1© IDC, 2017

Digital & IT Markets in Portugal18 February 2020 l Meeting Center, Lisbon

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WHY WE DO IT - IDC MISSIONIDC will change the way the world thinks about the impact of technology on business & society.

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Strategic Partnerships with Best Universities in Portugal

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Unmatched Media Coverage

Source: Factiva

“Other” includes Canalys, Strategy Analytics, 451 Research, Ovum

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In the last 5 years IDC has been cited an average of nearly 23,000 times per year, or over 110,000 mentions.

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IDC has been cited in nearly 100 IPO filings since 2014.

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Unparalleled Reach & Reputation

IDC will change the way the world thinks about the impact of technology on business & society.

Proven as a Trusted Advisor

Vast Data & Rigorous Methodologies

1B+ data points produced across 500+ markets and 5,000 research documents published annually

Direct Access to Expert Analysts

50+ years of global, regional & local expertise on technology & industry trends in more than 110 countries

1,100 analysts in over 50 countries advising technology suppliers, business leaders and Wall Street

Our Vision

40%of Portuguese CEOs are committed with

Digital Transformation, against 50% WW

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And in your organization?

IT Spending in Portugal

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TotalMarket:

2.522 M€

3,8%CAGR 2018-2023

Portuguese IT spending growth continues to

be impacted by several key factors:

Digital transformation (CX, WoF, IoT&Data Monetization)

Increasing IT funding by business areas

Business process automation & mobilization

Cloud Computing adoption

Cibersecurity & Privacy

Slowing economic growth

Source: IDC Worldwide ICT Spending Guide Industry and Company Size

Corporate IT Spending

Lack of IT professionals

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IT Spending by Company SizeLarge Companies Still Dominate IT Spending

Small offices and small businesses are the fastest growing segments.

Large Business (500-999)

Medium Business (100-499)

Small Business (10-99)

Small Office (1-9)

Very Large Business (1000+)

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6%

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0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

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(%

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IT Spending Share 2023

IT Spending in Portugal, by Company Size

Source: IDC Worldwide ICT Spending Guide Industry and Company Size2018 is historical data. 2019 and later is forecasted data.Bubble size: Spending 2018 (M€)

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IT Spending by IndustryBanking still the largest sector. IT spending in healthcare, retail and professional services with strong growth until 2023. Public IT spending with moderate growth.

BankingConstruction

Discrete Manufacturing

Education

Federal/Central Government

Healthcare Provider

Insurance

Media

Personal Services

Process Manufacturing

Professional Services

Resource Industries

Retail

State/Local Government

Telecommunications

Transportation

UtilitiesWholesale

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(%

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IT Spending Share 2023

IT Spending in Portugal, by Industry

Source: IDC Worldwide ICT Spending Guide Industry and Company Size2018 is historical data. 2019 and later is forecasted data.Bubble size: Spending 2018 (M€)

Digital Transformation Use Cases

▪ Current Situation▪ Business Goals and

Objectives

▪ Key Enabling Technologies

▪ Business Case Summary

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70

+200

+800

Use Cases Include:

Specific Business Use CasesDiscrete funded effort that supports the objective of a specific program that employs LOB and IT resources

ProgramsA long term plan of action to achieve the strategic priorities through a series of use cases

Strategic PrioritiesDescribes what organization expects to accomplish over extended period of time to achieve the mission

Industry Digital MissionsSuccinct representation of enterprises purpose of existence

IDC Energy Insights

• Agile Energy

• Agile Mining

• Energy-as-a-Service

IDC Financial Insights

• Connected Banking

• Contextual and Value Centric Insurance

IDC Government Insights

• Effective National Government

• Smart Cities and Communities

IDC Health Insights

• Knowledge-Based Medicine

• Value-Based Health

IDC Manufacturing Insights

• Collaborative Innovation (AOVC)

• Engaging Consumer Experience at Scale (BOVC)

• Creating Experience Ecosystems (EOVC)

• Technology-as-a-Service (TOVC)

IDC Retail Insights

• Experiential Hospitality, Dining & Travel

• Experiential Retail

IDC Telecommunications Insights

• Communications Service-Enabled Connected Communities

Learn more at www.idc.com/itexecutive

12© IDC

IDC Retail Insights: Experiential RetailPROGRAMS USE CASESStrategic Priorities

Build Your Digital Roadmaps

HORIZON 1Use cases that are deployed today.

