1. business and industrial

The Digital Opportunity
Imran Sayeed, SVP & CTO
March 25, 2015
© 2015 NTT DATA, Inc.
How business is being disrupted
© 2015 NTT DATA, Inc.
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What is Digital?
Always connected consumers & businesses are demanding greater sophistication and easier
access to services and data
This is forcing enterprise transformation of legacy to new digital products & services
1. Create new business models & strategies to stay relevant,
and take advantage of the current digital disruption
2. Create customer-centric, highly usable, accessible,
engaging enterprise applications for multiple platforms &
channels
3. Understand how to use new emerging technologies:
Social | Mobile | Big data analytics | Cloud | Internet of
Things | Telematics | Additive Manufacturing
Source: Gartner (March 2014)
© 2015 NTT DATA, Inc.
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How business is being disrupted
Auto Insurance: Ingenie Insurance, UK
© 2015 NTT DATA, Inc.
Not just about Marketing
anymore – but core business
•
Targeting the difficult 1725 year old drivers’
market
•
Uses telematics, big
data analytics, mobile,
gamification to assess
driving
•
$100M in profits in 2
years, expanding into
Canada this year
4
How business is being disrupted
Banking: No less than 17 Digital disruptors challenge Wells Fargo
© 2015 NTT DATA, Inc.
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How business is being disrupted
Hospitality: AirBnB
Disrupting one of the
oldest industries
© 2015 NTT DATA, Inc.
•
Everyone can be a
hotelier!
•
In 5 years, 600,000
listings in 200 countries
•
$826M in funding,
est.$10B valuation
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How business is being disrupted
Transportation: Uber
Set pickup, fare
automatically charged to
your card
United Airlines,
TripAdvisor, OpenTable,
Starbucks, and other
companies adding the ondemand car service as a
feature on their mobile apps
© 2015 NTT DATA, Inc.
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How business is being disrupted
Telecom: GiffGaff, UK
Crowd-sourced sales
and support by UK
MVNO. Developed by
NTT DATA!
© 2015 NTT DATA, Inc.
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Why Digital?
© 2015 NTT DATA, Inc.
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Why Digital?
No business
is immune.
© 2015 NTT DATA, Inc.
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Why Digital?
Our C-level clients are already on this journey
Is your organization currently undergoing
a formal digital transformation effort?
What executive roles are supporting this
transformation effort?
Source: Altimeter Group Digital Transformation Survey, 2014. N=59
© 2015 NTT DATA, Inc.
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Where is the focus?
Digital processes and the integration of online and ecommerce programs with
social and mobile to create an integrated customer experience top the list.
Importance:
Very
Somewhat
Improving processes that expedite changes to digital properties, i.e.,. Website updates, new
mobile or social platforms, etc.
80%
19%
Updating our website and ecommerce programs for a mobile world
71%
25%
Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an
integrated and frictionless customer experience
70%
36%
Updating customer-facing technology systems
66%
29%
Further research into our customers’ digital touch points
63%
36%
58%
36%
54%
27%
Building a social media program that is more competitive against our peers
Creating a sense of urgency to show executives that our digital transformation effort does not
align with current plans
© 2015 NTT DATA, Inc.
Overhauling customer service to meet expectations of connected customers
46% Transformation
49% Survey, 2014. N=59
Source: Altimeter Group Digital
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What’s at Stake?
27% of Sr. Executives rate digital transformation
as a matter of survival(1)
Customer experience leaders
outperform the market (2007 to 2012)
Companies with the strongest omnichannel
Six-year stock performance of
Forrester’s Customer Experience Index
leaders vs laggards vs S&P 500 (5)
customer engagement strategies retain
89% of their customers, compared with 33% for
companies with weak omni-channel strategies(2)
By 2020 customer experience will
overtake price and product by 2020 as
the key brand differentiator(3)
Of companies using marketing automation and
ROI metrics, 69% reported an increase in total
marketing revenue contribution(4)
(1) MIT Sloan Management/Cap Gemini Report; (2) Aberdeen Group; (3) Walker Information, Customers 2020 Report; (4)CapGemini Digital Talent Gap Report; (5) Forrester’s Banks And Retailers: You Cannot
Price Your Way Out Of Bad Customer Experiences
© 2015 NTT DATA, Inc.
