future of business transformation market research summary

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ieto

Corp

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A nordic research

about business

transformation

The Future of Business Transformation Research,

Kairos Future together with Tieto

© Tieto Corporation

Background to research and report

• Technology is the most significant driver of change in most industries

• Business transformation is the most significant opportunity to operational efficiency and innovation

• All industries are becoming digitalized, digital technology is moving to the becoming at core of business

Business transformation at the core of Tieto’s focus

The quest for the report

• How is new technology and technological change interpreted in different industries and functions?

• What are the perceived key drivers and barriers?

• Desk research, expert interviews

• Survey among 500+ executives

• C-level roundtables

• Sweden, Norway and Finland


Business transformation

• Business transformation (BT) is about making fundamental changes in how business is conducted in order to help cope with a shift in market environment. (Wikipedia)

• Consequences are always irreversible, often disruptive and never incremental


Table of contents

1. Business transformation

2. C-level survey findings

3. C-level roundtables

4

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Business

transformation

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Transformation is innovation

Business transformation is

about making fundamental

changes in how business is

conducted in order to help

cope with a shift in market

environment. Wikipedia

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The dilemma

”The problem is not that we do

not have money to invest. The

problem is that we do not know

what we should invest in.” C-level director, Banking,

Roundtable October 2013

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Customers want more

”The demands from the end

users on availability and

simplicity is ahead of what the

company systems can provide.” C-level director, Energy,


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IT must understand business

”The focus of IT must be to

understand and involve

customers in the new

business models.” C-level director, Manufacturing,


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C-level survey 500 respondents in Finland,

Norway, Sweden


Impact of mega trends

0% 20% 40% 60% 80% 100%

Big Data

Cloud computing

Mobility

Social media

Internet of Things/M2M

Small impact Some impact Large impact

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Third wave of automation

33% says automation of

knowledge work will have a

major impact on how their

industry operates. The Future of Business Transformation Research,



Forces driving transformation

0% 20% 40% 60%

Need to increase growth

Innovation (new

products/processes/businessmodels)

Need to improve customer

experiences/satisfaction

Need to increase efficiency/lower

costs

What would you say are the main drivers behind the need for transformation in your organization today?

In 5 years

Today


Most significant barriers/success factors

42% 45%

26%

18%

9%

31%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Cultural Leadership Processes Technological Proactivity Competence

In general, what would you describe as the most important barriers or success factors when it comes to technology enabled business transformation?

CMO +13 IT +18 CEO +13


Technology trends:

Impact

20%

23%

12%

18%

16%

30%

33%

22%

28%

33%

50%

44%

66%

54%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Big Data

Cloud computing

Mobility

Social media


Over the next decades, what impact will the following technologies or technology-related trends have on how businesses in your industry operate? (business models, operations etc)

Small impact Some impact Large impact


Technology impact:

CXO comparisons

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Big Data

Cloud computing

Mobility

Social media


Over the next decades, what impact will the following technologies or technology-related trends have on how businesses in your industry operate? (business models, operations etc)

CIO CMO CEO Nordic Average


Technology trends:

When will it be crucial?

25%

31%

54%

55%

24%

62%

52%

35%

35%

57%

7%

7%

4%

5%

11%

6%

10%

7%

5%

7%

0% 20% 40% 60% 80% 100%

Big Data

Cloud computing

Mobility

Social media


When do you expect the following technologies or technology-related trends to be crucial to how businesses in your industry operate?

Already is 1-5 years 6 - 10 years More than 10 years from now


Barriers and success factors

42%

43%

26%

19%

10%

29%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Cultural

Leadership

Processes

Technological

Proactivity

Competence

In general, what would you describe as the most important barriers or success factors

when it comes to technology enabled business transformation? Select up to two.

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Challenges ahead

63% says it will be impossible

to stay competitive without

being a quick adopter to new

technology The Future of Business Transformation Research,



Company's posture to new technology

0%

10%

20%

30%

40%

50%

Pioneer Early adopter Early majority Late majority Late follower Skeptic

Poly. (IT director/CIO) Poly. (CEO or equivalent) Poly. (Other function/position, namely:)

Source: The Future of Business Transformation Research, Kairos Future together with Tieto


C-level perspectives

0% 20% 40% 60% 80% 100%

(CLAIM) I believe that new technologies and not business needs willdictate the future direction of my company and how it will be managed.

(CLAIM) The industry in which my organization operates will bear littleresemblance in 2020 to how it looks today.

(CLAIM) Most categories of technology will become so commoditizedso that they will no longer be a source for competitive advantage

(CLAIM) In 2020, employees will conduct all their communication andelectronic work using just one device

(CLAIM) In 2020, most employees will interact more with peopleoutside the organization than with colleagues inside the organization

(CLAIM) I worry that my organization will not be able to keep up withtechnology change and will lose its competitive edge.

(CLAIM) In my opinion, the gap between what the organizationdemands in terms of technology enabled transformation and what the…

(CLAIM) Without being a quick adopter of new technology it will beimpossible to stay competitive in the future

(CLAIM) In 2020, project teams will typically include members fromoutside the organization (eg, customers, partners, communities).

To what extent do you agree with the following propositions?

CIO CMO CEO Nordic Average


Extracts from roundtables

of respondents thought that companies in their

industry underestimate the power of

technological changes. 53%

of respondents thought that in 2020,

customers will be the main source of

product and service ideas in their industry.

73%

of respondents thought that over the next 5-10

years, technology will be a much stronger

driver of change than it has been historically. 80%


Extracts from roundtables

Helsinki

Customers want more “The demands from the users on availability and simplicity is ahead of what the company systems can provide.”

IT must understand business

“The focus of IT must be to understand and involve customers in the new business models.”

Oslo

The dilemma

”The problem is not that we do not have money to invest. The problem is that we do not know what we should invest in.”

Need for long-term focus

“The more complex the world becomes, the more important to have a long-term focus.”

Stockholm

Blinded by possibilities

”Sometimes we are so fascinated of what we can do that we forget what we should do.”

Walk the talk

"IT cannot sit and wait for the perfect order, but must take a more active role in the business process.”