Eestec digital disruption 22-7-2013
-
Upload
leonardo-zangrando -
Category
Business
-
view
523 -
download
2
description
Transcript of Eestec digital disruption 22-7-2013
@lionzan
#didi13
DigitalDisruption
Leonardo Zangrando@lionzan
@lionzan
#didi13
Leonardo Zangrando, MBA, MEng● Business Strategist● People Trainer● focus on Innovation & Entrepreneurship
– bridging innovation strategy and implementation– shaping the organisation for innovation– providing the tools for innovation– training and coaching innovators
Hands-on, active-learning seminars, workshops and courses on innovation & entrepreneurship for international organisations, in English, Italian and Spanish.● Business Model Innovation● Adaptive Development of Innovation Ideas● Early Market Validation of Innovation Ideas● Digital Disruption● Social Selling
● I developed my strategy expertise since 1999 as consultant to global corporations on business strategy and sales & marketing strategy.
● In the same timeframe I took the opportunity to become involved in hands-on management projects for business innovation, acting as interim CTO, COO and CEO.
● I built my people development skills by training, assessing and coaching large B2B sales forces since 2008, on strategic selling and key account management. In the same area I recently developed training programs on digital disruption and social selling.
● Since 2010 I focused on innovation and entrepreneurship, pioneering the convergence of these 2 areas, and now I help companies reshape their innovation activities and structure building on an entrepreneurial model.
● In 2013 I developed the "Learning From Failure" HR management hack with Gary Hamel's MIX and the CIPD around the theme "Hacking HR for Adaptability Advantage."
@lionzan
#didi13
Digital
Disruption
this presentation under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 UnportedCC BY-NC-SA 3.0 Leonardo Zangrando check terms on http://creativecommons.org/licenses/by-nc-sa/3.0/
EESTEC Mobile Summer SchoolUniversity of Trieste
22 July 2013
@lionzan
#didi13
phot
o cr
e dit:
CC
- by-
nc-A
n ton
io L
opes
@lionzan
#didi13
WHOOPS! No, not this
one!
phot
o cr
e dit:
CC
- by-
nc-A
n ton
io L
opes
@lionzan
#didi13
phot
o cr
e dit:
CC
- by-
nc-G
a mali
el E
s pino
za M
aced
o
@lionzan
#didi13
No NEO, not even this one...
phot
o cr
e dit:
CC
- by-
nc-G
a mali
el E
s pino
za M
aced
o
@lionzan
#didi13
We'll talk about how Digital
is Disrupting the way companies
Innovate today
@lionzan
#didi13
and yes, NEO, they also have to choose...
@lionzan
#didi13
and yes, NEO, they also have to choose...
the blissful ignorance of illusionor
embracing the painful truth of reality
@lionzan
#didi13
and yes, NEO, they also have to choose...
the blissful ignorance of illusionor
embracing the painful truth of reality
@lionzan
#didi13
How do companies innovate?
@lionzan
#didi13
the traditional modelabout who does innovation...
structured
internal
R&D LabsNew Product Dev.
MarketingLaunch
@lionzan
#didi13
...is changing
Open InnovationLicensingAcquisition
CommunityCo-creation
Intra-preneursinternal
structured
external
unstructured
R&D LabsNew Product Dev.
MarketingLaunch
@lionzan
#didi13
What do companies innovate?
@lionzan
#didi13
also the innovation focus...
ValueCreation
@lionzan
#didi13
...is expanding
ValueCreation
ValueDelivery
@lionzan
#didi13
...is expanding
ValueCreation
ValueDelivery
Value Capture
@lionzan
#didi13
...is expanding
ValueCreation
ValueDeliveryVa
luePr
o pos
iti on
Value Capture
@lionzan
#didi13
but other challenges are coming
@lionzan
#didi13
Who is innovating?
@lionzan
#didi13
there are more opportunities...● in the past you needed a large infrastructure to innovate● and few people were in the position to do it
Today a digital innovator has more innovation opportunities than an “analogic” innovator in the past
Larger scope of innovation “objects”
Larger number of potential innovators
@lionzan
#didi13
there are more opportunities...● in the past you needed a large infrastructure to innovate● and few people were in the position to do it
● today a digital innovator has more innovation opportunities than an “analogic” innovator in the past
● larger scope of innovation “objects”● larger number of potential innovators
10x? 100x? 1000x?
