Monetizing Digital Transformation (DX) in Europe Philip Carter Chief Analyst, IDC Europe IDC Portugal Directions 13 th of October,
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1 Monetizing Digital Transformation (DX) in Europe Philip Carter Chief Analyst, IDC Europe IDC Portugal Directions 13 th of October, IDC Visit us at IDC.com and follow us on
2 By the end of 2016, two thirds of the CEOs of the Top 500 European enterprises will have digital transformation (DX) at the center of their corporate strategy IDC Visit us at IDC.com and follow us on 2
3 Digital Transformation is a CEO Priority in Europe We re also taking advantage of the immense business opportunities offered by digitalization The possibilities of the digital revolution must be put to good use We will lead the digital revolution sweeping through the world We felt we have to go digital in a much more proactive way Joe Kaeser CEO Siemens Tom Enders CEO Airbus Jes Stanley CEO Barclays Paul Bulcke CEO Nestlé 3
4 Digital Disruption is Real 61 Years 1 st Platform 2 nd Platform 3 rd Platform 18 Years 75% of S&P 500 will be replaced by
5 Incumbents Digital Disruptor IDC Visit us at IDC.com and follow us on
6 By the end of 2016, two thirds of the CEOs of the Top 500 EMEA enterprises will have digital transformation (DX) at the center of their corporate strategy We intend to be the leaders for digital transformation of the automotive industry, Harald Krüger, CEO BMW IDC Visit us at IDC.com and follow us on
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8 Dealing With Digital Disruption in Europe Key Activities Creating new roles Creating Innovation labs Opening up the War Chest Developing Industry Cloud Platforms Building an Ecosystem 8
9 The Digital Divide is Developing 12% 5% Digital Disruptor OPTIMIZED Digital Transformer MANAGED 28% REPEATABLE Digital Player 34% Digital Explorer OPPORTUNISTIC 20% Digital Resister AD HOC Source: IDC, Digital Transformation MaturityScape Benchmark, n=413 Showing the % of organizations in the world at each stage of Digital Transformation 9
10 Kasper Rorsted, Newly appointed CEO of Adidas 10
11 11
12 IDC Visit us at IDC.com and follow us on 12
13 IDC Visit us at IDC.com and follow us on 13
14 Omni-Channel 3-D Printing Robotics Cloud Predictive Analytics Business Model Shift Augmented Reality Cognitive Computing Innovation Digital Disruption Internet of Things Regulation Chief Digital Officer Digital Economy Industrie 4.0 Apps Analytics Information Management Virtual Reality Big Data Change Mobility Crowdsourcing IoT Data Lakes Sharing Economy Data Digital Enterprise 14
15 Competition will be based on Digital Innovation IDC Visit us at IDC.com and follow us on 15
16 The New KPIs for a Digital Organization DIGITAL LEADERSHIP DIGITAL OMNI- EXPERIENCE DIGITAL INFORMATION DIGITAL OPERATING MODEL DIGITAL WORKFORCE 33% 35% 100% 40% 50% of CEOs will have technology leadership experience improvement in Net Promoter score when customers own their experience growth of revenue from informationbased products of operational processes will be self healing reduction in management layers IDC Visit us at IDC.com and follow us on 16
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18 What is the Single Most Important Role IT Could Play in Your Organization s Digital Transformation? 32% INNOVATION Help us identify which parts of the business could be digitally transformed though the use of technology 25% TECHNOLOGY Identify emerging technologies that could accelerate our digital transformation 24% PROJECT MANAGEMENT Manage our digital project implementations IT is Needed to Help in the Digital Transformation IDC Visit us at IDC.com and follow us on 18
19 Innovation in Action Lawyerbot 19
20 The Innovation Accelerators Enable New Business and Consumer Experiences Source: IDC 20
21 Creating Islands of Innovation IDC s research shows that the culture of digital experimentation and innovation is often being driven outside the realms of Traditional IT Despite being standalone Islands of Innovation, they often deliver significant business value and potentially deliver new revenue streams To execute on an enterprise wide DX strategy requires organizations to integrate these innovative use cases with traditional IT environments and scale them across the broader organization IDC Visit us at IDC.com and follow us on 21
22 The Rise of the Chief Digital Officer (CDO) Lubomira Rochet, Chief Digital Officer, L Oreal Source: IDC EMEA, DTx Survey,, May 2016; Departmental N= 200, Enterprise wide N=728 63% of Iberian Organizations have appointed a CDO (or head of digital) over the last 12 months IDC Visit us at IDC.com and follow us on 22
23 But the reality is that the CIO is leading most enterprise wide digital transformation initiatives CIOs are key in leading digital transformation initiatives Only 25% of CDOs are leading enterprise wide DX initiatives Source: IDC EMEA, DTx Survey; Enterprise wide N=728 IDC Visit us at IDC.com and follow us on 23
24 CIO Operation al CIO Disruptive THE Vendor MANAGER and Contract Management IT Cost Reduction IT Service Availability Business Process Optimization THE LEADER Business model transformation Business agility and insight Enabler of new technology based products and services 24
25 3 Key Steps That You Can Take to Monetize Digital Transformation (DX) 25
26 1. Deliver a Black Belt Information Architecture for DX Source: IDC EMEA, DTx Survey,, May 2016; Departmental N= 200, Enterprise wide N=728 IDC Visit us at IDC.com and follow us on 26
27 2. Rebalance IT Talent Portfolio for Digital Competencies RETRAIN INVEST OUTSOURCE CULTIVATE Source: IDC, IT Staffing Survey 2015 N=90 IDC Visit us at IDC.com and follow us on 27
28 3. Transform IT Your Leadership Roadmap for Digital Transformation INNOVATE with business to create a digital enterprise INTEGRATE digital capabilities with the enterprise platform INCORPORATE new techniques and technologies into the IT organization IDC Visit us at IDC.com and follow us on 28
29 Progression Towards the 4 th Platform Proximity & Accessibility NEAR Tech integrated with our bodies Augmented Humanity (senses, cognition, motion ) Apps = code + neural signals Interface is invisible Tech on our bodies, in appliances AI-enhanced, cloud-enabled services Continuously learning, updating Touch, voice and gesture interface Tech in our pockets Mobile apps by the millions Ubiquitous distribution via cloud Touch interface Tech in front office and home Client/server apps explode Expanded distribution via channel Laptop Graphical user interface Mainframe Desktop Phone Connected Appliances Wearables Embedded Direct Neural Interface FAR TODAY
30 We Need to Create a Virtuous Cycle of IT Innovation IDC Visit us at IDC.com and follow us on 30
31 IDC Visit us at IDC.com and follow us on 31
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