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DIGITAL TRANSFORMATION
MUST BE A 3 WINNERS GAME :
CITIZENS – COMPANIES – STATE
HUGUES L. REY
Louvain La Neuve - 19th of October 2016
NICE TO MEET YOU
1968 – Ixelles (BE) – Married to Geneviève
Solvay Business School 1992
CEO Havas Media Group BeLux (2010)
25 years of experience in communication agencies
(WPP/IPG/Havas)
Active in digital marketing since 1996
Founding father of Interactive Advertising Bureau (IAB) (1998)
Centre Information Media President (CIM):
Internet (2000-2011)
TV (2011-2013)
Strategy (2016 - …)
Teach (Digital) Marketing at SBS (2006 - …) + International MarCom
Active Blogger: I’m A Bridge – www.huguesrey.com
Follow me on twitter + Instagram: @huguesrey
HAVAS MISSION
Our aim is to be the world’s best company
at connecting brands with people using
creativity, media and technology
SOURCES - REFERENCES
• Boston Consulting Group's report on the European Digital Front Runners –
2016
• The state of Digital Transformation 2016 – Altimeter
• The World Bank’s World Development Report 2016 (WDR 2016)
• THE SMARTEST PLACES ON EARTH Why Rustbelts Are the Emerging Hotspots
of Global Innovation BY ANTOINE VAN AGTMAEL AND FRED BAKKER
• The Industries of the Future - Ross, Alec
• The Inevitable: Understanding the 12 Technological Forces That Will Shape Our
Future - Kelly, Kevin
4
DIGITIZATION DRIVES VALUES 4 NATIONS
5Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
KEY DRIVER
FOR GDP
GROWTH
POSITIVE NET
IMPACT ON
JOB CREATION
« JOBS,
JOBS,
JOBS »
275/385 K
BELGIUM
6
Source: Boston
Consulting Group's
report on the
European Digital
Front Runners -
2016
HOW DIGITIZATION DRIVES VALUES
FOR STATE, COMPANIES AND CITIZENS
7Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
8
A. Setting the Scene
TURBULENCE IS THE NEW NORM …
& IS FULL OF OPPORTUNITIES
B. Thesis
THE (ROCKY) ROAD TO SINGULARITY
VS
THE DIGITAL TRANSFORMATION REALITY
C. Conclusion
A 3 WINNERS GAME :
CITIZENS – COMPANIES – STATE
TURBULENCE IS THE
NEW NORM !
… AND IS FULL OF
OPPORTUNITIES
A
BUSINESS MODEL DISRUPTION
BRANDS DEFIANCE
CONSUMER PERCEPTION OF
OPPORTUNITIES DISTORSION
Source: angel.co as on 08/27/2015
SOFTWARE IS DISRUPTIVE
ACROSS ALL THE INDUSTRIES
EXAMPLE OF DISRUPTION :
AUTOMOTIVE INDUSTRY
12
FROM
PRODUCT
(VEHICLE)
TO
SOLUTION
(MOBILITY)
13
The taxi market was
worth 140 millions
dollars in San Francisco.
With car sharing, it’s
1 billion.
Uber makes 500 million !
DISRUPTION IN THE TAXI MARKET
15
M E R C I
UBER
Each shared car
represents a
270 000$ loss for car
manufacturersA report by Jeremiah Owyang
(EVEN) BIGGER DISRUPTION IN THE CAR MARKET
16
DISRUPTING THE WORKFORCE
OF THE CAR MARKET
“PLATFORMS
LIKE UBER ARE
BOOSTING THE
INCOMES OF
MILLIONS OF
AMERICAN
FAMILIES”
DISRUPTION IN THE FAMILIES EARNINGS
AUTOMOTIVE INDUSTRY TRANSFORMATION
18
Waves of Digital Disruption
1995+
Music
Photography
Video Rental
…
2010+
Print Media
TV
Travel
HR
…
2015+
Finance
Healthcare
Automotive
Retail
Education
Telco
…
2020+
All Safe havens
will be subject
to digital
disruption
…
2020 – GLOBAL DIGITAL DISRUPTION
(SOURCE: DEAR MEDIA)
20
INDUSTRIAL
INFORMATION
DIGITAL
DISRUPTION
EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION
EXAMPLE: FINANCIAL SERVICES
EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION
EXAMPLE: FINANCIAL SERVICES
STATE REGULATIONS ?
