CXO Trends

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CIOs Initiative
(trends and technologies)
CIOs in the new
COHERENCE
“CONNECTED”
ECONOMY
STKI Company Confidential

Page 2
KNOW NOTHING
people cannot objectively ILLUSION OF KNOWLEDGE
evaluate their actual
competence or incompetence
EXPERTS UNDERSTAND HOW

MUCH THEY STILL DON’T KNOW

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Where will it be in day 28?

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Where will it be in day 28?
THE REALITY OF MODERN BUSINESS

the pace of change is exponential
(like the pond lily)

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Synchronous arrival of Tesla,

Uber, and autonomous vehicles
is creating chaos.
When it’s over, a new
equilibrium will emerge
THE REIMAGINED CAR

Shared, Autonomous, Connected
and Electric

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Synchronous arrival of Tesla,

Uber, and autonomous vehicles
is creating chaos.
When it’s over, a new
equilibrium will emerge
THE REIMAGINED CAR

Shared, Autonomous, Connected
and Electric

Page 9
What do we call “DIGITAL” ? 9
Up to 2007 Computing
Integrated circuits and eventually the computer on a chip (Moore’s law) at lower
and lower prices. More and more sophisticated software was written and the
software/VAS industries were born
Mini computers and PCs disrupted the mainframe industry
2007-2017 Communication
The telecoms bust had unintended consequences: the “low price” of usage of
long distance cables, mobile tech, data usage and the internet.
The internet and mobile disrupted everything.
From 2017 Memory & storage

With cost per terabyte in free fall, the response is to accumulate more
data. Using also the internet and cheap power we have now:
Big Data, cloud, Blockchain, AI, VR

Page 10
What do we call “DIGITAL” ? 10
Up to 2007 Computing
Integrated circuits and eventually the computer on a chip (Moore’s law) at lower
and lower prices. More and more sophisticated software was written and the
software/VAS industries were born
Mini computers and PCs disrupted the mainframe industry
2007-2017 Communication
The telecoms bust had unintended consequences: the “low price” of usage of
long distance cables, mobile tech, data usage and the internet.
The internet and mobile disrupted everything.
From 2017 Memory & storage

With cost per terabyte in free fall, the response is to accumulate more
data. Using also the internet and cheap power we have now:
Big Data, cloud, Blockchain, AI, VR

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12

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• Concerns primarily B2C companies about customer Myths of

experience and marketing Digital
Transformation
• There is no business case for digital transformation and
happens bottom-up DIGITAL evolves at the
pace of Moore’s Law
• Digital transformation will happen without IT/CIO.
twice as powerful every
18 to 24 months
• Time to digitally transform in our industry.

REMEMBER THE POND

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experience economy
2005-2018
commodity economy services economy
1995-2005
1985-1995
coherence economy
2018 - ….
The “coherence” (connected) Economy

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15
technology, hyper specialization, digitization Coherence Economy requires

and the ability to control results businesses to be armed with:
through software (algorithms) • innovation speed
in a super connected intelligent economy • data alignment in
set to challenge every industry algorithmic platforms
• product/ services
customization
The one sure way

‫כלכלת הלכידות‬ to fail is a boring
intelligent agents algorithm.
interconnect and manage our The only chance

activities (personal/work) for success is a
remarkable one

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EVOLUTION OF TRAVEL
new age of intelligence and insights
all about a 360 degree view of the traveler
• In the agrarian economy, you walked or you could

upgrade to a horse.
• In the industrial economy, mass production of cars

and boats made those options practical for a broad
range of people.
• The services economy brought airlines and taxis.
• The experience economy brought attempts by

airlines and ground transport providers to elevate
their offerings into full-on experiences,
• in the coherence economy, travel options will be

automatically connected to an intelligent assistant
that is able to act accordingly (transportation,
lodging, dining, and entertainment services)

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Consider “customized” health care:
Your ultimate aim is to become and stay as

healthy as possible.
In the coherence economy, health care providers

will be in business to provide that outcome
health care companies will need to change :
• scope, (adding health care supplier’s data (APIs) )
• ability to response (algorithms) to dynamic information
• participate in layered ecosystems through a platform

