Digital Trends which will change ALL Industries Stefan Heilmann IEG - Webrazzi Summit 2015

1. M&A | FINANCING | CORPORATE ADVISORY
IEG – Investment Banking Group
8 Digital Trends That Will Change
All Industries
22. October 2015

2. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 2
8
Digital
Trends
Infra-
structure
Free-Ride
Disrup-
tive User
Interface
Mobile ³
Action-
able Data
Digital
Health
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
8 Digital Trends That Change All Industries

3. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 3
● Everything (value chain) is run by
code
● Enabling technologies build the new
“industrial revolution” (Industry 4.0
= low capex, cloud software,
security, open source, multiple
platform integration, e.g. IFTTT,
Zapier, etc.)
● Examples: SaaS (e.g. Slack), DaaS
(e.g. Excelate), HomeTech (e.g.
Nest), CRM (e.g. RelateIQ), Cloud
Services (e.g. Soundcloud),
innovative data centres (e.g.
Amazon Web Services), etc.
Tech Rules
8
Digital
Trends
Tech
Rules
Trend #1 – Tech Rules

4. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 4
● Smartphone replaced PC, Laptop,
tablet = Mobile Only Developments
● New solution for mobile networking,
interactivity, commerce, enterprise,
products, content, ads, monetization
services
● Mobile devices will run enterprises,
homes and private consumption
(e.g. WeChat, Nest, Philips Hue,
Number 26, Facebook)
LIFECHANGER
Mobile Mobile Mobile
8
Digital
Trends
Mobile ³
Tech
Rules
Trend #2 – Mobile ³

5. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 5
● Ownership notion changes
dramatically (e.g. books, cars, data,
music, real estate, etc.)
● Examples: Car2Go, Airbnb, Spotify,
Dresscoded, WeWork, Auxmoney,
etc.
Sharing & Collaboration
8
Digital
Trends
Mobile ³
Tech
Rules
Sharing
&
Collabo-
ration
Trend #3 – Sharing & Collaboration

6. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 6
● New user experiences (UX) for
mobile devices
● UX as instrument of problem solving
(user manual is dead)
● Intelligent eco-systems = UX 2.0
(VW & Uber & Allianz)
● Examples: Tinder, RelateIQ,
LinkedIn vs. Xing, etc.
Disruptive User Interfaces (UI)
8
Digital
Trends
Disrup-
tive User
Interface
Mobile ³
Tech
Rules
Sharing
&
Collabo-
ration
Trend #4 – Disruptive User Interface

7. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 7
● Google’s algorithms refocus from
keywords to content publishing
● Rich media grows fast & w/out limits
(photos, videos, sound, etc.)
● Corporate & digital marketing
professionals rethink in favour of
content (e.g. Buzzfeed vs. CBS)
● Content consumption to be
revolutionized (e.g. Netflix, C3, The
Whistle Sports Network)
Content is King
8
Digital
Trends
Disrup-
tive User
Interface
Mobile ³
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
Trend #5 – Content is King

8. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 8
● Transformation of big data into
smart or actionable data (23% of
internet data accessible for
analytics; 3% tagged)
● Access authorization remains key
● Examples: Palantir, Dataminr,
Hootsuite, deltamethod, Excelate,
etc.
Actionable Data
8
Digital
Trends
Disrup-
tive User
Interface
Mobile ³
Action-
able Data
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
Trend #6 – Actionable Data

9. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 9
● Functional food = life enhancing
● Remote diagnostics & health
monitoring services
● Continuous body stats devices,
clothing, etc.
● Nutrition analytics (e.g. Vessyl)
● Examples: iWatch, Jawbone, etc.
Digital Health
8
Digital
Trends
Disrup-
tive User
Interface
Mobile ³
Action-
able Data
Digital
Health
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
Trend #7 – Digital Health

10. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 10
● Asset-light capitalization of existing
infrastructure (DTAG vs. Google)
● Examples: Skype, Number 26, etc.
Infrastructure Free-Ride
8
Digital
Trends
Infra-
structure
Free-Ride
Disrup-
tive User
Interface
Mobile ³
Action-
able Data
Digital
Health
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
Trend #8 – Infrastructure Free-Ride

11. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 11
8
Digital
Trends
Infra-
structure
Free-Ride
Disrup-
tive User
Interface
Mobile ³
Action-
able Data
Digital
Health
Tech
Rules
Sharing
&
Collabo-
ration
Content
is King
8 Digital Trends That Change All Industries
facebook.com/Heilmann1968
twitter.com/superheili
linkedin.com/in/stefanheilmann
Stefan Heilmann
+49 (172) 612 4567
sh@ieg-banking.com

12. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 12
1 GPS 2 GPRS 3 Internet Connection
● GPS sends precise information on location of field and guides the machines
● Machines send real time data to the Webserver via GPRS
● CLAAS TELEMATICS Webserver forwards information to the customer and CLAAS
Tech Rules – CLAAS at the Forefront of Industry 4.0

13. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 13
Tech Rules – Mobile Multiple Platform Integration

14. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 14
1993
2013
Mobile ³ - Mobile Has Changed the Way We Live

15. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 15
Revenue in
USDm
Non-Mobile Advertising Mobile Advertising Payments
3,851
2012
0
500
1000
1500
2000
2500
3000
3500
4000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014
Mobile ³ - Mobile Ads Account for 98 % of Facebook

16. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 16
Sharing & Collaboration – New Definition of Ownership
December 2014 – $ 5 Billion July 2015 – $ 10 Billion

17. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 17
Porsche 911 Porsche 911
Tesla S Cockpit
10 Buttons 51 Buttons Few
Mechanical Engineering Mobile Device
Volvo XC90
1971 2014 2015
Disruptive UI – Automotive Industry
2020
None
Porsche

18. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 18
Disruptive UI – Auto Mobile = Mobile Device
2020
Porsche 2020
Mercedes 2020
Audi 2020

19. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 19
● Dating is dirty = Fast
● Nobody likes to be disliked =
Positive Matchmaking
● >50 million users worldwide
Tinder
Disruptive UI – UX Solves Dating Issues

20. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 20
3 Seconds per Dataset
RelateIQ
Disruptive UI – UX to Simplify the Complex Data Integration

21. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 21
User-generated special-interest
content, specifically for millenials =
3bn+ video views on Youtube (since
2006)
14M
subscribers
29M
likes
5M
followers
9M
followers
3,8M
followers
2,7M
followers
Content is King – The Whistle Sports Network = The Millenials

22. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 22
Monthly US Reach (18-34 yrs old)
Fox News CNN Bravo AMC CW MTV Comedy
Central
FX NBC CBS
BuzzFeed
Viewers
50M
38M
25M
13M
0
Source: Business Insider 2015
Content is King – BuzzFeed Bigger Than CBS

23. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 23
Dataminr
Actionable Data – The Future of Predictive News

24. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 24
Today
Tomorrow
(1,900 Software
Engineers)
Data Collection, Ranking &
Aggregation
Standard
Product
Solving Global
Problems
Smart
Solutions
Actionable Data – Tech Biz Models Focus on Solutions

25. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 25
Vessyl
Digital Health – Functional Diagnostics

26. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 26
Wearables Mobile Diagnostics Functional Foods
Individual Health
Insurance Solutions
Digital Health – Functional Food

27. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 27
ATM 2.0
Offline-Cash Payment 2.0 / ATM 2.0
Infrastructure Free-Ride – Disruption of Cash Payments

28. 8 Digital Trends Presentation– October 2015 – Version 1.0 Page 28
Payment via complicated number
Account number + Bank Identifier Code
Introduction of IBAN
Payment via Chat and contact name (as account
number)
Introduction of WeChat Payment
Infrastructure Free-Ride = Mobile Reach + Infrastructure Access