most of the concepts that we teach today in business schools we have learned by
in business schools we have learned by
in business schools we have learned by observing companies many of these
observing companies many of these
observing companies many of these concepts that we teach today as theory
concepts that we teach today as theory
concepts that we teach today as theory we have learned by observing companies
we have learned by observing companies
we have learned by observing companies particularly in the automotive sector
particularly in the automotive sector
particularly in the automotive sector that’s changing now the new lessons we
that’s changing now the new lessons we
that’s changing now the new lessons we are learning and new concepts that you
are learning and new concepts that you
are learning and new concepts that you were building we are learning by
were building we are learning by
were building we are learning by observing a new type of company which we
observing a new type of company which we
observing a new type of company which we refer to as the digital Titans and in
refer to as the digital Titans and in
refer to as the digital Titans and in particular the kind of person who comes
particular the kind of person who comes
particular the kind of person who comes out and manage your leads companies
out and manage your leads companies
out and manage your leads companies learning from these digital titles we
learning from these digital titles we
learning from these digital titles we refer to this person as a digital
refer to this person as a digital
refer to this person as a digital innovator how did this happen how do we
innovator how did this happen how do we
innovator how did this happen how do we come about to following digital Titans
come about to following digital Titans
come about to following digital Titans and by digital titles we mean companies
and by digital titles we mean companies
and by digital titles we mean companies like Facebook Amazon alphabet Apple
like Facebook Amazon alphabet Apple
like Facebook Amazon alphabet Apple $0.10 Baidu and Alibaba how did this
$0.10 Baidu and Alibaba how did this
$0.10 Baidu and Alibaba how did this happen how did this come about I think
happen how did this come about I think
happen how did this come about I think Marc Andreessen captured this moment
Marc Andreessen captured this moment
Marc Andreessen captured this moment pretty well when this transformation
pretty well when this transformation
pretty well when this transformation occurred the leadership moved from the
occurred the leadership moved from the
occurred the leadership moved from the old era companies to the new era
old era companies to the new era
old era companies to the new era companies and he called this phenomenon
companies and he called this phenomenon
companies and he called this phenomenon as software is eating the world many
as software is eating the world many
as software is eating the world many would have heard that before what he
would have heard that before what he
would have heard that before what he meant by that was every product or
meant by that was every product or
meant by that was every product or service has now software embedded in it
service has now software embedded in it
service has now software embedded in it now when you put software into a product
now when you put software into a product
now when you put software into a product or service it just doesn’t do a plus but
or service it just doesn’t do a plus but
or service it just doesn’t do a plus but what it does is it changes how this
what it does is it changes how this
what it does is it changes how this product or service behaves now it
product or service behaves now it
product or service behaves now it becomes more like and the company itself
becomes more like and the company itself
becomes more like and the company itself becomes more like a software company and
becomes more like a software company and
becomes more like a software company and what that the consequences of that are
what that the consequences of that are
what that the consequences of that are that now you have to behave and treat
that now you have to behave and treat
that now you have to behave and treat other companies as partners in your
other companies as partners in your
other companies as partners in your ecosystem and you move into something
ecosystem and you move into something
ecosystem and you move into something called ecosystem based competition just
called ecosystem based competition just
called ecosystem based competition just with this act of introducing software
with this act of introducing software
with this act of introducing software but companies does didn’t stop there in
but companies does didn’t stop there in
but companies does didn’t stop there in addition to adding software they also
addition to adding software they also
addition to adding software they also connected these things and put sensors
connected these things and put sensors
connected these things and put sensors on them and that created this whole
on them and that created this whole
on them and that created this whole transformation that we are seeing the
transformation that we are seeing the
transformation that we are seeing the transformation actually started because
transformation actually started because
transformation actually started because these smart objects this data objects
these smart objects this data objects
these smart objects this data objects with software and connectivity started
with software and connectivity started
with software and connectivity started producing boatloads of data and the
producing boatloads of data and the
producing boatloads of data and the assumption is that hidden in the data
assumption is that hidden in the data
assumption is that hidden in the data are information about your products and
are information about your products and
are information about your products and services and market that you start
services and market that you start
services and market that you start thinking about this data as an asset now
