Bob William's presentation from the MBA 50th Anniversary

1. Welcome!
How is strategy and business impacted by a world 'on fire' with change?

2. Who Am I?
 Have taught here for seven years: Marketing, Branding, Leadership,
Strategy, HR Management, Sales Strategy, Entrepreneurial Strategies
 Taught eight years at ASU: all the above and Wisdom of Teams,
Organizational Behavior, MBA Capstone
 Dupont 26 years, 12 businesses, line and staff, Strategist for new product
development; VP of Marketing and External Affairs last six years; SDG&E, VP
of Gov't Affairs and PR; Sharp Healthcare, SVP Marketing
 Started my own company: The Spurgroup, Carefree, AZ.
 Undergrad: Denison and TCU; MBA Wharton
 Very married! Two children, four grandsons

3. My Objective Here
 Make the case that change is increasing at an increasing rate
 Examples of how tech is causing a revolution in how we think about
business strategy
 What I think all this means for jobs, structure and strategy for organizations

4. What the world use to look like
Linear, predictable change
Then came 2008!
Rate of change
Time

5. What the world looks like now!
 Linear becomes exponential- Game on!!!
Exponential
Linear
Disruption

6. So What?
 Organizations will flatten; fewer people doing more; efficiency
 Speed of market response will increase
 Job requirements will elevate, affecting hiring both in number and content
 Leading organizations will require agility; "certainty is dying”, information is
now available to anyone to do anything (almost!)
 Gaps in job qualifications needed and available people to fill those jobs will
become a problem
 Educating the next generation's workforce will continue to change

7. "Did You Know?"
Darwin: "The species at greatest risk is the one that does not change!"
Examples: Kodak, Borders, Blockbuster, Macy's
Source: YouTube

8. AI, Robotics, 3D Printing, Convergence
 Oxford Study- 50% of U.S. jobs will be redefined or eliminated by 2020
 Watson and AI- There are no growth constraints here!
 Convergence is a strategy i.e. AI, robotics, 3D printing, smartphones
 What's next? E.g. IOT
 Find the people!!- South Carolina BMW plant- YouTube
 China in response to how they feel the robotics 'revolution' will impact
them; "It's simple, we will make robots until there's no more people in
factories." Business Week, May 7, 2017
 Cost reduction is the driver for all this!

9. What Industries Are At Risk?
 "60% of all occupations could see 30% or more of their activities
automated." McKinsey, July 2016
 90% of welders, cutters and solderers
 73% of the hospitality and food industry
 53% of retailing
 86% of accounting, auditing, retailing
 43% of the financial sector's time
 36% of healthcare jobs
 So what does that mean for future employment and organizational
thinking?

10. To Prepare for Effective Change Strategies,
We Need to Know Some Terms
 Strategy- Alignment with the external environment (BIG changes here!!)
 Competitive Advantage- Three things need to be considered
 Business Model- the "How" of strategy
 The role of Management- Control and allocation of scarcity
 The role of Marketing- think from the market back
 The role of Leadership- create a path and meaning out of disruption
 Let's consider examples of disruption-------

11. Some things to think about---
 Integrate AI into Finance, Accounting, Business Analytics and Auditing
Curriculum- already begun!
 Strategize on how your functions can make AI become IA (Intellectual
Augmentation)- partnering!
 Recognize that anything that is routine, involves math and other forms of
quantitative data e.g. taxes, may be at risk or could use AI to partner
 Fund continuing education after college
 Increase the accessibility of education, vocational and college e.g. online
 Make geographic expansion, demographic in businesses
 Allow and promote diversity to increase in all occupations

12. How To Structure Your Thinking to
Integrate AI into IA
 Customer Needs- What are the unmet needs? How can AI add value to
the customer experience?
 Technological Advances- think how these advances help sensing and
input; change Platforms; digital help and robots converge
 Data Sources- Internal needs; external needs; new investments you need
 Deconstruct processes- Expose what is routine; ask "What can I automate?”
 Source: McKinsey and BCG

13. Stay open to new ways of doing
things!!
 Steve Jobs
 "Here's to the crazy ones! Because it's the
people who are crazy enough to think they can
change the world that DO!"

14. What Does This Mean For Future
Employment and Strategy
 Educate yourself to deliver value
 AI becomes IA- Ginni Rometty, CEO of IBM
 For Strategy, look for innovative business models and platforms- Amazon
 Uber- 2009, $51 Billion, Airbnb- 2008, 3 million listings, $24 Billion
 Tesla is the 21st Century corporation
 Are you a 21st Century Leader?

15. "Here's to the crazy ones! Because
those who think they can change the
world, usually do!"
 Tesla has no dealerships
 Tesla’s advanced electric technology is simpler
than gas or diesel
 GM creates $1.85 of market value per dollar of
physical assets
 Tesla creates $11
 GM creates $240,000 of market value per
employee
 Tesla creates $2.9 million per employee
 GM is a 20th Century co.; Tesla is a 21st Century co.
 Source: Fortune: Geoff Colvin

16. It’s About Models and
Capital
 Apple makes nothing- FoxConn
 Friction Free economy makes
companies with little or no capital
compete with capital intensive
businesses e.g. Uber
 There is capital, but its human e.g.
patents, brands
 Customer capital e.g. CRM
 New companies are asset light and
idea intensive!
 It’s all happening at an increasing
rate!

17. What We Are Trying To
Do!
PC “Monopoly”
Source: “Zero to One”, Peter Theil

18. Rosalinde Torres
The 21st Century Leader- What does it take to lead in this kind of enviroment?
Source: TED

19. Critical Thinking- We keep telling students
they need this! “But what is it?!”
 The ability to acquire and sift meaningful, relevant data from a wide variety
of sources, focus it on the problem at hand, and optimize decisions and
strategies so that you can provide an organization with advantages over its
competitors. This makes you valuable!
 Take rational risks: DO NOT practice risk avoidance!
 Computers currently are good at processing data.
 Abstract thinking, anticipating competitive moves, predicting what lies
ahead; NOT real good at these things ------YET!
 Don't bet against what computers can do!!

20. Questions, Thoughts?

21. Thanks and Welcome Back!