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TEDx Talks
Published: 2017-09-18
Source: https://www.youtube.com/watch?v=_uEzSiUWmrw
well most of the concepts that we teach today in our business schools we have learned by observing %HESITATION companies many of these concepts that beat each today as dearly yeah loud by observing company are particularly the automotive up sector that's changing the new lessons we are learning a new concepts that you're building you're learning about observing a new type of company between effort to as the
digital Titans and in particular the kind of person who comes out and manage your beats companies running from these digital pipelines in effort to this person as a as a digital intimate how did this of %HESITATION happen how to become about two following digital like it's and by digital guidance we need companies like Facebook I was on alphabet apple and sent by do at Ali Baba
well how how did this happen how did this come about I think mark and recent captured this up moment pretty Belbin this transmission not good that leadership moved from the old era companies to new era companies and he called it is a phenomenon that software is eating the water many food of code that %HESITATION before what he meant by that was every product or service has
now software embedded in it now many put software into a product or service it just doesn't do a plus but what it does is changes how this product or service behaves it becomes more like and the company itself becomes more like a software company and what that the consequences of that are that no you have to behave and treat of other companies as partners new ecosystem
anymore it to something called ecosystem based a competition just with this act of using software but companies does didn't stop there in addition to adding software they also connected these things arm and put sensors on that and that created this whole farm transformation that we have seen the transmission actually started because these smaller objects this data objects with software and connectivity started producing book loads of
data and that something is that even in the dead beat up all our information about your products and services and market that you start thinking about this data as as a mass no if you look at the %HESITATION the these acid and how do you get value out of this is where digital strategy comes in my digital strategy what we mean is an action plan that
helps you understand the ecosystem and then use the technology to get insights from this data and and compete %HESITATION effectively in fact the actions that you get big could result in the highly even the hive will highly personalized products and services but you do need our marketplace here is where the the Titans men are very handy because the Titans I figured out how to do this
very effectively and in fact they are now creating the multi purpose platforms of the date and they are a threat to companies in every sector for example if you take up all the traditional sectors some of the companies have responded very well and it's worth learning from them to so if you think a company like G. eat GE was threatened by these black Saddam's dental purpose
buttons at a showing up and this bonded with their own version of it bits in effort to his investment in that and the platform itself ass Bendix a company like Ford I was introducing and they've used amounts of sly digital up because a combat boots even agriculture has been impacted John Deere pretty good does something called precision agriculture you know to respond to the threat from
these are digital type things let me say it threat from digital Biden's what I mean by that is they're ending up commoditizing industry after industry listing a simple example of the automotive sector when Google introduced well I am good ought to what happened to us the Copley what this does is that it takes a car may be stuck with the mechanics of the car and changes
the conversation to soft peddle its features but today when you look at a %HESITATION car and it's more about the soft bed connectivity that you're talking about and this happens in software sector every time a new layer of software whose femme they may be layers below it obsolete are commoditized so this is the operating system actually made the conversation about cars more about self if you
choose in fact over a statement a step further be creative lair of service even at Balkh the android auto and the Cox plate and then there pleading glance businesses so isn't commoditizing everything else well beneath it so this is the threat that exists insect after sector now looking at all these moves of god the wounds of what I've done is come up with seven lessons that
one should take away from this in order to be like I I act like a digital arm tightened number one is this notion of a digital customer OB unit in the traditional up a competitive sense many add an extra customer your portfolio this may be pretty result in additional physical assets but today when you add for the digital customer most companies the digital type of the
other customer that information assets I'm perfectly the customer right and provide the right value they will give you a bit up in exchange for the interaction that you have with them and this data is the one that's doing out to be the critical asset the second thing that %HESITATION we learn from observing the digit Titans was this concept called a digital %HESITATION replica well what this
is is that every piece of acid the company %HESITATION house will also have a corresponding of digital version of it so for example if you hop a color before has a car on the street they will have a digital version a bit of a model of the car along with information about the current status of that car so this would mean that not really you need
modelers who understand because the mechanics and so on you also need the gun state do not have to be able to say what the call is actually doing right now so if you think about product recalls as opposed recalling every car now you can recall specific because maintenance as opposed to doing maintenance on a schedule you actually do it based on the reality in this of
