Experience Hult 2019, Masterclass on "CLEVER Strategy for the Fourth Industrial Revolution"

1. CLEVER Strategy for
the 4th Industrial Revolution
A l e s s a n d r o L a n t e r i
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Alessandro
Lanteri
speaker
Professor of Entrepreneurship
Regular Contributor to HBR
Advisor, Trainer to Multinationals,
International Organizations,
Governments, Startups
Keynote & TEDx Speaker https://goo.gl/fAeTck
Author of CLEVER http://bit.ly/CLEVER_book
Professor of
Entrepreneurship
@ A L E S S A N D R O L A N T E R I
https://goo.gl/LDTv9L
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$1million in your
pocket
- exponential technologies
- 4th Industrial Revolution
PART1
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fuel efficiency
+ 45%
storage capacity
x 1.5 million
1980 2019
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2. “The Law of Accelerating
Returns: Price,
performance, and capacity
of information technology
progress at a predictable,
exponential rate.”
Ray Kurzweil
Director of Engineering @ Google
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Exponential Techs
Progress
Time
linear
exponential
source: Kurzweil (2001), Singularity University (2017)
1 bn
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😮
😍
😕
📱
DISRUPTIVE
GROWTH
DECEPTIVE
GROWTH
linear: 1, 2, 3, 4… 30
exponential: 1, 2, 4, 8… 109
which is geometric, really, but
don’t tell Ray!
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Just how bad is this
digital camera?
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3EFFECTS
3 PHASES
source: Diamandis (1996), Singularity University (2017)
The 6 D’s of exponential techs
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3. 9
In 1980, AT&T asked McKinsey to
forecast cell phone penetration in the
U.S. by 2000.
McKinsey’s prediction, 900,000
subscribers, was less than 1% of the
actual figure, 109 Million.
source: The Economist (1999)
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Volatility
Uncertainty
Complexity
Ambiguity
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Biotech
Neurotech
Nanotech
Solar & Sust. Energy
ICT & Mobile
Sensoring
3D Printing
Artificial Intelligence
Robotics
CONVERGENCE
https://youtu.be/SCGV1tNBoeU
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4. “In retrospect, all
revolutions seem
inevitable. Beforehand,
all revolutions seem
impossible.”
Michael McFaul
Former U.S. Ambassador to Russia
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Doing business in the future
P A R T 2
- Industry 4.0
- 6 Strategic Drivers: CLEVER
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“Software is eating the
world. In the future every
company will be a
software company.”
Marc Andreessen
Co-Founder & Partner Andreessen Horowitz
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Industry 4.0
• Industrial scale used to be a durable competitive
advantage. Now scale can be rented (e.g., Foxconn, UPS)
• Industry borders are losing importance because emerging
competitors play by different rules (e.g., Tesla, Uber)
• Cyber-Physical Techs are redefining the relationship
between matter and data, and the speed of change (e.g., 3D
Printing, Robotics)
• Ecosystems not companies are the new unit of competitive
analysis
• Data is the new oil and it is scalable, reinforceable, and
defensible
INDUSTRYTRENDS
source: Wessel (2018), Bughin & van Zeebrock (2017), Kane et al. (2015), Moore (1993)
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5. Tesla is disrupting…
A. cars
B. energy storage
C. trucks
D. all of the above
Airbnb is disrupting…
A. hospitality
B. experiences
C. restaurants
D. all of the above
Quiz on Competition 4.0
Uber is disrupting…
A. chauffeurs and taxis
B. food delivery
C. post and parcels
D. all of the above
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source: Schmiedgen (2013)
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It is estimated that Walmart
collects data equivalent to
500 million filing cabinets’
worth of text
per hour
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Data is non-fungible, hard to price (hence trade)
Supply of data is virtually infinite
Data use is non-rivalrous
Data ≠ Oil
New infrastructure, businesses, politics and
new economics of data
Data is extracted, refined, valued, bought and
sold uniquely
A ‘New’ Oil
source: The Economist (2017)
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6. A group of young people playing a game of
Frisbee.
Computer caption
A group of men playing Frisbee in the park.
(typical) Human caption
source: The Economist (2017)
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source:Google(2016)
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“Almost all of AI’s recent
progress is through one
type, in which some input
data (A) is used to
quickly generate some
simple response (B).”
Andrew Ng
Stanford University
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7. Organizations are using big data to target customer-centric outcomes,
tap into internal data, and build a better information ecosystem.
Research shows that “companies in the top third of their industry in the use of data-driven
decision making are, on average, 5% more productive and 6% more profitable than their
competitors. (McAfee & Brynjolfsson 2012)
Real-time big data isn’t just a process for storing data. It’s about the ability to make
better decisions and take meaningful actions at the right time.
Replace the HiPPO-driven approach!
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“If you went to bed last
night as an industrial
company, you’re going to
wake up today as a
software and analytics
company.”
Jeff Immelt
Former CEO of General Electrics
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4IR: Two challenges
• The world is changing
faster than ever,
companies need to make
strategic decisions faster
and more frequently
• The rules of strategies
have changed, companies
need to make strategic
decisions differently
TAKEAWAY
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How to succeed in
the 4IR?
C O M E T O H U L T !
&
R E A D M Y B O O K !
😉
http://bit.ly/CLEVER_book
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8. What are the
deep drivers of
strategic success?
source: UNDP (2018)
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© Alessandro Lanteri, 2017
systems
exponential
championship decision-making
https://goo.gl/UzU2iG
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Thank you for your attention!
A l e s s a n d r o L a n t e r i
@ A L E S S A N D R O L A N T E R I
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