Into the Digital Abyss - or The New "Vortex" of Business? Creating new companies that define new business models.

INTO THE DIGITAL ABYSSTHOMAS OOSTHUIZEN9 SEPTEMBER 2015

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© 2015 ACCELERATION. ALL RIGHTS RESERVED 2© 2015 ACCELERATION. ALL RIGHTS RESERVED

It has often been said that humans know more about the universe and other planets than about the sea. Humanity has spent fortunes exploring space.

Yet, we still know little about what happens far below the surface of the sea. What we now do know, is that it even re-defines the concept of life itself.

The same can today be said about what is happening in the “air” around us. We are being shaped, every second of every day, by the forces that live in the spaces between us. That is between humans, between humans and machines and between machines. This complex web of interface, data, objects, subjects, life, is now more defined by what happens in the spaces between them than what happens within.

Whilst we can’t see any of these, we experience the vast impact it has upon our lives every minute of every day, whether we are conscious of it or not.

Within the digital realm, the once seemingly impossible is now not only possible, but likely. The only constraint to all this, good or bad, is human imagination.


IN 2015 UBER, THE WORLD’S LARGEST TAXI COMPANY OWNS NO VEHICLES; FACEBOOK, THE WORLDS MOST POPULAR MEDIA OWNER CREATES NO CONTENT; ALIBABA, THE MOST VALUABLE RETAILER HAS NO INVENTORY AND AIRBNB THE WORLD’S LARGEST ACCOMMODATION PROVIDER OWNS NO REAL ESTATE.

HEALTHCAREAre we getting closer and closer to disease control and enabling people to live much longer?

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DATABecoming central in urban management, transport patterns, health, disease control, urban planning, migration.

In fact, the ability of systems to manage huge amounts of data has become a central new competence of the world – if it is able to use it in the right areas.


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FLUIDITYChange is accelerating by the day. This means the new constant is change. For executives, it means decisions will increasingly become intuitive, even if technology enables large amounts of data to be available to reduce decision uncertainty. Nimblessness is therefore mandatory, it is no longer the preserve of small, upstart companies. It also means executives will live with ambiquity.


PERSONALISATIONIt is the time of the individual. Empowered. Set-free. Enabled. Unconstrained. Access to information, resources. Free to express. Free to choose. Free to interface. Free to associate.


CONSUMER CENTRICITYThe consumer is at the centre of his/ her own universe. Whether by design - or as a result of changes in technology - products & services are now far more consumer centric than ever before.


HUMAN EXPRESSIONNever before did humans have the aptitude, opportunities, freedom, channels, to express their individuality, preferences and voice their grievances.


BRANDSAnother paradox in society, is the issue of brands.In some markets, they are more important, in other markets, they are less important. In developed markets it is about integrity – does the brand work well and is it best-in- class; in some emerging markets it is about status / recognition.



WHAT WILL HAPPEN TO? AND THEIR INDUSTRIES?

• Some global banks?

• Most newspapers?

• Some luxury brands?

• Commoditised businesses?

• Some retailers who have not adapted?

• Some fast moving consumer goods companies?

• Many media types?

• Telecommunications companies?

• Logistics companies?

CONNECTED COMMUNITIESWhilst on the one hand, the consumer is more empowered, on the other hand, he/ she is more connected. This connection is less personal and more technological. So it is more informative, less intuitive and less tactile. Networks are wider rather than deeper.


Brands connect through people with issues & with communities; content is mediated yet impact is magnified.


INCOME DISPARITYWith us for a long time to stay?


COLLABORATIONMore business models and consumer value propositions rely upon the collaboration and vertical integration of eco-systems.


ECOSYSTEMSAn inter-related web of owned platforms that collectively deliver the consumer a superior service.


RELATED ECO-SYSTEMSThe very nature of new technology brands like apple, google, xpedia, airbnb, ebay, amazon is that they are connected across a range of vertically integrated eco-systems.


Uber is an integrated system of different products, services & brands that offer the consumer a seamless brand experience. In the process, it reduces the saliency of some brands (banks).


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VERTICALLY INTEGRATED SOLUTIONS TO COMPLEX PROBLEMS

• Tesla, Uber offer consumers solutions designed and vertically integrated from the centre (the consumer offer). - No redundant systems. - Not trying to bring complex

components together. - No layered systems that

requires connection. - Not trying to reconcile systems

from different companies.

• Designed as one integrated whole. Experienced in a seamless manner by consumers.

CONVENIENCE, SAVE TIME, CREATE PLEASURENew technologies have made consumers used to simple solutions to complex problems, easy and fast solutions to mundane problems.


SEEMINGLY SMALL INNOVATION CAN REVOLUTIONIZE INDUSTRIES WHEN WE LOOK FOR NEW SOLUTIONS TO OLD PROBLEMS.

Malcolm Gladwell

Keynote, #INBOUND 14 brought to you by Fractl


HUMAN-CENTRED DESIGNCreating producs & services with the individual in the centre.


MIGRATIONWhen the global shell scenario planning project twenty years ago said migration was one of the most serious issues facing the west, many experts dismissed this. Has it now become one of the key global challenges of today?


CONVERGENCEIndustry boundaries dissapear, others converge, consumer needs are no longer solved within defined boundaries.


RETAIL CONVERGENCEOffline and online behaviour and shopping patterns. Digital technology and bricks & mortar. Making online more visual, experiential & exploratory, making offline more interative & impactful. Making the connection seamless.


EXPERIENCE RETAILRetail outlets where the brand experience is way beyond the display of goods and services. It provides a brand emporium where channels converge to enable a customised brand experience for the individual.


PRICE VERSUS VALUEThe internet is exploding the price: value equation. Mundane, everyday, commoditised products, brands and services are likely to all move online, whilst experiential, customised, high-craft and valuable items are likely to lead to far more visual and experiential retail.


EMERGING MARKETSLarge. Diverse. Growing albeit less. Often turbulent. Varying cultures, even within regions. Lacking infrastructure in many areas. Informal trade. Complex logistics.


ECOLOGYThe future of the world, the preservation of nature, the search for alternative sources of energy, food, transport, architecture…


WEARABLES, CONNECTED HOMESThe internet of things enables connectivity across humans, devices, homes, products, services, utilities and retail.Whatever can store data, can interact. Whatever can interact, can connect.


ACCESS CAPACITYOne of the paradoxes of the current world – even as income disparity grows, is how much access capacity there are in car utilisation, schools and hospitals in some countries, rooms in homes…


CHANNEL EXPLOSIONExplosion. Proliferation. Created fast, may expire fast.


MARKETING COMPLEXITYMarketers have more channels, greater budget proliferation, more marketing suppliers, new staff roles, departmental complexity between marketing and IT, than ever before. And more pressure to talk to the market-of-one.


FLATTENING…Whilst the world may not be flat, company hierarchies, structures, governments, the ability to communicate and create content, the flattening of national boundaries and markets… are becoming more flat. This means humanity, as a whole, is becoming more democratised.


DIGITAL TECHNOLOGY TO MONITOR HUMAN WELL-BEING & CONNECT THEM TO OTHER DIGITALLY ENABLED ENTITIES



CONCLUSIONS: WHAT DOES THIS MEAN FOR US?

• Decide what areas offer the best opportunities. Determine what it will take to dominate those.

• Doing the basics right is only the starting point, it does not make you competitive.

• Creating markets are more important than just following trends.

• Be clear on your ability to effectively compete.

• Resource and focus once decided. Then stick to it.

THANK YOU

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Into the Digital Abyss - or The New "Vortex" of Business? Creating new companies that define new business models.

Marketing