Mega Tech 2015 challenged agents to reimagine how technology can shape the real estate experience.
Keynote speaker R “Ray” Wang, the Principal Analyst, Founder, Chairman of Constellation Research, Inc. and author of the best selling book Disrupting Digital Business, explained why 52 percent of the Fortune 500 have been merged, acquired, gone bankrupt or disappeared since 2000; and it’s not technology driving the change. It’s a shift in how new business models are created in the new post-sale, on demand, attention economy.
“You must understand how business is shifting to understand how it will impact your market and your business. If you aren't saving client’s time or capturing attention, you've lost,” Wang said. "The pace of change in technology is fierce and this tech convergence powers digital disruption."
Top 10 Things Happening in the Digital Disruption
- Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage.
With the move from the Sony Walkman to the Apple iPod, consumers effectively stopped buying complete CDs and instead sought to pay for individual songs, respectfully the disruption meant spending dropped from $6 to $.99 a song. Not much long after, the iPhone came along and killed 27 business models across digital cameras, maps, navigation devices, flashlights and watches. “Think about, in your business model, what can you do to transformationally change the experience and to change the way you deliver.”
- We move from selling products and services to keeping brand promises in an attention economy.
It’s about the brand and the mission. People selling products are giving away products to sell services. “Business are not competing with another brand; they are competing for your time and attention. If you don’t save them time or money, they are gone.
- New unit cost pricing models enable disruptive business models to thrive.
Dollar shave club is an example, selling shaves as a service. Imagine the smallest unit of something you could sell to shift the way you think and change the way you package experiences.
- Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight.
More insights allow you to see what’s happening. After examining the commonalities of top sales representatives at one company, data revealed they all started in customer service and support so this was applied to sales training.
- If 20 percent of your revenue is not an insight stream by 2020, you won’t have a digital business model.
Creating brand new experiences based upon information and insights from data and the value of the information enables brand new selling experiences and business models.
- You can be the content, the network and the arms dealers. The digital winners will figure out how to vertically integrate all three.
Amazon, Google and Microsoft can do the network, the content and the technology; and each company remains determined to disrupt.
- Digital artisans emerge as organizations with the best math and design will dominate in a winner takes all world.
We need to humanize digital to bring the left and right brain together.
- People to people (P2P) democratizes distribution which strips out friction and transaction costs.
Tesla has done this by fundamentally destroying the auto dealer network by delivering direct. “If you are not adding value in the transaction, you will go away.”
- Design for customer segments of one.
The key is conduct one-to-one marketing, while providing mass personalization via marketing automation. Predictive intelligence is the future. By anticipating what people will do next, which results from machine learning, we can model people’s behaviors and market to them accordingly.
- We serve five generations of customers and workers, by digital proficiency, not by age.
Don’t use age as the segmentation; use people’s level of comfort with technology to determine how you interact with them.
“Digital Darwinism is unkind to those who wait. Focus on the brand and the mission and put new models into place using data, not gut decisions, to jump start growth and disrupt business. Disrupt or be disrupted,” Wang concluded.