A Creative Approach to Digital Transformation

A CREATIVE APROACH TO
DIGITAL TRANSFORMATION

CRA: IOT ADVISORY SERVICES
CHARLESREEDANDERSON.COM @CRASingapore
VC
FIRMS
TECH
VENDORS
GOVERNMENT ENTERPRISES

AGENDA
INTRODUCTION TO IOT & DX
TRANSFORMATION BEST PRACTICE
THE STATS YOU NEED TO KNOW
1
2
3

MY CHALLENGE

WHAT IS THE INTERNET OF THINGS?

THE EVOLUTION OF IOT
YOUR POTATOES
ARE HERE

IOT: CONNECTING THE VALUE CHAIN

THE IOT DILEMMA
WHAT WE
PROMISE
WHAT WE
DELIVER

SO WHAT IS DIGITAL TRANSFORMATION (DX)?
DIGITAL TRANSFORMATION IS THE CHANGE ASSOCIATED WITH THE
APPLICATION OF DIGITAL TECHNOLOGY IN ALL ASPECTS OF HUMAN SOCIETY.
THE TRANSFORMATION STAGE MEANS THAT DIGITAL USAGES INHERENTLY
ENABLE NEW TYPES OF INNOVATION & CREATIVITY IN A PARTICULAR DOMAIN
RATHER THAN SIMPLY ENHANCE AND SUPPORT TRADITIONAL METHODS.

10
DX INVOLVES MORE THAN TECHNOLOGY
CUSTOMER EXPERIENCE
TRANSFORMATION
OPERATING & BUSINESS
MODEL TRANSFORMATION
STRATEGIC/LEADERSHIP
TRANSFORMATION
WORKFORCE
TRANSFORMATION
INFORMATION & DATA
TRANSFORMATION
MARKETING
CTO/CIO
STRATEGY
CEO
OPERATIONS

MY TAKE ON DX
11
DIGITAL TRANSFORMATION ISN’T A SINGLE INITIATIVE.
IT’S THE NEW REALITY.

BUZZWORDS GO MAINSTREAM
SURVEY UPDATED MAR 2018
0%
25%
50%
75%
100%
NOT FAMILIAR HEARD OF IT, NOT SURE WHAT IT IS BASIC UNDERSTANDING UNDERSTAND THE CAPABILITIES AND LIMITATIONS
HOW FAMILIAR ARE YOU WITH THESE TECHNOLOGY TRENDS?
SOURCE: ECOSYSTM AND CHARLES REED ANDERSON & ASSOCIATES, MAR 2018, N=1,217
ANALYTICS
PREDICTIVE
ANALYTICS
ARTIFICIAL
INTELLIGENCE
MACHINE
LEARNING
DEEP
LEARNING
EDGE
ANALYTICS
OTHERS
VIRTUAL
REALITY
AUGMENTED
REALITY
BLOCKCHAIN DIGITAL
TWINS

IOT HAS MANY BENEFITS…
OPERATIONAL
STRATEGIC
FINANCIAL
21%
36%
43%
50%
50%
51%
64%
54%
59%
66%
COST SAVINGS - REDUCED HEADCOUNT
COST SAVINGS - PROCESS AUTOMATION
NEW REVENUE STREAMS
COST SAVINGS - REDUCE OPERATING COSTS
IMPROVED DECISION MAKING THRU DATA
ENHANCED INTERNAL PROCESS MONITORNING
WORKFORCE OPTIMISATION
ENHANCED CUSTOMER EXPERIENCE
COMPETITIVE ADVANTAGE
PRODUCT/SERVICE INNOVATION
BENEFITS OF IOT SOLUTION DEPLOYMENTS
HOW?

…BUT CHALLENGES REMAIN
SECURITY
ECOSYSTEM
INTERNAL
14%
25%
32%
34%
41%
56%
44%
56%
10%
25%
37%
57%
LACK OF SR MGMT SUPPORT
ONGOING COSTS (OPEX)
LACK OF USER ADOPTION
SKILLS SHORTAGE
DEFINING BUSINESS REQS
UP FRONT COSTS (CAPEX)
REGULATORY REQUIREMENTS
CYBERSECURITY/PRIVACY
IMMATURE VENDOR LANDSCAPE
LACK OF GLOBAL STANDARDS
LACK OF USE CASES
VENDOR INTEGRATION
WHAT ARE YOUR TOP IOT IMPLEMENTATION CHALLENGES?
POSITIVE
PROJECT RISK
HOW TO
MITIGATE?

