31
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Building Platforms For A Digital Society Partha Iyengar Gartner Fellow, CEO Research Country Manager Research (India)

3_Partha Iyengar_Digital Business Transformation - CISCO

Embed Size (px)

Citation preview

Page 1: 3_Partha Iyengar_Digital Business Transformation - CISCO

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or public ly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Building Platforms For A Digital Society

Partha IyengarGartner Fellow, CEO ResearchCountry Manager Research (India)

Page 2: 3_Partha Iyengar_Digital Business Transformation - CISCO

Agenda

What is Digital

Business

CEO Survey

Findings

Digital Business

“Template” &

Examples

“Born Digital”

Behavior

So what do YOU do?

Digital BusinessTransformation

Page 3: 3_Partha Iyengar_Digital Business Transformation - CISCO

What Is Digital Business?

The creation of new business designs reached by blurring the digital and physical worlds … via an unprecedented convergence of people, business and things.

Page 4: 3_Partha Iyengar_Digital Business Transformation - CISCO

010$0110010$100101001$011101011010101001$0011

of CEOs have technology in their top 3 priorities

Growth is a top 3 business priority for 64% of CEOs

of CEOs say they treat information like a balance sheet asset

24%

20% ofCEOs

Talent is the #1constraint to growth, cited by

38% of CEOs think they will invest in digital marketing, but…

..only 8%

think they will invest in the internet of things.

Over the next 5 years..

Gartner CEOSurvey 2014

Page 5: 3_Partha Iyengar_Digital Business Transformation - CISCO

AI 2025 50% agreeAI will replace millions of knowledge jobs in the

next 10 to 15 years

22% 2014 41% 2019

Digitally attributable revenue will double

over 5 years

95% dolong range planning most

between 5 to15 years

10% Mentioned the word ‘security’ in

their top 5 business priorities

34% Are changing business model,

now or in the next 2 to 3 years

19% believe the internet of things will be a top investment in the next 5 years

Gartner CEOSurvey 2015

Page 6: 3_Partha Iyengar_Digital Business Transformation - CISCO

84%of CEOs

Expect digital to increase profit margins

Wireless connectivity

Media Integration

Self-Parking

Heads-Up Display

Digital Dashboard

46%of product value will be digital by 2020

38%of CEOs

think

0 11 01

50%of CEOs

say their industries will be digitally transformed by 2020

0 1 1 0

Politicalunrestis thetopGrowth Customer Workforce

1 2 3

CEO top prioritiesfor 2016 / 17

their companies are industry pioneers

Gartner CEOSurvey 2016

4 IT

Page 7: 3_Partha Iyengar_Digital Business Transformation - CISCO

Digital Business Will Change Your Enterprise, Competitors and Industry

New Competitors

Improved Operations and Engagement

New Business Models

New Hybrid Industry

Sporting Goods Healthcare (hospital)

How

you

com

pete

New Revenue Products/Services

Reduce costs with IoT and 3DP in factories

Improve productivity with IoT in hospital

Launch new products: wearable fitness monitor & connected equipment

Launch new service: remote home health monitoring

Establish new points of care: retail locations, gyms, community centers

Retail pharmacies, fitness gyms, smartphone makers, health portals, seniors' homes, sporting goods brands, apparel brands, medical devices

New industry created:Connected "Lifecare?"

Launch joint ventures with health insurers, gyms, hospitals

Who

you

com

pete

aga

inst

SIC 3949 SIC 8010

Page 8: 3_Partha Iyengar_Digital Business Transformation - CISCO

Device mesh Information of everything

Adaptive security architecture

New IT Reality

Mesh app and service architecture

IoT architecture and platformsAdvanced systems architecture

Digital Mesh Smart Machines

Continuous and ambient experience

3D printing materials

Machine learning

Autonomous agents and things

Page 9: 3_Partha Iyengar_Digital Business Transformation - CISCO

Current Business +

Digital Technologies

= Digital Business

Internet of ThingsSmart machines3D printingHuman augmentationMobile, social, analytics, cloud

Digital TrendsSharing economyUnbanked coming onlineSecond screenQuantified self

New RegulationsLegalization of autonomous vehiclesLegalization of remote prescriptionsTaxation and trade policies on 3D printed goods

The Digital Business ‘template’

Page 10: 3_Partha Iyengar_Digital Business Transformation - CISCO

New Digital Products and Services

Financial Services

+ =Big data, social

Unbanked coming online

Digital Technologies

Digital Trends

New Regulations

"Mr. Ma (Alibaba), … has a trove of data revealing whether small firms pay their bills on time. He can also bundle together firms that know each other, so that a seller can help guarantee a bank loan to a regular customer. According to Alibaba the proportion of Ali-loan's lending that goes bad is a trifling 0.35%" Source: Economist

Eliminating digital divide. Banking licenses granted to e-commerce players

Digital Technologies

Digital Trends

New Regulations

Auto Insurance

+ =Internet of Things, mobile

Young drivers not owning cars, insurance too expensive One-day car

insurance, Tokio Marine

Legalize pay-as-you-drive insurance

Page 11: 3_Partha Iyengar_Digital Business Transformation - CISCO

Digital Business, Full-Scale Mandates

Manufacturer +

Digital Technologies

Digital Trends

New Regulations

=Internet of Things, big data, 3DP

Digitalization of service, maintenance & manufacturing

Industrial Internet

Country + =

Digital Technologies

Digital Trends

New Regulations

Financial inclusion, Transparency,E-government, Cashless society,“Smart City”

3G/4G (ubiquitous) access, digital services, CGI centric

Financial streamlining, Demonetization, Organized Industry segments,…

None

Digital India

Page 12: 3_Partha Iyengar_Digital Business Transformation - CISCO

"BornDigital"

A generation of organizations founded after 1995, whose operating models and capabilities are based on exploiting Internet era information and digital technologies as a core competency.

