Disruptive Landscape: Evolution, Governance and Imperatives

Transcription

1 Disruptive Landscape: Evolution, Governance and Imperatives 70 th IVC Conference Digital Jewels Olubayo Adekanmbi 1

2 Agenda Digital Disruption simplified» 2 street level stories Conceptual framework Disruption Landscape Governance imperatives 2

3 Fundamental principle of Digital Disruption 3

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6 Conversation with 2 Lekki axis drivers 53 years Been driving for 30+ years Revenue has declined by 60% Considering relocating to Osun state to explore other trade 27 years Been driving for 3 years Revenue has grown by 2000% within 2 years Now managing professionals cars on Uber network His car network makes a profit of 1.9m per month Running online MBA in parallel 6

7 The basis for value creation is shifting World s largest taxi company World s largest Accommodation provider World s largest Phone companies World s most Valuable retailer Owns NO Owns NO Owns NO Owns NO Taxis Real estate Telco infra Inventory Most popular Media owner World s fastest Growing bank World s largest movie house World s largest software vendors Owns NO Owns NO Owns NO Owns NO Content Actual money Cinemas APPS 7

8 Perpetual disruption theorem : Netflix Incumbent Business Model First digital disruption Second digital disruption Market share Tipping Point Tipping Point Source: PwC and strategy Year 1 Year 5 Year 10 8

9 Macro forces of digital disruption Accelerated demand for more and more: Personalization, convenience, speed, transparency Customer shift Data proliferation and the application of advanced analytics create opportunities Digital engagement New products and business models create new competitors and customer choice VUCA world 9

10 Local case study: PayLater Contextual proposition 10

11 What is the biggest barrier impeding your organization from taking advantage of digital trends? Too many competing priorities Lack of organizational agility Lack of management understanding Lack of an overall strategy Short-term market pressures Insufficient technical skills Security concerns None/no barriers exist Other (please specify) Don t know 26% 13% 13% 12% 9% 8% 6% 5% 5% 2% Source: MIT Sloan management review/deloitte University Press, DUPress.com 11

12 Digital Transformation is not about best technology 84% Of Companies Fail At Digital Transformation (Forbes, 2017) 86% of leaders think digital transformation is necessary within their organization yet only half feel that they fully understand it. Open-minded Customer centric Knowledgeable Customer-atthe-heart Talentattracting Entrepreneurial Collaborative Change readiness Future Commitment 97% of the time, good digital transformation starts with understanding what your audience wants (how are they using digital channels? where are the gaps?) McKinsey, 2017 Digital Transformation is not about technology, it is the about culture, mindset and agility? 12

13 Digital transformations are more likely to succeed when companies focus on four critical dimensions of their businesses Smarter processes Customer intimacy Sources of value Personalised proposition Build Intelligent products Delivery engine Agile at scale Data sciences Customerexperience design Modern IT foundation Data backbone Security Software as a service, or cloud Talent and partnerships Risk management Risk/change management Sustainability 13

14 Governing Disruptions : Three Strategic Points of Control Level 3: CEO Business Model Business Value Delivery Focus on Big Vision Competitive Advantage! Business Agility Level 2: CXO Operating Model Business Operations Focus on People Productivity Effectiveness! Team Agility Level 1: CIO Infrastructure Model Technical Operations Focus on System Performance Efficiency! Platform Agility 14

15 What are you derisking strategy? Most successful digital transformation were very clear about their risk indices and mitigating strategy before starting the journey of digital transformation (EY) Managing compliance in an era of rapid change Cybercrime the new number one priority Data security and privacy challenges Economy Reputational risk Digital Trust 15

16 Organising the enterprise around Digital Disruption is tough 16

17 In conclusion, Disruption must always be customer-first 17

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