Data is at the core of the emerging digital economy. The next wave of innovation driven by artificial intelligence and cognitive computing will boost the ability of companies to capture the value of data and through digital transformation accelerate economic growth. IDC’s forecast models developed on behalf of the European Commission expect the European data market to more than double in value by 2025 reaching up to 147 B€ - and this will happen in Hungary too. Each euro invested in the data market generates between 5 to 7 euros of induced and indirect positive impacts in the economy as well as new jobs. But these potential rewards of a data-centric innovation process are counterbalanced by equally formidable transformation challenges for organizations as well as individuals. We’ll explore the potential development paths of the European data economy to 2025 through alternative scenarios.

1. Capturing Value: how the Power of Data will Drive the
Economy
By Gabriella Cattaneo, European Government Consulting, IDC
Data Value Conference
Budapest, 31 January 2018
© IDC

2. Digital Disruption Ahead
Worldwide IT spending - overall 2016-2021 CAGR 6.4%
2016 2021
Trillion$
Traditional IT
Big Data, Cloud, Mobile,
Social
IoT, Cognitive Systems,
Robotics

3. Data as the ‘Perfect Storm’…?
3© IDC
Data, data
everywhere
Algorithms
shaping our world
Growth in cloud
Data governance
& compliance
pressures
Opportunities for
data monetization

4. But we have the Global Data Protection Regulation!
4© IDC

5. $1.7 T
By the end of 2019,
Digital Transformation
(DX) spending is
expected to reach $1.7
trillion worldwide, a 42%
increase from 2017.

6. © IDC 6
Digital Transformation Use Cases
Source: IDC IoT, Cognitive/AI, Robotics, 3D Printing, AR/VR Spending Guides, February 2017

7. © IDC 7
LA, January 2018
Tesla in autopilot
crashes on a
stopped Firetruck
Oops...
Source: Wired 25/01/2018

8. Recognizing the significance of data &
analytics to Digital Transformation (DX)
© IDC Visit us at IDC.com and follow us on
Twitter: @IDC
8
43% 70%
Source: IDC Custom Survey, July 2017, N=750
Now In2years

9. The Data-Driven Organization
Data
TechnologyProcesses
TalentGovernance
© IDC
9

10. 50%
By 2020, 50% of
Large Enterprises
Will Be Generating
Data-as-a-Service
Revenue from the
Sale of Data

11. By 2020, 75% of
enterprise and ISV
development will
include cognitive/AI
or machine learning
functionality
including all business
analytics tools
40%
By 2020, 40% of All
Digital Transformation
Initiatives, and 100% of
All Effective IoT Efforts,
Will Be Supported by
Cognitive/AI
Capabilities

12. Why Companies use Third Party Data
12
© IDC
43%
41%
36%
34%
33%
21% 21%
26%
03%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Source: EUDECO Final Report, January 2018

13. Companies driving DX through data & analytics
13
Using data and analytics to
detect patterns and
correlations in the data that
predict upcoming failures
or malfunctions.
Predictive Car
Maintenance
13© IDC 2017 Visit us at IDC.com and follow us on Twitter: @IDC
Risk
management &
price
optimization
Using a data and analytics
platform to deliver product
innovation and risk
management solutions
Using data and analytics to
forecast fashion trends, its
use of targeted ads and
improve speed to
responses in weather
patterns.
Forecasting &
trend analysis

14. Monetizing Data: Transport from London (TPL)
14© IDC
▪ Leading data provider
▪ Today, all Open Data
▪ But, investing in sensors
data, services and
transport apps
▪ Expects data to become
large source of earnings
in 5 years time

15. Measuring the
European Data Market
and Economy
15© IDC

16. © IDC 16
The European Data Market Monitoring Tool
by IDC and the Lisbon Council for DG CONNECT
A BALANCED
ECOSYSTEM
EXPLOITING
INNOVATION
A FRAGMENTED
MARKET
3 SCENARIOS TO 2025A COMPLETE VIEW OF
DEMAND AND SUPPLY
Source: IDC, EDM Monitoring Tool, 2018
Data Market
Value
Data
Companies
Revenues Indicator 4.2
Data Users
Number
Data Companies
Number
Data Workers
Number
Data Workers’
SkillsGap
Number
Data
Economy