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20
Consider “customized” health care:
Your ultimate
AXAaim Frenchis to become
Insurance and stay as
Company
healthy
(business in 64as possible.
Countries)
In the coherence economy, health care providers

will be in business to provide that outcome
health care companies will need to change :
• scope, (adding health care supplier’s data (APIs) )
• ability to response (algorithms) to dynamic information
• participate in layered ecosystems through a platform

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Coherence (connected) Economy: methodology
Innovation

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Increase Scope of Possible Data Partners

(information aggregation through APIs)

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dynamic response
(algorithm based insights)
to
information
“Get ready for the most

sweeping business change
since the Industrial Revolution.”
Forbes
The algorithmic CEO

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PLATFORMS & ECOSYSTEMS 29
“old” pipeline company’s model
ecosystem ecosystem
of suppliers of customers

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... this implies ...

must have an
ecosystem strategy
to compete in a
world of
digital ecosystems

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COHERENCE
ECONOMY
has different rules
than the
“old” economy

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COHERENCE
ECONOMY
has different
rules than the
“old” economy

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project will address four problems

1. Types of industry
Platforms: platforms and their
integration:
• Influencing factors
January 2018 transform the way
businesses, governments and 2. Open vs. Closed
individuals interact. platforms:
• Implications
Platforms and Ecosystems provide 3. Platform players:

Enabling the Digital Economy unparalleled opportunities • Rules of engagement
part of the for value creation, • Rules of collaboration
World Economic Forum’s in 10 years about • Players’ accreditation
-”Shaping The Future Of two-thirds (66%)
Digital Economy And Society 4. Market power:
of the value for business
System Initiative”- • Antitrust rules
• Create an inclusive
ecosystem

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Financial institutions
need to shift their mindset.
• Are you a “bank” or

“credit card” company?
• OR are you a partner

who offers cash and
investment capabilities
to help customers reach
their goal?

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Financial institutions
need to shift their mindset.
• Are you a “bank” or

“credit card” company?
• OR are you a partner

who offers cash and
investment capabilities
to help customers reach
their goal?

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38
technology
timeline

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39
technology
timeline

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There is NO wait-and-see advantage anymore
Blockchain is the underlying technology of new business models
P2P Data
Data
economy Monetization
Monetization
Cognitive Mobile
M-Payment ONLY
Business
M-Payment
ITaaS
New New
In 2022
IoT IoT
Crypto-
currency
business
Core
Platform Business
blockchain
models Model will be part of your
RPA
Cloud core business
Data Blockchain Blockchain
Open API Data
Technology Business
Blockchain
Cyber Business
Privacy
Privacy
Cyber

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Today trade complexity
requires intermediary/ies
Manage Different
Fee their computer
Trusted 3d party
own DB system
Bank leger:
Name
Data
Expensive, time consuming,
Amount
bureaucratic, paper-heavy
process

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Blockchain Technology
What is it?
Technology for exchanging value over the

internet without central authority
Secure
Blockchain records and validates
Immutable
each and every transaction made Once transactions enter public ledger,
the chronological history remains
forever and can not be changed
Faster & cheaper
It is a trusted system with no mediator in
between two people making the transaction

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Bitcoin Blockchain
Crypto Blockchain
currency Technology
is KING is KINGEST

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Ethereum Blockchain
Self Governing Contract

Automatic execution of the contract
terms and conditions
Payment
Digital bank account
Immediate Settlement
Ethereum is a blockchain Payment = settlement, it’s just a change in
that runs Smart Contracts a ledger

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Money is Changing
So is our trust

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46
Cryptocurrencies
exist now without a control of nation states
Cryptocurrency will do to
the banks what email did
to the postal office

Page 47
M-Payments is sooo 2017

47
In-store m-payments aren't taking

off as quickly as expected
Customers are quite happy with the current

way of paying
There are no compelling added value
Actual M-Payment will occur on blockchain

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49
Global Money Transfer
Take some cash and stand in line
It costs around 10%
It takes around 3 -5 days

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Money Transfer with Blockchain
Grab your ABRA app

Send money from your smartphone
directly to receiver’s one without
intermediary
Click on closest teller and it will appear
with the local money
It takes minutes and costs 2%

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(Not Really) Sharing Economy
UBER & Airbnb are aggregation platforms, that deliver service and sell it.
They have FULL CONTROL of funds

