GROWTH?

RETURN ON CAPITAL?

MANAGING RISK?

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InnovaIon & New Products

ReputaIon Management

Digital Sales & MarkeIng

What is your focus?

Understand the nature of your competitive culture, then

evaluate the changes.

What’s your competitive culture

Emulate market leader’s Strategy & TacIcs

Re-‐segment the market to create a niche

Create and pursue a unique advantage

Tradi&onal game rules

New game rules

En&re Market

Niche

Whe

re to

com

pete

How to compete

Disrupt industry rules to exploit a unique advantage


Accumulated

Total Returns

Expected Window of Returns

How quickly can changes be adopted – what are the areas that

will impede rapid change.

Appetite for Speed

High Growth 12-‐24 months

Quick Hits 0-‐12 months

Exponen&al Growth 24-‐36 months Current

Business Generate today’s cash flow

Today’s revenue growth + tomorrow’s cash flow

New value creaIon + new product/service dimensions


1.  Doing something dramatically different and significantly better.

2.  Define who will benefit from the massive disruption.

3.  Provide TOTAL customer control.

4.  Identify measureable success.

5.  Identify small innovation teams.

6.  Exploit the 4 fundamental human needs: comfort, variety, connection, uniqueness.

7.  Build a digital bridge into your product.

8.  Not just better, faster, cheaper but dramatically different.

9.  Think like an outsider.

10.  Listen to customers on what problems to solve.

Critical CONSIDERATIONS in creating disruption

Creating Disruption


COMFORT VARIETY CONNECTION UNIQUENESS

Customer experience, product/service innovation,

fulfillment, corporate identity.

How the Digital era is disrupting industries


Customer Experience

Products & Services

Marke&ng & sales

Distribu&on & Fulfillment

Risk Op&miza&on

Enhanced Control

•  Seamless Omni-‐channel experience

•  ConInuously evolving service proposiIons

New digital products & services

Omni-‐channel markeIng & sales

•  Full STP processing •  Automated servicing

•  Improved customer targeIng

•  Improved risk profiling

•  Real-‐Ime Big-‐Data analyIcs

•  Beaer decision-‐making

Creates the opportunity to augment existing product/services base with

new capabilities.

“IoT” Enabling Disruption

New Business models

Real-‐Ime InformaIon on mission-‐criIcal

systems

Efficient, Intelligent operaIons

Global Visibility

DiversificaIon of revenue streams

•  New Value streams •  Speed Ime to market •  Respond rapidly to customer needs

•  Access informaIon from autonomous endpoints

•  Smart decision-‐making (i.e. pricing, logisIcs, sales, support Improved service

Beaer quality

MoneIze new services on top of tradiIonal ones

More efficient supply-‐chain management

Connec&vity w/Customers

Innova&on of products, & business models

Automa&on of manual acIvity

Improved Decisions,

relying on Big-‐Data analyIcs


How does a customer engage and how you are perceived?

Understanding the customer Journey

1

2

3

4

5

awareness'

considera,on'

purchase'

reten,on'

advocacy'Blog'6'Social'Media'6'Newsle:ers''

FAQs,'Knowledge'base,'Content'repositories'

Website,'store,'eCommerce,'consider'peers,'set'criteria'

Store,'website,'word'of'mouth'

Online'ads'–'email,'Social'Ads,'Reviews,'Blog,'Media'

Community'Forum,'short6list'vendors'


What are the underlying technology architecture requirements.

What Technology must deliver

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Content/Unstructured Data

Operational Data-Stores

Data-Marts & Analytics

Application/business logic, transformation, routing, connectivity and distribution services

Asynchronous Secure Messaging JAVA Messaging Services (JVS)

ENTERPRISE SERVICES BUS (MIDDLEWARE LAYER)

Transformation (XSLT)

SOAP/HTTP Connector (Web Serv.)

