Next generation banking

Digital transformation en förutsättning för att lyckas i den mobila kanalen

Krister Rydmark Director Financial Services Capgemini !Richard Trojmar Mobile Business Manager Nordics IBM

‹#›Copyright © Capgemini 2014. All Rights ReservedNext Generation Banking - Capgemini-IBM 2014-05-20.pptx

With 130,000 employees in more than 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services

With over 131 000 people in over 40 countries we have a strong global presence

• Revenue 2013: € 10,1 billion

• Head office: Paris, France

We are divided into four disciplines and six sectors

Manufacturing

Energy, Utilities & Chemicals

Telecom, Media & Entertainment

Financial Services

Public Sector

Our Mission & Vision

• Our Mission: Enabling Transformation • Our Vision: Enabling Freedom • We advise and support you in

transforming your organisation, from strategy through to execution

• We provide innovative solutions supported by our deep sector and functional expertise Outsourcing

ServicesTechnology Services

Local Professional Services (Sogeti)

5%

40% 40%

15%

Business Mix, by revenue

Our business mix enables us to deliver integrated solutions

Consumer Products, Retail & Distribution

Tech

nolo

gy S

ervi

ces

Out

sour

cing

Ser

vice

s

Loca

l pro

fess

iona

l Ser

vice

s

Cap

gem

ini C

onsu

lting

Consulting Services


What is Digital Transformation?

3

DIGITAL TRANSFORMATION IS THE USE OF

DIGITAL TECHNOLOGIES TO RADICALLY

IMPROVE PERFORMANCE OR REACH OF

ENTERPRISES

Since 3 years, Capgemini Consulting and MIT Sloan School run a joint research program to identify how digital leaders manage -‐ or have managed successful digital journeys

Key publications from our research with the MIT

We publish our Digital Transformation Review

In addition, we develop point of views and papers on Digital Transformation sub topics

http://www.capgemini-consulting.com/ebook/How-Digital-are-You/index.html

http://www.capgemini-consulting.com/transform-to-the-power-of-digital

http://www.capgemini-consulting.com/ebook/Wiring-Enterprise/publication-interactive/index-global.html

http://www.capgemini-consulting.com/ebook/The-Digital-Advantage/index.html

http://www.capgemini-consulting.com/ebook/digital-transformation-review-1/index.html

http://www.capgemini-consulting.com/ebook/Transform-Power-Digital/publication-interactive/index-global.html

http://ebooks.capgemini-consulting.com/CC-MIT-SMR-Research-Embracing-Digital-Technology/

http://www.capgemini-consulting.com/ebook/Digital-Transformation-Review-3/index.html

http://www.capgemini-consulting.com/ebook/digital-transformation-review-2/index.html

http://www.capgemini-consulting.com/digital-transformation-review-4


Introduction to Digital Transformation

▪ We are already seeing the signs of this transition: ▪ Startups are emerging who can envision and implement new products and new working and collaboration behaviors

▪ Digital natives are clamoring for change in their employers and in the companies they buy from

▪ Some companies, even hundred-‐year-‐old firms with billions in revenues, are starting to engage in digital transformation

“We are now in the midst of a third revolution: digital”

Steam Power led to

industrialization

Electrification led to innovation

such as assembly line

Digital led to re-‐envision processes,

capabilities and products

Two major technology-driven revolutions have changed the nature of business and society in the past two centuries

The one at the top today, will not be the same at the end


A majority of companies (65%) are currently Digital Beginners ...

• Strong overarching digital vision

• Good governance

• Many digital initiatives generating business value in measurable ways

• Strong digital culture

• Overarching digital vision exists, but may be underdeveloped

• Few advanced digital features, but traditional capabilities may be

• Strong governance cross silos

• Taking active steps to build digital skills and culture

• Management skeptical of the business value of advanced digital technologies

• May be carrying out some experiments

• Immature digital culture

• Many advanced digital features (such as social, mobile)...

• ... but in silos

• No overarching vision

• Underdeveloped coordination

• Digital culture may exist in silos

D i g i t a l i n t e n s i t y

Transformation managemen

FASHIONISTAS

BEGINNERS

DIGIRATI

CONSERVATIVES

65%

6%

14%

15%


Some industries are more mature than others, but there are also many exceptions when comparing individual companies

Banking

Consumer Packaged Goods Insurance

Pharmaceuticals

Retail

High Technology

Telecoms

Travel and hospitality

Utilities

Telcos • Fast to launch digital initiatives • Need to integrate and align initiatives across

silos

Insurers • Strong digital governance capabilities, but

cautious to investing • Regulatory worries and a risk-‐averse culture

Manufacturers & Automotive • See less opportunity / threat in digital

transformation • Need a transformative digital vision and the

leadership drive

Retailers • Strong in social and mobile • Need to focus on cross-‐channel

consistency, worker enablement and analytics

Banking • Early adopter of online services and

multi-‐channel development • Loosing ground due to process-‐ and

backend system complexity

Manufacturing & Automotive


…but every industry has firms that have already begun to gain the benefits of digital transformation

Percentage of firms in each industry by quadrant.

