Disrupted or Disrupting? Fast track your future.

Transcription

1 Disrupted or Disrupting? Fast track your future. PART

2 A Tech Research Asia Report Commissioned by Telstra Disrupted or Disrupting? Fast track your future. 02

3 Introduction & Executive Summary Disrupt or be disrupted? At the risk of vaguely channelling Shakespeare that is the question many global corporations face. Disruption is an overused term yet there is no denying global trends of competition and innovation are driving organisations to execute on digital business transformation as well as assess the effectiveness of their technology in supporting their business. This report summarises the views of 1,040 respondents from multinational companies on a number of issues including: The extent digital disruption is impacting on key global and vertical market sectors and how firms are executing on digital transformation strategies. The effectiveness of technology and as a service consumption models in supporting digital transformation strategies. 73% 60% Identification of business and technology priorities and the impact of network performance on a firm s ability to execute its digital transformation strategy. Complacency is not an option. Data revealed MNCs are seizing the initiative in today s digital world and actively seeking to be the disruptors rather than allowing start-ups to emulate the success of companies such as Uber, Bloom Energy or AirBNB. Intimately coupled with being the disruptor is the push to undertake a digital transformation (i.e. to leverage digital technologies such as cloud, virtual networks, analytics, etc in support of business transformation) to support three key initiatives: Improving customer experience 73% Of firms declared they are threatened by disruption. 55% 60% Stated they are actively seeking to disrupt current or new markets. 87% Streamlining operations Moving commodity technology infrastructure to a managed environment Cloud, Big Data and analytics, security and data storage and management are key to supporting disruption and transformation goals. However there was frustration expressed regarding the efficacy of technology in these programmes: 55% of companies stated their IT organisation did not effectively support such initiatives. Organisations cited a number of issues contributing to this frustration including slow speed of IT to respond, the need for the disintermediation of IT and an inability to competitively differentiate based on homogenous as a service technology. Key to future success is the ability to achieve more effective differentiation amongst the three areas of digital transformation strategy and drive greater agility into the performance of telecommunications networks. 55% Of MNCs are dissatisfied with their IT s ability to support disruption and business transformation goals. 87% Of companies stated their business goals and performance also suffered due to telecommunications network problems. Organisations are looking to greater networking, collaboration and flexible service delivery to support competitive differentiation and successful business transformation. Disrupted or Disrupting? Fast track your future. 03

4 Introduction & Executive Summary Scope Telstra commissioned Tech Research Asia (TRA), an independent technology analyst and consulting firm, to create a report that details the global state of the impact of digital disruption, business digital transformation strategies and technology initiatives. The survey data referenced in this report was gathered by Vanson Bourne, an independent specialist in market research. In total, 1,040 IT decision makers (60% of total) and line of business executives (40% of total) were surveyed in eight countries/regions: Australia: 100 respondents Hong Kong: 80 respondents India: 150 respondents Japan: 80 respondents Philippines: 80 respondents Singapore: 100 respondents UK: 150 respondents US: 300 respondents Research participants were required to work for organisations in the private sector with 500 or more employees and have responsibility for, or at least an awareness of, their organisation s technology strategy. Companies were also required to have an operating presence in two or more countries. Vanson Bourne conducted the research in mid 2016 using a mixture of online and telephone interviewing. The data and results presented in this report are based on the total averages. Where significant variations based on company size, vertical sector or country of headquarters exist, these are also presented. Aims In the context of whether technology platforms help companies achieve operational efficiencies at the expense of allowing them to differentiate in the face of digital disruption, the aims of the report are to address three main issues: To summarise the extent of digital disruption amongst key global and vertical market sectors and understand how organisations are executing on digital transformation strategies. To develop an understanding of the effectiveness of technology solutions and as a service consumption models in supporting digital transformation strategies. To identify business and technology priorities and assess the impact of network performance on an organisation s ability to execute on its digital transformation strategy. Disrupted or Disrupting? Fast track your future. 04

