© IDC, 2017...Teradata Appoints Oliver Ratzesberger President and CEO, succeeding Victor L. Lund Teradata announces CEO Transition Victor L. Lund appointed Interim CEO Unit4 appoints

1© IDC, 2017

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Welcome to the future enterprise:

tech-everywhere, platform-based, ecosystem-centric

with innovation as the norm.

Sounds cool, doesn't it? But the question for all organizations is, how

do we get there?

IDC's predictions are focused on helping organizations understand the

2020 action plan across the following critical areas:

• Technology: Which emerging technologies need to be incorporated

into platforms to underpin the future enterprise?

• Leadership: How will the key stakeholders of the digital dream

team execute on the road map?

• Value: How can organizations redefine value to incorporate not just

financial metrics but also ecosystem and social impact elements,

taking into account the ethical impact of technology on society?

In this document, you will find the decisions that should be made

for 2020 through the lens of the CEO. The objective is to ensure that

we remove the traditional IT/business/digital debate once and for

all.

"We created 10 game-changing predictions that we think are going

to shape the market in 2020 and beyond. We highlight the future

enterprise and how we need to redefine value, leadership, and

technology as we move toward the future. We hope these

predictions will help European enterprises to plan their 2020

strategies." said Phil Carter, Chief Analyst at IDC.

Looking forward to 2020

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START UPSResearch Innovation Councils

VENDORS Briefings, events and presentations

ANALYSTSInsights, Opinions and Data Analysis

TECH BUYER COMMUNITYCIOs, CxOs, CISOs, Heads of Innovation

Thank You to the Community

© IDC 62

By 2021, 82% of the revenues derived from DX business models will be

ecosystem driven By 2022,Digital risk will become a standard reporting mechanism as part of financial statements

By 2020,60% of enterprise blockchain investments will be driven by the

need to enable ecosystem business models that rely on the secure exchange of data

CX will become the new enterprise competitive differentiator that creates a $47 Billion market in Europe by 2022

By 2019, 60% of all European CIO will be implementing a new IT

foundation as part of an organization-wide DX platform strategy

By 2020, 60% of organizations will use two or more cloud platforms leading companies to seek Multi-cloud management services to reduce complexityBy 2022,

50% of the initial analysis of IoT data will occur at the Edge

By 2020, Lack of IT skills will affect 90% of all European organizations resulting in $91b of lost revenue annually

By 2022,one in four employees in large European businesses will have

an intelligent digital assistant to handle routine work, enhancing their productivity by over 20% By 2021,

75% of European enterprises will use digital KPIs to drive and reinforce their transformation

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30

40

50

60

70

Brexit Trade wars Economic

Slowdown

Low / No impact

Moderate

impact

IDC C-Suite FutureScape Poll

Source: IDC FutureScape C-Suite Poll, 2019. N=40

Impact of Macro-economic Events on European Organizations in 2020

European Union GDP Annual Growth RateSource: tradingeconomics.com

Time for Financial Discipline

GDP Forecast Growth Rate

of 1.4% in 2020

Source: IDC Europe, 2019

BP boss Bob Dudley to step down next year after a decade

as CEO

Google founders Page and Brin

announced that Google CEO Sundar

Pichai will be replacing Page as the CEO of

parent company Alphabet.

Peter Plumb makes

surprise exit from Just Eat

Harald Kruger steps down as CEO of BMW

Gavin Patterson leaves his

post as CEO of BT

Tesco chief executive

Dave Lewis steps down in

surprise departure

HSBC has unexpectedly parted

ways with its chief executive, John Flint, less than 18 months

after his appointment

WeWork founder Adam Neumann is stepping

down as CEO of The We Company

The chief executive of RBS, Ross McEwan, has

resigned after five and a half years in the post

ServiceNow names former SAP chief Bill

McDermott as CEO

Teradata Appoints Oliver RatzesbergerPresident and CEO, succeeding Victor L.

