Understanding the Nature of Global Business Services in the context of Value Provisioning. 11th June 2016, Kuala Lumpur

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Disrupt, Collapse and Transform Understanding the Nature of Global Business Services in the context of Value Provisioning

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“When the rate of change inside the business is exceeded by the rate of change outside the company, the end is near.”

-Jack Welch

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Top Mega Trends

Urbanization

Smart is the New Green

Social Trends

Connectivity and Convergence

Bricks and Clicks

Innovating to Zero

New Business Models: Value for Many

Beyond BRIC: The Next Game Changers

Future Infrastructure Development

Health, Wellness and Well Being

Future of Mobility

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In the beginning

DECAPITALISE

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Next

STANDARDISE

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Recently

GLOBALISE

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In Reality

COMMODITISE

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In Reality: ‘Show me the Money!’

COMMODITISE

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High-Value Commoditisation

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“Zero Concept” World in 2020

Zero Emissions from Cars

Zero Accidents

Zero Breaches of

Security

Zero Crime Rates

Zero Waste/ Emissions

Complete Recyclability from

Households (Cradle to Cradle Concept)

Zero Defects and Zero

Faults

Carbon Neutral Factories and Retail Stores

Carbon Neutral Cities

Zero Corporate

Debts

Zero Emails

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Top Mega Trends

Urbanization


Social Trends


Bricks and Clicks

Innovating to Zero





Future of Mobility

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Business model innovation: can lead to a significantly higher rate of return

Cumulative Value Creation Last 10 Years

Volume of Innovation Efforts Last 10 Years

Hi

Source: Doblin analysis, Doblin Inc.

Lo

Hi

Lo

Strategy Process Product Delivery

Business model

Partnering Enabling process

Core process

Product performance

Product system

Service Channel Brand Customer experience

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Business model transformation – Video Rental

• Formerly a DVD rental firm

• Needed to change its business model • Offers video on demand • 25% of US Internet traffic • Approximately 25 million subscribers (21.7 million streaming subscribers • Business is built on the public cloud

DVD Rental Business

Video on Demand

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Business model transformation – Search

•‘Perfected’ net search and online-advertising •Garden-walled content •Total value $40 bil incl: Alibaba value $37 bil Yahoo Japan value $8 bil

Net value ($5 bil)

DVD Rental Business

Video on Demand

Yahoo market capital value: 2005 to 2014 Source: wikinvest

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Business model transformation –the REAL Y2K

•Before internet commoditisation, training was about content •Birth of eLearning in 1999 •Skillsoft 2002 •MIT free content 2002 •Khan Academy 2006 •MITx online certification 2011

•Today: •Mass customised learning •Training as profit generator

Born 1989. Reborn 2002

Video on Demand

Frost & Sullivan BOT training programmes are profit generators for our clients

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Business model transformation –Implication on GBS

Before 2015: Save money or GAINSHARE

or DIE

After 2015: GAINSHARE 2.0 or DIE

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Business model transformation –Implication on GBS

DIE?

1. Captives re-insourcing and reshoring

2. HR Firms moving in

4. Service Automation

3. Cost Pressure

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Business model transformation –Global Business Services

•Ye olde GAINSHARE

•Cost saving •Custom formula •Reactive to client •Factor focused •Service centric

•GAINSHARE 2.0 •Business results •Sector formula •Revised cyclically •Knowledge focused •Sector centric

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Business model transformation –Moving Up the Value Chain

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Technology Convergence Industry Convergence Product Convergence

UAV Unmanned Aerial Vehicle

V2V Vehicle to vehicle

Vehicle to Infrastructure

Vehicle to Home V2H

V2I

Business model transformation – Universe of Convergence

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Disrupt, Collapse, Transform via MSC Malaysia

Convergence through MSC Malaysia: IoT, Big Data, 3D printing+++

are priority areas

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Top Mega Trends

Urbanization


Social Trends


Bricks and Clicks

Innovating to Zero





Future of Mobility

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The Next Game Changers in 2025

$2,827 Billion

$5,437 Billion

$1,098 Billion

$811 Billion

$1,167 Billion $2,441

Billion

$653 Billion $6,235

Billion

$38,526 Billion

$6,189 Billion

$772 Billion $323

Billion

$483 Billion

Mexico Brazil

Argentina

Egypt

South Africa

Turkey

Poland

India

China

Russia

Indonesia

Thailand

Vietnam

Philippines

BRIC Nations

Next Game Changers

Note : The figure denotes GDP at market prices. Forecasts to 2025 have been extrapolated based on Nominal GDP growth rate projections .