5 01 Disruption & Digital Transformation Strategy

6 Disruption & Digital Transformation Strategy In this section of the report we discuss how disruption is currently influencing executive business and technology agendas. First, what is digital disruption? In our view it is the impact felt by markets, consumers and organisations when digital technology and business models change consumption and value propositions. We address a number of issues including: The degree to which organisations consider themselves exposed to digital disruption. How active are organisations in trying to disrupt competitors and markets? Compared with two years ago, the degree to which organisations are more exposed to a competitive market now; and the level they will be more exposed to two years from now. Other factors influencing the level of competition in the market. The impact of as a service technology consumption on the ability of firms to achieve competitive differentiation. Consider the following: 47% of employed workers in the US are at risk of losing their jobs due to automation in the coming two decades. 1 60% of new jobs in the coming 10 years have not yet been created. 2 Half the companies on the Fortune 500 have disappeared since Smarter use of digital skills, technologies and other assets could boost productivity and generate US$2 trillion of additional economic output by These points are a small yet highly significant illustration of the impact that digital disruption is having on multiple countries and markets around the world. Exposure to disruption With regards to our survey sample, the hype about disruption matches the reality. The consequences of disruption reverberate globally. Almost threequarters (73%) of organisations declared that their operations are exposed to disruption. Another 19% of firms believe that whilst they are not currently exposed to it now, they will be in the future. A relatively low 8% stated their organisations are not exposed to any form of disruption now or in the future. (See Chart 1: Is your organisation exposed to disruption?). 1 Frey, C. and Osborne, M. 2013, The Future of Employment: How Susceptible Are Jobs to Computerisation?, 17 September, Oxford Martin School, University of Oxford. 2 Thomas Frey, Futurist. 3 Strategy-Digital-Disruption-Growth-Multiplier.pdf (Accessed 28 June, 2016) Chart 1: Is your organisation exposed to disruption? 73 % Exposed to disruption Very exposed 20 % to disruption 8 % Not at all exposed to disruption and will not be in the future 19 % Not at all exposed to disruption, but will be in the future 53 % Somewhat exposed to disruption Disrupted or Disrupting? Fast track your future. 06

7 Disruption & Digital Transformation Strategy From a country perspective, Hong Kong firms considered themselves as the most exposed and the Philippines as the least exposed (although firms here expect it to have the greatest impact in the future). The graphic following (Chart 2: Country prevalence of digital transformation strategy & exposure to disruption) also illustrates that firms in Singapore, the Philippines and India lead their survey peers in the prevalence of digital transformation strategy. We also mapped vertical markets against two factors the extent to which each vertical has embarked on developing digital transformation strategies and the level of disruption to which that sector is exposed. (See Chart 3: Vertical market prevalence of digital transformation strategies & exposure to disruption) Retail and technology sectors exhibited the highest levels of exposure to disruption whilst private education, the oil, gas, energy and utilities group, and private health perceived their sectors as having a lower exposure to disruption than other sectors. Several sectors (private health, telecommunications, professional services and IT) also evidenced relatively high prevalence of transformation strategies. Chart 2: Country prevalence of digital transformation strategy & exposure to disruption Maturity of digital transformation strategy Philippines Singapore Japan UK India US Australia Hong Kong Exposure to disruption Chart 3: Vertical market prevalence of digital transformation strategies & exposure to disruption Maturity of digital transformation strategy Private Health Professional Services Telecoms IT & Tech Banking/Financial Services Manufacturing Oil, Gas, Energy, Utilities Retail Private Education Distribution Transport Logistics Exposure to disruption Disrupted or Disrupting? Fast track your future. 07

8 Disruption & Digital Transformation Strategy Chart 4: Is your company actively trying to disrupt by digitising its own business? 18 % 21 % Not actively trying to disrupt others, but we will do in the future Not actively trying to disrupt others and we will not in the future Chart 5: Vertical market exposure to disruption & intent to disrupt markets Very actively trying to disrupt others 21 % 40 % Somewhat actively trying to disrupt others Do unto others It is very clear that disruption is a two-way activity. Many readers will be very familiar with the use of disruptive examples from the likes of Alibaba, Netflix and so forth and the impact these start-up companies have had in attacking established markets. Less explored is to what extent established organisations are focusing on being the disruptors. The common default assumption is larger, more established industry firms/sectors are under threat from disruption by startups. Our data suggests otherwise 60% of firms stated that they are seeking to disrupt either their current or new markets. (See Chart 4: Is your company actively trying to disrupt by digitising its own business?). Chart 5 following (Vertical market exposure to disruption and intent to disrupt markets) details the intent to disrupt by vertical market sector. Telecommunications, IT&T and manufacturing firms claim to be the most active in attempting to disrupt either their current or new markets. Reflecting its exposure to relatively lower levels of disruption than other markets, private education is also the least inclined to take an active approach to disrupting others. Actively trying to disrupt others Telecoms IT & Tech Manufacturing Banking/Financial Services Professional Services Oil, Gas, Energy, Utilities Retail Distribution, Transport, Logistics Private Health Private Education Exposure to disruption Disrupted or Disrupting? Fast track your future. 08