HORIZON 2Use cases that

are being incubated

HORIZON 3Use cases that

imagine the possibilities.

StrategicGoals

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Use Case

Source: IDC, 2018

A digital roadmap should be aligned with the overall digital strategy and contain concrete goals in Horizon 1 and more abstract and aspirational goals in Horizon 3.

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• Customer experience is top priority. The need to improve digital banking and customer onboarding is driving pilots and services

• Banks are looking at hyper-personalization in their customer engagement strategies.

• Core transformation will involve a shift away from service buses towards API gateways.

• Cybersecurity, threat detection, and fraud investigation will remain key areas

• Attention will be also on physical security: video surveillance, electronic access control, and incident response solutions

• Innovation will be related to solutions to cut paper-based processes, reduce waiting times, and decrease operational costs.

• Investments in Big Data will continue, as well as mobile banking applications and online banking platforms

Improve Customer Onboarding

Cyberthreat Detection and

Prevention

Personalized and Contextualized

Interaction Optimization

Adaptive Fraud Prevention and

Detection

Core Transformation

Automated Business Operations

Faster Mortgage Origination

Data-Enhanced Identity

Management

Treasury as a Service

Advanced Corporate and Cross-border

Payments

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Spending Share of the Banking DX Spending, 2023

Top 10 Uses Cases Banking

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BankingMain Trends Europe

Source: IDC Worldwide Digital Transformation Spending Guide - Use Case Forecast

Source: European IT Spending Forecast, 2019-2023: Key Digital Transformation Use Cases, Q1 2020

Use cases can be found at: idc-dxusecases.com/

Banking in Portugal

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TotalMarket:

441,6 M€

3,1%CAGR 2018-2023

Banking Omni-Experience Leads

Investments

Omni-experience customer engagement

Next generation payments

Core systems modernization

Increasing regulatory ativity

Cyberthreat detection and compliance

Open banking

Source: IDC Worldwide ICT Spending Guide Industry and Company Size

Corporate IT Spending

• The industry remains challenged by public budgets, especially across Southern European countries. Improving outcomes is a top priority

• Remote patient monitoring. Wearables and user-friendly devices connected via IoT solutions will play a significant part after patients leave clinics and hospitals.

• Solutions for electronic patient record, electronic booking, health data collaborations, integrated with workflows, continue to drive investment

• Healthcare providers must also improve operations that support delivery. It includes tracking non-clinical assets and relating them to specific patient and staff needs. IoT and mobility solutions will play an important role.

• Data regulation and privacy are also key concerns, with hospitals handling sensitive and confidential information regarding patients.

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HealthcareMain Trends Europe

Remote Health Monitoring

Clinical and Non-Clinical Real Time Locating Systems

(RTLS)

Patient of One

Robotic Healthcare

Machine Learning–Driven Predictive

Analytics

Revenue Cycle Management

Post-Acute Care Management

Consumer Virtual/EHR-Based

Telemedicine

Clinical Communication and

Collaboration

Health and Wellness

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35%

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Spending Share of the Healthcare DX Spending, 2023

Top 10 Uses Cases Healthcare

Source: IDC Worldwide Digital Transformation Spending Guide - Use Case ForecastUse cases can be found at: idc-dxusecases.com/

Source: European IT Spending Forecast, 2019-2023: Key Digital Transformation Use Cases, Q1 2020

Healthcare in Portugal

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TotalMarket:

59,5 M€

6,0%CAGR 2018-2023

IT Spending With Strong Growth in Healthcare

Patient centricity

Conveniente acess to care

Process optimization

Financial and clinical risk management

Cybersecurity

Clinical communication and colaboration

Source: IDC Worldwide ICT Spending Guide Industry and Company Size

Corporate IT Spending

• Automation is a strong focus to help enterprises to simplify complex tasks, ease human resources from heavy and time-consuming workloads, and improve asset management, and more efficient quality controls.

