Adapting to Change: An Overview of Successful Digital Businesses

1. ADAPTING TO CHANGE
An Overview of Successful Digital Businesses
Jonathan Marsh
VP IoT
August 2, 2017

2. DIGITAL TRANSFORMATION
● Uber - Taxi Company that doesn’t own taxis
● AirBnB - Hospitality Service that doesn’t own hotels
● Amazon, Ebay - Retailers that sell products they don’t own
● Stubhub - Ticket Reseller that doesn’t run events
● SpotHero - Parking space provider that doesn’t own parking lots
Digital Native Businesses
2

3. DIGITAL TRANSFORMATION
● Netflix - Evolved from video rentals (by mail) to digital entertainment queue
management and recommendation service
● Hilti - Building construction tools as a service (tracking usage with IoT
sensors)
● Safeway- Selling traditional groceries through eCommerce
● Hilton - Bypass check-in and access room through mobile phone
● Starbucks - Mobile order & pay app to avoid waiting in queue
Established Businesses
3

4. How to
Digitally Transform
YOUR Industry?

5. Evolve [Finance]

6. 6
● Attract new customers
● Keep existing customers
● Improve Operations
● Get new revenue streams

7. ATTRACT NEW CUSTOMERS
Contextual marketing:
● Card purchase trends
● Demographics
● Current Assets/Liabilities
● Dynamic budgeting of digital marketing
● Effective conversion ratio
7
Decision
Engine
Budget
Core Banking

8. KEEP EXISTING CUSTOMERS - PREDICTING
CHURNTell tale signs
● Possessing Single Product
● Decrease in Assets
● Decrease in Card Activity
● Decrease in Online Banking activity
● Cancellation of Standing Orders
● Negative Customer interactions
● Customer complaints on social media
8
Static Data - Core Banking
Transactional Data - Core Banking
Credit Card Data
Online Banking Data
Call Center Logs
Social Media Feeds
Where to find them

9. IMPROVE OPERATIONS
Detect Fraud
9
● Convert domain knowledge into real-time queries
● Enable contextual and time bound rules
● Detect unknown types of fraud using machine learning
● Fight against International crime rings with Markov Models
● Use easy querying and visualizations to investigate further

10. IMPROVE OPERATIONS
10
Optimize everything
● Call Center Command Sequence
● Queues at Branches
● ATM Cash Loading
● Pre-fill Forms
● Suggest Standing Orders
● Adjust Loan Payment Dates

11. GET NEW REVENUE STREAMS
Open APIs monetize data, build ecosystems
Card purchase trends
Vehicle Loan/Leasing data
Bill Payment Data

12. Revolutionize Experience
[Retail & eCommerce]

13. USE THE DATA YOU HAVE
13
Status Quo

14. STREAMLINE PURCHASE EXPERIENCE
• One-click ordering (Amazon)
• Mobile cashiers (Apple Store)
• Mobile self-pay (Amazon Go)
• Locating stock - before shopping, while shopping (Home Depot)
• Order ahead (Starbucks)
• Location-specific offers/interactions through iBeacons (Macy’s)
• Automatic - or nearly so - reorders (Amazon Dash)

15. SELL SOMETHING HIGHER LEVEL
• Wrap product in a higher-level subscription service (Blue Apron)
• “Super-loyalty” programs (Amazon Prime)
Services, subscriptions

16. ANCHOR AN ECOSYSTEM
16
Direct customer and 3rd party integration
Credits to Praveen Patchu, Miroslav Kosa, Corpus Delicti,Royyan Wijaya, Oksana Latisheva, from Noun Project
A
P
I

17. Own the identity
[Government]

18. WIDE-SPREAD IDENTITY DEPENDENCY
18
Get a business license
Register a company vehicle
Register tenancy contract
Hire employees
Get goods import permit
Import goods
Get certificate of origin
Pay bills
Companies House
Vehicle Licensing Agency
Land Registry
Department of Labour
Import Controller
Customs
Department of Trade
Electricity & Water Board
Credits to Karthik Sirinivas from Noun Project

19. FEDERATED IDENTITY
19Credits to Karthik Sirinivas, Creative Stall from Noun Project
Companies House
Vehicle Licensing Agency
Land Registry
Department of Labour
Import Controller
Customs
Department of Trade
Electricity & Water Board

20. Control the
environment [IoT]

21. EXAMPLE: GEOFENCING
Smart Analytics
21
● Defining geo fences
● Defining in/out actions
● Define speed alerts
● Sharable visualization
● API-based access
● Historical movement of
the device over time

22. EXAMPLE: ENERGY
22

23. EXAMPLE: HEALTHCARE
23Credits to Royyan Wijaya,Iconosphere, zidney, wilson joseph, Gan Khoon Lay Delware Hossain from Noun Project

24. Core of Digital Transformation:
Turn every problem into a software problem

25. THANK YOU
wso2.com