The Business Value of IT in Today’s Digital World QCON NY 2014 Joe Weinman joeweinman at gmail @joeweinman © 2014 Joe Weinman. All Rights Reserved
The Business Value of IT in Today’s Digital World
QCON NY 2014
Joe Weinman
joeweinman at gmail !@joeweinman
© 2014 Joe Weinman. All Rights Reserved
Competition Today
2@joeweinman Source: Nike.com
Nike FlyKnit Racer
Nike Zoom Kobe Venomenon 4
Nike Basketball Hyperdunk+
Nike AirMax C202 JW
Nike FlyKnit
3@joeweinman Source: Nike.com
Cloud 2020 JW
4@joeweinman Source: Nike.com
Nike Basketball Hyperdunk+
5@joeweinman Source: Nike.com
© 2014 Joe Weinman. All Rights Reserved
Does IT Matter??
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© 2014 Joe Weinman. All Rights Reserved
Of course IT matters
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© 2014 Joe Weinman. All Rights Reserved
Common !
Location-independent
Online
Utility
on-Demand
Quantitative Analysis of Clouds.
Source: Joe Weinman, Cloudonomics
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Range of IT Value
© 2014 Joe Weinman. All Rights Reserved 9@joeweinman
© 2014 Joe Weinman. All Rights Reserved
Value Disciplines* + Digital Technologies = Digital Disciplines
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*Michael Treacy and Fred Wiersema, The Discipline of Market Leaders
Customer Intimacy += Collective Intimacy
Operational Excellence += Information Excellence
Product Leadership += Solution Leadership
Traditional Innovation += Accelerated Innovation
Operational Excellence += Information Excellence
© 2014 Joe Weinman. All Rights Reserved
Information Excellence
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© 2014 Joe Weinman. All Rights Reserved 13@joeweinman
Information Excellence
Source: SAP
Information Excellence
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© 2014 Joe Weinman. All Rights Reserved 15@joeweinman
The Hollywood Organization
Product Leadership +=Solution Leadership
© 2014 Joe Weinman. All Rights Reserved
Range of Product Value
17
Incr
easi
ng D
iffer
entia
tion
• Core Benefit
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Generic
Expected
Augmented
Potential
• Undifferentiated Features
• Digital Intelligence
• Extensibility via API/Ecosystem • Adaptability via ML/AI • User Modifiability • Upgradability
© 2014 Joe Weinman. All Rights Reserved
The Experience Economy
18
Commodities
Diff
eren
tiatio
n
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Source: Joseph Pine & James Gilmore
Profitability
Products
Services
Experiences
Transformations
© 2014 Joe Weinman. All Rights Reserved
Solution Leadership
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© 2014 Joe Weinman. All Rights Reserved
Solution Leadership
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© 2014 Joe Weinman. All Rights Reserved
Solution Leadership
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Product / Family / Ecosystem
Network Cloud Services
Community / Partner Ecosystem
SocialPlatform Platform
© 2014 Joe Weinman. All Rights Reserved
Gamification
22
Source: Steve Sims, Badgeville
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Success
Social
Structure
Smart
Customer Intimacy += Collective Intimacy
© 2014 Joe Weinman. All Rights Reserved
Customer Intimacy
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© 2014 Joe Weinman. All Rights Reserved
From Transactions to IntimacyEn
gage
men
t
Scale
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Transactions
Personalization Mass Personalization
Customer Intimacy Collective Intimacy
© 2014 Joe Weinman. All Rights Reserved
Collective Intimacy
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Source: Netflix
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Collective Intimacy
Traditional Innovation += Accelerated Innovation
© 2014 Joe Weinman. All Rights Reserved
Product Life CycleR
even
ue
Time
Introduction Growth Maturity Decline
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© 2014 Joe Weinman. All Rights Reserved
Industry ProfitIn
dust
ry P
rofit
Time
Introduction Growth Maturity Decline
Lower Development Expenses
Higher ProfitTime Value Of Money
Lower Marketing Costs
Lower Forecast Risk
Higher Market Share
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© 2014 Joe Weinman. All Rights Reserved
Accelerated Innovation
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© 2014 Joe Weinman. All Rights Reserved
Open Innovation
Netflix InnocentiveGoldcorp
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© 2014 Joe Weinman. All Rights Reserved
Accelerated Innovation
• Internal += External!• Closed += Open!• Static += Dynamic!• Salaries += Prizes!• Cash += Reputation!• Waterfall ! Agile!• Plan ! Pivot!• Coding ! Platform
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Putting It All Together
Source: SAP
Putting It All Together
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Information ExcellenceSolution Leadership
Collective Intimacy Accelerated Innovation
© 2014 Joe Weinman. All Rights Reserved
Early in the Journey
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Source: estfacts.com
Thank You
joeweinman at gmail !@joeweinman
© 2014 Joe Weinman. All Rights Reserved