Re-Think IT: Thrive or Survive Australia’s Imperative To Actdemo.idg.com.au.s3.amazonaws.com/cio/ciosummit/011Sally... · 2015-11-19 · By 2016, 80% of CIOs will deliver a new

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 2

• 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

Disruptive Business Models

•2009

•Expected 2015 revenue ~$10B

•Valuation >$40B

•2008

•Crowd sourced home rentals

•$28B valuation

•2004

•Urban guide, crowd sourced reviews

•2014 Market Cap $2.6B


Based on publicly sourced investment data

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

Disruption and Innovation are Prevalent


Innovation: To make changes in something established, especially by introducing new methods, ideas, or products

http://www.oxforddictionaries.com/definition/english/change#change__31


Global Competitiveness – Australia


Global Innovation – Australia

An Innovation Wake-Up Call

Source: World Economic Forum Global Competitiveness Index 2014-2015, 2015-2016


Australia in other World Rankings

?

What might this high ranking be?

Source: Transparency.org



What might this #1 ranking be?


Global Corruption Index ?

Source: OECD




Global Corruption Index

Source: OECD

Australia is a high wage economy

that must remain competitive

on the world stage –

Technology is a key innovation enabler


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)

Australia’s Long History of Innovation

Australia - Role of ICT 2015

11 Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)

CSUITE 2015

Looking to 2015-2016, what role does ICT play in your organization?


39%

Optimiser

26% Opportunist

18% Follower

13%

Creator

3%

Disruptor

AP 12%

NZ 26%


28%

1.

Escalating cost

of operation

10.5%

3.

New Customer

buying patterns 5.

New Government

regulation

9.7%

2.

New

business

models

13%

10.5%

4.

New

Competitors

CSUITE 2015

Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)

Australian CEO’s Top 5 Challenges 2015-16

What are the CEOs top business concerns, other than meeting

financial goals?

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

13

20%

1.

Operational

Efficiency &

Productivity

16%

3.

Company Wide

Cost Savings

5.

Market

Expansion

11%

2.

Invest to

increase share

customer wallet

16%

12.5%

4.

Customer

Engagement

Initiatives

CSUITE 2015

Source: IDC Asia/Pacific C-suite Barometer 2015 (Aus 480 responses)

Australian Business Top 5 Priorities 2015

Invest in R&D to Innovate for Competitive Leadership ranked 8th


17.3%

1.

Build Better

Management

Tools

9.5%

3.

More Secure

IT 5.

Application

Modernisation

7%

2.

Manage

Suppliers

10%

9%

4.

Enhance

Infrastructure to

meet new demands

CSUITE 2015

Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC)

Australia ICT Top 5 Priorities 2015-16

Develop innovation cells to harness ICT to gain competitive

advantage ranked 6th

ASIA #1

Develop ICT

Innovation

cells for

competitive

advantage

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

Technology Adoption – Cloud 2016

16 © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Source: IDC’s APEJ Cloud Study 2014, May 2014; n = 2,300 (Australia = 250, multiple responses)

Cloud is the foundation for the 3 other pillars and solutions…

Q: For 2016, please estimate the anticipated

workload distribution across deployment models

Technology Adoption – Data


New Revenue Streams

Better Product & Services

Operational Efficiencies

Profit Optimisation

The Data

Opportunity

Important asset - don’t know how to harness

Do not see data as an important asset

Exploring new data monetization opportunities

See data as an important part of their strategy

but see the need to do more

CSUITE 2015

Q: Is data a strategic asset for your CEO and organization?

Technology Adoption – Big Data


Stage 1

Ad Hoc

Stage 2

Opportunistic

Stage 3

Repeatable

Stage 4

Managed

Stage 5

Optimized

Maturity

66% 11% 3%

Yesterday's

Strategy Today

Cautious

Innovation

Orchestrating

IT & Business

Effective IT-

Business

Integration

Visionary &

Transformative

Proof-of-concept

or pilot projects

Functional deploy Persistent

adoption

Enterprise use Continuous

learning &

improvement

19%

36% 50% 6% 1%

Australia

Asia Pacific 0%

0%

Source: IDC Australian Big Data Heat Map – June 2015, APeJ Big Data Maturity Assessment and Benchmark 2014 (APEJ=1255, Australia = 150)


“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”

Stakeholder Disruption

Australia’s Imperative to Act


” Innovation isn’t only for

Silicon Valley or Israel.

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"…

Government

Industry

Science

In Summary – Thrive or Survive


"The future is already here — it's just not

evenly distributed.”

William Gibson, Sci-Fi Author

Thank You


[email protected]

@datacentrechic

www.idc.com

mailto:[email protected]

Documents

Re-Think IT: Thrive or Survive Australia’s Imperative To Actdemo.idg.com.au.s3.amazonaws.com/cio/ciosummit/011Sally... · 2015-11-19 · By 2016, 80% of CIOs will deliver a new