thinking about this data as an asset now
thinking about this data as an asset now if you look at the LEAs asset and how do
if you look at the LEAs asset and how do
if you look at the LEAs asset and how do you get value out of it this is where
you get value out of it this is where
you get value out of it this is where digital strategy comes in by digital
digital strategy comes in by digital
digital strategy comes in by digital strategy what we mean is an action plan
strategy what we mean is an action plan
strategy what we mean is an action plan that helps you understand the ecosystem
that helps you understand the ecosystem
that helps you understand the ecosystem and then use the technology to get
and then use the technology to get
and then use the technology to get insights from this data and and compete
insights from this data and and compete
insights from this data and and compete effectively in fact the actions that you
effectively in fact the actions that you
effectively in fact the actions that you can take could result in highly even
can take could result in highly even
can take could result in highly even higher more highly personalized products
higher more highly personalized products
higher more highly personalized products and services that you can into the
and services that you can into the
and services that you can into the marketplace here’s where the titans come
marketplace here’s where the titans come
marketplace here’s where the titans come in very handy because the titans have
in very handy because the titans have
in very handy because the titans have figured out how to do this very
figured out how to do this very
figured out how to do this very effectively and in fact they are now
effectively and in fact they are now
effectively and in fact they are now creating the multi purpose platforms of
creating the multi purpose platforms of
creating the multi purpose platforms of the day and they are a threat to
the day and they are a threat to
the day and they are a threat to companies in every sector for example if
companies in every sector for example if
companies in every sector for example if you take the traditional sectors some of
you take the traditional sectors some of
you take the traditional sectors some of the companies have responded very well
the companies have responded very well
the companies have responded very well and it’s worth learning from them too so
and it’s worth learning from them too so
and it’s worth learning from them too so if you take a company like GE GE was
if you take a company like GE GE was
if you take a company like GE GE was threatened by these platforms
threatened by these platforms
threatened by these platforms general-purpose platforms that are
general-purpose platforms that are
general-purpose platforms that are showing up and they responded with their
showing up and they responded with their
showing up and they responded with their own version of it which they referred to
own version of it which they referred to
own version of it which they referred to as industrial Internet and their
as industrial Internet and their
as industrial Internet and their platform itself as predix company like
platform itself as predix company like
platform itself as predix company like Ford has introduced Inc and they’ve used
Ford has introduced Inc and they’ve used
Ford has introduced Inc and they’ve used concepts like digital replicas to combat
concepts like digital replicas to combat
concepts like digital replicas to combat this even agriculture has been impacted
this even agriculture has been impacted
this even agriculture has been impacted john deere today do it does something
john deere today do it does something
john deere today do it does something called precision agriculture in order to
called precision agriculture in order to
called precision agriculture in order to respond to the threat from these digital
respond to the threat from these digital
respond to the threat from these digital titles when I say a threat from digital
titles when I say a threat from digital
titles when I say a threat from digital items what I mean by that is they are
items what I mean by that is they are
items what I mean by that is they are ending up commodity
ending up commodity
ending up commodity industry after industry let’s take a
industry after industry let’s take a
industry after industry let’s take a simple example of the automotive sector
simple example of the automotive sector
simple example of the automotive sector when Google introduced Android auto or
when Google introduced Android auto or
when Google introduced Android auto or Apple does the car play what this does
Apple does the car play what this does
Apple does the car play what this does is that it takes a car may be used to
is that it takes a car may be used to
is that it takes a car may be used to talk about the mechanics of the car and
talk about the mechanics of the car and
talk about the mechanics of the car and changes the conversation to software and
changes the conversation to software and
changes the conversation to software and its features so today when you look at a
its features so today when you look at a
its features so today when you look at a car and it’s more about the software and
car and it’s more about the software and
car and it’s more about the software and connectivity that you’re talking about
connectivity that you’re talking about
connectivity that you’re talking about and this happens in software sector
and this happens in software sector
and this happens in software sector every time a new layer of software is
every time a new layer of software is
every time a new layer of software is formed they make the layers below it
formed they make the layers below it
formed they make the layers below it obsolete or commoditized so this
obsolete or commoditized so this
obsolete or commoditized so this operating system actually made the
operating system actually made the
operating system actually made the conversation about cars more about
conversation about cars more about
