1. Turkey ICT Market Trends, 2017
Jyoti Lalchandani
Group Vice President and Regional MD
IDC Middle East, Turkey, and Africa
@JyotiIDC

2. The IDC Difference

3. IDC Continues to Expand Across META
Covering 45+ markets in the Middle East, Turkey, and Africa (META)
>150 analysts and events associates in the region
Complete regional coverage of the 3rd Platform, innovation accelerators, and digital transformation
For the ICT industry
For CIOs and CXOs
Strategic multi-year engagements with eight governments across META
Connecting >12,000 CIOs, IT managers, and line-of-business (LoB) executives across 30+ cities in META

4. Technology Selection and Purchase
IDC Advises IT Buyers and Tech Suppliers on the 3rd Platform and Digital Transformation
Customer Engagement
Data Tracking
IT Buyer Analysis
Technology Selection and Purchase
Strategic
Advice
Market
Analysis
IT Buyers
Technology Suppliers

5. What We Are Advising IT Buyers

6. What We Are Advising IT Buyers

7. Influencing ICT Policy and Government Strategy

8. ICT Transformation: The Big Picture
META Market Dynamics — State of Business
Transition to the 3rd Platform and Beyond — Perspectives from META
Five Mega Trends Shaping the Turkish ICT Landscape

9. Agenda META Market Dynamics — State of Business
Transition to the 3rd Platform and Beyond — Perspectives from META
Five Mega Trends Shaping the Turkish ICT Landscape

11. Market Dynamics in META
Lower oil prices and their impact across Gulf Cooperation Council (GCC) states, Nigeria, and other countries
Ongoing political instability
Delayed elections and currency concerns in Nigeria
Currency fluctuations in South Africa and Turkey
U.S. dollar shortage/restrictions in Egypt, Nigeria, and other countries
Security situation weakening overall sentiment (e.g., in Turkey and other markets in Sub-Saharan Africa)
Saudi Arabia’s National Transformation Program (NTP) and its short-, medium-, and long-term impacts on government, state-owned, and private-sector organizations

12. Growth Dynamics in Key META Markets
Source: Real GDP Growth, EIU, December 2016.

13. META ICT
Source: IDC META Blackbook Q Note: excludes Israel. Spending in US$ constant currency 2015.

14. Convergence of Telecom Services and IT
Source: IDC META Blackbook Q Note: excludes Israel. Spending in US$ constant currency 2015.

15. META IT Spending — Top Markets
Source: IDC META Blackbook Q Note: excludes mobile phones. Spending in US$ constant currency 2015.

16. Market Dynamics in Turkey
Source: Real GDP Growth, EIU Turkey, 2016.

17. Turkey’s Total ICT Spending Will Exceed $22 Billion in 2017
Source : IDC META Blackbook Q All data in U.S.$ constant currency; base year — Data excludes mobile phones.

18. Turkey IT Market 2017 Forecast by Category ($M)

19. IT Spending by Verticals in Turkey
CAGR 2015–20 — High Growth Sectors
Healthcare
7.5%
Utilities
6.5%
Transportation
5.0%
Source: IDC META Verticals Database, Q Note: consumer and education (verticals) and mobile phones (technology) excluded. Others — resource industries, construction, and personal services.

20. The Next Wave of ICT Development in Turkey
Doing more with less
Consolidating and outsourcing legacy IT?
Innovation disrupting traditional ICT mix
Technology enabling business outcomes

21. Agenda META Market Dynamics — State of Business
Transition to the 3rd Platform and Beyond — Perspectives from META
Five Mega Trends Shaping the Turkish ICT Landscape

22. The Impact of Innovation Accelerators
Explore IDC’s 3rd Platform Thought-Leadership Website:

23. IDC’s Innovation Accelerator Research
Internet of Things
Cognitive Systems
Next Gen Security
Augmented and Virtual Reality
Robotics
3D Printing !
“Innovation accelerators are the next wave of 3rd Platform technologies, and they are critical to business transformation!”

24. Innovation Accelerators The 3rd Platform’s Innovation Phase
Wearables
Robotics
Augmented/Virtual Reality
3D Printing

25. By 2018, there will be 22 billion IoT devices installed, driving the development of over 200,000 new IoT applications and services.
WILL BE A GAME CHANGER

26. IoT — Transformational Impact Beginning to Show in Turkey

27. The Move to Digital Transformation (DX)
Explore IDC’s 3rd Platform Thought-Leadership Website:

28. What’s Driving This Digital Transformation?
Improve operational efficiencies
Generate new revenue streams
Rapidly respond to changing conditions
Create new customer experiences

29. Digital Transformation is Moving to the Center of Corporate Strategy!
By the end of 2017, 2/3rds of the CEOs of Global 2000 enterprises will have digital transformation at the center of their corporate strategies.

30. Most Organizations Are Just Beginning Their DX Journeys
65% of organizations are “Digital Explorers” or “Digital Players”
Source: IDC Digital Transformation Maturity Model Benchmark, 2015; n= 317 IT and LoB executives, March, 2015.
Source: IDC European Digital Transformation Maturity Model Benchmark, 2015; n= 412 IT and LoB executives, May 2015.

