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NEW WORLD, NEW RULES
DISRUPT OR BE DISRUPTED




         Carlos Dominguez
         Cisco Systems
         Senior Vice President
         Office of the Chairman and CEO

         TECH NOWIST
“                                ”
    SELF-PROCLAIMED



 TECH NOWIST

Leveraging the Present
      Preparing for the Future
SPEED AND PACE OF CHANGE: FACT OR FICTION
                         If Facebook were a country it would be the world’s third largest and
                          2 times the size of the U.S. population.


                                                         1 in 5 couples meet online;
                                           1 in 5 divorces are blamed on Facebook.


More video was uploaded to Youtube in the last 2 months than if
                                       had been airing new content 24/7/365..............   Since 1948

                             More people return home for their cell phone than their wallet



          Carlos Dominguez is usually confused with Elvis...... not the fat one!
The Rise of the Age of Networked Intelligence
                                                              Age of Networked
       Agrarian Age               Industrial Age
                                                                Intelligence




                      Printing Press               Internet
Current Crises
A Turning Point in History:
    Rebooting Business, Government & Society
                        The Industrial                        The Newspaper
                      Age Corporation                                           Safety
                                                                                 and
                                             The Financial
                                                                               Security
                                              System
                                         Government          Democracy


                     EDUCATION                                                WORK
                           Media &
                         Entertainment
                                                             Health Care      ENERGY

                                         SCIENCE
                                         Social Justice                       Regulation
                   Transportation

                                                             The Cities
Don Tapscott - MacroWikinomics
Change Challenge #2
            FAMILIARITY
Watch
SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. DISRUPTIVE INNOVATION
EXAMPLE
Kodak’s introduction of the roll film
in 1888 is an excellent example of
a disruptive innovation.
Instead, it brought new performance
attributes to the marketplace.
PORTABILITY.
SIMPLICITY.
AFFORDABILITY.
TIMELINE



           2000 - Kodak vows to lead in digital
           2005 - Kodak ranked #1 in digital camera sales
                - Surged 40% to $5.7B
                - Film fell 18%
WHAT HAPPENED?
Low margins on camera’s / high margin on film
      Crushing profit disappointment
MY INNOVATION SUGGESTIONS
 1. Understand your culture
 2. Sustained innovation VS disruptive innovation
 3. Need to go underground
 4. Executive sponsor
 5. Experiment constantly
 6. Measure results
 7. Leverage entire company
 8. leverage suppliers
 9. Get input from customers
 10. Disruptive innovation quality comes in version 3 or 4
SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. DISRUPTIVE INNOVATION
3. CONTRIBUTION REVOLUTION
TYPES
                The Contribution Revolution - “Co-Creation Era”
             New Business Models Emerging - Change Everything




                               Expertise:         Software Code:     Creative Expression:
        Opinions & Ratings:
                               Wikipedia          Firefox & Linux      YouTube, Flickr
              Zagats




        Social Connections:    Specialized      Design &             Capital                Goods:
         Facebook, Twitter    Connections:   Developments:          Resource:                eBay
                                Craigslist   Threadless, Ryz         Skype




                         Platforms That Allow Users To Contribute
Companies Born Into Change - “Crowdsourcing”




                        “Crowdsourcing“…a focus group on
                                                           a grand scale
                                                                           22
Companies Born Into Change - “Crowdsourcing”
                               Facts:
                       - Founded 2000
                       - 50 Employees
                       - 30+ M Revenues
                       - Double Digit Growth
                       - 500,000 Community Members
                       - 120,000 Designers
                       - 10,000 orders / day
                       - 288,753 Likes on Facebook
                       - 1.6 M Twitter Followers
                       - 30 Avg. Age Employees

                        “Crowdsourcing“…a focus group on
                                                           a grand scale
                                                                           23
How Many Man
                     a) 3 Million
Hours Are Invested   b) 10 Million
  In Wikepedia?      c) 30 Million
                     d) 100 Million
COMMON CHARACTERISTICS
    PRODUCT LEADERSHIP       CUSTOMER SERVICE
                                       NIMBLE
OPER ATIONAL EXCELLENCE
                                    ORGANIZATIONS
  HARNESS ASSETS        EMPOWERMENT
ACROSS ORGANIZATION   &VALUE EMPLOYEES
                                   FOCUS ON INNOVATION
    CUSTOMER          EXPERIMENT
  CONTRIBUTION        CONSTANTLY         LEVERAGE
   & FEEDBACK                            DIVERSITY
                             LEVERAGE
CULTURE OF                  TECHNOLOGY    REWARDS
  CHANGE      IMAGINE THE
                FUTURE                   CREATIVITY
“Tech Nowist”
 4 STEP PROCESS

