Technology Will Disrupt - Why, What and How?
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Why, what and how? Understanding the future by looking at the building blocks of business, technology and people. “The future is only complex if you fail to understand it from the point of view of what is driving the change.”
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Technology Will Disrupt - Why, What and How?
- 2. topics Part 1: The Complexity Gap / Asymmetric Competition Part 2: Fundamental Changes In The Nature Of Consumption Part 3: This is How Technology Works Part 4: Business Strategy & The Value Chain Part 5: Successful Innovators Don’t Care About Innovating Part 6: Three Concepts To Spark Your Imagination HELGE TENNØ JOKULL
- 3. - CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN, HBR.ORG, AN ANTHROPOLOGIST WALKS INTO A BAR link The biggest challenge CEOs face is the so called complexity gap. CEOs see a lack of customer insight as their biggest deficit in managing complexity. .. And rank “customer obsession” as the most critical leadership trait. PART1:THECOMPLEXITYGAP/ASYMMETRICCOMPETITION
- 4. CHANGES IN BEHAVIOR, DRIVERS, CATEGORIES AND PRODUCTS FIVE CUSTOMER GAPS / ASSYMETRIC COMPETITION: THE KNOWLEDGEABLE CUSTOMER PEOPLE AND COMPANIES HAVE CHANGED HOW THEY SHOP - AND OUR TOOLS NEED TO CHANGE WITH THEM NEW HABITS AND BEHAVIORS CHANGE THE IMPORTANCE OF ESTABLISHED MECHANISMS THE PRODUCT IS INFRASTRUCTURE- WHAT JOB IS THE CUSTOMER HIRING US TO DO - AND HOW COULD WE DELIVER ON THIS JOB? THE COMPETITION ISN’T NECESSARILY THOSE WHO LOOK AND FEEL IDENTICAL TO YOU - THE MOST LETHAL COMPETITION COMES FROM THE OUTSIDE DO YOU UNDERSTAND YOUR CUSTOMER - WHAT ARE CUSTOMERS PAYING FOR? HELGE TENNØ JOKULL PART1:THECOMPLEXITYGAP/ASYMMETRICCOMPETITION
- 5. CHANGES IN BEHAVIOR, DRIVERS, CATEGORIES AND PRODUCTS FIVE CUSTOMER GAPS / ASSYMETRIC COMPETITION: THE KNOWLEDGEABLE CUSTOMER PEOPLE AND COMPANIES HAVE CHANGED HOW THEY SHOP - AND OUR TOOLS NEED TO CHANGE WITH THEM NEW HABITS AND BEHAVIORS CHANGE THE IMPORTANCE OF ESTABLISHED MECHANISMS THE PRODUCT IS INFRASTRUCTURE- WHAT JOB IS THE CUSTOMER HIRING US TO DO - AND HOW COULD WE DELIVER ON THIS JOB? THE COMPETITION ISN’T NECESSARILY THOSE WHO LOOK AND FEEL IDENTICAL TO YOU - THE MOST LETHAL COMPETITION COMES FROM THE OUTSIDE DO YOU UNDERSTAND YOUR CUSTOMER - WHAT ARE CUSTOMERS PAYING FOR? WHAT IS YOUR CUSTOMER GAP / WHERE IS YOUR ASSYMETRIC COMPETITION COMING FROM? QUESTION: PART1:THECOMPLEXITYGAP/ASYMMETRICCOMPETITION HELGE TENNØ JOKULL
- 8. ARE YOU, THROUGH YOUR INNOVATION EFFORTS, TRYING TO PROLONG THE EXISTING PARADIGM OR MIGRATE TO THE NEXT ZONE OF MUTATION? QUESTION: PART2:FUNDAMENTALCHANGESINTHENATUREOFCONSUMPTION
- 9. TECHNOLOGY IN THIS SENSE IS ANYTHING THAT ENABLES A TYPE OF BEHAVIOR TO ACHIEVE A DESIRED OUTCOME example: a seminar, talk, sermon, class, workshop, game PART3:THISISHOWTECHNOLOGYWORKS HELGE TENNØ JOKULL
