ValOli vision on digital transformation 2024

IntroductionValOli BV
ChangingThe Game: A Digital Strategy
How can businesses navigate the challenge of digital transformation
and capture new value in today’s challenging business environment?
—Aad Vredenbregt
Mastering the Challenge of DigitalTransformation
“In the digital age business
has gone into hyperspeed”

CONTENT OF MY PRESENTATION
(Mega)Trends
ExponentialTechnology
DigitalTransformation
Change the Game: Be Digital, get Digital or Perish
How canValOli Help

Take-away
THE ACCELERATING PACE OF CHANGE INTODAY’S SOCIETY
CAUSES CHANGETO BECOME AN EVERYDAY PART OF
ORGANIZATIONAL DYNAMICS
MORETHAN EVER
IT IS KEYTO STAY RELEVANT,
AND ADAPT PACE
“In the next 10 years, we’re going to reinvent every industry on this planet.”
“In this presentation we should be
more explicit on step two”
Dr. Peter H. Diamandis, Founder & Executive Chairman of the XPRIZE Foundation, Executive Founder and
Director of Singularity University, named as one of theWorld’s 50 Greatest Leaders (Fortune Magazine)

NewTechnology adoption curves
Source: Kleiner Perkins, InternetTrends 2018
0%
25%
50%
75%
100%
1900 1915 1930 1945 1960 1975 1990 2005 2017
Adoption
[USA]
G
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a
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Reframing at fast pace ….
Airlines Automobile Telephone Electricity Credit Card Television ATM PC
Cell Phone Debit Cards Internet PayPal iPods YouTube Facebook Twitter
Number of years for a product to reach 50 million users
68 yrs 62 yrs 50 yrs 46 yrs 28 yrs 22 yrs 18 yrs 14 yrs
12 yrs 12 yrs 7 yrs 5 yrs 4 yrs 4 yrs 3 yrs 2 yrs

Competing in a world without borders

We are living in an age of mounting complexity and speed.
Companies are operating in a competitive environment that is six times more
complex than it was in 1955, when the Fortune 500 was launched. For the best
companies, this complex world is an opportunity to gain a competitive
advantage over their rivals.
But, for too many companies saddled with approaches to management that are
outdated and ineﬀectual, it presents a seemingly insurmountable challenge

From Empires to Networks
Empires
Networks

Megatrends shaping the World
KNOWLEDGE & PRODUCTION SOCIETY
I
M
M
A
T
E
R
I
A
L
I
Z
A
T
I
O
N
D
E
M
O
C
R
A
T
I
Z
A
T
I
O
N
ACCELERATION & COMPLEXITY
TECHNOLOGY DEVELOPMENT
S
U
S
T
A
I
N
A
B
I
L
I
T
Y
NETWORK ECONOMY
DEMOGRAPHIC DEVELOPMENT
F
O
C
U
S
O
N
H
E
A
L
T
H
P
O
L
A
R
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Z
A
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O
N
G
L
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B
A
L
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Z
A
T
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O
N
COMMERCIALIZATION
I
N
D
I
V
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A
L
I
Z
A
T
I
O
N
E
C
O
N
O
M
I
C
G
R
O
W
T
H
SOURCE: COPENHAGEN INSTITUTE FOR FUTURE STUDIES

Forces to shapeTech, impacting diﬀerent characteristics
Forces Impacts
Operations &
Processes
Products &
Services
Partners &
Ecosystems
C
u
s
t
o
m
e
r
s
&
L
a
n
d
s
c
a
p
e
Buyers
Com
petitive
Talent &
Resources

Software has strong impact on productivity
Productivity - GDP
per hour worked in the US
$70
$60
$50
$40
$30
$20
$10
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012
2015
Software contribution to Productivity Growth
31%
17%
52%
44%
7%
49%
30%
24%
46%
1974-1995 1995-2004 2004-2012
Software Increased Workforce Skills Other
Source: OECD “The US Software Industry: Engine for Economic Growth and Employment, 2014

1900 1960 1990 2010
Age of Manufacturing Age of Distribution Age of Information Age of Connected Customer
Mass manufacturing makes
industrial powerhouses
successful
Global connections and
transportation systems
make distribution key
•Ford
•Boeing
•GE
•Philips
•Wall-Mart
•Toyota
•P&G
•UPS
Connected PCs and supply
chains mean those that
control information ﬂow
dominate
•Amazon
•Google
•Comcast
•Capital One
Empowered buyers demand
a new level of customer
obsession
•Macy
•Salesforce
•Amazon

Agility:
How to become faster,
more productive, and
more responsive
Hybrid working

The Macro Sources of Disruption
Your
organisation
3.
Infrastructure
2.
Education
1.
Wealth
distribution
4.
Government
5.
Geopolitics
6.
Economy
7.
Public health
8.
Demographics
9.
Environment
10.
Media &
Telecom
11.
Technology

Make new
markets
Hyperscale
platforms
Unconstrain
supply
Reimagine
business
systems
Create new value
propositions
Undistort
demand
Supply
Demand
★Uncover latent supply
★Make capacity available in smaller
increments
★Change supply-side cost
structure by automating,
virtualizing or disintermediating
★Enrich the product or service with
information, social content or
connectivity
★Do more of the customers’ work
for them
★Address unmet demand by
unbundling or tailoring
★Make it easy and make it now
•Find new -cheaper and easier- ways to
connect supply and demand
★Face new competition and/or opportunities
by leveraging customer relationships or
information
★Create or ﬁght network eﬀects
Degree
of
change
in
the
nature
of
supply
and
demand
Digitization can disrupt industries when it
changes the nature of supply, demand or both
Modest change
Extreme change

Een digitale revolutie brengt fundamentele
verandering teweeg in de economie en het
leven van mensen.

‘Alles wat gedigitaliseerd kan worden zal in waarde
afnemen’ ©Technologiecongres Stockholm
BoDs (even of Fortune 500 companies) often have no
idea about breakthrough technologies being made
around the corner that threaten their company's
survival.
Other ways of working: without hierarchical structures
and organized in small ﬂexible units (agile, hybrid).
'In the technology sector, innovation comes by revolution,
not by evolution’.
21st Century Digital revolution
2020 Pandemic accelerated digital transformation and
has proved to be a silver lining across many economies

Online connectivity is growing exponentially
2003 2010 2015 2020
0.5
12.5
16.3
26.3
Connected
devices
[billions]
6.3
6.9 7.3 7.8
Population
[billions]
2008
Number of
connected
devices
surpasses world
population
© Cisco, United Nations

Connectivity
Connected
Devices
Connected
Homes
Connected
Workspaces
Healthcare
Connected
Buildings
Industrial
(internet)
Autonomous
Cars
Connected
Transportation
Augmented
Reality
Surveillance
Ubiquitous
Smart
Cities

ubiquitous
adjective
present, appearing, or found everywhere.

Spending on Digital andTechnology increased during
the pandemic despite belt-tightening in the business
Change in business metrics, 2020 (% of respondents)
65
25
7
Funding of digital/
tech initiatives
Variable
costs Fixed
costs
Physical
footprint
Number FTE’s
in digital/tech
roles
Total Number
FTE’s s
Increase
No change
Decrease
26
18
8
21
38
59
52
43
29
44
19
40 35
11
43

Digital Resilience Among European Organizations
87% of European organizations fall into the medium-high risk category,
meaning that they will need signiﬁcant improvements in digital tools and
capabilities to be ready for disruptive events.
48% Medium Risk
39% High Risk
Low Risk 11%
Very Low Risk 2%
Aug. 2021 - IDC Perspective - European Digital Resiliency Benchmark

Digital transformation is quite simple.
Digital transformation is adopting what are becoming
mainstream digitization technologies such as Cloud, IoT,
Blockchain, mobilizations, Customer engagement, Artiﬁcial
Intelligence, big data and data analytics.
Your challenge: How do you use those technologies to improve the value
of your product, being the value your customers get out of your
product or the value they get out of your service.
“BETTER FASTER CHEAPER”

Impact from technology transformations
over past 2 years (487 respondents)
19
40
24
3
21
47
31
45
34
45
14
1
3 5 4
Significant impact
Some impact
No impact
Negative impact
Figures don’t always sum to 100% because respondents who answered”don’t know” are not shown
Realization
of new
revenue
streams
Increased
revenue
from
existing
streams
Reduced
costs
Improved
employee
experience
21 16
Seven lessons on how technology transformations can deliver value
March 11, 2021 | McKinsey Digital Survey

over past 2 years
19
40
24
3
3
Significant impact
Some impact
No impact
Negative impact
Realization
of new
revenue
streams
Redesigning technology organization to support digital oﬀerings
Transforming vendor-management and sourcing strategy
Scaling data and analytics
Transforming talent-strategy
% of respondents reporting
signiﬁcant impact
22
22
24
30
Top-line measures

over past 2 years
Significant impact
Some impact
No impact
Negative impact
Enhancing IT-architecture
Digitizing end-user experiences
Scaling data and analytics
Transforming talent-strategy
% of respondents reporting
signiﬁcant impact
26
26
33
33
Top-line measures
21
47
1
Increased
revenue
from
existing
streams
21

Lessons on technology transformations
Talent remains the holy grail of technology transformations
—
valuable to pursue but difficult to execute

Successful technology transformation
spans three vectors of activity
Vector 1: Reimagine role of technology
1. Tech-forward business strategy (new tech
enabled business models or customer-facing
products)
2. Integrated business and technology
management (no silos, product/platform
orientation) with strategic spend allocation
3. Steward of digital user experience (design
thinking, user-centricity, seamless integration
with analog)
Vector 2: Reinvent technology delivery
4. Agile@scale software delivery
5. Next gen infrastructure services (cloud, end-
to-end automation, NoOps, platform as a
service)
6. Engineering excellence with top talent (both
internal and external)
7. Flexible technology partnerships (capability-
focused, outcome-based)
Vector 3: Future-proof the foundation
8. Flexible, business-backed architecture rehaul delivered iteratively (open
architecture, microservices …)
9. Data ubiquity and advanced analytics enablement
10. Defenses that preempt evolving threats (cyber, data privacy)
November, 2020 | McKinsey Digital

Emergence of a "Data Driven" business model
Winner
takes all
Two-way
value chain
Smart
Proposition
Generates
client-data
Holostic
Organisation
Scalable,
Global
Community
Platform,
Technology
driven

Digital transformation at its basic level
• Grow revenue
• Improve Customer experience
• Reduce costs
• Boost loyalty and retention
• Differentiate competitively
• Cloud
• Mobility
• IoT
• Analytics
• Artificial Intelligence
• Virtual reality
• Collaboration
• Security
• Insurance claim filed via
smartphone, electronic form
plus photo
• Car schedules service call or
gasstation
• Sensors vs people monitor
remote oil rigs
• Employees use digital tools to
work remotely
Innovative
Application
Technology
Drives
Value
Improves
product
experience