9 Disruption & Digital Transformation Strategy Education Book renter, Self adapting text books Oil, gas, energy and utilities Off-grid energy retailers Private health Health Informatics Telecommunications IoT, OTT Distribution, transport Driverless vehicles Professional Services Automation, AI, Robot Lawyers Retail 3D Printing, AR, VR Financial Services Blockchain Manufacturing 3D Printing IT & Technology Quantum The rate of disruption is accelerating The research data suggests that almost four-in-10 (38%) of firms believe they are more exposed to a competitive market now than two years ago and 56% expect to be even more exposed in the coming 24 months. Examples of disruptive technology by industry Source: TRA Companies in India are the most wary of growth of future competition and disruption, with 75% believing they will be more exposed in the future. Firms in Japan sat at the other end of the spectrum, with 38% expecting an increase over the same period. From a vertical market perspective, the oil, gas, energy and utilities sector group expects to experience the greatest increase in disruptive competition in the coming two years. The retail sector indicates the lowest future expectation for more competitive pressure (principally reflecting the degree of transformation already experienced for the last years as well as competition being perceived as the new normal ). See: Examples of disruptive technology by industry for illustrations of potential changes. Disrupted or Disrupting? Fast track your future. 09

10 Disruption & Digital Transformation Strategy Our existing competitors are more competitive 58% Start-ups and new entrants are having an impact on our market 45% Partners and customers are becoming our competitors 44% Our technology platforms (networks, data, collaboration tools) do not allow us to innovate as quickly as others 38% Our technology platforms (networks, data, collaboration tools) do not allow us to quickly reassign resources to new projects 20% 20% 40% 60% 80% 100% Chart 6: Top 5 reasons for increased competitive exposure Factors influencing the level of market competition The original theory of disruption is, in part, predicated on emerging or start-up organisations leveraging technology to change market consumption dynamics. However, echoing the data previously discussed, when asked why their organisations are more exposed to competition, the primary response was existing competitors increasing their own level of competitive capability. (See Chart 6: Top 5 reasons for increased competitive exposure). The top three factors can be broadly categorised as external competition, as follows: 1. Increased competitor activity However the remaining two factors in the top five are definitely internal and reflect the importance of having an effective technology environment: 4. Technology platforms (networks, data, collaboration tools) do not allow firms to innovate as quickly as competitors 5. Technology platforms (networks, data, collaboration tools) are too rigid and do not allow for flexible allocation of resources to new projects. In our view, overcoming this rigidity has been one of the drivers for organisations moving to more cloud-infrastructure solutions and adoption of as a service consumption models. 2. Start-ups and new entrants 3. Partners/customers becoming competitors Disrupted or Disrupting? Fast track your future. 10

11 Disruption & Digital Transformation Strategy 42% 49% 44% 48% 35% 43% 49% 62% 37% 43% 33% 35% 57% 67% 37% 46% 39% 47% Average US UK INDIA HK JPN PH SG AUS Currently In 12 Months Chart 7: What proportion of your tech spend is as a service consumption? The adoption of as a service consumption The benefits of cloud and as a service consumption have been well documented. Less so has been the issue of as a service on competitive differentiation. As can be seen in Chart 7 (What proportion of your tech spend is as a service consumption?) our respondents told us that, on average, currently 42% of their technology spend is comprised of as a service consumption and this will grow to 49% within 12 months. Whilst there is no denying that this approach has allowed firms to achieve cost efficiencies and optimise IT utilisation through cloud infrastructure and software consumption, one of the trade-offs appears to be reduced customisation of technology platforms. As the early mover gains of flexibility and scalability become eroded by more companies adopting similar technology infrastructure and services, there is a need for companies to seek competitive differentiation elsewhere. The survey data clearly reveals that for the 71% of firms, their infrastructure becomes commodity-based as they move towards as a service consumption. By its nature, commodity infrastructure is difficult to customise yet in this environment of disruption and digital transformation, customisation can be a key aspect of differentiation. Almost two-thirds (63%) felt their organisations were struggling to competitively differentiate themselves as a result of this commoditisation. To combat this, 69% of companies believe they need to adopt a two-part approach that: 1. Assigns commodity infrastructure to third party organisations to manage, and 2. Focuses internal company resources on growth and transformation projects This raises an interesting issue of how technology is best used to support business transformation programmes. With this in mind, let s examine how firms are transforming their digital transformation technology strategies. As the early mover gains of flexibility and scalability become eroded by more companies adopting similar technology infrastructure and services, there is a need for companies to seek competitive differentiation elsewhere. Disrupted or Disrupting? Fast track your future. 11

