Turning Uncertainty into Opportunity · 2020. 6. 29. · Digital Disruption in Australian Higher Education (2020) Australian market content… Recent and upcoming Harvard Books…

© 2020 INNOSIGHT CONSULTING, LLC AND/OR ITS AFFILIATES 0© 2020 Innosight Consulting, LLC and/or its affiliates

Turning Uncertainty into Opportunity LESSONS FROM AUSTRALIAN BUSINESS CHAMPIONS

With Scott Anthony and Andy ParkerJune 26, 2020

© 2020 INNOSIGHT CONSULTING, LLC AND/OR ITS AFFILIATES 1

Our purpose is to empower forward-thinking organizations to navigate

disruptive change and own the future


The plan: three discussions

1. Big-event disruption and its implications for AustraliaGroup Discussion: What implications are you seeing in your industry? What timeframe are you focused on?

2. How Australia’s Transformation Champions are navigating COVID-19 Group Discussion: What lessons are most applicable to your business?

3. A call to action for all business leadersGroup Discussion: What are you committing to acting upon as a leader?

Scott D. AnthonyInnosight

Senior Partner

Andy ParkerInnosightPartner


Use the chat feature to ask questions or interact

Let’s practice! What’s your favorite innovation?

Raise your hand when you want to contribute

We will use Slido for poll questions

Let’s practice! Tell us about yourself

We will use Innosight’s walk the line tool for group

discussion

Let’s practice: What percent of your company will work

from home >50% of the time in 2021?

www.slido.com #AUSwalktheline.innosight.com/AUS

Password: AUS

http://www.slido.com/

http://walktheline.innosight.com/2030


Big-event disruption and its implications for Australia1



Accelerated Digital Migration Healthcare Transformed Socioeconomic Fragmentation

DislocatedTemporary

Protracted

DURATION

COVID-19’s IMPACT

Online learningContactless

payments

Online retail

Cyber-security

concerns

Tele-health

Universal online access

Onlinesubscription Digital

trans-formation

Healthinfra-

structure

On-demand

fooddelivery

Preventive healthcare

Alternate financingfor small business

Mental health

prioritized

Growing protection-ism andpopulism

Growing immigrant

populations

Global inter-dependency

of supply chains

Gap between rich and

poor

Ride-sharing and room

rentingWorsening

traffic congestion

in cities

Tele-commuting

Catalyzed

3 0 0Trends

5 0 +Trends

T O P

2 0

S T A G E 1

S T A G E 2

S T A G E 3


Which catalyzed meta-trend will have the biggest impact on your organization?

ACCELERATED DIGITAL MIGRATION

HEALTHCARE TRANSFORMED

SOCIOECONOMIC FRAGMENTATION

Go to www.slido.com

Enter the passcode:

AUS


Group Discussion: What implications are you seeing in your industry?


Opportunities to start or scale innovations that ‘reverb’ off the disruption

Financial Group

Companies that make bold moves can significantly outpace competitors

http://en.wikipedia.org/wiki/File:Logo_WaltDisneyCo.svg


PRESERVE THEPRESENT

(NOW)

1

DEVELOP A RAPIDRESPONSE STRATEGY

(6-18 MONTHS)

2

OWN THE FUTURE(5+ YEARS)

3

• “Flatten the economic curve” to ensure operational & financial solvency

• Understand and respond to short-term “job to be done” dislocations

• Act early to maximize future flexibility

• Identify, monitor & influence mid-term outcome-determining assumptions

• Respond to persistent “job to be done” dislocations

• Develop and deploy required capability and culture change

• Align on long-term aspiration and strategic focus areas

• Determine 10-15 long-term critical assumptions

• Determine connecting near-term “curve-bending” activities and integrate into strategic roadmap


https://walktheline.innosight.com/AUS Password: AUS

Allocate 100 ‘gold coins’ across the three strategic imperatives


How Australia’s Transformation Champions are navigating COVID-19 2


Australian firms that achieved exceptional and sustained growth

These firms outperformed their ASX 200 peers from 2014 through 2018 by 7 times

25%avg. annual

TSR

6%avg. annual

TSRvs

209%TSR

Jan’14 to Jan’19

32%TSR

Jan’14 to Jan’19

vs

TransformationChampions ASX 200

TransformationChampions ASX 200

May 2019 Research: Australia’s Transformation Champions


2019 Report: Australia’s Transformation Champions

48% revenue increase

25%of business in refining 65%

down from 106%Stock price appreciation

since 2010

$650MMinvestment

$300MMprofits from loyalty

72.4MMmonthly visits to its website

2.5MMjob applicants

27%revenue from

ancillary business


“This health crisis and economic crisis is a battle on two fronts…and it is going to be waged in an unimaginable and unprecedented way over the next at least six months and potentially beyond that.”Prime Minister, Scott Morrison, March 27th, 2020

