Digital transformation must benefit citizens, companies, and the state. New technologies like artificial intelligence, data analytics, and robotics are disrupting industries and societies. While this disruption creates opportunities, it also leads to workforce changes and issues of business models, consumer perception, and trust. For digital transformation to succeed it is important that citizens' needs are met through improved lives and wellbeing, companies adapt business strategies to changing customer demands, and the state supports innovation through regulations, skills development, and accountable institutions. When these three groups win together, digital transformation can drive significant value.

1. DIGITAL TRANSFORMATION
MUST BE A 3 WINNERS GAME :
CITIZENS – COMPANIES – STATE
HUGUES L. REY
Louvain La Neuve - 19th of October 2016

2. NICE TO MEET YOU
1968 – Ixelles (BE) – Married to Geneviève
Solvay Business School 1992
CEO Havas Media Group BeLux (2010)
25 years of experience in communication agencies
(WPP/IPG/Havas)
Active in digital marketing since 1996
Founding father of Interactive Advertising Bureau (IAB) (1998)
Centre Information Media President (CIM):
Internet (2000-2011)
TV (2011-2013)
Strategy (2016 - …)
Teach (Digital) Marketing at SBS (2006 - …) + International MarCom
Active Blogger: I’m A Bridge – www.huguesrey.com
Follow me on twitter + Instagram: @huguesrey

3. HAVAS MISSION
Our aim is to be the world’s best company
at connecting brands with people using
creativity, media and technology

4. SOURCES - REFERENCES
• Boston Consulting Group's report on the European Digital Front Runners –
2016
• The state of Digital Transformation 2016 – Altimeter
• The World Bank’s World Development Report 2016 (WDR 2016)
• THE SMARTEST PLACES ON EARTH Why Rustbelts Are the Emerging Hotspots
of Global Innovation BY ANTOINE VAN AGTMAEL AND FRED BAKKER
• The Industries of the Future - Ross, Alec
• The Inevitable: Understanding the 12 Technological Forces That Will Shape Our
Future - Kelly, Kevin
4

5. DIGITIZATION DRIVES VALUES 4 NATIONS
5Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
KEY DRIVER
FOR GDP
GROWTH
POSITIVE NET
IMPACT ON
JOB CREATION

6. « JOBS,
JOBS,
JOBS »
275/385 K
BELGIUM
6
Source: Boston
Consulting Group's
report on the
European Digital
Front Runners -
2016

7. HOW DIGITIZATION DRIVES VALUES
FOR STATE, COMPANIES AND CITIZENS
7Source: Boston Consulting Group's report on the European Digital Front Runners - 2016

8. 8
A. Setting the Scene
TURBULENCE IS THE NEW NORM …
& IS FULL OF OPPORTUNITIES
B. Thesis
THE (ROCKY) ROAD TO SINGULARITY
VS
THE DIGITAL TRANSFORMATION REALITY
C. Conclusion
A 3 WINNERS GAME :
CITIZENS – COMPANIES – STATE

9. TURBULENCE IS THE
NEW NORM !
… AND IS FULL OF
OPPORTUNITIES
A

10. BUSINESS MODEL DISRUPTION
BRANDS DEFIANCE
CONSUMER PERCEPTION OF
OPPORTUNITIES DISTORSION

11. Source: angel.co as on 08/27/2015
SOFTWARE IS DISRUPTIVE
ACROSS ALL THE INDUSTRIES

12. EXAMPLE OF DISRUPTION :
AUTOMOTIVE INDUSTRY
12

13. FROM
PRODUCT
(VEHICLE)
TO
SOLUTION
(MOBILITY)
13

14. The taxi market was
worth 140 millions
dollars in San Francisco.
With car sharing, it’s
1 billion.
Uber makes 500 million !
DISRUPTION IN THE TAXI MARKET

15. 15
M E R C I
UBER
Each shared car
represents a
270 000$ loss for car
manufacturersA report by Jeremiah Owyang
(EVEN) BIGGER DISRUPTION IN THE CAR MARKET