12 02 The Digital Transformation Agenda

13 The Digital Transformation Agenda 41% 39% 37% 35% 32% 30% 28% 25% 18% 15% Improving customer experience Streamlining operations Move to Managed Services. IT focus on innovation Driving down costs Accelerating time to market Future workspace for collaboration Accelerating time to insight Deploying new solutions to the business Ensuring engagement not restricted by IT Attract and retain employees Chart 8: Business priorities of digital transformation This section of the report addresses two key questions: Do organisations have a formal digital transformation strategy and, if so, what role is responsible for overseeing it? What are the business priorities of companies digital transformation programmes? It s obvious that digital transformation is a key priority for businesses. 97% of organisations have, or plan to have, a formal strategy and only 3% indicated that they don t know or neither have, nor intend to initiate, a digital transformation strategy. Reflecting the critical nature of technology, 32% of firms stated that their CIO is responsible for leading their programmes. After the CIO, responsibility is held by: CEO: 24% CDO: 14% CFO: 9% Shared CXO: 7% Chart 8 (Business priorities of digital transformation) provides detail on the top 10 most likely business goals. The top three business transformation goals encompass: Improving customer experience through digital including engagement, satisfaction, multi-channel approaches and lifetime value. Streamlining operations encompassing business process and technology optimisation. Moving commodity technology infrastructure to a managed environment to allow IT to concentrate on business growth and innovation. Disrupted or Disrupting? Fast track your future. 13

14 03 The Role Of Technology In Digital Transformation

15 The Role Of Technology In Digital Transformation Organisations told us they are less than totally satisfied with the effectiveness of their technology when it comes to supporting transformation efforts. In fact 55% of companies expressed frustration with their current technology platform; namely: IT does not move quickly enough to support the business: 29% It is easier to circumvent IT and do it ourselves: 20% IT does not support goals at all; it is a hindrance to the business: 6% Chart 9 details the effectiveness (or otherwise) of IT infrastructure in supporting business goals. Of the vertical markets, distribution, transport and logistics expressed the highest degree of dissatisfaction with the effectiveness of their IT environments, followed by telecommunications, retail and manufacturing. Education, telecommunications, healthcare and professional services all cited aboveaverage scores for the positive alignment of IT totally supporting business goals. More than one in two of our respondents cited issues with their current technology infrastructure supporting their business goals, suggesting current technology infrastructure has not been fully optimised to support the business. So where do businesses see technology as critical to their digital transformation moving forward? Read on to find out. Chart 9: Is your IT organisation effective in supporting business transformation goals? IT hinders us 6 % IT supports but does not move quickly enough 29 % IT totally supports & reflects true IT and business alignment 18 % IT IT is limited. It is easier to circumvent and DIY 20 % 27 % IT mostly supports Disrupted or Disrupting? Fast track your future. 15

