Disrupting Digital Business

Cloud In A Post-Sale, On-Demand, Attention Economy

1 9 O C TO B E R 2 0 1 6
R R AY WA N G ( @ R WA N G 0 )
P R I N C I PA L A N A LY S T & C H A I R M A N

2010-2016 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital 1

52% of the Fortune 500
firms since 2000 are gone

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55% of the Fortune 500
lost money in 2015

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Digital ecosystem management creates winner
takes all markets
Overall
69.8% 30.2%
Market Share

Digital Everyone
Leaders Else

Percentage of
Profits 77.1% 22.9%

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 (2014)

Welcome to the post-sale, on-

demand, attention economy!

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Disrupt Or Be Disrupted

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Incremental innovation is table stakes and expected

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Transformational innovation disrupts markets

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Pace of change is fierce as business models
converge, competitors pop up from nowhere

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Micromax is after Samsung

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The middle is a bad place to be in digital

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10 Lessons Learned From Disrupting Digital

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 1

Digital disruption is more than just a

technology shift. Its about
transforming business models and how
we engage.

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Tech convergence powers digital disruption

Mobile Social Cloud Big Data IOT 3D Printing

Design Thinking Inspired User Experience

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Social creates new verbs and experiences that
bring people and networks together
Twitter I need to pee Path Watch me pee privately
Facebook I peed You Tube Watch me pee
Google+ - More pee in circles Vine Watch my pee loop
FourSquare Im peeing here SnapChat I have no proof I peed
Pinterest My pee scrapbook Jelly Does this look like pee?
Instagram My pee in sepia Whats app I told you I peed
LinkedIn Hire me to pee Periscope Watch me pee live
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Tech convergence powers digital disruption

Mobile Social Cloud Big Data IOT 3D Printing

Design Thinking Inspired User Experience

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Uber incorporates five key pillars

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 2

We move from selling products and

services to keeping brand promises in
an attention economy.

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We battle for experiences and outcomes

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Digital accelerates business model transformation

Product companies give away product for service

revenues.
Service based businesses sell experiences at varying
price points and service levels.
Experience based businesses selling business
models
Business model companies sell peace of mind.

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Disney doesnt just sell theme park tickets

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Disney fully applies mobile and data as the
gateway to new customer experiences

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 (2010)

You're not competing with

another company, you're really
competing for time and attention

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 3

New unit cost pricing models enable

disruptive business models to thrive.

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Dollar shave club shows what happens when you
change how people buy

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From all you can drink. to by the sip

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 4

Data is the foundation of digital

business. Every touch point, every click,
every digital exhaust is relevant insight.

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Data and content explosion goes exponential

90% of data 100M viral

created in last
connections
2 years 2014,
1 year 2015,
per minute by
2020
1 sec 2020
60% of
80 Billion mission critical
sensors in data will reside
devices by outside four walls
2020 by 2020

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 Use big data context to improve analytical insight
to make better decisions
Next best action
Decisions & Prevention
Suggestion
Business Driven

Actions No action

Performance
Deduction
Line of

Insight Inference
Prediction

Technology
Driven
Physical
Information & Virtual
Machine
Orchestration Contextual

Structured
Data Sources

Semi-structured
Unstructured

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 5

If 20 % of your revenue is not an insight

stream by 2020, you wont have a
digital biz model

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The future is big data business models built on
insight
Insight based Insight based
Insight brokering
differentiation business platforms
Drive demand Raw information Marketplaces
Create new service
offerings
Analysis and insights Deal making
Improve c-sat

Drive lower cost Benchmarking Advertising

models

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What could you plan for next with context?

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 6

Winners vertically integrate all content,

network, and technology into
platforms that empower digital
ecosystem management

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 Videos
VS.
Commerce VS. VS. Shipping

VS. VS. Cloud

Devices VS. Computing
Media

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 7

Digital artisans emerge to humanize

digital across the organization

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GE knows when a transmission line will go down 8
to 10 days before it happens

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We must invest in digital artisans in order to
humanize digital

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Design thinking is a methodology to
unlock solutions to questions you
never would have asked (@rwang0)

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 8

People to people (P2P) is about direct

connections and digital scale

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Tesla changed the rules of low volume production,
eco luxury & direct to consumer

VS.

