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The C-Suite Tech Agenda for a Digital-First World

Philip CarterGVP, C-Suite Tech ResearchOctober 13th 2021

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CEO Expectations in a Digital-First World

In 2022, 70% of G2000 CEOs will commit to their Boards to generate at least 40% of their revenues from digital by 2025

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In June 2021, Visa announced plans to acquire Tink for $2.15B.Tink has been a leading fintech focused on building open banking

APIs across 3,400 financial institutions

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‘We plan to invest $14-$16 Billion a year on streaming services through to 2024’

Bob Chapek, CEO of Walt Disney

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Digital is a major part of our strategy. We are going to be investing approximately

€1 billion over the next five years, approximately 200 million per year in digital. One of the key things is making sure we think

about digital from the bottom up. So, it means, we think Digital-First in the way we organize ourselves and in the way we set up

our processes

Miguel Stilwell D’ AndradeChief Executive Officer EDP

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The Digital-First World Requires a New C-Suite:The Digital Dream Team

7

Customer Experience Leader

CMO, Head of CX, Head of Digital Experience, Head Sales, Head Customer

Service

Finance Leader CFO, COO

Security/Risk LeaderCISO, CRO, DPO

Technology Leader CIO, CDO , CTO, Head of Innovation

Human Capital LeaderCHRO, Head of Talent ,

People & Culture

Operations LeaderCOO, Head of Supply Chain, Chief

Procurement Officer

CEO

Source: IDC C-Suite Research, 2021

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The Traditional C-Suite vs. The Digital Dream Team

8

• Every Function is a Technology Function

• Technology leadership has a seat at the table

• The CEO is personally engaged – ensuring that this is a group of equals in a Digital Tug of Value (VS Tug of War)

What’s New?What’s Different?

CEO

• Business outcomes prioritized over technology features

• Demand for quicker time to value

• Use Cases are the language with measurable KPIs behind

Source: IDC C-Suite Research, 2021

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The C-Suite Business Priorities:Productivity, Innovation & Customers

0

10

20

30

40

50

60

Technology

(IT/Data/Digital)

Finance

Procurement

Security (Risk/Compliance)

Human ResourcesCustomer

Experience/Care/Service

Marketing

Sales

Supply Chain

Productivity

Innovation

Customers

%

Source: IDC’s C-Suite Tech Survey 2021, February 2021 (n=909– Multiple Responses)

What are your organization’s business priorities for 2021? (Only Top 3 Are Shown)

1. Optimize organization's business processes and workflows to improve productivity

2. Actively seek growth opportunities with a focus on innovation and disruption

3. Improve omnichannel orchestration of customer engagement, transactions, and fulfilment to improve customer acquisition and retention rates

Cost reduction and optimization = #5!

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C-Suite Tech Priorities in 2021: Application Modernization, Big Data & Analytics Top the List

10

0 5 10 15 20 25 30 35 40 45 50

Reduce total cost of IT by simplifying IT and minimizing technical debt

Build 'hyper agile' development capabilities to deliver new digital services quicker

Accelerate the shift to the cloud

Increase the use of APIs and other IT tools to better connect, collaborate and co-create with

ecosystem partners (existing and new)

Create a hybrid workplace environment with adequate IT tools and network connectivity

Improve technology staff competencies via inhouse training, upskilling and talent

recruitment initiatives

Create/improve customer-focused digital experience

Invest in security technologies to improve organization's risk posture

Invest in big data & analytics to enable better business visibility

Modernize core business applications (e.g. HR, Procurement, Supply Chain and Finance)

%

Source: IDC’s C-Suite Tech Survey 2021, January 2021 (n=909 – Multiple Responses)

What are your organization's technology priorities for 2021?

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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IDC’s Intelligent Process Automation Framework

The Opportunity

Labor-Centric System-Centric

Decision-Centric& Decision Supporting

8.3 9,3 10,9 13,1 16.0 19,67 7.9

9.411.2

13.716.93.6

4.7

5.8

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

35

40

45

2020 2021 2022 2023 2024 2025

(%)

($B

)

2020-2025 Revenue ($B) with Growth (%)

Decision-centric automation / automation planning

Labor-centric automation

System-centric automation

Total growth (%)

Total: 16.9

Total: 42.4

Selected Segment Growth Rate

System-centric automation CAGR 19.7%

Labor-centric automation CAGR 19.4%

Decision-centric automation CAGR 25.2%

Automation planning CAGR 23.1%

Total Market CAGR

20,1%

Source: IDC Intelligent Process Automation Framework & Forecast 2021 – (Maureen Fleming)

