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Michael Porter has obviously white hairs. But not because of his age, even if it’s been years since his “Porter’s forces theory”, but probably because of #Uber. His former theories with his famous “forces” theory matrix haunted lots of universities, students, consultants and companies, made a classic model to explain, draw and shape the main forces and links through modern strategy. I think every people, far from close, one day has been in trouble with this matrix, trying to adapt it to his personal business case. I mean in trouble, while searching clues and tips for his own industry, sector or product. This was a wise approach to put the things right, since the beginning. I never understood that since then, there was a scarcity of ambitious models that could tumble down the historic fundations built by M. Porter. Even since the run of digital revolution, in the mass effects, it seems the old rules could play again their guiding role in strategic planning. Even on Clayton Christensen’s disruptive innovation concept, Porter’s forces could function to describe a whole environment, a whole playground where different actors could grow or die, but still go on their economic destiny. Then there was Uber…

PorterUber

“Über alles”

We can at this point consider Uber as a perfect example of “disruptive” phenomena (I prefer not to use the term of innovation, as for me, the real innovation is in the “UX”). They re-invented an existing service, better (some say “far more”), at lower prices (and then at lower cost, forcing the whole chain through lower margins). We’re fed up with the “middle”: middle-class, middle management, middle-price, middle quality…middle of the value chain and intermediaries. High class or low cost seem to resume the economics. “Stuck in the middle” is so far the worst strategic planning situation for many reasons. The increasing and forced run for innovation creates and destroys, each day and the speed of cycles gears up. Time is up and now to “re-arrange” and update the old models to include disruptive brutal behaviours. While there’s still much competition, all we can say is that the customer centric era has begun and let himself as a king of the game. I tried here to start a reflexion of where and why, Porter’s forces may change on the impact of collaborative society.


The uber-matrix (from Porter’s forces)

Porter_UberMatrix

How’s competition so far? Fair, intense, rough or beginners’ field? As it’s the starting point of any strategic analysis, we may spend a while on this.


“The Competition, the customer and the supplier”

There’s no big innovation, I mean on the technology plan, in transforming the supply of transportation, like Uber did. They simply used the new principles of digital: always-on, connected things and people, lowering waste and waiting lines and optimizing the transportation offer. Less lose time, empty cars and…angry consumers. The big picture is in optimization, optimizing time and resources. And that means, a lot of money indeed! The next steps will simply optimize again: using transportation time and devices to transport anything: meats, packages, mail, services and so on. Optimizing again. The application will cover many versions, until you’re so much profiled, that they will be able to monetize your datas.
On the market plan, a very balanced market, with no dominant actor: drivers need consumers who need drivers and everybody needs Uber to get in contact and stay in touch. The very big star is the “platform”. We just entered in a world of platforms, which capture essential of the value chain and kill many intermediate actors. Here we go, like the web goes…Progress destroys at a speed that even Schumpeter could not imagine. We call it “uberization” of economy, a kind of “new born” of relations, interactions and business models. Anyone can be catched with no tomorrow. Anyone can  get stuck in a dead end. Something thrilling or fearing, depends on your risk attention.


“Where playground gets a new shape”

Uber now seeds a new way of doing business, and draws many actors with him. Under the influence of digitalization, customer experience grows up frankly to a new standard that calls for excellence. Nothing will ever be like before. The extreme focus on operation, delivery and accuracy calls for a new standard for customers. Where there seems to be no entry barriers, the ability to build a copycat is a longtime run. Not in technical aspects but in the delivering experience. Even the substitutes field must be a tough job to get the same level of result. The “platformization” of economy used to be the way of doing business, throwing away all useless midlevel actors. And even if it’s the sense of history with progress bulk modifications, legal watchover is live like never before: strikes, hard negociations, realtime bad influence on PR…While we lived many revolutions, the one that goes is far violent, quick and uncompromising. Any sector is concerned, soon or later and you’d better think of it and organize the answer, or other new comers or opportunist actors may do it without you.

Schrödinger’s cat dilemma: yes it’s technology, no it’s not”

The easy-to-use plenty offer of digital tools gets bigger every day so there’s some foolish feed of the whole ecosystem with techs. But technology wise speaking, nothing really complicated: localization, customization, smart UX, realtime traffic management, rating panel…A complete thinking of just “what it needs” to create a blue ocean, out of the box and disrupt the well ordered old world…Until then, it’s been a tipping point: using these new features opened an ocean for many industries to get closer and more efficient with their customers and value proposition.


