Economy and digital disruption: what is the impact of the digital disruption on our economy, what are the trends, what are the drivers, what are the business models behind the disruption, and how to deal with the digital disruption? see also you tube: https://www.youtube.com/playlist?list=PLqx4oNRow1nrw9p7ffuQyC9AVgl7UIkpK

1. DIGITAL DISRUPTION
ACADEMIC YEAR 2017 2018
ECONOMY

2. digital transformation
• Digital transformation or disruption
→ trends
→ drivers
• Modeling
• How should organizations deal with digital
transformation?
CONTENT

3. A WAKE UP CALL
TRENDS
trends
drivers
models
response

4. trends
DO YOU REMEMBER WHAT HAPPENED WITH THESE COMPANIES?
can you give some
examples of industries
that are
• out of business
• or are threatened
by
• disruption
• digital transformation
The Great Wave off Kanagawa, Katsushika Hokusai

5. trends
PHOTOGRAPHY

6. trends
MUSIC

7. trends
FILM

8. trends
NEWSPAPERS

9. trends
BOOKSHOPS

11. trends
BANK LOAN

12. trends
PAYING CASH
https://www.youtube.com/watch?v=qU8Tn1xvyog

13. trends
SHOPPING

14. trends
GROCERY

16. trends
• generation Z
NEW CUSTOMER

17. trends
BUYING LENS

18. trends
TRAVEL

19. trends
CAR

20. trends
TAXI

21. trends
ALIBABA STORY

22. trends
• please check this video about Jack Ma
MUST SEE:
https://www.youtube.com/watch?v=6SuFGpYQt0E

23. trends
• 95 years
• 685,000 rooms
• 92 countries
• $ 24 billion
• 6 years
• 1 000 000 accomodations
• 190 countries
• $ 13 billion
HILTON GROUP AIRBNB

24. trends
ENERGY

25. trends
• Do you recognize this building?
• Chrysler Building, Manhattan, NY
• represents power
→ car companies
→ oil industry
ARCHETYPE ‘OLD’ BUSINESS

26. trends
• and this building?
• headquarters Apple, Cupertino
ARCHETYPE ‘NEW’ BUSINESS

27. trends
• this is what it really looks like (2017)

28. trends
• and this one?
• new headquarters Amazon, Seattle
• these are the new power bases
ANOTHER EXAMPLE

29. • what dus FAANG stand for?
FAANG

30. trends
• What’s the next business that will be disruptive
according to you? ….
GROUP DISCUSSION

31. DIGITAL DISRUPTION
DRIVERS
trends
drivers
models
response

32. drivers
• What are the underlying causes for this
disruption?
1. …
2. …
3. …
4. …
GROUP DISCUSSION

33. drivers
BUILDING BLOCKS
con-
nected
peer
reviewing
online market
place
new technologies

34. drivers
WAVES OF DIGITAL DISRUPTION
source: digital transformation, Jo Coudron

35. drivers
THE SPEED OF CHANGE
source: digital transformation, Jo Coudron

36. drivers
• technological innovation
→ social networks
→ user friendly apps
→ mobile devices
→ online review systems
DRIVERS OF TRANSFORMATION (DOT’S)

37. drivers
• cost consciousness
→ due to financial crisis
→ world wide economic slow down
DRIVERS

38. drivers
• value shift
→ younger generations think different about concept
→ access > possession (status) *
→ 1 lawn mower for neighborhood
→ Netflix or Spotify sharing with friends..
• sharing economy
DRIVERS

39. drivers
• Wie heeft gehoord over LETSEN?
• acroniem
→ Local
→ Exchange
→ Trading
→ System
• Hoe heet die lokale munt in
→ Kortrijk
→ Gent
→ enz…
SHARING ECONOMY

41. drivers
• growing concern about the climate
DRIVERS

42. drivers
• profit driven
• IP protected
• central management
• impact-driven
• open access, collaboration
• collective management
OLD WAY NEW WAY

43. drivers
SCENARIO

44. drivers
this is not an era of change, but a
change of era (Rotmans, 2014)
PARADIGM SHIFT

45. drivers

46. drivers
• before: monolithic models
→ top down logic
→ only a few people had access to all the information
→ information was controlled & filtered
• now: internet & social media
→ 2 way communication customer & stakeholders
→ conversation management
METAPHOR OF TRANSPARENCY

47. drivers
• traditional business
→ combination of different products & services
• traditional newspaper
→ bundle of information
→ small price
• digital newspaper
→ same offer, but now on pc, tablet, smartphone
→ copy, paste
• but each atomic part has new competitors
METAPHOR OF MONOLITHIC VS. ATOMIC ORGANISATIONS

48. drivers
• breaking news
• in-depth analysis
• trends & lifestyle
• weather
• jobs
• sports
• etc….
WHAT IS THE ALTERNATIVE FOR…

49. drivers
• ‘APPification’
• small companies
→ they do only 1 thing/app
→ on a global scale
→ (almost) for fee
IMPACT SMARTPHONE

