ROTATING TO THE NEWHow established leaders can evolve and find a new
gear through customer centricity and accelerated
innovation
Patrik Malm – Innovation and Experience Architect – [email protected]
ESTABLISHED COMPANIES ARE UNDER THREAT
…CORPORATE PERFORMANCE HAVE PASSED ITS PEAK PERIOD
3
$0
$5
$10
$15
$20
$25
$30
$35
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Re
ve
nu
e (
$ T
rilli
on
)
$0,0
$0,5
$1,0
$1,5
$2,0
$2,5
$3,0
$3,5
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
EB
ITA
($ T
rilli
on)
Revenue
2394 companies, $ Trillion, 2002-2015 (overall CAGR: 6.4%)
EBITA
2394 companies, $ Trillion, 2002-2015 (overall CAGR: 7.3%)
2010-2015 CAGR: 1.9%
2010-2015 CAGR: -0.2%
52% OF FORTUNE 500 SINCE 2000 ARE
GONE!
Copyright © 2017 Accenture All rights reserved. 5
HOW CONSUMERS SPEND THEIR MONEY IS CHANGINGGlobal Consumer Goods
Copyright © 2017 Accenture All rights reserved. 6
U.S. Retail & E-Commerce Growth, Q2 2016
MARKETPLACES ARE CHANGING THE GAME…
2,6%15,8%
24,2%27,7% 28,8%
43,0%
Retail Overall E-commerce Top-33 Public E-commerceCompanies
Amazon Amazon Marketplace Amazon PrimeMembership*
200 BALL BEARINGS IN A REGULAR CAR
…. 18 IN A TESLA…
…STEEL IS FLATTENING OUT AFTER A LONG GROWTH PERIOD…
…AND THE IMPACT OF THE CIRCULAR ECONOMY IS
STARTING TO BE VISIBLE**
• Steel demand flat - Est. ~1% growth
• Automotive – electric cars, sharing, weight reduction
• Construction – mega / green / smart cities
• Competition - Substitute materials
* Accenture research, 2017
** World Steel Association, April 2017
…NUMBER OF CARS SOLD IS EXCPECTED TO DECLINE 2019…
1 shared autonomous vehicle
could do the work of 7
traditional vehicles
Global profit pool [bn Euro]
Current Trends… … challenge the traditional business … and trigger a profit redistribution
Traditional Light Vehicle Sales[million units]
OtherMobility ServicesSuppliersOEMs
0
10
20
30
40
50
60
70
80
90
100
110
20232021201920172015
Annual growth rate
126 152 122
102112
77
103
197
127
220
2025
474
2015
332
2030
545
vs
WHO IS THE BIGGEST SHARK?
1. Faster moving peers
2. Disruptive new entrants
(startups or & tech giants)
3. Smart clusters of companies
partnering to take on your
industry segment?
4. Your own organization’s
DNA and immune system?
MENTI METER QUESTION
HOW DID WE END UP HERE?
Copyright © 2016 Accenture All rights reserved.
THE IMPACT OF SIX CONVERGINGTECHNOLOGIES CHANGED EVERYTHING
SOCIAL & COLLABORATION
MOBILITY
BIG DATA & ANALYTICS
CLOUD
ONLINE / E-COMMERCE
CONNECTIVITY
& IOT
Mature
Still evolving rapidly
AND THERE IS MORE COMING...ESCALATED PACE OF TECHNOLOGICAL CHANGE
Public Internet
1950 20201960 1970 1980 1990 2000 2010 2030
System/390
System/360
Mainframe
Server-Host
Client-
Server
and PCs
Web 1.0
eCommerce
SAP
founded
PC
Amazon.com
Sales of PCs
peak
ARPANET
AWS launched
Web 2.0
Web 2.0,
Cloud, Mobile
Salesforce.com
Public Cloud
Mainstream
iPhone
Self
driving
car
IoT and
Smart
Machine
IoT, M2M
Big Data, Analytics,
Visualization
Big Data
4.4 Zettabytes of data
?
Cognitive
IBM Deep Blue
tod
ay
Source: Accenture 2016. Developed by Accenture Tech Innovation Growth & Strategy team based on Gartner's Hype Cycles.