@lionzan
#didi13
...at a lower cost● innovation in the digital era is much cheaper than
in the analogic era– the tools for innovation are substantially free– the time required to innovate is substantially shorter
● the cost of innovation is drastically reduced
1/10? 1/100? 1/1000?
@lionzan
#didi13
..leading to dramatic results
10x 1/10more innovators of cost
100xinnovationcapacity
“analogic”innovation
digitalinnovation
@lionzan
#didi13
“Why should I innovatewhen I am the ownerof the infrastructure?”
phot
o cr
e dit:
CC
- by
mel
anie
_hug
hes
@lionzan
#didi13
“Why should I innovatewhen I am the ownerof the infrastructure?”
phot
o cr
e dit:
CC
- by
mel
anie
_hug
hes
@lionzan
#didi13
“Why should I innovatewhen they are
crazy for it?”
phot
o cr
e dit:
CC
- by-
nc S
if ter
@lionzan
#didi13
“Why should I innovatewhen they are
crazy for it?”
phot
o cr
e dit:
CC
- by-
nc S
if ter
@lionzan
#didi13
a repeating storyhow could Chinese manufacturing industry
surpass Western one?
phot
o cr
e dit:
CC
- by-
nc d
c mas
ter
@lionzan
#didi13
a repeating story
how could Chinese manufacturing industry surpass Western one?
Cheap labor cost
Western labor cost is much higher
Replication of existing productive systems and use of existing distribution platforms
The cost of developing these systems and platforms has already been covered by Western economy in the past
Market already developed The cost for developing the markets had already been covered by Western economy
@lionzan
#didi13
a repeating storytoday we notice a similar situation in the context of digital innovation,
but the challenge is not coming from a single country
companies unable to adopt the new model will inevitably disappear
Cheap labor cost Development tools are free or very cheap
Replication of existing productive systems and use of existing distribution platforms
Digital platforms already exist
Market already developed Digital customers rapidly growing
@lionzan
#didi13
good news
companies willing to adopt Digital Disruption
have less constraints to change
than the companies competing againstChinese manufacturing had
@lionzan
#didi13
digital readiness assessment
how do large companies get ready to manage digital disruption?
June 2012 study by Forrester Research
285 global executives invited to participate
@lionzan
#didi13
A
B
C
D
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
How much do you agree the following statementsapply to your company?
Level of agreement (5 points scale, top 2 boxes)
all
VP
< VP
% a
gre
e
enthusiastic but disenchanted
A) People in our company are excited about the changes that digital will bring to our company
B) people in our company have the skills needed to adapt to the changes that digital will bring to our company
C) Our company has policies and business practices that will enable us to adapt to the changes that digital will bring to our company
D) Our company will put the right resources (people, budget, time) in place to adapt to the changes that digital will bring to our company
Base: 285 global executives invited to participateSOURCE: Forrester Research – Digital Readiness Assessment, June 2012
@lionzan
#didi13
A
B
C
D
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
How much do you agree the following statementsapply to your company?
Level of agreement (5 points scale, top 2 boxes)
all
>1000 empl.
<1000 empl.
% a
gre
e
large companies doing worse
A) People in our company are excited about the changes that digital will bring to our company
B) people in our company have the skills needed to adapt to the changes that digital will bring to our company
C) Our company has policies and business practices that will enable us to adapt to the changes that digital will bring to our company
D) Our company will put the right resources (people, budget, time) in place to adapt to the changes that digital will bring to our company
Base: 285 global executives invited to participateSOURCE: Forrester Research – Digital Readiness Assessment, June 2012
@lionzan
#didi13
The Challenge
@lionzan
#didi13
how does a digital innovator think?
digital innovators grew up in a time when the possibilities of digital are way more than the limitations
of the analogic
a Digital Innovatorsees
Possibilities rather than Hurdles
@lionzan
#didi13
the challenge
if we don't start thinking like thatwithin our companies
SOMEONE ELSE WILL DO IT OUTSIDE
making us quickly irrelevant
@lionzan
#didi13
how do we do it?
