1. NEW WORLD, NEW RULES
DISRUPT OR BE DISRUPTED
Carlos Dominguez
Cisco Systems
Senior Vice President
Office of the Chairman and CEO
TECH NOWIST

2. “ ”
SELF-PROCLAIMED
TECH NOWIST
Leveraging the Present
Preparing for the Future

3. SPEED AND PACE OF CHANGE: FACT OR FICTION
If Facebook were a country it would be the world’s third largest and
2 times the size of the U.S. population.
1 in 5 couples meet online;
1 in 5 divorces are blamed on Facebook.
More video was uploaded to Youtube in the last 2 months than if
had been airing new content 24/7/365.............. Since 1948
More people return home for their cell phone than their wallet
Carlos Dominguez is usually confused with Elvis...... not the fat one!

4. The Rise of the Age of Networked Intelligence
Age of Networked
Agrarian Age Industrial Age
Intelligence
Printing Press Internet

5. Current Crises

6. A Turning Point in History:
Rebooting Business, Government & Society
The Industrial The Newspaper
Age Corporation Safety
and
The Financial
Security
System
Government Democracy
EDUCATION WORK
Media &
Entertainment
Health Care ENERGY
SCIENCE
Social Justice Regulation
Transportation
The Cities
Don Tapscott - MacroWikinomics

7. Change Challenge #2
FAMILIARITY

8. Watch

10. SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. DISRUPTIVE INNOVATION

11. EXAMPLE

12. Kodak’s introduction of the roll film
in 1888 is an excellent example of
a disruptive innovation.

13. Instead, it brought new performance
attributes to the marketplace.

14. PORTABILITY.

15. SIMPLICITY.

16. AFFORDABILITY.

17. TIMELINE
2000 - Kodak vows to lead in digital
2005 - Kodak ranked #1 in digital camera sales
- Surged 40% to $5.7B
- Film fell 18%

18. WHAT HAPPENED?
Low margins on camera’s / high margin on film
Crushing profit disappointment

19. MY INNOVATION SUGGESTIONS
1. Understand your culture
2. Sustained innovation VS disruptive innovation
3. Need to go underground
4. Executive sponsor
5. Experiment constantly
6. Measure results
7. Leverage entire company
8. leverage suppliers
9. Get input from customers
10. Disruptive innovation quality comes in version 3 or 4

20. SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. DISRUPTIVE INNOVATION
3. CONTRIBUTION REVOLUTION

21. TYPES
The Contribution Revolution - “Co-Creation Era”
New Business Models Emerging - Change Everything
Expertise: Software Code: Creative Expression:
Opinions & Ratings:
Wikipedia Firefox & Linux YouTube, Flickr
Zagats
Social Connections: Specialized Design & Capital Goods:
Facebook, Twitter Connections: Developments: Resource: eBay
Craigslist Threadless, Ryz Skype
Platforms That Allow Users To Contribute

22. Companies Born Into Change - “Crowdsourcing”
“Crowdsourcing“…a focus group on
a grand scale
22

23. Companies Born Into Change - “Crowdsourcing”
Facts:
- Founded 2000
- 50 Employees
- 30+ M Revenues
- Double Digit Growth
- 500,000 Community Members
- 120,000 Designers
- 10,000 orders / day
- 288,753 Likes on Facebook
- 1.6 M Twitter Followers
- 30 Avg. Age Employees
“Crowdsourcing“…a focus group on
a grand scale
23

24. How Many Man
a) 3 Million
Hours Are Invested b) 10 Million
In Wikepedia? c) 30 Million
d) 100 Million

25. COMMON CHARACTERISTICS
PRODUCT LEADERSHIP CUSTOMER SERVICE
NIMBLE
OPER ATIONAL EXCELLENCE
ORGANIZATIONS
HARNESS ASSETS EMPOWERMENT
ACROSS ORGANIZATION &VALUE EMPLOYEES
FOCUS ON INNOVATION
CUSTOMER EXPERIMENT
CONTRIBUTION CONSTANTLY LEVERAGE
& FEEDBACK DIVERSITY
LEVERAGE
CULTURE OF TECHNOLOGY REWARDS
CHANGE IMAGINE THE
FUTURE CREATIVITY

26. “Tech Nowist”
4 STEP PROCESS
Someone who EMBRACES CHANGE,
understands what technology is available,
EXPERIMENTS with it,
LEARNS from the experiments &
4
LEVERAGES it for a competitive advantage

27. IMAGINE THE FUTURE
1. Conduct research - hire / buy
2. Brainstorming sessions - inside and outside
3. Listen, listen, listen
4. Dialogue with cutting edge thinkers
5. Understand technology - what’s available and what’s coming
6. Attend conferences
7. Constantly ask - what if?
8. Be curious
9. Be enthusiastic
10. Take time to think..... quietly

28. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI

29. Experimentation is key:
Prototype a lot, fail often, and fail early

30. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI
6. LEVERAGE TECHNOLOGY

31. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI
6. LEVERAGE TECHNOLOGY
7. IMPLEMENT EFFECTIVE COLLABORATION

32. Hunt for Value Across I.C.E. - Cisco Examples
Cross-unit product innovation
New business creations
INNOVATION
PRODUCT - TELEPRESENCE / WEBEX INTEGRATION
NEW BUSINESS -IPRIZE - CROWDSOURCING
Cross-selling, better coordination
Better customer service by coordination
CUSTOMERS
CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICE
CROSS SELLING - DATA CENTER - PARTNER COMMUNITY
Costs/investments savings by coordinating/sharing
Better decisions by getting input
EFFICIENCY
WEBEX
MORTEN HANSEN - “COLLABORATION”