“Innovation for change”

It changed the business model for a flat well known price, fixed cost with no surprise, flat prices for usual travels or recurrent ones. It changed for a more trusty model, trusty relation between industry and customers. It opened to many other solutions, in parallel markets, services or goods. It created many jobs, pushing the need beyond the natural demand. It played in a “winner takes it all” market, where speed is the key, to eliminate competition. The only limit (and mistake) for uber was no exit barriers, so competition could flurish, one time they understand the main principles and spread the word. The diverse moves to complete their main job, was to create and use transportation capabilities to transport anything else: “eats”, medecine, etc.

It changed the way it usually changes. Brutal and unexpected, many didn’t see the wave, nor the huge potential for many business. Who can say it as well from one’s own business? Who can say “well, I’m not concerned, it’s for others”? One day, soon or later, you’ll meet the beast, the wall of doubt, of uncertainty which may paralyze your brain and your usual skills, trained for mainstream. “Forewarned is forearmed”. Unfortunately, it may be not enough…

“Time for change, time for reboot”

We never knew anything so quick that this new “kind of thinking”, of doing business, and oftenly refer to “digital wave”. Not as a mean, but a way of setting new behaviors, in front of massive and settled competition. No recipe, no warning, like bootlegs invading the old world. Just a necessary reboot, from A to Z, bottom and up. A concrete and real disruption, where incremental innovation dressing doesn’t work anymore.

You can’t say not being warned until now…

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Seems Bitstrips raised a lot of money recently and I must admit at first was very sceptical. Let’s say it’s a funny tale and another social story, gamed with cartoons and a “do-it-yourself” use of drawings through several opportunities. Fair enough. If the “cartoonisation” gives clever scenes and enhances our “gamability”, I’m still wondering what kind of value is behind these large valuation and viral expanding. Guess what? The value is in you. As digital networks invade the world, the real value is built, day after day, with the increasing datas and profiles, users. You. Me. Friends. Fans. No one missed the last Facebook starving price with this astronomic deal with Whatsapp.

What’s incredible in the “digital network” is that few people now concentrate value, revenue and growth. Where millions of employees had to participate in industrial era, smart teams (eg 13 for Instagram, and 55 for Whatsapp for example) do the job for billions of stocks valuation. If indeed they created and built something relevant, the most part of the value comes now from the network and the potential of its members/profiles. What they do, post, discuss, members who do anything for free, anytime, anywhere, filling timelines with pictures, text messages and conversations. And the contents blooming in these platforms bring value to the whole project. Ask yourself how these companies’ stocks are valued: from the users they drew to the network (eg value of a user between 20 to 100$, according to returning and activity rates x number of members). Why do we value these networks with members figures without sharing any revenue with these members?!

DigitalNetwork

But this value is not distributed (eg for example in jobs raising, revenue sharing or anything else) to third part anymore. We’re facing the worst side of digital revolution, destructing value: no more jobs needed – lean companies -, value created for free by userswho are the next unemployed. I must admit, being an early adopter of digital wave, this theory that we can find in Janier’s book “who owns the future” made my day and the real danger zone is already there: the more you’re opt-in, the more you’ll have free information. Your “Opt-Inness” make you more valuable but the question is: for who? Finally, more free information makes the world poorer because in the long term, there’s a massive destruction of employment, directly from the fact that industry now needs far less people to work. We all, using and consuming free and low cost services, participate to this slow and steady destruction of middle class. The one that holds the global edifice and raises children. The bulky one that create the motion for mass markets. It’s time for revenue sharing between, friendly users and startup aces, and rebuild another model for digital economy. Sustainable, fair and collaborative centric. Kind of we could be proud, without fear of being smashed up from the system.

Think of it before your next content feed. It may worth much money, but not for you

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A French-American meeting took place in the HEC Alumnis offices, for a very special and thrilling conference on the life now with computers. Organized by different groups (Harvard France, HEC International Dev, Stanford club of European leaders) and framed by several meetings like this with different topics, we had an interesting demonstration for the full room within: “the impacts of computers on our world”. Great teasing for tremendous steps, we forgot to remember, as time shifted so quickly.

dev_internat4_030613

A new journey for the future, or must I say, our now standard life, since industry, energy and engines shifted to information, digits and computers. First there was mechanics, engineering and lots of complicated, tough and sheer materials. Built with hardcore and efforts, industry was a high rise work, human resourced and driven by process, maps and building lines. Hard times for a craft and machinery environment…Some started to think about another way of building the future, tempted by laziness or innovation oriented, there were large tracks for insights. Insights from the new revolution: digits.

dobettercomputering

Digits came from the electronic mindset, given into new materials with new growth opportunities. Digits started to shape skills, things, objects and re-create even up to process and the whole chain of building. Then was born the digital era and the computer invasion. From energy engines to information and computers, throughout 4 pillars like interfaces, algorithms, languages and machines, we totally erased mechanics with digits theory and computer science. The simple scope where “you put, you get” is over by the fact that any input in the web right now open the whole world in a snapshot. Breathless, isn’t it?

