The Business of Digital Business: How ... - CFA...
Transcript of The Business of Digital Business: How ... - CFA...
CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Hung LeHong
The Business of Digital
Business: How Competitive and
Economic Advantage Will Be
Transformed
1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.1 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Business is changing the way we compete.
Some enterprises are positioning themselves for new sources of
competitive advantage right now
… while others aren’t even aware.
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http://www.wsj.com/articles/goldman-sachs-to-give-out-secret-sauce-on-trading-1439371800
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Are you aware that the battle for the connected home matters?
3
Vs.
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New Sources of Competitive Advantage
Ecosystem Aggregator
Economic Architecture
Workforce Trusted Brand
Data
•Gain customer relationship
•Higher margins
•Rule supply/ demand
•Higher revenue per employee
•More availability & flexibility
•Better output
•Better products
•Better insight
•Better customer knowledge
•Security & ethics as a differentiator
•Margin-enhancing brand
•New economic architecture
•Less capital assets
•Less headcount
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How Does All This Change the World of CFAs
and how you certify CFAs?
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1. Ecosystem Aggregator Advantage
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Network Aggregators of Things Will Have a Competitive Advantage …
7
+ + +
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… And Many Parts of the Enterprise Will Be Subject to the Network Aggregator Model
Units of physical work
Units of knowledge work
Units of physical product
Units of lending
Units of service
Units of value
Units of funding
Physic
al
Inta
ngib
le
Hum
an
Digital
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“The Walled Garden of Existing Ecosystems Is
Unsustainable”
Facebook, Messenger Payments
Alipay, Alipay Wallet, Yu’ebao, MyBank.
Amazon Payments, Amazon Wallet, Amazon Coins, Amazon Local Register
Tenpay, QQ Wallet, WeChat Payment, WeBank
Venmo, Paydiant, Braintree, PayPal
Source: Deutsche Bank, June 2015
Google Wallet, Android Pay, Pony Express, Google Payment Corporation
ApplePay, Apple ID
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Will you lend someone money at 22%?
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Could Banks Enable the Lending or Transfer of Forms of Value by Leveraging Technology?
Person A
Person B
Sends
Value
Person C
Person D
Lends
valueMajor Bank
P2P
Blockchain
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How to Pursue Ecosystem Aggregator Advantage
1. Look for fungible goods, services or value that can be aggregated.
2. Enforce standards or be ready to handle multiple standards in the ecosystem.
3. Create a simple and consistent experience for customers.
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2. Workforce Advantage
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Virtual Customer Assistants
Source: IBM Watson Engagement Advisor
Source: Xiaoi Service Robot
How much should I pay off this month?
Hi, my name is Xiaozhao, I can help to check your
account balance, statements etc.
I was created by China Merchants Bank Credit Card Center and Xiaoi
Robot
"Approx. 0.6 million interactions everyday with 95% of all interactions
being handled by robot"
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+
Source: https://www.usaa.com/inet/wc/advice_leaving_the_military_menu?wa_ref=pub_global_lifeevents_leave_military
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Automated Hotel - Henn na Hotel
https://au.totaltravel.yahoo.com/news/a/28862838/robots-in-charge-at-japanese-hotel/
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Source: Narrative Science, Quill
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What If Your Workforce Was Everyone?
https://www.tradingfloor.com/professional-contributors
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What combination?
Human Advisor
Smart Machine
Advisor
Customers,
Friends, Family
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How to Pursue Workforce Advantage
1. Seek repetitive, but non-routine, tasks to automate.
2. Seek benefits that include availability, safety, and higher quality output in addition to cost reduction.
3. Determine the optimal mix of man and machine workforce.
4. Master the handoff from machine to man.
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3. Data Advantage
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“Mr. Ma (Alibaba), … has a trove of data revealing whether small firms pay their bills on time. He can also bundle together firms that know each other, so that a seller can help guarantee a bank loan to a regular customer. According to Alibaba the proportion of Ali-loan's lending that goes bad is a trifling 0.35%” Source: Economist
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http://www.lenddo.com/
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Source: www.lendup.com
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How to Pursue Data Advantage
1. Seek new, untapped, sources of data.
2. Seek to have a 360 view in digital and physical world.
3. Make transparency and opt in/out simple and easy to change.
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4. Economic Architecture Advantage
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Who owns the largest commercial aircraft fleet?
27
GE Capital
AerCap
1570+“owned & serviced”
American Airlines Group
1563(operated)
1300+“owned & managed”
http://www.economist.com/node/21543195
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AirBnB has no real estate
Uber has no taxis
Facebook creates no content
Alibaba has no inventory
These Leaders Have a Different Economic Architecture
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Digitalization and Smart Machines Provide Several Ways to Architect the Economics of an Enterprise
1Own less physical assets, pay as you go
Require less capital & headcount
Fewer employees per equivalent revenue, on demand
Everything as a Service
Internet of Things
Smart machines
Very little finished goods inventory, just in time
3D printing
4
2
3
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How to Pursue Economic Architecture Advantage
1. Identify what areas of the P&L and balance sheet have the opportunity to be economically re-architected.
2. Don’t just think of your own enterprise, think about competitors, new entrants, and industry dynamics.
3. Large public companies take a long time to re-architect economically. Launch a separate company if seeking immediate economic architecture advantage.
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5. Trust & Ethics Advantage
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How Hackable Is Your Car? Which Car Would You Buy?
http://www.wired.com/2015/07/hackers-remotely-kill-jeep-highway/
http://www.wired.com/2014/08/car-hacking-chart/
“Hackers Remotely Kill a Jeep on the Highway—With Me in It” – Wired 7/21/15
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http://www.reuters.com/article/2015/06/24/nasdaq-blockchain-idUSL1N0Z92I720150624#bmCmziFE63tyFo5r.97
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Security, Ethics & Trust Will Become New Brand Differentiators
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Ethical Responsibility
Security Privacy
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How to Pursue Trusted Brand Advantage
1. Leverage the work you’ve already done in ethics and raise it to brand differentiator level.
2. Keep the pulse on customer to know when security/privacy/ethics will become a key purchase criterion in your industry.