LAYERS OF INNOVATION AND DISRUPTION
FINANCIAL SERVICES – LENDING CLUB
75%Of brands could
disappear
tomorrow
E. EUROPE
42%
N. AMERICA 22%
LATAM
69%
31%W. EUROPE
MIDDLE EAST
79%
EMERGING ASIA
83%
36%
DEV. APAC
50%
of
brands
are
trusted
globally
TRUST IS WEAK
25
UNDERSTANDING WHAT MATTERS
Personal wellbeing
Exploring how brands tangibly improve
peoples’ lives
Collective wellbeing
And the role they play in society
Marketplace
Going beyond
the product
27
WHY DO PEOPLE CARE ABOUT BRANDS ?
OPPORTUNITIES
VS PERCEPTION DISTORSION
28
Par Delphine Cuny | 03/10/2016, 18:05
THE (ROCKY) ROAD TO
SINGULARITY
VS
THE DIGITAL
TRANSFORMATION REALITY
B
SINGULARITY
THE BEGINNING OF THE BEGINNING
SINGULARITY:
La civilisation
humaine
pourrait
connaître une
croissance
technologique
d'un ordre
supérieur.
ISSUES ?
BUSINESS
ETHIC
POLITIC
The A.I.
singularity is the
hypothesis that
the invention
of artificial
superintelligence
will abruptly
trigger runaway
technological
growth, resulting
in unfathomable
changes to
human
civilization.
DEFINING
DIGITAL
TRANSFORMATION
The realignment of or
investment in:
- new technology
- business models
- and processes
to drive value for
customers and employees
34
Source:The state of Digital Transformation 2016 - Altimeter
SINGULAR ECOSYSTEM
AND DIGITAL TRANSFORMATION
- DIGITAL TRANSFORMATION =
The realignment of investments
q Customer Experience
q Product Innovation
q Strategy
q Organization
q Digitalization of Processes
q Teamwork
q Learning Culture and Expertise
DIGITAL TRANSFORMATION CHALLENGES
36
Source:The state of Digital Transformation 2016 - Altimeter
DIGITAL TECHNOLOGIES RESHAPING
INDUSTRIES AND SOCIETIES
Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
Internet of Things
Sensors
Big Data
Advanced Analytics
New Devices
Form Factors
Augmented
Reality
3D Printing Ubiquitous
Connectivity
Advanced
Robotics
Cognitive
Computing
Simulation
Social, Local, Mobile Cloud
Computing
System
Integration
LET’S FOCUS ON ARTIFICIAL INTELLIGENCE – DATA – ROBOTS
IN A NUTSHELL - INDUSTRY 4.0
DIGITAL TRANSFORMATION TO SINGULARITY
38
Source: INDUSTRY 4.0 - MERGING INTERNETAND FACTORIES – Faber Novel
1 A.I. TO MAP THE
CONSUMER JOURNEY
39
54% OF THE COMPANIES ARE MAPPING
THE CONSUMER JOURNEY
…but just 20% of digital transformation leaders
are studying the mobile customer journey.
40Source: Mc Kinsey + The state of Digital Transformation 2016 - Altimeter
2. Considération
initiale
3. Moment
d’achat
1. Déclenchement
Evaluation active
Après-achat
Boucle de loyauté
VDAB: DIGITAL PROJECTS
CONVERGENCE A.I. + HUMAN
• Several partnerships with IBM
Watson
• 70.000 school leavers each year
• Opportunity – 2.5 euros
/interview
• Focus on ‘problem childs’
42
PHYGITAL VS TRANSHUMAN
43
ARTIFICIAL INTELLIGENCE IS A REALITY !
