Welcome. Can you believe this is the fourth module, future is now. We will have three fantastic labs, and the first one is this Business As Usual, No More. Remember that you have learned many interesting and practical techniques, tools, and models along the way. Until now we have covered nine labs and the journey approaches the top. Let's think about the future. We are to get ready for the next years to come. A new reality for leaders, for business people, for our society. My suggestion, think ahead do not wait for the future, instead, create the future. To do that, you have to understand some relevant changes. First of all, let's start by one term that you will listen more and more, The Great Reset. It was launched by The World Economic Forum, known by its annual meeting in Davos, Switzerland. It is a global cooperation between private and public sectors, The Great Reset. The main forum outcome is the need for resetting and reshaping the world in a way that is more aligned with the United Nations Sustainable Development Goals. It's a must understanding how you can be this future leader aligned with this reset. As the world rapidly changes, leaders must be able to lead change. But not only, I would say also themselves be the change. What is the reality? Clearly the rules of the game have changed. There is a new future starting now, the World Economic Forum has reported that around 50 percent of the workers will need reskilling on the next decade. While 94 percent of business leaders expect a new business reality accelerated by the digital transformation. Leaders will face extraordinary new challenges and must learn to think differently about their role. This is your main challenge. Disruption is about innovation and transformation. You have to learn the difference between them. Let's start by learning what innovation is. In simple terms, innovation is finding new ways to improve or change something that already exists. Innovation is rethinking, re-imagining, and reinventing the business you are leading. Innovation is creating value. We can remember many good examples. One of them is how WhatsApp innovated the communications industry. This is one of the best examples of being innovative generating value. Lego has been changing the materials of its famous bricks to make them much more ecologically friendly. Another one, the first electric vehicles introduced in the cars markets were a typical example of an innovation. Another example was given by Amazon, after being a model of innovative company itself, it acquired Zappos by 1.2 billion US dollars. Zappos is an American online shoe and clothing retailer based in Las Vegas. The acquisition brought innovative ideas to Amazon. They increased value creation. How to apply innovation as a leader? Of course, it all depends on the autonomy you have. But one thing is for sure, innovation is based on the value proposition giving for the client, for the markets, for the stakeholders. To create innovation, you must stimulate an environment of openness and experimentation. What is my advice? One thing should be your guide. Improve the value proposition of what you do, the processes, products and services you deliver. After understanding innovation, let me explain what transformation is. Transformation is the evolution from a current level to a different and better state. As the term says to transform is to seek a different way, a new format, a new way of delivering it out of the box. Let me give you an example. GE is already using the latest 3D printing technologies to produce more than 20 different airplane parts. GE is transforming the industry. This is because 3D printing dramatically reduces the cost of transportation and storage. This generates a huge impact on value proposition. They are investing 3.5 billion US in this project by next year. Let me give you another example on transformation. I do not need to explain IBM. After a journey of success, they invested more than 30 billion US to acquire the leader of open source, Red Hat. Red Hat proposes open source and unique solutions on hybrid clouds. They are helping global companies to increase their value proposition, and finding new markets. More than thousand companies around the world adopt the OpenShift Container Platform to drive business applications. This is digital transformation. Ask yourself, are you connected with digital transformation? What do you know about it? Are you taking part in any task force to help your company disrupt the way you deliver your value to the markets? This is imperative, go for it. Don't be afraid of the new, search for it. Stay with me now. This should be one of the most important moments of this course and maybe of your life as a leader. Promise me that you will seek transformation. Better understanding on how to innovate your work. Participate in the development of new business models. Create there master the art of disruption. In order to decide what to do as a leader, you should balance your time and efforts to routine innovation and transformation. My rule is 70, 20, 10. Seventy routine, 20 innovation, 10 transformation. But let me explain. You should dedicate 70 percent of your time and efforts to routines that need to be done in a conventional way. Keep the good practices, maintain what is being done properly and generating value for stakeholders. However, about 20 percent should be dedicated to innovation. That is, optimize what you were doing, either through an improvement in processes or through adjustments to optimize productivity, profit margin, client retention, etc. Transformation: about 10 percent of your commitments should be invested in terms of hours of work, effort, training and meetings focused on transform what you deliver. That's why I say that disruption is in the balance between these three states of leadership. Again, 70 percent maintaining routine and processes, 20 percent investing in innovation and roughly 10 percent in transformation. That is a great balance. Disruptive tools leads to disruptive ideas. Think about it. Mobile phones existed before the sharing economy was made practical. Before social media explosion, your mission is searching for these three states, transformation, innovation, and keeping the routine. That's why this lab was titled business as usual no more, and I add leaders as usual no more. You have to stay tuned. Looking ahead and anticipating the moves. That is my proposition. Fasten your seat-belt and here we go for the future. As a leader who crafts the future, lead the transformation, search innovation, create the space for experimentation for failure and success for learning, remember lifelong learning. Following the lab model after learning together, let's apply our new knowledge. See the readings I am proposing, try to think disruptively, apply these new concepts and benefits for creating the future. See you on the next lab, Human Digital Transformation.