conversation about cars more about software features in fact uber has taken
software features in fact uber has taken
software features in fact uber has taken it a step further they created a layer
it a step further they created a layer
it a step further they created a layer of service even above the Android auto
of service even above the Android auto
of service even above the Android auto and the car clay and then they’re
and the car clay and then they’re
and the car clay and then they’re creating transportation as a service and
creating transportation as a service and
creating transportation as a service and commoditizing everything else beneath it
commoditizing everything else beneath it
commoditizing everything else beneath it so this is the threat that exists in
so this is the threat that exists in
so this is the threat that exists in sector after sector now looking at all
sector after sector now looking at all
sector after sector now looking at all these moves and countermoves what I’ve
these moves and countermoves what I’ve
these moves and countermoves what I’ve done is come up with seven lessons that
done is come up with seven lessons that
done is come up with seven lessons that one should take away from this in order
one should take away from this in order
one should take away from this in order to be like act like a digital title
to be like act like a digital title
to be like act like a digital title number one is this notion of a digital
number one is this notion of a digital
number one is this notion of a digital customer in a in the traditional
customer in a in the traditional
customer in a in the traditional competitive sense when you add an extra
competitive sense when you add an extra
competitive sense when you add an extra customer Pia portfolio this may
customer Pia portfolio this may
customer Pia portfolio this may typically result in addition of physical
typically result in addition of physical
typically result in addition of physical assets but today when you add for the
assets but today when you add for the
assets but today when you add for the digital customer most companies the
digital customer most companies the
digital customer most companies the digital titles when they add a customer
digital titles when they add a customer
digital titles when they add a customer they add information assets and if you
they add information assets and if you
they add information assets and if you treat the customer right and provide the
treat the customer right and provide the
treat the customer right and provide the right value they will give you data in
right value they will give you data in
right value they will give you data in exchange for the interaction that you
exchange for the interaction that you
exchange for the interaction that you have with them and this data is the one
have with them and this data is the one
have with them and this data is the one that’s turning out to be the critical
that’s turning out to be the critical
that’s turning out to be the critical asset the second thing that we learn
asset the second thing that we learn
asset the second thing that we learn from observing the digital Titans was
from observing the digital Titans was
from observing the digital Titans was this concept called a digital replica
this concept called a digital replica
this concept called a digital replica what this is is that every asset the
what this is is that every asset the
what this is is that every asset the company has will also have a
company has will also have a
company has will also have a corresponding digital version of it so
corresponding digital version of it so
corresponding digital version of it so for example
for example
for example if you have a car if Ford has a car on
if you have a car if Ford has a car on
if you have a car if Ford has a car on the street they will have a digital
the street they will have a digital
the street they will have a digital version a digital model of the car along
version a digital model of the car along
version a digital model of the car along with information about the current
with information about the current
with information about the current status of that car so this would mean
status of that car so this would mean
status of that car so this would mean that not only you need modelers who
that not only you need modelers who
that not only you need modelers who understand cars the mechanics and so on
understand cars the mechanics and so on
understand cars the mechanics and so on you also need the current state in order
you also need the current state in order
you also need the current state in order to be able to say what the car is
to be able to say what the car is
to be able to say what the car is actually doing right now so if you think
actually doing right now so if you think
actually doing right now so if you think about product recalls and supposed to
about product recalls and supposed to
about product recalls and supposed to recalling every car now you can recall
recalling every car now you can recall
recalling every car now you can recall specific cars maintenance as opposed to
specific cars maintenance as opposed to
specific cars maintenance as opposed to doing maintenance and a schedule you
doing maintenance and a schedule you
doing maintenance and a schedule you actually do it based on the reality in
actually do it based on the reality in
actually do it based on the reality in this particular part is failing then you
this particular part is failing then you
this particular part is failing then you can catch it before that and deal on it
can catch it before that and deal on it
can catch it before that and deal on it with it one and one one one at a time
with it one and one one one at a time
with it one and one one one at a time the next concept I want to talk about is
the next concept I want to talk about is
the next concept I want to talk about is this notion of consumption ecosystem so
this notion of consumption ecosystem so
this notion of consumption ecosystem so far we have been focused on the
