New Rules of the Game

October 16, 2021

New arena. New players. New vectors. New rules.

Today, the digital world revolves around artificial intelligence. Nothing in the technological universe unrelated to this new and powerful paradigm is relevant anymore. Five complementary technologies surrounding AI currently stand out:

• Internet of Everything

• X-Reality

• Genomics

• Insideables

• Robotics

And the following magical quartet makes up the technological infrastructure:

• Data Analytics

• Cloud Computing

• Social Network

• Blockchain

The current digital intelligent paradigm is built precisely around the catalyzation of those five AI-enabled technologies, supported by the infrastructural quartet.

The digital competitive arena is certainly about mastery of new technological paradigms. Nonetheless, in essence, the arena expresses value vectors for digital operating models. In particular, the digital competitive arena features three value vertexes that strengthen one another.

• Hub centricity concerns the pursuit of a central position in the value chain, with prominent control of the relationship with final customers, collecting and enriching data, creating brand value, owning the biggest share of the value chain by connecting other partners and vendors, and becoming the very operating interactive platform of the engaged and monetizable customers.

• User Experience concerns the development of solutions from the customer viewpoint, with emphasis on meaningful experiences to the detriment of a technical-operational take on products and services. Turning the product-push logic into client-pull has been one of the greatest contemporary challenges faced by incumbents in industries besieged by new digital native startups.

• Share of Wallet concerns the search for recurrent monetization, rather than transactional, from a consistent engagement cycle, expanded to the context of virtual communities. Freemium strategies coexist with even more aggressive models based on costless offers, monetized indirectly through advertising. In any case, the operational rationale around a product’s lifecycles is abstracted.

Always on, Always beta. This is the strategic motto that sums up today’s greatest imperative in the business world. Between being more perfect or faster, choose the BETA mode. Between being more accurate or more affordable, choose the ON mode.

The client-pull logic inverts the order of things, subverts the essence of beliefs. The product-push self-centered momentum opens roads for a new way of doing business. The interactive cycle for the development of meaningful experiences transforms the value proposition, and from that, it also transforms the whole operating model.

Such interactive cycle decodes Customer Insights to quickly enhance the meaningful journeys through DevSecOps processes capable of delivering enhancement packages practically Just In Time, thus raising Client Experience perceptions. The cycle repeats itself infinitely in spirals of journey improvement, data enrichment, increased customer lifetime value (LTV), reduced new client acquisition costs (CAC) and, as such, exponential value.

This is the new global economic order. Who is truly prepared?

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Daniel Augusto Motta é Managing Partner e CEO da BMI Blue Management Institute. Doutor em Economia pela USP, Mestre em Economia pela FGV-EAESP e Bacharel em Economia pela USP. É Alumni OPM Harvard Business School. Atua também como Managing Partner da corporate venture capital WhiteFox sediada em San Francisco (EUA) e como Senior Tupinambá Maverick na content tech Bossa.etc. Também atua como Diretor de Planejamento Estratégico da UNIBES e Membro do Conselho Deliberativo do MASP. Foi Membro-Fundador da Sociedade Brasileira de Finanças. Foi Professor nos MBAs da Fundação Dom Cabral, Insper, FGV, ESPM e PUC-SP. É autor de diversos artigos publicados por Valor Econômico, EXAME, VocêSA e Folha de São Paulo, e também tem três artigos publicados pela Harvard Business Review Brasil. É autor dos livros best-sellers A Liderança Essencial e Anthesis.