Family Run Business and the Digital Economy. Alex Capri, NUS Business School

Transcription

1 Family Run Business and the Digital Economy Alex Capri, NUS Business School

2 Transformative Technologies & The Digital Landscape

3 7 Technologies That Change Everything Artificial Intelligence Big Data & Analytics The Cloud The IoT Robotics 3D Printing Augmented/Virtual Reality

4 Artificial Intelligence & Big Data AI & Data Analytics Real Time Analysis Trend Analysis Predictive Analysis Shareable info Transparency

5 Autonomous & Smart Robots Robotics Increase Efficiency Reduce Costs Reduce Errors Measurable Data Source Connected via IOT

6 The Cloud Attributes Wireless Infinite Connectivity (Network Effect) Assess to Apps/Platforms Connected via IOT

7 The Internet of Things (IoT) The Internet of Everything (IoE) Devices Appliances Machines Computers People

8 The Platform Economy Platforms Portals Connected Resources Strategic Partners Power Multipliers Collaborative Networks

9 Digital Collaboration Networks 4.0 Collaborative Networks Internal External Community Specific The Global Commons

10 Additive Manufacturing (3DP) 3D Printing Redefine Value Chains Asset Light Business Models Disruption to Logistics Norms Localization

11 Augmented & Virtual Reality AR & VR Simulation & Visualization Interactive Design/Production Stakeholder Input Risk Assessment

12 The Forces Disrupting All Businesses

13 The 4 Ds of Disruption Digitization Rise of collaborative networks The Big 7 Technologies Low barriers to entry Transparency Diversification Self organizing markets and entities Scalable and just in time products Micro national enterprises Bespoke production and fabrication Densification Producers nearer to stakeholders Urbanization Circular rather than Linear value chains Next shoring rather than off shoring Decentralization Increased role of Non state actors Increased pressures on localized resources Shorter, localized supply chains Smart networks, fragmented Micro Markets Alex Capri 2016

14 From Products to Platforms Industrial Era Products Value Chains Dominate Supply Chain Supply Side EoS Physical Assets Diminishing Returns Organic & M&A Growth Digital Era Platforms Ecosystems (non-linear) Optimize Ecosystem Demand Side EoS Innovation Capital, Digital Assets Network Effect / D.P. Law Asymmetric Growth

15 Economic Rules: Platform Ecosystems Network Effects Multiple User Groups Generate Value Demand Driven More Users Drive Scale and Value Creation Connected Producers and Consumers Distribution Curve Distribution Power Law NO Diminishing Returns of Linear Value Chains Others Generate Profit in Long Tail of D curve The Long Tail: Why the Future of Business Is Selling Less of More. Chris Anderson Asymmetric Growth and Competition Core Market Demand Passes to Ancillary Markets Transfer is Often Free Different Companies Attack Markets: Different Resources, Angles Alex Capri 2016

16 The Platform Economy

17 Platform Economy New eco structures of business opportunity are being created with benefit for small and medium sized businesses. Gain control Enhance brand reputation Better customer experience Streamlined operations Retention of customers Extend the reach Speedier development of products/services Creative & innovative company culture The way companies drive competitive advantage is not the applications that they run, but the way they can connect, compose and recompose their digital assets and capabilities into new products and services. Ross Mason, founder of MuleSoft

18 The Platform Economy 4 Levels of Connectivity Billions of Users Apps, Sensors AMBIENT COMPUTING Infinite Network Connections Asymmetric Network Effect (IoT, AI, Sensors, Mind/Machine XO, Omni Connectivity) Billions of Users Millions of Apps CLOUD COMPUTING. Quintillion Network Connections High Network Effects (Web, Big Data, Social Media, Mobile Apps) 500+ Million Users 10,000+ Apps DISTRIBUTED COMPUTING Billions of Network Connections Low Network Effects (LAN, Internet, Networked PCs, File Servers) Millions of Users Thousands of Apps CLOSED COMPUTING NO Network connections NO Network Effects (Mainframes, PCs, Mini Computers)

