Post on 10-Aug-2015
Summer 2015
Digital Index Switzerland 2015
Copyright © 2015 Accenture All rights reserved. 2
Agenda1. A Digital Economy
2. Methodology
3. Insights
4. Takeaways
Copyright © 2015 Accenture All rights reserved.
• Create a benchmark in a new and dynamic market environment
• Create awareness for the need of digital transformation
• Give insight in the latest trends and what behavior
• We are right at the start of a new wave in Technology, which will have as much impact on organizations in the next 5 years as it has had in the last 20 years
• Second, there is a large amount of Digital technologies that is reaching the maturity stage such as wearables, virtual reality, drones, video analytics and connected devices
• Third, competition is fierce, from the ‘new’ blue-chip giants like Amazon or Google but also startups
The highest rewards of successful digitalization comes from its disruptive force to open new markets, bind customers, while gaining operational efficiencies and cost reductions.
Why this research?Goal of a Digital Index Need for Digital
Reward of Digital
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Accenture Technology Vision as a Foundation
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Accenture Technology Vision:• Pioneering enterprise do far more than flexing their digital muscles,
they are fundamentally changing the way they are looking at themselves and their industry/competition
• They shift from “me” to “we” and use the broader digital ecosystem to place bets on a grand scale
In 2015 Uber, the world largest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content, Alibaba, the most valuable retailer has no inventory and Airbnb the world’s largest accommodation provider owns no real estate*
*Sources: Tom Goodwin – ‘The Battle is for the customer interface’ http://www.novartis.com/newsroom/media-releases/en/2015/1885893.shtml
• Novartis Pharmaceuticals announces a joint investment company with Qualcomm, leading innovation in digital medicines for physicians and patients
• Novartis establishing a joint investment company with Qualcomm Incorporated, of up to USD 100 million, leading innovation in digital medicines for physicians and patients
• Digital technologies can optimize the value of innovative medicines by providing integrated solutions for physicians and patients and advancing the practice of medicine*
Uber
Alibaba
Airbnb
Novartis
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DigitizeDistribution & Marketing
Digitalizethe Business
DigitizeOperations
Transformation
DigitalizeThe process for turning digitized resources into new sources of revenue, growth and operational results that generate a business premium
DigitizeApplying technology to resources. A digitally-enables sales force is an example of incremental digital improvement
External Focus
Internal Focus
Digitalizing means transforming the business
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Four enabling conditions:
- Business commons
- Take-off factors
- Transfer factors
- Innovation dynamo
United States
Switzerland
Fin-land
Sweden
Norway
Netherlands
Denmark
United Kingdom
Japan
Germany
Australia
South Ko-rea
Canada
China
France
Spain
Brazil
Italy
India
Russia
0
10
20
30
40
50
60
70
80
90
100
Switzerland's digital readiness is no excuse
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National Absorptive Capacity
• Countries ability weave innovations into their “National absorptive capacity” (NAC)
Digital Evolution Index
• Identify how a group of countries stack up against each other in terms of readiness for a digital economy
Four Drivers
- Supply-side factors
- Demand-side factors
- Innovations
- Institutions
Studies about the enabling conditions for Digital at a country level
*Sources: Harvard Business Review 2.2015 – ‘Where the Digital Economy is Moving’ Accenture Research – ‘The Growth Game Changer’
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Agenda1. A Digital Economy
2. Methodology
3. Insights
4. Takeaways
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101 Swiss companies were chosen to investigate their progress on the digital agenda Sample Selection for Digital Index Switzerland
Chemicals
Construction
Consumer Goods
Electronics & High Tech
Engineering
IT & Communication
Logistics & Transport
Media & Entertainment
Pharma & Healthcare
Resources
Retail
Services
Utilities
Banking
Insurance
Financial Indicators available
No major M&A
Main Headquarter in Switzerland
Sample includes:
36 Growth Champions: 26 cross-industry; 7 banks; 3 insurances
All eligible current ACN Clients + Prospects
A Control Group of Non-Growth Champions
Growth Champions perform above the average of their industry peers and the entire sample in terms of
profitable growth
Top 500 Industry Sample Top 500 Eligibility passed Sample Digital Index (n= 101)
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Progress was measured with the Digital Index, that serves as outside-in view to assess the digital readiness of companiesDigitalization Index – Structure and Calculation.
