The Death of Big Business

(As We Know It)

How Big Business Used to Work

Then This Happened

Exponential Innovation

Exponential Innovation is hard to predict

Input Becomes Unstable

Tesla was able to leapfrog by utilizing laptop battery

technology in their electrical cars

Material Innovation is no longer a 10% improvement year

over year

Everyone can produce

And demand is no longer

a function of marketing budget

Next Generation of Consumers don’t care about ownership

VS

A well-known car company recently lost $600m, because

social media changed demand for several of their brands in

ways their long-term planning could not foresee.

Both sides of the equation have

changed radically

How Big Business Used to Work

? ?

The Result

How did we end up here?

What Startups Do

What Large Companies Do

Why?

Optimizing for cost, not change

The World Around ERP

...and the Apple App Store didn’t exist in 2007

There are 1.2 million apps in Apple’s App store,

with $20 billion paid to developers.....

Millennials will dominate

the workforce

Social media pervasive in our lives

Soon the whole world will have mobile

Netsuite

Salesforce.com

Workday

A network approach rather than a single database

VS

A New Way to do Business

25 Fortune 500 size customers in 4 years and more

than 500,000 suppliers connected

Network Effects in Business

So what should you do?

Invest in capability to change

Strategic & Tactical

Consolidate your buying power

Be ready to be a new business

every 5 years

Thank you!