Digital Transformation and IOT presentation delivered at techitout 2016 in Springfield, MO Oct 20, 2016

1. techITout
Technology Showcase and Expo
Springfield, MO 2016
Digital Transformation and the Internet of Things

2. Questions
• How many of you are IT team, staff or leadership?
• How many of you are business? (Marketing, Operations, Sales,
Finance, etc.)
• How many of you can define or think you can define digital
transformation?
• How many of you have led a digital transformation initiative?
• How many of you are in the midst of a digital transformation
initiative?

3. Digital Transformation
The term ‘digital transformation’ has been used to
describe anything from creating a fully responsive
mobile website to developing a social media strategy,
but in reality true transformation needs to involve
much more than just the end product.
https://www.marketingweek.com/2016/04/14/what-does-digital-transformation-really-mean/

4. Terms
• Business Innovation
• Digital Experience
• Digital Strategy
• Digital Disruption
• Disruptive Innovation
• Disruptive Technologies

5. Business Innovation
• Business innovation is an organization's process for introducing new
ideas, workflows, methodologies, services or products.
• Business innovation should enable the achievement of goals across
the entire organization, with sights set on accomplishing core
business aims and initiatives.
• Innovation often begins with idea generation, wherein ideas are
narrowed down during brainstorming sessions after which leaders
consider the business viability, feasibility and desirability of each
idea.

6. Digital Experience
• A digital experience is the way in which a user interacts with content
on the web and how a user can achieve a goal on the web.
• Digital experience not only means reading and consuming content
but interacting with web content.
• A good digital experience is when a user feels connected to the
content and tools that they use on the web. Also, nowadays digital
experiences are spread across a multitude of devices and platforms.

7. Digital Strategy
• A digital strategy is a form of strategic management and a business
answer or response to a digital question, often best addressed as part
of an overall business strategy.
• A digital strategy is often characterized by the application of new
technologies to existing business activityand/or a focus on the
enablement of new digital capabilities to their business.
• Formulation often includes the process of specifying an organization's
vision, goals, opportunities and related activities in order to maximize
the business benefits of digital initiatives to an organization.

8. Digital Disruption
• Digital disruption is the change that occurs when new
digital technologies and business models affect the value proposition
of existing goods and services.
• The rapid increase in the use of of mobile devices for personal use and
work, has increased the potential for digital disruption across many
industries.
• A powerful example is the way Amazon, Netflix and Hulu Plus have
disrupted the media and entertainment industries by changing how
content is accessed by customers and monetized by advertisers.
• It is often confused with the term disruptive technology.

9. Disruptive Innovation
• A disruptive innovation is an innovation that creates a new market
and value network and eventually disrupts an existing market and
value network, displacing established market leading firms, products
and alliances.
• Not all innovations are disruptive, even if they are revolutionary. For
example, the first automobiles in the late 19th century were not a
disruptive innovation, because early automobiles were expensive
luxury items that did not disrupt the market for horse-drawn vehicles.
• The market for transportation essentially remained intact until the
debut of the lower-priced Ford Model T in 1908. The mass-
produced automobile was a disruptive innovation, because it
changed the transportation market, whereas the first thirty years of
automobiles did not.
The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995

10. Disruptive Technologies
• Term coined by Harvard Business School professor Clayton M. Christensen
to describe a new technology that displaces an established technology
• A disruptive technology is one that displaces an established technology and
shakes up the industry or a ground-breaking product that creates a
completely new industry.
• Here are a few examples of disruptive technologies:
• The personal computer (PC) displaced the typewriter and forever changed the way
we work and communicate.
• The Windows operating system's combination of affordability and a user-friendly
interface was instrumental in the rapid development of the personal computing
industry in the 1990s. Personal computing disrupted the television industry, as well
as a great number of other activities.
• Email transformed the way we communicating, largely displacing letter-writing and
disrupting the postal and greeting card industries.