far we have been focused on the
far we have been focused on the production aspect of things the supply
production aspect of things the supply
production aspect of things the supply chain aspect of things but what the
chain aspect of things but what the
chain aspect of things but what the digital Titans are telling us is look at
digital Titans are telling us is look at
digital Titans are telling us is look at how a project product is being consumed
how a project product is being consumed
how a project product is being consumed so for example today most people like to
so for example today most people like to
so for example today most people like to hack into products is do-it-yourself
hack into products is do-it-yourself
hack into products is do-it-yourself there’s a driven innovation it’s become
there’s a driven innovation it’s become
there’s a driven innovation it’s become pretty popular what that does is you may
pretty popular what that does is you may
pretty popular what that does is you may introduce a product with a particular
introduce a product with a particular
introduce a product with a particular idea in mind how comes you must end up
idea in mind how comes you must end up
idea in mind how comes you must end up using it turns out to be quite different
using it turns out to be quite different
using it turns out to be quite different from what you’re intended now as opposed
from what you’re intended now as opposed
from what you’re intended now as opposed to trying to redirect them to use it the
to trying to redirect them to use it the
to trying to redirect them to use it the way you want it instead it’s now
way you want it instead it’s now
way you want it instead it’s now possible to find out how they’re
possible to find out how they’re
possible to find out how they’re actually using it and then add to that
actually using it and then add to that
actually using it and then add to that value so for example if you take the
value so for example if you take the
value so for example if you take the nest thermostat and you put it out there
nest thermostat and you put it out there
nest thermostat and you put it out there now it’s possible to track the fact that
now it’s possible to track the fact that
now it’s possible to track the fact that customers are connecting it with an LG
customers are connecting it with an LG
customers are connecting it with an LG washing machine or your automatic door
washing machine or your automatic door
washing machine or your automatic door lock or your garage opener and so on but
lock or your garage opener and so on but
lock or your garage opener and so on but what if that you find that the home
what if that you find that the home
what if that you find that the home automation or the digital assistant they
automation or the digital assistant they
automation or the digital assistant they connected with always happens to Amazon
connected with always happens to Amazon
connected with always happens to Amazon echo now Google can look at that and say
echo now Google can look at that and say
echo now Google can look at that and say what we need introduce a product which
what we need introduce a product which
what we need introduce a product which is just like Amazon echo and they will
is just like Amazon echo and they will
is just like Amazon echo and they will push now on Google home so it’s possible
push now on Google home so it’s possible
push now on Google home so it’s possible to understand how the network of
to understand how the network of
to understand how the network of connections of your product is if
connections of your product is if
connections of your product is if all ring and then make sure that your
all ring and then make sure that your
all ring and then make sure that your products play a key role in that
products play a key role in that
products play a key role in that particular network the next idea that
particular network the next idea that
particular network the next idea that these digital tidings of TARDIS is
these digital tidings of TARDIS is
these digital tidings of TARDIS is experimentation
experimentation
experimentation they don’t assume that they know what’s
they don’t assume that they know what’s
they don’t assume that they know what’s going to happen and they don’t launch it
going to happen and they don’t launch it
going to happen and they don’t launch it before they understand the market very
before they understand the market very
before they understand the market very well so Amazon were at the same time
well so Amazon were at the same time
well so Amazon were at the same time have many experiments going on right now
have many experiments going on right now
have many experiments going on right now they’re doing some experiments the
they’re doing some experiments the
they’re doing some experiments the retail Amazon Co they have uh drones
retail Amazon Co they have uh drones
retail Amazon Co they have uh drones dropping enough stuff right right now or
dropping enough stuff right right now or
dropping enough stuff right right now or Amazon fresh these different experiments
Amazon fresh these different experiments
Amazon fresh these different experiments ago learned from and then they decide
ago learned from and then they decide
ago learned from and then they decide what product the service did the same
what product the service did the same
what product the service did the same goes at fourth if I’m ability
goes at fourth if I’m ability
goes at fourth if I’m ability experiments recently to figure out how
experiments recently to figure out how
experiments recently to figure out how mobility is going to impact them and
mobility is going to impact them and
mobility is going to impact them and many ideas came out of it in some with
many ideas came out of it in some with
many ideas came out of it in some with help from third parties one of my four
help from third parties one of my four
help from third parties one of my four pass which now users to find parking
pass which now users to find parking
pass which now users to find parking spots in current cities which turns out
