D14 - Inspiring Digital Business - Fintech Studio Sessions
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Transcript of D14 - Inspiring Digital Business - Fintech Studio Sessions
SPONSORSCORPORATE SPONSOR
@digiconx #d14
BROUGHT TO YOU BY
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FINTECH STUDIO SESSION
#d14fintech @digiconx @PA_Consulting
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FINTECH STUDIO SESSION:Welcome & Introduction
#d14fintech @digiconx @PA_Consulting
Kevin O’Shaughnessy, PA Consulting
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#d14fintech
What's it like to be in Financial Services at the moment ?
Regulation changing Distribution& Products
Customers more connected &demand better experience
An overload of new developments .. But desire to innovate
Companies looking at theirbusiness models
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#d14fintech
The existing stuff we work with…
Internet/Extranet Sites
Workplace Portals
Wrap Platforms
FS Social Media
Financial Planning Tools
IntranetsFS Apps
Digital Marketing
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#d14fintech
Wearable TechnologyBig Data
Digital Identity
Internet of ThingsCashless Society
Collaboration
Personalisation
The new stuff we want to get our heads around
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#d14fintech
Digital
Culture
DigitalEngagement
DigitalEnablers
Culture: The way in which a company behaves, how it is governed and led. How it manages its strategic development and measures its digital success & performance.
Engagement: The experience and opportunities that a company creates using technology to allow its customers, employees, stakeholders and suppliers to engage and transact on and offline.
Enablers: To deliver the desired experience and engagement, a company needs a revised suite of capabilities spanning people, process, structure & technology.
Putting it together – Engagement on the outside, culture and enablers onthe inside
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How we will navigate you through the maze
The world around us and coming revolution in FS Mark Thomas, PA Consulting 11.30 11.50
Experience excellence for the connected customer Carol Mc Creadie, Client Service Director, Nunwood
11.50 12.10
Using social intelligence to influence and predict behaviour
Nathan Sage, Head of Social Intelligence, PA Consulting
12.10 12.30
Panel Debate Hosted by Gavin Neilson, PA Consulting 1.30 1.50
Creating a secure world for digital to survive & thrive John Skipper, PA Consulting & Colin Mills, Pirean
1.50 2,10
Delivering for customers – why exploration through rapid development is required to enhance customer
Robert McGill & Mickael Paris, Standard Life 2.10 2.30
How organisations are adapting to the change Rob Mettler, PA Consulting 2.30 2.45
Don’t forget to take part in our Digital Barometer Survey, either at a PA Showcase stand
or go to http://digitalbarometer.paconsulting.com/
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The World around us and coming revolution in FS
#d14fintech @digiconx @PA_Consulting
Mark Thomas, PA Consulting
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#d14fintech
Remember the dotcom hype…
0
20
40
60
80
100
120
31-Dec-97 31-Dec-98 31-Dec-99Cl
osin
g sh
are
pric
e
Amazon
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But now, much of it has turned out to be prescient
Sector Iconic casualties
Retail Books Borders
Travel Thomas Cook
Films & Music Blockbuster
Photography Films Kodak
Cameras Olympus
Information EncyclopaediaEncyclopaedia Britannica
Source: PA analysis
050
100150200250300350
31-Dec-97 31-Dec-01 31-Dec-05 31-Dec-09 31-Dec-13
Clos
ing
shar
e pr
ice
Amazon
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We are on the edge of a similar revolution
Technology
IT
Big Data
Cloud
Machine to machine
Mobile
Social media
Artificial intelligence / Robotics
Other technologies
Display including 3d
Materials
Nano-technology
3d printing
Genetics
Energy
The Arms Race
(speed of learning)
Basis for personalisation
Superior Customer Insight
Analytics: • Needs• Attitudes• Behaviours• Intentions
Superior Customer Interaction
• Product• Transaction• Information• Motivation
Superior Customer Data
Integrating:• Transactional• Non-transactional
Basis for analysis
Basis for collection
of information
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#d14fintech
The winners may not be the competitors you expect
Similar model,
different sector
Different model,
different sector
Same sector, different
model / focus
Existing competitors Inertia has always
been the incumbents’
friend…what if it becomes their worst enemy?
