Presentation on Globalisation and ICT

1. by Dr Dennis Khoo
Ex Group Head & Designer of TMRW by UOB
Author of Driving Digital Transformation & the allDigitalFuture Playbook
ICT & Globalisation
in a complex world
Start

2. Author
Driving Digital Transformation
& the allDigitalFuture Playbook
TMRW by UOB
Designed & Built the first
ASEAN Digital Bank in Thailand
& Indonesia.
Experience
Years: 13 (tech), 19 ( banking)
Ran US$1B complex businesses
MBA, PhD International Business
© All Digital Future LLP taP | 2
Credentials

3. Career
In 10 years time
Knowledge
Of ICT
Impact & Effect
Of ICT
Of Globalisation
© All Digital Future LLP taP | 3
Audience Poll

4. Global Awards
41
NPS Score
+45 NPS for Thailand
+60 NPS for Indonesia
Highly Active
On-track for 3-5M target
Fast on-boarding < 7 mins
© All Digital Future LLP taP | 4
Main Insight Feed Chat Services
TMRW by UOB

5. © All Digital Future LLP taP | 5
Singapore
Malaysia
Thailand
Vietnam Philippines
Indonesia
0 100 200 300
Banking
Penetration
Potential
(%)
Population (Millions)
6
15
3
7 12
12
High
Low
CAMBODIA
INDONESIA
PHILIPPINES
THAILAND
VIETNAM
BRUNEI
EAST TIMOR
MALAYSIA
SINGAPORE
LAOS
Thailand
70M
20%
71%
• Supportive Regulatory Environment
• First mobile-only digital bank
• Supportive Regulatory Environment
• Amongst the first mobile-only digital bank
Indonesia
273M
23%
60%
Number within Circle = retail banking pool in US$B
Source: UOB Website (Investor Relations, 7 Dec 2020), BCG, World Bank (2017), We are social (2019)
Population
YP/YPF (25-39 years)
Mobile Penetration
Population
YP/YPF (25-39 years)
Mobile Penetration
First ASEAN Digital Bank