31. But… What about the Skills?

32. Retrain/ Invest Outsource Retrain/ Cultivate Outsource
How Will This Influence ICT Investments Moving Forward? Which Roles to Grow and Which to Sunset
High Current Importance
Retrain/
Outsource
Invest
Falling Future Importance
Rising Future Importance
Retrain/
Outsource
Cultivate
Low Current Importance

33. Agenda META Market Dynamics — State of Business
Transition to the 3rd Platform and Beyond — Perspectives from META
Five Mega Trends Shaping the Turkish ICT Landscape

34. Cloud Accelerating to a New Level of Adoption1
Cloud Accelerating to a New Level of Adoption
Increased competition among cloud providers is leading to aggressive pricing, bundling, and customer service. Cloud aggregators — telcos and local service providers — will compete to target not only large enterprises but, increasingly, also small and medium-sized businesses (SMBs). !

35. Cloud-First Approach to Many New Workloads Business Outcomes (Rather Than IT Outcomes) Driving Adoption

36. Big Data and Analytics Moving Rapidly from Descriptive to Predictive2
Big Data and Analytics Moving Rapidly from Descriptive to Predictive

37. Big Data and Analytics to Power Innovation Accelerators
Cognitive and Big Data Analytics
IoT-Enabled Analytics
Security Analytics and Machine Learning
Socialytics
Cloud-Based Big Data Analytics

38. Turkey Business Intelligence and Analytics Tools

39. Security Staying at the Top of IT Initiatives in Turkey3
Security Staying at the Top of IT Initiatives in Turkey
New law on the protection of personal data
Ongoing digital transformation initiatives
Investments into threat intelligence, including predictive behavior analysis, to top the CISO’s agenda
Cost optimization and lack of skills to drive demand for security services

40. Security Tops List of CIO Technology Challenges in Turkey $230 Million in Projected Spending in 2017
IT surface area expanding (especially with IoT).
Source: IDC Turkey CIO Summit Surveys Base: 67 organizations.

41. Key Security Challenges Q
Key Security Challenges Q. Please rank your top challenges to enterprise security in the next 12 months
Source: IDC ME Security Roadshow, Base: 104 organizations.

42. Digital Transformation Efforts Underway in Turkey4
Digital Transformation Efforts Underway in Turkey
Source: Turkey CIO Summit Base: 76 organizations.

43. Manage our digital project implementations.
Lines of Business Needs More IT Help What is the single most important role your IT arm could play in your organization’s digital transformation?
32%
25%
24%
Innovation
Help us identify which parts of the business could be digitally transformed through the use of technology.
Technology
Identify emerging technologies that could accelerate our digital transformation.
Project Management
Manage our digital project implementations.
Source: IDC Line of Business Sentiment Study, 2015, n=300 LoB executives.

44. Common IT Organization Barriers to Leading Digital Transformation What are the barriers blocking your IT arm from moving forward?
33%
28%
23% 9% 5% 2%
People
We do not have enough people with the right skills.
Legacy Systems
We have legacy systems to support, which consumes our efforts.
Culture
We do not have a innovative, risk- taking culture.
Partnerships
Our LoB peers do not perceive us as adding value in DX.
Leadership
Our leadership does not have the right vision.
Incentive Systems
Our current evaluation system does not incentivize us on innovation.
Source: IDC IT Executive Survey, Jan 2016, n=94.

45. Beyond Business — Smart Cities Transforming Cities and Public Services5
Beyond Business — Smart Cities Transforming Cities and Public Services

46. Permitting and Licensing: Mobile apps/forms and printing
Smart City Initiatives From Fragmented Apps to Integrated and Centralized Solutions?
Public Safety and Emergency Response: Connected officers, intelligent operation centers, acoustic sensors, and panic buttons
Environmental Monitoring: Weather and atmospheric monitoring, waste management, and smart remote watering
Permitting and Licensing: Mobile apps/forms and printing
Social Services: Connected case workers, food bank inventory, and one touch emergency response
Citizen Engagement: Digital signs, mobile apps, iBeacons, mobile payments, and smart trash
Transportation: Fleet tracking, public transportation, smart parking, and traffic management
Energy: Smart meters, Smart buildings (thermostats and elevators), and connected lighting

47. Consolidation and Cost Optimization
Conclusion
Transformation
Breaking Silos
Cloud Impact
Partnerships
Consolidation and Cost Optimization
Differentiation

48. Thank You @JyotiIDC Jyoti Lalchandani
Group Vice President and Regional MD
IDC Middle East, Turkey, and Africa
@JyotiIDC

49. You Are Invited to IDC’s Events
Security Roadshow
Istanbul, 9 February Ankara, 22 February
Hybrid Cloud Conference
Istanbul, 15 March Ankara, 22 March
CIO Summit
Antalya, 23–25April
Advanced Analytics Summit
Sapanca, May 2017
Security Summit
Sapanca, September
Finance Conference
Istanbul, October
Industry 4.0 Conference
Retail Conference
Istanbul, November
Public CIO Summit
Antalya, November