BEST SEEN IN FULL-SCREEN MODE My keynote from #GetSocial2017 in Dublin, Ireland, detailing the challenges created by digital disruption and some tips on how to bring people along on the Digital Transformation Journey. Employees like process and equilibrium and abhor change, yet tech disruption demands change. How do you anticipate the disruption and then transform the team to adapt and adopt?

1. Everybody talks about disruption
LIKE IT’S A GOOD THING ERIC WEAVER • #GETSOCIAL2017

2. YYoouu mmaayy kknnooww
mmee ffrroomm mmyy ssiixx
yyeeaarrss aass aa gguueesstt
lleeccttuurreerr iinn tthhee
DDCCUU MMaasstteerrss ooff
DDiiggiittaall MMaarrkkeettiinngg
pprrooggrraammmmee
TALK TRACK: My name is Eric Weaver, I’m the VP of Communication & Marketing Solutions at Xerox. This is the
sixth year I’ve been back to DCU to lecture in the Digital Marketing Programme – thanks to this guy, Dr. Theo Lynn.

3. TALK TRACK: My consulting friends and I often laugh when we see the word Disruption bandied about. How did this cheesy buzzword become such a trendy thing? Why is it always said in
somewhat breathless tones?

4. 1979TALK TRACK: I’ve been either hired to create disruption – or to help companies deal with disruption – since my very first job. In 1979, I was a very young, very naïve management trainee
for General Motors, and I was assigned to work on every aspect of the stamping, assembly and paint lines to understand the business. Auto factories like the one I worked in had these
massive machines used to stamp out hoods, roofs and doors. When they operate, the forty-ton presses shake the ground.

5. TALK TRACK: But when you put enormous machines, sharp oil-covered steel, and people together, accidents happen. Every day I’d see a trail of blood — often a LOT of blood — leading to
the factory hospital. The oil-coated sheet steel was extremely heavy and razor sharp. It’d cut right through your safety gloves. The workers would drop the steel blanks and sometimes they
might peel back some skin, muscle tissue or slice off some toes. It wasn’t pretty.

6. Polyurethane
Enamel • Metal flakes
Resins• Isocyanates
TALK TRACK: And then there’s the paint room, where workers spent long hours, breathing metallic paint into their lungs, despite the protection. Getting it in their eyes. Enamel fumes in
their brains all day long. It was hellish, inhumane work and definitely a lifespan-shortening job. Workers would develop severe asthma. Cancer. Even brain damage.

7. 1984TALK TRACK: After I learned the basic realities of the car business, my next job was to help install automation. My team put some of the very first robots on the plant floor to automate
certain tasks and hopefully take away some of the physical danger and stop those trails of blood through the factory.

8. TALK TRACK: The only problem was that, despite the safety benefits, the disruption brought by automation created fear. Even though the automation at that time was very experimental
and applied only to the most dangerous jobs. Inevitably someone would come in at 3am and smash the control units. We’d encase them in sheet steel and they’d smash the connectors.
Talk about violent resistance. I’d ask the guys: instead of making $17/hour, why not make $117/hour as a robot technician? For the first few years, the answer was ALWAYS the same
across the board: “NOPE.” And if an adventuresome worker wanted to try, they were pressured by their peers, sometimes forcibly, not to participate in any kind of training.

9. TALK TRACK: Over time, GM persisted and the employees made the transition. But it took years. Today, for example, ALL paint rooms, like this one, are automated. The car comes in, the
robots spring to life, and the paint guns produce a perfect paint job in one single pass. The paint is magnetized to stick directly to the car body so it’s not attracted to anything or anyone
else. No drips, no cloud of metallic mist. A perfect job every time. The workers simply monitor the robots. The important thing: they live longer lives.

10. 1994TALK TRACK: Fast forward to 1994, where my agency was approached by Procter & Gamble. They wanted to know if we knew what this World Wide Web thing was and should they be
on it. I went to my CFO to ask for the money to set up a domain and email server to demonstrate that we knew our stuff. He asked me…

11. “WHY DO WE NEED
INTERNET EMAIL WHEN WE
HAVE PERFECTLY GOOD
VOICEMAIL & FAX
SYSTEMS?!?”

12. TALK TRACK: Fortunately I was able to convince him to try and we won the business from Procter & Gamble. Shortly thereafter, we had version 1.0 of PG.com. It was the beginning of a
seismic revolution in how P&G – and many early adopters – engaged its customers. A new type of customer experience and the dawn of digital marketing. Created through disruption.

13. 1999TALK TRACK: Fast forward again to 1999. I was on stage at a large conference for car dealers, proposing to bring online sales and inventories to dealers around the country, and they
were not having any of it. They were actively trying to boo me off the stage. They didn’t see the Internet as a shiny new sales channel - they saw it as us giving away their secretive dealer
pricing and operational costs. Consumers would know EVERYTHING! After an hour of testing my patience, my diplomacy, my professionalism and my deodorant, the dealers agreed to give
it a try — and my team built the very first online inventory and test drive scheduling systems. Disruption wasn’t their first choice. I had to bring them along.

