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Transformation
or Transition
Paul Shetler
August 2017
The Internet marketplace
is red in tooth and claw.
paulshetler.com
Disruptors don’t
respect your
strategy or business
model
paulshetler.com
“Your margin is my
opportunity.”
Jeff Bezos, CEO Amazon
paulshetler.com
Digital competition is
turning products into
services
paulshetler.com
Digitisation shifts
from intangibles to
things
paulshetler.com
And can turn
anything into a
service
paulshetler.com
Everything
becomes
disposable
paulshetler.com
Power has
shifted to the
consumer
paulshetler.com
Music
Spotify
paulshetler.com
Taxis
Uber
paulshetler.com
Video
Netflix
paulshetler.com
Software
Salesforce
paulshetler.com
Amazon Fresh is
their Waterloo.
John Mackey, CEO Whole Foods, 2015
paulshetler.com
2017/ Amazon
buys Whole Foods
paulshetler.com
“We have stores, and
consumers are going to
return, particularly when
they buy apparel online”
- Terry Lundgren, CEO Macy’s, 2016
paulshetler.com
Our vision is to be earth’s most
customer-centric company: to
build a place where people can
come to find and discover
anything they might want to
buy online. Amazon
paulshetler.com
paulshetler.com
Surprise!
You are now competing
with digital services
companies.
paulshetler.com
paulshetler.com
You need to act as a
digital services
company.
Insource your
core business.
paulshetler.com
You don’t have
another 26 years of
easy growth.
paulshetler.com
paulshetler.com
The Iron Law
of Bureaucracy
paulshetler.com
Deskilled workforce
paulshetler.com
The Square
of Despair
paulshetler.com
Let’s get some snake oil
out of the way quickly…
paulshetler.com
Outsourcing
innovation via
“Innovation studios”
and “labs”
paulshetler.com
Hackathons and
other design theatre
paulshetler.com
Front end lipstick
paulshetler.com
Incrementalism
or “evolution”
paulshetler.com
Rip ’n replace
paulshetler.com
Two-speed or
“bi-modal” IT
paulshetler.com
Digital cultism - and
‘Agile everywhere!’
paulshetler.com
So what does work?
paulshetler.com
Political will to
make the change
paulshetler.com
Not just a new
channel:
New products for
new markets
paulshetler.com
“The product is the
service is the
marketing.”
- Russell Davies
paulshetler.com
Radical upskilling
paulshetler.com
A clear vision that goes
deep into the business
paulshetler.com
Services
StrategyandDesign
Notifications
Digital
Channels API
Third
party
Services/
Data API
Automated Back Office
(Straight-through processing)
Exceptions only
Service
Teams
Real time
reporting and
analytics
Digital Platforms / Disposable IT
(API, Commercial Offering)
Data (exceptions, drop-offs, patterns, volumes)
Digital architecture
Mail, phone, shopfront
product
Automate
Everything
paulshetler.com
Measure and act on
customer satisfaction
in realtime
paulshetler.com
Dismantling the
Square of Despair
paulshetler.com
Drip-feed Funding
paulshetler.com
Procurement in
days, not months
paulshetler.com
Fit the governance to
the problem
and method
paulshetler.com
Know when to build,
when to buy, and when
to use open source
paulshetler.com
End the digital / IT /
product split
paulshetler.com
“You may not be interested
in competition, but
competition is interested in
you.”
paulshetler.com

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