accelerating dx across canada: addressing the big...

Accelerating DX Across Canada: Addressing The Big Questions

Mira V Perry, IDC Canada Enterprise Applications27 September 2017

Source: IDC Canada BITAP (Business and IT Advisory Panel Survey) n1 2016 Survey, March 2016

4 Big Questions About DX in Canada

4

What problems need to be solved?How is Canada progressing? What technology will help make a difference?Where should business & IT leaders focus first?

1

2

3

4

Digital Transformation (DX)DX: Fundamentally changes the way something is done.

Results in a new approach for creating and consuming products & services.

Plus, increases agility, flexibility, and scalability.

CLOUD

1. Hybrid taking shape 2. Data centre growth 3. Moving from “Bunch of Clouds” to more unified architecture

ANALYTICS

1. Analytics is strong2. Focus on data quality 3. Improved workflow integration4. Data scientist critical

SOCIAL/COLLABORATION

1. Collaboration is cloud heavy2. Increasingly analytics enabled3. Workflow integration lags

Digital Transformation is Multifaceted

7

Operating ModelTransformation

New Digital Revenue Streams

InformationTransformation

Informationas a Competitive

Advantage

WorkSource Transformation

Ecosystem-based

Workforce

Omni-Experience Transformation

Blend Physical & Digital

Experiences

Leadership Transformation

An “Outside In” Business

Environment


What problems need to be solved?

IT Execs: 23%

Canadian Executives:Top Organizational Priority for 2017

9

“Operational Efficiency&

Productivity Gains”All Execs:22%

CEOs: 38%

Source: IDC Canada Top Executive Survey, Nov 2016 n=161

Additional Executive Priorities & Concerns

10

Customer Engagement Sales & Marketing Initiatives

Market Expansion Economic Uncertainty

Source: IDC Canada Top Executive Survey, Nov 2016 n=161

Ability to Change Fast

Security

Performance

Reliability and Uptime

Cost Management

Digital Transformation Depends on IT

Source: Top Executive Survey, IDC Canada, 2015

Top 5 Concerns About IT

Manual Tasks Burn Up the IT Calendar: No Time for New Work

12

Trending the wrong way: IT staff spent 2 weeks more“keeping the lights on” vs. innovative / new projects

Average work week of network admins in Canada

Reduce work on routine tasks to free time for new projects

Help IT Innovate

• Increase automation• Standardize and optimize

equipment• Refine processes• Spend less time on unplanned work • Consider outside help for time

efficiencies and skills augmentation


How is Canada Progressing?

14

AD HOC

OPPORTUNISTIC

REPEATABLEDigital Player

Digital Explorer

Digital Resister

MANAGEDOPTIMIZEDDigital Disruptor

Digital Transformer

Canadian DX IDC MaturityScape Benchmark & Examples

e.g. delivery company

e.g. dog walker

Note the above are illustrative examples based on a cursory assessment.

21%

42%

24%

11%2%

#IDCdirectionsTO

Digital Transformation Taking Shape in Canada

15Source: IDC Canada, Top Executive Survey, November 2016n=154 business and IT executives

Reinventing relationships with customers through digital transformation

initiatives

NEW RELATIONSHIPS

51%Using DX initiatives to

reinvent workflows and processes to reduce costs and

increase productivity

NEW PROCESSES

59%Digital transformation

is reducing the physical assets needed

by the organization

ASSET REDUCTION

49%

The Return on Digital Investments

16

Traditional

22.3%

Digital

31.5%Digital

7.8%Traditional

5.6%Revenue driven from IT Gross Profit driven from IT

Source: “The ROI of Digital Technologies” by Mark Schrutt, IDC Canada, June 2016


What technology makes a difference?


