Dawn of the DX Economy New Rules, Roles and Requirements. Paris, France

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1 Dawn of the DX Economy New Rules, Roles and Requirements May 2017 Paris, France

2 Business Industry Environment Why it s different this time.

3 The Road Ahead? Economic Stagnation Productivity Challenges Emerging Markets? Natural Resources Price Erosion

4 2 Business Market Dynamics in ,8 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 ICT Market Growth GDP Growth France WE Source: Consensus Economics, January 2017, IDC WW Blackbook, 2017 Euro Crisis Brexit Migration Elections, Populism

5 $ Trillion The Relentless March of Technology 1,2 Overall CAGR: 6.3% 1 0,8 CAGR 19.8% 0,6 0,4 CAGR 6.6% 0,2 CAGR -6.5% Innovation Accelerators ICT 3rd Platform ICT 2nd Platform ICT Source: IDC Worldwide Black Book, 2016

6 Dawn of the DX Economy By 2020, 40% of the European FT500 will see the majority of their business depend on their ability to create digitally-enhanced products, services and experiences By the end of 2017, revenue growth from information-based products will be 2X that of the rest of the portfolio for 1/3 of FT500 Speed of Change Breadth & Depth In 2019, worldwide spending on DX initiatives will reach $2.2 trillion, almost 60% larger than 2016 Process Impact

7 Massive Digital Disruption Average company lifespan on S&P Index (in years) #idcfuturescape 61 years 18 years 1 st Platform 2 nd Platform 3 rd Platform DATA: INNOSIGHT/Richard N. Foster/Standard&Poor s 75% of S&P 500 will be replaced by

8 Embracing the Digital Economy

9 Those Who Thrive in the Digital Economy will the Organizations that. Leadership Transformation Omni-Experience Transformation Information Transformation Operating Model Transformation Workforce Transformation Can execute upon a vision for digital transformation Blend digital and physical experiences to garner customer allegiance Turn information into a competitive advantage Create new digital revenue streams from connected systems Leverage technology to win the talent wars 9

10 The Digital Economy Requires New Masteries and Metrics Talent mastery (Worksource DX) Work optimization and talent sourcing Process, People, Culture KPI: Best place to work index Operational mastery (Operating model DX) Automated and agile processes Scale, Scope, Speed KPI: Critical process cycle time Digital masteries Leadership mastery (Leadership DX) CEO must take the DX driver seat Vision, Organization structure, Commitment KPI: Competitive share in core and new markets Relationship mastery (Omniexperience DX) DX is a customer-centric business strategy Reach, Relevancy, Reciprocity KPI: Net promoter score Information mastery (Information DX) Information is at the core of the DX economy Syntax, Semantics, Socialization KPI: % of revenue generated from information10

11 Emerging Digital Leadership By 2020, one third of CEOs and COOs of European FT500 companies will have spent at least 5 years in a tech leadership role By 2019, 70% of CIOs will recognize the limitations of traditional IT and embrace a leadership approach that embodies a virtuous cycle of innovation (L3D)

12 Digital Transformation Developer Teams & Communities over 80% By 2018, enterprises that embrace DevOps processes and enabling technology will increase the number of annual application code releases by 50% of European enterprises will have dedicated digital transformation or innovation teams by

13 Experiential Commerce and Customer Engagement 25% of Consumer-facing European FT500 companies will experiment with AR/VR as part of their marketing strategies in 2017 Over 1 billion people worldwide will regularly access apps, content, and data through an AR/VR platform by

14 Data as a Strategic Business Asset Monetization 40% By 2020, one third of the FT500 will be connected to open and automated information exchanges to enable rapid provisioning of data services for governance and product development of European IT projects will create new digital services and revenue streams that monetize data in a Privacyby-Design fashion by 2019

15 Artificial Intelligence, Everywhere! Cognitive/AI Spending: Select $ Billions Use Cases Heath: Diagnosis & Treatment % GROWTH 40% Manufacturing: Quality Management Retail: Automated Service Agents Today % GROWTH 52% GROWTH of all Digital Transformation initiatives, and 100% of all effective IoT efforts, will be supported by cognitive/ai capabilities by 2019 Source: IDC Worldwide Cognitive Solutions Spending Guide,

16 Managing Emerging Digital Risks By 2018, 60% of CIOs will help drive risk portfolios that enable adaptive responses to security, compliance, business or catastrophic threats By 2018, 34% of European security spend will be driven by EU data protection regulation and privacy concerns. 16

17 Cloud Enters Phase % By 2020, at least 45% of the European Enterprise IT Infrastructure and Software will be Cloud-centered (delivered as Cloud services or enabling Cloud services). 17

18 Industry Collaborative Clouds Surge 35% By end of 2018, the number of Industry Collaborative Platforms (ICP) will triple to more than 450, of which 35% will be from Europe

19 A bright future?

20 The Emergence of the 4 th Platform R&D/Innovators stage: now 2021 Early Adopters stage: Early Mainstream stage:

21 Augmenting Humanity Augmented sensing The future of our digital senses Embedded/Injectable Tech MIT and Microsoft research made a smart tattoo that remotely controls your phone Inequality, Employment Ethics, Humanity By 2020, one-third of health/life Security, Privacy sciences and consumer product companies will begin to develop the first wave of products and services integrating technologies with the human body Augmented memory & cognition The U.S. Military is developing brain implants to help restore memory Augmented bio-structure 3D printed guides used for complex nerve regeneration may treat spinal injuries Augmented mobility Augmented Identity This $40,000 robotic exoskeleton lets the paralyzed walk 21

22 Contact Steven Frantzen Senior VP, EMEA Region Phone: Mobile:

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