50. drivers
• traditional shop
→ more space for products
→ popular
→ profitable
LONG TAIL
• web shop
→ if it exists, you can buy it
→ even small group
customers
→ but worldwide = profitable

51. drivers
• smartphone + app
• anything is on the tip of your fingers
→ swipe
→ click
• example
→ Uber
INSTANT GRATIFICATION

53. drivers
• online banking
• online tax form
• online hotel booking
• online shopping
SELF-SERVICE

54. •
AMAZON GO SHOPPING 2.0
https://www.youtube.com/watch?v=NrmMk1Myrxc

55. drivers
• AWS = amazon web service
• Pinterest, air BnB, Spotify
CLOUD-COMPUTING

56. https://www.youtube.com/watch?v=XZmGGAbHqa0

57. GOOGLE DATA CENTER BELGIE

58. GHLIN

59. drivers
• before: experts
• now all the
intelligence is in
your pocket
METAPHOR GATEKEEPER

60. drivers
• article in magazine about a city trip?
→ sponsored?
• opinion
→ friends Facebook
→ TripAdvisor
→ Blog *
WHAT DO YOU PREFER?

61. drivers
THE NETWORK WINS
https://www.youtube.com/watch?v=zntukv0MvpI

62. drivers
• fear
→ ‘off the network’
→ no wifi
• at ease when
→ full battery
→ five bars
• constantly sharing
→ we feed the network
GEN Z = EXTREMELY CONNECTED

63. MASLOW

64. MASLOW 2.0

65. drivers
CROSSMEDIA

66. drivers

67. drivers
• apps location based
→ weather apps
→ traffic apps
→ restaurant apps
→ tinder….
THE FUTURE IS MOBILE

68. • we don’t talk so much to each other
• examples
→ waiting for a job interview
→ in a (boring) meeting
→ nice & cozy at home
→ with friends on a restaurant
DISADVANTAGES (THE DARK SIDE)

70. drivers
CONCEPT : VUCA
source: Peter Hinssen

71. drivers
• gamification
• internet of things
• wearables
• 3D printing
• quantified self
• robotics
• drones
• big data
• monitoring
MORE STUFF TO COME

72. • add the right product name
• google …..
• Amazon ….
• Apple ….
VIRTUAL ASSISTANTS

73. GOOGLE HOME
https://www.youtube.com/watch?v=5bYSX2C4aWc

74. AMAZON

75. • Google pixel earbuds
TRANSLATION

76. drivers
3D REVOLUTION

77. drivers

78. drivers

79. drivers
• example Manhattan, NY
BIG DATA

80. • possibility to predict consumer behavior
• and tailored advertising
• machine learning & AI
BIG DATA

81. • Twitter can predict box office revenues from
films, based on user experience
• Google can predict very precisely where and
when a flue epidemic will occur
• Shazam
BIG DATA: PREDICTIVE ANALYSIS

83. drivers

84. drivers

85. drivers
https://www.youtube.com/watch?v=b9nDPWaOK4g

86. DIGITAL DISRUPTION
BUSINESS MODELS
trends
drivers
models
response

87. business models
• deeleconomie
CONCEPT SHARE ECONOMY

88. business models
• so you can bypass an entire business
DEFINITION

89. INFOGRAPHIC

90. business models
• centralized
→ client server model
→ only 1 node
→ you always need to pass
the center
• decentralized
→ you can bypass the center
→ several nodes
• distributed
→ no nodes anymore
• Question: can you apply
this model to business models?
NETWORK TERMINOLOGY

91. business models
• centralized
→ Mc Donalds decides
→ Bpost
• decentralized
→ Sapa = aluminum company
→ Colruyt group
→ dreambaby
• distributed (P2P)
→ Wikipedia
→ Wikispeed *
→ AirBnB
→ Tapazz (car rental)
BUSINESS TERMINOLOGY

92. business models
• reality = hybrid models
→ P2P
→ centralized
• AirBNB
→ takes a percentage
• Uber
→ decides price strategy
REALITY = HYBRID MODEL

93. business models
• flagships
→ Google
→ Facebook
→ Twitter
→ Instagram
• where do they get the money?
→ advertising
• dus indirect betaal je wel een prijs
→ wie betaalt finaal die advertising?
→ en wat geef je vrij in ruil voor die google info?
1) FREE MODEL

94. ²
• there are also some disadvantages
to the system of share economy
→ status as self-employed person
→ call centers, chatrooms
→ week-end work
→ evening shifts
• so a much more flexibility is
expected…
A CRITICAL NOTE

95. business models
BUSINESS MODEL CANVAS GOOGLE

96. business models

97. business models
• what is the concept of
this model
→ free
→ premium
• examples?
→ …..
2) FREEMIUM MODEL