19 1 ST Level Platform Economy 4 Levels AMBIENT COMPUTING Closed System CLOUD COMPUTING Standardized Programming DISTRIBUTED COMPUTING Centralized Data and Storage CLOSED COMPUTING 4 Automation Alex Capri 2016

20 2 nd Level Platform Economy 4 Levels AMBIENT COMPUTING Aggregation of Compatible IT Sharing and Collaboration Networks CLOUD COMPUTING Integration of Productivity Virtual Communities DISTRIBUTED COMPUTING 2 Decentralized Data Capture Decentralized Date Storage CLOSED COMPUTING Decentralized Computing Low Network Effects Alex Capri 2016

21 3 rd Level Platform Economy 4 Levels AMBIENT COMPUTING Omni Channel User Experiences Ecosystem Competition & Collaboration CLOUD COMPUTING 3 Real Time Analytics, Knowledge Flows On Demand Apps DISTRIBUTED COMPUTING Hybrid Digital Business Networks Open Source Infrastructure Closed Computing Global Information Commons High Network Effects

22 4 th Level Platform Economy 4 Levels AMBIENT COMPUTING 4 Dynamic, Fluid Services Shared Perception & Learning CLOUD COMPUTING Ecosystem Driven Instantly Configurable Apps Real Time Feed back Loops DISTRIBUTED COMPUTING Fully Digital Business Models Time and Scale Augmentation CLOSED COMPUTING Digital Institutions and Communities Highly Asymmetric Network 2 2

23 The Digital Ecosystem Crowdsourcing Blog Responsive Architecture AdWords marketing SEARCH WEB Intranets Re-targeting Landing pages Forums SEO CONTENT MARKETING DIGITAL STRATEGY E-Commerce Analytics Photography Videos SOCIAL MEDIA Facebook text Twitter Podcasts Source: Big Blue Digital Blog posts campaign Articles YouTube LinkedIn Snapchat Instagram

24 Utilizing the platforms The platform economy is a big opportunity for small business owners.

25 Platforms are powering the Next Generation of Small Business 1. Finding customer leads The old way Yellow pages, newspaper The NEW way Thumbtack 2. Selling products online The old way Craigslist, ebay The NEW way Shopify Source:

26 Platforms are powering the Next Generation of Small Business 3. Payment processing The old way Checks, money order The NEW way Square, Stripe 4. Bookkeeping & Accounting The old way Local accountant The NEW way Bench Source:

27 Platforms are powering the Next Generation of Small Business 5. Hiring temporary staff The old way Local staffing firm The NEW way Wonolo 6. Finding full time staff The old way Job boards, recruitment agencies The NEW way Hired, ZipRecruiter Source:

28 Platforms are powering the Next Generation of Small Business 7. Payroll and benefits The old way Paychex, ADP The NEW way Gusto 8. Legal support The old way Local attorney The NEW way UpCounsel Source:

29 Platforms are powering the Next Generation of Small Business 9. Business advice The old way Local consultant, friends, family, relatives The NEW way HourlyNerd 10. Small business finance The old way Local bank (no guarantee) The NEW way Kabbage Source:

30 Success story: the Trapp Family Lodge How the Sound of Music family used social media to grow their business When luxury travel took a hit in the midst of the recession, Vermont's Trapp Family Lodge rethought their digital and social marketing strategy, capitalized on the renowned family name, and continued to reap the benefits. Targeted Facebook Ads Use of blog, Twitter and Facebook Shared personal stories through e Newsletters and blog posts Hired a full time social media manager At first the family was not sure if social media was the best method to reach people, as we feared it would be too cold and impersonal, but it has enabled us to draw more people into our world. Sam Von Trapp Source:

31 Contingent Workforces

32 Thank You! Alex Capri NUS Business School