Support thedevelopment of a digital innovation
culture
Put digitalinnovation behaviorsin place
Innovatefrom withinstarting now
Culture Process
Infrastructure
@lionzan
#didi13
cultureAnalogic Innovation
Scarcity Model
“How can we create a new productand sell it successfully?”
Create – which are our capabilities to build a product that we know how to make?
Product – which is the market for a product that I know already how to make?
Sell – how can we position in the market to acquire customers that we already know who they are?
Digital InnovationAbundance Model
“How can we offer customerswhat they need/desire?”
Create Give – the focus is on what we could give to our customers instead of what we can build.
Product Customers – the focus is on customers needs rather than on the product itself.
Sell Need – the focus is on satisfying customer's needs, not only with a product but with a total experience, rather than just pushing the product to the customer.
keywords
@lionzan
#didi13
“Wait, I've Heard thisCustomer Centric Hype
for Ages!”
What's New?
@lionzan
#didi13
Visual History of the Relationship
between Company and Customer
@lionzan
#didi13
● Build it and they'll buy it● Create needs, change customers
behavior● Hey, customers do have a brain!
And they talk to each other!
early 20th century“Build it and they'll buy it”
focus: Product
phot
o cr
e dit:
CC
- by-
nc-s
a -N
okes
@lionzan
#didi13
● Build it and they'll buy it● Create needs, change customers
behavior● Hey, customers do have a brain!
And they talk to each other!
early 20th century“Build it and they'll buy it”
focus: Product
phot
o cr
e dit:
CC
- by-
nc-s
a -N
okes
“Happy Customer”
@lionzan
#didi13
late 20th century“Create needs,change behaviors”
focus: Customer Consumer
phot
o cr
e dit:
CC
- by-
nc-s
a do
n j s
chult
e @
oxh
erd
arts
@lionzan
#didi13
phot
o cr
e dit:
CC
- by-
nc-s
a do
n j s
chult
e @
oxh
erd
arts
late 20th century“Create needs,change behaviors”
focus: Customer Consumer
“Happy Customer”
@lionzan
#didi13
early 21st century“Hey! they have a brain!
And they talk to each other!”focus: Customer Person
phot
o cr
e dit:
CC
- by-
sa G
r uba
n
@lionzan
#didi13
customers talk to each otherthanks to the Digital Revolution
how do we treat them now?
@lionzan
#didi13
“More marketing, on the new digital channels!”
@lionzan
#didi13
Billboards
Loyalty cards
Cinema ads
Customer service
Radio spots
Yellow pages
Printed ads
PR
Brochure
Banners
CRM programs
YouTube pre-rolls
Social support
Spotify ads
Google AdWords
Facebook promoted content
Blogging
Newsletter
thanks to Nicolas Moerman for sharing this in “Screw Experts” on slideshare.net/NicolasMoerman/
@lionzan
#didi13
Billboards
Loyalty cards
Cinema ads
Customer service
Radio spots
Yellow pages
Printed ads
PR
Brochure
Banners
CRM programs
YouTube pre-rolls
Social support
Spotify ads
Google AdWords
Facebook promoted content
Blogging
Newsletter
thanks to Nicolas Moerman for sharing this in “Screw Experts” on slideshare.net/NicolasMoerman/
@lionzan
#didi13
aren't we just using new media in an old way?
@lionzan
#didi13
phot
o cr
e dit:
CC
- by-
nc-s
a dr
akeg
o odm
an
Disclaimer: not implying that we should shoot customers!But sure we did hit (figuratively) sheep and dogs in the past...
@lionzan
#didi13
PUSH!
PUSH!
PUSH!
PUSH!PUSH!PUSH!
PUSH!PUSH!
PUSH! PUSH!
@lionzan
#didi13
does “push” still work nowadays?
@lionzan
#didi13
“Come dear, take your medicine!”
“Oh mum, it's so good! May I have some more?”
phot
o cr
e dit:
CC
- by
Bosto
n Pu
blic
L ibr
ary
@lionzan
#didi13
how can we engage with customers for real?
