Digital Disruption NZ 2016 conference - Becoming an ambidextrous organisation b
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Transcript of Digital Disruption NZ 2016 conference - Becoming an ambidextrous organisation b
It’sOurs.
Insights from Kiwibank’s digital business journeyDigital Disruption Summit, August 17 2016, Auckland
• Digital disruption moving into new industries• Why this is happening – the five forces driving an internet step-
change• What this means for organisations• How Kiwibank is responding
[email protected] @peterfd
Our story
“Kiwis making Kiwis better off”
This disruption thing…
Some of the digitally disrupted
Home Entertainment
Book Retailing
Accommodation
Classified Advertising
Taxis
Financial services is next
Fintech investment soaring
Company lifespans being reduced
Reduced from 61 years in 1951, to estimated 13 years in 2025
Exponential organisations
Snapchat and Occulus Rift hit billion dollar cap in 2 years versus 20 years for typical Fortune 500 companies
Perils of being on the wrong track
from here…
…to hereHow do organisations move
Traditional organisations can’t keep up with competitors using business, and operating, models on exponential trajectory
Internet undergoing step-change
Information
Content
Assets
Value
Assets
Value
IoT
AI
APIs
BlockchainComputing power
Continuous exponential growth
APIs and IoT creating true Big Data and
driving AI
Internet evolves from information to value &
asset transfer
Five transformational forcesNOW FUTURE
1. Computing power growth
2. APIs enabling platform businesses
Companies like Facebook, Twitter and Xero used APIs to turn killer apps from products into platforms
.
Graph by ProgrammableWeb
Generating value without inventory
Mondo Bank
Taking openness to new levels
3. Artificial Intelligence
4. Internet of Things
5. Blockchain – disrupting trust
How value transfer works now
A
B
How it works with BlockchainB
Arcade City – disrupting Uber
Slock.it: Bridging physical and virtual
Instantaneous trading
What if…?• FX was as instantaneous and free as a “cross-border email”
• 70% of small landowners globally are protected from unscrupulous dictators
• Half a trillion dollars in remittance fees instead of going in transaction fees went to people who needed the money
• Musicians were automatically and directly paid as soon as their music was downloaded
• The provenance of any produce or product was instantly and immutably trackable
How does an organisation cope?
Act like a genius
“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still
retain the ability to function.” F Scott Fitzgerald
Being an ambidextrous organisation
Horizon model from The Alchemy of Growth, Baghai, Coley and White, 2000
29
1 “Optimise
the business”
2 “Evolve new capabilities”
3“Invent future
business”
Growth
Horizon 1 Known
Horizon 2 Partially known
Horizon 3 Unknown
Time to
impact
Known vs unknown
30
Certainty
UncertaintyGrowt
h
Time to
impact
Horizon 1 Known
Horizon 2 Partially known
Horizon 3 Unknown
It never feels like a perfect time…
…to jump into the unknown
“Do not wait until the conditions are perfectto begin. Beginning makes the conditions perfect.” Alan Cohen
So what are we doing?
Going back to start-up roots
Going back to start-up roots
Embracing Fintech
https://www.youtube.com/watch?v=gzhvNujfcGA
Evolving joining a bank
Pic of selfie prototype
Bots and data
Future focus
Take outs1. World is changing at an exponential rate – more change in next 30 years
than in past 100
2. We believe New Zealand is ideally placed to leverage these global changes
3. Not about a digital strategy – but a strategy for a digital world
4. Being ambidextrous the new normal for organisations
5. Use constraints to maximum advantage
6. You can’t plan your way to or wait for the perfect place
Thank you.
@peterfd