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DIGITAL DISRUPTION AND CULTURE
Ajay	
  Bha(a	
  (@AjayAus)	
  
Chief	
  Product	
  and	
  Informa(on	
  Officer	
  
Carsales.com	
  (ASX:CAR)	
  
	
  
At	
  Kodak	
  many	
  years	
  ago:	
  
	
  
The	
  two	
  final	
  candidates	
  for	
  the	
  job	
  were	
  Phil	
  Samper,	
  who	
  had	
  a	
  sophis(cated	
  feel	
  for	
  
digital	
  technology,	
  and	
  Kay	
  R.	
  Whitmore,	
  who	
  represented	
  the	
  tradi(onal	
  film	
  business	
  
in	
  which	
  he	
  had	
  been	
  involved	
  for	
  three	
  decades.	
  It’s	
  hardly	
  a	
  surprise	
  all	
  these	
  years	
  
later	
  to	
  hear	
  that	
  the	
  board	
  chose	
  Whitmore.	
  
hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/	
  
Disruption and leadership
“Culture	
  is	
  the	
  single	
  most	
  influence	
  on	
  how	
  successful	
  a	
  country	
  or	
  a	
  company	
  will	
  
be	
  at	
  being	
  disrup8ve	
  or	
  at	
  the	
  other	
  end	
  at	
  comba:ng	
  disrup8on”.	
  
Who do you recognise from these pictures?
1	
   2	
   3	
   4	
  
5	
   6	
   7 8	
  
Who do you recognise from these pictures?
1	
   2	
   3	
   4	
  
5	
   6	
   7 8	
  
Mark	
  Zuckerberg	
  –	
  Facebook	
  
8/10	
  
Greg	
  Roebuck	
  –	
  Carsales	
  
1/10	
  
Shane	
  Warne	
  –	
  Cricket	
  
10/10	
  
Mike	
  Cannon	
  Brookes	
  –	
  Atlassian	
  
2/10	
  
Sally	
  Pearson	
  –	
  Athle(cs	
  
8/10	
  
Andrew	
  Bassat	
  –	
  Seek	
  
0/10	
  
Marisa	
  Mayer	
  –	
  Yahoo	
  
8/10	
  
Cathy	
  Freeman	
  -­‐	
  Athle(cs	
  
9/10	
  
Athle(cs	
  
These guys combined have created $10B + in market value
and employ 10K people globally
We	
  need	
  our	
  innovators	
  to	
  be	
  the	
  rock	
  stars	
  
and	
  role	
  models	
  that	
  the	
  next	
  genera8on	
  wants	
  
to	
  emulate.	
  
To under stand disruption we must first understand
innovation!  
Innovation defined
“NEW THINKING THAT CREATES VALUE”
Scaling innovation
WHAT NOT TO DO WITH INNOVATION
Types of innovation  

INCREMENTAL INNOVATION DISRUPTIVE INNOVATION
One	
  type	
  can	
  lead	
  to	
  the	
  other	
  
-­‐	
  Both	
  are	
  important	
  
hOp://bhc3.com/2009/12/01/the-­‐four-­‐quadrants-­‐of-­‐innova(on-­‐disrup(ve-­‐vs-­‐incremental/	
  
Innovation is all about people  

	
  
How	
  to	
  hire	
  top	
  talent	
  ar.cle:	
  hOp://carsal.es/ewAx1DsaFRR	
  
Agtude	
  (need	
  to	
  innovate)	
  and	
  
Ap(tude	
  (ability	
  to	
  innovate)	
  	
  
Your	
  people	
  stand	
  in	
  the	
  way	
  of	
  your	
  company	
  being	
  disrupted	
  or	
  your	
  company	
  disrup.ng	
  	
  
another	
  company.	
  In	
  the	
  new	
  world	
  talent	
  is	
  more	
  important	
  than	
  ever.	
  
Being tuned to your customers?
Innovating what they don’t ask for?
If	
  I	
  had	
  asked	
  people	
  what	
  they	
  wanted,	
  
they	
  would	
  have	
  said	
  faster	
  horses.	
  
-­‐	
  Henry	
  Ford	
  
Innovation and failure
Outsourcing, Innovation and Disruption?
INNOVATOR’S DILEMMA?
-­‐  Every	
  company	
  makes	
  
decisions	
  based	
  on	
  a	
  value	
  
system	
  (even	
  ones	
  who	
  don’t	
  
have	
  formal	
  values)	
  
	
  
-­‐  When	
  an	
  opportunity	
  falls	
  
outside	
  of	
  the	
  value	
  system	
  	
  
it	
  is	
  easily	
  discarded	
  
 
It	
  assumes	
  that	
  disrupters	
  start	
  with	
  a	
  lower-­‐priced,	
  inferior	
  alterna(ve	
  that	
  chips	
  
away	
  at	
  the	
  least	
  profitable	
  segments,	
  giving	
  an	
  incumbent	
  business	
  (me	
  to	
  start	
  a	
  
skunk	
  works	
  and	
  develop	
  its	
  own	
  next-­‐genera(on	
  products.	
  
The	
  blind	
  spot:	
  hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/	
  
The blind spot
See	
  it	
  coming:	
  Listen	
  to	
  Truth	
  Tellers	
  -­‐	
  If	
  finding	
  a	
  truth	
  teller	
  is	
  hard,	
  learning	
  when	
  to	
  
listen	
  is	
  even	
  harder.	
  Truth	
  tellers	
  are	
  oken	
  eccentric,	
  and	
  their	
  lucidity	
  can	
  easily	
  be	
  
mistaken	
  for	
  arrogance	
  and	
  stubbornness.	
  	
