This document provides an overview of key trends and challenges for the ICT sector in Europe in 2012 according to independent analysts. It identifies issues like the struggling European economy, businesses needing to embrace mobility and intelligence, and the public sector facing growing challenges. Successful ICT vendors will need to focus on fast growing market segments, vertical markets, and new service models to deal with these issues. The document also examines trends like deflationary pressures from technology, businesses finding new efficient ways to operate, and the post-PC era with consumers accessing information from various non-PC devices.

1. Looking
ahead
to
2012
ICT
Research
Network

2. Looking
ahead
• Europe
-­‐
economy,
ci@zens,
policies
• Business
-­‐
surviving
defla@on,
embracing
mobility,
crea@ng
intelligence
• Technology
mandate
-­‐
service
orienta@on,
footprint
expansion,
sourcing
outcomes
• Industrial
revolu@on
-­‐
local
strength,
newcomers
from
adjacencies,
lawyers
invade
• Public
sector
challenges
grow
30
December
2011
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Research
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3. Contributors
The
following
independent
analysts
and
firms
have
contributed
to
this
document:
• Pim
Bilderbeek,
The
METISfiles,
Amsterdam.
e:pim@theme@sfiles.nl
• Jaime
Garcia
Cantero,
Madrid.
e:jaimegarciacantero@gmail.com
• Claus
Egge,
clausegge.com,
London.
e:clausegge@clausegge.com
• Mar@n
Hingley,
ITCandor,
London.
e:mhingley@itcandor.com
• Simona
Macellari,
The
Innova@on
Group,
Milan.
simona.macellari@theinnova@ongroup.it
• Roberto
Masiero,
The
Innova@on
Group,
Milan.
roberto.masiero@theinnova@ongroup.it
• Puni
Rajah,
The
Governance
Board,
London.
puni@thegovernanceboard.org
• Peter
Perregaard,
Copenhagen.
peter.perregaard@gmail.com
• Carsten
Schmidt,
HENRY
Corpora@on,
Copenhagen.
cs@henrycorpora@on.com
• Ezio
Viola,
The
Innova@on
Group,
Milan.
ezio.viola@theinnova@ongroup.it
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2011
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4. The
Euro
Crunch
bites
ICT
sales
in
EMEA
• Our
industry
tends
in
general
to
grow
faster
than
GDP,
due
to
automa@on
and
digi@sa@on:
– however
ITC
sales
can
fall
even
faster
than
GDP
in
@mes
of
recession.
We
saw
falls
in
both
2001-­‐3
and
2008-­‐9
downturns
and
you
should
expect
the
same
in
2012.
– Economic
news
has
been
dire
in
2011
as
countries
struggle
with
sovereign
debt,
especially
in
southern
ones
using
the
Euro
– On
the
posi@ve
side
there
are
signs
of
modernisa@on
in
many
African
states,
with
vendors
building
new
offices
in
the
hope
of
winning
early
business.
– We
will
also
see
new
business
from
disrupted
countries
stabilising
and
becoming
more
democra@c.
– Business
spending
is
likely
to
be
less
affected
than
in
2008,
largely
because
there
can
be
few
surprises
likely
to
result
in
a
sudden
loss
of
confidence.
– Consumer
spending,
on
the
other
hand,
will
not
be
countervailing
as
it
was
in
2008
–
the
reduc@on
in
household
budgets
are
too
palpable.
By:
Mar(n
Hingley
30
December
2011
ICT
Research
Network
4

5. Causes,
effects
and
vicious
cycles
Austerity
Defla@on
Successful
ICT
vendors
will:
measures
• Iden@fy
and
focus
on
fast
growing
ICT
market
segments,
ver@cal
markets
and
new
services
models
(incredibly
enough,
some
of
the
largest
ICT
Vendors
do
NOT
have
any
focused
mobile
strategy
yet!)
Lagging
technology
Disinvestment
literacy
By:
Roberto
Masiero
30
December
2011
ICT
Research
Network
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6. Demographic
dividend
Successful
ICT
vendors
will:
• tackle
this
flourishing
but
fragmented
market
by
addressing
Delayed
this
issue
both
in
terms
of
offering
re@rement
and
delivery
model;
• Focus
on
economic
sustainability
of
projects:
sound
business
Greater
reliance
on
planning,
public
and
private
technology
partnerships
as
well
as
modular
approaches
and
sound
economic
models
will
make
the
difference
between
a
promising
idea
and
a
Healthcare
innova@on
feasible
project
• Carefully
analyse
governance
models
to
ensure
compa@bility
with
processes
and
organiza@ons
By:
Simona
Macellari
30
December
2011
ICT
Research
Network