Digital transformation:
Deciding on the Right Business Model
Make it yourself
(using yr own ingredients, on yr own
infrastructure, yr labour, at yr own
premises)
Make it yourself
(using yr own ingredients, process &
people, on someone else’s
infrastructure)
Customize yourself
(using yr won ingredients with
someone else’s main process/tools
and their infrastructure)
License to many
(your IP, but rely entirely on
someone else’s processes, people &
infrastructure, yr name on the box,
highly scalable
Traditional
On-Premises
(“on-prem”)
Infrastructure-
as-a-Service
(IaaS)
Platform-
as-a-Service
(PaaS)
Software-
as-a-Service
(SaaS)
Heavy CAPEX Medium CAPEX Low CAPEX Asset light
Lowest risk | Low Return
total IP protection & control e2e
UX, totally differentiated, less
time and capital to innovate,
hard to scale
Low risk | Some Return
lower CAPEX, maintain
differentiation except UX, total IP
protection, more flexibility,
capital & time to innovate, low
risk
Medium risk | Good Reward
low CAPEX, more flexibility,
capital & time to innovate,
some loss of differentiation re:
delivery & cooking process
(commoditized)
Higher risk | Higher Reward
little labour or assets, services
delivered digitally by partners,
most flexible, highly scalable,
higher margins, more time/
resource to innovate, license IP-
higher risk
Service
DeliveryTypes
The Service Stack
Elements &
processes
Service
Models
Service
Financial & Risk
Models
high
value
to
low
value
Pizza Dough
Sauce &Toppings
Cook the Pizza
Oven
Kitchen
Delivery Delivery
Kitchen
Oven
Pizza Dough
Sauce &Toppings
Cook the Pizza
Delivery
Kitchen
Oven
Cook the Pizza
Pizza Dough
Sauce &Toppings
Delivery
Kitchen
Oven
Cook the Pizza
Pizza Dough
Sauce &Toppings
You Manage
Someone else manages
Example: Pizza-as-a-Service

Digital Disruption has already happened
World’s largest taxi company owns no taxi’s (Uber)
Largest accommodation providers own no real estate (AirBnB, Booking)
Largest phone companies own no telco infra (Skype,WeChat)
World’s most valuable retailers have little/no inventory (Alibaba)
Most popular media owners create no content (FB, Instagram a.o.)
Fastest growing banks have no actual money (SocietyOne)
World’s largest movie house owns no cinemas (Netﬂix)
Largest software vendors don’t write their apps (Apple, Google)

Connectivity will Revolutionize how Organizations Function
Technological and
Digital Productivity
Shifts inWays of
generating Business
Value
Shifts in Resource
Distribution
ChangingWorkforce
Culture andValues
Changes
in the
demand
for
Talent
Changes
in the
supply
ofTalent
Automation
Big Data and
Advanced Analytics
Access to
information and
Ideas
Simplicity in
Complexity
Agility and
Innovation
New Customer
Strategies
New Demographic
Mix
Skill Imbalance Shifting Geopolitical
and Economic Power
Diversity and
Inclusion
Individualism and
Entrepreneurship
Well-Being and
Purpose

Disruptive innovation
Growth
Non-disruptive
innovation
Disruptive
innovation
Offering a
breakthrough solution
to an industry’s
fundamental problem
or barrier
Redefining an existing
industry problem and
solving the redefined
problem
Identifying and solving
a brand-new problem
or seizing a brand-new
opportunity

Digital Media consumption is growing, everything else is shrinking
2011 2012 2013 2014 2015
TV Radio Print Other Digital
41%
35%
14%
12%
6.6%
3%
30%
43%
Mobile
desk/laptop
Consumer Media Consumption Share (US)

From tech evolution to customer revolution
Access
Conversation
Personalization
Customer
expectations
1998 2008 2018
Internet Social networks Computing everywhere
147M internet users 1.6B Internet users
38M smartphone users
6M Twitter users
4.2B Internet users
3B smartphone users
336M Twitter users
Time
+ $411B
Cloud
market
2020

Time drives customer satisfaction
10
35
26
7
22
10
31
23
14
22
3
18
16
28
35
7
20
41
15
9
15
Respondents (%)
Same day 1-2 days 3-5 days 6-10 days >10 days
Very satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Very dissatisfied
© BCG analysis
44
30
13
6
7
[Respons times to clientele]
Digital age

GlobalTop100 companies with largest relative
increase in market capitalization 2019 vs 2009
6.081%
3.187%
2.937%
2.679%
1.934%
1.443%
Netﬂix
Tencent
Salesforce
Amazon
DowDuPont
Nvidia
Naspers 1.394%
Adobe 1.060%
Oil Digital Other

Digital is the new Oil
$349.5b
$289b
$279.0b
$245b
$225.9b
$203.5b
ExxonMobil
General Electric
Microsoft
Citigroup
BP
Royal Dutch Shell
2006
Market Capitalization of the world’s most valuable public companies
2024
$194b
Wallmart
$2,795b Microsoft
$2,994b Apple
$1,570b Amazon
$1,749b Alphabet
$909b Meta/Facebook
$727b Berkshire Hathaway
NVIDIA
$1,223b
$790b Tesla
$185b
Bank of America
Oil Digital Other

US company profits per second
$1,752
$1,244
$1,089
$870
$620
$586
$472
$441
$414
$367
Apple
Microsoft
Alphabet/Google
Bank of America
Wells Fargo
Facebook
Walmart
AT&T
Comcast
Amazon
© Fortune 500 figures for 2020 profits
Oil Software Other

Stock market value techgiants
Amazon
€1440mld
Google
€1618mld
Apple
€2474mld
Microsoft
€2076mld
Facebook
€802mld
Foodstuﬀ
€762mld
Automotive
€1472mld
Pharma
€1411mld
©Companiesmarketcap.com, January 11, 2022

Market valuation of sectors
Oil &
Gas

Products are coming to life!
Products are becoming digital,
get connected and
are starting to produce and collect data.

Smart Systems
Product
Smart
Product
Smart,
connected
Product
Product System
System of Systems
Planters
Tillers
combine
harvesters
Farm
Equipment
System
Farm
Equipment
System
Seed
Optimization
System
Weather
Data
System
Irrigation
System
rain, humidity
sensors
weather
forecasts
weather
applications
ﬁeld
sensors
irrigation
nodes

The connectivity market is huge
270m
connected cars
by 2021
130m
health devices
by 2021
2.7m
pets being tracked
by 2021
660m
smart meters
by 2021
400m
connected home
security & automation
by 2021
70m
drone shipments
by 2021
85m
connected streetlight
shipment by 2021
73m
connected point
of sale devices
by 2021

But we’re only at the beginning….
Manufacturing
Education Provider
Services
Transportation
Wholesale
Insurance
Financial
Services
Govnmt
Telecom
Retail
Healthcare Providers
Media
InformationTechnology
Health Payer
Utilities
Energy
Natural Resources
Trailing Life
Sciences
0%
0%
50% 100%
100%
50%
Digital Processes
(Internally Facing, Average%)
Digital
“Business”
(Externally
Facing,
Average
%
Revenue)
Sustainable
New Business Models
Low Cost
Old Business Models
High Cost
New Business Models
Old
Business
Models
No Industry is Fully DigitalizedYet !

Reframing Strategy in a Digital Economy
Corporations need new strategies in a world of
digital disruptors. That means setting ambitious
visions and coming up with concrete action plans.
The new C-suite mantra: “What can we offer today
that we couldn’t establish yesterday?”

The new C-Suite (business trends)
Business Impact
Organizational
adoption
Incremental Transformational Exponential
Bleeding
Edge
Early
Adopters
Mainstream
The Holistic Employee
Digital M&A Aids
Smart Infra
Digital Compliance
Customer privacy
Tech Consolidation
Time toValue
Digital crisis playbooks
Cybersecurity leadership
Remote working
Centers of Excellence
Smart Manufacturing
DigitalTalent Mngt
Employee engagement programs
Industry 4.0
Products over projects
Chief Digital Oﬃcer
Customers experience design
Digital Operating Models
DigitalTransformation Programs
Digital Business models
Digital Ecosystems/
API economy
Digital ManagementTheory
Data-centric management
Network leadership
Networks of Excellence
Sharing Economy
Growth Hacking
Collaborative Business Networks
Digital disruption
Innovation management
©2010-2018 Constallation Research

Elements of speed deﬁne digital leadership
Make decisions fast enough
Execute plans with speed required
Diﬀerentiated products and services
Measure progress vs. competition
IT organization operates at speed needed
Clear and compelling vision
Launch new economic models
Improve customer engagement through digital
Aggressively fund digital
Right people, skills, positions
8,4%
6,8%
8,4%
6,5%
4,6%
5,7%
4,2%
4,0%
3,9%
3,7%
3,6%
[Relative importance in determining digital leadership]
Source: Bain Digital Insights, 2018

Transforming to digital business
Traditional business
Bolt on
Better products
Functional eﬃciency
Safety and cost
reduction
Digital
touchpoints
Value
proposition
Organizational
alignment
Technology
attitude
Digital business
Digitally integrated
products and services
Enhanced personal
value ecosystem
Cross-functional agility
Speed and innovation
“The Digital Business Imperative”

Go Digital or Keep Crawling
Nine out of ten companies say they’re engaged with digitization, but….…
70% of Digital
transformations fail
• Sole ownership with one person or group (82%)
• People management issues (75%)
• Communication issues (70%)
• Lack of tech and tech knowledge (52%)
• Lack of new business model and strategy (33%)

Components of Digital Business
Customers Partners
Employees
Data
Data
Management
Data

The end of the 20th century company
Where Customers Navigated Siloed Departments
MARKETING SALES SERVICE
Activities
Metric of
Success
Technology
Create content,
events, ads
No of leads
generated
Marketing
Automation
Develop
Relationships
Sales closed
CRM
React to calls,
emails etc
Problems solved
eﬃciently
Call Center

Age of Connected Customer:
Customers have more than Ever
77% 83% 82%
Percentage of business buyers who agree:
“Tech has changed
expectations of how
companies should interact
with me.”
“Tech has kept me more
informed about product
choices than ever before.”
“Tech makes it easier
than ever to take my
business elsewhere.”
Source: Salesforce Research, october 2016

The customer decision journey has radically shifted
towards digital touchpoint
23
8
30
22
8
9
Consideration
36
8
10
13
18
15
Evaluation
30
8
9
9
39
5
Purchase
Digital
Inbound commercial
hotline
Traditional media
Word of mouth
Fysical store
Direct marketing
Derived Inﬂuence Index
“Path to Purchase” McKinsey & Company, January 2013

Organizations in the Age of the Connected Customer
Old Style linear digital business
Participation in digital ecosystems
with platform oﬀerings
• Continuously grow ecosystem
• Move faster than competitors
• Engage with start-ups whose products/services will plug
into the digital ecosystem
• Aware of cost and skills required for innovation
Technologies Oﬀerings
Process Level
Solutions

The Next-gen Operating Model for organizations
Next-gen Operating Model
Autonomous,
Cross-functional
Teams
Flexible, Modular
Platform
Connected
Management
System
Agile,
Customer-centric
Culture
Critical to success is leading change from the top and building a new way of working
across organizational boundaries
The focus here is to put
together a team with the
right combination of skills
to build products and
serve customers.
Faster deployment of
products and services.
Technology infrastructure
should be based modular
architecture that
supports flexible and
reusable technologies
Performance
Management becoming
much more real time, with
metrics and goals used
daily and weekly to guide
Decision Making
Customer-centric
culture--one that
emphasizes speed
and execution over
perfection

Competing in a digital world
Four lessons from the software industry:
1. Moving from products to platforms or pipelines
2. Accelerating revenue by creating new business models
3. Accelerating cycle time and co-creating with customers
4. Creating an agile organization

(Software)Technology drives the business
CIO
CTO
Governance
Enterprise Architecture
Project Management
Developers Analysts
Project Managers
Team Leaders Operations
Business Users Sponsors
Support Units (Legal, HR, Compliance)
Contractors Service Providers Vendors
IT Management
IT Staff
Stakeholders &
Providers
D
e
l
i
v
e
r
y
D
i
r
e
c
t
s
&
S
u
p
p
o
r
t
s
• Applies technology to what business does today
• Good at maintaining status quo
• Focus on efficiency, economy of scale, continuity
• Well-defined processes designed to monolithic IT
• Explores how technology re-imagines the business
• Good at managing constant technology change
• Focus on responding to opportunities at scale
• Dynamic self-organizing process for small IT in volume
Change Agents
Vendors
Service Providers
Support Units
Contractors
Sponsors
Business Users
Operations
Network Leaders
Change Managers
Analysts/
Developers
CIO
CTO
COO
CMO
Old School IT
centralized hierarchical
automation of business
New School IT
decentralized enablement of
digital transformation

Cost Reduction (Employee) Productivity Customer engagement
DIGITAL TO ADDRESS 3 COMMON BUSINESS THEMES
Seen across many regions and industries, including Public
Reduce cost of products or
services, incl government
services
Empower employees to meet
21st century consumer-level
expectations, while maintaining
control and keeping users
accountable
Technology-empowered,
digitally savvy customers are
changing your business.
How you respond determines
whether you win in the age of the
customer.