20152016-20
2020-30
2030-40
Lloyds TSB
AEGON
Admiral
Aviva
HBOS
RBS
WONGA
Directline
Sheila’s Wheels
Compare the market
Go Compare
Google Wallet
O2
M&S Bank
Tesco
Virgin
2014
2013
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#d14fintech
Success in self-disruption requires at least the following six elements:
The unit should have all the functional skills it needs to succeed, freeing it from reliance on the parent organization, and it must not report to the business or businesses that are being disrupted.
For the incumbents to succeed, they will need to react whole-heartedly
An autonomous business unit. 1
These leaders have addressed a variety of challenges, especially in the kinds of problems the new growth business will face. They are often necessarily sourced from outside the organization.
Leaders who come from the relevant “schools of experience.”
2
This will fund the unit regardless of the fortunes of the core business. A separate resource allocation process.3
These should not be required to coordinate with or defer to the existing sales organization. Independent sales channels.4In most cases it will reflect priorities different from those of the core business. You can expect the new unit to do as well as the core in terms of net profit per dollar of sales, but the formula for generating that profit (such as gross margins or asset turns) must be different.
A new profit model.5He or she must be willing to spend an inordinate amount of time understanding and guiding the development of the new business and must protect it from the natural desire on the part of managers in the core business to shut it down and appropriate its resources.
Unwavering commitment by the CEO.6
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This sort of change can happen faster than you imagine
Models Company Issue Time from peak to
problem
‘Widgets vs digits’
Kodak Digital cameras 30 years
Newspaper classified ads Craigslist 17 years
Argos Internet purchasing 15 years
Blockbuster Digital streaming 15 years
Encyclopaedia Britannica Wikipedia 11 years
‘Digits vs digits’
Nokia Apple 5 years
Apple Android ??
“Most people overestimate what they can do in one year and underestimate what they can do in ten years.”
― Bill Gates
Source: PA analysis
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How might this change the landscape for suppliers?
0%
25%
50%
75%
100%
New entrants and reinventors Large incumbents Others
Source: PA analysis
A challenging regulatory environment with a desire to encourage
new entrants will increase the likelihood
of such a scenario.
www.youtube.com/watch?v=njnNVV5QNaA
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Questions
#d14fintech @digiconx @PA_Consulting
EXPERIENCE EXCELLENCE FOR THE CONNNECTED CUSTOMERCarol McCreadie
#d14fintech
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CUSTOMER EXPERIENCE EXCELLENCE STUDYUK, USA and Australia, since 2010
Why Do We Do This?
To find out Who
To find out How
To uncover the Common Elements
To help our clients excel
How Do We Do This?
Scale questions
Cross industry comparisons
Critical Incident Questioning
#d14fintech
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WHO ARE THE TOP PERFORMERS?Who are the Customer Experience Winners?
The Top 10 (UK)
1st
2nd
3rd
5th
6th
7th
9th
10th
Position Brand Score
8.25
8.23
8.19
8.18
8.01
8.00
7.98
7.95
7.93
7.90
4th
8th
The Top 10 (US)
1st
2nd
3rd
5th
6th
7th
9th
10th
Position Brand Score
8.17
7.96
7.88
7.81
7.73
7.64
7.63
7.62
7.60
7.52
4th
8th
The Top 10 (Australia)
1st
4th
5th
6th
8th
9th
Position Brand Score
7.95
7.95
7.83
7.74
7.53
7.52
7.50
7.45
7.43
7.41
3rd
7th
1st =
2nd
#d14fintech
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WHICH INDUSTRIES EXCEL?
Groce
ry R
etail
Reta
il
Rest
aura
nts
Trav
el
Finan
cial
Serv
ices
Ente
rtain
men
t
Telco
Utiliti
es
HighestLowest
#d14fintech
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THE SIX PILLARS OF EXPERIENCE EXCELLENCE
Personalisation
Time & Effort
Resolution
Expectations
Integrity
Empathy
#d14fintech
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EXPERIENCE SIGNATURE Top 10 Experience Signature
Personalisation
Integrity
Time & Effort
Expectations
Resolution
Empathy
8.28
8.13
8.49
7.72
7.79
7.54
#d14fintech
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WHICH PILLARS ARE DRIVING THE TOP TEN?
