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1 Front Strategic page Leadership Who am I? Prof. Dr. Bob de Wit What concerns me? - How to lead digital transformation - How to design the strategy process - How to best govern a country - How to adapt business models What do I do? - Director, Strategy Works / Strategy Academy - Professor, Nyenrode Business University - Member, Rotterdam Economic Council - Author, Strategy: An International Perspective How to reach me? (0)

2 S E T T I N G T H E S T A G E The digital wave Digital space Digital The Digital Wave blurs the lines between the physical and digital spheres. Physical space 2 2 Source:

3 S E T T I N G T H E S T A G E Digitalization drives the evolution of demand TODAY Artificial Digital Industry Trade Agriculture 3

4 S E T T I N G T H E S T A G E Sectors experience change Mobility Health Security Finance Artificial Digital Industry Trade Agriculture 4

5 T H E D I G I T A L W A V E Scope: Digital developments disrupt almost every industry in every country Supply chain of steel stockholdings Suppliers Stockholding Customers No exchange on available inventory, lead time, etc. No exchange on available products, price, etc. Source: 5

6 T H E D I G I T A L W A V E Scope: Digital developments disrupt almost every industry in every country Industry platform of steel stockholdings Stockholding Industry platform All facets of the stockholding process are transparent and can therefore be leveraged by others Suppliers Customers 3rd party platforms 3rd party logistics Insurance Regulation & legislation Financial transactions Source: 6

7 Not one type of platform Industry Agriculture Communication and Networking Consumer Goods Education Energy and Power Industry Finance Health Care Iron and Steel Gaming Labor and Professional Services Local Services Logistics and Delivery Media Operating Systems Retail Transportation Travel and Accomodation Examples John Deere, Intuit Fasal LinkedIn, Facebook, Twitter, Tinder, Instagram, Snapchat, Flickr, WeChat, LINE Philips, McCormick Foods FlavorPrint Udemy, Skillshare, Coursera, Future Learn, edx, Duolingo Nest, Tesla Powerwall, EnerNOC Bitcoin, Lending Club, Kickstarter, Indiegogo Cohealo, SimplyInsured, Kaiser Permanente Klöckner PlayStation, Nintendo, Xbox Upwork, Fiverr, 99designs, Sittercity.com, Legalzoom, Threadless Yelp, Foursquare, Groupon, Angie s List Just Eat, Munchery, Foodpanda, Haier Group YouTube, Wikipedia, Medium, Kindle Publishing, SoundCloud ios, Android, MacOS, Microsoft Windows Amazon, Alibaba, Walgreens, Burberry, Shopkick Uber, BlaBlaCar Airbnb, Tripadvisor Source: Parker, Geoffrey G., Marshall W. Van Alstyne and Sangeet Paul Choudary Platform Revolution. W.W. Norton & Company, New York.

8 T H E D I G I T A L W A V E Industry platform on steroids: The Blockchain Current reality of international trade A promising future for international trade Banks Accountants Lawyers Insurances Source: 8

9 75 years 38 years T H E D I G I T A L W A V E Speed: Time to reach 50 million users 13 years 4 years 3 years 1 year.75 year 35 days 5 days Phone Radio TV ipod Internet Facebook Twitter Angry birds Pokemon Go Source: Citi GPS, Technology at Work (2015); Dobs, No Ordinary Disruption: The Four Global Forces Breaking All the Trends (2016)

10 I M P L I C A T I O N S O N B U S I N E S S M O D E L S Businesses need to create value differently LEARNING Failing to be personalized, real-time and everywhere implies inability to deliver value 10

11 S E T T I N G T H E S T A G E The artificial wave Intelligence Artificial The Artificial Wave blurs the lines between artificial intelligence and biotechnology. Biotechnology Source:

12 Our distorted view of intelligence 2017 In which year is Artificial Life expected to surpass humans? 12

13 A more realistic view of intelligence

14 Artificial Intelligence in law: IBM s ROSS J. Croft, Financial Times, 16 mei 2016; K. Turner, The Washington Post, 16 mei 2016; S. Liberatore, Daily Mail, 14 mei 2016

15 Governments and AI S. Denyer, The Independent, 22 oktober 2016; S. Millward, Tech in Asia, 3 november 2016; D. Galeon, Futurism, 4 december 2016

16 I M P L I C A T I O N S O N S O C I E T Y The Digital Wave is fundamentally altering societies: the future Percent of US jobs at risk due to digitalization Impact on the Netherlands high risk 47% medium risk 19% 2 to 3 million current jobs will be automated by 2025 low risk 33% Source: Frey, Carl Benedikt and Osborne, Michael The Future of Employment; Deloitte, De impact van automatisering op de Nederlandse Arbeidsmarkt. 16

17 I M P L I C A T I O N S O N S O C I E T Y Redefining work Automated and digitized work Work available for humans as the total of paid plus unpaid valuable activities 17

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