Digital transformation is the changes associated with the application of digital technology in all aspects of human society.[1] Digital transformation may be thought of as the third stage of embracing digital technologies: digital competence → digital
usage → digital transformation, with usage and transformative ability informing digital literacy. The transformation stage means that digital usages inherently enable
new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods.[2]
Industrial Revolution 4.0
Steam, water,
mechanical
production equipment
Division of labor,
electricity, mass
production
Electronics,
IT, automated
production
Blurring the
physical and
the digital
divide
1784 1870 1969 2016
In 1971 small company Intel released 4004, first ever microprocessor.
It had only 2.300 transistors. Today, modern architectures have over 1.75 billion transistors, delivering 400.000 times more computing power.
In 1975 Microsoft was born, bringing power of the computing to the masses
„A computer on every desktop and in every home”, Microsoft vision
40 years later... Digital Economy is leading us to new Industry 4.0 Revolution.Digital Economy will reach EUR 3.2 trillion in the G-20 economies and already contributes up to eight per cent of GDP, powering growth and creating jobs.
Supercomputers in ourhands.
13
The world’s largest taxi company
does not own any taxis
The world’s largest accommodation provider
does not own accommodations
The world’s largest phone company
does not own any infrastructure
The world’s most valuable retailer
does not have any inventory
The world’s largest cinema house
does not have any cinemas
The world’s most popular media owner
does not create any content
Seeing the world with new eyes…
The cost of key technologies
has fallen rapidly.Time to reach $1B valuation or more.
Source: World Economic Forum
Astonishing Pace of Change
Affordable Transformative TechnologyConnecting Physical and Digital
Financial Services
Manufacturing
Retail & CPG
Healthcare
Public Sector
Media3D Printers, $500
1% of 2007 Cost
SmartphonesSensors
.3% of 2007 Cost
Solar Power
.5% of 1984 Cost
DNA Sequencing
.01% of 2007 Cost
Industrial Robots
3% of 2007 Cost
Drones, $700
1% of 2007 cost
Telecom
Automotive
Virtual Reality, $600
$600, 1% of 2007 cost
Voice Recognition Holographic Computing
Wearables Motion Sensing Technology
Digital Era Value Very Sobering Reality….Digital Companies grow fast and disrupt further
$25b $50b $75b $100b $200b $300b $400b $500b
YEA
RS IN
BU
SIN
ESS
%
IS GONE
O U T O F 5 0 0 L A RG E S T
G LO B A L CO M PA N I E S i n
1 9 5 5 …
WORLD IS CHANGING
Digital Business Transformation: Designing for your future customer
Business architecture is now a strategic variable. . . Do not harness technology to the imperatives of the business model, but rather, adopt the business to the possibilities of the technology.
~ Paraphrased from Boston Consulting Group, BCG Perspectives, Oct. 2016
Source: PWC CEO Survey
Technological advances
Demographic shifts
Shift in global economic power
Resource scarcity & climate change
Urbanization
Trends that will
transform
business, next five
years (%)
86% of CEOsconsider “Digital”
their #1 Priority
CEOs believe
technology will transform
their business more than any
other global trend
Digital transformation is both inevitable and mandatory
• In the midst of a major tech revolution, aka the “4th industrial revolution”
• #1 priority on our customers’ agenda
• “There is no other company than Microsoft that can have that kind of dialogue with customers with credibility” ~ Satya Nadella
of the world’s economy
will be digital by 2020
25%
Organizations mature in their
journey generate
100M+ more
operating incomethan those that lag behind
Organizations can’t transform to digital unless people do
Top of mind for business leaders and their digital transformation
Leaders embracedigital-first to fast track transformation
Harness informationto change the way youdo business
Digital transformation =
Cultural shifttechnology problem 1
of the respondents
identified IoT
initiatives — and
related machine-to-
machine and telematics projects — as
new areas of spending for the year ahead 8
RIGHT SKILLS
The most commonly cited
barrier to digitization for
most CIOs 2
shortage
Central to any
digital workplace
initiative:
increasing the
involvement of the
employee community in
technology strategies 3
of CIOs with hiring plans are in
search of people with combined
42%
TECH BUSINESS+backgrounds 4
Most important
decision
CEOs must
make in
2016 is to$invest in data
science
development 5
The CIO’s challenge is
to convince the entire
enterprise that
“SECURE BY DESIGN”
should be treated as a
business priority 6
By 2018,
AI will be
incorporated
into
1/2of all apps developed. By
2020, savings garnered by AI-
enabled efficiencies are
expected to total an estimated
60B for U.S.
enterprises 7
29%
30%By the end of 2016,
of businesses will have begun monetizing
their information assets, which is fueling
an information-driven
economy targeted at $156B 9
1 Forrester Research. The race to digital mastery is on in 2016. Forrester.November 11, 2015.
2 Andy Rowsell-Jones, et al. 2016 CIO Agenda: Global Perspectives onBuilding the Digital Platform. Gartner. February 23, 2016.