spots in current cities which turns out
spots in current cities which turns out to be a very important problem so the
to be a very important problem so the
to be a very important problem so the new releases they have come up with a
new releases they have come up with a
new releases they have come up with a solution to that now the trend which we
solution to that now the trend which we
solution to that now the trend which we observe with digital with digital
observe with digital with digital
observe with digital with digital tightness is concept of digital engines
tightness is concept of digital engines
tightness is concept of digital engines so they’re now using a artificial
so they’re now using a artificial
so they’re now using a artificial intelligence and machine learning
intelligence and machine learning
intelligence and machine learning techniques to get a lot out of their
techniques to get a lot out of their
techniques to get a lot out of their data and then they are using those
data and then they are using those
data and then they are using those insights to provide even better products
insights to provide even better products
insights to provide even better products and services in fact what they’ve done
and services in fact what they’ve done
and services in fact what they’ve done is they’ve taken some of their core
is they’ve taken some of their core
is they’ve taken some of their core assets and started providing it as a
assets and started providing it as a
assets and started providing it as a service so if you take facebook they
service so if you take facebook they
service so if you take facebook they provide torch as a service Amazon just
provide torch as a service Amazon just
provide torch as a service Amazon just announced that they’re going to provide
announced that they’re going to provide
announced that they’re going to provide AI as a service so it’s now possible to
AI as a service so it’s now possible to
AI as a service so it’s now possible to use the engines that these companies are
use the engines that these companies are
use the engines that these companies are being using in your own settings the
being using in your own settings the
being using in your own settings the another consequence of what it’s
another consequence of what it’s
another consequence of what it’s happening over there is now you can
happening over there is now you can
happening over there is now you can rethink how where you want to embed the
rethink how where you want to embed the
rethink how where you want to embed the decisions either when you’re designing
decisions either when you’re designing
decisions either when you’re designing the product or when the product is being
the product or when the product is being
the product or when the product is being used
used
used Tesla change the conversation by saying
Tesla change the conversation by saying
Tesla change the conversation by saying when they added a feature to the car
when they added a feature to the car
when they added a feature to the car they send it as an up
they send it as an up
they send it as an up electronically so it was every car got
electronically so it was every car got
electronically so it was every car got an autopilot but it was done through the
an autopilot but it was done through the
an autopilot but it was done through the internet wirelessly it was done some of
internet wirelessly it was done some of
internet wirelessly it was done some of those updates similarly when you have an
those updates similarly when you have an
those updates similarly when you have an autonomous car some of the decisions can
autonomous car some of the decisions can
autonomous car some of the decisions can be made locally so if you want to know
be made locally so if you want to know
be made locally so if you want to know how the cars ride has to be whether it’s
how the cars ride has to be whether it’s
how the cars ride has to be whether it’s going to be the it’s going to have an
going to be the it’s going to have an
going to be the it’s going to have an economic version or a comfort version or
economic version or a comfort version or
economic version or a comfort version or a sporty version you that’s a local
a sporty version you that’s a local
a sporty version you that’s a local decision but if you want to plan a route
decision but if you want to plan a route
decision but if you want to plan a route you can get the information weather and
you can get the information weather and
you can get the information weather and traffic patterns centrally so you can
traffic patterns centrally so you can
traffic patterns centrally so you can redistribute how you make these
redistribute how you make these
redistribute how you make these decisions one of the interesting new
decisions one of the interesting new
decisions one of the interesting new products that I saw was this Nike shoe
products that I saw was this Nike shoe
products that I saw was this Nike shoe where now you can the Nike makes a lot
where now you can the Nike makes a lot
where now you can the Nike makes a lot of wonderful decisions the factory and
of wonderful decisions the factory and
of wonderful decisions the factory and designs the shoe the decision about how
designs the shoe the decision about how
designs the shoe the decision about how snug it should be could be made locally
snug it should be could be made locally
snug it should be could be made locally now because as users decide how to
now because as users decide how to
now because as users decide how to change it they can change the snugness
change it they can change the snugness
change it they can change the snugness of that fit another lesson which which
of that fit another lesson which which
of that fit another lesson which which is critical was some these digital
is critical was some these digital
is critical was some these digital Titans operate simultaneously in
Titans operate simultaneously in
Titans operate simultaneously in multiple interlocked ecosystems so it’s
multiple interlocked ecosystems so it’s
