Socrates once said “The secret of change is to focus all your energy, not on fighting the old, but on building the new”. Organizations throughout the world must think about the new digital world and evaluate how to get from where they are today to where they need to be in the future! In this presentation we will look into the changing landscape which is driving this 4th Industrial Revolution and present some areas you might like to focus on as you reposition your organization to compete in an increasingly digital world.
Esineja: Mark Torr (Microsoft)
9. Data driven digital transformation is fueling the next
industrial revolution
Steam, water,
mechanical
production
equipment
Division of labor,
electricity, mass
production
Electronics,
IT, automated
production
Blurring the
physical and
the digital
divide
1784 1870 1969 2016
1st Industrial Revolution 2nd Industrial Revolution 4th IndustrialRevolution3rd Industrial Revolution
10. DIGITIZATION
Sector Overall
Assets Usage Labor
Digital
spending
Digital
asset stock
Trans-
actions
Inter-
actions
Business
processes
Market
making
Digital
spending
on workers
Digital
capital
deepening
Digitization
of work
ICT
Media
Professional services
Finance and insurance
Wholesale trade
Advanced manufacturing
Oil and gas
Utilities
Chemicals & pharmaceuticals
Basic goods manufacturing
Mining
Real estate
Transportation & warehousing
Education
Retail trade
Entertainment and recreation
Personal and local services
Government
Health care
Hospitality
Construction
Agriculture and hunting
SOURCE: McKinsey Global Institute analysis
highlow
Industry Opportunity
1
2
3
4
5
6
1 Knowledge-intensive sectors that are
highly digitized across most
dimensions
2 Capital-intensive sectors with the
potential to further digitize their
physical assets
3 Service sectors with long tail of
small firms having room to
digitize customer transactions
4 B2B sectors with the potential to
digitally engage and interact with
their customers
5 Labor-intensive sectors with the
potential to provide digital tools to
their workforce
Quasi-public and/or highly localized
sectors that lag across most
dimensions
6
11. CEOs believe
technology* will
transform their business
more than any other
global trend
*modern technology
Source: PWC CEO Survey
Trends that will
transform
business, next five
years (%)
Technological advances
Demographic shifts
Shift in global economic power
Resource scarcity & climate change
Urbanization
12. IT Decision
Makers
Business
Decision
Makers
2018 IT Spend
45%
55%
Source: IDC Futurescape, “Worldwide IT Industry 2016 Predictions”, November 4, 2015
Nearly half of
all IT spend will
be controlled
by BDMs by
2018
ExampleBusinessLeaderPriorities
BU
President
• Agility to execute new business strategies
• Better decision-making based on real-time
data
CMO
• Revenue growth through customer
acquisition
• Customer experience & post-sales support
VP Human
Resources • Employee communication and collaboration
• Employee engagement
COO
• Reduced downtime due to maintenance
• Labor cost reductions
14. Data is a key strategic asset: Analytics unlocks value!
$
1.6TAdditional business value captured
by companies that are leaders in
using data assets to their advantage
Source: IDC, 2014
10%Percent of organizations expected
to have a highly profitable business
unit specifically for productizing and
commercializing their data by 2020
Source: Gartner, 2016
15. You need to be ready
for the convergence of
digital and physical
worlds!
16. Every company becomes a software
company. Everything becomes smart!
Services define the winners and losers!
17. You need to treat
time to market as a
competitive weapon!
22. “Cloud is a given. CIOs no longer ask whether they should use cloud, but rather how.”*
Enable innovation
“55% of CIOs indicated they
would source all their critical apps
in the cloud by 2020.”***
Improve efficiency
“Traditional on-premises data
storage is four times the cost
of cloud storage.”**
Transform your business
“Seventy percent of CIOs
will embrace a cloud-first strategy
by 2016.”****
Reduce costs and inefficiencies
Increase revenue
with existing assets
Create new business models
*”Cloud Evolves From Point Solution To Strategic Enabler Of The New Connected Economy,” Forrester, Liz Herbert, January 2015
**Forrester, 2014
***Smith, David Mitchell et al. Predicts 2014: Cloud Computing Affects All Aspects of IT. Gartner, Inc. December 4, 2013.
****IDC, CIO webinar, 2014
23. From data to decisions and actions
Diagnostic
[Interactive Dashboards]
Prescriptive
[Recommendations & Automation]
Predictive
[Machine Learning]
Descriptive
[Reports]
What should
I do?
What will
happen?
Why did it
happen?
What
happened? Insight
24. Data capabilities at each maturity stage
Make smarter decisions using
self-service tools to separately
display relational and non-
relational data sets available
through a virtualized network.
Plan for the future by analyzing
and modeling diverse data
types integrated in real time
through a hybrid environment.
Trigger automated rules to
respond to analysis of data
sets integrated in real time
through a hybrid environment.
Know your business better
through manual reports
built using structured
department data.
• Manual reports: Request IT to pull
data and build reports
• Historical analysis: Review business
periodically and track against goals
• Departmental data: Combine data
manually for business-level insights
• Self-service & mobile BI: Access
anywhere, on any device
• Visualizations and dashboards:
Answer questions by visualizing data
• External data: Capture big data for
future use
• Real-time insights: Track business
changes up to the minute
• Integrated data sources: Combine
and analyze all kinds of data
• Predictive analytics: Use complex
modeling and analysis for predictions
• Immediate innovation: Make
changes on the fly using realtime
data
• Asset feedback: Monitor IoT data to
identify new business models
• Automated actions: Trigger
automatic actions to changing trends
ACTIVITIES
Relational data Relational & non-relational data, siloed Any data from any source Any data from any source
Descriptive Diagnostic Predictive Prescriptive
+ + +
CAPABILITIES
SQL
TIME-TO-DATA: WEEKS OVERNIGHT MINUTES REAL-TIME
29. A closer look at IoT
Converging digital and physical worlds - bringing it all together
30. The world has become
a giant network of
connected endpoints
Creating vast amounts
of raw data
Enabling analytics that
deliver game-changing
insights
35. Gathers data from sensors and
systems to create valuable
business intelligence and
reduce downtime by 50%
Cutting fuel usage by 1
percent could save $250,000
per plane per year
Chillers now run 9x faster
than unconnected equipment,
avoiding more than $300,000
in hourly downtime costs
Improves access to production
and supply chain data
worldwide, reducing downtime
costs by as much as $300,000
per day