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

Milos Radovic
Milos RadovicDigital Business Development - Digital Leader and Lecturer for Digital Marketing, Mobile Business and Customer Experience at Swisscom
Swisscom's Transformation & Artificial Intelligence - KPMG Audit Corporates Day 2018
Audit Corporates Day
Swisscom’s Transformation and Artificial
Intelligence
Milos Radovic, Senior Business Developer
Dr, Andreea Hossmann, Head of Data Science
Digitalization!
What a buzzword.
Digitalization everywhere!
Swisscom's Transformation & Artificial Intelligence - KPMG Audit Corporates Day 2018
«You can‘t just buy digitalization
off the shelf!
«Digitalization is a complex but
very interesting digital journey to
change»
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
The speed of change increases
Linear growth can mean exponential failing
Growth
Time
Exponential
Linear
Disruption
Swisscom's Transformation & Artificial Intelligence - KPMG Audit Corporates Day 2018
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.
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
New Competitors
Innovation means movement
Time
New Business
Traditional
Business
70 %of the Swisscom revenueis made with productsthat didn’t exist
10 years
ago.
Revenue
A big challenge
Catch-Up with the speed of technology
Adoption
Pace
What we’ve learned
It‘s more than just technology
Technology
Agile development
and organizations
Humans first
We need a new culture.
Learn and accept failure
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
Keep your eyes on the next wave
Data is the basis for artificial intelligence, robotics and much more
Artificial Intelligence
Blockchain
3
Robotics
Is artificial intelligence a
threat or a chance?
The Why
What is this?
The Past!
Artificial Intelligence
is the next step
The machine
reaches out to us.
Paradigm shift:
Paradigm shift:
The machine reaches out to us
Using a machine
Old world
Having a conversation
New world
Images
Speech
Understanding of structured
and unstructured data
Understanding of structured and
unstructured data
What Distinguishes Our Brain
from a Machine
Texts
Images
SpeechTexts
The How
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
Partnerships with leading AI research institutions
Lausanne
Martigny
Zürich
Lugano
Digital Transformation Fund
Scope of investment
Investment
topics
Telecom and
IT Infrastructure
Artificial
Intelligence
Cybersecurity
40%
40%
20%
The What
«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
Legal MarketingCustomer Service
Human ResourcesCustomer Experience Security
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?
Customer Service Is Increasingly Personal
own language own context fits the brand
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
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
Hotlines – 0800 800 800
1.10 CHF
50%
of all contacts 13 M
calls per year
7 min
average
handling time
cost per minute
Search Best Solution
for Agents
Best Solution
for Customers
Virtual
Assistant
The Way to your Digital Assistant
Journey:fromanIntelligentSearchtoaCutting-edgeAIBot
It’s time for a demo
Looking Ahead
Meta-learning
> Use the data more
efficiently
> Converse with humans
in text and speech
> Focus on the user!
Merci!
Artificial Intelligence for your Business
1 of 44

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

  • 2. Audit Corporates Day Swisscom’s Transformation and Artificial Intelligence Milos Radovic, Senior Business Developer Dr, Andreea Hossmann, Head of Data Science
  • 6. «You can‘t just buy digitalization off the shelf!
  • 7. «Digitalization is a complex but very interesting digital journey to change»
  • 8. 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
  • 9. The speed of change increases Linear growth can mean exponential failing Growth Time Exponential Linear Disruption
  • 11. 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.
  • 12. 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
  • 14. Innovation means movement Time New Business Traditional Business 70 %of the Swisscom revenueis made with productsthat didn’t exist 10 years ago. Revenue
  • 15. A big challenge Catch-Up with the speed of technology Adoption Pace
  • 16. What we’ve learned It‘s more than just technology Technology Agile development and organizations Humans first
  • 17. We need a new culture.
  • 18. Learn and accept failure
  • 19. 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
  • 20. Keep your eyes on the next wave Data is the basis for artificial intelligence, robotics and much more Artificial Intelligence Blockchain 3 Robotics
  • 21. Is artificial intelligence a threat or a chance?
  • 26. The machine reaches out to us. Paradigm shift:
  • 27. Paradigm shift: The machine reaches out to us Using a machine Old world Having a conversation New world
  • 28. Images Speech Understanding of structured and unstructured data Understanding of structured and unstructured data What Distinguishes Our Brain from a Machine Texts Images SpeechTexts
  • 30. 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
  • 31. Partnerships with leading AI research institutions Lausanne Martigny Zürich Lugano
  • 32. Digital Transformation Fund Scope of investment Investment topics Telecom and IT Infrastructure Artificial Intelligence Cybersecurity 40% 40% 20%
  • 34. «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
  • 35. Legal MarketingCustomer Service Human ResourcesCustomer Experience Security
  • 36. 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?
  • 37. Customer Service Is Increasingly Personal own language own context fits the brand
  • 38. 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
  • 39. 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
  • 40. Hotlines – 0800 800 800 1.10 CHF 50% of all contacts 13 M calls per year 7 min average handling time cost per minute
  • 41. Search Best Solution for Agents Best Solution for Customers Virtual Assistant The Way to your Digital Assistant Journey:fromanIntelligentSearchtoaCutting-edgeAIBot
  • 42. It’s time for a demo
  • 43. Looking Ahead Meta-learning > Use the data more efficiently > Converse with humans in text and speech > Focus on the user!