RESHUFFLING THE DIGITAL DECK

Battlefields and strategies

…inspired by “Sun Tzu”

Gabrielle Gauthey,VP Investment and Local Development

Caisse des Dépôts

“If you know the enemy and know yourself you need not fear the results

of a hundred battles.”

Sun Tzu (360 B.C.) - The Art of War -孫子兵法

谁知道他什么时候可以打，什么时候不能，将取得胜利

He who knows when he can fight and when he cannot, will be victorious. Sun Tzu

#1 Today’s battlefield

他们抓住的机会倍增

Opportunities multiply as they are seized. Sun Tzu

#2 Tomorrow’s battlefield

5G

Blockchain

AI

Augmented

Reality

Virtual Reality

IoT

Platf.

Digital

Twin

Three trends

AI Everywhere

Transparently

immersive

Experiences

Digital Platforms

无敌在于防守; 在攻击中获胜的可能性

Invincibility lies in the defense; the possibility of victory in the attack. Sun Tzu

#3 First strategy example : US & Silicon Valley…

SuccessCreation Innovation

A LIVING

ECOSYSTEM

SKILLS

A CULTURE OF

OPTIMISM

CAPITAL

RISK

✓ Politically organized

✓ Economically fostered

✓ Part of a “Conquest” strategy

#4.1 Second strategy example : China and Telecom equipments…

A “CHINA INC.” STRATEGY

胜利的战士首先赢，然后去战争，而战败的战士则先打仗再争取胜利

Victorious warriors win first and then go to war,

while defeated warriors go to war first and then seek to win. Sun Tzu

Incubation in

Chinafor an exponential

growth and a

successful path

through a learning

curve

Targeting

emerging

markets first and

act as

challengers in

mature markets

Push for price

commoditization

while offering quality

solutions

Penetrate Tier1

Players and become a

reference in

Innovation

1 2 3 4

假装自卑，鼓励他的傲慢

Pretend inferiority and encourage his arrogance. Sun Tzu

#4.2 Second strategy example : China BATX…

425 (*)

528 (*)

441 (*)

520 (*)

(*) Figures from 11/02/2017

效果很好，可以用小力量来实现

“Great results, can be achieved with small forces ” Sun Tzu

#5.1 Third strategy example : investment in public policies to

make the country's digital transition a reality

E-COUNTRY : E-ESTONIA

想打架的人首先要计算成本

“who wishes to fight must first count the cost” Sun Tzu

#5.2 Third strategy example : investment in public policies to

make the country's digital transition a reality

SMART NATION : SINGAPOURDigitally-enabled population

Skilled tech talent

Vibrant Tech Industry + startup

Seamless & pervasive connectivity

Trusted regulation framework

87% household have access to

broadband

8.800 datasets

146.000 Telco/digital professionals

1,7 b$ venture capitalists

Labs, accelerators

~30 service providers

Wireless @SG

因此，战斗中的专家将敌人移动，不被他所感动

“Thus the expert in battle moves the enemy, and is not moved by him.” Sun Tzu

Focus on areas of excellence :cyber-defense, surveillance, security, health

#6 Fourth strategy example : Focus strategy

START-UP NATION : ISRAEL INNOVATION NATION : JAPON

Leading in innovation :Gaming, robotics, AI, Big Data, IOT

• Promoting R&D

• Foster Intellectual

Property

• Industry-academia linkage

• Focus

他将会赢得他们的军队在同一个队伍中的动力

He will win whose army is animated by the same spirit throughout all its ranks. Sun Tzu

#7 Common success factors in all these strategies

Best of Breed Infrastructures

Education and talent attraction

Unity / Hunt by pack

Funds / Equity

Virtuous ecosystems

(Pragmatic) Policies

fostering innovation

让你的朋友靠近，让你的敌人更近

Keep your friends close and your enemies closer. Sun Tzu

#8 Food for thoughts / Where is Europe ?

Disruptive changes ahead

Clash of giants – competition between integrated

giant carriers, increased competitive threats from OTT

Generative Bazaar – Scattered initiatives, lack of

common policy vision

Market Shakeout – Structural separation, growth through

premium connectivity sold to third parties + organized conquest

US scenario

APAC scenario

China

Europe scenario ?

A return to strong growth in Europe requires the ICT industry +

countries to act collectively.

孫子兵法 – The opportunity to secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

Sun Tzu

#8 Food for thoughts / Recommendations and what does that

mean for us ?

HAVE A VISION

BUILD ON OUR ASSETS

BE CREATIVE AND BOLD

BE UNITED

Infrastructure / Services

Europe

Territories

Young people

Education / Training / Formation

Skills

Ecosystem & Champions

New models

“Common game”

Hunt by pack

“Strategy without tactics is the slowest route to victory.

Tactics without strategy is the noise before defeat”

Sun Tzu (360 B.C.) - The Art of War