Top 10 Pillar Performance vs. Average
Perso
nalisa
tion
10%
Inte
grity
14%
Tim
e &
Eff
ort
9%
Exp
ecta
tions
12%
Reso
lutio
n
14%Em
path
y14%
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PERSONALISATIONTailoring the broad experience to the customer needs in a way that feels right for each customer
• Are you passionate about making each customer feel like an individual?
• How do you translate this in a ‘digital world’?
• Have you put in place enough of the small steps to build an emotional connection with your customers?
• What additional steps are needed to connect to your customer online?
Experience leaders are: using big data to know their customers individually to drive 1-2-1 conversations
#d14fintech
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Lush:• Qualification based sales process
• Friendly
• Problem solving
Personalisation Score:
7.77Personalisation Score:
8.27
Body Shop:• Pressure to buy more
PERSONALISATION: BEST PRACTICE
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TIME & EFFORTValuing time, minimising effort in interactions, making it easy for consumers to do business
• Have you maximised technology to raise the bar?
• e.g. Amazon – ‘frictionless’ customer service
• Do your customers feel that their time is well spent when they deal with your business?
• Do you make it easy for your customers to do what they need to do, no matter what channel they choose and if they change channel?
Experience leaders are: analysing processes from the customer
perspective to remove unnecessary barriers
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TIME & EFFORT - CLICK & COLLECT
#d14fintech
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EXPECTATIONSAccurately setting, meeting and exceeding expectations
• Do you deliver your brand promise consistently to all your customers?
• Are your customers delighted when they deal with your company? Is it easier or more difficult to do this in a ‘digital world’?
• Does your company set expectations with care and understand the implications if they are not met?
Experience leaders are: consistently exceed expectations via ‘magic
moments’ to customers
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EXPECTATIONS – U Bank - Australia
#d14fintech
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EMPATHYUnderstanding the customer’s circumstances to drive a deeper rapport
• Are your employees trained and capable to react to individual customer feelings?
• Does your company genuinely care for the customer from the most senior all the way down?
• Are your processes flexible enough to respond to individual customer circumstances?
Experience leaders are: building an inherent flexibility within their internal culture
which empowers their people to react to the customer
#d14fintech
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EMPATHY - CASE STUDY:
#d14fintech
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RESOLUTIONTurning a poor experience into a great one – putting things right when they go wrong
• Process is often the enemy! Do you have the right processes in place to resolve things for the customer quickly and sincerely?
• Do you focus on the lifetime value or potential value of the customer when resolving things?
• If something does go wrong, do you leave your customer feeling good?
Experience leaders are: minimising issues through root-cause analysis and diverting resources to ‘heroic recovery’ for serious
problems
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A business you can trust, delivers on promises and consistently acts in customers’ best interests
• What does ‘the right thing’ mean to your customer?
• Do you know what your business stands for? Is this a shared vision across the company? Is it applied to all processes?
• 2013 vs 2012 performance Co-operative FS – fell 110 places Starbucks – fell 39 places Amazon – fell 3 places
• Slow to build…….quick to fall
INTEGRITY
Integrity leaders are: making clear , unambiguous statements of intent, delivering consistently at micro and
macro levels
#d14fintech
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INTEGRATING BEST PRACTICE INTO YOUR BUSINESS
• Manage via a senior governance group• CEO communications & messaging
• Weave into the culture
• Regular updates• Central to business briefing
• Launch with impact• Closed loop design
• Recruit• Train
• Build into ‘everybody’s everyday’!
Customer at the Heart The Six Pillars as an Experience Framework
• Understand • Diagnose• Prioritise
• Design
Push Metrics & Priorities Across the Business
Implement & Improve
#d14fintech
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THANK YOU!
