digital disruption management marketing business models e-commerce howest

1. DIGITAL DISRUPTION
ACADEMIC YEAR 2019 2020
MANAGEMENT & BUSINESS MODELS

2. digital transformation
• Digital transformation or disruption
→ trends
→ drivers
• Modeling
• How should organizations deal with digital
transformation?
CONTENT

3. A WAKE UP CALL
TRENDS
trends
drivers
models
response

4. trends
DO YOU REMEMBER WHAT HAPPENED WITH THESE COMPANIES?
can you give some
examples of industries
that are
• out of business
• or are threatened
by
• disruption
• digital transformation
The Great Wave off Kanagawa, Katsushika Hokusai

5. trends
PHOTOGRAPHY

6. trends
MUSIC

7. trends
FILM

8. trends
NEWSPAPERS

9. trends
BOOKS & BOOSHOPS

11. • online a credit

12. trends
PAYING CASH
https://www.youtube.com/watch?v=qU8Tn1xvyog

13. trends
SHOPPING

14. trends
GROCERY

16. trends
• generation Z
NEW CUSTOMER

17. trends
TRAVEL

18. trends
CAR

19. trends
TAXI

20. trends
ALIBABA SINGLES’ DAY

22. https://photos.google.com/a
lbum/AF1QipOrLh5rSKWRol1
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q_Sn_HLs

23. trends
• 95 years
• 685,000 rooms
• 92 countries
• $ 24 billion
• 6 years
• 1 000 000 accomodations
• 190 countries
• $ 13 billion
HILTON GROUP AIRBNB

24. trends
ENERGY

25. https://maas.global/
MOBILITY AS A SERVICE (FINLAND)
• https://maas.global/
• case: Finland, Antwerp

26. trends
• Do you recognize this building?
• Chrysler Building, Manhattan, NY
• represents power
→ car companies
→ oil industry
ARCHETYPE ‘OLD’ BUSINESS

27. trends
• and this building?
• headquarters Apple, Cupertino
ARCHETYPE ‘NEW’ BUSINESS

28. HOW IT REALLY LOOKS LIKE

30. trends
• and this one?
• new headquarters Amazon, Seattle
• these are the new power bases
ANOTHER EXAMPLE

31. AND LAST BUT NOT LEAST: GOOGLE

32. • what dus FAANG/GAFA stand for?
FAANG/GAFA

33. • old version
BC AD
• new version
TIMELINE OF HISTORY

34. GOOGLE TRENDS

37. VIDEO: YEAR IN SEARCH

38. GARTNER HYPE CYCLE
https://www.gartner.com/smarterwithgartner/top-trends-in-the-gartner-hype-cycle-for-emerging-technologies-2017/

40. trends
• What’s the next business that will be disruptive
according to you? ….
GROUP DISCUSSION

41. WILL ROBOTS TAKE MY JOB?

42. DIGITAL DISRUPTION
DRIVERS
trends
drivers
models
response

43. drivers
• What are the underlying causes for this
disruption?
1. …
2. …
3. …
4. …
GROUP DISCUSSION

44. drivers
BUILDING BLOCKS
con-
nected
peer
reviewing
online market
place
new technologies

45. drivers
WAVES OF DIGITAL DISRUPTION
source: digital transformation, Jo Coudron

46. drivers
THE SPEED OF CHANGE
source: digital transformation, Jo Coudron

47. drivers
• technological innovation
→ social networks
→ user friendly apps
→ mobile devices
→ online review systems
DRIVERS OF TRANSFORMATION (DOT’S)

48. drivers
• cost consciousness
→ due to financial crisis
→ world wide economic slow down
DRIVERS

49. drivers
• value shift
→ younger generations think different about concept
→ access > possession (status) *
→ 1 lawn mower for neighborhood
→ Netflix or Spotify sharing with friends..
• sharing economy
DRIVERS

50. drivers
• Who already knows the concept of LETS?
• LETS =
→ Local
→ Exchange
→ Trading
→ System
• Some examples
→ Kortrijk: vlasblomme
→ Gent
→ enz…
SHARING ECONOMY

52. drivers
• growing concern about the climate
DRIVERS

53. drivers
• profit driven
• IP protected
→ ® ™ ©
• central management
• impact-driven
• open access, collaboration
• collective management
OLD WAY NEW WAY

54. drivers
SCENARIO

55. drivers
this is not an era of change, but a
change of era (Rotmans, 2014)
PARADIGM SHIFT

56. drivers

57. drivers
• before: monolithic models
→ top down logic
→ only a few people had access to all the information
→ information was controlled & filtered
• now: internet & social media
→ 2 way communication customer & stakeholders
→ conversation management
METAPHOR OF TRANSPARENCY

58. drivers
• traditional business
→ combination of different products & services
• traditional newspaper
→ bundle of information
→ small price
• digital newspaper
→ same offer, but now on pc, tablet, smartphone
→ copy, paste
• but each atomic part has new competitors
METAPHOR OF MONOLITHIC VS. ATOMIC ORGANISATIONS

59. drivers
• ‘APPification’
• small companies
→ they do only 1 thing/app
→ on a global scale
→ (almost) for fee
IMPACT SMARTPHONE

