What next in the digital economy

Deloitte Digital Copyright © 2016

WHAT’S NEXT IN DIGITAL?Steve Hallam

November 2015


DIGITAL IS AN ERA

Digital business is the application of modern technology to enable innovative and efficient sales, service, marketing, products, processes & collaboration.

1970TECHNOLOGYCORE

1980TECHNOLOGYENABLEMENT

1990TECHNOLOGYCOLLABORATION

2000TECHNOLOGYENGAGEMENT

2010DIGITAL

2020EXPONENTIAL

TECHNOLOGY CYCLESTechnology eras are characterized by exponential growth and connectivity.

MAINFRAMESDISTRIBUTED TERMINALSCORE COMPUTING

OFFICE COMPUTINGMINI-COMPUTERSWORD PROCESSINGSPREADSHEETSHOME COMPUTING

PC REVOLUTIONNETWORK COMPUTINGEMAILRELATIONAL DATABASESCLIENT-SERVER APPLICATIONS

INTERNET REVOLUTIONBROWSER WARSCUSTOMER ENGAGEMENTINTRANET APPLICATIONSBROADBAND

MOBILECLOUD COMPUTINGBIG DATA – ANALYTICSSOCIAL MEDIAWEARABLES

ARTIFICIAL INTELLIGENCESENSINGHOME AUTOMATIONDIGITAL CARSDIGITAL MONEYQUANTUM COMPUTING3D PRINTING / MANUFACTURING

SOCIAL ANALYTICS MOBILE CLOUD CYBER

CONTROLLED COLLISIONSEnabling the Digital Era

CONNECTED COMPUTING DEVICESEvery ten year cycle brings 10 times the connected devices.

19701 MILLION

198010 MILLION

1990100 MILLION

2000500 MILLION

201010 BILLION

202070 BILLION

20301 TRILLION

SOFTWARE IS EATING THE WORLD #MARC ANDREESSEN

“


EXPONENTIALS

Artificial Intelligence Genomics

Connected Home Sensors – Internet of Things

Crypto-Currencies

Robotics3D Printing

Drones

Mobile Payments

Oculus RiftWearables

Electric and Connected Cars

WHAT’S NEXT? EXPONENTIAL TECHNOLOGIES

LINEAR TO EXPONENTIAL THINKINGWe are wired to think linearly, but our technology is exponential

INTRODUCTION TO EXPONENTIALS

PETER DIAMANDIS

IN THE LAST TWO YEARS WE’VE SEENNINE TIMES MORE DATA CREATED

THAN IN THE ENTIRE HISTORY OF HUMANITY #EXPONENTIAL ORGANIZATIONS

EXPONENTIAL COMPUTING POWER

#Kurzweil

Examples• Integrated circuits• Sensors• Robotics• 3D Printing• Synthetic biology• Nanomaterials• AI

20 YEARS LATER, ALL OF THESE FIT IN YOUR POCKET

THE SMARTPHONE IS THE NEW CAR SERVICE

WatchWalletRolodexPhoto albumDaily plannerTravel Agent WalkmanNewspaperMagazineBook storeCalculatorWeathermanYellow PagesReal estate agent

Bank tellerRadioDictionaryTVDVD playerScoreboardCouponsRestaurant conciergeMovie ticketsGaming consoles Note passingGolf caddyThermostatCash registerCustomer service agentPilot cockpit guides

___________

1 BILLION DIGITAL NATIVES WILL JOIN THEWORKFORCE IN THE NEXT SEVEN YEARS

#PETER DIAMANDIS

“

BILLIONS OF CONNECTED SENSORSARE BEING DEPLOYED EVERY YEAR

GPS NFC Accelerometers Magnetometers Gyroscopes

Actuators Beacons Flow Temparature Lidar

Location Voice

Arduino Homes Cars Utilities Health

Wearables Health Security Bio Threat Phones

3D PRINTINGComplexity is now free

BLOCKCHAINThe Internet of Trust

≠

ARTIFICIAL INTELLIGENCE

IBM

$13,000,000,000 WEARABLES MARKET IN 2017

MIND CLONES

HYBRID THINKING

TED

ROBOTICS

EXTREME BIONICS


THE DIGITAL IMPERATIVE

IN THE NEXT 10 YEARS,40% OF THE FORTUNE 500COMPANIES WILL BE GONE

BABSON OLIN SCHOOL OF BUSINESS

DIGITAL DARWINISM

EXPONENTIAL ORGANIZATIONSI have a billion dollar idea!

• Excess capacity capture - “sharing economy”• Little incremental costs to scale• Bi-direction location-based awareness• Driver/passenger review “reputation”• Frictionless payment• Delightful

UBER

• AirBnB – Rooms and couches• Share Desk - Office Space• Lyft – Ride sharing• BlackJet – Private jet • Swifto – Dog walking• Wingz – Airport rides• Hitch – Taxi dispatch• GigWalk -

JUST THE BEGINNING…

SHARED ECONOMY

IS YOUR COMPANY ABOUT TO BE UBER-ED?

1. Venture capitalists are circling

2. You’re using technology to cut costs rather than create value

3. Your customers are getting older

4. Your service is very high-touch

5. Your customer satisfaction is low


PUTTING DIGITAL TO WORK

SUCCESSFUL DIGITAL BUSINESSES PRIORITISE NEW CAPABILITIES OVER OLD BUSINESS MODELS

ACT2 OF DIGITAL

“

2. CREATE AGILE EXECUTION

Learn to develop and try ideas in short iterative sprints with empowered teams. Treat digital initiatives like R&D.

1. THINK EXPONENTIAL

Set bold goals to achieve factors of 10X impact. Defeat incrementalism within your organization. Allow failure.

3. ACQUIRE CAPABILITIES TO CATALYST THE CULTURE

Acquire and hire edge teams to bring design thinking, mobile, digital, creative, and disruptive ideas.

4. PROTECT THE PEOPLE

Ring fence digital teams from layers of bureaucracy, policies or other compromises not found in a start-up culture.

6. NEW IDEAS TO SOLVE OLD INDUSTRY ISSUES

Look for new ideas to solve old industry issues and customer problems. Don’t be blinded by the status quo.

5. CUSTOMER FIRST

Don’t compromise on the customer experience. Make customer value and delighting the customer the #1 priority.

7. DESIGN THINKING

Design is the new differentiator in digital. Diverse teams led by design thinking will create an amazing impact.

8. FOCUS ON VALUE

Don’t get distracted by all the digital shiny objects. Focus on revenue, key metrics and follow the money.

THE 8 GREAT TRAITS OF A DIGITAL BUSINESS

A DIGITAL PORTFOLIO APPROACHBusiness case approach

1. MOMENTUM BETS

2. DIGITAL OUTCOMES

3. DIGITAL ENABLERS

• Low capital outlay• Demonstrate digital progress• Don’t require significant Enablers• Limited benefits beyond demonstrating momentum

• Primary driver of benefits• Usually transaction based• Low risk, high certainty• Need relentless tracking and focus to drive benefits & adoption• Example: Digital sales, channel migration, service delivery, automation

• Capabilities, processes and technology enablers• No direct benefits• Critical for capability build and future digital capabilities• Examples: Identity, eCommerce, Product Catalogue, APIs


ECOSYSTEMS

Lego Mindshare

EVERYTHING ISON ‘DEMAND’

Amazon Prime

UNBUNDLING OF CONTENT

TRUST ECONOMY

SCALABLE LEARNING

FEEDBACK LOOPS

CREATING DIGITAL CHANGE


QUESTIONS?

THANKSSteve Hallam

[email protected]

@sahallam

What next in the digital economy

Technology

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