                  Someone who   EMBRACES CHANGE,
                  understands what technology is available,


                  EXPERIMENTS with it,
                  LEARNS         from the experiments &




            4
                  LEVERAGES it for a competitive advantage
IMAGINE THE FUTURE
1. Conduct research - hire / buy
2. Brainstorming sessions - inside and outside
3. Listen, listen, listen
4. Dialogue with cutting edge thinkers
5. Understand technology - what’s available and what’s coming
6. Attend conferences
7. Constantly ask - what if?
8. Be curious
9. Be enthusiastic
10. Take time to think..... quietly
7   SUGGESTIONS
    SURVIVE, LEAD & THRIVE
    1. EMBRACE CHANGE
    2. EMBRACE SOCIAL MEDIA
    3. FOCUS ON DISRUPTIVE INNOVATION
    4. IMAGINE THE FUTURE
    5. EXPERIMENT VS ROI
Experimentation is key:
Prototype a lot, fail often, and fail early
7   SUGGESTIONS
    SURVIVE, LEAD & THRIVE
    1. EMBRACE CHANGE
    2. EMBRACE SOCIAL MEDIA
    3. FOCUS ON DISRUPTIVE INNOVATION
    4. IMAGINE THE FUTURE
    5. EXPERIMENT VS ROI
    6. LEVERAGE TECHNOLOGY
7   SUGGESTIONS
    SURVIVE, LEAD & THRIVE
    1. EMBRACE CHANGE
    2. EMBRACE SOCIAL MEDIA
    3. FOCUS ON DISRUPTIVE INNOVATION
    4. IMAGINE THE FUTURE
    5. EXPERIMENT VS ROI
    6. LEVERAGE TECHNOLOGY
    7. IMPLEMENT EFFECTIVE COLLABORATION
Hunt for Value Across I.C.E. - Cisco Examples

                                     Cross-unit product innovation
                                     New business creations
           INNOVATION
                                     PRODUCT - TELEPRESENCE / WEBEX INTEGRATION
                                     NEW BUSINESS -IPRIZE - CROWDSOURCING


                                     Cross-selling, better coordination
                                     Better customer service by coordination
           CUSTOMERS
                                     CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICE
                                     CROSS SELLING - DATA CENTER - PARTNER COMMUNITY



                                     Costs/investments savings by coordinating/sharing
                                     Better decisions by getting input
           EFFICIENCY
                                     WEBEX




   MORTEN HANSEN - “COLLABORATION”

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Leveraging the Present, Preparing for the Future