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The Rise of the Automation Center of Excellence (CoE)US-Based S&P 500 Manufacturer

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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Cloud Platforms: the foundational cloud services supporting digital transformation

Compute Services

•Current Services: Virtualized x86 Compute, Bare Metal Compute, Accelerated Compute, Block Storage, Other (e.g., serverless) Compute, Software-Defined Compute Software

•Future Additions: Dedicated Cloud Infrastructure aaS (DCIaaS)

Data Services

•Current Services: Data Management Systems, Object Storage, File Storage, Event Stream Processing Software

• Future Additions: AI Software, Intelligent Knowledge Discovery, End-User Query, Reporting, and Analysis

App Framework Services (Developer-centric software to develop and deploy applications in the cloud, including lifecycle management)

•Current Services: Integration Software, Deployment-Centric Application Platforms, AI Lifecycle Software

• Future Additions: Identity and Digital Trust, IT Automation and Configuration Management (ITACM)

Usage Multiplier Services (Low fee or No fee services)

Services that encourage greater/more effective use of high value services by making it easier to adopt, connect, deploy, track, secure, and update those services. Includes load balancing and DNS as well as marketplaces and bundles of open-source software solutions.

Ecosystem: Complimentary portfolio of Dev/DataOps, security, industry specific partners

Combination of existing IaaS, PaaS, and SISaaS services

Worldwide Foundational Cloud Services Forecast, 2021–2025: The Base of the Digital-First Economy to learn more (Rick Villars & team)

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Worldwide Foundational Cloud Services Forecast, 2018-2025

Source: IDC Worldwide Semiannual Public Cloud Services Tracker, May 13 2021.

* Assuming no expansion in FCS portfolio

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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Granarolo Digital Transformation:Shift to Direct-to-Consumer

ESGFree delivery to support local

communities and elderly people during the lockdown. Also a

new avenue to avoid wastage

CustomersRelationships Deeper engagement with customers

Production Modernization

Production facilities modernized leveraging

robotics to become more sustainable

InsightsKeep track of new trends e.g. milk for babies

During the pandemic, Granarolo, the Italian milk producer transformed its distribution chain, launching a new E-Commerce platform

“The lockdown has accelerated the

modernization process of the entire agri-food chain and in particular of the milk chain.”

Gianpiero CalzolariChairman of the Granarolo Group

Source: IDC Research, 2021

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Customer Experience: Top 10 Use Cases

The darker the color, the higher

Year-on-Year growth rate

Digital Transformation Spending in 2021 for Customer Experience ($102 Billion for Top 10 Use Cases in 2021)

Square size represents Use case Digital Transformation Spending in 2021

Source: IDC's Worldwide Semiannual Digital Transformation Spending Guide, August 2021

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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REACTIVE

ERP Modernization Archetypes

Minimal Maximal

Minimal

Maximal

Scale of technology transformation

Sca

le o

f b

usi

ne

ss

tra

nsf

orm

ati

on

Innovators:Innovate around the core -Isolate and freeze core ERP,

redesign business

Transformers:Reimagine the business.

Move to next-gen, replace

ERP, redesign business

Migrators: Kill the Data center. Lift

and shift ERP assets to the

cloud

PROACTIVE

Peel the Onion:Gradual rearchitecting,

redesign individual processes

Minimalistic:Incremental changes, bolt-on innovations and ad-hoc

automation

Source: “ERP Modernization Strategies, IDC #EUR247475221, March 2021” (Bo Lykkegaard, Tom Seal & Edyta Kosowaska)

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By 2024, 70% of organizations will have transitioned to modular intelligent business suites, harnessing the business processes, data, and innovation across the enterprise

20.7 20 19.4 18.8 18.1 17.4

8.4 9.8 11.5 13.6 16 18.8

0%

1%

2%

3%

4%

5%

6%

7%

0

5

10

15

20

25

30

35

40

2020 2021 2022 2023 2024 2025

($B

)

2020-2025 Revenue ($B) with Growth (%)

On premises/other Public cloud Total growth (%)

Total: 29.0

Total: 36.2

Selected Segment Growth Rate

On premises/other CAGR -3.4%

Public cloud CAGR 17.5%

Total Market CAGR

4.5%

Modular Intelligent ERP Enables the Digital-First World

Source: “Worldwide Enterprise Resource Planning Software Forecast, 2021–2025:# US47984321 - Jul 2021 – Mickey North Rizza, Jordan Jewell & Alex Stratis

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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C-Suite Tech Agenda: The Focus on Big Data & Analytics

0

10

20

30

40

50

60

Technology (IT/Data/Digital)

Finance

Procurement

Security (Risk/Compliance)

Human ResourcesCustomer Experience/Care/Service

Marketing

Sales

Supply Chain

% = Proportion of respondents that highlighted ‘Invest in Big Data & Analytics’What are your organization's technology priorities for 2021?

