CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Hung LeHong

The Business of Digital

Business: How Competitive and

Economic Advantage Will Be

Transformed

1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.1 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Digital Business is changing the way we compete.

Some enterprises are positioning themselves for new sources of

competitive advantage right now

… while others aren’t even aware.

2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

http://www.wsj.com/articles/goldman-sachs-to-give-out-secret-sauce-on-trading-1439371800

3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Are you aware that the battle for the connected home matters?

3

Vs.

4 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

New Sources of Competitive Advantage

Ecosystem Aggregator

Economic Architecture

Workforce Trusted Brand

Data

•Gain customer relationship

•Higher margins

•Rule supply/ demand

•Higher revenue per employee

•More availability & flexibility

•Better output

•Better products

•Better insight

•Better customer knowledge

•Security & ethics as a differentiator

•Margin-enhancing brand

•New economic architecture

•Less capital assets

•Less headcount

5 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.5 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How Does All This Change the World of CFAs

and how you certify CFAs?

6 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.6 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

1. Ecosystem Aggregator Advantage

7 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Network Aggregators of Things Will Have a Competitive Advantage …

7

+ + +

8 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

… And Many Parts of the Enterprise Will Be Subject to the Network Aggregator Model

Units of physical work

Units of knowledge work

Units of physical product

Units of lending

Units of service

Units of value

Units of funding

Physic

al

Inta

ngib

le

Hum

an

Digital

9 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

“The Walled Garden of Existing Ecosystems Is

Unsustainable”

Facebook, Messenger Payments

Alipay, Alipay Wallet, Yu’ebao, MyBank.

Amazon Payments, Amazon Wallet, Amazon Coins, Amazon Local Register

Tenpay, QQ Wallet, WeChat Payment, WeBank

Venmo, Paydiant, Braintree, PayPal

Source: Deutsche Bank, June 2015

Google Wallet, Android Pay, Pony Express, Google Payment Corporation

ApplePay, Apple ID

10 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Will you lend someone money at 22%?

11 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Could Banks Enable the Lending or Transfer of Forms of Value by Leveraging Technology?

Person A

Person B

Sends

Value

Person C

Person D

Lends

valueMajor Bank

P2P

Blockchain

12 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Pursue Ecosystem Aggregator Advantage

1. Look for fungible goods, services or value that can be aggregated.

2. Enforce standards or be ready to handle multiple standards in the ecosystem.

3. Create a simple and consistent experience for customers.

13 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.13 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

2. Workforce Advantage

14 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Virtual Customer Assistants

Source: IBM Watson Engagement Advisor

Source: Xiaoi Service Robot

How much should I pay off this month?

Hi, my name is Xiaozhao, I can help to check your

account balance, statements etc.

I was created by China Merchants Bank Credit Card Center and Xiaoi

Robot

"Approx. 0.6 million interactions everyday with 95% of all interactions

being handled by robot"

15 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

+

Source: https://www.usaa.com/inet/wc/advice_leaving_the_military_menu?wa_ref=pub_global_lifeevents_leave_military

16 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Automated Hotel - Henn na Hotel

https://au.totaltravel.yahoo.com/news/a/28862838/robots-in-charge-at-japanese-hotel/

17 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Source: Narrative Science, Quill

18 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

What If Your Workforce Was Everyone?

https://www.tradingfloor.com/professional-contributors

19 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

What combination?

Human Advisor

Smart Machine

Advisor

Customers,

Friends, Family

20 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Pursue Workforce Advantage

1. Seek repetitive, but non-routine, tasks to automate.

2. Seek benefits that include availability, safety, and higher quality output in addition to cost reduction.

3. Determine the optimal mix of man and machine workforce.

4. Master the handoff from machine to man.

21 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.21 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

3. Data Advantage

22 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

“Mr. Ma (Alibaba), … has a trove of data revealing whether small firms pay their bills on time. He can also bundle together firms that know each other, so that a seller can help guarantee a bank loan to a regular customer. According to Alibaba the proportion of Ali-loan's lending that goes bad is a trifling 0.35%” Source: Economist

23 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

http://www.lenddo.com/

24 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Source: www.lendup.com

25 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Pursue Data Advantage

1. Seek new, untapped, sources of data.

2. Seek to have a 360 view in digital and physical world.

3. Make transparency and opt in/out simple and easy to change.

26 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.26 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

4. Economic Architecture Advantage

27 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Who owns the largest commercial aircraft fleet?

27

GE Capital

AerCap

1570+“owned & serviced”

American Airlines Group

1563(operated)

1300+“owned & managed”

http://www.economist.com/node/21543195

28 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

AirBnB has no real estate

Uber has no taxis

Facebook creates no content

Alibaba has no inventory

These Leaders Have a Different Economic Architecture

29 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Digitalization and Smart Machines Provide Several Ways to Architect the Economics of an Enterprise

1Own less physical assets, pay as you go

Require less capital & headcount

Fewer employees per equivalent revenue, on demand

Everything as a Service

Internet of Things

Smart machines

Very little finished goods inventory, just in time

3D printing

4

2

3

30 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Pursue Economic Architecture Advantage

1. Identify what areas of the P&L and balance sheet have the opportunity to be economically re-architected.

2. Don’t just think of your own enterprise, think about competitors, new entrants, and industry dynamics.

3. Large public companies take a long time to re-architect economically. Launch a separate company if seeking immediate economic architecture advantage.

31 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.31 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

5. Trust & Ethics Advantage

32 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How Hackable Is Your Car? Which Car Would You Buy?

http://www.wired.com/2015/07/hackers-remotely-kill-jeep-highway/

http://www.wired.com/2014/08/car-hacking-chart/

“Hackers Remotely Kill a Jeep on the Highway—With Me in It” – Wired 7/21/15

33 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

http://www.reuters.com/article/2015/06/24/nasdaq-blockchain-idUSL1N0Z92I720150624#bmCmziFE63tyFo5r.97

34 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Security, Ethics & Trust Will Become New Brand Differentiators

34

Ethical Responsibility

Security Privacy

35 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How to Pursue Trusted Brand Advantage

1. Leverage the work you’ve already done in ethics and raise it to brand differentiator level.

2. Keep the pulse on customer to know when security/privacy/ethics will become a key purchase criterion in your industry.

36 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.36 © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.

How Does All This Change the World of CFAs

and how you certify CFAs?