Date post: | 06-Jan-2017 |
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Chetan Dube, CEO IPsoft
Beyond Automation – The Rise of Digital
LaborISG Saugatuck Summit 2016
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Why Do We Care? Things look OK.B
usin
ess
as U
sual
?Revenues (USD) ROE
Origination/Sales Activities 1.75T 22%
Balance Sheet Provision 2.1T 6%
Will Ostrich Algorithm Work?
• Profits from all banks: record high of 1T last year• Average return on equity: stable at 9.5%
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Next Big Wave in IT?
Digital Insurance Trend
WORLD 2.0
Transition Between S-curves
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Digital: Threat Or Opportunity
Gravity of Threat (McKinsey)
Magnitude of Opportunity
Digital laggards: 35% net profit erosion
Digital winners: 40% net profit upside
Whi
ch S
ide
Do
You
Wis
h To
Be?
Each One of You Will Be Affected“If the rate of change on the outside exceeds the rate of change on the inside…the end is near”
Business Rules Are Being Redefined• Gartner: By 2017,
companies leveraging autonomics and cognitive platforms will drive a 60% reduction in cost of services.
• Risk of non-adoption versus risk of early adoption.
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Digital OfferingsConnected with
Digital Ecosystem
Digital Maturity Curve
Digital DarwinismWhere Do You Wish to Be?
Informed
Catalyst
Leader
Fast Follower+ Automation
+ Adaptability
+ Analytic
+ Cognitive
Minimal
Very High
5
Majority of Companies Today
Refocus the Business
Reduce Operations Costs
RETURNS AXIS
Deliver a Differentiated End-to-End Digital Customer Experience With Fractional
Costs
CHANGE AXIS
Digitized Selected Segments of Business Processes
• Prioritize which segment: most value• Address people dynamics• Build 2-speed IT operating model• Digitize processes• Connect to ecosystem
STRATEG
Y
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
How Do I Go Digital: Where’s the Value?
Digital, Digital, Everywhere, Not a drop to Drink
• Prof Hofstadter, UIUC:“I don’t want to be involved in passing off some fancy program’s behavior for intelligence when I know that it has nothing to do with intelligence.”
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Spee
d of
Cha
nge
Cog
nitiv
e ve
rsus
Man
ualSemantic
Memory
Affective Memory
Process Memory
Episodic Memory
+
Human Equivalent or Superior Experience
=
+
+
Need for Digital Labor- Can machines really think?
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
What Will Happen to Me?
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
Cos
t Opt
imiz
atio
n O
R B
ette
r Ser
vice
?G
enius of AN
D,
Not Tyranny of O
RCustomer Experience?
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
• Drivers People • Drivers People
• Servers/Apps/Net Business consumer
• Servers/Apps/Net Business consumer Cognitive IT
What about IT? Disintermediate IT?
Ube
rizat
ion
of IT
Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.
What Impact Will I Achieve?
Det
erm
inis
tic G
ains
Cog
nitiv
e
Aut
onom
ic
Machines are no longer comingThey are here!