Udfordringer ved digital disruption

Andrea Carugati, AU BSSBørge Obel, AU BSSHenrik Løvig, North Media Online

Digital Trends

Reflections on Digital Disruption v. Andrea Carugati & Børge Obel

Digital disruption from a digital disruptor v. Henrik Løvig

Q&A

Agenda

BUSINESS AND SOCIAL SCIENCESAARHUS UNIVERSITY 4

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A new kind of competition? Speed

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A new type of competition? Numbers

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A new type of competition? PlatformsFirm Year (start) Employees Mkt Cap

BMW 1916 116.000 $53B

Uber 2009 7000 $60B

Marriott 1927 200.000 $17B

Airbnb 2008 5000 $21B

Walt Disney 1923 185.000 $165B

Facebook 2004 13.000 $334B

Kodak 1888 145.000 $30B (heyday)

Instagram 2010 13 $1B (acquisition)

• Ratio of employees of new to old companies

• Tenure on the market• Externalization of

value: the external community creates the value, not the

employees

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A new type of competition? Platforms

Rank Firm Mkt Cap $B

1 Apple 531

2 Alphabet 501

3 Microsoft 421

4 Exxon 393

5 Berkshire 360

6 Amazon 350

7 Johnson&Johnson 338

8 Facebook 334

9 General Electric 298

10 AT&T 262

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Source: Govindrajan & Srivastava, HBR, December, 2016

NEWER FIRMS OUTNUMBER OLDER FIRMS

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DIGITAL DISRUPTIONS HAVE INCREASED

Source: https://t.co/POo746UaK4

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Digital Disruption Flavors

Platform disruption

New market disruption

Death by a thousand cuts

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COMPLEXITY AND THE SYSTEM’S PERFORMANCE LANDSCAPE

Simple Complicated Disruptive

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Drama in the making

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Drama made? …

In which performance landscape is Walmart operating?

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COMPETITIVE LANDSCAPEAssess the attractiveness of positions using Porter’s 5-Forces- Rivals- Customers- Suppliers- New entrants- Substitutes /

complements

BUSINESS STRATEGY Corporate strategy:

Where to play (position)?

Competitive strategy: How to win?

Resources & capabilities

STRATEGY EXECUTION FOUNDATION- Operating Model- Enterprise

Architecture- IT Governance- IS capabilities

CONVENTIONAL APPROACH TO BUSINESS & IT STRATEGY

IMAGINE & HUNT COMPETITIVE ADVANTAGE

?

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Options for the next generation enterprise

P. Weill & S. Woerner, “Thriving in an Increasingly Digital Ecosystem,” MIT Sloan Management Review, Summer 2015, Vol. 56, No. 4, pp. 27-34, June 16, 2015.P. Weill & S. Woerner, “The Next Generation Enterprise: Thriving in an Increasingly Digital Ecosystem,” MIT Sloan CISR Research Briefing, Vol. XIII, No. 4, April 2013

Kno

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of Y

our E

nd C

onsu

mer

Com

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e

OMNI-CHANNEL ‘Own’ customer relationship Multi product customer experience to

address life events Integrated value chain

Banks, Retail, Energy Companies

ECOSYSTEM DRIVER Become the destination in your domain Add complementary and possibly

competitor products Ensure great customer experience Customer data from all interactions Match customer needs with providers Extract ‘rents’

Amazon, Fidelity

Part

ial

SUPPLIER Sell through other companies Potential for loss of power Core skills: low cost producer,

incremental innovation Insurance via agent,

Electronic producer via retailer, Mutual fund via broker

MODULAR PRODUCER Plug and play product/service Able to adapt to any ecosystem Constant innovation of product/service

PayPal, Kabbage

Value Chain Ecosystem

Business Design

Know

: nam

e or

IP a

ddre

ss, p

urch

ase

hist

ory

with

you

& o

ther

firm

s &

goa

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Who controls key decisions: brand, contracts, price, quality, participants, IP & data ownership, regulation

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Danske Bank Example

Digital disruption from a digital disruptor v. Henrik Løvig

”Omkostninger og risici ved ikke at være på forkant med digital disruption”

(læs: udviklingen)

Teknologi og kapital øger hastigheden……og gør udfordringen større

Mediekoncernerne kæmper med (og mod) digital disruption

To perspektiver fra samme koncern

Virksomhedskultur og -infrastruktur

North Media Online:Fokuseret strategi og massive investeringer

1. Sæt scenen: Samarbejde 100 % digitale Internationale Vinderkultur

2. Indsatsområder: Lejebolig Job Håndværkere Investeringer

3. Kompetencer: Har vi de rette? Forandring som

grundvilkår Employer branding

4. Investeringer: Mix af ekstern og

intern investering med synergi

2 stærke teams i Aarhus og Kbh.

Questions?

Thank you!

Andrea Carugati, PhDProfessorStudy Director, Master i ITandrea@mgmt.au.dk

Henrik Løvig

CEO, North Media Online

Børge Obel, PhDProfessorDirector, ICOAbo@mgmt.au.dk