EXPOSED - Deloitte US · learned that some companies have found themselves compelled to reduce...

EXPOSED Post-digital Innovation in Financial Services

What IS rEally haPPEnIng

at rEtaIl bankS anD InSurErS

In bElgIum?

1 Preface

2 Intro: Post-dIgItal InnovatIon In fInancIal servIces

4 thE PIE Shrunk, nOt thE SlIcE

6 My take: stéPhane nachtergaele, assuralIa

8 POSt-DIgItal FrOntrunnErS PErFOrm bEttEr

9 My take: olIvIer debehogne, keytrade bank

10 mObIlE DrIvES DIgItal InnOvatIOn

11 My take: toM kestens, hello bank

12 FOcuS On thE PrIzE, nOt thE hurDlES

13 My take: MIchel verMaerke, febelfIn

14 harnESSIng thE POWEr OF cOmbInatIOnS

15 My take: andré vanden caMP, axa

16 thE valuE-OrIEntED cIO PrEmIum

18 My take: davId tornel, ethIas

20 WarnIng: thE rISk OF mISjuDgIng rElatIvE PrOgrESS

23 conclusIon

25 aPPendIx 1: saMPle descrIPtIon

26 aPPendIx 2: questIonnaIre

tablE OF cOntEntSPagE

In partnership with:

Facilitated by:

CEDRIC DELEUZE

2 / © vlerick business school

the further popularisation of business-driven technologies – such as big data, social, mobile, cloud, and cyber – is putting pressure on companies to fundamentally rethink operating models, business models and executive roles, regardless of industry or geographical location. In its ‘tech trends 2013’ report*, deloitte addresses these evolutions under the umbrella of ‘post-digital innovation’. according to this vision, technology-centric forces driving business innovation will be a major strategic theme for the coming years.

such a vision of digital business innovation appears intriguing and promising. but it leaves a lot of questions open for individual companies in a specific sector such as the financial services industry (fsI). considering the importance of fsI to the belgian economy, deloitte belgium and vlerick business school decided to join hands to investigate what post-digital business innovation actually means for financial services providers (see Box 1 for our working definition of post-digital innovation).

* www.deloitte.com/us/techtrends2013

bOX 1: POSt-DIgItal InnOvatIOn DEFInED Post-digital business innovation includes all investments for significant business transformations with the following characteristics:

a thE InItIatIvE IS aImED at OnE Or mOrE OF thE FOllOWIng tyPES OF InnOvatIOn:

• structural innovations to the production and delivery of existing products/services (e.g. lean and work flow automation)• the introduction of new products/services (e.g. atM finders and location-based insurance services)• the orchestration of new value-based eco-systems with 3rd parties (e.g. e-wallets, and peer-to-peer banking and insurance)• structural innovations to management and support systems and processes (e.g. e-hrM, analytical marketing and paperless working)

b thE InItIatIvE InvOlvES thE DEPlOymEnt OF OnE Or mOrE OF thE FOllOWIng DIgItal tEchnOlOgIES:

• Big data: capturing and analysing large and complex data sets (e.g. to identify commercial opportunities, to monitor social media, and to detect fraud)• Social: using social technologies to reach consumers and connect with employees and partners (e.g. advanced social media campaign/brand management systems and internal micro-blogging)• Mobile: providing mobile services to customers, employees and partners (e.g. mobile apps and location-based services)• Cloud: providing and managing cloud-based services for both core and non-core activities (e.g. cloud-based document services, or e-mail services, or crM)• Cyber: the advanced use of electronic and cyber identification capabilities (e.g. the advanced use of e-Id and e-wallets)

IntrO: POSt-DIgItal InnOvatIOn In FInancIal SErvIcESWhat IS rEally haPPEnIng at rEtaIl bankS anD InSurErS In bElgIum?

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© vlerick business school / 3

With the additional support of belgian sector federations febelfin and assuralia, we have investigated the nature and implications of post-digital innovation as it takes shape in companies that provide banking and/or insurance services to retail customers in belgium.

for this report, we collected insights by combining two methods:

• first, in an exploratory phase, we interviewed several cIos and business leaders of leading financial institutions as well as non-financial companies in belgium.

• second, on the basis of these interviews, we built and launched a web-survey aimed at the highest ranked executives responsible for Ict in banks and insurers active on the belgian retail market.

out of 81 invitations sent out, we received 44 responses, which covered about 85% of the belgian insurance and banking market in terms of banking assets and insurance premiums paid annually. therefore, the results we present in this report are very representative of the belgian financial services market (see appendices 1 and 2 for a description of the data-set and a copy of the web-survey).

WE havE OrganISED Our FInDIngS arOunD 7 thEmES:1 the pie shrunk, not the slice

2 Post-digital frontrunners perform better

3 Mobile drives digital innovation

4 focus on the prize, not the hurdles

5 harnessing the power of combinations

6 the value-oriented cIo premium

7 Warning: the risk of misjudging relative progress

this report primarily looks at post-digital innovation from the cIo’s point of view. ‘My take’ sections add the perspectives of several business leaders with regards to the content developed in the report. business leaders of all kinds should find this report interesting and informative.

Vlerick Business School, Brussels Campus


It has already been 5 years since the outbreak of the global financial and economic crisis sent shockwaves around the world, with major consequences for the financial sector. However, the repercussions of that storm have not yet been completely mitigated. Two strongly interconnected themes still dominate the executive agendas of companies providing financial services to retail customers.

first, many financial institutions still need to find ways to recover severe asset depreciations and direct income losses. second, the crisis, the bailouts, and the scandals (e.g. lIbor*) in the aftermath of the crisis all but obliterated consumers’ trust in financial institutions. finding ways of regaining that trust has become, and will remain, one of the key challenges in the foreseeable future.

We polled cIos of financial institutions on the belgian retail market about the impact of these crisis conditions on their companies’ attention to innovation in the Ict budget. from the results, we learned that some companies have found themselves compelled to reduce spending on innovation (see Figure 1). however, for a large majority, it seems that the percentage of spending has remained at least at the same level as before the crisis.

these results are confirmed by the observation that the share of their Ict budget designated for innovation has remained between 10% and 20%

– which is comparable to pre-crisis levels. as one of the interviewed cIos put it: “the crisis forced us to reduce the size of the pie – i.e. our entire Ict investment budget – but we refused to reduce the relative slice of innovation investments.”

for 40% of our respondents, the crisis actually invoked an upward trend in the relative share of spending on innovation.

Moreover, cIos in fsI remain optimistic about innovation spending levels in the coming 5 years: nearly all agree that the share of innovation in the Ict budget will be on the rise during this period.

We also surveyed which kinds of innovations are high on the agenda (see Figure 2). for the most part, financial institutions are looking at rather internally-focused and less radical types of innovation.

key examples are innovating support and management systems for better risk management or marketing analytics (84%), or streamlining the operational side of existing services (e.g. straight-through-processing) (80%).

More radical innovations – such as introducing new services to the market or pursuing eco-system innovations – are lower on the agenda in the financial services industry.

eco-system innovations entail radical shifts in how financial services are purchased and enjoyed by consumers (e.g. through disintermediation). for example, a number of interviewed cIos mentioned

thE PIE Shrunk, nOt thE SlIcE

Figure 1: What is the evolution of the relative share of innovation in the total ICT budget?