  
The Truth Tellers
hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/	
  
 
“Build	
  an	
  innova8on	
  plaAorm	
  composed	
  of	
  people,	
  culture	
  
and	
  tech	
  –	
  a	
  plaAorm	
  that	
  can	
  be	
  easily	
  changed	
  and	
  will	
  
scale	
  to	
  your	
  needs”.	
  
Picture	
  sourced	
  from:	
  hOp://www.computerworld.com/ar(cle/2912420/emerging-­‐technology/preparing-­‐for-­‐the-­‐digital-­‐disrup(on-­‐that-­‐s-­‐coming-­‐to-­‐your-­‐
industry.html	
  
Ajay Bhatia, Chief Information & Product Officer, Carsales.com

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Ajay Bhatia, Chief Information & Product Officer, Carsales.com

  • 1. DIGITAL DISRUPTION AND CULTURE Ajay  Bha(a  (@AjayAus)   Chief  Product  and  Informa(on  Officer   Carsales.com  (ASX:CAR)    
  • 2. At  Kodak  many  years  ago:     The  two  final  candidates  for  the  job  were  Phil  Samper,  who  had  a  sophis(cated  feel  for   digital  technology,  and  Kay  R.  Whitmore,  who  represented  the  tradi(onal  film  business   in  which  he  had  been  involved  for  three  decades.  It’s  hardly  a  surprise  all  these  years   later  to  hear  that  the  board  chose  Whitmore.   hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/   Disruption and leadership
  • 3. “Culture  is  the  single  most  influence  on  how  successful  a  country  or  a  company  will   be  at  being  disrup8ve  or  at  the  other  end  at  comba:ng  disrup8on”.  
  • 4. Who do you recognise from these pictures? 1   2   3   4   5   6   7 8  
  • 5. Who do you recognise from these pictures? 1   2   3   4   5   6   7 8   Mark  Zuckerberg  –  Facebook   8/10   Greg  Roebuck  –  Carsales   1/10   Shane  Warne  –  Cricket   10/10   Mike  Cannon  Brookes  –  Atlassian   2/10   Sally  Pearson  –  Athle(cs   8/10   Andrew  Bassat  –  Seek   0/10   Marisa  Mayer  –  Yahoo   8/10   Cathy  Freeman  -­‐  Athle(cs   9/10   Athle(cs  
  • 6. These guys combined have created $10B + in market value and employ 10K people globally We  need  our  innovators  to  be  the  rock  stars   and  role  models  that  the  next  genera8on  wants   to  emulate.  
  • 7. To under stand disruption we must first understand innovation!  
  • 8. Innovation defined “NEW THINKING THAT CREATES VALUE”
  • 10. WHAT NOT TO DO WITH INNOVATION
  • 11. Types of innovation   INCREMENTAL INNOVATION DISRUPTIVE INNOVATION One  type  can  lead  to  the  other   -­‐  Both  are  important   hOp://bhc3.com/2009/12/01/the-­‐four-­‐quadrants-­‐of-­‐innova(on-­‐disrup(ve-­‐vs-­‐incremental/  
  • 12. Innovation is all about people     How  to  hire  top  talent  ar.cle:  hOp://carsal.es/ewAx1DsaFRR   Agtude  (need  to  innovate)  and   Ap(tude  (ability  to  innovate)     Your  people  stand  in  the  way  of  your  company  being  disrupted  or  your  company  disrup.ng     another  company.  In  the  new  world  talent  is  more  important  than  ever.  
  • 13. Being tuned to your customers?
  • 14. Innovating what they don’t ask for? If  I  had  asked  people  what  they  wanted,   they  would  have  said  faster  horses.   -­‐  Henry  Ford  
  • 17. INNOVATOR’S DILEMMA? -­‐  Every  company  makes   decisions  based  on  a  value   system  (even  ones  who  don’t   have  formal  values)     -­‐  When  an  opportunity  falls   outside  of  the  value  system     it  is  easily  discarded  
  • 18.   It  assumes  that  disrupters  start  with  a  lower-­‐priced,  inferior  alterna(ve  that  chips   away  at  the  least  profitable  segments,  giving  an  incumbent  business  (me  to  start  a   skunk  works  and  develop  its  own  next-­‐genera(on  products.   The  blind  spot:  hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/   The blind spot
  • 19. See  it  coming:  Listen  to  Truth  Tellers  -­‐  If  finding  a  truth  teller  is  hard,  learning  when  to   listen  is  even  harder.  Truth  tellers  are  oken  eccentric,  and  their  lucidity  can  easily  be   mistaken  for  arrogance  and  stubbornness.     The Truth Tellers hOps://hbr.org/2013/03/big-­‐bang-­‐disrup(on/  
  • 20.   “Build  an  innova8on  plaAorm  composed  of  people,  culture   and  tech  –  a  plaAorm  that  can  be  easily  changed  and  will   scale  to  your  needs”.   Picture  sourced  from:  hOp://www.computerworld.com/ar(cle/2912420/emerging-­‐technology/preparing-­‐for-­‐the-­‐digital-­‐disrup(on-­‐that-­‐s-­‐coming-­‐to-­‐your-­‐ industry.html