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Era of Digitial Transformation - Andrew Milroy

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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
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Page 1: Era of Digitial Transformation - Andrew Milroy

Pink Elephant – Knowledge Translated Into Results

Era Of Digital Transformation:

Are You Ready For It?

Andrew Milroy

Senior Vice President, APAC

Frost & Sullivan

Page 2: Era of Digitial Transformation - Andrew Milroy

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)

Page 3: Era of Digitial Transformation - Andrew Milroy

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

Page 4: Era of Digitial Transformation - Andrew Milroy

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

Page 5: Era of Digitial Transformation - Andrew Milroy

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

Page 6: Era of Digitial Transformation - Andrew Milroy

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)

Page 7: Era of Digitial Transformation - Andrew Milroy

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

Page 8: Era of Digitial Transformation - Andrew Milroy

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

Page 9: Era of Digitial Transformation - Andrew Milroy

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

Page 10: Era of Digitial Transformation - Andrew Milroy

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

Page 11: Era of Digitial Transformation - Andrew Milroy

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

Page 12: Era of Digitial Transformation - Andrew Milroy

Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.

Skills: Who Will Drive Digital Transformations?

12

Page 13: Era of Digitial Transformation - Andrew Milroy

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

Page 14: Era of Digitial Transformation - Andrew Milroy

Era Of Digital Transformation: Are You Ready For It? © Pink Elephant, 2016. All Rights Reserved.

Digital Transformation: The Next Big Thing - Blockchain

14

Page 15: Era of Digitial Transformation - Andrew Milroy

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

Page 16: Era of Digitial Transformation - Andrew Milroy

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?

Page 17: Era of Digitial Transformation - Andrew Milroy

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?


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