COLLABORATION IS ON THE RISE
6%
6%
7%
8%
13%
17%
40%
40%
86%
98%
END USERS CUSTOMERS
END USERS PARTNERS
END USERS INTERNAL
PRODUCT TEAM
MARKETING
STRATEGY
FINANCE
OPERATIONS
SENIOR MGMT
IT
IOT/DX STAKEHOLDER INVOLVEMENT
ONLY 12% OF
IOT INITIATIVES
INVOLVE END USERS
AS STAKEHOLDERS

SUPPORTSECURITY
THINGS
INTEGRATION
DATA
APPSPLATFORMS
NETWORKS
STORAGE
THE VENDOR ECOSYSTEM

WHO IS YOUR PREFERRED PARTNER?
18%
26%
21%
13%
14%
9%
2%
7%
11%
9%
12%
8%
14%
11%
6%
9%
2%
7%
FUTURE
IOT
PROJECTS
(N=843)
EXISTING
IOT
PROJECTS
(N=374)
WHO IS YOUR PRIMARY VENDOR PARTNER FOR IOT INITIATIVES?
ANALYTICS
VENDORS
PLAT
FORM
HARDWARE
VENDORS
CSP’S
DEV/
MODS
NETWORK
EQUIPT
SI’S
OPERATIONAL
TECHNOGY
CLOUD

WHO’S WINNING?
3.2%
3.4%
3.8%
3.9%
3.9%
4.9%
6.9%
7.2%
8.8%
10.9%
SOURCE: ECOSYSTM AND CHARLES REED ANDERSON & ASSOCIATES, MAR 2018, N=841
PRIMARY IOT VENDOR PARTNER BY BRAND
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10

PARTNER CRITERIA
9%
13%
22%
22%
36%
44%
56%
68%
75%
PARTNER NETWORK
GLOBAL COVERAGE
LOCAL KNOWLEDGE/LANGUAGE
EXISTING RELATIONSHIP
END-TO-END PORTFOLIO
PEER RECOMMENDATION
INDUSTRY SPECIFIC EXPERTISE
BRAND REPUTATION
TECHNICAL EXPERTISE
WHAT ARE THE REASONS YOU PREFER A VENDOR?
RISK
OPPORTUNITY

1TAKEAWAY
THE STAKEHOLDER GAP

THE GOOD…
1TAKEAWAY
OF COMPANIES ENGAGE
SENIOR MGMT
AS STAKEHOLDERS
86%SOURCE: ECOSYSTM AND CHARLES REED ANDERSON & ASSOCIATES, MAR 2018, N=841

THE BAD…
1TAKEAWAY
PRODUCT/SERVICE
INNOVATION
COMPETITIVE ADVANTAGE
ENHANCED CUSTOMER
EXPERIENCE
WORKFORCE OPTIMISATION
COST SAVINGS:
REDUCED OPERATING COSTS
PRODUCT TEAM
STRATEGY
MARKETING
OPERATIONS
FINANCE
WHAT BENEFITS
WILL IOT DELIVER?
WHICH STAKEHOLDERS
DO YOU INVOLVE?

AND THE UGLY…
TAKEAWAY 1
OF COMPANIES ENGAGE
END USERS
AS STAKEHOLDERS
12%ONLY

2TAKEAWAY
THE CAPEX CONUNDRUM
67%
33%
IOT COSTS
CAPEX
OPEX
HAVE CONCERNS OVER
CAPEX56%
HAVE CONCERNS OVER
OPEX 25%
THE MARKET WANTS OPEX
BASED SOLUTIONS TO
MINIMISE FINANCIAL RISK

3TAKEAWAY
PARTNER TO WIN
YOU DON’T ONLY “WIN”
BY OWNING THE
CUSTOMER
RELATIONSHIP
YOU ALSO CAN“WIN” BY
PARTNERING
WITH THOSE WHO DO

…SO WHERE ARE THE COOL SOLUTIONS?

IOT WATCH LIST
SUPPLY DEMAND
INVESTMENT

ELDERLY CARE IN ASIA1
SOURCE: UNITED NATIONS, MARSH & MCLENNAN, KEIO UNIVERSITY
$128B/YR IN JAPAN
FOR DEMENTIA TREATMENT
10% OF JAPANESE WILL
LIVE WITH DEMENTIA
547m
60+ IN ASIA
2016
5% OF JAPANESE WILL
LIVE WITH DEMENTIA
2025
$20T SPENT IN ASIA ON
ELDERLY CARE BY 2030
2030
260m
80+ IN ASIA
1.3B
60+ IN ASIA
2050

