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Disruption presentationv2.35
- 2. The 5 Hypothesis
Strategic Focus
The Digital Era
Your Culture
Our Approach
Q&A
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“Understanding
The Journey”
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- 3. Hypothesis #1
I am the customer, I am in control, I
make choices, and I manage my
journey as your customer.
[availability, pricing, characteristics, delivery, service]
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- 4. Digital business transformation is
driven by four critical factors;
Social Media
Everything Real-time
Growth of Mobile Technology
Highly Informed Customers
Hypothesis #2
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- 5. Defining a Digital strategy is not an
end-goal - it’s a continuous journey.
It’s the result of learning more about
the relationship between customer
behavior and technology and to
deliver disruptive value.
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Hypothesis #3
- 6. Best-in-class companies leverage
customer behavior to continuously
mold their value proposition while
creating new ways to connect with
customers across channels.
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Hypothesis #4
- 7. Defining a Digital strategy has a little
to do with technology but a lot
more with understanding real time
customer needs and delivering new
value in a B2C, or B2B model.
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Hypothesis #5
- 8. Where is the focus? What are your
priorities? What’s the end-game?
Revisiting the
Value-creation Levers
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GROWTH
RETURN
ON
CAPITAL
RISK
MANAGEMENT
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GROWTH?
RETURN
ON
CAPITAL?
MANAGING
RISK?
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InnovaIon
&
New
Products
ReputaIon
Management
Digital
Sales
&
MarkeIng
What is your focus?
- 10. Understand the nature of your
competitive culture, then
evaluate the changes.
What’s your
competitive culture
Emulate
market
leader’s
Strategy
&
TacIcs
Re-‐segment
the
market
to
create
a
niche
Create
and
pursue
a
unique
advantage
Tradi&onal
game
rules
New
game
rules
En&re
Market
Niche
Where
to
compete
How
to
compete
Disrupt
industry
rules
to
exploit
a
unique
advantage
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- 11. Accumulated
Total
Returns
Expected
Window
of
Returns
How quickly can changes be
adopted – what are the areas that
will impede rapid change.
Appetite for Speed
High
Growth
12-‐24
months
Quick
Hits
0-‐12
months
Exponen&al
Growth
24-‐36
months
Current
Business
Generate
today’s
cash
flow
Today’s
revenue
growth
+
tomorrow’s
cash
flow
New
value
creaIon
+
new
product/
service
dimensions
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- 12. 1. Doing something dramatically different and
significantly better.
2. Define who will benefit from the massive disruption.
3. Provide TOTAL customer control.
4. Identify measureable success.
5. Identify small innovation teams.
6. Exploit the 4 fundamental human needs: comfort,
variety, connection, uniqueness.
7. Build a digital bridge into your product.
8. Not just better, faster, cheaper but dramatically
different.
9. Think like an outsider.
10. Listen to customers on what problems to solve.
Critical CONSIDERATIONS
in creating disruption
Creating Disruption
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COMFORT
VARIETY
CONNECTION
UNIQUENESS
- 13. Customer experience,
product/service innovation,
fulfillment, corporate identity.
How the Digital era is
disrupting industries
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Customer
Experience
Products
&
Services
Marke&ng
&
sales
Distribu&on
&
Fulfillment
Risk
Op&miza&on
Enhanced
Control
• Seamless
Omni-‐channel
experience
• ConInuously
evolving
service
proposiIons
New
digital
products
&
services
Omni-‐channel
markeIng
&
sales
• Full
STP
processing
• Automated
servicing
• Improved
customer
targeIng
• Improved
risk
profiling
• Real-‐Ime
Big-‐
Data
analyIcs
• Beaer
decision-‐
making
- 14. Creates the opportunity to augment
existing product/services base with
new capabilities.
“IoT”
Enabling Disruption
New
Business
models
Real-‐Ime
InformaIon
on
mission-‐criIcal
systems
Efficient,
Intelligent
operaIons
Global
Visibility
DiversificaIon
of
revenue
streams
• New
Value
streams
• Speed
Ime
to
market
• Respond
rapidly
to
customer
needs
• Access
informaIon
from
autonomous
endpoints
• Smart
decision-‐making
(i.e.
pricing,
logisIcs,
sales,
support
Improved
service
Beaer
quality
MoneIze
new
services
on
top
of
tradiIonal
ones
More
efficient
supply-‐chain
management
Connec&vity
w/
Customers
Innova&on
of
products,
&
business
models
Automa&on
of
manual
acIvity
Improved
Decisions,
relying
on
Big-‐
Data
analyIcs
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- 15. How does a customer engage and
how you are perceived?
Understanding the
customer Journey
1
2
3
4
5
awareness'
considera,on'
purchase'
reten,on'
advocacy'
Blog'6'Social'Media'6'Newsle:ers'
'
FAQs,'Knowledge'base,'Content'
repositories'
Website,'store,'eCommerce,'consider'
peers,'set'criteria'
Store,'website,'word'of'mouth'
Online'ads'–'email,'Social'Ads,'Reviews,'
Blog,'Media'
Community'Forum,'short6list'vendors'
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- 16. What are the underlying technology
architecture requirements.
