Evolution of Competition: Beyond the Red Queen Mark Casey Global Managing Director, Deloitte – Media & Entertainment Industry

“Well, in our country”, said Alice, still panting a little, “you’d generally get to somewhere else if you run very fast for a long time, as we’ve been doing.” “A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do to stay in the same place. If you want to get somewhere else, you must run at least twice as fast as that!”

The evolution of competition in mobile handsets Simple Price 2003 L Stylish Price Secure H L Performance H

The evolution of competition in mobile handsets Simple Cheap Price 2005 L Stylish Chic Price Cachet Secure H L Performance H

The evolution of competition in mobile handsets 2007 Cheap Web Price 2005 2007 L Chic Web Price Cachet Web H Here, you run as fast as you can just to stand still L Performance H

The evolution of competition in mobile handsets 2007 Cheap Web Price 2005 L Chic Web Apps Photos Music Facetime Web Price Web Cachet H L Performance H

The evolution of competition in mobile handsets 2007 Cheap Web Price 2005 L 2010 Chic Web Apps Photos Music Facetime Web Price Web Cachet H L Performance H

From “more 4 less” to “free” 2007 2003-2007 2010 Simple Web Cheap Price L Web Apps Photos Music Facetime Stylish Chic Web Price Web Cachet Secure H L Performance H

From “more 4 less” to “free” 2007 2003-2007 2007-2010 2010 2003-2007 Simple Web Cheap Price L Web Apps Photos Music Facetime Stylish Chic Web Price Cachet Web Secure H L Performance H

From “more 4 less” to “free” Cloud AI 2003-2007 2007-2010 2010 2003-2007 Simple Cheap Web Price L Web Apps Photos Music Facetime Stylish Chic Web Price Cachet Web Secure H IoT Blockchain L Performance H

Existing IT models are built on scarcity and optimization within silos Cloud AI L Price H IoT Blockchain L Performance H

Existing IT models are built on scarcity and optimization within silos Alternative models are taking root at the fringes Existing IT models are built on scarcity and optimization within silos Future success requires us to work across boundaries More for less amounts to “Red Queen” innovation Cloud AI L Price H IoT Blockchain L Performance H

Human knowledge is expensive to create and apply A.I. is improving, but also expanding the limits of human capabilities Human knowledge is expensive to create and apply But eventually, the machines will be smarter than their masters Current A.I. solutions break this tradeoff in niche applications Cloud AI Siri L Price Watson H IoT Blockchain L Performance H

The cost of information has long imposed significant constraints For now, all three approaches are getting better The cost of information has long imposed significant constraints But eventually, systems might manage and improve themselves IoT solutions are breaking these tradeoffs at the fringes Cloud AI Siri L Price Watson H IoT Blockchain L Performance H

Transactions costs can be significant Authentication and validation will be distributed and almost costless The Red Queen reigns….for now Transactions costs can be significant Blockchain is reducing these costs in some cases Cloud AI Siri L Price Watson H IoT Blockchain L Performance H

Don’t think this could happen to us? Enhance and extend vs. transform From timid to bold From “more for less” to “free” From more to free OTHER OTHER

Don’t think this could happen to us? Ed Zander 2003 Jorma Ollila 1992 35% 15% Jim Balsillie 1984 20% OTHERS 40%

Time to US$1bn Valuation ….and who saw it coming?! Larry Page Years Mark Zuckerberg http://www.statisticbrain.com/ceo-statistics/ Evan Speigel Age of CEO as of Dec. 2015 55 43 31 44 39 39 26 23 Lifespan of a company, listed on the S&P500, has decreased from 67 years (1920s) to 15 years (today) Palmer Luckey

They didn’t think this could happen to them >10% >2% >1% Ed Zander 2004 - 2008 Jorma Ollila 2003 - 2006 OTHERS < 87% Jim Balsillie 1984 - 2012

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