Figure 2: What types of innovation are banks and insurers investing in?

80%67%

45%

support & Management system Innovations

operational Innovations

new services

eco-system Innovations

84%

24%

40%

93%

a our share of investments in innovation was significantly reduced when the crisis broke out

b our share of investments in innovation has been growing since the crisis

c our share of investments in innovation will be growing in the coming 5 years

1

* LIBOR = the London Interbank Offered Rate. The LIBOR reflects the average interest rate charged to banks if they were to borrow money from another bank. In June 2012, large scale fraudulous manipulations of the LIBOR by leading banks such as Barclays Bank were uncovered, i.e. the LIBOR-scandal.

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the entry of third parties into specific financial services niches in which they are currently not even recognised as market players, let alone market makers (e.g. google Wallet).

however, a subtle distinction should be made between banks and insurers: while most banks are investing in eco-system innovations, insurers are currently much less keen to do so.

the results presented in Figure 3 show that nearly 2 out of 3 banks are investing in innovations to develop or adapt to new eco-systems for providing financial services to retail customers. only 1 in 4 insurers are currently doing the same. this difference between the two branches in fsI raises the question whether the insurance business is inherently less likely to undergo such radical changes. or, are insurers perhaps setting themselves up for an unpleasant surprise in the coming years, as new market entrants might emerge with radically different business models: e.g. social insurance such as www.friendsurance.com?

Figure 3: Which FSI companies are investing in eco-system innovation?

Banks Insurers

60%yES

24%yES40%

nO76%nO


Assuralia is the sector organisation representing life and non-life insurance companies active on the Belgian market. We were very eager to facilitate this research project, because it is directly aligned with

our mission to regularly provide our members with topical and objective information on current trends in the sector. The results provide revealing insights into the state of post-digital innovation in our sector.

It is conventional wisdom that insurance companies are often wary of adopting new technologies or launching bold new commercial initiatives. this is both a perception and a cultural phenomenon. often, insurance companies will hold back in developing new products or services until the sector has a clear view on the legal and regulatory implications. nonetheless, most insurance companies frequently express their desire to work more flexibly by applying new technologies such as social, mobile, and cyber. and quite often, we see that many insurers will actually move swiftly when a first mover has launched his initiatives.

thrEE hurDlES tO POSt-DIgItal InnOvatIOnIn addition to culture, we see three other main explanations for why the insurance sector appears somewhat more conservative than its banking counterparts (although, of course, this is in no way a contest between the two sectors). first, many insurance companies have only indirect contacts with their customers. Most of them work via insurance brokers who sell different products from different insurers to their clients. so, it’s difficult to convince customers to adopt digital solutions from one particular insurance company. this is something we experienced through consumers’ only tepid adoption of e-billing solutions, which have existed for many years.

second, the legal framework for insurance in belgium is very keen to protect consumer interests – which is, of course, a good thing. It allows consumers to acquire insurance services with a good under-standing of the various products and providers. however, it makes direct sales via digital platforms difficult to arrange, except for a few simple niche products (such as last-minute travel insurance). Moreover, in the past five years, the regulatory pressure on insurance companies has steadily increased, forcing insurance companies to carefully consider and invest in solutions for issues such as recovery plans, archiving requirements, privacy, and so on.

finally, the survey only captures innovation investments made by individual companies. In fact, for the insurance market, a lot still needs to be done at the level of information infrastructure. for instance, through cooperations at sector level and cooperative insurance information network providers, we are continuously developing sector-wide protocols for standard paperless messaging between insurance companies and other parties in the insurance eco-system. for example, the telebib II insurance vocabulary initiative is a major step forward in simplifying the massive amount of communication that follows an accident between two people insured by different companies through different brokers. next to these sector-wide efforts, the survey does not cover innovations in the provision of digital platforms to the thousands of insurance brokers active in belgium. these investments do not appear on the budgets of individual insurance companies, because this is the terrain of third-party insurance brokerage software providers.

StéPhanE nachtErgaElEPrODuctIvIty aDvISOr,aSSuralIa

My take


allEvIatIng, anD lOOkIng bEyOnD, thE hurDlESIn conclusion, insurance companies face a number of significant hurdles to post-digital innovation which are very particular to the sector. assuralia is proactively working with its members, the regulators and the government to clarify and alleviate more and more of the aforementioned hurdles. considering the insurance business’ complex eco-system, this naturally takes time. even so, assuralia is pleased to see that a number of insurance companies are already willing to look beyond these hurdles – some are trying out new digital platforms to reach customers with value-added services. although such initiatives are often rather limited in scope, this early experience might prove invaluable in the future.


In addition to gauging the current level of investment in innovation by banks and insurers, we were also eager to test whether post-digital innovation is becoming a key success factor for the relative financial performance and recovery of banks and insurers.

to this end, we first calculated the degree of post-digital innovation leadership for each company. this indicator was based on a combined measure of the company’s current level of investment in the following 5 technologies: big data, social, mobile, cloud, and cyber. our respondents were asked to assess how far their company was in deploying each of these technologies.

based on the spread of answers we received from the survey and the pre-survey interviews, we determined a dividing line between digital leaders and digital laggards. a company that, on average, had decided at least to invest in deploying pilots was considered to be digitally leading (41%). those companies that, on average, showed they were only researching and investigating these technologies (or had no interest in them at all) were considered to be digitally lagging (59%).

In a next step, we related these scores to the companies’ level of financial performance versus their competitors’ performance in the past fiscal year as reported by the cIo. Figure 4 shows the outcome of this operation: those companies that were further

ahead in rolling out investment plans for post-digital technologies were close to 3 times less likely to be lagging in financial performance vis-à-vis their competitors.

this result suggests a financial premium for banks and insurers who are further along in adopting technologies such as big data, social, mobile, cloud and cyber. although it may still be too early for many of these technologies to realise their full potential in business value, we can already see that banks and insurers who are less advanced in their adoption of these technologies are running the risk of falling behind their competitors.

POSt-DIgItal FrOntrunnErS PErFOrm bEttEr

Vlerick Business School, Ghent Campus

Figure 4: Are digital leaders also financial leaders?

Digital leaders Digital laggards

89% at Par

Or lEaDIng

73% at Par

Or lEaDIng

11% laggIng

27% laggIng

2


As the leader in online trading in Belgium, Keytrade Bank has always been at the forefront of digital innovation in financial services. Keytrade started in 1998 with the launch of VMS-Keytrade, Belgium’s

first online investment site. Immediately, the enterprise experienced success and serious growth. In 2002, VMS-Keytrade became Keytrade Bank, acquiring its banking status by taking over Realbank.

a WhOlE nEW cuStOmEr EXPErIEncEIndeed, the mobile revolution is driving the momentum for most of our post-digital innovation investments. In november 2012, we launched our keytrade bank application for iPad – the first banking app in belgium to combine functionalities for banking, investment management and trading. since its launch, the application has been widely adopted and has a 4+ rating in the itunes store. Moreover, our app was nominated for an innovation award earlier this year.

