Sitra's event: The Next Era of Data Economy 8.5.2019

1. The Next Era of Data Economy
8.5.2019

2. Programme
8.30 Breakfast
9.00 Welcome
9.05 A Roadmap for a Fair Data Economy
Luukas K. Ilves, Deputy Director, The Lisbon Council
David Osimo, Director of Research, The Lisbon Council
09:35 Data Economy as Sustainable Engine for Europe
Jürgen K. Bott, Professor for Financial Management, University
of Applied Sciences, Kaiserslautern
10.00 Panel discussions
Panel 1: How to put the EU data economy to work?
Moderator: Jaana Sinipuro, Project Director, The Finnish
Innovation Fund Sitra
Panelists:
Janne Känkänen, Director for EU and International Affairs, The
Ministry of Economic Affairs and Employment, Finland
Maria Rautavirta, Director of Data Business Unit, Ministry of
Transport and Communications, Finland
Olli-Pekka Rissanen, Chief Specialist, Ministry of Finance,
Finland
#IHAN
#fairdataeconomy
#EU2019FI
Panel 2: How to accelerate the creation of new
services and ecosystems?
Moderator: Jyrki Suokas, Senior Lead, The Finnish
Innovation Fund Sitra
Panelists:
Kimmo Mäkinen, Senior Specialist, Ministry of Finance,
Finland
Matti Ristimäki, Director, Data-Driven Business, Tieto
Antti Viitanen, Managing Director, Novartis Finland Oy
10:50 Way forward
Jaana Sinipuro, Project Director, The Finnish Innovation
Fund Sitra

3. A roadmap for a fair data economy
Luukas K. Ilves, Deputy Director, The Lisbon Council
David Osimo, Director of Research, The Lisbon Council
#IHAN
#fairdataeconomy
#EU2019FI

4. A roadmap for a fair data
economy
08 May 2019

5. A roadmap for a fair data economy – 08 May 2019

6. A roadmap for a fair data economy – 08 May 2019

7. A roadmap for a fair data economy – 08 May 2019

8. A roadmap for a fair data economy – 08 May 2019

9. A roadmap for a fair data economy – 08 May 2019

10. A roadmap for a fair data economy – 08 May 2019

11. A roadmap for a fair data economy – 08 May 2019

12. A roadmap for a fair data economy – 08 May 2019
Thanks
Luukas.ilves@lisboncouncil.net
David.Osimo@lisboncouncil.net

13. A roadmap for a fair data economy – 08 May 2019
Back up

14. A roadmap for a fair data economy – 08 May 2019

15. A roadmap for a fair data economy – 08 May 2019

16. A roadmap for a fair data economy – 08 May 2019

17. A roadmap for a fair data economy – 08 May 2019

18. Data economy as sustainable engine for Europe
Jürgen K. Bott, Professor for Financial Management, University of Applied Sciences,
Kaiserslautern
#IHAN
#fairdataeconomy
#EU2019FI

19. Financial Industries’ contribution to
Data Economy as Sustainable Engine for Europe
Prof. Dr. Jürgen Bott
Helsinki, May 8th 2019

20. Agenda of the presentation
1. From the worried look on the traditional European banks towards a rewarding new role
2. Learning from other industries with courage to own business model
3. Banks provide sales promotion for core market segments
3.1 Synchronize banks’ and banks’ customers processes via new data interfaces
3.2 Banks bridge lack of confidence along value chains
4. Improving risk-management and risk-mitigation through systematic use of data which are new to
banking operations
4.1 Credit risk assessment by using maintenance data
4.2 Market-friendly utilization of loan collaterals
5. Modernizing banking supervision, so that banks can make benefits of the data economy a
breakthrough

21. Agenda of the presentation
1. From the worried look on the traditional European banks towards a rewarding new role
2. Learning from other industries with courage to own business model
3. Banks provide sales promotion for core market segments
3.1 Synchronize banks’ and banks’ customers processes via new data interfaces
3.2 Banks bridge lack of confidence along value chains
4. Improving risk-management and risk-mitigation through systematic use of data which are new to
banking operations
4.1 Credit risk assessment by using maintenance data
4.2 Market-friendly utilization of loan collaterals
5. Modernizing banking supervision, so that banks can make benefits of the data economy a
breakthrough

22. Strategic options for banks to gain of Data Economy
a) Continue to be a traditional bank but fully optimize and digitize processes
b) Become a “low-cost manufacturer” of everyday commerce and transactions services (e.g. deposits,
payments and consumer loans)
c) Focus on specific business segments and follow the digitization strategies dominating the served
markets
d) Transform to an end-to-end ecosystem orchestrator
Source: McKinsey: Banks in the changing world of financial intermediation, November 2018.

