Workplace 2020

Introduction Spring 2012 Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • ebizQ’s Next-Generation Enterprises http://www.ebizq.net/blogs/enterprise • •• • ® 2013 Dachis Group • Chief Strategy Officer http://dachisgroup.com mailto:dion.hinchcliffe@dachisgroup.com : @dhinchcliffe 3

What will work look like
at the end of this decade? What will it mean? ® 2013 Dachis Group 4

Dachis Group We Live In
Era of Change 2013 2020 Lifespan of S&P 500 Company ~15 years ~9 years Portion of Digital Natives in Workforce 35% 75% Speed at which data in world doubles ~2 years 3 months Core Focus of IT Systems of record Systems of engagement Percentage of IT under CIO control 66% 10% (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 5

Dachis Group Communication is changing
Usage delta on common workplace communications tech (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 6

Dachis Group An entire generation
of technology is shifting... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 7

Dachis Group Happening almost all
at once (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 8

Dachis Group Pervasive disruption is
here... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group The good news:
Technology is driving business productivity (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 10

Dachis Group But is this
coming from traditional IT? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 11

Dachis Group Is IT leading
innovation today? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 12

Dachis Group Yet 60% of
CIOs believe they should be driving growth and productivity. Source: Deloitte Survey, 2011 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 13

Dachis Group But technology change
is happening faster than ever before Tablet The tablet is the fastest adopted mainstream technology in history (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 14

Dachis Group Another Way of
Looking At This World Workers IT (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. (Not To Scale) 15

Dachis Group New Digital Engagement
Channels Are Now The Focus And where the value is... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 16

Dachis Group The channel shift
has been global From: Social Business By Design, 2012 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 1.3 billon people 17

Dachis Group Yet most businesses
are still immature with digital Maturing Competent Webinars online video big data direct mail P2P video social media gamification cloud mobile apps Immature (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Is all this
change worth it? Life Expectancy of S&P 500 Company Human Population Growth (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. Pace of Technology Change

Dachis Group The future: The
fast co-evolution of tech & business • Technology makes all new • • • • • things possible Society and business adopt the new tech... Driving new aspirations, expectations, and innovations... Which creates new technologies... Today: Cycles in years and months 2020: Weeks and days business technology (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 20

Dachis Group Driving systemic changes
in business and IT (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 21

Dachis Group The Types of
Workplace Change open APIs new types of devices Technological smart mobility social media app stores comfort with self-service Cultural Structural expectations of job security (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. wearable tech predilection for sharing tech savviness desire for work flexibility networks of networks virtualization of workforce social media communities peer production Process new UXs big data non-hierarchical management user generated content community management social business processes crowdsourcing 22

Dachis Group What will these
workers be like? Source: Cengage (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 23

Dachis Group As we move
to community-led workplaces... • Story of Valve: A major company that is entirely non- hierarchical and self-organized • Story of Intuit: A company that used mass peer production with its customers to create breakthrough customer care See case study in Social Business By Design (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 24

Dachis Group Workforce engagement is
the challenge The opportunity: In large companies, most employees are not well engaged (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 25

Dachis Group Yet the benefits
of better engagement could not be more clear... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 26

Dachis Group The management view
of engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 27

Dachis Group A physical view
of the future engaged workplace (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 28

Dachis Group The case for
building more engaging workplaces Source: AON Only in North America is engagement declining (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 29

Dachis Group Perhaps the most
significant change... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 30

Dachis Group Mobile is where
engagement will happen • Smart mobile devices • • • • outshipped PCs in early 2011 Tablets are expected to on par with PCs this year Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs Global mobile data going geometric is going to be the largest challenge to growth and use App stores are creating all new conduits between IT suppliers and workers (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 31

Dachis Group Mobile Internet Ramped
Up Faster Than Desktop Internet by 10x Source: Mary Meeker, Morgan Stanley (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group But Channel Fragmentation
Is Now The Norm + 400 social networks with over 1 million users = aggregate audience of about 1,400 million 2 billion mobile Internet users + 100 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer and Worker Engagement ® 2013 Dachis Group. Confidential and Proprietary 33

Dachis Group The Risks of
Inaction on Mobile Engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group The Smart Mobility
Lesson • Mobility isn’t just about computing that can move around • It’s a fundamental re-invention of computing • Powerful new business possibilities now exist • We must reinvent our businesses around what these new platforms make possible (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Why Smart Mobility
is qualitatively different • • • • • • • • • • Sensors (and lots of them) Always connected Location awareness in 3D space App stores Long battery life Always on Touch-based interfaces Voice control New operating systems Integrated usage (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Opportunity - The
Stories • • • • • • Augmented Reality Real-time Translation The “Taxi” Button Multi-point Video Conferencing The CRM “lite” app & “walking the line” Business intelligence (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Wearable Work Tech
Enterprise Smart Watches Hitachi Business Microscope (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. Google Glass

Dachis Group Machine Brain Interfaces
(cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Everything will have
an IP address (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Replicator technology has
arrived • 3D scanning and printing will • • • • (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. fundamentally remake supply chains Design becomes the most important element of business Homes and workplaces will increasingly focus on suppliers of design, rather than suppliers For many industries, workers will have to move from building things to designing them A growing majority of things will eventually be 3d printed for work or home

Dachis Group What other changes
to the workplace? • Rethinking the office • Virtual spaces. They’re • • • • back. Unification of communication Mass, open participation in business processes Community-centric work platforms The collaborative economy (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. mobile office pods

Dachis Group Key data point
#2 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 1B 100% projected 75% 750M imate h est hig 500M 50% e stimat Percent of Enterprises dominant form of Internet communication on the planet • Enterprises are 2-4 years behind the rest of the world. • Yet data shows that revenue of social businesses is 20+% higher on average. Profitability is better too. - Source: McKinsey and Frost & Sullivan Global Users • Social is now the The Adoption Rates of E-mail, Social Networks, and E2.0 low e 25% 250M 2006 2007 Consumer Social Networks 2008 2009 E-mail 2010 2011 Enterprise 2.0 Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC 43

Dachis Group Hundreds of public
social networks... (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 44

Dachis Group (cc) 2013 Dachis
Group. Creative Commons. Some Rights Reserved.

