1. Webinar The Collaborative Economy Will Drive Business Innovation And Growth A New Way Of Doing Business Dan Bieler, Principal Analyst June 2, 2014. Call in at 10:55 a.m. Eastern time

2. © 2014 Forrester Research, Inc. Reproduction Prohibited Greater Collaboration Investments Drive Higher Revenue Growth Source: May 19, 2014 “The Collaborative Economy Will Drive Business Innovation And Growth” Forrester report

3. © 2014 Forrester Research, Inc. Reproduction Prohibited3 Agenda › Mega business trends that impact business models › The work environment is transforming. › The CIO and IT team play an important role in driving business transformation.

4. © 2014 Forrester Research, Inc. Reproduction Prohibited4 Mega business trends that impact business models

5. © 2014 Forrester Research, Inc. Reproduction Prohibited5 Many opportunities open up in the age of the customer Transform the customer experience. Embrace the mobile mind shift. Become a digital disruptor. Age of the customer Turn big data into business insights.

6. © 2014 Forrester Research, Inc. Reproduction Prohibited6 Systems of engagement can be found in all sectors Health Customer service Oil and gas Real estate

7. © 2014 Forrester Research, Inc. Reproduction Prohibited7 Internet brings down collaboration costs

8. © 2014 Forrester Research, Inc. Reproduction Prohibited8 › Customers opt for pull-buying and engage with brands via: Customized messaging about products and services. Shared experiences about products and companies. › Customers and outside partners frame the innovation networks as part of which: Companies are no longer limited to in-house expertise for R&D. Sharing adds value. Customers want to be involved in co-innovating products. › Collaboration provides new capital raising opportunities in the form of: Crowd-funding. Open innovation contests. Better collaboration and sharing drive business innovation

9. © 2014 Forrester Research, Inc. Reproduction Prohibited9 Vertically integrated businesses find it difficult to compete › Lower transaction costs No longer justify existence of vertically integrated company › Vertically integrated businesses do too much themselves. › Traditional firms will fail more often. While highly innovative within the existing business model, they miss radical innovations (Innosaurier).

10. Challenges for the CIO and the CEO: There is a threat to laggards that fail to adapt to these macro-trends Communications Automotive Music Film

11. © 2014 Forrester Research, Inc. Reproduction Prohibited11 The work environment is transforming

12. © 2014 Forrester Research, Inc. Reproduction Prohibited12 “How has your time spent using the following devices for work changed over the past year?” Base: North American and European enterprise IT workers; Source: Forrsights Telecom And Mobility Workforce Survey, Q2 2013 More people use mobile computers — which work best with cloud services

13. © 2014 Forrester Research, Inc. Reproduction Prohibited13 Source: October 17, 2013, “Mind The Tech Expectations Gap: Make Technology Integral To Company Culture” Forrester report IT leaves many employees unsatisfied — and thus creates the seeds for shadow IT Global information workers go around IT and install unsupported software (21%) or use unsupported services (23%) for work. “How satisfied are you with IT’s ability to get you the tools you need for work?”

14. © 2014 Forrester Research, Inc. Reproduction Prohibited14 Source: October 17, 2013, “Mind The Tech Expectations Gap: Make Technology Integral To Company Culture” Forrester report The influence of the business buyer is growing — at the expense of the IT manager “To what extent has your company taken the following actions to enable flexible work?” Source: The IT Crowd; Channel 4,

15. © 2014 Forrester Research, Inc. Reproduction Prohibited15 The rise of the collaborative economy triggers long-term change Gen Y relies heavily on each other for validation of their brand and product choices. 68% won’t make a major decision without running it through their network first. Susan Kuchinskas, “Millennial Brain Responds Differently to Digital Media,” December 11, 2012 Gen Y relies heavily on each other for validation of their brand and product choices. 68% won’t make a major decision without running it through their network first. Susan Kuchinskas, “Millennial Brain Responds Differently to Digital Media,” December 11, 2012 “The customer does not want choice. He just wants exactly want he wants.” Joe Pine “The customer does not want choice. He just wants exactly want he wants.” Joe Pine 49% of consumers freely give advice to others to help them make better decisions. Universal McCann study 49% of consumers freely give advice to others to help them make better decisions. Universal McCann study

