global trends in the it industry

Paul Hermelin

Group CEO Capgemini Keynote Presentation at

Handelsblatt Jahrestagung IT-Strategie

24 January 2012

Global Trends in the IT Industry

Global has become a “need to have”

2

New markets New resources

2011 IT professional services market ($B)

11,9

7,9 6,8

5,1 4,1 2,8

9%

22% 16%

8% 5%

4%

CAGR 2011-2015

Brazil China Mexico India Russia Singapore

Labour supply growth by country

Ready-to hire IT graduates (‘000/yr)

India

China

Philippines

400

260

60

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Offshore raises a cultural challenge

3



>35%

15-35%

<15%

Offshore penetration by country

Emerging markets benefit

from a technology leapfrog

4



Driven by a growing

urban population

950M

850M

Mobile phones

300M

Smart meters by 2016

Transforming legacy makes it

much harder

Fast moving technology leads to a

new Digital Transformation

5

Big Data & Analytics SSD units growing 100%+

Cloud computing Amazon Web Services growing

70% to close to $1B

Smart sensors 70m smart meters shipped

in 2011

Mobile & tablets 70m tablets sold in 2011

Social networks 800m Facebook users



Customers are turning digital and driving change

6

Consistent experience

Interaction

Expectations

Driving loyalty

Challenges

Breaking silos



More than ever IT needs to support

business agility in an uncertain environment

7


VIX – the “fear index”

A new normal?


These changes will lead to Transform the Business

8

Source: Capgemini consulting/MIT study



Growth

Customer touch points

Top line growth

Customer understanding

Customer Experience

Agility & Efficiency

Performance management

Worker enablement

Process digitisation

Operational Process

Growth

Digital Globalisation

New Digital Businesses

Digitally-modified businesses

Business Model

Retail Utilities Retail

Banking Life

Sciences Telco

The digital transformation will be vertical-specific

9

Initiatives

Sectors

Multichannel: next generation eCommerce

Click2Mortar: leverage Digital to increase Mortar performance

Intelligent store

Smart Grid Smart Home Digital Multi

channel experience: channel and analytics

Workforce: Mobility and enablement

Digital customer experience: channel and analytics

Digital marketing

Process digitisation

Enabling the patient : physician interface

Digital marketing

Long term conditions management

Digitisation of core process model

Digital customer experience: channel and analytics



Building a truly cross-channel customer experience

10

Business Model

Operational Process

Customer Experience



Internal and external

Pre-sales, sales, post-sales

Multi-channel (voice, mobile, internet, extranet)

Customised and semi-customised solutions

Prosodie, Leader in Front-office Transaction Solutions

Real-time infrastructure management

Web services hosting

Telephony over IP

Multichannel Customer Contact

Voice recognition

Prepayment Online

payment/ gift cards

The right DATA at the right TIME

Solutions Transaction-based IT Real-time customer contact

Business Model

Operational Process

Customer Experience

11



Telephone

PC

TV

Mobile Smart phone

Tablets

Mail

Big Data is accelerating

12

Real-time performance

Anticipation, predictions

Automation

New insights on customers

Data as a new business

Or goldmine ?

To solve this, the movement of players is speeding

HANA

- NoSQL

- Hadoop

Business Model

Operational Process

Customer Experience

- Hadoop



Exploding volume Machine data Human data

Fragmentation Data backup

Analytical skills

Personal data Intellectual property

Nightmare ...

Real-time analytics enable

faster business decisions

13

Business Model

Operational Process

Customer Experience

Faster insights for competitive advantage

Agility to cope with ever changing

business & market

Accelerated and smarter business

HANA – COPA : Cost and Profitability Analysis

&



IT solution: no longer a constraint

Unifies data silos, instant access to data in memory Ability to ask any instant business question Explore and get answers at the speed of thought

Business benefits for Provimi:

Automated financial reports Reports 300x faster on million of records No service disruption for end users

Technology enables changing the rules of business

14

video

Business Model

Operational Process

Customer Experience



Smart meters will help solving the energy dilemma

15

Smart energy Bcase

“Create more power by using less”

Early evaluation: Better consumption reading creates better consumer awareness of energy cost particularly electrical heating

Next generation:

Smart grid for distributed generation

Demand response to reduce demand

Smart Home to offer new services

Vehicle to grid for load balancing

2010: Canada, Sweden

Lessons from first movers

+

Business Model

Operational Process

Customer Experience



Decentralised asset structure

New market participants

Customer become part of the value chain

http://www.eon.se/

This requires a new positioning of service providers

16

Business partner Technology partner

Intimacy

Business technology

Understanding client needs

Supporting CIO decisions

Global

Local



Helping CEO to create value

global trends in the it industry

Business

global trends

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