 It's a pleasure to be here. Digital futures. I'm not sure there's anything other than a digital future, to be brutally honest. I don't think we can contemplate a future without significant and almost 100% digital content of it. I was thinking about maybe the way to start this discussion would be to hold hands and have a little seance here and maybe connect to some dead conscience. So if we could connect, for example, to the spirit and the soul of Kodak, what would it actually tell us about their experience? The silence is good for getting in touch with the spirits, I think. So if Kodak could speak to us, they would probably say, well, we did actually invent digital imaging and however we decided to bury it because we were afraid it would destroy our business of producing photographic film. So they had their way in the end, somebody else destroyed their business and this tends to be the common occurrence. If we could connect to ExtraVision, a company that is, I think it's almost gone at this stage but it's been dying for a long time, or the US equivalent to Blockbuster, we would find a very similar story when we compare it to Netflix, for example. Netflix has a market capitalization of approximately $40 billion. It started in the CD rental by Post business, very similar to Blockbuster or ExtraVision and it made the decision at some point of its career, some point of its life cycle too, to try something different, to embrace new technology and to deliver a new service to its customers. Disruption is what we're here to talk about and really confront. Disruption in simple terms is the brutal process of making something that exists obsolete and we see examples of it around us all the time. On the digital disruption side, I think it's quite specific insofar as we have this accumulation of very, very powerful forces. Whether it's computing infrastructure, smart devices, always on access, better storage, cheaper storage, data analytics, all of these social and mobile, we could go on with the list of buzzwords, but these collectively are bringing about changes to business models that are seeing the end of the likes of Kodak, ExtraVision, the taxi business, the travel agency business, etc., etc. So that's what I want to talk about in terms of what we're seeing from an Irish perspective. Let me just cue this up here. We researched about the last six months of 2015. We're not dealing with the hypothetical or the theoretical or anything other than real-world data here from 35 living, breathing organizations. When we look at the research, if we read Clayton Christensen in Harvard or other writers on this, we see this very, very familiar pattern to disruption, not just digital disruption. New competitor arrives with a new way of doing business. And the established guys, they completely ignore them. We are so arrogant, so complacent that we just ignore them. And then by the time we actually notice these disruptors, they have taken a significant market position and have undermined the business model and the proposition of the established companies. So it's a very, very brutal process. What we're seeing here in Ireland, when we've researched 35 companies as Joyce says across a range of sectors, we looked primarily at incumbents, companies that are active. We didn't focus on digital natives, the newbies, the Facebooks, or the guys in the recent startups, etc. We looked at the 35 companies across many, many sectors. What advantages do incumbents have? They tend to have customers, right? They have a brand and they have money, right? But on the other hand, we do know by looking at the Fortune 500 and the statistic that since the year 2000, 52% of Fortune 500 companies are gone. In 15 years they've been acquired, gone bankrupt, or somehow just become extinct. So this idea that companies disappear is not a new phenomenon, but the rate at which it's happening is new. When we've asked Irish companies, if you look at this, are you or will you experience disruption now or very near? 70% say they're experiencing disruption now. 20% within the next two years, 16 and 17, and another 10% within five years. So as we build the story here, 90% of Irish companies feel they're getting disrupted. So when we talk about one of their great advantages is with their customers. If we just look at this one, so many, 95% of these companies we researched agree or strongly agree that it's really important to understand our customers' experiences. It's very hard to argue with that question, really. But 95% agree it's really, really important. Now, the frightening statistic is in the bottom donut where less than 20% of customers researched have done detailed analysis and understanding of their customers' experience and their customer journey. So we love our customers, we agree with the idea that we should be in love with them. We're the incumbents, we've had them for 20, 30 years, but actually we don't really understand them at all. And the fascinating thing is when we look at these digital devices, we are all using our digital devices on average 1500 times per week, right? And most of these established companies have failed so far to make contact with us via those devices. So it's quite a significant point. Now, why is this important? Well, you have to attract and retain customers. If we look at some of the upstarts in this area that are really working on the customer experience side. In China, we talked about China overlaunched. The Ping and Bank in China is targeting a younger, digitally literate set of customers. They have a one minute sign up, they have one or two products, and none of this branch network or complex product portfolio at all. But, you know, my kids would love that. My son is an Erasmus in France at the moment, and he's completely puzzled as to why he has to come back to sort out some of his banking arrangements and actually visit the branch. And I somehow, I feel some empathy for his position. If we take, for example, you know, who else is exciting customers? Look at the insurance sector. Metro Mile, US based insurance by the mile for your car, right? And why not? The more you use, the more you pay. Wouldn't that make an awful lot of sense? So with the little device fitted into your car, which is connected to your 3G or 4G network, they know when you're mobile, they know when you're parked up, and they know how much to charge you and you pay on a monthly basis, you pay for what you use. Beautiful model. Let's have it. Let's have some of that. There are a whole bunch of other examples of people really doing a good job here. Vitality in the UK, an insurance company, health insurance company, incentivizes their customers to wear wearable technology. So if you have a Fitbit on you, they know how active you are, they know exactly what you're doing, and they then can reduce your insurance premiums and they can monitor your health progress. And again, why not? Fantastic, fantastic idea. So it's really important for us to understand our customers, but the warning here is we're not, as incumbents, we're not doing a great job on that. Just look at the next one here. People in our organization share a sense of what change is needed. So implementing change in any organization is extremely difficult. Now, if you start in that process with 70% of the people in the organization realizing that change is good and that we need to change, you're in a fantastic position. This is very positive in terms of these incumbent companies that more than 70% of their staff are up for it. We want to do things differently. So the story so far is that we have lots of disruption. We have relatively poor understanding of our customer, but the staff are really up for it. So the management response then, and just to net that out, in these companies, 53% of companies don't have a plan to deal with digital disruption, right? 