60. drivers
• breaking news
• in-depth analysis
• trends & lifestyle
• weather
• jobs
• sports
• etc….
WHAT IS THE ALTERNATIVE FOR…

61. drivers
• traditional shop
→ more space for products
→ popular
→ profitable
LONG TAIL
• web shop
→ if it exists, you can buy it
→ even small group
customers
→ but worldwide = profitable

63. drivers
• smartphone + app
• anything is on the tip of your fingers
→ swipe
→ click
• example
→ Uber
INSTANT GRATIFICATION

65. drivers
• online banking
• online tax form
• online hotel booking
• online shopping
SELF-SERVICE SOCIETY

66. •
AMAZON GO SHOPPING 2.0
https://www.youtube.com/watch?v=NrmMk1Myrxc

67. drivers
• AWS = amazon web service
• Pinterest, air BnB, Spotify
CLOUD-COMPUTING

68. https://www.youtube.com/watch?v=XZmGGAbHqa0

69. GOOGLE: GHLIN

70. drivers
• article in magazine about a city trip?
→ sponsored?
• opinion
→ friends Facebook
→ TripAdvisor
→ Blog *
WHAT DO YOU PREFER?

71. drivers
THE NETWORK WINS
https://www.youtube.com/watch?v=zntukv0MvpI

72. drivers
• fear
→ ‘off the network’
→ no wifi
• at ease when
→ full battery
→ five bars
• constantly sharing
→ we feed the network
GEN Z = EXTREMELY CONNECTED

73. HOW OFTEN ARE WE ONLINE?

74. MASLOW

75. MASLOW 2.0

76. drivers
• me & my wife our kids
CROSSMEDIA

77. drivers
• apps location based
→ weather apps
→ traffic apps
→ restaurant apps
→ tinder….
THE FUTURE IS MOBILE

78. • we don’t talk so much to each other
• examples
→ waiting for a job interview
→ in a (boring) meeting
→ nice & cozy at home
→ with friends on a restaurant
DISADVANTAGES (THE DARK SIDE)

80. drivers
CONCEPT : VUCA
source: Peter Hinssen

81. drivers
• gamification
• internet of things
• wearables
• 3D printing
• quantified self
• robotics
• drones
• big data
• monitoring
MORE STUFF TO COME

83. • add the right product name
• google …..
• Amazon ….
• Apple ….
VIRTUAL ASSISTANTS

84. GOOGLE HOME
https://www.youtube.com/watch?v=5bYSX2C4aWc

85. • https://www.youtube.com/watch?v=nwPtcqcqz0
0
PARODY
https://www.youtube.com/watch?v=nwPtcqcqz00

86. • Google pixel earbuds
TRANSLATION

87. drivers
3D REVOLUTION

88. drivers

89. drivers

90. drivers
• example Manhattan, NY
BIG DATA

91. • possibility to predict consumer behavior
• and tailored advertising
• machine learning & AI
BIG DATA

92. • Twitter can predict box office revenues from
films, based on user experience
• Google can predict very precisely where and
when a flue epidemic will occur
• Shazam
BIG DATA: PREDICTIVE ANALYSIS

94. drivers

95. drivers

96. DIGITAL DISRUPTION
BUSINESS MODELS
trends
drivers
models
response

97. business models
CONCEPT SHARE ECONOMY

98. business models
• so you can bypass an entire business
DEFINITION

99. INFOGRAPHIC

100. • old way
→ 1 person owns car
→ takes friends with him
• new way
→ 3 people own car together
• alternative
→ ..
CAR SHARING

102. business models
• centralized
→ client server model
→ only 1 node
→ you always need to pass
the center
• decentralized
→ you can bypass the center
→ several nodes
• distributed
→ no nodes anymore
• Question: can you apply
this model to business models?
NETWORK TERMINOLOGY

103. business models
• centralized
→ Mc Donalds decides
→ Bpost
• decentralized
→ Sapa = aluminum company
→ Colruyt group
→ dreambaby
• distributed (P2P)
→ Wikipedia
→ Wikispeed *
→ AirBnB
→ Tapazz (car rental)
BUSINESS TERMINOLOGY

104. business models
• reality = hybrid models
→ P2P
→ centralized
• AirBNB
→ takes a percentage
• Uber
→ decides price strategy
REALITY = HYBRID MODEL

105. BUSINESS MODELS
free model
freemium
membership
affiliate mkt
block chain
crowdfunding
circular economy

106. business models
• flagships
→ Google
→ Facebook
→ Twitter
→ Instagram
• where do they get the money?
→ advertising
• dus indirect betaal je wel een prijs
→ wie betaalt finaal die advertising?
→ en wat geef je vrij in ruil voor die google info?
1) FREE MODEL

108. • there are also some disadvantages
to the system of share economy
→ status as self-employed person
→ call centers, chatrooms
→ week-end work
→ evening shifts
• so a much more flexibility is
expected…
A CRITICAL NOTE

109. business models
BUSINESS MODEL CANVAS GOOGLE

110. business models
• what is the concept of
this model
→ free
→ premium
• examples?
→ …..
2) FREEMIUM MODEL

