Digital has changed the world around us; even innovation must change. First presented at the World Technology Forum October 23, 2012, New York City #WTN2012

1. This Changes
Everything
Dr. Augustine Fou
October 23, 2012
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2. @acfou – my perspective
Omnicom
Chief Digital Officer
Digital
McKinsey & Company MIT
Advanced Professional Degree PhD, Materials Science
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3. Digital is a catalyst
Marketing
Digital
Business Technology
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4. Innovation was mainly
focused on PRODUCT
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5. Innovation
Disruptive Incremental
Invention Better
Step-Function Cheaper
Category-Forming Faster
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6. Seismic Transitions
Agricultural Industrial Info ?
Age Age Age Age
Centuries Decades Years ?
Farming freed people from manually Factories freed Information
growing their own food. people from manual enabling
manufacturing. people.
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7. Digital has changed
the world around us …
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8. Even INNOVATION
must be changed
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9. Digital has changed
TECHNOLOGY
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10. Internet Adoption
78% use
internet
Dark green:
Source: Pew Internet, April 2012 50-64 yr olds
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11. Dialup to Broadband
Source: Pew Internet, April 2012 April 2012
Broadband
66%
Dialup
3%
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12. Landlines to Mobile
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13. Feature to Smartphone
Source: Nielsen March 2012
mobile mobility
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14. Desktops to Laptops
Tablets almost caught
up to PCs
Consumer sales of PCs and tablets
Source: NPD, Morgan Stanley Research
Percent of PC Shipments – Desktop vs. Portable
Source: IDC Worldwide quarterly PC Tracker
65% Laptops
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15. Computers to Computing
Wintel
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16. Software to Apps
Packaged
proprietary
software
100’s 100’s of thousands
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17. Speed of Adoption
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18. Technology x.0
• Always on, always connected
• From centralized to distributed
• From hardware to services
• Faster, adaptable, personalized
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19. Digital has changed
MARKETING
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20. Advertising
Push Pull
Users do their
own research
Traditional Channels Digital Channels
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21. Shift within digital
To performance-oriented tactics
Source: IAB, PwC April 2011
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22. Users trust peers most
92% trust
“recommendations from
people I know”
47% trust
“ads on TV”
Source: Nielsen, April 2012
33% trust
“online banner ads”
29% trust “text ads on
mobile phones”
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23. Product Reviews
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24. Customer Advocacy
passive/central active/real-time
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25. B2B/Enterprise Marketing
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26. Marketing x.0
• Users are empowered
• New sources of trust – their peers
• Show rather than tell
• Immediate feedback loops
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27. Digital has changed
BUSINESS
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28. Newspaper Industry
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29. Music Industry
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30. Video Rental Industry
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31. 35mm Film Industry
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32. Electronics Retail
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33. Business x.0
• Industries are being replaced by more
efficient versions of themselves
• New industries and revenue models are
being made possible
• The speed of business has shifted historical
advantages away from incumbents
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34. Innovation in the
New Digital World
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35. Irreversible changes
• Shift of power to users
• Move towards efficiency
• Network effects to amplify
• Speed
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36. Digital - Catalyst
Digital has the power to destroy …
… and it has the power to create.
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37. Digital - Catalyst
Marketing
Digital
Business Technology
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38. Technology Alone …
… is not enough
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39. Creative Zen vs iPod
vs
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40. Marketing Alone …
… is not enough
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41. Newton vs PalmPilot
vs
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42. Business Alone …
… is not enough
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43. FreshDirect vs WebVan
vs
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44. Innovation Requires All
Marketing
Digital
Business Technology
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45. Shrink-manufacturing of
nanomaterials
“I got the idea for
shrink-manufacturing
nanomaterials from a
childhood toy –
Shrinky Dinks”
Michelle Khine
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46. Self-tying micro-sutures
“In an auto-body shop I
saw them repair a dent by
heating the area; a light
bulb went on that I can do
the same with shape- Robert S. Langer
memory plastics.” Prof. Materials, MIT
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47. IDEO project rooms
“We set up project rooms
around the periphery of our
open office and individuals
from different disciplines go
in and provide their
Bill Moggridge perspective and contribute
IDEO
ideas and solutions.”
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48. Demand-driven innovation
“We need to change our
mindset from supply-driven
innovation to demand-
driven innovation – what do
customers want and how Ben Verwaayen
quickly can we make it for CEO, Alcatel-Lucent
them?”
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49. We are only just beginning
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50. Collaborative
Innovation
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51. Distributed Computing
Folding@Home
Started in 2007
15 million
PlayStation 3
100 million
computation
hours
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52. Action: Create, Refine
Amass content, filter
and self-police
Community edits and
refines the content over time
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53. Action: Curate, Tag
Digg.com – news that others
are reading and sharing
Delicious bookmarks – what
others find valuable and tag
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54. Action: Filter, Prioritize
Yelp.com – filtering up
the best restaurants
User reviews and discovery
based on others’ actions
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55. Action: Share, Discuss
LinkedIn.com Facebook.com
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56. Action: Crowdsource
Crowdfunding projects
Crowdsourcing creative
design
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57. Action: Problem-Solve
Ask and answer questions
Collective problem-solving to
tackle difficult challenge
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58. Innovation is a process
Marketing
Digital
Business Technology
^
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59. Innovation must be
an interdisciplinary
process
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60. Solar Desalination Plant
Augustine Fou
1985
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61. Digital has changed
everything …
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62. Rapid Collaborative
YOU ARE HERE
Innovation
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63. How do we ensure that
nothing will ever be
the same again?
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