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Innovation, digital, data and the Trust Economy:A bright future for the CFO function

Philipp Kristian Diekhönerpk@philippkristian.com

‘Today’s business world is far more about communities and relationships and far less about transactions.’ – Deloitte Australia Trust Index 2018

Welcome to The Trust Economy. It’s strangely familiar!

Our society and economy are built on trust

Every business is in the business of trust

Technology and data are transforming who, what and how we trust

Digital trust intermediaries are evolving the global economy

Uber, the world’s largest taxi company,

owns no vehicles. Facebook, the world’s

most popular media owner, creates no

content. Alibaba, the most valuable

retailer, has no inventory. And Airbnb, the

world’s largest accommodation provider,

owns no real estate. Something

interesting is happening.

– Tom Goodwin

All of these create data-driven social capital markets on a global scale

Redefining trust = value realised in economic or social interactions

Collective trust is the world’s most profound economic power

When trust leaves, value leaves with it

Trust creates mental monopolies in people’s heads

This makes leading people, organisations and nations so successful

Highly trusted companies financially outperform their peers

Trusted organisations are the happiest, highest performing workplaces

Braving complexity requires agile, proactive and resilient teams

Trust facilitates self-regulating high-autonomy, high-alignment cultures

Leadership evolves from guarding privilege to enabling self-organisation

The decentralization paradox: Less control can drive more effectiveness

Status quo: Industrialisation and urbanisation built on ‘necessary’ distrust

The old economy is inefficient and constrained because of this distrust

We’re experiencing a global trust low that is destroying economic value

Startups that win over trust from incumbents change entire industries

Inertia and legacy has always created uphill trust barriers for innovators

Innovation happens when trust shifts from established to new solutions

Technology advances paved the way for every major global trust shift

Trust in nomadic life to trust in settlements

Trust in personal relationships to trust in money

Trust in manual craft towards trust in industrial corporate structures

Trust in local production to trust in globalised trade

Trust in corporations to trust in data-driven intermediation

Decades of innovation wired us to put great default trust in technology

People trust data to turn unknowns into knowns and simplify things

Technology is shifting society from distrust-first to trust-first ecosystems

Tech-enabled decentralisation returns us to social regulation, but at scale

Technology and data are driving our biggest social evolution in history

This relationship renaissance is transforming business on a global scale

Decentralisation of information erodes legacy structures

Decentralisation of supply and demand enhances variety and choice

Decentralisation of intermediation itself reduces the cost of trust

Data is the new nuclear power

As trust shifts to technology, data IS becoming the heart of our economy

Client centricity matters more than ever, and data is an integral part

An ever increasing volume of information means simplicity is paramount

Technology will automate much of today’s business, including advisory

Integrity and accountability are likely to become highly algorithmic

All key decisions from strategy to hiring will directly link to data

Data is overtaking people as the most important revenue and trust driver

It enables transparency, customisation and simplicity to reduce frictions

Trust leads to prime customer access to deliver more relevance and value

Empowering all stakeholders with data products is the way forward

The quality of digital interfaces is a mission-critical future success factor

Trust leads to less friction, more empowerment and greater compliance

Embracing the Trust Economy hedges against current global trust shifts

Implementing a trust strategy: Measure, heatmap, analyse gaps, optimise

Accounting for trust enhances your commercial and social contribution

The Trust Economy balances human pursuits of wealth and wellbeing

The Trust Economy = The Happy Economy

Philipp Kristian Diekhöner

CEO, The OXYTOCIN Group

pk@philippkristian.com

+65 8742 9582