the digital tsunami - digital entrepreneur leadership...

The

Tsunami Digital

DISRUPTION IS UPON US

100X THE INNOVATION OF PAST CYCLES

Source: James McQuivey, Digital Disruption

$

10X The Innovators

1/10th The Cost

100X The Power

MOVING AT LIGHTNING SPEED

Agricultural revolution took

thousands of years

Industrial revolution took hundreds

of years

IT revolution is taking decades

CREATING UNCERTAINTY

80% of the world's 100 largest

companies will not be on the list

in 30 years

CAUSING COLLATERAL DAMAGE

Technology is destroying jobs

faster than it is creating them in

advanced economies.

NON-LINEAR DISRUPTION OF SMS

PARTLY FUELLED BY CENTRAL BANKS

NASDAQ Index Seed Capital

2005

5000

4000

3000

2000

1000

0

400

0

100

200

300

06 07 08 09 10 11 12 13 2014

NA

SD

AQ

Com

posite

Seed

Rounds $

mill

ion

Source: Mattermark, 2015 https://mattermark.com/exploring-the-connection-between-startup-funding-activity-and-u-s-interest-rates/

USA TRAVEL AGENTS

Source: Bureau of Labor Statistics, 2013 http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/30/travel-agents-we-do-exist/

120

2012

40

11 10 09 08 07 06 05 04 03 02 01 1999

60

80

100

00

99,730

50,630 Thousa

nds


CD SHIPMENTS

1000

2015

800

0

600

400

200

10 05 2000 90 1980

$M

illio

n

95 85

Source: McKinsey Analysis, 2014 http://mckinseyonmarketingandsales.com/sites/default/files/pdf/2_21_14_Digital%20disruption.pdf

Now

MUSIC

Streaming Physical

15

2020

10

0

5

19 18 17 16 2015 14 13 12 11 10 09 2008

$B

illio

n

Source: Credit Suisse/Quartz 2014: http://qz.com/284176/why-music-must-embrace-the-latest-wave-of-industry-disruption/

Now

BOOKS

E-Books Print

http://www.statista.com/chart/1159/ebook-sales-to-surpass-printed-book-sales-in-2017/

Now

2008

20

0

US

$B

illio

n

16 2017 2015 14 13 12 11 10 09

5

10

15

Smartphones Digital Cameras

CAMERAS

2009

1000

800

600

400

200

0

Mill

ion

2010 2011 2012 2013

Source: Wall Street Journal, 2013 http://www.wsj.com/articles/SB10001424127887324251504578580263719432252


ADVERTISEMENTS

Newspaper Print Ads Google Adwords

50

2012

40

0

30

20

10

2001 02 03 04 05 06 07 08 09 10 11

$B

illio

n

Source: McKinsey 2014 http://mckinseyonmarketingandsales.com/sites/default/files/pdf/2_21_14_Digital%20disruption.pdf

TRADITIONAL MEDIA

UK

0

AU PRC USA NZ EU HK SG SEA

60

10

20

30

40

50 51

40 37

28 28 27

13 12 7

Traditional Media

Disruption Zone

Internet Advertising as % of Total Advertising 2015

Source: APD Analysis, 2015

NON-LINEAR DISRUPTION OF SMS TELCOS

WhatsApp SMS

Messages s

ent per

day,

bill

ion

30

2015

0

1996

20

10

2010 2005 2000

Source: Portio Research and a16z, 2015

http://www.economist.com/news/business/21647317-messaging-services-are-rapidly-growing-beyond-online-chat-message-medium

Now

Now

HALF THE PLANET WILL BE

CONNECTED BY 2020

4bn Smart

phones

1bn Homes

with WiFi

50bn Connected

devices

100mn Connected

cars

GIANT MARKETS WILL BE CREATED

$600bn Internet of

Everything

$300bn Sharing

Economy

$200bn The

Cloud

$100bn Big

Data

2x the revenues of Apple, Google,

Microsoft, Samsung and IBM by 2020

SMARTPHONES

This Will Change Everything

I do not need a drill

I need a

HOLE in the wall!!

THE SHARING ECONOMY

“The Internet of Everything will

be five to ten times more impactful

in the next decade than the entire

Internet has been to date.”

- John Chambers, Cisco CEO

THE INTERNET OF EVERYTHING

CONNECTED DEVICES

PC, smartphone & tablet market IoT

15

2019E

10

0

5

2013

20

25

2014 2015 2016E 2017E 2018E

Now

Source: BI Intelligence Estimates, 2015 http://www.slideshare.net/bi_intelligence/bii-the-internet-of-everything-2015

$B

illio

n

3-D PRINTING

Source: Xerox 914 copier brochure, 1962 (http://yourmemento.naa.gov.au/2012/10/theres-no-such-thing-as-the-paperless-office-or-is-there/)

Everything ahead

is being disrupted

WINNERS AND LOSERS

-30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70%

Newspapers Restaurants Warehousing

Capital Markets Supermarkets

Retail Automotive

Construction Banking Telecommunications

Pharmaceuticals Real Estate

Financial Services Information Technology

Marketing & Advertising Hospital & Health Care Management Consulting

Medical Devices Utilities Oil & Energy Health, Wellness & Fitness

Computer Games Venture Capital

Think Tanks International Trade & Development

Public Policy E-Learning

Online Publishing Philanthropy

Internet

Renewables & Environment Growing Shrinking

Size of circle reflects jobs gained / lost

Source: http://blog.linkedin.com/2012/03/08/economic-report/

PROF. MICHAEL PORTER:

WHAT BUSINESS AM I IN?

Image source: The Simpsons, Fox Broadcasting Company


IS YOUR MANAGEMENT TEAM READY?


IS YOUR BOARD READY FOR THE FIGHT?

<10% of Non-Executive Directors of the top 20 listed companies

in each of Hong Kong, Singapore, Australia and New Zealand

have deep technology experience

Source: Thomson Reuters and APD research 2015

If we exclude technology and telco boards,

<5% of Non-Executive Directors

have deep technology experience

Source: Thomson Reuters and APD research 2015

THE DIGITAL TSUNAMI SUMMARISED

1. Happening now, happening fast

2. On multiple fronts

3. More urgent than you think

4. Disruptors are now being disrupted

5. Leadership is a deciding factor

Will you

DISRUPT or be

DISRUPTED ?

the digital tsunami - digital entrepreneur leadership...

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