IDC CIO Summit Sydney 2015
Re-Think IT: Thrive or Survive Australia’s Imperative To Act Sally Parker Research Director Melbourne, November 11th 2015
The Third Platform for Innovation and Growth
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
•
Unprecedented rate and pace of change
•
3rd Platform represents over 90% of all IT growth thru 2020
•
Cloud as the foundation for the other pillars & solutions
•
Expect a 10 fold increase in ‘Killer Apps’ in the next 4-5 years
2
Disruptive Business Models
•2009 •Expected 2015 revenue ~$10B •Valuation >$40B
•2008 •Crowd sourced home rentals •$28B valuation
By 2018 a third of the Top 20 market share leaders in most industries will be significantly disrupted by new competitors with new offerings, new business models and new cost structures
•2004 •Urban guide, crowd sourced reviews •2014 Market Cap $2.6B Based on publicly sourced investment data
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
3
Disruption and Innovation are Prevalent Innovation: To make changes in something established, especially by introducing new methods, ideas, or products
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
4
Global Competitiveness – Australia
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
5
Global Innovation – Australia An Innovation Wake-Up Call
Source: World Economic Forum Global Competitiveness Index 2014-2015, 2015-2016
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
6
Australia in other World Rankings
?
What might this high ranking be?
Source: Transparency.org
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
7
Australia in other World Rankings What might this #1 ranking be?
?
Global Corruption Index
Source: Transparency.org
Source: OECD © IDC Visit us at IDC.com and follow us on Twitter: @IDC
8
Australia in other World Rankings
Global Corruption Index
Australia is a high wage economy that must remain competitive on the world stage – Technology is a key innovation enabler
Source: Transparency.org
Source: OECD © IDC Visit us at IDC.com and follow us on Twitter: @IDC
9
Australia’s Long History of Innovation first full-length feature film (1906) surf lifesaving reels (1906) self propelled rotary hoe (1912) sunshine header harvester (1914) speedo swimwear (1929) zinc cream (1940) rotary clothes line (1946) Solar hot water (1953) Ultrasound (1961) wine casks (1965) stay sharp knives (1970) powerboard (1972) racecam live television broadcast (1979) wall-mounted Miniboil machines (1981) dual-flush toilets (1982) baby safety capsules (1984) Polymer bank note (1988) smartmodem (1992) Spray on skin (1992) Frazier lens (1993) WiFi (1996) © IDC Visit us at IDC.com and follow us on Twitter: @IDC
10
CSUITE 2015
Australia - Role of ICT 2015 Looking to 2015-2016, what role does ICT play in your organization?
AP 12%
NZ 26%
3%
39%
Disruptor
Optimiser
13%
26%
Creator
Opportunist
18% Follower
Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
11 11
CSUITE 2015
Australian CEO’s Top 5 Challenges 2015-16 What are the CEOs top business concerns, other than meeting financial goals?
1. Escalating cost of operation
2.
5. New Government regulation
4.
3.
New
New Customer buying patterns
Competitors
10.5%
New business models
28%
13%
10.5%
9.7% Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
12 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
CSUITE 2015
Australian Business Top 5 Priorities 2015 Invest in R&D to Innovate for Competitive Leadership ranked 8th
1.
2. Invest to Company Wide increase share Cost Savings customer wallet
3.
4. 5. Market Expansion
Customer Engagement Initiatives
16%
Operational Efficiency & Productivity
20%
16%
12.5%
11% Source: IDC Asia/Pacific C-suite Barometer 2015 (Aus 480 responses)
13 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
CSUITE 2015
Australia ICT Top 5 Priorities 2015-16 Develop innovation cells to harness ICT to gain competitive advantage ranked 6th
1. Build Better Management 2. Manage Suppliers
3. 4. 5. Application Modernisation
7%
Enhance Infrastructure to meet new demands
More Secure IT
9.5%
9%
Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
10%
Tools
17.3% ASIA #1 Develop ICT Innovation cells for competitive advantage
14 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
The New Baseline for IT By 2016, 65% of global competitive strategies will require real-time 3rd Platform IT as a service (ITaaS). By 2016, 80% of CIOs will deliver a new architectural framework that enables innovation and improves business decision making. By 2017 80% of the CIO’s time will be focused on analytics, cyber security & creating new revenue streams through digital services
Source: IDC Predictions © IDC Visit us at IDC.com and follow us on Twitter: @IDC
15
Technology Adoption – Cloud 2016 Cloud is the foundation for the 3 other pillars and solutions… Q: For 2016, please estimate the anticipated workload distribution across deployment models
Source: IDC’s APEJ Cloud Study 2014, May 2014; n = 2,300 (Australia = 250, multiple responses) © IDC Visit us at IDC.com and follow us on Twitter: @IDC
16
CSUITE 2015
Technology Adoption – Data Q: Is data a strategic asset for your CEO and organization?
