cio summit perth 2016 - s3-ap-southeast-2.amazonaws.com · australia and the fourth industrial...

Australia and The Fourth Industrial Revolution

Perth, 17th May 2016

Sally Parker,

Research Director

Data Driven Intelligence

Agenda

The Fourth Industrial Revolution

Third Platform Innovators

Digital Transformation

Australia in Perspective

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

Themes at Davos in 2006


Key Themes

Growth potential of India & China

Corruption & transparency

US deficit

Global Competitiveness Rankings

New Zealand #23

Australia #18

Themes at Davos in 2016

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

“The 4th Industrial Revolution is the fusion of technologies

across physical, digital and biological worlds, creating entirely new

capabilities and having dramatic impacts on political, social and

economic systems” Klaus Schwab, WEF Founder and Executive Chairman

“As a society, we are

entering uncharted

territory” Marc Benioff, CEO Salesforce

“There has never been a

time of greater promise

or greater peril” Klaus Schwab, WEF Founder

5

1st Platform

2nd Platform

-5.1%

12.7%

Pursuing DX

initiatives without a

cloud IT foundation

will be utterly

impossible

IDC’s Third Platform for Digital Transformation (DX)


Internet of Things


$1.46T

Global Asia Pacific

Cost of Sensors

Accessibility

>30B Devices

The value of the IoT

solution is proportional

to the speed & number

of times IoT data is

analysed

Vernon Turner, IDC

10x

Increase

in new applications

and new services


Retail

Manufacturing

Healthcare

IoT is not a paintball

project - don’t create

standalone solutions -

look at IoT holistically

Vernon Turner, IDC

Cognitive Computing


The Value of IoT is in the AoT (Analytics)

FSI

Healthcare

Automotive

Siri

Cortana

Watson

APIs

Ampsy

Chess

Master

Golf Pro

50% of development

teams will be using

deep learning and

artificial intelligence in

their solutions over the

next 3 years

IDC, 2016

Cognitive services will

become pervasive… the

challenge will be for

marketeers to re-

humanise the

interaction

Gerry Murray, IDC 2016

3D Printing


Healthcare &

Dentistry

Cost

Propensity to

disrupt markets

Product

Lifecycle

Parts

Manufacturing

From “Need to order

that part”

to “Let me print that for

you”

Implications of 3D car

maintenance

What’s Next?

Augmented Reality & Robotics


From cool technology to life changing aids

Consider the impact on

• Services industry

• Product design cycles

• Postal deliveries

• Surgery

Enterprise first focus

Scalability and Data Driven Intelligence are Key


By 2020

organisations able to analyze all

relevant data & deliver actionable

information will achieve an extra

$430B in productivity benefits

over their less analytically

oriented peers

Dan Vesset, IDC

The Digital Divide is Widening


Exponentials, Unicorns and

the App economy rise at the

expense of traditional ‘Brick

Mortar’ companies

Disruption is not a

destination

An Evolving Business Landscape


75% of S&P 500 will be replaced by 2027

Who Am I?

“the world’s digital industrial

company, transforming Industry

with software-defined machines

and solutions that are connected,

responsive and predictive”

The Era of Digital Transformation (DX)


DX is the continuous process by which enterprises adapt to or drive

disruptive changes in their customers and markets by

leveraging digital competencies to innovate

in the creation of new business models, products, and services

that seamlessly blend digital and physical,

and enhance business and customer experience

while improving operational efficiencies and organizational performance

Most organisations are Just Starting Their DX Journey


Source: IDC, Digital Transformation Maturity Model Benchmark, 2015

DX presents the

opportunity to

redefine the

enterprise value

chain DX is a

technology

enabled, board

level initiative

What about Australia?


WEF Global Competitive Index 2015-16


Australia on the World Stage



? Global Corruption Index (transparency.org)



Global Corruption Index (transparency.org)


Australia is a high wage economy.

