Low Touch Economy - Innovation Leader

latest updates: lowtoucheconomy.com

The winners of the Low Touch Economy

MASTERCLASS - INNOVATION LEADER

boardofinnovation.com lowtoucheconomy.com

How companies can recover and innovate in the new normal

http://lowtoucheconomy.com

http://www.boardofinnovation.com/

http://www.lowtoucheconomy.com

Philippe De Ridder CEO & Founding [email protected] Connect on linkedin

mailto:[email protected]

https://www.linkedin.com/in/philippederidder/

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Board of Innovation is a strategy and business design firm. We partner with the world’s largest organizations to solve their biggest challenges through meaningful innovation. Relentlessly focused on impact.

Proudly independent for +10y New York - Amsterdam - Antwerp - Singapore

Learn more: www.boardofinnovation.com/client-cases/

Our life time mission is to inspire 100 million people to innovate for a better tomorrow.

Go-to-market Entrepreneur-in-residence

Business Design

Future Exploration

Growth Strategy

Opportunity Identification


http://www.boardofinnovation.com/client-cases/

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All reports: lowtoucheconomy.com

Winners in the Low Touch Economy - Winners and opportunities to copy - Readiness scorecard - Future of X: 10 experts

May 2020, +100 pages report

Shifts in the Low Touch Economy - Intro to the Low Touch Economy - Shifts in human behaviour - Strategy framework

March 2020, +30 pages report

+50 Business model pivots - Public google sheet - Innovations in different industries - business model patterns

Featured in:

http://www.lowtoucheconomy.com


What’s in store for the next 45-minutes?

02 03 04

The Low Touch Economy is here to stay


Opportunities & white-spaces to venture in

Q&A

01


6


Health measuresLow Touch measures to fight

current and future crises.

Economic disruptionMitigate the impact of the crisis,

both at the macro and micro level.

Behavior shiftsPeople change how they interact

with each other and with businesses.

Employees & consumers only participate in the economy

when they feel safe

New consumer needs emerge. Acceleration of product adoption

Pressure on family budget

People move the virus around

Restrict & nudge people

The feedback loop of the Low Touch Economy


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Here to stay?

Source: Fortune, CEO survey May 2020

8



Getting married with 100 guests calling in via Zoom might not be for everyone.

Opera visitors in Taiwan need to keep 3 seats empty in between each other. Many cinemas are experimenting with drive-ins.

Hair salons and other close-contact service jobs are hiring professional crews to disinfect material between shifts.

VRT, The Belgian national broadcaster, experiments with distance-detecting bracelets to protect actors while recording shows.

Singapore sends SPOT robot patrols to public parks to monitor and encourage physical distancing.

Numerous restaurants are trying to find the right balance between safety, comfort and cosiness.


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Robots replacing high-risk human interactions in service businesses.

Modified Honda with a pressurized air compartment to keep the driver safe.

South Korea Sports leagues resume games – without spectators. They expect to allow spectators and larger gatherings again soon.

Milan and many other cities are adding “temporary” bike lanes. Many city redesigns will become permanent.

Hong Kong: booths to disinfect airline personnel when entering airports

Conceptual design by Avio Interiors to make air travel safer


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It’s not a Plexiconomy ;)BIOVYZR by VYZR Tech PlexEat by Gernigon Studio

Knuffelscherm by STAS & FAROSunglass face shield by Joe Doucet

Which changes do you expect to stay?

In the chat:


02 03 04




Q&A

01


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A closer look at the first winners of the Low Touch Economy?

+$

-$

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Who is (more) prepared for the Low Touch Economy?


Employee interactions Is physical contact between employees and/or clients needed to conduct business?

Client interactions Clients and/or employees need to share the same equipment or objects?

Physical location Clients or employees share the same indoor spaces

Employee gatherings Employees work in groups closely together to run your business

Client Gatherings Clients are in groups to enjoy your product or service

Extra vulnerable Your employees or clients are (partly) vulnerable groups like elderly, …

Travel Client or employees need to travel (local vs international)

Supply chain Your business model is dependant on local or international supply chain

Demand Demand volatility of your business model is closely correlated with the health crisis

CHECKLIST


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Rate your readiness level for the Low Touch Economy


Employee interactions

Is physical contact between employees and/or clients needed to conduct business?

