Predictable Disruption - Tech Vision 2016 Trend 4

Trend 4: Predictable Disruption

People First: The Primacy of People in the Digital Age

The Accenture Technology Vision 2016 identifies five technology trends fueled by the people first principle and that are essential to business success in the digital economy.

Intelligent Automation

Liquid Workforce

Platform Economy

Predictable Disruption

Digital Trust

People First: The Primacy of People in the Digital Age

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Digital ecosystems come from:

3rd party contributors to an industry.

Adjacent industries directly associated with the area of interest.

Digital ecosystems will be the next big wave of enterprise disruption


Connected Car ecosystem crosses

boundaries: infotainment, insurance, car share

The Connected Car ecosystem overlaps into

Smart Home Ecosystem that overlaps into Energy,

Appliances, Online Retailing

Why? Building digital ecosystems has gotten much easier


Digital Technologies:SMAC & IoT technology

is driving the transformation.

Interoperability:More M2M standards then before, but – more companies leveraging the upper echelon of these standards (Wifi, Bluetooth + Zigbee, Zwave, NFC).

Platform Strategies:Companies are exploring more robust digital platform strategies, including opening up data and API

to partners.

Digital ecosystems are already blurring industry boundaries


To what extent is your industry experiencing the following:

Implication: more than ever, expect the unexpected

Industry boundaries are being erased and new paradigms are emerging, every industry is being significantly impacted.

Significantly Moderately Slightly Not at all Don’t know

39%

43%

15%

2%

1%

And as industry boundaries blur, the power of the ecosystem disruption scales exponentially


Across industries, environments or products that used to be seen as isolated and singular in purpose –a factory floor, a car – are becoming focal points for complex networks of machines, software, and people, working in concert and radically changing how businesses deliver value.

Digital disruption is hitting everywhere:

Automotive

Logistics

Energy

Consumer

Healthcare

Media

Traditional boundaries between industry verticals are fading


Disruptions which may have began isolated in a disparate industry are now quickly rippling out to affect how every business operates.

Beyond tech industries: large incumbents are also using digital ecosystems to cross industry boundaries


In the new digital landscape, ecosystems are forming across industries as the unlikeliest partners come together to deliver innovative services and products to their customers.

Accenture research reveals that 44 percent of insurers intend to pursue digital initiatives with partners outside of insurance over the next two years.

One is example is Microsoft and American Family Insurance. They have launched a home automation business accelerator for startups to nurture advances that can help lead to safer and smarter homes.

of insurers intend to pursue digital initiatives with partners outside of insurance over the next two years.

The result? Unexpected newcomers are creating market power shifts


UberHealth:With its existing network of cars and customers and a new set of skilled workers – registered nurses – Uber has been able to provide on-demand delivery of flu shots and similar vaccinations.

Neither hospitals nor major pharmacy chains in the United States would have ever previously seen Uber as a competitor.

No industry change will remain truly isolated


The result?Reshaping of industry boundaries.

Disruption felt on a large scale, where the impact is widespread and pervasive.

The opportunity? Predicting digital disruption


Using the power of their industry knowledge, companies can map out ecosystem scenarios and unveil the disruptive opportunities and threats.

Smart appliances emerge

Cars support wireless connectivity

Robotics on the factory floor

Predictable Disruption: 100-Day Plan

13

1. Appoint a C-suite sponsor to oversee a team that is responsible for championing your new ecosystem and digital partnership strategies.

2. Take an inventory of the ecosystems related to your business and prioritize the list according to those with the greatest potential for impact on your organization. Talk to external industry experts.

3. Ask your team for innovative ideas for how touse emerging digital ecosystems. Envision your competitive position, new value chains, and new use cases for the ecosystems where you plan to compete.

4. Craft the strategy that will bring these ideas to fruition. Start to line up the resources, stakeholders, and investments necessary to forge this new path.

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Predictable Disruption: 365-Day Plan

14

1. Build the partnerships that will support your ecosystem strategy. Identify the key players in digital ecosystems, choose your preferred alliances, and have initial discussions.

2. Pilot an initial foray into a digital ecosystem. Pick the one business process, product, or service that can benefit from existing and new partnerships.

3. Create new metrics to determine success in digital ecosystems. Develop these by tracking the progress of your pilot.

4. Identify new skills demanded to support the expansion of your digital ecosystem strategy.

Copyright © 2016 Accenture. All rights reserved.

Predictions

15Copyright © 2016 Accenture. All rights reserved.

Industries Go HorizontalTraditional industry boundaries disappear, leading to the birth of entirely new industry segments.

Leaders Game the Ecosystem

Strategy teams use gamification to play out and predict disruptions.

3 high-level takeaways

16Copyright © 2016 Accenture. All rights reserved.

Industry boundaries are already blurring, shifting market power to newcomers.

Digital ecosystems are becoming the foundation for the next wave of enterprise disruption.

Enterprises can gain visibility into the disruptive forces of

ecosystems and take action now by developing strategies to forge

new roles and new paths.

Thank you#techvision2016www.accenture.com/technologyvisionCopyright © 2016 Accenture. All rights reserved.

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