Consumer Habits:Changing ICT Innovations

Consumerization and Transformation of ICT and organizations

By Mark Mueller-Eberstein

Mark Mueller-Eberstein CEO of Adgetec Corporation & Bestselling AuthorTwitter: @MarkMEberstein

Technology is fundamentally changing the games and worlds we know – and its getting simpler to use

Consumers are early and broad adopters

People want to be productive and make positive impact and will use the tools that help them

Knowledge and the power to create knowledge quickly is the power of the future

Size doesn’t matter (much)

Speed and agility are increasing and essential

Getting on the same page….

What is “Consumerization”?

When the top executive buys an

iPhone… and expects it to

work at the office, home, away…

What is “Consumerization”?

When employees use Skype to work mobile, collaborate and stay connected

And

are essential components of the

marketing strategies

When employees from many functions and levels engage in a dialog with customers

• company strategy is changing and processes improved through social media (75%)

• combination of ideas and thoughts of geographically separated teams is easier (79%)

• New ideas and innovation generated (71%)

• Increase in productivity (76%)

Productivity increase by 22%

European Leaders using Social Media say:

MillwardBrown, 2012

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When hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake

How cellphones are… …enabling the first banking in Haiti … allowing people to detect

counterfeit drugs in Africa … connecting refugees throughout

the globe

Wireless technology is also going to help in America to control healthcare costs (18 percent of U.S. spending)

When Presidents talk about IT’s impact on societies

President Clinton at CITA 2012

When the CIO understand the security limitation of his iPad

and still won’t give it up

What is “Consumerization”?

When President

Obama insisted on using his

Blackberry

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Engaging customers?

Have a dialog with your customers!

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A $ 10 billion company

Who knows “Rovio”?

Experienced and motivated team (52nd game)

Opportunity Aware

“Good bye distribution channel”…

“Welcome global reach & social networking”

Simplicity in execution and communication

Building a consumer brand:The $10 Billion Lesson from “Angry Birds”

Total Customer focus—Fans are everything

Beyond Apple Chrome, Facebook, Windows Phone, Nokia 100 Million as first target; past 140 Million in

September 2011 Achieved their next goal: 1 Billion Fans Second brand in preparation

Your market is what you define it to be Mobile Game developer or

Global Entertainment company?

ROVIO’s Approach

5. Don’t think big. Think HUGE! Company size doesn’t matter

4. Don’t let teams grow too big or bureaucratic3. If you have a winning formula, don’t sell out

early but build it HUGE2. Be true to the brand; protect the

brand at any cost1. Work with your fans (customers).

Daily. In all functions. On all levels.

Lessons from “Angry Birds”

More knowledge has been created in the last 5 years than in the 5,000 years of

human history before.

And its doubling every 5 years.

Knowledge economy?

The Reuters Guide to Good Information Strategy, 2000

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What computing looked liked...

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And here the computing power surpassing 1980s mainframes….

Good ole Moore’s law

1970 1972 1974 1978 1982 1984 1989 1993 1996 1999 2000 2003 2004 20070

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Transistors

Transistors

Gordon E. Moore, Intel

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The power in your hand in 10 years… looks like this today

“Change is the law of life. And

those who look only to the past or

present are certain to miss the

future.”

John F. Kennedy (1917-63)35th U.S. president

What happened to Mickey Mouse?

Napster and iTunes for music… App Store (and Bit torrent) for

applications… Amazon for

content & computing capabilities

eBay, Taobao,etc. for “things”

At least “the big” can control distribution… or not?

Traffic has exploded in last 10 years

Going to a store becomes time prohibitive

Purchases “online” but…◦ Directly from producer to

consumer◦ Distribution loses value◦ Direct communication key

Tabao, Alibaba, Sina Weibo, …

What is your presence and strategy to engage?

Shopping in Beijing?