16. 16
DISRUPTING THE WORKFORCE
OF THE CAR MARKET

17. “PLATFORMS
LIKE UBER ARE
BOOSTING THE
INCOMES OF
MILLIONS OF
AMERICAN
FAMILIES”
DISRUPTION IN THE FAMILIES EARNINGS

18. AUTOMOTIVE INDUSTRY TRANSFORMATION
18

19. Waves of Digital Disruption
1995+
Music
Photography
Video Rental
…
2010+
Print Media
TV
Travel
HR
…
2015+
Finance
Healthcare
Automotive
Retail
Education
Telco
…
2020+
All Safe havens
will be subject
to digital
disruption
…
2020 – GLOBAL DIGITAL DISRUPTION
(SOURCE: DEAR MEDIA)

20. 20
INDUSTRIAL
INFORMATION
DIGITAL
DISRUPTION

21. EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION
EXAMPLE: FINANCIAL SERVICES

22. EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION
EXAMPLE: FINANCIAL SERVICES
STATE REGULATIONS ?

23. LAYERS OF INNOVATION AND DISRUPTION
FINANCIAL SERVICES – LENDING CLUB

24. 75%Of brands could
disappear
tomorrow

25. E. EUROPE
42%
N. AMERICA 22%
LATAM
69%
31%W. EUROPE
MIDDLE EAST
79%
EMERGING ASIA
83%
36%
DEV. APAC
50%
of
brands
are
trusted
globally
TRUST IS WEAK
25

27. UNDERSTANDING WHAT MATTERS
Personal wellbeing
Exploring how brands tangibly improve
peoples’ lives
Collective wellbeing
And the role they play in society
Marketplace
Going beyond
the product
27
WHY DO PEOPLE CARE ABOUT BRANDS ?

28. OPPORTUNITIES
VS PERCEPTION DISTORSION
28
Par Delphine Cuny | 03/10/2016, 18:05

29. THE (ROCKY) ROAD TO
SINGULARITY
VS
THE DIGITAL
TRANSFORMATION REALITY
B

31. SINGULARITY
THE BEGINNING OF THE BEGINNING
SINGULARITY:
La civilisation
humaine
pourrait
connaître une
croissance
technologique
d'un ordre
supérieur.
ISSUES ?
BUSINESS
ETHIC
POLITIC

33. The A.I.
singularity is the
hypothesis that
the invention
of artificial
superintelligence
will abruptly
trigger runaway
technological
growth, resulting
in unfathomable
changes to
human
civilization.

34. DEFINING
DIGITAL
TRANSFORMATION
The realignment of or
investment in:
- new technology
- business models
- and processes
to drive value for
customers and employees
34
Source:The state of Digital Transformation 2016 - Altimeter

35. SINGULAR ECOSYSTEM
AND DIGITAL TRANSFORMATION
- DIGITAL TRANSFORMATION =
The realignment of investments
q Customer Experience
q Product Innovation
q Strategy
q Organization
q Digitalization of Processes
q Teamwork
q Learning Culture and Expertise

36. DIGITAL TRANSFORMATION CHALLENGES
36
Source:The state of Digital Transformation 2016 - Altimeter

37. DIGITAL TECHNOLOGIES RESHAPING
INDUSTRIES AND SOCIETIES
Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
Internet of Things
Sensors
Big Data
Advanced Analytics
New Devices
Form Factors
Augmented
Reality
3D Printing Ubiquitous
Connectivity
Advanced
Robotics
Cognitive
Computing
Simulation
Social, Local, Mobile Cloud
Computing
System
Integration
LET’S FOCUS ON ARTIFICIAL INTELLIGENCE – DATA – ROBOTS

38. IN A NUTSHELL - INDUSTRY 4.0
DIGITAL TRANSFORMATION TO SINGULARITY
38
Source: INDUSTRY 4.0 - MERGING INTERNETAND FACTORIES – Faber Novel

39. 1 A.I. TO MAP THE
CONSUMER JOURNEY
39

40. 54% OF THE COMPANIES ARE MAPPING
THE CONSUMER JOURNEY
…but just 20% of digital transformation leaders
are studying the mobile customer journey.
40Source: Mc Kinsey + The state of Digital Transformation 2016 - Altimeter
2. Considération
initiale
3. Moment
d’achat
1. Déclenchement
Evaluation active
Après-achat
Boucle de loyauté

42. VDAB: DIGITAL PROJECTS
CONVERGENCE A.I. + HUMAN
• Several partnerships with IBM
Watson
• 70.000 school leavers each year
• Opportunity – 2.5 euros
/interview
• Focus on ‘problem childs’
42