Digitalization Index Ø
Digital Strategy Digital Servicing Digital Enablement
Trend
Objective
Interaction
Sales functionality
Service functionality
Operations & Processes
Resources & Organization
Workflow
Ø Ø Ø
Ø
Criteria Score
Dimension
Products & Solutions
Services
Sources: Publicly available sources like annual reports, investor relations documents, company webpage, industry magazines and web searches Scoring range 1-4 (0.5 steps possible); 4= strongly digitized, 3=to some extent digitized , 2=to a little extent digitized, 1= no evidence of digitization; all averages (Ø) calculated as unweighted averages
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Methodology
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Framework: Scale from 1 – 4 for each criteria
Dimension Criteria Explanation
Digitalization StrategyTrend Extent to which the company's strategy reflects "digital" as a relevant industry trend
Objective Extent to which the company's strategic objectives reflect "digital”
Digitalization Servicing
Product & Solutions Extent to which the company offers intelligent/ smart/ digitalized products/solutions
Services Extent to which the company offers client-facing internet-based services
InteractionExtent to which the company offers digital interaction functionalities (e.g. online feedback, social community pages like Facebook or Twitter…)
Sales functionality Extent to which the company offers client-facing sales/order specific digital functionalities
Service functionalityExtent to which the company offers client-facing, service specific digital/online functionalities (e.g. delivery tracking, after-sales services)
Digitalization Enablement
Operations & Processes
Extent to which "digital" is referred to in context of the company's internal processes, programs, initiatives and the like
Resources & Organization
Extent to which the company leverages digitally powered resources (e.g. big data/analytics department, software engineering centers…)
WorkflowExtent to which the company applies "digital" to organizing and perform its daily operations (e.g. virtual teams, video conferencing, social intra-networks...)
Copyright © 2015 Accenture All rights reserved. 11
Progress was measured with the Digital Index, that serves as outside-in view to assess the digital readiness of companiesDigitalization Index – Structure and Calculation.
Digitalization Index Ø
Digital Strategy Digital Servicing Digital Enablement
Trend
Objective
Interaction
Sales functionality
Service functionality
Operations & Processes
Resources & Organization
Workflow
Ø Ø Ø
Ø
Criteria Score
Dimension
Products & Solution
Service
Sources: Publicly available sources like annual reports, investor relations documents, company webpage, industry magazines and web searches Scoring range 1-4 (0.5 steps possible); 4= strongly digitized, 3=to some extent digitized , 2=to a little extent digitized, 1= no evidence of digitization; all averages (Ø) calculated as unweighted averages
Copyright © 2015 Accenture All rights reserved.
Methodology
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Framework: Scale from 1 – 4 for each criterion
Dimension Criteria Explanation
Digitalization StrategyTrend Extent to which the company's strategy reflects "digital" as a relevant industry trend
Objective Extent to which the company's strategic objectives reflect "digital”
Digitalization Servicing
Product & Solution Extent to which the company offers intelligent/ smart/ digitalized products/solutions
Service Extent to which the company offers client-facing internet-based services
InteractionExtent to which the company offers digital interaction functionalities (e.g. online feedback, social community pages like Facebook or Twitter…)
Sales functionality Extent to which the company offers client-facing sales/order specific digital functionalities
Service functionalityExtent to which the company offers client-facing, service specific digital/online functionalities (e.g. delivery tracking, after-sales services)
Digitalization Enablement
Operations & Processes
Extent to which "digital" is referred to in context of the company's internal processes, programs, initiatives and the like
Resources & Organization
Extent to which the company leverages digitally powered resources (e.g. big data/analytics department, software engineering centers…)
WorkflowExtent to which the company applies "digital" to organizing and perform its daily operations (e.g. virtual teams, video conferencing, social intra-networks...)
