The dynamics of digital transformationFast is not fast enough

Jeroen Derynck Business Transformation Architect

jderynck@salesforce.com

FAST IS NOT FAST ENOUGH

USER EXPERIENCE SPEED PRICE CONVENIENCE MOBILE TRUST

customers demand

WAVES OF DIGITAL DISRUPTION

1995+ MUSIC PHOTOGRAPHY VIDEO RENTAL …

2005+ PRINT MEDIA TV TRAVEL REAL-ESTATE HR …

2015+ FINANCE HEALTHCARE AUTOMOTIVE RETAIL EDUCATION TELCO …

2020+ ALL SAFE HAVENS WILL BE SUBJECT TO DIGITAL DISRUPTION …

digitaltransformationbook.com

uk.businessinsider.com/ex-barclays-boss-anthony-jenkins-on-fintech-and-bankings-uber-moment-2015-11

Software is eating the world

ON DEMAND ECONOMY

THE APP ECONOMY IS NOW BIGGER THAN HOLLYWOOD

http://fortune.com/2015/01/22/the-age-of-unicorns/

DIGITAL TRANSFORMATION IS MORE THAN A PRETTY USER INTERFACE… IT IS RE-ENGINEERING THE VERY FOUNDATIONS OF YOUR ORGANISATION IN ORDER TO ENGAGE WITH YOUR CUSTOMERS IN COMPLETELY NEW WAYS VIA NEW BUSINESS MODELS AND CLEVER USAGE OF DIGITAL TECHNOLOGIES

WHAT EXACTLY IS DIGITAL TRANSFORMATION?

@THETHINKINGAPE

PLATFORM ECONOMY

WHAT AIRBNB, UBER, AMAZON, ALIBABA, … HAVE IN COMMON

NETWORK ORCHESTRATORS IN THE SHARING ECONOMY

Most current game changers are not based on high-tech.

They are based on a better way to solve a basic problem, using simple and relevant technology, to actually improve peoples lives…

A [ P ] P I F I C A T I O N

THESE TURBOCHARGED PLATFORMS, BOOSTED BY OTHER TURBOCHARGED PLATFORMS, ARE MARCHING AROUND THE GLOBE, TRAMPLING BOTH TRADITIONAL BUSINESSES AND OLDER PLATFORMS. NO BUSINESS IS SAFE IN THE PATH OF THIS MOST RECENT GALE OF CREATIVE DESTRUCTION

https://hbr.org/2016/05/the-best-digital-companies-are-set-up-to-never-stop-innovating

ALL ENTERPRISES WILL BE TECHNOLOGY COMPANIES BY 2020

TO GET SOME GLORY

YOU HAVE TO BE BOLD

IN ORDER TO FIGHT BACK, THE LEADERSHIP TEAM MUST HAVE A DIGITAL-FIRST MINDSET. THERE IS A DIRECT RELATIONSHIP BETWEEN THE DIGITAL IQ OF YOUR BOARD AND THE CHANCE THAT YOUR ORGANISATION WILL STILL BE IN BUSINESS BY 2020

JEROEN DERYNCK

“we’ll be fine…”

famous last words

- WORKING CAPITAL / TOTAL ASSETS: COMPANIES WITH A LOW OR NEGATIVE SCORE HERE WILL STRUGGLE TO PAY BILLS ON TIME

- RETAINED EARNINGS / TOTAL ASSETS: COMPANIES THAT RELY ON LARGE AMOUNTS OF DEBT AND BORROWING RECEIVE A LOW OR NEGATIVE SCORE HERE

- EARNINGS BEFORE INTEREST & TAXES (EBIT) / TOTAL ASSETS: COMPANIES THAT BRING IN A SMALL AMOUNT OF REVENUE RELATIVE TO THEIR SIZE RECEIVE LOW OR NEGATIVE SCORES

- BOOK VALUE OF EQUITY / TOTAL LIABILITIES: A LOW OR NEGATIVE RATIO HERE INDICATES THAT THE COMPANY MAY BE USING DEBT TO FINANCE GROWTH, WHICH CAN OFTEN LEAD TO BANKRUPTCY

THE ALTMAN Z-SCORE: AT RISK OF BANKRUPTCY

FORMULA TO CALCULATE WHETHER YOUR COMPANY IS AT RISK

WHAT ARE YOUR OPTIONS?

outside our

comfort zone

LOW MOTIVATION TO RESPOND HIGH

LOW

A

BILI

TY T

O RE

SPON

D

HIG

H

- ATTACK THE DISRUPTION

- EMBRACE INNOVATION & SCALE UP

- ADAPT & SEPARATE - ADOPT & KEEP

INTERNAL - ATTACK

- FOCUS ON YOUR OWN BUSINESS

- IGNORE THE INNOVATION

- FOCUS ON YOUR OWN BUSINESS

WHERE DO YOU WANT TO BE WITHIN 5 YEARS?