Lund

Teradata announces CEO

Transition Victor L. Lund appointed

Interim CEO

Unit4 appoints Mike Ettling, former SAP

SuccessfactorsPresident, as CEO

HP announces CEO Dion Weisler is

stepping down after four years in the

role

Mike Lawrie steps down as DXC CEO,

Mike Salvino to take the leadership

Expedia CEO, CFO resign after

clash over strategy with

board

Guess CEO Victor Herrero to step

down, former top executive Carlos

Alberini named as his replacement

Q2 2019Q1 2019 Q4 2019Q3 2019

The Mounting Pressure to DeliverLeadership Changes: CEOs Under Pressure

80%Of the CEOs are under pressure to execute a

successful Digital Transformation

Source: IDC FutureScape poll, 2019. N=40

Future Enterprise

© IDC, 2017

VALUE STRATEGY BUSINESSMODEL

TECH PEOPLE

Digital Impact Framework

Delivering Business Outcomes from Digital Investments

By 2022,

25% of the top 500 European

companies will have at least

two board members with

digital business excellence

capabilitiesSource: IDC European FutureScape 2020

The ‘New’ BoardHome of a Diverse Skill-Set


TECH PEOPLE

Digital Impact Framework Delivering Business Outcomes from Digital Investments

$ FinancialRevenue & Profit

EcosystemCo-creation & Co-opetition

PurposeEnvironmental & Societal

The New Definition of Business Value

$ Financial35% growth on digital business in 2018Tripled Share Price in 3 Years

EcosystemStrong Commitment to open source

Purpose11 million shoes produced using recycled ocean plastic



TECH PEOPLE


Consumer in control

Transformation of Networks

Digitisation & Technology

Social Commitment & Sustainability

98%Germany

94%United Kingdom

93%France

95%Russia95%

of European Organizations plan to Sustain or Increase their Tech Budgets in 2020

Source: IDC European Tech and Industry Pulse Survey 2019-2020, Dec 2019 (n=2793)

96%Italy

91%Czech Republic

96%Spain

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2018 2019 2020 2021 2022 2023

European Tech Spend 2018-2023 ($M)

Source: IDC Worldwide Digital Transformation Spending Guide, 2018H2Note: IT Spending excludes Telco and Business Services

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2018 2019 2020 2021 2022 2023

European Tech Spend 2018-2023 ($M)

Source: IDC Worldwide Digital Transformation Spending Guide, 2018H2Note: IT Spending excludes Telco and Business Services

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2018 2019 2020 2021 2022 2023

31%

51%

DX

Digital Transformation Spend Will Account for

51% of Total IT Spend in Europe by 2023

In 2020, European organizations will spend over

271 Billion dollars on Digital

Transformation, but only 16%will deliver new revenue streams

Source: IDC European FutureScape 2020


TECH PEOPLE


24

Suppliers New Customers

Co-creators Product & Services

Customers Prosumers

The Value Loop of the Future

Data-Driven Platform-Enabled Ecosystem-Centric

Enterprise Data Growth in Europe

27%YoY Growth

3,7 million Petabytes

by 2020Source: IDC Global DataSphere, 2019.

Data Visualization

Top Market Deals 2019

$26,2BSalesforceAcquires

Tableau for

$15,7B

SAPAcquires

Qualtrics for

$8B

Google announced its plan to buy

Looker for

$2,6B

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03

DATA Consolidation

DATAVisualization

04

The Data Maturity Journey

01

DATA Analytics

DATAMonetization

Value Strategy BusinessModel

PlatformPeople

The Digital Outcome Framework

The Digital Blueprint for Multiplied Innovation

By 2022,

data collected from connected

devices will generate a revenue

opportunity of $10,5B for the

top 500 European OrganizationsSource: IDC European FutureScape 2020

29

36 millionpoint-earning activities

Vitality Shared-Value Insurance

14% £64 million

New Business

Operating Profit

108%

Lives Covered

7% to 577000

Member Engagement

Behavioural Clinical + Financial Actuarial Data

PLATFORM

30

30



Customers Prosumers


Real-time Retail Economy

The Microgrid Economy

The as a Service Economy

Open Banking Economy


TECH PEOPLE


The Technology Foundation of the Business Models of the Future

By 202560% of European organizations will

modernize their core IT leveraging

the cloud resulting in a 25% business productivity improvement Source: IDC European FutureScape 2020

Source: IDC Europe, 2019

Q2 2019Q1 2019 Q4 2019Q3 2019

2019The Next Phase of the Hyperscaler Revolution: Big Deals, Partnerships & the Ecosystem Expansion

VW and AWS announce partnership to develop

the Volkswagen Industrial Cloud together. Siemens is also included as part of

the deal

Microsoft invests $1 billion in

OpenAI as part of strategic partnership

Microsoft and Oracle in major partnership to

interconnect Azure and Oracle Cloud

offerings

Microsoft and SAP enter into 3-year partnership to run S/4 HANA

in Azure

Microsoft announced an open manufacturing

platform, with BMW Groups a key first

partner

AWS announces new cloud

region in Spain to come online

in 2022

Google and ServiceNow is major strategic partnership

around ML/AI and service integration

Google expands strategic partnership

with OpenText around enterprise information

management

Microsoft wins $10 billion JEDI

contract with the US Department of

Defence

Microsoft announces partnerships with Renault-Nissan-Mitsubishi for connected car

experience

Allianz partners with Microsoft to digitally transform

the insurance industry

Microsoft and Daimler signs strategic

partnership around cloud data and

analytics

Google acquires CloudSimple

If you are planning to migrate SAP workloads to the public cloud,

which environment are you planning to move to?

Source: IDC Multicloud Survey, 2019 N=218

AWS

Microsoft Azure

Google Cloud Platform

IBM

Others36%

28%

18%17%

Azure IBM AWS GCP

Overall Cloud Platform Market Share in Europe

Source: IDC Public Cloud Tracker, 2019

Perception in Mission Critical WorkloadsSAP example

Others

73 %Of the European CIOs

want to be ‘The Orchestrator’ of

Digital Transformation Source: IDC CIO Summit 2019 pre-event survey (n=46)

By 2022,

30% of European organizations will define

a new technology leadership role

combining CIO, CTO, CDO &

Innovation functions


© IDC38

How is the CIO (or the head of IT) in your organization currently measured?