@lionzan
#didi13
PUSH!
PUSH!
PUSH!
PUSH!PUSH!PUSH!
PUSH!PUSH!
PUSH! PUSH!
@lionzan
#didi13
listen
PUSH!
PUSH!
PUSH!
PUSH!PUSH!PUSH!
PUSH!PUSH!
PUSH! PUSH!
@lionzan
#didi13
listen
participate
PUSH!
PUSH!
PUSH!
PUSH!PUSH!PUSH!
PUSH!PUSH!
PUSH! PUSH!
@lionzan
#didi13
listen
participatecollaborate
PUSH!
PUSH!
PUSH!
PUSH!PUSH!PUSH!
PUSH!PUSH!
PUSH! PUSH!
@lionzan
#didi13
can it be the matter of some specialist team?
@lionzan
#didi13
...or is it becoming a company-wide affair?
@lionzan
#didi13
...or is it becoming a company-wide affair?
@lionzan
#didi13
“Ce n'est pas une révolte,c'est une révolution.”
@lionzan
#didi13
Personal Revolutions
@lionzan
#didi13
Digitally-Driven
Personal Revolutions
@lionzan
#didi13
Digitally-Driven
Personal Revolutions
in Business
@lionzan
#didi13
digitally-driven personal revolutions
Productivity
1984 - Personal Computer
@lionzan
#didi13
digitally-driven personal revolutions
Productivity
1984 - Personal Computer
“why should our employees use personal computers?computing is managed by our IT department!”
@lionzan
#didi13
computing is not a specialist's matter any more, it has beencommoditised and is embedded in almost all life aspects ph
oto
cre d
it: C
C- b
y-nc
-sa
mar
smet
472
@lionzan
#didi13
digitally-driven personal revolutions
Connectivity
1995 - Internet and E-mail
@lionzan
#didi13
digitally-driven personal revolutions
Connectivity
1995 - Internet and E-mail
“why should our employees have individual emails?they can communicate by telephone and ordinary mail!”
@lionzan
#didi13
“Russia's agency responsible for the Kremlin security is buying typewriters, a movereportedly prompted by recent leaks by WikiLeaks and Edward Snowden” - bbc.co.uk*
phot
o cr
e dit:
CC
- by-
nc-n
d Di
to_1
3
* just Google “snowden typewriter”
@lionzan
#didi13
digitally-driven personal revolutions
Portability
2008 - Smartphones
@lionzan
#didi13
digitally-driven personal revolutions
Portability
2008 - Smartphones
“why should our employees need portable computing?we provide them with the best hardware!”
@lionzan
#didi13
further development is coming with BYOD policies,bring your own device, enabled by SaaS
phot
o cr
e dit:
CC
- by
jgog
e
@lionzan
#didi13
this is where you are focusing right now
@lionzan
#didi13
and you're right, there's still so much to do!
@lionzan
#didi13
BUT...
@lionzan
#didi13
what will happen next?
@lionzan
#didi13
digitally-driven personal revolutions
Relationship
NOW - Social Networking
@lionzan
#didi13
digitally-driven personal revolutions
Relationship
NOW - Social Networking
“why should our employees use social networks for work?our marketing team is already taking care of it!”
@lionzan
#didi13
let's talk about it
@lionzan
#didi13
let's talk about it
@lionzan
#didi13
customers and social● 94% Digital Natives say they do not use emails on
a regular basis, they prefer Facebook and other social networks to communicate
● generation X represents the largest increase in Facebook and other social networks use
● the fastest growing segments in Facebook are in the Baby Boomers generation
SOURCE: The Facebook Era by Clara Shih
@lionzan
#didi13
social networks ascommunication platform
@lionzan
#didi13
social networks ascommunication platform
@lionzan
#didi13
widespread adoptionacross age groups
2009 2010 20110%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1% 1% 2%
11% 10% 10%
14% 13% 13%
16%16% 16%
11% 13% 14%
10% 11%12%
6% 7%8%2%
3%3% 65+
55-64
45-54
35-44
25-34
18-24
0-1112-17
SOURCE: eMarketer, Feb 2011 and World Bank data
Use of Social Networks is spreading across Age Groups (US data)po
pulat
ion
@lionzan
#didi13
what do our customers doon social media?
