EMBRACINGDISRUPTION:HOWTOREMODELALEGACYBRANDTOTHRIVE

cc:R23W- https://www.flickr.com/photos/26018798@N06

PRESENTEDBY:

ELEANORJONES,DIRECTOROFDIGITAL&CUSTOMERLEADERSHIP

1

VIDEO:CHAOTICWORLD

2

RANK 1960 1980 2000 2010 Current

1 GeneralMotors ExxonMobil GeneralMotors ExxonMobil Wal-Mart

2 ExxonMobil GeneralMotors Wal-Mart AppleBerkshireHathaway

3 FordMotor Mobil ExxonMobil Microsoft Apple

4 GeneralElectric FordMotor FordMotorBerkshireHathaway ExxonMobil

5 U.S.Steel Texaco GeneralElectric GeneralElectric McKesson

6 Mobil ChevronTexaco IBM Wal-MartUnitedHealthGroup

7 GulfOil GulfOil Citigroup Google CVSHealth

8 Texaco IBM AT&T Chevron GeneralMotors

9 Chrysler GeneralElectric AltriaGroup IBM AT&T

10 Esmark Amoco Boeing Procter&Gamble FordMotor

FROM1960TO2000,4OFTHETOP10LARGESTCOMPANIESONS&P500HELDCONSTANT

HOWEVER,AVERAGETIMESPENTONS&P500ISDECREASING

4

THEREISFASTERCHURN,INS&PANDSUSTAINABLELEADERSHIPISDECREASING

5

4MEGATRENDSCONTRIBUTETOHIGHPACEOFMARKETPLACECHANGE

CONNECTEDCONSUMER

GLOBALECONOMICINTEGRATION

EXPLOSIONOFDATA&EVOLUTIONOFINFORMATION

DISINTERMEDIATIONOFINDUSTRIES

6

ONEEXPLANATIONFORTHEMOVEMENTIN&OUTOFTHEFORTUNE500

7

Source:McKinsey&Co

DIGITIZATIONISAFFECTINGALLINDUSTRIES,ATVARYINGPACEOFCHANGE

8

Themostvaluableretailerhasnoinventory

Theworld’slargesttaxicompanyhas

nofleet

Theworld’slargesthotelchainownsnorealestate

Themostpopularmediaowner

createsnocontent

4TH REVOLUTIONHASDISRUPTEDKEYINDUSTRIESINPROFOUNDWAYS

9

DETERMINING‘FAULTLINES’INTHEMARKETPLACEISMORECRITICALTHANEVER

❶EVOLVINGCUSTOMERNEEDS

❷PERFORMANCEMETRICS

❸INDUSTRYPOSITION

❹BUSINESSMODEL

❺TALENT&CAPABILITIES

10

Source:KnowingWhentoRevinvent,2005byHarvardBusinessReview

POPQUIZ

Ifyouhadagoalofmaximizingreturns,whichstockwouldyouhaveinvestedinJanuary2010?

a) Appleb) Googlec) Netflixd) Teslae) Amazonf) Domino’sPizza

11

DOMINO’SPIZZAREINVENTION

12

DOMINO’SPIZZAREINVENTION

Domino’stransformedthrough:

❶NewPIZZARECIPE

❷CAMPAIGNTOAPOLOGIZEFORFOOD+announcenewrecipe

❸DIGITALTRANSFORMATION&Embraceoftechnology

13

OTHERSTRATEGICSHIFTSINRESPONSETOFAULTLINES

14

COCA-COLA’SHISTORY&LEGACY

FOUNDEDIN1886 CURRENTLYWORLD’S#4MOSTVALUABLEBRAND

15

COCA-COLAHASSUCCESSFULLYNAVIGATEDSEVERALPERIODSOF‘FAULTLINES’

1886 Companyisfounded

LATE1800s TransitionfromFountainbusinesstobottlingbusiness

1920s Packagechangescomingfromcompetitorscopies,toiconicglassbottle

1940s-1950s Internationalization

1985 “NewCoke”comesout,withrevisedformulatoCoca-ColaClassic

2015 WorldHealthOrganizationcallsoncountriestoreducesugarintakeamongstadults

16

CURRENTLY,CONSUMERTRENDS&PREFERENCESARESHIFTING

17

CHANGETOCOMPANYGROWTHMODEL:OLDGROWTHMODEL

18

CHANGINGLANDSCAPE

19

NEWGROWTHMODEL

20

CONSUMERCENTRICBRANDPORTRFOLIO

21

APPROACHTOSUGARHASEVOLVED

22

EMBRACEWORLDHEALTHORGANIZATIONGUIDELINES

23

24

25

NEWCURRENCYOFBUSINESS:CULTURE,EXTERNALFOCUS &SPEED

OBJECTIVE:Createstrongsenseofownership,purposeandresultsorientationthroughallowingdecisionrights

OBJECTIVE:Enableanagileculturethatreducescostoffailureandencouragesspeed,smartrisks

OBJECTIVE:Facilitatelearningcultureandexternalandpartnershipmindsetbystrongerconnectivityandwaysofworkingwithexternalentities(consumers,techfirms,startups,etc)

“INTRAPRENEURSHIP” EXTERNALFOCUS MOVINGFASTER

QUESTIONSDIGITALMARKETINGLEADERSMUSTASKTHEMSELVES

1) Whatwillbethefaultlinesinyourbusinessinnext3-5years?

2) Areyouabletomanagecorebusinessoftoday,whileplanningaheadtobusinessoftomorrow?

3) AreyouCONSTRUCTIVELYIMPATIENT ?

26