Factors aﬀecting BusinessThemes most
Role ofTechnology
Market factors
Macroeconomic factors
People skills
Regulatory concerns
Socioeconomic factors
Source: “Redeﬁning competition: Insights form the Global C-suite Study” - IBM Institute for BusinessValue 2016
2004 2006 2008 2010 2012 2013 2014

The role of technology has shifted
Historically, business
requirements collected from
“business users” drove the
technology that then enabled
the business to advance.
Technology purely played a
supporting role in this model.
Technology creates new
opportunities and
fundamentally transforms
businesses in all aspects—
operations, business models,
strategies. It not only enables
the business, but also drives its
growth and can be source of
competitive advantage.
Old School
New School

Technologies Attracting MostVenture Capital
36,2%
Software
2%
Telecom
m
unication
6%
Inform
ation
Technology
9,5%
M
edia &
Entertainm
ent
2,6%
FinancialServices
Biotechnology
17,3% 5,8%
Industrial energy
7,1%
M
edical devices &
Equipm
ent
3,9%
Consum
er Products
&
Services
2,1%
Networking
&
Equipm
ent
[Share of
venture
capital
investment]
Source: analysis of 4,164 investments in US by Martin Prosperity Institute

Companies are allocating higher proportions of
their R&D budgets to software and service offerings
50%
40%
30%
20%
10%
0%
2010 2015 2020
Service Offerings
+5%
Product-based Offerings
-19%
Software Offerings
+43%
Allocation
of
R&D
investment
per
offering
type
Strategy&’s annual Global Innovation 1000 study
(examines the 1,000 public companies that spend the most on R&D)

EVERY BUSINESS IS GETTING DIGITALLY REMASTERED
“I expect many industries to be disrupted by software” – Marc Andreesen

SOFTWARE IS EATING THE WORLD
deWet van Moore (die een verdubbeling
in processorcapaciteit voorspelt binnen
een gegeven tijd) zal ook gelden voor het
tempo waarin wetenschap en techniek
zich ontwikkelen.
“Many industries to be disrupted by software”
de rekenkracht van computers groeit dermate snel dat rond 2020-2040 de
denkkracht van een computer die van de mens zal overtreﬀen (Ray Kurzweil)
Intel 4004
1971
Intel Core i5
2015
3.500 x performance
90.000 x eﬃciency
60.000 x lower cost

EXPONENTIAL TECHNOLOGY
“What we call disruption is a
symptom of Kurzweil’s law of
accelerating returns which
we’ve seen having an impact in
just about every part of society
and every aspect of technology
the world over”

EVERY COMPANY A SOFTWARE COMPANY
The DigitalTransformation (DX) economy will be “driven primarily by code”.
Enterprises’ ability to grow and compete will increasingly depend on their
digital “innovation capacity”—the size and talent of their software
development teams. In the DX economy, “code plus data equal innovation.”
This will make “software developer” the sexiest job of the 21st century.
Enterprises will compete to hire for these essential jobs and software
developers will be key for the creation of the new, revenue-generating,
productivity-enhancing applications, tapping into the potential of new
technologies (e.g., IoT) and embedding data analytics.

Industries are moving at diﬀerent pace
to implement digital transformation
Business
urgency
Political
urgency
Communications
Banking
Retail
Manufacturing
Transport
& Logistics
Utilities
Government
Insurance
Healthcare
Oil & Gas
Consumer
Intensive
Asset
Intensive
Risk &
Investment
Intensive

EXPONENTIAL TRENDS &TECHNOLOGIES
81%
Advanced Analytics
48%
Internet ofThings
43%
Digital Security
40%
Business
Algorithms
22%
Machine Learning
19%
Virtual Customer
Assistants
13%
Augmented
Reality
10%
Blockchain
7%
Autonomous
Vehicles
6%
Robots
Percentage of respondents to select each technology in top three
EXPONENTIAL
TRENDS &
TECHNOLOGIES

THE WHEEL OF DISRUPTION
WEARABLES MAKERS
B
E
A
C
O
N
S
I
O
T
SHARING
V
I
R
T
U
A
L
A
I
A
R
P
A
Y
M
E
N
T
S
APPS
E
P
H
E
M
E
R
A
L
G
E
O
L
O
C
A
T
I
O
N
MESSAGING
GAMIFICATION
B
I
G
D
A
T
A
2
N
D
S
C
R
E
E
N
EXPONENTIAL
TRENDS &
TECHNOLOGIES
REAL TIME
S
O
C
I
A
L
M
O
B
I
L
E
C
L
O
U
D
C
L
O
U
D
In the centre is “The GoldenTriangle:
Social, Mobile, RealTime plus Cloud
driving the core of today’s disruptive
technologies

Examples of Disrupted Industries
1950 2000
$20
$40
$60
Billions of 2014 Dollars
$19.9B
$17.9B
$16.4B
Newspaper incl Digital
Newspaper Print Only Facebook Revenue
Advertising Revenue: Adjusted for Inﬂation, 1950-2014
$0
Google Revenue
1960 1970 1980 1990 2010 2020

Examples of Disrupted Industries
0
50
100
150
2000
Unit Sales (millions)
Digital Camera iPhone
2005 2010
Worldwide Digital Camera & iPhone Unit Sales (Millions)
1999 2001 2002 2003 2004 2006 2007 2008 2009 2011 2012 2013 2014

2017 EmergingTechnologies
Disruptive Potential
Timeframe Disruptive Potential
Change theWorld
Change Industries
Major Advantages
<1 year 1-3 years 3-5 years 5 years
Cloud-native
application
platform
Containers
and container
management
Real-time interaction
management
Spatial analytics
Insight
platforms
Security
orchestration
IoT software
and solutions
Intelligent
agents
Augmented
andVirtual
reality
IoT analytics
Identity and
data management
Customer journey
analytics
AI/Cognitive
Hybrid
wireless
Edge
computing
Blockchain
Drones

Internet
Social
Mobile
Cloud
Big data/Analytics
3D printing
Renewable energy
IoT
Cognitive Systems
Nanotechnology
Robotics
Smart Grid Connected Car
Smart Homes
Next Gen Education
Smart Cities
Connected Healthcare
Sharing economy
Autonomous vehicles
Maker Economy
Energy internet
Logistics internet
Healthy Life Extension
Artificial
intelligence
Blockchain
Future Scenarios
Emerging
Technology Foundations
Genomics
Drones Artificial Narrow Intelligence
Automation of Everything
Cyberwar
Money 2.0
Circular Economy
Artificial General Intelligence
Institution 2.0
Transport 2.0
Empowerment Economy
Decentralization of Everything
Food 2.0
Democracy 2.0
Human 2.0
DISRUPTION SCENARIO

Biotech
Neurotech
Nanotech
Energy & Sustainability
ICT & Mobile
Sensoring
3D (printing)
Artiﬁcial Intelligence
Robotics
Drones
Technology
Domains
Past Present Future
very little overlap between
different technological domains Technologies merging at
accelerating pace
A wave of technological innovations
will disrupt existing businesses
Speed
of
technological
change
EXPONENTIAL GROWTH OF TECHNOLOGY WILL DISRUPT INDUSTRIES AND CHANGE OUR LIVES
“When material becomes digital, it gets the
characteristics of information and can
develop exponentially”
Healthcare
Infrastructure
Construction
Energy
Monitor our own bodies
3-D-printing of buildings
Households producing their own energy
Technological Development
Over the past 20 years technology has
become exponentially cheaper, faster,
smaller and more energy eﬃcient
The speed of
wireless networks
doubles every
The number of
smartphones
worldwide
doubles every
18
months
48
months
Example applications:
Technologies ready for disruption:
smart cities
3D-printing
autonomous vehicles
IoT Virtual- &
Augmented
Reality
Blockchain

How DisruptiveTechnologies can be applied
Example Use Cases
• Identity management
•Voting
• Peer to peer transactions
• Supply chain management
• Smart contracting
• Provenance / traceability
• Asset registration / ownership
•Trade finance
• Record management
Blockchain
Example Use Cases
• Insurance claim validation
• Precision farming
•Infrastructure inspections
•Cargo delivery
•Railway safety
•Construction site management
•Forestry management
•Facility inspection (wind
turbine, oil rig, etc)
Drones
Example Use Cases
• Inventory/material tracking
• Real-time asset monitoring
• Connected operational intelligence
• Customer self-service
• Usage/performance benchmarking
•Data integration/analytics
•Service parts management
•Remote service
•Real time market insights
•Flexible billing and pricing
Internet ofThings
Example Use Cases
•Manufacturing
•Hazardous industries
•Hotels and tourism
•Service industry
•Automation of predictable tasks
•Data management
Robots
Example Use Cases
• Healthcare/ medical devices
•Tools and end use parts
• Prototyping
• Construction manufacturing
•Supply chain optimization
•Customized products
• Remote location production
•Rapid prototyping
3D-printing
Example Use Cases
• Immersive journalism
•Virtual workplaces
•Manufacturing/product design
•Architecture & construction
•Education&training
•Gaming
•Big data management
•Entertainment
•Healthcare
•Merchandising
•Travel andTourism
•Virtual Showrooms
•Printing and advertising
Virtual and Augmented Reality
Example Use Cases
•Managing personal finances
•Trading systems
•Real time fraud and risk
management
•Automated virtual assistants
•Underwriting loans and
insurance
•Customer support, transactions and
helpdesks
•Data analysis and advanced analytics
Artificial Intelligence

Disruptive Capability with greatest impact
on your business over the next decade
Artiﬁcial Intelligence | Machine learning
Digital tech | IoT
Fin tech solutions
Cloud Computing
Blockchain
44.3%
26.2%
11.5%
8.2%
4.9%

Machine Learning & Artiﬁcial Intelligence
AI
Pattern
recognition
Statistics
Databases
Knowledge discovery
Neurocomputing
Datamining
Machine
learning
Machine learning is a category
of research and algorithms
focused on ﬁnding patterns in
data and using those patterns to
make predictions.
Deep learning

What can artiﬁcial intelligence do?
AI can sense….
Hear
See
Speak
Feel
AI can think….
Understand
Assist
Perceive
Plan
AI can act….
Physical
Creative
Cognitive
Reactive
• Natural language
• Audio and Speech
• MachineVision
• Navigation
• Visualization
• Knowledge and
representation
• Planning and scheduling
• Machine learning
• Deep learning
• Robotic process automation
• Deep questioning and
answering
• Machine translation
• Collaborative system
• Adaptive systems
Statistics Econometrics Optimisation Complexity
theory
Computer
Science
Game theory
Foundation layer