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Research Template
Criteria Sub- Criteria Factors / Benchmarks
3. Interaction
Digital Customer Interaction Online
Newsletter (personalized & non-personalized)
Call-back-Button
Appointment Requester (with client advisor)
Online Chat
Co-Browsing
Video chat
Social Media (Facebook, Twitter, Youtube)
Personalized Online Portal
Anytime / Anywhere
Multichannel Coverage (Smartphone, Tablet)
Location based Services & Offerings (Geo-location)
Product configurator (personalization) / custom-made productsExclusive Online Offerings
Service
Newsletter (personalized & non-personalized)Call-back-ButtonAppointment Requester (with sales staff)Online ChatVideotelephonie/AdvisoryAvatar (Digital Advisor)Product Co-creation (Invite customer into product development)Social Media (Facebook, Twitter, Youtube)Mobile Webpage (Smartphone, Tablet)Apps for Mobile Devices (Smartphone, Tablet)Location based Services & Offerings (Geotargeting)Integration of 3rd Party ProviderseCommerce (eShop/ eCatalogue)mCommerceNext Best Product (product recommendations, personalised advertisments, concrete offers)Rebuy Opportunities for ending products (One-Click)Store locater/ finder (online/ offl ine)Gamification (e.g. online simulation games)Customer loyalty programsQR Codes to provide product informationDigital DisplaysVirtual fitting rooms Advisory Tools Modular online pricingIndividual eCoupons (via QR-Codes)Payment-Codes - QR Code & ScanningMobile Payment / Google wallet (NFC)Online delivery (Same day delivery)Click & Collect / click-and-collectTrack & Trace (via GPS)Online contact/ service request form (usage of Channels defined under "Interaction")Login area for Data Administration (e.g. Personal Settings) Tutorials / User Manuals FAQ
Sales functionality
Service functionality
Attention/ Information (Online and Offl ine)
Advice/ Personalisation
Product & solution
Interaction
Transaction/ Payment
Fulfillment
Digital Customer Interaction/ Communication
Anytime - Anywhere /Eco System
After Sales Services / Support
Example
To ensure consistency and comparability, the research approach has been standardized and tailored to industriesResearch Approach
52 cross-industry Digital Factors +
Industry-specific adaptations (e.g. Banking 37 Factors)
Consistent and comparable baseline within and across industries
=
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Company NameSwisscom AG
Evaluation range 1 = largely digitized2 = partially digitized3 = little digitization4 = to no extent
Date
18.10.14
Short Description
Swisscom AG is a holding company which offers telecommunication services. The Residential Customers division provides broadband Internet access, serves Swisscom television subscribers and also combines telephone, data traffic, handset sales and directories. The Small and Medium-Sized Enterprises division offers fixed-line and mobile communications, Internet and data services, as well as maintenance of Information Technology infrastructures. The Corporate Business focuses on hosting, security services and network integration. The Wholesale division offers wholesale services. The Network & IT builds and maintains the Company's nationwide fixed network and mobile communications infrastructure.
Area Subarea Topic Evaluation
rangeEvidences / Highlight examples Preferred research source
Digital Strategy
Trend Extent to which the company's strategy reflects "digital" as a relevant industry trend
1,0*As Swisscom acknowledges 3 major trends (Everything always on, IP-based telecommunications, global competition) their strategy indirectly reflects digitization as a whole by imposing to create the best infrastructure for safer and quicker internet access, which is available from everywhere and anywhere (within Switzerland) [ex. Swisscom's LTE is available for 85% of the Swiss population, numbers are increasing]*Swisscom's guiding principle is being a trustworthy companion in the digital world
*Annual Report 2013, p.35f, 2014*Annual Report 2013, p.36, 2014
Objective Extent to which the company's strategic objectives reflect "digital" 1,0*As Swisscom plans and keeps investing in the Swiss infrastructure of the mobile phone network, the cable network and the fibre-optic network, it seems feasible to claim that they're adhering a straightforward digitization of the Swiss telecommunications and IT sector; the point is that a digitized Swiss population is only possible if their network systems are on a very high standard and can cover the population's data streams;
*Annual Report 2013, p.11ff, 2014
Digital Strategy Summary Summary assessment 1
Digital Servicing
Product & solution Extent to which the company offers intelligent/smart/digitalized products/solutions
2,0Because of the fact Swisscom is offering solutions in Fixedline & Mobile Telephony, Fixedline & Mobile Internet, Digital TV and in IT Services & Networking Solutions, it is assumable and reasonable to say their products are digitized to a certain extendExclusive Online Offerings: Swisscom rewards customers with an online discount of CHF 100.- when they sign up a new contract online via Swisscom's eShop
*http://www.swisscom.ch/en/residential/mobile/chf-100-promotion.html
Service Extent to which the company offers client-facing internet-based services
1,0Cloud services: Swisscom's online CHM platform enables companies of all sizes to provide their employees with the opportunity to work on their personal health any time, with complete anonymity; companies provide the CHM platform with the aim of actively promoting the health and well-being of their employees; The employees at participating companies are offered a comprehensive health test with an integrated coaching call; The employees can also benefit from special offers and save personal data from health checks in the health dossier Evita;Cloud services: Swisscom competence center curaPrax is a cloud based software solution for group and sole doctor's offices to connect with all kinds of stakeholder groups to provide efficient and digital monitoringCloud services: Swisscom is the first Managed Service Provider (MSP) to harness Nexthink V4 technology in the cloud for its Smart Monitoring service for SMEsM2M (Machine to Machine): The Swisscom Connectivity Management Platform (CMP) is Swisscom's solution for company's seeking for holistic and efficient M2M systems; the platform adapts to customer's business and offers unique flexibility and value; via the CMP online portal the customer has access to real-time data and therefore retain maximum controlMobility: Swisscom about Managed Mobility: "The mobility market is changing – we want to be a support for our customers on their journey to a new understanding of what mobility means. Our Mobility as a Service offering is simple, reliable and kind on resources. With this service we cleverly combine Mobility and ICT (Smart Mobility), enrich our existing offering and create new services and products."
