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Swisscom's Transformation & Artificial Intelligence - KPMG Audit Corporates Day 2018

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Swisscom's own transformation story as well as a presentation on the topic of Artificial intelligence: AI applications can help businesses in many different areas. They are particularly suitable for analysing large quantities of data in the shortest possible time and finding new solutions to complex problems.

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Swisscom's Transformation & Artificial Intelligence - KPMG Audit Corporates Day 2018

  1. 1. Audit Corporates Day Swisscom’s Transformation and Artificial Intelligence Milos Radovic, Senior Business Developer Dr, Andreea Hossmann, Head of Data Science
  2. 2. Digitalization! What a buzzword.
  3. 3. Digitalization everywhere!
  4. 4. «You can‘t just buy digitalization off the shelf!
  5. 5. «Digitalization is a complex but very interesting digital journey to change»
  6. 6. New technologies can help to accelerate change Coming in waves it will changes our business 1 2 3 4 Mobility & Connectivity Devices like Smartphones, Tablets and the mobile Internet. Mobile connectivity is omnipresent. IoT & Virtualization Physical things will merge with the cloud. Smart data, virtual reality and virtuallized systems and networks. Artificial Intelligence Machines will learn and decide independently. Intelligent analysis of huge amounts of data. Robotics. Blockchain. …? We don‘t know what the future brings. But we know that the next wave is on its way. 2007 today 2020 2030
  7. 7. The speed of change increases Linear growth can mean exponential failing Growth Time Exponential Linear Disruption
  8. 8. Digitalization changes customer behavior Double the data for mobile usage per yearx2 Videos on Demand per month580Tsd. Customers watch delayed/prerecorded TV65% Under 50 use fixed telephony10% …and expectations.
  9. 9. Proven business models dissapear… …and it hurts. «SMS was once a 400-Millionen-Business – today, it dosen’t exist anymore. Textmessages were simply replaced by the web based service WhatsApp, an Internet-Company.» Der Bund
  10. 10. New Competitors
  11. 11. Innovation means movement Time New Business Traditional Business 70 %of the Swisscom revenueis made with productsthat didn’t exist 10 years ago. Revenue
  12. 12. A big challenge Catch-Up with the speed of technology Adoption Pace
  13. 13. What we’ve learned It‘s more than just technology Technology Agile development and organizations Humans first
  14. 14. We need a new culture.
  15. 15. Learn and accept failure
  16. 16. Form a new leadership Develop skills deliberately Shape the future – manage consistently Strengthen people – Learn and Shape Entrepreneur Trainer Connect forces – work together Networker Be aware and – develop your strenghts Self-Management
  17. 17. Keep your eyes on the next wave Data is the basis for artificial intelligence, robotics and much more Artificial Intelligence Blockchain 3 Robotics
  18. 18. Is artificial intelligence a threat or a chance?
  19. 19. The Why
  20. 20. What is this?
  21. 21. The Past!
  22. 22. Artificial Intelligence is the next step
  23. 23. The machine reaches out to us. Paradigm shift:
  24. 24. Paradigm shift: The machine reaches out to us Using a machine Old world Having a conversation New world
  25. 25. Images Speech Understanding of structured and unstructured data Understanding of structured and unstructured data What Distinguishes Our Brain from a Machine Texts Images SpeechTexts
  26. 26. The How
  27. 27. The AI Dream Team > Data Science / AI Solution Design > Data Exploration > Data Labelling > Machine Learning Model Creation (supervised or unsupervised) > Machine Learning Model Evaluation > AI Solution Design • NLP – Text Classification, Sequence Modelling etc. • Speech – Keyword Spotting, Domain Adaptation, Low-resource Languages • Designs • Development • Native App Development • Progressive Web Apps • Web Development • Back-End Solutions • Technical Advice • Scrum/Agile Development • Software Testing • User Experience Testing • Operation • Integration
  28. 28. Partnerships with leading AI research institutions Lausanne Martigny Zürich Lugano
  29. 29. Digital Transformation Fund Scope of investment Investment topics Telecom and IT Infrastructure Artificial Intelligence Cybersecurity 40% 40% 20%
  30. 30. The What
  31. 31. «A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.» Paul Krugman
  32. 32. Legal MarketingCustomer Service Human ResourcesCustomer Experience Security
  33. 33. Companies face countless service requests on a daily basis > 1.000.000 Text service requests in 2016 > 13.000.000 Voice service requests in 2016 When does my cell phone contract expire? I had a defect router delivered to me. Can you help me, please? How do I receive the newest SAP update? I have a software problem. Can you call me back?
  34. 34. Customer Service Is Increasingly Personal own language own context fits the brand
  35. 35. 30%of Internet searches will happen without a screen by 2020 The Number of Interactions between Companies and Customers Is Exploding Especially Speech Interactions with Machines Huge Challenge for Customer Service
  36. 36. Customer Agents I have a problem with… Thanks! I would love to help you! 1 Suggested Solution A 2 Suggested Solution B Messaging Social Call Mail / Fax E-Mail Personal Assistant AI for Customer Service
  37. 37. Hotlines – 0800 800 800 1.10 CHF 50% of all contacts 13 M calls per year 7 min average handling time cost per minute
  38. 38. Search Best Solution for Agents Best Solution for Customers Virtual Assistant The Way to your Digital Assistant Journey:fromanIntelligentSearchtoaCutting-edgeAIBot
  39. 39. It’s time for a demo
  40. 40. Looking Ahead Meta-learning > Use the data more efficiently > Converse with humans in text and speech > Focus on the user!
  41. 41. Merci! Artificial Intelligence for your Business

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