 Rwy'n ddweud o'r bythau cyntaf i gyd o'r tawch chi'n mynd i gyd a'r ffarsau'ch chat i'r ffrindio. Mae'r hans yn gyffredin ar y tawch maen nhw i gyd o'r cyffredin a'r cyffredin ar y tawch yma ar y tawch chi'n gwybod. Rwy'n gilydd y gwrthod i gyd o'r gyrdd o'r cyffredin ar y tawch yma ar y tawch chi'n gyrdd. Cymru efallai ydy'r dyfodol digidol yn yw'r cyfnod yma'r cyfnod yma. Felly, yr oeddon y cwmddoedd yn ymlaen, yn y gweithio a'r 20 oed yn y gweithio a'r 200 oed. Mae'n defnyddoedd yma yw'r gweithio a rhan o gyfnod i'r cyfnod a oeddon. Ond mae'n hynny'n ddod, yn y gweithio yma, Cymru ubar yn y gweithio ar gyfer y sylwgr yn y cyfnod. Mae'n oeddon yn y cyfnod, gwybod yn y lleol. So, we're seeing dramatic change and I think that the point I wanted to make here is that, you know, change is happening everywhere. As customers, as partners, we really need to sort of assess how digital transformation will impact our business. Back in 2005 I was on a business trip in Boston and we drove past a blockbuster. I don't know if everyone remembers blockbuster as the video store. And the taxi driver sort of said to me, he said, he knew I was a financial analyst. He said, would you invest in this business? And I said, no. And he said, why? And I said, because Netflix is going to basically take their market away. At that time Netflix was shipping DVDs in the post if you remember now they've totally transformed that. What he didn't realize was that his shield which he paid a million US dollars for had just risen to 1.2 million in 2005 and is now worth about $500,000 because Uber has totally disrupted his marketplace, right? So this is the impact that this is having. And, you know, from our perspective what we wanted to talk about and hopefully sort of discuss is this is an ecosystem game, right? So digital transformation cannot be done by one vendor. It has to be done by an ecosystem pulling together to enable companies to transform to change their business models to change their business best practice in a very agile and effective way. This is one of my sort of favorite slides because I can look out and say, you know, 40% of your businesses will probably be dead in the next 10 years. You know, we're seeing the average age of organizations change quite dramatically, right? So they've fallen from 65 years for the Global 500 or the Fortune 500 to 15 years and it's soon going to be less than 10, right? This change is having a huge impact as I mentioned on every particular business, every type of opportunity. Everyone knows the stories around Uber and Facebook and Airbnb, right? The benefit they had is they didn't have to escape legacy, right? They were all able to start afresh. They were able to build out these cloud solutions, these cloud scenarios. They were, yes, able to take advantage of platform to digitally disrupt, but they didn't have to escape legacy. So how do we do this in the context of the business that we all operate in where we do have SAPs at the back end or we do have Oracle at the back end? We do have a huge amount of custom development applications that not only do we need to look at how do we migrate, but how do we now extend and start to build these new business capabilities? You're probably all expecting this to be a metaphor around sort of two-pace IT in terms of, you know, we need to manage the requirements of the business and we do that through an agile pace layer. We do that with platform as a service. We do that with Cloud Foundry. But we need to keep this in the context of, you know, your Opsolid core, your stable IT requirements, where you need to really support the business, but keep it up and keep it up at a high level. It's true in part. Really, this is an aid memoir for me. I'm sort of doing a half marathon next Sunday. And it's to remind me that, you know, to run fast or to run further, I need to run fast, right? So the analog is there in terms of, you know, we do need to think about how do we bring both of these capabilities together? How do we make sure that as an organisation we extend from the business data, we extend from that stable core, but we get the benefits of pace layering. We get the benefit of this sort of bimodal IT requirement that Gartner likes to talk about. And this is something that we think will enable customers to transform. Right? If I think in the context of IoT or industry 4.0, often it's extensions of existing business processes, right? We're connecting to new data sources, but we're using it still to optimise a supply chain, or we're using it to better manage our inventory levels, right? So ultimately it is an extensibility play. So this is why you cannot escape legacy. You have to do this in the context of the legacy systems, of the legacy capabilities that as a customer you have, and as ecosystem players we all need to take advantage of. So if digital transformation is ultimately an extensibility game, you need to connect to the business data, right? So I was in a session yesterday where we were sort of going through, I think there were seven or eight Cloud Foundry customers all with very different use cases. But the one similarity that they all had was they were connecting to their core system, they're connecting to their core backend. So, you know, we believe to build this bimodal promise you need to connect to the core business data. But you then need to, if you like, do that in conjunction with this agility layer with Cloud Foundry as that business platform as a service. It's much more than just integration or development capabilities, right? I know Gartner and others like to talk about iPass and APass. This really is about business platform as a service. It's about having the comprehensiveness of APIs so you can get access to the content. It's about decomposing industry and line of business expertise into microservices or into business APIs that you can reuse so that customers and partners can build new use cases, these extension use cases, much, much quicker. So, the agility layer needs to be done in the context of that stable core, those stable systems. You need, I think, a diverse set of customers, right? I mean, you know, I touched on that every industry is being impacted. So, you know, you need it as developers, as partners, you need to know that there's a market opportunity to go after. So, you need to build on that. You need to leverage the