Trans World Data - Examining the Trends

Customers taking over customer service.

What are customers seeking.

The voice of the customer.

Follow

Apple went after treads over what they wanted

Mobility over sound quality.

Disruptive tech is about outcome measurements.

Performance metric has changed that hit that outcome.

Shifting business models. Coke and the transfer to water.

New models start taking their place.

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Examining the Trends

• How can leaders understand disruptions, changes, and inflection points in the marketplace?

• Trend analysis

• Many trends in the marketplace may be at odds with our preferred way of doing things
• We battle our own biases in the marketplace
• Sometimes success is not what you want it to be; the trends will tell us where success is

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iPhone

• Convergence (data, voice, internet, apps, gaming, social networks)
• Simplicity (push phone icon to make a call)
• Personalization (upload favorite TV shows, music, apps)
• Open-source (apps written by outside vendors, not Apple)

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iPhone

• Convergence (data, voice, internet, apps, gaming, social networks)
• Simplicity (push phone icon to make a call)
• Personalization (upload favorite TV shows, music, apps)
• Open-source (apps written by outside vendors, not Apple)
• Even if your company doesn't manage/make iPhones, these trends are universal
• How do your products and processes reflect the good trends represented in an iPhone?
• If you want to be innovative as a leader, look outside your industry; what trends are embodied in popular technologies, business models, and processes?

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Package Tracking

and Online Reservations

• When American Airlines first introduced online reservations, consumers said they didn't want it
• But once consumers had this option, they wanted more of it
• Leading a customer: anticipating consumers' latent needs

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Trends Behind Package Tracking

and Online Reservations

• Outsourcing customer service to the customer
• How do you employ this in your processes?

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Gaming

• Collaboration (hints as to how we'll collaborate in the future)
• Simulation (more simulations will be used in classroom/more gaming scenarios used in education)
• Community (people around the world game together against the computer; interactivity)

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Advanced Media

• YouTube, MySpace, How Stuff Works, Wikipedia

• Life as art
• Transfer of explicit types of knowledge (insight as to how people learn)
• Wikipedia: community knowledge constructs (that people have to learn how to validate)

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Trend Analysis Conclusion

• Look at the information and data that's around you every day and ask what trends it represents
• Don’t impart the trends that you want to see onto your data; try to understand them for what they are

2.4 Intelligence: Disruptive Innovation

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Disruptive Technology

• When trends change, performance changes
• The outcomes customers are trying to achieve may radically change
• If an incumbent company is working against an outdated performance metric, newcomers can enter and disrupt the marketplace

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Enemies of Change in Large Organizations

1. History
2. Success

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Metrics Example: Microsoft Word

• Operative metric: number of available features
• Market research: on average, users utilized 2.3% of available features
• MS Word technically over-engineered?
• Potential competitor: introduce product with fewer features
• Appropriate metric for competitor: ease of use
• Find ways of under-competing with Microsoft on their metric
• Entrepreneurship 101: catching an industry incumbent operating against an outdated metric

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Metrics Example: Soft Drinks

• Operative metric: amounts of caffeine, sugar, and carbonation
• Potential competitor: beverage that underperformed on sugar, carbonation, and caffeine
• Due to fitness trend, new performance criteria became hydration

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Metrics Example: Canoes, Kayaks,

and Waterboards

• New performance metric: sport rather than leisure; new view of marketplace led to building sport canoes and kayaks
• Company outperformed incumbents who were using old metrics and building canoes and kayaks for leisure

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How Do Trends Impact Performance?

• Has the performance metric changed?
• Can we revolutionize a product that works against a new, emerging performance metric and outperform other incumbents in an industry?
• Disruptive innovation: performance, outcomes of customers have radically changed and you can bring a new product or service to the marketplace that meets new emerging need better than products working against wrong performance metrics