We didn’t want to merely extend traditional e-banking capabilities to mobile devices (we had already launched our mobile website for that in 2008). rather, our app provides a whole new customer experience by leveraging the full range of iPad functionalities. for example, our customers can personalise their accounts with their own pictures and execute money wires to internal or external accounts with a simple gesture. for investment management purposes, clients can follow markets and rediscover the performance of their portfolio using interactive charts and heat maps.

PrOvIDIng FOr cOnSumErS’ raPIDly changIng nEEDSIn addition to mobile, we are also actively developing innovative customer experiences based on analytical, social, cloud and cyber identity technologies. however, for most of them we are still wary of adopting innovations just for the sake of innovation. for example, many banks are far more present than we are on twitter and facebook. but we’re not

concerned with how many fans or likes we have if this doesn’t enhance the customer experience. Instead of using these platforms for social-based marketing, we count on our own network of customers. We are now on the 10th run of our ‘Members get Members’ campaign – which is still proving to be highly effective: attracting 4000 new members in only 6 weeks.

nevertheless, I do believe strongly in a first-mover advantage for post-digital technologies. however, this advantage is not just technological in nature, because, in fact, once an app has been launched, it’s open for every competitor to see and copy. the experience of building these apps enabled us to generate a great deal of knowledge and human capital.

new players are constantly knocking at the gates and our known competitors are also launching new customer experiences every day. More than ever, success in retail financial services will depend on who is the quickest to understand, and provide for, consumers’ rapidly changing needs. for example, our learning experience with the iPad app in belgium is now helping us roll out the platform to our branches in switzerland and luxemburg. We also launched an iPhone version in June 2013, and we have recently launched an android version.

agIlE mEthODS FOr SOFtWarE DEvElOPmEntWe firmly agree with the report’s conclusions that post-digital leadership, and the premium which it might bring with it, is strongly related to value-oriented leadership by our cIo and close alignment between business and Ict. at keytrade bank, we facilitated this by applying agile methods to software development for our mobile applications. by means of collocating commercial, legal and Ict people, weekly demo sprints and other agile rituals, we were able to closely align the different stakeholders. our executive committee was also closely involved – spending 20 minutes each week to see the progress based on these weekly sprints and making suggestions. this experience will be a firm foundation to guarantee our future successes in a fast and flexible approach to post-digital innovation.

OlIvIEr DEbEhOgnESalES anD markEtIng DIrEctOr,kEytraDE bank

My take


Mobile connectivity, and associated technologies such as apps and social platforms, have rapidly become commonplace in people’s day-to-day lives. As these technologies become more and more interwoven with our daily lives, expectations of constant connectivity are easily finding their way into the enterprise. On the one hand, as employees we expect to be able to work on the road or from home with any device without losing access to documents, applications, colleagues or communities-of-practice. On the other hand, clever business leaders are dreaming of their businesses capturing massive amounts of consumer behaviour patterns for marketing or risk management purposes.

our results show that companies in fsI have understood the impact of consumers’ expectations to be able to decide on, purchase, track and enjoy services anywhere at any time and from any device. Figure 5 shows that retail banks in belgium are most advanced in their adoption of mobile technologies compared to the other technologies. In general, insurers are currently lagging behind their banking colleagues in their adoption of different technologies. nonetheless, mobile is also still relatively high on their agendas.

If we then look at the importance the companies give to the same technologies in 3-5 years’ time, we get almost an inverted image. Figure 6 shows that, while insurers may be lagging in current implementations today, they still expect that these technologies will figure prominently on their investment agendas within 3-5 years. but whether this is a realistic ambition remains to be seen. considering their current levels of deployment of these technologies, this would require a significant catch-up effort.

one final note: while ubiquitous mobile connectivity of consumers and employees seems to be at the centre of the fsI’s attention, a post-digital view on digital innovation means that mobile cannot be seen in isolation from the other 4 technologies. to a large extent, the different technologies are mutually reinforcing – that is, a push towards mobile services will also push the envelope when it comes to the other 4 technologies. for example, some technologies (cloud and cyber) will enable mobile platforms, while other technologies (big data and social) benefit from the increased critical mass derived from nearly permanent mobile connectivity.

mObIlE DrIvES DIgItal InnOvatIOn

Figure 5: Are banks and insurers investing in different kinds of digital technologies?

Figure 6: Do banks and insurers believe that post-digital technologies will feature prominently in their future investment portfolios?

24%

48%

37%

59%

bankS

bankS

InSurErS

InSurErSbig data

big data

56%

58%

32%

80%

social technology

social technology

80%

92%

42%

82%

Mobile

Mobile

44%

58%

44%

69%

cloud

cloud

44%

67%

26%

61%

cyber

cyber

3


Launched on 16 May 2013, Hello bank! is the first exclusively mobile bank in Belgium. By ‘exclusively mobile’, we mean that the offering to our customers is not available via a network of physical offices or via a

traditional website on PC/Laptop. Instead, Hello bank! aims at offering a rich banking experience that is accessible through any mobile device – phone or tablet – free of charge.

antIcIPatIng thE mIllEnnIal gEnEratIOnalthough hello! is part of bnP Paribas fortis (bnPPf), we decided to develop and launch hello bank! under a distinct brand with its own commercial strategy and leadership. there were two main reasons for that decision.

first of all, 2012 was a tipping point with regard to the adoption of mobile devices. We are no longer talking about the 10% of early adopters — market reports show that, by the end of 2013, over 50% of consumers will own and use a mobile device in their daily life. as a consequence, consumer expectations are changing radically. especially when we consider the upcoming generation of millennials who have grown up with the availability of internet and mobile connectivity.

our target customers want services and products to be accessible to them at any time and from anywhere, as part of their always-on, on-the-go lifestyle. even to the point that, one day perhaps, they will expect their mobile device to predict what they might want, based on surfing behaviour, agenda items, and location (e.g. www.google.com/now). We are the first retail bank in belgium to have an offer specifically geared to them.

second, the financial crisis has shaken many consumers’ trust in banking institutions. although the crisis struck five years ago now, many consumers are still more confident having full control over their own finances. our target group wants a clear set of straightforward banking services, without the hassle or cost of going to a local branch and speaking with an advisor. accordingly, hello bank! has no commercial offices.

ahEaD OF thE markEtbut having no physical distribution network is both an advantage and a risk. on the plus side, it means a significant cost reduction compared to traditional banking models. however, it also means that every service we offer via our app has to work flawlessly without any extra human interaction. We know we’re ahead of the market by attracting consumers with such a radical approach, and that is exactly where we aim to be.

We had set ourselves a target of only 12 months to develop and launch hello bank! in belgium. clearly, this was going to be a challenge. thanks to the strong backing from top management — at both local and group level — we were able to count on the support of over 500 people from across bnPPf!

changIng FrOm grEEn tO bluElooking specifically to the Ict side, the development and launch of hello bank! required a complete overhaul of skills. hello! would not be about extending our existing services to mobile platforms. Instead, we were changing ‘from green to blue’: creating a completely new service offering, based exclusively on technologies and processes that were going to be very different from traditional retail banking.

so, considering the tight schedule as well, we could not be satisfied with Ict simply executing what business demanded. all our people needed to be very skilled in balancing the desirability and feasibility of features for the first release. Moreover, in this business model, it doesn’t stop with the launch of the bank. hello bank! needs to be updated frequently with new features and improvements. for example, in september we have launched a new credit card offering, and we will have new features to be launched in december.