COLLABORATION IS KEY1

GAME CHANGER: ELDERLY CARE
BEST PRACTICE FOR
COLLABORATION
1
ELDERLY CARE IS JUST
THE BEGINNING
WEARABLES-
AS-A-SERVICE (WAAS)

LORA IN INDIA2
AN IOT-DEDICATED NETWORK COVERING
ALL TIER 1 – 4 CITIES
(400M PEOPLE) BY 2018

SUPPLY MEETS DEMAND
LOW
LABOUR
COSTS
INDIA MARKET DEMAND
TOP 5 INDUSTRIES
RETAIL/WHOLESALE
AGRICULTURE
REAL ESTATE
BANKING/INSURANCE
IT
TECH INDUSTRY SUPPLY
THE IOT ECOSYSTEM
INDIA HAS 5 OF THE
TOP 10 GLOBAL SI’S
2

GAME CHANGER: LORA IN INDIA2
KICK-START SMART
CITIES & IOT IN ASIA
DEVELOPING MARKET
FIRST APPROACH
THE LOCAL
OPPORTUNITY

THE NEXT BIG OPP: PROPTECH3
PROPERTY IS LARGEST GLOBAL
INDUSTRY WORTH USD 217 TRILLION
TECHNOLOGY LAGGARDS WITH LOW
LABOUR PRODUCTIVITY
MASSIVE RISE IN INDUSTRY & VC
FUNDING FOR PROPTECH
SINGAPORE HAS 300+ FINTECH
STARTUPS, ONLY 30 IN PROPTECH
1
2
3
4
CHARLESREEDANDERSON.COM @CRASINGAPORE

PROPTECH ROADMAP
PROVEN TECH EMERGING TECH
PREDICTIVE MAINT
SURVELLIENCE
SUPPLY CHAIN
AUGMENTED REALITY
SMARTWATCHES
ARTIFICIAL INTELLIGENCE
VIRTUAL REALITY
DRONES
BLOCKCHAIN
SMART BUILDINGS
3

GAME CHANGER: PROPTECH3
INDUSTRY-BACKED
VC FUNDS
PROBLEM SOLVING
VS. REV GEN
VC FIRMS NEED A
FINTECH ALTERNATIVE

TAIPEI: A CITIZEN-CENTRIC SMART CITY4
THE SMART CITY DILEMMA
WHERE IS
THE
BUDGET?
WHICH
SOLUTIONS/
USE CASES?
WHO CAN
DESIGN &
DEPLOY?

ECOSYSTEM COLLABORATION4
TAIPEI
SMART CITY
PMO
GOVERNMENT
TECH VENDORSCITIZENS
TOP DOWN: ENGAGED
20 GOV’T AGENCIES
BOTTOM UP: ENGAGED 400+
VENDORS, DELIVERED 120 POCS
IOT EXPERIMENTAL PLATFORM
CAPTURED THE NEEDS
OF 30,000 CITIZENS

GAME CHANGER: SMART CITY STRATEGIES4
FUNDING: LEVERAGE
ASSETS & INFRA
USE CASES: LEVERAGE
THE ECOSYSTEM
RESOURCES: DON’T
BLOCK, FACILITATE

WHAT SETS THESE APART?
THEY SOLVE A PROBLEM1
NEW COLLABORATIONS3
SOLUTIONS, NOT TECHNOLOGY2
IT’S ALL ABOUT
CREATIVITY

CHARLESREEDANDERSON.COM
CRA@CHARLESREEDANDERSON.COM
@CRASINGAPORE
LINKEDIN.COM/IN/CHARLESREEDANDERSON

CHARLES REED ANDERSON is a globally-recognised IoT
industry thought leader who has presented at over 170 industry
events in recent years. He is renowned for his thought-provoking
presentations that not only deliver insights based on the latest
trends, but also provide guidance to both technical- and business-
minded audiences on how to avoid the potential pitfalls of IoT
solution deployment.
Charles has over 25 years’ experience in Asia, Europe and the US
advising technology vendors, enterprise customers and government
organisations on how to leverage emerging technologies and
solutions to drive business and digital transformation initiatives.
Prior to starting his own firm, Charles led the Telecoms, Mobility
and IoT practices for IDC Asia/Pacific and has worked for leading
global operators including BT, Vodafone, and O2 (Telefonica).
Charles sits on the advisory boards of IoT start-ups, industry
associations and event organisations and was the Conference Chair
for both the IoT Asia (March 2017) and Internet of Things World Asia
(October 2017) events.
In addition, Charles is active in Lean In’s Singapore Chapter and is
the co-founder of #HeForShe Asia.
ABOUT CRA

A Creative Approach to Digital Transformation

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