14. Even today, with brands dying off from digital disruption,
there are two universal truths.
TALK TRACK: Remember HMV on Grafton Street? I used to spend hours in there. Another victim of disruption as recently as three years ago. Digital is STILL disrupting business. And
transforming business. Bad. And Good. No matter what year, which industry, there are two universal truths that still ring true…

15. 1. No one likes disruption.

16. 2. People, Culture and Process are the make-or-break aspects of
Transformation.

17. IN OTHER WORDS, YOU HAVE TO BRING PEOPLE ALONG.

18. Equilibrium (immovable object)
TALK TRACK: The reality is that PEOPLE are the mechanism by which companies create value — yet once our teams find equilibrium with their skill sets, culture and process, prying them
from that hard-won equilibrium is quite difficult. As the world gets more complex, when it comes to getting work done, people like simplicity, clarity and routine. Job insecurities can
create a culture of keeping one's head down. They may not tell you they’re unhappy about disruption. Because KPIs must be achieved. Bonuses, where they exist, must be had. Who wants
to rock that boat? People can be a bit of an immovable object.

19. Innovation (irresistible force)
TALK TRACK: But pushing against team equilibrium is the constantly accelerating flow of Innovation, and increasing urgency from upper management to adopt that innovation to try to
save some money. We all know this continuous unstoppable force of innovation is creating increasing opportunities, and improving efficiencies, but also creating more competitive threats,
and more challenges to incumbent business models. Imagine moving between Los Angeles and San Francisco at 1200 kilometers/hour in a vacuum tube. Or would you prefer the train?!?

20. Airbnb: €28 billion valuation. 2,000,000 listings.
Hilton Hotels: €22 billion. 500,000 rooms.
TALK TRACK: Let’s take a look at one poster child for digital disruption: AirBNB. Founded in 2008, AIRBNB, which owns no properties, has a higher valuation than the largest US hotelier –
Hilton.

21. OneFineStay: competitor disrupting Airbnb. Adds local hotel
concierge, club and spa services.
TALK TRACK: And yet – sure enough – now AirBNB is being disrupted by a new competitor named OneFineStay. They provide rooms in high-end homes but add things like access to local
hotel concierges, clubs and spas. The best of an AirBNB model coupled with the investments and amenities of the best hotels.

22. Another
disruption poster
child: Uber
TALK TRACK: Another poster child for the Crowd Economy, Uber was launched in 2010 in the US. It’s typically held up as a poster child for digital disruption. And it’s disrupted a number
of industries.

23. 2014: UberRush disrupting package delivery
TALK TRACK: Uber drivers now delivery Amazon Prime Now four hour deliveries, disrupting US logistics companies like UPS and the US Postal Service.

24. 2015: Uber valuation surpasses GM, Ford, Nissan, Hyundai
TALK TRACK: Five years after launch, Uber’s market valuation surpassed several car manufacturers, including 107-year old General Motors, Ford, Nissan and Renault.

25. June 2015: Paris taxi drivers riot against Uber
TALK TRACK: Drivers around the world who were concerned about this intrusion into their markets started to protest and even riot. At first, I thought, “what are they complaining about?
A lot of taxi companies are awful! More convenience for the consumer! Let competition improve the market.”

26. Jan 2016 :
530 taxi
drivers made
redundant
TALK TRACK: And then I saw this: the largest taxi company in San Francisco, Uber’s home base, has gone bankrupt. More people out of jobs. More people who weren’t brought along with
the innovation – for which the innovators had no solution.

27. 2017: AAmmaazzoonn bbeeggiinnss
ddiissrruuppttiinngg ppaacckkaaggee
ddeelliivveerryy —— aanndd UUbbeerr ——
wwiitthh nneeww tteecchh
TALK TRACK: And now we have Amazon disrupting both the logistics industry – and disruptor Uber!

28. October 2016: are we ready for this?
TALK TRACK: This happened five months ago: Uber, of all companies, used drones to fly over cars in slow-moving traffic on a motorway in Mexico City. This is all happening extremely
quickly. Faster than we may be ready to deal with. How does law enforcement deal with this kind of intrusive advertising? The potential safety risk?

29. You know it’ll
happen.
Are we really
ready for this?!?
TALK TRACK: When you’re in the business of evaluating innovation, you have to look at both the bright spots and the potential challenges. Are we really ready for this?

30. Ready or not – here it comes!
TALK TRACK: So whether we’re ready for it or not, technological innovation is forcing adoption. Adaptation. And disruption. Faster, and faster, and faster, and faster.

31. 7744%%
of CEOs are
concerned about
new entrants
disrupting their
business
KKPPMMGG,, 22001155
TALK TRACK: It’s in this crazy environment that management teams are realizing that they can’t pause in the face
of innovation. They see this potential and threats and their mandate is pretty urgent. In the US, a majority of CEOs
are concerned about new entrants disrupting revenue.

32. 7777%%
of industries
anticipate
massive digital
disruption by
end of 2017.
HHAARRVVAARRDD BBUUSSIINNEESSSS
RREEVVIIEEWW,, 22001166 TALK TRACK: And 77% of categories anticipate massive digital disruption by the end of the year. So, being hesitant
in the face of innovation? There’s no time.

