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THE ROAD TO REIMAGINATION TCS Global Trend Study 2014 July 2014 The State and High Stakes of Digital Initiatives tcs.com/stateofdigital

The Road to Reimagination: The State and High Stakes of Digital Initiatives

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Learn how Global 2000 companies are using 'digital five forces' to improve their business and relationship with customers. The TCS Global Trend Study 2014 [ http://on.tcs.com/stateofdigital ] surveyed over 800 corporations about their digital strategies, investment and future plans.

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Page 1: The Road to Reimagination: The State and High Stakes of Digital Initiatives

THE ROAD TO REIMAGINATION

TCS Global Trend Study

2014

July 2014

The State and High Stakes of Digital Initiatives

tcs.com/stateofdigital

Page 2: The Road to Reimagination: The State and High Stakes of Digital Initiatives

The study is based primarily on an extensive online survey of 820 executives in 13 global industries across 10 countries in four regions of North America, Europe, Latin America and Asia-Pacific and, in-depth interviews with nine executives who are leading (or who led) their companies’ digital initiatives.

Mean revenue820Companies

13Industries

4Regions

$26 bn9 Key Findings

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 3: The Road to Reimagination: The State and High Stakes of Digital Initiatives

of companies for whom digital initiatives are important or most important to business

average per-company spend on digital initiatives

70% $113mnDIGITAL INITIATIVES CRUCIAL TO BUSINESS SUCCESS

13

$

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 4: The Road to Reimagination: The State and High Stakes of Digital Initiatives

DIGITAL TECHNOLOGIES KEY

TO CONNECTING WITH CUSTOMERS

2Customer Engagement:

95%

50%

34%

connect through mobile apps for customers’ devices, or via social media (for continuous monitoring)

connect via digital products/services customers buy and download

of companies are using digital platforms to connect with customers

4

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 5: The Road to Reimagination: The State and High Stakes of Digital Initiatives

2014

2020THREE INDUSTRIES MAKING THE BIGGEST DIGITAL INVESTMENTS

3Media, Telecom, and High-Tech most likely to

More than 1/3rd of all companies in

reinvent business models

roll out digital offerings

boost digital revenues as % of total revenues

Banking

Retail Insurance

Utilities

$

5

TCS Global Trend Study

2014

to Digitally Reimagine business models

tcs.com/stateofdigital

Page 6: The Road to Reimagination: The State and High Stakes of Digital Initiatives

Companies investing heavily in the Digital Five Forces,

with Big Data and analytics taking the lion’s share

28%20%20%

19%

13%

Spend allocation across Digital Five Forces:

Big Data and analytics

Mobile computing and miniature digital devices

Social media and online communities

Cloud computing services

Artificial intelligence, machine learning, and robotics

BIG DATACENTRAL TO

DIGITALINITIATIVES

46

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 7: The Road to Reimagination: The State and High Stakes of Digital Initiatives

MAJORITY HAVE ALREADY LAUNCHED DIGITAL OFFERINGS

5of companies have launched a digital product or service

average revenue they expect to generate as a result

59% $234 mn

7

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 8: The Road to Reimagination: The State and High Stakes of Digital Initiatives

70% 7%

Leaders spend 3X Followers Revenue growth 10X Followers

average spend

$290 $93Leaders Followers FollowersLeaders

digital revenue growth

GOING DIGITAL IS EXPENSIVE

BUT REWARDING

68

TCS Global Trend Study

2014

mn mn

tcs.com/stateofdigital

Page 9: The Road to Reimagination: The State and High Stakes of Digital Initiatives

DIGITAL LEADERS MORE LIKELY TO HAVE GAINED CRITICAL BUSINESS CAPABILITIES

7Digital Followers

seek to improve accuracy in demand forecasting, and

identify product improvements, new offerings

seek to market and sell their offerings

+

Digital Leaders

$

$

9

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 10: The Road to Reimagination: The State and High Stakes of Digital Initiatives

of Digital Leaders have one unified view of how they connect with their customers

of Digital Followers let individual business functions decide their digital strategy

57% 50% DIGITAL LEADERS HAVE

A SINGULAR DIGITAL STRATEGY

810

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 11: The Road to Reimagination: The State and High Stakes of Digital Initiatives

DIGITAL REIMAGINATION MUST BEGIN NOW

9of the companies are Digitally Reimagining their businesses right now

intend to do so before 2020

8%

32%ONLY

BUT

11

TCS Global Trend Study

2014

tcs.com/stateofdigital

Page 12: The Road to Reimagination: The State and High Stakes of Digital Initiatives

12Copyright © 2014 Tata Consultancy Services Limited

The Road to Reimagination The State and High Stakes of Digital Initiatives

#TCSDigital #DigitalReimagination

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TCS Global Trend Study

2014