16 The Role Of Technology In Digital Transformation What technologies are companies deploying to support their digital transformation? Cloud infrastructure (private, hybrid and public) dominates the investment priorities for the coming year (as seen in Chart 10). Our view is this reflects the advantages of cloud, including scalability, quicker speed to market, utilisation efficiencies and an OPEX-driven cost model. Private cloud, the top ranked priority, brings multiple benefits key of which are clarity around data location (to address data sovereignty concerns), enhanced security and more direct management of the cloud environment compared to a public cloud infrastructure. Big Data and analytics (second overall priority) links tightly to the desire to both improve and streamline operating efficiencies as well as deepen and improve engagement with customers. Beyond the traditional table stakes aspect, security (third overall priority) features for several key factors including the increase in targeted, criminal and State-sponsored attacks, the emergence of Internet of Things (IoT) technology and the growing complexity of governance, risk and compliance (GRC) requirements. Data storage and management (fourth) and hybrid cloud (fifth) rounded out the top five. An analysis of top five technology priorities by vertical market did not show much variation across sectors; the only exception being the inclusion of enterprise mobility for the oil, gas, energy and utilities group and the distribution, logistics and transportation sector who reported unified communications and collaboration. Chart 10: To support digital transformation, what are your priorities in the coming 12 months 46% Private cloud 40% Big Data and Analytics 40% Security 39% Data storage and management 35% Hybrid cloud 25% Enterprise mobility 25% Public cloud 24% Apps/SW Development 22% SDN/NFV 22% Data centre transformation 18% UC&C 14% ERP/Supply 14% Machine learning 11% Learning platforms chain 10% Adopting DevOps Disrupted or Disrupting? Fast track your future. 16

17 New technology such as IoT or SDN are part of disruptive digital ecosystems we re racing towards. IoT, for example, is fundamentally exciting yet embryonic. We re on the cusp of major revolution in that space. Sundi Balu Director Global Business to Business IT, Telstra Disrupted or Disrupting? Fast track your future. 17

18 The Role Of Technology In Digital Transformation Future workplace One area intertwined with a number of digital transformation goals is the adoption of what TRA terms the Future Workplace. (i.e. the transformation of a traditional workplace environment to incorporate new technologies, real estate, and architectural and cultural aspects to drive cost efficiencies, innovation, collaboration and employee engagement). Globally we are seeing greater adoption of future workplace approaches typically enabled by a combination of enterprise mobility and cloud-delivered data and applications. Amongst our respondents 96% of organisations have a formal workplace strategy programme, typically led by the CIO or IT Director. As part of their future workplace strategies, 62% of firms see mobile/ remote working from home (or while travelling) as a work style that their organisation will support over the next 12 months; and almost half (47%) will support activity-based working (ABW). Firms are looking to future workplace strategies for a multitude of reasons; however the top three initiatives are: To drive innovation and fresh thinking To enable productivity through flexibility To create flexibility that helps adapt to changing business conditions There was little significant variation in these factors when analysed by industry sector except for Retail (looking to improve talent recruitment and retention factors) and IT (seeking to harness emerging technology more effectively). In 2014, TRA conducted research amongst organisations that had adopted a future workspace strategy. Of the top three benefits experienced by firms, number one was improved internal collaboration and number three was better client engagement (number two was to be a showcase for the organisation). Both of these represent key aspects of our respondents business transformation goals and strategies. From a technology perspective, there are five key solutions integral to a successful future workplace deployment: Wi-Fi + cellular networks IP Telephony UC&C cloud collaboration tools Mobile friendly devices 2-in-1s (such as Samsung Galaxy Tab Pro), tablets, laptops, smartphones Data management solutions Workplace strategy and transformation is an extremely complex initiative for large organisations and it was not surprising to see that only 4% of firms would keep the initiative in-house with no external support. 60% of firms indicated they would look to telecommunications or IT service providers to provide consulting support around technology environments. Interestingly, architecture and workplace design companies made the top five list of external consultancies in fifth spot suggesting firms are open to nontechnology driven approaches. However, 76% of organisations stated that their workplace strategy effectiveness could be more dynamic if their technology and network platforms were more flexible and agile. Critically too, 67% of firms indicated their ability to work more collaboratively and effectively is hindered by rigid technology and network platforms. Disrupted or Disrupting? Fast track your future. 18

19 04 Dynamic Network Infrastructure And Its Importance To Digital Transformation

20 Dynamic Network Infrastructure And Its Importance To Digital Transformation A company s network remains a critical pillar of business as usual operations as well digital transformation. It s clear from the research data that if an organisation s network underperforms and lacks flexibility then it jeopardises multiple areas of operation. 87% of respondents told us that their business had suffered as a result of network problems and, on average, experienced 11 issues per year. (See Chart 11: How frequently does your business suffer due to poor telecoms network connectivity?). Firms in Singapore experienced the lowest number of significant problems, averaging seven per year; whilst India and Hong Kong tied for the highest at 15 issues per year apiece (with the US at 13). Sector-wise, retail experienced the highest number of problems (17 per year), followed by telecommunications (14 per year) and IT & technology (13 per year). Reflecting the stringent performance demands of their sectors, BFSI and oil, gas, energy and utilities experienced the lowest number of issues (nine per year). Chart 11: How frequently does your business suffer due to poor telecoms network connectivity? Never 10% Less than once a year 16% At least once per year 14% At least once per quarter 23% At least once per month 23% At least once per week 12% 5% 10% 15% 20% 25% Disrupted or Disrupting? Fast track your future. 20