It should be clear, therefore, that I fully agree with the conclusions in the report about the importance of having a strong, value-oriented Ict leadership and an excellent business-Ict relationship. banks who aren’t able to count on such an open-minded, creative yet pragmatic, Ict leadership and staff will definitely struggle. for hello bank!, that has been indispensable to making this kind of radical post-digital innovation happen.

tOm kEStEnShEaD, hEllO bank! bElgIum

My take


We stated earlier that about 60% of Belgian retail banks and insurers are lagging in the deployment of post-digital technologies (see Figure 4). So, a next step is to see what kinds of barriers might be holding them back from progressing. We looked at barriers both internal and external to the organisation. Figure 7 depicts the top 3 internal and external barriers indicated by our respondents. Each top 3 represents around 60% of all the answers.

first, legal issues need to be dealt with before launching digital innovations. an indispensable condition is to cover (at least) all legal requirements concerning issues of privacy, fraud and protection against theft of financial assets or identity.

second, our results show that both external security (e.g. hacking) and internal security (e.g. leaking of sensitive information) are major concerns. the importance given to internal security confirms that security cannot be reduced to a mere technical matter for the Ict department. and to protect data and systems from external threats, it is still good practice to invest in the most advanced technical security available. still, security incidents often originate from a combination of technical and human breaches of security.

so, security becomes more a matter of being able to train and trust your own employees, partners and customers. banks and insurers will have to be confident that all stakeholders understand the personal implications of hyper-connectivity and on-demand access to applications and data.

this requires a high degree of digital citizenship. In europe, febelfin is taking the lead in creating consumer awareness about personal security measures with regard to issues such as phishing and identity theft (see My Take by CEO Michel Vermaerke). but more and more employees have to deal with mobile connectivity of information systems and platforms inside the banks and insurers as well. this means that employees must be made highly sensitive to issues such as risk, fraud, and privacy in their day-to-day actions.

last, but most definitely not least, banks and insurers in belgium are facing difficulty in drawing up the business case for post-digital innovation. Many of them are not yet clear about how digital innovation can generate enough business value to warrant a position at the top of their investment agenda. one reason for this may be the flood of non-discretionary priorities that banks and insurers are being expected to deal with, especially in relation to post-crisis regulation (18%). another reason is that some companies (20%) feel that there is simply not enough consumer demand for digital services. It can be debated whether or not this is actually the case – such a position more likely indicates a conservative view of consumer trends than an actual lack of consumer demand for mobile services.

as a final note on the hurdles for digital innovation, Figure 8 shows that digital leaders feel much less restricted by any issues that might stand between them and the achievement of their digital innovation ambitions. digital leaders seem more likely to focus on the prize than on the hurdles. especially when it comes to internal barriers, they are more confident in declaring that there are no significant barriers that would keep them from investing successfully in post-digital technologies.

FOcuS On thE PrIzE, nOt thE hurDlES

Figure 7: What kinds of internal and external barriers could stifle value realization from digital technologies?

IntErnal barrIErS EXtErnal barrIErS

18% Non-discre-tionary priorities

22% External security

17%Value proposition

20% Customer demand

25% Internal security

23% Legal

40% Other

35% Other

Figure 8: Do digital leaders and laggards feel hindered by internal and external barriers?

43%

18%

no showstopping internal barriers

no showstopping internal barriers

36%

20%

no showstopping external barriers

no showstopping external barriers

DIgItal lEaDErS

DIgItal laggarDS

4


Febelfin is the sector organisation for banks operating in Belgium. One of our spearheads for the coming years is creating awareness about the implications of nascent digital innovations in the

field of banking. Although it’s not Febelfin’s role to interfere with the development of individual banks’ competitive strategies, it is part of our duty to inform our members about common aspects of the digital revolution that will impact all of them. To this end, Febelfin has been very active in knowledge collection and exchange on various digital innovation topics – for example, through research projects such as www.bankofthefuture.biz. When Vlerick Business School and Deloitte Belgium came to us with this research project, we were very supportive, and the research makes some very interesting points.

InvEStIng In EcO-SyStEm InnOvatIOnSWe were not surprised to see that there are differences between post-digital leaders and laggards, which seems to suggest a competitive advantage for the leaders. even before the outbreak of the liquidity and eurozone crises of 2008 and 2010, respectively, it was becoming clear that consumer expectations towards banking were shifting towards 24/7 flexible and mobile banking models. although the crisis has forced banks to look at innovations in support of increasing internal efficiencies, we were happy to see that banks are also still investing in new services and potential eco-system innovations. by investing and innovating, the banking sector will continue to play its financing role at the service of individuals, economy and society.

SEEIng OPPOrtunItIES anD buSInESS valuEapart from innovations, we see that a lot of Ict spending is going to mandatory projects related to initiatives such as the ‘single european Payment area’ (sePa) and the ‘Markets in financial Instruments directive’ (MifId). however, some organisations are able to see these initiatives as opportunities, not just problems. so, as the sector organisation, we strongly support the idea of a bank’s cIo or Ict director as a business value-oriented leader. a value-oriented cIo will be able to see business value and new customer needs even in mandatory projects, where others mainly see costs.

only by making the effort to align business, legal and Ict knowledge and needs, can banks regard the changing banking landscape as opportunities for customer-oriented digital business innovations.

cOmbatIng cybEr crImEfinally, security has truly become a key issue. banks in belgium are doing their very best to maintain the highest possible standards when it comes to protecting their customers’ assets and data by technological means. they do so in full cooperation with the authorities. thanks to these efforts, digital banking in our country is highly trusted.

however, as the banks’ own barriers have become more and more impenetrable to cyber criminals, consumers themselves have become the primary targets. by means of tactics such as phishing, consumers are tricked into disclosing personal information regarding their bank accounts. In addition to that, consumers need to become aware of the vast amount of personal information that is readily available to individuals with malicious intent via twitter, facebook and other social networks. that’s why febelfin has taken the lead in europe in raising awareness about this issue through award-winning campaigns such as ‘dave the Mind-reader’ (over 10 million views on youtube), ‘see how easily freaks can take over your life’ (half a million views) and www.safeinternetbanking.be.

mIchEl vErmaErkEcEO, FEbElFIn

My take


A post-digital vision for business innovation fully embraces the disruptive power of the 5 technologies included in our study: big data, social, mobile, cloud, and cyber. What is more, we have learned from pre-survey interviews and round-table discussions that most of the value to be realised from these technologies will come from innovative ways of combining them. For example, a bank might want to use big data technologies to extract and uncover consumer patterns derived from massive amounts of usage data from mobile and social services.

thus, the hypothesis is that it will be counter-productive for companies to discuss different post-digital technologies too much in isolation from each other. We checked this assumption with our survey respondents. a first observation was that about two thirds of cIos agreed with the statement that most of the value from post-digital technologies will come from combining them. there was no significant difference between digital leaders and laggards on this matter.

however, a second observation did show a very significant difference between digital leaders and laggards. We investigated whether cIos who support the idea of combining post-digital technologies believe that their business partners are on the same page about this. our data suggest that cIos of digital leaders are nearly twice as likely to be aligned with their business counterparts on this issue (see Figure 9). digital laggards were more under the impression that their business partners focus too much on individual technologies. therefore, it seems that alignment between Ict and business on this issue might prove to be an important factor in becoming a digital innovation leader.

harnESSIng thE POWEr OF cOmbInatIOnS

Figure 9: Are ICT departments aligned with their business partners on the need for combining post-digital technologies?

