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

DIGITAL TRANSFORMATION MUST BE A 3 WINNERS GAME :

CITIZENS – COMPANIES – STATE

HUGUES L. REYLouvain La Neuve - 19th of October 2016

NICE TO MEET YOU1968 – Ixelles (BE) – Married to GenevièveSolvay Business School 1992 CEO Havas Media Group BeLux (2010)25 years of experience in communication agencies (WPP/IPG/Havas)Active in digital marketing since 1996Founding 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 MarComActive Blogger: I’m A Bridge – www.huguesrey.comFollow me on twitter + Instagram: @huguesrey

HAVAS MISSION

Our aim is to be the world’s best companyat 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

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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

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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

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A. Setting the Scene

TURBULENCE IS THE NEW NORM …& IS FULL OF OPPORTUNITIESB. Thesis

THE (ROCKY) ROAD TO SINGULARITYVS THE DIGITAL TRANSFORMATION REALITYC. Conclusion

A 3 WINNERS GAME :CITIZENS – COMPANIES – STATE

TURBULENCE IS THE NEW NORM !

… AND IS FULL OF OPPORTUNITIES

A

BUSINESS MODEL DISRUPTIONBRANDS DEFIANCE

CONSUMER PERCEPTION OF OPPORTUNITIES DISTORSION

Source: angel.co as on 08/27/2015

SOFTWARE IS DISRUPTIVEACROSS ALL THE INDUSTRIES

EXAMPLE OF DISRUPTION : AUTOMOTIVE INDUSTRY

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FROMPRODUCT(VEHICLE) TO SOLUTION(MOBILITY)

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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

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M E R C IUBER Each shared car represents a 270 000$ loss for car manufacturers

A report by Jeremiah Owyang

(EVEN) BIGGER DISRUPTION IN THE CAR MARKET

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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

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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)

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INDUSTRIALINFORMATIONDIGITAL

DISRUPTION

EXECUTIVE MASTER DIGITAL HUMANITIESTOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION

EXAMPLE: FINANCIAL SERVICES

EXECUTIVE MASTER DIGITAL HUMANITIESTOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016LAYERS OF INNOVATION AND DISRUPTION

EXAMPLE: FINANCIAL SERVICES

STATE REGULATIONS ?

LAYERS OF INNOVATION AND DISRUPTIONFINANCIAL 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

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UNDERSTANDING WHAT MATTERS

Personal wellbeingExploring how brands tangibly improve peoples’ lives

Collective wellbeingAnd the role they play in society

MarketplaceGoing beyond the product

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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

SINGULARITYTHE BEGINNING OF THE BEGINNING

SINGULARITY: La civilisationhumainepourraitconnaître unecroissancetechnologiqued'un ordresupérieur.

ISSUES ?BUSINESSETHIC POLITIC

The A.I. singularity is the hypothesis that the invention of artificial superintelligencewill abruptly trigger runaway technological growth, resulting in unfathomable changes to human civilization.

DEFINING DIGITAL TRANSFORMATIONThe realignment of or investment in: - new technology- business models - and processes to drive value for customers and employees

34Source: The state of Digital Transformation 2016 - Altimeter

SINGULAR ECOSYSTEMAND DIGITAL TRANSFORMATION

- DIGITAL TRANSFORMATION = The realignment of investments

q Customer Experienceq Product Innovationq Strategyq Organizationq Digitalization of Processesq Teamworkq Learning Culture and Expertise

DIGITAL TRANSFORMATION CHALLENGES

36Source: 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 ThingsSensors

Big DataAdvanced Analytics

New DevicesForm Factors

AugmentedReality

3D Printing UbiquitousConnectivity

AdvancedRobotics

Cognitive Computing

Simulation

Social, Local, Mobile Cloud Computing

SystemIntegration

LET’S FOCUS ON ARTIFICIAL INTELLIGENCE – DATA – ROBOTS

IN A NUTSHELL - INDUSTRY 4.0DIGITAL TRANSFORMATION TO SINGULARITY

38Source: INDUSTRY 4.0 - MERGING INTERNET AND FACTORIES – Faber Novel

1 A.I. TO MAP THE CONSUMER JOURNEY

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54% OF THE COMPANIES ARE MAPPINGTHE 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. Considérationinitiale

3. Moment d’achat

1. Déclenchement

Evaluation active

Après-achat

Boucle de loyauté

VDAB: DIGITAL PROJECTSCONVERGENCE A.I. + HUMAN

• Several partnerships with IBM Watson

• 70.000 school leavers each year• Opportunity – 2.5 euros

/interview• Focus on ‘problem childs’

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PHYGITAL VS TRANSHUMAN

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ARTIFICIAL INTELLIGENCE IS A REALITY !

2 DATA – THE RAWMATERIAL OF THE INFORMATION AGE

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“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 EXPLOSIONOPPORTUNITIES MULTIPLICATION

Relevance Granularity

Acceleration Integration

EXECUTIVE MASTER DIGITAL HUMANITIESTOUCHPOINTS, USAGES & MEDIA CONSUMPTION IN 2016

IOTUNLEASH 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 betweenself-driving cars. 48

SMART CITIES = COLLABORATION STATE X COMPANIES X CITIZENS

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« LE DÉFI DE L’HOMME EST DE REPRENDRE LE POUVOIR SUR LES DONNÉES »- SATYA NADELLA (MICROSOFT)

3 HERE COMES THE ROBOTS !

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TOP COUNTRIES BY ROBOT INDUSTRIESVS CULTURAL ACCEPTANCE OF ROBOTS(INDUSTRIAL ROBOTS PER 10.000 MANUFACTURING WORKERS)

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VIRTUAL INTERACTIONS WITH PEOPLE & PLACES CAN BE AS GOOD AS BEING THERE IN PERSON

55

AMERICANS WILLINGNESS TO RIDE IN A SELF-DRIVING UBER ?

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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 about95 percent of

the work

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John TracyBoeing’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 HELIXTHROUGH R&D + EDUCATION

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GOVERMENT + INDUSTRY + ACADEMIA

CONVERGENCE – INTEGRATING OLD MODELSFROM DIGITAL TRANSFORMATION TO SINGULARITY

62Source: 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

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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 inadvanced manufacturing

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WORLD BANK TO COUNTRIES:TO HARNESS THE POTENTIALOF 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)

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הֻחְצּפָ 66

"chutzpah”which is a Yiddish word that derives from the Hebrew word ḥutspâ meaning "audacity".

[email protected]@huguesrey

+ 32 496 26 06 88www.huguesrey.com

THANK YOU FOR

YOUR ATTENTION !