20160620 - digital transformation - guest lecture for isb students

Digital TransformationExplained through a practical industry framework and context

Talk for ISB students on 20th June 2016 - Make ‘Technology & Data’ your surfboardAyush Gayaprasad - Principal Consultant (Management consulting)

20th June 2016

Agenda

1 About the presenter

2 A challenge explained through Probability analysis

3 What is Digital • The 4th industrial revolution

• Changes in business value chain

• Exponential Business models

• Emerging Trends enabling new operational models

4. Understanding ‘Digital’ impact on industries• 3C +3P framework and 4 buckets of digital trends

• Insurance industry review

• Digital changes in Insurance

• Digital changes in other industries

5. Conclusion

Agenda






• Emerging Trends enabling operational models





5. Questions and Answers

About Me

Originally from India; Studied what it took to get a good job:• Computer Eng. (Kumaon Univ-India) and Masters in International bus. (Symbiosis- India)

Worked on whatever kept the clients awake at night; 12 years experience in technology and business management with focus on Financial services, Utilities and AIIT/manufacturing:• Management Consulting (CIO Advisory and IT portfolio optimization)• Deal Advisory (M&A transactions)• Program Leadership (ERP and Digital Transformation)• Team leadership and P&L accountability (managed global teams of sales and technology experts)

Living in NL since 2007. Currently working internationally as Principal Consultant (Advisory) with an innovative and highly specialized Dutch consulting company (SIG):• Clients in Technology business management across India, Uk/Ie & Continental Europe• Sharing industry insights at several forums e.g. NATO supplier conference (Brussels); Strategy insights IT

Directors event (London); Irish Insurance seminar (Dublin) and several colleges in Benelux/India.• Publishing blogs and articles at various CxO targeted magazines in Europe• Coaching on “Intercultural sensitivities in global teams” as a hobby!

Generally seen clean shaven and in a suit for meetings !

So why not today ?

Given that you all are learning Data science; let me see if I can explain it in terms of probability theory!

And you all need to track the mistakes in this analysis J

Agenda











5. Conclusion

The suit and shave challenge Sources : Internet on mobile; Search engine tech Google and Data science (probability)

Disclaimer: All computation and algorithmic errors are intentional attempt at ice-breaking with an audience forced to bear a Dutch Indian at 6:30 eve.

> Chances of Ayush landing in a remote location in India for a 21 day Hatha yoga retreat (which is exactly 68 km from Coimbatore in TN)* =0.1

*Notes:

> 1/5 (0.2) of global population is indian and 50%of households have heard of benefits of yoga

> In addition the marketing of IYD 2016 on 21stJune make it highly probable that I heard about the retreat

> Being a volunteer with Isha foundation as my CSR initiative; was aware of the program anyways

The suit and shave challenge

> Chances of Ayush landing in a remote location in India for a 21 day Hatha yoga retreat (which is exactly 68 km from Coimbatore in TN) =0.1

> Chances of Ayush having a big beard after 21 days in Hatha yoga retreat* = 1

> * Assumptions: 36 years old healthy man with no hormonal issues

Sources : Internet on mobile; Search engine tech Google and Data science (probability)





> Chances of Ayush having a big beard after 21 days in Hatha yoga retreat = 1

> Chances of being called for a guest lecture at ISB while chanting during a yoga asana = 0.1

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

5,5

0 100 200 300 400 500 600 700

ON

DER

HO

UD

BAA

RHEI

D

MENSJAREN

Omvang en kwaliteit van BENC t.o.v. andere softwaresystemen in de markt

Systemen in de SIG benchmark BENC

Density of 0.32 barbers / Km2





> Chances of being called for a guest lecture at ISB while chanting in sarvangasana = 0.1

> Chances of finding a salon in this remote location ( with a density of 0.32 barbers / Km2) and taking into consideration a roaming radius of 5 km = 0.32X0.2 = 0.064





> Chances of being called for a guest lecture at ISB while chanting in sarvangasana = 0.1

> Chances of finding a salon in this remote location ( with a density of 0.32 barbers / Km2) and taking into consideration a roaming radius of 5 km = 0.32X0.2 = 0.064

> Chances of English/Hindi speaking barber in that city who also does a non-Thalaiva cut and taking in account a human intuition factor (confidence factor of getting a haircut in a place where they part-time as nariyal cutters) = 0.00001*0.5 =0.000005

The suit and shave challenge

Probability of Ayush being shaven = 0.1*1*0.1*0.064*0.0000005

= 0.0000000032i.e. Less than 1 in a Million

Sources : Internet on mobile; Search engine tech Google and Data science (probability)


Why bother?

> Chances of Ayush having suit in his closet =1

> Chances of Ayush bring a suit on a yoga retreat =0.25

> Chances of finding a suit of size 60 that can be ready in 1 day =0

Probability of Ayush being suited today= 1*1*0.25*0

= 0



Everything wrong with the analysis of suit and shave challenge….

