DON SMITHMIER
LEADERSHIP IN THE
DIGITAL TRANSFORMATION
ERA
DON SMITHMIER
GOKART LABS

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WHAT WE’RE GOING TO COVER
1 WE'VE ENTERED THE AGE OF THE CUSTOMER
WE ARE WITNESSING A MASS EXTINCTION EVENT, BUT IT CAN BE AVOIDED2
AVOIDING IT REQUIRES ADAPTATION, WHICH IS REALLY HARD3
THE PROBLEM ISN'T TECHNOLOGY OR MONEY -- IT'S HUMANS4
I HAVE A NEW METHOD/TOOL THAT CAN HELP5
WE'LL USE A REAL EXAMPLE TO LEARN ABOUT IT6
THEN WE'LL LEARN FROM EACH OTHER7

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LAST YEAR WE TALKED ABOUT
THE AGE OF THE CUSTOMER

1900 1960 1990 2010
Age of manufacturing Age of the customerAge of InformationAge of distribution
Mass marketing makes
industrial powerhouses
succeed (Ford, Boeing, GE)
Global connections and
transportation make
distribution key (Wal-Mart,
P&G, UPS)
The internet puts those that
control the flow of
information in control
(Google, Amazon, Comcast)
Empowered buyers demand a
new level of customer
obsession (Salesforce,
Amazon, Macy’s)
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AGE OF THE CUSTOMER

Age of the customer
2007 20222014
The Mobile Tipping Point
With half of consumers buying via mobile,
the competition is not just about price
and speed, but about the digital
experience they have with your brand
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AGE OF THE CUSTOMER

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AGE OF INFORMATION = ACCESS + SCALE
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AGE OF CUSTOMER = ADAPTABILITY + SPEED

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“Since 2000, over 50 percent of Fortune
500 companies have been acquired,
merged, or declared bankruptcy.”
- Innosight

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- McKinsey
“Mass-extinction events don’t just happen for
no reason. In the current extinction event,
the causal factor is digital transformation.”

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ADAPTATION
IS HARD
SPECIES WHO AVOID EXTINCTION HAVE THE ABILITY TO ADAPT

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INVESTMENT
FOR BUSINESSES, IT REQUIRES…
+ CHANGE

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INVESTMENT
FOR BUSINESSES, IT REQUIRES…
+ CHANGE
HINT: THIS IS THE BIG ONE

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THE PROBLEM ISN’T
WILLINGNESS TO INVEST

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DATA-DRIVEN
DECISIONS
$240B
2018 SPENDING IN DIGITAL TRANSFORMATION
COMMUNICATION PLATFORMS
& INNOVATIONS
$326B
TECHNOLOGY &
OPERATIONS
$662B
HTTPS://WWW.TECHREPUBLIC.COM/ARTICLE/REPORT-DIGITAL-TRANSFORMATION-SPENDING-TO-HIT-1-7T-BY-2019/

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DATA-DRIVEN
DECISIONS
$240B
2018 SPENDING IN DIGITAL TRANSFORMATION
COMMUNICATION PLATFORMS
& INNOVATIONS
$326B
TECHNOLOGY &
OPERATIONS
$662B
HTTPS://WWW.TECHREPUBLIC.COM/ARTICLE/REPORT-DIGITAL-TRANSFORMATION-SPENDING-TO-HIT-1-7T-BY-2019/
SO, ENTERPRISES ARE INVESTING
BUT MANY ARE ONLY SPENDING ON
ONE PART OF THE PROBLEM

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TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS
SUCCESSFUL TRANSFORMATION
REQUIRES FOCUS ON 5 KEY AREAS

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TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS

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TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS
THE MAJORITY REQUIRE HUMAN CHANGE

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STARTUPS DON’T NEED TO TRANSFORM,
THEY JUST NEED TO GROW

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THE PURPOSE OF DIGITAL
TRANSFORMATION IS TO ACCELERATE
YOUR COMPANY’S ABILITY TO MEET
CUSTOMER EXPECTATIONS

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LET’S TALK ABOUT HOW TO
MANAGE TRANSFORMATION

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VIJAY KNOWS WHAT’S UP
THREE BOX SOLUTION
VIJAY GOVINDARAJAN

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THREE BOX SOLUTION
Abandon ideas that inhibit
growth or innovation
FORGET THE PAST
BOX 2
Build the future through
innovation
BUILD THE FUTURE
BOX 3
Keep your core business
strong and efficient
PROTECT THE PRESENT
BOX 1

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“Every act of creation is
first an act of destruction.”
- Pablo Picasso

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BOX TWO IS THE KEY
TO TRANSFORMATION
Abandon ideas that
inhibit growth or
innovation
FORGET THE PAST
BOX 2
What are the “weak signals” from the future?
What are the Sacred Beliefs that need to be challenged?
What incentives + policies slow our innovation?
What should we stop doing?
How will we avoid the three traps?

To win in the future, we
just need to do what
we’ve done in the past
TRAP
COMPLACENCY
This new thing threatens
our core business, so I
want to kill it
TRAP
CANNIBALIZATION
We’re amazing. No one is
good enough to beat us at
our own game
TRAP
COMPETENCY
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FORGET THE PAST
Abandon ideas that inhibit
growth or innovation
FORGET THE PAST
BOX 2
Build the future through
innovation
BUILD THE FUTURE
BOX 3
Keep your core business
strong and efficient
PROTECT THE PRESENT
BOX 1

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BLOCKBUSTER’S 3-BOX
Shorten store lines
Improve supply
Incentivize timely
returns and rewinding
Candy & popcorn for
more $ per visit
BOX 1
The internet won’t
affect our business
People like coming
to stores
Movies are played on
a machine (vcr/dvd)
Licensing deals can’t
be changed
Movies can’t be
downloaded
BOX 2
?
BOX 3

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BOX 2 THINKING BOX 3 THINKING
The internet won’t affect our business But how might it?
People like coming to stores What if they don’t?
Movies are played on a machine (vcr/dvd) Will that always be true?
Licensing deals can’t be changed What if they could be?
Movies can’t be downloaded How soon could that change?

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FORM A BOX 3 TEAM
WHAT COULD THEY HAVE DONE?
SEPARATE THEM FROM CORE BIZ
CHARGE THEM WITH WORKING ON THE
“WEAK SIGNALS” FROM THE FUTURE
INCENTIVIZE THEM DIFFERENTLY
PENALIZE ANY “FOOT DRAGGERS”
WHO BLOCK THEM

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IN THE MIDST OF THE MOST DIGITAL
TIME IN HISTORY, WE HAVE TO BE
MORE HUMAN THAN EVER

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HUMANS STRUGGLE WITH
CHANGE BECAUSE OF
INGRAINED BEHAVIORS
AND LIMITING BELIEFS
IT’S NOT EASY
BY NAMING AND
CHALLENGING OUR
LIMITING BELIEFS, WE
CAN CHANGE OUR
BUSINESSES

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THREE BOX SOLUTION
Abandon ideas that inhibit
growth or innovation
FORGET THE PAST
BOX 2
Build the future through
innovation
BUILD THE FUTURE
BOX 3
Keep your core business
strong and efficient
PROTECT THE PRESENT
BOX 1

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LET’S TALK ABOUT IT

THANK YOU