The Digital Frontier

The Digital Frontier
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Discover how to move forward with your own company’s digital transformation with this accessible new resource from a global leader in his field In The Digital Frontier , experienced executive and distinguished author Ajay Sohoni delivers a relatable and readable reference for corporate executives who need the knowledge and confidence to build lasting digital change within their enterprise. From marketing to commercial, supply chain, and finance, the book offers actionable insights in an accessible format, full of anecdotes, humor, and case examples. You’ll learn which areas to focus on and which not to worry about as you craft your own custom transformation journey. In the book, you’ll also find: A demystification of the startup world for executives and an explanation of why unicorns exist (and so often ultimately fail) A detailed description of the digital transformation gripping companies across a variety of industries in functional areas including advertising, engagement, commerce, product development, manufacturing, and corporate functions A simplified 4-stage framework for companies to start from scratch and build valuable use cases Perfect for executives in consumer-facing companies, corporate managers and leaders, business unit heads and management teams, The Digital Frontier is also an indispensable guide for digital non-natives trying to make sense of, and keep up with, the rapidly changing world around them.

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Ajay Sohoni. The Digital Frontier

Table of Contents

List of Illustrations

Guide

Pages

THE DIGITAL FRONTIER. HOW CONSUMER COMPANIES CAN CREATE MASSIVE VALUE THROUGH DIGITAL TRANSFORMATION

WHY I WROTE THIS BOOK AND WHY YOU SHOULD READ IT

ACKNOWLEDGMENTS

CHAPTER 1 SETTING THE CONTEXT. Let There Be Value Creation. We need to stop pretending

Value creation is at the root of it all

Enter the capitalists with too much money

Startups are built mostly for investors, sometimes for consumers

So, what exactly do you do?

The Technology That Powers It

Accuracy and accessibility of geospatial intelligence

Total availability and commoditization of personal devices

Artificial intelligence and machine learning

Automated content creation and rendering

Implants and sensors

5G and connectivity

Efficiency and modularity in software development

Personal data privacy and security

Blockchain and distributed ledger

Robotics and 3D printing

The Key Consumer Trends of The Next Decade

The changing shape of households

The changing personal financial situation

A growing sense of responsibility

An acceptable form of homelessness

Accepting defeat in the war on privacy

Plurality of thought and habits

Value of experience and appetite for complexity

Overwhelming availability, choice and transparency

Changing attitudes to education and employment

Social media for life reference and for self‐actualization

Stepping Back Before Diving In

Oh my God, this is already too much. Where do I start?