§ Not just startups — Amazon is 20 years old§ Not just small — Google has 60,000 employees§ Not just “bit” businesses — Tesla Motors makes

cars§ Not just American — Alibaba Group is Chinese

Enterprises?

Who Are the

Image: CC diane cordell v ia Flickr https://www.flickr.com/photos/dmcordell/4050185929 https://creativecommons.org/licenses/by-nd/2.0/

Page 13: 3_Partha Iyengar_Digital Business Transformation - CISCO

The No. 1 weapon of theborn-digital companies that will compete with you …

§ Is not more money.§ Is not special technology.

§ Is not a secret.§ Is not an excuse.

It is superior leadership thinkingand competencies.

Image: CC Jacob Bøtter via Flickr https://www.flickr.com/photos/jakecaptive/3205277810 https://creativecommons.org/licenses/by-nd/2.0/

Page 14: 3_Partha Iyengar_Digital Business Transformation - CISCO

REGIONAL CIO FORUMCONFIDENTIAL AND PROPRIETARY

14 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

10 Leadership Thinking and Competencies to Copy

Business Focus

Risk Judgment

Resourcing

Page 15: 3_Partha Iyengar_Digital Business Transformation - CISCO

So……

What do you (business leadership) do?

Page 16: 3_Partha Iyengar_Digital Business Transformation - CISCO

It starts with …

Changing Your Mindset

Page 17: 3_Partha Iyengar_Digital Business Transformation - CISCO

Roadmap for Digital Business

Leadership

1. Enable Digital Business Models

2. Build a Digital Business Technology Platform

3. Scale Bimodal IT to Digital-Class

Page 18: 3_Partha Iyengar_Digital Business Transformation - CISCO

Enable Digital

Business Models

1

Page 19: 3_Partha Iyengar_Digital Business Transformation - CISCO

Not Ready for Digital Business

ITNexus

Mobile

Social

Info.

CloudERP

CRM

BICore Systems

Page 20: 3_Partha Iyengar_Digital Business Transformation - CISCO

Mobile

Social Info.

Cloud

OTIoT

Smart Machines

ERP

CRM

BICore Systems

APIs

ITNexus

Physical Smart World

Ecosystems

Physical Smart World & Ecosystems: Part of Digital Business Models

Page 21: 3_Partha Iyengar_Digital Business Transformation - CISCO

Information Systems

Nexus

Physical Smart World

Ecosystems

Shift the IT Organization's Center of Gravity

Page 22: 3_Partha Iyengar_Digital Business Transformation - CISCO

Information Systems

Nexus

Physical Smart World

Ecosystems

IT Enables the Entire Digital Business

Sales

OperationsFinance

HR

Customer Experience

Sourcing

Supply Chain

External Partners

Marketing

IT

Page 23: 3_Partha Iyengar_Digital Business Transformation - CISCO

Build a Digital Business

Technology Platform

2

Page 24: 3_Partha Iyengar_Digital Business Transformation - CISCO

The (new) Digital Business Platform

Digital Business success depends on the creation and leverage of the new Digital Business Platform. Only one of these components (IT Systems) is internal to the enterprise and under it’s control

Page 25: 3_Partha Iyengar_Digital Business Transformation - CISCO

Employees

Partners

Building the Digital Business Technology Platform

Customers

Information Systems Platform

Customer Experience

Platform

IoT Platform

Ecosystems Platform

Things

Analytics and

Algorithms Platform

Page 26: 3_Partha Iyengar_Digital Business Transformation - CISCO

Employees

Partners

Information Systems Platform

Customer Experience

Platform

IoT Platform

Ecosystems Platform

Things

Data and Analytics Platform

Customers

Partners

Digital Business Technical Platform: Services Based, Loose Coupling

Endpoint Computing

Customer Portal and

Apps

Business and Operational

Analytics

Supplier Portal and

Apps

Multichannel Interaction and

Commerce

Connected Things

(Customer)

Customer Analytics

Customer-Facing and Public APIs

IoT Analytics

Connected Things

(Enterprise)

Connected Things

(Partner)

API Management

Software

Enterprise-Run

Ecosystems

Social Networks

Partner and Supplier Analytics

Industry and Partner-Run Ecosystems

Partner-Facing

Public APIs

Algorithm Engines

Employee Collaboration

and Workplace

OT Systems

Core Systems

Back-Office Systems

Customer ExperienceInformation Systems

Analytics

Things

Ecosystem

Business Intelligence

Page 27: 3_Partha Iyengar_Digital Business Transformation - CISCO

Scale Bimodal IT to Digital-Class

3

Page 28: 3_Partha Iyengar_Digital Business Transformation - CISCO

IT

Business

IT Mode 2

2016+How do we scale this?

2014Good for starting

For Many Enterprises, Their Bimodal IT Does Not Scale Well

Page 29: 3_Partha Iyengar_Digital Business Transformation - CISCO

Integrate and standardize here

Drive business innovation here

Mode 2

Mode 1

A Standardized Digital Platform Leads to Scalable Innovation

Innovation 1

Digitalized Service 5

InfoSystemsCustomer

Physical Smart World

Ecosystems

Page 30: 3_Partha Iyengar_Digital Business Transformation - CISCO

Agenda

What is Digital

Business

CEO Survey

Findings

Digital Business

“Template” &

Examples

“Born Digital”

Behavior

So what do YOU do?

Digital BusinessTransformation

Page 31: 3_Partha Iyengar_Digital Business Transformation - CISCO

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or public ly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Building Platforms For A Digital Society

Partha IyengarGartner Fellow, CEO ResearchCountry Manager Research (India)