6. Make TMRW Yours without “bank”

7. © All Digital Future LLP taP | 7
“What makes this playbook particularly valuable is that it is
written by Dennis Khoo, one of the sharpest minds in the industry.”
– Mary Huen, CEO, Standard Chartered Hong Kong
T
raditional banks are facing unprecedented disruption from
challenger banks today. So why aren’t more of them launching
challenger banks of their own? Well, two high-profile examples –
JP Morgan’s Finn and RBS’s Bo – were launched with much fanfare, but
both shuttered after less than a year.
In light of this, the success of TMRW digital bank by UOB, launched
in Thailand in 2019 and Indonesia in 2020, is astonishing. Dennis Khoo,
who created TMRW, shares with us the thinking behind the design of
this revolutionary undertaking. At every step of the way, he and his team
went against established paradigms and bucked conventional wisdom
to build ASEAN’s first digital bank.
Filled with visionary analysis and on-the-ground guidance, Driving
Digital Transformation demonstrates how this success can be replicated
across all industries. For any leader or organisation starting on a major
digital initiative, this book is a must-read.
As group head of TMRW Digital Group, Dr Dennis Khoo
was responsible for the strategy, growth and deliv-
ery of TMRW digital bank, which won Global Finance’s
Most Innovative Digital Bank in Asia Pacific award in
2019. Dennis holds a PhD in Business Administration
and a Doctor of Philosophy for his work in International
Business. He is a WABC Registered Corporate Coach and
has mentored and coached many successful executives.
“Congratulations! You hold in your hands an amazing
case study of a traditional enterprise that took on the
challenge of building the first digital-native bank for
the ASEAN market. It’s a story that delves deeply into
the challenges and opportunities for Asian business
in the digital era. With an insider’s view, Dennis Khoo
shares key decisions made – in business model,
design, technology, culture, and organisational
process – with lessons that are applicable for any
traditional business pursuing digital transformation.”
David Rogers
Author of The Digital Transformation Playbook
Faculty at Columbia Business School
“Dennis is a professional I deeply respect. It is a real
honour to learn from his long experience in building,
running and transforming digital banking and digital
banks. He has a unique combination of deep knowl-
edge in technology and banking, systems thinking
to pull together interactive components and practi-
cal experience running the businesses. I hope this
book will be a great support and help to the many
people who are building, running or transforming
digital banks or digital banking, and more broadly
who want to make a real business difference in the
fast-changing digital world.”
Jungkiu Choi
Partner and Managing Director,
Boston Consulting Group
“If you are on a journey of creating a #digital enter-
prise, this is a best-in-class ‘cookbook’ – full of real
experiences, useful frameworks, and deep thinking
about the processes from A to Z. Thank you, Dennis,
for making this great material accessible to all!”
Gabriel Lazaro
SVP, Head of Digital, Chubb International
“Everyone is doing digital transformation today. Yet
Dennis brings the rare combination of real expe-
rience in building digital banks and the thought
discipline to organise it for us into this step-by-step,
end-to-end playbook. Because it is rooted in ever-
green principles covering customers, technology and
leadership, I can see his approach applying to busi-
nesses beyond Fintech. A tour-de-force of thought
discipline and comprehensive pragmatic advice.
Highly recommended!”
Tsun-yan Hsieh
Founder & Chairman, LinHart Group
Former Senior Partner and Global Leader of
McKinsey’s Organization and Leadership Practice
“Driving Digital Transformation articulates the future
of banking and what banks must do to survive in
the clearest, most compelling and thought-provok-
ing way that I have come across. The principles
described in the book are not just the typical anec-
dotes but a well-thought-out methodology on how
to look at the transformation challenges. I believe it
is a must-read for CEOs of any company facing the
threat of digital disruption.”
David Sosna
CEO, Personetics
“Dennis takes the reader on the exciting journey of
digital transformation, from the perspective of a
business leader and practitioner in the complex oper-
ating environment of financial services in Asia. Filled
with strategic insights as well as practical tips, this
book is a must-read for executives in any industry.”
Andrew Chia
CEO, Standard Chartered Indonesia
Dennis
Khoo
Driving
Digital
Transformation
Lessons from Building the
First ASEAN Digital Bank
DRIVING
DIGITAL
TR ANSFORMATION
Dennis Khoo
Marshall
Cavendish
Business
BUSINESS/BANKING
ISBN 978-981-4974-58-5
,!7IJ8B4-jhefif!
How to design & deliver a complex
transformation

8. © All Digital Future LLP taP | 8
Low-cost
Connectivity
Low-cost, powerful Computing &
Mobile Devices
Matching
Platforms
Service &
Experience
Comms & New
Media Platforms
(e.g., Facebook, Instagram,
WhatsApp, WeChat, Netflix,
Spotify, etc.)
(e.g., Deliveroo, Digital
Banks/Banking, Amazon,
Taobao, etc.)
(e.g., Uber, Grab,
Carousell, AirBnB, Upwork,
etc.)
Reach
& Scale
Rent
vs Own
Competition
Data
The Digital Revolution

9. © All Digital Future LLP taP | 9
Source: World Economic Forum, Surviving Digital Disruption
What should be the title of this Slide?

10. © All Digital Future LLP taP | 10
Disruption varies by industry

11. Bain, 2017
95%
PWC, 2019
75%
Forbes, 2016
84%
McKinsey, 2019
70%
Everest Group, 2018
78%
BCG, 2020
70%
© All Digital Future LLP taP | 11
Most Transformations in incumbent
companies fail

12. • Personalise
• Proactive anticipation
• Influence Decisions
Engage Online
• Replace Human Action
Robotics
• Deliver & Track Goods
Logistics
Customer Purchase & Payments
Selling Online
• Resolve problems online
• Enable staff
Servicing Online
• Better Decisions
• Replace Humans
Data-Driven Decisions
• Supply-Chain Management
Raw material or
Intermediate supply chain
Create Physical Goods
Manufacturing
Backend Transformation
Company-wide Transformation
Front-end Transformation
Core
Business
Systems
© All Digital Future LLP taP | 12
Because they are complex