7. Embracing
defla@on
Technology
con@nues
to
create
Successful
ICT
vendors
will:
defla@onary
• Be
smart
to
understand
pressures
business
issues
and
benefits
of
their
client
to
iden@fy
their
key
core
capabili@es
• Be
smart
in
helping
their
clients
to
adopt
a
cloud
strategy
and
move
to
a
Businesses
and
cloud
based
delivery
model
governments
find
• Be
clever
in
providing
skills
smarter
ways
to
achieve
results
for
the
innova@ve
with
fewer
enterprise
use
of
consumer
tradi@onal
IT
resources
By:
Ezio
Viola
30
December
2011
ICT
Research
Network
7

8. Enterprise
customers
sehle
into
the
post
PC
era
Consumeriza,on
Successful
ICT
vendors
will:
• In
2011
by
first
,me
in
history
people
• Redefine
their
strategy
accessing
the
Internet
from
a
“non
PC”
for
a
new
world
where
device
(tablets,
smartphones,
TV,
etc)
overpassed
those
accessing
from
PCs
PC
is
not
the
main
interface
for
accessing
informa@on
Transparency
• Learn
from
consumers
• Access
paGerns
render
tradi,onal
market
to
create
organisa,onal
structures
and
business
excellent
user
processes
redundant
experiences
priori@zing
design
and
usability
• Invest
in
innova@on
to
New
budget
sources
address
new
• In
2012
we´ll
con,nue
seeing
strong
growth
environment
in
mobile
markets
like
apps,
mobile
media,
adver,sement
or
gaming
opportuni@es
By:
Jaime
Garcia
Cantero
30
December
2011
ICT
Research
Network
8

9. Organisa@onal
intelligence
is
the
new
holy
grail
Business
as
Successful
ICT
vendors
will:
mobile
• Re-­‐think
their
business
in
terms
of
mobile
services
• Take
advantage
of
informa@on
and
organiza@onal
asymmetries
through
an
Comfort
in
Intelligent
Pervasive
advanced
use
of
the
the
cloud
enterprise
analy@cs
Analy@cs
and
of
the
Social
Networks
• Deliver
their
services
in
Cloud
Social
By:
Roberto
Masiero
fabric
30
December
2011
ICT
Research
Network
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10. Service
oriented
mandate
SO
beyond
architecture
Successful
ICT
vendors
will:
• Embrace
service
oriented
delivery
models
and
pay
Capital
versus
per
use
opera@onal
• Make
their
offer
much
more
flexible
and
loca@on
agnos@c
• Use
financial
tools
to
reduce
customer´s
CAPEX
Sourcing
drivers
By:
Jaime
Garcia
Cantero
30
December
2011
ICT
Research
Network
10

11. Maintenance
gets
new
respect
Successful
ICT
vendors
will:
• Demonstrate
respect
for
customers’
concerns
and
communicate
value
in
maintenance
offerings
• Embrace
social
technologies
Business
to
reduce
cost
of
con@nuity
maintenance
delivery,
and
mandate
pass
on
savings
to
customers
Opera@onal
recognises
technology
maintenance
comes
under
as
cri@cal
ICT
responsibility
New
challenges
to
vendor
maintenance
fees
By:
Puni
Rajah
30
December
2011
ICT
Research
Network
11