> Unclear problem statement formulation; explained through static secondary data (unverified sources)

> Inconsistent approach; incorrect data; undefined universe of data AND RESULTS ARE Not SMART

Hint : Try to start thinking in terms of Design Thinking*

Important to focus on your Data sciences/Statistics/Analytical fundamentals!

*http://createdu.org/design-thinking/what-is-design-thinking/

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5. Conclusion

What is ‘Digital’? (4th Industrial revolution)Background: Context of the 4th industrial revolution

What is ‘Digital’? (Changes in business value chain)

Linear value chain(s) – Porter

The transactional organization structure (Value Chain) is changing because new business models/operating models are available (exponential business models*)

What is changing with the 4th industrial revolution?

Exponential business models

What is different now; that exponential business models are possible?

But how do we understand them in context of digital ?

Some trends that are manifesting themselves in the 4th industrial revolution and facilitating exponential models.

Autonomous vehicles

RPA IoT MPoS

3D printing

FinTech

RegTech Drones

WearablesCloud/platform

services

Big data

AIAI

People centric trends (Agile/Dev-ops/Digital skills etc.)

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5. Conclusion

What is ‘Digital’? (Wave/Transformation/Disruption)

The 3C (main drivers) of Digital: • Changing customer behavior and demand• Changing company (organization/value chain/business models) to predict and meet customer needs• Change in the role of participants and in particular competition in the business eco-system

The 3P (aspects) of Digital enablement/change:• People • Process• Products (Technology)

Most digital trends discussed in slide 19 can be categorized under one of the 4 areas below:

Understanding ‘Digital’ impact on industries through a practical model (3C and 3P)

Decision Making Connectivity Automation Innovation

Example – Insurance industry

Customer Company Competition

Technology • Multi-channel accessibility (web/mobile/advisors/..)

• New risk classes ‘Cyber-insurance’; Internet-of-Things

• Data protection sensitivity*

• Open interoperability with hospitals; payment hubs and other stakeholders

• Drones for damage assessment• Fraud detection/automation in claims• Security by design• Decision enablement through Data

analytics technologies

• Regulation Tech*• ‘Telematics’ as future of

increased ‘Combined Ratio’

• Collaboration with automotive/other industry

Process • Traditionally ‘sold’ products now possible to ‘buy’

• Direct comparison sites • Real time claim payment STP

• ‘Big Data’ and ‘Customer historic data’ analysis for premium determination

• Disintermediation of ‘advisors’• Standard products

• ‘White labels’ • Local vs Global platforms• Direct comparison sites

People • Omni-channel expectation (education level; high service expectation)

• Voice through ‘social media’; expectation of co-creation

• Agile workforce and Dev-ops focus on workforce

• New Customer segments (pet etc) based on latent need of individuals

• Customer Data as competitive advantage

Understanding changes to Insurance value chain w.r.t Digital transformation

* EU Data protection Act 2016

> Customer co-creation (not a target-segment) with

simple product add-ons is possible with big data

analytics (e.g. travel insurance with pet insurance*)

> Can call center know that phone customer was checking

new coverage on the internet just a few minutes before

calling?

Source – Teradata capabilities

Data and Analytics usage in Insurance!

Infinity Preperty & Casualty Corp : DARK DATA – (adjusters report anlayzed for fraud co-relation) - $12M in subrogation recoveries

Data and Analytics enabling other industries

> Macy’s Inc and real time pricing (73 million items) using SAS technology

> XX – lottery platform (KXEN software) transaction analysis for predictive models to target customers through personalized marketing messages. 90% reduction in lead time

> EPO (European Patent office) uses proprietary search engine SEA client for patent checks and case management.

> YY - Fast food company drive through ; (based on footfall situation presenting their high margin slow cooking food items

> Amex – Business intelligence can identify 24% accounts that will close in 4 months based on historic data and 115 variables to forecast potential churn

> Etc etc …...

Some examples

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5. Conclusion

Congrats on being part of a great course and

best wishes for your continued success!

Contact

+31681845689

[email protected]

@AyushGV

Questions ?

ions ?https://nl.linkedin.com/in/ayushgv

Additional Example (AIIT) Auto, Industrial, Infrastructure and Travel

> Automations

> Flexibility/Interoperability == Acquisitions

> Operational excellence

> Visibility/Transparency in value/cost/waste

> Contract manufacturing

> Skills

SMART factory: Assembly line (Cobots, Robots, AI, IoT )

Electric and sustainability opportunities

Customer side: The connected traveler, autonomous vehicles and the digital enterprise/ecosystem

https://www.accenture.com/t20160505T044104__w__/us-en/_acnmedia/PDF-16/Accenture-wef-Dti-Automotive-2016.pdf

Understanding changes to AIIT value chain w.r.t Digital transformation