Digital Transformation for Industry 4.0The Fourth Industrial Revolution

XVIII centuryMechanical machines,

steam power

XIX centuryMass production,

electricity

XXI centuryDigital transformation,cyber-physical systems

XX centuryAutomation, electronics

The four industrial revolutions

MOBILE | PERSONAL | NATURAL | TRUSTEDTHE DISRUPTIVE DIGITAL REVOLUTION

Big data+

IoT44 ZBBy 2020, IoT will include

26B units causing explosion

in the amount of data

available.

Mobile

>50% More than half of information workers across 17 countries report using 3+ devices for work

Social HyperScale

Cloud

~50%Nearly half of total IT spend will be cloud-related by 2020

Devices: “Info Workers Will Erase Boundary Between enterprise And Consumer Technologies.” Forrester Research. August 30, 2012Apps: Gartner: “Predicts 2013: Business Impact of Technology Drives the Futures Application Services Market.” Nov. 21, 2012Big data: Paraphrased from "The Impact of the Internet of Things on Data Centers." Gartner Research, Feb 27, 2014

Cloud: “Prepare For 2020: Transform Your IT Infrastructure And Operations Practice.” Forrester Research. Oct. 24, 2012

*Microsoft: Cyberspace 2025: Today’s Decisions, Tomorrow’s Terrain

The combination is Disruptive & Game Changing

“Third Platform” (IDC), “Nexus of Forces” (Gartner),

Internet Plus (China PM)

Cloud

Social

Big data

Mobility

Mobility

MICROSOFT CONFIDENTIAL

3rd & 4th Platform powering Continuous Rapid DisruptionDemocratization and the Internet

Mobile

Social

“Internet of

Things”

Natural interfaces

Machine Learning

Quantum computing

Delivering

crowdsourced

services

Bridging

physical and

digital worlds

Reinventing the

value chain

Achieving

continuous

uptime

Advancing

human-centric

design

Delivering

faster, smarter

serviceGrowing

sustainably

Cloud

Data

3-D Printing

UBER – advanced features (>>>X10)

https://customers.microsoft.com/en-US/story/uberhttps://www.bloomberg.com/news/features/2016-08-18/uber-s-first-self-driving-fleet-arrives-in-pittsburgh-this-month-is06r7on

http://www.howgoogleworks.net/

ENGAGING

CUSTOMERS

Aligning with

Customer 4.0

TRANSFORMING

PRODUCTS

Innovate products and

business models

EMPOWERING

EMPLOYEES

Reinvent

productivity and

enable a data-

driven culture

OPTIMIZING

OPERATIONS

Agile organization,

3rd and 4th

platforms

Security

Digital Transformation

“

Doctor2U Brings Healthcare to Your Doorstep

Challenge

• Many healthcare systems

today are not patient

centric

• Long wait times, inflexible

scheduling system at

hospital and clinics, lack

of urgent care options,

difficulty finding care for

elderly patients

Strategy

• Leveraged on

Microsoft’s cloud

services to integrate AI

and Machine Learning

into its platform

• Microsoft Azure is used

for app service,

database, storage needs

and chatbox for live

chat feature to improve

customer service quality

Results

• Convenient affordable homecare

services, right to the patient’s

doorstep

• Services include doctor house calls,

free live chat, video consultation,

medication delivery

• Patterns and insights retrieved are

used to provide more effective

treatment plans

Our partnership with Microsoft has helped us embrace cutting-edge technology that gives us the flexibility to scale

our business as quickly as we need to. Microsoft’s data security infrastructure also provides our app with an added

layer of trust and reliability, which is so important in the healthcare industry. As we look to expand regionally and

broaden our offerings to include services such as Ambulance, Nursing and Physiotherapy, we will work closely with

Microsoft to leverage their expertise and solutions to improve our services.”

- Keegan Flynn, Co-Founder of Doctor2U

Existing Organizations?

Limited or no strategy in

place, 19%

In progress with specific

strategy, 47%

Full strategy in place,

34%

113 business leaders from Malaysia responded to the survey.

Respondents also had to work in an organization with more than 250 employees

A1. Which of the following best describes your organisation’s digital transformation strategy?

“The reality of today’s business environment is that customers need the freedom to work from anywhere. What the MaxisONE

Business with O365 essentially does is offers new ways of working anywhere and on the go, through an OPEX model that will

allow businesses to operate more efficiently through collaboration. So it is ideal for all businesses and those who have the

urgent need to grow and do things differently. Moreover, with our leading high speed 4G network, the experience of using this

technologically-driven solution is amplified”.

