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普华永道

White paper on cloud-based modern office software solutions in ChinaCo-published by PwC | Microsoft China

White paper on cloud-based modern office software solutions in China | 1

About Microsoft China

• Microsoft (China) Co., Ltd. (hereinafter “Microsoft China”) is the cornerstone of Microsoft, a Fortune Global 500 multi-national technology company, in China. Microsoft China is dedicated to providing technologies, products, platforms and solutions about cloud computing, artificial intelligence, big data and internet of things to companies from different industries by working in collaboration with partners around the globe.

• Microsoft China is working on four digital transformation application scenarios which comprise modern working mode, integrated business application, application and basic structure, and data and artificial intelligence. As the wave of digital transformation sweeps across the globe, Microsoft China permeates into company productivity comprehensively and helps companies seize the opportunity in the future digital economy.

About PwC

• PwC Mainland China, Hong Kong SAR, Macau SAR and Taiwan work together on a collaborative basis, subject to local applicable laws. Collectively, we have over 720 partners and over 20,000 people in total. At PwC, our purpose is to build trust in society and solve important problems. It is this focus which informs the services we provide and the decisions we make.

• With an information security team of more than 1,600 professionals in IT risk and information security globally, we can help our clients understand the ever changing security risk challenges, adapt and respond to the intrinsic risks of business ecosystem, identify and protect the most valuable assets to support operating strategies.

• The information in this report is derived from the data collected in the survey, as well as the data publicly available. There is no guarantee for the accuracy, completeness and reliability of such information, which may result in views inconsistent with this report at different times.

• This report is for general information purposes only and does not constitute specific matters and advices. Neither PricewaterhouseCoopers Business Consulting (Shanghai) Co., Ltd. (hereinafter “PwC”) nor Microsoft (China) Co., Ltd. (hereinafter “Microsoft China”) shall take prudent responsibility to this report, nor make any express or implied guarantee to the content of this report. The readers shall not rely on this report in making investment or other business decisions. For specific opinions, please seek advice from professional consultants.

• The copyright of this report is jointly owned by PwC and Microsoft China. All the text, data, figures and tables in this report are legally protected by the Copyright Law of the People’s Republic of China and other relevant laws and regulations. No organisation or individual may use the information contained in this report (in whole or in part) for any commercial purpose without the written permission of PwC and Microsoft China. For any quotation from this report by any organisation or individual for non-commercial, non-profitable and non-advertising purposes, please indicate the source as the “White paper on cloud-based modern office software solutions in China” jointly published by PricewaterhouseCoopers Business Consulting (Shanghai) Co., Ltd. and Microsoft (China) Co., Ltd.”

Statement


普华永道

Research and insight

Definition of cloud-based modern office software solutions

Cloud-based modern office software solutions (hereinafter “solutions" or “office software”) refer to cloud-based office solutions such as document editing, document storage, collaboration, communication and mobile office.

“The main content and data in this report are derived from the “China cloud-based modern office software solutions use case questionnaire”. The questionnaire is jointly initiated by PwC and Microsoft China with 782 samples returned, mainly covering manufacturing, IT, finance, government and public services, and professional services (e.g. consulting/tax/law) etc.

Main insights• Security comes first: over 90% of corporate

executives believe that security will become the core appeal of office software.

• Since a single collaboration tool can only meet part of users' demand, companies need a set of integrated collaboration office solutions.

• Corporate users expect more sophisticated futuristic technology - AI technology has great potential.

• Modern office solutions enable organisations to enter the Chinese market and go abroad with much less effort.

• Demand for modern office from frontline employees should not be neglected.

• Mobile office has become a must-have for modern office workers.


Cloud-based Modern Office Software Solutions | 4

Contents

1 Foreword: Diversified office demands of future organisations 05

2 Introduction to market survey methodology 07

3 Survey result analysis: A probe into market demand for cloud-based modern office software solutions

11

4 Future trend of cloud-based modern office software solutions 31

5 Outlook 40


01

of future organisations

Diversified office demands

Foreword:


Foreword:Diversified office demands of future organisations

”

“With the advent of the "digital era", new ways of working are emerging. More and more work needs collaboration. Conventional digital productivity tools are losing ground in this regard. Not only are these tools costly, but they also can’t guarantee information security.

Moreover, the Millennials are entering into the workforce, whose needs are getting more and more diverse. They prefer work mobility, which means working across regions, time zones or devices. Companies are looking for a new solution that meets employees' increasing demands for communication and collaboration on the one hand, and is safe and easy to use on the other hand.