Client interactions

Clients and/or employees need to share the same equipment or objects?

Physical location

Clients or employees share the same indoor spaces

Employee gatherings

Employees work in groups closely together to run your business

Client Gatherings

Clients are in groups to enjoy your product or service

Extra vulnerable Your employees or clients are (partly) vulnerable groups like elderly, …

Travel Client or employees need to travel (local vs international)

Supply chain Your business model is dependant on local or international supply chain

Demand Demand volatility of your business model is closely correlated with the health crisis

1 2 3 4 5 Results: Lower scores are better 1 = doesn’t apply to your situation 5 = applies to your situation

‣ Score 1 or 2 at all sections? You should be able to adapt your organization with minor tweaks to the Low Touch Economy

‣ Any score 3, 4 or 5 needs to be addressed. This could reflect a significant hurdle to grow in the Low Touch Economy

‣ A total score above 25? You will need to redesign a large part of your business model and/or operating model to play any role in the Low Touch Economy.

‣ The higher the score, the more agile your organization needs to be. You must prepare for potential aftershocks in the market.

CHECKLIST 1



Peloton

‣ Exercise equipment and media

‣ Worldwide (HQ: New York)

‣ 1,800+ employees ‣ Revenue (2020

expected): $1.6bn

Employee interactions Virtual/remote gym instructors

Client interactions Your personal equipment (no sharing)

Physical location At your own place

Employee gatherings

Client Gatherings

Extra vulnerable

Travel

Supply chain

Demand



Beyond Meat ?

‣ Vegan food products Worldwide (HQ: El Sugundo, US)

‣ 400 Employees ‣ Revenue (2019):

$298M)

Employee interactions Can be produced in a safer environment

Client interactions

Physical location

Employee gatherings

Client Gatherings

Extra vulnerable

Travel

Supply chain Meat supply chain under pressure

Demand


18

+$

-$

How can I adapt my business to join the winners?

19

How to recover?

Unable to access your client? broken customer relationship

Drop in demand? short term vs long term

20

Broken relationship with your client?


Matterport helps realtors to make photorealistic scans of properties to offer clients virtual tours.

Some restaurants are switching to serving diners in small compartments for added safety while maintaining the social experience.

Go Instore offers a solution for salespeople in retail enabling them to guide customers remotely via live video and audio.

More drive-through service models are emerging: strip clubs, theaters, raves, supermarkets, etc.


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How to recover?

Unable to access your client? broken customer relationship

Drop in demand? short term vs long term

22

Understand the “job to be done” for your customer

“People go on an international holiday to …”

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To disconnect from work

To connect/bond with family/friends

To meet new people

To have a new experience

To brag on social media (status)

To learn something new

To be served/for convenience

To reduce stress

To belong to a certain group/fit in

To feel rewarded for hard work

“People go on an international holiday…”


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within travel/tourism outside of travel/tourism

To disconnect from work XTo connect/bond with family/friends

To meet new people

To have a new experience

To brag on social media (status)

To learn something new

To be served/for convenience XTo reduce stress XTo belong to a certain group/fit in

To feel rewarded for hard work

“People go on an international holiday…”

Can you offer a substitute?


25

To reduce stress To be served To disconnect from work


Keep your existing offering

Find new offering

Keep existing clients/market

Find new clients/market

e.g. improved logistic process

e.g.alternative branding

e.g. switch to a similar, but digital/remote service

e.g. create a new product, for another need of your existing client

e.g.switch from B2B to B2C

3 ways to approach your strategy challenge



Keep your existing offering

Find new offering

Keep existing clients/market

Find new clients/market

Innovate in the core of your organization

e.g. improved logistic process

e.g.alternative branding

e.g. switch to a similar, but digital/remote service

e.g. create a new product, for another need of your existing client

e.g.switch from B2B to B2C

Explore adjacent opportunity spaces

Jump to white-space opportunities in the Low Touch Economy

3 ways to approach your strategy challenge


Is it a 6 months or an 18 months problem? How will it impact my different businesses? What if Harvard’s scenarios pan out?

