Eestec digital disruption 22-7-2013
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How Social Networks Are Going to Change the Way we Make Business. Forever. Take the Red Pill NEO.
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Eestec digital disruption 22-7-2013
- 1. ï zan n lio 3 @ idi1 #d Digital Disruption Leonardo Zangrando @lionzan
- 2. ï zan n lio 3 @ idi1 #d Leonardo â Business Strategist â focus on Innovation & Entrepreneurship â MBA, MEng I developed my strategy expertise since 1999 as consultant to global corporations on business strategy and sales & marketing strategy. People Trainer â Zangrando, In the same timeframe I took the opportunity to become involved in hands-on management projects for â bridging innovation strategy and implementation business innovation, acting as interim CTO, COO and CEO. â â shaping the organisation for innovation â providing the tools for innovation â â training and coaching innovators Hands-on, active-learning seminars, workshops and courses on innovation & entrepreneurship for international organisations, in English, Italian and Spanish. â Adaptive Development of Innovation Ideas â Early Market Validation of Innovation Ideas â Digital Disruption â Social Selling Since 2010 I focused on innovation and entrepreneurship, pioneering the convergence of these 2 areas, and now I help companies reshape their innovation activities and structure building on an entrepreneurial model. Business Model Innovation â â I built my people development skills by training, assessing and coaching large B2B sales forces since 2008, on strategic selling and key account management. In the same area I recently developed training programs on digital disruption and social selling. â In 2013 I developed the "Learning From Failure" HR management hack with Gary Hamel's MIX and the CIPD around the theme "Hacking HR for Adaptability Advantage."
- 3. ï zan n lio 3 @ idi1 #d Digital Disruption EESTEC Mobile Summer School University of Trieste 22 July 2013 this presentation under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported CC BY-NC-SA 3.0 Leonardo Zangrando check terms on http://creativecommons.org/licenses/by-nc-sa/3.0/
- 4. photo credit: CC-by-nc-Antonio Lopes ï zan n lio 3 @ idi1 #d
- 5. h is tt no o, N S! P O HO W e! on photo credit: CC-by-nc-Antonio Lopes ï zan n lio 3 @ idi1 #d
- 6. photo credit: CC-by-nc-Gamaliel Espinoza Macedo ï zan n lio 3 @ idi1 #d
- 7. No NEO, not even this one... photo credit: CC-by-nc-Gamaliel Espinoza Macedo ï zan n lio 3 @ idi1 #d
- 8. ï zan n lio 3 @ idi1 #d We'll talk about how Digital is Disrupting the way companies Innovate today
- 9. ï zan n lio 3 @ idi1 #d and yes, NEO, they also have to choose...
- 10. ï zan n lio 3 @ idi1 #d and yes, NEO, they also have to choose... the blissful ignorance of illusion or embracing the painful truth of reality
- 11. ï zan n lio 3 @ idi1 #d and yes, NEO, they also have to choose... the blissful ignorance of illusion or embracing the painful truth of reality
- 12. ï zan n lio 3 @ idi1 #d How do companies innovate?
- 13. ï zan n lio 3 @ idi1 #d the traditional model about who does innovation... internal R&D Labs New Product Dev. Marketing Launch structured
- 14. ï zan n lio 3 @ idi1 #d ...is changing external Open Innovation Licensing Acquisition Community Co-creation internal R&D Labs New Product Dev. Marketing Launch Intra-preneurs structured unstructured
- 15. ï zan n lio 3 @ idi1 #d What do companies innovate?
- 16. ï zan n lio 3 @ idi1 #d also the innovation focus... Value Creation
- 17. ï zan n lio 3 @ idi1 #d ...is expanding Value Creation Value Delivery
- 18. ï zan n lio 3 @ idi1 #d ...is expanding Value Creation Value Delivery Value Capture
- 19. ...is expanding Value Creation Value Proposition ï zan n lio 3 @ idi1 #d Value Delivery Value Capture
- 20. ï zan n lio 3 @ idi1 #d but other challenges are coming
- 21. ï zan n lio 3 @ idi1 #d Who is innovating?
