History is a great teacher. What do the Agricultural & Industrial Revolution teach us about the Digital Revolution. How will business models and values change and what must we do to adapt to a step change in the way we work and consume products and resources. Life as a Service talks about this and a lot more as we move swiftly from the era of "stack him high price em' low" to the experience and collaborative economy which are expected to cross $100Bn by 2016. Who is adopting these new philosophies and what must be done to avoid the plague of commoditization or irrelevance facing so many firms in so many industries.
1. LIFE AS A SERVICE
Aman Narain
November 2014
@amanwhotweets
&
2. Revolution or Evolution?
THE AGRICULTURAL REVOLUTION
17th CENTURY
UK
FOOD
TRADE
SUBSISTENCE
WHEN
WHERE
WHAT
CONSUMPTION
PATTERN:
CODEBLU.COM / AMAN NARAIN 2014
3. What we learned from
THE INDUSTRIAL REVOLUTION
WHERE
WHEN
WHAT
CONSUMPTION
PATTERN:
Phase I Phase II
UK, US, DE, JP
19th CENTURY
ENERGY
RESOURCES
MASS PRODUCTION
HYPER
UK
18th CENTURY
TEXTILE
TRANSPORT
EFFICIENCY
SURPLUS
CODEBLU.COM / AMAN NARAIN 2014
4. We are at the end of the beginning of
THE DIGITAL REVOLUTION
WHERE
WHEN
WHAT
CONSUMPTION
PATTERN:
US + GLOCAL
21th CENTURY
MAKER
MOVEMENT
CRYPTO
CURRENCIES
COLLABORATIVE
US
20th CENTURY
PROCESSING
POWER
SOFTWARE/HARD
WARE
HYPER
CODEBLU.COM / AMAN NARAIN 2014
Phase I Phase II
5. With new realities created by a value shift
IN WHAT CUSTOMERS EXPECT
Transparency
Participation
Networked
Governance
Do-it-
Ourselves
Collaboration
Speed
More
Afflictive
Source : J. Heimans: What new power looks like
Fickle
CODEBLU.COM / AMAN NARAIN 2014
6. A Revolution powered by
TECHNOLOGY STANDARDS
Source : John Maeda, WSJ: 25 Dec, 2012
CODEBLU.COM / AMAN NARAIN 2014
7. A Revolution powered by
TECHNOLOGY INNOVATION
BIG DATA
CLOUD
LOW COST
HIGH FIDELITY
INTERNET OF THINGS
CODEBLU.COM / AMAN NARAIN 2014
8. A Revolution powered by
PLUNGING TECHNOLOGY COST
Average Global
Smartphone
Pricing Trends
Global Bandwidth
Cost Trends
Global Storage
Cost Trends
Source : @KPCB CODEBLU.COM / AMAN NARAIN 2014
9. The Digital Revolution is forcing a shift from
PRODUCT TO CUSTOMER CENTRIC
PRODUCT
PRICE
PROMOTION
PLACE
NEW POWER
MASS CUSTOMIZED
INCREASE
RESERVATION PRICE
DEMAND DRIVEN
GLOCAL
OLD POWER
MASS PRODUCED
LOW PRICE HIGH
VOLUME
SUPPLY DRIVEN
LOCAL
“
The difference is
due entirely to
the “how” and not
the “what,” which
the customer is
willing to pay
more for.
”
Niraj Dawar
Author TILT
CODEBLU.COM / AMAN NARAIN 2014
10. Most companies are tinkering not transforming
BUSINESS MODELS
(e.g. Banking Industry)
Playground for banks
Source : A.T. Kearney analysis
Degree of Disruption
Organization
and
governance
realignment
Price and
revenue
model
Culture and
people
Big data and
systems
integration
Straight –
through
processing
Seamless
channel
integration
Branch
restructuring
PFM
tool
Wallet
solution
Video
Advisory
App
Suite
CODEBLU.COM / AMAN NARAIN 2014
11. Some companies are taking the plunge and
offering LIFE AS A SERVICE
“Forward looking
companies will redefine
themselves and move
from being just car and
truck manufacturers to
become personal-mobility
companies”
“We are no longer sell
light bulbs we are in the
business of offering
lighting as a service”
Meike De Schepper
Phillips
Bill Ford
Ford Motor Company
CODEBLU.COM / AMAN NARAIN 2014
12. LaaS companies are pivoting to
NEW MODELS & NEW VALUES
Source : Jeremy Heimans: What new power looks like
LaaS
Obama Campaign Kickstarter
LinkedIn
Obama in Office
Apple
The Economist Patagonia
OLD POWER VALUES NEW POWER VALUES
OLD POWER MODEL NEW POWER MODEL
XPriz
e
Huff Post
Wikipedia
Bitcoin
Nobel Prize Hilary’08 Guardian
IRS
Monsanto
NEA
Unilever
NRA
Google
Facebook
CODEBLU.COM / AMAN NARAIN 2014
13. LaaS firm are innovating around the
AXIS’ OF DISRUPTION
COMPLEX
SIMPLE
BUNDLED
CHOICE
UNBUNDLED
EXPERIENCE
SECRECY
TRUST
PRIVACY
POST PAID
PRICING
SUBSCRIPTION
INFORMATION
DATA
INSIGHT
OLD POWER MODEL
NEW POWER MODEL
14. LaaS firm are innovating around the
AXIS’ OF DISRUPTION
LOYALTY
PRODUCTS
CODEBLU.COM / AMAN NARAIN 2014
OLD POWER MODEL
INTERMEDIATES
MARKETING DISTRIBUTION SEGMENTATION
NEW POWER MODEL
DIRECT
CAMPAIGNS
COMMUNITY
WALLET
KLOUT
TENURE
USAGE
MASS PRODUCE
MASS CUSTOMIZE
15. OLD POWER VALUES NEW POWER VALUES
HELD BY FEW
Source : Jeremy Heimans: What new power looks like
MADE BY MANY
DOWNLOADS UPLOADS
COMMANDS SHARES
LEADER-DRIVEN PEER-DRIVEN
CLOSED OPEN
CODEBLU.COM / AMAN NARAIN 2014
16. Why do you want to be a
LaaS COMPANY
AVOID COMMODITIZATION
EMPOWERED STAFF
SUSTAIN PROFITABILITY
NEW REVENUE SOURCES
SAVE THE PLANET
1
2
3
4
5
Source :Graphic by Vladimir Mirkovic, http://bit.ly/ColEcoDay
CODEBLU.COM / AMAN NARAIN 2014
ALL STAGES LED TO WAR
AGRO - CROP ROTATION / FERTILIZER / COLONIAL EXPANSION
SURPLUS PRODUCTIVITY OF ONE HAS SPURNED THE OTHER AND WAR
ALL STAGES LED TO WAR
AGRO - CROP ROTATION / FERTILIZER / COLONIAL EXPANSION
SURPLUS PRODUCTIVITY OF ONE HAS SPURNED THE OTHER
SATYA NADELLA FOCUS ON PRODUCTIVITY IS POWERFUL
UK JOKE JONY IVE TIM BERNERS LEE
OWNERSHIP HAS CHANGED FROM
AS WE MOVED FROM SUBSISTENCE TO SURPLUS TO HYPER CONSUMPTION NOW COLLABORATIVE
word of mouth always been there
unbundling for 3 (flights / car insurance)-----choice (mass customization)
Standards > UX / APIs
GIVE ONE DOLLAR SHAVING CLUB
UPSTREAM TO DOWNSTREAM SHOW R&D ETC VS ACQUISITION
culture can be in a part of the company does not have to be the whole company yet
culture can be in a part of the company does not have to be the whole company yet