Strategy follows scenario:

Positive Revenue growth through

demand surge

e.g. E-commerce

Mildly negative Sustained revenue loss of

0-15% in Q2-4 2020

e.g. Consumer Goods

Severe Sustained revenue loss of

15-50% in Q2-4 2020

e.g. Oil and gas

Catastrophic Sustained revenue loss of

+50% in Q2-4 2020

e.g. Tourism

0.5 year impact V-curve rebound; Effective

pandemic control and economic stimulus

Ride the wave: boost supply to keep up

with demand surge

Push through and prepare for fast back-to-normal

upswing

Survive and prepare for relatively slow back-to-

normal recovery

Mothball large part of the business and prepare for

re-start

1.5 year impact U-curve recovery; Social distance measurements prolonged, economic

stimulus eases damage

Push for growth and market share

Defend, improve competitive position, and find new growth

Pivot through organic innovation and inorganic

growth, or divest


growth, or divest

3 year impact L-curve recovery; Failed pandemic control, and

wide-spread bankruptcies and credit defaults

Aggressive push for growth and market share


Prepare for aggressive new entrants. Reinvent and create totally new position, or abandon

Abandon market

IMPACT ON YOUR ORGANISATION Direct impact of Covid-19 / Indirect impact of economic recession / Ability to adapt fast

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yAdapt your strategic response

lowtoucheconomy.com


Most organisations will not be able to push through this crisis as they did in 2008.

Our expectation:


demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge


upswing


normal recovery


re-start






growth, or divest


growth, or divest






Last survivor strategy or abandon market


SEVE

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PACT

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fore

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lowtoucheconomy.com



demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge

Push through and prepare for fast back-to-

normal upswing


normal recovery


re-start






growth, or divest


growth, or divest








SEVE

RITY

AN

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TIO

N O

F EC

ON

OM

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PACT

G

DP

fore

cast

/ Pa

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/ Eco

nom

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lowtoucheconomy.com



demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge


upswing


normal recovery

Mothball large part of the business and

prepare for re-start






growth, or divest


growth, or divest








SEVE

RITY

AN

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TIO

N O

F EC

ON

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PACT

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fore

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/ Eco

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lowtoucheconomy.com



demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge


upswing


normal recovery


re-start






growth, or divest


growth, or divest






Abandon market


SEVE

RITY

AN

D D

URA

TIO

N O

F EC

ON

OM

IC IM

PACT

G

DP

fore

cast

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/ Eco

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lowtoucheconomy.com



demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge


upswing


normal recovery


re-start






growth, or divest


growth, or divest







Covid-19 Strategy Matrix boardofinnovation.com Note: strategic response also depends on financial strength, competitive position and industry attractivity.


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lowtoucheconomy.com

http://boardofinnovation.com



Build a winning strategy in 3 days

3x 0.5 day remote strategy workshops

‣ stakeholder intake ‣ industry research ‣ possible futures mapping

weekend

share out & alignment session

weekend

Discuss with an expert

Objective: Align your leadership team in 10 days – 100% remotely. Set priorities for your strategy in the Low Touch Economy. Discover potential growth paths and white spaces to venture in.

Outcome: A clear vision and guideline to navigate the difficult months ahead. Strategic initiatives to go on the offense with clear road maps for each concept (new offering/pivot/…), and top-level buy-in on all initiatives.

STRATEGY SPRINT: Low Touch Economy

3 days over a 10 day period


https://www.boardofinnovation.com/contact-us/low-touch-economy-strategy-sprint/
























demand surge

e.g. E-commerce


0-15% in Q2-4 2020

e.g. Consumer Goods


15-50% in Q2-4 2020

e.g. Oil and gas


+50% in Q2-4 2020

e.g. Tourism




with demand surge


upswing


normal recovery


re-start






growth, or divest


growth, or divest








SEVE

RITY

AN

D D

URA

TIO

N O

F EC

ON

OM

IC IM

PACT

G

DP

fore

cast

/ Pa

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volu

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/ Eco

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lowtoucheconomy.com


How others pivoted away from their core business


From (old business) Pivot to (new business) Channel Market Offering

Their snow canon business line was set to see a long drop in demand so EmiControls had to find new growth areas.

They were able to modify their current product to tap into a new demand: disinfection of large open spaces. SIMILAR NEW REDESIGN

Intelligence Industrielle normally offers industrial IoT sensors and dashboards to track machines at industrial sites.