Meanwhile, economic globalisation has become an irreversible trend. China is constantly pushing forward its “Belt and Road Initiative” and encouraging companies “going abroad”. Chinese companies bring successful Chinese business models overseas, thereby accelerating globalisation by virtue of their increasing strength. However

companies have to tackle issues regarding cross-regional collaboration and communication, compliance risks and improvement of efficiency utilising local resources in the process of going abroad.

Therefore, corporate users’ demands for cloud-based modern office software solutions are getting more and more diverse.

This report will analyse corporate users’ demands for cloud-based modern office software solutions in a modern office scenario where software and application are used. Starting from results from our market survey, we’ll give an in-depth analysis of corporate users' habits and needs, while identifying opportunities and challenges in the industry.


02market survey methodology

Introduction to


普华永道

Part of the content and data of this report is derived from “China cloud-based modern office software solutions use case questionnaire. The purpose of which is to understand usage of cloud-based modern office software solutions in China market and to analyse the latest developments and tendencies in the modern cloud office software industry.

The Questionnaire is jointly initiated by PwC and Microsoft China in the fourth quarter of 2019 with 782 samples returned. After filtering out repetitive, incorrect and invalid options, 763 samples are considered valid, accounting for 97.57% of the total.

We adopted four methods, i.e. questionnaire, telephone interviews, data cross analysis and text analysis, in preparation for this white paper. Employees from 340 companies across more than 20 industries responded to the questionnaire. Executives and employees from over 30companies gave telephone interviews.

Based on the valid questionnaire feedback, we sorted out general information of the respondents. Details are as follows:

Introduction to market survey methodology


Geographical distribution

Scale of company

Occupational distribution

Industrial distribution

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17%

6%

8%

14%

20%

35%

Others

Guangdong

Fujian

Zhejiang

Beijing

Shanghai

Respondents by region

The respondents mainly come from Shanghai, Beijing, Zhejiang, Fujian, Guangdong, etc.

Geographical distribution

9

Industrial distribution

The respondents mainly come from manufacturing industry, IT industry, financial industry, government and public services, and professional services (e.g. consulting/tax/law) etc.33%

7%

7%

17%

17%

18%

Others

Professional services

Government and publicservices

Finance

IT

Manufacturing

Respondents by industry

Distribution of respondents


普华永道

Scale of company

The respondents were evenly distributed among businesses of different sizes, ranging from micro companies (below 50 employees) to large-scale companies (above 5000 employees).

020406080

100120140160180

10

Occupational distribution

46.13%of the respondents are office staff

31.06%of the respondents are managerial staff

11.01%of the respondents are senior management

Distribution of respondents

0%5%

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


office software solutions

cloud-based modern

A probe into

Survey result analysis:

03


market demand for

普华永道

With the development of cutting-edge technologies including big data, artificial intelligence and cloud computing, cybersecurity and data security is attracting more and more attention in the corporate world. Data has become valuable asset of companies. As the value of data surges at an unprecedented speed, it also poses increasingly complicated threats. Serving as the basic application for digital transformation, office software carries more and more company data with it. Therefore, enhancing security of office software is essential. According to the survey, we found that:

Security comes first: over 90% of corporate executives consider security to be the core appeal of office software

Data and information leakage prevention

Sensitive information transmission and storage protection

Identity authentication and access management

Threat prevention

Research and insight 1


• 90.47%of corporate executives consider security to be the core appeal of office software

• 75.62% of the respondents believe that the office software they’re using currently fails to meet the following demands for security

Key figures about data leakage in 2019

· Global average cost of a data breach: USD 3.92 million

· Average scale of a data breach: 25,575 records

· Cost per leaked record: USD 150

· Time spent detecting and containing a breach: 279 days

Data and information leakage prevention89.12% of the respondents say that a leakage prevention mechanism is required to protect critical data and information. Absence of security protection measures for office software may cause huge damages to companies.

IBM Security issued its “2019 Cost of a Data Breach Report”[1], which investigated data breach events of 507 companies across 17 industries in 16 countries and regions between July 2018 and April 2019. The results show:

Sensitive information transmission and storage protection90.69% of the respondents think that protecting transmission and storage of sensitive data is necessary to lower the success rate of data theft from external hackers.

