Presenting key external drivers in creating IT Strategy 2017-2020 for Indonesian banking industry.

1. Handojo Triyanto
Senior Research Manager - Indonesia & Asia Pacific
Key Drivers for IT Strategy 2017-2020

2. eCommerce Sharing Economy
Social Business Telco
Fintech startup
Government
Utilities
High Unbanked People
Internet or Data Services
Smartphone Penetration
Cash Management Sytem
4 Pillars of the 3rd Platform
5 Dimensions of Transformation
6 Innovation Accelerators
High Cash Payment
Other Industry
Social Behavior
Financial Services
Industry
Research Document:
IDC #AP42818817
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3. IDC Tracker - Smartphone Growth in Indonesia
6,811,875
13,952,047
25,032,484
29,308,135
30,331,233
17%
105%
79%
17%
3%
2012 2013 2014 2015 2016
Indonesian Smartphone Growth (units)
“Smartphone sales in
Indonesia market always
grows from 2012 to 2016 with
CAGR 45%.”
“Smartphone usage becomes
mature and ready for Digital
Banking penetration through
mobile apps.”
Source: IDC Tracker, 2017

4. 3rd Platform
In just a few short decades,
information technology (IT) has moved
from the back office, IDC's 1st
Platform, to the front office, the 2nd
Platform........
………and finally, embedded
itself into nearly every aspect of
people's business and personal
lives, fueled by 3rd Platform
technologies including mobile,
social business, cloud, and big
data and analytics (BDA).
1st Platform
2nd Platform

5. IT Spending for 3rd Platform in Asia Pacific (excluding Japan)
9,670
10,323
12,154
14,195
16,186
18,227
7%
18%
17%
14%
13%
2015 2016 2017 2018 2019 2020
IT Spending for 3rd Platform (USD million) - APeJ Financial
Software
Services
Hardware
Total
Growth
“IT Spending for 3rd Platform
in Asia Pacific (exluding
Japan) Financial Services
Industry is predicted to grow
from 2015 to 2020 with CAGR
14%.”
“Digital Transformation
continues along with the
growth of the 3rd platform
technologies spending”
Source: IDC IT Spending Guide, 2017Note: 2015 is historical data. 2016 and later is forecasted data.

6. DIGITAL TRANSFORMATION (DX) FRAMEWORK
Leadership
Transformation
Omni-Experience
Transformation
Information
Transformation
Operating Model
Transformation
WorkSource
Transformation
“Digital Transformation
is a journey which an
organization must have
a framework for their
reference.”

7. DIGITAL TRANSFORMATION - FOCUSED AREAS

8. Digital Transformation (DX) Research
± 1,500
research documents
IDC delivers research and publishes reports at
www.idc.com

9. Leading Digital Transformation by 3 Dimensions
“Creating an
organization that can
deliver on the promise
of digital transformation
(DX) for their
enterprises…. “

10. FutureScape: Financial Services Industry in Asia Pacific
2018, APEJ
will see a
25%
increase
in mobile
payments
using
near-field
communi-
cation
(NFC).
01 By 2019,
cloud
adoption
will
reduce
infrastruc-
ture
spend by
20% among
top-tier APEJ
banks.
02 By 2019,
usage-based
insurance
(UBI) enabled
by internet of
things (IoT) will
account for at
least 25% of
the APEJ
vehicle
insurance
market and 5%
of the APEJ
home
insurance
market.
03 By 2019,
virtually every
wealth
management
and capital
markets firm
will build or
license a
robo-advisor
platform or
leverage
artificial
intelligence
(AI) to manage
funds.
04

11. MaturityScape: DX for Banking & Insurance
The enterprise strategy is
to use DX to transform
markets and customers
by creating new business
models and
product/service
experiences.
DX initiatives are
tactical and
disconnected from
enterprise
strategy.
Digital Transformer: Business & IT are
integrated and synergisctic. Planning &
Development are agile to deliver digitally
enabled product, services and experiences.
“Maturity Levels
research drives the
Roadmap for Digital
Transformation
Journey” - IDC

12. Next 12 months
➢ Digital Transformation
Framework
➢ Online Payments
products and services
12 – 24 months
➢ Fintech Sandbox
➢ Four Pillars of the 3rd
Platform
24 – 36 months
➢ CRM implementation
➢ Six Innovation
Accelerators
IDC recommends
several actions for
DX journey..........
Expand the use of
incubators and DX
innovation teams within
the IT organization —to
gradually transform the
overall Corporate
Innovation Culture.
Development a culture of
experimentation, risk, and failure
tolerance.
Development
Key Milestones:
Delivery
• Research
• Employee Engagement
• Filtering
• Prioritization
• Classifying
• Integrating
• Incorporating
• Measuring

13. For More
Information
• Handojo Triyanto
• htriyanto@idc.com
• https://www.linkedin.com/in/handojotriyanto/