Do not see data as an important asset Important asset - don’t know how to harness Exploring new data monetization opportunities See data as an important part of their strategy but see the need to do more
The Data Opportunity
New Revenue Streams
Better Product & Services
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Operational Efficiencies
Profit Optimisation
17
Technology Adoption – Big Data
Stage 1 Ad Hoc
Stage 2 Opportunistic
Stage 3 Repeatable
Stage 4 Managed
Stage 5 Optimized
Yesterday's Strategy Today
Cautious Innovation
Orchestrating IT & Business
Effective ITBusiness Integration
Visionary & Transformative
Proof-of-concept or pilot projects
Functional deploy
Asia Pacific
36%
50%
6%
1%
0%
Australia
19%
66%
11%
3%
0%
Persistent adoption
Enterprise use
Continuous learning & improvement
Maturity
Source: IDC Australian Big Data Heat Map – June 2015, APeJ Big Data Maturity Assessment and Benchmark 2014 (APEJ=1255, Australia = 150)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
18
Stakeholder Disruption “If you went to bed last night as an industrial company, you're going to wake up today as a software and analytics company” CEO of GE - Jeff Immelt “By 2018 adoption of 3rd platform IT technologies will redefine 90% of IT roles”.
“By 2016 80% of new IT investments will directly involve LOB executives”
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
19
Australia’s Imperative to Act ” Innovation isn’t only for Silicon Valley or Israel.
Government
Industry
It’s about a state of mind and a way of looking at things – continually working to reinvent and change.”
"disruptive technologies create new markets… with the best of mining boom now behind us we need to think of new industries to continue our progress"…
Science © IDC Visit us at IDC.com and follow us on Twitter: @IDC
20
In Summary – Thrive or Survive
"The future is already here — it's just not evenly distributed.” William Gibson, Sci-Fi Author
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
21
Thank You [email protected] @datacentrechic www.idc.com
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
22
The Third Platform for Innovation and Growth
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
•
Unprecedented rate and pace of change
•
3rd Platform represents over 90% of all IT growth thru 2020
•
Cloud as the foundation for the other pillars & solutions
•
Expect a 10 fold increase in ‘Killer Apps’ in the next 4-5 years
2
Disruptive Business Models
•2009 •Expected 2015 revenue ~$10B •Valuation >$40B
•2008 •Crowd sourced home rentals •$28B valuation
By 2018 a third of the Top 20 market share leaders in most industries will be significantly disrupted by new competitors with new offerings, new business models and new cost structures
•2004 •Urban guide, crowd sourced reviews •2014 Market Cap $2.6B Based on publicly sourced investment data
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
3
Disruption and Innovation are Prevalent Innovation: To make changes in something established, especially by introducing new methods, ideas, or products
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
4
Global Competitiveness – Australia
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
5
Global Innovation – Australia An Innovation Wake-Up Call
Source: World Economic Forum Global Competitiveness Index 2014-2015, 2015-2016
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
6
Australia in other World Rankings
?
What might this high ranking be?
Source: Transparency.org
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
7
Australia in other World Rankings What might this #1 ranking be?
?
Global Corruption Index
Source: Transparency.org
Source: OECD © IDC Visit us at IDC.com and follow us on Twitter: @IDC
8
Australia in other World Rankings
Global Corruption Index
Australia is a high wage economy that must remain competitive on the world stage – Technology is a key innovation enabler
Source: Transparency.org
Source: OECD © IDC Visit us at IDC.com and follow us on Twitter: @IDC
9
Australia’s Long History of Innovation first full-length feature film (1906) surf lifesaving reels (1906) self propelled rotary hoe (1912) sunshine header harvester (1914) speedo swimwear (1929) zinc cream (1940) rotary clothes line (1946) Solar hot water (1953) Ultrasound (1961) wine casks (1965) stay sharp knives (1970) powerboard (1972) racecam live television broadcast (1979) wall-mounted Miniboil machines (1981) dual-flush toilets (1982) baby safety capsules (1984) Polymer bank note (1988) smartmodem (1992) Spray on skin (1992) Frazier lens (1993) WiFi (1996) © IDC Visit us at IDC.com and follow us on Twitter: @IDC
10
CSUITE 2015
Australia - Role of ICT 2015 Looking to 2015-2016, what role does ICT play in your organization?