Today they offer interactive signage and crowd control solutions for pharmacists and retailers. NEW NEW SIMILAR

A drop in tourism and fashion pushed swimwear brand Granadilla in a new direction.

Granadilla is now putting most of their marketing towards new business lines: selling healthy food boxes via e-commerce. SIMILAR SIMILAR NEW

There will be less demand for private phone booths for open offices as people continue to work from home.

room.co is exploring new markets with a full redesign of their product. Safe-testing booths for medical personal is one of their growth options. REDESIGN NEW NEW

Offline art workshops and team-building sessions will take a while to recover.

ArtNight went all in and switched to online art courses.

NEW REDESIGN SIMILAR


http://emicontrols.com

http://intelligenceindustrielle.com

http://granadillaswim.com

http://room.co

http://artnight.com


So in less than 30 days, they developed two new direct-to-consumer platforms: Pantryshop.com and Snacks.com.

‣ Setting up a webportal is easy ‣ The real challenges: Supply chains,

internal politics, leverage in the value chain,…

Case: PepsiCo Larger corporates rarely do a full pivot, but adapt.


http://www.

http://www.pantryshop.com

What other experiments or moves have you seen from large enterprises?

In the chat:


02 03 04




Q&A

01


6 different white-space triggers in the Low Touch Economy


Relevance in the Low Touch Economy:

1. Industry shifts Redesigned supply chains, new market entrants,…

High

2. New regulation Legal hurdles that are removed can open up new markets.

Medium

3. New consumer behavior When people act differently, they face new needs.

High

4. Societal changes Shift in demographics, new norms, and values.

High (But Delayed)

5. New tech When it becomes easier to solve specific problems.

Low

6. Access to new resources Network access, new assets, new partnerships…

Low

Expect a gold rush on new opportunities by:

- opportunistic companies with the right assets (they're in the pole position)

- companies hit by the crisis (they need to survive)

- new ventures created to jump on a new market


Industry shift

New regulation

New consumer behavior

Societal change

New resources/assets

New technology

6 triggers for white spaces

Expected impact on the Low Touch Economy

LOW

MED

IUM

HIG

H

Examples of white spaces & opportunities, triggered by different shifts

Dark stores

Nearshoring

Local automated warehouses

Local distributed businesses

Office redesigns

Digital venture partnerships

Virtual migration

Private remote diagnostic tools

B2B admin tools sensitive data

Risk profile calculators

New niche insurances

Remote court services

Authentication services

Health/wellness at home

Optimise ecommerce

Rental equipment at home

Informal video communication

B2B tools scaling services

Personal security services

Remote health tracking

Elderly IT support

Alternative family gatherings

Remote activity monitoringSupply chain

transparency

Available workforce

Mergers for new scale

Surveillance tools

New health tech

Local tourism partnerships

Data modeling



Industry shift

New regulation


Societal change


New technology

6 triggers for white spacesLO

WM

EDIU

MH

IGH


Dark stores

Nearshoring



Office redesigns


Virtual migration








Optimise ecommerce





Elderly IT support



transparency

Available workforce


Surveillance tools

New health tech


Data modeling





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Example: Second-order B2B support tools

Trigger consumer behavior + new regulations

New expectations: “Social distancing eating”

Restaurant owners will redesign their facilities.

e.g. IT tools to maximize use of commercial space

White-space opportunity: new problems to solve

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Example: PlanFinder.xyz

AI-service for space re-design

Use cases far beyond hospitality Many industries need to rethink how they use their available space.

http://PlanFinder.xyz

Industry shift

New regulation


Societal change


New technology

6 triggers for white spacesLO

WM

EDIU

MH

IGH


Dark stores

Nearshoring



Office redesigns


Virtual migration








Optimise ecommerce








transparency

Available workforce


Surveillance tools

New health tech


Data modeling


Elderly IT support



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Example: Low Touch Economy elderly support

Rise of “reversed parenting”, younger generations taking care

of vulnerable family members

- Remote IT support - Educate sharing of misinformation - How to behave & protect yourself

at family gatherings, in public,… - …

Trigger Societal shift

White-space opportunity: new problems to solve

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Example: candootech.com New family gatherings?

congrats @gtosports247

http://candootech.com

EXAMPLE SHIFTSMEDIA

NEUTRAL IMPACTREAL ESTATE

LIMITED IMPACTCONSTRUCTION LIMITED IMPACT

AUTOMOTIVE SEVERELY IMPACTED

HOSPITALITY SEVERELY IMPACTED

Customer segregation/Employee segregation: Vulnerable groups are separated from other groups.