- Jusnita Johari, Maxis’ Head of Enterprise Marketing and Mobility

Empowering Employees: Reinventing Productivity in Maxis Way

Challenge

• Maxis needed to revitalize

the culture of the

organization by

implementing a digital

solution which allowed

employees to connect and

collaborate in ease

Strategy

• Deploy Yammer and

SharePoint for seamless

collaboration

• Replacement of desktop

PCs with laptops, desk

phones with mobile

phones and fixed

broadband connections

with wireless internet

• Open office space with

workstations

Results

• Increase in employee engagement and

mobile usage

• Live updates via Yammer and

SharePoint allowed for a successful roll

out of Network Testdrive to prove

network’s coverage and enabled

collaboration between employees in the

field and in the office

Challenge

• Aiming to be a pioneer in the

market offering customer

smart building solutions

• Rising cost of labor and

competition from OEM

• Limited capabilities to analyze

sensor data from different

equipment

Strategy

• Smart Facilities Management

solution based on Azure IoT Hub,

Machine Learning

• Captures real-time data from

chillers, lifts, fan coils, other

building services

• Predicts anomalous behavior,

flags irregularities

Results

• Provide real-time data,

analyse performance and

deliver a greater level of

service to its customers

• Reduce costs for managing

the building by 18-20%

Optimizing Operations: UEM Edgenta scales news heights in

Facilities Management

With Microsoft’s advanced tools such as Azure IoT Hub and Machine Learning, we have been able to put our facilities

management knowledge onto the cloud to create a thinking building. The building is now able to provide real-time

data, analyse performance and deliver a greater level of service to our customers.”

— Azmir Merican, Managing Director / Chief Executive Officer, UEM Edgenta Berhad

Top Barriers for Digital Transformation in Malaysia

22%

26%

27%

28%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

• Lack of organizational leadership, supporting government policies & ICT infrastructure, cyber threat concerns, uncertain economic

environment as well as lack of digitally skilled workforce are key barriers in digital transformation among Malaysia’s organizations today

B4. Which of the following do you feel are the key Barriers to your organisation’s digital transformation journey? You may select up to 3 answers that are most relevant to you.

Cyber threats and security concerns

Lack of supporting government policies & ICT

Lack of organizational leadership to ideate, plan, and execute digital transformation

Uncertain economic environment

Lack of digitally skilled workforce

Organizational transformationProf. Peter Hinssen - London Business School

16

“…it’s about mindset and culture more than anything else.”Governments around the world are starting to pursue more advanced thinking. The exponential, the 10x thinking. This is very close to a startup good at that 10X thinking ….. moonshot type of big bets.

The New Normal for Government

17

Klaus Schwab from the World Economic Forum said, “It’s not about

control, it’s about relevance,”

“CYBER SECURITY IS A CEO ISSUE .”

Cyber threats are a material risk to your business

200+DAYS

Median number of days attackers are present on a victims network before detection

$3 TR ILL ION

Impact of lost productivity and growth

Average cost of a data breach (15% YoY increase)

$3.5 MILL ION

Attacks are fast, efficient, and easier than you think

46%

of compromised systems had no malware on them

23%

of recipients openedphishing messages

50%

of those who open, click attachments within the first hour

“ THERE ARE TWO KINDS OF BIG COMPANIES, THOSE WHO’VE BEEN HACKED, AND THOSE WHO

DON’ T KNOW THEY’VE BEEN HACKED.”

JA M E S CO M E Y, D I R E C TO R F B I

MODERN SECURITY THREATS

https://www.shellypalmer.com/2017/02/5-jobs-robots-will-take-first/

https://www.linkedin.com/pulse/5-jobs-robots-take-last-shelly-palmer?trk=eml-email_feed_ecosystem_digest_01-hero-0-null&midToken=AQHqd-cX_oprBg&fromEmail=fromEmail&ut=2IpYHUNyjJvTM1

Make no mistake: at some level, every job can (and will) be done by machine. It

is not a question of if; it is just a question of when.Shelly Palmer, CEO at The Palmer Group

A mindset and cultural shift is required in organization and governments (policy, governance)

https://azure.microsoft.com/en-us/support/trust-center/

https://products.office.com/en-us/business/office-365-trust-

center-cloud-computing-security

We aspire to be the most trusted commercial cloud provider in the world