The exponential pace of change is continuing in the Digital Economy. Just as you were getting used to making web, mobile, social, cloud and analytics work in your businesses, along comes the next set of super-disruptors.

1. Deloitte Digital Copyright © 2016
WHAT’SNEXTINDIGITAL?Steve Hallam
November 2015

2. Deloitte Digital Copyright © 2016

3. Deloitte Digital Copyright © 2016
DIGITALISANERA

4. Digital business is
the application of
modern technology
to enable innovative
and efficient sales,
service, marketing,
products, processes
& collaboration.

5. 1970
TECHNOLOGY
CORE
1980
TECHNOLOGY
ENABLEMENT
1990
TECHNOLOGY
COLLABORATION
2000
TECHNOLOGY
ENGAGEMENT
2010
DIGITAL
2020
EXPONENTIAL
TECHNOLOGYCYCLES
Technology eras are characterized by exponential growth and connectivity.
MAINFRAMES
DISTRIBUTEDTERMINALS
CORECOMPUTING
OFFICECOMPUTING
MINI-COMPUTERS
WORDPROCESSING
SPREADSHEETS
HOMECOMPUTING
PCREVOLUTION
NETWORKCOMPUTING
EMAIL
RELATIONAL DATABASES
CLIENT-SERVERAPPLICATIONS
INTERNETREVOLUTION
BROWSERWARS
CUSTOMERENGAGEMENT
INTRANETAPPLICATIONS
BROADBAND
MOBILE
CLOUDCOMPUTING
BIGDATA– ANALYTICS
SOCIALMEDIA
WEARABLES
ARTIFICIAL INTELLIGENCE
SENSING
HOMEAUTOMATION
DIGITALCARS
DIGITALMONEY
QUANTUM COMPUTING
3D PRINTING/MANUFACTURING

6. SOCIAL ANALYTICS MOBILE CLOUD CYBER
CONTROLLEDCOLLISIONS
Enabling the Digital Era

7. CONNECTEDCOMPUTINGDEVICES
Every ten year cycle brings 10 times the connected devices.
1970
1MILLION
1980
10MILLION
1990
100MILLION
2000
500MILLION
2010
10BILLION
2020
70BILLION
2030
1TRILLION

8. SOFTWAREISEATINGTHEWORLD
#MARCANDREESSEN
“

9. Deloitte Digital Copyright © 2016
EXPONENTIALS

10. Artificial Intelligence Genomics
Connected Home Sensors – Internet of Things
Crypto-Currencies
Robotics3D Printing
Drones
Mobile Payments
Oculus RiftWearables
Electric and Connected Cars
WHAT’SNEXT?EXPONENTIALTECHNOLOGIES

11. LINEARTOEXPONENTIALTHINKING
We are wired to think linearly, but our technology is exponential
NTRODUCTION TO
EXPONENTIALS
PETER DIAMANDIS

12. INTHELASTTWOYEARSWE’VESEEN
NINETIMESMOREDATACREATED
THANINTHEENTIREHISTORYOFHUMANITY
#EXPONENTIALORGANIZATIONS

13. EXPONENTIALCOMPUTINGPOWER
#Kurzweil
Examples
• Integrated circuits
• Sensors
• Robotics
• 3D Printing
• Synthetic biology
• Nanomaterials
• AI

14. 20YEARSLATER,
ALLOFTHESEFITINYOUR
POCKET

15. THESMARTPHONEISTHENEWCARSERVICE
Watch
Wallet
Rolodex
Photo album
Daily planner
Travel Agent
Walkman
Newspaper
Magazine
Book store
Calculator
Weatherman
Yellow Pages
Real estate agent
Bank teller
Radio
Dictionary
TV
DVD player
Scoreboard
Coupons
Restaurant concierge
Movie tickets
Gaming consoles
Note passing
Golf caddy
Thermostat
Cash register
Customer service agent
___________

16. 1BILLIONDIGITALNATIVESWILLJOINTHE
WORKFORCEINTHENEXTSEVENYEARS
#PETERDIAMANDIS
“

17. BILLIONSOFCONNECTEDSENSORS
AREBEINGDEPLOYEDEVERYYEAR
GPS NFC Accelerometers Magnetometers Gyroscopes
Actuators Beacons Flow Temparature Lidar
Location Voice
Arduino Homes Cars Utilities Health
Wearables Health Security Bio Threat Phones

