DISRUPT OR BE DISRUPTED

NEW WORLD, NEW RULES

Carlos DominguezCisco SystemsSenior Vice PresidentOffice of the Chairman and CEO

TECH NOWIST

Leveraging the PresentPreparing for the Future

“ ”TECH NOWISTSELF-PROCLAIMED

SPEED AND PACE OF CHANGE: FACT OR FICTIONIf Facebook were a country it would be the world’s third largest and2 times the size of the U.S. population.

More video was uploaded to Youtube in the last 2 months than if had been airing new content 24/7/365.............. Since 1948

More people return home for their cell phone than their wallet

Carlos Dominguez is usually confused with Elvis......

1 in 5 couples meet online; 1 in 5 divorces are blamed on Facebook.

not the fat one!

The Rise of the Age of Networked Intelligence

Agrarian Age Industrial Age Age of Networked Intelligence

Printing Press Internet

Current Crises

A Turning Point in History:Rebooting Business, Government & Society

The Industrial Age Corporation

The Financial

System

The NewspaperSafety

and Security

EDUCATION

Government Democracy

WORKMedia &

Entertainment

SCIENCE

Health Care ENERGY

TransportationSocial Justice

The Cities

Regulation

Don Tapscott - MacroWikinomics

Change Challenge #2FAMILIARITY

Watch

SUGGESTIONSSURVIVE, LEAD & THRIVE1. EMBRACE CHANGE2. DISRUPTIVE INNOVATION

EXAMPLE

Kodak’s introduction of the roll film in 1888 is an excellent example of a disruptive innovation.

Instead, it brought new performance attributes to the marketplace.

PORTABILITY.

SIMPLICITY.

AFFORDABILITY.

TIMELINE

2000 - Kodak vows to lead in digital2005 - Kodak ranked #1 in digital camera sales

- Surged 40% to $5.7B- Film fell 18%

WHAT HAPPENED?Low margins on camera’s / high margin on film

Crushing profit disappointment

MY INNOVATION SUGGESTIONS1. Understand your culture2. Sustained innovation VS disruptive innovation3. Need to go underground4. Executive sponsor5. Experiment constantly6. Measure results7. Leverage entire company8. leverage suppliers9. Get input from customers10.Disruptive innovation quality comes in version 3 or 4

SUGGESTIONSSURVIVE, LEAD & THRIVE1. EMBRACE CHANGE2. DISRUPTIVE INNOVATION3. CONTRIBUTION REVOLUTION

TYPESThe Contribution Revolution - “Co-Creation Era”

New Business Models Emerging - Change Everything

Opinions & Ratings: Zagats

Expertise:Wikipedia

Software Code:Firefox & Linux

Social Connections:Facebook, Twitter

Specialized Connections:

Craigslist

Capital Resource:

Skype

Goods:eBay

Design &Developments:Threadless, Ryz

Creative Expression:YouTube, Flickr

Platforms That Allow Users To Contribute

22

Companies Born Into Change - “Crowdsourcing”

“Crowdsourcing“…a focus group on a grand scale

23

Companies Born Into Change - “Crowdsourcing”

“Crowdsourcing“…a focus group on a grand scale

Facts:- Founded 2000-50 Employees-30+ M Revenues-Double Digit Growth-500,000 Community Members- 120,000 Designers- 10,000 orders / day-288,753 Likes on Facebook- 1.6 M Twitter Followers-30 Avg. Age Employees

How Many Man Hours Are Invested

In Wikepedia?a) 3 Millionb) 10 Millionc) 30 Milliond) 100 Million

COMMON CHARACTERISTICSPRODUCT LEADERSHIP CUSTOMER SERVICE

OPERATIONAL EXCELLENCE

EMPOWERMENT &VALUE EMPLOYEES

HARNESS ASSETSACROSS ORGANIZATION

NIMBLE ORGANIZATIONS

CUSTOMERCONTRIBUTION

& FEEDBACKLEVERAGEDIVERSITY

LEVERAGE TECHNOLOGYCULTURE OF

CHANGE REWARDSCREATIVITY

FOCUS ON INNOVATIONEXPERIMENTCONSTANTLY

IMAGINE THEFUTURE

Tech Nowist“ ”Someone who EMBRACES CHANGE, understands what technology is available,

EXPERIMENTS with it,

LEARNS from the experiments &

LEVERAGES it for a competitive advantage

4 STEP PROCESS

4

IMAGINE THE FUTURE1. Conduct research - hire / buy2. Brainstorming sessions - inside and outside3. Listen, listen, listen4. Dialogue with cutting edge thinkers5. Understand technology - what’s available and what’s coming6. Attend conferences7. Constantly ask - what if?8. Be curious9. Be enthusiastic10.Take time to think..... quietly

SUGGESTIONSSURVIVE, LEAD & THRIVE7 1. EMBRACE CHANGE2. EMBRACE SOCIAL MEDIA3. FOCUS ON DISRUPTIVE INNOVATION4. IMAGINE THE FUTURE5. EXPERIMENT VS ROI

Experimentation is key:Prototype a lot, fail often, and fail early

SUGGESTIONSSURVIVE, LEAD & THRIVE7 1. EMBRACE CHANGE2. EMBRACE SOCIAL MEDIA3. FOCUS ON DISRUPTIVE INNOVATION4. IMAGINE THE FUTURE5. EXPERIMENT VS ROI6. LEVERAGE TECHNOLOGY

SUGGESTIONSSURVIVE, LEAD & THRIVE7 1. EMBRACE CHANGE2. EMBRACE SOCIAL MEDIA3. FOCUS ON DISRUPTIVE INNOVATION4. IMAGINE THE FUTURE5. EXPERIMENT VS ROI6. LEVERAGE TECHNOLOGY7. IMPLEMENT EFFECTIVE COLLABORATION

Hunt for Value Across I.C.E.

MORTEN HANSEN - “COLLABORATION”

Cross-unit product innovationNew business creations

Cross-selling, better coordinationBetter customer service by coordination

INNOVATION

CUSTOMERS

EFFICIENCYCosts/investments savings by coordinating/sharingBetter decisions by getting input

PRODUCT - TELEPRESENCE / WEBEX INTEGRATIONNEW BUSINESS -IPRIZE - CROWDSOURCING

CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICECROSS SELLING - DATA CENTER - PARTNER COMMUNITY

WEBEX

- Cisco Examples