Value-added crowd control: Make it more attractive for clients to participate in the economy in smaller groups.

Human-free service models: Employees who have close contacts with each other or clients are a liability and must be avoided

Hygiene theatre: Excessive cleaning processes, with a special focus on the communication/signaling effects.

Match shifts with industries to spot white spaces



EXAMPLE SHIFTSMEDIA

NEUTRAL IMPACTREAL ESTATE

LIMITED IMPACTCONSTRUCTION LIMITED IMPACT

AUTOMOTIVE SEVERELY IMPACTED

HOSPITALITY SEVERELY IMPACTED

Customer segregation/Employee segregation: Vulnerable groups are separated from other groups.

Video/digital support for vulnerable groups to participate in social activities via virtual

platforms.

The same clients always gets assigned to the same

agent to avoid mixing groups.

New incentives & regulation for migrant workers to allow

them to travel, but to remain isolated from other

people.

Restricted test drives, vehicles exclusive for

certain customers. (partial virtual simulation)

Hire older generations as staff to serve only older

customers.

Value-added crowd control: Make it more attractive for clients to participate in the economy in smaller groups.

3D scanning service for retail to scan their products

so a significant part of regular customer journey

can start remote..

Shared/ public buildings renovated to accommodate

waypoints or pathways to steer the flow of visitors in order to avoid each other.

Increase pay for generalist contractors, so the same group of people can do

different tasks.

Tracking services to create cool-down times between

the usage of shared vehicles.

Restaurants spread out to nearby unique buildings

(experience!) in the area so people can eat with enough

space between them.

Human-free service models: Employees who have close contacts with each other or clients are a liability and must be avoided

Increase of 1 man production crew, supported

remotely.

More on-site automated deliveries between

industrial/ office buildings. - new upgrades needed:

gates, lanes, charging spot

More prefab and simplified construction options to limit human

interaction on site.

Digital tools to support remote inspections to avoid

that clients need to visit garages & distribution

centers.

Robo-kitchens with self-service restaurant

experience

Hygiene theatre: Excessive cleaning processes, with a special focus on the communication/signaling effects.

Live video feeds of crowds broadcasted to alert people when physical distancing is

not respected.

Highly visible airco add-ons to disinfect air flows.

Rugged gowns, masks and gloves that are designed to

be used on construction sites.

Mobile disinfecting units on parkings to quickly clean

vehicles, ebikes,... after use

Bring your own plates/ utensils/ eatlery to

restaurants to avoid sharing

Match shifts with industries to spot white spaces



Which of the below best describes your organisation’s response to new market opportunities right now?

1. Strategic (we make strategic choices, and make bold investments)

2. Fast mover (we have launched new products/businesses already)

3. Experimental (we have some innovation experiments here and there)

4. Defensive (we mostly focus on protecting the current business)

Poll:

How to move forward?


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Moving ahead requires an iterative approach

MONITOR NEW NORMAL1

We suggest running 3 activities in parallel and iteratively, to act at speed in a fast-moving environment.

IDENTIFY OPPORTUNITIES

VALIDATE & LAUNCH

MAY JUNE JULY

2

3


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Key take-aways:

lowtoucheconomy.com

02 03


Learn from winners and early movers

There have never been more opportunities

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We monitor the new normal and map out your organization’s possible futures.

We spot +30 white space opportunities for you to act on in the Low Touch Economy.

We validate and launch new products and businesses at startup speed.

Ready to act on the new white space opportunities?

Discuss with an expert


https://www.boardofinnovation.com/contact-us/low-touch-economy-opportunities/
























Thank you and stay safe!

Philippe De Ridder CEO/co-founder [email protected] Connect on linkedin

Board of Innovation is a global strategy and business design firm with clients including Danone, Philips, ING, Roche, Toyota, and many more. notify me about new reports


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Low Touch Economy - Innovation Leader

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