Personalisation
Time & Effort
Resolution
Expectations
Integrity
Empathy
Many more case studies available at nunwood.com
#d14fintech
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Social Intelligence : Influencing & predicting customer behaviour
#d14fintech @digiconx @PA_Consulting
Nathan Sage, PA Consulting
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#d14fintech
What is social media? It’s just life that people have chosen to digitally share
Cartoon by John Atkinson ©2011-2014 http://wronghands1.wordpress.com/2013/03/31/vintage-social-networking/
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Scientific (Googled) definition
Social Intelligence is the mental ability to understand the motives, emotions, intentions and actions of others and to motivate and influence the behaviour of (groups of) people
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Combining the two creates a new playing field in the war for customer centricity and better intelligence
Behave Feel Connect
Predict personality & behaviours (group or individual)
Trusted influence and peer recommendation
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Social intelligence is the most significant growth opportunity for the next 5 years?
98%predictable
78% influential
$200 million reward
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Timeline: An illustration of key life events as they’re experienced on Twitter
These Twitter conversations are excerpts from real, and randomly selected Twitter
conversations about each theme.
‘Trying to think of what legal career I would like to pursue when I graduate. #toomanyoptions07-Apr-2014
‘So excited to start learning to drive on Thursday!’ 05-Apr-2014
‘My plan for the summer is to buy a house, I will succeed!’ 30 mins ago
‘So happy I'm starting my own business this may! #ceo’ 02-Apr-2014 17:59 PM
‘Oh yay!! A little fun in the sun, drinking, laughing, and fun girls weekend! #3moredays xo’ 17 hours ago
‘Oh my Gosh. He proposed, we're getting married!’ 17-Feb-2014 16:48 PM
‘We're Planning A Baby!’ 02-Dec-2013
17:55 PM
‘Family holiday planning roll on September x’ 09-Mar-2014 05:50 AM
‘Yes, it's true. I am retiring at the end of the month’07-Dec-2013 05:48 AM
‘I have been busy taking care of my husband after his first hip replacement.’ 05-Mar-2014 15:22 PM
‘I had to plan my husbands funeral for Christmas.’ 05-Feb-2014 20:04 PM
At Leeds Uni have open day with daughter. Already empty nest pangs but must let my girl fly... 12-Oct-2013 06:36 AM
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PA identifies 60,000 people interested in buying a car in the UK over the past 3 months. Only 111 have had their need for finance satisfied providing a significant customer targeting and conversion opportunity for the bank
1,236 Mentions of car purchasing
and / or finance
111 Mentions of car
finance / loan and a bank
60,000 Tweets expressing intent to purchase a car
Number of mentions relating to buying a car on Twitter over the last 6 months
“Got to get my car MOT'd for the first time this week, timed it all
wrong because I'm looking at new cars at the weekend!! #fail”
08/07/13
“Gonna have to get a bank loan or get a car on finance :)”
12/05/13
“If you look on a car dealership site it usually shows you whether you can buy it outright or whether
they offer finance...” 08/07/13
“#Santander need to hurry up and send through my loan
paperwork....need to get this car sorted! ...” 08/07/13
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PREDICTABILITY
Anticipating human behaviour will become
the norm
The power of the crowd will challenge
the power of governments and
organisations
The battle for influence and control
will be a primary factor for success
INFLUENCE
Predictability, power, and influence
THESE WILL CHANGE OUR LIVES FOREVER…
POWER
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Predictability, power, and influence
OF ALL DATA IS CREATED BY CONSUMERS
75%
Anticipating human behaviour will become the norm
1. Businesses will use mapped behaviour patterns to predict consumer needs and identify new trends as they emerge
2. Years of big data and online activity will allow organisations to understand consumers intimately and target them precisely
Billions of people now record and share their lives so openly on social media. This information can be analysed to establish norms, which in turn reveal interests, attitudes and beliefs.
