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It’sOurs.
Insights from Kiwibank’s digital business journeyDigital Disruption Summit, August 17 2016, Auckland
• Digital disruption moving into new industries• Why this is happening – the five forces driving an internet step-
change• What this means for organisations• How Kiwibank is responding
[email protected] @peterfd
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“Kiwis making Kiwis better off”
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This disruption thing…
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Some of the digitally disrupted
Home Entertainment
Book Retailing
Accommodation
Classified Advertising
Taxis
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Financial services is next
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Fintech investment soaring
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Company lifespans being reduced
Reduced from 61 years in 1951, to estimated 13 years in 2025
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Exponential organisations
Snapchat and Occulus Rift hit billion dollar cap in 2 years versus 20 years for typical Fortune 500 companies
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Perils of being on the wrong track
from here…
…to hereHow do organisations move
Traditional organisations can’t keep up with competitors using business, and operating, models on exponential trajectory
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Internet undergoing step-change
Information
Content
Assets
Value
Assets
Value
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IoT
AI
APIs
BlockchainComputing power
Continuous exponential growth
APIs and IoT creating true Big Data and
driving AI
Internet evolves from information to value &
asset transfer
Five transformational forcesNOW FUTURE
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1. Computing power growth
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2. APIs enabling platform businesses
Companies like Facebook, Twitter and Xero used APIs to turn killer apps from products into platforms
.
Graph by ProgrammableWeb
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Generating value without inventory
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Taking openness to new levels
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3. Artificial Intelligence
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4. Internet of Things
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5. Blockchain – disrupting trust
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How value transfer works now
A
B
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How it works with BlockchainB
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Arcade City – disrupting Uber
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Slock.it: Bridging physical and virtual
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Instantaneous trading
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What if…?• FX was as instantaneous and free as a “cross-border email”
• 70% of small landowners globally are protected from unscrupulous dictators
• Half a trillion dollars in remittance fees instead of going in transaction fees went to people who needed the money
• Musicians were automatically and directly paid as soon as their music was downloaded
• The provenance of any produce or product was instantly and immutably trackable
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How does an organisation cope?
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Act like a genius
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still
retain the ability to function.” F Scott Fitzgerald
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Being an ambidextrous organisation
Horizon model from The Alchemy of Growth, Baghai, Coley and White, 2000
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1 “Optimise
the business”
2 “Evolve new capabilities”
3“Invent future
business”
Growth
Horizon 1 Known
Horizon 2 Partially known
Horizon 3 Unknown
Time to
impact
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Known vs unknown
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Certainty
UncertaintyGrowt
h
Time to
impact
Horizon 1 Known
Horizon 2 Partially known
Horizon 3 Unknown
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It never feels like a perfect time…
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…to jump into the unknown
“Do not wait until the conditions are perfectto begin. Beginning makes the conditions perfect.” Alan Cohen
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So what are we doing?
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Going back to start-up roots
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Going back to start-up roots
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Embracing Fintech
https://www.youtube.com/watch?v=gzhvNujfcGA
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Evolving joining a bank
Pic of selfie prototype
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Take outs1. World is changing at an exponential rate – more change in next 30 years
than in past 100
2. We believe New Zealand is ideally placed to leverage these global changes
3. Not about a digital strategy – but a strategy for a digital world
4. Being ambidextrous the new normal for organisations
5. Use constraints to maximum advantage
6. You can’t plan your way to or wait for the perfect place
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Thank you.
@peterfd