The six frontiers of change in the consumer goods and services sector

This is going to be absurd, but in a good way

Notes

CHAPTER 2 HOW COMPANIES REACH CONSUMERS

Future of Out‐of‐Home Media. Odin books a holiday

Understanding the evolution of out‐of‐home media

Three practical things you should do now

Future of TV Advertising. Chick‐fil‐A at Bhindi‐Bazaar

Understanding the evolution of TV advertising

Three practical things you should do now

A New Kind of Personal Device. Jaden shorts a Merlot

Understanding the evolution of personal devices

Three practical things you should do now

A New Way of Building Ad Creatives. Nuno celebrates his 10‐yr anniversary

Understanding the evolution of Ad creatives

Three practical things you should do now

Notes

CHAPTER 3 HOW COMPANIES ENGAGE WITH CONSUMERS

Harnessing Your Consumer Base. Bart adds a few years to his life

Understanding how to build a consumer database

Three practical things you should do now

The Future of Loyalty Programs. Because Odin pledged allegiance to The Syndicate

Understanding modern‐day loyalty programs

Three practical things you should do now

Providing Additional Value Through Digital Products. Wahad makes a Jjajjangmyeon

Understanding how companies build digital products

Three practical things you should do now

Engaging Through the Intangibles. Jaden's daily facial care ritual

Understanding engagement through intangibles

Three practical things you should do now

Notes

CHAPTER 4 HOW CONSUMERS TRANSACT

The Future of at Home e‐Commerce. Nuno prepares for fight night

Understanding the evolution of at home e-commerce

Three practical things you should do now

The Future of On‐the‐Go Commerce. Bart's day out in New York

Understanding the evolution of on‐the‐go commerce

Three practical things you should do now

The Future of Browse Purchases. Odin celebrates singles tag

Key elements of the evolution

Three practical things you should do now

The Future of Consultation. Wahad's big weekend of fixing stuff

Key elements of the evolution

Three practical things you should do now

Note

CHAPTER 5 HOW COMPANIES CREATE PRODUCTS AND BRANDS

The Future of Consumer Research. The latte that Jaden made

Understanding the evolution of consumer research

Three practical things you should do now

Future of Personalization. Nuno likes everything Nuno style

Understanding the evolution towards personalization

Three practical things you should do now

Continued Relevance of Brands. Bart's second love

Understanding the evolution of brands

Three practical things you should do now

The Future Localized Franchise. Odin supports his community

Understanding the evolution from being centralized to being distributed

Three practical things you should do now

Notes

CHAPTER 6 HOW COMPANIES MANUFACTURE AND DISTRIBUTE PRODUCTS

The Factory of the Future. Wahad's slow cooker gets put together

Understanding the evolution in manufacturing

Three practical things you should do now

Future Logistics. Jaden's unmanned Duvel

Understanding the evolution

Three practical things you should do now

Digitization of the Route to Market. Nuno's weekend of sin

Key elements of the evolution

Three practical things you should do now

The Circular Economy of the Future. Bart loves being the Hulk

Understanding the evolution in the circular economy

Three practical things you should do now

Notes

CHAPTER 7 HOW COMPANIES WORK TOGETHER

The Future of Finance. The life of Odin the CFO

Key elements of the evolution

Three practical things you should do now

The Future of Employment. Wahad and Wahida's walk through life

Understanding the evolution in education and employment

Three practical things you should do now

The Future of Leadership. Jaden the “Conductor”

Understanding the evolution in leadership

Three practical things you should do now

The Future of Government. Nuno joins a movement and Bart pays a parking fine

Understanding some of the evolution in Government services

Notes

CHAPTER 8 MAKING THE TRANSFORMATION HAPPEN

Achtung! Sports analogy coming

The 33 Framework – Nine Steps to Build and Execute a Digital Transformation

Why 33

EPIC 1 – IMAGINE Your Digital Future

Sprint 1 – Define your CURRENCY and ambition of value

Sprint 2 – Explore your own digital FRONTIERS

Sprint 3 – Prioritize the available VALUE POOLS

EPIC 2 – BUILD Your Transformation Unit

Sprint 4 – Blueprint your PLATFORM idea(s)

Sprint 5 – Recruit your transformation TEAM

Sprint 6 – Setup your transformation ENTITY

EPIC 3 – OPERATE the Digital Transformation

Sprint 7 – RESOURCE the entity appropriately

Sprint 8 – RUN the platform everyday

Sprint 9 – REFRESH the platform every year

EPILOGUE

INDEX

WILEY END USER LICENSE AGREEMENT

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AJAY SOHONI

“I am concerned about two things”, I told my wife. I wasn't sure about how to use the two weeks productively. I was also at an inflection point in my career, having spent the last six years in the digital and technology‐enabled business space I was looking to move on to something else. But I loved the space I was in and I felt like I still had a lot to offer; it worried me that I would allow everything I knew to just fall into obsolescence if I left “the scene”. My wife is much smarter than me, and I am not just saying that to demonstrate my own humility, we don't do that in my generation anymore. That question was settled 11 years ago when she outscored me on the GMAT and she likely had a better GPA than I did at INSEAD where we met. But we will never know, because we have continued INSEAD's grade non‐disclosure policy in our household.

.....

The year was 2010 and it was starting to get cooler in Amsterdam, around November. Little did we know that we'd end the year in a snow‐storm that would close the airport for a few days. But, on that cold November day I was helping put together the final edits on a presentation in one of the meeting rooms in McKinsey's beautiful office on the picturesque Amstel river. Our client was a large consumer products conglomerate and the recently appointed CEO was holding a gala event to end the year at the 300+‐year‐old Amsterdam Hermitage museum. Top business leaders from around the world were assembled here in a beautiful space and, while the light and sound engineers were rigging the place up, we were conferring with the CEO on some nuances of his speech and presentation. That night he launched a transformational journey that has spanned a decade, taking this multi‐country and multi‐category business, splitting and carving and buying and stitching it together into a completely new form, while at the same time changing the way the company operated from inside out. Looking back at that evening on the Amstel, thinking about the moves that were then mere bullet points on a PowerPoint slide, and looking at the ensuing actions two qualities of this transformational leader shine through: Courage and commitment.

Five years later, and this time it was November again and also very cold in Hangzhou, China. Still groggy from the short overnight flight and drive from Shanghai I walked into a conference room at the sprawling and impressive Alibaba campus. We were here to meet Daniel Zhang, the CEO of Alibaba. Lazada group, one of Southeast Asia's leading e‐commerce companies, was discussing an investment from Alibaba and I was running Lazada's payments company, which would then be acquired by Alipay. A few months later Alibaba acquired a controlling stake in Lazada, but we were still in the midst of negotiations in November 2015. Mr. Zhang had an intense aura about himself. He spoke in a calm collected way, every word measured to make a specific incisive point. We spent maybe 30 minutes talking about what consumers value, what merchants value, and what brands value. No complex tech terminology, no mention of buzzwords like fintech and, worse still, blockchain. Daniel Zhang is an incredibly impressive leader and, looking back at that interaction, I realized the core idea, that you'll see me repeat several times in the book, is that the objective is to create commercial value using technology, not to apply technology for the sake of it and then find associated commercial value in some way. Two transformational qualities: Pragmaticism and focus.

.....

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