Digital disruption: Short fuse, big bang? March 13 2013 Jeremy Knight Surviving and thriving in the “new normal” business environment
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Digital disruption:
Short fuse, big bang?
March 13 2013
Jeremy Knight
Surviving and thriving in the “new normal” business environment
What is Digital Disruption?
What is Digital Disruption?
• Analyses how the arrival of new digital technologies will drive change for
business, the economy and society as a whole
• Not just about the level of technology adoption (speeding up communication
across borders or changing the skills workers need); it’s about better meeting
consumer demand (changing the very nature of consumption, competition and how
markets work).
Digital Disruption: What we know…
• Digital Disruption will arise from digital innovation and is
critical to any economic or business plan
• It is as much of a force on the Australian economy as the
lowering of tariffs, deregulation, oil shocks and even the
mining boom
• It isn’t hard to predict; we have modelled its impact in
magnitude and timeframe and shown how organisations will
be impacted
• While we don’t know the colour or form factor of the
technologies we’ll be using in the next few years, we can
predict how they will reshape the business landscape.
Digital Disruption: A brief look back in time…
Mainframe
Le
vel o
f te
ch
no
log
y a
do
pti
on
Time
1950/60’s 1970’s 1980’s 1990’s 2000’s Today
Client Server
PC
Internet
Mobility
Phone/Tablet
“Dark Art” “Revolution” “Immersion”
High
Low
Digital Disruption: Why now? – the “new normal”
TIME
COST
ACCESS
Think it…do it – speed rather than
perfection wins…
Fail fast, fail cheap is the best
form of learning…
Standardisation of access with
global reach…
The customer rather than product is now the
centre of the value proposition…
Digital Disruption: Our research… The recent Digital disruption: Short fuse, big bang? report (Deloitte
2012), examined 18 key Australian industry sectors and compared their
vulnerability to disruption from two perspectives:
•the size of the impact (the “bang”)
•the imminence of change (the “fuse”)
The research considered factors such as:
extent of physical delivery of products and services
propensity of customers to use digital channels
importance of broadband and computing infrastructure in business operations
level of customer and workforce mobility and average age
significance of social media
innovations like cloud computing
how digital innovation might be inhibited by government regulations or other
factors
Organisations that stand to experience significant digital disruption within
the next three years are said to be on a ‘short fuse’. Those that can expect
major change in four to ten years are on a ‘long fuse’.
Digital Disruption: Map
Digital Disruption: Map
65% of the Australian
economy will be
affected within the next
5 years
Digital Disruption: Intensity & Incremental Disruption
Digital Disruption: Intensity & Incremental Disruption
What has
been done in
the last 15
years
What still
needs to be
done in 0-5
years…
Digital Disruption: Intensity & Incremental Disruption Quick response and large-scale action
required…
Levers to Respond: The 3 R’s 1. Recalibrate costs
2. Replenish revenue
3. Reshape strategy
Each organisation will have a different journey but they will need a comprehensive
response to increase their Capacity to Act…
Digital Disruption: The Levers Lever Key focus areas
People • Recruitment
• Training
• Monitoring and automation
Supply Chain • Just-in-time inventory
• Global exchanges and services
• Data analysis to drive customer satisfaction
Overhead • Reinvent IT
• Transition to the cloud
• Digitise core processes
New Segments • Give customers more
• Build communities
• Product Bundling
New
Geographies
• Digital marketing
• Host innovation
• Support new business
New Business
Models
• Mobile reach
• Deliver from the cloud
• Use the “crowd”
Asset Mix • Divest legacy assets
• Anticipate consumer behaviour
• Understand tax implications
Risk
Management
• Watch for inaction
• Secure data
• Examine new and emerging risks
Capacity to Act • Strong leadership
• Highlight strategic importance of “big picture” thinking
• Improve decision making
Levers to Respond: The 3 R’s 1. Recalibrate costs
2. Replenish revenue
3. Reshape strategy
Each organisation will have a different journey but they will need a comprehensive
response to increase their Capacity to Act…
Digital Disruption: Key Impacts
• A “big bang” will impact 65% of the Australian economy,
creating massive changes to customer markets
• Individuals are now at a state of technology immersion
and are constantly expecting organisations to put them at
their core and strive to stimulate their interest…
• Organisations can no longer define the market; it defines
them
• Traditional competitive advantages are no longer as relevant
(location, size, scale of operations)
Digital Disruption: Key Impacts
• Organisations are being judged against global market best
practice not just their historical competitors (Harvey Norman
v eTailers like Kogan)
• There will be winners and losers (eg. Borders book stores v
Amazon…)
• To survive and thrive, we need to focus on increasing the
organisation’s capacity to act - making business easier,
more efficient, innovative and safer for our customers…
Understand our unique problems - how are we
impacted and to what extent? (timing of the “fuse” v
impact of the “bang”)
Formulate the best method of response using a mix
of the “9 levers” – what priorities and to what level of
investment?
Questions?
Jeremy Knight
Deloitte Consulting
+61 3 9671 6089
Related Documents
