Digital Leaders Blog

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An interesting Infographic has just been published by MIT Sloan Management Review and Deloitte based on their 2015 report entitled Strategy, Not Technology, Drives Digital Transformation.

The Infographic illustrates how rethinking strategy, culture and leadership can help organizations transform digitally.  Please click here to enlarge the image.

The full report, with detailed Executive Summary, can be downloaded…

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The Digital Vortex

I have just completed a second reading of the recent report entitled 'Digital Vortex: How Digital Disruption is Redefining Industries' mentioned in our last post.

This should be considered required reading for anyone wishing to develop a deeper insight into the coming digital tsunami.

The Executive Summary from the report is reprinted below.  You can access the full report here. No registration is required.

  • Digital disruption has the potential to overturn incumbents and reshape markets faster than perhaps any force in history.
  • The Global Center for Digital Business Transformation (DBT Center), an IMD and Cisco initiative, is dedicated to…
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Digital disruption could overturn incumbents and reshape markets faster than any force in history, according to a new report by the Global Center for Digital Business Transformation (DBT Center), an initiative between Cisco and the International Institute of Management Development (IMD) in Lausanne, Switzerland.

Based on a survey of 941 business leaders in 12 industries and 13 countries (including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, United Kingdom, and the United States), the report concluded that digital disruption will displace approximately 40 percent of industry incumbents within the next five years. Despite this, 45 percent of companies do not believe digital disruption merits board-level attention.

Most of the…

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The Internet of Living Things

A recent article on the O'Reilly Radar site, by Hagen Finley, examined the new opportunities being created for wellness management by The Internet of Living Things

Using two illustrative examples of aero-engines and tyres, the article begins by presenting a concise summary of the Internet of Things and its potential impact on core business models. According to the author, real-time reporting from embedded sensors not only changes the way machines function, it changes the way they are sold and operated.

For example, aero-engine manufactures such as GE and Rolls Royce are now renting rather than…

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Digital Disruption News No.1


The first in a regular series of posts keeping you up-to-date with what’s happening in the world of digital disruption.

Please right click links to open in a new tab.

The Swedish house designed by 2m people. This is what is called 'cool'. Big data in design - http://buff.ly/1GJqta9  

Soon, the idea of receiving medical treatment exclusively at a doctor’s office or hospital will seem quaint - http://buff.ly/1dhyoRc  

What it takes to build your Digital Quotient | interesting…

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In a recent interview with Upstart Business Journal, Ray Wang argues that since 2000, 52 percent of the names on the Fortune 500 list are gone, either as a result of mergers, acquisitions or bankruptcies. The changes are the result of digital business models creating disruption in the marketplace. While about 5 percent of organizations are leaders in proactively transforming their business models to adapt to the latest technologies (Microsoft, Oracle, Apple, Amazon, Facebook and Uber among them), 30 percent remain laggards who don’t want to change.

Wang states that Digital Darwinism is unkind to those who wait. Anybody, even the smallest startup can overtake a large Fortune 500 company because it’s the non-traditional competitors that are creating new customers and new customer…

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One of the most frequently asked questions we receive during workshops is what impact will the digital revolution have on employment? Will we see large scale employment loses, across a wide spectrum of industries, due to digital disruption?

Author Martin Ford thinks so.

In his book with the above title, the author argues that, from an employment perspective, the current digital revolution will be quite different from the previous industrial revolution. In the latter, some jobs were eliminated, but these were more than compensated for by the employment creating effects of new technologies. The digital revolution will be quite different.

The review of the book on Amazon contains the following two hard hitting paragraphs.

'As technology continues to accelerate and…

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A fascinating article on the way in which Airbnb uses Big Data and machine learning to guide 'hosts' on pricing and how to increase bookings. What they don’t teach you on Hospitality Masterclasses :-)

http://www.forbes.com/sites/ellenhuet/2015/06/05/how-airbnb-uses-big-data-and-machine-learning-to-guide-hosts-to-the-perfect-price/

As usual, all comments and feedback are very welcome.

Take care.

Jim…

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According to new research by Harvard Business Review (HBR) Analytic Services, there is a strong positive relationship between digital leadership and business performance. Successful companies have a CIO taking a leadership stance in digital transformation.

The top seven strategies of CIOs within companies that HBR considers “Digital Leaders” - organizations strong in both digital leadership and management - are shown in the infographic below.

A key finding is the importance of digital learning. Digital Leaders place considerable emphasis on raising the digital skills bar having CIOs who are educating and empowering line of business leaders in digital knowledge.

To download the full report,…

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This Open Letter on the Digital Economy, from MIT, absolutely nails it in my view.

Although based on a US perspective, the call for a three-pronged effort covering changes in public policy, new organisational models and more research into the economic and social implications of the digital revolution is of equal relevance to many other countries.

Please take the time to read the Open Letter, following the links as appropriate.

As usual, all comments and feedback are very welcome.

