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IoE - Do People Matter in the Digital Era?
Joseph M. Bradley
Vice President, IoE Practice, Cisco Consulting Services
@JosephMBradley Live Tweet
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Digital Disruptors
Convergence of Trends Causing Digital Disruption
Information
During a baby’s first day of life, the amount of data generated by humanity is equivalent to 70 times the information contained in the Library of Congress
Cloud
Mobile Social
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My Top Five Implications of Digital Disruption
4 out of 5
customers trust
a non-bank for
their financial
needs
Data is everywhere, insights are scarce
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My Top Five Implications of Digital Disruption
Early detection
survival: 98%
Late detection
survival: 27%
80% of biopsies
aren’t necessary
Data is everywhere, insights are scarce
Real time is too late
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My Top Five Implications of Digital Disruption
Data is everywhere, insights are scarce
Real time is too late
If it doesn’t work on mobile, it doesn’t work
Of 127 Fortune
companies:
57% rate poor
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My Top Five Implications of Digital Disruption
Data is everywhere, insights are scarce
Real time is too late
If it doesn’t work on mobile, it doesn’t work
Context is King
Just because you know my name…doesn’t mean you know me
VC funding for
predictive analytics
startups: 81.5
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My Top Five Implications of Digital Disruption
Data is everywhere, insights are scarce
Invention
+
Execution
=
Innovation Real time is too late
If it doesn’t work on mobile, it doesn’t work
Context is King
Innovation is more than ideation
+
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Digital Disruptors
Will This Be Your Kodak Moment?
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History Has Shown Majority of Stalls Are Under Our Control
Source: Olson and Van Bever, Stall Points, 2008
“The problem isn’t what you don’t know, but what you believe to be true.”
Uncontrollable Factors
(12% of Total)
Contextual Factors (12%)
Regulatory Actions
Economic Downturn
Labor market Inflexibility
Geopolitical Context
Strategic Factors (70%) Organizational Factors (18%)
Premium Position Captivity
Innovation Management Breakdown
Failed Acquisition
Premature Core Abandonment
Key Customer Dependency
Strategic Diffusion/Conglomeration
Failed International Expansion
Adjacency Failures
Voluntary Growth Slowdown
Talent Bench Shortfall
Organization Design
Incorrect Performance Metrics
Board Inaction
Controllable Factors
(88% of Total)
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Value Is Not in the Number of Things, but in the Connections of People, Process, Data, and Things
Things
People Process
Data
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$4,519
$3,501
$6,372
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
P2P
M2P or P2M
M2M
Value at Stake (in $ billions)
55%
45%
People are part of the majority of IoE connections
Which Types of Connections Matter Most?
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Lighting Up Shopping Carts Can Contribute to 15.6% Profit Increase
No No Yes
Data
Number of cars and speed, location, and weight of carts
Determine data to be generated
Process
Shows when customers are ready to checkout, the value of items, and how rushed they are
Collect / analyze data to generate
information / insights
People
Allows store managers to make decisions about real-time staffing and prioritizing customers
Change processes to take action on
insights
Things
Parking lots
Shopping carts
Select and light up dark assets
No Real Value
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Lighting Up Bank Doors Contributes to Profit Increase Up to 15%
Select and light up dark assets
Things
If connected, bank doors can add more value than just letting people in and out
No No Yes No Real Value
Determine data to be generated
Data
By opting in, information about customers and their banking needs are made available
Collect / analyze data to generate
information / insights
Process
Customer information is combined with recent transactions and behaviors to predict what customers need
Change processes to take action on
insights
People
Bank managers can make decisions and assign staff to help customers with their individual needs
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Lighting Up Parking Increases Public Sector Revenues
Select and light up dark assets
Things
Parking spaces
No No Yes
Determine data to be generated
Data
Characteristics of driver / frequency
Location & time
Vehicle & popular type of space
Collect / analyze data to generate
information / insights
Process
Maximize customer parking and increase efficiency
Change processes to take action on
insights
People
Store reserves spaces or high-valued customers or to increase traffic during slow days and times
No Real Value
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Data and
Analytics
Next-Generation Collaboration Practices