DIgItal lEaDErS

15% nO

85% yES

DIgItal laggarDS

53% nO

47% yES

5

Vlerick Business School, Leuven Campus


The AXA Group in Belgium comprises the AXA Belgium insurance division and the Belgian banking division within AXA Bank Europe. We are proud to serve over 3 million customers in Belgium through 920

independent bank agents and more than 5,000 brokers representing AXA products. As Chief Operating Officer and head of ICT for both banking and insurance in Belgium, I am regularly involved in digital business innovation in each activity.

mOrE DIgItal bankIng than InSurancEI largely agree with the observation that banking is more digitally advanced than the insurance business. there are a number of reasons for this. first of all, the current business model for insurance is based primarily on a brokerage model. When we combine that with a frequency of service consumption which is lower than that in banking, we find that we have fewer direct interactions with our customers for insurance purposes than for banking. so, it’s not surprising that post-digital technologies – which are very much oriented towards, or based on, direct and frequent consumer contacts – are much less often adopted by insurers than by banks.

second, for several decades already, the banking sector has been making a lot of effort to develop international standard protocols for financial transactions (cf. sWIft). this has provided a solid piece of infrastructure on which many banks are able to build digital innovation towards their customers. for insurance, we are taking part in such a process via assuralia and our participation in the insurance network provider Portima. however, there is still a lot of ground to cover.

Out-OF-thE-bOX thInkInghaving said that, our banking division has also had to deal with its own share of hurdles for digital innovation. for example, the increased regulatory fall-out from the financial crisis (e.g. basel III) has been channelling Ict investment resources towards non-discretionary investments. as a consequence, all proposals for discretionary spending are closely vetted for the profitability and clarity of their business case. this makes it harder to keep digital initiatives at the top of the agenda – and so business and Ict leaders need to think out-of-the-box, innovatively yet pragmatically. looking at our progress in digital innovation in banking, it appears that we are moving in the right direction. the success of our mobile banking campaign in april 2013 (new mobile application and product offering) is a good illustration of that evolving mindset.

While history and business specificities help explain current differences between banks and insurers, they cannot justify continued digital inertia in the insurance market. digital innovation in insurance is possible and will actually be inevitable. It will entail significant changes in the way we conduct our business, and our main challenge is (and will be) to launch our brokers, agents and business partners on that journey towards higher customer centricity. We’re making progress on that front: we continue to invest in areas such as customer relationship management, master data management and portal/mobile solutions.

OPEn-mInDEDnESS nEEDEDthis brings me to a final remark. I was pleased to see in the results a confirmation that those cIos who are able to demonstrate a value-oriented leadership style are better positioned to grasp the momentum towards digital innovation. such cIos can give their executive team a decisive push towards investing in digital innovation. however, if such a cIo does not have executive business peers who are open-minded and able to think beyond their current business models, he or she will not be able to make that difference, neither in banking, nor in insurance.

anDré vanDEn camPchIEF OPEratIng OFFIcEr, aXa bElgIum InSurancE anD bank

My take


The past two decades have seen an intense discussion on the future of the CIO’s role. The debate involves two opposing views on the evolution of this role: on the one hand, there is the vision of the CIO as a value-oriented strategic partner, a (co-)leader of the organisation’s digital innovation, and a valued member of the executive committee; on the opposite end, there is the notion that the continuing fusion of business and ICT issues means that other business functions are draining the clout concerning ICT-enabled business innovation away from the CIO. In such a model, business leaders keep post-digital innovation largely within their own functional departments or business lines and out of the CIO’s sight. In the latter case, the highest ranked enterprise-wide executive responsible for ICT will be more of an operational technology manager reporting to the CFO or COO.

the results of our survey seem to support the case for a value-oriented cIo role. there appears to be a premium for companies whose cIos emphasise business-value-oriented leadership in their approach to post-digital business innovation. We labelled cIos as being either more or less value-oriented

depending on the type of leadership role they indicated to be most important when it comes to post-digital business innovation. the cIos who emphasised being a business visionary or educating the business on realising business value were considered to be more value-oriented. cIos who emphasised the planning of strategy execution or leading by example were labelled as less value-oriented.

Figure 10 shows the extent of this premium as measured by the degree of digital leadership. digital leaders are about 3 times more likely to have a cIo with a strong value orientation than digital laggards. there is also a financial premium from having a value-oriented cIo: financial leaders are about 3 times more likely to have a more value-oriented cIo when it comes to digital business innovation.

these results may incite cIos to question for themselves whether they are focused enough on realising business value with Ict. for those cIos who are already very value-oriented, this message may be seen as a confirmation of the added value of their efforts.

thE valuE-OrIEntED cIO PrEmIum

Figure 10: Are CIOs at financial and digital leaders more value-oriented than their peers at the laggards?

11%Less value- oriented CIO


31%Value- oriented CIO


89%Value-oriented CIO




DIgItal lEaDErS

FInancIal lEaDErS

DIgItal laggarDS

FInancIal laggarDS

6

Ethias is the fourth largest insurance company in Belgium, serving over one million customers. Ever since our founding in 1919, the company has cherished a mutualistic, socially responsible and customer-

oriented philosophy. In our view, the mission of an insurance company is to instil our customers with a sense of reassurance in any way we can. This customer-centric philosophy is the driving force in our approach to post-digital innovation as well.

multI-channEl aPPrOachI’m not surprised to read in the report that most insurance companies are lagging behind in digital innovation investments. Many companies have difficulty seeing the added value of investing in digital innovation, because they think digital is about doing exactly the same thing as before, but without the paper. of course, this isn’t enough of a business case for post-digital innovation. We see digital innovation as part of our multi-channel approach, in which we look at which of our customers’ needs can be addressed optimally via different channels: i.e. the internet, mobile devices, tele-centres, and a limited number of brick and mortar offices.

for example, from consumer research, we learned that consumers that want to buy a renter’s insurance policy as part of their contractual obligations want a very simple product without much hassle. so, we developed a product and process by which – on the basis of only four simple questions – prospects can get an online offer for a policy that they can even underwrite directly on the web. to be clear, though, it is not our intention to shift all products to an online model. If anything, we use the room created by such initiatives to upgrade our personal contact time with our customers in the ethias offices around the country – where our people can now focus on giving expert advice regarding more particular insurance questions.