A well-known US credit agency, Equifax, was attacked by hackers from mid-May to July 2017. Approximately 143 million users’ data was leaked, including social security numbers, dates of birth, addresses and credit card information, etc. In the end, it agreed to pay USD 700 million in settlements with the Consumer Financial Protection Bureau (CFPB), FTC, the governments of 48 states, District of Columbia and Puerto Rico.


14

Identity authentication and access management

81.91% of the respondents think that office software should use identity authentication and access management in order to prevent internal staff stealing and leaking company data.

In 2017, United States Pentagon accidentally leaked 1.8 billion citizens' information due to Amazon S3 configuration error. According to foreign media reports, the classification database of the US Department of Defense, which contains personal information of 1.8 billion users collected from global social media platform by US authorities, were leaked. The leaked data is a database built on Amazon S3 cloud storage. Three S3 servers were set as “public available for download” due to configuration error. One of the server database stores approximately 1.8 billion posts from social media and forums[3].

Threat prevention

89.78% of the respondents think that threat prevention management for office software is necessary in case deficiency in internal control or “resistance” causes data leakage.

In March 2019, government departments in China were struck by a foreign ransomware email attack and released “Early Warning Notification on Prevention of GANDCRAB Ransomware Attack”. According to the notification, victims will find the data stored on their hard disk encrypted and would be prompted to download the Tor browser. After which, they would be asked to enter the attacker's digital currency payment window and pay a ransom to unlock their computer.


普华永道

Since a single collaboration tool can only meet part of users' demand, companies need a set of integrated collaboration office solutions.


“


普华永道

In the fast developing business environment, how to build a highly efficient workforce to improve productivity has become a major concern among enterprises. In this survey, we found that 88.60% of corporate employees need to work with teams almost everyday to complete their tasks. Traditional working style such as telephone, email and offline office application can no longer satisfy the fast-developing business demands of modern companies.

Driver 1: economic globalisation

As economic globalisation accelerates, organisations face ever-changing internal and external environments. Internally, team members may work in different regions even time zones, at different shifts and time, and even in different languages. Externally, companies are facing increasing demand in communicating and sharing information with

customers, partners and suppliers globally. Companies have to consider how to overcome obstacles such as language, distance and time difference so that team members are able to work collaborate smoothly.

Driver 2: millennials

According to a research[5], 75% of the workforce in 2025 will be composed of people born in the 1990s and the 2000s. A workforce consisting of “five generations” in terms of age may appear for the first time in human history. Since every generation has its own working style, team members are getting increasingly heterogeneous. The difference between the millennials and their seniors lies in the fact that being digital natives, they have a higher demand for collaboration tools, of which application scenarios are broader.

Collaborative work has become a mainstream modern work trend

16White paper on cloud-based modern office software solutions in China | 16

普华永道

Modern employees work in a more flexible and independent way. They prefer cloud service to email communication in completing daily tasks. The survey shows that employees prefer instant messaging, online document storage, online conferencing and document sharing when collaborating in real-time. Meanwhile, quite a lot employees use file access management, co-editing documents, task management and other functions frequently for daily collaboration. In today’s modern workspace, employees expect a shared teamwork centre where they can work together and achieve better performance. They value collaboration solutions with the following functions:

Instant messaging | streamlined conferencing

In modern working environment, employees may come from different regions or time zones. Therefore, they need audio/video conferencing via the internet rather than traditional conferencing. With the help of collaboration solutions, employees will be able to share their screens with team, brainstorming through virtual white boards and sending instant messages to other conference members, all of which will accelerate decision making and working progress.

Co-editing | document sharing

One of the key features of collaboration solutions is real-time co-editing, which enables you and your team to edit documents and add content simultaneously. No matter which device you’re using or where you are, every changes in the document will be synchronised, automatically saved to cloud and accessible to the team.

“


“

普华永道

Companies need a set of integrated collaboration office solutions

Therefore, companies need a set of integrated collaboration solutions more than ever, which not only meets employees’ demands for flexibility, but also improves productivity while bringing extra revenue to companies. As a saying goes, such a solution “kills two birds with one stone”.

19.2%

-32.7%

(Operating income)

(Operating profit)

Successfully equipped

Not equipped


Of those who need collaboration solutions, 67.37% said that the collaboration tool they’re using can’t meet their demands. For instance, team members can’t co-edit the documents online simultaneously or are not able to share their screen quickly and easily during online conferencing. More than 90%of them don’t really know modern collaboration office solutions.

In summery, we found that most solutions can only meet part of employees' demands in a modern office environment where a large amount of collaboration is needed. They urgently need a set of secure, reliable, scalable and cost-effective solutions. It should meet different employees’ preferred ways of working wherever they are.

