Digital Disciplines: Attaining Market Leadership via the Cloud, Big Data, Social, Mobile, and the Internet of Things

Praise for DIGITAL DISCIPLINES

"Eye–opening, especially in terms of the multitude of possibilities it covers that are worthwhile exploring, and the dangers that could befall those who do not fully appreciate the necessities of the digital era."
Fred Wiersema, Customer Strategist and Chair, B2B Leadership Board, Institute for the Study of Business Markets at Penn State; co–author of the top–selling The Discipline of Market Leaders

"Be forewarned if you pick up this book, your digital marketplace will never be the same again. Be prepared for an avalanche of business coming your way!"
Arun Pudur, Group President, Celframe & Pudur Group of Companies, named Asia′s wealthiest under–40 entrepreneur

"A guide for business people wanting to proactively develop the digital disciplines required to transform their organization in hypercompetitive environments."
William Ruh, Vice President, GE Software

"Joe Weinman knows better than almost anyone else where we are headed."
Hossein Eslambolchi, CEO, CyberFlow Analytics, Former President and CEO of AT&T Labs, AT&T CIO, and AT&T CTO

"The marriage of cloud and business strategy has never been explained better."
Tim Horan, Managing Director and Senior Analyst, Oppenheimer & Co.

"A timely resource for the latest ways your organization can use emerging technologies to reengineer your processes and deliver more customer value."
Brad Power, Analyst and Harvard Business Review contributor

"Very few people understand information technology much less know how to convey that knowledge the way Joe Weinman does."
Barb Darrow, Fortune

"I don′t know anyone who can bring together business and technology in such an illuminating and entertaining way as Joe Weinman."
Ray Le Maistre, Editor–in–Chief, Light Reading

"Meticulously researched, well argued and witty, this book will be compelling for business executives, academics, and anyone who wants to understand how technology is transforming the economy and the world."
Mike Dover, Co–author, Wikibrands: Reinventing Your Company in a Customer–Driven Marketplace