DIgItal hElPS EnrIch rElatIOnShIPS It is our opinion that insurers could do much more to simplify their products and processes for their customers. In fact, consumers quite often feel anxious about dealing with insurance companies, because they fear they’ll be presented with complex products with all kinds of small print clauses. (this is actually quite ironic when you’re in the business of reassuring people!) this is why we believe strongly in having direct contact with our customers. because we do not work via a brokerage model, we can develop closer relationships with our customers, which we can enrich with mobile applications and other initiatives to simplify their life.

for example, we launched our auto 24/7 app six months ago. again based on consumer research, we identified a number of specific areas in which we can support our customers in the case of a car accident. the app provides our customers with all the tools for compiling and submitting a damage claim to us quickly and easily. It has geo-location services to pinpoint the address or to locate the nearest garage. and it also allows pictures to be taken and included in the claim. of course, they will still need to fill in the paper version when the opposing side is not an ethias client. but now we can start helping our customers even before we receive these forms.

We also like to think outside the box of specific products. for example, our ethias safest route application is not directly connected to a particular insurance service – instead, the app fits in our philosophy of wanting to provide our customers with ease-of-mind. the app is a gPs tool that shows users the safest route from a to b by identifying locations where there have been a higher frequency of accidents.

DavID tOrnElDIrEctOr OF markEtIng anD PrODuct managEmEnt, EthIaS InSurancE

My take


thE DIgItal mInDSEtlooking at the results of the survey, I also fully agree with how a cIo can make a big difference. our Ict director, stéphane rassart, is really the kind of business value-driven Ict leader needed to make digital innovation become a normal part of our mindset. to give some examples, he and his team regularly organise innovation forum sessions for the business, which are very well attended and always spark new ideas on how technology can be used to the benefit of our customers. but it also works the other way around. for instance, stéphane makes it a point for him and his people to participate in business workshops on strategy and customer orientation. I am convinced that insurance companies will struggle to keep up if they don’t have a cIo who is willing to join the business leaders in the cockpit of business change.

In sum, a big difference between us and many of our competitors is that we don’t let the specifics of the insurance market prevent us from moving forward. naturally, as a sector, we still need to clarify a lot of the legislation that has been imposed after the financial crisis, and we also still need to work together through assuralia to define simplified exchange protocols. but we are convinced that we are building a competitive advantage by already instilling our people across the organisation with an understanding of an insurance eco-system that will naturally include digital platforms.


An organisation’s qualification as a digital leader was based on a combined measure of how far the respondents’ organisations were in deploying big data, social, mobile, cloud, and cyber technologies. We can also compare this combined scoring with the CIOs’ own assessments of their position in deploying digital technologies compared to their competitors.

Figure 11 shows that cIos of digitial laggards are more likely to misjudge their position vis-à-vis their competitors. there are two possible explanations for this phenomenon: these cIos might be overestimating their own progress; or they might be underestimating the maturity of their competitors.

such a misjudgement of one’s own position entails considerable risks. It may actually sustain a self-perpetuating process of under-investment in post-digital technologies. cIos of digital laggards who overestimate their own post-digital maturity or underestimate the progress of their competitors don’t feel as strongly pressured to catch up to their competitors, let alone surpass them, in post-digital innovation. as a consequence, digital laggards who misjudge their own position are more likely to remain in that position.

When it comes to reducing the risk of not knowing what they don’t know, cIos have two main options: first, they can intensify their engagements with business partners inside their own organisation; second, they can find ways to intensify post-digital external benchmarking across the sector.

a first reason for the cIos’ misjudgement of the relative digital innovation progress may be connected to a concern expressed by some of them during our pre-survey interviews. these cIos were under the impression that the business-driven nature of post-digital technologies makes it easy for business partners to set up small, disparate pockets of post-digital technologies without much visibility to the cIo or the Ict department. this was confirmed by our survey.

a majority of the cIos of banks and insurers in belgium agreed that the business-driven nature of post-digital might challenge their grasp of digital business innovation. Figure 12 shows that cIos of digital leaders recognise this challenge at least as much as their digitally lagging counterparts.

WarnIng: thE rISk OF mISjuDgIng rElatIvE PrOgrESS

Figure 12: Do CIOs of digital leaders and laggards experience the business-driven nature of post-digital technologies as a challenge to their department’s grasp of business innovation?

Figure 11: Do CIOs of digital leaders and laggards correctly assess their actual relative position in deploying post-digital technologies?

39% nO

61% yES

50% nO

50% yES

22% Incorrect

38% Incorrect

78% correct

62% correct

DIgItal lEaDErS

DIgItal laggarDS

DIgItal lEaDErS DIgItal laggarDS

7

from the data, we learned that a key element in solving this problem seems to be maintaining a strong relationship with business partners. a strong business-Ict relationship increases the probability that business partners will engage with the cIo and the Ict department when it comes to post-digital innovation initiatives. Figure 13 shows that, on average, cIos of digital leaders are more likely to build a strong relationship with their business partners. so, it seems that, while cIos of different banks and insurers recognise this issue equally, digital leaders are more effective in resolving it.

although a strong business-Ict relationship is a good foundation to start from, innovation investment decisions still need to be supported by the appropriate governance mechanisms. We asked the cIos which type of governance situation most closely describes how initiatives pertaining to digital innovation appear on the agenda of the Ict department.

the results were quite clear in two ways. on the one hand, the upper pane of Figure 14 shows that digital laggards are about 3 times more likely to suffer from shadow Ict in post-digital innovation. In turn, the lower pane of Figure 14 shows that digital leaders are about 3 times more likely to allow for flexible governance for post-digital innovation: i.e. formal, but not necessarily heavy-burden, highly standardised, project proposals for these types of initiatives.

It seems that flexible governance mechanisms can be an important way for cIos and Ict departments to keep abreast of digital business innovation initiatives. the key is to find the appropriate level of formality and standardisation to minimise the risk of pushing such initiatives off the Ict department’s radar due to governance mechanisms that are either too lax or too strict.

Figure 13: How strong is the Business-ICT relationship?

79%StrOng

58%StrOng

21%WEak 42%

WEak

DIgItal lEaDErS DIgItal laggarDS

Figure 14: Are leaders and laggards applying different governance mechanisms to post-digital innovations?


49% nO

9%yES

51%yES

DIgItal lEaDErS

72% nO

84% nO

28%yES

16%yES

DIgItal laggarDS

ShaDOW Ict

FlEXIblE gOvErnancE

91% nO


a second reason for the cIos’ misjudgement of the relative digital innovation progress may be that companies are too internally focused. this may result in them not having a sufficient understanding of the level at which their competitors have advanced in deploying digital business innovations.

this last issue seems to be more a problem for insurers than for banks. Figure 15 shows that insurers are much more likely than their banking counterparts to overestimate their maturity in rolling out post-digital innovations. however, after analysing the data, this result cannot be explained by differences in digital leadership, governance mechanisms or the strength of the business-Ict relationship. rather, a possible explanation can be that, in general, the insurance market appears to be less transparent for insurance companies to gauge each other’s relative position. If so, might they benefit from benchmarking initiatives that would allow for more comparison amongst insurers?

Figure 15: Do banks and insurers correctly assess their actual relative position in deploying post-digital technologies?

