Even though it means different things to different people, Digital is not just a fad or a trend. It is also not just about mobile, cloud and social networks. Digital is actually an evolutionary step in how organisations with linear value chains are embracing an exponential business model with ‘CUSTOMER’ and ‘TECHNOLOGY’ at its centre. This presentation explains Digital transformation in context of the 4th industrial revolution, introduces some key trends and proposes a simple 3C+3P framework to analyse digital impact on industries. Insurance as a case has been explained in this presentation through this framework.

1. Digital Transformation
Explained through a practical industry framework and context
Talk for ISB students on 20th June 2016 - Make ‘Technology & Data’ your surfboard
Ayush Gayaprasad - Principal Consultant (Management consulting)
20th June 2016

2. 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 frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Conclusion

3. 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 operational models
4. Understanding ‘Digital’ impact on industries
• 3C +3P frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Questions and Answers

4. 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 Advisoryand 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 inBenelux/India.
• Publishing blogs and articles at various CxO targeted magazines inEurope
• Coaching on “Intercultural sensitivities inglobal teams”as a hobby!

5. 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 probabilitytheory!
And you all need to track the mistakes inthis analysis J

6. 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 operational models
4. Understanding ‘Digital’ impact on industries
• 3C +3P frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Conclusion

7. 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 locationin
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 aboutthe retreat
> Being a volunteerwith Isha foundation as my CSR initiative; was aware of the program anyways

8. The suit and shave challenge
> Chances of Ayush landing in a remote locationin
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)
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.

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

10. 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
ONDERHOUDBAARHEID
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
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 locationin
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
> 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

11. 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 locationin
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
> 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 intuitionfactor (confidence factor of getting a haircut in a place where they
part-time as nariyal cutters) = 0.00001*0.5 =0.000005

12. The suit and shave challenge
Probability of Ayush being shaven
= 0.1*1*0.1*0.064*0.0000005
= 0.0000000032
i.e. Less than 1 in a Million
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.
Why bother?

13. > 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
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.

14. 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/

15. 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 operational models
4. Understanding ‘Digital’ impact on industries
• 3C +3P frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Conclusion

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

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

18. Exponential business models

19. 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 themselvesin the 4th industrial
revolution and facilitating exponential models.
Autonomous
vehicles
RPA IoT MPoS
3D printing
FinTech
RegTech Drones
Wearables
Cloud/platform
services
Big data
AI
AI
People centric trends (Agile/Dev-ops/Digital skills etc.)

20. 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 operational models
4. Understanding ‘Digital’ impact on industries
• 3C +3P frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Conclusion

21. 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 inthe role of participants and in particular competitioninthe business eco-system
The 3P (aspects) ofDigital 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)
DecisionMaking Connectivity Automation Innovation

22. Example – Insurance industry
Customer Company Competition
Technology • Multi-channelaccessibility
(web/mobile/advisors/..)
• Newrisk classes ‘Cyber-
insurance’;Internet-of-Things
• Data protection sensitivity*
• Open interoperabilitywith hospitals;
payment hubs and otherstakeholders
• Drones for damage assessment
• Fraud detection/automation in claims
• Securityby design
• Decision enablement through Data
analyticstechnologies
• Regulation Tech*
• ‘Telematics’ asfuture 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’
• Standardproducts
• ‘White labels’
• Local vs Global platforms
• Direct comparison sites
People • Omni-channelexpectation
(education level;high service
expectation)
• Voice through ‘socialmedia’;
expectation ofco-creation
• Agile workforce and Dev-ops focus on
workforce
• NewCustomer segments (pet etc)
based on latent needof individuals
• Customer Dataas
competitive advantage
Understanding changes to Insurance value chain w.r.t Digital transformation
* EU Data protectionAct 2016

23. > Customer co-creation (not a target-segment) with
simple productadd-ons is possible with big data
analytics (e.g. travel insurance with pet insurance*)
> Can call center know that phone customer was checking
new coverageon 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 subrogationrecoveries

24. Data and Analytics enabling other industries
> Macy’s Inc and real time pricing (73 millionitems)
using SAS technology
> XX – lotteryplatform (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 situationpresenting 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

25. 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 operational models
4. Understanding ‘Digital’ impact on industries
• 3C +3P frameworkand 4 buckets of digital trends
• Insurance industry review
• Digital changes in Insurance
• Digital changes in other industries
5. Conclusion

26. Congrats on being part of a great course
and
best wishes for your continued success!

27. Contact
+31681845689
ayush.gv@sig.eu
@AyushGV
Questions ?
ions ?
https://nl.linkedin.com/in/ayushgv

28. Additional Example
(AIIT) Auto, Industrial, Infrastructure and Travel
> Automations
> Flexibility/Interoperability== Acquisitions
> Operational excellence
> Visibility/Transparency invalue/cost/waste
> Contract manufacturing
> Skills
SMART factory: Assembly line (Cobots, Robots, AI, IoT)
Electric and sustainabilityopportunities
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