Winning in the digital age Christopher J. Blackwell, PwC

www.pwcdigital.com

9 September 2014

Disruptions always seem to come as a surprise –

but rarely surfaces overnight.

… get ready for faster technology cycle speeds

hitting your business!

Burberry - A new way of customer engagement

17% CAGR since 2011 Stock value x8 Brand value >5bn USD e-commerce sales +50%

Nest • Google bought NEST for $3.2 billion to enter the

connected home market

• Nest provides amongst others a learning thermostat

that helps manage and optimize your energy

consumption and save money

• Nest has helped consumers save 2B Kilowatt hours via

smart thermostat controls since 2011

Automatic • Connected Car

• Collects / analyzes 100s m data points daily

• Personalized feedback to drivers, saving 30% fuel

• Discovered driving over 100km/h saves <5% time, but

wastes CHF500 fuel / year

Pandora • Tell us 3 songs you love and we will create a radio

station with streaming music you’ll love

• Music Genome project which analyzes the musical

structures present in the songs you like using over 400

attributes and then plays other songs that possess

similar musical traits

Fidor bank Pirates of banking

Participate. Innovate. Integrate.

Source: fidor bank

Building the foundation of the financial ecosystem

for third parties to innovate and build new services “The Fidor Smart Account kills

the traditional bank account,

like the smartphone killed the

mobile phone.”

Matthias Kröner – CEO Fidor Bank Group

Payment

Community Banking

Customer

Bank’s core banking system

Com-

munity Bonus Account

Pay-

ments

Third

party

Mobile and web front end

Fidor bank – building a banking digital ecosystem

Alibaba – Monetizing the community

China’s largest e-commerce company

Online payment escrow service

Alibaba Group Yu’E Bao investment fund

June 2013: Launch

Feb 2014: 81 million investors ($93b)

Disrupting the Chinese banking sector

Innovating in Internet finance

Prodding banks into offering investment products

Leveraging customer data (e.g. for credit scoring)

Increasing liquidity

Regulation to step in?

Interest spread development question

business model?

Uber – purchase a ride instead of a car

Find, ride, pay and share your experience Repeatable growth engine

Manufacturing Financial Services Healthcare Sports

Retail Education Energy Automotive

All industries SMACTed.

SOCIAL MOBILE ANALYTICS CLOUD THINGS

Companies can achieve new, sustainable growth by setting up or joining a digital ecosystem

Connectedness, interaction and digital identities are at the heart of the value

creation process and are amplified by reinforcing network effects

Community

Content

Commerce

Digital ecosystems Uber’s reinforcing network effects

Daimler – entering digital ecosystems to redefine

mobility

You don’t need a digital strategy. You need a business

strategy for the digital world! Winning in the digital age

Data is the new oil and provides a competitive advantage for taking each interaction to the next level

The world is in beta - all industries will be SMACTed by digital disruption

Move away from selling products to enabling delightful customer experiences anywhere, anytime

Digital ecosystems will replace traditional value chains and be a major driver of profitable growth

ACT

NOW

From strategy to execution

1. Understand your level of

digital fitness and what you

need to improve

2. Get insights about the

future of your industry and

assess opportunities and

threats

3. Embrace the SMACT stack

and decide on what options

to pursue

4. Develop a roadmap to

capture your opportunities

http://www.worldinbeta.com/

The world is in beta