Chetan Dube, CEO IPsoft

Beyond Automation – The Rise of Digital

LaborISG Saugatuck Summit 2016

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Why Do We Care? Things look OK.B

usin

ess

as U

sual

?Revenues (USD) ROE

Origination/Sales Activities 1.75T 22%

Balance Sheet Provision 2.1T 6%

Will Ostrich Algorithm Work?

• Profits from all banks: record high of 1T last year• Average return on equity: stable at 9.5%

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Next Big Wave in IT?

Digital Insurance Trend

WORLD 2.0

Transition Between S-curves

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Digital: Threat Or Opportunity

Gravity of Threat (McKinsey)

Magnitude of Opportunity

Digital laggards: 35% net profit erosion

Digital winners: 40% net profit upside

Whi

ch S

ide

Do

You

Wis

h To

Be?

Each One of You Will Be Affected“If the rate of change on the outside exceeds the rate of change on the inside…the end is near”

Business Rules Are Being Redefined• Gartner: By 2017,

companies leveraging autonomics and cognitive platforms will drive a 60% reduction in cost of services.

• Risk of non-adoption versus risk of early adoption.

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Digital OfferingsConnected with

Digital Ecosystem

Digital Maturity Curve

Digital DarwinismWhere Do You Wish to Be?

Informed

Catalyst

Leader

Fast Follower+ Automation

+ Adaptability

+ Analytic

+ Cognitive

Minimal

Very High

5

Majority of Companies Today

Refocus the Business

Reduce Operations Costs

RETURNS AXIS

Deliver a Differentiated End-to-End Digital Customer Experience With Fractional

Costs

CHANGE AXIS

Digitized Selected Segments of Business Processes

• Prioritize which segment: most value• Address people dynamics• Build 2-speed IT operating model• Digitize processes• Connect to ecosystem

STRATEG

Y

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

How Do I Go Digital: Where’s the Value?

Digital, Digital, Everywhere, Not a drop to Drink

• Prof Hofstadter, UIUC:“I don’t want to be involved in passing off some fancy program’s behavior for intelligence when I know that it has nothing to do with intelligence.”

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Spee

d of

Cha

nge

Cog

nitiv

e ve

rsus

Man

ualSemantic

Memory

Affective Memory

Process Memory

Episodic Memory

+

Human Equivalent or Superior Experience

=

+

+

Need for Digital Labor- Can machines really think?

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

What Will Happen to Me?

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

Cos

t Opt

imiz

atio

n O

R B

ette

r Ser

vice

?G

enius of AN

D,

Not Tyranny of O

RCustomer Experience?

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

• Drivers People • Drivers People

• Servers/Apps/Net Business consumer

• Servers/Apps/Net Business consumer Cognitive IT

What about IT? Disintermediate IT?

Ube

rizat

ion

of IT

Copyright © 2016 IPsoft Incorporated All rights reserved. IPsoft Proprietary Data.

What Impact Will I Achieve?

Det

erm

inis

tic G

ains

Cog

nitiv

e

Aut

onom

ic

Machines are no longer comingThey are here!