… some technology doesn’t make the right impact

19

This Is Why We’re Here…

20

Critical IT Domains to Enable Transformation

Viewed as most important technology by

IT Executives

$4.3B

Viewed as most important technology by Business Executives

$3.5BSource: IDC Spending Guides, February-March 2017

21

Canadians are reluctant to combine Cloud & Data

HYBRID

Collaboration Dominates Cloud Adoption


0% 40% 80%

Conferencing Applications

Email

Team Collaborative Applications

CRM (including Contact Centre)

Finance & Accounting

Business Intelligence/Analytics

HR/HCM

Database DBaaS

Big Data Analytics

Cognitive Computing/ML

% of RespondentsSample Size = 354

Communication & Collaboration


Communication & Collaboration are core elements of DX

Growing demand for embedded UC&C across enterprise apps

Social/Collab + AI drives innovation

Voice & Bots are transformative here

Application and Screen Sharing

Video and Audio Conferencing

Instant Messaging and Presence

Polls, Surveys, and Whiteboard

Conferencing

Conferencing Applications: Functionality

Source: IDC Canada IT Advisory Panel (ITAP) n5 2017 Survey, June 2017

26© IDC Visit us at IDC.com and follow us on Twitter: @IDC

QE01A: Please indicate your organization's state of adoption for the following technologies: - Conferencing applications

Sample Size = 311

76%

6%

5%

13%

Currently using

Plan to adopt within 24 months

Plan to adopt in 2-5 years

No plans to adopt

Canadian Adoption of Conferencing Software

Biggest Impact from Conferencing Technology

27

Managing corporate communications

Collaborating with internal teams

Customer satisfaction

NB: "Impact" is measured in terms of time savings, quality of execution and perceived effort.N=700, Source: IDC Workforce Transformation Survey, February 2016

Top Responses Additional Internal Benefits

Additional External Benefits

Managing partner servicesManaging customer engagementSales opportunity qualification

Cost initiativesSharing informationContinuous learning


Canadian Conferencing Application Budget Allocation Change


Q: How do you expect your organization's budget allocation to each of the following software technologies to change in 2016? - Collaboration – Conferencing

0% 10% 20%

Increase 20% +

Increase 11-20%

Increase 5-10%

Increase 1-4%

% of Respondents

Sample Size = 410

0% 50% 100%

Increase

No change

Decrease

Small

Medium

Large

Conferencing Budget Plans Budget Increases

Reasons to Increase Budget for Conferencing Software


QA07A: What are the main reasons for your organization to increase budget for each of the following software technologies? - Collaboration – Conferencing

0% 60%

Add Users

Upgrade existing solution

Add functionality

Purchase new solution

Switch to another vendor

% of Respondents

Sample Size = 127

Canadian Contact Centre Adoption


QE01E: Please indicate your organization's state of adoption for the following technologies: - Contact Center applications

Sample Size = 311

31.9%

8.9%

8.8%

43.9% Currently using

Plan to adopt within 24 months

Plan to adopt in 2-5 years

No plans to adopt


Communications & Collaboration Applications


Cognitive/AI Technologies

It was 1980 something…


#IDCdirectionsTO

Source: IDC 2017

Behavioral Interactional

Performance

Long form

Geolocation

News

Personal data

Healthcare

Location

Sports & Entertainment

SocialCorporate

Logistics

Financial

Marketing

Sales

Procurement

Asset mgmt.

R&D

Logistics

HR

Anti moneylaundering

Retail pricing

Patient outcomes

Telco churn

IT performancemgt.

Retail

Travel

Media

Healthcare

InsuranceInvestment

Commercial leasing

Advertising

Legal

Driverlesscars

Smart home devices

Self-flying drones

Roboticsystems

Text analysis

Video analysis

Image analysisPredictive analytics

NLP

APIs

ConnectorsData storesHypotheses generation

Machine learning

Speech Recognition

Dialogue Mgt.

Finance

Risk mgmt.

Weather

IDC’s Cognitive Solutions Ecosystem

35

36

Highlights: Cognitive Software AttributesInteracts• Performs deep natural language processing and analysis • Provides human style communication (ie- questions and answers)Guides Supports human decision-making with more accuracy, confidence and speed• Predicts and recommends possible outcomes• Scores outcomes with evidence for human analysisLearnsAccesses broader and deeper bodies of evidence, applies them to a more comprehensive view, without bias.• Conducts learning in real time as data arrives• Continuous learning is practiced, improving capabilities over time• Can identify similar past experiences and apply that experience to the present