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The power of the crowd will challenge the power of governments and organisations
1. Businesses will use crowd thinking to co-create products and services, and encourage product acceptance
2. Consumers will create demand via the crowd and the traditional sales model will collapse
3. Corporate agility will become the key factor for success as barriers for new market entrants continue to shrink
4. Organisations and governments will create their own influential crowds to counter the power of consumer-led crowds
PEOPLE POWER
During 2010 the total number of Facebook users in the Arab world increased by 78% to 21.3 million
Predictability, power, and influence
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#d14fintech
The battle for influence and control will be a primary factor for success
1. Tribes will form around people of influence with global reach & power. This will diminish country and cultural influences and generate new centres of power
2. Governments will start to lose influence to individuals and will legislate to protect and regain power
3. Cybercrime will be the new crime bonanza, creating an economic force so strong that traditional combat tactics will have zero impact
Predictability, power, and influence
(23)
The number of people following the pop star
JustinBieber
is the same as the population of
SPAIN
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Questions
#d14fintech @digiconx @PA_Consulting
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FINTECH STUDIO SESSION PANEL DEBATE
#d14fintech @digiconx @PA_Consulting
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CREATING A SECURE WORLD FOR DIGITAL TO SURVIVE AND THRIVE
#d14fintech @digiconx @PA_Consulting
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#d14fintech
Thriving in a digital world. How can security help?
S a f e a n d s i m p l e
P r o p o r t i o n a t e . I n t u i t i v e . F a s t .
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Thriving in a digital world. How can security help?
P e r s o n a l a n d t r u s t e d
W h a t c u s t o m e r s w a n t . H o w t h e y w a n t i t .
W h e r e t h e y n e e d i t .
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Richer func t iona l i t y
M o r e o p t i o n s . M o r e o p p o r t u n i t y.
M o r e b u s i n e s s .
Thriving in a digital world. How can security help?
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Thriving in a digital world. How can security help?
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Thriving in a digital world. How can security help?
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Thriving in a digital world. How can security help?
Case study #1
Service transformation for a leading health, general and life insurance multinational.
Case study #2
Secure online banking for international Wealth and Investment Management organisation.
Business objectives:
• Provide secure access to service portals for employees, customers, brokers and financial advisors.
• Transform application and service delivery platforms. Better enable rapid go-to-market initiatives for new services.
• Introduce customer self-care.
• Deliver strong authentication and an extensible platform for integrating future technology.
Business objectives:
• Deliver secure online banking services, compliant with the requirements of the Monetary Authority of Singapore.
• Implement enhanced security controls with new 2FA mechanisms, end-to-end encryption, out of band transaction confirmation and secure/automated issuance of passwords and tokens across multiple devices.
• Provide seamless customer migration from existing account and security systems.
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Questions
#d14fintech @digiconx @PA_Consulting
#d14fintech
Delivering for Customers
Robert McGill & Mickael Paris
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
#d14fintech
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
#d14fintech
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13mDrop in living
standards
£320bnSavings Gap
7.5mAdvised to direct
13mLooking for help
(MSE)
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Progress over
perfection
Small expert dedicated
team
Light governance
Co-creation
No ideologies or
HIPPOs
Autonomous with support
Healthy tension
Small iterations
#d14fintech
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
411%
646% > 10x
10 - 25
success
challenges
border control
whack-a-mole
momentum#d14fintech
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Always know why
Don’t guess
Don’t want
everything
Invest in people
#d14fintech
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Enabling change, enabling success
Mickael Paris
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#d14fintech
Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Why Rob and I should hate each other
#d14fintech
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Why we don’t
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Change of pace
Before After
• Adding GWT verification code = 6 months
• Removing a banner from secured site = 9 months
• Adding Multivariate Testing (MVT) tags on all pages = 1 week
• Making half a site mobile responsive = 1 month
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Change of strategy
14 years and barely any change outside of colouring…
#d14fintech
2000 2005MyProducts added
2007Doc centre added
2010 2011Rebrand Now
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Change of strategy
…but, being faster now allows us to have a real customer-driven strategy
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Change of approach
Having an “omni-department” team allows us to move from regulatory content updates to on-going website optimisation. Or when a few numbers can speak a thousand words:
Being data-driven rather than slaves to red-tape: MVT
#d14fintech
24%ISA applications
45%Pension applications
292%Registrations
1 weekDesign and content sign-off
1 weekImplement test
2 daysQA
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
What the future holds for us
#d14fintech
Move fast with proof of concepts
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In big organisations the introductions of new technologies and new services can be time consuming and resource intensive.