What can artificial intelligence (AI) contribute?
Artificial intelligence (AI) refers to the ability of a computer or a computer-enabled robotic system to process information and
produce outcome in a manner similar to the thought process of humans in learning, decision making and solving problems
Artificial intelligent system
Learns from
experience
Uses the learning to
reason
Recognises
images
Solves
complex
problems
Understands
language
(nuances)
Creates
perspectives

AI recommended Use Cases
34%
29%
20%
23%
16%
16%
15%
15%
13%
13%
9%
10%
10%
Customer Engagement Applications
Call Center Service & Support
Digital Marketing platforms
Cyber Security
Financial Management Systems
Vertical Speciﬁc Software
Manufacturing & Operations
Supply Chain Management
Employee Collaboration Suites
Field Service & Support
Asset Performance Management
None (not integrating AI)
Other
Other:
•BI analytics
•Data analytics
•Data management & preparation
•Document management AI
•Medical imaging
•Prediction of Molecular Properties
•Self service knowledgebase

Tech radar Artiﬁcial Intelligence (AI)Technologies
Business
value-add,
adjusted
for
uncertainty
Ecosystem phase
High
Medium
Low
Negative
Creation Survival Growth Equilibrium Decline
Deep learning platforms
Semantic technology
Biometrics
Image and video analysis
Swarm intelligence
Speech
recognition
Natural
language
generation
Robotic process automation
Text anlyatics and NLP
Virtual agents
Machine learning platforms
AI optimized
hardware
Decision management
Signiﬁcant success
Minimal success
Trajectory:
Time to reach next phase:
1 to 3 yrs
3 to 5 yrs
5 to 10 yrs
Q1, 2017

Artificial Intelligence is not just one technology
… but a variety of different sorts of
software that can be applied in numerous
ways for different applications
VIDEOANALY
T
I
C
S
B
I
O
M
E
T
R
I
C
S
FA
C
I
A
L
R
E
C
O
G
N
I
T
I
O
N
RECOGNITION
GESTURE
N
E
U
R
A
L
N
E
T
W
O
R
KS
M
I
N
I
B
O
T
S
N
ATURAL LANGUAGE
PROCESSING
Robotic Process
Automation
Expert
Systems
Inference
Engines
Machine Learning
ComputerVision
Knowledge
Representation
Sensor
Processing
Deep Learning

Artiﬁcial intelligent system
Artiﬁcial Intelligence is more than just an algorithm
Optimisation &
Recommendations
Image Recognition
Text Recognition
Deployment
Decision Support
Data Management
DataVisualisation

How Machine Learning works
1 2
++
+ --
- -
Select data:
Split the data you have into 3
groups: training data,
validation data and test data
Model data:
Use the training data to
build the model using the
relevant features
Validate model:
Assess the model with
your validation data
3
Input Process Output
Feedback
Test model:
Check performance of the
validation model with
your test data
Use the model:
Deploy the fully trained
model to make
predictions on new data
Tune model:
Improve performance of
the algorithms with more
data, diﬀerent features or
adjusted parameters
6 5 4

The pace of progress in AI and machine
learning is accelerating rapidly
DeepMindTechnologies Ltd. in London, U.K., has developed a system to scan 1 million
images from eye scans and is training itself to spot early signs of degenerative eye
conditions.
Rethink Robotics Inc. of Boston, Massachusetts, made massive upgrades to its Sawyer
robots to help nonexperts program routines that instruct the robot how to carry out
complex tasks.
H&R Block’s tax preparers began using IBM’sWatson computer system to maximize
customer deductions.Watson “knows” thousands of pages of federal tax code and will
continually update changes as they occur.
Forward, a San Francisco, California, is attempting to shift traditional health care away
from immediate and reactive care procedures, to proactive care through the use of AI
and wearable sensors.

How Humans and Machines can work together
Perception
Near vision
Speech
clarity
Fine manual dexterity
Coordination
Precision Rate control
Strength Basic speech
Sound localization
Speech recognition
Dynamic ﬂexibility
Night & peripheral vision
Reaction time Stamina
Regular object manipulation
Selective attention
Positive sensitivity
Oral & written expression
Oral & written comprehension
Inductive & deductive reasoning
CreativityCategory ﬂexibility
Scalable processing capacity
Fast recall Computation
Complex problem solving
Judgement
Applying expertise
Active listening
Management
Critical thinking
Ethics
Handling ambiguity
Operations analysis
Routine reading comprehension
Equipment operation &
repair
Pattern recognition
Impartiality Logic
System design
Novelty detection
Condition monitoring
Structured interference
Data discovery
Persuasion Empathy
Emotional intelligence
Social perceptiveness
Negotiation
Abilities
Psychomotor, sensory, physical
Cognitive
Skills
Content, process, system
Social
HUMANS MACHINES
INTELLIGENT
AUTOMATION
ENHANCED ROLE
SPECIALIZATION
IMPROVED
DECISION-MAKING
INCREASED
PRODUCTIVITY,
INNOVATION,
EFFICIENCY

AI to achieve mainstream traction
WISDOM
KNOWLEDGE
INFORMATION
DATA
c
o
n
t
e
x
t
m
e
a
n
i
n
g
i
n
s
i
g
h
t
integration, applied, actionable
patterns, decision making
learning, concept, notion
organized, structured,
categorized, calculated

Four Key domains in which to beneﬁt from AI

Artiﬁcial Intelligence (AI) predictions:
• In 2025, more than half of your customers will select your
services based on your AI instead of your traditional brand.
•In 2027, most interfaces will not have a screen and will be
integrated into daily tasks.
•In 2030, digital assistants will be so pervasive they’ll keep
employees productive 24/7/365, operating in the background for
workplace interactions.

When Will AI Exceed Human Performance?
Beat humans at GO
Win theWorld Series Poker
Fold laundry
Transcribe speech
Assemble any LEGO
Read text aloud
Write a high school essay
Drive a truck
Translate a new language
Replace retail sales person
Write NYTimes bestseller
Perform surgery
Research Math
Most human tasks
2017 2027 2037 2047 2057 2067
Study byYale and Oxford Universities

AI’s Eﬀect on Business across Industries
WHAT EFFECT WILL THE ADOPTION OF AI HAVE ON YOUR ORGANIZATION’S
OFFERINGS AND PROCESSES TODAY AND IN FIVE YEARS?

Regional gains from AI
North
America
Latin
America
Northern
Europe
Southern
Europe
China
Developed
Asia
Total impact
5.6% of GDP
$1.2 trillion
Rest of
World
Total impact
14.5% of GDP
$3.7 trillion
Total impact
5.4% of GDP
$0.5 trillion
Total impact
9.9% of GDP
$1.8 trillion
Total impact
11.5% of GDP
$0.7 trillion
Total impact
26.1% of GDP
$7.0 trillion
Total impact
10.4% of GDP
$0.9 trillion

Top 10 Predictions
30% of IT organizations
will extend BYOD policies
with “bring your own
enhancement” (BYOE) to
address augmented
humans in the workforce
Number of people with
disabilities employed
will triple due to AI and
emerging technologies
reducing barriers to
access.
WHO will identify online
shopping as an
addictive disorder as
millions abuse digital
commerce and
encounter financial
stress
By 2020, AlgorithmsWill
Positively Alter the
Behavior of over 1
Billion GlobalWorkers
By 2022, a Blockchain-
Based BusinessWill Be
Worth $10 Billion
2023 2023 2024 2020 2022
AI identification of
emotions will influence
more than half of the
online advertisements
you see.
Individual activities will
be tracked digitally by
an “Internet of
Behavior” to influence
benefit and service
eligibility for 40% of
people worldwide
40% of professional
workers will orchestrate
their business
application experiences
and capabilities like
they do their music
streaming services
50% of people with a
smartphone but without
a bank account will use
a mobile-accessible
cryptocurrency account
By 2020, Employees Can
CutTheir Healthcare
Costs byWearing a
FitnessTracker
2024 2024 2023 2025 2020

INCREASING DYNAMICS
Disruptive technologies already have begun
transforming industries and markets, requiring
executives to pivot faster than in the past.
The ability to adapt to –data-driven– change is a
signiﬁcant competitive advantage.

To become a data-driven organization
Business Decisions & Analytics
“What are you using analytics for ?”
01
Data & Information
“Do you have access to the right
data?”
02
Technology & Infrastructure
“Do you have the right systems and
tools?”
03
Culture &Talent
“How to build a data-driven
culture?”
06
Process & Integration
“Are your business processes
optimized for data?”
05
Organization & Govenance
“Do you have the right structure
and governance?”
04
02
01
03
04
05
06
Build & leverage
analytics capabilities to
improve business
outcomes

DIGITAL TRANSFORMATION
Digital transformation (DX) will drive “everything that matters in IT” over the
next several years. Succeeding in the DX economy means using technologies
such as mobile, cloud, big data analytics, IoT, AI and robotics to “create
competitive advantage through new oﬀerings, new business models, and
new customer, supplier, and distributor relationships.”

Holistic Approach to DigitalTransformation
WHY
WHAT
HOW
Business needs Inspiration Pace
Deﬁne the
vision
Digitalize
the core
Build new
digital
oﬀerings
Planning
Commercial activities
Operations
Support functions
Create new businesses
Strengthen and
disrupt the core
Solidify the
foundation
Structure and
processes People Data and
systems
Partner
ecosystem
Change
management

Elements of DigitalTransformation
Transforming Customer Experience
•Customer Understanding
•Top-Line Growth
•CustomerTouch Points
Transforming Operational Processes
•Process Digitization
•Worker Enablement
•Performance Management
Transforming Business Models
•Digitally Modiﬁed Businesses
•New Digital Businesses
•Digital Globalization

10 Guiding Principles of a DigitalTransformation
1
2
3
4
5
6
7
8
9
10
Secure senior
management
commitment
Set clear,
ambitious targets
Secure
investment
Stage 1
DeﬁningValue
Stage 2
Launch and
acceleration
Stage 3
Scaling up
Start with
lighthouse project
Appoint a high-
caliber launch team
Organize to
promote new, agile
ways of working
Nurture a digital
culture
Sequence initiative
for quick returns
Build capabilities
Adopt a new
operating model
Roadmap for a DigitalTransformation, McKinsey 2017

Business and technology leaders cited an urgency to
accelerate digital transformation based on key trends
71%
62%
51%
34%
27%
Rising inﬂuence of
consumerization
Evolution of security
from defense to
diﬀerentiator
Relentless regulatory
demands
Restructuring of industry
business models
Emergence of IT as the
driver of business change
IndustryTrends
75%
56%
55%
46%
44%
Rationalize & modernize
IT to reduce run costs
Generate customer &
business insights for better/
faster decision making
Protect the organization
from cyber and other
emerging threats
Develop real-time end-to-
end digital processing
Adopt new delivery
models (SaaS, PaaS,
cloud, outsourcing)
Technology Priorities
62%
50%
50%
50%
Generate customer & business
insights for better/faster decision
making
Protect the organization
from cyber and other
emerging threats
Business Priorities
Cost Reduction
(Employee) Productivity
Customer engagement