- 10. A. slow social change PART3:THISISHOWTECHNOLOGYWORKS
- 11. b. explosive behavioral change PART3:THISISHOWTECHNOLOGYWORKS HELGE TENNØ JOKULL
- 12. TECHNOLOGY IN THIS SENSE IS ANYTHING THAT ENABLES A TYPE OF BEHAVIOR TO ACHIEVE A DESIRED OUTCOME example: a seminar, talk, sermon, class, workshop, game PART3:THISISHOWTECHNOLOGYWORKS HELGE TENNØ JOKULL
- 13. are our current technologies limiting our outcome creation through a definite number of behaviors - can we accommodate or create new behaviors? SUBTITLE: DO WE NEED NEW TECHNOLOGIES TO ACCOMMODATE PRESENT AND FUTURE ECONOMIES? QUESTION: PART3:THISISHOWTECHNOLOGYWORKS HELGE TENNØ JOKULL
- 14. AN ORGANIZATION IS ESSENTIALLY A STRING OF COMPONENTS FORMING A VERTICAL VALUE CHAIN WELDED TOGETHER BY TRANSACTION COSTS. A BUSINESS’ COMPETITIVE ADVANTAGE IS THE SUM OR THE AVERAGE OF ITS TRANSACTION COSTS. COMPANIES USUALLY WIELD LARGE ADVANTAGES IN SOME COMPONENTS AND ARE LAGGING IN OTHERS. WITH DIGITIZATION WE CAN ACHIEVE ZERO MARGINAL COST IN SOME COMPONENTS – MEANING THAT THE TRANSACTIONAL COSTS PLUMMET TO A LEVEL WHERE THERE IS LESS OR NOTHING TO ECONOMIZE ON WHEN CERTAIN COMPONENTS IN THE VALUE CHAIN PLUMMET IT CAN CHANGE THE RULES OF THE GAME FOR AN ENTIRE INDUSTRY thevaluechain BUSINESSSTRATEGY& PART4:BUSINESSSTRATEGY&THEVALUECHAIN
- 16. which component(s) of our value chain has or is close to detach, switch or weaken? QUESTION: PART4:BUSINESSSTRATEGY&THEVALUECHAIN HELGE TENNØ JOKULL
- 17. SUCCESSFUL INNOVATORS DON’T CARE ABOUT INNOVATING PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING
- 18. “Successful innovators care about solving interesting and important problems - innovation is merely a byproduct” “By contrast, focusing on solving interesting and important problems tends to be born from customer-centered motives:” PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING
- 20. “So, the simplest explanation you’ll ever hear of why succesful organizations ultimately fail is this: They fail when the leaders fail to write of their own depreciating intellectual capital”. - GARY HAMEL link PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING
- 21. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. THIS IS THE CUSTOMER-JOB-TO-BE- DONE THE COMPANY HELPS SOLVE WHEN IT LAUNCHES PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING HELGE TENNØ JOKULL
- 22. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. THIS IS THE JOB IT IS HELPING CUSTOMERS SOLVE TODAY [COMPANIES GET STUCK IN THE IDEA OF THE ORIGINAL JOB. NOT SEEING THAT AS PEOPLE ARE PERFORMING AND SOLVING THE JOB THEY REDESIGN AND FRAGMENT IT. COMPANIES GET STUCK ON THE MAIN DESIGN, IGNORING CONCIOUSLY THE EXTENSIONS THAT EMERGE] PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING HELGE TENNØ JOKULL
- 23. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. THIS IS THE JOB THE COMPANY IS SOLVING IN THE FUTURE [EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB] PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING HELGE TENNØ JOKULL
