traversing the digital vortex, lux rao, director & leader, digital transformation, cisco systems

© 2017 Global Center for Digital Business Transformation. All rights reserved. 1

Traversing the DIGITAL VORTEX

How Today’s Leaders Can Beat Disruptive Competitors At Their Own Game

Lux RaoDirector & Leader Digital Transformation Office, Cisco lrao2@cisco.com

Security BigData IoT Cloud Mobile

100%

ofbusinessnetworkshavetraffictomalware

sites

84%

believebigdatadelivershighbusinessvalue

65%

ofCEOsconsiderIoTtobestrategic

57%

oforganizationswillusecloudsolutions

81%

ofCEOsbelievemobility

isstrategic

CiscoDigitalNetworkArchitectureReadinessModel;Sources:PWC:18th AnnualGlobalCEOSurveyandIDCInfobrief,2015

Communications Are Being Redefined

Source: World Bank, USDA. Gov, Cisco Analysis

Companies Must Reinvent Their Operating Models

50 BDevices Connected

by 2020

1.7 TIoT Market Spending

in 2020

1 MCurrent Daily

BitcoinTransactions

2 PBData producedby autonomous

vehicle

IOT is Accelerating

Source: “The Motley Fool”

50% of all New Cellular Connections in the first Quarter of 2016 were M2M & Cars

The Dynamics of

DIGITAL

•“Nameanindustry,andoddsareit’sbeingdisruptedbycompetitorsdeployingdigitaltechnology.

• DigitalVortexisaresearch-basedlookatthisphenomenon,aswellasasavvyguidetohowyourcompanycangainthenimblenessrequiredinthisnewenvironment.”

DanielPinkBest-sellingAuthor,Driveand ToSellIsHuman

Digital Disruption Is the #1 CXO Concern

Two-thirds of CEOs (66%) see more threats facing their businesses today than three years ago.

Source: PwC 19th Annual Global CEO Survey

Source: IBM Global C-Suite Survey, 2016

All CxOs identified the risk of industry disruption caused by an unlikely competitor outside their industry as a primary competitive threat.

“ ”“ ”

© 2017 Global Center for Digital Business Transformation. All rights reserved. 8

Quantitative survey of

globally

In-depth discussions with

and senior executives

Analysis of to understand

mechanics of how and why disruption occurs

Workshops and events with

on their challenges and approaches

Digital Disruption Will Reshape Markets and Industries

Market incumbents displaced 40%

Companies actively responding1 in 4

Expected time to disruption*3 YEARS

source: Global Center for Digital Business Transformation 2015 *Disruption = Substantial change in market share among incumbents

3.7average

2.5

4.3

morecompanies

at risk

fewercompanies

at risk

Oil & Gas

CPG & Manufacturing

Hospitality /Travel

Retail

Media & Entertainment

Telecommunications

Financial Services

Education

Healthcare

Technology Products & Services

Utilities

Pharmaceuticals

Combinatorial Disruption

• Lower fare per ride• No tipping• Intelligent demand-based

pricing (e.g., surge)

• No hailing (waiting)• No cash, no transaction time,

automatic billing • Choice of vehicle type• Customized experience (e.g.,

Spotify playlist on car radio)• Real-time status of car arrival• Safety / visibility / location

tracking• Rating system and incentives• Self-driven offerings

• Pervasive in all major cities• Global presence, consistent

process• New employment opportunities

(not just for passengers)• Add-on services (UberEATS)• Cross-platform integration

(Amazon Echo, Google Maps, United Airlines)

• SDK for developer ecosystem• Moving into adjacent industries

(logistics with Volvo, OTTO)

$ Platform ValueExperience ValueCost Value

Create a better Experience…for Customers AND Workers

Simplification Automation Optimization Scale

Simplification

Rs 65 2 Minutes

Uber

One Button

Process Permit

Smart City

One Button

A/c OpeningLoan

Finance

Zero Button

Check-In

Hospitality

Zero Button

Auto Schedule

Automotive

Optimize everything

…cost, speed, precision

© 2017 Global Center for Digital Business Transformation. All rights reserved. 18

HyperawarenessA company’s ability to

detect and monitor changes in its environment

Informed Decision-MakingA company’s ability to make the best decision in a given situation

HyperawarenessA company’s ability to

detect and monitor changes in its environment

Informed Decision-MakingA company’s ability to make the best decision in a given situation

Fast ExecutionA company’s ability to carry out its plans quickly and effectively

Digital Business Agility enables companies to counter and capitalize on digital disruption

Companies Must Build Digital Business Agility

Digital Transformation is the application of information technology

to implement innovative business models, improved customer

experience and/or operational improvements that have the potential

to Disrupt entire industries.

What is Digital Transformation?

Create NewCustomer Experience

Increase LoyaltyIncrease Revenue

Transform Processes and Business Models

Respond Faster to Market Changes

Efficient Operations

Empower Workforce Efficiency and Innovation

Increase ProductivityAttract and Retain Talent

Digital Transformation Now !

Digital Transformation requires a Digital Ready Infrastructure

Simple Intelligent Automated Secure

Millions of ConnectionsDynamic and Distributed

Interconnected ProcessesOpen Ecosystems

Digital Engagements

Contextual and AdaptivePredictive and

Prescriptive

Numerous Tasks due to Scale

Rapidly Changing Business Needs

Demands of Digital Ready Infrastructure?

Blueprint for Digital Business1 Enable New Business Models Outcome Focus

2 Simplify Everything – IT as a Service Simplicity

3 Build Modular IT and Automate Agility

4 Deliver Data to Drive Business Decisions Insights

5 Continuous Delivery Innovation

6 Security Everywhere Security

How can we Compete and Win in the Digital World

ECOSYSTEMS & PARTNERSHIPS

Lux RaoDirector & Leader Digital Transformation Office, Cisco

lrao2@cisco.com