ROTATING TO THE NEW How established leaders can evolve and find a new gear through customer centricity and accelerated innovation

Transcription

1 ROTATING TO THE NEW How established leaders can evolve and find a new gear through customer centricity and accelerated innovation Patrik Malm Innovation and Experience Architect patrik.malm@accenture.com

2 ESTABLISHED COMPANIES ARE UNDER THREAT

3 Revenue ($ Trillion) EBITA ($ Trillion) CORPORATE PERFORMANCE HAVE PASSED ITS PEAK PERIOD $35 $3, CAGR: -0.2% $ CAGR: 1.9% $3,0 $25 $2,5 $20 $2,0 $15 $1,5 $10 $1,0 $5 Revenue 2394 companies, $ Trillion, (overall CAGR: 6.4%) $0,5 EBITA 2394 companies, $ Trillion, (overall CAGR: 7.3%) $0 $0,0 3

4 52% OF FORTUNE 500 SINCE 2000 ARE GONE!

5 HOW CONSUMERS SPEND THEIR MONEY IS CHANGING Global Consumer Goods Copyright 2017 Accenture All rights reserved. 5

6 MARKETPLACES ARE CHANGING THE GAME 43,0% 2,6% 15,8% 24,2% 27,7% 28,8% Retail Overall E-commerce Top-33 Public E-commerce Companies Amazon Amazon Marketplace Amazon Prime Membership* U.S. Retail & E-Commerce Growth, Q Copyright 2017 Accenture All rights reserved. 6

7 200 BALL BEARINGS IN A REGULAR CAR. 18 IN A TESLA

8 STEEL IS FLATTENING OUT AFTER A LONG GROWTH PERIOD Steel demand flat - Est. ~1% growth Automotive electric cars, sharing, weight reduction Construction mega / green / smart cities Competition - Substitute materials AND THE IMPACT OF THE CIRCULAR ECONOMY IS STARTING TO BE VISIBLE** * Accenture research, 2017 ** World Steel Association, April 2017

9 NUMBER OF CARS SOLD IS EXCPECTED TO DECLINE 2019 Current Trends challenge the traditional business and trigger a profit redistribution Traditional Light Vehicle Sales [million units] Global profit pool [bn Euro] vs shared autonomous vehicle could do the work of 7 traditional vehicles Annual growth rate OEMs 2025 Suppliers 2030 Mobility Services Other

10 WHO IS THE BIGGEST SHARK? 1. Faster moving peers 2. Disruptive new entrants (startups or & tech giants) 3. Smart clusters of companies partnering to take on your industry segment? 4. Your own organization s DNA and immune system? MENTI METER QUESTION

11 HOW DID WE END UP HERE?

12 THE IMPACT OF SIX CONVERGING TECHNOLOGIES CHANGED EVERYTHING SOCIAL & COLLABORATION CONNECTIVITY & IOT MOBILITY ONLINE / E-COMMERCE BIG DATA & ANALYTICS CLOUD Mature Still evolving rapidly Copyright 2016 Accenture All rights reserved.

13 today AND THERE IS MORE COMING...ESCALATED PACE OF TECHNOLOGICAL CHANGE Web 2.0, Cloud, Mobile Big Data, Analytics, Visualization IoT and Smart Machine Mainframe System/360 Client- Server and PCs Server-Host SAP founded PC ARPANET Web 1.0 ecommerce Public Internet Amazon.com System/390 Salesforce.com Big Data Sales of PCs peak AWS launched Web 2.0 Public Cloud Mainstream iphone IoT, M2M Self driving car IBM Deep Blue 4.4 Zettabytes of data ? Cognitive Source: Accenture Developed by Accenture Tech Innovation Growth & Strategy team based on Gartner's Hype Cycles.

