IBM Point Of View on Digitalisation Mehmet Dilek IBM Analytics Leader

© 2015 International Business Machines Corporation2 Digital giants All Tech Companies Market Cap. is x2 of all gold mined in human history Liquidating Facebook, Google and Apple; all large airlines, auto, retail, and food companies in the US can be acquired Facebook, Google and Apple has employees vs 4.1 million employed in conventional industries

© 2015 International Business Machines Corporation3 Digital invaders As of September 2015 there are 123 start-ups with over USD 1 billion market value UBER 51bln Palantir 20bln Airbnb 26bln Snapchat 16bln DIDI KUADI 16bln XIAOMI 46bln 7x 11x 13x 4x 33x Significantly outperforming conventional industries and traditional business models Source: Wall Street Journal and Dow Jones VentureSource Capital Return Value

© 2015 International Business Machines Corporation4 Disruption and Wealth Creation Disruptive Innovation Disruption Opportunities Wealth Creation Internet % 27% ~40% Change in IBM Revenue Mix Digital transformation Is my strategy ambitious enough? Cloud Enabled Ecosystem Big Data & Advanced Analytics Internet of Things Mobile Social Security

© 2015 International Business Machines Corporation5 Big Data and Advanced Analytics We need to find a way of sitting in the middle of the data that you can not control! Advanced analytics capabilities requred to turn this data into value! Data as we know nowData in the future Internal IOT SOCIAL Internal SOCIAL IOT

© 2015 International Business Machines Corporation6 Rebuild Business Around Personalisation CloudMobile Internet of Things Social Security Cloud Enabled Ecosystem Big Data & Advanced Analytics Mobile Internet of Things Social Security Personalisation Focus everything around customer experience and personalisation Control/Create/Access Social and IOT Data Create an Ecosystem for Innovation and Crowdsourcing Apply advanced analytics Apply advanced security

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