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Etsy democratizes distribution for creatives

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Customers want banking but not necessarily banks

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TaskRabbit creates on-demand, trusted access to
services in a P2P model

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 9

Design for people segments of one

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Can you support a human segment of one and
deliver on mass personalization at scale?

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Context provides relevancy from real time to right
time
Know-
ledge
Location Weather

Business
Time
process

Relation-
Sentiment
ships

Roles Context Intent

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Choose your own adventure journeys

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Intention driven design skate where the puck will
be or anticipatory analytics

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Deliver brand promises via orchestration across
personas, processes, and the graph
Atomic Level Customer Journeys, IOT Smart Services, Work Streams, & Block Chains

7 Machine
6 Cadence 5
Learning

Digital Footprint Orchestration of Trust

& Exhaust Immersive Personalization at Value
Experiences Scale Exchange
1
Context Anticipatory
Monetary
AI/ Cognitive

Analytics
Reckoning

Content
2 3 Catalysts 4 Non Monetary
Collaboration
Consensus
Channels Choices
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 The seven outcomes of AI
Whats What do I What do What should What can I What What do I
happening need to you I always expect to can I need to do
now? know? recommend? do? happen? avoid ? right now?

6 7
5 Prevention Situational
4 Prediction Awareness
3 Automation
2 Suggestion
1 Notification
Perception

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 10

Five generations of people by digital

proficiency, not age

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5 generations of digital people not by age but by
digital proficiency
1. Digital comfortable in engaging
5. Digitally Natives
all digital channels 2. Digital
Disengaged Immigrants
Understand digital
but avoiding
Digital crossed the chasm
into the digital world,
engagement on
purpose, often for
Proficiency forced into
engagement with
privacy reasons digital channels

4. Digital Resisting the shift to digital, 3. Digital Recognize the shift to digital
ignoring the impact but not ready to be active yet
Holdouts Voyeurs themselves
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Why Cloud Is The Starting Point

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Cloud is the foundation of your innovation and
digital transformation journey

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Rich user experience is just the beginning

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Rapid implementation and unlimited performance

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Always on compute power

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Security across the stack

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Disrupting Digital Business

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 (2010)

Digital Darwinism is unkind to

those who wait

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Dont be caught in the disruption!
Average company lifespan on S&P 500 Index (in years)

2010-2016 Constellation Research, Inc. All rights reserved.

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In the new world IT business collaboration is key
to digital success
Geos

IT Requirements
Business Needs

Simple Business
Safe
Models
Org Structures
Scalable Secure
Value
Networks
Sexy Disruptive Sustainable
Technology
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Business runs hard as IT scales in step function
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
Rate of Innovation

IT scaling
Time
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 Five steps to get started

Co-create and
co-innovate
Move from gut with new
to data driven partners
Apply new decisions
business models
Develop a and technologies
culture of to existing
Design new digital DNA infrastructure
experiences
and outcomes

2010-2016 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital 67

Thank you.
Any questions?

R Ray Wang
+1.650.918.6619
R@ConstellationR.com
@rwang0
www.raywang.org
www.ConstellationR.com

2010-2016 Constellation Research, Inc. All rights reserved.

 www.constellationR.com

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Join me and other innovators at

Join me and other innovators at

Constellations
Connected Enterprise
The Ritz Carlton, Half Moon Bay, CA | October 26-28, 2016 | www.constellationevents.com

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The reality of how we allocate is set up for margin

Brand
Strategic
differentiation
Revenue growth

Operational efficiency

Regulatory compliance

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Growth requires the flip in the pyramid with
automation and software providing scale

Brand

Strategic differentiation

Revenue growth
Operational
efficiency
Regulatory
compliance
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Flip the pyramid to jump start growth

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