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Leonardo
●
Business Strategist
●
focus on Innovation & Entrepreneurship
●
MBA, MEng
I developed my strategy expertise since 1999 as
consultant to global corporations on business strategy
and sales & marketing strategy.
People Trainer
●
Zangrando,
In the same timeframe I took the opportunity to
become involved in hands-on management projects for
– bridging innovation strategy and implementation business innovation, acting as interim CTO, COO and
CEO.
–
●
shaping the organisation for innovation
–
providing the tools for innovation
–
●
training and coaching innovators
Hands-on, active-learning seminars, workshops and
courses on innovation & entrepreneurship for
international organisations, in English, Italian and
Spanish.
●
Adaptive Development of Innovation Ideas
●
Early Market Validation of Innovation Ideas
●
Digital Disruption
●
Social Selling
Since 2010 I focused on innovation and
entrepreneurship, pioneering the convergence of these
2 areas, and now I help companies reshape their
innovation activities and structure building on an
entrepreneurial model.
Business Model Innovation
●
●
I built my people development skills by training,
assessing and coaching large B2B sales forces since
2008, on strategic selling and key account
management. In the same area I recently developed
training programs on digital disruption and social
selling.
●
In 2013 I developed the "Learning From Failure" HR
management hack with Gary Hamel's MIX and the CIPD
around the theme "Hacking HR for Adaptability
Advantage."
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Digital
Disruption
EESTEC Mobile Summer School
University of Trieste
22 July 2013
this presentation under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported
CC BY-NC-SA 3.0 Leonardo Zangrando check terms on http://creativecommons.org/licenses/by-nc-sa/3.0/
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there are more opportunities...
●
in the past you needed a large infrastructure to innovate
●
and few people were in the position to do it
Today a digital innovator has more innovation opportunities
than an “analogic” innovator in the past
Larger scope of innovation “objects”
Larger number of potential innovators
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there are more opportunities...
●
in the past you needed a large infrastructure to innovate
●
and few people were in the position to do it
10x? 100x? 1000x?
●
today a digital innovator has more innovation opportunities
than an “analogic” innovator in the past
●
larger scope of innovation “objects”
●
larger number of potential innovators
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●
...at a lower cost
innovation in the digital era is much cheaper than
in the analogic era
–
the tools for innovation are substantially free
–
the time required to innovate is substantially shorter
1/10? 1/100? 1/1000?
●
the cost of innovation is drastically reduced
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..leading to dramatic results
“analogic”
innovation
10x
more innovators
digital
innovation
1/10
of cost
100x
innovation
capacity
26. “Why should I innovate
when I am the owner
of the infrastructure?”
photo credit: CC-by melanie_hughes
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27. “Why should I innovate
when I am the owner
of the infrastructure?”
photo credit: CC-by melanie_hughes
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30. a repeating story
how could Chinese manufacturing industry
surpass Western one?
photo credit: CC-by-nc dcmaster
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a repeating story
how could Chinese manufacturing industry
surpass Western one?
Cheap labor cost
Western labor cost is much higher
Replication of existing productive
systems and use of existing
distribution platforms
The cost of developing these systems and
platforms has already been covered by
Western economy in the past
Market already developed
The cost for developing the markets had
already been covered by Western economy
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a repeating story
today we notice a similar situation in the context of digital innovation,
but the challenge is not coming from a single country
companies unable to adopt the new model will
inevitably disappear
Cheap labor cost
Development tools are free or very
cheap
Replication of existing productive
systems and use of existing
distribution platforms
Digital platforms already exist
Market already developed
Digital customers rapidly growing
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good news
companies willing to adopt Digital Disruption
have less constraints to change
than the companies competing against
Chinese manufacturing had
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digital readiness assessment
how do large companies get ready to manage
digital disruption?
June 2012 study by Forrester Research
285 global executives invited to participate
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enthusiastic but disenchanted
How much do you agree the following statements
apply to your company?
Level of agreement (5 points scale, top 2 boxes)
A) People in our company are excited about the
changes that digital will bring to our company
A
all
VP
< VP
% agree
B
C) Our company has policies and business
practices that will enable us to adapt to the
changes that digital will bring to our company
C
D
0%
B) people in our company have the skills
needed to adapt to the changes that digital
will bring to our company
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
D) Our company will put the right resources
(people, budget, time) in place to adapt to
the changes that digital will bring to our
company
Base: 285 global executives invited to participate
SOURCE: Forrester Research – Digital Readiness Assessment, June 2012
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large companies doing worse
How much do you agree the following statements
apply to your company?