DIGITALTRANSFORMATION
GROWTH DRIVERS OPERATIONAL IMPROVEMENT
Demand
Generation
Reach &
Selection
Customer
Purchase
Process
Customer
Experience
Process
Efficiency
Asset
Utilization
Agility
New
Business
Models
Business Driver Levers Business Enabler Levers
Brand awareness
and brand interest
through social
media marketing
Big data analytics to
discover new
customer segments
Being where
customers can easily
find us
Location based
services
Access to customers
across multiple/all
devices
Improved
understanding of
customer
expectations via
ongoing engagement
with customer
Social listening across
all digital media
channels
Big data to improve
customer experience
Clear, seamless, and
secure ways to
purchase
Mobile payments
Big data analytics to
better understand
purchasing behavior
Digitized and
automated processes
Improved process
governance and
efficiency through real-
time insights
Optimized production/
inventory planning based
on demand forecasting
Data-based preventive
asset maintenance
Task automation
optimization through
digital technology such
as sensors
Utilize remote access
and collaboration and
mobility tools for
employees
Integration with partners
in digital ecosystem to
optimize service delivery
Virtual organizations
enabled by mobility and
seamless cooperation
Analytics-based
commercializa-tion
(marketing,
commissions, trade
promotions) to
target investments
and track returns
Customer self-
service
XaaS opportunities
to digitize the
technology and
infrastructure assets

Cost reduction
Strategic ﬂexibility
Focus and specialization
Exploit new market/ product opportunities
Share or reduce risk and capital investment
Move from ﬁxed to variable cost
Why engage in business innovation
by digital transformation?
0% 10% 20% 30% 40% 50% 60% 70%

Beneﬁts of DigitalTransformation
A vast majority of respondents believe their companies see value in
becoming digital enterprises.The most expected beneﬁts are:
80%
40%
0%
Increased
employee
productivity
Increased
customer
satisfaction
Lowered cost
for the
company
Competitive
advantage

DigitalTransformation drives value in business:
enhanced connectivity, automation of tasks, improved decision making and product/service innovation
McKinsey: Digital Value Chain Model
Connectivity
with customers,
colleagues and
suppliers
Innovation
of products,
business models
and operating
models
Automation
of manual
activity, replacing
labor with
technology
Decision making
based on big data
and advanced
analytics
Customer
experience
Product/
Service
innovation
Distribution,
marketing and
sales
Digital
fullﬁlment
Risk
optimization
Enhanced
(Corporate)
Control
•Seamless (multichannel) experience
•Whenever, wherever service propositions
•New digital products/services
•Co-creation of new products
•Digital marketing with higher ROI
•Digital augmentation of traditional channels
•Full straight-through processing and
automatic provisioning
•Virtual servicing and administration
•Improved targetting with customer insights
•Embedded/automated controls and risk
proﬁling
•Improved, real-time management information
systems and decision making
•Seamless integraation into third parties

The New Elements of Digital Capabilities
BUSINESS MODEL
Digital Enhancements
Information-based service extensions
Multisided platform businesses
CUSTOMER EXPERIENCE OPERATIONS EMPLOYEE EXPERIENCE
Experience design Core process automation Augmentation
Customer intelligence Connected, dynamic operations Future-readying
Emotional engagement Data-driven decision making Flexforcing
DIGITAL PLATFORM
Core
Externally facing
Data
Updated framework: emphasis on employee experience and business model innovation. Digital platform
powers other elements and enables further innovation

Who’s engaging in business
innovation by digital transformation?
Technologies that companies in selected regions plan to include in their strategies in 2017:
Germany US Worldwide
Predictive marketing 18% 70% 42%
IoT 42% 30% 39%
Virtual Reality 40% 5% 26%
Machine Learning 20% 25% 25%
Artiﬁcial Intelligence 22% 16% 23%
Augmented Reality 13% 6% 16%
Source: “FutureTechnology Survey” conducted by Qualtrics, Jan 2017

Innovative Companies Generate Premium Shareholder Returns
15
10
5
0
7.5
4.0
6.7
2.9 2.3 3.1
14.0
6.9
Three- and ten-year annualized total-shareholder-return (TSR) premiums of innovative
companies compared to their industry peers, by region
Three- year premium Ten- year premium
Global Americas Europe Asia-Paciﬁc
AnnualisedTSR premium (%)

DISRUPTION @ BUSINESS LEVEL
Analog Web E-business
Digital
Marketing
Digital
Business
Autonomous
Focus
Build relationships
that drive business
or lower cost
Extend relationships
into new markets
and geographies
Tranform sales
channel into a global
medium to drive
eﬃciencies
Exploit the nexus to
drive greater
eﬃciency
Extend potential
customers from
people to things
Smart
(semi)autonomous
things become the
primary “customer”
Outcomes
Optimize
relationships
Extend relationships Optimize channels
Optimize
interactions
Build new business
models
Maximize retention
of and relationships
with things
Disruption
Emerging
technologies
Internet and digital
technologies
Automation of
business operations
Deeper customers
relationships
analytics
Creation of new
value and new
nonhuman
customers
Smart Systems as
customers
Technologies
ERP
CRM
CRM
Web
EDI
BI
portals
Mobile
Big data
Social
Sensors
3D-printing
smart systems
Robotics
Smarter machines
Automation
past present future

HIGH
STRONG
WEAK
LOW
Communities
A
Platforms
B
Traditional
Oligopolist
C
Infrastructure
Organization
s
D
A
B
C
D
Accelerate innovation through many small,
trial-and-error bets by individuals fueled by
diverse motivations
Provide support to communities, enabling
them to scale. Subject to network effects
and thus tend toward “winner takes all”
fragile monopolies.
Seek innovation and efficiency through
vertical integration, incremental
improvements to products/services, and
averaged economies of mass
Provide open access to the benefits of
hyper scaling in scale- and utilization-
sensitive activities. Focus on efficiency, not
innovation
U
NCERTAINTY
ECONOMIES OF MASS
Digital Disruption Has Enabled New Institutional Options with Distinct Economics
Industrial ecosystems :
BORGES MAP
Navigating a World of Digital Disruption

CONTINUOUS INDUSTRY TRANSFORMATION
1st Platform
2nd Platform
3rd Platform: Apps, connected devices
Mobile
Cloud
Social Business Big data
Innovation
Accelerators
Robotics
Natural
Interfaces
3D
Printing
IoT
Cognitive
Systems
Natural
Interfaces
Next Gen
Security
“Future ofWork”
“Immediacy”
“Abundance”
“Eﬃciency”
“Personalisation"
Sensors
Analytics

BUSINESS LEVEL: COMPANY DARWINISM

COMPANY DARWINISM (*)
1973 1983 1993 2003 2013
COMPANIES NEWTO THE FORTUNE 1000 COMPANIES
FAILING
35% 45% 60% >70%
(*)
When technology and society evolve faster than your ability to adapt
The new normal:
no business is too big to fail
or too small to succeed
companies designed to
success in the 20th century
are doomed to fail in the 21st

CITIGROUP predicts
“Over the past two decades, technological disruption affected
approximately 10% of global public companies by market
capitalization. In the coming decade, up to 47% could face pressure to
adapt to some form of technological disruption, according to our analysis
of the most promising emerging innovations today.”
Citigroup’s Financial Strategy and Solutions Group, 2016

Business, even in a long-established industry, can become
altogether obsolete if a company fails to transform in time
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
10%
12%
14%
16%
S&P500
Asset-heavy
industries
EBITDA growth peaks
then decelerates
EBITDA
declines faster
than revenue
EBITDA and
revenues brieﬂy
recover
Prolonged decline in
EBITDA and revenue
Operating
Margin
Asset-heavy: telecommunications, utilities, energy, materials,
automotive, and industrials
“Big Bang” changes from consumer products, information technology,
and ﬁnancial services; others sectors experienced more gradual changes

To stay relevant with your
organization, now and in the future.
After all, that is your raison d'être.

IDC PREDICTS
One-third of theTop 20 ﬁrms
Industry analyst firms such as IDC and Gartner are expected to tell us what the future will look like and they provide the goods.
in industry segments will be disrupted
by new competitors within 5 years
and that is a matter of
“innovate or perish”

Innovation
‘Innovation is like good food: everyone likes it, but only few know how to make it’
Innovation literally means: renewal.We only speak of an
innovation when an idea is successfully put on the market:
better - faster - cheaper

KEY DRIVER
Digital innovation identiﬁed as the key
driver of success in the modern arena.
Companies that neglect digital are unlikely to thrive — and
they'll also lose talent, as employees across all age groups
want to work for businesses committed to digital progress.

Types of Innovation
Signature or
superior methods
for doing your
work
Distinguish
features and
functionality
Complementary
products and
services
Support and enhancements
that surround your offering
How your offerings are delivered
to customers and users
Representation
of your offerings
and business
Distinctive
interactions you
foster
How you make
money
Connections with
others to create
value
Alignment of
your talent and
assets
Most big breakthoughs in history comprise some
combination of these 10 types of innovation
© Innovation-firm Doblin
Innovation
Wheel

Trends & Drivers ‘20s
Product Innovation
Service Innovation
Process Innovation
MEGA
TRENDS
INNOVATION DRIVERS
Customer
needs
RFID
on products
AR in
maintenance
Machine
Learning
Forecasting

INNOVATE
0%
10%
20%
30%
Innovatie
van
producten
en
diensten
28% Sterk
netwerk
12%
Aantrekken
van de
markt
11%
Acquisitie
9%
Belangrijkste aanjagers van groei onder Nederlands snelst groeiende ondernemingen
(Functioneel)
verbeteren van
bestaand product
55%
Organisatie,
cultuur verbeteren
14%
Focus op
marketing &
design
15%
Anders
16%
Voorkeur voor innovatievormen onder FD Gazellen
“create competitive advantage through new oﬀerings, new business models, and new customer, supplier, and distributor relationships.”

DIGITAL INNOVATION IDENTIFIED AS THE KEY DRIVER OF SUCCESS
Customer Engagement Strategy
The focus of a customer engagement strategy is the
development of customer loyalty and trust — and, in
the best cases, passion. Companies choosing this
approach offer seamless, omnichannel customer
experiences, rapid responses to new customer
demands, and personalized relationships built upon
deep customer insights. Recognizing the always-rising
bar of customer expectations, companies with a great
customer engagement strategy are constantly
identifying new opportunities to connect with their
customers.
Digitized Solutions Strategy
A digitized solutions strategy transforms what a
company is selling. It seeks to integrate diversified
products and services into solutions, to enhance
products and services with information and expertise
that help solve customer problems, and to add value
throughout the life cycle of products and services.
Over time, digitized solutions can transform a
company’s business model by shifting the basis of its
revenue stream from transactional sales to
sophisticated, value-laden offerings that produce
recurring revenue.
Targets superior, personalized
experiences that engender
customer loyalty.
Targets information-enriched
products and services that deliver
new value for customers.

