Download - PAC Webinar - Digital disruption in the IT industry: with or without you?!

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Digital Disruption in the IT Industry With or without you? Nicole Dufft, SVP PAC

2014

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Digital transformation

is bringing IT to the center of business strategy


Customer centricity

Agility & innovativeness

Data-driven decision making

New business imperatives in the digital world

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New market segments and growth areas

New players and changing ecosystems

IT spending is shifting from legacy to growth IT

New IT consumption patterns and decision making

Disruption in the IT industry

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PAC webinar on digital disruption in the IT industry

Your questions are welcome!!

Dr. Andreas Stiehler Principal Analyst Digital Enterprise

Nicole Dufft Senior Vice President Digital Enterprise


New business imperatives in the digital world

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Digitization creates empowered customers

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Buys everywhere

Has all information at her fingertips

Expects best user

experience possible

Lives online Tells the whole world what she thinks instantly

Leaves data everywhere

PAC Webinar - Digital Disruption in the IT Industry

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Customer centricity is a key business imperative Businesses in every industry have to fundamentally reshape their strategies towards the empowered customer

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New forms of customer

interaction

New digital products &

services

New digital sales

channels

New digital marketing formats


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Digital transformation The need to redefine value proposition, technology strategy and operational model

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Technology strategy •  Reliability & security •  Governance & organization •  Innovation & agility

Business strategy •  Digital business models •  Business culture: innovation & collaboration •  Organizational transformation

Narrow view: Focus on the

customer

Customer experience

•  Digital products &

services •  Digital sales •  Digital marketing •  Digital customer

interaction

Enabling technologies

•  Cloud •  Big data/analytics •  Mobility •  Social media •  Ubiquitous

Internet

Operational Processes

•  Social

collaboration •  Information mgmt. •  HR/change mgmt. •  Supply chain &

procurement

Broad view: Touches the

whole organization

PAC Webinar - Digital Disruption in the IT Industry 2014

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Intelligent machines can do a lot – but they cannot innovate. Innovation requires innovative people!

Innovativeness requires new working environments and a new working culture: ●  From hierarchical organization to self-organized

teams ●  From structured processes to creative chaos ●  Work is not a place you go to, it’s a thing you do…

A combination of culture and technology can create the environment for innovative people.

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Agility & Innovativeness Workplace environments today are not well suited for this!

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Agile? Innovative?

60% of German businesses have standardized workplace environments for all employees regardless of role or use case.


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“Value is created not in a product or service itself but in the connections it fosters.”

Erich Joachimsthaler, CEO Vivaldi Partners

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Data-driven decision making The connected world

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Data-driven decision making Machine-generated data will dwarf human-generated data

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Sensors are everywhere and collect massive amounts of data. This opens up entirely new ways of doing business!



IT moves from being a support function to the center of business

strategy

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Disruption in the IT industry

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We expect significant shifts in IT spending: From legacy to growth IT

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18%

8%

7% 1% 1% 65%

BaaS, SaaS, PaaS, IaaS; 30%

Cloud-related PS & AM; 22% UCC; 7%

Mobility; 3%

Big Data; 4%

Rest of Market; 34%

Worldwide

2013

2017

15%

6%

6% 1% 1%

71%


Cloud-related PS & AM; 19%

UCC; 7% Mobility; 3%

Big Data; 4%

Rest of Market; 40%

EMEA

2013

2017

23%

11%

6% 2%

2%

56%



UCC; 7%

Mobility; 4%

Big Data; 4%

Rest of Market; 23%

Americas

2013

2017

12%

6%

7% 1% 1%

73%



UCC; 7%

Mobility; 3% Big Data; 3%

Rest of Market; 47%

Asia-Pacific

2013

2017

Key challenge: How can you stabilize your “legacy business” (ERP, hosting, mature markets etc.) and maintain (or increase!) its profitability to be able to invest in new growth areas?

Shares of trend topics in IT services markets


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New consumption patterns & target groups

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Complex legacy IT Agile cloud-based services

IT decision makers Business decision makers

Large IT implementation & integration projects Small speed boat projects

Integrated corporate IT Enterprise app stores

IT services Business services (BPO/BPS)

IT supports business processes

IT drives business process innovation


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New consumption patterns & target groups IT & business have different “trusted advisors”

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IT service providers

CIO

Digital agencies

CMO


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Traditional IT companies have to be prepared for new players

2014 19 IT Services

Sof

twar

e

Digital agencies

•  SapientNitro •  WPP Digital •  Publicis (Digitas LBi) •  Omnicom •  Interpublic Group


Innovative niche

players

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“Our traditional target is the marketing function or the CMO – now it’s moving more toward the CIO and the information and

technology function.”

Sir Martin Sorrell, CEO WPP!

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Digital transformation market segments (narrow view)

Digital customer

experience & service

Digital content &

applications Digital sales & commerce

Digital marketing

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Digital integration platforms

Software

Services

Digital operations and management

Digital consulting

Digital technology

implementation

Digital technology integration

2014

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Digital transformation market (narrow view)

●  €22bn in 2013 = 9.5% of overall SITS market ●  Growth is not skyrocketing, but the strategic relevance of the topic is tremendous!

