Techvision 2016 trend 3- report (slideshare)

Trend 3: Platform Economy

People First: The Primacy of People in the Digital Age

The Accenture Technology Vision 2016 identifies five technology trends fueled by the people first principle and that are essential to business success in the digital economy.

Intelligent Automation

Liquid Workforce

Platform Economy

Predictable Disruption

Digital Trust

People First: The Primacy of People in the Digital Age

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New technology platforms are driving business innovation, everywhere

4

Driving a geographic dispersion of technology innovation hubs

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Building these types of new platforms requires starting from the ground up

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This includes:Technical Architecture

Governance

Security

How?Create open standards and APIs to be sharable and attractive to ecosystem partners.

Use a cloud foundation, technically designed to scale with the network effects of the ecosystem.

Back office systems will need to support real-time business models


SAP HANA real-time health analytics and predictive medicine

As these ecosystems develop more connections to mobile and IoT devices, platforms need to support real-time business models and data architectures

Real-time is the basis for connected intelligent machines, vehicles, and mission-critical facilities

Key enabler = in memory computing & databases

Real-time use cases abound in consumer smartphone appsSocial/Facebook: share experiences instantly

Transportation/Uber: watch your taxi navigating toward you

Connected Car: infotainment and on-demand services

Chat apps: instant group communications with no latency

Smart home: the lights turn when you walk in the house

TV remote: change the channel from your smartphone

And are driving the next generation of mission critical systemsHealthcare: continuous patient monitoring hospital to home

Industrial: real-time management of $ billions of critical assets

Logistics: real-time tracking of every that moves

Energy: smart grid electricity usage, optimization, and security

Connected Car: emergency services alerted instantly upon collision

Transportation: driverless vehicles of all kinds

Real-time use cases abound in the consumer experience and are rapidly expanding into all business sectors


These new platforms also = adoption of New IT


Multi-speed change engine

Managing platforms and ecosystems of digital partners and developers communities will drive your New IT into high gear

New IT extends into platform ecosystem governance to support your ecosystem

Digital business partners

Developer communities

Cloud partners

Security partners

Architected / designed for continuous changeAgile (Release/Change Management):

DevOps (Process, People & Tools)

Testing (Rapid, Ecosystem-based)

By 2018, over 60% of new apps will use cloud-enabled continuous delivery and cloud-native application architectures to enable faster innovation and business agility.IDC FutureScape: Worldwide Cloud 2016 Predictions, IDC, Doc #259840, November 4, 2015

Once in place, enterprises will use these platforms as new types of business models


“Products have features. Platforms have communities”

Marshall Van AlstyneMIT Initiative of the Digital Economy

Co-author, Platform Revolution, (to be released March 2016)

Connected Collaborative Scalable

Platform business models are:

… business strategies based on creating value externally with communities of users, partners, and developers

Using platforms isthe business model


Tech Companies and Born- Digital Organizations

AlibabaAlphabetAmazon.comAppleBaidueBayFacebookJD.comLinkedInNetflixPriceline.comSalesforceTencentTwitterYahoo!Internet

Companies

$16,752

+15,187.1%

PlatformCompanies

$2,560,902Internet CompaniesAppleAxel SpringerCopartFox CommunicationsIAC/InterActive Corp.iLiveiStart InternetLive MicrosystemsNetcom OnlineNetscapePSINetRentPathStorage Computer Corp.Wave CorporationWeb.com

Tech companies & born digital organizations are dominating the digital economy with platform business models.

Private venture-backed startups are also driving record-high valuations:

More than 140 ‘unicorns’ (private companies with valuations of $1 billions or more) have a total market cap of over $500 billion (“The Unicorn List,” CB Insights, 2015)

70% of ‘unicorn’ startups are platform companies(Center for Global Enterprise, 2015)

Is anyone successfully doing this?Market Cap Valuations –

Internet vs. Platform CompaniesMarket Cap of Top 15 Public Platform Companies: $2.6 trillion

Market Cap of Private ‘Unicorn’ Companies: $500 billion

TOTAL: $3+ trillion

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1995 2015

$MM

As a leader in the digital revolution for healthcare, Philips is launching Philips HealthSuite platform with 3 tech partners:

Salesforce.com

Amazon IoT

Alibaba Cloud.

With a platform business model Philips is driving new growth paths that complement its core business in medical equipment.