particular participating then you can get to before that and deal on it that well while one on one one one of time the next concept of a one and talk about is this notion of consumption all ecosystem so far we have been focused on the production aspect of things the supply chain aspect of things but what the digital type into telling us this look at how
a project a product is being consumed so for example today most people like to hack into products is do it yourself is it doing activations become pretty popular what that does this the main duties a product with a particular idea in mind hope consumers and abusing it runs out the quite different from what you intend now as opposed to trying to redirect them to use of
the value on it instead it's now possible big find out how that actually using it and then after that value so for example if you take the nest thermostat our and you put it out bed notes blossomed to track the fact that customers the connecting it with the LG washing machine all your automatic build log or garage open and someone but what if that you find
that the full one commission all the digital assistant the connected but it always happens to Amazon echo now groovy can look at that and say what we needed to use a product which is just like I was on a couple and they would push now on Google home so it's possible to understand the hollow the network of connections of your product is evolving and then make
sure that your products play a key role in that particular %HESITATION network the next idea that these days the guidance of god as is explore the idea of experimentation are they don't assume that they know of what's going to happen and they don't just launch it before they understand the market of any well so Amazon would at the same time how many experiments going on armed
like no they doing some experiment that he did Amazon co they have a hut drones dropping of stuff right right now or Amazon fresh these this different experiments are known from and then they decide well what product the snow is same goes for if I'm a bit experiments recently to figure out how mobility is going back them and many ideas kymata fit in some with help
from third parties one of my for bass no users to find parking spot incumbent cities with guns everybody bought problem so the new leases they have sort of come up with a solution %HESITATION object to that not the trend which you observed a digital of it %HESITATION digital type incidents concept of farm admissible engines so they're not using our AI artificial intelligence and machine learning techniques
to get a lot out of there our data and then they are using those insights to provide even better products and and services in fact what they've done is they've taken some of the core assets and started provided as a service so if you're big %HESITATION %HESITATION Facebook paper white culture has a service Amazon just announced that they're going to provide a I as the Soviets
most no possible use the engines that these companies have been using in your own %HESITATION settings another consequence of for what they are how it's happening over there is no you can rethink how bad do you want to embed the decisions you have in your design the product already the product is being used best love change the conversation by saying when they added the feature to
the car they send it as an update electronically so it goes %HESITATION every call about an autopilot but it was done %HESITATION up through the %HESITATION intimate violence because down some similarly venue haven't promised car some of the decisions can be made locally so if you want to know how the caller's right has to be whether it's going to be the it's gonna have an economic
or what is not a conflict with Asian all are a sporty version you that's a local decision but if you want a plan that out you can get the information rather traffic baboons assembly sink and redistribute how he made his decisions one of the interesting new products that I saw was this Nike shoe read now you can the vial Nike makes a lot of wonderful decisions
the factory and designs the shoe the decision about how snug it should be remade locally now because as users decide how to change it they can change the smugness of that %HESITATION fit another lesson which which is critical of what some these are business Titans operate simultaneously in multiple interlocked ecosystems so it's not just one thing they do at this at a time they do multiple
things at the same time so if you take a company like Amazon all of Google they are in the media business down there have an arm in the opening system business they are in these multiple businesses and in some businesses that drive it to show that a platform provider in other business is this simply a component provider but no matter what the different roles they play
they bought big in the prophets they get from these multiple it ecosystem so it's not just about focus on one thing but so it is to be present in in month grew up at ecosystem so while these of these possibilities exist one of things that's coming out as a major issue is the data that's coming out of all these sizes and how do you treat this
data not a week goes by where you hear that some company has been hacked the data has been compromised so one has to be cautious about the data %HESITATION one clicks all the other thing that you need to be careful about is the of the use of algorithms of mere using algorithms quite a bit right now and many of these algorithms come up with a decision
ruled that get automated within these are companies of that embedded deeply in these algorithms one should be event of that and be able to audit what other rules that you're putting into the systems and visit a systematic bias that starts creeping into the system and this is a question should be a major %HESITATION our concerns as individuals what you do you I or do I know
the first thing is are you understand that the transmission that are happening right now I would be led by what we had left the goods digital innovators so it's very important for you to follow the digital type ins be able to understand but different moves them making they construct those moves and come up with your own set of %HESITATION lessons lessons learned other works known hundred
