I hope that you enjoy my bi-weekly summarize! Feel free to come with comments on how to improve. One comment I received last week was from my boss’s boss which thought it was too long, but I have a hard time to shorten it :-). Let me know if you also think it must be shorter!
I think that you will start to recognise my areas of interests which is summarized below in four points, enjoy!
- IoT and digital transformation
- business models innovation & disruption
- ways of working to create value
- and some fun
IoT and digital transformation
The smartphone platform war is over and there is two winners, apple and google, but the different in size is not the same as it is generally believed. Benedict Evans asked on twitter how many more Android device than IOS devices are in use in the market today and 2/3 though 4x or more but the reality is more like 2.5x. You can find the calculation here.
Tesla has done this really successful before and turned the product into an innovation platform and this is a really challenge with product connectivity and continuous improvement/innovation mind-set. You can’t anymore do maximum cost reduction based on the functionality at the launch date – because you will not know the full extent of the functionality you will launch during the life time of the product. Now Tesla claim that all cars produced today already has full hardware support for full autonomous drive functionality when they launch it!
This recommendation from Gartner on how to deliver a successful IoT project is really worrying in my mind. I am a strong believer that when creating value with IoT we must innovate around the end-customer and not the current products and solutions. In the recommendation Gartner didn’t include the end-customer a single time!
If we compare to the 2016 state of digital transformation research we see that the top driver (55%) for digital transformation is evolving customer behaviour and preferences. It also shows that the biggest challenge (71%) is understanding the customers.
Business models innovation & disruption
We have for a long time seen how open source software have eroded the value in many markets like Android’s destruction of smartphone profitability, Linux as server OS etc. But be aware, we will start to see that in increasing scale on hardware – just see what Facebook is doing with the open compute project. If I were cisco I would be really worried!
I think everybody needs to understand what is happening in china and this article: “What $50 Buys You at Huaqiangbei, the World’s Most Fascinating Electronic Market” is a good introduction.
In Europe I do not think we understand the impact of the Prime business model by Amazon but today almost 50% of households in the USA are a subscriber and the reason why they receive so many perks are displayed in graph below!
To the full extent to understand how lyft and uber is killing taxis but also creating a bigger market for personal mobility (taking on car rental and car ownership) you can take a look at the graph in this article.
Ways of working to create value
I work a lot with a lean start-up inspired way of working and this was a really good podcast describing how to scale that in enterprises. There were many good things discussed so if that interests you, please listen here.
This is a good article on how to view and measure ROI on innovation
I am a believer in agility and that companies’ needs to be able to move quickly in the world that we live in today, but most time when agile development is implemented in companies you see a Product Owner which is an administrator of the backlog and not driving the product vision. This is very unfortunate while that means that lots of time is wasted in developing things that does not create value for the customer. Please read this article which summarize many of my own thoughts!
One reason to why we are in the situation as above is also that most product managers has not kept up with the change and still in Sweden for example there is not a appreciation for the product management discipline. Hopefully we will see that change and often one part of my job is to train, inspire and coach product managers to be able to work with the new situation. Here is one nice article describing evolutions of product management to product thinking which is one path.
and some fun
This is a really funny way to use drones for delivering a message when it is most hurtful :-)