- 22. ï zan n lio 3 @ idi1 #d there are more opportunities... â in the past you needed a large infrastructure to innovate â and few people were in the position to do it Today a digital innovator has more innovation opportunities than an âanalogicâ innovator in the past Larger scope of innovation âobjectsâ Larger number of potential innovators
- 23. ï zan n lio 3 @ idi1 #d there are more opportunities... â in the past you needed a large infrastructure to innovate â and few people were in the position to do it 10x? 100x? 1000x? â today a digital innovator has more innovation opportunities than an âanalogicâ innovator in the past â larger scope of innovation âobjectsâ â larger number of potential innovators
- 24. ï zan n lio 3 @ idi1 #d â ...at a lower cost innovation in the digital era is much cheaper than in the analogic era â the tools for innovation are substantially free â the time required to innovate is substantially shorter 1/10? 1/100? 1/1000? â the cost of innovation is drastically reduced
- 25. ï zan n lio 3 @ idi1 #d ..leading to dramatic results âanalogicâ innovation 10x more innovators digital innovation 1/10 of cost 100x innovation capacity
- 26. âWhy should I innovate when I am the owner of the infrastructure?â photo credit: CC-by melanie_hughes ï zan n lio 3 @ idi1 #d
- 27. âWhy should I innovate when I am the owner of the infrastructure?â photo credit: CC-by melanie_hughes ï zan n lio 3 @ idi1 #d
- 28. ï zan n lio 3 @ idi1 #d photo credit: CC-by-nc Sifter âWhy should I innovate when they are crazy for it?â
- 29. ï zan n lio 3 @ idi1 #d photo credit: CC-by-nc Sifter âWhy should I innovate when they are crazy for it?â
- 30. a repeating story how could Chinese manufacturing industry surpass Western one? photo credit: CC-by-nc dcmaster ï zan n lio 3 @ idi1 #d
- 31. ï zan n lio 3 @ idi1 #d a repeating story how could Chinese manufacturing industry surpass Western one? Cheap labor cost Western labor cost is much higher Replication of existing productive systems and use of existing distribution platforms The cost of developing these systems and platforms has already been covered by Western economy in the past Market already developed The cost for developing the markets had already been covered by Western economy
- 32. ï zan n lio 3 @ idi1 #d a repeating story today we notice a similar situation in the context of digital innovation, but the challenge is not coming from a single country companies unable to adopt the new model will inevitably disappear Cheap labor cost Development tools are free or very cheap Replication of existing productive systems and use of existing distribution platforms Digital platforms already exist Market already developed Digital customers rapidly growing
- 33. ï zan n lio 3 @ idi1 #d good news companies willing to adopt Digital Disruption have less constraints to change than the companies competing against Chinese manufacturing had
- 34. ï zan n lio 3 @ idi1 #d digital readiness assessment how do large companies get ready to manage digital disruption? June 2012 study by Forrester Research 285 global executives invited to participate
- 35. ï zan n lio 3 @ idi1 #d enthusiastic but disenchanted How much do you agree the following statements apply to your company? Level of agreement (5 points scale, top 2 boxes) A) People in our company are excited about the changes that digital will bring to our company A all VP < VP % agree B C) Our company has policies and business practices that will enable us to adapt to the changes that digital will bring to our company C D 0% B) people in our company have the skills needed to adapt to the changes that digital will bring to our company 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% D) Our company will put the right resources (people, budget, time) in place to adapt to the changes that digital will bring to our company Base: 285 global executives invited to participate SOURCE: Forrester Research â Digital Readiness Assessment, June 2012
