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THE DIGITAL TSUNAMI

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THE DIGITAL TSUNAMI 1 DISRUPTION IS UPON US

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100X THE INNOVATION OF PAST CYCLES Source: James McQuivey, Digital Disruption $ 1/10th The Cost THE DIGITAL TSUNAMI 2 10X The Innovators 100X The Power

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MOVING AT LIGHTNING SPEED Agricultural revolution took thousands of years Industrial revolution took hundreds of years IT revolution is taking decades THE DIGITAL TSUNAMI 3

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CREATING UNCERTAINTY 80% of the world's 100 largest companies will not be on the list in 30 years THE DIGITAL TSUNAMI 4

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CAUSING COLLATERAL DAMAGE Technology is destroying jobs faster than it is creating them in advanced economies. THE DIGITAL TSUNAMI 5

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2005 5000 4000 3000 2000 1000 0 400 0 100 200 300 06070809101112132014 NASDAQ Composite Seed Rounds $million Source: Mattermark, 2015 https://mattermark.com/exploring-the-connection-between-startup-funding-activity-and-u-s-interest-rates/ THE DIGITAL TSUNAMI 6 PARTLY FUELLED BY CENTRAL BANKS NASDAQ IndexSeed Capital

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1.0

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120 2012 40 11100908070605040302011999 60 80 100 00 99,730 50,630 Thousands Source: Bureau of Labor Statistics, 2013 http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/30/travel-agents-we-do-exist/ THE DIGITAL TSUNAMI 8 USA TRAVEL AGENTS

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StreamingPhysical 15 2020 10 0 5 1918171620151413121110092008 $Billion Now Source: Credit Suisse/Quartz 2014: http://qz.com/284176/why-music-must-embrace-the-latest-wave-of-industry-disruption/ THE DIGITAL TSUNAMI 9 MUSIC

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Now 2008 20 0 US $Billion 1620172015141312111009 5 10 15 http://www.statista.com/chart/1159/ebook-sales-to-surpass-printed-book-sales-in-2017/ THE DIGITAL TSUNAMI 10 BOOKS E-BooksPrint

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SmartphonesDigital Cameras 2009 1000 800 600 400 200 0 Million 2010201120122013 Source: Wall Street Journal, 2013 http://www.wsj.com/articles/SB10001424127887324251504578580263719432252 THE DIGITAL TSUNAMI 11 CAMERAS

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Google Adwords Newspaper Print Ads 50 2012 40 0 30 20 10 200102030405060708091011 $Billion Source: McKinsey 2014 http://mckinseyonmarketingandsales.com/sites/default/files/pdf/2_21_14_Digital%20disruption.pdf THE DIGITAL TSUNAMI 12 ADVERTISEMENTS

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UK 0 AUPRCUSANZEUHKSGSEA 60 10 20 30 40 50 51 40 37 28 27 13 12 7 Traditional Media Disruption Zone Internet Advertising as % of Total Advertising 2015 Source: APD Analysis, 2015 THE DIGITAL TSUNAMI 13 TRADITIONAL MEDIA

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WhatsAppSMS Daily messages (bn) 30 2015 0 1996 20 10 201020052000 Now Non-linear disruption of SMS Source: Mattermark, 2015 https://mattermark.com/exploring-the-connection-between-startup-funding-activity-and-u-s-interest-rates/ THE DIGITAL TSUNAMI 14 TELCOS

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2.0

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4bn Smart phones 1bn Homes with WiFi 50bn Connected devices 100mn Connected cars THE DIGITAL TSUNAMI 16 HALF THE PLANET WILL BE CONNECTED BY 2020

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$600bn Internet of Everything $300bn Sharing Economy $200bn The Cloud $100bn Big Data THE DIGITAL TSUNAMI 17 GIANT MARKETS WILL BE CREATED 2x the revenues of Apple, Google, Microsoft, Samsung and IBM by 2020

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This will change everything. THE DIGITAL TSUNAMI 18 SMARTPHONES

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THE DIGITAL TSUNAMI 19 THE SHARING ECONOMY I dont want to buy a drill I need a HOLE in the wall!!

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The Internet of Everything will be five to ten times more impactful in the next decade than the entire Internet has been to date. - John Chambers, Cisco CEO THE DIGITAL TSUNAMI 20 THE INTERNET OF EVERYTHING

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PC, smartphone & tablet marketIoT 15 2019E 10 0 5 2013 20 25 201420152016E2017E2018E Now $Billion Source: BI Intelligence Estimates, 2015 http://www.slideshare.net/bi_intelligence/bii-the-internet-of-everything-2015 THE DIGITAL TSUNAMI 21 CONNECTED DEVICES

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3-D PRINTING Source: Xerox 914 copier brochure, 1962 (http://yourmemento.naa.gov.au/2012/10/theres-no-such-thing-as-the-paperless-office-or-is-there/) THE DIGITAL TSUNAMI 22

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Everything ahead is being disrupted THE DIGITAL TSUNAMI 23

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WINNERS AND LOSERS -30%-20%-10%0%10%20%30%40%50%60%70% Newspapers Restaurants Warehousing Capital Markets Supermarkets Retail Automotive Construction Banking Telecommunications Pharmaceuticals Real Estate Financial Services Information Technology Marketing & Advertising Hospital & Health Care Management Consulting Medical Devices Utilities Oil & Energy Health, Wellness & Fitness Computer Games Venture Capital Think Tanks International Trade & Development Public Policy E-Learning Online Publishing Philanthropy Internet Renewables & Environment Growing Industries Shrinking Industries Size of circle is related to volume of jobs gained or lost Source: TBC THE DIGITAL TSUNAMI 24

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PROF. MICHAEL PORTER: WHAT BUSINESS AM I IN? Image source: The Simpsons, Fox Broadcasting Company THE DIGITAL TSUNAMI 25

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IS YOUR MANAGEMENT TEAM READY? THE DIGITAL TSUNAMI 26

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IS YOUR BOARD READY FOR THE FIGHT? THE DIGITAL TSUNAMI 27

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THE DIGITAL TSUNAMI 28