16. © 2014 Forrester Research, Inc. Reproduction Prohibited16 *This applies mostly to well-educated ones. Younger employees work differently* Quality of life versus career Home office Fewer structures Flat hierarchies Flexible working

17. © 2014 Forrester Research, Inc. Reproduction Prohibited17 The CIO and IT team play an important role in driving business transformation

18. © 2014 Forrester Research, Inc. Reproduction Prohibited18 Source: February 4, 2014, “Connected Business: A New Style Of Doing Business” Forrester report The connected business goes through several stages of transformation and changes the style doing business Unified communications Connected enterprise Connected business Reach: mostly internalReach: internal and externalReach: pervasive Impact: Reach people any time. Impact: Open collaboration and communication platforms to customers, suppliers, and partners. Impact: core business processes and organizational structure Transformation: continuous Transformation: disruptive for IT but still continuous for the core business Transformation: disruptive for the core business Solution complexity Time

19. © 2014 Forrester Research, Inc. Reproduction Prohibited19 The IT team plays an important role in driving business transformation › Departments need more agile infrastructure to enhance the work environment. › Ecosystems are the steppingstone to the connected economy and society. › Cultural change is a prerequisite for the connected business. › Organizational structures will focus on collaboration.

20. © 2014 Forrester Research, Inc. Reproduction Prohibited20 Source: March 24, 2014, “Case Study: Philips’ Journey Toward Becoming A Connected Business” Forrester report Your transformation process is a team effort

21. © 2014 Forrester Research, Inc. Reproduction Prohibited21 Source: February 4, 2014, “Connected Business: A New Style Of Doing Business” Forrester report The transformation into a connected business takes place in four dimensions

22. © 2014 Forrester Research, Inc. Reproduction Prohibited22 Organizations that collaborate the best will be the fittest Support self-organization of groups. Adapt the office environment. › Embrace customers as partners. › Change training and staff management. Photo: ALAMY

23. © 2014 Forrester Research, Inc. Reproduction Prohibited23 Philips is ahead toward becoming a connected business › Philips embraces digital propositions at the expense of standalone products. Products should only be the enablers for broader solutions. Business units need to target the contextual experience when developing products. Introducing a new approach to product development and innovation › Philips’ interdisciplinary teams help to open up new revenue streams. Creating a digital board that is responsible for defining the digital propositions Work closely with HR in building up transformation competencies. Entrenching and rewarding a collaborative culture Prepare sales teams to deal with different customer contacts as a result of digital propositions. › Philips’ CIO plays an important role in driving business transformation CIOs must develop a new approach to collaboration between business divisions and partners.

24. © 2014 Forrester Research, Inc. Reproduction Prohibited24 Household appliances Healthcare Lighting Rise of digital propositions creates ecosystems of LOBs

25. © 2014 Forrester Research, Inc. Reproduction Prohibited25 Street lighting + cell broadcast + traffic management Rise of digital propositions creates partner ecosystems

26. © 2014 Forrester Research, Inc. Reproduction Prohibited26 Take-home messages

27. © 2014 Forrester Research, Inc. Reproduction Prohibited27 The CIO plays an important role in driving business transformation › Define comprehensive collaboration strategy. Collaboration > unified communications › Create interdisciplinary teams. › Allow employees self-organizing. › Transformation requires complete CEO support. › Business culture Cultural transformation = biggest task A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

28. © 2014 Forrester Research, Inc. Reproduction Prohibited28 There are several reports to support you in your transformation efforts

29. Thank you Dan Bieler Principal Analyst, Communications And Networking Strategist Skype: dan.bieler Email: dbieler@forrester.com Twitter: @DSBieler Phone: +49 69.9592.9836 Mobile: +49 176.2955.3606 Blog: http://blogs.forrester.com/dan_bieler

30. © 2014 Forrester Research, Inc. Reproduction Prohibited30 Forrester Reader for iPad THE EASY WAY TO READ OUR RESEARCH — ANYTIME, ANYWHERE › Discover new content. › Read online or offline. › Highlight and share excerpts. Download at forrester.com/app or directly from the Apple App Store.