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P2P Economy
Blockchain could kill e-commerce because it will be

La'Zooz connects riders to drivers possible for any two people on the planet to trade with
by real-time ride-sharing each other directly, without depending on an intermediary

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P2P doesn’t have to be between individuals:

Blockchain & IoT is a Perfect combination

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4 ways IoT can use blockchain
Cost reduction Scaled security

P2P transactions, no secured and reliable time-
middleman stamped contractual handshake
Accelerated
data exchanges
Trust building
directly transfer a piece of property such as
Chronological history, audit money or data between one another
trails and smart contracts

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Digital YOU
DATA is an ASSET
Digital you, knows

about you, much more
than the real you

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DATA Blockchain
• Control your own data

• Manage it responsively
• Monetize it

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Digital Identity Service
know-your-customer data
NO need to repeat
the data entry or
verification process

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Healthcare

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Insurance industry
Crisis War of Attrition
of trust
+
high costs
+ inefficiency
extraordinary
high levels of
underinsurance
Insured find insurance Insurance companies are
contracts long & battling an extraordinary
confusing amount of fraud

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Insurance on Smart Contract

Build Trust through Transparency
• Claim on blockchain
• Only valid claims are paid
• NO multiple claims submitted for the same accident
• NO human intervention

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Real Estate
Blockchain Examples
Sweden Honduras

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PoC High Level Business Flow
Export Country
IPCSA Blockchain Group Initiative to
Digitalize a paper based business Exporter Ship
processes: Bill of lading BoL agent
23 Nov 2017 15:13 pm
PCS1
Advising
bank
Issuing
bank
PCS2
Ship
Importer DO agent
Import Country
Source: IPCSA

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New Business Models
Blockchain is
a platform Shore up your
partners
and competitors
for New Ways

of Working

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What Now?
Evaluate Blockchain use case
Source: Deloitte

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place and approach to
learn & experiment
Blockchain
Garage
is OPEN
have a
Place, where u can be the 1st to Service offered by many vendors
understand what happens next

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Dr. Jimmy Schwarzkopf

jimmy@stki.info
054 70 000 20
09 790 7000
Galit Fein, MBA, MRO

galit@stki.info
054 70 000 22
09 790 7000

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Page 1

CIOs in the new

STKI Company Confidential

EXPERTS UNDERSTAND HOW

STKI Company Confidential

Where will it be in day 28?

STKI Company Confidential

Where will it be in day 28?

THE REALITY OF MODERN BUSINESS

STKI Company Confidential

STKI Company Confidential

STKI Company Confidential

Synchronous arrival of Tesla,

THE REIMAGINED CAR

STKI Company Confidential

Synchronous arrival of Tesla,

THE REIMAGINED CAR

STKI Company Confidential

What do we call “DIGITAL” ? 9

From 2017 Memory & storage

STKI Company Confidential

What do we call “DIGITAL” ? 10

From 2017 Memory & storage

STKI Company Confidential

STKI Company Confidential

STKI Company Confidential

• Concerns primarily B2C companies about customer Myths of

• Time to digitally transform in our industry.

STKI Company Confidential

The “coherence” (connected) Economy

STKI Company Confidential

technology, hyper specialization, digitization Coherence Economy requires

The one sure way

interconnect and manage our The only chance

STKI Company Confidential

STKI Company Confidential

• In the agrarian economy, you walked or you could

• In the industrial economy, mass production of cars

• The services economy brought airlines and taxis.

• The experience economy brought attempts by

• in the coherence economy, travel options will be

STKI Company Confidential

STKI Company Confidential

Consider “customized” health care:

Your ultimate aim is to become and stay as

In the coherence economy, health care providers

health care companies will need to change :

• scope, (adding health care supplier’s data (APIs) )

• ability to response (algorithms) to dynamic information

• participate in layered ecosystems through a platform

STKI Company Confidential

Consider “customized” health care:

In the coherence economy, health care providers

health care companies will need to change :

• scope, (adding health care supplier’s data (APIs) )

• ability to response (algorithms) to dynamic information

• participate in layered ecosystems through a platform

STKI Company Confidential

STKI Company Confidential

Coherence (connected) Economy: methodology

STKI Company Confidential

Increase Scope of Possible Data Partners

STKI Company Confidential

STKI Company Confidential