2
DATA – THE RAW
MATERIAL OF THE
INFORMATION AGE
45
“An Airbus 320 takes off or lands every
2.5 seconds somewhere in the world.
Every 30 minutes they generate 1TB of
information – that’s a lot of terabytes”
Simon Bradley, Airbus Group
DATA EXPLOSION
OPPORTUNITIES MULTIPLICATION
Relevance Granularity
Acceleration Integration
EXECUTIVE MASTER DIGITAL HUMANITIES
TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016
IOT
UNLEASH THE POWER OF DATA
Cities: predict accidents and crimes.
Doctors: real-time insights into
information from pacemakers or
biochips.
Optimize productivity across
industries through predictive
maintenance on equipment and
machinery.
Truly smart homes with connected
appliances.
Critical communication between
self-driving cars. 48
SMART CITIES = COLLABORATION
STATE X COMPANIES X CITIZENS
49
51
« LE DÉFI DE L’HOMME EST DE
REPRENDRE LE POUVOIR SUR LES
DONNÉES »
- SATYA NADELLA (MICROSOFT)
3 HERE COMES THE
ROBOTS !
52
TOP COUNTRIES BY ROBOT INDUSTRIES
VS CULTURAL ACCEPTANCE OF ROBOTS
(INDUSTRIAL ROBOTS PER 10.000 MANUFACTURING WORKERS)
54
VIRTUAL INTERACTIONS WITH PEOPLE & PLACES
CAN BE AS GOOD AS BEING THERE IN PERSON
55
AMERICANS WILLINGNESS TO RIDE IN A
SELF-DRIVING UBER ?
56
WILL PEOPLE BE COMFORTABLE GETTING
ON AN AIRPLANE WITH NO PILOT?
On a 2.5 hour
domestic flight,
autopilots and
flight-management
systems typically
do about
95 percent of
the work
57
John Tracy
Boeing’s Chief Technology Officer
“We are quite confident that
technologically, the toolkit is filled. With
respect to a commercial airplane, there is
no doubt in our minds that we can solve
the problem of autonomous flight.
It’s a question of certification procedures,
regulatory requirements and, even more
significantly, public perception.”
47% OF US JOBS COULD BE AUTOMATED
WITHIN ONE TO TWO DECADES.
Source: Oxford University study,
C CONCLUSION :
A 3 WINNERS GAME
START-UP IN EUROPE (RISK CAPITAL)
BOOSTING INNO: SWEDEN TRIPLE HELIX
THROUGH R&D + EDUCATION
61
GOVERMENT + INDUSTRY + ACADEMIA
CONVERGENCE – INTEGRATING OLD MODELS
FROM DIGITAL TRANSFORMATION TO SINGULARITY
62
Source: From Rustbelts to Brainbelts
FROM RUSTBELTS TO BRAINBELTS
• A life-threatening situation
• Universities performing
world-class research
• Complex, expensive challenges
requiring a multi-disciplinary approach
• Openness to sharing brainpower
• A connector and supportive local officials
• Infrastructure that attracts
and retains top talent
• Access to venture capital
63
WHAT MAKES A BRAINBELT ?
• Stop mismeasuring productivity
• Develop work-study programs
(on German model)
• Reward sharing of brainpower
• Support and build innovation
districts
• Build political support for more
basic research
• Give venture capitalists the
leeway to invest in
advanced manufacturing
64
WORLD BANK TO COUNTRIES:
TO HARNESS THE POTENTIAL
OF THE DIGITAL NEED TO WORK ON
- Regulations (strengthening regulations that ensure
competition among businesses)
- Skills (adapting workers’ skills to the demand of the new
economy)
- Institution (ensuring that institutions are accountable)
The World Bank’s World Development Report 2016 (WDR 2016)
65
ָ‫ְפּ‬‫צ‬ֻ‫ח‬‫ה‬ 66
"chutzpah”
which is a Yiddish word that
derives from the Hebrew word
ḥutspâ meaning "audacity".
hugues.rey@havasmg.com
@huguesrey
+ 32 496 26 06 88
www.huguesrey.com
THANK YOU
FOR
YOUR ATTENTION !

