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Consumer Habits:Changing ICT Innovations
Consumerization and Transformation of ICT and organizations
By Mark Mueller-Eberstein
Mark Mueller-Eberstein CEO of Adgetec Corporation & Bestselling AuthorTwitter: @MarkMEberstein
Technology is fundamentally changing the games and worlds we know – and its getting simpler to use
Consumers are early and broad adopters
People want to be productive and make positive impact and will use the tools that help them
Knowledge and the power to create knowledge quickly is the power of the future
Size doesn’t matter (much)
Speed and agility are increasing and essential
Getting on the same page….
What is “Consumerization”?
When the top executive buys an
iPhone… and expects it to
work at the office, home, away…
What is “Consumerization”?
When employees use Skype to work mobile, collaborate and stay connected
And
are essential components of the
marketing strategies
When employees from many functions and levels engage in a dialog with customers
• company strategy is changing and processes improved through social media (75%)
• combination of ideas and thoughts of geographically separated teams is easier (79%)
• New ideas and innovation generated (71%)
• Increase in productivity (76%)
Productivity increase by 22%
European Leaders using Social Media say:
MillwardBrown, 2012
Adgetec Confidential 9
When hundreds of organizations had a secure collaboration platform up and running within hours of the Haiti earthquake
How cellphones are… …enabling the first banking in Haiti … allowing people to detect
counterfeit drugs in Africa … connecting refugees throughout
the globe
Wireless technology is also going to help in America to control healthcare costs (18 percent of U.S. spending)
When Presidents talk about IT’s impact on societies
President Clinton at CITA 2012
When the CIO understand the security limitation of his iPad
and still won’t give it up
What is “Consumerization”?
When President
Obama insisted on using his
Blackberry
Adgetec Confidential 12
Engaging customers?
Have a dialog with your customers!
Adgetec Confidential 13
A $ 10 billion company
Who knows “Rovio”?
Experienced and motivated team (52nd game)
Opportunity Aware
“Good bye distribution channel”…
“Welcome global reach & social networking”
Simplicity in execution and communication
Building a consumer brand:The $10 Billion Lesson from “Angry Birds”
Total Customer focus—Fans are everything
Beyond Apple Chrome, Facebook, Windows Phone, Nokia 100 Million as first target; past 140 Million in
September 2011 Achieved their next goal: 1 Billion Fans Second brand in preparation
Your market is what you define it to be Mobile Game developer or
Global Entertainment company?
ROVIO’s Approach
5. Don’t think big. Think HUGE! Company size doesn’t matter
4. Don’t let teams grow too big or bureaucratic3. If you have a winning formula, don’t sell out
early but build it HUGE2. Be true to the brand; protect the
brand at any cost1. Work with your fans (customers).
Daily. In all functions. On all levels.
Lessons from “Angry Birds”
More knowledge has been created in the last 5 years than in the 5,000 years of
human history before.
And its doubling every 5 years.
Knowledge economy?
The Reuters Guide to Good Information Strategy, 2000
Adgetec Confidential 18
What computing looked liked...
Adgetec Confidential 19
And here the computing power surpassing 1980s mainframes….
Good ole Moore’s law
1970 1972 1974 1978 1982 1984 1989 1993 1996 1999 2000 2003 2004 20070
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
Transistors
Transistors
Gordon E. Moore, Intel
Adgetec Confidential 21
The power in your hand in 10 years… looks like this today
“Change is the law of life. And
those who look only to the past or
present are certain to miss the
future.”
John F. Kennedy (1917-63)35th U.S. president
What happened to Mickey Mouse?
Napster and iTunes for music… App Store (and Bit torrent) for
applications… Amazon for
content & computing capabilities
eBay, Taobao,etc. for “things”
At least “the big” can control distribution… or not?
Traffic has exploded in last 10 years
Going to a store becomes time prohibitive
Purchases “online” but…◦ Directly from producer to
consumer◦ Distribution loses value◦ Direct communication key
Tabao, Alibaba, Sina Weibo, …
What is your presence and strategy to engage?