11. Digital Transformation
Digital transformation is the profound and accelerating
transformation of business activities, processes,
competencies and models to fully leverage the changes
and opportunities of digital technologies and their
impact across society in a strategic and prioritized way.
http://www.i-scoop.eu/digital-transformation/

12. Digital Transformation
• CapGemini Consulting was one of the first to come up with
the concept of digital transformation and a digital
transformation framework.
• They did so in collaboration with the ‘MIT Center for Digital
Business‘ during a three-year study which defined an
effective digital transformation program as one that looked
at the what and the how.
http://www.i-scoop.eu/digital-transformation/

13. Digital Transformation
“To be clear, investing in technology to stay current or ahead of the curve isn't
the same thing. Pretty much every company is putting money into new tools,
platforms, and services. And, doing so is a matter of becoming tech-enabled,
which doesn’t mean companies are actually changing to compete in a digital
economy. With digital transformation, however, technology is driven by
purpose, and that purpose is meant to reshape business.” (emphasis mine)
I define it this way...
The realignment of, or new investment in, technology, business models, and
processes to more effectively compete in an ever-changing digital economy.
Brian Solis, Principal Analyst, Altimeter Group

14. Digital Transformation
• Digital transformation may be thought of as the third stage of
embracing digital technologies: digital competence → digital
usage → digital transformation.
• The transformation stage means that digital usages inherently enable
new types of innovation and creativity in a particular domain, rather
than simply enhance and support the traditional methods.
Digital literacies: concepts, policies and practices By Colin Lankshear, Michele Knobel, 2008, p. 173

15. Digital Transformation
• Some authors have posited that rapid advances in six primary areas
have converged to create the “era of digital transformation”:
• Hardware
• Software
• Networks (cables, wireless and social)
• Commercial and consumer comprehension
• Democratization of technology at scale (low costs & mass adoption)

16. Digital Transformation
• The evolutionary path to digital transformation followed a timeline
that included the invention and development of the following:
• Computers
• Memory and data storage
• Mass adoption of PCs and laptops
• Local Networks
• ERPs
• The internet
• Mobile networks and mobile phones
• GPS
• Mass global adoption of wireless devices (laptops, mobile phones, tablets, smartphones,
wearables, sensors)
• Proliferation of websites and online activity
• Rapid adoption and expansion of online and mobile databases and search
• Rapid adoption and expansion of online marketplaces and reviews

17. Five Domains of Digital Transformation
• Customers
• Competition
• Data
• Innovation
• Value
Across these five domains, digital technologies are redefining many of the
underlying principles of strategy and changing the rules by which companies
must operate in order to succeed. Many old constraints have been lifted, and
new possibilities are now available.
Rogers, David L.. The Digital Transformation Playbook: Rethink Your Business for the Digital Age (Columbia Business
School Publishing) (pp. 5-6). Columbia University Press. Kindle Edition.

18. Digital Transformation
Four digital transformation realities to emphasize:
• Business/IT relationship is key (closing the gap between both, focusing
on the same goals and NOT overlooking the role of IT).
• There is a common DNA among digital leaders and the path to digital
transformation shows common traits (even if context matters).
• As said, each industry is impacted, including your industry. Customers,
employees, partners, nor competitors or new, disruptive players, will wait
for business to catch up, regardless of industry.
• Digital transformation is led from the top (or at least requires firm buy-in
from the top – and all stakeholders).