33. 47%of
businesses haven’t
started digital
transformation.
33% won’t execute
this year (!)
IDC, 2016
TALK TRACK: Yet despite this pressure from above, those tasked with executing transformation are struggling with
a bit of anxiety. They’re hesitant to start because they’re not quite sure where to start. And a third have decided to
put things off until next year. Just easier to deal with that way.

34. So, executives
need to start.
Many are afraid
to start. And
time is running
out.
What do we
transform?
And how? TALK TRACK: So we have this mandate to change and a simultaneous terror about getting started.

35. AAUUDDIITT YYOOUURR
OORRGGAANNIISSAATTIIOONN
SStteepp 11 PROCESSES. WWhhaatt’’ss nnoott wwoorrkkiinngg?? WWhheerree
ddoo ddeeppaarrttmmeennttss nneeeedd ttoo ccoonnnneecctt??
SYSTEMS & TOOLS. WWhhaatt’’ss mmiissssiinngg??
PEOPLE. CCaann tthheeyy bbee rreessiilliieenntt??
COMPETITORS. WWhhaatt aarree tthheeyy
aannnnoouunncciinngg?? MMiissssiinngg??
VISION. CCaann yyoouu sseeee wwhhaatt’’ss ddoowwnn tthhee
rrooaadd?? LLooookk ppaasstt tthhee nneexxtt ffiinnaanncciiaall
qquuaarrtteerr??

36. FFOOSSTTEERR AA
CCUULLTTUURREE
WWHHEERREE CCHHAANNGGEE
IISSNN’’TT AA DDIIRRTTYY
WWOORRDD
SStteepp 22 Incent your employees to submit
innovative ideas.
Encourage their creativity, curiosity and
“crazy ideas.”
Hold “Innovation Days” and hackathons.
Pay employees for their efforts (or pay
later when you lose competitive advantage).
Fund their great ideas.
Ask them to rethink their tools.

37. EENNCCOOUURRAAGGEE
FFEEAARRLLEESSSSNNEESSSS
SStteepp 22

38. Xerox Internal Use Only
35%of
3M revenue
comes from
ideas of the
last four years
TALK TRACK: Google and 3M are great examples of companies who have encouraged fearlessness. For example, 35% of 3M's company revenues come from products released in the last
four years. Employees are rewarded with bonuses for winning ideas. THAT’S the kind of leadership needed to guide, nurture and support innovation and resilience.

39. CCRREEAATTEE AA PPAATTHH
TTOO AANN AAGGIILLEE
OORRGGAANNIISSAATTIIOONN
SStteepp 33
INNOVATION MANAGEMENT PLAN
Detail the whys, whats, hows and the
business case supporting the changes.
Identify and quantify the potential
financial impact of competitive threats.
Tie the plan to management KPIs and
you'll have better chance of obtaining
their support.
Identify procedural changes and
handoffs to ensure rapid response to
market threats.
Tie them to the brand.

40. Fear and hope are the two emotions that determine
acceptance or rejection of transformation initiatives.

41. ACKNOWLEDGE
FEARS. “Will I keep my
job? What if it goes
away? Will I earn less?
Can I even learn this? If
this change happened,
what’s next? What if
someone else is better
at this than I am?”
“Do these people even
give a $#%@ about
me?”

42. BUILD HOPES. “What
might this do for my
future? Can I make
more money? Will I be
more marketable? Will
the new role be more
intellectually
stimulating? Does this
let me add more value?
Will the entire team be
happier? Ann loves the
new role – maybe I will
too.”

43. BBRRIINNGG PPEEOOPPLLEE
AALLOONNGG
SStteepp 44
Acknowledge fears and uncertainties
around the changes involved in
implementing transformation
Write both Agility and Resilience into
employees’ Personal Goal Plans and
performance appraisals
Create real financial incentives to
promote creativity and idea sharing that
go beyond “here’s a $25 gift card for your
revenue-generating idea”
Conduct workshops to help employees
walk through new processes and handoffs
Speak to hopes and opportunities!

44. Encourage, don’t force
“Open-minded” more important than “digital”
Let them choose their own tools and processes
Challenge them to challenge their own thinking
TALK TRACK: A few tips. Not everyone is digitally minded. And that’s okay, they don’t have to be. They have to be competitive and open-minded.

45. It’s all on you, manager
YOU are the go-
between for
Management & Staff
You’re the management
whisperer, champion,
cheerleader, and spirit
guide
Provide regular
progress updates,
innovation awards,
team success stories
No one else can do this
but you.

46. ANTICIPATE THE
IRRESISTIBLE FORCE.
TRANSFORM THE
IMMOVABLE OBJECT.
TALK TRACK: The list of shuttered companies who failed to anticipate is long. You’ll need to anticipate the pace of innovation headed your way. Don’t let a natural reticence to disrupt
your team’s equilibrium turn the firm into another Borders, Blockbuster or Radio Shack. Transform your culture and process. Bring people along!

47. THANK YOU!
@weave
http://j.mp/weave-presos