18. 3DPRINTING
Complexity is now free

19. BLOCKCHAIN
The Internet of Trust
≠

20. ARTIFICIAL
INTELLIGENCE
IBM

21. $13,000,000,000
WEARABLESMARKETIN2017

22. MINDCLONES

23. HYBRIDTHINKING
TED

24. ROBOTICS

25. EXTREMEBIONICS

26. Deloitte Digital Copyright © 2016
THEDIGITALIMPERATIVE

27. INTHENEXT10YEARS,
40%OFTHEFORTUNE500
COMPANIESWILLBEGONE
BABSONOLINSCHOOLOFBUSINESS

28. DIGITALDARWINISM

29. EXPONENTIALORGANIZATIONS
I have a billion dollar idea!

30. • Excess capacity capture - “sharing economy”
• Little incremental costs to scale
• Bi-direction location-based awareness
• Driver/passenger review “reputation”
• Frictionless payment
• Delightful
UBER
• AirBnB – Rooms and couches
• Share Desk - Office Space
• Lyft – Ride sharing
• BlackJet – Private jet
• Swifto – Dog walking
• Wingz – Airport rides
• Hitch – Taxi dispatch
• GigWalk -
JUSTTHEBEGINNING…
SHAREDECONOMY

31. ISYOURCOMPANYABOUTTOBEUBER-ED?
1. Venture capitalists are circling
2. You’re using technology to cut costs rather
than create value
3. Your customers are getting older
4. Your service is very high-touch
5. Your customer satisfaction is low

32. Deloitte Digital Copyright © 2016
PUTTINGDIGITALTOWORK

33. SUCCESSFULDIGITALBUSINESSESPRIORITISE
NEWCAPABILITIESOVEROLDBUSINESSMODELS
ACT2OFDIGITAL
“

34. 2. CREATEAGILEEXECUTION
Learn to develop andtry ideas
in short iterative sprints with
empowered teams. Treat
digital initiatives like R&D.
1. THINKEXPONENTIAL
Set bold goals to achieve
factors of 10X impact. Defeat
incrementalism within your
organization. Allow failure.
3. ACQUIRECAPABILITIESTO
CATALYST THECULTURE
Acquire and hire edge teams
to bring design thinking,
mobile, digital, creative, and
disruptive ideas.
4. PROTECTTHEPEOPLE
Ring fence digital teams from
layers of bureaucracy, policies
or other compromises not
found in a start-up culture.
6. NEWIDEASTOSOLVEOLD
INDUSTRYISSUES
Look for new ideas to solve
old industry issues and
customer problems. Don’t be
blinded by the status quo.
5. CUSTOMERFIRST
Don’t compromise on the
customer experience. Make
customer value and delighting
the customer the #1 priority.
7. DESIGNTHINKING
Design is the new
differentiator in digital. Diverse
teams led by design thinking
will create an amazing impact.
8. FOCUSONVALUE
Don’t get distracted by all the
digital shiny objects. Focus on
revenue, key metrics and
follow the money.
THE8GREATTRAITSOFADIGITALBUSINESS

35. ADIGITALPORTFOLIOAPPROACH
Business case approach
1.MOMENTUMBETS
2.DIGITALOUTCOMES
3.DIGITALENABLERS
• Low capital outlay
• Demonstrate digital progress
• Don’trequire significantEnablers
• Limited benefits beyond demonstrating momentum
• Primary driver of benefits
• Usually transaction based
• Low risk, high certainty
• Need relentless tracking and focus to drive benefits & adoption
• Example:Digital sales,channel migration,service delivery,automation
• Capabilities,processes and technology enablers
• No directbenefits
• Critical for capability build and future digital capabilities
• Examples:Identity, eCommerce,ProductCatalogue,APIs

36. Deloitte Digital Copyright © 2016
ECOSYSTEMS
Lego Mindshare

37. EVERYTHINGIS
ON‘DEMAND’
Amazon Prime

38. UNBUNDLINGOF
CONTENT

39. TRUSTECONOMY

40. SCALABLELEARNING

41. FEEDBACKLOOPS

42. CREATINGDIGITALCHANGE

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QUESTIONS?

44. THANKS
Steve Hallam
Partner
sthallam@deloitte.com
@sahallam