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Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research 23 rd of October, 2015 SAP Business Transformation Summit in St. Leon Rot, Germany

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Page 1: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Survival of the Quickest:The Race to Become a Digital Enterprise

Philip CarterVP, IDC European Research

23rd of October, 2015

SAP Business Transformation Summit in St. Leon Rot, Germany

Page 2: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC2

By the end of 2017, two thirds of the CEOs of the G2000 enterprises

will have digital transformation (DX) at the center of their corporate

strategy

Page 3: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Digital Transformation is a CEO Priority

© IDC Visit us at IDC.com and follow us on Twitter: @IDC3

‘We’re also taking

advantage of the

immense business

opportunities

offered by

digitalization’

Joe Kaeser,

CEO Siemens

‘The possibilities

of the digital

revolution must be

put to good use’

Tom Enders,

CEO Airbus

‘Everything we do

in this networked

world has to be

open’

Volkmar Denner,

CEO Bosch

‘We felt we have

to go digital in a

much more

proactive way’

Paul Bulcke

CEO Nestlé

Page 4: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Thrivers Versus Survivors

© IDC Visit us at IDC.com and follow us on Twitter: @IDC4

The Global 2000 Largest Companies

2/3rd

Survivors

In reactive mode risking company survival

1/3rd

Thrivers

Digital transformation at the center of their corporate strategy

Page 5: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC5

Page 6: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC6

Page 7: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

7

3-D Printing

Cyber Crime

Social

Cognitive Computing

Industrial Internet

Sharing Economy

Digital Disruption

Cloud

Big Data

Digital Economy

Industrie 4.0

Virtual Reality

Digital EnterpriseBusiness

Model Shift

API economy

Analytics

Internet of Things

Augmented Reality

Information Management

Rest APIs

Robotics

Omni-Channel

Predictive Analytics

Chief Digital Officer

Regulation

Data Lakes

Mobility

Data

Page 8: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC8

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Can execute upon a vision

for digital transformation

Page 9: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

`

9

‘Up to half the world's

banks may lose out

and disappear due to

failure to keep pace

with digital disruption’BBVA chairman and CEO Francisco Gonzalez

Page 10: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC10

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Blend digital and physical

experiences to garner customer

allegiance

Blend digital and physical experiences

to garner customer allegiance

Page 11: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC11

In 2014, Domino’s Pizza sold €185 million worth of pizza via its mobile platform in the UK and Ireland alone

Page 12: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC12

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Blend digital and physical

experiences to garner customer

allegiance

Turn information into a

competitive advantage

Turn information

into a competitive advantage

Page 13: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC13

The hidden

gem in the

Caesars

bankruptcy

assessment

Its

US$1 Billion

information

asset

Page 14: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC14

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Blend digital and physical

experiences to garner customer

allegiance

Turn information into a

competitive advantage

Create new digital revenue streams from

connected systems

Create new digital revenue streams from

connected systems

Page 15: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC15

Page 16: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC16

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Blend digital and physical

experiences to garner customer

allegiance

Turn information into a

competitive advantage

Create new digital revenue streams from

connected systems

Leverage technology to win the talent

wars

Leverage technology to win the talent

wars

Page 17: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC17

The more Facebook likes and shares =

the better rates you get!

Your interest rates are determined on the level of social

interactions that you have through their social media

platforms

Page 18: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC18

Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Blend digital and physical

experiences to garner customer

allegiance

Turn information into a

competitive advantage

Create new digital revenue streams from

connected systems

Leverage technology to win the talent

wars

Page 19: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC19

Digital Transformation is Multi Faceted and Accelerated

Leadership Transformation

Omni-Experience Transformation

InformationTransformation

Operating ModelTransformation

WorkSourceTransformation

Page 20: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC20

The Digital Transformation Journey

Page 21: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter

© IDC Visit us at IDC.com and follow us on Twitter: @IDC21

Source: IDC, Digital Transformation Maturity Model, 2015

IDC’s Digital Transformation MaturityScapeDigital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies.