What Technology
must deliver
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Content/Unstructured Data
Operational Data-Stores
Data-Marts & Analytics
Application/business logic, transformation, routing, connectivity and distribution services
Asynchronous Secure Messaging
JAVA Messaging Services (JVS)
ENTERPRISE SERVICES BUS (MIDDLEWARE LAYER)
Transformation
(XSLT)
SOAP/HTTP
Connector (Web Serv.)
SOAP/HTTP
Connector (.NET)
JMS
J2ee
Legacy
Applications
Connectors (part of ESB)
SAP
Connector
Real Time BI
& Text Analysis
Business
Rules
Event
Processing
BPM &
Workflow
BI-Spoke
Development
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- 17. CONFIRMING
VEHICLES
EXEXUTION
APPROACH
END-‐STATE
THINKING
BUILDING
FOUNDATION
DEFINING
VISION
&
LEADERSHIP
MAPPING
CUSTOMER
JOURNEY
SETTING
VALUE
GOALS
SETTING
FINANCIAL
GOALS
BUSINESS
TECHNOLOGY
GOVERNANCE
TECH
ARCHITECTURE
CORPORATE
STRUCTURE
VALIDATING
SERVICES
&
DRIVERS
BRAND
UPDATE
KEY
INITIATIVES
TIMING
&
COST
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Approach
- 18. KEY
STEPS:
1. Defining
Vision
&
Transforma&on
Leadership
a) Who
will
lead
the
transformaIon
b) Who
will
be
part
of
the
team
2. Understand
the
Customer
Journey
3. Valida&ng
the
Service
Drivers
a. Underlying
service
requirements
B2C
&
B2B
b. CharacterisIcs
c. DifferenIators
d. What
are
the
disruptors
4. SeZng
the
Value
levers:
a. Growth
b. Return
on
capital
c. Managing
risk
5. SeZng
Financial
goals
–
how
will
returns
be
obtained
a. Low
cost/scale
b. Premium
pricing/brand
c. Premium
pricing/IP
6. ValidaIng
the
market
arena
ENDSTATETHINKING
CARTENIA GROUP
Awareness
Considera&on
Purchase
Reten&on
Advocacy
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“Establish
a
Vision
of
where
we
want
to
be
based
on
the
understanding
of
key
customer
drivers”
- 19. KEY
STEPS:
1. How
will
we
get
there
from
a
Business
perspec&ves
a) Partnerships
b) Joint-‐ventures
c) M&A
d) Alliances
2. How
will
we
get
there
from
a
Technology
perspec&ve
a) Internal
development
b) Outsourcing/Co-‐Sourcing
c) M&A
d) Join-‐ventures
e) Alliances
CONFIRMINGVEHICLES
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“How
do
we
get
to
the
end-‐state
–
do
we
build
it
ourselves
or
do
we
leverage
third
par?es”
- 20. BUILDINGFOUNDATION
CARTENIA GROUP
KEY
STEPS:
1. Corporate
&
Legal
structure
a) DomesIc
b) InternaIonal
2. Governance
structure
a) Centralized
b) Distributed
c) Roles
&
ResponsibiliIes
d) DefiniIon
&
measurement
of
KPIs
3. Technology
architecture
a) ApplicaIon
b) Services
c) Data
d) IdenIty
management
e) Plamorm
f) Networking
g) Overall
standards
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“What
is
the
underlying
business
and
technical
founda?on
that
must
be
in
place
to
achieve
the
end-‐state?”
- 21. EXECUTIONSEQUENCE
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KEY
STEPS:
1. BRAND
UPDATE
a. Tone
b. Message
c. Content
d. Channel
approach
2. Key
Transforma&on
Ini&a&ves
a. Projects
in
three
stages:
“Quick-‐Hit”,
“High-‐Growth”,
“ExponenIal
Growth”
b. Resourcing
model;
internal,
contract
labor,
outsourced
3. Timing
&
cost
a) Final
sequencing
b) Delivery
Iming
and
speed
c) Delivery
approach
d) Line
item
cosIng
&
financial
return
“What
is
the
right
sequence
to
execute
transforma?on
based
on
the
company’s
opera?onal,
financial
and
organiza?onal
constraints
to
adopt
proposed
changes?”
- 22. Business
Process
Tuning
Client
Value
New
Service
Scope
Business
Process
Tuning
Business
Process
Advisory
Services
Enabling
Products
(Tech
enabled)
World-‐class
Delivery
OrganizaIon
Enabling
Products
(Tech
enabled)
Joint-‐
Opera?onal
Process
Improvement
New
Service
‘SOLUTION’
Process,
Products
&
People
What are the B2B scenarios?
B2B Opportunities to
consider
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- 23. Heat-Maps provide
visibility on the Services
& Technology enablers
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Service
HEAT-‐MAP
Technology
HEAT-‐MAP
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