Digital Disruption It’s not about technology Rick Yvanovich Andrew Duck Founder & CEO CEO & CTO TRG International Aversafe
How open-minded are you about Digital Disruption? Discuss in groups how digital transformation and digital disruption is impacting you
Digital Transformation Myth or Reality To lead your organisation’s technology transition Step #1 is grasping the realities of digital transformation and not get seduced by the hype
Myth or Reality #1 Every co Ev company should ld digitally lly transfo form • Re Real ality : Not every company, process, or business model requires digital transformation • Can my company model its existing processes? If not how can you transform them? • And just because you can doesn’t mean you should • Remember ROI
Myth or Reality #2 Di Digital trans nsformation n leverages emerging ng or disrupt ptive techno hnologies • Re Real ality : Most short-term transformational impact comes from “conventional” operational and strategic technology — not from emerging or so-called “disruptive” technology • Uber disrupted conventional Taxis by transforming both how to get a ride and who provides the ride • AirBnB disrupted conventional Hotels by transforming both how you book a room and who provides the room • Amazon disrupted conventional book buying by transforming how you purchase a book and subsequently how you select a book 5
Myth or Reality #3 Profitab Pr able e compan anies es ar are e the e most likel ely to laun aunch suc ucces essful ul digital al transformati tr tion p projects ts • Re Real ality : If things are going well — defined crassly as employee and shareholder wealth creation — then the chances of transforming anything meaningful are quite low • Where employees are comfortable you’ll find greater resistance to Digital change • Failing companies more motived to transform else they’ll die anyway • Least resistance where company is in death throes or a start-up burning (someone else's) cash 6
Myth or Reality #4 We need to disru We srupt our r in indust stry ry before re so someone else se does • Re Real ality : Disruptive transformation seldom begins with market leaders whose business models have defined their industry categories for years • Historically, industry disruptors have often been startups making bold bets on old industries: • Amazon • AirBnB • Uber / Lyft • Netflix 7
Myth or Reality #5 Better Tech Be chnolo logy Is a Ke Key Point of f Digital l Transfo formation • Re Real ality : Many people make a mistake of thinking that digital transformation means simply digitalization of the business • Yes technology is important and so is: • Organisational structure • Organisational culture • Need to change • Change Management • Mindset • Leadership • New Roles • New Skills 8
• Bitcoin bypasses traditional banks with blockchain Established • Coursera and edX, threaten biz business schools with massive open online courses (MOOCs) models are • Uber sidesteps license system under attack that protects taxicabs How exactly do new entrants achieve their disruptive power? What enables them to skirt Since 2000 constraints and exploit unseen 52% of Fortune 500 possibilities? companies bankrupt / acquired / ceased to exist due to If technology is NOT what’s disrupting most .. then what is ? Digital Disruption Discuss
Co Consumers ar are chan angin ing be beha haviour ur Di Disruption is driven by Consumers
Di Disruption is driven by Consumers Business models must change to survive and / or De Decoupling drives Consumer Disruption thrive
Disruptors break some links & steal stages Customers happily separate value-creating from non-value creating parts
Examples of decoupled activities & disruptors
3 types of decoupling Decoupler takes for itself 1 activity that creates value for customers
Focusing on consumers helps us understand more deeply whether What really drives startups will succeed decoupling? or fail at stealing customers from incumbents in existing markets.
Incumbents integration forces vs Decouplers’ specialisation forces
5 step process for disrupting with decoupling
Customer considerations & potential for disruption
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