In addition, according to research[6]

integrated solutions may influence companies’ profits directly. Organisations that are equipped with unified communication system gain higher returns compared with those that aren't.

(Data source: are employees ready to welcome future workspace? [6] ）

普华永道

Corporate users expect more sophisticated futuristic technology - AI technology has great potential


In this report, AI refers to a set of versatile

technologies that are able to perceive, learn, reason,

assist in decision-making and solve problems

proactively. AI technologies learn constantly from user

interactions and organisation data in order to provide

better insights. These technologies can be used for

explaining meanings of text, audio and image data,

identifying patterns, concluding from incomplete data

set and thus, assisting in decision making.


普华永道

Corporate users expect smarter AI technology

Forrester Consulting conducted a research showing that AI has the following two major features that help companies make decisions:

A PwC survey shows that, by 2030, corporate usage of AI will increase global GDP by 14%, bringing USD 15.7 trillion (approximately RMB 106 trillion*) worth of returns[7]

to the global economy.

106 trillion

*Translated using the annual averageRMB exchange rate in the year whenthe quoted report is released.


• AI helps knowledge workers make better business decisions through discoveries based on graphics. Normally, it takes a lot of time for knowledge workers to perform information processing such as searching, analysing and extracting before creating contents that influence important decisions. A survey indicates that 59% of knowledge workers have difficulties in finding the information sources they need. 63% of them don’t believe they can make the best decisions based on current insights provided by their companies.

• AI can be used for analysing data, providing relevant information, and helping knowledge workers find the information they need so that they can make decisions faster, find relevant experts with less effort and make decisions with more confidence. Today, the amount of data of customers, products and operations held by organisations has reached to the highest level. However, the electronic data being analysed or used for performance improvement is less than 0.5%.

普华永道

92.14%It is a challenge to assist employees in successfully completing tasks with AI tools and solve problems caused by modern working model. AI tools in office software simply convey common functions, among which the top 3 functions include: format and design recommendations for presentation documents (39.45%), automatic spelling check (38.66%) and conversion from pictures/video/audio to texts (38.40%). Although the conversion of data into insight via AI is not common, up to 92.14% of respondents look forward to more sophisticated AI functions in office software, such as blurred background in online conferencing, business intelligence-based data analytics and real-time translation.

78.11%AI is changing the way of working for individuals and enterprises. 78.11% of respondents say they have used the AI function in office software. AI enables them to better understand the business activities around them, be more dedicated to production assignments and enhance creativity with the help of design and writing auxiliary technologies.

We are now in a complicated modern office environment. We believe that AI technology will progress much further in the future, far beyond the existing application scenarios. AI has great potential of helping enterprises make wise decisions, and more and more AI technology will be applied to office software to help enterprises and users achieve higher productivity and lower cost.

White paper on cloud-based modern office software solutions in China| 21

Modern office solutions enable organisations enter the Chinese market and go abroad with much less effort.

Bonds between countries are tighter than ever as economic globalisation presses forward. On the one hand, according to PwC's 2019 China Business Report[9], despite the impact of the trade tensions between China and the US, 47.1% of overseas enterprises still plan to further increase their investment in China in 2019, and it's still in the mainstream to enter the Chinese market. On the other hand, global competition is becoming increasingly fierce. More and more Chinese companies are going abroad to actively expand their overseas market and explore more business opportunities. In this survey, 41.42% of respondents indicate that their companies are doing businesses abroad or considering going abroad.


Against this backdrop of globalisation, the flexibility and environmental adaptability of cloud-based modern office software solutions are particularly important to enterprises. According to our survey and analysis, when entering the Chinese market or going abroad, what corporate users want from office software is the following:

Performance and experience

Compliance security

Global support

Agile deployment


普华永道

Superior cloud-based modern office software solutions should be able to provide consistent experience for employees and customers and achieve seamless communication across regions, organisations and time zones.

36.70% of corporate users said that their office solutions servers are deployed overseas, so there could be a notable network delay, particularly in daily operations, including mail sending and receiving, audio/video conferencing, and accessing/uploading files.

The location where the servers are deployed directly affects users' access speed. In a digital era, users' tolerance for network delay is getting increasingly lower. Therefore, advantages of solutions that can be deployed across borders are considerable.

