Welcome to Leading
through Digital
Disruption
Topic: Leading in Digital Disruption
Tutor: Matilde D’Amelio
[email protected]
Today Agenda
Disruption and Digital Disruption
Activity: Dollar Shave Club
Strategy to respond to Digital Disruption
Activity: Proximus
Skills & Capabilities to respond to Digital Disruption
Review of Apply Activity
Recap, Q&A, Discussion
Next steps
Today’s Learning
Outcomes
Understand how the module is organised and it is going
to run
Critically assess what is Disruption and Digital Disruption
Analyses Threats Digital Disruption poses to all
industries
Explore Strategies and Approaches that leaders can take
to respond to this disruption
Disruption and
Digital Disruption
Disruptive Innovation (Christensen, 1990)
How new markets
are created?
How does
disruptive
innovation work?
Samples of Disruptive Innovation
The best spice that survives is the one best able to
adapt to its changing environment
Charles Darwin
Digital Disruption
https://www.youtube.com/watch?v=6k_G_h41ZaQ
Unprecedented
Advanced Technologies
Customer data offers
companies valuable
insights to inform products
and services, and is also
feeding customer
expectations for
personalisation (e.g.
tailored viewing
recommendations on
Netflix)
Advances in supercomputing
power are enabling the
application of artificial
intelligence and machine
learning, which can be
applied in data analytics,
automation and
personalisation as well as
innovative products and
services
Advances in mobile
technology mean that the
global population continues to
become connected to the
internet, breaking down
language and geographic
barriers. With more people
connected to mobile
devices, there are also more
devices per person, and
devices are getting smarter
through machine learning
The Pace of Disruption has
increased Exponentially
The Big Bang Disruption
Everett Rogers, author of
“Diffusion of Innovations,”
theorised five stages in the
spread of a new idea. But we
are now seeing “Big Bang
Disruption”, in which mass
adoption of a new idea or
technology rises and falls much
more quickly.
The adoption curve has
become something closer to a
straight line that shoots up, and
then falls rapidly when
saturation is reached or a new
disruptor appears
Source: Accenture
Adapting for survival is now
a core business function
Accenture produced the
Disruptability Index and
positioned different industries
according to present/future
levels of disruption.
Group Activity:
Dollar Shave Club
How to be a Digital Disruptor
https://www.youtube.com/watch?v=ZUG9qYTJMsI
https://www.ft.com/content/9bb5cc54-d368-11e6-b06b-680c49b4b4c0
Activity Dollar Shave Club:
Possible Solutions
Market disrupted by Dollar Shave Club: market for men’s
razors and blades, so far dominated by Procter & Gamble and
Gillette
Business Model: razors and blades delivered directly to
customers each month on a subscription basis (packages of
$1, $6 or $9). This was as new business model
Digital innovation brough by Dollar Shave Club: an
amusing commercial video on YouTube very direct and
customer oriented (target: man annoyed by the rising costs of
razors and blades). The product could only be sold online on
a subscription base
Why Dollar Shave Club is a disruptor? Irreverent
marketing, use of social media, started by targeting low-end
customers, very customer centric offer (it gave exactly what
customers wanted), online e-commerce. Big Bang Disruption
Strategy to respond
to Digital Disruption
How can Incumbents respond to
Digital Disruption?
Strategy to respond to Digital Disruption
TRANSFORMING CORE
BUSINESS
Edit Topic
Leverage on new technologies
to make things better, faster
and more effective
BUILDING A NEW BUSINESS
Process of building
• Define your strategic
framework
• Build and MVP and pilot it
• Build the team
• Scale the business
• Do a strategic assessment
Process for Building a New
Business
Source: Leap Approach by McKinsey
Strategic
Assessment
• Future relationship
with the incumbent
(e.g., merge,
separation etc…)
Scaling
• Ramp-up
• Keep connections
with the incumbent
Build the
Team
• Identify needed
skills
• Recruiting talents
(internal and
external)
MVP and
Pilot
• Test with customers
& feedback
Strategic
Framework
• What is the value?
• Why us?
Challenges in Building a New Business
Governance
Challenges
How much money to
put in the core business
and how much in the
new one?
Where best people
should be allocated ?
Core or new business?
How to not create
conflicts between core
and new business?
Cultural
Challenges
Break silos
Refine way of working
(e.g., Agile)
Hire right people
Learning from mistakes
Performance
Challenges
What is success?
How do you measure
success overtime?
What are your key
milestones?
Source: Leap Approach by McKinsey
Break Time
If you have not done it, yet, please do
your Apply activity and post it in the
forum during the break !
Activity:
Proximus
Digital transformation in 12 weeks:
How Proximus made it happen
https://www.thinkwithgoogle.com/intl/en-154/insights-inspiration/case-studies/data-driventransformation-12-weeks-how-proximus-and-digipolitans-made-it-happen/
Activity Proximus:
Possible Solutions
Vision: Proximus wanted to be a digital service provider
and for doing it the company has to break-silos and create a
data driven company
Pilot: By using data they discover that 50% of people
looking for Netflix content also looked for kids content → a
new customer target was identified: Family with kids
Benefits of the pilot: Sales leads x6, 72% new visitors
(benchmark of 40%), conversion rate increased from 4% to
14%
After the pilot: Proximus changed the way to make digital
marketing, all data driven
Skills & Capabilities
to respond to Digital
Disruption
Leadership capabilities needed to
succeed in a digital world
New Leaders
Younger
More agile
“Digital-ready”
What are the Key
Skills Needed ?
Leadership
Hope
Resiliency Optimism
Faith you can
achieve your
goals
High expectation,
no over reflective,
creative
Recover from
failures quickly
Apply Section
This Photo by Unknown Author is licensed under CC BY
Samples of Industries to look for the
Company for your Assessment
High Education (E.g., Online Teaching)
Energy (e.g., Smart products)
Retail (E.g., E-commerce)
Travel Agency (E.g., Online booking)
Entertainment (e.g., Streaming)
Construction (e.g., IoT)
Telecommunication and Media (e.g., WhatsApp,
WeChat)
Banking & Financial Services (e.g. Applications,
Online Services)
Manufacturing (e.g., Machine Learning, 3D printing)
Marketing & Communication (e.g., Personalisation
with Big-Data)
Recap, Q&A,
Discussion
Key Takeaways
You should be now be able to:
• Be confident with the Module structure
• Analyse the characteristics of successful
digital disruptors
• Discuss what is digital disruption and how it is
impacting today business
• Evaluating the characteristics and strategies
of a company successfully responding to
digital disruption
• Outline the skills today’s leaders need to
transform their company/industry for the
digital age
Next Steps
• Review the fundamental concept
• Go through the Module Overview and Introduction (if not
done yet)
• Go through the Preparation and Apply part of this week (if
not done yet)
• Go through the Consolidation part of this week
• Go through the Preparation and Apply part of next week
• See you next week same time!
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