21 Dynamic Network Infrastructure And Its Importance To Digital Transformation 75% 74% 75% Of firms noted that more dynamic networks would enable them to more successfully pursue their digital transformation strategies. 74% Felt more dynamic networks would strengthen their competitive position, support growth initiatives and create stronger customer engagement programmes. Poor network performance adversely impacts companies ability to undertake or defend against disruptive activity as well as executing on key areas of digital transformation strategies including: Customer engagement, Streamlining operational performance, and Future Workplace to drive collaboration and innovation. Given these issues with network connectivity, we were not surprised to see software defined networking (SDN) falls within the top 10 technology investment priorities: One common frustration with network performance is its lack of flexibility. For many organisations, it is a tedious, complicated and expensive process to create truly flexible multicountry network operations. SDN has the potential to bring multiple benefits to businesses including: Dynamic provisioning of infrastructure services. Improved support for, and quicker test/ dev/deploy of, custom applications (a key aspect in helping companies reclaim some of the lost customisation due to as a service models). Ability to test new projects and growth markets while limiting exposure to capital outlay. Improved security stance. Ability to rapidly scale to support Big Data and mobile traffic. Enhanced management of hybrid cloud environments for different workloads including network bandwidth, storage and computer resources. From a business perspective, our respondents saw tremendous benefits to be gained through a more dynamic network environment. 75% of firms noted that more dynamic networks would enable them to more successfully pursue their digital transformation strategies, and almost three-quarters (74%) felt it would strengthen their competitive position, support growth initiatives and create stronger customer engagement programmes. The critical importance of dynamic networks can be seen in the 10 benefits identified by our survey respondents. Spanning strategy, execution, customer engagement and future workplace initiatives, the list is as follows: 10 BENEFITS OF DYNAMIC NETWORKS 01. More successfully pursue digital transformation strategy 02. More quickly and efficiently support company growth initiatives 03. Strengthen competitive position 04. More successfully pursue customer engagement strategies 05. Better pursue a future/flexible workplace strategy 06. Better respond to disruptive competitors 07. Launch new products/ services faster 08. Improve the return on investment from cloud technology 09. Remove one of the blockages to being a more agile organisation 10.Be more disruptive in the marketplace Disrupted or Disrupting? Fast track your future. 21

22 The industry and our customers need to respond to market dynamics much more quickly and SDN is becoming one of the key tools of the trade. For example we re looking at SD-WAN solutions with cloud interconnects to deliver outcomes for customers in weeks rather than the nine to 12 months it used to take. Things will only continue to improve for our customers too I can visualise a day in the future where we will be able to manipulate wavelengths at the fibre-optic level through software, to be even more flexible with services. Sundi Balu Director Global Business to Business IT, Telstra Disrupted or Disrupting? Fast track your future. 22