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Digital Transformation must be a 3 winners game: Citizen - Company - State

  • 1. DIGITAL TRANSFORMATION MUST BE A 3 WINNERS GAME : CITIZENS – COMPANIES – STATE HUGUES L. REY Louvain La Neuve - 19th of October 2016
  • 2. NICE TO MEET YOU 1968 – Ixelles (BE) – Married to Geneviève Solvay Business School 1992 CEO Havas Media Group BeLux (2010) 25 years of experience in communication agencies (WPP/IPG/Havas) Active in digital marketing since 1996 Founding father of Interactive Advertising Bureau (IAB) (1998) Centre Information Media President (CIM): Internet (2000-2011) TV (2011-2013) Strategy (2016 - …) Teach (Digital) Marketing at SBS (2006 - …) + International MarCom Active Blogger: I’m A Bridge – www.huguesrey.com Follow me on twitter + Instagram: @huguesrey
  • 3. HAVAS MISSION Our aim is to be the world’s best company at connecting brands with people using creativity, media and technology
  • 4. SOURCES - REFERENCES • Boston Consulting Group's report on the European Digital Front Runners – 2016 • The state of Digital Transformation 2016 – Altimeter • The World Bank’s World Development Report 2016 (WDR 2016) • THE SMARTEST PLACES ON EARTH Why Rustbelts Are the Emerging Hotspots of Global Innovation BY ANTOINE VAN AGTMAEL AND FRED BAKKER • The Industries of the Future - Ross, Alec • The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future - Kelly, Kevin 4
  • 5. DIGITIZATION DRIVES VALUES 4 NATIONS 5Source: Boston Consulting Group's report on the European Digital Front Runners - 2016 KEY DRIVER FOR GDP GROWTH POSITIVE NET IMPACT ON JOB CREATION
  • 6. « JOBS, JOBS, JOBS » 275/385 K BELGIUM 6 Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
  • 7. HOW DIGITIZATION DRIVES VALUES FOR STATE, COMPANIES AND CITIZENS 7Source: Boston Consulting Group's report on the European Digital Front Runners - 2016
  • 8. 8 A. Setting the Scene TURBULENCE IS THE NEW NORM … & IS FULL OF OPPORTUNITIES B. Thesis THE (ROCKY) ROAD TO SINGULARITY VS THE DIGITAL TRANSFORMATION REALITY C. Conclusion A 3 WINNERS GAME : CITIZENS – COMPANIES – STATE
  • 9. TURBULENCE IS THE NEW NORM ! … AND IS FULL OF OPPORTUNITIES A
  • 10. BUSINESS MODEL DISRUPTION BRANDS DEFIANCE CONSUMER PERCEPTION OF OPPORTUNITIES DISTORSION
  • 11. Source: angel.co as on 08/27/2015 SOFTWARE IS DISRUPTIVE ACROSS ALL THE INDUSTRIES
  • 12. EXAMPLE OF DISRUPTION : AUTOMOTIVE INDUSTRY 12
  • 14. The taxi market was worth 140 millions dollars in San Francisco. With car sharing, it’s 1 billion. Uber makes 500 million ! DISRUPTION IN THE TAXI MARKET
  • 15. 15 M E R C I UBER Each shared car represents a 270 000$ loss for car manufacturersA report by Jeremiah Owyang (EVEN) BIGGER DISRUPTION IN THE CAR MARKET
  • 17. “PLATFORMS LIKE UBER ARE BOOSTING THE INCOMES OF MILLIONS OF AMERICAN FAMILIES” DISRUPTION IN THE FAMILIES EARNINGS
  • 19. Waves of Digital Disruption 1995+ Music Photography Video Rental … 2010+ Print Media TV Travel HR … 2015+ Finance Healthcare Automotive Retail Education Telco … 2020+ All Safe havens will be subject to digital disruption … 2020 – GLOBAL DIGITAL DISRUPTION (SOURCE: DEAR MEDIA)
  • 21. EXECUTIVE MASTER DIGITAL HUMANITIES TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION EXAMPLE: FINANCIAL SERVICES
  • 22. EXECUTIVE MASTER DIGITAL HUMANITIES TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION EXAMPLE: FINANCIAL SERVICES STATE REGULATIONS ?
