IDC Predictions 2015 Digital Transformation in the...
Transcript of IDC Predictions 2015 Digital Transformation in the...
IDC Predictions 2015
Digital Transformation in the Enterprise: Opportunity and Disruption
Steven Frantzen
Senior Vice President, EMEA Region
January 2015
© IDC Visit us at IDC.com and follow us on Twitter: @IDC_EMEA
The ‘New World’ Versus the ‘Old World’
‘Incoming Airbus A320 on December 8th was making an afternoon approach at
Heathrow when, with the plane at 700 feet, the pilot spotted what appeared to be a
quadcopter close by’
The 3rd Platform’s ‘Innovation Phase’
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 3Driving Digital Transformation Beyond 2015
ICT spending will exceed $3.8T (up 3.8%), supported by Enterprise
IT market growth, emerging markets and
3rd platform investment
European ICT Market & GDP Expectations, 2015
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Greece
Ireland
Portugal
Finland
Austria
Denmark
Norway
Switzerland
Belgium
Sweden
Netherlands
Spain
Italy
France
UK
Germany
-3,0%
-2,5%
-2,0%
-1,5%
-1,0%
-0,5%
0,0%
0,5%
1,0%
1,5%
2,0%
0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5%
2015 GDP Forecast
20
15
IC
T F
ore
ca
st
Gro
wth
Source: European Blackbook, Q3 2014, EIU, October 2014
4
Mobility Predominates
Smartphones and Tablets will generate 40% of all IT growth worldwide in 2015
Wireless data will be the biggest ($536B) and fastest-growing Telecom Services sector
Mobile application download growth will slow, but hit 150 billion
Dynamic enterprise mobile application development
Broader uptake of enterprise mobility
What percentage of your employees will be using smartphones in 12 months?
Using
56.6%
Not
using
43.4%
Source: IDC European Enterprise
Mobility Survey, H2 2014 | N = 920
CIOs to focus on supporting an agile architecture to support legacy and next-
generation mobile applications
5
By 2016, 65% of global competitive strategies will require real-time IT-as-a–
Service (ITaaS), and 80% of CIOs will deliver a new enterprise architectural framework
Cloud Services in Transition
Public cloud services sales will near $70B The “greater cloud market” – including public, private
clouds, and enabling IT and services – will hit $118B
IaaS competition will intensify, further consolidation
PaaS wars will expand, with number of apps in leading marketplaces doubling
“Strange bedfellow” partnerships multiply
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Big Data & Analytics Migrate & Integrate
Big data & analytics market will reach $125 billion
Rich media analytics will at least triple Video, Audio, and Image analytics and search:
expanding use cases in many industries
Data as a Service proliferates
IoT will be the next critical focus for data/ analytics services
The “Year of Cognitive/Machine Learning”
By 2018, 30% of CIOs of global organizations will have rolled out a pan-enterprise data
and analytics strategy
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IoT Will Begin to Affect Everything
IoT spending will exceed $1.7 trillion in 2015, up 14%
30 billion things connected by 2020
IoT will be the killer app for digital transformation
0% 20% 40% 60% 80% 100%
Gov't/Edu
Healthcare
Prof Svcs/Transport
Process Manu
Retail/Wholesale
Util/Oil & Gas
Telecom/Media
Discrete Manu
Finance
TOTAL
Already adopted Plan in next 12 months
No adoption plans Not Familiar
Q: Considering the Internet of Things (IoT) solutions and M2M communication, are you familiar, do you adopt or are you planning to adopt them? (%Share for Europe)
Source: IDC European Vertical Market Survey, October
2014, n=1,628
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CIOs need to get closer to the network, become enablers for business partners
and review partnerships
Other Innovation Accelerators
Move to 3rd Platform-optimized Security
Security - a top 3 business priority for 70% of CEOs of global enterprises
15% of mobile devices will be accessed biometrically (over 50% by 2020)
More encryption of regulated data
EU Data Protection legislation impact
Threat intelligence as a service on the horizon
3D Printing
By 2020, more than 10% of consumer products will be available through “produce on demand” via 3D printing
2015 spending will surge 27%, to $3.4B
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More Technology Fuelled Digital Disruption!
Disruption, re-invention, and continuous transformation become the norm
1/3 of market share leaders in every industry will be disrupted by 3rd
Platform competitors
The number of Industry Platforms/Communities will double in 2015
Numerous 3rd Platform-driven disruptions accelerate
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Digital Transformation of the Customer
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Educated Customers Mobile Customers
Brand Discussions in Social Networks
New Service Channels
Traditional
Digital Marketing
Channels
Oceans of Customer Data
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IT-enabled Services
Transforming Business Processes
IT-enabled Business Processes
Automating Business Processes
IT-enabled Products
Creating IT-enabled Products
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Digital Transformation of Processes, Services and Products
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Distribution & ServicesSmart Utilities
Domino’s Pizza sold £104 million of pizza via its mobile platform in the UK and Ireland alone
Digital Transformation of the Enterprise & Industries
‘In the next five years, robotics, wearable technology and cognitive computing will start to be commonplace in retail’
Mike McNamara, CIO Tesco
Healthcare
Data Driven + Securely Managed 13
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Digital Transformation Implications – Leadership
15
Angela ArendtsCEO Burberry
(now Apple Retail)
Vivek BadrinathCMO/CIO
Accor Group
Stan SugarmanCDO
Gruner & Jahr
with John Douglas (CTO)
The Common Denominator: ‘Executive Sponsor’ for Digital Transformation
Operational
excellenceInnovation in products
company functions
processes and
business models
Product and
process
improvement
Competitive
necessity
Medium term
competitiveness
Long term
competitiveness
(IDC European IT Executive Survey, April 2014, n=1,310)
Improvement & Innovation
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50% of European organizations have created a new group focused on innovation
Transforming to a Business Innovation IT Organization
Source: IDC, Enterprise IT Transformation Maturity Model, May 2014
Managed
Business Innovation
Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Opportunistic
2nd Platform IT
Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Ad Hoc
Core IT
No effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform IT
Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
Business Transformation
Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.
Opportunisticc
2nd Platform IT
Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption
Managed
Business Innovation
Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform
Ad Hoc
Core IT
No effort between business and IT to coordinate or incorporate 3rd Platform technology
Repeatable
3rd Platform IT
Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption
Optimized
Business Transformation
Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.
55% of European organizations have gone through a major IT re-organization in the last 12 months (IDC European IT Executive Survey, April 2014, n=1,310)
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Beyond 2015
15
18
Digital transformation and disruption are
inevitable in most industries
‘Every organization must become a
technology/digital company in the new
marketplace’
3rd platform technologies and innovation
accelerators bring clear benefits to customers,
employees and companies – but not without
challenges
They change the nature and role of IT and
innovation – becoming the realm of all C-level
execs
Leverage IT organization as a partner in business
innovation
Move beyond a defensive posture – explore the
possibilities
Work with partners who understand the
challenges and opportunities
"If you went to bed last night as an industrial
company, you're going to wake up today as a
software and analytics company.”
CEO of GE - Jeff Immelt