● Talk about us and our competition● Research our products and the competitors'● Get their peers' feedback on products● Create a solution before getting to us
CustomerDue Diligence Begins
Customer FirstEngagement with Sales
Purchase
57%
source: CEB, Customer Purchase research Study, 2011 n=1,399
@lionzan
#didi13
"People have been complaining about companies forever, but before they did it at the water cooler or at the bar, now they are doing it on-line and
spreading their complaints to disparate communities."
Bernhard Warner, co-founder of London-based consultancy Social Media Influence.
@lionzan
#didi13
remember the Abundance Model
“How can we offer customers
what they need/desire?”
@lionzan
#didi13
a way to escape commoditization
offer customers value that goes beyond the product
– transparency– responsiveness– collaboration
@lionzan
#didi13
social is where customers are
(also in B2B, customers are made of people)
Q. Can social be a way to offeradditional value to customers
through our employees?
@lionzan
#didi13
social in the hands of employees?
● keeping control of corporate image
● assuring compliance
@lionzan
#didi13
social in the hands of employees?
● keeping control of corporate image
● assuring compliance
@lionzan
#didi13
social in the hands of employees?
● keeping control of corporate image
● assuring compliance
● loosing touch with customers
● loosing opportunitiesfor business
@lionzan
#didi13
social in the hands of employees?
● keeping control of corporate image
● assuring compliance
● loosing control of corporate image
● loosing control on compliance
● establishing personal relationship w. cust.
● surfacing opportunitiesfor business
● loosing touch with customers
● loosing opportunitiesfor business
@lionzan
#didi13
social in the hands of employees?
● keeping control of corporate image
● assuring compliance
● loosing control of corporate image
● loosing control on compliance
● establishing personal relationship w. cust.
● surfacing opportunitiesfor business
● loosing touch with customers
● loosing opportunitiesfor business
@lionzan
#didi13
what's the cost of inaction? ( )i.e. the two Digital Challenges
1. the digital world is challenging not only because customers are on social networks...
● they talk among them (about us), and● they will end up talking to our competitors
2. also because it's a powerful source of innovation...● someone else will do it!
@lionzan
#didi13
and the advantage of action? ( )potential of social technologies to improve productivity at different pointsin the value chain in major sectors of the economy
@lionzan
#didi13
what does that mean for sales?● sales effectiveness - customer facing
– establish credibility– prospecting and first call– knowing the customer inside– dealing with complaints at the root– maintaining a relationship– after sales servicing
● sales effectiveness - indirect– collaborating with sales team– social proof from existing customers
@lionzan
#didi13
Social media helps reps make direct connections with pro-spects to refine forecasted pipeline
internal collaborative social tools benefit team-based selling
Regular, active use of posts, tweets, forums by reps con-tributing to online conversa-tions, to impact eventual buy-ing decisions
Our sales team actively “l-istens” to external social con-tent pertaining to customers, accounts and target markets
0%
5%
10%
15%
20%
25%
30%
35%
40%
34%
30%29%
28%
20%
26% 26%
21%
8%
11% 11%
15%
Best Practice for Mature Social Sellers
SOURCE: Aberdeen Group, 2012; base n=182
best-in-classindustry averagelaggards
% re
spon
dent
s
@lionzan
#didi13
what would we needto enable social?
enabling employees to be on social...
AND
assuring compliance and other corporate constraints
is there any solution to this puzzle?
@lionzan
#didi13
Digital Revolutionis Happening Around Us
we can make it happen...or will it happen to us?
or, to say it with Randy Pausch (The Last Lecture, 9/18/2007)
We cannot change the cards we are dealt,just how we play the hand.
@lionzan
#didi13
Questions?
@lionzan
#didi13
Thank you!
@lionzan
#didi13
Leonardo Zangrando
Business Innovation - Social Selling – Startup Coach
[email protected]+39 349 4627 186
@lionzan