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.