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Enabling Digital Business
NTT DATA believes:
Clients need to simultaneously “renovate the legacy core” of IT operations
while simultaneously building out digital systems of engagement,
platforms and services necessary to compete in a rapidly digital age.
Innovate Systems of Engagement
Renovate Systems of Record
Digital applications are needed to engage
employees and customers directly – like mobile
CRM and productivity apps, collaboration systems,
and new social networking and learning systems.
Legacy applications that enterprises rely on to run
their business (financials, manufacturing, CRM, HR)
need renovation to enable digital business. These
can be custom built, packaged applications or SaaS
applications
Striking the proper balance is key
© 2015 NTT DATA, Inc.
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Enabling Digital Business
NTT DATA recommends :
Clients should leverage multiple strategies to find the right balance, including critical
integration requirements and ongoing management in the mix.
Innovate
Systems of
Renovate
Integration
Engagement
Systems of
Record
Manage and Maintain
© 2015 NTT DATA, Inc.
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Digital Business Strategies Have Unique Goals
Innovate Systems of
Engagement
Renovate Systems of
Record
What
Create new business models
Reinvent business processes
Harness new technologies
•
Connect innovation
initiatives to core
systems
•
•
Support innovation goals
Improve and modernize core
systems
•
•
•
Speed and agility
Drive new revenue
Improve productivity
•
Realize the full
value of innovation
initiatives
•
•
Enable innovation
Maintain reliability and security
•
Deep understanding of
the business
Ability to imagine what’s
possible
Willingness to try, fail,
adapt quickly
•
Expertise in enterprise
architecture
Experience in multiple
platforms and domains
Strong project
management
•
•
Expertise mission critical systems
Experience and skills in legacy
modernization
Roadmap and extensive planning
Requires
•
•
•
End
Goal
Integration
•
•
Manage and Maintain
© 2015 NTT DATA, Inc.
•
•
•
•
•
•
Optimize the maintenance and support of current systems
Drive costs down and increase efficiencies
Re-invest savings in above strategies
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Innovate Systems of Engagement
4 stages of evolution, enabled by strong governance
Governance & Strategy
4
© 2015 NTT DATA, Inc.
Business model disruption/transformation
New business model, new channel
created
Optimizing business processes,
new processes/supply-chain,
back-office modernization
3
Process transformation
2
Immersive Experience
Omni-channel, customer outreach,
end-user enablement
1
One-off Applications: social, mobile, analytics, cloud
Building basic digital infrastructure,
collaborative communities
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Immersive Experience
Industries
Personalized • Engaging • Cohesive • Seamless • Great Experience
Case
Studies
Audience
FSI
Retail
Healthcare
Media/Entertainment
Manufacturing
• Customers
• Agents
• Employees
• Customers
• Employees
• Patients
• HCP
• Employees
• Customers
• Employees
• Customers
• Employees
• Hanover
• Tenn
Farmers
• Uniqlo
• Kraft
• Caremore
• ATCC
• Directors Guild
• Wacom
• Honeywell
© 2015 NTT DATA, Inc.
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Digital Process Transformation
Comprehensive • Effective • Seamless • Enabling • Engaging
Industries
CRM
Case
Studies
Audience
FSI
Onboarding
Retail
Reporting
Healthcare
Retention
Media/Entertainment
Compliance
Manufacturing
• Customers
• Agents
• Employees
• Customers
• Employees
• Patients
• HCP
• Employees
• Customers
• Employees
• Customers
• Employees
• BofA
• State Farm
• GSK
• NTT DATA
• Honeywell
© 2015 NTT DATA, Inc.
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Digital Case Study: Insurance
© 2015 NTT DATA, Inc.