MIT Open Letter on the Digital Economy

Jim…

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AMBA Refresher Day

We are delighted to be speaking at the AMBA Refresher Day in Edinburgh next Wednesday 10th June.

Participants at the event will be mainly Alumni members and non members of the Association of MBAs with the aim of the day being to 'go back to school' - bringing delegates up-to-speed with new topics being covered by MBA programmes in today's fast moving business environment. Not surprisingly the topic for our session is 'Digital Darwinism and Digital Dinosaurs'.  It will be interesting to see how many of the audience, having graduated three or more years ago, see themselves as being 'Future Digital Leaders'.

More details of the event can be found…

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Technologies like 3-D printing, robotics, advanced motion controls, and new methods for continuous manufacturing hold great potential for improving how companies design and build products to better serve customers. But if the past is any indicator, many established firms will be slow to adjust because of a formidable obstacle: legacy assets and capabilities that they are reluctant to abandon.

The question of why older incumbent firms are slow to adopt new technologies even when the economic or strategic benefits are clear is discussed in this interesting article on the Harvard Business School blog - …

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According to a new market research report by MarketsandMarkets, the Global Digital Transformation Market is expected to grow from $150.70 Billion in 2015 to $369.22 Billion by 2020, a Compound Annual Growth Rate (CAGR) of 19.6%. Key technologies include mobility, analytics, social media, and cloud computing.

Major vendors in the Digital Transformation Market include Apple, IBM Corporation, Oracle Corporation, EMC Corporation, SAP AG, Adobe Systems, CA Technologies, Hewlett Packard (HP), Google, Microsoft Corporation and others.

A good summary can be found at …

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Without Big Insight, Big Data Is Useless

Big Data is often heralded as a transformative force that will usher in a new era of data-driven decision making. However, many enterprises are finding themselves drowning in data, but with no better insight into the issues confronting their businesses, according to a new report from Forrester Inc.

A good summary of the report entitled “Digital Insights are the New Currency of Business" can be found at - Without Big Insight, Big Data Is Useless - CIO Today

As usual, all comments and feedback are very welcome.

Take care.

Jim…

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According to Cisco's 10th annual Visual Networking Index, the number of people connected to the Internet will increase by one billion over the next five years, from 2.8 billion in 2014 to 3.9 billion by 2019, with much of the growth coming from emerging nations.

There will be an additional 10 billion new things connected to the Internet, from 14.2bn to 24.4bn connected devices, including smartphones, tablets, watches and sensors. Almost half of these connected devices will be things in our homes with other fast growing areas being wearables that improve our health and well-being, and cars that talk to each other and to us. This will herald a radical shift in how we connect to each other and the world around us especially with faster broadband speeds, increasing from from 20.3 Mps to 42.5…

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An interesting article by Business Insider reports that the future remains bleak for the US newspaper industry which has struggled for over a decade to adapt to the digital era. The May sale of the San Diego Union-Tribune for $85 million highlights the horrific slump in the value of "old media" companies in recent years. A decade ago, the newspaper was believed to be worth $1 billion. One estimate by the Pew Research Centre suggests that the valuation of once proud US metropolitan dailies including the Boston Globe, Philadelphia Inquirer, Chicago Sun-Times and Minneapolis Star-Tribune, have fallen by more than 90 percent from their peaks. Weekday circulation for the US daily newspaper sector has fallen by 17 percent over the last decade with a 50 percent decrease in as revenue.…

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Leading Digital Transformation

One of the best and most recent books on digital transformation is Leading Digital: Turning Technology into Business Transformation by Westerman, Bonnet and McAfee (2014).

Over a four year period, the authors studied a large number of ‘Digital Masters’ - defined as companies who were proactively using digital technologies to drive significantly higher levels of profit, productivity and performance - across a diverse range of industries. ‘Digital Masters’ were 26 percent more profitable than their average industry competitor; generating 9 percent more…

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Where Will Digital Disruption Lead Us?

'Disruptive innovation' is a term coined by Clayton Christensen in 1997.

In this very interesting video, James McQuivey, VP at Forrester Research, argues that the term itself has become disrupted by the digital era.

Under the ‘old disruption', very few people could disrupt because it required a tremendous amount of capital with the final product being used only by a small number of people. In the new digital era, by contrast, many people can participate in innovation because it costs so little and the ideas themselves multiply and spread with tremendous speed.

The future is not about looking at things as products or services, but as relationships with customers.

As usual, all feedback and comment very welcome.

Jim H…

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Our thoughts regarding the impact of digital disruption and ‘Digital Darwinism’ have been heavily influenced by the work of Brian Solis.

In this video, Brian discusses a wide range of issues relating to the impact of shared customer experiences on traditional approaches to sales, marketing and customer relationships.

‘Customers aren’t following the customer journey you designed because they’re too busy hacking it. No matter how much journey work you do, no matter how creative your marketing, no matter how responsive your website is, no matter how much technology you invest in, customers trust the experiences of others over your words aka branding and the path you’ve laid out for…

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