“Digital Beginners in any industry are several years from gaining the digital maturity that their Digirati competitors already possess"


Digitally-mature companies have significantly better financial performance* in terms of revenue generation, profitability and market valuation

+6% +9%

-4% -10%

Basket of indicators: • Revenue / Employee • Fixed Asset Turnover

Revenue Generation Efficiency

-11% +26%

-24% +9%

Basket of indicators: • EBIT Margin • Net Profit Margin

Profitability

-12% +12%

-7% +7%

Basket of indicators: • Tobin’s Q Ratio • Price / book ratio

Market Valuation

* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-‐traded companies in our sample


The way they engage customers

The way they work and operate

Their strategy and business model

Digital Leaders have a common DNA

Customer Experience

Operational Excellence

Business model

Vision incorporates Strategic assets

Focus on the “How” more

than the “What”Driven from the top

Common characteristics of digital leaders

Digital Leaders are changing business model, customer experience and operations


Capgemini has collected leading Digital Banking examples

Customer understanding through digital

channels

Customer analytics

Use of mobile channels with

customers

Use of social media with customers

Worker enablement

Process digitization

Cross-channel, self-service, personalized experience

Business insights

Easy Bank Tu cuentas « Compass virtual banker » (USA)Finest Online

Finest Online

Quick Deposit Quick Pay

Best Self Service Bank

« Real-‐time processing « Apple iPad/iPhone « Google Cloud « Customer Assistant Lola »

Tablet Banking Application

!Using Social Media

Virtual Operations Business Intelligence

Alior Sync -‐ Virtual Bank

Crowd-‐sourced credit card

Mobile based personalized offers

!PremiaT – Online Community Online Facebook Integration

!Online Collaboration – The Wall

!PremiaT -‐ Mobile Geopositioning

Social Media Credit Card

Remote mobile check deposit

IPhone voice recognition and assistance

Customer Analytics

Video chat with representatives


Capgemini has collected leading Digital Banking examples

Customer understanding through digital

channels

Customer analytics


customers

Use of social media with customers

Worker enablement

Process digitization

Cross-channel, self-service, personalized experience

Business insights

Easy Bank Tu cuentas « Compass virtual banker » (USA)Finest Online

Finest Online

Quick Deposit Quick Pay

Best Self Service Bank

« Real-‐time processing « Apple iPad/iPhone « Google Cloud « Customer Assistant Lola »

Tablet Banking Application

!Using Social Media

Virtual Operations Business Intelligence

Alior Sync -‐ Virtual Bank

Crowd-‐sourced credit card

Mobile based personalized offers

!PremiaT – Online Community Online Facebook Integration

!Online Collaboration – The Wall


Social Media Credit Card

Remote mobile check deposit

IPhone voice recognition and assistance

Customer Analytics

Video chat with representatives


customers


“la Caixa”-‐ PremiaT, the first online community from a financial operator that allows businesses to advertise promotions !New model never seen before in the financial sector, brings together its card customers, merchant customers, online banking and mobile banking services !

Lyckad mobilstrategi =Att komma så nära som du knappt vågat drömma om…

‹#›

Mobile

‹#›

Mobile

14

2

Mobile App Cracking Is Widespread

Source: Arxan State of Security in the App Economy: “Mobile Apps under Attack” report (2012). Based on identifying and reviewing hacked versions of top iOS and Android apps from third-‐party sites outside of official app stores

‹#›

Mobile

16

‹#›

Mobile

17

© 2013 IBM Corporation‹#› #ibmmobile

powered by

10:49 AM

Digital VaultCancel

New LED TVLabel:

Add to Home Inventory? YES

Add New Receipt

Take Photo

vodafone 3G

‹#›

Mobile

© 2013 IBM Corporation‹#› #ibmmobile

Cross-Platform Developmentand Testing

GPS & Geo-fencing

Direct Update

Push Notifications

Rapid backend

integration

Offline support & Data sync

Security

Mobile Application Platform

Apps

30%

70%

Remote Disable

App distribution

Authentication Single Signon

App version

management

Logging &Problem

determination

Analytics

‹#›

Mobile

IBM MobileFirst enterprise life cycle solutions

Operationalize Integrated DevOps!

for Mobile

InstrumenteraAnalys

Managera

Lansera

Integrera

Utveckla

Testa!

Scanna & Certifiera

Design