Learn how to poise yourself and your organization to effectively drive innovation through business strategy. In this workshop you will learn: • The 9 strategic forces that create business value and how to apply them to your strategy • How digital innovation can change business fundamentals • You will leave this workshop with the tools to assemble single page maps to renovate existing businesses approaches, or show how your new approach will obsolete competitors. Digital Business Strategist, Dave Wieneke, shares a system he uses help enterprises develop digital opportunities that reshape their business and change their industry’s competitive landscape.

1. Applying Digital Strategy Across the Business Dave Wieneke@usefularts

2. 2 The Wealth of Change Compound annual growth rate over five years [Source: IBM, CEOs are expanding the innovation horizon: important implications for CIOs]

3. market boundaries are not given they are reconstructed by the actions & beliefs of industry players

5. beat the competition

6. explore existing demand

7. make the value/cost trade-off

8. align with differentiation OR low cost

9. create uncontested markets

10. make competition irrelevant

11. create & capture new demand

12. break value/cost trade-off

14. What Industries Has Tech Remade 6

15. Digital Shift Calls For a New Business Model 7

16. IT Had Tools Just Waiting to be Liberated! 8 IT ListservesSMTP Email Hosting Portals LoganalysisGroupwareApp Dev Security Data

17. They are in our hands 9 Marketing ListservesSMTP Email Hosting Portals LoganalysisGroupwareApp Dev Security Data Social ListsEmail Marketing Corporate Corporate Sites Web AnalyticsCommunityMobile Apps Compliance CRM ---------- Social Networks SEO / PPC IT

18. But increasingly *companies* are digital 10 DigitalBusiness DigitalMarketing ListservesSMTP Email Hosting Portals LoganalysisGroupwareApp Dev Security Data Social ListsEmail Marketing Corporate Corporate Sites Web AnalyticsCommunityMobile Apps Compliance CRM ---------- Social Networks SEO / PPC eCRMTransactional Client Suppt. Community BIClient CommunityProduct Delivery Legal Data Governance DigitalIT 360 client viewxChannel ROI Client experience

19. Relationship Pipes for Manufacturers Dave Wieneke – www.usefularts.us

20. New Digital Products as Marketing 12

21. We Need a Less Specialized Vision 13

22. Communications & Prototyping Map 14 Shows how an organization creates, delivers, and captures value.

23. And there’s a book (soon a second). 15

24. Customers 16 What’s a Segment? Who believes in them? How do *you* cut them?

25. Your Value Proposition 17 New Category Performance Status Price / TCO Risk Reduction Usability

26. Channels Connect Them 18

27. Relationship is the Context 19

28. Revenue Streams 20 Asset Sale Rental Usage / Sales Fee Subscription Licensing Advertising Fixed PriceList, Feature Use, Segment, Volume Dynamic PriceNegotiation, Yield Mgt, Real Time Mkt, Auction

29. Logic | Emotion 21

30. Key Resources 22 Physical Human Brand IP Financial Customer Base

31. Key Activities 23

32. Key Partnerships 24

33. Cost Stream 25

34. Efficiency | Value 26 Improvement Invention

35. Design Pattern 1: The FREE Play The demand you get at a price of zero is far greater than the demand you get at a very low price. Yet, the incremental production costs separating low cost and free digital products are often zero. In some cases free can be cheaper. The awareness, attention and relationship generated by free can have significant value. 27 After giving away 100 billion free callsSkype sold at a value of $8.5 billion…to Microsoft Goolge’s not a real company, it’s a house of cards. - Steve Ballmer, CEO, Microsoft

36. Start With Three Steps 28

37. What Does Google Do For Free? 29 Free Search Web Surfers Free

38. Google: and paid, and more free 30 AdvertisersWeb SurfersPublishers Targeted Ads Free SearchMonetize Content Keyword Auctions Free

39. Google: the Multi-sided Platform 31 Platform MgtAd SalesInnovationAnti-Anti Trust Other SearchProvidersThe SEO CommunityTrademarkHolders AdvertisersWeb SurfersPublishers Targeted Ads Free SearchMonetize Content Data PlatformsAd Matching Keyword Auctions Platform Costs Free Ad Costs ~0!

40. Pattern 2: Amazon - Unbundle & Diversify 32 Online ProfilesCustomized Recos---Membership to save on shipping Software Dev. Fulfillment Global Consumer Market(NA, EU, ASIA/Pac) Marketplace forLow Value Items LogisticsPartnersAffiliates Amazon.com---Affiliate Marketing IT SystemsGlobal Fulfillment“Leader” Brand Huge long-tailselection Sales Margin is Low State of the art marketing& fulfillment system

41. What Could Happen? Trends: regulation, technology, societal, economic Industry: >Suppliers >Stakeholders >Competitors >Insurgents >Substitute Products Market: >Shifting Needs >New segments >Marketing issues >Margins Economic: global conditions, capital, input costs, infrastructure 33

42. Amazon: Unbundle to Diversify 34 Online ProfilesCustomized Recos---Membership to save on shipping Software Dev. Fulfillment Global Consumer Market(NA, EU, ASIA/Pac) Marketplace forLow Value Items LogisticsPartnersAffiliates Amazon.com---Affiliate Marketing IT SystemsGlobal Fulfillment“Leader” Brand Huge long-tailselection Sales Margin is Low State of the art marketing& fulfillment system

43. Amazon SWOT Analysis 35 Online ProfilesCustomized Recos---Membership to save on shipping Software Dev. Fulfillment Global Consumer Market(NA, EU, ASIA/Pac) Marketplace forLow Value Items LogisticsPartnersAffiliates Amazon.com---Affiliate Marketing IT SystemsGlobal Fulfillment“Leader” Brand Huge long-tailselection Sales Margin is Low State of the art marketing& fulfillment system

44. Amazon SWOT Analysis 36 Online ProfilesCustomized Recos---Membership to save on shipping Software Dev. Fulfillment Global Consumer Market(NA, EU, ASIA/Pac) Marketplace forLow Value Items LogisticsPartnersAffiliates Huge long-tailselection Developers Fulfillment by Amazon Firms that needfulfillment Amazon.com---Affiliate Marketing IT SystemsGlobal Fulfillment“Leader” Brand Amazon Web SvcsEC2, SQS etc. APIs Sales Margin is Low State of the art marketing& fulfillment system Higher margins that retail Cloud Computing FeesFulfillments Services Fees

45. Yes, there’s an app for this 37

46. Sketches Can Become Prototypes

47. 39

48. Applying Digital Strategy Across the Business Tweet: @usefulartsBlog: www.usefularts.usEmail: strategy2.0@gmail.com Special thanks to Alexander Osterwalder, Yves Pigneur and 470 co-creators behind the Business Model Generation rubric.