TAKING DIGITAL STRATEGY TO THE NEXT LEVEL/media/Corporate/Pdf... · Decide.com (acquired by eBay; shut down Sep 30, 2013) Web site (and mobile app) Price Alerts: We'll notify you

TAKING DIGITAL STRATEGY TO THE NEXT LEVEL

STEVE MUYLLE, PHD PROFESSOR & PARTNER

Vlerick Business School 2 © Prof Dr Steve Muylle

NASDAQ - TECH VALUATIONS

Vlerick Business School 3

DESIGN THINKING

© Prof Dr Steve Muylle

1. Apply design process to design artifacts beyond physical products:

User interface software, user experience, process, service, strategy, ecosystem

2. Design the intervention, which refers to the introduction of the design artifact into the status quo, by applying the principles of rapid prototyping:

Introduce solution with purposely lower complexity

Incorporate user interaction in every step

Iterate in short cycles and improve the artifact

Source: Brown, Tim and Roger Martin, Design for Action, Harvard Business Review, pp. 56-64, Sep 2015.


DISRUPT JOB MATCHING ?

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://be.accent.jobs/nl/job-blog/detail/ontdek-nu-onze-nieuwe-swop-app-versie-1.1&ei=6NCBVfm3OcmR7Abg_YHgDg&bvm=bv.96041959,d.ZGU&psig=AFQjCNFvSn8zc6Y5DCUGAlJvuHCn5pCKpg&ust=1434657380215713

DIGITAL STRATEGY

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Vlerick Business School

DIGITAL TECHNOLOGIES

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(Source: Bharadwaj et al. 2013)

Digital Technologies (DT) are combinations of:

Information Technologies

Computing Technologies

Communication Technologies

Connectivity Technologies




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(Source: Brynjolfsson E. and McAfee A. 2014. The Second Machine Age. W. W. Norton & Company. p. 48.)




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(Source: Brynjolfsson E. and McAfee A. 2014. The Second Machine Age. W. W. Norton & Company. p. 48.)



STRATEGY

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Strategy is the creation of a unique and valuable

position, involving a different set of activities.

Crafting market strategy is the process of studying

how to exploit a business’s resources to achieve

short-term and long-term marketplace success,

deciding on a course of action to pursue, and flexibly

updating it as learning occurs during implementation.

(Source: Porter 1996; Anderson et al. 2009)



DIGITAL STRATEGY

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(Source: adapted from Bharadwaj et al. 2013)

Digital Strategy is organizational strategy

formulated and executed

by leveraging digital technologies

to drive organizational performance.



DIGITAL STRATEGY

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Organizational Performance

DIGITAL STRATEGY

Contexts Modes

Processes

KEY TECH TRENDS Analytics - Big Data Cloud Computing

Cognitive Computing Internet of Things

Mobile - Social

KEY MARKET SHIFTS Customer Behavior

Digitization of Products New Business Models Redefined Ecosystems


TECH TRENDS

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ANALYTICS – BIG DATA


Decide.com (acquired by eBay; shut down Sep 30, 2013)

Web site (and mobile app)

Price Alerts: We'll notify you the moment the price of a product you want drops

Online and Nearby Pricing: Get the best price whether it's in-store or online Price Predictions: Find out whether the price is going down or up Price Guarantee: If our predictions are wrong, we'll pay you the difference


CLOUD COMPUTING

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“We seek to be Earth’s most customer-centric company

for four primary customer sets: consumers, sellers, enterprises, and content creators.”

- Jeffrey P. Bezos

Founder and Chief Executive Officer Amazon.com, Inc.



COGNITIVE COMPUTING

15 © Prof Dr Steve Muylle

https://www.youtube.com/watch?v=vqjndtS8jQU


INTERNET OF THINGS


Smappee

http://www.24eight.com/products.html

http://www.gpsbusinessnews.com/Generali-Telefonica-Launched-Telematics-based-Car-Insurance-Policy-in-Spain_a4082.html

http://www.smappee.com/be_en/


MOBILE


http://newsroom.fb.com/news/2015/03/send-money-to-friends-in-messenger/


SOCIAL MEDIA AS 2-SIDED PLATFORMS

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(Source: Cusumano 2010)


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=6N4riwxsSyuFEM&tbnid=Oi0dU87Q224zwM:&ved=0CAUQjRw&url=http://www.allsaintsnh-pri.manchester.sch.uk/&ei=Ma2IUuePC8bP0QXro4CQCw&bvm=bv.56643336,d.d2k&psig=AFQjCNEc6gCpL4bvwyKfUwDFseukmF2Bow&ust=1384775313300815


