1 ELIMINATING THE BLIND SPOT THE FUTURE IS NOW - GAME ON April
2, 2012
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2 ELIMINATING THE BLIND SPOT Impact Of Technology And
Innovation On Business Models
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3 in your hand Travel to Vienna to hear Mozart Visit a concert
hall or on the run or in stereo Enabled at home in the car Catch it
THE MUSIC INDUSTRY MARKETPLACE WHY
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4 4 LETS ZOOM OUT EVEN FURTHER WHY
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5 ~40,000- 60,000 years ago 3,500 B.C. 1700
14551800190019502000 History of Innovation Business Model NATIONAL
Wal-Mart / Frito-Lay MULTI-NATIONAL Frito-Lay / Sabritas / P &
G REGIONAL A&P Grocery Store / Coke Distributor Farmer to
MarketGrocery Store LOCAL IMPACT OF TECHNOLOGY WHY
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6 The Journey Technology explosion Mainframe Personal Networked
Computing - Internet IT Everywhere ACCELERATED IMPACT OF IT ON
COMMERCE IN JUST 50 YEARS WHY
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7 ~40,000- 60,000 years ago 3,500 B.C. 17001455180019001950
2012 History of Innovation Physical Electronic Technology /
Innovation Business Model Global Logistics Virtual Business Video
Game GLOBAL 2000 IMPACT OF TECHNOLOGY WHY
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8 IT LEADERSHIP CHANGING THE DIALOGUE Shared / Aligned Mental
Models Marketplace Model Business Model Systems Model Organization
Model WHY WHAT HOW WHO CHANGING THE DIALOGUE IT LEADERSHIP Requires
a Management Framework
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Customer Power Price Transparency Leverage the Brand Compete on
Value Price at Customer Level Speed and Innovation Operationally
Excellent Flexible Cost Structures Its Not About Centralization or
Decentralization Anymore Margin Erosion Revenue Cost Segment of One
Innovation Synergy/Collaboration/ Operational Excellence Playing
the Game Changing the Game Global Logistics Modern 21 st Century
Models Virtual Business Video Game /LOCAL NATIONAL/ MULTI-NATIONAL
GLOBAL/REGIONAL/ Customers Business Model Matters 9 Its About AND,
AND, ANDAND AND BUSINESS MODEL WHY
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10 Why companies fail They DIDNT see it coming They saw it
coming but DIDNT deal with it They saw it coming but DONT know how
to deal with it They saw it coming but couldnt deal with it
COMPANIES ARE STRUGGLING Game On WHY
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11 Why companies fail SHOULD WE CHANGE? WHY
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20 TH CENTURY BUSINESS MODEL 12 Decentralized Store Centric The
Home Depot Centralized Supply Centric Walmart WHAT
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13 Both Supply Chain Centric AND Store Centric 21 ST CENTURY
BUSINESS MODEL WHAT
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14 IMPACT OF TECHNOLOGY ON FRITO-LAYS BUSINESS MODEL WHAT
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15 FRITO-LAY 1930s 1970s WHAT
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16 LOCAL SALES & MARKETING LOCAL SUPPLY CHAIN EVERY
RETAILER HAD THE SAME BUSINESS MODEL WHAT
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17 ENABLED BY MAINFRAME TECHNOLOGY WALMART MODEL 1980s FIRST
MAJOR CENTRALIZED SUPPLY CHAIN WHAT
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18 ENABLED BY MAINFRAME TECHNOLOGY WALMART MODEL 1980s FIRST
MAJOR CENTRALIZED SUPPLY CHAIN WHAT
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19 LOCAL SALES & MARKETING NATIONAL SUPPLY CHAIN WALMART
CHANGES THE GAME FOR FRITO-LAY WHAT
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20 REGIONAL SUPPLY CHAIN LOCAL SALES & MARKETING EVERY
RETAILER HAD A DIFFERENT BUSINESS WHAT
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NATIONAL SUPPLY CHAINREGIONAL SUPPLY CHAINLOCAL SUPPLY CHAIN 21
Operations Leverage Customer Route Product/Price Mfg Plant...
