Swiss Digital Index 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

Facebook

Alibaba

Airbnb

Novartis


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


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’



2. Methodology

3. Insights

4. Takeaways


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)


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


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


Extent to which "digital" is referred to in context of the company's internal processes, programs, initiatives and the like


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...)


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




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


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


Extent to which "digital" is referred to in context of the company's internal processes, programs, initiatives and the like


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


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

=


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



2. Methodology

3. Insights

4. Takeaways


Results

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Using the innovative methodology presented previously, data can be analyzed in an interactive presentation


DigitizeOperations

Digital Servicing – External Focus

Digital Enablement – Internal Focus

Digitize vs. Digitalize



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


DigitizeOperations

Switzerland in comparison to Global Champions

Copyright © 2015 Accenture All rights reserved.27


Illustrative

Digital Servicing – External Focus

Digital Enablement – Internal Focus

Uber

Alibaba

Intrasurance

Fidor



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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http://www.accenture.com/


Contacts

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Benjamin TueckSenior Manager Business Strategy

Accenture AGFraumünsterstrasse 168001 Zürich, SwitzerlandMobile: +41 79 540 [email protected]

Thomas D. MeyerCountry Managing Director Switzerland

Accenture AGFraumünsterstrasse 168001 Zürich, [email protected]

Swiss Digital Index 2015

Technology

Transcript of Swiss Digital Index 2015