19. Myths vs. Facts
Myth Reality
Digital is primarily about the customer
experience
Huge opportunities exist also in effeciency,
productivity and employee leverage
Digital primarily matters only to technology
or B2C companies
Opportunities exist in ALL industries,
NO exceptions
Let a thousand flowers bloom; bottom up
activity is the right way to change
Digital transformation must be led
from the top
If we do enough digital initiatives we will
get there
Transformation management intensity
is more important for driving overall performance
Digital transformation will happen despite
our IT
Business / IT relationships are key, and in
many companies they must be improved
Digital transforamtion approaches are different
for every industry and company Digital leaders exhibit a common DNA
In our industry, we can wait and see how
digital develops
There are digital leaders outperforming
their peers in every industry today

20. Digital Transformation Maturity Model

21. Digital Transformation Maturity Model

22. Internet of Things (IOT)

23. Questions
• Have many of you think you can define or understand IOT?
• How many of you work in an organization gathering data from multiple
sensors?
• How many of you work in an environment using HDInsight, HADOOP or
other big data products?
• How many of you work in an environment where you are doing advanced
predictive analytics?
• How many of you are working in an environment where you are doing an
IOT project or Proof of Concept?

24. What IS this thing called Internet of Things (IOT)
We gather up your data,
then we shake it all about,
We do the hokey pokey
and we turn ourselves around,
That’s what it’s all about!!!

25. The Internet of Things (IoT) is key to achieving digital transformation
Source: Redefining the Connected Conversation, IoT Trends, Challenges & Experience Survey. James Brehm & Associates, 2016.
60% Of those working on IoT are aiming to grow
revenue and profits
73% Of the companies surveyed are currently
active in IoT
50% Reduction in downtime with predictive
maintenance
According to a recent IoT survey…

26. Digital transformation hinges on four imperatives
Engage your
customers
Empower your
employees
Optimize your
operations
Transform
your products
Systems of
Intelligence

27. Digital transformation is rapidly reshaping the landscape
Sources:
1McKinsey, How IoT Can Support A Dynamic Maintenance Program, 2016
2IDC, 2016
~80%
margin1
driven by apps,
analytics, and
services in 2020
Average increase in
income for the most
digitally transformed
enterprises
$100M
2020
2009
30B
Things
Income
Intelligence
“Every business will become
a software business, build
applications, use advanced
analytics and provide
SaaS services.“
Satya Nadella
2
2

29. “The growth in IoT will far exceed that of
other connected devices. By 2020, the
number of smartphones tablets and PCs
in use will reach about 7.3 billion units”
Peter Middleton, Research Director, Gartner
http://www.gartner.com/newsroom/id/2636073

31. 70%
of value enabled
by IoT will come
from B2B scenarios
McKinsey & Company
25 billion
Connected “things” by 2020
—Gartner
$1.7 trillion
Market for IoT by 2020
—IDC
Internet of Things opportunity

32. IoT is already delivering tangible results across industries
Gathers data from sensors and
systems to create valuable
business intelligence and reduce
downtime by 50%
Cutting fuel usage by 1 percent
could save $250,000 per plane
per year
Chillers now run 9x faster than
unconnected equipment,
avoiding more than $300,000 in
hourly downtime costs
Improves access to production
and supply chain data worldwide,
reducing downtime costs by as
much as $300,000 per day

33. Innovation at work – real IoT use cases
Electric
charging
stations
Street
sweepers
Postboxes
Aircrafts
Auto
Elevators
Factory floor
Oil equipment
Cows
Engines
Vending
machines
Buildings
Fryers
Medical devices
Vaccine
dispensers
Trucks
BusesDogs
Oil distribution
Smart meters
IoT
Power plant
Surveillance
Power tools
Racing
Mining
equipment
Smart grids

35. History
June 22, 2009 Kevin Ashton writes in “That ‘Internet of Things’ Thing”
in RFID Journal: “I could be wrong, but I’m fairly sure the phrase
‘Internet of Things’ started life as the title of a presentation I made at
Procter & Gamble (P&G) in 1999.
Linking the new idea of RFID in P&G’s supply chain to the then-red-hot
topic of the Internet was more than just a good way to get executive
attention. It summed up an important insight—one that 10 years later,
after the Internet of Things has become the title of everything from an
article in Scientific American to the name of a European Union
conference, is still often misunderstood.”