1,000s of Variations Customer Segmentation AND Regionalized Model
Centralized Model Purchasing Manufacturing Distribution EVERY
RETAILER HAD A DIFFERENT BUSINESS MODEL ADDING TO THE COMPLEXITY OF
THEIR SUPPLIERS HOW
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~40,000- 60,000 years ago 3,500 B.C. 17001455180019001950
History of Innovation Physical Electronic Technology / Innovation
Business Model Global Logistics Virtual Business Video Game GLOBAL
2000 IMPACT OF TECHNOLOGY WHY 20222012 ? 22
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The Four Horsemen of Dominant Design Robert B. Carter Executive
Vice President, Information Services Chief Information Officer,
FedEx Corporation 23
~40,000- 60,000 years ago 3,500 B.C. 17001455180019001950
History of Innovation Technology / Innovation Business Model 2000
IMPACT OF TECHNOLOGY WHY 20222012 ? ? 31
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21 st Century Economic System in Motion WHAT Tracking # April
3rd Order iPad 32
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~40,000-60,000 years ago 3,500 B.C. 17001455180019001950
History of Innovation Technology / Innovation Business Model 2000
IMPACT OF TECHNOLOGY WHY 20222012 33
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New Business Models Require New Systems Models HOW 34 Event
Enabled In Motion, In Memory, In Models
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35 The Future is Now - Game On The Chief Information Officer is
too limiting Needs to be Chief Integration Officer CIO has a
critical leadership role CHANGING THE DIALOGUE IT LEADERSHIP
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36 Do I really need a CIO or can I just outsource everything?
Very few big transformational activities have ever worked. No one
takes three years to do anything. The world is moving too fast.
Wont cloud computing. Eliminate the need for an IT department. Why
CIOs Are Last Among Equals Wall Street Journal May 24, 2010 Current
Dialogue is Going in the Wrong Direction THE JOURNEY Weve Got to
Eliminate the
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37 IT LEADERSHIP CHANGING THE DIALOGUE Shared / Aligned Mental
Models Marketplace Model Business Model Systems Model Organization
Model WHY WHAT HOW WHO CHANGING THE DIALOGUE IT LEADERSHIP Requires
a Management Framework
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38 Customers Matter Segment of One Net Promoter Physical BANK
AND BRANCHES BRANCH CENTRIC WITH MOBILE TECHNOLOGY BANK Electronic
BUSINESS MODEL TECHNOLOGY / INNOVATION MainframesInterstate Highway
TelephoneAutomobile Telegraph Distributed Computing Air Travel
Horse & Buggy BRANCH CENTRIC WITH BASIC TECHNOLOGY BUSINESS
MODEL BANKING EXAMPLE WHY
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39 CURRENT STATE CUSTOMER Data Isolated views for products
& services from different channels Data Wealth Comm. Lending
Retail Lending DepositDerivatives Credit Cards Securities Lending
Prime Brokerage Insurance Corp Lending Fixed Income Equity WHAT
Capital MarketsRetail BankPrivate Bank Net Detractor Anonymous
Game
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40 DIGITAL PERSONAL BANKER WHAT Any Channel, Any Where, Any
Time CustomerFinancial Advisor Integration Bus business rules
Digital Personal Banker Event-Enabled Personal Digital Banker
Framework s Blue Prints
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41 PHYSICAL / ELECTRONIC FINANCIAL SERVICES HOW Event-Enabled
Personal Digital Banker Financial Advisor Customer
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42 DIGITAL PERSONAL BANKER HOW Any Channel, Any Where, Any Time
Financial AdvisorCustomer Integration Bus Event-Enabled Personal
Digital Banker
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43 DIGITAL PERSONAL BANKER HOW Any Channel, Any Where, Any Time
Financial Advisor Integration Bus Customer Event-Enabled Personal
Digital Banker This is the Durable Asset
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44 BUILD TO A MODERN FUTURE STATE BUSINESS PROCESS AND
TECHNOLOGY ARCHITECTURE Embracing Heterogeneity Architectural
Elevation BOM & Pre-Fabricated Components Systems Architecture
Wiring Diagrams Frameworks Blue Prints Spec Home Functional Systems
Customer SYSTEMS MODEL MODERN 21 ST CENTURY HOW
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45 THE IT LEADERSHIP PROFILE Critical Leadership Competencies
for Successful Transformation Setting the Agenda Building a Great
Team Consistently Delivering Build Main Build Scorecard LEADERSHIP
MATTERS WHO
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46 A MULTI-YEAR JOURNEY WHEN GAME ON Building the Multi-Year
Plan The Turn Hitting Stride Accelerating FY12 Q2 FY12 Q3 FY11 Q4
FY11 Q3 FY13 Q1 FY12 Q1 FY13 Q2 FY14 Q1 FY12 Q4 FY13 Q3 FY14 Q4
Sturdy Operating Mechanisms Up and Running Locking on a New Course
Delivering the New Way Agility Sustainability This is The Right
Fight
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47 For a copy of this presentation or to order Blind Spot
please visit www.thefeldgroupinstitute.com