  • 23. LAYERS OF INNOVATION AND DISRUPTION FINANCIAL SERVICES – LENDING CLUB
  • 25. E. EUROPE 42% N. AMERICA 22% LATAM 69% 31%W. EUROPE MIDDLE EAST 79% EMERGING ASIA 83% 36% DEV. APAC 50% of brands are trusted globally TRUST IS WEAK 25
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  • 27. UNDERSTANDING WHAT MATTERS Personal wellbeing Exploring how brands tangibly improve peoples’ lives Collective wellbeing And the role they play in society Marketplace Going beyond the product 27 WHY DO PEOPLE CARE ABOUT BRANDS ?
  • 28. OPPORTUNITIES VS PERCEPTION DISTORSION 28 Par Delphine Cuny | 03/10/2016, 18:05
  • 29. THE (ROCKY) ROAD TO SINGULARITY VS THE DIGITAL TRANSFORMATION REALITY B
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  • 31. SINGULARITY THE BEGINNING OF THE BEGINNING SINGULARITY: La civilisation humaine pourrait connaître une croissance technologique d'un ordre supérieur. ISSUES ? BUSINESS ETHIC POLITIC
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  • 33. The A.I. singularity is the hypothesis that the invention of artificial superintelligence will abruptly trigger runaway technological growth, resulting in unfathomable changes to human civilization.
  • 34. DEFINING DIGITAL TRANSFORMATION The realignment of or investment in: - new technology - business models - and processes to drive value for customers and employees 34 Source:The state of Digital Transformation 2016 - Altimeter
  • 35. SINGULAR ECOSYSTEM AND DIGITAL TRANSFORMATION - DIGITAL TRANSFORMATION = The realignment of investments q Customer Experience q Product Innovation q Strategy q Organization q Digitalization of Processes q Teamwork q Learning Culture and Expertise
  • 36. DIGITAL TRANSFORMATION CHALLENGES 36 Source:The state of Digital Transformation 2016 - Altimeter
  • 37. DIGITAL TECHNOLOGIES RESHAPING INDUSTRIES AND SOCIETIES Source: Boston Consulting Group's report on the European Digital Front Runners - 2016 Internet of Things Sensors Big Data Advanced Analytics New Devices Form Factors Augmented Reality 3D Printing Ubiquitous Connectivity Advanced Robotics Cognitive Computing Simulation Social, Local, Mobile Cloud Computing System Integration LET’S FOCUS ON ARTIFICIAL INTELLIGENCE – DATA – ROBOTS
  • 38. IN A NUTSHELL - INDUSTRY 4.0 DIGITAL TRANSFORMATION TO SINGULARITY 38 Source: INDUSTRY 4.0 - MERGING INTERNETAND FACTORIES – Faber Novel
  • 39. 1 A.I. TO MAP THE CONSUMER JOURNEY 39
  • 40. 54% OF THE COMPANIES ARE MAPPING THE CONSUMER JOURNEY …but just 20% of digital transformation leaders are studying the mobile customer journey. 40Source: Mc Kinsey + The state of Digital Transformation 2016 - Altimeter 2. Considération initiale 3. Moment d’achat 1. Déclenchement Evaluation active Après-achat Boucle de loyauté
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  • 42. VDAB: DIGITAL PROJECTS CONVERGENCE A.I. + HUMAN • Several partnerships with IBM Watson • 70.000 school leavers each year • Opportunity – 2.5 euros /interview • Focus on ‘problem childs’ 42
  • 45. 2 DATA – THE RAW MATERIAL OF THE INFORMATION AGE 45
  • 46. “An Airbus 320 takes off or lands every 2.5 seconds somewhere in the world. Every 30 minutes they generate 1TB of information – that’s a lot of terabytes” Simon Bradley, Airbus Group
