IDC4EU "Capturing Value: How the Power of Data will Drive the Economy", Data Economy Conference, Budapest 30/01/2018

1. Capturing Value: how the Power of Data will Drive the Economy By Gabriella Cattaneo, European Government Consulting, IDC Data Value Conference Budapest, 31 January 2018 © IDC

2. Digital Disruption Ahead Worldwide IT spending - overall 2016-2021 CAGR 6.4% 2016 2021 Trillion$ Traditional IT Big Data, Cloud, Mobile, Social IoT, Cognitive Systems, Robotics

3. Data as the ‘Perfect Storm’…? 3© IDC Data, data everywhere Algorithms shaping our world Growth in cloud Data governance & compliance pressures Opportunities for data monetization

4. But we have the Global Data Protection Regulation! 4© IDC

5. $1.7 T By the end of 2019, Digital Transformation (DX) spending is expected to reach $1.7 trillion worldwide, a 42% increase from 2017.

6. © IDC 6 Digital Transformation Use Cases Source: IDC IoT, Cognitive/AI, Robotics, 3D Printing, AR/VR Spending Guides, February 2017

7. © IDC 7 LA, January 2018 Tesla in autopilot crashes on a stopped Firetruck Oops... Source: Wired 25/01/2018

8. Recognizing the significance of data & analytics to Digital Transformation (DX) © IDC Visit us at IDC.com and follow us on Twitter: @IDC 8 43% 70% Source: IDC Custom Survey, July 2017, N=750 Now In2years

9. The Data-Driven Organization Data TechnologyProcesses TalentGovernance © IDC 9

10. 50% By 2020, 50% of Large Enterprises Will Be Generating Data-as-a-Service Revenue from the Sale of Data

11. By 2020, 75% of enterprise and ISV development will include cognitive/AI or machine learning functionality including all business analytics tools 40% By 2020, 40% of All Digital Transformation Initiatives, and 100% of All Effective IoT Efforts, Will Be Supported by Cognitive/AI Capabilities

12. Why Companies use Third Party Data 12 © IDC 43% 41% 36% 34% 33% 21% 21% 26% 03% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: EUDECO Final Report, January 2018

13. Companies driving DX through data & analytics 13 Using data and analytics to detect patterns and correlations in the data that predict upcoming failures or malfunctions. Predictive Car Maintenance 13© IDC 2017 Visit us at IDC.com and follow us on Twitter: @IDC Risk management & price optimization Using a data and analytics platform to deliver product innovation and risk management solutions Using data and analytics to forecast fashion trends, its use of targeted ads and improve speed to responses in weather patterns. Forecasting & trend analysis

14. Monetizing Data: Transport from London (TPL) 14© IDC ▪ Leading data provider ▪ Today, all Open Data ▪ But, investing in sensors data, services and transport apps ▪ Expects data to become large source of earnings in 5 years time

15. Measuring the European Data Market and Economy 15© IDC

16. © IDC 16 The European Data Market Monitoring Tool by IDC and the Lisbon Council for DG CONNECT A BALANCED ECOSYSTEM EXPLOITING INNOVATION A FRAGMENTED MARKET 3 SCENARIOS TO 2025A COMPLETE VIEW OF DEMAND AND SUPPLY Source: IDC, EDM Monitoring Tool, 2018 Data Market Value Data Companies Revenues Indicator 4.2 Data Users Number Data Companies Number Data Workers Number Data Workers’ SkillsGap Number Data Economy

17. The Data Market value will double from 2017 to 2025 Source: IDC, EDM Monitoring Tool, 2018 - DRAFT HIGH GROWTH SCENARIO EXPLOITING INNOVATION – BASELINE SCENARIO CHALLENGE SCENARIO 110 €Bn 85 €Bn 74 €Bn 46 50 60 2016 2017 2020 EU 27 Value 2017-2020 €Bn EU 27 Value 2025 Forecast Scenarios

18. Hungary: a small but lively Data Market Source: IDC, EDM Monitoring Tool, 2018 - DRAFT HIGH GROWTH SCENARIO EXPLOITING INNOVATION – BASELINE SCENARIO CHALLENGE SCENARIO 976 €M 822 €M 716 €M Hungary DM Value 2025 Forecast Scenarios 395 435 532 2016 2017 2020 Hungary DM Value 2017-2020

19. 19© IDC 6,9% 10,3% 6,1% 9,2% CAGR 2020/2017 Growth Rate 2017/2016 Data Market: Hungary vs EU EU27 Hungary Hungary: the Data Market grows faster than the average EU 6,1% 9,1% 12,9% 4,1% 7,1% 12,7% 00% 05% 10% 15% CAGR 2025/2020 Challenge Scenario CAGR 2025/2020 Baseline Scenario CAGR 2025/2020 High Growth Scenario Data Market: Hungary vs EU27 EU27 Hungary Source: IDC, EDM Monitoring Tool, 2018 - DRAFT

20. Data users are enterprises who focus strategically on extracting value from data for their business. Financial Services Conduct risk analysis & understand exposure Fraud protection & detection Customer analysis Manufacturing Improve production processes & operations Support service & product innovation Analysis of machine or device data Public Sector Improve tax collection Fight welfare fraud Enhance threat & cyber-threat intelligence 5.8% 2017 % of Data Users on tot EU 27 companies Data users are the most advanced and innovative enterprises in every sector, pursuing new business models Most frequent Use Cases Data Users are data-driven companies Source: IDC, EDM Monitoring Tool, 2018 DRAFT

21. Data users are the most advanced and innovative enterprises in every sector Data Market Value by industry, €B Data workers, % on employment by industry Data Users, % on companies by industry2017 Source: IDC, EDM Monitoring Tool, 2018, draft 0,3 1,7 2,0 2,7 2,9 3,6 6,5 7,0 9,1 13,0 14 Construction Education Healthcare Utilities Transport Public Administration ICT Retail, Wholesale Professional services Financial Services Manufacturing 3% 8% 5% 18% 13% 15% 3% 9% 19% 9% 0.9% 2.9% 2.1% 3.0% 1.7% 2.7% 10.8% 2.8% 5.7% 9.9% 2.2%

22. ▪ The business growth generated by the Data Market (direct impacts) … ▪ generates additional revenues and profits for the Data users (indirect impacts) … ▪ and eventually additional wages, consumption and spending (induced impacts) ▪ The sum of these impacts is the DATA ECONOMY © IDC 22 The Data Economy is…value and wealth

23. Alternative Paths for the European Data Economy by 2025 HIGH GROWTH SCENARIO 769 €B 5.4% EU GDP 544 €B 4.0% EU GDP CHALLENGE SCENARIO 376 €B 2.9% EU GDP Source: IDC, EDM Monitoring Tool, 2018 DRAFT Exploiting Innovation Continuing on the positive growth path Strong supply-push by the data industry Maximising data users benefits Hyperconnected society High data sharing Fragmented Market Weak Demand Low data sharing

24. The Data Market multipliers show the Power of Data 1 Euro spent in the Data Market generates between 4 to 6 Euros in the Data Economy Source: IDC, EDM Monitoring Tool, 2018 DRAFT

25. WHAT TO DO? 25 KNOW YOUR DATA ASSETS – AND PREPARE TO MONETIZE THEM BREAK UP DATA SILOS IN YOUR ORGANIZATION WATCH OUT FOR AI AND IOT DATA DELUGE PREPARE FOR GDPR AS AN OPPORTUNITY © IDC

28. www.datalandscape.eu Or contact Gabriella Cattaneo gcattaneo@idc.com You can find all these data at... Giorgio Micheletti gmicheletti@idc.com