- 36. ï zan n lio 3 @ idi1 #d large companies doing worse How much do you agree the following statements apply to your company? Level of agreement (5 points scale, top 2 boxes) A) People in our company are excited about the changes that digital will bring to our company A all >1000 empl. <1000 empl. % agree B C D 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B) people in our company have the skills needed to adapt to the changes that digital will bring to our company C) Our company has policies and business practices that will enable us to adapt to the changes that digital will bring to our company D) Our company will put the right resources (people, budget, time) in place to adapt to the changes that digital will bring to our company Base: 285 global executives invited to participate SOURCE: Forrester Research â Digital Readiness Assessment, June 2012
- 37. ï zan n lio 3 @ idi1 #d The Challenge
- 38. ï zan n lio 3 @ idi1 #d how does a digital innovator think? digital innovators grew up in a time when the possibilities of digital are way more than the limitations of the analogic a Digital Innovator sees Possibilities rather than Hurdles
- 39. ï zan n lio 3 @ idi1 #d the challenge if we don't start thinking like that within our companies SOMEONE ELSE WILL DO IT OUTSIDE making us quickly irrelevant
- 40. ï zan n lio 3 @ idi1 #d how do we do it? Culture Process Support the development of a digital innovation culture Put digital innovation behaviors in place Innovate from within starting now Infrastructure
- 41. ï zan n lio 3 @ idi1 #d Analogic Innovation Scarcity Model culture Digital Innovation Abundance Model âHow can we offer customers âHow can we create a new product and sell it successfully?â what they need/desire?â keywords Create â which are our capabilities to build a product that we know how to make? Create Give â the focus is on what we could give to our customers instead of what we can build. Product â which is the market for a product that I know already how to make? Product Customers â the focus is on customers needs rather than on the product itself. Sell â how can we position in the market to acquire customers that we already know who they are? Sell Need â the focus is on satisfying customer's needs, not only with a product but with a total experience, rather than just pushing the product to the customer.
- 42. ï zan n lio 3 @ idi1 #d âWait, I've Heard this Customer Centric Hype for Ages!â What's New?
- 43. ï zan n lio 3 @ idi1 #d Visual History of the Relationship between Company and Customer
- 44. early 20 century âBuild it and they'll buy itâ Build it and they'll buy it focus: Product Create needs, change customers ï zan n lio 3 @ idi1 #d â â th behavior Hey, customers do have a brain! And they talk to each other! photo credit: CC-by-nc-sa-Nokes â
- 45. early 20 century âBuild it and they'll buy itâ Build it and they'll buy it focus: Product Create needs, change customers ï zan n lio 3 @ idi1 #d â â th behavior Hey, customers do have a brain! And they talk to each other! photo credit: CC-by-nc-sa-Nokes â âHappy Customerâ
- 46. late 20 century âCreate needs,change behaviorsâ focus: Customer Consumer th photo credit: CC-by-nc-sa don j schulte @ oxherd arts ï zan n lio 3 @ idi1 #d
- 47. late 20 century âCreate needs,change behaviorsâ focus: Customer Consumer th photo credit: CC-by-nc-sa don j schulte @ oxherd arts ï zan n lio 3 @ idi1 #d âHappy Customerâ
- 48. early 21 century âHey! they have a brain! And they talk to each other!â focus: Customer Person st photo credit: CC-by-sa Gruban ï zan n lio 3 @ idi1 #d
- 49. ï zan n lio 3 @ idi1 #d customers talk to each other thanks to the Digital Revolution how do we treat them now?
- 50. ï zan n lio 3 @ idi1 #d âMore marketing, on the new digital channels!â
- 51. ï zan n lio 3 @ idi1 #d Billboards ïŒ Banners Loyalty cards ïŒ CRM programs Cinema ads ïŒ YouTube pre-rolls Customer service ïŒ Social support Radio spots ïŒ Spotify ads Yellow pages ïŒ Google AdWords Printed ads ïŒ Facebook promoted content PR ïŒ Blogging Brochure ïŒ Newsletter thanks to Nicolas Moerman for sharing this in âScrew Expertsâ on slideshare.net/NicolasMoerman/
- 52. ï zan n lio 3 @ idi1 #d Billboards ïŒ Banners Loyalty cards ïŒ CRM programs Cinema ads ïŒ YouTube pre-rolls Customer service ïŒ Social support Radio spots ïŒ Spotify ads Yellow pages ïŒ Google AdWords Printed ads ïŒ Facebook promoted content PR ïŒ Blogging Brochure ïŒ Newsletter thanks to Nicolas Moerman for sharing this in âScrew Expertsâ on slideshare.net/NicolasMoerman/
- 53. ï zan n lio 3 @ idi1 #d aren't we just using new media in an old way?