Superior performance and experience to keep enterprises sailing downwind

23White paper on cloud-based modern office software solutions in China | 23

Continuous compliance assurance to safeguard the globalisation of enterprisesCloud-based modern office software solutions should serve office users at home and abroad, including upstream and downstream users, and enterprises must follow the compliance requirements of various industries and regions when they start their journey of globalisation. As office solutions may have application scenarios such as cross-border data transmissions, quality office solutions can effectively lower compliance costs for companies entering China and going abroad.

Laws and regulations around the world are becoming increasingly stringent. The following table lists security and privacy compliance requirements in some countries:

Country/region

Law or regulation Purpose Punishment

ChinaCyber Security Law of the People's Republic of China

Guarantee cyber security, safeguard cyberspace sovereignty and national security, social and public interests, and protect the legitimate rights and interests of citizens, legal persons and other organisations

Fine, suspension of related businesses, suspension of business for rectification, close-down of websites, cancellation of related business permissions, or cancellation of business licenses

EUGeneral Data Protection Regulation (GDPR)

Set rules for the protection of natural persons during personal data processing and the free flow of personal data

Fines

The US Computer Fraud and Abuse Act

Clarify the definition of fraud and abuse in federal computer crime, remove legal ambiguity, and eliminate obstacles to computer crime prosecution

Fine, imprisonment

Japan Personal Data Protection Act

Set rules regarding the proper handling of personal information, its basic concepts, basic policies formulated by the government, and other basic matters concerning personal information protection measures, clarify the responsibilities of national and local public organisations ,and at the same time, set rules pertaining to obligations that the personal information processing operators should fulfil to ensure the effective use of personal information

Fine, imprisonment

Singapore Personal Data Protection Act

Regulate organisations' collection, use and disclosure of personal data, and establish a "No Call Registration" book, as well as set regulations on the management of the registration and related matters of the book

Fine and corresponding punishments

Thailand Cybersecurity Act

Restrict individuals' rights and freedom to ensure effective cybersecurity and to secure precautions and risk management against cyberthreats that affect national security and local peace.

Salary reduction, disciplinary punishments

*For more information on compliance requirements in various countries, please contact PwC Risk Assurance Service Department: https://www.pwccn.com/zh/services/risk-assurance/risk-assurance-contacts.html


https://www.pwccn.com/zh/services/risk-assurance/risk-assurance-contacts.html

25

57.40% of managements and employees of companies are not sure, or do not believe, that the office applications they use have met the information security compliance requirements.

Regulatory requirements for internet security at home and abroad have become increasingly strict. Guidelines on information protection and data security have been issued one after another to supervise the digital environment. Companies should understand the requirements of these regulations and consider whether product features meet local regulatory requirements when purchasing office solutions for daily use.

36.04%

21.36%

42.60%

Compliance of office applications

Non-compliance Not sureCompliance


普华永道

Powerful global support to address users' problems

For companies with cross-border business, time and language difference are often the main factors that prevent office solution operators from responding to users' questions and feedback in time. 19.40% of respondents say they once encountered technical difficulties and could not solve them in time due to time difference. While 22.67% stated that they had problems in language.

Operators of cloud-based modern office software solutions should have a professional response team to provide professional and timely assistance to enterprise users in business processes and technical support.

Quick cross-border deployment to demonstrate enterprises' speed to act

In the process of entering China and going abroad, enterprises can seize valuable market opportunities through rapid deployment of office solutions, information exchange and teamwork. Some respondents say, "Enterprises want fast deployment of office solutions across borders without additional time costs." Office solutions that allow quick cross-border deployment can provide one-stop service from the configuration and launch to a stable operation, helping enterprises to quickly complete their global arrangement.


普华永道

The demand for modern office from frontline employees should not be neglected


9.17% of respondents are frontline staff who play a crucial role in enterprises.

• They define customer experience - as the first group to contact customers and partners.

• They are core of the organisation - as the first group to present products and services.

• They are spokespersons of the brand - as the first group to represent company's brand.

If frontline staff are equipped with the most modern office solutions, when facing customers, they will be able to directly improve service quality, better meet customers' needs and be more likely to drive business development. Forbes' research shows [10] that companies that frontline staff equipped with digital tools are three times likelier to become high-growth companies. 83% of such companies have a higher level of user satisfaction; 82% have better employee satisfaction; 64% report less mistakes made by employees.

Definition of frontline staff: service or task employees that work on shifts. For instance, sales assistants in retail stores or workers in production workshops.