The platform business model lives alongside the traditional product business

Companies are using their platforms to lead in the digital revolution


This is a big picture change

Traditional Value-Chain Business Models

Value creation is two-way and continuous

Value creation is linear and one-way

Platform-Driven Business Models

DevelopersPublishersContent ownersRetailServices

Platform Ecosystem

Production Distribution Marketing Consumer


Having a platform strategy and the business know-how to exploit it is more important than “owning” an ecosystem.

By 2018, IDC predicts that more than 50% of large enterprises – and more than 80% of enterprises with advanced digital transformation strategies – will create and/or partner with industry platforms.1

IDC predicts that the number of industry clouds will reach 500 or more by 2018, up from today's 100-plus.2

Digital leaders from non-tech sectors are now also building platforms

1 “IDC Predicts the Emergence of "the DX Economy" in a Critical Period of Widespread Digital Transformation and Massive Scale Up of 3rd Platform Technologies in Every Industry,” IDC, November 4, 20152 “Industry Cloud: The Largest Vertical Growth Opportunity for Technology Vendors and Services Firms Through 2025,” IDC, November 19, 2015

Schneider

GE

Bosch

ABB

Disney

SONY

Ford

GM

TomTom

Pfizer

Novartis

Merck

Carepass

Cigna

edX

Walmart

American Express

Nasdaq OMX


Industry Platforms:

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Platform Economy: 100-Day Plan


1. Appoint a C-level champion to lead a cross-functional team of technologists, business experts, and economists.

2. Identify and prioritize parts of the business that are prime for platform business models.

3. Identify the parts of the business that are most vulnerable to attack by disruption from new platform-based business models (from incumbents and startups inside & outside industry).

4. Align the platform opportunities alongside existing product and market strategies (platform business models live alongside traditional product strategies).

5. Present initial findings to the Board and establish a top-down C-level enterprise-wide commitment to pursuing platform business models as a strategic growth path.

6. Assess your knowledge gaps of the new rules of business: demand-side economies of scale, power law distribution, network effects, and asymmetric competition.

7. Launch a company-wide campaign on the new rules of business and platform business models. Create a network of internal platform champions to evangelize the message.

8. Assess your digital technology capabilities and gaps in building platform ecosystems.

9. Prioritize the overall opportunities and threats, and then start with a small initiative to pilot, including internal initiatives to start the journey into platform business models.

Platform Economy: 365-Day Plan


1. Finalize plans to launch the initial pilot to work with a cloud partner to build a platform around one of the most information-intensive parts of the business.

2. Formalize agreements with the cloud partner that will be building the foundation of the platform.

3. Develop a multi-phase plan to transform parts of the business to platform business models.

4. Identify platform opportunities inside and outside your industry based on your executive training programs and platform knowledge base.

5. Establish a formal governance plan and organization to manage digital partnerships and developer communities in order to optimize the value of the platform ecosystem.

6. Formalize an approach to track and report on platform growth opportunities, relevant ecosystems, and competitive threats from both inside and outside the industry.

7. Communicate the vision of where your company fits in an economy without industry sector segmentation and with boundary-less competition.

Predictions


Immersive becomes Pervasive.Businesses go beyond AR, VR and MR to create platforms on which customers, employees and partners can experience all the five senses – together – in any environment they choose. This leads to the early stage of dematerialization where people can be present virtually anywhere in the world at any time and

meet with their friends.

Key Takeaways


The strategic use of technologies to create platform business

models is driving unprecedented growth opportunities in the

rapidly expanding digital economy.

Driven by the new rules of business, platform business models represent the most profound disruptive change in the global macroeconomic environment since the Industrial Revolution.

While tech and digital born organizations have been

dominating the digital economy with record-high market caps, non-tech digital leaders across all industries are developing platform strategies now (the

new tech leaders).

What’s NextNon-techs become next innovation giants. Within 3 to 5 Years, non-tech companies will emerge as leaders of technology and business model innovation, shifting power away from the traditional tech and digital born organizations.

New geographic innovation hubs emerge. This shift will inherently drive a geographic dispersion of innovation hubs away from tech centers like Silicon Valley to a variety of global hubs with industry concentrations.

Ecosystems drive market caps. Within 3 to 5 five years, market cap valuations will be largely based the power of ecosystems and digital assets, including the network effect of platform interactions and control of key digital technologies such as algorithms and APIs.



Thank you#techvision2016www.accenture.com/technologyvision

https://www.accenture.com/us-en/insight-technology-trends-2016?c=tech_tchvs16ss_10000001&n=smc_0116

Techvision 2016 trend 3- report (slideshare)

Technology

Transcript of Techvision 2016 trend 3- report (slideshare)