fact that the platform needs to be open. It needs to be standards-based. We would love to commoditize the infrastructure layer rights. Infrastructure should become a utility. And then the value becomes the business capabilities and the business APIs that are made available through the platform, and that's how we differentiate. But we need to take advantage of the ecosystem, right? Digital transformation is a platform network orchestration business model. So, you need those partners. The challenge we have, and the challenge I have, is that all these partners are going through a transformation, right? Traditional partners at SAP were resellers and systems integrators. They all now need to build IP. They don't all have the skills and the capabilities to build product. And that's where we're sort of going through a reeducation process to make, to retool almost the ecosystem to deliver against that transformation opportunity. And then we need to extend to new ecosystems. And this is part of the discussion we will have with Stefan and Bern, which is how do we start to bridge IT and OT, right? So, back into, we're in Frankfurt Industry 4.0. IoT is a hot topic. How do you start to bridge the gap between IT and OT? The benefit, if we can do this, is we can help our customers, either co-innovate or innovate on their own, but ultimately reimagine, reinvent and run differently, right? So, digital transformation is about rethinking those legacy business processes and now doing stuff in a new way. You cannot do that if your product development cycle is three, five years and you have 10 year ROIs, right? This is a big difference, big cultural difference for SAP because we're not always known for that sort of agile type of innovation and capability. But this is what we're driving now. This is the core message and the strategy to customers, which is we now can give you that opportunity using Cloud Foundry to reimagine, reinvent and run and run in a new way. But we can't do that on our own. We need to do this with the ecosystem because the pace of industries is changing too quickly that one vendor can't do this on their own. They need to leverage the power of the diversity of the ecosystem. Because of that, the business models are changing, right? Our business model is changing, right? Yesterday you would have thought of SAP as a monolithic application vendor, but really to be successful, we have to shift our business model. We have to shift our partnering model to drive that value for customers, and we need to do that in the context of a platform business model. How do we bring in new customer use cases? How do we bring in new data sources? How do we transform the ecosystem to take advantage? If we can't do that, we'll not deliver that business value to the customer base. On that, I want to flip from the presentation to the five-side chat. Bernisla from Atos, who's responsible for digital innovation. Stefan Stang, who is responsible for MindSphere, which is one of our customers of HCP Cloud Foundry. What we wanted to do was run through this slide and do some Q&A around this one slide. Hopefully this will work. Stefan, to kick us off, this is your slide. Can you explain a little bit about the type of OT customers, some of the use cases that you see specifically for MindSphere and how we bring IT and IT together? Thank you for the introduction, Mark. First of all, this picture shows our vision, what we want to accomplish with MindSphere. Siemens is pretty strong in building industrial devices, knowing how these devices are built, knowing the data models around these devices, and with this ecosystem based on Cloud Foundry, we want to enable our end customers, our machine builders, our partners, and certainly ourselves as Siemens to put applications on top of this. Let me give you some examples here. Today we already have applications, for example in process control industries, where we are using a data collector to transmit control loop information and then providing an application on top for our end customers just in dashboards, how the performance of their control plant really is, and they can take this information and optimize the entire plant. We also have applications, what we call for example drive train analytics, where we increase uptypes of motors, inverters, in gearboxes, so these are typical industrial assets all over, we find in all over industries, pipelines, process control again, whatever, and with such applications we provide a huge benefit. But as another interesting example, just a couple of months ago we released a device, what we call connector box, it's an industrial, a small industrial device, completely included with encryption and security for an end-to-end communication to the cloud, and this is made as a business model for machine builders. These machine builders can use this to develop their own digital services without any programming, so within a couple of hours you can integrate this in your machine, connect this to PLCs, and have all the data in an application running in the cloud. This is how we see this, how IT and OT comes together. Perfect. Byrnt, in terms of ATSOS's perspective, what are you doing to bring IT and OT together? From our perspective, we are a partner here from Siemens in many years and around Mindsphere now, hosting the whole thing, but our focus is obviously bringing the IT world and the OT world together, so we are basically creating one of our first apps we are going to put out as a manufacturing dashboard, really taking the machine data, really from the dirty machine, the sensor data via Mindsphere, and then bringing them together with let's say PLM, MES, manufacturing IT data, at the fingertips in the shop floor basically, so that now opens up a huge amount of real-time data, but also historical data which allows a much more powerful, up-to-date situation on the machine space in the shop floor. Okay, so really using your domain expertise in discrete manufacturing and using the data that's being generated and collected from some of these IT devices and rethinking some business from... From our perspective, we always talk with the customers per domain, really per use case basically, but it's exactly the problem you try to address which is different in retail with smart vending machines versus manufacturing with Siemens on the OT side or then utilities basically, so