Intel Confidential — Do Not Forward

The Third Industrial Revolution …. continued

Mike Blalock

Global Sales Director – Financial Services Industry

Intel Corporation

We are still at the dawning of the third era… ...A new economic narrative is being written.

What’s going on : Third Industrial Revolution

* The Third Industrial Revolution: How Lateral Power is Transforming Energy, the Economy, and the World by Jeremy Rifkin, president of the Foundation on Economic Trends

Steam and coal

Railways

Factories

Printing press – mass education

Internet, molecular biology, renewable energy sources

Super information highways

Smart “everything”

Electrification, oil, combustion engine

New materials

Highways, automobiles

Mass production

First Second Third

1760’s……. Late 1990’s……. 1860’s…….

*

2

A properly shared car

is $270K in lost auto

sales revenues

Have we

reached “peak

car”

Founded in 2008,

AirBnB is valued

today at $13B¹

The Unstoppable Rise of the Shared Economy

1. Source: WSJ http://online.wsj.com/articles/airbnb-mulls-employee-stock-sale-at-13-billion-valuation Other names and brands may be claimed as the property of others.

What must businesses do when customers share rather than buy?

3

New paradigm:

Access trumps

ownership

“and inside the enterprise” A redefinition of the work place and The Way We Work

1 source: Brian Solis Future of Business 2 source: Brian Solis Future of Work

Businesses have to re-imagine how we work: critical need to innovate and increase velocity

Innovation

Foster and rewards

innovation

Velocity

Market led agility

Aligning incentives

Openness

Democratize ideas

and opinions

Shared and connected

4

Gen Y will form

75%2 of workforce by 2025

Only 7%2 of Gen Y work for F500

company, preferring start-ups

40%1 of top F500 in 2000 are no longer there in 2010

The SMAC Stack

5

Social Democratizes ideas and opinions,

eliminates traditional

hierarchies for communication, sharing

and connecting

Mobile Work anywhere anytime. Smaller

form factors take us to a place

where everything can be sensored

and connected.

Analytics

Advanced analytics enable filtering of

information to

create observations, predictions, and drive

new real-time decision making

Cloud

Access to information for collaboration

anyplace, anytime.

Device and data synchronization.

History Shows: SMAC Disrupts Traditional Vendors and Adds New Ones

Source: Gartner 2012 ¥ revenue does not include Tencent, Yandex, Baidu, Alibaba. Just imagine if it did! * Other names and brands may be claimed as the property of others

Established Vendors Disruptive Vendors

$428B Combined Annual Revenue¥

$460B Combined Annual Revenue

6

The SMAC Stack and Key Challenges for Banking

Source: Temenos

Regulation

and

Compliance

Changing

Customer

Behavior

New Entrants

and

Competition

7

Investment in analytics, digital channels and product innovation is top priority

What Does This Mean for YOU?

There are five key business imperatives that all organizations need to embrace.

8

Cloud: Re-envision Your Data Center

Software Defined Infrastructure Simplified, Elastic, Interoperable and Built on Open Industry Standards

Rapid, Efficient & Agile Online Service Delivery

• Reduce time, cost and labor

• Increase agility, automation, elasticity

(public/private/hybrid)

• Shift investment to business transformation

• Open & interoperable with ‘industry standard’ economics

9

Analytics: Data is Your New Currency

Enable an Open, Interoperable Analytics Infrastructure and Data Platform

Risk Management • Securities fraud early warning

• Card fraud detection

• Enterprise credit risk reporting

Optimize customer engagement & 360° view • Personalized and contextual

• Real-time insights for B2B and B2C

• Structured and Unstructured Data

Increase operational efficiency • Model branch behaviour

10

IoT: Become Smart – Sense, Predict, Act

Open, “Smart”, Secure, End to End solutions

End-to-end Intelligence and Analytics

• Insights and predictions drive "new economy" services

(industrial, transportation, smart cities, insurance)

• Safe and optimal use of resources

• Automated decision making

• Remote operation and management

11

Increase Innovation and Business Velocity

• Optimise productivity and global collaboration

• Attract and retain the best and the brightest

• Engage Millennials and Digital Natives

• Unlock “hidden intelligence”

Transform the Nature/Culture of the Way We Work

Workplace Transformation Collaboration, Facilities Innovation, Personal Productivity & Best Practice

12

Security: Trust at the Heart of Your Brand Identity

Guard against Fraud, IP Loss & Privacy Threats

• Headlines – Target, Home Depot, JPMorgan Chase

• Big scale attacks, Crime-as-a-service, Cyber warfare

• Below the O/S, Ransom-ware

• >15Bn attack surfaces by 2020

Intel Security: Ubiquitous Security and Identity Protection Across ALL Our Computing Platforms

13

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

14

Re-Imagine the

Data Center

Workplace

Transformation

Become Smart –

Sense, Predict,

Act

Trust at the heart

of your brand Data is the

new currency

The Third Industrial Revolution

THE PACE OF CHANGE IS ACCELERATING

BUSINESS IMPERATIVES ARE INTERTWINED

TECHNOLOGY IS ONLY PART OF THE SOLUTION

THE CULTURAL IMPLICATIONS CAN BE SIGNIFICANT

WHAT’S YOUR PLAN TO ENABLE INNOVATION?