The innovation radar
develop innovative new products/services
Offerings (What)
Process(How)
Improve efficiency and effectiveness
Customers (Who)
unmet customer needs or underserved segments
Presence (Where)
innovative points of contact, new channels
Platform
common components or building blocks
Solutions
integrated, customized offerings that solve end-to-end customer problems
Customer Experience
optimize customer interactions across all touch-points
Value Capture
innovative new revenue streams
Brand
leverage brand into new domains
Networking
create intelligent and integrated
network-centric offerings
Supply Chain
think different about sourcing and fulfillment
Organization
adjust form, function or activity scope

Investment in R&D Innovate
Israel
Z-Korea
Japan
Zweden
Oostenrijk
Zwitserland
Denenmarken
Finland
Duitsland
US
Belgie
Oeso
Frankrijk
Slovenie
Singapore
IJsland
Australie
China
Nederland
Tsjechië
Noorwegen
Engeland
Canada
Ierland
Estland
Hongarije
Italie
Luxemburg
Portugal
Spanje
Slowakije
Investeringen in R&D in % van het bbp (2015)
Nederland gaf in 2015
ruim €13,6 mrd uit aan
onderzoek en
ontwikkeling. Bijna de
helft van dat bedrag
heeft de eigen industrie
voor zijn rekening
genomen, een derde is
geﬁnancierd door de
overheid en 15% door
buitenlandse
organisaties.
Bron: OESO
4
3
2
1

10 DigitalTransformation Predictions
that will shape the Future of IT
By now, at least 55% of organizations will be digitally determined, transforming markets and reimagining the future through new
business models and digitally enabled products and services.
By 2022, digital will have become fully embedded, more than 60% of CEOs will have spent part of their careers leading digital
initiatives.
The paramount importance of customer advocacy will result in 60% of B2C brands embracing net promoter score as their leading
success metric by the end of 2020.
By now, 80% of enterprises will create data management and monetization capabilities, thus enhancing enterprise functions,
strengthening competitiveness, and creating new sources of revenue.
By now, 30% of G2000 companies will have implemented advanced digital twins of their operational processes, which will enable
ﬂatter organizations and one-third fewer knowledge workers.
By 2023, 35% of workers will start working with bots or other forms of AI, requiring company leaders to redesign operational
processes, performance metrics, and recruitment strategies.
By now, 30% of G2000 companies will have allocated capital budget equal to at least 10% of revenue to fuel their digital strategies.
By 2021, prominent in-industry value chains, enabled by blockchains, will have extended their digital platforms to their entire
omni-experience ecosystems, thus reducing transaction costs by 35%.
By 2021, about 30% of manufacturers and retailers globally will have built digital trust through blockchain services that enable
collaborative supply chains and allow consumers to access product histories.
By 2023, 95% of entities will have incorporated new digital KPI sets — focusing on product/service innovation rates, data
capitalization, and employee experience — to navigate the digital economy.

HOW TO STAY AHEAD OF DISRUPTION: INNOVATE
Oﬀer/Join Platforms and Ecosystems — Not Just Products
Totally eliminate persistent customer pain points
Dramatically reduce complexity
Cut prices continuously
Make stupid objects smart
Teach your company to interact with customers
Be utterly transparent
Make loyalty dramatically easier than disloyalty

Diagnostics Design Execution
Streamline client
relationships
Diagnose customer
experience journey
Reform customer
journey
Collect feedback
information
Design experience
dashboard
Improve organisation
structure
Develop IT plan
Execution of change
management
Building a customer-centric B2B organization

Innovation onTop of the Agenda
In boardrooms around the world, innovation is top of the agenda
•Transformative technologies move from lab to market,
revolutionizing business models, industries and markets.
• Key challenge for any company is the sheer volume and breadth of transformative
technologies (such as genomics, nanotechnology, robotics, advanced materials, industry 4.0
and exponential technologies) poised to shake up the status quo.
•Majority of executives (74%) state that innovation is more important
than cost reduction for long-term success.
• Executives may view innovation as a strategic ace for coping with transformative forces,
allowing them to steer transformation instead of being crushed by it.
ManagementTools &Trends survey

Corporate Innovation
Core Market New Market
Incremental
innovation
Can do this from regular,
mainstream business
units
Need a better idea
Radical
innovation
Need a corporate
incubator
Need a diﬀerent structure
(not a regular corporate
incubator)

Being bold on innovation gives companies a bigger
economic advantage
% of organizations’ digital oﬀerings, by category
Digital versions of
formerly analog
products/services
Existing products/
services enhances
with new digital
features
Entirely new digital
oﬀerings
Top economic
performers
Others

The agile organization as the new
dominant organizational paradigm
From organizations
as “machines”….
…to organizations
as “organisms”….
Teams built around end-
to-end accountability
“Boxes and lines”
less important,
focus on action
Quick changes,
ﬂexible resources
Bureaucracy
Top-down
hierarchy
Silos
Detailed
instructions
Leadership shows
direction and
enables action

Business Model Innovation
Leap of Faith
Volume
Chasing
Support theValue
Proposition with a
new operating model
Redesign the model
to Capture Margins
Build new
Capabilities
Leverage
External
Partners
Redefine
interactions
with
Customers
Redefine
the basis of
Differentiation
Develop a
new Cost
Model
Find new
Ways to
Monetize
Incremental
Changes
Redefine theValue
Proposition
Shift from
Product to
Service
Shift from
Product to
Experience
Shift from
Product to
Outcome

Product/Service Innovation
Horizon #1
Extend and defend
core business
Horizon #2
Build emerging businesses
Horizon #3
Create viable options
Time [yrs]
Proﬁt
New Market
Existing market that
we do not serve
Existing market that
we currently serve
Knowledge
of
the
Market
Knowledge of Technology
New
Technology
Existing
technology that
we do not use
Existing
technology that
we currently use
Exploration
with new
technologies
NextGen
products
Improvement
Extension
Variants
Cost Reductions
70%
20%
10%
H
o
r
i
z
o
n
2
o
p
p
o
r
t
u
n
i
t
i
e
s
H
o
r
i
z
o
n
3
o
p
p
o
r
t
u
n
i
t
i
e
s
H
o
r
i
z
o
n
1
o
p
p
o
r
t
u
n
i
t
i
e
s
Adjacent growth
Exploration into
new markets

Innovation Portfolio
TRANSFORMATIONAL
Developing breakthroughs
and inventing things for
markets that don’t yet exist
ADJACENT
Expanding from existing
business into “new to the
company” business
CORE
Optimizing existing
products for exisiting
customers
USE EXISTING PRODUCTS
AND ASSETS
ADD INCREMENTAL PRODUCTS
AND ASSETS
DEVELOP NEW PRODUCTS
AND ASSETS
HOWTO WIN
WHERE
TO
PLAY
SERVE
EXISTING
MARKETS
AND
CUSTOMERS
ENTER
ADJACENT
MARKETS
AND
SERVE
ADJACENTCUSTOMERS
CREATE
NEW
MARKETS
AND
TARGET
NEW
CUSTOMER
NEEDS

Approaches to drive the next-generation
operating model
Lean process
redesign
Digitization
Intelligent
process
automation
Advanced
analytics
Business
process
outsourcing
Digitize customer
experience and day-to-day
operations
Introduce intelligent
automation to replace
human tasks
Provide intelligence to
facilitate decision making
Drive the next wave of
process outsourcing/
oﬀshoring
Streamline processes and
minimize waste

Technology is causing a revolution
1782
Power Generation
Mechanical Automation
(ﬁrst mechanical loom)
Engineering Sciences
Mobility
Electronics
Connectivity, IA
1913
Industrialization
First assembly line
1954
Electronic Automation
First programmable PC
2010
Smart Automation
1st
INDUSTRIAL
REVOLUTION
Steam engine (GB) Conveyer Belt (US) Computer, NC, PLC
2nd
INDUSTRIAL
REVOLUTION
3rd
INDUSTRIAL
REVOLUTION
4th
INDUSTRIAL
REVOLUTION
Introduction of mechanical
production facilities with
help of water and steam
power
Introduction of a division of
labor and mass production
with the help of electrical
energy
Use of electronic and IT
systems that further
automate production
Introduction of the Digital
ConnectedWorld

Industry 4.0
Customer
Driven
Engineering
Connected
Products
Service
Analytics
Strategic
Enabled
Ecosystem
Plug & Play
Logistics
Factory 4.0
Intelligent
Procurement
Collaborative
Planning
Omni-
channel
Enablement
Demand
Sensing &
Shaping
Social
Media
Analytics
Productive
Customer
Insight
Smart
Product
and
Service
Intelligent
Marketing
Digital
Supply
Chain

Six building blocks to help industrials succeed at digitization
Develop and up
skill talent
Identify talent needs and
strategies for filling any
gaps. Create new
organizational structures
to integrate digital
talent, and leverage
digital learning
programs, technology,
and external sources to
develop talent
Create a
business-led
technology
roadmap
Develop and align on a
digital vision for the
organization, always
considering the impact
on distributors
Adopt an agile
delivery
methodology
Rapidly test digital
campaigns and make
revisions based on
insights gleaned from
the field
Shift to a
modern
technology
environment
Create new technology
that covers areas
including commerce
backbone services, front
ends, and integration
acrchitecture
Focus on data
management
and enrichment
Consider data-related
issues in strategic road
maps, such as
architecture
requirements, and
identify specific use
cases that will benefit
from analytics
Drive the
adoption and
scaling of digital
intiatives
Scale change across the
organization, with sa
focus on product, service,
and order fulfillment;
commercial strategy and
execution; and customer
service and transactions
May 27, 2021 | Article

To succeed at digitization, industrials must change
processes in three categories
Product, service offer, and
order fulfillment
Commercial strategy
and execution
Customer service issue
resolution
Primary
• Product and service offer
• Order fulfillment
• Channel partner management
• Pricing
• Sales incentives and crediting
• Customer service issue resolution
Secondary
• Master data, including contracts and
creation of new accounts
• Sales analytics
• Customer, sales commissions,
and change management
• Transactions/finance (accounts
receivable, credit check, credit
cards, tax, collections)
May 27, 2021 | Article

TECHNOLOGIES READY TO EXPLOIT
๏ Robottechnology
๏ Internet ofThings
๏ 3D-printing
๏ Nano-technology
๏ Cloudcomputing
๏VR, serious gaming
๏ Big Data and AI, ML
Future
proof

“SUCCES COMES TO THE ONES WHO KEEP ON TRYING”
What most Corporates think What Startups illustrated What Startups learned
Learn
Learn
Learn
Learn

Manieren om smart business te ontwikkelen.
Op afstand Verzamelen gegevens
Integreren van
functies
Trainbaar of zelﬂerend
Producten slimmer te maken
Maatwerk Flexibeler
Eﬃcienter Kwalitatief beter
Slimmer produceren
Kennis Advies
Producten Gebruik
Dienst Data
Op een andere manier geld verdienen
Intercommunicatie “Crowd” als bron
Verklein mensfactor Behoud aandacht
Breakthrough
technologie Startups
Sector veranderen
Future
proof

INTERNET OF THINGS
• Sensor technology will make devices aware of other devices and the world around them.
• Embedded systems will equip them with ‘a brain’ to process and communicate their
observations.
• Cloud technology and Big Data solutions will collect, process, transport and store the
massive amounts of information sensed and communicated by billions of devices.
Together, these developments constitute the Internet ofThings, an internet-style network of
interconnected, intelligent machines.

