Leonidas Georgiou
29/11/2016
Embracing Digital TransformationTo Survive and Thrive
Digital transformation is defined here as using digital competencies to drive disruptive change while using technologies like cloud, business analytics, enterprise mobility and social
Digital transformation is both inevitable and mandatory as
Organizations can’t transform to digital unless people do
Top of mind for business leaders and their digital transformation
Leaders embracedigital-first to fast track transformation
Harness informationto change the way youdo business
Digital transformation =
Cultural shifttechnology problem 1
of the respondents
identified IoT
initiatives — and
related machine-to-
machine and telematics projects — as
new areas of spending for the year ahead 8
RIGHT SKILLS
The most commonly cited
barrier to digitization for
most CIOs 2
shortage
Central to any
digital workplace
initiative:
increasing the
involvement of the
employee community in
technology strategies 3
of CIOs with hiring plans are in
search of people with combined
42%
TECH BUSINESS+backgrounds 4
Most important
decision
CEOs must
make in
2016 is to$invest in data
science
development 5
The CIO’s challenge is
to convince the entire
enterprise that
“SECURE BY DESIGN”
should be treated as a
business priority 6
By 2018,
AI will be
incorporated
into
1/2of all apps developed. By
2020, savings garnered by AI-
enabled efficiencies are
expected to total an estimated
60B for U.S.
enterprises 7
29%
30%By the end of 2016,
of businesses will have begun monetizing
their information assets, which is fueling
an information-driven
economy targeted at $156B 9
1 Forrester Research. The race to digital mastery is on in 2016. Forrester.November 11, 2015.
2 Andy Rowsell-Jones, et al. 2016 CIO Agenda: Global Perspectives onBuilding the Digital Platform. Gartner. February 23, 2016.
3 Matthew W. Cain and Paul Miller. Recipe for Digital Workplace Execution:Transform the Employee Experience. Gartner. March 3, 2016.
7 John Dodge. Who’s in charge of AI in the enterprise? CIO. February 15, 2016. 8 Beth Stackpole. Forecast 2016: 5 fast-track trends to tackle now
(and one to ignore). CIO. December 1, 2015. 9 Mike J. Walker, et al. Top 10 Strategic Technology Trends for 2016:
Information of Everything. Gartner. February 26, 2016.
4 Beth Stackpole. Forecast 2016: 5 fast-track trends to tackle now(and one to ignore). CIO. December 1, 2015.
5 Ken McGee and Mark Raskino. The Most Important Digital Business DecisionSenior Executives Must Make in 2016. Gartner. February 16, 2016.
6 Marcus Shingles et al. Tech Trends 2016: Innovating in the digital era.Deloitte. February 22, 2016.
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
in savings garnered for U.S. enterprises 5
Digitalization drives down costs
Digital transformation and cost savingspriorities
Investments ininnovation pay offin efficiency
Future-ready your workforce throughdigital literacy
30%By 2018,
of organizations will formalize
workforce digital literacy strategies
to improve business outcomes and
employee engagement 9
1 James Manyika. Digital America: A tale of the haves and have-mores. McKinsey.January 12, 2016.
2 £10bn saved in 2012/13: Efficiency and reform 2012/13 summary report,UK Cabinet Office, 2013.
3 Susan Lund et al. Managing talent in a digital age. McKinsey. February 29, 2016.
7 Bill Snyder. The 6 Hottest New Jobs in IT. CIO. March 7, 2016. 8 James Manyika. Digital America: A tale of the haves and have-mores.
McKinsey. January 12, 2016. 9 Gavin Tay and Achint Aggarwal. Examining the Promise and Progress of
Digital Workplace Programs Globally. Gartner. January 27, 2016.
4 Marcus Shingles et al. Tech Trends 2016: Innovating in the digital era.Deloitte. February 22, 2016.
5 John Dodge. Who’s in charge of AI in the enterprise? CIO. February 15, 2016. 6 Jim Rapoza. Rounding Up Virtual Machine Sprawl With Private Cloud.
Aberdeen. January 4, 2016.
Digital labor platforms can:
increaseoutput by
9%
reduceemployee-related costs by
7% 3
57%
OPERATIONS
Global IT budgets:
16%INNOVATION 4
reduction in IT expenses for organizations after deploying a private cloud 6
40%
AIBy 2018:
½By 2020:
60B in savings garnered
for U.S. enterprises 5
of all apps developed
will incorporate
artificial intelligence
TECHNOLOGIESare moving faster than the EXPERTISE
needed to exploit them can
be disseminated to
the workforce 7
gov.uk saved
63Min public spending withina year of its launch 2
Digitization of labor, capital, and multifactor productivity
Combinedannual impact:
$1.6T - $2.2 Tby 2025 1
BASELINE PROJECTIONS
+6% - 8%US GDP
encouraging workers
to participate in the
digital economy 8
ACCESSINFRASTRUCTUREDIGITAL LITERACYDIGITAL TOOLS
Your digitally enabled journey
Systems of Intelligence
Transform your
products /
services
Optimize your
operations
Empower your
employees
Engage your
customers /
citizens
for greater connection and
participation
to deliver productivity gains
that improve impact
reinventing new
products, services
and business
models
for a more efficient service
delivery platform
The citizen-centric government of the future
Government
Data integration
New services
Service delivery
options
Citizen
Data-driven
decisions
Communication
& collaboration
Government
interactionSingle identity
Single
interface
Government
outreach
Mobile, portal, and
in-person access
Identity
& access
Personalized
service delivery
“Our mission is to empower
every person and every
organization on the planet
to achieve more.”
Satya Nadella
CEO, Microsoft
Intelligent Cloud
Reinventing Productivity & Business Process
More PersonalComputing
Technology Platform
Security / Operational Excelence
Industryscenarios
Horizontalscenarios
Focusing on customer success
Products Services Partners
Intelligent Cloud
Reinventing Productivity & Business Process
More PersonalComputing
Technology
Platform
Business Expertise
Trust
Engage your
customers
Empower your
employees
Optimize your
business
Transform your
products
Empowering digital transformation
Our Services Approach Spans your Business and IT Strategy
Maximize the Value of IT Investments
Drive Revenue Growth and Competitive Advantage via Innovation
Increase Efficiencies and Mitigate Risk
© 2016 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.