The document discusses how digital disruption is transforming industries and business models. It notes that many organizations have become "digital dinosaurs" unable to adapt, and that over 40% of jobs could be replaced by digital technology in the next two decades. It provides examples of industries like retail, taxis, and media that have been disrupted. The key themes are that we are in an era of digital disruption and digital Darwinism, where organizations must adapt or risk failure. Strategies discussed include transforming customer engagement, internal processes, and business models to drive digital change.
7. Core Theme
• The digital and social media revolutions are disrupting a
wide range of industries, transforming existing ways of
doing things and existing business models
• Many organisations have become, or are in the process of
becoming, ‘digital dinosaurs’ due to their inability to
adapt
• The changes seen already are nothing compared to what
is coming over the next few years. Over 40% of jobs could
be replaced by digital technology over the next two
decades
8. Some Quotes
• We are in the early stages of an era of great technological change.
Digital innovations are remaking our industries, economy, and
society just as steam, electricity, and internal combustion did before
them MIT Technology Review, June, 2015
• Digital disruption has the potential to overturn incumbents and
reshape markets faster than perhaps any force in history………. an
average of roughly four of today’s top 10 incumbents (in terms of
market share) in each industry will be displaced by digital disruption
in the next five years. Despite these dire ramifications, only 25
percent describe their approach to digital disruption as proactive—
willing to disrupt themselves in order to compete Digital Vortex: How
Digital Disruption Is Redefining Industries (IMD/Cisco 2015)
9. Some Quotes
• Digital disruptors are tearing up the rule books, and no industry
is immune. In response, firms must take a different approach to
digital strategy, embedding digital capabilities into the heart of
their business, rather than treating digital touch-points as
peripheral add-ons The Digital Maturity Model, Forrester
Research (2014)
10. #adaptordie
• As organisations, we need to transform digitally - using digital
technologies to rethink and improve the way we do things in
at least three main areas:
– ‘Externally’ - sales, marketing, PR, customer engagement,
customer service, customer analytics
– ‘Internally’ - the way we communicate with colleagues and
partners; our business processes and systems; becoming an
agile, flexible, fast moving ‘social organisation’
– Digitally transform our core business models
12. If we need to adapt or die, do we
have the Digital Leaders to drive
change?
13. The evidence would suggest not……
While there is a growing recognition of the need for digital
change, a major digital skills shortage exists
• Capgemini Consulting/MIT Center for Digital Business - missing digital
skills were the key hurdle to digital transformation in 77% of the
companies surveyed, (‘The Digital Talent Gap: Developing Skills for
Today’s Digital Organizations, 2013’)
• Forrester Research (2014) highlighted a ‘digital execution crisis’.
Successful digital business transformation requires the full support of
CEOs to drive investment priorities but few CEOs fully understand
digital. ‘Many executives report that their firms are woefully
unprepared to deal with the digital onslaught’
• Similar findings have been reported in other studies
16. As Individuals, We Need To Transform
A new breed of senior
executive is required
17. Digital Business Leaders
• Combine high level business knowledge, experience and
understanding with the ability to develop digital
transformation strategies fully aligned with and
supportive of agreed business goals and objectives
• The confidence and personal skills to drive organisational
change
• Are you ready to become a Digital Business Leader?
23. Agenda – Day 1
Time Topic/ Stop and Reflect Exercises
09.00 Digital Disruption: The digital and social media revolutions.
Stop and Reflect Exercise 1: Digital Landscape Analysis.
10.30 Tea/Coffee
11.00 ‘External Digital’: Customer engagement; the new rules of sales, marketing
and PR; social customer service; inbound/content marketing; big data and
predictive analytics; real time engagement as the new marketing; tools and
software.
12.30 Lunch
13.15 Stop and Reflect Exercise 2: The Customer Journey.
Stop and Reflect Exercise 3: Audit your Customer Engagement Strategy.
Stop and Reflect Exercise 4: Develop a Content Plan for your business.
14.45 Tea/Coffee
15.00 ‘Internal Digital’: processes, people, information, technology; building
efficient, agile, flexible, data driven organisations; social business; ‘Enterprise
Social’ software; analytics.
16.30 Close
24. Agenda – Day 2
Time Topic/ Stop and Reflect Exercises
09.00 Stop and Reflect Exercise 5: Internal Digital Audit/Benchmark Analysis.
10.30 Tea/Coffee
11.00 Digital Strategy Development: Digital business transformation; developing a
digital vision and strategy; KPIs and targets.
Stop and Reflect Exercise 6: Develop a Digital Transformation Strategy.
12.30 Lunch
13.15 Digital Strategy Implementation: key success factors; people, technology,
organisation, culture, project management, overcoming resistance to change;
the role and characteristics of a successful Digital Business Leader.
Stop and Reflect Exercise 7: Develop an Implementation Plan.
14.45 Tea/Coffee
15.00 Measuring Digital Performance and Organisational Impact: the 6Is
approach; performance KPIs and measurement tools
Stop and Reflect Exercise 8: Digital Business Performance Measurement.
16.30 Close
26. Digital Disruption
• Disrupt or be disrupted
• Why now? - the convergence of disruptive technologies
• Three main impact areas
– External digital
– Internal digital
– Business model
• Will your industry/company be disrupted? How big will the
impact be?
• Examples
• Stop and Reflect Exercise 1: Digital Landscape Analysis
36. Stop and Reflect Exercise 1
Digital Landscape Analysis
• Undertake a Digital Landscape Analysis for your organisation
or organisation of your own choice
• Summarise the main threats and opportunities
52. ‘Terminal Degrees’ – the Economist
‘If universities were to face the same conditions over
the next 10 to 20 years that daily newspapers faced
over the last 10 to 20, then revenues would fall by more
than half, employment in the industry would drop by
nearly 30% and more than 700 institutions would shut
their doors.’ (Economist, 2014)
58. More Examples
• Tourism and hospitality – digital has revolutionised the
customer journey – Dreaming, Planning, Booking, Experiencing,
Sharing; also impact of the collaborative economy Airbnb
• Retailing - ‘showrooming’
• Business Services – impact of Free Agent on bookkeeping/
accountancy profession; Hourly Nerd
• Construction – Win Sun recently produced 10 basic houses in a
day, at an average cost of less than £3,000, using a giant 3D
printer and “ink" made from recycled waste
• Agriculture – Field Scripts, a Big Data and predictive analytics
development based on a database of 50 billion soil
observations and 10 trillion weather-simulation points.
• Taxis – Uberfy or be Uberfied
69. Industry Disruption Potential
Short fuse, big bang: Industries with less than three years
to adapt and transform themselves or face watching up to
50% of their business perish - finance, retail, professional
services, arts and recreation, real estate and media,
information and communication technology
Short fuse, small bang: Industries with a lot less to lose in
the way of digital disruption, but there is still a limited window
in which they can act to mitigate potential damage -
construction, wholesale trade and the hospitality industry
70. Industry Disruption Potential
Long fuse, big bang: Industries that will experience
profound change, losing a lot if they don’t metamorphosis.
Over time, we will see each area being delivered in
fundamentally different ways - transport, government,
education and health
Long fuse, small bang: The final category includes
manufacturing and mining, which Deloitte says have the
least potential for digital technologies
71. The Digital Vortex
Four out of ten
industry incumbents
will be disrupted
within the
next five years
77. Bob Dylan (Mashed Up )
Come gather 'round people
Wherever you roam
And don’t criticise
What you can't understand
Your sons and your daughters
Are beyond your command
Your old road is
Rapidly agin‘
Then you better start swimmin’
Or you'll sink like a stone
For the times they are a-changin’