- 54. Disclaimer: not implying that we should shoot customers! But sure we did hit (figuratively) sheep and dogs in the past... photo credit: CC-by-nc-sa drakegoodman ï zan n lio 3 @ idi1 #d
- 56. ï zan n lio 3 @ idi1 #d does âpushâ still work nowadays?
- 57. dear, take your medicine!â photo credit: CC-by Boston Public Library ï zan n lio 3 âCome @ idi1 #d âOh mum, it's so good! May I have some more?â
- 58. ï zan n lio 3 @ idi1 #d how can we engage with customers for real?
- 63. ï zan n lio 3 @ idi1 #d can it be the matter of some specialist team?
- 64. ï zan n lio 3 @ idi1 #d ...or is it becoming a company-wide affair?
- 65. ï zan n lio 3 @ idi1 #d ...or is it becoming a company-wide affair?
- 67. ï zan n lio 3 @ idi1 #d Personal Revolutions
- 68. ï zan n lio 3 @ idi1 #d Digitally-Driven Personal Revolutions
- 69. ï zan n lio 3 @ idi1 #d Digitally-Driven Personal Revolutions in Business
- 70. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Productivity 1984 - Personal Computer
- 71. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Productivity 1984 - Personal Computer âwhy should our employees use personal computers? computing is managed by our IT department!â
- 72. computing is not a specialist's matter any more, it has been commoditised and is embedded in almost all life aspects photo credit: CC-by-nc-sa marsmet472 ï zan n lio 3 @ idi1 #d
- 73. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Connectivity 1995 - Internet and E-mail
- 74. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Connectivity 1995 - Internet and E-mail âwhy should our employees have individual emails? they can communicate by telephone and ordinary mail!â
- 75. ï zan n lio 3 @ idi1 #d * just Google âsnowden typewriterâ photo credit: CC-by-nc-nd Dito_13 âRussia's agency responsible for the Kremlin security is buying typewriters, a move reportedly prompted by recent leaks by WikiLeaks and Edward Snowdenâ - bbc.co.uk*
- 76. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Portability 2008 - Smartphones
- 77. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Portability 2008 - Smartphones âwhy should our employees need portable computing? we provide them with the best hardware!â
- 78. further development is coming with BYOD policies, bring your own device, enabled by SaaS photo credit: CC-by jgoge ï zan n lio 3 @ idi1 #d
- 79. ï zan n lio 3 @ idi1 #d this is where you are focusing right now
- 80. ï zan n lio 3 @ idi1 #d and you're right, there's still so much to do!
- 82. ï zan n lio 3 @ idi1 #d what will happen next?
- 83. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Relationship NOW - Social Networking
- 84. ï zan n lio 3 @ idi1 #d digitally-driven personal revolutions Relationship NOW - Social Networking âwhy should our employees use social networks for work? our marketing team is already taking care of it!â
- 85. ï zan n lio 3 @ idi1 #d let's talk about it
- 86. ï zan n lio 3 @ idi1 #d let's talk about it
- 87. ï zan n lio 3 @ idi1 #d â â â customers and social 94% Digital Natives say they do not use emails on a regular basis, they prefer Facebook and other social networks to communicate generation X represents the largest increase in Facebook and other social networks use the fastest growing segments in Facebook are in the Baby Boomers generation SOURCE: The Facebook Era by Clara Shih
- 88. ï zan n lio 3 @ idi1 #d social networks as communication platform
- 89. ï zan n lio 3 @ idi1 #d social networks as communication platform
- 90. ï zan n lio 3 @ idi1 #d widespread adoption across age groups 90% Use of Social Networks is spreading across Age Groups (US data) 80% 3% 65+ 8% 55-64 12% 45-54 14% 35-44 16% 16% 25-34 13% 13% 18-24 11% 10% 10% 12-17 1% 1% 2% 2009 2010 2011 3% 2% 6% 7% 60% population 70% 10% 11% 50% 11% 13% 40% 16% 30% 20% 10% 0% 14% SOURCE: eMarketer, Feb 2011 and World Bank data 0-11
- 91. ï zan n lio 3 @ idi1 #d what do our customers do on social media? â Talk about us and our competition â Research our products and the competitors' â Get their peers' feedback on products â Create a solution before getting to us 57% Customer Due Diligence Begins source: CEB, Customer Purchase research Study, 2011 n=1,399 Customer First Engagement with Sales Purchase
- 92. ï zan n lio 3 @ idi1 #d "People have been complaining about companies forever, but before they did it at the water cooler or at the bar, now they are doing it on-line and spreading their complaints to disparate communities." Bernhard Warner, co-founder of London-based consultancy Social Media Influence.