4%

27%

55%

55%

79%

82%

Others

Revenue Management

Customer Satisfaction

Risk Management

Cost management

Business Alignment

Source: IDC FutureScape poll, 2019. N=40

By 2023,

70% of European Intelligent

Process Automation (IPA)

initiatives will be infused by AISource: IDC European FutureScape 2020

Forecast Design Make Deliver

Retire/ReplaceEvaluate

UseBuy

Service

Automated, Connected & IntelligentProcesses

SaabDefence & Security

KBIs

Return on Experience

Customer Effort Scores

Experience Level Agreement

Employee Net Promoter Score

Key Behavioural Indicators - KBIs

Clients do not come first. Employees come first. If you take care of the employees, they will take

care of the clients. ”Richard BransonFounder of Virgin Atlantic

By 2022,

60% of the TOP 2000 European

organizations will replace KPIs with KBIs to accelerate employee and customer advocacy


TECH PEOPLE


The Digital Dream Team

Finance Leaders

CFO, Finance Director

Technology Leaders

CIO, CDO , CTO, Head of Innovation

Security/Risk Leaders

CISO, CRO, DPO

Customer Experience Leaders

CMO, Head of CX, Head of

Digital Experience

Operations Leaders

COO, Head of Supply Chain

Employee Experience Leaders

CHRO,

Head of Talent , People &

Culture

The Financial Impact of the Digital Skills Gap in Europe

Mind the Skills Gap

By 2022,

a third of European organizations will fail to accelerate business

agility and innovation due to a

copy-cat culture

Aviva’s Digital Garage

App Explosion

Developer Explosion

Embedded in the Business

From Innovation Lab to Innovation FactoryThe Catalyst for Cultural Change

Endpoint Security

Identity & Digital Trust

Software

Messaging Security Software Network Security

Security Analytics,

Intelligence, Response and

Orchestration

Web Content

Inspection Software

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

4% 5% 6% 7% 8% 9% 10% 11%

The Security Market Opportunity in Europe

YoY Growth – 2020/2019

Sh

are

of

Tota

l M

ark

et

20

20

Size of bubbles: market opportunity 2020

Source: IDC European Software Tracker, 2018H2.

Security Operational Excellence

Risk Management to Deliver Business Impact

Digital Trust Enabling Digital Transformation

IDC’s Roadmap to Security Value

2022is the cut-off point for CISOs to

establish themselves as

business leaders who can

provide digital trust


Risk Manager

Crisis Handler

Financial Acumen

Trust Enabler

Communication Skills

Future CISO Beyond Technical Expertise

54© IDC, 2017

By 2024,

50% of European public

companies will report annually

on the ethical use of data, automation, and AI in their

organizations


55© IDC, 2017

ING launches Data Ethics Council and Data Ethics Principles to guide AI application development and operations

$ FinancialRevenue & Profit

EcosystemCo-creation, Coopetition

PurposeEnvironmental & Societal


57



Customers Prosumers



58



Customers Prosumers



TRUST

© IDC 62

By 2022,25% of the top 500 European companies will have at least two board

members with digital business excellence capabilities

In 2020, European organizations will spend over 271 Billion dollars on Digital Transformation, but only 16% will deliver new revenue streams

By 2022, data collected from connected devices will generate a revenue opportunity

of $10,5B for the top 500 European OrganizationsBy 2025 60% of European organizations will modernize their core IT leveraging the cloud resulting in a 25% business productivity improvement

By 2022,30% of European organizations will define a new technology

leadership role combining CIO, CTO, CDO & Innovation functions

By 2023, 70% of European Intelligent Process Automation (IPA) initiatives will be infused by AI

By 2022, 60% of the TOP 2000 European organizations will replace KPIs with KBIs to

accelerate employee and customer advocacyBy 2022, a third of organizations will fail to accelerate business agility and innovation due to copy-cat culture!

2022is the cut-off point for CISOs to establish themselves as

business leaders who can provide digital trust

By 2024, 50% of European public companies will report annually on the ethical use of data, automation, and AI in their organizations

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TECH PEOPLE

Digital Impact Framework

95%1.4% 16% 35% $180B

Tech Everywhere

‘Do Well & Do Good’

‘Strategy@Scale’

Uncertain Times

Exponential Thinking

Use Case Obsession

‘The Money Makers’

‘Intelligence, Automation, Connectivity’

DIY Culture

‘Mind the Skills Gap’

Explore more predictions content:uk.idc.com/trends/european-futurescape-2020

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Documents

© IDC, 2017...Teradata Appoints Oliver Ratzesberger President and CEO, succeeding Victor L. Lund Teradata announces CEO Transition Victor L. Lund appointed Interim CEO Unit4 appoints