3 Matthew W. Cain and Paul Miller. Recipe for Digital Workplace Execution:Transform the Employee Experience. Gartner. March 3, 2016.
7 John Dodge. Who’s in charge of AI in the enterprise? CIO. February 15, 2016. 8 Beth Stackpole. Forecast 2016: 5 fast-track trends to tackle now
(and one to ignore). CIO. December 1, 2015. 9 Mike J. Walker, et al. Top 10 Strategic Technology Trends for 2016:
Information of Everything. Gartner. February 26, 2016.
4 Beth Stackpole. Forecast 2016: 5 fast-track trends to tackle now(and one to ignore). CIO. December 1, 2015.
5 Ken McGee and Mark Raskino. The Most Important Digital Business DecisionSenior Executives Must Make in 2016. Gartner. February 16, 2016.
6 Marcus Shingles et al. Tech Trends 2016: Innovating in the digital era.Deloitte. February 22, 2016.
in savings garnered for U.S. enterprises 5
Digitalization drives down costs
Digital transformation and cost savingspriorities
Investments ininnovation pay offin efficiency
Future-ready your workforce throughdigital literacy
30%By 2018,
of organizations will formalize
workforce digital literacy strategies
to improve business outcomes and
employee engagement 9
1 James Manyika. Digital America: A tale of the haves and have-mores. McKinsey.January 12, 2016.
2 £10bn saved in 2012/13: Efficiency and reform 2012/13 summary report,UK Cabinet Office, 2013.
3 Susan Lund et al. Managing talent in a digital age. McKinsey. February 29, 2016.
7 Bill Snyder. The 6 Hottest New Jobs in IT. CIO. March 7, 2016. 8 James Manyika. Digital America: A tale of the haves and have-mores.
McKinsey. January 12, 2016. 9 Gavin Tay and Achint Aggarwal. Examining the Promise and Progress of
Digital Workplace Programs Globally. Gartner. January 27, 2016.
4 Marcus Shingles et al. Tech Trends 2016: Innovating in the digital era.Deloitte. February 22, 2016.
5 John Dodge. Who’s in charge of AI in the enterprise? CIO. February 15, 2016. 6 Jim Rapoza. Rounding Up Virtual Machine Sprawl With Private Cloud.
Aberdeen. January 4, 2016.
Digital labor platforms can:
increaseoutput by
9%
reduceemployee-related costs by
7% 3
57%
OPERATIONS
Global IT budgets:
16%INNOVATION 4
reduction in IT expenses for organizations after deploying a private cloud 6
40%
AIBy 2018:
½By 2020:
60B in savings garnered
for U.S. enterprises 5
of all apps developed
will incorporate
artificial intelligence
TECHNOLOGIESare moving faster than the EXPERTISE
needed to exploit them can
be disseminated to
the workforce 7
gov.uk saved
63Min public spending withina year of its launch 2
Digitization of labor, capital, and multifactor productivity
Combinedannual impact:
$1.6T - $2.2 Tby 2025 1
BASELINE PROJECTIONS
+6% - 8%US GDP
encouraging workers
to participate in the
digital economy 8
ACCESSINFRASTRUCTUREDIGITAL LITERACYDIGITAL TOOLS
All industries are investing heavily in digital transformation
Source: IDC, PAC, Gartner, Markets and Markets, MGI analysis
1 2016 calculated based on 2015 actuals from Gartner plus an 8% CAGR
$151
billionForecasted
digital
transformation
spend for top
ten highest-
spending
industries
Public sector
Telco and media
Advanced manufacturing
Retail/wholesale trade
Health
Professional services
Basic goods
manufacturing
Utilities
Transportation
1
2
3
4
5
6
7
8
9
10
2016
$ Billions
Financial services
6
7
9
12
12
15
19
19
20
32
2019
20161 155
200-
239
$ billions
Forecasted digital transformation spend 2016-19
But cloud momentum continues to accelerate
“If you’re resisting the cloud because of security concerns, you’re running out of excuses.”
“The question is no longer: ‘How do I move to the cloud?’ Instead, it’s ‘Now that I’m in the cloud, how do I make sure I’ve optimized my investment and risk exposure?’”
