The document is a presentation about digital disruption in the IT industry. Some of the key points summarized are: - Digital transformation is bringing IT to the center of business strategy and requiring new business imperatives like customer centricity, agility, and data-driven decision making. - There will be new market segments and growth areas, new players and changing ecosystems, and a shift in IT spending from legacy to growth technologies like cloud, analytics, mobility, and more. - Traditional IT providers will have to adapt to new consumption patterns, address new decision makers like CMOs in addition to CIOs, and potentially partner with or acquire new types of players like digital agencies.

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

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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

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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

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Customer centricity is a key
business imperative
Businesses in every industry have to fundamentally
reshape their strategies towards the empowered customer
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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

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Digital transformation
The need to redefine value proposition,
technology strategy and operational model
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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

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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.
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Agility & Innovativeness
Workplace environments today are not well suited for this!
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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

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

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Data-driven decision making
Machine-generated data will dwarf human-generated data
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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

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IT moves from being a support
function to the center of business
strategy

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Disruption in the IT industry

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We expect significant shifts in IT spending:
From legacy to growth IT
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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

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New consumption patterns & target groups
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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

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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

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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

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“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!
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21. © PAC
Digital transformation market segments
(narrow view)
Digital
customer
experience &
service
Digital
content &
applications
Digital sales
& commerce
Digital
marketing
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Digital
integration
platforms
Software
Services
Digital
operations and
management
Digital
consulting
Digital
technology
implementation
Digital
technology
integration
2014

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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%

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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
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Digital
integration
platforms

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Growth areas in digital transformation
IT services by type
Digital
consulting
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• 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

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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
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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
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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
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info-france@pac-online.com
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2014