98. business models

99. business models
• Music
→ you don’t buy CD’s
→ you ‘rent’ streaming
music
→ Spotify
→ Apple music
→ Deezer
• video’s
→ netflix
• data
→ drop box
• software
→ office 365
3) MEMBERSHIP MODEL

100. business models

101. business models

102. business models
• social selling
• affiliate marketing
→ bloggers
4) AFFILIATE MARKETING

104. https://www.youtube.com/watch?v=E3HkfhTnvZ8

105. business models
MODEL AFFILIATE MARKETING

106. business models
• concept shared ledger
→ virtual
→ decentralized
→ bookkeeping system
• examples
→ bitcoin 
→ but in the near future
→ mortgages
→ passports
→ gun licenses
5) BLOCK CHAIN

107. https://www.youtube.com/watch?v=pLv4toxtBsc&t=13s

108. • meerdere modellen
→ pure sponsoring
→ iets in return krijgen
• model zoals Wikipedia
6) CROWDFUNDING

110. • this is a new business model, but not really
inspired by the digital transformation, but
anyhow, quite interesting:
7 CIRCULAR ECONOMY

111. CASE RENEWI

113. DIGITAL DISRUPTION
HOW TO RESPOND?
trends
drivers
models
response

114. how to deal with it?
source: Digital transformation, Jo Coudron (book, you tube)

115. how to deal with it?
• digital disruption is real
• expect a smack in the face
A SMACK IN THE FACE

116. how to deal with it?
• who is going to be your
→ uber
→ airbnb
→ Netflix
→ zalando
→ tesla
→ …
A SMACK IN THE FACE

117. how to deal with it?
CREATE YOUR OWN DIGITAL TRANSFORMATION VISION
https://www.youtube.com/watch?v=8wGq0e_n3n4
source: digital transformation, Jo Coudron

118. how to deal with it?
CREATE DIGITAL LEADERSHIP
source: digital transformation, Jo Coudron

119. how to deal with it?
• score your leadership team on active usage and or
understanding of new technologies
• if the majority of leadership is out,
the company is out ….
LEADERSHIP ASSESSMENT
CEO sales mkt HR Fin prod. R&D ….
Facebook x x
twitter x x
LinkedIn x x x x x
you tube x x x
snap chat x
Instagram x
…
you can also apply this
to your university
source: digital transformation, Jo Coudron

120. • some colleagues are still digital dinosaurs…
DIGITAL DINOSAUR

121. how to deal with it?
TRANSFORM ORGANIZATION PHILOSOPHY
source: digital transformation, Jo Coudron

122. how to deal with it?
CHANGE OF CULTURE
source: digital transformation, Jo Coudron

123. how to deal with it?

125. OMNICHANNEL

126. • Get rid of the absurdity of the concept
‘opening hours’
• the consumer wants everything
→ here
→ now
OPENING HOURS?

127. how to deal with it?

128. how to deal with it?
• rather than thinking about sharing markets,
we need to think about creating markets!
SHARING OR CREATING?

129. RED SEA & BLUE OCEAN

130. how to deal with it?
• traditional structures
→ procedures
→ rules
→ budgets
• speed?
→ slow
• goal
→ keep business going
CLASSIC INNOVATION

131. how to deal with it?
• project teams
→ small
→ dedicated
• speed?
→ agility
→ flexibility
• think ‘out of the box’
• can even be threat traditional activities
→ possible cannibalization
• example
→ Google
NEW INNOVATION

132. how to deal with it?

133. how to deal with it?
• example : Microsoft employees
• company: between 10h - 14h and at home (skype business + office 365 +…)
NEW WORLD OF WORK

134. how to deal with it?
BUILD THE TRANSFORMATION FLEET

135. how to deal with it?
• study with humans
→ max. of about 150 people
→ if more people
→ more structures
→ more rules (laws)
→ more tools
→ more processes
ROBIN DUNBAR STUDY

136. how to deal with it?
• make an educated guess….
DARWIN

137. how to deal with it?
• the customer always decides
• all things you do must start from a superior
experience
• from now on, you are an agile & flexible company
• you live in a world of constant uncertainty, deal
with it
• always play on the offense instead of the defense
• don’t be afraid to cannibalize your own business
• never, ever, disrespect new or small players
CHANGE THE CULTURE

138. how to deal with it?
• how can we explain the success of Uber?
THE CUSTOMER ALWAYS DECIDES

139. how to deal with it?
ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE

140. how to deal with it?
• customer centric
FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY

141. how to deal with it?
• only certainty =….
YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY

142. how to deal with it?
ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE

143. how to deal with it?
NEVER EVER DISRESPECT NEW OR SMALL PLAYERS

144. how to deal with it?
BALANCE
source: digital transformation, Jo Coudron

145. • traditional business, but they are investing in the
market of batteries
• they make money, but Tesla not yet....
EXAMPLE: UMICORE

146. how to deal with it?
TAKE HOME MESSAGE
source: digital transformation, Jo Coudron

147. QUESTIONS?
THANK YOU FOR LISTENING