traversing the digital vortex, lux rao, director & leader, digital transformation, cisco systems
TRANSCRIPT
© 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 [email protected]
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
