DIGITAL TRANSFORMATIONThe Era of Platforms

Our world is getting more “Digital” by the Minute

Smart Phones & Tablets - 1.9 Billion smartphones will be shipped by 2016 and tablet shipments will rise to 304Million1.9Bn

Connected “Things”- By 2020, 25 Billion connected “things” will be in use, in 2015 more than 4.9Bn connected things will drive disruption across industries.4.9Bn

Online Commerce - 450 Billion, estimated number of business transactions on the internet, B2B & B2C per day by 2020450Bn

The Data Flood - 35 Zettabytes of data expected to be created by 202035 Zb

Generation “C”– 65% of them are under 35 but they span the generations, empowered by technology to search for and consume across all platforms and all screens, whenever and wherever they want.

65%

Ubiquitous Connectivity – Nearly 2.3 Bn unique 4G connections will be active in 2020, this number excludes Machine to Machine connections.2.3Bn

How fast is this happening…

Adoption of Technology has accelerated to a dizzying Speed – can we keep up?

75 Yrs

2.5 Yrs

3 Yrs

4 Yrs

13 Yrs

38 Yrs

35 days

Something Very Interesting is Happening!

Business models are being turned on their heads

Creates NO Content.

The world’s most Popular content owner

Owns NO real estate

The World’s Largest Accommodation Provider

Owns NO Inventory

The World’s most Valuable retailer

Owns NO Vehicles

The World’s Largest Taxi company

The Perfect Storm

Exponential Technologies are fuelling this stormBig Data / Analytics

Sensors & Actuators

Mobile Technology

Cloud Computing

Natural User Interfaces

Ubiquitous Connectivity

Tech

nolo

gyTr

ends

Leve

rage

D

igita

l

Integrated Digital & Physical

Experiences

The Internet Of Everything

Automation Of

Knowledge Work

Big Data &

Advanced Analytics

The Social Matrix

Anything As A Service

Improve The Experience Enhance Productivity Find New Business Models

How does all of this impact Businesses ?

CAPEX

1

TECHNOLOGY MOVES FROM COST TO CAPITAL

IT SPEND

2

MOST INCREMENTAL INVESTMENT IS IN DIGITAL

ATTACKERS

3

UPTO 25% OF ENTERPRISE REVENUES WILL BE TAKEN BY “DIGITAL ATTACKERS”

ADOPTION

4

ADOPTION OF “DIGITAL” TECHNOLOGIES

WILL VARY

ROBOTS

5

ROBOTS AND ARTIFICIAL INTELLIGENCE JOINS THE WORKFORCE

Ada

pted

from

McK

inse

y Pr

esen

tatio

n at

Zen

sar

GPW

201

5 by

Nou

shir

Kak

aThe Enterprise of the Future has vastly different expectations from Technology

Digital Attackers capture upto 25% by 2025

Incremental revenues N.A. -2012-13, USD billion

Retail example Banking example Incremental revenues 2012-13, USD billion

Case Study Ant Financial Services Group

Total Active Users – 450 mln +

Yu’E Bao – 260 mln + users

My Bank & Ant Micro

Loan – 20 mln + Small

& Micro businesses

Zhao Cai Bao – 10 Mln +

investors

Zhao Cai Bao – 3.6 nln policies to 369 million customers

China’s most valuable financial technology company - valuation of roughly $60 billion - Financial-services affiliate of e-commerce giant Alibaba Group Holding Ltd.

Case Study Ant Financial Services Group

Shared Ecosystem

Consumers

Merchants

• Financial Services • Insurance • Wealth

Management • Payments • Credit

• E-commerce • News • Entertainment • Health care • Local Services

Competitive Advantage

• Alibaba’s large merchant and consumer base needs financial solutions

• Cloud & Data Analytics – Alibaba’s data insight provides deep understanding of consumer behavior

EconomicsProfit sharing agreement – Alibaba receives 37.5% of Ant Financials pre-tax profits

• Blue Ocean Products – Low cost micro online products like Merchandise returning insurance

• Cross sell opportunities with Alibaba

Case Study Ping An Insurance Group

Developed upstream digital platforms to create lead flow into Ping An’s traditional financial services

New

bus

ines

s lin

es

Trad

itio-

nal f

inan

cial

se

rvic

es

Banking Insurance Finance

Lu Fax Peer to Peer lending

platform

Qian Bao Online WalleT

Tian Kia Tong Social Networking

Hao Che Trading platform for

used cars

Wan Li Tong Loyalty points program

Acquire New Customers

One Account

• Large customer numbers, frequent interactions

• Data mining, precision marketing, customer migration

Most incremental spend is on Digital

90%65%

10%

35%80%

20%

2,750 450-650

750-950 3,440-3,500Global Enterprise IT spend (US$ billion)

-15-25%+25%

2014 Traditional spend evaporates

New Service lines 2020E

Digital Tech

Traditional Tech

Adoption will vary over the next 5 yearsWhen do you expect the following technology to reach and adoption level of more than

50%?

14

39

47

44

41

14

444454

27

26

40 44

1116194

70

Here and Now Medium term technology Far out

Enterprise Mobility

And mobile

Cloud (IaaS, SaaS and PaaS)

Social Media and Enterprise

connectivity

Process Automation

And digitization

Analytics Big data

Internet Of things

0 to 2 years

2 to 5 years

5+ years

Timeline to adoption

DIGITAL TRANSFORMATIONMaking It Happen

Developing a Digital Organisation – The Process

Current Business Growth Requirements and Future Business Augmentation Plans

• Internal Capabilities

• External Competitive Scenario

• Business Environment

1

Taking Stock

2

Digital Structure

3

Digital Culture

4

Re-engineer Processes

5

Technology

Dynamic Economic, Competitive and Technology Scenario

• Adaptability to innovation & change

• Create conditions for Digital Excellence

• Cross –functional collaboration

• Intrapreneurship mindset

• Adapt technology to improve performance and deliveries

• Embrace and prepare for disruptions

• Digital Analytics in decision making

• Digitizing processes

• Deliver unified customer experience

• Reviewing business models

• Ecosystems

• Awareness of latest digital innovations

• Flexible and adaptable IT infrastructure

Developing a Digital organisation – Creating the Digital Culture

Skill Development – The Experience Journey

AI supported BOTs with personalized cues

mapping aspirations and career paths.

Attraction Engagement

Multi modal access, performance maps with

real time contextual support and deep

analytics supported by Augmented Reality and

Virtual Reality

Positive Action

Actionable feedback, contribute content,

rewards hot higher levels of learning attainment.

Extension

Ongoing assessment on the job with personalized feedbacks and connects to mentors and rewards aligned with career goals

and opportunities available in the organization.

Developing a Digital organisation – Creating the Digital Culture

Skill Development -

Developing a Digital organisation – Trends to track and incorporate in your firm

• Security-aware application design

• Integrated database security

• Dynamic access controls

• Runtime application protection

• Block Chain Technology

Data Security• Internet of Things

• Wearable Devices

• Telematics

Digital Devices• Software intelligence

needs to be seen as across-the-board functionality

• Developments in cognitive computing

Artificial Intelligence• Platform based

Interconnected Ecosystems will reshape and align industries

Ecosystems

Transform – Surely but Securely

ganeshn@5FWorld.com

www.ganeshnatarajan.com