1. THE DIGITAL
TSUNAMI

2. THE DIGITAL TSUNAMI 1
DISRUPTION IS UPON US

3. 100X THE INNOVATION OF PAST CYCLES
THE DIGITAL TSUNAMI 2
100X THE INNOVATION OF PAST CYCLES
10X
The Innovators $
1/10th
The Cost
100X
The Power
Source: James McQuivey, Digital Disruption

4. MOVING AT LIGHTNING SPEED
THE DIGITAL TSUNAMI 3
MOVING AT LIGHTNING SPEED
Agricultural revolution took thousands of years
Industrial revolution took hundreds of years
IT revolution is taking decades

5. THE DIGITAL TSUNAMI 4
CREATING UNCERTAINTY
80% of the world's 100 largest companies will not be on the list in 30 years

6. CAUSING COLLATERAL DAMAGE
THE DIGITAL TSUNAMI 5
CAUSING COLLATERAL DAMAGE
Technology is destroying jobs faster than it is creating them in advanced economies.

7. PARTLY FUELLED BY CENTRAL BANKS
THE DIGITAL TSUNAMI 6
PARTLY FUELLED BY CENTRAL BANKS
5000
400
4000
300
3000
NASDAQ Composite
Seed Rounds $million
200
2000
100
1000
2005 06 07 08 09 10 11 12 13
2014
NASDAQ Index
Seed Capital
Source: Mattermark,

8. 1.0

9. USA TRAVEL AGENTS 99,730 50,630 120 100 Thousands 80 60 40 1999 00 01
THE DIGITAL TSUNAMI 8
USA TRAVEL AGENTS
99,730
120
100
Thousands 80
50,630 60 40
1999 00 01 02 03 04 05 06 07 08 09 10 11
2012
Source: Bureau of Labor Statistics,

10. MUSIC Now Physical Streaming 15 10 $Billion 5 2008 09 10 11 12 13 14
THE DIGITAL TSUNAMI 9
MUSIC 15
Now 10
$Billion 5
2008 09 10 11 12 13 14
2015 16 17 18 19
2020
Physical
Streaming
Source: Credit Suisse/Quartz 2014:

11. BOOKS Now E-Books Print 20 15 US $Billion 10 5 2008 09 10 11 12 13 14
THE DIGITAL TSUNAMI 10
BOOKS 20 15
Now
US $Billion 10 5
2008 09 10 11 12 13 14
2015 16
2017
E-Books
Print

12. CAMERAS Digital Cameras Smartphones 1000 800 600 Million 400 200 2009
THE DIGITAL TSUNAMI 11
CAMERAS
1000
800
600
Million
400
200
2009
2010
2011
2012
2013
Digital Cameras
Smartphones
Source: Wall Street Journal,

13. ADVERTISEMENTS Newspaper Print Ads Google Adwords 50 40 30 $Billion 20
THE DIGITAL TSUNAMI 12
ADVERTISEMENTS 50 40 30
$Billion 20 10
2001 02 03 04 05 06 07 08 09 10 11
2012
Newspaper Print Ads
Google Adwords
Source: McKinsey

14. TRADITIONAL MEDIA Internet Advertising as % of Total Advertising 2015
THE DIGITAL TSUNAMI 13
TRADITIONAL MEDIA 60 51 50 40 37 40 28 28
Traditional Media Disruption Zone 27 30 20 13 12 7 10 UK AU
PRC
USA NZ EU HK SG
SEA
Internet Advertising as % of Total Advertising 2015
Source: APD Analysis, 2015

15. Non-linear disruption of SMS
THE DIGITAL TSUNAMI 14
TELCOS
Non-linear disruption of SMS 30 20
Daily messages (bn)
Now 10
1996
2000
2005
2010
2015
SMS
WhatsApp
Source: Mattermark,

16. 2.0

17. 4bn 1bn 50bn 100mn HALF THE PLANET WILL BE CONNECTED BY 2020 Smart
THE DIGITAL TSUNAMI 16
HALF THE PLANET WILL BE
CONNECTED BY 2020
4bn
Smart
phones
1bn
Homes
with WiFi
50bn
Connected
devices
100mn
Connected
cars

18. $600bn $300bn $200bn $100bn GIANT MARKETS WILL BE CREATED Internet of
THE DIGITAL TSUNAMI 17
GIANT MARKETS WILL BE CREATED
2x the revenues of Apple, Google, Microsoft, Samsung and IBM by 2020
$600bn
Internet of
Everything
$300bn
Sharing
Economy
$200bn
The
Cloud
$100bn
Big
Data

19. “This will change everything.”
THE DIGITAL TSUNAMI 18
SMARTPHONES
“This will change everything.”