Level of agreement (5 points scale, top 2 boxes)
A) People in our company are excited about the
changes that digital will bring to our company
A
all
>1000 empl.
<1000 empl.
% agree
B
C
D
0%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
B) people in our company have the skills
needed to adapt to the changes that digital
will bring to our company
C) Our company has policies and business
practices that will enable us to adapt to the
changes that digital will bring to our company
D) Our company will put the right resources
(people, budget, time) in place to adapt to
the changes that digital will bring to our
company
Base: 285 global executives invited to participate
SOURCE: Forrester Research – Digital Readiness Assessment, June 2012
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how does a digital innovator think?
digital innovators grew up in a time when the
possibilities of digital are way more than the limitations
of the analogic
a Digital Innovator
sees
Possibilities rather than Hurdles
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the challenge
if we don't start thinking like that
within our companies
SOMEONE ELSE WILL DO IT OUTSIDE
making us quickly irrelevant
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how do we do it?
Culture Process
Support the
development of a
digital innovation
culture
Put digital
innovation
behaviors
in place
Innovate
from within
starting now
Infrastructure
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Analogic Innovation
Scarcity Model
culture
Digital Innovation
Abundance Model
“How can we offer customers
“How can we create a new product
and sell it successfully?”
what they need/desire?”
keywords
Create – which are our capabilities to build a
product that we know how to make?
Create Give – the focus is on what we could give
to our customers instead of what we can build.
Product – which is the market for a product that I
know already how to make?
Product Customers – the focus is on customers
needs rather than on the product itself.
Sell – how can we position in the market to
acquire customers that we already know who they
are?
Sell Need – the focus is on satisfying customer's
needs, not only with a product but with a total
experience, rather than just pushing the product to
the customer.
44. early 20 century
“Build it and they'll buy it”
Build it and they'll buy it
focus: Product
Create needs, change customers
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●
●
th
behavior
Hey, customers do have a brain!
And they talk to each other!
photo credit: CC-by-nc-sa-Nokes
●
45. early 20 century
“Build it and they'll buy it”
Build it and they'll buy it
focus: Product
Create needs, change customers
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●
●
th
behavior
Hey, customers do have a brain!
And they talk to each other!
photo credit: CC-by-nc-sa-Nokes
●
“Happy Customer”
46. late 20 century
“Create needs,change behaviors”
focus: Customer Consumer
th
photo credit: CC-by-nc-sa don j schulte @ oxherd arts
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47. late 20 century
“Create needs,change behaviors”
focus: Customer Consumer
th
photo credit: CC-by-nc-sa don j schulte @ oxherd arts
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“Happy Customer”
48. early 21 century
“Hey! they have a brain!
And they talk to each other!”
focus: Customer Person
st
photo credit: CC-by-sa Gruban
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54. Disclaimer: not implying that we should shoot customers!
But sure we did hit (figuratively) sheep and dogs in the past...
photo credit: CC-by-nc-sa drakegoodman
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digitally-driven personal revolutions
Productivity
1984 - Personal Computer
“why should our employees use personal computers?
computing is managed by our IT department!”
72. computing is not a specialist's matter any more, it has been
commoditised and is embedded in almost all life aspects
photo credit: CC-by-nc-sa marsmet472
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digitally-driven personal revolutions
Connectivity
1995 - Internet and E-mail
“why should our employees have individual emails?
they can communicate by telephone and ordinary mail!”
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* just Google “snowden typewriter”
photo credit: CC-by-nc-nd Dito_13
“Russia's agency responsible for the Kremlin security is buying typewriters, a move
reportedly prompted by recent leaks by WikiLeaks and Edward Snowden” - bbc.co.uk*
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digitally-driven personal revolutions
Portability
2008 - Smartphones
“why should our employees need portable computing?
we provide them with the best hardware!”