• IoT continues to be a fast-growing technology market in European manufacturing, with a third of manufacturing customers having already invested in the technology. The most common use cases include improving predictive maintenance/customer services and sensor-based control and coordination of shop floor devices.

• AR/VR will be important for maintenance, training, and warehousing.

• AI will be central to improving customer experience and efficiency in supply chains and assembly lines.

• European manufacturers are also ramping up investments into technology to support customer engagements that facilitate service and engender loyalty

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ManufacturingMain Trends Europe

Autonomic Operations

Robotic Manufacturing

Self-Healing Assets and Augmented

MaintenanceRoot Cause

Advanced Digital Simulation

Quality and Compliance

Supplier Network Management

Omni-Experience …

360 Degree Customer and Client

Management

Extended Supply Chain Planning

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Spending Share in Manufacturing DX Spending, 2023

Top 10 Uses Cases Manufacturing

Source: IDC Worldwide Digital Transformation Spending Guide - Use Case Forecast

Use cases can be found at: idc-dxusecases.com/Source: European IT Spending Forecast, 2019-2023: Key Digital Transformation Use Cases, Q1 2020

Manufacturing in Portugal

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TotalMarket:

435,5 M€

4,2%CAGR 2018-2023

Industry 4.0 Leads Digital Transformation in

Manufacturing

Smart manufacturing

Digital supply chain

Logistics optimization

Preditive maintenance

Cybersecurity

Open innovation

Source: IDC Worldwide ICT Spending Guide Industry and Company Size

Corporate IT Spending

• Strong focus on customer experience and personalization will drive retailers to invest in solutions that will make life easier for shoppers, ranging from virtual customer assistants to automated sales recommendationand virtual assistants.

• Omni-channel commerce and engagement is a top priority.

• Improving digital supply-chain efficiency also ranks high on priority lists. Supply-network optimization and traceability will be crucial for online retailers

• IoT and AI will be important for gathering data from physical touchpoints and value chains, then integrating it with data from digital activities. IoT automated checkouts are becoming increasingly popular, with retailers using read-tag systems that automatically deduct the cost of items from a consumer's mobile payment app.

• Augmented reality embedded in mobile applications and virtual reality are increasingly used in retail

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RetailMain Trends Europe

Omni-Channel Order Orchestration and

Fulfillment

Omni-Channel Commerce Platforms

Supply Network Optimization

In-Store Contextualized

Marketing

Personalized and Contextualized

Interaction Optimization

Augmented Virtual Experience

Optimized Omni-Channel Marketing

and Advertising

Predictive Network Inventory

Orchestration

Lifecycle Pricing Optimization

Right Content, Right Screen

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Spending Share in Retail DX Spending, 2023

Top 10 DX Uses Cases Retail

Source: IDC Worldwide Digital Transformation Spending Guide - Use Case ForecastUse cases can be found at: idc-dxusecases.com/

Source: European IT Spending Forecast, 2019-2023: Key Digital Transformation Use Cases, Q1 2020

Retail in Portugal

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TotalMarket:

135,3 M€

5,8%CAGR 2018-2023

Omni-channel Leads Spending in Retail

Omni-channel commerce

Omni-experience customer management

Digital supply chain optimization

Mobile enterprise

Cybersecurity

Connected workforce

Source: IDC Worldwide ICT Spending Guide Industry and Company Size

Corporate IT Spending

© IDC25

Unlocking 20/20 Vision for the New Decade

Over the next 5 years, the digitizing economy will

dramatically scale up and speed up. The pace

of digital-powered innovation and operation will

speed up by 10-fold or greater. This increased scale

and speed of innovation and operation will

be powered by hyperconnected operating models:

sourcing value from - and distributing value

through - massive, API-based digital platforms

and communities.

The Future Enterprise: Hyperscale, Hyperspeed and Hyperconnected

THE FUTURE OF ENTERPRISE IDC VISION

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