“By 2020 clouds will stop being referred to as ‘public’ and ‘private’. It will simply be the way business is done and IT is provisioned.”
26
▪
▪ Expanding competitive radar screen; non-traditional competitors
▪ Creative, new business models
▪ Fast imitation and commoditization
▪ Highly information intensive digital business designs
▪ Extended, complex information chains
Other
Providers
Traditional
Competitors
New
Players
Other
Influencers
Traditional
▪
▪
▪
▪
▪
▪
▪
Higher Order Opportunities
Services
Economics
Product
Digital Leadership is Now a Continuous Process…
Thinking BIG with customers is all about impacting the Digital Business Model
27
Effort Focus
Digital
Transformation
New ways to create value with a digital
business
Digital
Effectiveness
Redesign and digitize processes to more
fully reach desired outcome
Digital
Efficiencies
Digitize existing processes to reduce waste
of time, effort and expense
Digital
Replacement
Replace existing digital capabilities with
lower cost ones
Business as UsualValue is created when things change, so no
value creationV
alu
e C
reati
on
Time
The value created by
any change decays
over time
Value Creation +
Value Destruction -
Digital Business Transformation Impact over Time
THINK
BIG
442020
ZETTABYTES OF DATA
4.42013
0.162006
1 ZETTABYTE = 1B TERABYTES
Data is increasing at rates never witnessed before
30%By the end of 2016,
of businesses will have begun monetizing
their information assets, which is fueling
an information-driven
economy targeted at $156B 9
In 2016, world around us is different. And we needed a different mission.
„Empower every person and everyorganization on the planet to achieve more.”
Microsoft Mission
Digital transformation focus
ENGAGING
CUSTOMERS
Give them new
experiences
they love
EMPOWERING
EMPLOYEES
Reinvent
productivity and
enable a data-
driven culture
TRANSFORMING
PRODUCTS
Innovate products and
business models
OPTIMIZING
OPERATIONS
Modernize
portfolio, transform
processes and skills
Build a digital innovation lab
within a customer’s location,
and start to bring the book of
Dreams to life, your Digital
Dream Factory
Identify, with customer
sponsor, a digital
transformation team, your
Dream Team
Drive, orchestrate and document a
co-created digital transformation
journey, your Book of
Dreams
Your Digital Transformation Journey – Our Approach
Current Threat Landscape
THE REVOLUTION
CYBER-CRIME CYBER-ESPIONAGE
CYBER-WARFARE
CYBER-TERROR
“FUNDAMENTALLY, IF SOMEBODY WANTS TO GET IN,
THEY'RE GETTING IN…ACCEPT THAT.
WHAT WE TELL CLIENTS IS:
NUMBER ONE, YOU'RE IN THE FIGHT, WHETHER YOU
THOUGHT YOU WERE OR NOT. NUMBER TWO,
YOU ALMOST CERTAINLY ARE PENETRATED. ”Michael Hayden
Former Director of NSA & CIA
“Defenders think in lists;
attackers think in graphs.
As long as this is true,
attackers win.”John LaTour (and others)
https://blogs.technet.microsoft.com/johnla/2015/04/26/defenders-think-in-lists-attackers-think-in-graphs-
as-long-as-this-is-true-attackers-win/
A Real Graph Example
…and then traverse the graph to the target
…Adversaries get in at an edge
The Pass-The-Hash Nuclear Bomb
Attackers think in graphs Defenders think in lists
✓ Firewall
✓Anti-virus
✓ Security Logs
✓ Incident Response
Plan
✓Assets
✓Networks
✓Applications
✓Users
…
Recon &
TargetingDelivery
Establish
FootholdEscalate
Lateral
Movement
Persistenc
e
Mission
Objective
Prepare &
WatchDetect
Alert &
MobilizeTriage
Investigat
e
Response
COAsExecute
Attackers / Defenders points of view
Denial of
Service?
Credential Theft?
STRIDE mnemonic
• STRIDE helps you think through potential threats more completely
Threat Plain English
Spoofing Impersonation
Tampering Unauthorized Modification
Repudiation False claim of “I didn’t do that bad thing”
Information Disclosure They got the files (or encryption keys)
Denial of Service Unavailable
Elevation of Privilege They aren’t supposed to be an administrator!
A Data Breach starts with
Identity Breach and Loss of
Control
Loss of Control often leads to
Denial of Service (Cyber Terror)
Cybersecurity Framework
Defend against
Determined Human
Adversaries and
Advanced Persistent
Threats (APTs)
Protect, Detect, and
Respond to malicious
activity from targeted
attacks
HOW DO YOU SEE YOUR FUTURE?
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