1) The document discusses strategies for digital transformation inspired by Sun Tzu's The Art of War, citing several of his quotes and principles. 2) It analyzes strategies of the US, China, Estonia, Singapore, Israel, and Japan as examples and discusses common success factors. 3) It argues that Europe needs a common vision and policy to foster innovation through infrastructure, education, skills development, and public-private partnerships in order to achieve strong growth in the digital economy.

1. RESHUFFLING THE DIGITAL DECK
Battlefields and strategies
…inspired by “Sun Tzu”
Gabrielle Gauthey,
VP Investment and Local Development
Caisse des Dépôts

2. “If you know the enemy and know yourself you need not fear the results
of a hundred battles.”
Sun Tzu (360 B.C.) - The Art of War - 孫子兵法

3. 谁知道他什么时候可以打，什么时候不能，将取得胜利
He who knows when he can fight and when he cannot, will be victorious. Sun Tzu
#1 Today’s battlefield

4. 他们抓住的机会倍增
Opportunities multiply as they are seized. Sun Tzu
#2 Tomorrow’s battlefield
5G
Blockchain
AI
Augmented
Reality
Virtual Reality
IoT
Platf.
Digital
Twin
Three trends
AI Everywhere
Transparently
immersive
Experiences
Digital Platforms

5. 无敌在于防守; 在攻击中获胜的可能性
Invincibility lies in the defense; the possibility of victory in the attack. Sun Tzu
#3 First strategy example : US & Silicon Valley…
SuccessCreation Innovation
A LIVING
ECOSYSTEM
SKILLS
A CULTURE OF
OPTIMISM
CAPITAL
RISK

6. ✓ Politically organized
✓ Economically fostered
✓ Part of a “Conquest” strategy
#4.1 Second strategy example : China and Telecom equipments…
A “CHINA INC.” STRATEGY
胜利的战士首先赢，然后去战争，而战败的战士则先打仗再争取胜利
Victorious warriors win first and then go to war,
while defeated warriors go to war first and then seek to win. Sun Tzu
Incubation in
China
for an exponential
growth and a
successful path
through a learning
curve
Targeting
emerging
markets first and
act as
challengers in
mature markets
Push for price
commoditization
while offering quality
solutions
Penetrate Tier1
Players
and become a
reference in
Innovation
1 2 3 4

7. 假装自卑，鼓励他的傲慢
Pretend inferiority and encourage his arrogance. Sun Tzu
#4.2 Second strategy example : China BATX…
425 (*)
528 (*)
441 (*)
520 (*)
(*) Figures from 11/02/2017

8. 效果很好，可以用小力量来实现
“Great results, can be achieved with small forces ” Sun Tzu
#5.1 Third strategy example : investment in public policies to
make the country's digital transition a reality
E-COUNTRY : E-ESTONIA

9. 想打架的人首先要计算成本
“who wishes to fight must first count the cost” Sun Tzu
#5.2 Third strategy example : investment in public policies to
make the country's digital transition a reality
SMART NATION : SINGAPOUR
Digitally-enabled population
Skilled tech talent
Vibrant Tech Industry + startup
Seamless & pervasive connectivity
Trusted regulation framework
87% household have access to
broadband
8.800 datasets
146.000 Telco/digital professionals
1,7 b$ venture capitalists
Labs, accelerators
~30 service providers
Wireless @SG

10. 因此，战斗中的专家将敌人移动，不被他所感动
“Thus the expert in battle moves the enemy, and is not moved by him.” Sun Tzu
Focus on areas of excellence :
cyber-defense, surveillance, security, health
#6 Fourth strategy example : Focus strategy
START-UP NATION : ISRAEL INNOVATION NATION : JAPON
Leading in innovation :
Gaming, robotics, AI, Big Data, IOT
• Promoting R&D
• Foster Intellectual
Property
• Industry-academia linkage
• Focus

11. 他将会赢得他们的军队在同一个队伍中的动力
He will win whose army is animated by the same spirit throughout all its ranks. Sun Tzu
#7 Common success factors in all these strategies
Best of Breed Infrastructures
Education and talent attraction
Unity / Hunt by pack
Funds / Equity
Virtuous ecosystems
(Pragmatic) Policies
fostering innovation

12. 让你的朋友靠近，让你的敌人更近
Keep your friends close and your enemies closer. Sun Tzu
#8 Food for thoughts / Where is Europe ?
Disruptive changes ahead
Clash of giants – competition between integrated
giant carriers, increased competitive threats from OTT
Generative Bazaar – Scattered initiatives, lack of
common policy vision
Market Shakeout – Structural separation, growth through
premium connectivity sold to third parties + organized conquest
US scenario
APAC scenario
China
Europe scenario ?
A return to strong growth in Europe requires the ICT industry +
countries to act collectively.

13. 孫子兵法 – The opportunity to secure ourselves against defeat lies in our own hands,
but the opportunity of defeating the enemy is provided by the enemy himself.
Sun Tzu
#8 Food for thoughts / Recommendations and what does that
mean for us ?
HAVE A VISION
BUILD ON OUR ASSETS
BE CREATIVE AND BOLD
BE UNITED
Infrastructure / Services
Europe
Territories
Young people
Education / Training / Formation
Skills
Ecosystem & Champions
New models
“Common game”
Hunt by pack

14. “Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat”
Sun Tzu (360 B.C.) - The Art of War