12. Data
analy@cs
for
the
pioneers
in
2012
Successful
ICT
vendors
will:
• Stop
focusing
on
the
‘Big’
in
Big
In
2012
data
analy@cs
will
grow
in
order
to
Data
mine
content
in
the
vast
estate
of
corporate
• Instead
drive
the
broad
discussion
storage.
of
analy@cs
By
joining
unstructured
data
located
in
• Content
centric
vendors
decide
to
repositories
across
the
web
businesses
aims
to
lead
in
analy@cs
make
beher
and
faster
decisions.
The
data
pioneers
hope
to
find
first
mover
advantage,
but
the
prac@ce
will
eventually
Volume
become
widely
adopted.
Value
By:
Claus
Egge

13. Sourcing
matures
towards
outcomes
Specialist
skills
Technology
producers
Successful
ICT
vendors
will:
• Align
sales
and
engagement
teams
Internal
resources
to
keep
pace
with
customers
internal
changes
• Re-­‐design
delivery
processes
to
cope
with
smaller
contracts
profitably
By:
Puni
Rajah
30
December
2011
ICT
Research
Network
13

14. Local
players
prove
to
be
more
agile
Successful
ICT
vendors
will:
• Re-­‐posi@oning
becomes
priority
• Enable
and
s@mulate
the
• Consumeriza@on
drives
agenda
growth
of
an
ecosystem
of
new
innova@ve
local
players
• Cloud
providers
• deliver
plaoorms
and
• BPO
stacks
and
brokers
services
for
a
new
wave
of
business
applica@ons
moving
from
• Lower
barriers
to
entry
transac@onal
systems
to
• Compelling
returns
new
engagement,
experien@al
and
personal
fullfilment
systems
By:
Ezio
Viola
30
December
2011
ICT
Research
Network
14

15. Maturing
markets
pave
way
for
newcomers
• Apple
will
lose
it's
dominant
posi@on
in
the
Successful
ICT
vendors
smart
phone
market.
will:
• While
Apple
was
eminent
in
understanding
that
people
wanted
a
device
that
extended
their
• Ensure
cross-­‐plaoorm
personality
rather
than
just
technology,
the
capability
on
mobile
economic
situa@on
in
the
industrialized
world
and
the
growth
in
developing
countries
means
plaoorms
that
there
will
be
much
more
focus
on
price.
This
• Move
to
mobile
as
will
give
Nokia,
Samsung
and
others
a
chance
to
fast
as
possible
re-­‐define
their
posi@on
in
the
smart
phone
marked
and
take
share
from
Apple.
• This
will
lead
to
an
explosion
of
new
companies
that
will
develop
Apps
to
more
plaoorms
trying
to
capitalize
on
the
explosion
of
devices
on
Windows
and
Android.
And
applica@ons
will
become
more
"business-­‐like"
as
more
users
buy
for
economic
reasons
rather
than
social.
By:
Peter
Perregaard
30
December
2011
ICT
Research
Network
15

16. The
lawyers’
bill
Patent
wars
Successful
ICT
vendors
will:
• The
industry
misses
opportuni@es
as
management
• accept
legal
counsel
energy
is
distracted
by
legal
issues
and
rising
costs
as
part
of
the
ICT
industry
• Co-­‐operate
and
align
An@
trust
along
interest
groups
to
be
more
effec@ve
• Plaoorm
giants
like
Facebook
will
face
increasing
an@-­‐trust
ahen@on
By:
Peter
Perregaard
30
December
2011
ICT
Research
Network
16

17. Digital
Divide
Persists
Trends:
Successful
ICT
vendors
will:
Government
out
of
touch
Support
ci@zens
in
their
quest
for
a
digital
Europe
by
•Ci@zen
services
are
rolled
out
helping
governments
embrace
social
networking,
slower
than
demand
open
data,
and
the
cloud
Policies
fail
to
keep
pace
Show
support
for
net
neutrality.
(if
you
dont,
look
at
•NetNeutrality
what
happened
to
go
daddy
for
suppor@ng
SOPA)
Rising
need
for
con@nuity
Help
par@cipa@ng
actors
communicate
to
each
other
management
about
dependencies
in
the
digital
supply
chain
and
•Who
is
responsible?
beyond.
•Who
will
fund?
By:
Pim
Bilderbeek
30
December
2011
ICT
Research
Network
17

18. Looking
ahead
to
2012
ICT
Research
Network