Digital Transformation centered Innovation & Business Strategy. Soonyul Chang IDC Korea

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1 Digital Transformation centered Innovation & Business Strategy Soonyul Chang IDC Korea

2 The old world and the new world collide: digital transformation, digital disruption

3 Businesses are Transforming Innovation Change how the organization innovates Resilience Engage How they engage with their customers Speed The The speed speed at which at which they they deliver deliver their their products products and and services services Reliability Reliability The reliability of their operations The reliability of their operations Need for business process transformation and in some cases, business model transformation

4 Shorten the lifespan of companies 61 Years 18 Years 1 st Platform 2 nd Platform 3 rd Platform DATA: INNOSIGHT / Richard N. Foster / Standard & Poor s 75% of S&P 500 will be replaced by 2027

5 It is real story

6 Devices, Data, & Users Challenge IT 2018 Devices 2x growth 40 billion 5/person Data 4x growth 24 Zetabytes 6.75 TBs/person/day 2018 Mobile Users 50% growth 3.8 billion 50% penetration Datacenter cores 2x growth 77 billion 10/person yesterday s IT environment won t cut it

7 Building on the 3rd Platform Accelerating Innovation the 3rd Platform era where disruptive technologies are accelerating us full-speed into the Future.

8 Digital Transformation Digital transformation (DX) is today the biggest theme across the globe, Changing the way industries operate & the rule of IT business, DX is a customer centric business strategy, Business leaders are challenged to move their enterprises to the next level Embedded IT itself into nearly every aspect of people's business and personal lives, fueled by 3rd Platform technologies Every organization must become a technology/digital company in the new marketplace DX will thrive, reconciling the agility and flexibility demands of the business with the availability and reliability mantra of IT

9 DX needs to be at the core of business strategy Source: IDC Asia/Pacific C- suite Barometer Research 2016 (N=1,472 CxO; 667 CIO/CTO; 805 CEO/LoB) QA2 and QA5; *FutureScapes 2016; A1000 = Top Asian 1000 enterprises

10 IT-LED Disruption in Products New devices will drive new applications

11 IT-LED Disruption in Industries New business model has been introduced HOSPITALITY & TOURISM HEALTHCARE & WELLNESS RETAIL & CPG MANUFACTURING TELECOM & SERVICE PROVIDER MEDIA & BROADCASTING ENERGY & RESOURCES BANKING & INSURANCE PUBLIC SERVICES

12 IT-LED Disruption in the way of business process Sample of banking business

13 New competition will emerge continuously What does disruption look like? Disruptive competitors enter the market within months, not years Your ability to identify opportunity, respond, and adapt is nonnegotiable

14 What is the Real Value of IT? Building Systems? or Delivering Services! IDC Visit us at IDC.com and follow us on 14

15 What kind of business are you? "Tesla is as much a software company as it is a hardware company." Elon Musk, CEO Tesla "We increasingly use technology as the backbone of our relationship with guests" Arne Sorenson, CEO Marriott Worldwide "We are a technology company" Lloyd Blankfein, CEO Goldman Sachs

16 Four playgrounds for disruptors P L A Y G R O U N D 1 Market is no longer viable P L A Y G R O U N D 2 Barriers to enter have dropped P L A Y G R O U N D 3 Non-premium brands are good enough P L A Y G R O U N D 4 Competition only taking high margin

17 Digital Transformation is the Business Agenda, Mutifaceted Omni-experience transformation Leadership transformation Information transformation Operating model transformation Worksource transformation Attract and grow loyalty with customers Develop a vision for the digital transformation of the business Leverage information for competitive advantage Make business operations more responsive and effective Transform the way talent is accessed, connected and leveraged Digital transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies.

18 IT infra. Not dead, a critical partner for DX Companies' existing datacenters do not match up well to support the increased demand from digital activity What Is an Agile Datacenter? Ability to move at the speed of business not the speed of IT IT and CIO role needs to change, shift to deliver IT as a service Requires investment and creation of smarter datacenters that can ingest data and communicate with the rest of the ecosystem

19 Developing the Digital Platform of the Future CIO $$$ CDO $$$ Creating new roles Enterprise Platforms On-Premise Digital Platforms Hosted/Public Cloud Creating innovation labs Opening up the war chest Hybrid Cloud Architecture Building an ecosystem IDC Visit us at IDC.com and follow us on

20 IDC's IT Leadership Framework: Leading in 3D Your Leadership Road Map for Digital Transformation INNOVATE with Business to Create a Digital Enterprise INTEGRATE Digital Capabilities with the Enterprise Platform INCORPORATE New Techniques and Technologies into the IT Organization IDC Visit us at IDC.com and follow us on

21 Innovation Accelerators the emergence of a new wave of core technologies The 3rd Platform, the IT raw material for digital Transformation The adoption of innovation accelerators will distinguish winners, accelerators have to be recognized with new business model

22 We are in the Crossroad momentum! Many of industry leaders are at a strategic transition from now to future

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