The power of digital transformation prepping for the future

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1 The power of digital transformation prepping for the future Sherman Crancer Sr. Business Development Manager Microsoft - Western U.S Microsoft Corporation. All rights reserved.

2 Contact Information Sherman Crancer Sr. Partner Channel Development Manager Twitter

3 Agenda The power of digital transformation prepping for the future Thought Leadership Special Guest Jerod Powell Digital Transformation Defined Digital Foundation Optimization Innovation Approach to modernization Summary

4 Jerod Powell Founder & CTO of Infinit Jerod Powell is a result-driven and highly accomplished IT leader with 20 years of experience in building and managing technology-based firms focused on cloud computing, hosting, managed services and product development. A true IT innovator and an accomplished businessman, Jerod is an expert in all aspects of IT, strategic planning, project management, M&A, process optimization, compliance and organizational development. Jerod is currently Chief Technology Officer at INFINIT Consulting, Inc., a highly acclaimed IT provider and consultancy company he founded in Contact info: jpowell@infinitconsulting.com Office: P a g e 4

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6 Joseph Schumpeter Creative destruction is an economic innovation theory introduced by Joseph Schumpeter in the 1950s. It describes the process of industrial (r)evolution that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.

7 Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society.

8 CLOUD By 2020, IDC predicts that enterprise spending on cloud services, the hardware and software to support cloud services, and the services for implementing and managing cloud services will exceed $500 billion, more than three times what it is today. INNOVATION CAPACITY The DX economy operating at scale will be driven primarily by code. IOT IDC predicts the number devices on the IoT will more than double to 22 billion and drive the development of 200,000 new apps and solutions that take advantage of them. These devices and solutions have the potential to redefine competitive advantage in virtually every industry. DATA By 2018, IDC predicts that the flow of external data into organizations with advanced DX strategies will increase by as much as a factor of five while high-end DX performers will increase their "data out" by 500-fold or more. AI Cognitive systems are already providing critical assistance to organizations dealing with the tsunami of data. Spending on cognitive software platforms is forecast surpass $1 billion this year and will scale up dramatically over the next three years. DIGITAL DISTRIBUTION DIGITAL FAÇADE In the expanding DX economy, industry cloud platform and community participation will become increasingly vital to scale up digital supply chains and digital distribution channels by as much as 100- to 1000-fold. IDC predicts that the number of industry clouds will reach 500 or more by 2018, up from today's 100-plus. As the DX economy compresses pricing in many sectors, IDC predicts that 60% of B2B and 80% of B2C enterprises will overhaul their "digital front doors" - and the customer engagement systems behind them - to support 1,000 to 10,000 times more customers and customer touchpoints than they do today. IDC predicts that will be the biggest, most complex enterprise-wide DX initiative that organizations will have to face, requiring a fundamental cultural and operational transformation. Reference: IDC Predicts the Emergence of "the DX Economy" in a Critical Period of Widespread Digital Transformation and Massive Scale Up of 3rd Platform Technologies in Every Industry 4 November, 2015

9 DX Market Perspectives In 2019, spending on DX initiatives will reach almost $2.2 Trillion (~$500B SMB), 60% more than 2016 By % of Cloud Services revenue will go through channel/brokers By 2020, the cloud broker landscape serving SMBs will become highly verticalized, offering cloud based business services. Source: IDC FutureScape 11/1/16: Worldwide IT 2017 Industry Predictions 9

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11 Digital Foundation Services SMB self awareness, improve the customer experience, empower employees, Microsoft based foundational cloud-services, and digital intelligence. Optimization Services Business and system intelligence services to streamline, automate and optimize SMB processes, systems and workflow. Transformation Services SMB solution ideation, validation, design and creation of new products, services and business models.

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13 1 Digital Foundation

14 DX Situational Awareness Market knowledge Understand overall market dynamics and competitive landscape Understand your customers, what changes will impact them Self knowledge Self evaluation Relevance Education on disruptive digital technology P a g e 14

15 INTERNET OF THINGS (IoT) IoT is changing and transforming everything from business to life. Imaginations DX are boundless and opportunities are infinite. The good Making technology work for you Smarter and more efficient way of utilizing your devices and data The bad Lack of privacy and data security Data overload Lack of industry standard for devices The practical Predictive maintenance Enhance the customer experience in new ways P a g e 15

16 DX Advanced Analytics Without big data analytics, companies are blind and deaf, wandering out onto the Web like deer on a freeway. The good Provides a GPS perspective of opportunities ahead Gaining a complete awareness of customer and business needs The bad Analytics will define the difference between the losers and winners Complicated, what data, how to handle, and action The practical More-informed and better-targeted approach Significantly boosting cross-sell and up-sell results P a g e 16

17 DX AI and Machine Learning AI is not a single technology, but rather a collection of technologies that are applied to specific tasks, the effects of AI will be felt unevenly through the economy. The good Enable automation of some tasks that have long required human labor Improve people s lives by helping to solve some of the world s greatest challenges Advance social good and improve government operations The bad Impact on economy: eliminating jobs replaced by machines Artificial intelligence overpowering natural intelligence The practical Ensure that AI applications are fair, safe, and governable New jobs are likely to be directly created in areas such as the development and supervision of AI P a g e 17

18 AR and VR Worldwide Spending on Augmented and Virtual Reality Forecast to Reach $13.9 Billion in 2017, According to IDC DX The good Consumer market largest driving force, followed by retail and discreet manufacturing Gartner believes businesses of all shapes and sizes will begin layering digital information in the form of text, images, video and/or audio on top of the physical world in their stores and workshops. The bad Content lagging behind gadgets Security vulnerabilities, identity protection and new cyber/virtual crime concerns Human detachment from physical reality The practical Layered data/content on physical environment for manufacturing and retail shopping experience US largest investor followed by Asia. Secures America s position in a competitive global market P a g e 18

19 DX Tactical and Strategic Planning Establish and execute get well plan Identify and understand the end to end customer journey Establish a digital foundation based on cloud-based services Implement initial advanced business analytics Implement business management system/philosophy Establish new vision, strategy and execution plan P a g e 20

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21 2 Optimization

22 DX Business Optimization Leveraging data from existing business and productivity systems, establish baseline staff and LoB productivity. Identify, document and analyze critical business processes, workflow, employee workflow, best practices, etc. Explore replacing legacy systems that negatively impact productivity Ensure existing legacy business operates optimally, building cash flow for reinvestment into the future.

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24 3 Innovation

25 DX Innovation Just about anything is possible technically, what could be dreamed up to transform and potentially disrupt your market. Ideas to radically accelerate growth or create new revenue streams with less resources. Explore business model change Embrace experimentation and growth hacking Globalization P a g e 26

26 Your Digital Transformation Journey

27 6-Step Digital Transformation Journey 28

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29 Summary o Digital Foundation o o Assessment and Awareness Health and Vitality o Business Optimization o o o Innovation o o Eliminate Waste Drive Efficiency Business Models Disruption

30 Jerod Powell Founder & CTO of Infinit Contact info: Office:

31 Summary 1. Digital Foundation a. Awareness b. Health and Vitality 2. Business Optimization 3. Innovation

32 Contact Information Sherman Crancer Sr. Partner Channel Development Manager Twitter

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