The following presentation was given during the inspirational speech held by Gabriella Cattaneo (IDC) at the BDV Meet-Up in Sofia on May 16, 2018.

1. The European challenge: capturing the value of data
By Gabriella Cattaneo, European Government Consulting, IDC
BDV Meet-up
Sofia, 16 May 2018
© IDC

2. © IDC 2
Prepare to be inspired!

3. © IDC 3
Europe…do you believe in yourself?

4. Europe’s lost battle?
© IDC 4
The Competitive Game
Source: Techtonic shifts by Zoltan Csefalvay Ambassador of Hungary to the OECD and the
UNESCO, Paris, France , 2018
Europe’s Must-Win Battle
Europe’s Can-Win Battle

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

6. The New Digital Platform
API
EXTERNAL
PROCESSES
Connected
Processes
Assets
People
INTERNAL
PROCESSES
INTELLIGENT
CORE
Mobile
IoT
AR/VR
BOT
© IDC
6

7. $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.

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. 21%
26%
29%
18%
6%
Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter
European Organizations slowly moving to
Digital Transformation
© IDC 9
55%
Source: IDC, European Digital Transformation Maturity Model Benchmark, 2017; n=403, May 2017
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Digital Transformation is the approach by which enterprises drive changes in their business models and
ecosystems by leveraging digital competencies.

10. 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

11. 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
,296
1,721
2,018
2,710
2,929
3,608
6,492
6,951
9,117
13,030
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%

12. 50%
By 2020, 50% of
Large Enterprises
Will Be Generating
Data-as-a-Service
Revenue from the
Sale of Data

13. Source: Study on Data Sharing between companies in Europe on behalf of DG CNECT, SMART 2016/0087 by
Everis Benelux, 2018
Who is already making money from data?
Share of companies
sharing data by industry
of a sample of 129
companies from 24 EEA
countries, 2017
Average annual income
from B2B data sharing, last
3 years, % of companies

14. 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

15. 15© IDCSource: IDC, AI / Cognitive adoption survey, US, 2017, n= 301

16. © IDC 16
AI is already here
Source: AI is hard, Dave Schubmehl, IDC US, Directions 2018

17. Artificial Intelligence for Europe, a new EC plan to catch up
17© IDC
Source: IDC's Worldwide Semiannual Software Tracker,
May 2017
AI investments, 2016 € Billion
EU 2.4 - 3.2
Asia 6.5 – 9.7
North America 12.1 – 18.6
Worldwide Cognitive/AI Software Platforms Revenues
▪ Europe accounts for the largest share of top 100 AI research institutions
worldwide
▪ But Europe is behind in AI R&D investments
Source: 10 imperatives for Europe in the age of AI and
automation, McKinsey, 2017

18. The EU is the second largest data market in the world
18© IDC
145,546
65,038
27,723
6,310
129,173
59,496
25,137
6,049
Value of the Data Market (€ Bn)
2017
2016
US
EU
Brazil
Japan
Source: IDC, EDM Monitoring Tool, 2018
Incidence of the Data Economy on GDP
Country 2016 2017 Growth rate
2017/ 2016
USA 0.78% 0.81% 4.2%
Brazil 0.16% 0.16% 0.4%
Japan 0.93% 0.95% 1.6%
EU28 0.42% 0.52% 24%

19. The Data Market value will double from 2017 to 2025
Source: IDC, EDM Monitoring Tool, 2018
DATA-DRIVEN REALITY
HIGH GROWTH SCENARIO
EXPLOITING INNOVATION
– BASELINE SCENARIO
DIGITAL MAZE
CHALLENGE SCENARIO
110
€Bn
85
€Bn
74
€Bn
46,1
83
50,4
38
60,
254
2016 2017 2020
EU 27 Value 2017-
2020
€Bn
EU 27 Value
2025 Forecast Scenarios

20. Three Pathways to the Data Economy
20© IDC
HIGH GROWTH SCENARIO
DATA DRIVEN REALITY
BASELINE SCENARIO
EXPLOITING DATA INNOVATION
CHALLENGE SCENARIO
A DIGITAL MAZE
Data industry drives data
exploitation – Data
ecosystem dominated by
large platforms and users
DSM fully implemented
Data ecosystem with B2B data
sharing on multi-user cloud
platforms, decentralized and
transparent data governance
Innovation forces lost in a
maze of barriers: markets
fragmentation (no GDPR), no
standards, global trade wars,
no transparency and trust

21. Three Pathways to the Data Economy
21© IDC
HIGH GROWTH SCENARIO
DATA DRIVEN REALITY
BASELINE SCENARIO
EXPLOITING DATA INNOVATION
CHALLENGE SCENARIO
A DIGITAL MAZE
544
€B
4.0%
EU GDP
HIGH GROWTH
SCENARIO
769
€B
5.4%
EU
GDP
CHALLENGE
SCENARIO
376
€B
2.9%
EU GDP

22. 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

23. Challenges to win – Opportunities to capture
23© IDC
Completion of the DSM
Develop standards for the
data ecosystem
Governments lead on
digital
Invest in AI , 5G and digital
infrastructures
Know and exploit data
assets
Develop data platforms
and secure data sharing
Watch out for AI and IoT
data deluge
Prepare for GDPR as an
opportunity
EU and MS Industry

24. © IDC 24
Forget doubts…Europe can roar!