2. Something happened
at Defrag
• What is Defrag?
– Defrag is the first conference focused solely on the
internet-based tools that transform loads of
information into layers of knowledge and accelerate
the “aha” moment
• Defrag 2012 was held November 14th –
November 15th in Broomfield, Colorado
• The event’s audience was made up of innovators,
entrepreneurs, and investors.
2 November 2012 2
5. Enterprise companies spoke as well.
• Defrag is not an enterprise
show – it is for innovators.
• Showed me that the
enterprise now realizes that
these innovators matter.
5 November 2012 5
8. How do we enable our customers today?
8 November 2012 8
9. It will take more then just the cloud.
Despite hundreds of billions wasted on failed research and
development projects, most market influencers would agree that
enterprise software vendors have produced a dearth of innovation
over the past decade. Vendors often cite UI re-skins, major
functionality additions, integration of acquisitions, technology re-
platforms, and weak attempts at faking cloud computing as
innovations. In fact, let’s call it what it is. Only a handful of enterprise
software vendors have truly innovated. Many enterprise software
vendors are fast followers. Most are innovation laggards living off fat
maintenance revenue streams. Ask any product strategist where they
gain their inspiration and they will all cite advancements in consumer
technology; and not peer enterprise competitors.
Wow…
http://blog.softwareinsider.org/2010/10/04/mondays-musings-how-the-five-consumer-tech-macro-pillars-influence-enterprise-software-innovation/
9 November 2012 9
10. It will take more investment in what are
considered complementing technologies today.
• Ray Wang (CEO of Constellation Research) believes that this
is the key to consumer tech success over the next 10 years
• We need to help the enterprise to become “highly digital”
http://blog.softwareinsider.org/2010/10/04/mondays-musings-how-the-five-consumer-tech-macro-pillars-influence-enterprise-software-innovation/
10 November 2012 10
11. Most enterprise software companies believe
their solution is “highly digital”. It's not enough.
• Yes, an enterprise software company creates solutions to optimize
the customer experience and automate operations
• Some argue that they are not creating highly digital value for
enterprise customers according to this measure –
– From the Harvard Business Review:
“Only nine companies — less than two percent of the Fortune 500 — are what we
would call ‘highly digital.’ To be highly digital, by Russell Reynolds’ definition a
company must pass four tests: it generates a high percentage of revenues
digitally; its leadership (both the CEO and the Board) has deep digital experience;
it does business significantly enabled by digital channels; and it's recognized as
transformational in its industry.”
“Given the increasing influence, even dominance, of social and mobile
technologies, we expect to see a similar evolution take place in more ‘unlikely’
sectors: health care, industrial goods, natural resources.”
*http://www.russellreynolds.com/content/do-you-have-digital-leaders-you-need
11 November 2012 11
12. Ok...confused – why isn't enterprise software
already creating a “highly digital” experience?
Digital Business Game Plan – identifying new value and growth opportunities
Transformational
Value Systems Disruption
Connecting products Creating a new value
and services to create chain
new value
Incremental
TODAY
Value Addition Design
Making legacy Human-centered
business more business solutions
valuable
Market Focus User Focus
http://anaandjelic.typepad.com/i_love_marketing/2012/11/digital-business-gameplan.html
12 November 2012 12
13. Affecting the value chain of enterprise is key to
creating a “highly digital” experience.
Digital Business Game Plan – identifying new value and growth opportunities
Transformational
Value Systems Disruption
Connecting products Creating a new value
and services to create chain
new value
Incremental
The Future
Value Addition Design
Making legacy Human-centered
business more business solutions
valuable
Market Focus User Focus
http://anaandjelic.typepad.com/i_love_marketing/2012/11/digital-business-gameplan.html
13 November 2012 13
14. Let's explore why the Enterprise is only playing
in the Addition Quadrant.
• Enterprise benefit on the Cloud primarily because of time
to market delivery of the applications:
– They can now handle the global problem easier
– They can now offer distributed vendor channel with 24x7
support
– They can now handle digital distribution at the edge
None of these are creating new value chains, they fix old problems.
• The Enterprise may not be ready to move from Addition
Quadrant to the Disruption Quadrant
– The largest Enterprises are ready to be social, cloud, mobile, but
they are still fixing old problems with software today
– The customer voice still isn't loud enough...
14 November 2012 14
15. The numbers on Social in the Fortune 500.
Social Media Surge by the 2012 Fortune 500: Increase Use of Blogs, Facebook, Twitter and More
Corporations by Industry That have a corporate That have a corporate That have a corporate
Blog Twitter account Facebook page
Aerospace and Defense 7% (1/14) 86% (12/14) 71% (10/14)
Chemicals 18% (3/17) 76% (13/17) 53% (9/17)
Commercial Banks 30% (3/20) 75% (15/20) 70% (14/20)
Food Consumer Products 21% (3/14) 93% (13/14) 86% (12/14)
Insurance: Property and
19% (3/16) 81% (13/16) 69% (11/16)
Casualty (Stock)
Motor Vehicles and Parts 19% (3/16) 44% (7/16) 44% (7/16)
Specialty Retailers 25% (7/28) 86% (24/28) 89% (25/28)
Telecommunications 40% (6/15) 80% (12/15) 80% (12/15)
Utilities: Gas and Electric 27% (6/22) 73% (16/22) 50% (11/22)
• These represent the largest presence in the F500
http://www.umassd.edu/cmr/socialmedia/2012fortune500/
15 November 2012 15
16. The numbers don't always tell the truth
• Many of the CIO's that are most social are not in the top
Enterprise companies today
• The "top social CIO's" according to Vala Afshar (CMO and
Chief Customer Officer, Enterasys Networks):
Oliver Bussmann -- SAP, @sapcio
Jason Smylie -- Capriotti's Sandwich Shop, @capriottisjason
Jonathan Reichental -- City of Palo Alto, CA, @Reichental
Peter Yared -- CBS Interactive, @peteryared
Mike Kail -- Netflix, @mdkail
Brenda Cooper -- City of Kirkland, WA, @brendacooper
Ben Grey -- Oak Lawn-Hometown District 123, IL, @bengrey
John Halamka -- Beth Isreal Deaconess, @jhalamka
Susan Bearden -- Holy Trinity Episcopal Academy, @s_bearden
Kelly Walsh -- College of Westchester, @EmergingEdTech
16 November 2012 16
17. What are the right first steps to
developing a Digital Strategy?
• Digital Director or Chief Digital Officer (CIO converted)
– Presents strategic direction, responsible for the budget,
and is accountable for the growth in these areas – mobile,
social, cloud, analytics, user content.
• The development or purchase of better operational
delivery and customer relations applications
– Transformational change is culture, but incrementally
there are technology investments that need to be made
– Leading to new value chains for the customer's customer,
be disruptive to the consumer
17 November 2012 17
18. What are the right first steps to
developing a Digital Strategy?
• Get uncomfortable
– No need to leave the old business metrics behind, but you do need to
be comfortable with losing some control of the data
– Big data requires that you have service / API driven analytics included
in your strategy to engage the freely available customer information
out there today
• Broad Data - not just Big Data
– Knowing what is on the edge of your customer and product is
important - understand who is a brand promoter and who is not
– Decrease the Noise to Signal ratio so you can ensure good data
• Look to pass outside of the box, don't stop at today's boundaries
that are holding back the brand
– Find the complementary path through better broad data
18 November 2012 18
19. Become Highly Digital…
THANK YOU!
Jason Fuller
vizify.com/jason-fuller
linkedin.com/in/jasonbfuller
19 November 2012 19
