Fujitsu World Tour 2015

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1 Fujitsu World Tour 2015 Digitization leads into a Socio- Techno-Economic Transformation Glen Koskela, CTO Nordic Human Centric Innovation Join the conversation #FujitsuWT 0 Copyright 2015 FUJITSU

2 A hyperconnected world People Process Things Context A world where everything is connected, information is shared across boundaries, between people, organizations and entire industries. Every industry is being transformed, out of both opportunity and necessity 1 Copyright 2015 FUJITSU

3 Operational excellence is insufficient All things operational - focusing on accounting, finance, cost management, supply chain management, automation, key account management Constant improvements in the numbers is necessary. But none of this matters when markets shift. Digital economy shifts the entire market rather than merely optimizes existing businesses CC BY 2.0 photo credit: 2 Copyright 2015 FUJITSU

4 Products = Delivery mechanisms for digital services A business is no longer just producer of goods and services it has increasingly become a network of products and services Value is created in the service system, what the system can do, not in the basic cost of the individual elements. in which material products are combined with digital services. Source: How Smart, Connected Products Are Transforming Competition, Harward Business Review, by Michael E. Porter and James E. Heppelmann, November Copyright 2015 FUJITSU

5 Position in the value chain Digital transformation What is at stake? Digitization modifies the economic space and its forms of competition. Successful digital transformation is important, missing out = lost value added CC BY 2.0 photo credit: Increasing digital value contribution Opportunity costs of failure to respond are high Your company if ubered New digital customer interfaces Share of the value chain 4 Copyright 2015 FUJITSU

6 Car industry in the process of transformation IP of the software established in vehicles Effective protection against cyber-attacks Individual mobility and car purchasing behavior Digitization of logistics across the industry Fourth-party logistics providers control of the customer interface Control of the digital communications interface to the driver and vehicle owner Ownership of the data generated in and in relation to the vehicle usage CC BY 2.0 photo credit: 5 Copyright 2015 FUJITSU

7 Disruption to previously successful business model Physical value chain Digital value chain Human value chain Global suppliers & customers Specialization of knowledge work New corporate structures & communities 6 Copyright 2015 FUJITSU

8 Digitization provides ways to increase value Market players that only back incremental changes and fail to invest in digital platforms will come under pressure A chance to have a place in market in the future CC BY 2.0 photo credit: 7 Copyright 2015 FUJITSU

9 The logic of digitization Change drivers Technology enablers Business innovations Digital data Automation Customer experience Network connectivity Internet of things Big data analytics Wearables Robotics 3D printing Social networks Indoor positioning Mobile apps Cloud computing Wireless Sensors Augmented reality Crowdsourcing Digital healthcare Social clienteling Predictive maintenance Multichannel retail 4 th party logistics Nowcasting Smart transportation Fleet management In-store analytics Collaborative working Field inspection Smart city Location based services 8 Copyright 2015 FUJITSU

10 Rules of the digital game Digital data Putting other market players at a disadvantage. Automation Occupying checkpoints that allow to control key links in the value chain. Customer experience Obtaining superior data resources that lets to develop standards and value-added services and dependencies. Network connectivity Bringing light into the black box segments of value creation to improve process efficiency. CC BY 2.0 photo credit: 9 Copyright 2015 FUJITSU

11 Our call for change across all industries Government Defense Healthcare Manufacturing Retail Finance Services LeanMyCity services Real-time edgeware Digital hospital Industrial Internet Omnichannel Co-innovation Smart Working Digitization Innovation Optimization Transformation 10 Copyright 2015 FUJITSU

12 Digitizing in-store retail customer journeys Understand customer paths Measure conversion rates Measure dwell and conversation time Measure promotion effectiveness Optimize store layout Understand valuable real estate Align staff location with customer traffic Support existing business growth CC BY 2.0 photo credit: 11 Copyright 2015 FUJITSU

13 Human Centric Intelligent Society Disasterresilient cities Advanced agriculture National land use Socio-technoeconomic transformation Genome analysis Transportation systems Resource management Installed technological potential guided towards sustainability worldwide 12 Copyright 2015 FUJITSU

14 13 Copyright 2015 FUJITSU