FOREWORD xvii

PREFACE xix

ACKNOWLEDGMENTS xxiii

PART ONE Overview and Background

CHAPTER 1 Digital Disciplines, Strategic Supremacy 3

From Value Disciplines to Digital Disciplines 4

Information Excellence 7

Solution Leadership 8

Collective Intimacy 9

Accelerated Innovation 10

Exponential Value Creation 11

The Leadership Agenda 13

Information Technology in Context 15

Notes 17

CHAPTER 2 Value Disciplines and Related Frameworks 21

Value Disciplines 22

Operational Excellence 23

Product Leadership 24

Customer Intimacy 25

Importance of Focus 26

The Unbundled Corporation 27

Business Model Generation 30

Michael Porter and Competitive Advantage 31

Blue Ocean Strategy 33

Innovation: The Fourth Value Discipline 34

Notes 36

CHAPTER 3 Digital Disciplines 39

Information Excellence 40

Solution Leadership 42

Collective Intimacy 43

Accelerated Innovation 45

All of the Above? 47

Notes 49

CHAPTER 4 Digital Technologies 51

The Cloud 52

Big Data 54

Mobile 57

The Internet of Things 59

Social 60

Notes 61

PART TWO Information Excellence

CHAPTER 5 Operations and Information 65

Processes 66

Process Advantage 67

Process Optimization 72

Asset Optimization 74

Business Value of Information 76

The Role of Information Technology 78

Caveats 79

Notes 80

CHAPTER 6 The Discipline of Information Excellence 83

From People to Machines 85

From Physical to Virtual 87

From Virtual to Digical 88

From Processes to Experiences 89

From Operations to Improvement 90

From Static Design to Dynamic Optimization 91

From Mass Production to Mass Personalization 92

From Cost Reduction to Revenue Generation 92

From Direct to Indirect Monetization 93

From Touchpoints to Integration 94

From Firms to Networks 95

From Data to Actionable Insight 97

From Answers to Exploration 98

Notes 99

CHAPTER 7 Burberry Weaving IT into the Fabric of the Company 103

Operational Excellence and Product Leadership 105

From Operational Excellence to Information Excellence 105

From Physical to Virtual 106

From Virtual to Digical 107

From Processes to Experiences 109

From Mass Production to Mass Personalization 110

From Cost Reduction to Revenue Generation 111

From Touchpoints to Integration 112

From Firms to Networks 113

Notes 114

PART THREE Solution Leadership

CHAPTER 8 Products, Services, and Solutions 119

Competitive Strategy 120

Product Elements 121

The Experience Economy 125

Pricing and Business Models 126

Notes 129

CHAPTER 9 The Discipline of Solution Leadership 131

From Products and Services to Solutions 135

From Generic and Expected to Augmented and Potential 136

From Transactions to Relationships 138

From Sales Results to Customer Outcomes 139

From Standard Products to Custom Solutions 142

From Products and Services to Experiences and Transformations 143

From Standalone to Social 144

From Product to Platform 145

From Engineered to Ecosystem 146

Notes 148

CHAPTER 10 Nike A Track Record of Success 151

From Products to Solutions 153

From Generic and Expected to Augmented and Potential 154

From Transactions to Relationships 155

From Sales Results to Customer Outcomes 155

From Standard Products to Custom Solutions 156

From Products to Experiences and Transformations 156

From Standalone to Social 158

From Engineered to Ecosystem 158

Nike and the Other Digital Disciplines 159

Notes 163

PART FOUR Collective Intimacy

CHAPTER 11 Customer Experience and Relationships 167

Customer Intimacy 171

A Broad Spectrum of Relationships 173

Dimensions of Interaction 174

Collaborative and Content Filtering 176

Notes 178

CHAPTER 12 The Discipline of Collective Intimacy 181

From Transactions to Relationships 182

From Relationships to Intimacy 184

From Physical to Virtual 185

From Virtual to Digical 187

From Company to Community 188

From People to Algorithms 188

From Individual to Collective 191

Notes 194

CHAPTER 13 Netflix Entertaining Disruption 197

Information Excellence 199

Accelerated Innovation 200

Solution Leadership 201

From Relationships to Intimacy 202

From Physical to Virtual 203

From Virtual to Digical 204

From Company to Community 205

From People to Algorithms 205

From Individual to Collective 207

Notes 209

PART FIVE Accelerated Innovation

CHAPTER 14 Innovation and Transformation 213

Successful Commercial Innovation 215

The Innovation Process 219

Innovation Principles 221

Innovation of Products, Processes, Relationships, and Innovation 225

Business Model Innovation and Corporate Transformation 227

Notes 230

CHAPTER 15 The Discipline of Accelerated Innovation 233

From Solitary to Collaborative 235

From Internal to External 237

From Closed to Open 239

From Inside–Out to Outside–In 241

From Products to Platforms 242

From Linear to Agile 243

From Employees to Crowds 245

From Salaries to Prizes 247

From Theoretical to Data–Driven 248

From Human to Machine 250

From Incremental to Transformational 251

Notes 252

CHAPTER 16 Procter & Gamble Cleans Up 255

From Solitary to Collaborative 257

From Internal to External 258

From Closed to Open 260

From Inside–Out to Outside–In 262

From Employees to Crowds 263

From Incremental to Transformational 264

Notes 265

PART SIX Successful Execution

CHAPTER 17 General Electric Flying High 269

Digital Disciplines at GE 271

Software at GE 273

Information Excellence 274

Solution Leadership 276

Collective Intimacy 277

Accelerated Innovation 279

Notes 281

CHAPTER 18 Human Behavior and Gamification 283

Human Behavior 285

Gamification 289

Gamifying Information Excellence 290

Gamifying Solution Leadership 291

Gamifying Collective Intimacy 292

Gamifying Accelerated Innovation 293

Gamification across Disciplines 294

Notes 295

CHAPTER 19 Opower The Power of the Human Mind 299

Human Behavior and Energy Consumption 301

Opower, Information, and Intimacy 303

Notes 305

CHAPTER 20 Digital Disasters 307

Strategic Errors 308

Cyberattacks 310

Software Design and Development Challenges 312

Operational Issues 314

Unintended Consequences 315

Erratic Algorithms 316

Politics and Pushback 319

Digital Disappointments 319

Notes 323

PART SEVEN What s Next?

CHAPTER 21 Looking Forward 329

The Exponential Economy 329

Future Technologies 333

Opportunities 336

Critical Success Factors 337

Next Steps 340

Notes 342

ABOUT THE AUTHOR 345

INDEX 347

JOE WEINMAN is considered the leading global authority on cloud economics, and is the author of Cloudonomics: The Business Value of Cloud Computing from Wiley. He is the cloud economics editor for IEEE Cloud Computing magazine and a contributor to Regulating the Cloud: Policy for Computing Infrastructure. Weinman is an experienced senior executive with a career spanning R&D, corporate strategy, product management, operations and engineering, and marketing and sales at companies such as Bell Labs, AT&T, and Hewlett–Packard.