69% Incorrect

37% Incorrect

31% correct

63% correct

bankS

InSurancE

w


Post-digital technologies (big data, social, mobile, cloud, and cyber) and changing consumer needs and expectations are stimulating the financial sector to investigate new opportunities – especially mobile opportunities. as a result, post-digital business innovations are on the agendas of most retail banks and insurers in belgium. although the direct impact of the financial and economic crisis has reduced overall Ict investment budgets, the impetus for digital innovation remains strong. however, not all companies are equally strong in following through on their digital intentions. In general, the banks are leading the way, while insurers are slower to adopt post-digital investments.

there appears to be a financial premium for being a post-digital leader. Moreover, post-digital leaders are more likely to have a cIo who emphasises a strong value-oriented style of leadership towards digital innovations. this suggests that the way in which cIos conduct their own role can have an impact on their company’s chance to take advantage of this post-digital financial premium.

cIos from both digital leaders and laggards recognise equally that post-digital technologies can challenge their grasp on post-digital innovation. however, digital leaders seem to be more effective in dealing with this challenge. key elements in their approach are a strong business-Ict relationship and flexible governance mechanisms. this difference is also visible in the relatively high levels of shadow Ict reported by cIos of digitally lagging companies.

finally, digitally lagging companies - and especially insurers - do not always seem fully aware of their own position relative to their competitors when it comes to post-digital innovation. It will be crucial for fsI companies to develop more accurate mechanisms for guaging both the post-digital maturity levels of their competitors, as well as their own. failing to do so may otherwise result in a perpetuation of systematic under-investment in post-digital innovation.

cOncluSIOn

What IS rEally haPPEnIng

at rEtaIl bankS anD InSurErS

In bElgIum?

aPPEnDIcES


aPPEnDIX 1: SamPlE DEScrIPtIOn

tOtal # rESPOnDEntS 44

actIvIty #

banks 22 50%

Insurers 19 43%

bancassurance 3 7%

tItlES #

chief Information officer 17 39%

Ict director 12 27%

chief operating officer 5 11%

department head 5 11%

other 5 11%

rEPOrtIng lInES #

chief executive officer 23 52%

chief operating officer 10 23%

chief financial officer 11 25%

mEmbErShIP EXEc. cOmmIttEE #

yes 15 34%

no 29 66%

EXPErIEncE lEvElS Mean total (years) (years)

In financial services 17,3 761

In information systems 19,4 853

In current position 6,3 284


aPPEnDIX 2: quEStIOnnaIrEbefore continuing to the questions, please consider the following notes:

• If a question refers to ‘your organization’, please answer according to the situation at the company for which you are the highest ranked executive in charge of Ict.

• also please consider ‘innovations’ to be all investments oriented towards significant transformations to business processes, services, service ecosystems, and/or management systems and processes.

• completing the survey should take about 15-20 minutes. If you are not able to finish the whole survey in one go, you can always close your browser and afterward use the same link to finish it. data collection will be closed on friday 19 april 2013.

thank you again for you cooperation.

q1 tO What DEgrEE DO yOu agrEE that yOur OrganIzatIOn IS InvEStIng In thE FOllOWIng buSInESS InnOvatIOnS? (select one option per row) 1 structural innovations to the production and delivery of existing services

(e.g. lean and work flow automation)

2 the introduction of new services (e.g. atM finders and location based insurance services)

3 the orchestration of new financial service eco-systems with 3rd parties (e.g. e-wallets and peer-to-peer banking and insurance)

4 structural innovations to management and support systems and processes (e.g. e-hrM, analytical marketing and paperless working)

Stronglyagree

Agree Neither agree nor disagree

Disagree Strongly disagree

Don’t know

structural innovations to the production and delivery of existing services

o o o o o o

the introduction of new services o o o o o o

the orchestration of new financial service eco-systems with 3rd parties

o o o o o o

structural innovations to management and support systems and processes

o o o o o o


q2 What SharE OF yOur OrganIzatIOn’S Ict buDgEt IS takEn uP by Such buSInESS InnOvatIOnS?

<5% 5%–10% 10%–20% 20%–25% >25% Don’t know

share of such business innovations in the Ict budget

o o o o o o

q3 tO What EXtEnt DO yOu agrEE WIth thE FOllOWIng StatEmEntS abOut thE rElatIvE SharE OF Such buSInESS InnOvatIOnS In yOur OrganIzatIOn’S Ict buDgEt? (select one option per row)

Stronglyagree



Don’t know

the share of these innovations was significantly reduced when the crisis broke out

o o o o o o

the share of these innovations has been growing since the outbreak of the crisis

o o o o o o

the share of these innovations will be growing in the coming 5 years

o o o o o o

q4 tO What EXtEnt IS yOur OrganIzatIOn InvEStIng In thE FOllOWIng cluStErS OF tEchnOlOgIES? (SElEct OnE OPtIOn PEr rOW) 1 big data: capturing and analyzing large and complex data sets (e.g. to identify commercial opportunities, to

monitor social media, and to detect fraud)

2 social: using social technologies to reach consumers or connect employees (e.g. advanced social media campaign/brand management systems and internal microblogging)

3 Mobile: providing mobile services to customers and employees (e.g. mobile apps and location based services)

4 cloud: providing and managing cloud-based services for both core and non-core activities

5 cyber: the advanced use of electronic and cyber identification capabilities (e.g. the use of e-Id and e-wallets)

No Interest Researching/ Investigating

Experi-menting/ Piloting

Rolling Out Towards Production

Operational Operational >6 Months

big data o o o o o osocial o o o o o oMobile o o o o o ocloud o o o o o ocyber o o o o o o


q5 hOW ImPOrtant DO yOu thInk thESE tEchnOlOgIES WIll bE FOr yOur OrganIzatIOn’S InvEStmEnt PlanS In thE nEXt 3 tO 5 yEarS? (select one option per row)

Extremely important

Rather important

Neither important nor unimportant

Rather unimportant

Not at all important

Don’t know


q6 What kInDS OF buSInESS InnOvatIOnS IS yOur OrganIzatIOn PurSuIng WIth Each OF thE FOllOWIng tEchnOlOgIES? (Multiple selections possible per row)

Structurally innovating operational production processes and systems

Introducing new services to existing and/or new clients

Radically innovating service eco-systems

Structurally innovating support and management systems and processes

There isn’t any significant interest for this technology in our organization

Don’t know


q7 DO yOu thInk yOur OrganIzatIOn IS currEntly InvEStIng EnOugh In thESE tEchnOlOgIES? (select one option per row)

Far too little investment

Rather too little investment

About right level of investment

Rather too much investment

Far too much investment

big data o o o o osocial o o o o oMobile o o o o ocloud o o o o ocyber o o o o o


q8 What IntErnal barrIErS, IF any, mIght ImPEDE yOur OrganIzatIOn FrOm InvEStIng In Each OF thE FOllOWIng tEchnOlOgIES? (Maximum 3 answers per row)

Lack of CEO sponsor-ship

No strong value proposition

Other, non-discre-tionary priorities (e.g. M&A, legal, ...)