23 In Closing If, as our respondents have indicated, the majority decision amongst MNCs is to confront disruptive forces head-on with their own disruption plays, companies need to give deep consideration to creating stronger competitive differentiation and agile networks through their technology infrastructure. Our data suggests that the adoption of cloud-based as a service technology consumption has brought benefits (in terms of scalable infrastructure, changing pricing models and optimised utilisation, etc); however as more organisations adopt similar solutions the ability to achieve flexible, competitive digital strategy differentiation decreases. The majority of respondents clearly indicated that their IT organisation does not effectively support either disruption or digital transformation activities. Not only that, in a double whammy, organisations also stated that current telecommunications network performance was adversely impacting their ability to pursue both disruption and digital transformation strategies. In many instances networks lacked the flexibility and agility to quickly respond to business requirements. Our data revealed a significant top 10 list of we could do better if we had more agile networks issues ranging across customers, internal operations, collaboration, go-to-market engagement and competitive activity. We trust you have found this report interesting and it provided an opportunity to reflect upon disruption and digital transformation within your own organisation. In that context, we leave you with a number of issues to consider: Does your organisation have clearly articulated, C-suite driven, disruption and digital transformation strategies? If not, why not? Attempting successful execution will be nigh-impossible without C-suite support. How do your customer experience and (Big) Data analytics initiatives meld together? Customer engagement is driven by understanding the customer environment and unless you can quickly access (in near real-time) data and analysis in an agile manner, delivering it to where it is most needed, then digital transformation will struggle. Do not forget security particularly in a cloud-centric environment it is critical to assess your technology provider s security and governance, risk and compliance (GRC) credentials. Security and GRC should be focused on supporting innovation and disruption, not suffocating them. How can your organisation achieve greater flexibility with its network environment? Does your organisation need a more dynamic network environment that responds to business demands? Is your organisation at risk from the commoditisation of as a service technology consumption? Will it be in future as more competitors adopt similar solutions? If so, what steps can be taken to introduce greater flexibility and agility into the technology environment? If considering SDN (software defined networking), does your provider operate its own network or provide SDN services through an overlay approach on another vendor? Is their approach an open environment or one that relies on proprietary integration? Can networks (local and international), applications, configuration and pricing/bandwidth information be accessed through a single management portal? What is your organisation s approach to fostering a future workspace environment? Is your culture and executive management appropriate for such an approach? Connectivity and collaboration tools are critical components to a successful deployment how have these been incorporated into your organisation and do they support an anywhere/place/time operation? Have you conducted a thorough evaluation of the contribution your existing workplace strategy makes to organisational goals and how potential changes could generate new and/or more value? Could these changes allow you to achieve optimal engagement with clients? Improve risk management? Drive greater collaboration and innovation? Disrupted or Disrupting? Fast track your future. 23

24 Survey Demographics Vanson Bourne conducted the research in mid-2016 using a mixture of online and telephone interviewing. In how many countries does your organisation operate? Respondents were required to hold an IT or line of business decision-maker role and come from organisations that operate in two or more countries. Organisations of less than 500 employees were excluded from survey results. Details by number of company size (by number of employees), industry sector and geographic spread (by operations in number of countries, country of response) are illustrated below. The total number of survey respondents was 1, countries 4-5 countries 6-10 countries countries 27% 23% 17% 13% More than 20 countries 20% 10% 20% 30% Demographic split by number of employees Demographic split by country of response 30 % More than 5,000 employees 22 % 501 1,000 employees US 29 % 10 % Australia 8 % Hong Kong 14 % India 23 % 3,001 5,000 employees 25 % 1,001 3,000 employees UK 14 % % 10 % Singapore 8 % Japan 8 % Philippines Demographics by sector 4% 3% 4% 5% 5% 6% 9% 9% 15% 20% 22% Other private sector Private education Oil, gas, energy, utilities Private healthcare Telecommunications Distribution, logistics Professional services Retail Financial services Manufacturing IT and technology Disrupted or Disrupting? Fast track your future. 24

25 About Telstra Telstra is one of the leading telecommunications and technology companies offering a wide range of services globally. We bring innovative technology, capability and talent from around the world to enable our customers to thrive in a connected world. Telstra s heritage is proudly Australian, but we have a longstanding international business with a focus on the Asia-Pacific region. Today, we have over 3,500 employees based in 20 countries outside of Australia providing services to thousands of business and government customers. Our customers are global, our people are local and our assets are anchored in Asia. Over several decades we have established one of the largest subsea cable networks in Asia-Pacific, with a unique and diverse set of infrastructure that offers access to the most intra-asia lit capacity and largest subsea cable system in Asia Pacific. The network plays a crucial role underpinning the digital economy in Asia-Pacific, meeting the needs of wholesale and enterprise customers around the world. We also provide sophisticated network application services and have growing interests in software, video delivery, e-commerce and health. Growing our business globally is a strategic priority for Telstra, and we are focused on being the leading service provider for our customers across Asia-Pacific. We are also seeking to leverage our capabilities and assets to capture connectivity opportunities in industries where technology is creating competitive disruption. About Tech Research Asia Tech Research Asia is an Asian-based technology consulting and analyst firm. Established in 2012 it provides independent research, consulting, advisory, content, and engagement for technology buyers and suppliers in Asia Pacific. In addition to undertaking our own independent research on technology and business trends, TRA offers a wide range of services to executive technology buyers and suppliers in all Asia Pacific markets. To learn more, visit: Disrupted or Disrupting? Fast track your future. 25

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