Business Moments: The New Speed of Business - … Moments: The New Speed of Business Kimberly Harris-Ferrante Neville Cannon Hung LeHong 8 –12 November 2015 | Barcelona, Spain …

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Business Moments: The New Speed of Business

Kimberly Harris-Ferrante

Neville Cannon

Hung LeHong

8 – 12 November 2015 | Barcelona, Spain

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Average Expected Percentage of Revenue Attributedas Digital Business Sales Revenue

2020

What proportion

of your organization's total revenue

would you attribute as

digital business sales revenue

today,in 2 years

and in 5 years?

N =17

Base: Business is considered a Digital Business today

N = 57

Base: For profit organizations

2015

18%

2017

25% 41%

Source: Gartner Board of Directors Study 2016, N = 69

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Key Issues

1. What is digital business?

2. What are some examples of digital business moments?

3. What should CIOs and IT leaders do to facilitate digital business

in their organization?

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Key Issues

1. What is digital business?

2. What are some examples of digital business moments?

3. What should CIOs and IT leaders do to facilitate digital business

in their organization?

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What Is Digital Business?

The creation of new business designs

reached by blurring the digital and physical

worlds … via an unprecedented

convergence of people, business and things.

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The Internet of Things Is the Accelerant

Source: Forecast: Internet of Things, Endpoints and Associated Services, Worldwide, 2014

2020 7.3 Billion

Personal Devices

30 Billion Internet

Connected Things

Things Connected

to the Internet Will

Outnumber People

by at Least 5 to 1

20091.6 Billion

Personal Devices

0.9 Billion Internet

Connected Things

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The Journey Onward to Digital Business

Source: Gartner, Digital Business Is Here Now, Get Ready for Digital Business With the Digital Business Development Path

Web

2000

E-Business

2005

Digital

Business

2025

Digital

Marketing

2017

Autonomous

Business

+ SmartMachines

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Key Issues

1. What is digital business?

2. What are some examples of digital business moments?

3. What should CIOs and IT leaders do to facilitate digital business

in their organization?

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What Is a Business Moment?

A transient opportunity that is exploited dynamically

Moments of untapped opportunity and competition that can rapidly change the dynamics across

industries

A bridge between existing and new business models

Business processes

(Support new model)

Existing business model New business model

Business processes

(Support existing model)

Existing products and services New product and services

Business moments

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What Kinds of Business Moments Are (Will Be)in Your Industry?

Elections

Referendums

Payday and Microloan

Commodity Spot Markets

Reverse Auction Carrier Selection

Mass Customization

One-Time Insurance

Pop-Up Events

Flash Sales

Flash Mobs

Algorithmic Trading

Labor StrikeReal-Time

Personalization

Natural Disasters

Customer Moment of Truth

Public Sector

Consumer ProductsMfg. and Industrial

Financial Services

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Emerging Examples

Travel:Keeping up withchanging plans

Virgin Atlantic using BLE beacons to interact with travelers in real time at

London Heathrow.

Agriculture:Precision farming

Monsanto andJohn Deere partner

to build intelligence in farm equipment to

improve yields.

Transportation:Beyond location tracking

FedEx's SenseAware can advise when a shipment falls outside parameters

of temperature, light, pressure, etc.

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Anatomy of a Business Moment

People

Identifies people involved and how they are enabledand impacted as consumers or employees.

Business

Identifies the various

businesses, partners or

agencies involved and how they are

enabled with technology.

Things

Identifies things as actors, data they

generate, how they interact and are

part of the solution with the other two.

Digital/Physical Blurring

Asks questions about how business, government,and people might change as a result.

DigitalPhysical

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Business Moment: Settling an Insurance Catastrophe Claim Before Breakfast

Technician repairsglass

House detectsbroken window

Home security systemfinds no evidence of

criminal action

Claims systemopens CAT claim

Homeowneragrees to repair

Insurance companyreceives FNOL

Homeowner receivesSMS that claim

has been received

Drone capturesdata for archives/

later analysis

Glassrepair

contractorreceives

assignment

Claims systemcloses claim

Adjuster reviews and shifts focus to other, more

complex claims

Thing Business PersonCatalyst

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Business Moment: Wearable Technology Predictsand Prevents a Diabetic Crisis

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Medical staff notified and specialists

sought and alerted.

Ambulance is called.

Hospitals notified and determine bed

availability.

Social care notified and care homes interrogated for

availability.Discharge

analysis takes place.

Ambulance data sent confirming probability that

admission required.

GPS notifies hospital of ambulance ETA.

Care homes determine bed

availability.

Hospital and social care staff notified; begin face-to-face

communication with patient and family.

Technical install team schedules

emergency install.

Home-based sensors begin transmitting data for patient monitoring.

Sensors attached to patient send data to hospital.

Catalyst PersonBusinessThing GovernmentHospital

TransientPoint-to-Point Internet

CommunicationPoint-to-Point

Communication

Digital Civic Moment: Emergency Hospital Admission

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Key Issues

1. What is digital business?

2. What are some examples of digital business moments?

3. What should CIOs and IT leaders do to facilitate digital business

in their organization?

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CIOs Must Lead IT Change

Data and analytics

Bimodal, Insourced for flexibility

Agile and built for speed

Ensuring innovationand differentiation

Insight

People and Organization

Technology

Funding and Budgeting

Architecture

More fluid and ableto fund the unexpected

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Funding and Budgeting: Be Ready to Fund the Unexpected

Venture Funds/Investments:

PepsiCo 10

Mondelez Mobile Futures

Coca-Cola and Spotify

Unilever Foundry

Technology Partnerships:

Diageo/Facebook

Unilever/Sony, Samsung

Nike/Apple

Crowdsourcing:

P&G Connect + Develop

General Mills G-WIN

Heineken Ideas Brewery

Mi Adidas

Silicon Valley Outposts:

Procter & Gamble FutureWorks

@WalmartLabs

Nestle Innovation Outpost

McDonald's

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Traditional boundaries between

industries are blurring

Incumbency is not a guarantee

of success

Value will be in new business

designs involving people,

business, and things

24 months for a plan

Where Is This Headed?

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Action Plan for CIOs and IT Leaders

Monday Morning:

Review the definition of digital business with your business colleagues.

Identify digital business models within your industry and potential models which would be disruptive.

Next 90 Days:

Engage with business leaders to formulate a digital business strategy.

Conduct a digital strategy assessment to determine any IT or business limitations which would

jeopardize your success.

Identify opportunities for your organization to leverage the Internet of Things (IoT).

Build your own business moment using the Gartner methodology.

Next 12 Months:

Build a IT environment ready for speed and agility, including aggressively facing legacy problems

and investing in needed digital technologies.

Implement new capabilities to support digital business including bimodal, new sourcing models,

and new approaches to IT funding.

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Recommended Gartner Research

Agenda Overview for Digital Business, 2015Jorge Lopez, Jim Tully and Others (G00270684)

Get Ready for Digital Business With the Digital Business Development PathJorge Lopez, Patrick Meehan and Others (G00263766)

Digital Businesses Will Compete and Seek Opportunity in the Span of a MomentDon Scheibenreif (G00262735)

Connect Business Moments, Personas and Journey Maps to Boost Customer Experience OutcomesBrian Prentice, Tiffani Bova and Olive Huang (G00274582)

Architect Your Business to Sense, Respond and Create Business MomentsBetsy Burton (G00269234)

For more information, stop by Gartner Research Zone.

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