Source: International Monetary Fund. Oxford Economics, Frost & Sullivan, 2012

$4,816 Billion

BAM PEST TVIP

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BRIC – Implication on GBS Big. Even more beautiful

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Top Mega Trends

Urbanization


Social Trends


Bricks and Clicks

Innovating to Zero





Future of Mobility

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Planet 2020: 2.56 bil are Gen Y. Around 61% from Asia Alone

0.36 0.44

0.14 0.07 0.13

0.33

0.22

0.37

0.63

0.22 0.13 0.26

0.44

0.51

0.33

0.19

0.21

0.11

0.23

0.47 0.57

0.07

0.47

0.12

0.07

0.22

0.09

0.16

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Africa Rest of Asia Latin America, Caribbean and

Oceania

North America Europe India China

Po

pu

lati

on

in

Billio

n

65 Years and Above 35-64 15-34 0-14

1.69

2.56

2.1

1.2

Source: US Census Bureau, 2010 and Department of Economic and Social Affairs of the United Nations

Note: Gen Y : Population between 15 – 34 Years

2010

2020

World Population: Breakdown by Region (Global), 2020

6.83 Billion 7.55 Billion

Around 37% of Gen Y Population Will Live in India and China Alone

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Catering for Gen Y: Complex Values, Beliefs, Interest, Lifestyle

Personalization and Individualization

Techno Savvy and Connected 24 X 7

Civic and Environmentally

Friendly

Demanding and Impatient – “Fast and the Furious”

Personalized Search and News

Social Networking Profiles

Personalized Products

Gaming Gizmos

Smart Phones

Facebook-on-the Move

Microblogs

Eco- Transport

Bag-For-Life (Paper Bags Instead of Plastic)

Paperless Banking

Instant Text Messaging

Instant Chat

Speed Oriented Gaming (Car Racing)

http://images.google.co.uk/imgres?imgurl=http://rlv.zcache.com/personalized_items_button-p145231113297179196t5sj_400.jpg&imgrefurl=http://www.zazzle.ca/personalized_items_button-145231113297179196&usg=__6p_Keuoz8BfGyfpyEBM2VP-tSWc=&h=400&w=400&sz=24&hl=en&start=1&um=1&itbs=1&tbnid=tbTekhHfLHNXiM:&tbnh=124&tbnw=124&prev=/images?q=personalized+items&um=1&hl=en&safe=active&tbs=isch:1

http://images.google.co.uk/imgres?imgurl=http://www.fetchdog.com/images/category/525_bigsub_personalized_items.jpg&imgrefurl=http://www.fetchdog.com/pet-supplies/personalized-dogsupplies/allpersonalized-dogsupplies&usg=__PnKbCVwZ7ukbAtyMV5QbJiYHwwE=&h=260&w=525&sz=35&hl=en&start=4&um=1&itbs=1&tbnid=Cbcz2XAJtFP_NM:&tbnh=65&tbnw=132&prev=/images?q=personalized+items&um=1&hl=en&safe=active&sa=X&tbs=isch:1

http://images.google.co.uk/imgres?imgurl=http://2.bp.blogspot.com/_gwaz9FzRU_0/SnvFMM-QB9I/AAAAAAAAAOk/n6Qvpp2gfNA/s400/video_editing_concept_design_cool_gizmos.jpg&imgrefurl=http://gamesgizmo.blogspot.com/&usg=__XWvjb5j-3dQHJiTQ3TIQBeZNXyk=&h=351&w=400&sz=21&hl=en&start=7&um=1&itbs=1&tbnid=VTDUA80rLqtjsM:&tbnh=109&tbnw=124&prev=/images?q=gizmos+for+youth&um=1&hl=en&safe=active&tbs=isch:1