Internal security concerns (e.g. fraud)

Weak innovative culture

Lack of technical implemen-tations skills

Organizatio-nal structures not suited to take advantage of technology

Restrictions coming from parent company

None Don’t know

big data o o o o o o o o o osocial o o o o o o o o o oMobile o o o o o o o o o ocloud o o o o o o o o o ocyber o o o o o o o o o o

q9 What EXtErnal barrIErS, IF any, mIght ImPEDE yOur OrganIzatIOn FrOm InvEStIng In thESE tEchnOlOgIES? (Maximum 3 answers per row)

External security concerns (e.g. hacking)

Insufficient customer demand or need

Legal issues (e.g. privacy)

Concerns over regulator’s stance towards outcome

Absence of industry standards

Recessionary economy

Lack of opportunities to test and learn from less mature markets

Change of company ownership

None Don’t know

big data o o o o o o o o o osocial o o o o o o o o o oMobile o o o o o o o o o ocloud o o o o o o o o o ocyber o o o o o o o o o o

q10 WhErE DO IDEaS FOr nEW InItIatIvES OrIgInatE FrOm WhEn It cOmES tO thE FOllOWIng tEchnOlOgIES? (select one option per row)

Largely from the business

Largely from ICT Equally from the business and ICT

Not applicable

big data o o o osocial o o o oMobile o o o ocloud o o o ocyber o o o o


q11 WhIch gOvErnancE SItuatIOn mOSt clOSEly DEScrIbES hOW InItIatIvES PErtaInIng tO Each OF thESE tEchnOlOgy EntEr thE agEnDa OF thE Ict DEPartmEnt? (select one per row)

Nearly all initiatives pass through our closely governed enterprise-wide prioritization and selection process

Most initiatives are submitted as formal, but not necessarily standardized project proposals

We are mostly confronted with accidentally discovered ‘shadow’ business initiatives

Not applicable

big data o o o osocial o o o oMobile o o o ocloud o o o ocyber o o o o

q12 WhIch buSInESS lEaDErShIP rOlE IS bEcOmIng thE mOSt ImPOrtant FOr yOu aS cIO WhEn It cOmES tO hElPIng yOur OrganIzatIOn tOWarDS SuccESSFul InvEStmEntS In Each OF thE FOllOWIng tEchnOlOgIES? (select one option per row)

Being an effective business visionary

Educating the business on value creation

Planning the execution of business strategy

Leading the business by example

Don’t know

big data o o o o osocial o o o o oMobile o o o o ocloud o o o o ocyber o o o o o

q13 tO What EXtEnt DO yOu agrEE WIth thE FOllOWIng StatEmEntS? (select one option per row)

Stronglyagree



Don’t know

Most business value from these technologies will only come from innovatively combining them

o o o o o o

our business is currently too much focused on the hyped potential of individual technologies

o o o o o o

the business-driven nature of these technologies is challenging my Ict department’s grasp on digital business innovation in our organization

o o o o o o

When it comes to these technologies, the business generally appreciates ‘supply-side’ considerations with regards to, e.g. operational reliability, legacy issues, or security

o o o o o o


q14 hOW WOulD yOu ratE yOur OrganIzatIOn’S FInancIal PErFOrmancE In ItS mOSt rEcEnt FIScal yEar cOmParED tO that OF yOur cOmPEtItOrS?

o significantly ahead of peers

oahead of peers

o on par with peers

o behind peers

o significantly behind peers

o don’t know

q15 hOW WOulD yOu ratE yOur OrganIzatIOn’S InnOvatIvE aPPlIcatIOn OF thE kInD OF tEchnOlOgIES DIScuSSED In thIS SurvEy, I.E. bIg Data, SOcIal, mObIlE, clOuD, anD cybEr?

o significantly ahead of peers

o ahead of peers

o on par with peers

o behind peers

o significantly behind peers

o don’t know

q16 hOW WOulD yOu ratE thE rElatIOnShIP bEtWEEn thE buSInESS anD Ict In yOur OrganIzatIOn?

o very weak

orather weak

o neither weak, nor strong

o rather strong

o very strong

q17 WhIch DEScrIPtIOn mOSt clOSEly rEFlEctS yOur OrganIzatIOn’S PrOFIlE?

o banking company

o non-life insurance company

o life insurance company

o universal banking and insurance company

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q18 FOr bankIng, WhIch IS yOur cOmPany’S maIn markEt Entry mODE?

o network of wholly owned branches

o network of independent agents

o on-line direct

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o not applicable


q19 FOr InSurancE, WhIch IS yOur OrganIzatIOn’S maIn markEt Entry mODE?

o network of wholly owned branches

o network of independent agents

o on-line direct

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o don’t know

o not applicable

q20 WhIch SItuatIOn bESt DEScrIbES yOur OrganIzatIOn’S DEcISIOn POWEr OvEr buSInESS InnOvatIOnS?

o I’m part of the head office, which has full decision power over business innovations.

o I’m part of a local/regional decision centre, which has near full decision power over business innovations.

o I’m part of a local/regional branch, which has limited decision power over business innovations.

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q21 What WErE yOur OrganIzatIOn’S tOtal aSSEtS In thE laSt FIScal yEar? (In mIllIOn EurO)

o <10k

o 10k–30k

o 30k–50k

o 50k–100k

o 100k–200k

o >200k

o don’t know

o not applicable

q22 What WErE yOur OrganIzatIOn’S InSurancE PrEmIumS cOllEctED OvEr thE laSt FIScal yEar? (In mIllIOn EurO)

o <50k

o 50k–100k

o 100k–200k

o 200k–500k

o >500k

o don’t know

o not applicable

q23 What PErcEntagE OF rEvEnuE DOES thE Ict buDgEt rEPrESEnt In yOur OrganIzatIOn?

o <3%

o 3%–5%

o 5%–10%

o 10%–15%

o >15%

q24 What IS thE SPan OF Ict rESPOnSIbIlItIES yOu OvErSEE aS cIO? (Multiple answers possible)

o core operational information systems

o customer facing information systems

o support & management information systems

q25 WhIch OF thE FOllOWIng bESt DEScrIbES yOur tItlE? (Multiple answers possible)

o chief Information officer

o Ict director

o chief operations officer

o chief executive officer

o other c-level executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o department head

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q26 WhO DO yOu DIrEctly rEPOrt tO?

o chief executive officer

o chief operating officer

o other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q27 arE yOu a FOrmal mEmbEr OF thE EXEcutIvE cOmmIttEE OF yOur OrganIzatIOn?

o yes

o no

q28 What IS yOur EXPErIEncE lEvEl In thE FOllOWIng arEaS? (in years)

EXPERIENCE IN yEARS

experience in the financial services industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

experience in information systems management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

tenure in current position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


bruSSElS - ghEnt - lEuvEn - St. PEtErSburgvlErIck buSInESS SchOOl - thE buSInESS SchOOl OF ghEnt unIvErSIty anD ku lEuvEnStIchtIng van OPEnbaar nut - PublIc utIlIty FOunDatIOn - vat bE 0424 244 049hq: rEEP 1 - 9000 ghEnt - bElgIum - t + 32 9 210 97 [email protected] - WWW.vlErIck.cOm

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