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0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2013 2014 2015 2016 2017

Digital transformation market volumes 2013-2017 Western Europe (in million euros)

Digital Transformation Software Products Digital Transformation Services © PAC 2013


CAGR: 11.2%

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Growth areas in digital transformation Software & IT services by topic

Digital customer experience &

service

•  Omni-channel solutions that allow for superior customer experience across all interaction channels.

•  Comprehensive analytics integration across all channels and solutions.

•  Software as a service / cloud-based solutions

•  Integration platforms

Digital content & applications

Digital sales & commerce

Digital marketing

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Digital integration platforms

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Growth areas in digital transformation IT services by type

Digital consulting


•  Combined business and technology consulting

Digital technology

implementation

•  Comprehensive consulting on various technology areas coupled with creativity and design capabilities.

Digital technology integration

•  Back-end integration of front-end solutions

Digital operations and management

•  Hosting and managed services for digital solution platforms •  Business process outsourcing

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Become a strategic partner for the digital transformation process of your customers!

•  Actively position yourself as a digital transformation partner.

•  Break up go-to-market silos. •  Consider building up a dedicated digital practice.

2014


Don’t sell technologies, sell business value! •  Actively address business decision makers and their

individual challenges. •  Actively address the new business imperatives in the

digital world: customer centricity, agility & innovativeness, data-driven decision making.


Play an active role in the changing ecosystem! •  Evaluate new partnerships and/or M&A activities. •  Look for niche specialists in digital transformation and

digital agencies. •  Build up your creative and innovation skills.

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SITSI® Digital Enterprise market research


Market figures & forecasts

Market reports

Vendor profiles

•  Digital transformation software & IT services •  Market volume and growth rates

•  Market overview & trends •  Vertical case study reports •  Local Market InSight reports: France, Germany, UK

•  Profiles of the digital transformation positioning of leading software vendors, IT service providers and digital agencies

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Customized research & consulting


Digital strategy workshops

•  Customized workshop to discuss the impact of the current market developments on your individual strategy.

•  Joint development of potential strategy options for your positioning as digital transformation partner.

Customized research

•  Individual competitive and positioning analysis •  Communications and sales support, content-based marketing •  Speaking engagements

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Multi-client studies on digital transformation in France / Germany

Concept •  Representative survey of marketing & sales as well as IT decision makers

Key questions •  Challenges and strategies •  Investment plans •  Decision-making processes •  Role of software and service providers

Sponsorship options •  Silver: €7,000, Gold: €10,800, Premium: €16,500

Benefits •  Market intelligence •  Thought leadership and branding •  Sales support and lead generation 2014 PAC Webinar - Digital Disruption in the IT Industry 31

Trend study Webinars & keynotes

Social media awareness Case studies

Spotlight analyses

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PAC’s Digital Enterprise team


Arnold Aumasson!SVPPAC France#

#

Dominic Trott!Senior AnalystPAC UK#

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Andreas Stiehler!Principal Analyst Digital Enterprise PAC Germany#

Nicole Dufft!SVPDigital Enterprise PAC Germany#

#

Olivier Rafal!Principal ConsultantSoftware & SaaS PAC France#

Aurore Goncalves!Senior ConsultantPAC France#

Megan Dahlgren!Principal Consultant & Software Market Director PAC France#

Melanie Flug!Analyst – Mobility PAC Germany#

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PAC France!Pierre Audoin Consultants Immeuble Actualis - 2e étage 21 boulevard Haussmann 75009 Paris, France Tel: +33 (0) 1 56 03 67 24 [email protected] !!!

From strategy to execution, PAC delivers focused and objective responses to the growth challenges of Information and Communication Technology (ICT) players. Founded in 1976, PAC is a privately held research & consulting firm for the software and ICT services market. PAC helps ICT vendors to optimize their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies. For more information, please visit: www.pac-online.com PAC’s latest news: http://blog.pac-online.com##

PAC GermanyPierre Audoin Consultants Holzstrasse 26 80469 Munich, Germany Tel: +49(0) 89 23 23 68 0 Fax: +49(0) 89 719 62 65 [email protected] !

PAC RomaniaPierre Audoin Consultants Negustori 12 023953 Bucharest-2 - Romania Tel.: +40 (0) 21 410 75 80 Fax: +40 (0) 21 410 75 81 [email protected] !

PAC U.S.Pierre Audoin Consultants 192 Lexington Avenue - Suite 1101 New York, NY 10016, USA Tel: +1 646 277-7250 Fax: +1 646 607-1716 [email protected] !!!

PAC UKPierre Audoin Consultants 2nd Floor, 15 Bowling Green Lane London EC1R 0BD United Kingdom Tel.: +44 (0) 207 251 2810 Fax: +44 (0) 207 490 7335 [email protected] !!!

PAC BrazilPierre Audoin Consultants Rua Pedro de Toledo, 130, Office 61, Vila Clementino Sao Paulo 04039-030 Brazil Tel.: +55 (11) 5539 0280 Fax: +55 (11) 5539 0280 [email protected]

About us!

PAC IndiaPierre Audoin Consultants 610-611, Ashoka Estate, 24 Barakhamba road, New Delhi - 110001, India Tel: +91 (0) 11 4353 [email protected]

2014