However since we changed our way of working:
MVT: 3 months from needs identification to 1st test
Web Chat: 2 months from sign-off to live date
Coming soon:
Phone/email/text re-targeting: Contacting People who abandoned a purchase
Online to offline tracking: Understanding which online activities are driving phone sales
Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
What the future holds for us
Now we are set-up and geared up for change we want to keep the momentum going and transform Standard Life from a nearly 200 years old unmovable beast to a leading e-business company.
• Online segmentation: “Give me what I’m interested in…”• Behavioural targeting at the individual level: “…what I need…”• Becoming device agnostic:”…when and how I want it.”
We also want to become the place to go to for financial guidance by:• Developing new tools• Developing new apps• Create the first “real” online guidance platform
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Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties
Questions
80
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How organisations are adapting to the change
#d14fintech @digiconx @PA_Consulting
Rob Mettler, PA Consulting
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The world is changing and creating a new type of business…
Digital
Culture
DigitalEngagement
DigitalEnablers
© PA Knowledge Limited 2014
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So where are others and where are you…
Dabbling in digital
Digitisingtoday
Digitaltomorrow
• No channel integration• Heavily marketing biased • Me-too services• Minimal desire to change• Minimal people with digital skills
• Multi-channel e.g. on-line, mobile and phone• Some new digital customer services• Self service, zero-touch transactions• Have a digital strategy• Digital operations added to organisation
• Omni-channel operations Major growth and new revenues
• Business strategy is digital strategy• Organisation re-structured to be
digital – new operating models
0
1
2
3
4
5
6
1 2 3 4 5 6 7
© PA Knowledge Limited 2014
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So where are others and where are you…
19%
22%
25%
16%
10%
4%3%
10%
0%2%
9%
19%
31%29%
0%
5%
10%
15%
20%
25%
30%
35%
Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7)
32. Where are you now? 33. Where do you want to be?
Barometer data © PA Knowledge Limited 2014
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So where are others and where are you…
17%
21%
27%
17%
10%
4%3%
7%
0%2%
7%
19%
33% 32%
0%
5%
10%
15%
20%
25%
30%
35%
Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7)
32. Where are you now? 33. Where do you want to be?
12%
24%
21%
31%
7%
2% 2%
5%
0%
2% 2%
19%
45%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7)
32. Where are you now? 33. Where do you want to be?
Barometer data © PA Knowledge Limited 2014
86
#d14fintech
We clearly understand how digital will transform our business/institution
dddddd
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
15%
24%
29%
21%
11%
7%
21% 21%
43%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
87
#d14fintech
We have restructured our business/institution in line with our digital ambition
dddddd
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
30%32%
22%
10%
6%
10%
50%
26%
14%
0%0%
10%
20%
30%
40%
50%
60%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
88
#d14fintech
We are using digital to target new customers with new propositions
dddddd
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition
• Paperless, branchless and card less, bank
• Uses mobile as the key device for banking.
• Uses social scores to determine pricing and access to products.
• Integrated timeline to show customers the impact of their life on their spending habits
We are using digital to target new customer with new propositions
31%
27%
21%
15%
6%
8%
38%
27%
24%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42) Source: Moven website
89
#d14fintech
What is the driving force for digital change for your business/institution…
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
What is the driving force for digital change in your business/institution
79%
46%
31%
12%
49%
16%
5%
90%
50%
19%
26%
50%
14%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Customers Competitors Employees Shareholders Market opportunities Regulation Other
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
90
#d14fintech
Who is driving digital inside your business/institution?