47% say they have in our research and some of those wouldn't be quite fit for purpose. So 53% don't have a plan. A lot of companies have a huge amount of stuff going on around the place. They're doing things in IT. They have a customer, a voice of the customer program, and they have something else going on in the sales engagement side, but it's very fragmented and not pulled together and therefore not delivering on the impact that it could have in terms of securing their future in the market. Having a formal, solid, integrated program approved by the board is a clear message to the organization that digital transformation is an exceptionally high priority for the business. So without a formal program, you're saying that, well, actually, it's not a priority. And in this current challenged environment, I think it's very difficult to see how to move forward without a plan. So let's say you have a plan. How do we do the bits that we say we want to do? What's our process for selecting what we're going to do? Are we going to focus on mobile? Are we going to do a bit of IoT? What exactly are we going to do within the scope of this plan? 52% of our respondents, of the people we met and discussed with, don't believe they have a fit-for-purpose process for selecting the various components of what they need to do. 48% said they had but on closer interrogation. Let me say to you that quite a few of those, they collapsed under pressure. They agreed with us that really what they had served them well enough to now, but really is not fit for the future. All the people we interviewed, this is a very difficult area. This is what leadership is all about. What are we going to do? Where are we going to invest? What choices are we going to make? What are we not going to do? Big issues for organizations. Issue coming up in this area almost bring about this reluctance to make decisions. Driven by one thing, which was a fear of failure. Big issue in this area. So we tended to see the types of initiatives going on in organizations, being those ones that were distributed and fragmented. Simply because by their very scope, they didn't get the leadership team or the board attention, and therefore a failure meant there was no enormous consequences. But it raises a question about incumbents and Irish business and our attitudes and culture. Is it ever okay to fail? In this area, we're going to have to try lots of things. Companies are going to have to get really experimental, innovative. They're going to have to try and play with things, rather than be the killers of ideas that many companies are. This luring, innovative ideas from their staff, following them down a dark cul-de-sac and slowly strangling these ideas by some committee somewhere that really should be there to try and promote innovative approaches. When we look at the people and resources, this is a big deal. Companies, how many believe they have the right mix of people and resources for digital change? One-third, 33% believe they have the right resources for this. So two-thirds of Irish companies don't have the resources. Okay? No, I'm not surprised by this. Because as you look forward, it is a challenge to anticipate what kind of skills you're going to need. Ben Hurley in the NDRC is growing, he's growing disruptive companies up the road here at a very fast rate. And the challenge for established companies is trying to anticipate where the attacks will come from and what form they will take. So it is difficult, but you have to try. I was interested in looking at the business, actually, Irish Times. There was a photograph of four women at some event. The first lady was director of customer experience at Ulster Bank, and the second one was the head of analytics for Irish Times. Now, I can be absolutely sure that neither of those two, when they left school and wherever they came from, had this as their mission in life to become that particular title. That title didn't exist. We met with Irish Times, for example. They said, we're coming up with new titles every few months. They had one couple of months ago we talked about a digital production journalist. That role didn't exist. The title didn't exist. So this is not without its challenges, just to be absolutely clear. But leadership has to engage in this. One of the gotchas in this area that those who are engaged in the battle of disruption and who've learned from it, and I put the media guys in there, would say the absolute thing not to do here is to hire in the digital superhero. Oh, we have a digital guy we got him from wherever, and he's going to save the world. I hope you're not all digital superheroes here. But the challenge will be with those guys. There tends to be this specialist isolated skill set. They are entrusted by the organization to get a lot done, but really not empowered to get on with the job. Irish Times clear message, it's in our report. Digital is for everyone. It's not for a few specialists in a digital office somewhere. Now that's not to say that your organizations wouldn't love that to be the case, because that would allow them to continue with life as it has always been. In the report you'll see a reference to one company where they say HR head came up to the head of digital and said, when are you going to have all these digital guys in place? Because as soon as you have, we can stop messing around with all this digital stuff and you guys can do it for us, right? Wrong message completely. This is for everybody, and everybody has to see this as an opportunity to continue to develop their own skill sets and become competitive in what they do. Just look at the next slide. We've talked about 52% of the Fortune 500 are gone since 2002. Now at the increasing rate of change, it would be our view and our prediction that in excess of 50% of Irish companies face significant disruption, which will threaten