23. Strategic options for banks to gain of Data Economy
a) Continue to be a traditional bank but fully optimize and digitize processes
b) Become a “low-cost manufacturer” of everyday commerce and
transactions services (e.g. deposits, payments and consumer loans)
c) Focus on specific business segments and follow the digitization strategies
dominating the served markets
d) Transform to an end-to-end ecosystem orchestrator
Source: McKinsey: Banks in the changing world of financial intermediation, November 2018.

24. Learning form other industries
with courage to own business model
Sale of data to third parties for
marketing purposes
• Copycat developed business models
• Do not confuse banks’ customers
• Trust function is core of banking
Enrich and refine financial transaction
data to enhance banking services
• Improve the quality of banks’ internal
processes
• Offer new services to push sales and
to reduce financial risks (of banks’
customers)

25. Banks provide sales promotion for core market segments
Synchronize banks’ and banks’
customers processes via new data
interfaces
• Goods and services are easier to sell
when financing is included
• Trump à Trump Financial Services
• Bystronic à Cooperation with
Deutsche Leasing
• Systematic sales promotion along
entire supply chains and within
ecosystems (digital business clusters)
Banks bridging lack of confidence
along value chains
• Many different companies along
value chains and within business
clusters, some of which are in
competition with each other
• Bilateral negotiations lead to sub-
optimum and hinder overall
optimisation
• Trusted third party can help to reap
extra gains of agglomeration

26. Consumers buying behaviour
80
70
50
60
30
40
20
10
90
1 2 3 4 5 6 7 8 9 10
Demand
DVDs per day
Sales period
week
Demand
Ordered DVDs

27. Improving risk-management and risk-mitigation through systematic use of data which
are new to banking operations
Credit risk assessment by using
maintenance data
• In high-price segments machines are
in remote-maintenance access
• Maintenance data provide a lot of
insights of machine usage
• Maintenance data could be of high
value for risk assessments
Market-friendly utilization of loan
collaterals
• Liquidation of collateral (used
machine) may have impact on sales
opportunities for new machines
• In trustful relationships banks and
banks’ customers have common
interest on securing price-stability on
market segments for new and for
used machines

28. Agenda of the presentation
1. From the worried look on the traditional European banks towards a rewarding new role
2. Learning from other industries with courage to own business model
3. Banks provide sales promotion for core market segments
3.1 Synchronize banks’ and banks’ customers processes via new data interfaces
3.2 Banks bridge lack of confidence along value chains
4. Improving risk-management and risk-mitigation through systematic use of data which are new to
banking operations
4.1 Credit risk assessment by using maintenance data
4.2 Market-friendly utilization of loan collaterals
5. Modernizing banking supervision, so that banks can make benefits of the data economy a
breakthrough

29. Panel 1: How to put the EU data economy to work?
Janne Känkänen, Director for EU and International Affairs, The Ministry of Economic
Affairs and Employment, Finland
Maria Rautavirta, Director of Data Business Unit, Ministry of Transport and
Communications, Finland
Olli-Pekka Rissanen, Chief Specialist, Ministry of Finance, Finland
Moderator: Jaana Sinipuro, Project Director, The Finnish Innovation Fund Sitra
#IHAN
#fairdataeconomy
#EU2019FI

30. Panel 2: How to accelerate the creation of new
services and ecosystems?
Kimmo Mäkinen, Senior Specialist, Ministry of Finance, Finland
Matti Ristimäki, Director, Data-Driven Business, Tieto
Antti Viitanen, Managing Director, Novartis Finland Oy
Moderator: Jyrki Suokas, Senior Lead, The Finnish Innovation Fund Sitra
#IHAN
#fairdataeconomy
#EU2019FI

31. Way forward
Jaana Sinipuro, Project Director, The Finnish Innovation Fund Sitra
#IHAN
#fairdataeconomy
#EU2019FI

32. sitra.fi | seuraavaerä.fi
@sitrafund