the digital future: key trends, developments and innovation in the cloud

THE DIGITAL FUTURE: KEY TRENDS, DEVELOPMENTS AND INNOVATION IN THE CLOUD

2 CC BY-NC-SA 3.0 Services

Product innovation is really a business innovation problem

The purpose of the 20th Century firm:

The purpose of the 21st Century firm:

To minimize transaction costs and achieve scalable efficiency.

To accelerate capability building and effectively apply that capability to innovation.

=

Creating new value better & faster

This means a Socially Enabled Enterprise operating in a Digital Business Ecosystem.

Tech is primal to success, but firms must transform from Products to Services.


Future of the Market: Commercial Products

Industrial workCreative and knowledge work.

Changed nature of value as a consequence of the serendipity economy.Value will be the product of in the moment, at the place collaborative creation.

Focus on repetition, scale, and efficiency

2.0En

terp

rise

Focus on originality, innovation and efficacy

Smaller more agile enterprises.

An ecosystem to speed up the processes of success selection.

Effective socially enabled enterprise.2-way collaboration between publishers and consumers of content, knowledge and value.

Universal access, availability and on demand performance.

Complex Information Systems.

Lots of parts, known and unknown factors, with varying degrees of understanding.

Evolution of the workforce.

Mentoring people v/s directing people on how to achieve the outcomes we need.

Even among competitors in order to services customers.

Intimate partnerships and relationships.

Management 2.0

Economics 2.0IT

2.0 Capitalism 2.0

Planning & Directing

Staffing & Controlling

Hierarchical &

authoritative

Preparing & Mentoring

Engaging & framing

Broad relationships & crowd sourcing

From:

To:


Future of the Market: Consumer Products

Serendipity EconomyOpportunistic value created in the moment

Resident in Cyberspace.

Any time, any place, any device, any information.

Resident in Realspace.

Consistent, integrated, accessible, secure.

Context is everything.

Where I am who I’m with, time of day, who is nearby, what is nearby, on my calendar, on my to do, what I have with me, what is upcoming….

Every “thing” is a one off.

Individualization to achieve the outcomes they want and need.

Value Chains

Pricing

Capital, Plant &

Staff

Ecosystems

Gain Sharing

Customers

From:

To:

The process of creation is distinct from value realization

Value realization is displaced in time from the act that initiated the value

The measure of value requires external validation

Value is not fixed and cannot be forecasted

Looking at a network in the present cannot anticipate either its potential for value nor any actual value it may produce

Serendipity may enter at any point in the value web, and it may change the configuration of the value web at any time


Products are surrogates for or manifestations of SERVICESjust easier now…

• People don’t buy things• Buy solutions to problems• What is important to the

individual when he or she makes a purchasing decision

• Railroad versus transportation

• Action / regeneration • Commoditization• Close to customer• Simple & lean,

experiment• New products and

services, opportunities• IP depreciates,

Performance is forever

• Strategy for tomorrow• Use and access versus

ownership• DIY• Knowledge & Service; Replicable

& Shareable

Leo McGinneva’s quote about why people buy quarter-inch drill bits: “They don’t want quarter-inch bits. They want quarter-inch holes.”

Not a New Idea

Selling Performance Instead of Goods

• Design the product around the services

• Design the services around the customers (and the ecosystem)

• Product addresses perishability and availability (customer shows up) of services

• You can’t predict the future – services are (can be agile).


With one exception BRAND

Giving the service an identity & image

VisibilityCohesion, integration and trust

PositioningOpportunity and impact

Leveraging

Current Brand Promise

Future Brand Fulfillment

Specificity

Adaptability

Consistency

Innovation

Loyalty Engagement

Human Decision

Cyborg Decision

= how well it works for what I acquired it

= Whether it has the capability to work and demonstrates a measurable benefit when I need it

Were living in the transparent century where all information is accessible only a keystroke away:• Always tell a true story.• Innovate, simplify, be

responsible.• Design counts, a lot.

Service tangibility

Customers

Followers


Getting There – technology does not cause change, it only enables, facilitates and accelerates change that already wants to take place…Current State

Now

key business processes and business lever hierarchy

Detailed requirements and usage patterns

Organizational capabilities

Full “understanding” of existing economic environment with key metrics

Future State

2020?

Delivering on a Services Platform

On demand co-creation of new value by collaborating consumers and suppliers

Transformation

Open Innovation, who can add value to mine, who can I add value to theirs?

sense making model (data proceeds framework) versus categorization model (framework proceeds data)

Forever

Digital business ecosystems


Organic behavior: Organization, Service, Product

Conceptualize & Decide

Observe & Comprehend

Ori

en

t &

Com

mu

nic

ate

Act

in C

ollab

ora

tion

Derived from:Trilogy Model Knowledge

Creation ProcessMethusael B. CebrianCollege of Education

Capitol University, Phillipines

Integration of the

• OODA LoopUS AirForce Colonel John Boyd

• SECI ModelSocialization, Externalization, Combination and InternalizationProfessor Ikujiro Nonaka of Japan Institute of Science &Technology

• Oinas-KukkonenOrganizational Knowledge Creation and Management Framework Harri Oinas-Kukkonen University of Oulu, Finland Stanford University, USA


3 necessary dimensions of success

Innovative

Attitude

Pragmatic

• Interactions & Relationships

• Ressources & Allocations

• Outcomes & Activities

• Questions & Focus

Focus

Innovation• Customer, customer,

customer (and their ecosystem)

• Suppliers, competitors, partners, customers (your ecosystem)

• What creates value, what am I required to do, what do I do best.

• Efficacy, speed, agility

• Business Model -> Service -> Product -> Service -> Business Model

• Open, collaborative, co-creative

Technology

On demand integration w/ others

Standardize

MMI Invisibility

Simplify

Self serving user and product

Automate

Intelligent Availability

The Cloud(s)

Future-ready

DivergentThinking

Convergent

Thank you.

[email protected]

http://www.managementexchange.com/users/jim-stikeleather

Twitter: @stikeyoda

http://www.amazon.com/Business-Innovation-Cloud-Executing-Computing/dp/0929652185