The Internet ofThings ecosystem
Remote
Internet Network Gateway
IoT Devices
Analytics
Data Storage
Analysis
Command/RFI
Data
Analysis
Data

Industries seeing largest returns from IoT investments
industries with
2014 revenue gains
from IoT > 30%
Industrial Manufacturing
Banking & Financial Services
Telecom
Energy
Retail
Travel,Transport & Hospitality
HighTech
Helath Care & Lifesciences
Utilities
Automotive
Insurance
Consumer Packkaged Goods
Media & Entertainment
25%
0%

Digital technologies transforming the machinery landscape
3-D Printing
Additive manufacturing can
produce a fuel-nozzle for a
Boeing aircraft, which is 5
times as durable and
weights 25% less
Cloud control
Beckhoff Automation provides
cloud-based machine control
systems that work with MS
Azure, SAP Hana and Amazon
Web Services
Data Insights
John Deere collects data
during planting, crop care
and harvesting, and delivers
insights to help farmers
maximize yields
Improved Efficiency
Joy Global monitors mining
equipment and provides data
that help mining operators
make real-time decisions on
machine operations,
potentially reducing downtime
Continuous Monitoring
Schaeffler monitors the
condition of it’s bearings under
various loads, to proactively
recommend maintenance and
upgrades

Digital technologies create new opportunities across machinery value chain
Smart Factory
Advanced Robotics
Internet ofThings
Big Data Segment-of-one sales
and marketing
Digital Engineering
3D printing New product forms:
smaller batches
Advanced spare parts
delivery
Mobile Applications Digitally enabled ﬁeld
force
Omnichannel preferences
Key
digitalization
trends
for
machinery
Digitally enhanced
products; product
development based
on better customer
insights
Accelerated
prototyping and
testing; advanced
design
Monitoring of usage,
failure patterns and
optimized spending
Co-development
using digital
prototypes; make vs
buy for components
Next-generation
production and
manufacturing
(machine-to-
machine
augmented
reality and self-
governing
systems)
Autonomous
delivery with real-
time tracking of
product ﬂow
Seamless customer
journey across touch
points tailored to
customers’ needs and
New business
models based on
data
R&D Procurement Production
Sales &
Distribution
Service

Industry 4.0 Levers mapped to
mainValue Drivers
Value
Drivers
Service/
Aftersales
Resource/
Processes
Asset
Utilization
Labour
Inventories
Quality
Supply/
demand
matching
Time to
market
Industry 4.0 levers
๏ Smart energy
consumption
๏ Intelligent lots
๏ Realtime yield operation
๏ Routing ﬂexibility
๏ Machine ﬂexibility
๏ Remote monitoring
๏ Predictive
maintenance
๏ AR for maintenance
and repair
๏ Human-Robot
cooperation
๏ Remote control
๏ Digital perf
management
๏ Automation of
knowledge work
๏ In-situ 3D printing
๏ Realtime supply chain
optimization
๏ Batch size 1
๏ Statistical process
control
๏ Advanced process
control
๏ Digital quality
management
๏ Data-drive
demand prediction
๏ Data-driven
design to value
๏ Customer
cocreation
๏ Open innovation
๏ Concurrent
engineering
๏ Rapid
experimentation
๏ Simulation
๏ Predictive maintenance
๏ Remote monitoring
๏ Virtually guided self-
service
30 to 50%
reduction of machine
downtime
3 to 5%
productivity
increase
45 to 55%
increased productivity
in technical professions
through automation of
knowledge work
20 to 50%
decrease cost for
inventory holding
10 to 20%
reduction cost for
quality
85%
increase of forecasting
accuracy
20 to 50%
reduction in time to
market
10 to 40%
reduction of
maintenance costs
Source: “Industry 4.0: How to navigate digitization of the manufacturing sector”, McKinsey 2015

State of DigitalTransformation research by Brian Solis
Six Stages of DigitalTransformation
BUSINESS AS
USUAL
Organizations operate with a
familiar legacy perspective of
customers. processes, metrics,
business, models and
technology, believing that it
remains the solution to digital
relevance
PRESENT
AND ACTIVE
Pockets of
experimentation are
driving digital literacy
and creativity throughout
the organization while
aiming to improve and
amplify specific
touchpoint and processes
FORMALIZED
Experimentation
becomes intentional
while executing at more
promising and capable
levels. Initiatives
become bolder and, as a
result, change agents
seek executive support
for new resources and
technology
STRATEGIC
Individual groups
recognize the strength
in collaboration as their
research, work and
shared insights
contribute to new
strategic roadmaps that
plan digital
transformation
ownership, efforts and
investments.
CONVERGED
A dedicated digital
transformation team
forms to guide strategy
and operations based on
business and customer-
centric goals.The new
infrastructure of the
organization takes shape
as roles, expertise,
models, processes and
systems to support
transformation are
solidified
INNOVATIVE &
ADAPTIVE
Digital transformation
becomes a way of
business as executives
and strategists recognize
that change is constant.
A new ecosystem is
established to indentify
and act upon technology
and market trends in pilot
and ,eventually, ar scale.
“Collectively, these six stages serve as a digital maturity blueprint
to guide purposeful and advantageous digital transformation”.

Take-away
Depending on how much organizations embrace digital
transformation eﬀorts, they will either be labeled leaders or
laggards in the industry. — IDC, 2018

How canValOli help to Survive andThrive in a World of Disruption?
If you want to go fast, go alone
If you want to go far, join forces

Nine Dimensions of Organizational Health
Direction
Coordination & Control
Accountability
External Orientation Leadership Innovation & Learning
Capabilities Motivation
Culture & Climate
Shared vision
Strategic clarity
Employee involvement
Meaningful values
Inspirational leaders
Career opportunities
Financial incentives
Rewards & recognition
Role clarity
Perfomance contracts
Consequence management
Personal ownership

New, prominent role of technology
What can your company do
that it couldn’t do yesterday?
Mastering the Challenge of Digital Innovation

Determine how your Company Succeeds
Minimum
Threshold to
compete
Customer
Intimacy
Product
Leadership
Operational
Excellence
Companies that focus on one of these
strategic approaches make more money
than those who select two or more
approaches to succeed.
©Treacy and Wiersema Model for Strategic Differentiation

Succeeding requires superior capabilities across ten domains
1. Vision and Strategy
Align stakeholders on prioritized objectives
and a clear future-state visualization
2. Value drivers and
cost
Quantify value and cost of use cases and
capabilities directly linked to the business
case
3. Product road map
Sequence and execute the product and
architecture road maps
4. Customer experience
and design inputs
Deﬁne user journeys and requirements
based on human-centered design
5. Platform and Data
architecture
Design and implement a modern
architecture, starting with a minimum viable
product (MVP)
6. Vendor strategy and
management
Design and execute sourcing strategy and
vendor relationship management
7. Program management
and governance
Establish agile control tower to oversee and
enable eﬃcient delivery
8. Talent planning and
capability building
Assemble or build needed skills to execute
the mission and maximize value realization
9. Operation and
management
Tranisition to future-state resilient operation
model, supported by changes driven by the
transformation needed (eg. business processes)
10.Culture and change
management
Incorporate change management across the
organization, and build a culture of
continuous learning
Change management
Planning Execution
Strategy Technology Governance Adoption

Richting van de innovatiestrategie
Voor het bepalen van de richting van de innovatiestrategie is het van belang te
doorgronden waarom bepaalde ontwikkelingen zich in de markt voordoen.
1. Wat zijn de onderliggende krachten van ontwikkelingen die zich in de markt
voordoen?
2. Welke patronen zijn waarneembaar?
3. Waar zit de toekomstige proﬁt-zone?
4. Wat betekent dat voor de organisatie en de te kiezen ontwikkelingsrichting?
5. Hoe te anticiperen op datgene wat komen gaat om daadwerkelijk
concurrentievoordeel bereiken?

Innovatiestrategie
1. Waar ligt de focus op zoek naar innovatieve ideeën: binnen of buiten de
organisatie?
2. Hoe willen we innovatieve ideeën de organisatie laten instromen: top-down
(management-driven) of bottom-up (grassroots)?
3. Hoe willen we dat innovatieve ideeën worden ontwikkeld: door onze eigen mensen
(spin-outs, spin-ins) of via aankoop (mergers & acquisitions, venturing)?
4. Waar moet het innovatieproces plaatsvinden: los van de corebusiness of
geïntegreerd in de lijn? Gecentraliseerd (op corporate level) of gedecentraliseerd (in
de businessunits)?
5. Hoe willen we het innovatieproces vormgeven en managen: als een systematisch
proces of informeel en organisch (‘duizend bloemen laten bloeien’)?

COMBINE DESIGNTHINKING, LEAN STARTUP
AND AGILE
Empathize
Deﬁne
Ideate
Try
Experiments
Pivot/Persevere?
Learn
Sprint
planning
Sprint
execution
Sprint
review
Shippable
increment
Product
backlog
M
E
A
S
U
R
E
B
U
I
L
D
ITERATE
DESIGNTHINKING LEAN STARTUP AGILE
Customer PROBLEM Customer SOLUTION
CONCRETE
ABSTRACT

Operating-model maturity,
measured across 17 elements
Purpose
Value-creation logic
Ecosystem
Team and units
Central organization
Ways of working
Leadership
Culture
Workplace andTools
Architecture
Renewal
Capabilities
Priority Setting
Transparency
Talent
People model
Development practices
Strategy
Structure
Process
People
Technology
Average score
1 (Gaps) 2 3 (Good) 5 (Great)
4
2.5

How to reinvent your company for the new decade
Compete on the rate of learning by integrating AI, data systems and other
technologies; shaping and tapping into larger networks of collaborators and
pursuing dynamic advantage rather than static capabilities
Build a hybrid learning organization that combines the speed and pattern-
matching capabilities of algorithms, the higher-order reasoning and
imagination of humans, and new management models that remove the
bottlenecks of hierarchical decision-making
Apply the science of change to build capacity for continual reinvention, which
will be necessary in a faster-changing environment
Harness human diversity to increase the range of ideas, approaches and
capabilities within the organization, thus creating advantages in both
innovation and resilience
Pursue social as well as economic value by following a clear social purpose and
integrate social and ecological considerations into strategy to maintain trust
with all stakeholders and to thrive in the long run.
Trends and challenges of
the ‘20s
What will it take to
win the ‘20s
Increased
AI adoption
New nature
of work
Demographic
headwinds
Geopolitical
instability
Environmental
externalities
Protracted
uncertainty
Compete on
Learning
Build a hybrid
company
Apply the
Science of Change
Harness Diversity
Create Sociatal and ShareholderValue

Where the
magic happens
Your
comfort
zone

Wrap-up: predictions for future of businesses
Embracing digital ﬁrst — New strategies for complexity and ubiquity
Digital ecosystem —Thriving in a multiplatform world
The velocity of connectedness —The future is data in motion
Engagement reimagined — From responsive to anticipatory

ValOli: Mastering the Challenge of Digital Innovation
While the magnitude of the
coming change shouldn’t bother us,
it is the speed of the change we
should be worried about.
Digital transformation initiatives will
take large traditional enterprises, on
average, twice as long and cost twice as
much as anticipated

Change management is a Dolphin not a Whale
Delivery
Delivery
Delivery
Delivery
Change eﬀort
Change eﬀort

Four interrelated trends unwind the old rules of management
More connectivity
•Rising interconnectivity speeds
disruption, upending the principles
for disruptive innovation
•Free-moving information bypasses
-and challenges- existing hierarchies
Lower transaction costs
•Barriers to entry and costs to achieve
scale are evaporating
•Internal bureaucracy presents more
friction than external interactions
and free-market transactions
Unprecedented
automation
•Increased automation undercuts the
mechanistic thinking upon which
organizations were created
•200 years of management thinking
on control and predictability become
obsolete
Fundamental societal
shifts
•Gen Z and beyond will have new,
fundamentally diﬀerent career
aspirations
•Expect more variety and learning,
more leadership and promotion
opportunities, more social impact,
and more career mobility

Company of the Future: Bionic
Personalized customer
experience and
relationships New oﬀers,
services and
business models
Bionic
Operations
Dynamic
platform
organizations
Digital
Talent
Modular
Technology
Data
and AI
PURPOSE
AND
STRATEGY
ENABLERS
OUTCOMES
HUMAN
Organization,
talent, and ways
of working
TECHNOLOGY
Data and digital
platforms
Digitally enabled companies,
combining technology with the
flexibility, adaptability, and
comprehensive experience of
humans to achieve their full
potential.

