ACS – HOCHTIEF - CIMICDigital TransformationDavid KochChief Risk, Organization and Innovation Officer HochtiefMESA 3: Tecnologías disruptivas y cliente digital

OVERVIEW

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We are fully immersed in a global context that, due its uncertainty, speed of change, the ubiquity of technology and the disruption caused by new digital players, forces every industry to insert innovation as a critical component of their core strategy and culture. A fully developed and adaptive innovation process within an organization is the only way to manage risk, optimize its performance, understand future scenarios and ensure the relevancy of the business by untapping new opportunities. Our traditional approach to innovation is helping us greatly, but innovation efforts have to be aligned and articulated in order to become key drivers of the optimization of the business and the transformation of the organization.

Something is starting to move in the industry. New players are looking into the industry and traditional players are looking into the startup world (this year’s investment is breaking a new record).

This is a critical moment for the industry, and we need to seize the opportunity.

Background

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A new horizon

Mechanization and steam power

INDUSTRY 1.0

Mass production, electrical power

INDUSTRY 2.0

Computers, IT systems,

automated production

INDUSTRY 3.0

Autonomous systems, data, IoT, machine learning

INDUSTRY 4.0

The rising of a new ageFrom the industrial age to the digital age

INDUSTRIAL AGE DIGITAL AGE

Products

Control over the supply chain

Physical assets and capital deprecitation

Organic growth (fusión)

Value chains

Supply ecs. of scale

Diminishing retunrs

PIB as key metric

Platforms

Power to optimize the ecosystem

Digital assets and capital innovation

Assymmetric groth (network effects9

Ecosystems

Demand ecs. of scale

Network effects.

New measures

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Need for changeBusiness model’s evolution

Mass work Concentration of the means of production

Mass market

Industrial model Post-industrial model

The Plataform model fosters the mass participation

Construction Tech Landscape

Source: Tracxn Sector Report – Construction Tech Oct. 2018

LIFE AS A SERVICE

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Life ACS/Hochtief

Purpose

Experiences

Enabling

Life as a Service frameworkLife and Service are the proposed framework in which ACS-HOCHTIEF will explore new innovation opportunities for the creation of experiences in the conjunction of these concepts.

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A global innovation initiative which purpose is to leverage intelligent technologies to reshape our business from within into a high-performance enterprise. By enhancing the efficiency and the quality of our project delivery, we increase value for our clients, foster environmental stewardship and enhance safety.

Purpose

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H1H2H3 H3H2H1Life ACS/Hochtief

Transport

Energy

Urban & Social

Infrastructure

Contract Mining

Health

Work

Education

Environment

…

Food

Research fieldsIdentifying trends on these topics we could foresee our future map of potential innovations

PLATFORM

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Mobile platforms

IoT

Independence and software

interoperability

API y architecture

Cloud services

Open-source

Platform economyModularity: building blocks

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An ecosystem is dynamic and evolves into diverse

communities of actors who create and capture new value

through collaboration and competition.

The value of an ecosystem

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Diversity and the ability to

collaborate, learn, adapt and

innovate together are key

elements in long-term

success.

An ecosystem is dynamic and evolves into diverse

communities of actors who create and capture new value

through collaboration and competition.

Dynamic environments that involve different actors to create, scale and grow with a reach beyond what a single organization can achieve.

Driven by the connectivity of knowledge, resources and capabilities, they enable people to face basic problems, creating new ways of generating value in a world of commoditization.

Competition, although relevant, is not the main attribute. The

ability to share interests, objectives

and values allows us to build environments in

which to grow through collaboration and

obtain mutual benefit.

The value of an ecosystem

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IoTBlockchain

Cybersecurity5G

Digital

OpensourceAPI

Hardware+

Software

Physical

Tech enablers

The “Fog” business opportunityInfrastructures represent a new opportunity to develop new business lines. The threat is posed by digital giants that are already conquering the physical world.

CULTURAL CHANGE

Transforming Talent and Culture

The rigidity and demands of traditional trainingmodels, in the form of masters, or one-off programs, in addition to becoming immediately obsolete and generic fail to reach the majority of employees.

It is necessary to look for models that democratize access to content, that allow for the creation of a common basis of attitude and knowledge so as to produce the cultural change ACS - HOCTHIEF is seeking.

This transformation is linked to technological improvements and the opening of new models, but it necessarily implies a change in culture,knowledge, talent and the attitude of all the people in the organization.

Ubiquity

Platform

ItinerariesConnection with different institutions and training

options

Modularity

Mobility

Ecosystem Create community

New learning models

Transformation begins and ends with people, all of them.

LEARNING CV:SPECIALIZING PROFILES

COMMUNITY ANDCASES OF USE

DIGITAL MINDSET: CREATING CULTURE

• Creating a participatory community that stimulates and shares knowledge and successful use cases in the company.

• High impact on the number of people trained and on the relevance of the contents

• Hybridizing the acquisition of technical skillswith the understanding of new models, and new digital habits.

• Impacting on a basic level of knowledgethroughout the organization to create culture

FOR THE FUTUREWITH DIRECT APPLICATION

HIGH IMPACT

Academy

Culture change - Academy

• Creating a Learning CV in the key areas forACS and with different levels ofspecialisation

• Combining online methodologies with face-to-face actions, with global impact

• Integrating different institutions and universities

Platform Thinking

• December 2018

ACS – HOCHTIEF - CIMIC