36. Myths and Realities
Myth Reality
IOT is only machine to machine centered
Communication can be not only between machines,
but from a variety of other hosts and systems
IOT is only about "things"
The real magic is in the data, and how data is
analyazed and used
IOT is just about sensors or big data
Maintenance and management of IoT devices and
other devices that communicate with them is also internet of things.
IoT Standards is non existent
There are many standards that control and restrict
the development of IoT applications.
Internet of Things security concern will
always remain
The development of new IoT standards like
communication protocol TLS are actively addressing these issues.
IoT Devices will be part of one family
Most of the devices will be standalone or will have
accompanying cloud based services from the same vendor.
Wireless connectivity is must for IoT devices
Not necessarily all IoT devices should be wireless they
can also be linked through Ethernet or USB connections.
IoT development is easier
Getting your device up and running is just tip of the ice
berg that can be achieved with any IoT development kit in few hours. However
the real challenge is to get your device connect with other devices, monetize its
operation and all of this while maintaining security and reliability.

37. Connectivity Data AnalyticsThings Action
Defining Internet of Things

38. • Digital Nervous System
• Eyes & EarsSensors
• Inputs are digitized
• Put onto networksConnectivity
• Inputs combined into bi-directional systems
• Integrate data, people, processes & systems
• Better decision making
People &
Processes

39. • Descriptive Analytics
• Diagnostic Analytics
• Prescriptive Analytics
• Predictive Analytics
Analytics
• Ad Hoc Reporting
• Power BI
• DashboardsReporting

40. Capitalizing
on IoT
Connect
your things
Turn data
into insights
Transform your
business

41. CIO Priorities – Gartner - 2016
Priority Technology
1 BI / Analytics
2 Cloud
3 Mobile
4 Digitization / Digital Marketing
5 Infrastrucuture and Data Center
6 ERP
7 Security
8 Industry Specific Applications
9 CRM
10 Networking / Voice / Data Communications

42. Top Ten Technologies (Gartner)
• IOT Security
• IOT Analytics
• IOT Device (Thing) management
• Low-Power, Short Range IOT Networks
• Low-Power, Wide-Area Networks
• IOT Processors
• IOT Operating Systems
• Event Stream Processing
• IOT Platforms
• IOT Standards and Ecosystems

43. Gartner Hype Cycle Emerging Technologies 2016

44. Gartner Hype Cycle Emerging Technologies 2016
• Gartner added 16 new technologies to the Hype Cycle this year,
including blockchain, machine learning, general purpose machine
intelligence, smart workspace for the first time.
• Smart machine technologies will be the most disruptive class of
innovations over the next 10 years due to their computational power,
scalability in analyzing large-scale data sets, and rapid advances in
neural networks.
• Gartner clients are seeing machine learning deliver benefits, scale
across their enterprises, and create high expectations of future value
which contribute to its position on the Hype Cycle this year.

45. IOT Business Value
The Internet of Things is quickly becoming one of the most-hyped
technologies in IT circles -- the big data term of the moment. But as the
concept of the IoT becomes more familiar, how businesses can derive
value from it is a question that needs to be answered. And increasingly,
analytics is seen as the key to making investments in IoT
technology worthwhile.
Tech Target - IOT Agenda

46. IOT Business Value
Much of the talk about the Internet of Things (IoT) focuses on the
“things” themselves – wearables, sensors, iBeacons, and other
network-connected machines. However, the greatest value for
organizations comes from combining the data generated by these
devices with other customer or operational data to uncover insights
and establish predictive models. This is the incredible promise of IoT,
but without the ability to link data from the smart, networked “things”
with other business data, its value is limited.
Scott Hedrick - Informatica

47. Maturity Model

48. Technologies
SharePoint 2016
Microsoft Dynamics
SQL Server
.NET Framework
Microsoft Azure / IOT
HTML5 + CSS3
Office 365
SharePoint Toolkit

49. Questions?