WE CAN NOW MAKE ANYTHING WE CAN IMAGINE
SOFTWARE IS EATING THE WORLD…
Genetic programming as a SW tool…
1982
KNIGHT RIDER
KNIGHT RIDER1982
2013
HER
HER2013
AMAZON ECHO IS ONE OF MANY SERVICES WHICH DISRUPT ESTABLISHED VALUE CHAINS
“Add milk to
the shopping
list”
“Get me an
uber”
“Turn on the
lights”
https://www.youtube.com/watch?v=KkOCeAtKHIc
AND HERE IS ANOTHER ONE…PROACTIVE SAFETY…
“You’ve only
slept 3 hours I
will get a ride for
you”
“Your driving is
much more
aggressive the last
couple of days”
• Sleep pattern
• Your breaking and
acceleration patterns
in real time
BOUNDARIES BETWEEN INDUSTRIES ARE BLURRING AND NEW ECOSYSTEMS ARE BEING FORMED
BOUNDARIES BETWEEN INDUSTRIES ARE BLURRING AND NEW ECOSYSTEMS ARE BEING FORMED
Safe EffortlessSustainable HealthyFree
CONNECTED HOMECONNECTED CITY
CONNECTED PLATFORM
Enabling technologies
CONNECTED MOBILITY
CONNECTED LIFESTYLE
USTRIES ARE BLURRING AND NEW ECOSYSTEMS ARE BEING FORMED
ALL COMPANIES ARE TRYING TO FIND THE RIGHTPOSITION IN THIS NEW ECO SYSTEM…
Safe EffortlessSustainable HealthyFree
CONNECTED HOMECONNECTED CITY
CONNECTED PLATFORM
Enabling technologies
CONNECTED MOBILITY
CONNECTED LIFESTYLE
BOUNDARIES BETWEEN INDUSTRIES ARE BLURRING AND NEW ECOSYSTEMS ARE BEING FORMED
AND IT WILL DRIVE CHANGE IN THE INDUSTRIAL, RESOURCES AND TRANSPORT INDUSTRIES
Safe EffortlessSustainable HealthyFree
CONNECTED HOMECONNECTED CITY
CONNECTED PLATFORM
Enabling technologies
CONNECTED MOBILITY
CONNECTED LIFESTYLE
CONNECTED
TRANSPORT
CONNECTED
INDUSTRY & RESOURCES
HOW CAN LARGE ORGANIZATIONS MATCH THE SPEED AND FEROCITY OF THE
DIGITAL DISRUPTORS?
THE TRANSITION FROM PRODUCTS TO SERVICES IS AT THE CORE OF THIS
EVOLUTIONNever run
out of food!
What it could be like: Auto
replenished Fridge provided by:
- Solving real problems
for real people
- No upfront product cost.
- Free 3 month trial
- Buy more pay less
VALUE IN
STATIC PRODUCTS
VALUE FROM
SERVICES
&
VALUE IN
STATIC PRODUCTS
VALUE FROM LIVING
SERVICESSmart Products
Industrial Cloud
Platform & Analytics
Human
Interaction
Container for
Software
Ecosystem &
Smart Services
Hyper-Personalization
& New Experiences
AND IS RAISING THE STAKES SKY HIGH FOR NON SOFTWARE COMPANIES
Tire as a service
https://www.youtube.com/watch?v=UlIGI3laGAo
Youtube video!
29
Advertising agency
IT department
System
integrator
Web site team Call Centre
Marketing
department
WHAT IT USED TO BE LIKE....
30
Conversion
optimization
specialistData
Scientist
Innovation
Accelerator
Lead
Innovation
Portfolio
Mgmt
Service
Designer
Chief Experience
Officer
DevOps Lead
Agile business
lead
Articial
Intelligence
& Robotics
specialist
Augmented and
Mixed reality specialistMobile services
and apps
Scrum
master
Agile dev teamsProduct owner
Insight and data
lead
Data lake owner
Marketing
automation
lead
Growth hacking
lead
Lean startup
IT department
Platform
services
provider
Engagement
platform teamCall Centre
Marketing
departmentExperience
agency
Chatbots
HOW IT IS TODAY....
ESTABLISHED COMPANIES NEED TO EXTEND BEYOND
THEIR CORE BUSINESS
DisruptExtendDefend
VALUE MAINLY IN TANGIBLE PRODUCTS VALUE MAINLY IN INTANGIBLE SERVICES
Time to scale
Inn
ova
tio
nA POWERFUL FRAME TO FOCUS THE ENTIRE BUSINESS,
DRIVE CHANGE & PICK UP PACE
Disrupt
Defend
Extend
• This is where you make money today
(existing products, customers
and markets)
• Use digital to drive experience,
engagement and create efficiencies
• Should work like a well oiled machine
• This is where you make money tomorrow
• One foot in the new and one in the old
• Digital becomes part of the product
• Becoming a service operator
• Increased uncertainty and complexity
(R&D, Manufacturing, more partners etc.
