Innovation Manager.BG

Ivaylo Alexandrov

IBM IS SEE LeaderSofia 12 June 2019

Trends and Key Success Factors

Introduction 5 min

Trends and Key Success Factors 15 min

Praxia Bank – Stavros Tamvakakis 15 min

Panel Discussion 50 min

Q&A 5 min

Panel Agenda

Panel Participants

4

Trends and Key Success Factors

15 min

©2019 IBM Corporation 13 June 2019 IBM Services5

76%of consumers

expect companies

to understand

their needs and

expectations

89%of business leaders

are undertaking

digital transformation

initiatives to be more

responsive

Clients expect more. Today’s

enterprises must transform key

business processes to compete.

Sources: Salesforce, State of the connected customer report; Fujitsu Study

Cloud accelerates

business transformation:

▪ Innovate with the latest technologies.

▪ Access more types of data and

analytics.

▪ Improve return on existing investments.

Trends and Key Success Factors

©2019 IBM Corporation 13 June 2019 IBM Services6

Towards the Cognitive Enterprise

Client Experience /Employee Experience

Change Management/ Governance / Industrialization

• Expertise and know-how• Symetry of attentions• Digital Natives & Digital Papys

• Client Data / IS Data• Unstructured / Structured• Transparency & Responsibility

• IS Products / IS Ecosystem• Leverage Legacy Systems and new technology• Process / Data / Intelligence shared and specific

70%Think that employee experience isat least as important as customerexperience

Data Platform

80%Of the data is located insidecompanies

72%Of innovators that disrupt their sector are actually established companies

Blockchain

IoT

Legacy + API

Cloud

AugmentedIntelligence

©2019 IBM Corporation 13 June 2019 IBM Services6

©2019 IBM Corporation 13 June 2019 IBM Services7

Towards the Cognitive Enterprise – Augmented Employees

ScalingExpertises

Developpingnew skills

1 2

Virtual Assistants

Car & Home Insurances

HealthService

SavingsServices

20.000 employees of Crédit Mutuel constantly have the virtualpresence of the best experts by their side

Orange Bank completely reshaped its client experience around a mobile, multichannel and cognitive model.

From a generic assistance to contextualized services and recommendations with IBM capabilities :

+ 1 million conversations+ 55% full AI

+ 80% accuracy

Cognitive Engagement

Cognitive Predictive Prescriptive+

IBM Watson Capabilities

+

+

Institutional bank leveraging AI & data science

©2019 IBM Corporation 13 June 2019 IBM Services8

Towards the Cognitive Enterprise – Ecosystem platforms

System of Engagement

Client

System ofRecordProduit

System of Insight

System ofRecordProduit

Enterprise Information System built around the « Product »

Opening of the Information System fromthe enterprise to the client, the partners,

the competition

Creation of the IS of a whole ecosystem:Client / Supplier / Employees

Internal / External / Third Parties

©2019 IBM Corporation 13 June 2019 IBM Services9

Towards the Cognitive Enterprise – Key Success Factors

44

Place more value on customer experience thanproducts

70%

Think that employeeexperience is at least as important as customerexperience

70%

Of innovators that disrupttheir sector are actuallyestablished companies

72%

Of companies judge thatthe human factor will have a major impact within the next 2 years

60%

Of companies have launched Open Innovation initiatives with startups

55%

Of the Data is locatedinside companies

80%

Of companies are building their business model and strategy on Data

70%

LEARNING CLIENT EXPERIENCE /

AUGMENTED EMPLOYEE

CULTURE & TALENTS

LEARNINGPLATFORMS

DATA

Omnichannel

UX/UI

SYMMETRY OFATTENTIONS

LearningProcesses

CLOUD

BLOCKCHAIN

IOT

API

Process / Data / Intelligence

Legacy

SPECIFICS

SHARED

IA

Intrapreunership

IntelligentKnowledge

Management

ExponentialLearning

DIGITAL PAPYSEnhanced CHRO

Chief TalentOfficer

ACADEMY

DIGITAL NATIVES

CHANGEMANAGEMENT

Structured

Internal AugmentedIntelligence

UnstructuredExternal

©2019 IBM Corporation 13 June 2019 IBM Services10

10

Key Success Factors – Industrialization A Platform factory : Industrialized open system model

1. InnovationIdentify, Qualify and Prioritize new use cases and technologies 5. Skills

Attract, Retain, Reskill talents + Adoption change management

3. AssetisationFunctional & reusable building blocks

2.IndustrializationDevelopment of new IA / Blockhain / IoT solutions, Standards, Methodologies, Tools

4. Continuous improvement Models, Machine learning, Deep learning,

©2019 IBM Corporation 13 June 2019 IBM Services11

11

Key Success Factors – Cloud to accelerate transformationClients expect more, and today’s enterprises must transform key business processes to compete

62%Improve

customer experience

Source: IBV 2018 multicloud management survey, Q12. Percentages represent the number of respondents who selected 4 or 5 on a 5-point scale.