17. The Data Market value will double from 2017 to 2025
Source: IDC, EDM Monitoring Tool, 2018 - DRAFT
HIGH GROWTH SCENARIO
EXPLOITING INNOVATION
– BASELINE SCENARIO
CHALLENGE SCENARIO
110
€Bn
85
€Bn
74
€Bn
46
50
60
2016 2017 2020
EU 27 Value 2017-2020
€Bn
EU 27 Value
2025 Forecast Scenarios

18. Hungary: a small but lively Data Market
Source: IDC, EDM Monitoring Tool, 2018 - DRAFT
HIGH GROWTH SCENARIO
EXPLOITING INNOVATION
– BASELINE SCENARIO
CHALLENGE SCENARIO
976
€M
822
€M
716
€M
Hungary DM Value
2025 Forecast Scenarios
395
435
532
2016 2017 2020
Hungary DM Value
2017-2020

19. 19© IDC
6,9%
10,3%
6,1%
9,2%
CAGR 2020/2017
Growth Rate
2017/2016
Data Market: Hungary vs EU
EU27 Hungary
Hungary: the Data Market grows faster than the
average EU
6,1%
9,1%
12,9%
4,1%
7,1%
12,7%
00% 05% 10% 15%
CAGR 2025/2020 Challenge
Scenario
CAGR 2025/2020 Baseline
Scenario
CAGR 2025/2020 High Growth
Scenario
Data Market: Hungary vs EU27
EU27 Hungary
Source: IDC, EDM Monitoring Tool, 2018 - DRAFT

20. Data users are enterprises who focus strategically on
extracting value from data for their business.
Financial
Services
Conduct risk
analysis &
understand
exposure
Fraud
protection &
detection
Customer
analysis
Manufacturing
Improve
production
processes &
operations
Support service &
product
innovation
Analysis of
machine or device
data
Public
Sector
Improve tax
collection
Fight welfare
fraud
Enhance
threat &
cyber-threat
intelligence
5.8%
2017
% of Data
Users on tot
EU 27
companies
Data users are the most advanced and innovative enterprises
in every sector, pursuing new business models
Most frequent Use Cases
Data Users are data-driven companies
Source: IDC, EDM Monitoring Tool, 2018 DRAFT

21. Data users are the most advanced and innovative enterprises
in every sector
Data Market Value by
industry, €B
Data workers, % on
employment by industry
Data Users, % on
companies by industry2017
Source: IDC, EDM Monitoring Tool, 2018, draft
0,3
1,7
2,0
2,7
2,9
3,6
6,5
7,0
9,1
13,0
14
Construction
Education
Healthcare
Utilities
Transport
Public Administration
ICT
Retail, Wholesale
Professional services
Financial Services
Manufacturing
3%
8%
5%
18%
13%
15%
3%
9%
19%
9%
0.9%
2.9%
2.1%
3.0%
1.7%
2.7%
10.8%
2.8%
5.7%
9.9%
2.2%

22. ▪ The business growth generated
by the Data Market (direct
impacts) …
▪ generates additional revenues
and profits for the Data users
(indirect impacts) …
▪ and eventually additional wages,
consumption and spending
(induced impacts)
▪ The sum of these impacts is
the DATA ECONOMY
© IDC 22
The Data Economy is…value and wealth

23. Alternative Paths for the European Data Economy by 2025
HIGH GROWTH
SCENARIO
769 €B
5.4%
EU GDP
544
€B
4.0%
EU GDP
CHALLENGE
SCENARIO
376
€B
2.9%
EU GDP
Source: IDC, EDM Monitoring Tool, 2018 DRAFT
Exploiting Innovation
Continuing on the positive growth path
Strong supply-push by the data industry
Maximising data users
benefits
Hyperconnected society
High data sharing
Fragmented Market
Weak Demand
Low data sharing

24. The Data Market multipliers show the Power of Data
1 Euro
spent in the Data
Market
generates between
4 to 6 Euros
in the Data
Economy
Source: IDC, EDM Monitoring Tool, 2018 DRAFT

25. WHAT TO DO?
25
KNOW YOUR DATA ASSETS – AND PREPARE TO MONETIZE THEM
BREAK UP DATA SILOS IN YOUR ORGANIZATION
WATCH OUT FOR AI AND IOT DATA DELUGE
PREPARE FOR GDPR AS AN OPPORTUNITY
© IDC

26. Consult EUDECO for advise
26© IDC

27. The data revolution is
an
extraordinary
opportunity….
Don’t miss it
27© IDC

28. www.datalandscape.eu
Or contact
Gabriella Cattaneo
gcattaneo@idc.com
You can find all these
data at...
Giorgio Micheletti
gmicheletti@idc.com