43. PHYGITAL VS TRANSHUMAN
43

44. ARTIFICIAL INTELLIGENCE IS A REALITY !

45. 2
DATA – THE RAW
MATERIAL OF THE
INFORMATION AGE
45

46. “An Airbus 320 takes off or lands every
2.5 seconds somewhere in the world.
Every 30 minutes they generate 1TB of
information – that’s a lot of terabytes”
Simon Bradley, Airbus Group

47. DATA EXPLOSION
OPPORTUNITIES MULTIPLICATION
Relevance Granularity
Acceleration Integration
EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016

48. IOT
UNLEASH THE POWER OF DATA
Cities: predict accidents and crimes.
Doctors: real-time insights into
information from pacemakers or
biochips.
Optimize productivity across
industries through predictive
maintenance on equipment and
machinery.
Truly smart homes with connected
appliances.
Critical communication between
self-driving cars. 48

49. SMART CITIES = COLLABORATION
STATE X COMPANIES X CITIZENS
49

51. 51
« LE DÉFI DE L’HOMME EST DE
REPRENDRE LE POUVOIR SUR LES
DONNÉES »
- SATYA NADELLA (MICROSOFT)

52. 3 HERE COMES THE
ROBOTS !
52

54. TOP COUNTRIES BY ROBOT INDUSTRIES
VS CULTURAL ACCEPTANCE OF ROBOTS
(INDUSTRIAL ROBOTS PER 10.000 MANUFACTURING WORKERS)
54

55. VIRTUAL INTERACTIONS WITH PEOPLE & PLACES
CAN BE AS GOOD AS BEING THERE IN PERSON
55

56. AMERICANS WILLINGNESS TO RIDE IN A
SELF-DRIVING UBER ?
56

57. WILL PEOPLE BE COMFORTABLE GETTING
ON AN AIRPLANE WITH NO PILOT?
On a 2.5 hour
domestic flight,
autopilots and
flight-management
systems typically
do about
95 percent of
the work
57
John Tracy
Boeing’s Chief Technology Officer
“We are quite confident that
technologically, the toolkit is filled. With
respect to a commercial airplane, there is
no doubt in our minds that we can solve
the problem of autonomous flight.
It’s a question of certification procedures,
regulatory requirements and, even more
significantly, public perception.”

58. 47% OF US JOBS COULD BE AUTOMATED
WITHIN ONE TO TWO DECADES.
Source: Oxford University study,

59. C CONCLUSION :
A 3 WINNERS GAME

60. START-UP IN EUROPE (RISK CAPITAL)

61. BOOSTING INNO: SWEDEN TRIPLE HELIX
THROUGH R&D + EDUCATION
61
GOVERMENT + INDUSTRY + ACADEMIA

62. CONVERGENCE – INTEGRATING OLD MODELS
FROM DIGITAL TRANSFORMATION TO SINGULARITY
62
Source: From Rustbelts to Brainbelts

63. FROM RUSTBELTS TO BRAINBELTS
• A life-threatening situation
• Universities performing
world-class research
• Complex, expensive challenges
requiring a multi-disciplinary approach
• Openness to sharing brainpower
• A connector and supportive local officials
• Infrastructure that attracts
and retains top talent
• Access to venture capital
63

64. WHAT MAKES A BRAINBELT ?
• Stop mismeasuring productivity
• Develop work-study programs
(on German model)
• Reward sharing of brainpower
• Support and build innovation
districts
• Build political support for more
basic research
• Give venture capitalists the
leeway to invest in
advanced manufacturing
64

65. WORLD BANK TO COUNTRIES:
TO HARNESS THE POTENTIAL
OF THE DIGITAL NEED TO WORK ON
- Regulations (strengthening regulations that ensure
competition among businesses)
- Skills (adapting workers’ skills to the demand of the new
economy)
- Institution (ensuring that institutions are accountable)
The World Bank’s World Development Report 2016 (WDR 2016)
65

66. ָ‫ְפּ‬‫צ‬ֻ‫ח‬‫ה‬ 66
"chutzpah”
which is a Yiddish word that
derives from the Hebrew word
ḥutspâ meaning "audacity".

67. hugues.rey@havasmg.com
@huguesrey
+ 32 496 26 06 88
www.huguesrey.com
THANK YOU
FOR
YOUR ATTENTION !