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Immersive Experience: Insurance 3.0
Agent
Carrier
•
Create awareness about offerings
•
Attract best agents
•
Educate customers
•
•
Select right policy (based on customer
profiles)
Efficient on-boarding and training of
agents
•
Sell the most profitable policies
•
Price competitively
•
Generate the policy (product bundling)
•
Generate the policy
•
Manage the policy
•
Manage the policy
•
•
Process claims payouts
Project mortality accurately (minimize
claims)
•
Manage commissions and payouts
•
Accurate commission processing
•
Upsell / Cross-sell insurance and financial
products
•
Upsell / Cross-sell different insurance and
financial products
© 2015 NTT DATA, Inc.
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Immersive Experience: Insurance 3.0
Customer
Education
Agent
Education
Policy
Selection &
Management
Sentiment
Analysis
Agent
Attraction &
Retention
Power
of Points
Solution: An Insurance 3.0 app for individual policy holders
• Timely and easy-to-understand updates about financial and insurance products
• Alerts sent to customers about changes in policies directly affecting them
• Quick & easy quizzes for customers to learn about policies; points awarded & redeemable for
various prizes & discounts
• Customers sent occasional health-related tips for an improved lifestyle
• Instant chat available between policy holders & agents
• ”What’s New With You?” feature - Easy check-ins about major life changes with agent via simple
mobile app forms
Benefits to agent :
• Creates a more informed customer base about new product offerings and changes
• Helps the customer help the agent manage the policy more efficiently
Benefits to carrier:
• Creates a healthier, more informed customer base; minimizes likelihood of hazards & prevent
losses
• Attracts Millennials, who already use digital channels to perform banking, trading and financial
tasks
© 2015 NTT DATA, Inc.
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Process Framework identifies
digital initiatives for a roadmap
Digital enhancements can impact each process area in the value chain
The Process Framework covers these areas
New Product
Development
Sales & Marketing
Agency Management
Claims Administration
Governance & Strategy
Compliance &
Regulatory Reporting
4 stages
of digital
evolution
Underwriting
Post Claims
Billing
Policy Administration
Accounting
Fraud Management
4 Business model disruption/transformation
3 Process transformation
2 Immersive Experience
1 One-off Applications: social, mobile, analytics, cloud
© 2015 NTT DATA, Inc.
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New Product Development
Challenges
New Product
Development
Key Functions:
•
•
•
•
•
•
•
•
Product definition
Policy wording
Product pricing
Profitability analysis
Analytics
Loss projection
Training
Pricing
© 2015 NTT DATA, Inc.
• Need to incorporate demographic, social
information when designing new product
• Need to create new personalized products
• Need to capture brand/product sentiment
to adjust pricing
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New Product Development
Areas for digital enhancement
New Product
Development
1
One-off Applications:
social, mobile, analytics,
cloud
2
Customer
Experience
3
Process
transformation
Key Functions:
•
•
•
•
•
•
•
•
•
Product definition
Policy wording
Product pricing
Profitability analysis
Analytics
Loss projection
Training
Pricing
Product filing
© 2015 NTT DATA, Inc.
Enterprise mobile app store for agents &
employees
Social sentiment analysis to adjust pricing
for new products
Social profiling to identify pilot customer
base
Feedback loop
between claims and
new product
development to
adjust pricing
4
Business model
disruption/transformation
New product
personalized by
New direct to
demographic
customer product(s)
New product
personalized by
demographic
Nextgen agent portal
with immersive UX
Gamified site for
customer advising
Areas for digital enhancement
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Realizing the Next-Generation Digital Enterprise
•
•
•
•
This has to be a business led
initiative
Start small
Fail fast and iterate
Attitude is everything!
Immersive
Experiences
Personalized • Motivating • Cohesive • Seamless
Comprehensive • Effective • Enabling • Engaging
Digital Process
Transformation
© 2015 NTT DATA, Inc.
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Summary
• Biggest technology and Business trend in Global 2000 companies
• Huge, unmet opportunity in Immersive Experience and Digital Process
Transformation
• We recommend an approach that Innovates, Renovates AND
Integrates the key components of your digital enterprise
• Partnering with our key clients on this journey allows us all to WIN!
© 2015 NTT DATA, Inc.
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© 2015 NTT DATA, Inc.