SOAP/HTTP Connector (.NET)

JMS J2ee

Legacy Applications

Connectors (part of ESB)

SAP Connector

Real Time BI & Text Analysis

Business Rules

Event Processing

BPM & Workflow

BI-Spoke Development


CONFIRMING VEHICLES

EXEXUTION APPROACH

END-‐STATE THINKING

BUILDING FOUNDATION

DEFINING VISION &

LEADERSHIP

MAPPING CUSTOMER JOURNEY

SETTING VALUE GOALS

SETTING FINANCIAL GOALS

BUSINESS

TECHNOLOGY

GOVERNANCE TECH ARCHITECTURE

CORPORATE STRUCTURE

VALIDATING SERVICES & DRIVERS

BRAND UPDATE

KEY INITIATIVES

TIMING & COST


Approach

KEY STEPS: 1.   Defining Vision & Transforma&on Leadership

a)  Who will lead the transformaIon b)  Who will be part of the team

2.   Understand the Customer Journey

3.   Valida&ng the Service Drivers a.  Underlying service requirements B2C & B2B b.  CharacterisIcs c.  DifferenIators d.  What are the disruptors

4.   SeZng the Value levers: a.  Growth b.  Return on capital c.  Managing risk

5.   SeZng Financial goals – how will returns be obtained a.  Low cost/scale b.  Premium pricing/brand c.  Premium pricing/IP

6.  ValidaIng the market arena

END

STA

TE T

HIN

KIN

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CARTENIA GROUP

Awareness Considera&on Purchase Reten&on Advocacy


“Establish a Vision of where we want to be based on the understanding of

key customer drivers”

KEY STEPS: 1.   How will we get there from a Business perspec&ves

a)  Partnerships b)  Joint-‐ventures c)  M&A d)  Alliances

2.   How will we get there from a Technology perspec&ve a)  Internal development b)  Outsourcing/Co-‐Sourcing c)  M&A d)  Join-‐ventures e)  Alliances

CO

NFI

RM

ING

VEH

ICLE

S


“How do we get to the end-‐state – do we build it ourselves or do we

leverage third par?es”

BUIL

DIN

G F

OU

ND

ATI

ON

CARTENIA GROUP

KEY STEPS: 1.   Corporate & Legal structure

a)  DomesIc b)  InternaIonal

2.   Governance structure a)  Centralized b)  Distributed c)  Roles & ResponsibiliIes d)  DefiniIon & measurement of KPIs

3.   Technology architecture a)  ApplicaIon b)  Services c)  Data d)  IdenIty management e)  Plamorm f)  Networking g)  Overall standards


“What is the underlying business and technical founda?on that must be in

place to achieve the end-‐state?”

EXEC

UTI

ON

SEQ

UEN

CE


KEY STEPS: 1.   BRAND UPDATE

a.  Tone b.  Message c.  Content d.  Channel approach

2.   Key Transforma&on Ini&a&ves a.  Projects in three stages: “Quick-‐Hit”, “High-‐Growth”, “ExponenIal Growth” b.  Resourcing model; internal, contract labor, outsourced

3.   Timing & cost a)  Final sequencing b)  Delivery Iming and speed c)  Delivery approach d)  Line item cosIng & financial return

“What is the right sequence to execute transforma?on based on the company’s opera?onal, financial and organiza?onal constraints to adopt proposed changes?”

Business Process Tuning

Client Value

New Service Scope

Business Process Tuning

Business Process Advisory Services

Enabling Products

(Tech enabled)

World-‐class Delivery

OrganizaIon

Enabling Products

(Tech enabled)

Joint-‐ Opera?onal Process

Improvement

New Service

‘SOLUTION’ Process, Products

& People

What are the B2B scenarios?

B2B Opportunities to consider


Heat-Maps provide visibility on the Services & Technology enablers


Service HEAT-‐MAP

Technology HEAT-‐MAP

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disruption presentationv2.35

Leadership & Management