  • 1. NEW WORLD, NEW RULES DISRUPT OR BE DISRUPTED Carlos Dominguez Cisco Systems Senior Vice President Office of the Chairman and CEO TECH NOWIST
  • 2. ” SELF-PROCLAIMED TECH NOWIST Leveraging the Present Preparing for the Future
  • 3. SPEED AND PACE OF CHANGE: FACT OR FICTION If Facebook were a country it would be the world’s third largest and 2 times the size of the U.S. population. 1 in 5 couples meet online; 1 in 5 divorces are blamed on Facebook. More video was uploaded to Youtube in the last 2 months than if had been airing new content 24/7/365.............. Since 1948 More people return home for their cell phone than their wallet Carlos Dominguez is usually confused with Elvis...... not the fat one!
  • 4. The Rise of the Age of Networked Intelligence Age of Networked Agrarian Age Industrial Age Intelligence Printing Press Internet
  • 6. A Turning Point in History: Rebooting Business, Government & Society The Industrial The Newspaper Age Corporation Safety and The Financial Security System Government Democracy EDUCATION WORK Media & Entertainment Health Care ENERGY SCIENCE Social Justice Regulation Transportation The Cities Don Tapscott - MacroWikinomics
  • 7. Change Challenge #2 FAMILIARITY
  • 9.
  • 10. SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. DISRUPTIVE INNOVATION
  • 12. Kodak’s introduction of the roll film in 1888 is an excellent example of a disruptive innovation.
  • 13. Instead, it brought new performance attributes to the marketplace.
  • 17. TIMELINE 2000 - Kodak vows to lead in digital 2005 - Kodak ranked #1 in digital camera sales - Surged 40% to $5.7B - Film fell 18%
  • 18. WHAT HAPPENED? Low margins on camera’s / high margin on film Crushing profit disappointment
  • 19. MY INNOVATION SUGGESTIONS 1. Understand your culture 2. Sustained innovation VS disruptive innovation 3. Need to go underground 4. Executive sponsor 5. Experiment constantly 6. Measure results 7. Leverage entire company 8. leverage suppliers 9. Get input from customers 10. Disruptive innovation quality comes in version 3 or 4
  • 20. SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. DISRUPTIVE INNOVATION 3. CONTRIBUTION REVOLUTION
  • 21. TYPES The Contribution Revolution - “Co-Creation Era” New Business Models Emerging - Change Everything Expertise: Software Code: Creative Expression: Opinions & Ratings: Wikipedia Firefox & Linux YouTube, Flickr Zagats Social Connections: Specialized Design & Capital Goods: Facebook, Twitter Connections: Developments: Resource: eBay Craigslist Threadless, Ryz Skype Platforms That Allow Users To Contribute
  • 22. Companies Born Into Change - “Crowdsourcing” “Crowdsourcing“…a focus group on a grand scale 22
  • 23. Companies Born Into Change - “Crowdsourcing” Facts: - Founded 2000 - 50 Employees - 30+ M Revenues - Double Digit Growth - 500,000 Community Members - 120,000 Designers - 10,000 orders / day - 288,753 Likes on Facebook - 1.6 M Twitter Followers - 30 Avg. Age Employees “Crowdsourcing“…a focus group on a grand scale 23
  • 24. How Many Man a) 3 Million Hours Are Invested b) 10 Million In Wikepedia? c) 30 Million d) 100 Million
  • 25. COMMON CHARACTERISTICS PRODUCT LEADERSHIP CUSTOMER SERVICE NIMBLE OPER ATIONAL EXCELLENCE ORGANIZATIONS HARNESS ASSETS EMPOWERMENT ACROSS ORGANIZATION &VALUE EMPLOYEES FOCUS ON INNOVATION CUSTOMER EXPERIMENT CONTRIBUTION CONSTANTLY LEVERAGE & FEEDBACK DIVERSITY LEVERAGE CULTURE OF TECHNOLOGY REWARDS CHANGE IMAGINE THE FUTURE CREATIVITY
  • 26. “Tech Nowist” 4 STEP PROCESS Someone who EMBRACES CHANGE, understands what technology is available, EXPERIMENTS with it, LEARNS from the experiments & 4 LEVERAGES it for a competitive advantage
  • 27. IMAGINE THE FUTURE 1. Conduct research - hire / buy 2. Brainstorming sessions - inside and outside 3. Listen, listen, listen 4. Dialogue with cutting edge thinkers 5. Understand technology - what’s available and what’s coming 6. Attend conferences 7. Constantly ask - what if? 8. Be curious 9. Be enthusiastic 10. Take time to think..... quietly
  • 28. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROI
  • 29. Experimentation is key: Prototype a lot, fail often, and fail early
  • 30. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROI 6. LEVERAGE TECHNOLOGY
  • 31. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROI 6. LEVERAGE TECHNOLOGY 7. IMPLEMENT EFFECTIVE COLLABORATION
  • 32. Hunt for Value Across I.C.E. - Cisco Examples Cross-unit product innovation New business creations INNOVATION PRODUCT - TELEPRESENCE / WEBEX INTEGRATION NEW BUSINESS -IPRIZE - CROWDSOURCING Cross-selling, better coordination Better customer service by coordination CUSTOMERS CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICE CROSS SELLING - DATA CENTER - PARTNER COMMUNITY Costs/investments savings by coordinating/sharing Better decisions by getting input EFFICIENCY WEBEX MORTEN HANSEN - “COLLABORATION”