• Completely new business models, markets and
services
• Likely that it competes with your current
core business
• Proactive disruption can fend of new entrants
• High degree of uncertainty
Time to scale
Inn
ova
tio
nAPPLYING THIS FRAME TO THE METALS INDUSTRY...
Disrupt
Defend
Extend
• Upgrade current software
• At end of life replace with sensor fitted models
• Collect data in isolated software systems
• Plan-led operations with end of month reconciliation
• Mines to Mineral Reserves and allows for mining
losses and dilution
• Move all activities to digital format
• Upgrade modelling, planning and production
software for improved operational visibility
• Discrete analytics of specific segments of the
value chain for diagnostics
• Plan-led operations with advanced
reconciliation
• Mines to meet contracts and can adjust to
unexpected changes in mineralisation
• Integrated platform to connect segments of the
mining value chain
• Data-led operations and continuous
reconciliation
• Live operational management system with
dynamic blending and value based insights for
next best action decision making
• 24x7 operations
• Mines where previously impossible
• Mines to order, able to adjust to market
conditions (e.g. fluctuating commodity prices
and energy costs) to optimize returns
Copyright © 2016 Accenture All rights reserved. 34
Internal Focus
Ex
tern
al F
oc
us
2. DigitizeOperations
1. Transform Customer experience
Defend
Extend
Disrupt
2. Create new products, services and business
models
THREE KEY DIMENSIONS WILL DRIVE THE ROTATION TO
THE NEW
DEFEND – A WELL OILED MACHINE
Time to scale
Inn
ovati
on
Defend
Strengthening with digital
Time to scale
Inn
ovati
on
EXTENDING BEYOND THE CORE
Extend
Differentiating with digital
Defend
Strengthening with digital
Time to scale
Inn
ovati
on
PROACTIVE DISRUPTION
Disrupt
Extend
Differentiating with digital
Disrupting with digital
Defend
Strengthening with digital
An app for smart handling of rocks, soil and filler mass
Supply
Demand
Transport
Sites
PROACTIVE DISRUPTION
PROACTIVE DISRUPTION HAVE GIVEN NCC GOOD ‘DIGITAL SELF CONFIDENCE’
CIO AWARDS THE CIRCULARS AWARDS
GARTNER AWARDS
WHATWHY HOW
HOW TO EVOLVE AND FIND THE NEXT GEAR
WHAT HOWWHY
Quickly create leadership commitment through immersive and high paced workshops
Duration from ½ day to 2 days
GET BOARD AND CxO COMITTMENT
WHAT HOWWHY
Finding the real problems
Balanced direction
Funding the journey
Duration 3-10 weeks
SETTING UP FOR SUCCESS
ROADMAP AND BUDGET NEEDTO BALANCE THESE FOUR AREAS
WHATWHY HOW
SET UP, START RUNNING AND BUILD
CAPABILITIES ON THE JOB
AcceleratorPILOT & SCALE
Vision &Strategy
Accelerator
OperatingModel
WHAT & HOW
HOW
PILOT & SCALE
CENTRAL INNOVATION ENGINE
Inputs Ideate Incubate Transform Growth Outputs
• Insight from strategy&vision work
• Customer Insight
• Employee ideas
• Inspiration & benchmarks
• Innovation & ideation processes
• Internal / external initiatives, disruptions and trends
• Market fit products and services to be adopted as part of corporate growth strategy / digital transformation
• Value created through new revenues, profits and embedding Digital Culture
Is the idea in scope for the Digital Foundry and has has potential for
further pursuing? Where is the addressable value, how to
prioritize and how much to invest?
Has the idea value proposition and vision been crystallized and validated (with customers and business) in order to continue
building launchable MVP.
Have we been able to build launchable, customer validated MVP that can be integrated and
deployed?
Have we been able to grow the business from start up mode to
mainstream?
DIGITAL FOUNDRY – ACCELERATING INNOVATION AT SCALE
— 4 weeks* — 6-10 weeks* — 10+ weeks*
47
DIGITAL FOUNDRY WITH FOUR GLOBAL ACCELERATIONCENTRES
Wärtsilä aims to speed up innovation and co-creation
with customers on a range of new business models and
solutions
Wärtsilä is changing the clock speed of the company by
using 4 Digital Acceleration Centres (DAC) to accelerate
new business ideas.
In addition “pop-up” DACs will be tested with customers
around the globe.
Wärtsilä
Accelerating innovation at scale
