DIGITAL TRANSFORMATION

The Era of Platforms

Our world is getting more Digital by the Minute

Smart Phones & Tablets - The Data Flood -

1.9 Billion smartphones will be shipped by 2016 35 Zettabytes of data expected to
and tablet shipments will rise to 304Million be created by 2020
1.9Bn 35 Zb

Connected Things-
By 2020, 25 Billion connected things will be
in use, in 2015 more than 4.9Bn connected
4.9Bn things will drive disruption across industries.
Generation C
65% of them are under 35 but they span the
generations, empowered by technology to
search for and consume across all platforms
65% and all screens, whenever and wherever they
want.

Online Commerce - Ubiquitous Connectivity

450 Billion, estimated number of business Nearly 2.3 Bn unique 4G connections will be
transactions on the internet, B2B & B2C per active in 2020, this number excludes Machine
450Bn day by 2020 2.3Bn to Machine connections.
How fast is this happening

Adoption of Technology has accelerated to a dizzying Speed can we keep up?

75 Yrs

38 Yrs

13 Yrs

4 Yrs

3 Yrs

2.5 Yrs

35 days
Something Very Interesting is Happening!

Business models are being turned on their heads

The Worlds Largest The worlds most The Worlds most The Worlds Largest
Taxi company Popular content owner Valuable retailer Accommodation Provider
Owns NO Vehicles Creates NO Content. Owns NO Inventory Owns NO real estate
The Perfect Storm
Exponential Technologies are fuelling this storm
Big Data / Sensors & Mobile Cloud Natural User Ubiquitous
Analytics Actuators Technology Computing Interfaces Connectivity
Technology
Trends

Integrated Automation Big Data

Digital & The Internet Of & The Social Anything As
Physical Of Everything Knowledge Advanced Matrix A Service
Experiences Work Analytics
Leverage
Digital

Improve The Experience Enhance Productivity Find New Business Models

How does all of this impact Businesses ?

The Enterprise of the Future has vastly different expectations from Technology

Adapted from McKinsey Presentation at Zensar GPW 2015 by Noushir Kaka

1 2 3 4 5

CAPEX IT SPEND ATTACKERS ADOPTION ROBOTS

UPTO 25% OF ENTERPRISE ADOPTION OF DIGITAL ROBOTS AND ARTIFICIAL

TECHNOLOGY MOVES MOST INCREMENTAL
REVENUES WILL BE TAKEN TECHNOLOGIES INTELLIGENCE JOINS
FROM COST TO CAPITAL INVESTMENT IS IN DIGITAL
BY DIGITAL ATTACKERS WILL VARY THE WORKFORCE
Digital Attackers capture upto 25% by 2025
Retail example Banking example
Incremental revenues N.A. -2012-13, USD billion Incremental revenues 2012-13, USD billion
Case Study Ant Financial Services Group

Chinas most valuable financial technology company -

valuation of roughly $60 billion - Financial-services
affiliate of e-commerce giant Alibaba Group Holding
Ltd.

My Bank & Ant

Micro Zhao Cai Bao 3.6
Zhao Cai
Total Active YuE Bao Loan nln policies to 369
Bao 10 Mln +
Users 450 mln + 260 mln + users 20 mln + Small million customers
investors
& Micro businesses
Case Study Ant Financial Services Group

Shared Ecosystem

Financial Services Consumers

Insurance E-commerce
Wealth News
Management Entertainment
Payments Health care
Credit
Merchants Local Services

Competitive Advantage
Alibabas large merchant and consumer base needs
financial solutions
Cloud & Data Analytics Alibabas data insight
provides deep understanding of consumer behavior
Blue Ocean Products Low cost micro online
products like Merchandise returning insurance
Cross sell opportunities with Alibaba

Economics
Profit sharing agreement Alibaba receives 37.5% of Ant Financials pre-tax profits
 Case Study Ping An Insurance Group

Developed upstream digital platforms to create lead flow into Ping Ans
traditional financial services
Hao Che Large customer
Wan Li Tong
New business

Trading platform for

Loyalty points program numbers, frequent
used cars
interactions
lines

Data mining, precision

Lu Fax marketing, customer
Qian Bao Tian Kia Tong
Peer to Peer lending
platform
Online WalleT Social Networking migration

Acquire New
Customers
Traditio-nal financial
services

Banking Insurance Finance

One Account
Most incremental spend is on Digital
750-950 3,440-3,500
Global Enterprise IT spend (US$ billion)
+25%
2,750 450-650 80%
-15-25% 35%
10%
20% Digital Tech

Traditional Tech
90%
65%

2014 Traditional spend New Service lines 2020E

evaporates
Adoption will vary over the next 5 years
When do you expect the following technology to reach and adoption level of more than
50%?
Timeline to
adoption Here and Now Medium term technology Far out

14

0 to 2 44 44 44
years 54
70 39

2 to 5
years
40 44 41
27
5+ 47
26
years
19 16 11 14
4
Enterprise Cloud Social Process Analytics Internet
Mobility (IaaS, SaaS Media and Automation Big data Of things
And mobile and PaaS) Enterprise And
connectivity digitization
DIGITAL
TRANSFORMATION
Making It Happen
Developing a Digital Organisation The Process

Current Business Growth Requirements and Future Business Augmentation Plans

Taking Stock Digital Digital Re-engineer Technology

Structure Culture Processes
1 2 3 4 5

Dynamic Economic, Competitive and Technology Scenario

Internal Capabilities Adaptability to Intrapreneurship Digitizing processes Ecosystems

External Competitive innovation & change mindset Deliver unified Awareness of latest
Scenario Create conditions for Adapt technology to customer experience digital innovations
Business Environment Digital Excellence improve performance Reviewing business Flexible and adaptable
Cross functional and deliveries models IT infrastructure
collaboration Embrace and prepare
for disruptions
Digital Analytics in
decision making
Developing a Digital organisation
Creating the Digital Culture

Skill Development The Experience Journey

Attraction Engagement Positive Action Extension

AI supported BOTs with
personalized cues
mapping aspirations and
career paths.
Multi modal access, Actionable feedback, Ongoing assessment on
performance maps with contribute content, the job with personalized
real time contextual rewards hot higher levels feedbacks and connects
support and deep of learning attainment. to mentors and rewards
analytics supported by aligned with career goals
Augmented Reality and and opportunities
Virtual Reality available in the
organization.
Developing a Digital organisation
Creating the Digital Culture

Skill Development -
Developing a Digital organisation
Trends to track and incorporate in your firm

Data Security Digital Devices Artificial Intelligence Ecosystems

Security-aware Internet of Things
application design
Integrated database
security
Dynamic access controls
Runtime application
protection
Block Chain Technology
Software intelligence Platform based
Wearable Devices needs to be seen as Interconnected
across-the-board Ecosystems will reshape
Telematics functionality and align industries
Developments in
cognitive computing
 Transform
Surely but Securely
ganeshn@5FWorld.com

www.ganeshnatarajan.com