13. digitisation digitalisation digital transformation
Business
digitisation
digitalisation
process re-
engineering
design
people
customers
business
IT
measures
innovation
leaders
© All Digital Future LLP taP | 13
And involve more than just digits

14. be
visionary
take
risk
Ship
it
design
digital-savvy
leaders
capabilities
empower
people
work in
new ways
clear
strategy
tech
gap
think
big
data
measure
ROI cybersecurity
agile
ask
Why
culture
change
scale
partners
embrace
change
prioritise
collaborate
define
think
customer
integrated
business-
led
leadership
cloud
ambition
eco-
system
communication
© All Digital Future LLP taP | 14
Lots of confusing parts (success tips)

15. Lots of disjointed “what” & “why”
design
be
visionary
Take
risk
Ship it
digital-savvy
leaders
capabilities
work in
new ways
clear
strategy
tech
gap
think
big
data
measure
ROI
cybersecurity
agile
Ask
Why
culture
change
scale
partners
embrace
change
priority
collaborate
define
think
customer
integrated
business-
led
leadership
cloud
ambition
communication
eco-
system
© All Digital Future LLP taP | 15
No method or ”how” exists

16. No wonder
that failure
rates are so
high!
© All Digital Future LLP taP | 16
Like piecing a jigsaw with no cover

17. vs Design, Process & Tech
Tech Only
Internal Silos
Misaligned
on the latest solution
Fixated
Overwhelmed
Complexity
Desirable, Viable & Feasible
Ideas ≠
Innovation
Can’t attract
Lack Talent
© All Digital Future LLP taP | 17
Why complex business
transformations fail?

18. Architect Engineer Builder
Ideas -> insights
Designer
Observations
-> insights
Design
considerations
Business
feasibility
Product & service
development
Process
Journey/
data
mapping
Journey/UI development
App/web
UX/UI
Product,
service & biz
model
requirements
Stories
Technology
Agile
development
Tech
requirements
Software
development
Standups
Demo
© All Digital Future LLP taP | 18
Tech Only vs Design, Process & Tech

19. © All Digital Future LLP taP | 19
Get meta-data right No paper or PDF forms
Data-
metadata
integrity with
full lineage
at source
Data lifecycle management &
monitoring tools
Contextual information always
preserved across channels
Well-defined data dictionary
with descriptor fields
Catalogue & business rule
library
Establish full
lineage at creation
Single source of
truth - no
duplication of
data
Change control & auditability
Data quality rules overcome
missing or poor quality data
Governed by top
management
Framework, policies, SOPs
Definition conflict resolution
process & tools
Centralised
creation,
description &
maintenance
Timestamps recorded for all
customer submissions
All services and applications are
authenticated
Ability to lift information from
Company Constitution, IC,
passport etc.
Existing customer information
is prefilled as a rule
Use signature recorded in
Docusign at onboarding in
exceptional cases
No forms require signature
Form creation is centralized at
CDO unit
No paper or
PDF forms
PDF form
approved by MC1
on exception basis
Almost all services
available online
1 management committee
Digital banks are a design challenge

20. © All Digital Future LLP taP | 20
Powering the software factory
Source: Understanding Design Thinking, Lean, and Agile by Jonny Schneider

21. D
E
V
E
L
O
P
M
E
N
T
F
O
C
U
S
Tech requirements
SW development
Standups
Demo Stories
Agile
development
(Agile-at-scale)
P
R
O
C
E
S
S
F
O
C
U
S
Journey development
(Lean Six Sigma)
© All Digital Future LLP taP | 21
Building the software factory
Stage Process Focus
D
E
S
I
G
N
F
O
C
U
S
Ideas -> insights
Observations -> insights
Design considerations
Business
viability & feasibility Requirements
Product, Service & Biz
Model development
(Design & Design
Thinking)
Journey and data
mapping
App or web user
Experience and Interface

22. Technology Business
He doesn’t
know what
he wants.
Why is it
always so
expensive?
I need all the
features,
cheap and
very flexible
I can’t do
magic.
If it’s agile, I
can change
my mind
later
Agile
requires
even more
discipline.
© All Digital Future LLP taP | 22
Misaligned due to internal silos