Digital Disruption Its not about technology Rick Yvanovich Andrew - - PowerPoint PPT Presentation

Digital Disruption

It’s not about technology

Rick Yvanovich Founder & CEO TRG International Andrew Duck CEO & CTO Aversafe

How

• pen-minded

are you about Digital Disruption?

Discuss in groups how digital transformation and digital disruption is impacting you

Digital Transformation Myth or Reality

To lead your organisation’s technology transition Step #1 is grasping the realities of digital transformation and not get seduced by the hype

Ev Every co company should ld digitally lly transfo form

• Re

Real ality: Not every company, process, or business model requires digital transformation

• Can my company model its existing processes? If not how can you

transform them?

• And just because you can doesn’t mean you should
• Remember ROI

Myth or Reality #1

Myth or Reality #2

Di Digital trans nsformation n leverages emerging ng or disrupt ptive techno hnologies

• Re

Real ality: Most short-term transformational impact comes from “conventional”

• perational and strategic technology — not from emerging or so-called “disruptive”

technology

• Uber disrupted conventional Taxis by transforming both how to get a ride and who

provides the ride

• AirBnB disrupted conventional Hotels by transforming both how you book a room

and who provides the room

• Amazon disrupted conventional book buying by transforming how you purchase a

book and subsequently how you select a book

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Pr Profitab able e compan anies es ar are e the e most likel ely to laun aunch suc ucces essful ul digital al tr transformati tion p projects ts

• Re

Real ality: If things are going well — defined crassly as employee and shareholder wealth creation — then the chances of transforming anything meaningful are quite low

• Where employees are comfortable you’ll find greater resistance to Digital

change

• Failing companies more motived to transform else they’ll die anyway
• Least resistance where company is in death throes or a start-up burning

(someone else's) cash

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Myth or Reality #3

We We need to disru srupt our r in indust stry ry before re so someone else se does

• Re

Real ality: Disruptive transformation seldom begins with market leaders whose business models have defined their industry categories for years

• Historically, industry disruptors have often been startups making bold bets
• n old industries:
• Amazon
• AirBnB
• Uber / Lyft
• Netflix

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Myth or Reality #4

Be Better Tech chnolo logy Is a Ke Key Point of f Digital l Transfo formation

• Re

Real ality: Many people make a mistake of thinking that digital transformation means simply digitalization of the business

• Yes technology is important and so is:
• Organisational structure
• Organisational culture
• Need to change
• Change Management
• Mindset
• Leadership
• New Roles
• New Skills

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Myth or Reality #5

Established business models are under attack

Since 2000 52% of Fortune 500 companies bankrupt / acquired / ceased to exist due to Digital Disruption

• Bitcoin bypasses traditional

banks with blockchain

• Coursera and edX, threaten biz

schools with massive open

• nline courses (MOOCs)
• Uber sidesteps license system

that protects taxicabs How exactly do new entrants achieve their disruptive power? What enables them to skirt constraints and exploit unseen possibilities? If technology is NOT what’s disrupting most .. then what is ? Discuss

Co Consumers ar are chan angin ing be beha haviour ur Di Disruption is driven by Consumers

Di Disruption is driven by Consumers De Decoupling drives Consumer Disruption

Business models must change to survive and / or thrive

Disruptors break some links & steal stages Customers happily separate value-creating from non-value creating parts

Examples of decoupled activities & disruptors

3 types of decoupling

Decoupler takes for itself 1 activity that creates value for customers

What really drives decoupling?

Focusing on consumers helps us understand more deeply whether startups will succeed

• r fail at stealing

customers from incumbents in existing markets.

Incumbents integration forces vs Decouplers’ specialisation forces

5 step process for disrupting with decoupling

Customer considerations & potential for disruption

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