613-2832-1-PBWe never anticipated this awesome revolution, and I think even researchers, at that times, didn’t know what kind of issue it could be. They ignored the whole and extraordinary fields of modernity we could then step into. Even education and physiological parts of brain seem today have changed, with a new ongoing learning, where you can get the answers nearly before the questions. Considering the new race for datas, speed, networks and rates, it will stay a main revolution up to the education system where digital shifted the way we learn: online courses, ongoing lessons and wikis, even our brain changed the way it stores information. While we’re able to have in one click a huge mass of knowledge, how long is it useful to store and hold datas in our brain? This is probably in fact the most visible change with our daily life on tablets, smartphones or whatever screen…How could we stand now without computers?
We saw some thrills about the next wave, were objects will contain their own self computer inside and will be able to stand as some “complex self systems” that will deal with humans, with intellection, interactive and time-real conversation. But you already know where is the “off” button, don’t you?

More about “life and computers” :

http://it.toolbox.com/blogs/locutus/life-with-computers-10346

http://www.mylifeiscomputers.net

http://ubiquity.acm.org/article.cfm?id=1217836

http://bhuddametrics.blogspot.fr/2011/12/role-of-computers-in-daily-life.html

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First part of three set, including the changes triggered by the connected world in which we live. We’ll underline there all that is described by “way of doing”, now, considering things we can’t stop and have to cope with.

Did you ever live, the incredible speed of information spreading, as you first have an idea, start to tell to a friend…and what becomes next: the one tells to a friend, who tells to a friend…six degrees later world knows all about it. That shapes what is to be said: living in a connecting world allows us to save time, moments and whole phases in building innovation. You can now make work a huge diversity of people, around the clock, in a single project, getting insights from the best of them, challenging everything from seeds to concrete plan. And it changes the vision we have on anything is possible or not: speed of sourcing, evaluating and throwing an insight, our ability to get information on marketplaces, competitors or competition in a larger view. Branding or modeling prototypes and viewing them in “real” second world (3D, social games, virtual environments…). Thrilling isn’t it. Not at all but a strong opportunity.

And if it’s for us, it’s for competitors, too. Competition keeps us awake (must?), and dangers come faster than ever: from stakeholders to suppliers, or even closer partners, anyone can, without having it in mind, leak on important secrets. And for a time-based competition, connectivity might probably change the game: speed of renewal cycles, defining, correcting and sourcing make markets more demanding on the service level and innovation. Being faced in daily life to digital shift, consumers have to adopt, learn and make them, the opportunities of technology.

In production fields, the reduction of wastes, mistakes or return, driven by a more accurate forecast of volumes, needs and trends go directly on the bottom-line. Engineers can have a close feedback with marketers, for model design, duplication, customization…and on-the-go modifications. That’s an incredible change in the process, always wired, and the ability to evolve, on ongoing periods, and raise the sustainable facet of production: less wastes, less energy, less stress, as it takes part of the whole shipment way of delivering goods or services.

Don’t you know that in poor areas (like described in BOP markets with books like), 7% on the income of poors is dedicated to connectivity expenses, often before cleaning, safety water, health or food…? The only step for isolated zones to be linked, bankable and start a tiny commercial activity is to be…connected. Connectivity changed the way farmers for example, can set their prices for their crop, because they’re connected (e-choupal system) with bid marketplaces and stocks for the raws they have: they can choose quickly to do or not and with who, they are going to deal.

Hold on for the second part and “connectivity effects on resources”. Stay tuned, and meet the following part soon, here…

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We live in a connected world, for sure. Even those who don’t want, won’t escape to changes, they feel, live or suffer. When, how, which ways? Where from, why? New generations can explain because they live in and are confronted to old school and traditional rules, they even sometimes, can’t understand. Codes, habits, rules…How imagine the world in such situations and understand the wealthy mix we can draw benefits from and hold the main direction to sustain the daily life?