Capabilities of Software Enterprises
Data Services and Infrastructure

Aspects of Business Model Innovation
Customer
Needs
Revenue
Models
Cost
Structures
Employee
Competencies
Process
Capabilities
Technological
Capabilities
Ecosystem
Partners
Channels
Oﬀerings
Customer
Relationships
Customer
Financial
Model
Capabilities
Value
Proposition
Revenue
Cost

(Platform) Capabilities to deliver
desired outcomes
Ecosystem
role
Value
proposition
VISION
AND
AMBITION
Reward sharing
New business
models
STRATEGIES
FOR A
PLATFORM
WORLD
ECOSYSTEM
ACTIVATION
New digital
metrics
Eﬀective collaboration
Ecosystem
governance
(Platform
driven)
Innovation
ACCELERATING
OPEN
INNOVATION
(Platform)
Talent
Sponsorship
Organization
alignment
TALENT AND
BEYOND
DATA AND
TECHNICAL
ELEMENTS
Data
capabilities
Foundational
(platform)
technologies
Emerging
technologies
Operational
Strategic
Source:WEF DigitalTransformation Initiative

10
18
24
24
20
3
21
35
18
18
7
2018-20 Currently
Top priority
Top 3 priority
Top 5 priority
Top 10 priority
Not top 10 priority
55%
of companies
currently rank
new business
building as a
top 3 priority
Share of executives ranking business
building as top priority
Importance of building new businesses at respondents’ organizations [% of respondents] (n=1,178)
New Urgency
a global phenomenon: a
majority of leaders invert region
say the topic is a top 3 urgency

TypicalTransformation Journey
Awareness
Ambition
Arange-
ment
Action
Anchoring
Why do we
have to change?
Where do we
want to go?
How do we
structure the
change?
How can we
implement the
concept?
What comes
after the finish?

DigitalTransformation Initiative
Digital departure
DIGITAL STRATEGY
Industry direction
Company vision
Waves and
Stepping stones
Leadership and
sponsorship
ORCHESTRATION
Governance, sequenscing
and metrics
Funding and investor
management
Regulatory and
community engagement
Scaling
Customer & Channel engagement
Products & Services
Economic model
Operations
BUSINESS MODEL
Data & analytics
IT systems
Operationg model & partnerships
People and culture
ENABLERS

The recipe for successful digital-and-analytics
transformation has 5 key building blocks
Ambition
• Vision and
strategic
priorities
• Value at stake
• Road map
Journeys and use
cases
• Front end
• Omnichannel/e-
commerce
• Digital marketing and
personalization
• Back end
• Network and
operations
• Back oﬃce and service/
support functions
• New business building
Engine
• IT systems and
architecture
• Technical enablers
• Data backbone
• Cloud
• APIs and
microservices
• Product and process
simpliﬁcation
Operating model
• Digital organization
and way of working
• Agile
• DevOps
• Partner and vendor
ecosystem
• Program
management,
governance,
funding and impact
monitoring
Capabilities, talent
and culture
• Capabilities
• Product management
• Design thinking
• Personalization
• Analytics
• Employee capabilities
• Talent strategy
• Culture and leadership

Organizational Approaches Needed in Response to
4 MajorTrends
Purpose Speed Inclusiveness
Transformative
Behavior Change
To deal with constant
change, people want to
feel that what they do
matters , that they are
part of a community and
that they keep up with
modern technology
Digital has altered
expectations, making it a
must for companies react
faster to demands from
employees and customers
- and to competition
Employees want to be
part of the conversation
Companies must
fundamentally change
how they do business to
respond to digitally driven
forces

Key business initiatives for DigitalTransformation
32%
31%
30%
24%
21%
21%
16%
16%
15%
13%
12%
12%
10%
10%
8%
Modernizing legacy systems
Migrating apps to the cloud
Automating business processes
Introducing new products and services faster
Improving sales productivity
integrating SaaS apps
Improving customer onboarding
Improving employee onboarding
Creating a single view of customers
Investing in mobile apps
Developing omnichannel strategy
Setting up an e-commerce platform
Improving partner onboarding
Rationalizing product portfolio
Reconciling systems acquired through M&A
What are the goals you would most like to achieve with your digital transformation initiatives?

Include only what you need to answer these ﬁve key questions
What opportunities and threats are we facing over the period of our strategy?
What does success look like given these opportunities and threats?
What changes do we need to make to our business to achieve that success?
How will we make sure that all of our decisions and actions are consistent
with our deﬁnition of success?
How will we measure the impact of the changes we are making?

5 Principles of Innovation Strategy
Strategy-driven
Innovation spend
Innovation spend is not
the size of the budget
but how it is spent from
strategy through
execution
Viable Business
Models
For initiatives to deliver
value, innovation
eﬀorts must be aligned
with the company’s
Corporate Strategy
Open Innovation
Models
Traditional barriers
must be broken down
and a much wider
ecosystem for ideas,
insights, talent and
technology must be
tapped
Human
Experience
Human experience and
insights of all kinds are
essential in shaping and
delivering new ideas,
solutions, products or
services
Technology-
driven Innovation
Technology has
become the driving
source of Innovation.
Technology has ceased
to be used mainly to
keep pace with market
demands and
competitors’
innovation

Testing: do you really innovate?
Aspire
Choose
Discover
Evolve
Accelerate
Scale
Extend
Mobilize
Do you regard innovation-led growth as critical, and
do you have cascaded targets that reflect that?
Do you invest in a coherent, time- and risk-balanced portfolio of initiatives
with sufficient resources to win?
Do you have differentiated business, market and technology insights that
translate into winning value propositions?
Do you create new business models that provide defensible and
scalable profit solutions?
Do you beat the competition by developing and launching innovations
quickly and effectively?
Do you launch innovations at the right scale in the
relevant markets and segments?
Do you win by creating and capitalizing on external networks?
Are your people motivated, rewarded and organized to innovate repeatedly?
“In this digital age the pace of
change has gone into hyperspeed”

Process/use-case
transformation
Digital Center of
Excellence
Digital
Business
building
“Buy & Scale”
and corporate
ventures
Agile trans-
formation
Digital
transformation
Radically rethink selected journeys/
processes/functions to create lighthouses
for larger transformations - e.g. digitizing
the supply chain
Transform by building a new ‘digital
hub’ as nucleus for future organization
inside existing organization
Build a new business
outside the existing
organization, leveraging
core skills wherever
required. For example
set up a new channel or
format - such as e-
commerce business,
Amazon Go-like format,
etc
Establish org-wide agile
way of working with
multidisciplinary,
product-focussed teams,
e.g. introduce agile to
functions like category
management, HR, etc
Invest and buy successful digital
businesses and leverage their talent and
capabilities as nucleus that can be scaled
A combination of several ‘pathways’ can ensure a
successful digital transformation
Nucleus of new organization
Existing organization

Technology holds the future for business
AI IS THE NEW UI
Experience above all
AI is no longer just
about how you do
things - it’s who you
are
ECOSYSTEM
POWER PLAYS
Beyond platforms
Multidimensional
value chains for a
digital world
WORKFORCE
MARKET PLACE
Invent your future
The rise of the on-
demand enterprise
DESIGN FOR
HUMANS
Inspire new
behaviors
Lock in your customers
by walking in step with
them
THE
UNCHARTERED
Set new standards,
invent new
industries
Deﬁne the new rules of
the digital game

–McKinsey, January 2021
To become a future-ready company, leaders should
embrace nine imperatives that collectively
explain “who we are” as an organization, “how we
operate,” and “how we grow.”

The questions organizations who want to
succeed over time must answer
First, who are we?
Organizations need to identify their purpose, understand how they create value, and develop a
unique, purpose-driven culture.
The second is: How do we operate?
Companies that are more agile, have a ﬂatter structure, make decisions faster, and put their talent
into the critical roles are coming out thriving.
And the third is: How do we thrive and grow?
Organizations that have resilient ecosystems, the right technology and data platforms, and a
learning mindset are far more likely to succeed and thrive over time.

The nine organizational imperatives to become future-ready
Radically
ﬂatten
structure
Treat talent
as scarcer than
capital
Turbocharge
decision
making
Take a stance on
purpose
Sharpen your
value agenda
Use culture
as your “secret
sauce”
Build data-rich
tech platforms
Accelerate
organizational
learning
Take an
ecosystem
perspective
Who we are
How we operate
How we grow

Creating a Purpose-Driven Organization
1. Envision an inspired workforce.
2. Discover the purpose.
3. Recognize the need for authenticity.
4. Turn the authentic message into a constant message.
5. Stimulate individual learning.
6. Turn midlevel managers into purpose-driven leaders.
7. Connect the people to the purpose.
8. Unleash the positive energizers.

Management in Agile World
DAILY
ITERATION
RELEASE
ROADMAP
VISION
Heavy
Involvement
Minimal
Involvement
Most
Frequent
Least
Frequent

(Big) Data Enablement Framework
Opportunities
Build a culture of innovation and
experimentation
Trust
Establish trust among consumers to
enable broad use of their data
1. Data Usage
Platform
Leverage ﬂexible, scalable and eﬃcient
data systems
Organization
Develop capabilities to implement and
leverage relevant data applications
2. Data Engine
Participation
Identify strategic partners that can help
unlock new economic opportunities
Relationships
Create an open culture to support
partnering and the share of data
3. Data
Ecosystem

Futureproof organization: able to adapt on all timescales
Business Model Evolution
New Product ideation and creation
Algorithm governance and validation
A
I
Action
D
a
t
a
Integrated
learning
systems
Adaptable backbone systems
Evolvable vision
Slow-acting,
ﬂuctuating
Fast-acting,
repetitive
Human tasks
Machine tasks
Ecosystem

The need to adapt with the times can be daunting

Put competitive advantage first. Start with a winning, scalable formula.
Make the trend your friend. Prioritize profitable, fast-growing markets.
Don’t be a laggard. It’s not enough to go with the flow—you need to outgrow your peers.
Turbocharge your core. Focus on growth in your core industry—you can’t win without it.
Look beyond the core. Nurture growth in adjacent business areas.
Grow where you know. Focus on growing where you have an ownership advantage.
Be a local hero. Commit to winning on the home front.
Go global if you can beat local. Expand internationally if you have a transferable advantage.
Acquire programmatically. Combine healthy organic growth with serial acquisitions.
It’s OK to shrink to grow. Ruthlessly prune your portfolio if you need to.
Empirical research reveals what it takes to generate value-
creating growth today.

Eight speciﬁc shifts will improve the quality of your strategic dialogue, the
choices you make, and the business outcomes you experience.
1. From annual planning to strategy as a journey
2. From getting to ‘yes’ to debating real alternatives
3. Identify breakout opportunities as early as possible and feed them all the resources they need
4. Talk about moves ﬁrst, budgets second
5. Institutionalize the resource liquidity required to chase the best opportunities at any point in time
6. From sandbagging to open risk portfolios
7. Shared ownership in the company’s fortunes and a clear alignment of incentives to get the full commitment of your team to the
big moves you need to make
8. Work back from long range planning and set milestone markers at 6-month increments
April 19, 2018 | Article

WHY ValOli SUPPORTS MANAGEMENT/C-SUITE
54%
7%
10%
30%
(Administrative)
Coordination and
control
Problem solving and
collaborating
Strategy and Innovation
Developing people and
engaging with stakeholders
How Managers have to spend their time:
(from Accenture Survey)
Research by PwC’s Strategy& shows that only 1 in 10 leaders are great at both strategy and execution.

C-Suite Objectives are now deeply dependent onTechnology

ValOli vision on digital transformation 2024

ValOli vision on digital transformation 2024

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