“


With the online task scheduling system, the retail staff can know their work progress at any time, and the person in charge of the store can also adjust the task in time according to the customer flow (that is, the workload of the staff). 37.14% of the surveyed frontline staff say they look forward to using online task assignments and work progress management office solutions to ensure an even assignment of tasks and to get clearer understanding of their tasks and responsibilities.

When a customer is not satisfied with a service, hotel staff will receive the customer's online feedback or through the system's automatic notice, to provide the customer with the most needed service in a timely manner. At present, the proportion of frontline staff using office applications with instant messaging function at work is 54.29%, compared with 73.45% of non-frontline employees.Among the remaining frontline staff, 31.43% say they expect instant messaging function at work, which also shows that great demand for this function.

The needs of frontline staff for modern office are often neglected. According to our survey, the probability of equipment of cloud-based office applications for frontline staff is nearly 10% lower than that of non-frontline staff, which means that more frontline employees are using conventional office software deployed locally. It is believed that frontline staff always work in the front line, completing routine and repetitive tasks. Their work is simple and straightforward, so employers don't think they need modern office software to communicate, improve efficiency and reduce errors. However, the following four examples illustrate that modern office software is actually necessary for them.

1.

2.


Through our survey of frontline staff, we found that 60.00% are looking forward to collaborative office functions. For onsite sales teams, if an office solution with collaborative function can be used, sales plans can be adjusted according to the latest information, resulting in considerable efficiency improvements.

With the development of technology and acceleration of the automation process, enterprises have higher skill requirements - employees must be able to learn to operate automated equipment. Therefore, effective training can ensure enterprises remain competitive in the future. At the same time, effective training (such as remote video training across regions) can also attract more talents. However, currently 27.14% of frontline staff do not know about the online conferencing function and do not realise the needs in this regard, thereby they are not receiving effective and up-to-date training. That is exactly what enterprises should take into account and invest in for their frontline staff.

3.

4.


普华永道

In modern enterprises, as employees and team members are located in different time zones and locations, many companies begin to implement flexible working policies. Based on the survey, we found that:

• 81.13%of employees need to use office software on mobile devices at work.

• 100%of senior management need mobile devices at work.

• 24.51%of respondents report that more than 30% of their daily tasks need to be completed out of office (e.g. home, coffee shops, airports, trains, hotels, etc.) using mobile devices.

Mobile office has become a must-have for modern office workers



The popularity of mobile technology is fundamentally changing the way people think, work, act and interact. It is estimated that 10 billion mobile devices will be put into use by 2020. Companies have widely embraced the Bring Your Own Device (BYOD) strategy to allow or encourage employees to use their personal mobile devices, such as mobile phones, tablets and laptops, to access corporate data and systems.

With mobile office, you can:

• promote frequent interaction and feedback among colleagues

• help simplify and automate tasks such as scheduling, manual assignments and general announcements, and

• build up a more dedicated, flexible and efficient workforce.


04

cloud-based

Future trend of

modern office

software solutions

Cloud-based modern office software solutions can provide the core business applications needed by each user, cultivate new ways of working, help customers disrupt the industry landscape with technology, maintain leading position in security and compliance, meet employees' ever-changing expectations and their demand for mobile office. Their modern working model can integrate service tools supported by emerging technologies in office software and equipment that can provide users with the best experience. It also increasesproductivity, improves business processes and agility, increases customer's participation and laying a solid foundation for product innovation.


An outstanding team is key to success for enterprises. In the future, enterprises can migrate to the integrated cloud office platform according to business needs, ensuring the efficiency and quality of work. Furthermore, employees' choice of way of working will be respected and their diverse needs can be satisfied.

Whether a night-owl employee who is most efficient beyond working hours, or a staff stuck at airports or high-speed railway stations, or an employee who is always on a trip, he or she can work flexibly based on his or her needs. Through intelligent chatting tools on the cloud office platform, team members are connected with seamlessly exchanged information and improved remote team collaboration workflow.

Through the cloud-based intelligent collaboration platform, employees can access documents and

data for work anytime, anywhere through mobile terminals such as mobile phones and tablets. When an employee leaves the company or a project is completed, the IT team can use the cloud office platform to operate and maintain the application, remotely wipe the device with one click, and protect the company's data assets properly.

Through real-time linked office solutions, enterprises will gradually get away from fixed office and unified office equipment. They can hire employees from all over the world, who can choose to complete work at any time, any placeand using any device. Diversified employees and suitable working methods can inject fresher ideas into the company and promote dynamic development.

