DigitalTransformationis a Journey, Not a Destination

Karrie Ilagan | Managing Director

Microsoft Philippines

of the workforce will be Millennials by 2025, –

with a different view of the work environment 1

of government employees will use

multiple form factors on a daily basis by 2020 2

Saving annually - If half of all Federal

workers used video conferencing 3

40% 8 Billion75%

4

Filipino Citizens’ Pain Points

Horrible Commute

Heavy Traffic

Unemployment

Disaster Management

Long Lines

Poverty

Demand for

omni-channel

citizen

engagement

Citizen

expectations of

digital service

deliveryExpanding

volume and costs

of data

Digitizing labor

intensive,

paper-based

processes

Cross-agency

collaboration

for better

service

Security,

privacy and

regulatory

requirements

Aging, costly

and inflexible

legacy

technology

Recruiting and

retaining next

generation of

government

workers

The rapid pace of innovation and

societal changes are presenting new

challenges for agencies

All industries are investing heavily in digital transformation

Source: IDC, PAC, Gartner, Markets and Markets, MGI analysis

1 2016 calculated based on 2015 actuals from Gartner plus an 8% CAGR

$151

billionForecasted

digital

transformation

spend for top

ten highest-

spending

industries

Public sector

Telco and media

Advanced manufacturing

Retail/wholesale trade

Health

Professional services

Basic goods

manufacturing

Utilities

Transportation

1

2

3

4

5

6

7

8

9

10

2016

$ Billions

Financial services

6

7

9

12

12

15

19

19

20

32

2019

20161 155

200-

239

$ billions

Forecasted digital transformation spend 2016-19

Digital transformation is essential to advance the mission of government

7

ENGAGE YOUR

CITIZENS

for greater

connection and

participation

EMPOWER YOUR

EMPLOYEES

to deliver

productivity gains

that improve impact

OPTIMIZE YOUR

OPERATIONS

for a more efficient

service delivery

platform

TRANSFORM

YOUR SERVICES

to unlock insights that

improve citizen

services

Enhance

government

field work

Public value is the

measure of success

Enable greater

productivity

Promote

greater

connection

with citizens

Highly Profitable enterprise

Product focus – independently successful enterprises

Siloes

Reinvention of the wheel

Lagging on the innovation curve

PC sales are in decline, and in an alarming way for the first time - ExtremeTech

Gartner: PC sales continue to slide as tablets eat their lunch - Engadget

Windows 8 Couldn’t Save Holiday PC sales - AllThingsD

Gartner: Windows 8 failed to kickstart PC market - ZDNet

PC shipments drop by about 6% as consumers opt for tablets –The Guardian

The Odds are increasing that Microsoft’s business might collapse -

Business I Insider

Microsoft is fast turning into a Sideshow - Forbes

Microsoft downgraded by Morgan Stanley, stock down – San Diego Tribune

18

We needed to find our Core ..

Innovation.Our industry does not respect Tradition.

It respects Innovation on going forward basis.

“Culture eats strategy for breakfast”

Strategy Mindset Culture

Remove Barriers & Enable.

If you are going to have a risk-taking culture,

you can’t really look at every failure as a failure,

you’ve got to be able to look at the failure as a

learning opportunity.

- Satya Nadella