1. © PAC
Digital Disruption in the IT Industry
With or without you?
Nicole Dufft, SVP PAC
2014

2. © PAC 20142 PAC Webinar - Digital Disruption in the IT Industry
Digital transformation
is bringing IT to the center of business strategy

3. © PAC 20143 PAC Webinar - Digital Disruption in the IT Industry
Customer centricity
Agility & innovativeness
Data-driven decision making
New business imperatives in the
digital world

4. © PACPAC Webinar - Digital Disruption in the IT Industry 20144
New market segments and growth areas
New players and changing ecosystems
IT spending is shifting from legacy to growth IT
New IT consumption patterns and decision making
Disruption in the IT industry

5. © PAC 2014PAC Webinar - Digital Disruption in the IT Industry5
PAC webinar on digital disruption in the
IT industry
Your questions are
welcome!!
Dr. Andreas Stiehler
Principal Analyst
Digital Enterprise
Nicole Dufft
Senior Vice President
Digital Enterprise

6. © PAC 20146 PAC Webinar - Digital Disruption in the IT Industry
New business imperatives in the
digital world

7. © PAC
Digitization creates
empowered customers
20147
Buys everywhere
Has all
information at
her fingertips
Expects best
user
experience
possible
Lives online
Tells the whole
world what she
thinks instantly
Leaves data
everywhere
PAC Webinar - Digital Disruption in the IT Industry

8. © PAC
Customer centricity is a key
business imperative
Businesses in every industry have to fundamentally
reshape their strategies towards the empowered customer
20148
New forms of
customer
interaction
New
digital products &
services
New
digital sales
channels
New digital
marketing formats
PAC Webinar - Digital Disruption in the IT Industry

9. © PAC
Digital transformation
The need to redefine value proposition,
technology strategy and operational model
9
Technology strategy
• Reliability & security
• Governance & organization
• Innovation & agility
Business strategy
• Digital business models
• Business culture: innovation & collaboration
• Organizational transformation
Narrow view:
Focus on the
customer
Customer
experience
• Digital products &
services
• Digital sales
• Digital marketing
• Digital customer
interaction
Enabling
technologies
• Cloud
• Big data/analytics
• Mobility
• Social media
• Ubiquitous
Internet
Operational
Processes
• Social
collaboration
• Information mgmt.
• HR/change mgmt.
• Supply chain &
procurement
Broad view:
Touches the
whole
organization
PAC Webinar - Digital Disruption in the IT Industry 2014

10. © PAC
Intelligent machines can do a lot –
but they cannot innovate.
Innovation requires innovative people!
Innovativeness requires new working
environments and a new working culture:
● From hierarchical organization to self-organized
teams
● From structured processes to creative chaos
● Work is not a place you go to, it’s a thing you do…
A combination of culture and technology can
create the environment for innovative people.
201410 PAC Webinar - Digital Disruption in the IT Industry

11. © PAC
Agility & Innovativeness
Workplace environments today are not well suited for this!
201411
Agile? Innovative?
60% of German businesses have standardized workplace
environments for all employees regardless of role or use case.
PAC Webinar - Digital Disruption in the IT Industry

12. © PAC
“Value is created not in
a product or service
itself but in
the connections
it fosters.”
Erich Joachimsthaler,
CEO Vivaldi Partners
PAC Webinar - Digital Disruption in the IT Industry12
Data-driven decision making
The connected world
© PAC 2014

13. © PAC
Data-driven decision making
Machine-generated data will dwarf human-generated data
201413
Sensors are everywhere and
collect massive amounts of
data. This opens up entirely
new ways of doing business!
PAC Webinar - Digital Disruption in the IT Industry

14. © PAC 201414 PAC Webinar - Digital Disruption in the IT Industry
IT moves from being a support
function to the center of business
strategy

15. © PACPAC Webinar - Digital Disruption in the IT Industry 201415
Disruption in the IT industry

16. © PAC
We expect significant shifts in IT spending:
From legacy to growth IT
201416
18%
8%
7%1%
1%65%
BaaS, SaaS,
PaaS, IaaS; 30%
Cloud-related PS
& AM; 22%UCC; 7%
Mobility; 3%
Big Data; 4%
Rest of Market;
34%
Worldwide
2013
2017
15%
6%
6%
1%
1%
71%
BaaS, SaaS,
PaaS, IaaS; 27%
Cloud-related PS
& AM; 19%
UCC; 7%
Mobility; 3%
Big Data; 4%
Rest of Market;
40%
EMEA
2013
2017
23%
11%
2%
2%
56%
BaaS, SaaS,
PaaS, IaaS; 36%
Mobility; 4%
Big Data; 4%
Rest of Market;
23%
Americas
2013
2017
12%
6%
7%
1%
1%
BaaS, SaaS,
PaaS, IaaS; 22%
Rest of Market;
47%
Asia-Pacific
2013
2017
Key challenge: How can you stabilize your “legacy business” (ERP,
hosting, mature markets etc.) and maintain (or increase!) its profitability to
be able to invest in new growth areas?
Shares of trend topics in IT services markets
PAC Webinar - Digital Disruption in the IT Industry

