business model innovation: unleashing digital value ......global ict market continues to grow it...
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
Andrew Rowsell-Jones
VP and Research Director
CIO and Executive Research Group
Gartner Inc.
Business Model Innovation: Unleashing Digital Value Everywhere PIKOM
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
The World is Changing
7.3 Billion Mobile Phones
1.1+ Billion
$47.5 Billion Online Sales per
Quarter
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Malaysia’s Total Factor Productivity Growth Lags Neighbors’
Source: 18th PRODUCTIVITY REPORT, MALAYSIA PRODUCTIVITY CORPORATION, May 2011
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
+
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
SKF: From Ball Bearings To Reliability Services
Source: SKF
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Procter & Gamble: From Multi-Channel to Omnichannel
• Be everywhere consumers are
• Respect the shopping habits of consumers
• Have relevant, engaging content
Multi Channel Strategy
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Investment cost per truck +30%
Truck haulage cycle times -7%
Fuel consumption -10%
Tire wear -12%
Mechanical availability + 8%
Increased productivity +5%
Maintenance costs -14%
Increased truck life +12%
Labor costs -5%
Improved safety/Reliability to be determined
Source: AUTONOMOUS vs. MANUAL HAULAGE TRUCKS — HOW MINE SIMULATION CONTRIBUTES TO FUTURE HAULAGE SYSTEM DEVELOPMENTS
Juliana Parreira, John Meech — University of British Columbia
Less Cost, Less Death, Less Air: Autonomous Mining Equipment
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Khan Academy: From Physical to Virtual
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$4.2
TRILLION
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Global ICT Market Continues to Grow
IT Spending by Sector, Worldwide, USD Trillion, 2011 to 2017
CAGR (%) 2011-2017: 3.1%
4.2
2011 2012 2013 2014 2015 2016 2017
Telecom Services
IT Services
Enterprise Software
Data Center Systems
Devices
3.5 3.6 3.7 3.8 3.9 4.0
Overall IT (USD Trillion) Forecast
Source: Forecast Overview: IT Spending, Worldwide, 4Q13 Update, G00259314
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Top 10 Strategic Technology Trends for 2014
Future Disruption
Derivative Impact
Converging Forces
Mobile Device Diversity & Management
Mobile Apps & Applications
The Internet of Everything
Hybrid Cloud & IT as Service Broker
Cloud/Client Architecture
The Era of Personal Cloud
Software Defined Anything
Web-Scale IT
Smart Machines
3D Printing
NEXUS NEXUS
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Mobile: No Single Vendor Will Dominate; There's Space for Three Leaders
0% 20% 40% 60% 80% 100%
Greater China
Emerging APAC
Mature APAC
North America
Western Europe
0% 20% 40% 60% 80% 100%
Greater China
Emerging APAC
Mature APAC
North America
Western Europe
Gartner, Forecast for Device Shipments by Operating System, Worldwide, 2Q13
Han
dse
ts
Ta
ble
ts
Feature phone
Other OS
BlackBerry
Windows
iOS
Android
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© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Device vendors like Apple and Google will not be
the most strategic mobile platform in the workplace
Manage Mobile Diversity to Extract Value
Enterprise mobile platforms are key strategic solutions encompassing mobile applications, integration, management, and security
Enterprise Mobile Platform
• Cloud-delivered
• Social-enabled
• Multichannel
• Device-aware
• Device-agnostic
• Removes complexity from mobile decisions
• Protects enterprise from mobile device wars
• Drives reuse and faster mobile adoption
Emerging leaders
…with more joining soon
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The Internet of Everything: a Megatrend
2009 Total devices: 2.5 Billion
2020 Total devices: 37.3 Billion
Personal Devices
Internet of Things
Personal Devices
Internet of Things
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Optimize utilization Manage
Pay-per-use Monetize
Remote operation Operate
Provide digital services & content Extend
Focus on Usage Models to Uncover Value
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Forecast
Source: Gartner, Forecast: Public Cloud Services, Worldwide, 2011-2017, Q13 Update, G00248730
Public Cloud Services End-User Spending by Segment, APAC Mature Markets, 2011-2017 (USD Millions)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2011YR
2012YR
2013YR
2014YR
2015YR
2016YR
2017YR
Cloud Application InfrastructureServices (PaaS) Total
Cloud Management and SecurityServices Total
Cloud System InfrastructureServices (IaaS) Total
Cloud Application Services (SaaS)Total
Cloud Business Process Services(BPaaS) Total
$ million
Cloud: Usage is Growing
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Mind the Gap to Harness Value
Hybrid Cloud Service:
A cloud computing service that is
composed of some combination of
private, public, and community cloud
services, from different service
providers, for capacity or capability.
Private Community
Public
Single user or unshared
Unlimited users and shared
Limited users
∞
Hybrid
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Software Defined Anything: Emerging Standards; Big Benefits
Hype Cycle for Virtualization, 2013
Source: Hype Cycle for Virtualization, 2013, G00250781
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Characteristics:
• Function defined through
software, not hardware
• A policy-based approach
Benefits:
• Standardization
• Faster (re)configuration
• Higher agility
• Higher utilization
Compute Storage Network Software
Application/
Infrastructure
Designer/Models
Physical Resources
Orchestration
CMP + CSB
Service Catalog
Programmable Access
(API)
Cloud
Services
Plan Your Journey to Programmable Everything to Deliver Value
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Beware a “Kodak Moment”
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. 20
Five Golden Rules To Find Digitalization Opportunities
I. From now on, for every business issue or opportunity, ask “how does digital affect this”
II. Address issues of cannibalization quickly and courageously
III. Think of digital and physical in combination
IV. Focus on the evolution of your digital ecosystem
V. Embed digital execution in multi-disciplinary teams
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Suggested Actions
Identify Digital Leadership for your enterprise
Take a comprehensive approach to Digital Business Strategy
Look for Digital Opportunities in 2014
Conduct your first Revenue Threat Assessment in 2014
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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Digitalizing the Business Mark McDonald, Andrew Rowsell-Jones (G00233511)
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CIO Advisory: Conduct Your First Annual Enterprise Revenue Threat Assessment Summit Ken McGee (G00235278)
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Business Model Innovation: Apply Metrics for Business Success Andy Rowsell-Jones (G00246035)
Differentiate the Customer Experience by Driving Innovation Into All Business Model Components Ed Thompson (G00246252)