- 93. ï zan n lio 3 @ idi1 #d remember the Abundance Model âHow can we offer customers what they need/desire?â
- 94. ï zan n lio 3 @ idi1 #d a way to escape commoditization offer customers value that goes beyond the product â transparency â responsiveness â collaboration
- 95. ï zan n lio 3 @ idi1 #d social is where customers are (also in B2B, customers are made of people) Q. Can social be a way to offer additional value to customers through our employees?
- 96. ï zan n lio 3 @ idi1 #d social in the hands of employees? ï â â keeping control of corporate image assuring compliance
- 97. ï zan n lio 3 @ idi1 #d social in the hands of employees? ï â keeping control of corporate image ï assuring compliance â
- 98. ï zan n lio 3 @ idi1 #d social in the hands of employees? ï â keeping control of corporate image ï assuring compliance â â ï â loosing touch with customers loosing opportunities for business
- 99. ï zan n lio 3 @ idi1 #d social in the hands of employees? ï â keeping control of corporate image ï â loosing control of corporate image ï assuring compliance ï loosing control on â â compliance â ï â loosing touch with customers loosing opportunities for business â establishing personal relationship w. cust. ï surfacing opportunities â for business
- 100. ï zan n lio 3 @ idi1 #d social in the hands of employees? ï â keeping control of corporate image ï â loosing control of corporate image ï assuring compliance ï loosing control on â â compliance â ï â loosing touch with customers loosing opportunities for business â establishing personal relationship w. cust. ï surfacing opportunities â for business
- 101. ï zan n lio 3 @ idi1 #d what's the cost of inaction? ( i.e. the two Digital Challenges 1. the digital world is challenging not only because customers are on social networks... â â 2. they talk among them (about us), and they will end up talking to our competitors also because it's a powerful source of innovation... â someone else will do it! )
- 102. ï zan n lio 3 @ idi1 #d and the advantage of action? ( potential of social technologies to improve productivity at different points in the value chain in major sectors of the economy )
- 103. ï zan n lio 3 @ idi1 #d â what does that mean for sales? sales effectiveness - customer facing â â prospecting and first call â knowing the customer inside â dealing with complaints at the root â maintaining a relationship â â establish credibility after sales servicing sales effectiveness - indirect â collaborating with sales team â social proof from existing customers
- 104. ï zan n lio 3 @ idi1 #d Best Practice for Mature Social Sellers 40% best-in-class industry average 35% laggards 34% 30% 30% 29% 26% 28% 26% 25% % respondents 20% 21% 20% 15% 15% 11% 10% 11% 8% 5% 0% Social media helps reps make direct connections with prospects to refine forecasted pipeline internal collaborative social tools benefit team-based selling SOURCE: Aberdeen Group, 2012; base n=182 Regular, active use of posts, tweets, forums by reps contributing to online conversations, to impact eventual buying decisions Our sales team actively âlistensâ to external social content pertaining to customers, accounts and target markets
- 105. ï zan n lio 3 @ idi1 #d what would we need to enable social? enabling employees to be on social... AND assuring compliance and other corporate constraints is there any solution to this puzzle?
- 106. ï zan n lio 3 @ idi1 #d Digital Revolution is Happening Around Us we can make it happen... or will it happen to us? or, to say it with Randy Pausch (The Last Lecture, 9/18/2007) We cannot change the cards we are dealt, just how we play the hand.
- 108. ï zan n lio 3 @ idi1 #d Thank you!
- 109. ï zan n lio 3 @ idi1 #d Leonardo Zangrando Business Innovation - Social Selling â Startup Coach social@lionzan.me +39 349 4627 186 @lionzan