This document discusses how digital disruption and artificial intelligence will impact the future of work. Some key points discussed include: - 52% of Fortune 500 firms since 2000 have gone out of business due to digital disruption. - Data and digital technologies are transforming business models and how companies engage with customers. Insights from data will be critical for business success going forward. - Companies will need to design experiences for "segments of one" and leverage context about individuals to provide personalized and relevant experiences. - As artificial intelligence capabilities advance, many existing jobs will be automated but new types of "digital artisans" will be needed to apply design thinking and humanize digital experiences. - Organizations will need to

1. © 2010-2018 Constellation Research, Inc. All rights reserved.
Digital Disruption And The Future Of
Work
What Happens In An AI Driven World
MAY 15TH 2018
R “RAY” WANG (@RWANG0)
PRINCIPAL ANALYST & CHAIRMAN
1@rwang0 #DisruptingDigital

2. © 2010-2018 Constellation Research, Inc. All rights reserved. 2
52% of the Fortune 500
firms since 2000 are gone

3. © 2010-2018 Constellation Research, Inc. All rights reserved. 3@rwang0 #Nasscom_ILF #FutureofWork
What’s the hottest performing stock since 2010?

4. © 2010-2018 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Welcome to the post-sale, on-
demand, attention economy!
(2014)

5. © 2010-2018 Constellation Research, Inc. All rights reserved.
Lessons Learned From Disrupting Digital
5@rwang0 #DisruptingDigital

6. © 2010-2018 Constellation Research, Inc. All rights reserved. 6@rwang0 #DisruptingDigital
Digital disruption is more than just a
technology shift. It’s about
transforming business models and how
we engage.
1

7. © 2010-2018 Constellation Research, Inc. All rights reserved.
Design Thinking Inspired User Experience
Mobile Social Cloud Big Data IOT 3D Printing
Tech convergence powers digital disruption
7@rwang0 #DisruptingDigital

8. © 2010-2018 Constellation Research, Inc. All rights reserved. 8@rwang0 #DisruptingDigital
Social creates new verbs and experiences that
bring people and networks together
Twitter – I need to pee
Facebook – I pee’d
Google+ - More pee in circles
FourSquare – I’m peeing here
Pinterest – My pee scrapbook
Instagram – My pee in sepia
LinkedIn – Hire me to pee
Path – Watch me pee privately
You Tube – Watch me pee
Vine – Watch my pee loop
SnapChat – I have no proof I pee’d
Jelly – Does this look like pee?
What’s app – I told you I pee’d
Periscope– Watch me pee live

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Uber incorporates five key pillars

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Talent programs must
incorporate business model
design in the curriculum
10@rwang0 #DisruptingDigital
Lesson Learned 1

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We move from selling products and
services to keeping brand promises in
an attention economy.
2

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Digital accelerates business model transformation
• Product companies give away product for service
revenues.
• Service based businesses sell experiences at varying
price points and service levels.
• Experience based businesses selling business
models
• Business model companies sell peace of mind.

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Medical device companies just don’t sell imaging
systems

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Disney doesn’t just sell theme park tickets

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Disney fully applies mobile and data as the
gateway to new customer experiences

16. © 2010-2018 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
You're not competing with
another company, you're really
competing for time and attention
(2010)

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Support the brand promise
when considering talent
advancement
17@rwang0 #DisruptingDigital
Lesson Learned 2

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Data is the foundation of digital
business. Every touch point, every click,
every digital exhaust is relevant insight.
3

19. © 2010-2018 Constellation Research, Inc. All rights reserved. 19
Data and content explosion goes exponential
90% of data
created in last
2 years 2014,
1 year 2015,
1 sec 2020
80 Billion
sensors in
devices by
2020
100Mviral
connections
per minute by
2020
60% of
mission critical
data will reside
outside four walls
by 2020
19@rwang0 #DisruptingDigital

20. © 2010-2018 Constellation Research, Inc. All rights reserved. 20@rwang0 #DisruptingDigital
Use big data context to improve analytical insight
to make better decisions
Data Sources
Information &
Orchestration
Insight
Decisions &
Actions
Technology
Driven
Line of
Business Driven
• Structured
• Semi-structured
• Unstructured
• Physical
• Virtual
• Machine
• Contextual
• Performance
• Deduction
• Inference
• Prediction
• Next best action
• Prevention
• Suggestion
• No action

21. © 2010-2018 Constellation Research, Inc. All rights reserved.
Design for data in order to
augment decision making
21@rwang0 #DisruptingDigital
Lesson Learned 3

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If 20 % of your revenue is not an insight
stream by 2020, you won’t have a
digital biz model
4

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The future is big data business models built on
insight
Insight based
differentiation
Drive demand
Create new service
offerings
Improve c-sat
Drive lower cost
models
Insight brokering
Raw information
Analysis and insights
Benchmarking
Insight based
business platforms
Marketplaces
Deal making
Advertising

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Manufacturing and the IOT of toasters?