14 WE CAN NOW MAKE ANYTHING WE CAN IMAGINE

15 SOFTWARE IS EATING THE WORLD Genetic programming as a SW tool

16 1982 KNIGHT RIDER

17 1982 KNIGHT RIDER

18 2013 HER

19 2013 HER

20 AMAZON ECHO IS ONE OF MANY SERVICES WHICH DISRUPT ESTABLISHED VALUE CHAINS Add milk to the shopping list Get me an uber Turn on the lights

21 AND HERE IS ANOTHER ONE PROACTIVE SAFETY You ve only slept 3 hours I will get a ride for you Sleep pattern Your breaking and acceleration patterns in real time Your driving is much more aggressive the last couple of days

22 BOUNDARIES BETWEEN INDUSTRIES ARE BLURRING AND NEW ECOSYSTEMS ARE BEING FORMED CONNECTED LIFESTYLE Sustainable Safe Effortless Free Healthy CONNECTED CITY CONNECTED HOME CONNECTED MOBILITY CONNECTED PLATFORM Enabling technologies

23 USTRIES ALL COMPANIES ARE BLURRING ARE AND TRYING NEW TO ECOSYSTEMS FIND THE RIGHT ARE BEING POSITION IN THIS FORMED NEW ECO SYSTEM CONNECTED LIFESTYLE Sustainable Safe Effortless Free Healthy CONNECTED CITY CONNECTED MOBILITY CONNECTED HOME CONNECTED PLATFORM Enabling technologies

24 BOUNDARIES AND IT WILL BETWEEN DRIVE CHANGE INDUSTRIES THE ARE INDUSTRIAL, BLURRING AND RESOURCES NEW ECOSYSTEMS AND TRANSPORT ARE BEING INDUSTRIES FORMED CONNECTED LIFESTYLE Sustainable Safe Effortless Free Healthy CONNECTED CITY CONNECTED HOME CONNECTED MOBILITY CONNECTED TRANSPORT CONNECTED PLATFORM CONNECTED INDUSTRY & RESOURCES Enabling technologies

25 HOW CAN LARGE ORGANIZATIONS MATCH THE SPEED AND FEROCITY OF THE DIGITAL DISRUPTORS?

26 THE TRANSITION FROM PRODUCTS TO SERVICES IS AT THE CORE OF THIS EVOLUTION Never run out of food! VALUE IN STATIC PRODUCTS VALUE FROM SERVICES What it could be like: Auto replenished Fridge provided by: & - Solving real problems for real people - No upfront product cost. - Free 3 month trial - Buy more pay less

27 AND IS RAISING THE STAKES SKY HIGH FOR NON SOFTWARE COMPANIES Ecosystem & Smart Services Industrial Cloud Platform & Analytics VALUE IN STATIC PRODUCTS VALUE FROM LIVING SERVICES Tire as a service Smart Products Container for Software Hyper-Personalization & New Experiences Human Interaction

28 Youtube video!

29 29 WHAT IT USED TO BE LIKE... Web site team Call Centre System integrator IT department Marketing department Advertising agency

30 Data lake owner Marketing automation lead Conversion optimization specialist HOW IT IS TODAY... Engagement platform team Data Scientist Call Centre Innovation Accelerator Lead Innovation Portfolio Mgmt Service Designer Chief Experience Officer Growth hacking lead DevOps Lead Lean startup Agile business lead Platform services provider IT department Articial Intelligence & Robotics specialist Chatbots Insight and data lead Mobile services and apps Marketing department Scrum master Experience agency Augmented and Mixed reality specialist Product owner Agile dev teams 30

31 ESTABLISHED COMPANIES NEED TO EXTEND BEYOND THEIR CORE BUSINESS VALUE MAINLY IN TANGIBLE PRODUCTS VALUE MAINLY IN INTANGIBLE SERVICES Defend Extend Disrupt

32 Innovation A POWERFUL FRAME TO FOCUS THE ENTIRE BUSINESS, DRIVE CHANGE & PICK UP PACE This is where you make money today (existing products, customers and markets) Use digital to drive experience, engagement and create efficiencies Should work like a well oiled machine Defend Extend This is where you make money tomorrow One foot in the new and one in the old Digital becomes part of the product Becoming a service operator Increased uncertainty and complexity (R&D, Manufacturing, more partners etc. Disrupt Completely new business models, markets and services Likely that it competes with your current core business Proactive disruption can fend of new entrants High degree of uncertainty Time to scale

