Technology Reconnaissance: A new step for Continuity Management Matt Doernhoefer, CBCP 10/7/2014
Why BCPs? Confluence of concepts Continuity Professionals Process Technology IMPACT Technology Process People People 2 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
A little history: Death of an empire 1985 1989 1994 1997 2004 2010 2013 First store opened Enters NYSE Bought by Viacom for $8.4B Return to profitability Goes online Bankruptcy filing warnings Last store closes 3 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
The BIA Is your most powerful tool Identifies impact to business Catalogues the process lifecycle Planning for the new disaster 4 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Saving Blockbuster Could it have been saved? 30 Second BIA Buying videos High Impact rating Packaging videos High Impact rating Renting videos Very High impact rating Process Problems Process Failure Business Failure 5 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Saving Blockbuster (cont.) Could it have been saved? 30 Second BIA Buying videos High Impact rating Packaging videos High Impact rating Renting videos Very High impact rating Netflix undercut acquisition costs Netflix undercut packaging costs Netflix undercut distribution costs Mission Kill is just as effective as Catastrophic Kill Process Problems Process Failure Business Failure 6 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Changing the game New business models Netflix s secret Understanding new concepts Online commerce Recognizing new paradigms Streaming as delivery Agility = Resilience 7 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
What do I get? Why should I do this? Forward thinking: Breaking our reputation of reaction Competitive Edge: This is a competitive advantage Added Value: We can bring more value to the business Yeah smart guy, why should I? 8 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Added value? Securing (y)our future Ensuring Business Continuity Driving new business 9 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
New Technology New Opportunity Do Nothing: Accept the risk the new tech provides, take no action Monitor: Inform management of the tech and its potential impacts Acquire: Bring in/fund new tech research with a sole-source acquisition on the tech 10 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Taking this upstairs Use the following: Approach the CIO/CTO Here are some disruptive informational technologies Approach the CFO Here are the financial impacts of up and coming techs Approach R&D Replacements in these techs can impact our processes Approach Strategic Planning Here are technologies that can impact us in the next 2-3 years 11 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Back to the BIA All roads lead back here Continuity Professionals Process Technology IMPACT Technology Process People People 12 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Technology Reconnaissance
Product X Generic life cycle Innovation Growth Maturity Decline Hesitator Didn t want to pay for it Units sold Acceptor Early Adopter (FanX?) Time since launch 14 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Thousands Technological Progress Speeding up overall Patent Applications since 1993 600 500 400 300 200 Patent Applications 100 0 15 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Product X Now Next gen. life cycle Innovation Growth Maturity Decline Units sold Time since launch 16 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Market Shift? What s that? Incredibly fast changing environment Nokia RIM iphone/android Market Share in 2007: 50% Market Share today Market Share in 2009: 41.6% Market Share in 2013: 94% Nokia RIM iphone/android Market Share in 2012: 3.7% Net market cap loss: 85% Market Share in 2013: 2.7% Net market cap loss: 90% Market Share in 2013: 94% 17 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
How long do I have? VHS DVD - Streaming VHS DVD Streaming 1976-2005 1995-2005 2011 - Present Total elapsed time: 10 years Nokia Blackberry iphone/android Nokia RIM iphone/android Peak: 2007 Peak: 2009 Peak: 2013 Total elapsed time: 6 years 18 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Millions Completed Market Shifts Creative destruction at work Netflix Contributing Revenue 250 200 150 100 50 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Quarterly Report Source: Note: DVD Streaming 19 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
So what do we do?
Be the man on the wall 21 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Why BCPs? Confluence of concepts Continuity Professionals Process Technology IMPACT Technology Process People People 22 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Looking for the iceberg Its out there Be Aware: Technology is moving faster. Daily updates are happening Be Open Minded: Just like a Black Swan, any technology can be a threat Be Bold: When in doubt, ask. You don t have to understand everything, just what pertains. Others can help 23 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Taking action now 1 2 3 Pull Down the BIA Our critical tool use accordingly Read the News Knowledge is power use it wisely Gut Check! Does it make the hair on the back of your neck stand up? 24 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Forest, trees, and mountains 25 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
One Last Story: Resurgence of an empire 1991-1993 1997 2001 $16B in Losses Develops supercomputer to defeat chess champion Creates world's first transistors out of carbon nanotubes 2007 Developed 38,000 patents since 1993 2011 Natural language computer defeats Jeopardy Champion 2013 Net income $16B 26 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Questions? Contact information: Matt Doernhoefer mdoernhoefer@deloitte.com Phone: 571-246-1274 27 Footer Copyright 2014 Deloitte Development LLC. All rights reserved.
Attributions: "IBM logo" by Paul Rand [1] - Captured from the front page of the IBM Notice of 2007 Annual Meeting and Proxy Statement.. Licensed under Public domain via Wikimedia Commons - http://commons.wikimedia.org/wiki/file:ibm_logo.svg#mediaviewer/file:ibm_logo.svg Digital Camera image: Kodak/Sasson About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2014 Deloitte Development LLC. All rights reserved. 36 USC 220506 Member of Deloitte Touche Tohmatsu Limited