Shopping in Beijing?
7 Billion people 1.4 Billion TVs 1 Billion PCs 5.3 Billion mobile phone devices for more than
3 Billion users Fast adoption:
iPad sold 15 million units in first 7 months and 11 million in the last quarter alone
Android phones captured 40% of smartphone market in 12 months
iPad3 ”new”: 3 million in first days
2012 statistics to keep in mind…
Apple and Samsung make 99% of all profits with Smartphone devices
Worldwide advertising in 2011: $588 B
2011: $70 Billion spent on online advertising 2015: Amount will grow to about $140 Billion
Google$37B
All other
Facebook$3.7B
Business as usual?
The world has changed and will change even faster
Information, collaboration and knowledge sharing across organizational and generational boundaries are essential
ICT is the enabler and the tool (“AGILITY”)
Success is determined by the people and their capabilities to leverage and adopt
◦ Technical challenges are relatively small and options are plenty◦ IT capabilities can be procured relatively easily◦ Organizational and cultural challenges are key obstacles
Flexibility is success factor in the transforming world. Organizations secure opportunities for their future Different devices, places, times, people & business requirements
Your competitors of tomorrow are racing ahead today.
Tomorrow will be very different…
Situation that impacts many People want information Social Networks and friends are trusted more
than government and traditional media 30 million Thais on Facebook
Fundamental changes can happen in weeks, days or even hours
What is “Consumerization of ICCT”?
Information Communication Collaboration Technologies
Consumerization of ICCT is the growing
tendency for new information technology to
emerge first in the consumer market and
then spread into business and government
organizations.
76% of large organization in the US59% of large organization in Germany35% of large organization in Japan
B.Y.O.D.
Security Data loss Compliance Personal data Privacy End-user support
(by IT)
Top Concerns
Recruiting Customer DIALOG Market research
Embrace public social networks
Remember: most interesting internal communication is public within minutes anyway
Knowledge sharing Employee connections Information sharing
They are the first to adopt new phenomena and inventions.
They constantly generate new innovations.
They use their networks to solve problems efficiently and in an innovative manner, provided their interest is piqued.
They are more community-oriented and international than earlier generations.
Thee expect their leaders to be inspiring, responsible and open.
This generation is of vital importance to companies, organizations and leaders.
NO FEAR: The PlayStation Generation
Digital Cowboys are the super stars of the PlayStation Generation
Born after 1985 (1990 in China)
Grew up with the Internet Are globally connected
and willing to move Access “data”
anywhere and anytime Openly question and test
their leaders
And more and more older people are behaving like them…
Building IT the way Digital Cowboys expect it
…. Makes perfect business sense!
Lower costs & higher productivity
People
Technology
Place
Office space
-15% -50%
Travel
-5% -30%
TCO workplace
+15% -25%
Cost of communication
and collaboration
+10% -30%
Productivity
+10% +40%
Sick Leave
-2% -20%
Attract /retain right people
-5% -15%
*Rotterdam University & Microsoft
Simplicity wins
We don’t want “technology” We want stuff to just work
The tools at work have to be as easy as the tools from home—iPads, smartphones, Facebook, Amazon
IT Infrastructure (of organizations and countries) has to support mobile devices, personal PCs and consumer “apps” & experiences
…. At any place and any time
The impact of consumerization
Capabilities “on Tap” (Cloud / Saas) Digital Cowboys, then Consumers will embrace first
Data “in the cloud” (private or public) Access and networking anywhere with many devices
Powerful devices that sync and “light up” through cloud
Social Media as “authentication” Security and trust through community control Hard to “fake” 500 friends & family And who wants to meet a person with only 10 contacts….?
Location based “experiences” (likely GPS based)Includes networking, data protection policies, advertisement, services,…..
Simplification for end-users and IT management
What’s next? (from consumer to business)
Takes advantage of innovation & technology
Continuously optimizes & re-invents
Is authentic & trustworthy
Has all levels & functions engaged with the frontline
Is “always on & responsive”
Leverages the best resources for a given task or project
Attracts the best people
The “consumerized” organization