Technology is a key enabler for remaining

competitive on the world stage

A Third of the TOP 20 market share leaders, in

most industries, will be significantly disrupted by

new competitors with new offerings, new business

models and new cost structures

Perceived Role of Technology

22

Source: IDC Asia/Pacific C-suite Barometer 2015

CSUITE 2016


39%

Optimiser

26% Opportunist

18% Follower

13%

Creator

3%

Disruptor

2015 2016

3%

Optimiser

12% Opportunist

19% Follower

30%

Creator

36%

Disruptor


Technologies of Competitive Interest

Mobility

Cloud

Big data and analytics

Social media/business/marketing

Internet of Things (IoT)

Security/risk management/datagovernanceeCommerce

Robotics

3D printing


Cloud

Mobility

BDA

Security

Source: IDC Asia/Pacific C-suite Barometer 2015 & 2016

CSUITE 2016

2015 2016

Cloud

BDA

Security &

Governance

What is the most important technology for your organization to

enhance its competitive positioning?

IT and Line of

Business agree

on the categories

but not the

prioritisation

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 24 Source: IDC Asia/Pacific C-suite Barometer 2015

Australia: Top 5 CEO Challenges

What are the CEOs top business concerns, other than meeting financial goals?

1. Escalating

cost of

operation

2. New

Business

Models

3. Customer

buying

patterns

4. New

competitor

s

5. New Gov.

Regulation

2015

CSUITE 2015

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 25 Source: IDC Asia/Pacific C-suite Barometer 2015 & 2016

Australia: Top 5 CEO Challenges

What are the CEOs top business concerns, other than meeting financial goals?

1. Escalating

Cost of

Operation

2. New

Business

Models

3. Customer

Buying

Patterns

4. New

competitor

s

5. New Gov.

Regulation

2015

1. New

Business

Models

2. New Gov.

Regulation

3. Escalating

Cost of

Operations

4. Customer

Buying

Patterns

5. New

competitors

2016

CSUITE 2016

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 26 Source: IDC Asia/Pacific C-suite Barometer 2015

Australia: Top 5 Business Priorities

In 2015 invest in R&D to Innovate for Competitive Leadership ranked 8th

2015

1. Operational

Efficiencies

2. Invest to

Increase

share of

wallet

3. Company

Wide Cost

Savings

4. Customer

Engagement

Initiatives

5. Market

Expansion

CSUITE 2015

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 27 Source: IDC Asia/Pacific C-suite Barometer 2015 & 2016

Australia: Top 5 Business Priorities

In 2016 invest in R&D to Innovate for Competitive Leadership ranked joint 6th

2015

2016

1. Operational

Efficiencies

2. Invest to

Increase

Share of

Wallet

3. Company

Wide Cost

Savings

4. Customer

Engagement

Initiatives

CSUITE 2016

1 Customer

Engagement

Initiatives

2 Operational

Efficiencies

3. External

Partners

4. Market

Expansion

5. Market

Expansion

5. Company

Wide Cost

Savings

1.

Move to an

aaS Model

(new)


28

CSUITE 2016 Australia: Top 5 ICT Top 5 Priorities Q: What will be your organisations top ICT priorities in 2016-2017?


2.

Build a More

Secure IT

Environment

(up)

3.

Infrastructure

Optimisation

4.

Develop or

Enhance

Enterprise

Architecture

5.

Improved

Governance

(new)


Organisations look to either the CIO/CTO

or the CEO as being responsible for DX

Business & IT agree that the 2016-2017 priorities

for DX in Australia are Marketing and Operations

CSUITE 2016

Examples of Digital Innovation in Australia


$23B

business Cancer

Research Organisations

look increasingly to

Open innovation

but less to Crowd

Sourcing

Essential Guidance


Ascertain where you are on your DX journey from a business and IT perspective

Cloud is the underlying platform for DX initiatives. Consider which cloud services are most relevant to your business

Security and data governance are boardroom discussions in a digital world - keep them front of mind early in DX planning

Integrate Innovation Accelerators into your plan with a focus on business solutions not technology

Sally Parker Research Director Data Driven Intelligence [email protected]

Thank You

@datactrchic

mailto:[email protected]

cio summit perth 2016 - s3-ap-southeast-2.amazonaws.com · australia and the fourth industrial...

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