- 24. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. THIS IS THE JOB THE COMPANY IS SOLVING IN THE FUTURE [EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB] HOW does core business and industry mindsets limit our ability to compete QUESTION: PART5:SUCCESSFULINNOVATORSDON’TCAREABOUTINNOVATING HELGE TENNØ JOKULL
- 25. 3CONCEPTS TO SPARK YOUR IMAGINATION IMAGE BY ERIC FISCHER ON FLICKR.COM PART6:TWOCONCEPTSTOSPARKYOURIMAGINATION
- 26. THE CONCENTRATED MODEL & THE HIDDEN SPACE IMAGE BY KYLE LAD ON FLICKR.COM PART6:TWOCONCEPTSTOSPARKYOURIMAGINATION
- 29. WHAT ARE WE DOING THAT DIRECTLY IMPACTS CUSTOMER VALUE? HOW ARE WE GOING TO SERVE THE CUSTOMERS BETTER? WHAT IS THE MOST VALUED OUTCOME WE CAN HELP THE CUSTOMER PRODUCE? HOW CAN THE CUSTOMER BENEFIT FROM FURTHER INDIVIDUALIZATION OF OUR EXPERIENCE? HOW CAN THE CUSTOMER BENEFIT FURTHER FROM VALUE TRANSFORMATION? HOW DOES CORE BUSINESS AND INDUSTRY-THINKING LIMIT OUR ABILITY TO COMPETE? HOW DO WE CAPTURE WHAT VALUE FROM THE CUSTOMER?WHAT IS OUR CUSTOMER EXPERIENCE? (COMPANIES SELL CUSTOMER INTERFACES / EXPERIENCE - NOT PRODUCTS) PAGE 3: CUSTOMER VALUE TENNØ 180360720.NO | JOKULL.IO HOW CAN WE CREATE AND CAPTURE CUSTOMER VALUE? A. WHAT ARE WE DOING THAT DIRECTLY IMPACTS CUSTOMER VALUE? HOW ARE WE GOING TO SERVE THE CUSTOMERS BETTER? B. WHAT IS THE MOST VALUED OUTCOME WE CAN HELP THE CUSTOMER PRODUCE? C. HOW CAN THE CUSTOMER BENEFIT FROM FURTHER INDIVIDUALIZATION OF OUR EXPERIENCE? D. HOW CAN THE CUSTOMER BENEFIT FURTHER FROM VALUE TRANSFORMATION? QUESTION: PART6:TWOCONCEPTSTOSPARKYOURIMAGINATION HELGE TENNØ JOKULL
- 30. Part 1: The Complexity Gap / Asymmetric Competition WHAT IS YOUR CUSTOMER GAP / WHERE IS YOUR ASSYMETRIC COMPETITION COMING FROM? Part 2: Fundamental Changes In The Nature Of Consumption ARE YOU, THROUGH YOUR INNOVATION EFFORTS, TRYING TO PROLONG THE EXISTING PARADIGM OR MIGRATE TO THE NEXT ZONE OF MUTATION? Part 3: This is How Technology Works are our current technologies limiting our outcome creation through a definite number of behaviors - can we accommodate or create new behaviors? SUBTITLE: DO WE NEED NEW TECHNOLOGIES TO ACCOMMODATE PRESENT AND FUTURE ECONOMIES? Part 4: Business Strategy & The Value Chain which component(s) of our value chain has or is close to detach, switch or weaken? Part 5: Successful Innovators Don’t Care About Innovating HOW does core business and industry mindsets limit our ability to compete? Part 6: Two Concepts To Spark Your Imagination A. WHAT ARE WE DOING THAT DIRECTLY IMPACTS CUSTOMER VALUE? HOW ARE WE GOING TO SERVE THE CUSTOMERS BETTER? B. WHAT IS THE MOST VALUED OUTCOME WE CAN HELP THE CUSTOMER PRODUCE? c. HOW CAN THE CUSTOMER BENEFIT FROM FURTHER INDIVIDUALIZATION OF OUR EXPERIENCE? d. HOW CAN THE CUSTOMER BENEFIT FURTHER FROM VALUE TRANSFORMATION? SUMMARY HELGE TENNØ JOKULL ofQUESTIONS
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