78. further development is coming with BYOD policies,
bring your own device, enabled by SaaS
photo credit: CC-by jgoge
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digitally-driven personal revolutions
Relationship
NOW - Social Networking
“why should our employees use social networks for work?
our marketing team is already taking care of it!”
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●
●
●
customers and social
94% Digital Natives say they do not use emails on
a regular basis, they prefer Facebook and other
social networks to communicate
generation X represents the largest increase in
Facebook and other social networks use
the fastest growing segments in Facebook are in
the Baby Boomers generation
SOURCE: The Facebook Era by Clara Shih
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widespread adoption
across age groups
90%
Use
of Social Networks is spreading across Age Groups (US data)
80%
3%
65+
8%
55-64
12%
45-54
14%
35-44
16%
16%
25-34
13%
13%
18-24
11%
10%
10%
12-17
1%
1%
2%
2009
2010
2011
3%
2%
6%
7%
60%
population
70%
10%
11%
50%
11%
13%
40%
16%
30%
20%
10%
0%
14%
SOURCE: eMarketer, Feb 2011 and World Bank data
0-11
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what do our customers do
on social media?
●
Talk about us and our competition
●
Research our products and the competitors'
●
Get their peers' feedback on products
●
Create a solution before getting to us
57%
Customer
Due Diligence Begins
source: CEB, Customer Purchase research Study, 2011 n=1,399
Customer First
Engagement with Sales
Purchase
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"People have been complaining about companies
forever, but before they did it at the water cooler
or at the bar, now they are doing it on-line and
spreading their complaints to disparate
communities."
Bernhard Warner, co-founder of London-based consultancy Social Media Influence.
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a way to escape commoditization
offer customers value that goes
beyond the product
–
transparency
–
responsiveness
–
collaboration
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social is where customers are
(also in B2B, customers are made of people)
Q. Can social be a way to offer
additional value to customers
through our employees?
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social in the hands of employees?
●
keeping control of
corporate image
assuring compliance
●
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social in the hands of employees?
●
keeping control of
corporate image
assuring compliance
●
●
●
loosing touch with
customers
loosing opportunities
for business
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social in the hands of employees?
●
keeping control of
corporate image
●
loosing control of
corporate image
assuring compliance loosing control on
●
●
compliance
●
●
loosing touch with
customers
loosing opportunities
for business
●
establishing personal
relationship w. cust.
surfacing opportunities
●
for business
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social in the hands of employees?
●
keeping control of
corporate image
●
loosing control of
corporate image
assuring compliance loosing control on
●
●
compliance
●
●
loosing touch with
customers
loosing opportunities
for business
●
establishing personal
relationship w. cust.
surfacing opportunities
●
for business
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what's the cost of inaction? (
i.e. the two Digital Challenges
1.
the digital world is challenging not only because
customers are on social networks...
●
●
2.
they talk among them (about us), and
they will end up talking to our competitors
also because it's a powerful source of innovation...
●
someone else will do it!
)
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and the advantage of action? (
potential of social technologies to improve productivity at different points
in the value chain in major sectors of the economy
)
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●
what does that mean for sales?
sales effectiveness - customer facing
–
–
prospecting and first call
–
knowing the customer inside
–
dealing with complaints at the root
–
maintaining a relationship
–
●
establish credibility
after sales servicing
sales effectiveness - indirect
–
collaborating with sales team
–
social proof from existing customers
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Best Practice for Mature Social Sellers
40%
best-in-class
industry average
35%
laggards
34%
30%
30%
29%
26%
28%
26%
25%
% respondents
20%
21%
20%
15%
15%
11%
10%
11%
8%
5%
0%
Social media helps reps make
direct connections with prospects to refine forecasted
pipeline
internal collaborative social
tools benefit team-based
selling
SOURCE: Aberdeen Group, 2012; base n=182
Regular, active use of posts,
tweets, forums by reps contributing to online conversations, to impact eventual buying decisions
Our sales team actively “listens” to external social content pertaining to customers,
accounts and target markets
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what would we need
to enable social?
enabling employees to be on social...
AND
assuring compliance and other corporate constraints
is there any solution to this puzzle?
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Digital Revolution
is Happening Around Us
we can make it happen...
or will it happen to us?
or, to say it with Randy Pausch (The Last Lecture, 9/18/2007)
We cannot change the cards we are dealt,
just how we play the hand.