An explanation of how today’s leaders can beat disruptive competitors in their own game

1. © 2017 Global Center for Digital Business Transformation. All rights reserved. 1
Traversing the
DIGITAL VORTEX
How Today’s Leaders Can Beat Disruptive
Competitors At Their Own Game
Lux Rao
Director & Leader
Digital Transformation Office, Cisco lrao2@cisco.com

2. Security Big Data IoT Cloud Mobile
100%
of business networks
have traffic to malware
sites
84%
believe big data
delivers high
business value
65%
of CEOs
consider IoT
to be strategic
57%
of organizations
will use cloud
solutions
81%
of CEOs
believe mobility
is strategic
Cisco Digital Network Architecture Readiness Model; Sources: PWC: 18th Annual Global
CEO Survey and IDC Infobrief, 2015

3. Communications Are Being Redefined
Source: World Bank, USDA. Gov, Cisco Analysis
Companies Must Reinvent Their Operating Models
50 B
Devices Connected
by 2020
1.7 T
IoT Market
Spending
in 2020
1 M
Current Daily
Bitcoin
Transactions
2 PB
Data produced
by autonomous
vehicle

4. IOT is Accelerating
Source: “The Motley Fool”
50% of all New Cellular Connections in the
first Quarter of 2016 were M2M & Cars

5. TheDynamicsof
DIGITAL

6. •“Name an industry, and odds are
it’s being disrupted by competitors
deploying digital technology.
• Digital Vortex is a research-based look
at this phenomenon, as well as a savvy
guide to how your company can gain
the nimbleness required
in this new environment.”
Daniel Pink
Best-selling Author, Drive and To Sell Is Human

7. Digital Disruption Is the #1 CXO Concern
Two-thirds of CEOs (66%) see more threats facing
their businesses today than three years ago.
Source: PwC 19th Annual Global CEO Survey
Source: IBM Global C-Suite Survey, 2016
All CxOs identified the risk of industry disruption
caused by an unlikely competitor outside their
industry as a primary competitive threat.
“ ”
“ ”

8. © 2017 Global Center for Digital Business Transformation. All rights reserved. 8
Quantitative survey of
globally
In-depth discussions with
and senior executives
Analysis of
to understand
mechanics of how and
why disruption occurs
Workshops and events
with
on their
challenges and approaches

9. Digital Disruption Will Reshape
Markets and Industries
Market incumbents
displaced40%
Companies actively
responding1 in 4
Expected time
to disruption*3YEARS
source: Global Center for Digital Business Transformation 2015
*Disruption = Substantial change in
market share among incumbents
3.7average
2.5
4.3
more
companies
at risk
fewer
companies
at risk
Oil & Gas
CPG & Manufacturing
Hospitality /Travel
Retail
Media & Entertainment
Telecommunications
Financial Services
Education
Healthcare
Technology Products
& Services
Utilities
Pharmaceuticals

10. Combinatorial Disruption
• Lower fare per ride
• No tipping
• Intelligent demand-based
pricing (e.g., surge)
• No hailing (waiting)
• No cash, no transaction time,
automatic billing
• Choice of vehicle type
• Customized experience (e.g.,
Spotify playlist on car radio)
• Real-time status of car arrival
• Safety / visibility / location
tracking
• Rating system and incentives
• Self-driven offerings
• Pervasive in all major cities
• Global presence, consistent
process
• New employment opportunities
(not just for passengers)
• Add-on services (UberEATS)
• Cross-platform integration
(Amazon Echo, Google Maps,
United Airlines)
• SDK for developer ecosystem
• Moving into adjacent industries
(logistics with Volvo, OTTO)
$ Platform ValueExperience ValueCost Value

11. Create a better Experience
…for Customers AND Workers
Simplification Automation Optimization Scale

12. Simplification
Rs 65
2 Minutes
Uber

13. One Button
Process
Permit
Smart City

14. One Button
A/c Opening
Loan
Finance

15. Zero Button
Check-In
Hospitality

16. Zero Button
Auto
Schedule
Automotive

17. Optimize everything
…cost, speed, precision

18. © 2017 Global Center for Digital Business Transformation. All rights reserved. 18
Hyperawareness
A company’s ability to
detect and monitor
changes in its environment
Informed Decision-Making
A company’s ability to make the
best decision in a given
situation
Hyperawareness
A company’s ability to
detect and monitor
changes in its environment
Informed Decision-Making
A company’s ability to make the
best decision in a given
situation
Fast Execution
A company’s ability to carry out
its plans quickly and effectively
Digital Business
Agility enables
companies to
counter and
capitalize on
digital disruption
Companies Must Build Digital Business Agility

19. Digital Transformation is the application of information technology
to implement innovative business models, improved customer
experience and/or operational improvements that have the potential
to Disrupt entire industries.
What is Digital Transformation?

20. Create New
Customer Experience
Increase Loyalty
Increase Revenue
Transform Processes
and Business Models
Respond Faster to Market
Changes
Efficient Operations
Empower Workforce
Efficiency and Innovation
Increase Productivity
Attract and Retain Talent
Digital Transformation Now !

21. Digital Transformation requires a
Digital Ready Infrastructure

22. Simple Intelligent Automated Secure
Millions of Connections
Dynamic and Distributed
Interconnected Processes
Open Ecosystems
Digital Engagements
Contextual and Adaptive
Predictive and
Prescriptive
Numerous Tasks due to
Scale
Rapidly Changing
Business Needs
Demands of Digital Ready Infrastructure?

23. Blueprint for Digital Business
1 Enable New Business Models Outcome Focus
2 Simplify Everything – IT as a Service Simplicity
3 Build Modular IT and Automate Agility
4 Deliver Data to Drive Business Decisions Insights
5 Continuous Delivery Innovation
6 Security Everywhere Security

24. How can we Compete and Win in the Digital World
ECOSYSTEMS & PARTNERSHIPS

25. Lux Rao
Director & Leader
Digital Transformation Office, Cisco
lrao2@cisco.com