we always start with the use case, what type of problems do you really want to solve? Okay, so we touched on platform is much more than application build and integration, in the case of IAT it really becomes almost a data orchestration layer. Stefan, in your perspective, what does that mean in terms of potentially business model change and what are maybe the steps that we need to go through to actually deliver against that sort of business model change? The business model change is certainly the most important part here. We cannot continue as we did in the past, so we see this and that this will probably happen in three phases. Right now, since we started, we are more in a phase for our industrial customers to provide them with transparency and, as I already mentioned, with increasing uptime of assets. But once we go forward, I think in the second phase, then with all the data we now collect and we can now combine in one data analytics on top, we are then in a phase where we can provide real optimization to our customers. And then in the third phase, I'm sure we are really able to provide complete new business models like running as a service for almost everything then. Okay, so we need the transparency first in terms of what the assets are doing. We can then hope to optimize them and then we can think about transforming the business model and potentially going to outcomes based or as a service type business. Absolutely, it always starts with transparency and for many customers, this is already a great value today. And Bern, with Atos, what are you doing around big data? One thing is that this now with Cloud Foundry and Minesphere and HCP enables us a very fast, let's say application creation, so very fast you can show that it really works. But then secondly, fast is not enough so that we can bring this data which we generate immediately from the OT side together with the, let's say, manufacturing IT or enterprise IT together and that is now, I think, a capability which was not available in the last couple of years. It's now available and you can do very rapid application prototyping, realisation, see if it works, if it doesn't work, you throw it away, create a new one so that enables a much faster pace of innovation, continuous innovation for the customers here. Okay, so I think that sort of leads on to the whole point around domain expertise, right? I mean, at the top of Minesphere you have this ecosystem as well. From an OT standpoint, are there any sort of big trends that you see or any sort of key capabilities that you want to deliver? I mean, certainly we really want to enable our customers and our OEMs and partners to easily use such an ecosystem and benefit from this ecosystem and provide applications on new business models and digital services on top of it. So this is clearly something which is completely new in the past. I think we always did run our own developments and now we have to open it up and partnering more and really leveraging also the entire community for developers. Byrn, you know, we touched on the expertise, Atlas's expertise in sort of manufacturing, but you also have expertise in utilities and other industries. Is there an opportunity to also bring those different industries sort of clusters together and get some shared value or some shared business value across the different industry types? That's actually an interesting point which we see happening now that obviously you start a very specific domain. Let's say manufacturing, see what you can optimise, but very often they do also have some problems which we already address maybe with retail customers. So really some aspects of business processes we look outside, specifically outside of the specific domain and see if there's lessons learned from other utilities areas. So that's an interesting trend now that first of all obviously you stay within your domain, try to solve the problems at hand, but then it allows you now to look over, let's say over the border and see how maybe retail has addressed these problems in the past and then apply those lessons learned. This is something that we see as well at SAP. Our business model has been very focused on 25, 26 different industries but very specific capabilities, almost silos across industries. Now what we're seeing is we're seeing how can we help an oil and gas company benefit from financial services or retail best practice and basically bring this as an agile application to that customer so that they can really get at some kind of system of differentiation of innovation and that's the value of the platform, that ability to rearchitect or re-orchestrate on an ongoing basis. I mean just finally agility. What does agility mean for you, Stefan? This is certainly an important topic for us. I mean coming from a traditional world of waterfall development and having product managers planning releases two to three years in advance, we started more than two years ago with this transformation in our company and this is a typical German engineering culture doesn't typically not allow any failures but we really established a culture inside our development and product management teams learn fast, fail fast so that we are now in a mode of having b-weekly sprints, having backlogs, priority driven by a product owner and this really helped us here to speed up with our development and innovation cycles. Finally, I needed to get this in for Sam. Multi-cloud is clearly important. Bern, from your perspective what's the benefit of multi-cloud? Multi-cloud has it for us we can work with the customers, develop those apps, they run on SAP HCP with manufacturing, obviously we focus on mine sphere with retail also many customers want it on private cloud so basically any cloud variant you want basically with this apps, with the cloud foundry capabilities we can enable. Perfect. Okay, so just to wrap up you know, as I mentioned we very much see digital disruption as this ecosystem requirement the value of connecting to the stable core connecting to your existing business processes extending those and rethinking them through agile innovation on cloud foundry but ultimately the value is in the ecosystem and being able to, for the ecosystem to really to adapt and respond to changes to drive that customer value. So on that, Stefan, thank you Bern, thank you and have a good day everyone. Thank you.