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Pink Elephant – Knowledge Translated Into Results
Era Of Digital Transformation:
Are You Ready For It?
Andrew Milroy
Senior Vice President, APAC
Frost & Sullivan
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation Affects All Aspects Of An Industry
2
Decimates operational
expenses
Fuels innovation potential
Dramatic process efficiency
Engenders of digital consumer
New customers via new
channels
Globalisation and localisation
of the business environment
Fully digital competitors
Competitive risk to business
from both top line and cost
perspective
Supercharge “employee”
productivity
Be Your Own Technology
(BYOT)
Create Your Own Applications
(CYOA)
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Towards Connected Everything
3
Trillions of
Things
Billions
Hundreds
of Millions
Millions
No. of People/Things No. of Applications/Apps
Tens of
Millions
Millions
Tens of
Thousands
Thousands
2020’sTransformation/
Innovation
Connected Industries/
Everything
1970’sSpecialised
Activities
Proprietary
Equipment/
Mainframes
1990’sIncreased
Productivity
PCs/Internet
2010’sDisruption/
Innovation
Mobile/
Cloud
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation Drivers
4
Cloud allowing access
to content on any
device in any location.
Low-cost sensors are becoming increasingly powerful.
They use apps in the cloud and big data.
Mobility driving the
emergence of apps that can
be used on any IP-enabled
device.
Low-Cost Sensors
MobilityCloudDIGITAL
TRANSFORMATION
Big data enables value to be extracted out of an
exponential increase in data. Data from IoT needs
to be analysed.Big Data/AI
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
“Cloudification” Of Operational Technology
5
2010“Cloudification” of IT
2016“Cloudification” of OT
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Data Driven Economy
6
Advertising, IT, Auto, Health,
Entertainment
Advertising, Communications,
Virtual Reality
Mobility, Home Delivery
Entertainment, Content Creation
Accommodation, Travel Guides
$479.80
$300.10
$62.00
$38.15
$25.00
MAJOR INDUSTRIES 2016 VALUE (BILLION)
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Services To Drive Internet Of Things (IoT) Market
7
Growth Rate
26.8%
CAGR 2015-2020
Total Spending
US$24.2B
2015
Total Spending
US$79.3B
2020
1 4 4 5
15 19 17
44
55
-
10
20
30
40
50
60
70
80
90
2015 2018 2020
Bn
APAC IoT Spending
Software Hardware Services
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation: Tesla
8
When two auto makers both had a recall for a similar issue, IoT made a crucial
difference in the customer experience and cost savings.
All of Tesla’s cars include 3G service as a
data only MVNO
GM’s trucks did not have
Internet Access
In January 2014, the US Government asked Tesla and GM to recall certain models
of cars due to a risk of fire coming from faulty charger plugs.
29,000 cars fixed automatically
via a software upgrade
380,000 cars taken manually to
dealerships
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation: ThyssenKrupp
9
1.2 million elevators across the globe
Roughly 20% of errors indicate issues
that will lead to a shutdown
Using analytics and big data to
prevent massive repair costs
Technicians on the ground are fed
with real time data
Able to plan ahead about the parts
that can be sourced from various
locations
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation: Insurance Industry
10
Big data analytics is creating new business models in the “wearable” technology space.
Industry Device Impact
British petroleum has given 30,000
employees a free FitBit device in their
US offices. If an employees logs 1
million steps, a $1000 USD credit is
given on their insurance policy.
US automotive company Progressive
offers a device which can be placed in a
car to monitor driving behavior. The
average user who uses the device
saves up to $150 USD per year.
Health
Insurance
Automotive
Insurance
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Cyber Security: The Elephant in the Room
11
Protecting:
The employee
IT infrastructure
The enterprise’s
digital assets
Protecting:
Customers & citizens
Critical infrastructure
Machine to machine
interface
Physical objects
Protecting:
The user from
himself/herself
The human from
machines
The human to machine
interface
VIRTUAL ENVIRONMENT:
Enterprise Security
PHYSICAL
ENVIRONMENT:
Critical Infrastructure
Security
HUMAN ENVIRONMENT:
IoT Securtiy
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Skills: Who Will Drive Digital Transformations?
12
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
The Internet of Skills
13
Services opportunities in IoT will require new skill sets in the market.
Growth rate
55.2%
CAGR
2015-2020
Total IoT
Dedicated Jobs
500,000
2015
Total IoT
Dedicated Jobs
4,500,000
2020
66%
86%
124%
159%
183%
194%
199%
216%
225%
231%
0% 50% 100% 150% 200% 250%
GPS Development
Node.js
Security Engineering
Electrical Engineering
Big Data
Security Infrastructure
Machine Learning
AutoCAD
Microcontroller Programming
Circuit Design
Top 10 IoT Job Category Growth: USA, 2015-2016
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation: The Next Big Thing - Blockchain
14
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Blockchain Proof Of Concept
15
Industry Company Business Activities
Bitproof uses the blockchain to verify
and timestamp legal documents
eliminating the need for notary services.
Bitproof has partnered with US
universities to verify diplomas.
Everledger uses blockchain to track
individual diamonds from the mine to its
current owner and verifies authenticity to
insurers, owners and law enforcement.
Global diamond fraud is over US$600m
per year.
Provenance stores all supply chain
information for retail products into a
shared ledger and allows consumers to
access this information in real time.
Legal
DiamondInsurance
Retail
Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.
Digital Transformation: Issues To Consider
16
How can your business use digital technology to become
more agile and to create new business models?
How can you transform the customer experience using new
technology?
How can you overcome compliance and security challenges
as your business transforms?
How can you manage the cost and risk associated with
digital transformation?
Where will you find the skills to enable digital
transformation?
Era of Digital Transformation: Are you Ready for it? © Pink Elephant, 2016. All Rights Reserved.
Andrew Milroy
Senior Vice President - APAC
Frost & Sullivan
Thank You. Questions?