http://www.doobybrain.com/wp-content/uploads/2007/08/avenue-bicycles.jpg

http://images.google.co.uk/imgres?imgurl=http://shannonstanley.files.wordpress.com/2009/03/brown-paper-bag.jpg&imgrefurl=http://shannonstanley.wordpress.com/&usg=__u8IUCk0fox-GS_ufOtjqqfFRN00=&h=315&w=350&sz=15&hl=en&start=3&itbs=1&tbnid=TcWAy9pvGd8PvM:&tbnh=108&tbnw=120&prev=/images?q=paper+bag&hl=en&safe=active&gbv=2&tbs=isch:1

http://images.google.co.uk/imgres?imgurl=http://images.intomobile.com/wp-content/uploads/2008/01/iphone-multiple-contact-sms-text-message.png&imgrefurl=http://www.technicaljones.com/tech-terms/&usg=__c1j0osc_0FYZUhSO04R3VEW1nIU=&h=651&w=367&sz=198&hl=en&start=13&itbs=1&tbnid=dvs4pUYirhGnbM:&tbnh=138&tbnw=78&prev=/images?q=text+messaging+phones&hl=en&safe=active&gbv=2&tbs=isch:1

http://images.google.co.uk/imgres?imgurl=http://l.yimg.com/jh/content/p/6/789403/need-for-speed-underground-2-20041112002058664_screen001.jpg&imgrefurl=http://videogames.yahoo.com/screenshot.php?cid=1991433527&index=1&usg=__zVkRy3jozAt8c8KbC9VApHV9Gyw=&h=500&w=640&sz=53&hl=en&start=40&um=1&itbs=1&tbnid=RZ18RedxzxUQvM:&tbnh=107&tbnw=137&prev=/images?q=need+for+speed&start=20&um=1&hl=en&safe=active&sa=N&ndsp=20&tbs=isch:1

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Gen Y – Implication on GBS Rapid Innovation

Outside-In: Self-service

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Gen Y – Implication on GBS Rapid Innovation

Inside-Out: Standardising Innovation

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Gen Y – Implication on GBS Benefits of GBS Innovation

Reduce attrition

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Gen Y – Implication on GBS Benefits of GBS Innovation

Sustainable margins

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Gen Y – Implication on GBS Peril of Adopting Innovation

Death by 1,000 papercuts

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Gen Y – Implication on GBS Introducing Rapid Innovation

Inside-Out: Standardising Innovation

New offering every 18 months Major Platform change every 4 years

Top Management: Envision and fund the future Create winners, grow leaders Middle Mgmt: Design, pilot, scale Front Liners: Execute innovation Execute BAU

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Top Mega Trends

Urbanization


Social Trends


Bricks and Clicks

Innovating to Zero





Future of Mobility

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Mega Cities Mega

Regions

Mega Slums Mega

Corridor

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Corridors – Implication on GBS Refinery model: New Talent

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Corridors – Implication on GBS Terengganu. The next Texas?

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Capitalising Mega Trends

Urbanization


Social Trends


Bricks and Clicks

Innovating to Zero





Future of Mobility

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Growth, Innovation and Leadership: via the Growth Acceleration System

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In Summary

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Do Not Be a Victim of Commoditisation

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Who will be the Malaysian GBS GiantS?

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INNOVATE! Disrupt, Collapse, Transform

via the Growth Accelerator System

Be the Godfather of Global Business Services

+6019.3233.024 @cayzer

Understanding the Nature of Global Business Services in the context of Value Provisioning. 11th June 2016, Kuala Lumpur

Economy & Finance

business model innovation

new business models

streaming subscribers

bil dvd rental business

alibaba value

highvalue commoditisation

bil net value

bil yahoo japan value