TURNING DREAMS INTO DIGITALBUSINESSES

THE ONLY THING HARDER THAN TRANSFORMATION IS… FAILING TO TRANSFORM

$100 TrillionOpportunity

for society and industry over next 10 years

- World Economic Forum

Opportunity Threat

52% of companies in the Fortune 500 since 2000

are gone.

….the majority of

companies will not exist in

a meaningful way 10 to 15

years from now.

1937 1944

1937

1948

1916190919201936

1870 1933

Is your business model

keeping pace with the change

in your industry?

What secular trends

are putting pressure on your

existing models?

Are customers asking for

approaches that may disrupt

your current model?

Do you have the people

capabilities to envision future

business models?

Transformation story in 3 chapters

THE WORLD IS CHANGING …

HOW DO WE START

LEARNINGS

01-The world is changing

The fourth industrial revolution is here

Change is everywhere …

Demographicand social

transformation

Technologytransformation

Business and political

transformation

Weare

here

• Globalization of employment

• Globalization of consumption

• Millennial

• Population Aging

• Inequality growth

• Climate change

• Urbanization

• Health and life expectancy

• Customization in scale

• Reputation vulnerability

• Transparency

• Customer power of choice

• Globalization of competition

• Globalization of customers

• Increase of populism

• Increase of nationalism

• China and India

Unprecedented Speed

Levels of transformation

TypeImpact and

DifferentiationExamples

Business

as usualLow

CarOwned

Leased

InfrastructureMedium

Caras a service

Rented

Taxi

99Taxi

Digital efficiency

and

effectiveness

HighRiding

as a service

Shared Service

Uber / Lift

Business

modelVery high

Transportation

as a service

Self-driving Car

Combined commuting

MORE CHANGE IN THE NEXT 10 YEARSTHAN THE LAST 250.

02 How do we start

Dream #1Imagine and

envision the art

of the possible

Design #2 Design to realize the

value of the vision

Deliver #3Deliver, adopt

and realize

the vision and

value

t

Generated Value

Not a lineal process …

Turn ideas into microrevolutions.

Optimize operations &create a digital culture.

Maintain Leadership

Advance Innovation

Accelerate Growth

Create unforgettablecustomer experiences.

Customer defines value

Dream

Customer experience

Digitally enhanced products

Data-driven Services

Digital services

Software products

and services

Dream

Microsoft mission

Empower every person andevery organization on theplanet to achieve more

Dream

Listen to the market

Gaming

Applications &infrastructure

Data & AI

Businessapplications

Modernworkplace

Modern life

EMPOWERED EXPERIENCES

DIGITAL TRANSFORMATION

Transformproducts

Empoweremployees

Optimizeoperations

Engagecustomers

TrustExperiencespeople love

SimplicityAttention on what matters

Empower customersto achieve more

Journeyto cloud services

Mass customization(from free to high-end)

Improved & Integratedcustomer experience

Cloud firstMobile first

From product salesto customer outcomes

Self-service andscalable models

Culturalchange

Diversity & Inclusion

Productivity & empowerment

Enablenew way of work

DatacenterStrategy

DatacenterInvestments

Design, land and manage the transformation cycle

Dream

Transformproducts/services

Empoweremployees

Optimize operations

Engagecustomers

TransformationAccelerators

Empower customersto achieve more

New cloud portfolio

Customersuccess

Cultural change: Growthmindset

Redesign operations to a mobile workforce

Transformation Office

Expansion throughmulti-platform

Increasedindustryexpertise

Cultural change: Customer obsession

Single viewof the customer

Acquisitions

Dynamic product development

Increasedtechnicalexpertise

Empowering DigitalSuccess

Datacenterresearch and development

Business Development Team

Datacenter investment and

strategy

Modern sales & marketing

Newway of work

Newsuppliers and partnerships

New investment models (ATL, Imagine, Fund)

Next level privacy & ethics commitments

Modeling lifetime value,

pricing/licensing and financials

New ways to attract and recognize talent

Re-design of global IT platform

Next level security capabilities

Enhance the way we partner

Transformproducts/services

Empoweremployees

Optimize operations

Engagecustomers

TransformationAccelerators

03 Learnings from transformation processes

#2 Start with culture and leadership

#1 Build on the customer journey

#3 Empower and enable your management team

70% of transformations fails due to management engagement, not strategy

What did I learn

THERE ARE MANY PATHS TO THE FUTURE. WHICH DO YOU CHOOSE?

MICROSOFT’S NEW WORLDVIEW

Intelligent Cloud

Intelligent Edge

Serverless

Multi-device, Multi-sense

Artificial Intelligence