  • 47. DATA EXPLOSION OPPORTUNITIES MULTIPLICATION Relevance Granularity Acceleration Integration EXECUTIVE MASTER DIGITAL HUMANITIES TOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016
  • 48. IOT UNLEASH THE POWER OF DATA Cities: predict accidents and crimes. Doctors: real-time insights into information from pacemakers or biochips. Optimize productivity across industries through predictive maintenance on equipment and machinery. Truly smart homes with connected appliances. Critical communication between self-driving cars. 48
  • 49. SMART CITIES = COLLABORATION STATE X COMPANIES X CITIZENS 49
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  • 51. 51 « LE DÉFI DE L’HOMME EST DE REPRENDRE LE POUVOIR SUR LES DONNÉES » - SATYA NADELLA (MICROSOFT)
  • 52. 3 HERE COMES THE ROBOTS ! 52
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  • 54. TOP COUNTRIES BY ROBOT INDUSTRIES VS CULTURAL ACCEPTANCE OF ROBOTS (INDUSTRIAL ROBOTS PER 10.000 MANUFACTURING WORKERS) 54
  • 55. VIRTUAL INTERACTIONS WITH PEOPLE & PLACES CAN BE AS GOOD AS BEING THERE IN PERSON 55
  • 56. AMERICANS WILLINGNESS TO RIDE IN A SELF-DRIVING UBER ? 56
  • 57. WILL PEOPLE BE COMFORTABLE GETTING ON AN AIRPLANE WITH NO PILOT? On a 2.5 hour domestic flight, autopilots and flight-management systems typically do about 95 percent of the work 57 John Tracy Boeing’s Chief Technology Officer “We are quite confident that technologically, the toolkit is filled. With respect to a commercial airplane, there is no doubt in our minds that we can solve the problem of autonomous flight. It’s a question of certification procedures, regulatory requirements and, even more significantly, public perception.”
  • 58. 47% OF US JOBS COULD BE AUTOMATED WITHIN ONE TO TWO DECADES. Source: Oxford University study,
  • 59. C CONCLUSION : A 3 WINNERS GAME
  • 60. START-UP IN EUROPE (RISK CAPITAL)
  • 61. BOOSTING INNO: SWEDEN TRIPLE HELIX THROUGH R&D + EDUCATION 61 GOVERMENT + INDUSTRY + ACADEMIA
  • 62. CONVERGENCE – INTEGRATING OLD MODELS FROM DIGITAL TRANSFORMATION TO SINGULARITY 62 Source: From Rustbelts to Brainbelts
  • 63. FROM RUSTBELTS TO BRAINBELTS • A life-threatening situation • Universities performing world-class research • Complex, expensive challenges requiring a multi-disciplinary approach • Openness to sharing brainpower • A connector and supportive local officials • Infrastructure that attracts and retains top talent • Access to venture capital 63
  • 64. WHAT MAKES A BRAINBELT ? • Stop mismeasuring productivity • Develop work-study programs (on German model) • Reward sharing of brainpower • Support and build innovation districts • Build political support for more basic research • Give venture capitalists the leeway to invest in advanced manufacturing 64
  • 65. WORLD BANK TO COUNTRIES: TO HARNESS THE POTENTIAL OF THE DIGITAL NEED TO WORK ON - Regulations (strengthening regulations that ensure competition among businesses) - Skills (adapting workers’ skills to the demand of the new economy) - Institution (ensuring that institutions are accountable) The World Bank’s World Development Report 2016 (WDR 2016) 65
  • 66. ָ‫ְפּ‬‫צ‬ֻ‫ח‬‫ה‬ 66 "chutzpah” which is a Yiddish word that derives from the Hebrew word ḥutspâ meaning "audacity".
  • 67. hugues.rey@havasmg.com @huguesrey + 32 496 26 06 88 www.huguesrey.com THANK YOU FOR YOUR ATTENTION !