How important are the following strategic reasons for establishing a multicloud environment for your business?

57%Reduce

time to market

49%Expand portfolio of

product & services

Source: Benefits of Multicloud, CloudView 2018: Implications for the Channel, IDC 2018

What are the biggest business benefits of a multicloud environment?

35%Improve

business agility

33%Restructure financial footprint to

opex from capital

34%Give business units

IT solution control

©2019 IBM Corporation 13 June 2019 IBM Services12

12

Key Success Factors – IT Organisation and models transformationIntegrated Lifecycle Management towards DevOps, AppOps and Cloud models

1 Reduce Time To Market and Cost through DevOps automation and industrialization

Intergrated Lifecycle Management to cover end to end integrationand deployment processes and support the AppOps management

Prepare Cloud Transformation through standardization and automation

2

3 Transform organizations to create seamless, agiles end to end business/IT processes

Banking in the Digital Era: Value Propositions and CapabilitiesDigital Bank Detailed Capabilities – Advanced Customer Experience

❑ Advanced Interaction Support:

▪ Mobile First Interaction

▪ Multimedia (text, voice, video,

image)

▪ Intelligent Interaction

(conversation)

▪ Natural Language Processing

▪ Virtual Advisors

❑ Advanced Omnichannel

Customer Experience:

▪ Multichannel support (any

channel: Online, Mobile,

Branch, Social, ATM, CC,…)

▪ Seamless Processes through

devices and channels

▪ Digital-Physical convergenge

(New Branch Office Model)

❑ Advanced Personalization

▪ 3600 View of Customer

(Internal + External

Information + Advanced

Analytics)

▪ Contextual Information

▪ Customer Experience

Monitorization

✓ End-to-End Digital Processes

✓ End-to-End Digital Products

✓Advanced Interaction

Support

✓Advanced Omnichannel

Customer Experience

✓Advanced

PersonalizationValue Chain Digitization

Advanced Customer

Experience

Responsive

Trustworthy and

Transparent

Ecosystems Enabled

Social Media

Enabled

Optimized & Efficient

IT

Innovative Digital Culture

✓ Products & Services

Comparison and Social Tools

✓ Financial Advisoring

✓ Transparent Customer

Information

✓ Real Time

Interactions

✓ Actionable Insight

✓ Advanced

Personalization

✓ API Economy

✓ Digital Employee

✓ Digital Economy

✓ Foster Innovation

✓ Open Developers Platforms

✓ Using own Social Media

✓ Leveraging external Social

Media

✓ Scalable and Resilient IT

✓ Agile and Flexible IT

✓ Continuous Software

Delivery

✓ IoT Economy Enablement (participant)

✓ API Economy Enablement (participant)

✓ IoT and / or API Platforms promoter

✓ Data Centric

✓ Security

©2019 IBM Corporation 13 June 2019 IBM Services13

14

▪ Businesses who do not digitally transform their

customer experiences will be left behind in the

marketplace.

▪ End to end digital processes, omnichannel and

advanced customer experience are focus

▪ Enterprises are rapidly adopting cloud

capabilities.

▪ IT Organization and model transformation to

support business toward agile development,

open platforms, dev ops, app ops and cloud

models.

Key Takeaways

Trends and Key Success

Factors

Panel Topics

•What are the most important trends in banking innovations in Bulgaria?•Is the driven predictive banking close? One of most impressive innovation trends for 2019?•Cloud Processing / Robot Process Automation / Blockchain as most important element of the money fast movement and the bank of the future.•Open Banking expansion. Do banks have their FinTech companies already? How do banks work with start-ups, have they factored them into their innovations budget for this year or for the next years?•How to communicate with financial startup entrepreneur?•Phygital process in the banking. Banks’ key advantage is still people trust. How to combine fast digitalization with human communication? The “digital” brings money; the “physical” spends money. How to combine them?•Is there a relation between the administrative position of the innovator within the bank and the digitalization results?