their very existence. Within the next five to seven years, we would estimate based on what we've seen here that we're looking at very severe carnage across this spectrum that we've looked at. And I don't think it's unreasonable to say that, given that we have poor understanding of the customer and no plan. No plan isn't going to save you, but it might help to keep you alive. But no plan is definitely a very, very clear path one way or the other. So disruption is already here. I often stand up at the whiteboard in the privacy of my own home and doodle, and I was driving the kind of streetscape recently and Black Rock always comes to mind. John and myself worked for Hewlett Packard in Black Rock. We were young, free and single in those days. But if you look at the streetscape of your local town, you know, the banks, right? Banks all have a mission to reduce the number of branches. There are banks created now that have no branches. We don't have a real functioning sector to attract in new competitors, but they will come. So in your local streetscape, the bank is pretty much gone. The travel agent is gone already, right? Your video rental place is dead, you know, when they're gone, they're definitely gone, right? Music store. Has anyone recently bought a CD in a shop? Anyone hands up who's bought a CD in a shop? No? Charles, right? News agent. Well, will news agents exist in a few years' time? We did a show of hands recently, you know, hands up everybody who's bought their newspaper, buys their newspaper, reads their newspaper, and then, and leave your hands up if your children read that newspaper, right? And, you know, I'm talking about the 25, you know, that nobody reads. None of that, they get their news via Facebook, right? The supermarkets, right? Where do we see our supermarkets, right? When I walk around Dublin at the moment, I'm swamped by Deliveroo bicycles, right? I think supermarkets should be extremely worried about the growth of JustEat, Deliveroo, and other challengers to their model, because we're now as a society spending more money on food prepared outside the home than we are on food prepared inside the home. The post office, right? Can it last? You know, the absolute drop in mail volumes and the continued drop in mail volumes and the fact that the current volume users of mail, mostly mobile phone companies, phone companies, utilities, all want to stop using mail and as quickly as possible. So will we have a post office? So if I have destroyed this beautiful streetscape that you have in mind, I apologize. The only thing I can say is for each one of those, there's a coffee shop waiting to move in and take over. But it's not just all about this area. We need to think about digital as well in terms of the Internet of Things. I know that's a theme that has been talked about before here, but the idea of putting sensors into devices, General Electric is doing huge amount of work in this area, putting sensors into their large turbines, aircraft engines, looking at failed signatures from these and lowering the cost of ownership through intelligent replacement and maintenance programs. Electric cars, right? We should have wiped out the local car dealer as well, anyway. Tesla, the leading provider of electric cars, leading seller of luxury cars in the U.S. last year, outsold BMW and Mercedes have no dealers, right? BMW before Christmas launched its facility. You can order your BMW online and your local back-to-black rock, Maxwell Motors or whatever they are now will just be there for you to pick it up from them and they'll get 50 euros for that purpose or whatever. So they're gone as well, right, the car dealers. But, you know, these are big threats to us and I see in today's Irish Times, again, the autonomous taxi in Singapore where you just get into a driverless taxi. In my experience, it would be a lot safer to get into a taxi in Singapore with the driver, but there you go. One thing I'd like to just... I'm getting towards the end here, just of the 35 companies that we interviewed there was only one that saw itself as a disruptor. Only one. The rest of them see themselves as potential threatened by disruption rather than people who are out to disrupt, you know, adjacent or current sectors in which they're operating. And I think that should tell us a lot about our thought process in this particular area. I just want to... customer experience. I like this picture because the parks department determine where the traffic goes and then the customer decides exactly where they want to go. So this to me kind of captures this real issue of the customer, the customer, the customer. We as customers have the ability now that if we don't like... pick an example, a particular provider's app, if I don't like the Ryanair app, I can go to the Erlingas app or the Etihad app or whatever I want to use. That's the reality. Competition is a download of another app away. That's as brutal as this is. And this is very seriously being ignored. The formal program... we're big fans of the formal program. It unites organizations. It's a flag. We all need a flag to march under. I'm a former army man. I like these metaphors, right? We need a flag to march under. We need something to unite us in our taking on of the competition. I haven't said much about technology. While technology is the enabler of all this, it really has very little to do with the successful transformation of organizations, their mindsets and their attempts to become relevant and remain relevant in this new world. There will be big technology components, but it's not the first thing that we should think about. And finally, for this group, it's really about leadership. It's about having the courage in the organization to do what Kodak didn't do. You have to eat your children. You have to cannibalize your current business. You have to figure out how to disrupt your current business in order to be disruptive within your markets. There wasn't a single CEO that we spoke to that was praiseworthy or giving praise to the boards of those organizations for understanding the challenges in this particular area. So we have a long way to go as board members to be educated about the challenges here and as members of executive teams. We interact with senior leadership teams and organizations on a daily basis. It's not unusual to walk in and confront the enthusiasts and the Flat Earth Society at the other end of the table that basically are saying, this is all going to go away. I don't think so. And even if it does, why would I take that risk? Because if I don't confront this, I'm definitely screwed. That's the reality of it. There is a copy of the report on the Kingran red website. Please download it, have a read, and we'd be more than happy to have a conversation or chat with you at some time. That's really what I wanted to do, Joyce. Thank you very much.