20. HOLE THE SHARING ECONOMY I don’t want to buy a drill I need a
THE DIGITAL TSUNAMI 19
THE SHARING ECONOMY
I don’t want
to buy a drill
I need a
HOLE
in the wall!!

21. THE INTERNET OF EVERYTHING
THE DIGITAL TSUNAMI 20
THE INTERNET OF EVERYTHING
“The Internet of Everything will
be five to ten times more impactful
in the next decade than the entire
Internet has been to date.”
- John Chambers, Cisco CEO

22. CONNECTED DEVICES Now PC, smartphone & tablet market IoT 25 20 15
THE DIGITAL TSUNAMI 21
CONNECTED DEVICES 25 20 15
Now
$Billion 10 5
2013
2014
2015
2016E
2017E
2018E
2019E
PC, smartphone & tablet market
IoT
Source: BI Intelligence Estimates,

23. 3-D PRINTING THE DIGITAL TSUNAMI 22
Source: Xerox 914 copier brochure, 1962 (

24. Everything ahead is being disrupted
THE DIGITAL TSUNAMI 23
Everything ahead
is being disrupted

25. WINNERS AND LOSERS Shrinking Industries Growing Industries
THE DIGITAL TSUNAMI 24
WINNERS AND LOSERS
Shrinking
Industries
Growing
Industries
Renewables & Environment
Internet
Online Publishing
Philanthropy
E-Learning
Public Policy
International Trade & Development
Think Tanks
Venture Capital
Computer Games
Health, Wellness & Fitness
Oil & Energy
Utilities
Medical Devices
Management Consulting
Hospital & Health Care
Marketing & Advertising
Information Technology
Financial Services
Real Estate
Pharmaceuticals
Telecommunications
Banking
Construction
Automotive
Retail
Supermarkets
Capital Markets
Size of circle is related to
volume of jobs gained or lost
Warehousing
Restaurants
Newspapers
-30%
-20%
-10% 0%
10%
20%
30%
40%
50%
60%
70%
Source: TBC

26. PROF. MICHAEL PORTER: WHAT BUSINESS AM I IN?
THE DIGITAL TSUNAMI 25
PROF. MICHAEL PORTER:
WHAT BUSINESS AM I IN?
Image source: The Simpsons, Fox Broadcasting Company

27. IS YOUR MANAGEMENT TEAM READY?
THE DIGITAL TSUNAMI 26
IS YOUR MANAGEMENT TEAM READY?

28. IS YOUR BOARD READY FOR THE FIGHT?
THE DIGITAL TSUNAMI 27
IS YOUR BOARD READY FOR THE FIGHT?

29. THE DIGITAL TSUNAMI 28
<10% of the NEDs of top 20 listed companies in each of Hong Kong, Singapore, Australia and New Zealand have deep technology experience
Source: Thomson Reuters and APD research 2015

30. THE DIGITAL TSUNAMI 29
If we exclude technology and telco boards, <5% of NEDs have deep technology experience
Source: Thomson Reuters and APD research 2015

31. THE DIGITAL TSUNAMI SUMMARISED30
THE DIGITAL TSUNAMI SUMMARISED
Happening now, happening fast
On multiple fronts
More urgent than you think
Disruptors are now being disrupted
Leadership is a deciding factor

32. Will you
DISRUPT
or be
DISRUPTED ?

33. APD: 360 DEGREE DIGITAL SERVICES
Interact
Strategy & technology
Acquire
Performance
marketing
Engage
Conversion
& retention
Venture
eCommerce ventures

34. APD: 360 DEGREE DIGITAL SERVICES
400
team members 10
Offices
8 countries
$60m
Reported
revenues
1000+
Regional
clients