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© 2017 Global Center for Digital Business Transformation. All rights reserved. 1
Traversing the
DIGITAL VORTEX
How Today’s Leaders Can Beat Disruptive
Competitors At Their Own Game
Lux Rao
Director & Leader
Digital Transformation Office, Cisco lrao2@cisco.com
Security Big	Data IoT Cloud Mobile
100%
of	business	networks	
have	traffic	to	malware	
sites
84%
believe	big	data	
delivers	high	
business	value
65%
of	CEOs	
consider	IoT
to	be	strategic
57%
of	organizations	
will	use	cloud	
solutions
81%
of	CEOs	
believe	mobility	
is	strategic
Cisco	Digital	Network	Architecture	Readiness	Model;	Sources:	PWC:	18th Annual	Global	
CEO	Survey	and	IDC	Infobrief,	2015
Communications Are Being Redefined
Source: World Bank, USDA. Gov, Cisco Analysis
Companies Must Reinvent Their Operating Models
50 B
Devices Connected
by 2020
1.7 T
IoT Market
Spending
in 2020
1 M
Current Daily
Bitcoin
Transactions
2 PB
Data produced
by autonomous
vehicle
IOT is Accelerating
Source: “The Motley Fool”
50% of all New Cellular Connections in the
first Quarter of 2016 were M2M & Cars
TheDynamicsof
DIGITAL
•“Name	an	industry,	and	odds	are	
it’s	being	disrupted	by	competitors	
deploying	digital	technology.	
• Digital	Vortex	is	a	research-based	look	
at	this	phenomenon,	as	well	as	a	savvy	
guide	to	how	your	company	can	gain	
the	nimbleness	required	
in	this	new	environment.”
Daniel	Pink
Best-selling	Author,			Drive	and To	Sell	Is	Human
Digital Disruption Is the #1 CXO Concern
Two-thirds of CEOs (66%) see more threats facing
their businesses today than three years ago.
Source: PwC 19th Annual Global CEO Survey
Source: IBM Global C-Suite Survey, 2016
All CxOs identified the risk of industry disruption
caused by an unlikely competitor outside their
industry as a primary competitive threat.
“ ”
“ ”
© 2017 Global Center for Digital Business Transformation. All rights reserved. 8
Quantitative survey of
globally
In-depth discussions with
and senior executives
Analysis of
to understand
mechanics of how and
why disruption occurs
Workshops and events
with
on their
challenges and approaches
Digital Disruption Will Reshape
Markets and Industries
Market incumbents
displaced40%
Companies actively
responding1 in 4
Expected time
to disruption*3YEARS
source: Global Center for Digital Business Transformation 2015
*Disruption = Substantial change in
market share among incumbents
3.7average
2.5
4.3
more
companies
at risk
fewer
companies
at risk
Oil & Gas
CPG & Manufacturing
Hospitality /Travel
Retail
Media & Entertainment
Telecommunications
Financial Services
Education
Healthcare
Technology Products
& Services
Utilities
Pharmaceuticals
Combinatorial Disruption
• Lower fare per ride
• No tipping
• Intelligent demand-based
pricing (e.g., surge)
• No hailing (waiting)
• No cash, no transaction time,
automatic billing
• Choice of vehicle type
• Customized experience (e.g.,
Spotify playlist on car radio)
• Real-time status of car arrival
• Safety / visibility / location
tracking
• Rating system and incentives
• Self-driven offerings
• Pervasive in all major cities
• Global presence, consistent
process
• New employment opportunities
(not just for passengers)
• Add-on services (UberEATS)
• Cross-platform integration
(Amazon Echo, Google Maps,
United Airlines)
• SDK for developer ecosystem
• Moving into adjacent industries
(logistics with Volvo, OTTO)
$ Platform ValueExperience ValueCost Value
Create a better Experience
…for Customers AND Workers
Simplification Automation Optimization Scale
Simplification
Rs 65
2 Minutes
Uber
One Button
Process
Permit
Smart City
One Button
A/c Opening
Loan
Finance
Zero Button
Check-In
Hospitality
Zero Button
Auto
Schedule
Automotive
Optimize everything
…cost, speed, precision
© 2017 Global Center for Digital Business Transformation. All rights reserved. 18
Hyperawareness
A company’s ability to
detect and monitor
changes in its environment
Informed Decision-Making
A company’s ability to make the
best decision in a given
situation
Hyperawareness
A company’s ability to
detect and monitor
changes in its environment
Informed Decision-Making
A company’s ability to make the
best decision in a given
situation
Fast Execution
A company’s ability to carry out
its plans quickly and effectively
Digital Business
Agility enables
companies to
counter and
capitalize on
digital disruption
Companies Must Build Digital Business Agility
Digital Transformation is the application of information technology
to implement innovative business models, improved customer
experience and/or operational improvements that have the potential
to Disrupt entire industries.
What is Digital Transformation?
Create New
Customer Experience
Increase Loyalty
Increase Revenue
Transform Processes
and Business Models
Respond Faster to Market
Changes
Efficient Operations
Empower Workforce
Efficiency and Innovation
Increase Productivity
Attract and Retain Talent
Digital Transformation Now !
Digital Transformation requires a
Digital Ready Infrastructure
Simple Intelligent Automated Secure
Millions of Connections
Dynamic and Distributed
Interconnected Processes
Open Ecosystems
Digital Engagements
Contextual and Adaptive
Predictive and
Prescriptive
Numerous Tasks due to
Scale
Rapidly Changing
Business Needs
Demands of Digital Ready Infrastructure?
