An IDC InfoBrief, Sponsored by Canon | December 2017

Digital Transformation & : The Canon Oce of the Future Survey, Conducted by IDC Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Executive Summary This IDC InfoBrief explores how digital transformation (DX) is shaping the office of the future and its related technologies. Our recent survey of U.S. CIOs and other senior IT decision makers found several technologies will play a significant role, but the key discovery was the importance of cloud, security, and (AI)/robotics.

of respondents say that network security is critical to transformation Digital security 84% The increasing sophistication of cyberterrorism and other threats will remain significant security risks

Businesses no longer fear robotics and AI but are ready to embrace them AI/robotics 54% agree that robotics will eliminate many manual tasks, giving workers room for creativity and

68% say boosting profitability and productivity will be the key benefit of cloud’s role in Cloud transforming processes over the next 2-5 years By 2021, IDC predicts spending on cloud services and cloud-enabling infrastructure will more than double Looking ahead, all technologies – whether a multifunction printer (MFP) or some other network solution – will play a role as DX initiatives shape the future office.

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 2 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Methodology Report data comes from a September 2017 web survey of 500 U.S. CIOs and other senior IT decision makers conducted by IDC. Qualified respondents met at least one of the following criteria:

Make strategic decisions and/or define policy

Have hands-on responsibility for deploying technologies

Have direct purchase/approval authority

Provide guidance on the relevant technologies

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 3 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon DX strategies are instrumental to the success of future workplaces Nearly nine of ten (88%) CIOs and other senior IT decision makers believe that their company’s DX initiative has a high positive impact on worker productivity today and will continue to drive it in the future. Two critical outcomes of transformation are increasing employee productivity and improving the effectiveness of business operations.

Information Transformation Priorities (Top 3 Responses*)

39% 38% 34% Q. What are your organization’s top priorities for transforming how information workers work with information?

Improve effectiveness Increase employee Reduce cost of business operations productivity

*Out of a total of 10 responses. Respondents could choose more than one.

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 4 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Digital security, cloud services, virtual assistants, and AI will be integral parts of the future office AI solutions and virtual assistants will make business processes smarter, and help offload mundane tasks, freeing up workers to focus on value and innovation. Organizations are also starting to build up a range of technology capabilities. Digital security and cloud services are the most common in today’s workplace, but in the next two years:

42% of respondents 54% agree that 41% plan to implement plan to implement robotics will eliminate AI solutions virtual assistants many manual tasks

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 5 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Threat of sophisticated cyberattacks keeps IT decision makers focused on security Network security is critical to transformation, and 84% of CIOs and other senior IT decision makers report that it will continue to be very important in the office of the future why?–

Loss of confidential information, personal data, and privacy Because 42% believe the increasing sophistication of cyberterrorism, Trojans, viruses, and other threats will Damage to business reputation and negative publicity remain significant security risks. Adverse effects of such attacks include: Compliance issues, fines, and lawsuits

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 6 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon DX initiatives will fuel an increasing need to address security and compliance Driven by DX initiatives, the explosion in types, channels, and volume of content is fueling an increased requirement to address internal security and compliance needs. Mobility, storing information on public sites, and the difficulty of securing new technology deployments all speak to a wide range of threats and challenges. Q. Thinking about information security and compliance within your organization, please rate each of the following in terms of its importance to the office of the future. 84% 84% 82% 81% 80% 78% 77% 77%

Network Content Content User Solutions Compliance Disaster Mobile security security in security on authentication security recovery device the cloud premise (incl. PCs, management printers)

Note: Numbers reflect % of respondents 37% of respondents see significant security rating a “4” or “5” on a 5-point scale where “5” = very important risk in employees printing, scanning, faxing, or copying documents

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 7 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Cost remains the greatest obstacle to workplace transformation CIOs and other senior IT decision makers see the cost of acquiring the needed technology (42%) as the biggest impediment to transforming the workplace for the future.

Q. What do you see as initial barriers to adopting technology related to the office of the future?

Top 5 Responses*

High acquisition costs for technology 42% Support costs of the technology too high 32% Implementation time too long 30% Other higher priority initiatives 25% No visibility into cost and/or no clear ROI 25% % of Respondents

*Out of a total of 11 responses. Respondents could choose more than one.

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 8 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Return on investment is frequently measured and a quick payback expected Companies are measuring the ROI of these new technologies when deciding which will be integrated into the workplace and they are looking for quick paybacks on their investment.

13% 20% 1 year Nearly half of CIOs 5 or more years Q. What is the length and other senior of time that you expect 7% 4 years new technologies to IT decision makers 36% provide a return on expect ROI by 2 years! 24% 2 years investment? 3 years

Note: % of respondents, N=501

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 9 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon MFPs play a key role in the office of the future

Paper and digital content will coexist. Cloud The MFP caters to both information formats.

Digital Security MobileD The smart MFP ties into the emerging DX ecosystem shown in the graphic by enabling information workers to create, access, and disseminate business documents and information in the office of the future. Smart MFPs will impact several key business benefits (e.g., worker productivity, innovation, easier access to information, fostering a collaborative work environment) rtificial ugmented Intelligence andor irtual by intelligently functioning within a secured cloud. Reality IDC prediction: Smart MFPs will serve as the foundation earables Robotics for a majority of enterprise printing solutions in the office of the future.

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 10 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Spending on cloud services and cloud-enabling infrastructure will more than double by 2021

68% 84%

say cloud will be most say that content security helpful in transforming in the cloud will be very business processes over important in the next 2-5 years to the office of the future boost profitability and productivity Source: IDC Predictions

© IDC Visit us at IDC.com and follow us on Twitter: @IDC pg 11 Digital Transformation & Emerging Technologies: The Canon Office of the Future Survey, Conducted by IDC An IDC InfoBrief, sponsored by Canon Conclusion

DX and its related technologies are shaping the office of the future. New technologies will not completely replace the old but instead redefine how we use them. DX technologies such as cloud, security, AI, robotics, and others are leading the way, and existing infrastructure technologies such as MFPs will need to demonstrate a DX evolution to remain relevant. Buyers should seek out such solutions from their MFP providers. In preparation for such discussions:

Evaluate your organization’s DX maturity and establish priorities for implementing transformative technologies Understand how cloud, security, AI, and robotics technologies will drive your priorities for the future office Recognize the coexistence of digital and paper processes in the office of the future, and that printing and imaging will be part of your DX strategy

Identify the cost, productivity, and regulatory benefits from such implementations

Seek a holistic approach to hardware, software, and services that ties into DX technologies

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