Source: The Guardian April 11th, 2020


ASX 200 is underperforming a broad range of indices Global Stock Market Movements – through June 19, 2020Percentage change in local currency

*Zhong Hua – comprises of MSCI China and MSCI Hong Kong Index

-14

-11

-8

-5

-2

1

4

7

ZhongHua*

NordicCountries BRIC

NorthAmerica G7 Nations World Far East Pacific EU ASX 200

YTD Last 12 Months


Transformation builds resilience

• Loyalty revenues beyond airfares• Private funding at favourable terms

• Raise so well received $14.5M refunded• Proven transformation record, e.g.

WebBeds which is >50% revenues

• Share price gains• Innovative virtual features create

stickiness

-21% -40%VS

-67% -37%VS

+16% 4%VS

S&P Global 1200 - AirlinesQantas

Domestic & Global PeersWebjet

Domestic & Global PeersREA Group

Share Price Change over the Last 12 Months

‘Note: Webjet’s peers are Flight Centre, Helloworld Travel, Expedia, Trip.com, Booking Holdings; REA Group’s peers are Domain Holdings, Rightmove PLC, Foxtons Group, Zillow Group’.


Big events create opportunities

• AI algorithms to match jobs to job seekers• Transformation into disruptive online

education

• Transformation into social & digital gaming

• Driven out of the last big event –the GFC

+0% -26%VS

-14% -19%VS

Domestic & Global PeersSEEK

S&P Global 1200 -Hotels Restaurants &

LeisureAristocrat

Note: SEEK’s peers are 51job, HrNetGroup, Page Group, JAC Recruitment and Hays PLC

Share Price Change over the Last 12 Months


Lessons for all Australian businesses

May 2019, we concluded these firms…

Are successful at dual transformation

Demonstrate digital dexterity

Are adept at growth via inorganic means

Smartly structure to break disruption

Make and fund clear strategic choices

One year later, we can see these firms…

Start transformation when times are good

Avoid the pressure to play it safe

Have a record of bold moves during a downturn

Apply a growth mindset and remain curious


Group Discussion: What lessons are most applicable to your business?

Start transformation when times are good

Avoid the pressure to play it safe

Have a record of bold moves during a downturn

Apply a growth mindset and remain curious


A call to action for all business leaders3


Out customers show us the way The data says that we are safe

Innovation is risky Now isn’t the right timeOur people can’t do it


“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.”



PRESENT FORWARD

FUTURE BACK

CLA RIT Y

CA PACI T Y

CHO ICES

CONNECTION

What’s required to “emerge stronger”?

C O U R A G E



DEVELOP A RESILIENT AND RESPONSIVE CULTURE

Systems Habits

Do Enable

Tactics Nudges

CREATE AN ADAPTIVE RAPID-RESPONSE STRATEGY

Present Future

Data Guesses

Specific Broad



To what degree do you agree with this statement (1=not at all, 10=completely)

https://walktheline.innosight.com/AUS Password: AUS


More resources…

https://www.innosight.com/insight/navigating-the-covid-19-disruption/

Navigating the COVID-19 Disruption…

Digital Disruption in Australian Higher Education (2020)

Australian market content…

Recent and upcoming Harvard Books…

Australia’s Transformation

Champions (2019)

Upcoming Webinars…

https://www.inventium.com.au

Dr Amantha Imber and Scott Anthony will answer questions and share their own practical, research-backed strategies for ensuring your organisationthrives during the transition back.

Australia’s Transformation Champions Revisited

(2020)

[email protected]/in/scottdanthony

[email protected]/in/andyparker16

https://www.amazon.com/Eat-Sleep-Innovate-Creativity-Organization-ebook/dp/B0843KJLWG


SwitzerlandBoulevard de Grancy 11006 Lausanne

Singapore8 Eu Tong Sen Street#15-89, The CentralSingapore 059818

New York1166 Ave. of the Americas3rd Floor New York 10036

Boston92 Hayden AvenueLexingtonMA 02421

LondonThe Gridiron Building One Pancras Square N1C 4AG

SELECT ED LO CAT IO NS

[email protected]@InnosightTeam

THANK YOU!

Documents

Turning Uncertainty into Opportunity · 2020. 6. 29. · Digital Disruption in Australian Higher Education (2020) Australian market content… Recent and upcoming Harvard Books…