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
19%
13%
26%
12%
5% 5%
20%
0%
5%
10%
15%
20%
25%
30%
The CEO The board Marketing IT Operations Customer service Other
What is the driving force for digital change in your business/institution
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
Source: www.retail-week.com (Photographer Jason Alden)
Source: John Lewis website
91
#d14fintech
We deliver a seamless integrated experience to our customers
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We deliver a seamless integrated experience to our customers across channels 36%
29%
23%
9%
4%
26%
36%
24%
10%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
92
#d14fintech
We use digital innovations to improve the customer experience
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
21%
36%
23%
13%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We use digital innovations to improve the customer experience
23%
35%
22%
14%
7%
12%
48%
14%
19%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
Sou
rce
: B
arcl
ays
we
bsi
te
Sou
rce
: Ap
ple
ITun
es
93
#d14fintech
Digital disruption is making its way across the enterprise
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We use digital innovations to improve the customer experience63%
34%
21%
14%
26%
43%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
We have adapted our processes for the digital world in the following areas 61%
31%
21%
13%
25%
42%
2%
64%
48%
29%
21%
17%
45%
0%0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
Source: First Direct website
94
#d14fintech
Governance needs adapting…
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambitionWe use digital innovations to improve the customer experience32% 32%
20%
11%
4%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Our existing governance models are suitable for digital business
33%32%
20%
11%
4%
29%
38%
19%
14%
0%0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
95
#d14fintech
Importance vs. implementation of big data (part 1)
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We use digital innovations to improve the customer experience63%
34%
21%
14%
26%
43%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
We have adapted our processes for the digital world in the following areas 61%
31%
21%
13%
25%
42%
2%
64%
48%
29%
21%
17%
45%
0%0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
Overall Average Financial Services
14%
3%
14%
33%
36%
5%7%
5%
29%
55%
0%
10%
20%
30%
40%
50%
60%
It is not important (1) 2 Not sure (3) 4 Very Important for the future (5)
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
96
#d14fintech
Importance vs. implementation of big data (part 2)
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We use digital innovations to improve the customer experience63%
34%
21%
14%
26%
43%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
We have adapted our processes for the digital world in the following areas 61%
31%
21%
13%
25%
42%
2%
64%
48%
29%
21%
17%
45%
0%0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
Overall Average Financial Services
38%
34%
17%
8%
3%
29%
40%
26%
5%
0%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Not used (1) 2 Currently used by some areas ofthe business (3)
4 Currently used throughout thebusiness (5)
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
97
#d14fintech
Importance vs. implementation of mobile (part 1)
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We use digital innovations to improve the customer experience63%
34%
21%
14%
26%
43%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
We have adapted our processes for the digital world in the following areas 61%
31%
21%
13%
25%
42%
2%
64%
48%
29%
21%
17%
45%
0%0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
Overall Average Financial Services
11%
2%
9%
27%
50%
7%
2%
10%
29%
52%
0%
10%
20%
30%
40%
50%
60%
It is not important (1) 2 Not sure (3) 4 Very Important for the future (5)
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
98
#d14fintech
Importance vs. implementation of mobile (part 2)
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
We have restructured our business/institution in line with our digital ambition81%
45%
31%
12%
51%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Customers Competitors Employees Shareholders Market opportunities Regulation
We use digital innovations to improve the customer experience63%
34%
21%
14%
26%
43%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
We have adapted our processes for the digital world in the following areas 61%
31%
21%
13%
25%
42%
2%
64%
48%
29%
21%
17%
45%
0%0%
10%
20%
30%
40%
50%
60%
70%
Marketing Sales/conversion Product/service in life Product supply chain New productdevelopment
Customer service Other
Overall Average Financial Services
24%
26%25%
17%
8%
12%
38%
33%
14%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Not used (1) 2 Currently used by some areas ofthe business (3)
4 Currently used throughout thebusiness (5)
Overall Average Financial Services
Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
99
#d14fintech
This won’t be easy, but nothing that matters is easy…
13%
24%
29%
23%
11%
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
Disagree Slightly Disagree Neutral Slightly Agree Agree
Organisation culture/structureLack of Digital Expertise
Cost and InvestmentLegacy/Technological Constraints
Limitations due to strategy
Leadership buy-in
Governance
Lack of agility
Prioritisation/focus/time
Established market dynamics
“Inertia in the parent organisation”
“Understanding and buy in from SMT”“Lack of digital expertise to drive the investment”
“Getting the leadership team to believe and act”
“Getting agreement on the best way forward”
Barometer data © PA Knowledge Limited 2014
100
#d14fintech
The new world’s exciting, it’s changing, transform and focus on the customer
Digital
Culture
DigitalEngagement
DigitalEnablers
Look at this holistically, digital on the outside,
digital on the inside
The world’s changing,create a business for
tomorrow’s world
Focus on the
customer
© PA Knowledge Limited 2014
101
Thank you for listening
#d14fintech @digiconx @PA_Consulting