A NEW GENERATION OF BUSINESS LEADERS WITH THE RIGHT SET OF CAPABILITIES TO HELP YOUR ORGANISATION EMBED DIGITAL INTO THE FABRIC OF BUSINESS CHIEF DIGITAL OFFICER

CHIEF DATA OFFICER

CHIEF EXPERIENCE OFFICER

THE NEW ROCKSTARS

CLOUD ECOSYSTEMPLATFORM CONNECTORSCLOUD

THE ELASTIC ECONOMY RULES

CEO VISION

CMO MARKET

CIO TECHNOLOGY

COO PEOPLE

PARTNERSHIPSBUSINESS MODELS EXPERIMENTATIONTRANSFORMATION

IOT, BIG DATA, SECURITY, ECOMMERCE, API, …

CDO DIGITAL

THE NEW PLAYBOOK

FUELLED BY RELENTLESS TECHNOLOGICAL INNOVATION, ACCELERATED CONNECTIVITY CREATES AN EVER INCREASING RATE OF CHANGE

AS THE PACE OF CHANGE ACCELERATES, THE CHALLENGES YOU FACE ARE BECOMING LESS AND LESS PREDICTABLE. THE PRACTICES THAT WERE SO SUCCESSFUL IN THE PAST ARE COUNTER-PRODUCTIVE IN LESS PREDICTABLE ENVIRONMENTS

APIS FUEL THE SOFTWARE THAT’S EATING THE WORLD

PAY M E N T S

T R A N S P O R TAT I O N

D I S T R I B U T I O N

C O M M U N I C AT I O N S

E C O M M E R C E

M U S I C & T V

N E W S & M E D I A

A D V E R T I S I N G

…

PROGRAMMABLE ENTERPRISE

Matchmaker businesses are extending their tentacles all through the economy. Platforms are being erected on top of platforms that are being erected on top of platforms. Today, though, matchmakers are turbocharged – powered by the cloud, broadband, microprocessors, software, and other modern technologies

RESPONSIVE ORGANISATIONS

IN THE DIGITAL ARENA, YOU NEED

DNA OF A RESPONSIVE ORGANISATION

PROBLEMS

NETWORKS

EMPOWERING

EXPERIMENTATION

TRANSPARENCY

it is about the platform

In the on demand economy

SCALABILITYWhat startups can learn from corporates

APPETITE FOR RISK

HOW TO GET STARTED

TECHNOLOGY IS NOT THE ONLY ANSWER

SO HOW ABOUT VIRTUAL REALITY?

WHAT CAN WE DO WITH

BEACONS?

SHOULDN’T WE INVEST IN DRONES?

DON’T WE NEED A MOBILE APP?

DESIGN THINKING IS MORE THAN A PRETTY OFFICE SPACE

MANY COMPANIES FAIL AT INNOVATION

OBSERVING QUESTIONING NETWORKING EXPERIMENTINGASSOCIATING

INNOVATORS’ DNA

SPOT THE INCUMBENT

10 HYPER

DISRUPTIVE BUSINESS MODELS

SUBSCRIPTION MODEL

FREEMIUM MODEL

FREE MODEL

MARKET PLACE

ACCESS OVER OWNERSHIP

HYPER MARKETEXPERIENCE

THE PYRAMID

ON DEMAND

THE ECOSYSTEM

HELLOFRESH DROPBOX

FACEBOOK

ALIBABA

ZIPCAR

ZALANDOTESLA

AMAZON

UBER

APPLE

THE NEED FOR A FAST AND FURIOUS IT

TRANSFORMATION ACCELERATIONDISRUPTION

TO minimum

viable product

CORPORATES DISRUPTORS

FROM maximum validated product

MINIMUM VIABLE PRODUCTS ARE THE NEW BLACK

DUAL OPERATING SYSTEM

FLUID ORGANISATION

AGILE PROCESSES TECHNOLOGY EXPERIMENTATION

IF WE DON’T CREATE THE THING THAT KILLS FACEBOOK, SOMEONE ELSE WILL

FACEBOOK’S LITTLE RED BOOK

CONCLUDING THOUGHTS

THE QUICK SHALL

INHERIT THE

EARTH

Fast is better than slow.

While slow is adding unnecessary embellishments, fast is out in the world.And that means fast can learn from experience while slow can only theorize.

Those who ship quickly can improve quickly.

So fast doesn’t just win the race. It gets a head start for the next one.

In May 2016, I joined Salesforce as Business Transformation Architect: as change agents, we provide thought leadership, and executive partnership to drive innovation through industry and Salesforce platform expertise thus helping our enterprise customers accelerate strategic goals, drive business outcomes and deliver maximum business value:

@THETHINKINGAPE | JDERYNCK@SALESFORCE.COM

- Accelerate change - Understand all that is possible today - Respond to a rapidly changing business - Simplify an increasingly complex landscape

Turn today’s challenges into tomorrow’s goals

thank y u