Deciphering Digital Distruption - The Future Is Always Beginning Now
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The document discusses the drastically decreasing life span of Fortune 500 companies, which has fallen from around 75 years to less than 15 years, emphasizing the impact of digital disruption on organizations. It outlines the necessity for these companies to adapt through digital transformation by assessing platforms, building talent, and creating an enterprise-wide digital strategy. Additionally, it highlights that every company must embrace technology as a core aspect of their operations to remain competitive.
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What do Organizations in these three groups have in common?
National
Sugar Refining
GROUP [A] GROUP [B] GROUP [C]
Among Fortune 500 in 2014,
but not 1955
Among Fortune 500 in 1955,
but not in 2014
Among Fortune 500 in both
1955 & 2014
DEAD SURVIVORS ENTRANTS](https://image.slidesharecdn.com/digitaltransformationpremkeynotesingaporev4-160503054920/85/Deciphering-Digital-Distruption-The-Future-Is-Always-Beginning-Now-2-320.jpg)
Deciphering Digital Distruption - The Future Is Always Beginning Now
- 1. Premkumar Seshadri April 06, 2016 THE FUTURE IS ALWAYS BEGINNING NOW
- 2. 2 What do Organizations in these three groups have in common? National Sugar Refining GROUP [A] GROUP [B] GROUP [C] Among Fortune 500 in 2014, but not 1955 Among Fortune 500 in 1955, but not in 2014 Among Fortune 500 in both 1955 & 2014 DEAD SURVIVORS ENTRANTS
- 3. 3 Average life span of fortune 500 companies is reducing drastically AverageAgeofCompanyatdeath Average expectancy of a Fortune 500 company has declined from around 75 years half a century ago to less than 15 years today, and heading towards 5 years Source : American Enterprise Institute (AEI), 2014
- 4. 4 Digital Disruption has already happened and is IMPACTING YOU 4
- 5. 5 Digital Disruption is REAL. Expect a smack in your face
- 6. 6 Are you reading the SIGNS ?? UBER CALIFORNIA USD 62 BN XIAOMI CHINA USD 46 BN AIRBNB CALIFORNIA USD 25 BN PALANTIR CALIFORNIA USD 20 BN SNAPCHAT CALIFORNIA USD 16 BN DIDI KUAIDI CHINA USD 16 BN FLIPKART INDIA USD 15 BN SPACEX CALIFORNIA USD 12 BN PINTEREST CALIFORNIA USD 11 BN WE WORK NEW YORK USD 10 BN LUFAX CHINA USD 10 BN DROPBOX CALIFORNIA USD 10 BN THERANOS CALIFORNIA USD 9 BN ZHONG AN HONG KONG USD 8 BN SPOTIFY SWEDEN USD 8 BN DJI CHINA USD 8 BN STRIPE CALIFORNIA USD 5 BN STEMCENTRX CALIFORNIA USD 5 BN SNAPDEAL INDIA USD 5 BN OLA INDIA USD 5 BN WHO IS GOING TO BE YOUR NEMESIS !!
- 7. 7 Waves of Digital Disruption 1995+ Music Photography Video Rental … 2020+ All safe havens will be subject to digital disruption … 2005+ Print Media TV Travel Teal-Estate HR … 2015+ Finance Healthcare Automotive Real-Estate Retail Education Telco … PERIPHERY UTILITY TOUCHING LIFE INVADING LIFE
- 8. 8 It’s a MASSIVE Disruption And a Remarkable Opportunity You have to Respond, React, Re-think & Re-skill Digital Maturity Equals According to Accenture and MIT, Higher Levels More Profitability 26% More Growth 9% Higher Market Valuations 9%
- 9. 9 HOW WE WORK, MARKET & SELL Planning Strategy Marketing Communication Product Design Customer Service Vision Sales & Marketing Connected in Real-time Customers Led and Adjusted on the Fly Engaged Leadership Technology driven We have to Re-Think Old Ways New Ways
- 10. 10 Technology is the Biggest Play for Organizations Today Every Company is a TECHNOLOGY Company 10
- 11. 11 Do we know what it means? 88% Are undergoing Digital Transformation Efforts
- 12. 12 Elements of Digital Transformation Source : MIT Sloan & Cap Gemini Research Customer Understanding • Analytics-based segmentation • Socially-informed knowledge Process Digitization • Performance improvement • New features Digitally-modified business • Product/ service augmentation • Transitioning physical to digital • Digital wrappers Customer touch points • Customer services • Cross-channel coherence • Self service Performance management • Operational transparency • Data-driven decision-making Digital globalization • Enterprise Integration • Redistribution decision authority • Shared digital services Top line growth • Digitally-enhanced selling • Predictive marketing • Streamlined customer processes Worker enablement • Working anywhere anytime • Broader & faster communication • Community knowledge sharing New digital business • Digital products • Reshaping organizational boundaries • Unified Data & Processes • Analytics Capability • Business & IT Integration • Solution Delivery Digital Capabilities Customer Experience Operational Process Business Model
- 13. 13 Three steps Organizations should undertake to survive and thrive in the new era Assess and select the right DIGITAL PLATFORM Design and execute the plan for building TALENT PLATFORM Digital Strategy drives digital maturity. Put in place a central ARCHITECTURE to determine ownership, accessibility, ownership, compliance, privacy, security, and other risk Deploy the right next generation PLATFORM tools and seamlessly integrate them with the legacy systems. Digital platforms are developed with an eye on transforming the business Smart digital organizations build skills to realize the strategy. Consider customers, citizens, vendors and partners as extensions (and digital accelerators) of the talent platform Define & Implement an enterprise wide DIGITAL STRATEGY
Editor's Notes
- #3: Group A - American Motors, Studebaker, Detroit Steel, Maytag and National Sugar Refining Group B - Boeing, Campbell Soup, Deere, IBM and Whirlpool. Group C - Cisco, eBay, McDonald’s, Microsoft and Yahoo. All the companies in Group A were in the Fortune 500 in 1955, but not in 2011. All the companies in Group B were in the Fortune 500 in both 1955 and 2011. All the companies in Group C were in the Fortune 500 in 2011, but not 1955.
- #9: Respond- You are willing to change and invent the new React - Companies that avoid risk-taking are unlikely to thrive and likely to lose talent. As employees across all age groups want to work for businesses committed to digital progress. Re-Think - It is the strategy and not technology that drives digital Transformation Re-Skill - Maturing digital organizations build skills to realize the strategy. Digital maturing organizations are able to generate more profits. Digital agenda is led from the top. That is what you see from the numbers here.
- #12: So many of us are undergoing it, do we know what we are doing. Only 25% have clear understanding of Digital understanding.
- #13: Capgemini and MITSloan discovered that digital transformation is unfolding in three key areas: 1) customer experience, 2) operational processes and 3) business models. he study also identified nine elements that defined each of the three pillars. Successful enterprises pursuing digital transformation incorporate several elements, in their own way, as the building blocks for technology, process, and business model investments.