33 Innovation APPLYING THIS FRAME TO THE METALS INDUSTRY... Upgrade current software At end of life replace with sensor fitted models Collect data in isolated software systems Plan-led operations with end of month reconciliation Mines to Mineral Reserves and allows for mining losses and dilution Defend Extend Move all activities to digital format Upgrade modelling, planning and production software for improved operational visibility Discrete analytics of specific segments of the value chain for diagnostics Plan-led operations with advanced reconciliation Mines to meet contracts and can adjust to unexpected changes in mineralisation Disrupt Integrated platform to connect segments of the mining value chain Data-led operations and continuous reconciliation Live operational management system with dynamic blending and value based insights for next best action decision making 24x7 operations Mines where previously impossible Mines to order, able to adjust to market conditions (e.g. fluctuating commodity prices and energy costs) to optimize returns Time to scale

34 THREE KEY DIMENSIONS WILL DRIVE THE ROTATION TO THE NEW External Focus 1. Transform Customer experience 2. Create new products, services and business models Disrupt Extend Defend 2. Digitize Operations Internal Focus Copyright 2016 Accenture All rights reserved. 34

35 Innovation DEFEND A WELL OILED MACHINE Defend Strengthening with digital Time to scale

36 Innovation EXTENDING BEYOND THE CORE Defend Extend Differentiating with digital Strengthening with digital Time to scale

37 Innovation PROACTIVE DISRUPTION Disrupt Defend Extend Disrupting with digital Differentiating with digital Strengthening with digital Time to scale

38 PROACTIVE DISRUPTION An app for smart handling of rocks, soil and filler mass Supply Demand Transport Sites

39 PROACTIVE DISRUPTION HAVE GIVEN NCC GOOD DIGITAL SELF CONFIDENCE CIO AWARDS GARTNER AWARDS THE CIRCULARS AWARDS

40 HOW TO EVOLVE AND FIND THE NEXT GEAR WHY WHAT HOW

41 GET BOARD AND CxO COMITTMENT Quickly create leadership commitment through immersive and high paced workshops Duration from ½ day to 2 days WHY WHAT HOW

42 SETTING UP FOR SUCCESS Finding the real problems Balanced direction Funding the journey Duration 3-10 weeks WHY WHAT HOW

43 ROADMAP AND BUDGET NEED TO BALANCE THESE FOUR AREAS

44 SET UP, START RUNNING AND BUILD CAPABILITIES ON THE JOB WHY WHAT HOW

45 Accelerator PILOT & SCALE Vision & Strategy WHAT & HOW Accelerator PILOT & SCALE Operating Model HOW

46 DIGITAL FOUNDRY ACCELERATING INNOVATION AT SCALE CENTRAL INNOVATION ENGINE 4 weeks* 6-10 weeks* 10+ weeks* Inputs Ideate Incubate Transform Growth Outputs Insight from strategy&vision work Customer Insight Employee ideas Inspiration & benchmarks Innovation & ideation processes Internal / external initiatives, disruptions and trends Market fit products and services to be adopted as part of corporate growth strategy / digital transformation Value created through new revenues, profits and embedding Digital Culture Is the idea in scope for the Digital Foundry and has has potential for further pursuing? Where is the addressable value, how to prioritize and how much to invest? Has the idea value proposition and vision been crystallized and validated (with customers and business) in order to continue building launchable MVP. Have we been able to build launchable, customer validated MVP that can be integrated and deployed? Have we been able to grow the business from start up mode to mainstream?

47 Accelerating innovation at scale Wärtsilä DIGITAL FOUNDRY WITH FOUR GLOBAL ACCELERATION CENTRES Wärtsilä aims to speed up innovation and co-creation with customers on a range of new business models and solutions Wärtsilä is changing the clock speed of the company by using 4 Digital Acceleration Centres (DAC) to accelerate new business ideas. In addition pop-up DACs will be tested with customers around the globe. 47

48 THANK YOU! Patrik Malm Innovation and Experience Architect