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter

Page 22: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter14%

32% 33%

14%8%

20%

34%28%

12%

5%

Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter

© IDC Visit us at IDC.com and follow us on Twitter: @IDC22

Source: IDC, Digital Transformation Maturity Model Benchmark, 2015; n= 317 IT and LOB Executives, March, 2015

Source: IDC, European Digital Transformation Maturity Model Benchmark, 2015; n= 412 IT and LOB Executives, May 2015

US Benchmark

European Benchmark

Page 23: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter14%

32% 33%

14%8%

20%

34%28%

12%

5%

Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter

© IDC Visit us at IDC.com and follow us on Twitter: @IDC23

Source: IDC, Digital Transformation Maturity Model Benchmark, 2015; n= 317 IT and LOB Executives, March, 2015

Source: IDC, European Digital Transformation Maturity Model Benchmark, 2015; n= 412 IT and LOB Executives, May 2015

US Benchmark

European Benchmark

Page 24: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

24

Re-Think IT

1

3 Actions We Can Take to Move from “Digital Explorer” to “Digital Transformer”

Page 25: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC25

Have you gone through a major IT re-

organization in the last 12 months?

= YesRetweet

Favourite

@carter_pc #sapbtsummit

= No

Page 26: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC26

____% of European organizations have gone

through a major IT re-organization

in the last 12 months

IDC European IT Executive Survey. April 2015, n=1451

55

@carter_pc

Page 27: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

The 3rd Platform Driving IT Growth

© IDC Visit us at IDC.com and follow us on Twitter: @IDC27

Page 28: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC28

Page 29: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

29

Re-Think IT

1

3 Actions We Can Take to Move from “Digital Explorer” to “Digital Transformer”

Define Digital

2

Page 30: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

The 3rd Platform’s ‘Innovation Phase’

© IDC Visit us at IDC.com and follow us on Twitter: @IDC30

Page 31: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

What does the IoT ‘Stack’

Look Like?

© IDC Visit us at IDC.com and follow us on Twitter: @IDC31

Wrong

Question

Page 32: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

The Internet of Things (IoT) ‘Stack’

© IDC Visit us at IDC.com and follow us on Twitter: @IDC32

IoT is a network of networks of uniquely identifiable end points (or things) that communicate without human interaction using IP connectivity - either at a lot local level or from a central control point

It is about data capture, transport, analysis… but also business processes/decision making.

Bringing together people, processes, data, and things to make networked connections more relevant by turning information into actions.

Page 33: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

The ‘Use-Case’ approach

© IDC Visit us at IDC.com and follow us on Twitter: @IDC33

Page 34: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Major IoT Use Cases for AutomotiveTracking and

tracing

Scheduling,

responding

& process

optimization

Predictive and

Optimized

Operations

Advanced offers

Page 35: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Major IoT Use Cases for Industrial MachineryTracking and

tracing

Scheduling,

responding

& process

optimization

Advanced

capabilities

Predictive and

Optimized

Operations

Page 36: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

Major IoT Use Cases for TransportationTracking and

tracing

Scheduling,

responding

& process

optimization

Advanced offers

Predictive and

Optimized

Operations

Page 37: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

37

Re-Think IT

1

3 Actions We Can Take to Move from “Digital Explorer” to “Digital Transformer”

Define Digital

2

Make Bold Bets

3

Page 38: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

This is what continuous improvement can get you

Product Enhancements

Innovation

Continuous Improvement Versus Innovation

© IDC Visit us at IDC.com and follow us on Twitter: @IDC38

Page 39: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

39

Re-Think IT

1

3 Actions We Can Take to Move from “Digital Explorer” to “Digital Transformer”

Define Digital

2

Make Bold Bets

3

Page 40: Survival of the Quickest - sapevents.edgesuite.net · Survival of the Quickest: The Race to Become a Digital Enterprise Philip Carter VP, IDC European Research ... Big Data Digital

© IDC Visit us at IDC.com and follow us on Twitter: @IDC40