17. © PAC
New consumption patterns & target groups
201417
Complex legacy IT Agile cloud-based services
IT decision makers Business decision makers
Large IT implementation &
integration projects
Small speed boat projects
Integrated corporate IT Enterprise app stores
IT services Business services (BPO/BPS)
IT supports business
processes
IT drives business process
innovation
PAC Webinar - Digital Disruption in the IT Industry

18. © PAC
New consumption patterns & target groups
IT & business have different “trusted advisors”
201418
IT service providers
CIO
Digital agencies
CMO
PAC Webinar - Digital Disruption in the IT Industry

19. © PAC
Traditional IT companies have to
be prepared for new players
201419
IT Services
Software
Digital agencies
• SapientNitro
• WPP Digital
• Publicis (Digitas LBi)
• Omnicom
• Interpublic Group
PAC Webinar - Digital Disruption in the IT Industry
Innovative niche
players

20. © PAC
“Our traditional target is the marketing function or the CMO –
now it’s moving more toward the CIO and the information and
technology function.”
Sir Martin Sorrell, CEO WPP!
20 2014PAC Webinar - Digital Disruption in the IT Industry

21. © PAC
Digital transformation market segments
(narrow view)
Digital
customer
experience &
service
Digital
content &
applications
Digital sales
& commerce
Digital
marketing
21 PAC Webinar - Digital Disruption in the IT Industry
Digital
integration
platforms
Software
Services
Digital
operations and
management
Digital
consulting
Digital
technology
implementation
Digital
technology
integration
2014

22. © PAC
Digital transformation market
(narrow view)
● €22bn in 2013 = 9.5% of overall SITS market
● Growth is not skyrocketing, but the strategic relevance of the topic is tremendous!
201422
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2013 2014 2015 2016 2017
Digital transformation market volumes 2013-2017
Western Europe (in million euros)
Digital Transformation Software Products Digital Transformation Services © PAC 2013
PAC Webinar - Digital Disruption in the IT Industry
CAGR: 11.2%

23. © PAC
Growth areas in digital transformation
Software & IT services by topic
Digital customer
experience &
service
• Omni-channel solutions that allow for superior
customer experience across all interaction
channels.
• Comprehensive analytics integration across
all channels and solutions.
• Software as a service / cloud-based solutions
• Integration platforms
Digital content &
applications
Digital sales &
commerce
Digital
marketing
23 PAC Webinar - Digital Disruption in the IT Industry 2014
Digital
integration
platforms

24. © PAC
Growth areas in digital transformation
IT services by type
Digital
consulting
24 PAC Webinar - Digital Disruption in the IT Industry 2014
• Combined business and technology consulting
Digital
technology
implementation
• Comprehensive consulting on various technology areas
coupled with creativity and design capabilities.
Digital
technology
integration
• Back-end integration of front-end solutions
Digital
operations and
management
• Hosting and managed services for digital solution platforms
• Business process outsourcing

25. © PAC25 PAC Webinar - Digital Disruption in the IT Industry
Become a strategic partner for the digital
transformation process of your customers!
• Actively position yourself as a digital transformation
partner.
• Break up go-to-market silos.
• Consider building up a dedicated digital practice.
2014

26. © PAC 201426 PAC Webinar - Digital Disruption in the IT Industry
Don’t sell technologies, sell business value!
• Actively address business decision makers and their
individual challenges.
• Actively address the new business imperatives in the
digital world: customer centricity, agility &
innovativeness, data-driven decision making.

27. © PAC 201427 PAC Webinar - Digital Disruption in the IT Industry
Play an active role in the changing ecosystem!
• Evaluate new partnerships and/or M&A activities.
• Look for niche specialists in digital transformation and
digital agencies.
• Build up your creative and innovation skills.

28. © PAC
How can PAC support you?