Source: IDC’s C-Suite Tech Survey 2021, January 2021 (n=909)

‘Where are my customers, and what are their new buying habits’?

‘How can I provide real-time visibility to the business?’

‘What’s my cash position?’

‘How are my people doing?’

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IDC Market Glance: The Future of Intelligence

For areas on which IDC publishes market share data, the top 3–5 market share leaders are represented. For areas on which IDC does not publish market share data, vendor selection is up to analyst discretion.

Source: IDC, 1Q21

Delivery of Insights at Scale

Decision Management Intelligent Automation

Capacity to Learn

dLineage

Ability to Synthesize Information

Distributed Delivery of InsightsData and Model Operations and Governance

Data Culture and Literacy Decision Simulation and Modeling Collective IntelligenceKnowledge Management

Market InsightsDomain InsightsStrategy Insights Data Investigation & Exploration

Source: IDC Market Glance: Future of Intelligence, 1Q21 (Doc # US47459121) – Chandana Gopal, Dan Vesset, Ritu Jyoti, Jennifer Hamel

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Non-Tech Acquiring Tech: Enterprise Intelligence Driven M&A

Acquirer Acquiree Date Type

TD Bank Group Layer 6 Jan-18 Customer experience AI and analytics

AB InBev WeissBeerger Jan-18 IoT analytics for inventory and quality decisions

S&P Global Inc Kensho Technologies Mar-18 Analytics and AI for financial institutions

Nike Zodiac Mar-18 Consumer data analytics

Nike Invertex Ltd Apr-18 Computer vision for customer experience

Walmart Aspectiva Feb-19 NLP for customer experience

McDonald's Dynamic Yield Mar-19 Personalization and decision logic software

LowesRetail Analytics of Boomerang Commerce May-19 Data driven pricing and merchandising

Nike Celect Aug-19 Data science for demand sensing

McDonald's Apprente Sep-19 Conversational agents and speech AI

Mastercard RiskRecon Jan-20 AI-based cyber risk management

IKEAGeomagical Labs Apr-20

Computer vision, ML and AR for designing living spaces

Yum! Brands Kvantum Mar-21 Consumer insights and marketing analytics

Source: Dan Vesset, IDC 2021

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‘The big positive about Dynamic Yield

is that we can take the same

decisioning engine-type logic and use

that in kiosk and global mobile app, so

that we can continue getting further

sales lifts in other digital mechanisms.’Chris Kempczinski

(CEO, McDonald’s)

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The Five Tech Hot Spots for the C-Suite

Productivity => Extreme

Automation

1

Disruptive Innovation => Cloud

Platforms

2

Improve omnichannel

orchestration of customer

engagement => CX

3

Modernize Business Applications => ERP

Modernization

4

Big Data & Analytics => Data-Driven

Business Models

5

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Federated SaaS Digital Apps and Services

Cloud Platforms

Core Modernization

Extreme Automation

Data and Analytics

Cloud Platforms

Modernize Business Applications => ERP

Modernization

Improve omnichannel

orchestration of customer

engagement => CX

Disruptive Innovation =>

Cloud Platforms

Productivity => Extreme

Automation

Big Data & Analytics => Data-Driven

Business Models

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Delivering on the Digital Tug of Value

Customer Experience Leader

CMO, Head of CX, Head of Digital Experience, Head

Sales, Head Customer Service

Finance Leader CFO, COO

Security/Risk LeaderCISO, CRO, DPO

Technology Leader CIO, CDO , CTO, Head of Innovation

Human Capital LeaderCHRO, Head of Talent ,

People & Culture

Operations LeaderCOO, Head of Supply Chain,

Chief Product Officer

Continuous Planning and ForecastingAdaptive Workforce PlanningReal-time Employee EngagementEcosystem Data Monetization

Linking Use Cases to Key Driving Personas• Start with the use case, not

the technology

• Develop new joint metrics with customers to deliver quicker time to value

• Think C-Suite orchestration, not LoBEngagement – Accelerate the Digital Tug of Value

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