multiple interlocked ecosystems so it’s not just one thing they do it this at a
not just one thing they do it this at a
not just one thing they do it this at a time they do multiple things at the same
time they do multiple things at the same
time they do multiple things at the same time so if you take a company like
time so if you take a company like
time so if you take a company like Amazon or Google they are in the media
Amazon or Google they are in the media
Amazon or Google they are in the media business there they have an arm in the
business there they have an arm in the
business there they have an arm in the operating system business they are in
operating system business they are in
operating system business they are in these multiple businesses and in some
these multiple businesses and in some
these multiple businesses and in some businesses they’re driving the show they
businesses they’re driving the show they
businesses they’re driving the show they are a platform provider in other
are a platform provider in other
are a platform provider in other businesses they’re simply a component
businesses they’re simply a component
businesses they’re simply a component provider but no matter what the
provider but no matter what the
provider but no matter what the different roles they play they partake
different roles they play they partake
different roles they play they partake in the profits they get from these
in the profits they get from these
in the profits they get from these multiple ecosystems so it’s not just
multiple ecosystems so it’s not just
multiple ecosystems so it’s not just about focus on one thing but honestly
about focus on one thing but honestly
about focus on one thing but honestly being present in in multiple ecosystems
being present in in multiple ecosystems
being present in in multiple ecosystems so while these these possibilities exist
so while these these possibilities exist
so while these these possibilities exist one of the things that’s coming out as a
one of the things that’s coming out as a
one of the things that’s coming out as a major issue is the data that’s coming
major issue is the data that’s coming
major issue is the data that’s coming out of all these exercises and how do
out of all these exercises and how do
out of all these exercises and how do you treat this data not a week goes by
you treat this data not a week goes by
you treat this data not a week goes by where you hear that some company has
where you hear that some company has
where you hear that some company has been hacked the data has been
been hacked the data has been
been hacked the data has been compromised
compromised
compromised so one has to be cautious about the data
so one has to be cautious about the data
so one has to be cautious about the data one collects the other thing that you
one collects the other thing that you
one collects the other thing that you need to be careful about
need to be careful about
need to be careful about is the use of algorithms we are using
is the use of algorithms we are using
is the use of algorithms we are using algorithms quite a bit right now and
algorithms quite a bit right now and
algorithms quite a bit right now and many of these algorithms come up with
many of these algorithms come up with
many of these algorithms come up with decision rules that get automated within
decision rules that get automated within
decision rules that get automated within these companies and they are embedded
these companies and they are embedded
these companies and they are embedded deeply in these algorithms one should be
deeply in these algorithms one should be
deeply in these algorithms one should be aware of that and be able to audit what
aware of that and be able to audit what
aware of that and be able to audit what are the rules that we are putting into
are the rules that we are putting into
are the rules that we are putting into these systems and if there is any
these systems and if there is any
these systems and if there is any systematic bias that starts creeping
systematic bias that starts creeping
systematic bias that starts creeping into the system and this is which there
into the system and this is which there
into the system and this is which there should be a major concerns as
should be a major concerns as
should be a major concerns as individuals what should you do and the
individuals what should you do and the
individuals what should you do and the first thing is you understand that the
first thing is you understand that the
first thing is you understand that the transformations that are happening right
transformations that are happening right
transformations that are happening right now are going to be led by what we are
now are going to be led by what we are
now are going to be led by what we are referring to as digital innovators so
referring to as digital innovators so
referring to as digital innovators so it’s very important for you to follow
it’s very important for you to follow
it’s very important for you to follow the digital Titans be able to understand
the digital Titans be able to understand
the digital Titans be able to understand the different moves they’re making
the different moves they’re making
the different moves they’re making deconstruct those moves and come up with
deconstruct those moves and come up with
deconstruct those moves and come up with your own set of lessons lessons learned
your own set of lessons lessons learned
your own set of lessons lessons learned in other words learn how to learn about
in other words learn how to learn about
in other words learn how to learn about these companies the fact that these
these companies the fact that these
these companies the fact that these digital innovators are going to lead in
digital innovators are going to lead in
digital innovators are going to lead in every sector is clear now the question
every sector is clear now the question
every sector is clear now the question is do you want to be a digital innovator
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