25. © 2010-2018 Constellation Research, Inc. All rights reserved. 25@rwang0 #DisruptingDigital
New business models powered by data
Customer
experience
monitoring
Remote
field
service
Toasts as a
service
Direct to
consumer
Cross-sell

26. © 2010-2018 Constellation Research, Inc. All rights reserved.
Use insights to transform future
employee experiences
26@rwang0 #DisruptingDigital
Lesson Learned 4

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Digital artisans emerge to humanize
digital across the organization
5

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We must invest in digital artisans in order to
humanize digital

29. © 2010-2018 Constellation Research, Inc. All rights reserved.
“Design thinking is a methodology to
unlock solutions to questions you
never would have asked” (@rwang0)
29@rwang0 #DisruptingDigital

30. © 2010-2018 Constellation Research, Inc. All rights reserved.
Change hiring practices to
include diversity of thought
30@rwang0 #DisruptingDigital
Lesson Learned 5

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Design for human segments of one
6

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Context provides relevancy from real time to right
time
ContextRoles
Relation-
ships
Time
Location
Know-
ledge Weather
Business
process
Sentiment
Intent

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Choose your own adventure journeys

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Intention driven design “skate where the puck will
be” or anticipatory analytics

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Contextual relevancy earns you the permission to
engage and identify the next best action

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Deliver brand promises via orchestration across
personas, processes, and the graph
Content
Context
Channels
Anticipatory
Analytics
Catalysts
Choices
Monetary
Personalization at
Scale
Immersive
Experiences
Value
Exchange
Cadence
AI/ Cognitive
Reckoning
Atomic Level Customer Journeys, IOT Smart Services, Work Streams, & Block Chains
Non Monetary
Collaboration
Consensus
2 3 4
6
Machine
Learning
1
7
Digital Footprint
& Exhaust
5
Orchestration of Trust

37. © 2010-2018 Constellation Research, Inc. All rights reserved.
6
Prevention
37
The seven outcomes of AI
3
Suggestion
4
Automation
5
Prediction
What do
you
recommend?
What’s
happening
now?
What do I
need to
know?
What should
I always
do?
What can I
expect to
happen?
What
can I
avoid ?
What do I
need to do
right now?
7
Situational
Awareness
1
Perception
2
Notification
@rwang0 #DisruptingDigital

38. © 2010-2018 Constellation Research, Inc. All rights reserved. 38
Candidates for AI driven automation and analytics
@rwang0 #DisruptingDigital
Repetitiveness
Volume
Complexity
Time to complete
Nodes of interaction
Physical presence
Human Powered AI Powered
HighLow
BothBoth
LowHigh
HighLow
HighLow
HighLow
Augmenting Humanity
Creativity LowHigh

39. © 2010-2018 Constellation Research, Inc. All rights reserved.
Craft new employee
experiences with hyper
personalization
39@rwang0 #DisruptingDigital
Lesson Learned 6

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Five generations of people by digital
proficiency, not age
7

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5 generations of digital people not by age but by
digital proficiency
Digital
Proficiency
1. Digital
Natives
comfortable in engaging
all digital channels 2. Digital
Immigrants
crossed the chasm
into the digital world,
forced into
engagement with
digital channels
3. Digital
Voyeurs
Recognize the shift to digital
but not ready to be active yet
themselves
4. Digital
Holdouts
Resisting the shift to digital,
ignoring the impact
5. Digitally
Disengaged
Understand digital
but avoiding
engagement on
purpose, often for
privacy reasons

42. © 2010-2018 Constellation Research, Inc. All rights reserved.
Use digital proficiency to
promote and improve inclusion
42@rwang0 #DisruptingDigital
Lesson Learned 7

43. © 2010-2018 Constellation Research, Inc. All rights reserved.
Disrupting Digital Business
43@rwang0 #DisruptingDigital

44. © 2010-2018 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital Darwinism is unkind to
those who wait
(2010)
44

45. © 2010-2018 Constellation Research, Inc. All rights reserved. 45@rwang0 #DisruptingDigital
The reality of how we allocate is set up for margin
Brand
Strategic
differentiation
Revenue growth
Operational efficiency
Regulatory compliance

46. © 2010-2018 Constellation Research, Inc. All rights reserved. 46@rwang0 #DisruptingDigital
Growth requires the flip in the pyramid with
automation and software providing scale
Brand
Strategic differentiation
Revenue growth
Operational
efficiency
Regulatory
compliance

47. © 2010-2018 Constellation Research, Inc. All rights reserved. 47@rwang0 #DisruptingDigital
Five steps to get started in going digital with
innovation in talent advancement
Design new
experiences
and outcomes
Develop a
culture of
digital DNA
Apply new
business models
and technologies
to existing
infrastructure
Move from gut
to data driven
decisions
Co-create and
co-innovate
with new
partners

48. © 2010-2018 Constellation Research, Inc. All rights reserved.
R “Ray” Wang
+1.650.918.6619
R@ConstellationR.com
@rwang0
www.raywang.org
www.ConstellationR.com
Thank you.
Any questions?

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Join me and other innovators at
Join me and other innovators at
Constellation’s
Connected Enterprise
The Ritz Carlton, Half Moon Bay, CA | October 22-25, 2018 | www.constellationevents.com
50