Full Spectrum
Participation
Mind set
Skill set
Tool set
IoE demands Inclusive Leadership To Drive Digital Transformation
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Big Data is Nothing Without Big Judgment
+ =
Action Big Data IoE
Create culture that values data and decision making
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Data Analysis Tools Are in Place, and Considered Valuable…
70% Agree executives are provided with data analysis
technology
67% Agree executives are trained to use data analysis
technology
65% Agree executives are expected to use data
analysis technology
80% Believe data analysis tools can improve decision-
making
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28%
32%
34%
37%
34%
35%
35%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Online listening tools
Modeling and forecasting tools
Analytics and BI
Online tools to locate SMEs
Consolidated market intelligence
Decision dashboards
Real-time operations data
Widely available and used by executives
Access and use by individual contributors are
roughly half these levels
…But Are Not Used To Take Action
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Key Decision-Making Challenges Affect Execution
Challenge #1
Challenge #2
Analysis paralysis: decisions bogged down in details (43%)
Decisions not well-communicated (32%)
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All Things Are Important, But Not Equal
Risk
Opportunity
Cash
Margins
ROCM
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Execution Gap in the Collaboration Process
Which of the following collaborative steps are most efficient
in your company today?
Where do collaboration solutions add the most value in your company
today? By enabling employees to…
Find
Connect
Share
Act
Capture/Create
20%
26%
33%
14%
8%
18%
19%
37%
17%
9%
Find
Connect
Share
Act
Capture/Create
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Execution Gap Is About Connecting to People
83% of Fortune 100
company apps have
an average or poor
rating
83% outsource all or
part of their mobile
app development
If it doesn’t work on mobile, it doesn’t work
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Establish a structured and holistic mobile strategy
Know the dependencies on other applications
Understand your target market; Focus on user needs
Use analytics to evaluate how apps will be used
Understand the limitations of your platform and ecosystem
Adopt agile practices for easy scaling, rapid rollouts and updates
Keep it simple—App complexity is the enemy of mobility
Practice privacy and security by design
Test, test, and test some more Have a clear pricing strategy
1
2
3
4
6
7
8
9
The Ten Commandments of App Development
5 1
0
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Open Your Four Walls
Freelance Digital Personas (34% of today’s workforce)
Innovate Outside the Four Walls of Your Organization
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8%
9%
11%
12%
16%
23%
25%
28%
41%
49%
51%
None of the above
Web history, social media activity
My reviews online
Family information
Personal financial information
Basic information (name, age, etc.)
Purchase history, loyalty program info
Likes/dislikes, interests, hobbies
Information from connected products I am using
Purchase history from other retailers
My location
No
Maybe
Yes
Win the battle
for trust here
Respondents willing to share information to get a more
personalized shopping experience
When You Extend Outside Your Four Walls, There Is a Price: Retail
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Exactly what data is being collected
How the data is being analyzed and reported
How the data collection technology works
Who is seeing the data
How the data is being secured The consumer benefits of data collection
Why the data is being collected It’s opt-in
Source: DataInformed, September, 2013
What every business should tell consumers about their data collection?
1
2
3
4
5
6
7
8
Big Results Require Big Trust
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Inclusive Leadership Impacts the Bottom Line
93%... …of inclusive enterprises
that indicated their
technology investments
have outperformed
expectations in terms of
business value they have
created
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The key to getting value from IoE solutions is people
The implications of digital disruption have caused many
companies to fail
IoE Is an actionable framework to thrive in a digital world
Value from IoE starts by knowing which dark
assets to “light up”
1
2
3
4
Inclusive leadership drives full participation, the use of data and
analytics, and develops next generation collaboration skills 5
Key Takeaways
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What enables…
a book company to be a technology leader?
What allows…
an individual to connect 1 billion people?
What allows…
a company to sell 568 iPhones a minute? Think exponentially, not linearly.
It’s not about what you don’t know,
it’s about what you BELIEVE to be true.
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[email protected] @JosephMBradley JosephMBradley
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