Trend 1: Tailoring personalised office model


Artificial intelligence (AI)

Big Data

Internet of Things (IoT)

With the development of science and technology, different emerging technologies continue to mature. Office software providers should continue to innovate and integrate emerging technologies, such as the Internet of Things, big data, artificial intelligence and fifth-generation mobile communication technologies, to upgrade the service capabilities of office software and hardware, bring better internal and external resources, and help enterprises make smarter and more accurate decisions on a faster basis.

Fifth-generation mobile communication technology (5G)


Trend 2: Emerging technology to empower the enhancement of cloud-based modern office software solutions

Internet of Things (IoT)

Enterprises can continuously evolve and upgrade through IoT technology to holistically create an interconnected and intelligent office ecosystem, i.e. the interconnection from office furniture to office equipment. For example, fluorescent lamps in meeting rooms will be automatically turned off when employees leave; the air-conditioning system adjusts the temperature and humidity to adapt to the weather outside; when an employee is about to arrive at the company, the coffee machine automatically brews a cup of coffee for him or her.

IoT smart office space can effectively save costs for enterprises, save energy and other precious resources and create a "green" office. The automated lighting and temperature and humidity control system can effectively reduce the energy consumption of enterprises and the negative impact of energy-consumption on the environment. In addition, the interconnection of equipment can monitor the operation interruption of machines and track the life of the equipment in real time, automatically notify operations and personnel for repairs and maintenance, ensure the stability and sustainability of the corporate environment and efficiently drive the development of the company.


普华永道

It is the trend in the digital era for enterprises to connect internal data and integrate data from external partners and customers. Together with historical data and growing business data stored, enterprises can use big data technology to analyse such massive data. Big data technology can not only produce low-latency real-time data analysis, but also give in-depth exploration and analysis of historical data. More accurate and faster big data analysis provides enterprises with data guarantees such as development prediction models and behaviour analysis models, which reduces the cost of big data architecture operation and maintenance and control to a certain extent.


Big Data

In addition to daily work, employees also need to deal with many trivial tasks, such as reimbursement, leave applications, working hours declaration, and booking flights and hotels for business trips. AI technology can provide an intelligent assistant to each employee, solve menial tasks through a mature integrated cloud office platform and synchronise with the company in real-time to help employees focus on core tasks and improve efficiency at work.

In addition, AI technology can reshape monotonous low-value tasks such as accounting reconciliation and screening of recruitment. The robotic process automation office technology frees employees from repetitive works, save time and labour costs, and effectively reduce the rate of work errors, allowing employees to focus on more creative work.


White paper on cloud-based modern office software solutions in China| 37


普华永道

Fifth-generation mobile communication technology (5G)

5G will usher in a brand new era for work

5G will improve the efficiency of mobile office and remote collaboration through "high speed" and "Internet of Everything".

The "high speed" of 5G is beyond doubt. According to the current research in various countries, compared with the current 4G technology, the peak rate of 5G technology will increase by dozens of times - from 100Mb/s to tens of Gb/s. If this technology is placed in a mobile office application scenario, the upload and download speed of file transfer will be greatly improved. Employees neither need to wait for a long time while batches of files and pictures are transferred because of network delays, nor to worry about the failure of video conference communication because of poor network environment.

"Internet of Everything“ – 5G will realize the vehicle office scenario. Even employees who are stuck in traffic can process work messages in a timely manner instead of working from a mobile phone to avoid distractions. In the future, video or audio conferences can be held through screens equipped in the automobile, and pressing a button on the steering wheel can send voice messages. The diversification of office scenarios, whether for management or employees, will improve office efficiency and convenience.


At present, existing cloud-based modern office software solutions are mainly aimed at internal data and personnel circulation. Under the general trend of economic globalisation, future cloud office solutions will inevitably move towards global deployment, connecting customer channels and create more comprehensive cloud office solutions.

At present, an increasing number of Chinese companies are going abroad, while more and more overseas companies are entering China. The link between China and the rest of the world is getting closer. The frequency of business trips has increased dramatically. Companies need global deployment to ensure the efficiency of synchronising company information and real-time conferencing. Cloud office service providers

should follow the latest trend and promote the globalisation of cloud office solutions on the basis of ensuring the quality of global channels and the reasonableness of operating costs.

In addition, customers are becoming more and more diversified, leading to a sharp rise in the cost of communication between enterprises and their customers. Employees often travel between customers and their office for meetings and data can only be transmitted via email or social media. The use of cloud office solutions in the interaction between enterprises and their customers can effectively improve information sharing capabilities and rapidly promote industrial development through efficient information transmission.

