Leveraging digital forces for Business Transformation Presentation at CIO Trend Event Stockholm, 5th of February 2014 Johan Löfmark Tata Consultancy Services johan.lofmark@tcs.com www.tcs.com Copyright 2014 Tata Consultancy Services Limited 1
Hello I m Johan Love to challenge our customer to explore and reimagine their business by utilizing new digital technologies M2M Tablets Internet of Things Creative Destruction Dynamic Pricing Sailing & Skiing Connected World Predictive Analytics Enterprise Application Stores Transparent Government Cashless society Networked economy Perpetual Beta Augmented Reality Image/Speech/Gesture recognition Activity Streams Archipellago @johalof Transitive trust Archipelago There s an app for it Big Data and Analytics egovernment Innovation Workshops Smart products Digital Customership Realtime economy ipad Social Media Gamification OpenID Digital Natives Facebook Internet of Things The Long Tail ehealth Mobile & Contactless payments Amazon.com & Kindle India Location-aware applications 2003/98/EC Cloud Enterprise 2.0 Near Field Communication Realtime society New Way of Work Next Step in Banking Uplifting Service Experiences Industrial Internet AMI Connected and social TV Gary Hamel Dynamic Pricing Digital Natives Idea Management & Open Innovation 2
Our journey started in 1968; one year before the internet This early sketch shows how DARPA could connect project teams in different locations. Later called ARPANET and carried its first packets in 1969 as the first early internet network [http://en.wikipedia.org/wiki/history_of_the_internet] 3
A paradigm shift; technology is no longer the limiting factor t 4
A paradigm shift; technology is no longer the limiting factor 2010 2006 1982 Technology is driving development Usage > Technology Service Innovations t 5
Nordics leading the digital revolution The World Economic Forum's (together with INSEAD) annual Networked Readiness Index (NRI) measures the propensity for countries to exploit the opportunities offered by information and communications technology #1 Finland #3 Sweden #5 Norway #8 Denmark The Global Information Technology Report 2013 World Economic Forum & INSEAD 6
We asked 164 CIO s in Sweden about today s drivers for digital business development IT s traditionella roll Nya förväntningar från kunder 62% Nå kunder på nya mer effektiva sätt 59% Optimera och förbättra affärsprocesserna 59% Reducera kostnaderna 52% Öka personalens produktivitet 40% Skapa nya konkurrens- fördelar 46% Skapa nya produkter och tjänster 27% Kopiera konkurrenters tjänster 3% Kundinteraktion Effektivitet Affärsförnyelse CIO Magazine and Tata Consultancy Services Research Program January 2014. 164 CIO s in Sweden. Question 7: Vilka är de huvudsakliga drivkrafterna för digital affärsutveckling i er verksamhet? 7
Leveraging digital forces to reimagine your business
Today s digital transformation primarily driven by five digital forces 9
We spend a lot of time together with our customers to understand the impact of these forces on business MOBILITY (B2C) CLOUD BIG DATA SOCIAL MEDIA Research availble on www.tcs.com 10
The digital forces is expected to have a large impact on business Mobilitet 69% Molntjänster 43% BigData & Analytics 31% Sociala Medier 24% Alla av dem 19% CIO Magazine and Tata Consultancy Services Research Program January 2014. 164 CIO s in Sweden. Question 2: Vilken/vilka av nedanstående digitala tekniker tror du kommer att ha störst inverkan på din affärsverksamhet de närmsta åren? 11
It was about here it started to get exciting Ericsson R320s 12
Reimagine; embrasing Mobility as accelerator Paperless Cockpit Industrial Internet Empowering Employees Workplace Productivity 13
Reimagine; embrasing Analytics & BigData as accelerator Fan analytics Printer data analytics Why do people send flowers? Usage based insurance 14
Leveraging the digital forces to Reimaging Business Business Models Products & Services Customer Segments Channels Business Processes Workplaces 15
Using digital for competitive differentiation Vi har redan eller planerar en digital tjänst som särskiljer oss från konkurrenterna 79% Ingen särskiljande tjänst eller planer 21% CIO Magazine and Tata Consultancy Services Research Program January 2014. 164 CIO s in Sweden. Fråga 6: Har ni redan idag en digital tjänst som differentierar er från konkurrenterna? 16
My favourite quote the technology business is fundamentally the innovation business. Etymologically, the word technology means a better way of doing things. As a result, innovation is the core competency for technology companies. Technology companies are born because they create a better way of doing things. Ben Horowitz [emphasis added] 17
Biggest challenges to reimagine your business Annat är mer prioriterat (44%) Avsaknad av tydlig vision / strategi (33%) Lågt förändringsbehov eller motvillig företagskultur (33%) Lagkrav, integritetsfrågor eller säkerhetsskäl (31%) Saknas process för att identifiera nya möjligheter (29%) Otillräcklig finansiering eller budget (27%) Brist på kompetens internt (27%) Begränsningar i nuvarande IT landskap (25%) Oklart affärscase (17%) Kunderna är omogna för nya innovationer (15%) Ser inte nyttan av digitala tjänster (8%) CIO Magazine and Tata Consultancy Services Research Program January 2014. 164 CIO s in Sweden. Question 10 Vilka är de största hindren för att utforska och etablera nya teknologier i din verksamhet? 18
One of the largest authorities on business innovation Clayton M Christensen http://en.wikipedia.org/wiki/clayton_m._christensen Member of TCS Board of Directors www.tcs.com/about/corp_facts/board_directors/pages/d efault.aspx#christensen 19
Building Digital Reimagination as an organizational capability Your Enterprise & Business Context Joint Environment and Platform for Digital Reimagination TCS Ecosystem & Co-Innovation Network 19 R&D Centers Academic Institutions Alliance Partners Startups & VentureCap Industry Experts Culture Technology Experts 20
Three actions Volume 5 the Digital Enterprise TODAY Visit our booth to continue the conversation DURING THE WEEKEND Read up on our thoughts (pick up from the booth) WITHIN 30 DAYS Meet up with us for coffee 21
Thank You Latest research and thoughts on tcs.com/perspectives Forbes: World s most Innovative IT services company (2013) (forbes.com/innovative-companies/list) Copyright 2014 Tata Consultancy Services Limited 22