Blueprint for Digital Business
1 Enable New Business Models Outcome Focus
2 Simplify Everything – IT as a Service Simplicity
3 Build Modular IT and Automate Agility
4 Deliver Data to Drive Business Decisions Insights
5 Continuous Delivery Innovation
6 Security Everywhere Security
How can we Compete and Win in the Digital World
ECOSYSTEMS & PARTNERSHIPS
Lux Rao
Director & Leader
Digital Transformation Office, Cisco
lrao2@cisco.com

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Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transformation, Cisco Systems

  • 1. © 2017 Global Center for Digital Business Transformation. All rights reserved. 1 Traversing the DIGITAL VORTEX How Today’s Leaders Can Beat Disruptive Competitors At Their Own Game Lux Rao Director & Leader Digital Transformation Office, Cisco lrao2@cisco.com
  • 2. Security Big Data IoT Cloud Mobile 100% of business networks have traffic to malware sites 84% believe big data delivers high business value 65% of CEOs consider IoT to be strategic 57% of organizations will use cloud solutions 81% of CEOs believe mobility is strategic Cisco Digital Network Architecture Readiness Model; Sources: PWC: 18th Annual Global CEO Survey and IDC Infobrief, 2015
  • 3. Communications Are Being Redefined Source: World Bank, USDA. Gov, Cisco Analysis Companies Must Reinvent Their Operating Models 50 B Devices Connected by 2020 1.7 T IoT Market Spending in 2020 1 M Current Daily Bitcoin Transactions 2 PB Data produced by autonomous vehicle
  • 4. IOT is Accelerating Source: “The Motley Fool” 50% of all New Cellular Connections in the first Quarter of 2016 were M2M & Cars
  • 7. Digital Disruption Is the #1 CXO Concern Two-thirds of CEOs (66%) see more threats facing their businesses today than three years ago. Source: PwC 19th Annual Global CEO Survey Source: IBM Global C-Suite Survey, 2016 All CxOs identified the risk of industry disruption caused by an unlikely competitor outside their industry as a primary competitive threat. “ ” “ ”
  • 8. © 2017 Global Center for Digital Business Transformation. All rights reserved. 8 Quantitative survey of globally In-depth discussions with and senior executives Analysis of to understand mechanics of how and why disruption occurs Workshops and events with on their challenges and approaches
  • 9. Digital Disruption Will Reshape Markets and Industries Market incumbents displaced40% Companies actively responding1 in 4 Expected time to disruption*3YEARS source: Global Center for Digital Business Transformation 2015 *Disruption = Substantial change in market share among incumbents 3.7average 2.5 4.3 more companies at risk fewer companies at risk Oil & Gas CPG & Manufacturing Hospitality /Travel Retail Media & Entertainment Telecommunications Financial Services Education Healthcare Technology Products & Services Utilities Pharmaceuticals
  • 10. Combinatorial Disruption • Lower fare per ride • No tipping • Intelligent demand-based pricing (e.g., surge) • No hailing (waiting) • No cash, no transaction time, automatic billing • Choice of vehicle type • Customized experience (e.g., Spotify playlist on car radio) • Real-time status of car arrival • Safety / visibility / location tracking • Rating system and incentives • Self-driven offerings • Pervasive in all major cities • Global presence, consistent process • New employment opportunities (not just for passengers) • Add-on services (UberEATS) • Cross-platform integration (Amazon Echo, Google Maps, United Airlines) • SDK for developer ecosystem • Moving into adjacent industries (logistics with Volvo, OTTO) $ Platform ValueExperience ValueCost Value
  • 11. Create a better Experience …for Customers AND Workers Simplification Automation Optimization Scale
  • 18. © 2017 Global Center for Digital Business Transformation. All rights reserved. 18 Hyperawareness A company’s ability to detect and monitor changes in its environment Informed Decision-Making A company’s ability to make the best decision in a given situation Hyperawareness A company’s ability to detect and monitor changes in its environment Informed Decision-Making A company’s ability to make the best decision in a given situation Fast Execution A company’s ability to carry out its plans quickly and effectively Digital Business Agility enables companies to counter and capitalize on digital disruption Companies Must Build Digital Business Agility
  • 19. Digital Transformation is the application of information technology to implement innovative business models, improved customer experience and/or operational improvements that have the potential to Disrupt entire industries. What is Digital Transformation?
  • 20. Create New Customer Experience Increase Loyalty Increase Revenue Transform Processes and Business Models Respond Faster to Market Changes Efficient Operations Empower Workforce Efficiency and Innovation Increase Productivity Attract and Retain Talent Digital Transformation Now !
  • 21. Digital Transformation requires a Digital Ready Infrastructure
  • 22. Simple Intelligent Automated Secure Millions of Connections Dynamic and Distributed Interconnected Processes Open Ecosystems Digital Engagements Contextual and Adaptive Predictive and Prescriptive Numerous Tasks due to Scale Rapidly Changing Business Needs Demands of Digital Ready Infrastructure?
  • 23. Blueprint for Digital Business 1 Enable New Business Models Outcome Focus 2 Simplify Everything – IT as a Service Simplicity 3 Build Modular IT and Automate Agility 4 Deliver Data to Drive Business Decisions Insights 5 Continuous Delivery Innovation 6 Security Everywhere Security
  • 24. How can we Compete and Win in the Digital World ECOSYSTEMS & PARTNERSHIPS
  • 25. Lux Rao Director & Leader Digital Transformation Office, Cisco lrao2@cisco.com