AP 12%
NZ 26%
3%
39%
Disruptor
Optimiser
13%
26%
Creator
Opportunist
18% Follower
Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
11 11
CSUITE 2015
Australian CEO’s Top 5 Challenges 2015-16 What are the CEOs top business concerns, other than meeting financial goals?
1. Escalating cost of operation
2.
5. New Government regulation
4.
3.
New
New Customer buying patterns
Competitors
10.5%
New business models
28%
13%
10.5%
9.7% Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
12 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
CSUITE 2015
Australian Business Top 5 Priorities 2015 Invest in R&D to Innovate for Competitive Leadership ranked 8th
1.
2. Invest to Company Wide increase share Cost Savings customer wallet
3.
4. 5. Market Expansion
Customer Engagement Initiatives
16%
Operational Efficiency & Productivity
20%
16%
12.5%
11% Source: IDC Asia/Pacific C-suite Barometer 2015 (Aus 480 responses)
13 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
CSUITE 2015
Australia ICT Top 5 Priorities 2015-16 Develop innovation cells to harness ICT to gain competitive advantage ranked 6th
1. Build Better Management 2. Manage Suppliers
3. 4. 5. Application Modernisation
7%
Enhance Infrastructure to meet new demands
More Secure IT
9.5%
9%
Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)
10%
Tools
17.3% ASIA #1 Develop ICT Innovation cells for competitive advantage
14 © IDC Visit us at IDC.com and follow us on Twitter: @IDC
The New Baseline for IT By 2016, 65% of global competitive strategies will require real-time 3rd Platform IT as a service (ITaaS). By 2016, 80% of CIOs will deliver a new architectural framework that enables innovation and improves business decision making. By 2017 80% of the CIO’s time will be focused on analytics, cyber security & creating new revenue streams through digital services
Source: IDC Predictions © IDC Visit us at IDC.com and follow us on Twitter: @IDC
15
Technology Adoption – Cloud 2016 Cloud is the foundation for the 3 other pillars and solutions… Q: For 2016, please estimate the anticipated workload distribution across deployment models
Source: IDC’s APEJ Cloud Study 2014, May 2014; n = 2,300 (Australia = 250, multiple responses) © IDC Visit us at IDC.com and follow us on Twitter: @IDC
16
CSUITE 2015
Technology Adoption – Data Q: Is data a strategic asset for your CEO and organization?
Do not see data as an important asset Important asset - don’t know how to harness Exploring new data monetization opportunities See data as an important part of their strategy but see the need to do more
The Data Opportunity
New Revenue Streams
Better Product & Services
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
Operational Efficiencies
Profit Optimisation
17
Technology Adoption – Big Data
Stage 1 Ad Hoc
Stage 2 Opportunistic
Stage 3 Repeatable
Stage 4 Managed
Stage 5 Optimized
Yesterday's Strategy Today
Cautious Innovation
Orchestrating IT & Business
Effective ITBusiness Integration
Visionary & Transformative
Proof-of-concept or pilot projects
Functional deploy
Asia Pacific
36%
50%
6%
1%
0%
Australia
19%
66%
11%
3%
0%
Persistent adoption
Enterprise use
Continuous learning & improvement
Maturity
Source: IDC Australian Big Data Heat Map – June 2015, APeJ Big Data Maturity Assessment and Benchmark 2014 (APEJ=1255, Australia = 150)
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
18
Stakeholder Disruption “If you went to bed last night as an industrial company, you're going to wake up today as a software and analytics company” CEO of GE - Jeff Immelt “By 2018 adoption of 3rd platform IT technologies will redefine 90% of IT roles”.
“By 2016 80% of new IT investments will directly involve LOB executives”
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
19
Australia’s Imperative to Act ” Innovation isn’t only for Silicon Valley or Israel.
Government
Industry
It’s about a state of mind and a way of looking at things – continually working to reinvent and change.”
"disruptive technologies create new markets… with the best of mining boom now behind us we need to think of new industries to continue our progress"…
Science © IDC Visit us at IDC.com and follow us on Twitter: @IDC
20
In Summary – Thrive or Survive
"The future is already here — it's just not evenly distributed.” William Gibson, Sci-Fi Author
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
21
Thank You [email protected] @datacentrechic www.idc.com
© IDC Visit us at IDC.com and follow us on Twitter: @IDC
22
