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Technology
Reconnaissance:
A new step for Continuity
Management
Matt Doernhoefer, CBCP
10/7/2014
2 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Confluence of concepts
Why BCPs?
Technology
PeopleProcess
Continuity
Professionals
Process
PeopleTechnology
IMPACT
3 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Death of an empire
A little history:
1985 First store opened
1989 Enters NYSE
1994 Bought by Viacom for $8.4B
1997 Return to profitability
2004 Goes online
2010 Bankruptcy filing warnings
2013 Last store closes
4 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
The BIA
Is your most powerful tool
• Identifies impact to business
• Catalogues the process lifecycle
• Planning for the new disaster
5 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Could it have been saved?
Saving Blockbuster
Process Problems Process Failure Business Failure
Buying videos – High Impact rating
Packaging videos – High Impact rating
Renting videos – Very High impact rating
30 Second BIA
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Could it have been saved?
Saving Blockbuster (cont.)
Process Problems Process Failure Business Failure
Buying videos – High Impact rating
Packaging videos – High Impact rating
Renting videos – Very High impact rating
30 Second BIA
Netflix undercut acquisition costs
Netflix undercut packaging costs
Netflix undercut distribution costs
Mission Kill is just as effective as Catastrophic Kill
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New business models
Changing the game
Understanding new concepts – Online commerce
Recognizing new paradigms – Streaming as delivery
Agility = Resilience
Netflix’s secret
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What do I get? Why should I do this?
Yeah smart guy, why should I?
Forward thinking: Breaking our
reputation of reaction
Competitive Edge: This is a
competitive advantage
Added Value: We can bring more
value to the business
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Added value?
• Securing (y)our future
• Ensuring Business Continuity
• Driving new business
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New TechnologyNew Opportunity
Do Nothing: Accept the risk the new
tech provides, take no action
Monitor: Inform management of the
tech and its potential impacts
Acquire: Bring in/Fund new tech
research with a sole-source acquisition
on the tech
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Taking this upstairs
Use the following:
• Approach the CIO/CTO – Here are some disruptive informational technologies
• Approach the CFO – Here are the financial impacts of up and coming techs
• Approach R&D – Replacements in these techs can impact our processes
• Approach Strategic Planning – Here are technologies that can impact us in the
next 2-3 years
12 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
All roads lead back here
Back to the BIA
Technology
PeopleProcess
Continuity
Professionals
Process
PeopleTechnology
IMPACT
Technology
Reconnaissance
14 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Generic life cycle
Product X
Units
sold
Time since launch
Innovation Growth Maturity Decline
Early
Adopter
(FanX?)
Acceptor
Hesitator
Didn’t
want to
pay for it
15 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Speeding up overall
Technological Progress
0
100
200
300
400
500
600
Th
ou
san
ds
Patent Applications since 1993
Patent Applications
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Next gen. life cycle
Product X – Now
Innovation Growth MaturityDecline
Units
sold
Time since launch
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What’s that?
Market Shift?
• Incredibly fast changing environment
•
Market Share today
Nokia RIM iPhone/Android
• Market Share in 2007:
50%
• Market Share in 2009:
41.6%
• Market Share in 2013:
94%
Nokia RIM iPhone/Android
• Market Share in 2012:
3.7%
• Net market cap loss:
85%
• Market Share in 2013:
2.7%
• Net market cap loss:
90%
• Market Share in 2013:
94%
18 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
How long do I have?
• VHS – DVD - Streaming
• Nokia – Blackberry – iPhone/Android
VHS DVD Streaming
Nokia RIM iPhone/Android
1976- 2005 1995 - 2005 2011 - Present
Total elapsed time: 10 years
Peak: 2007 Peak: 2009 Peak: 2013
Total elapsed time: 6 years
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Creative destruction at work
Completed Market Shifts
Source:
Note:
0
50
100
150
200
250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Mil
lio
ns
DVD Streaming
Quarterly Report
Netflix Contributing Revenue
So what do we do?
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Be the man on the wall
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Confluence of concepts
Why BCPs?
Technology
PeopleProcess
Continuity
Professionals
Process
PeopleTechnology
IMPACT
23 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Looking for the icebergIts out there…
Be Aware: Technology is moving faster.
Daily updates are happening
Be Open Minded: Just like a Black
Swan, any technology can be a threat
Be Bold: When in doubt, ask. You don’t
have to understand everything, just what
pertains. Others can help
24 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Taking action now
1
2
3
Pull Down the BIA
Our critical tool… use
accordingly
Read the News
Knowledge is power… use it
wisely
Gut Check!
Does it make the hair on the
back of your neck stand up?
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Forest, trees, and mountains
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Resurgence of an empire
One Last Story:
1991- 1993 $16B in Losses
1997 Develops supercomputer to defeat chess champion
2001 Creates world's first transistors out of carbon nanotubes
2007 Developed 38,000 patents since 1993
2011 Natural language computer defeats Jeopardy Champion
2013 Net income $16B
27 Footer Copyright © 2014 Deloitte Development LLC. All rights reserved.
Questions?
Contact information:
Matt Doernhoefer
Phone: 571-246-1274
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities.
DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see
www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte
LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Copyright © 2014 Deloitte Development LLC. All rights reserved.
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Member of Deloitte Touche Tohmatsu Limited
Attributions:
"IBM logo" by Paul Rand [1] - Captured from the front page of the IBM Notice of 2007 Annual
Meeting and Proxy Statement.. Licensed under Public domain via Wikimedia Commons -
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Digital Camera image: Kodak/Sasson