© IDC Visit us at IDC com and follow us on Twitter: @IDC

Talking to a bot: it’s familiar

Bots: Amplifying Productivity & EfficiencyEmployee Productivity

• Manage calendar• Manage email• Search• Optimize resources

Sales & Marketing

• Offer incentives• Deliver relevant content• Make recommendations

Customer Experience

• Manage customer requests

• Manage account settings

• Offer alerts


Healthcare

• Staffing status and optimization

• Deliver alerts• Communicate with

team

Government

• Resolve parking tickets• Provide Q&A support• Manage visa

applications

Retail/Wholesale

• Place orders• Answer questions• Manage shipping

preferences

Source: IDC Canada IT Advisory Panel (ITAP) N3 2017 Survey, March 2017

Canadian Investment Plans For Cognitive Systems

39

Q: Which phase best describes your organization's investment plans for each of the following digital transformation solutions? - Cognitive Systems

0% 20% 40% 60% 80% 100%

Already in production

In pilot stage

Plan to invest in the next 12 months

Plan to invest in the next 2 years

No plans to invest at this time

Don't know

% of Respondents

Sample Size = 315

20%

55% uncommitted

17% plan to adopt in 24 months


Contact Center + Cognitive in Canada


Q: For each of the following applications used by your organization, please indicate if it currently has cognitive attributes. - Contact center applications

0% 20%

Yes

Currently exploring

% of Respondents

Small

Medium

Large

Sample Size = 430


Customer Service + Cognitive in Canada


Q: For each of the following applications used by your organization, please indicate if it currently has cognitive attributes. - Customer Service applications

0% 20% 40%

Yes

Currently exploring

% of Respondents

Small

Medium

Large

Sample Size = 430

Top Canadian Reasons for Adopting Cognitive Technologies

42Q: Why is your organization undertaking each of the following Digital Transformation initiatives at this time? - Cognitive SystemsSource: IDC Canada’s IT Advisory Panel (ITAP) N3, 2017; Sample Size = 60

Create a more effective business

Manage risk

Comply with regulations

ID and Implement Growth Strategies

Improve health & safety

Improve customer service/experience

Leverage talent


Business Improvements from Predictive Analytics

43Q: Have these measured or quantified results from your advanced analytics solutions shown any of the following business improvements?

Sample Size = 56

Improved Customer Experience (63%) Improved Productivity (60%) Increased Revenue (57%) Improved Ability to Innovate (50%)Decreased Costs (41%)


Where should leaders focus?

All Five Pillars Matter… as does Prioritization

47

#IDCdirectionsTO

Leadership

48

The ability to see changes in the ecosystem and create a DX vision Can see the digital aspect and opportunity of

markets, customers and service providers Anticipate and develop product and

operational innovations Communicate the vision!

49

Tend to be CEOs, or in finance and strategy roles View data as a strategic asset View technology as a source of competitive advantage See cloud as the most important technology Are more satisfied with their technology suppliers

Executive Attributes: DX-Oriented Organizations

Source: IDC Canada, Top Executive Survey, November 2016n=100 non-IT executives

Source: IDC Canada, Top Executive Survey, November 2016 n=100 non-IT executives

1. Employee Productivity 60%

2. Operational Cost Reduction 54%

3. Formal ROI Metrics 50%

4. Customer Satisfaction 49%

5. Increased Revenue 46%50

How Canadian Executives Are Measuring the Success of Technology Projects

Omni-Experience

51

Creating experience and engagement that builds enduring relationships, and amplifying the impact of products and services through the use of technology.

Continually Attract customers Grow loyalty with customers,

partners and employees Positively impact business

performance

#IDCdirectionsTO

Where is the Omni-Experience Momentum?

52

45%Overall

29%Government

34%Retail

61%Utilities

56%Banking

Highest Industries

Lowest Industries

Source: IDC Canada Omni-Experience MaturityScape Benchmark Survey, 2017; n=273

CANADA

#IDCdirectionsTO

Technology to Fuel Digital Transformation

Viewed as most important technology by IT

Executives

Viewed as most important technology by Business

Executives

Source: IDC Spending Guides, February-March 2017

Enhances collaboration, contributing to improved productivity & efficiency

Accelerates innovation when combined with 3rd

Platform Technologies

Answers to the 4 Big Questions About DX in Canada

1. What problems need to be solved? Productivity!2. How is Canada progressing? In Catch-up Mode3. What technology will help make a difference? 3rd Platform4. What should business & IT leaders focus on first? Leadership

Canadian DX Technology Buyer Action Plan

56

Listen and ask questions

Open doors, meet innovative vendors

Support internal/external collaboration

Demand business outcomes

Consider hybrid if cloud is not optimal for you


THANK YOUMira V [email protected]@miravperry

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