SOCIAL MEDIA

19 © Prof Dr Amit Basu - Prof Dr Steve Muylle – Willem Standaert

MARKET SHIFTS

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CUSTOMER BEHAVIOR



New products

Adding information features

Selling information as a product

Selling knowledge as a product

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DIGITIZATION OF PRODUCTS


http://www.google.be/url?sa=i&source=images&cd=&cad=rja&uact=8&docid=Besv_kvy5-yHCM&tbnid=8ONYPOQOMEJ9kM&ved=0CAgQjRw&url=http://www.usatoday.com/story/tech/2014/06/02/apple-carplay-wwdc-ferrari-ff/9880299/&ei=KlYyVJH3HOPm7ga4koGIAw&psig=AFQjCNFFb9XWHtDNOSb8waVYWg9BYP6ENg&ust=1412671402554278


DIGITIZATION OF PRODUCTS

Source: Stefaan De Moor, Service Director, Siemens NV, [email protected]



NET PROMOTER SCORE ®

Source: http://community.netigate.net/


http://community.netigate.net/


TOP NPS® US 2013 - 2014

Source: http://www.insightsfromanalytics.com/blog/bid/324678/Top-10-U-S-Net-Promoter-Scores-NPS-for-2013

Update for 2014 : http://customergauge.com/news/2014-net-promoter-benchmarks/

USAA - Insurance = 80% USAA - Banking = 78% Costco = 78% Apple - Laptop = 76% Dillards = 75% Nordstrom = 75% Apple - iPhone = 70% Amazon = 69% Southwest Airlines = 66% Apple - iPad = 65%


http://www.insightsfromanalytics.com/blog/bid/324678/Top-10-U-S-Net-Promoter-Scores-NPS-for-2013




















http://customergauge.com/news/2014-net-promoter-benchmarks/









NEW BUSINESS MODELS



REDEFINED ECOSYSTEMS


PLAN

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DIGITAL STRATEGY

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Organizational Performance

DIGITAL STRATEGY

Contexts Modes

Processes

KEY TECH TRENDS Analytics - Big Data Cloud Computing

Cognitive Computing Internet of Things

Mobile - Social

KEY MARKET SHIFTS Customer Behavior

Digitization of Products New Business Models Redefined Ecosystems



ORGANIZATIONAL DNA FOR STRATEGIC INNOVATION


Source: Vijay Govindarajan and Chris Trimble, Organizational DNA for Strategic Innovation, California Management Review, Vol. 47, No. 3, pp. 47-76, Spring 2005.


SPIN-OFFS



INNOVATION WITHIN EXISTING BUSINESS MODEL



STRATEGIC EXPERIMENTS



DIGITAL TRANSFORMATION


Transformation A: Reposition the core business, adapting to the altered marketplace

Transformation B: Create a separate, disruptive business to become the next source of growth

“Capabilities exchange”: Establish a new organizational process that allows the two transformation efforts to share resources without intervening with each other’s operations

Source: Gilbert, Clark, Matthew Eyring, Richard N. Foster, Two Routes to Resilience, Harvard Business Review, pp. 3-9, Dec 2012.



http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://be.accent.jobs/nl/job-blog/detail/ontdek-nu-onze-nieuwe-swop-app-versie-1.1&ei=6NCBVfm3OcmR7Abg_YHgDg&bvm=bv.96041959,d.ZGU&psig=AFQjCNFvSn8zc6Y5DCUGAlJvuHCn5pCKpg&ust=1434657380215713



http://www.pinoytutorial.com/lifebytes/eharmony-log-in-helps-people-with-disabilities/


PRIORITIZATION – STRATEGIC BUDGETING ?

Worth Exploring Worth Building

Valu

e

Cost

Unattractive

TAKE AWAY

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Tech firms that try to disrupt established industries attract lots of

buzz, capital and talent.

The incumbent firm response should not be just about MVP, agile

sprints, and user participation.

Incumbent firms can take their digital strategies to the next level by

Closely monitoring and purposefully embedding key shifts in

technologies and markets.

Crafting new business models that forget and/or borrow.

Piloting new ecosystems as platform leaders.

The end game is to drive organizational performance.

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TAKE AWAY

© Amit Basu & Steve Muylle


THANK YOU!

Steve Muylle, PhD

Professor & Partner


Contact

[email protected]

Connect

www.linkedin.com/in/stevemuylle

Documents

TAKING DIGITAL STRATEGY TO THE NEXT LEVEL/media/Corporate/Pdf... · Decide.com (acquired by eBay; shut down Sep 30, 2013) Web site (and mobile app) Price Alerts: We'll notify you