Dachis Group 21% increase in
bottom line in Q4 2011 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group Organizations that extensively
use social media have 1.6 times higher profit growth. -Frost and Sullivan (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group The benefits of
social engagement (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 48

Dachis Group Fully social organizations
get outsized benefits Source: 2011 McKinsey Web 2.0 Survey 3,103 large firms represented in total (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 49

Dachis Group The biggest challenge:
Engaging at scale (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 50

Dachis Group The Cloud Is
Increasingly Subversive • • • • • • • It’s in our worker’s homes It’s on their laptops and PC at work It’s in our worker’s pockets It’s the world’s largest IT department It has all the data It has all the apps It has all the people (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 51

Dachis Group A new mindset
has arrived: Consumerization • • • • • • DIY “It’s not so hard, I can do this myself.” “There’s an app for that.” “I’ll just install this myself.” “What’s the URL for that?” “We’ll ask for forgiveness instead of permission.” “This app is way too hard to use. I’ll use my own.” Simple Fast Easy And Works The Way They Want It To (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 52

Dachis Group A tidal wave
of data • 80-90% of IT information is not accessible • The amount of information today is just a trickle compared to what it will be in 2-3 years • It will require all new technologies and skills that IT departments don’t have • Google Search and Analytics has taught all of us how easy it should be (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 53

Dachis Group Our information landscape
is now measured in millions of exabytes 1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes • Social ecosystems are largely responsible today. • Soon it will be sensors that are the dominant data source. • The good news: Information is no longer submerged. • However, it is increasingly becoming an onslaught. Visible Knowledge Us (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 54

Dachis Group “Information overload is
not the problem. It’s filter failure.” - Clay Shirky (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 55

Dachis Group (cc) 2013 Dachis
Group. Creative Commons. Some Rights Reserved. 56

Dachis Group Big Data in
the future workplace • Obtain simple, easy to use business • • • • • • intelligence tools anyone can use Don’t forget Google is a big data app Should be cross silo Must integrate internal and external data Must provide actionable business-level insights, not just raw stats Some existing BI tools can do this Then “Moneyball” your business processes But brand new online services will typically bring this to your organization (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 57

Industry: Finance The Story: The
Motivation: Last year, WiseWindow, a syndicated data provider, provided its real-time social media sentiment measurement technology, Mobi, across Bloomberg's network of 300,000 desktop terminals. WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sources are truly predictive of an industry's stock prices." Their social data analysis was found to boost investment returns by over 30% annually.

Industry: Disaster Management The Story:
The Motivation: In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter turned out to be the first and richest source of data, even over the official U.S. Geologic Survey. Many visualizations have been created to show how the information about natural disaster (see the Wall Street Journal example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.

Industry: Telecommunications The Story: The
Results: Source: Financial Times T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media. The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.

So. How Do We Get
There? ® 2012 Dachis Group 61

Dachis Group For IT, tech
change today is nearly unsustainable (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 62

Dachis Group Rethinking tech adoption
• Ignoring technology change isn’t the • • • • answer Maintaining backlogs isn’t the answer Giving up isn’t the answer Proceeding in the same direction isn’t the answer Letting everyone do whatever they want isn’t the answer • Should we look at new models for IT? (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 63

Dachis Group Facing Reality: IT
is becoming pervasive and user-driven • In 2000, only 10% of IT was unsanctioned or outside of central control • Today that’s 30% and climbing quickly. • Gartner now says 90% by 2019 CoIT Traditional IT 2000 (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 2010 2013 64

Dachis Group We Must Become
Resilient to Constant Change There is great economic and social value in achieving this (in pink above) (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 65

Dachis Group How do we
design for loss of control? • “Make change an integral function. Native.” - JP Rangaswami frequent adaptive course corrections growth renewal (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. cycles of change refinement disruption 66

Dachis Group Designing The Future
Workplace • Empower workers and business • • • • • partners on the edge: New tech fundamentally changes what’s possible Unconstrain: Provide everyone simple, easy to understand rules of engagement for social, mobile, big data, and cloud. Lay the foundation for managing and governing 10-100x more IT and data. Throw out the traditional IT playbook & go “emergent.” Identify future workforce skills, then cultivate or hire for them. - Engagement skills of every flavor - Both IT & the business must become design thinkers - Continuously cultivate, measure, and optimize workforce engagement Become a change agent and an IT revolutionary. You might not have your job in it’s current form long anyway.

Dachis Group Also See: Social
Business By Design • Published May, 2012 • From John Wiley & Sons • The definitive management • • • • strategy guide and handbook on social business. Explores major real-world successes and how to emulate them.. The most complete and business-focused statement on what social business is and why it’s strategically vital. Recently #1 in Amazon’s Hot New Releases Companion Web site at http://socialbusinessbydesign.com (cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved. 68

Thank you
dion.hinchcliffe@dachisgroup.com | @dhinchcliffe