I was thinking of writing in last centuries: from stones, to paper, wrting styles and ink, and printers…then digital writing and contents…Such situation meant slow shifts (as we stare technology revolutions go faster and faster), but we will be confronted in a future, where nobody will write anymore, one day…because of the huge invasion of digital supports, we won’t be using pens, stencils and so on, anymore…And at school, nobody will learn writing anymore, because “use” would have disappeared? It’s part of something that hurts me in fact…Living without knowing any letter or figure to write, because keypads or vocal systems would replace them…?

Weird, but not really far from reality…

I started a whole reflection with connectivity effects on “business”…with :

1) the ways it does…:

  • Competition insights, sourcing innovation, ideas or best practices?
  • The Impacts on collaboration and collaborative circles?
  • The way the world is connected and then, how to use marketplaces to reduce time, effort and delay on sourcing information?
  • Sourcing/buying 2.0?
  • Producing with benefits of connected technologies: reducing wastes, errors and returns, thriving simulations
  • Delivering: accuracy, reliance and relevance of supply chain
  • Launching and buzzing: hot to get the word before start…
  • Sales: virtual efficiency, mixed models of distribution (stores and e-business, m-business, social shopping and recommendation…

2) the effects on resources:

  • How to manage resources (people, time, schedules and machines) in a connected world?
  • HR implementation with social networks (pro and personal platforms, dealing with synergies)?
  • New opportunities on live work: always connected, live, home…

3) the outputs/outcomes driven:

  • Loyalty, but reactivity and sensibility: CRM, SRM, CEM…concepts that drive customers motivations and feedback
  • Communities, branding, e-reputation: how to solve the equation of truth and trust?
  • Marketing rules and new ways of improvement: who is the product manager, now?
  • Effects on life cycle of products, brands and relation: shortening delay without throwing the essential

I hope some bright ideas will surge and converge to identify a simple plan and path, to drive new business and companies, in this ocean of opportunities. As we accept opportunities more than threats and open our minds to change the cards and adapt enough our perception and abilities to do so…

First step to come, stay tuned for “the way it does”

 

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It reminds me the pleasure when I read this famous book about “art of war”, according to Chinese philosophy, from Sun Tzu. This masterpiece became as famous as strategic gentles like Porter, Christensen, Chan/Mauborgne and so long, in the art of NOT making war in any case. I as thinking about some quotes and some parts remind me, as I’m surfing along, in the digital cage.

Yes like Tzu said, we have to spend some time to discover and share anything, on social networks, while there is any trust, in the fact that we often know our “friends”, only in virtual life. I know now, virtual life online is supplying more and more details about “friends” (sometimes too much I guess…), and I can think, there is still privacy.

I selected some quotes, that, in my opinion, show some unrevealed faces of social web.

  • “no war can be won in a static behavior”: whatever the position and your investment in the furious waves for web, with agreement or consciousless, you have to express yourself, give an idea of your digital welfare. Yin or Yang, but something. Move, but not too fast or too slow…
  • “war is a skill: no engage without all the reflexion that it needs”: guess everybody wants to make some noise, lot of noise, and make lots of friends on web (and/or life). But what for? give an idea of which goal you score, what aim you follow will make you more accurate and relevant in your expressions and sharing.
  • “…army will be close and team builded, happy for one goal…”: social networks and communities, can give opinion and pressure to lots of modern topics, peacefully of course…aimed in the same direction.
  • “bulk forget about death”: let’s see beyond first sight, to get the essence…death could mean “meaningless, excluded, apart” ; while networking and blogging, nobody cares about being apart, when rules and rites are clearly respected. Nobody wants to exclude no one.
  • “the general must create situations that lead to achievement”: when one launch a discussion or debate, that leads to result and building a collective enhancement.
  • “the masters in art of war, will lead without fight…and win”: know how lead a debate, without any opposition, leveraging each collaboration and answering to words sharing, that means wise behavior.
  • “know enemy and know you too”: guides you to a strong vision in your strengths and weaknesses, works for debate, identify your abilities and know how to withdraw.
  • “what depends on me, I can do it”: answer, send congratulations, thank people…all kind of shapes of participating and animation of debates and communities.
  • “respect laws (lords of war do)”: there are some behavior laws and rules to know. Listen, Stare and Engage. Not too fast…
  • “in art of war, there is no fixed rules. They can change, adapting to context…”: be flexible, but be kind and drive the discussion. No obvious idea, no prejudgment, feel free to be brought wherever you’ve maybe never been. It’s a principle of “bring and pick”, the essence of conversation.
  • “so, we just need few force to make lots of result ; like a rolling stone in a steep slope”: social media is viral, and there so much leverage in using it carefully.