111. business models

112. business models
• Music
→ you don’t buy CD’s
→ you ‘rent’ streaming
music
→ Spotify
→ Apple music
• video’s
→ netflix
• data
→ drop box
• software
→ office 365
3) MEMBERSHIP MODEL

113. business models

114. business models

115. business models
• social selling
• affiliate marketing
→ bloggers
4) AFFILIATE MARKETING

116. ALUMNUS CM

117. https://www.youtube.com/user/caseyneistat

119. business models
MODEL AFFILIATE MARKETING

120. business models
• concept shared ledger
→ virtual
→ decentralized
→ bookkeeping system
• examples
→ bitcoin 
→ but in the near future
→ mortgages
→ passports
→ gun licenses
5) BLOCK CHAIN

121. https://www.youtube.com/watch?v=pLv4toxtBsc&t=13s

122. • meerdere modellen
→ pure sponsoring
→ iets in return krijgen
• model zoals Wikipedia
6) CROWDFUNDING

124. BANK LOAN? NO THANKS

125. • this is a new business model, but not really
inspired by the digital transformation, but
anyhow, quite interesting:
7 CIRCULAR ECONOMY

127. DIGITAL DISRUPTION
HOW TO RESPOND?
trends
drivers
models
response

128. how to deal with it?
• digital disruption is real
• expect a smack in the face
A SMACK IN THE FACE

129. how to deal with it?
• who is going to be your
→ uber
→ airbnb
→ Netflix
→ zalando
→ tesla
→ …
A SMACK IN THE FACE

130. how to deal with it?
CREATE YOUR OWN DIGITAL TRANSFORMATION VISION
https://www.youtube.com/watch?v=8wGq0e_n3n4
source: digital transformation, Jo Coudron

131. how to deal with it?
CREATE DIGITAL LEADERSHIP
source: digital transformation, Jo Coudron

132. how to deal with it?
• score your leadership team on active usage and or
understanding of new technologies
• if the majority of leadership is out,
the company is out ….
LEADERSHIP ASSESSMENT
CEO sales mkt HR Fin prod. R&D ….
Facebook x x
twitter x x
LinkedIn x x x x x
you tube x x x
snap chat x
Instagram x
…
you can also apply this
to your university
source: digital transformation, Jo Coudron

133. • some colleagues are still digital dinosaurs…
DIGITAL DINOSAUR

134. how to deal with it?
TRANSFORM ORGANIZATION PHILOSOPHY
source: digital transformation, Jo Coudron

135. how to deal with it?
CHANGE OF CULTURE
source: digital transformation, Jo Coudron

136. how to deal with it?

137. OMNICHANNEL

139. NPS

140. NPS = NET PROMOTOR SCORE

141. • Get rid of the absurdity of the concept ‘opening hours’
• the consumer wants everything
OPENING HOURS?

142. • most e-commerce sites have chatbots nowadays
CHATBOT

143. how to deal with it?
• rather than thinking about sharing markets,
we need to think about creating markets!
SHARING OR CREATING?

144. RED SEA & BLUE OCEAN

145. how to deal with it?
• traditional structures
→ procedures
→ rules
→ budgets
• speed?
→ slow
• goal
→ keep business going
CLASSIC INNOVATION

146. how to deal with it?
• project teams
→ small
→ dedicated
• speed?
→ agility
→ flexibility
• think ‘out of the box’
• can even be threat traditional activities
→ possible cannibalization
• example
→ Google
→ Unilin
NEW INNOVATION

147. UNILIN INNOVATION HUB AT HANGAR K

148. how to deal with it?
• example : Microsoft employees
• company: between 10h - 14h and at home (skype business + office 365 +…)
NWOW = ….

150. how to deal with it?
• study with humans
→ max. of about 150 people
→ if more people
→ more structures
→ more rules (laws)
→ more tools
→ more processes
ROBIN DUNBAR STUDY

151. how to deal with it?
BUILD THE TRANSFORMATION FLEET

152. how to deal with it?
• make an educated guess….
DARWIN

153. how to deal with it?
• the customer always decides
• all things you do must start from a superior
experience
• from now on, you are an agile & flexible company
• you live in a world of constant uncertainty, deal
with it
• always play on the offense instead of the defense
• don’t be afraid to cannibalize your own business
• never, ever, disrespect new or small players
CHANGE THE CULTURE

154. how to deal with it?
• how can we explain the success of Uber?
THE CUSTOMER ALWAYS DECIDES

155. how to deal with it?
ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE

156. how to deal with it?
• customer centric
FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY

157. how to deal with it?
• only certainty =….
YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY

158. how to deal with it?
ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE

159. how to deal with it?
NEVER EVER DISRESPECT NEW OR SMALL PLAYERS

160. how to deal with it?
BALANCE
source: digital transformation, Jo Coudron

161. • traditional business, but they are investing in the
market of batteries
• they make money, but Uber & Tesla not always....
EXAMPLE: UMICORE

162. how to deal with it?
TAKE HOME MESSAGE
source: digital transformation, Jo Coudron

163. QUESTIONS?
THANK YOU FOR LISTENING