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Digitalization and Innovation - Today and Tomorrow

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This presentation has been presented at the FHNW in Olten during the preparation seminar week of the student projects "Fokus India" and "ConnectUS".

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Digitalization and Innovation - Today and Tomorrow

  1. 1. Innovation & Digitalization: Today, tomorrow & How to get there @FHNW, February 2017
  2. 2. Michael Schranz Business development Apps with love GmbH Landoltstrasse 63 3007 Bern michael@appswithlove.com Twitter: @michaelschranz @appswithlove www.appswithlove.com
  3. 3. Agenda & Objectives Agenda •  Today 30’ •  Tomorrow 40’ •  Break 10’ •  How to get there 45’ Objectives •  Get inspired •  Digital knowhow •  Get to know contemporary innovation processes
  4. 4. Today Topics •  The age of information •  Economies of long tail •  The network effect •  Blockchain & Cryptocurrencies •  The hyper economy of silicon valley •  Digitalization transformation •  AI 1.0
  5. 5. The Information Age ... is a period in human history characterized by the shift from traditional industry that the Industrial Revolution brought through industrialization, to an economy based on information computerization. As of February 2017, Apple is the world's most valuable company ahead of Alphabet and Microsoft. Facebook is 5th and Amazon 9th. The big five: Apple, Google (Alphabet), Microsoft, Facebook, Amazon Age of Information = The world of platforms: •  Uber •  AirBNB > What do they have in common?
  6. 6. Economies of long tail Chris Anderson: The Long Tail http://www.thelongtail.com/about.html
  7. 7. The network effect What is it? •  The network effect is the effect that one user of a good or service has on the value of that product to other people. > path to (potentionally exponential) growth. Why is it important in the age of digital? •  A platform only creates value for the customers if enough people use it. Examples: •  Facebook with Instagram stories vs. Snapchat •  Google ecosystem
  8. 8. Blockchain & Cryptocurrencies •  Blockchain / distributed-ledger •  Bitcoin and other Cryptocurrencies > Model to add trust to untrusted environments > Reduced friction > Transparent access to information
  9. 9. The hyper economy of silicon valley •  Concentration of creative ideas, knowledge, talents and financing •  Home of many major (tech-) companies & all have branches there
  10. 10. Digitalization transformation model 1.  Technological Development 2.  Adaptation of technology by the  customers 3.  Adaptation curve of the average business 4.  Adaptation curve of the doomed business 5.  Social digital transformation 6.  Digital business transformation
  11. 11. Artificial intelligence 1.0 •  AI Chatbots / Robots •  Self learning algorithms •  Machine learning •  Artificial neural networks •  Data Mining •  Pattern Recognition
  12. 12. Tomorrow Topics •  Smartness •  Google everything •  The world of platform economy •  The era of real time communications •  Seed AI / Singularity
  13. 13. Smartness •  Smart home •  Smart cities •  Self driving cars •  Industry 4.0 (IoT, IioT) •  Intelligent Apps > Smart everything? Will this make humanity smarter or less smart? What about privacy and security?
  14. 14. Google / Alphabet everything? •  Android OS on about 80% of all Devices •  Nest •  Maps •  Network (Google Fiber) •  Search •  Machine Learning •  Google Ventures & capitalG •  YouTube (original content) •  Technical Infrastructure & Sidewalks Labs •  Calico •  (Google Glass) Ø  Is Alphabet too big (or too all-knowing) to fail? Ø  What is the ultimate goal of Google? > How could Google get disrupted?
  15. 15. The world of platforms 2.0 •  Workforce and work source on platforms •  Micro jobs and the gig economy > Social impact? > Income (in)equality? > Age of the Aggregators?
  16. 16. The era of real time communications •  Complete archives of thought & communication •  World of sensors •  Culture <> Communication > No more secrets?
  17. 17. Seed AI / Singularity •  Singularity •  General artificial intelligence •  Exponential growth & intelligence explosion •  Artificial superintelligence •  Raymond „Ray“ Kurzweil
  18. 18. How to get there? •  How to exist in a world of platforms •  How to close the digitalization gap •  How to be and stay innovative > Design thinking process
  19. 19. Types and forms of innovation Forms: •  Incremental innovation •  Semi-radical innovation •  Radical innovation (Disruption) Types: •  Product / service innovation •  Process innovation •  Business model innovation •  Marketing innovation •  Social innovation (organizational)
  20. 20. Innovation past & now How did innovation change in the last couple of years? •  The perspective on innovation and its development •  No longer “behind closed doors”, instead open innovation processes •  Open innovation and co-creation - collaboration with: •  Other businesses •  Customers •  Research partners > Agility, ideas and approaches have changed
  21. 21. How to be creative
  22. 22. Founding principles of creative thinking 1.  Divergent thinking describes a wide ranging search for many different and new alternatives. 2.  Convergent thinking describes a focused, positive and affirmative evaluation of the alternatives.
  23. 23. Innovate or die
  24. 24. Human centered design
  25. 25. Design thinking process The design thinking process by IDEO (https://www.ideo.com/eu/) (Illustration by Nielsen Norman Group)
  26. 26. Value proposition design process
  27. 27. Business model canvas
  28. 28. Value proposition canvas © Alexander Osterwalder
  29. 29. Learning & Test cards
  30. 30. Lean Startup •  Eric Ries: The lean startup
  31. 31. Apps with love - process
  32. 32. From Idea to Business Model 1.  Problem- Solution Fit 2.  Product-Market Fit 3.  Business Model Fit Create - Establish - Scale - Monetize
  33. 33. Push vs. Pull Two different approaches:
  34. 34. Digitalization drives Innovation In order to evaluate the value chain for its potential for digitalization, it is helpful if digitalization trends are known: •  Big Data: From the analysis of customer interaction to data driven business models •  Cloud solutions / services: Customer data on the go •  Personalization and individual customization of products •  Internet of things: Office automation, SmartHome, warehouse and storage management •  Enterprise apps: Process optimization with apps •  Crowdsourcing: Customer-involvement for new products •  3D-Printing: Rapid prototyping, visualize visions •  Smart enterprises: Energy savings, time tracking tools
  35. 35. Questions? Comments? Michael Schranz Apps with love GmbH Landoltstrasse 63 3007 Bern michael@appswithlove.com info@appswithlove.com Twitter: @michaelschranz @appswithlove www.appswithlove.com THANK YOU FOR YOUR ATTENTION!
  36. 36. Sources and further reading In this presentation, knowledge, diagrams and graphs from the following books were used: •  Business Model Generation & Value Proposition Design Develop the products and services your customers actually want (Alexander Osterwalder, Yves Pigneur, Greg Bernarda, and others) https://strategyzer.com/books •  The Long Tail (Chris Anderson) http://www.thelongtail.com/about.html •  The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (Eric Ries) https://www.amazon.de/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898 •  The Silicon Valley Challenge: A Wake-Up Call for Europe (Christoph Keese) https://www.amazon.de/Silicon-Valley-Challenge-Wake-Up-English-ebook/dp/B01M4HA7C8 •  Denkwerkzeuge der Kreativität und Innovation (Florian Rustler) http://www.creaffective.de/de/veroeffentlichungen/buchdenkwerkzeuge/

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