I was really happy to read and consult this book of good sense and harmony quest, by the old gestures of wisdom. Guess, if you’re patient enough, there’s a lot of wisdom to care and get in socializing web and media. That’s why we need each other to complete our facing challenges and interrogations. Gear up collaboration, collaborative rooms and friendness, and let’s use the web as it is: a big disruptive tool reducing the fence, recovering harmony in relations.

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Old TV set is out. Out of 20th century, he passed through revolutions (black&white, digital, HD, 3D…) and got some changes in uses, life and consideration. Started with information, public managed, it opened to others pleasure: entertainment, sports, discovering…Households then were completely hypnotized and caught in kind of dependance, like one said. And then this old device was hottin’, from ugliness to useless and energy consuming. At that time people was talking about “convergence”, the loneliness idea of a wired future, centralized, and started a competition in electronics manufacturers to invent this new TV device: THE screen. Where? How? but the screen. Then households turned their view to web audience…and naturally TV went to the web. People started to move, changed their social practices, became careless about the place and the moment…Mobile, mobility, then TV went to mobile.

While this was going on, facts were there: TV is not the same anymore. And even if the contents were the same, we don’t want to consume them like we did. All the sector from media and television didn’t see the web wave (like lots of sectors anyway…), thought they had to change something…but what? when and how? for who?
It quickly became the great riddle for TV value chain actors. Which contents to acquire, which rights, for what kind of usings, on which platforms and devices, and how long in terms of duration? Over for black Ford T, entering marketing and segmentation, need to make sense to believe that consumers are customers like other: because TV artifacts and rules have always been settled on fidelity, without any CRM management, and with the sole economic: audience = ads = buying intention. Brain available time for ads is not the same anymore, nor same profile and needs.
Trying to put sense into an industry that started revolution after being involved into, I tried to build a working matrix, resuming how behaves now, reflexes about television consuming.

You could be surprised but it is: it’s no talking or thinking about complexity, but really taking the influence of this new “market” of consuming TV. But where is my old housewive?…How does she can handle with such a purpose? That is, several ways of consuming television. And the real battle is not AGAINST other distribution channels, but WITH. Shaping the new landscape of TV means having imagination, beyond household. Where else, in the family, in mobility…? Fair enough, I can find my way because I can find A way of consuming MY TV.

We do and everytime, watching television, not really much more than survey scores generally speaking, but IN A BETTER WAY. That means, we’re able to choose, learn and decide when and where, and for how much time. Famous framework about triple “A” theory (Anytime, Anywhere, Any device) is more than ever, a fact. and that changes the business. We’re not talking about HD or 3D, because it’s “only” quality enhancement, while others are “ways of life”, ways of consuming. Yes of course, according to CES now, where 3D is a star product, we can see that 3D in a certain point of view, can change vision of family entertainment, globalizing services – games, interactive, learning, art, museum experience…-. But changes are there and it’s not really a small pill for the business sector.

How we receive television leads the way we consume: satellite in living room, 3G/4G in mobility, DSL in hotspots places…But the true is that we have to follow the same soaps and movies, wherever we are. And that’s why the real key for television is not really quality, but the triple A model. And what could be a simplistic draw, is in fact, determining:

  • the technology needed (for broadcasters, but for public audience)
  • premium rights to buy in the different program teams of these several network actors (live rights, exclusive, VOD, catchup, web window, first pay tv window, catalog…)
  • equipment and wiring in household and in mobility, adding compatibility for future devices using
  • key competences for media companies: doing broadcasting television has nothing to see or relevant with podcast or web tv streaming or downloading, HDTV made some revolution in several jobs and organizations, like probably 3D will do

It’s the “Rubik’s cube like” for television. Technology is already there, web is stepping like a giant (wiring, services, economy, networks), market is there too, with a huge demand on more and more services and self-learning, convergence and user’s centric functions. Maybe television has an amazing opportunity to catch some added consumers, by convergence and be the central “screen” for all household’s pleasures. My own network, whenever and wherever I want, is my concrete dream now and can be solved…we’re are at the threshold for new experiences. Social TV is taking off, with some events (Social TV Forum Europe), 3D revolution too with recent deals with ESPN, Disney’s, Discovery Channel, TLC, with  CES, à Las Vegas…, and the next big event in London, on May.

Old TV is alone, while everything has changed: but contents and pictures, needs and desires are really there, for a new entertainment world.

Found an interesting source about new tv ideas…get here on agoramedia.

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