A Brave New (connected) World – IoT& DX November 2015 Mark Walker – AVP Sub

2 What is the Internet of Things? an aggregation of endpoints — or "things" — that are uniquely identifiable communicate over a network without human interaction using some form of automated connectivity, be it local or global. Bringing together people, processes, data, and things to make networked connections more relevant by turning information into actions. IoT leads to better, more timely, and more accurate decision making. It is about data capture, transport, analysis… but also business processes/decision making.

© IDC Visit us at IDC.com and follow us on 3 IoT is an Ecosystem... Platforms THE INTERNET OF THINGS Connectivity Management Analytics Consulting & Implementation Security Gateways Sensors

© IDC Visit us at IDC.com and follow us on 4 IT IS LEADING TRANSFORMATION OF ALL INDUSTRIES AND ASPECTS OF LIFE Smart Planet Smart Cities Smart Industry Smart Health Smart Buildings Smart TransportSmart Energy Smart Living THE INTERNET OF THINGS

M2M IoT Machine-to-Machine (M2M)  Provides secure, reliable, and optimized (i.e. real-time when needed) data traffic  Technological view (sensor to sensor) Internet of Things (IoT)  From Machine to more general Things  Aims to develop automated analysis and facilitate decision making based on the data collected automatically; this enables business growth  End-to-end business/solutions view (enabling growth) © IDC Visit us at IDC.com and follow us on 5 IoT is More Than Machine-to-Machine

From a Market Perspective  Because of its scale – billions of devices  Because it calls upon the pillars of digital transformation: cloud, mobility, Big Data and hyper connectivity  It will impact all our lives  at home (smart meters),  at work (Smart industry),  the environment (smart planet),  what we eat (smart agriculture),  how we travel (connected cars) Why IoT is Transformational From an Enterprise Viewpoint  Increased competitiveness, cheaper/new products and services, better supply chain, reduced downtime, tailored solutions, etc…  New revenues by being able to do things that were impossible in the past e.g. connected dairy cows;  New business models e.g. Telecare and telehealth;  Billions of bits of data  IoT has the potential to shift the debate from make-and-sell to sense-and-respond  IoT’s impact goes beyond ICT “Every company in the world needs an IoT strategy today. If they don’t have one, they need to develop one”. “Every company in the world needs an IoT strategy today. If they don’t have one, they need to develop one”.

Key Success Factors Vendor: The vendor's role is to understand and exploit the wave of change, so that companies and their clients can ride the wave successfully. End user: CIOs must first regain control of the ICT estate and restore proper governance. They must support business innovation and growth. User benefits Quantifiable : Reduced downtime & Cost efficiency / Increased productivity / Innovation More volume, frequent and granular data Functional : Better service levels, better customer experience / Complete automation / Interoperability Organizational : Industry specific solution / Better, more reliable and faster decision making / Market differentiation / Business growth IoT Benefits and Key to Success © IDC Visit us at IDC.com and follow us on 7

IoT Opportunities for Digital Cities © IDC Visit us at IDC.com and follow us on 8 Business / Digital Transformation Alignment TAM Expansion TAM Expansion Top-line revenue growth “De-commoditize” Address new clients types / new buyers Long Term competitiveness (survival) Long Term competitiveness (survival) e.g. Agriculture e.g. Industry 4.0 i.e. Business buyers i.e. tailored solutions e.g. Utilities e.g. Connected cars

Who is already part of the IoT Ecosystem + Many Many More…

© IDC Visit us at IDC.com and follow us on 10 A WorkPlace revamp A continuous process Digital, physical, business, and customer engagement Disruptive changes in their customers and markets. Leverage digital competencies to innovate New business models, products, and services Improving operational efficiencies and organisational performance Business change that requires a cultural shift A DevOps tactic A mobile first approach Launching a social media campaign A Public or private cloud deployment A BYOD strategy A Big Data solution DIGITAL TRANSFORMATION? WHAT IT ISWHAT IT IS NOT

Who is natively digital? most are not …. 11

© IDC Visit us at IDC.com and follow us on 12 20% 16% 9% Cash flow 15% Cost savings 11% Expand markets 13% Engage customers Share of customer wallet Operational efficiency C-Suite looks to grow share of wallet whilst delivering on operational efficiency. The demand to engage customers in new markets whilst managing cash flow and reducing cost opens the door to transforming the customer experience. DIGITAL TRANSFORMATION IS A BUSINESS PRIORITY

IT-enabled Processes, Services & Products is the End Game 13 IT-enabled Services Transforming Business Processes IT-enabled Products Creating IT-enabled Products IT-enabled Business Processes Automating Business Processes NO! It’s just the start…

Brave New World - where are you in this picture? © IDC Visit us at IDC.com and follow us on 14 Leadership Transformation Omni-Experience Transformation Information Transformation Operating Model Transformation WorkSource Transformation Managed Digital Transformer Opportunistic Digital Explorer Ad Hoc Digital Resister Repeatable Digital Player Optimized Digital Disrupter Source: IDC, Digital Transformation Maturity Model, 2015 Managed Digital Transformer Opportunistic Digital Explorer Ad Hoc Digital Resister Repeatable Digital Player Optimized Digital Disrupter

Thank you Mark Walker MarkWalker36 © IDC Visit us at IDC.com and follow us on 15