29. © PAC
SITSI® Digital Enterprise market
research
2014PAC Webinar - Digital Disruption in the IT Industry29
Market figures &
forecasts
Market reports
Vendor profiles
• Digital transformation software & IT services
• Market volume and growth rates
• Market overview & trends
• Vertical case study reports
• Local Market InSight reports: France, Germany, UK
• Profiles of the digital transformation positioning of leading
software vendors, IT service providers and digital agencies

30. © PAC
Customized research & consulting
2014PAC Webinar - Digital Disruption in the IT Industry30
Digital strategy
workshops
• Customized workshop to discuss the impact of the current
market developments on your individual strategy.
• Joint development of potential strategy options for your
positioning as digital transformation partner.
Customized
research
• Individual competitive and positioning analysis
• Communications and sales support, content-based marketing
• Speaking engagements

31. © PAC
Multi-client studies on digital
transformation in France / Germany
Concept
• Representative survey of marketing & sales as well as IT decision makers
Key questions
• Challenges and strategies
• Investment plans
• Decision-making processes
• Role of software and service providers
Sponsorship options
• Silver: €7,000, Gold: €10,800, Premium: €16,500
Benefits
• Market intelligence
• Thought leadership and branding
• Sales support and lead generation
2014PAC Webinar - Digital Disruption in the IT Industry31
Trend study
Webinars &
keynotes
Social media
awareness
Case studies
Spotlight
analyses

32. © PAC
PAC’s Digital Enterprise team
2014PAC Webinar - Digital Disruption in the IT Industry32
Arnold Aumasson!
SVP
PAC France#
#
Dominic Trott!
Senior Analyst
PAC UK
#
#
Andreas Stiehler!
Principal Analyst
Digital Enterprise
PAC Germany#
Nicole Dufft!
SVP
Digital Enterprise
PAC Germany#
#
Olivier Rafal!
Principal Consultant
Software & SaaS
PAC France#
Aurore Goncalves!
Senior Consultant
PAC France#
Megan Dahlgren!
Principal Consultant
& Software Market Director
PAC France#
Melanie Flug!
Analyst – Mobility
PAC Germany#

33. © PAC
Q&A
2014PAC Webinar - Digital Disruption in the IT Industry33
Many thanks for your attention.
We are looking forward to your questions.

34. © PAC
PAC France!
Pierre Audoin Consultants
Immeuble Actualis - 2e étage
21 boulevard Haussmann
75009 Paris, France
Tel: +33 (0) 1 56 03 67 24
info-france@pac-online.com
!!
!
From strategy to execution, PAC delivers focused and
objective responses to the growth challenges of
Information and Communication Technology (ICT)
players.
Founded in 1976, PAC is a privately held research &
consulting firm for the software and ICT services
market.
PAC helps ICT vendors to optimize their strategies by
providing quantitative and qualitative market analysis
as well as operational and strategic consulting. We
advise CIOs and financial investors in evaluating ICT
vendors and solutions and support their investment
decisions. Public institutions and organizations also rely
on our key analyses to develop and shape their ICT
policies.
For more information, please visit: www.pac-online.com
PAC’s latest news: http://blog.pac-online.com#
#
PAC Germany
Pierre Audoin Consultants
Holzstrasse 26
80469 Munich, Germany
Tel: +49(0) 89 23 23 68 0
Fax: +49(0) 89 719 62 65
info-germany@pac-online.com
!
PAC Romania
Pierre Audoin Consultants
Negustori 12
023953 Bucharest-2 - Romania
Tel.: +40 (0) 21 410 75 80
Fax: +40 (0) 21 410 75 81
info-romania@pac-online.com
!
PAC U.S.
Pierre Audoin Consultants
192 Lexington Avenue - Suite 1101
New York, NY 10016, USA
Tel: +1 646 277-7250
Fax: +1 646 607-1716
info-us@pac-online.com !!
!
PAC UK
Pierre Audoin Consultants
2nd Floor, 15 Bowling Green Lane
London EC1R 0BD
United Kingdom
Tel.: +44 (0) 207 251 2810
Fax: +44 (0) 207 490 7335
info-uk@pac-online.com !!
!
PAC Brazil
Pierre Audoin Consultants
Rua Pedro de Toledo, 130,
Office 61, Vila Clementino
Sao Paulo 04039-030 Brazil
Tel.: +55 (11) 5539 0280
Fax: +55 (11) 5539 0280
info-latam@pac-online.com
About us!
PAC India
Pierre Audoin Consultants
610-611, Ashoka Estate,
24 Barakhamba road,
New Delhi - 110001, India
Tel: +91 (0) 11 4353 4818
info-apac@pac-online.com
2014