Trend 3: Building cross-border integrated cloud office solutions


05Outlook

AfterwordThe Industrial Revolution broke out in Europe in the middle and late 18th century. In the following two centuries, industrial technology quickly took over the world. With the explosion of large-scale production technology, new enterprises began to explore various skills and technologies for collaborative work. From telegrams to telephones, faxes and e-mails, the development of electromagnetic technology carries information from one end to the other in faster and more convenient ways, continuously improving efficiency.

At the end of the last century, digital technology kicked off the Fourth Industrial Revolution. People are now interconnected to an unprecedented extent through mobile devices. Powerful processing capacity may become stronger and huge storage space may become larger still. In light of emerging technologies such as AI, cloud, blockchain, and big data, everything seems to have infinite potential.

There is no doubt that modern business and office work as we know it are being enormously affected.

In a digital world, consumer behaviour patterns have changed, requiring companies to analyse and meet demands in a more agile way. Therefore, information needs to be communicated between organisations and members in a more transparent and efficient manner. Agility and transparency are also factors that encourage innovation. In an ever-changing modern society, only innovation can generate sustainable profits to the enterprises.

Change would not happen overnight and superficial change will never solve essential problems. To truly adapt to digital transformation, we must start with the way employees work. Good office solutions should have outstanding performance in collaboration and security, consider the needs of frontline employees and employ AI technology to assist in employees’ work. In the context of economic globalisation, office solutions should also follow the footprints of enterprise users and explore new markets while ensuring security and compliance.

Through this survey and analysis of the needs of corporate users for office work, we find a Chinese market with great potential for cloud-based modern office software solutions. We believe that the functional development trend of future office solutions will focus on team collaboration, mobility, security and AI. At the same time, enterprises need to consider application scenarios such as cross-border data transmission when entering the Chinese market and going abroad.

Today, in an ever-changing and complex world, only by understanding the nature of change can we continue to grow. As Su Shi, a famous poetof the Song Dynasty, wrote, "If you look at its changing aspect, the universe passes in the twinkling of an eye; but if you look at its changeless aspect, all creatures including ourselves are imperishable."


普华永道

Reference

[1] 2019 Data Breach Investigations Report, 2019, IBM & Ponemon Institute

[2] Is Equifax Going to Be Punished for Losing Our Data?, 2017, Fortune

[3] Pentagon Exposed Some of Its Data on Amazon Server, 2017, CNN Business

[4] Ransomware Attack: Government Asked to Pay Digital Currency, 2019, Sina Finance

[5] Gen Y Women in the Workplace Study, 2011, The Business Professional Women (BPW) Foundation

[6] Are Employees Ready to Welcome Future Workspace? , 2016, Information Age

[7] Sizing the Prize What’s the Real Value of AI for Your Business and How Can You Capitalize?, 2017, PwC

[8] Expanding Value of AI to Knowledge Workers, 2019, Forrester Consulting

[9] 2019 China Business Report, 2019, The American Chamber of Commerce in Shanghai and PwC

[10] Empowering the Firstline Workforce: Technology, Autonomy and Information Sharing Deliver Growth to Forward-Thinking Organizations, 2017, Forbes insights and Microsoft


普华永道

Contributors

PwC

Tony WanRisk Assurance

[email protected]

+86 21 2323 8149

Michael XiaRisk AssuranceSenior Manager

Noah YC HuoRisk Assurance

Manager

Yuko YuanRisk Assurance

Senior Associate

Jennifer YJ ZhengRisk Assurance

Senior Associate

Apple HeRisk Assurance

Senior Associate

Linlan L ChenRisk Assurance

Associate

Joe C GaoRisk Assurance

Associate

Juli J TianRisk Assurance

Associate

Microsoft China

Zheng HongyiGeneral Manager Microsoft 365 BU

Zhao TianchengSenior Product Manager

Microsoft 365 BU


Felix KanRisk Assurance

[email protected]

+852 2289 1970

Kok Tin GanRisk Assurance

[email protected]

+852 2289 1935

Kenneth WongRisk Assurance

[email protected]

+852 2289 2719

pwc.com

© 2020 The copyright of this report is jointly owned by PwC and Microsoft China, and legally protected by law.Where the content or opinions of this report are reproduced, excerpted or otherwise used, the source shall be indicated.

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