7 Billion people 1.4 Billion TVs 1 Billion PCs 5.3 Billion mobile phone devices for more than

3 Billion users Fast adoption:

iPad sold 15 million units in first 7 months and 11 million in the last quarter alone

Android phones captured 40% of smartphone market in 12 months

iPad3 ”new”: 3 million in first days

2012 statistics to keep in mind…

Apple and Samsung make 99% of all profits with Smartphone devices

Worldwide advertising in 2011: $588 B

2011: $70 Billion spent on online advertising 2015: Amount will grow to about $140 Billion

Google$37B

All other

Facebook$3.7B

Business as usual?

The world has changed and will change even faster

Information, collaboration and knowledge sharing across organizational and generational boundaries are essential

ICT is the enabler and the tool (“AGILITY”)

Success is determined by the people and their capabilities to leverage and adopt

◦ Technical challenges are relatively small and options are plenty◦ IT capabilities can be procured relatively easily◦ Organizational and cultural challenges are key obstacles

Flexibility is success factor in the transforming world. Organizations secure opportunities for their future Different devices, places, times, people & business requirements

Your competitors of tomorrow are racing ahead today.

Tomorrow will be very different…

Situation that impacts many People want information Social Networks and friends are trusted more

than government and traditional media 30 million Thais on Facebook

Fundamental changes can happen in weeks, days or even hours

What is “Consumerization of ICCT”?

Information Communication Collaboration Technologies

Consumerization of ICCT is the growing

tendency for new information technology to

emerge first in the consumer market and

then spread into business and government

organizations.

76% of large organization in the US59% of large organization in Germany35% of large organization in Japan

B.Y.O.D.

Security Data loss Compliance Personal data Privacy End-user support

(by IT)

Top Concerns

Recruiting Customer DIALOG Market research

Embrace public social networks

Remember: most interesting internal communication is public within minutes anyway

Knowledge sharing Employee connections Information sharing

They are the first to adopt new phenomena and inventions.  

They constantly generate new innovations.

They use their networks to solve problems efficiently and in an innovative manner, provided their interest is piqued.

They are more community-oriented and international than earlier generations.

Thee expect their leaders to be inspiring, responsible and open.

This generation is of vital importance to companies, organizations and leaders.

NO FEAR: The PlayStation Generation

Digital Cowboys are the super stars of the PlayStation Generation

Born after 1985 (1990 in China)

Grew up with the Internet Are globally connected

and willing to move Access “data”

anywhere and anytime Openly question and test

their leaders

And more and more older people are behaving like them…

Building IT the way Digital Cowboys expect it

…. Makes perfect business sense!

Lower costs & higher productivity

People

Technology

Place

Office space

-15% -50%

Travel

-5% -30%

TCO workplace

+15% -25%

Cost of communication

and collaboration

+10% -30%

Productivity

+10% +40%

Sick Leave

-2% -20%

Attract /retain right people

-5% -15%

*Rotterdam University & Microsoft

Simplicity wins

We don’t want “technology” We want stuff to just work

The tools at work have to be as easy as the tools from home—iPads, smartphones, Facebook, Amazon

IT Infrastructure (of organizations and countries) has to support mobile devices, personal PCs and consumer “apps” & experiences

…. At any place and any time

The impact of consumerization

Capabilities “on Tap” (Cloud / Saas) Digital Cowboys, then Consumers will embrace first

Data “in the cloud” (private or public) Access and networking anywhere with many devices

Powerful devices that sync and “light up” through cloud

Social Media as “authentication” Security and trust through community control Hard to “fake” 500 friends & family And who wants to meet a person with only 10 contacts….?

Location based “experiences” (likely GPS based)Includes networking, data protection policies, advertisement, services,…..

Simplification for end-users and IT management

What’s next? (from consumer to business)

Takes advantage of innovation & technology

Continuously optimizes & re-invents

Is authentic & trustworthy

Has all levels & functions engaged with the frontline

Is “always on & responsive”

Leverages the best resources for a given task or project

Attracts the best people

The “consumerized” organization

Stay in touch Contact

MarkME@adgetec.com Twitter: MarkMEberstein US +1 855.423.4383

THANK YOU!