*http://www.swisscom.ch/en/business/health/fit-healthy/corporate-health-management.html*http://www.curabill.ch/de/curaprax.htm*http://www.nexthink.com/nexthink-announces-swisscom-partner-offer-end-user-analytics-cloud/*http://www.swisscom.ch/de/business/m2m/our-offer/m2m-plattform.html*http://www.swisscom.ch/en/business/managed-mobility.html
Interaction Extent to which the company offers digital interaction functionalities (e.g. online feedback, social community pages like Facebook or Twitter…)
1,5Apps for mobile devices: Swisscom offers customers the iO app for making free phone calls and chats globally and for free, so long as the customer is Swisscom's customerMobile Webpage: Swisscom's corporate website is optimized for mobile devicesNewsletter: Swisscom provides its customers a newsletter for offers and services separated into 3 categories: private customers, shop and TVOnline Chat: Swisscom provides an online chat tool for customersSocial Media: Swisscom is represented on Social Media through Facebook, Twitter, YouTube, Google+, Xing, Linkedin, Kununu, Slideshare, Flickr and Instagram (etc.)
*https://itunes.apple.com/ch/app/io-free-phone-calls-chats/id649895248?l=en&mt=8*http://www.swisscom.ch/de/privatkunden/mehr/newsletter.html*https://server.lon.liveperson.net/hc/71476292/?cmd=file&file=preChatSurveyContent&site=71476292&sessionkey=H6963797169206445622-f42711c7a7cf41339e0ff0bfb0fa2fb8K16506673&survey=Pre-Chat*http://www.swisscom.ch/de/about/medien/social-media.html
Newsletter: The company provides its customers a newsletter for offers and services separated into 3 categories: private customers, shop and TVOnline Chat: The company provides an online chat tool for customersSocial Media: The company is represented on Social Media through Facebook, Twitter, YouTube, Google+, Xing, Linkedin, Kununu, Slideshare, Flickr and Instagram (etc.)Mobile Webpage: The company’s corporate website is optimized for mobile devices
Research results are documented in a standardized Excel spreadsheet for each companyStandardized Templates
Standardized sheets based on digital dimensions
Mapped research findings according to criteria and digital factors
Sources included to provide credibility
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Agenda1. A Digital Economy
2. Methodology
3. Insights
4. Takeaways
Copyright © 2015 Accenture All rights reserved.
Results
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Using the innovative methodology presented previously, data can be analyzed in an interactive presentation
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Digitalizethe Business
DigitizeOperations
Digital Servicing – External Focus
Digital Enablement – Internal Focus
Digitize vs. Digitalize
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DigitizeDistribution & Marketing
Channel Digitizer
Bottom-Line Optimizer
Digital Transformers
Graubündner Kantonalbank
Credit Suisse AGUBS AG
Actelion Ltd
Roche
Novartis AG
Kuoni Reisen Holding Panalpina
SBB
Die Schweizerische Post
Swisscom AG
ABBEndress+Hauser
Bossard Holding AG
Tamedia
Nestlé S.A.
Swatch
Syngenta AG
Migros Postfinance
Digitalizethe Business
DigitizeOperations
Switzerland in comparison to Global Champions
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DigitizeDistribution & Marketing
Illustrative
Digital Servicing – External Focus
Digital Enablement – Internal Focus
Uber
Alibaba
Intrasurance
Fidor
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Agenda1. A Digital Economy
2. Methodology
3. Insights
4. Takeaways
Copyright © 2015 Accenture All rights reserved. | Visit us at www.accenture.com
Strategically invest in transforming entire business and operating models to become the center of the industry’s emerging digital ecosystem
Leverage digital technologies like Big Data Analytics and Cloud Computing to turn data insights into new opportunities by sharing them between players within supply chains and cross-industry consortia
Invest in new skills and processes that enable human and digital labor to work effectively together and implement organizational changes that maximize the thereby arising synergies
ConclusionReimagine industry models Realize the value of data
Prepare for the future of work
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Contacts
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Benjamin TueckSenior Manager Business Strategy
Accenture AGFraumünsterstrasse 168001 Zürich, SwitzerlandMobile: +41 79 540 5524benjamin.tueck@accenture.com
Thomas D. MeyerCountry Managing Director Switzerland
Accenture AGFraumünsterstrasse 168001 Zürich, Switzerlandthomas.d.meyer@accenture.com