THE MISSING LINKnewfrontier.eu/content/download/1099/14396/file/The+Missing+Link... · “I’m...

Change is coming. Fast.

Flying with the wings of Digital.

missinglink

the

__issue 01

photodejan turk, p26

“I’m fascInated

by how startups are

re-ImagInIng the nature of

old IndustrIes through

new technology.”_georg westerman, p 16

-

-

Dear Reader, New Frontier Group is the fastest growing IT services company in Central and Eastern Europe. Our 1,800 people focus on bringing business value to the region’s top thousand enterprises. We have recently realized that the digital economy represents not only a great opportunity for, but also a threat to our clients’ and partners’ businesses.

while many companies try to use a purely It approach to expand their business into the digital economy, we see it as primarily a business issue, especially for the b2b enterprise model. every company needs to create its own digital strategy, to define where it wants to be in 3 to 5 years and then to track the path back to today’s situation – i.e. to define their digital transformation.

the missing link magazine shares best practices, ideas and solutions and analyzes the results of digital transformation, helping create the missing link between already automatized, controlled and monitored internal processes and the new necessities for opening up, and connecting with customers, partners and the outside world transparently.

we invite you to share and participate; let us work together on finding the best way to grow your business further by embracing the digital economy opportunity.

EDITORIAL__--

issue one__--

09//

interview: alexander osterwalder, entrepreneur_page036

- 10//

Dollar shave club_page042

- 11//

interview: james mcquivey, Forrester_page044

- 12//

Insight on banking: Business as usual... Not._page048

- 13//

fidor bank_page050

- 14//

Interview: Saša Bilanovic, Raiffeisen Bank_page052

- 15//

omnichannel banking_page056

- 16//

Portfolio: New Frontier Group_page059

-

01//

business transition: and byte

became king_page04

- 02//

The Missing Link Story:We are not

talking fossils_page08

- 03//

amazon: river of no return_page012

- 04//

Interview: George Westerman, MIT_page016

- 05//

how digital are you?_page022

- 06//

Insight on telco: Call for action_page024

- 07//

cover story: dejan turk, si.mobil_page026

- 08//

Cloud services brokerage_page034

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for digital magazine with additional content scan here

branIslav vujovIc__ president of new frontier group

03issue 01/2013

content__in this issue

Andbyte

becameking

-

a dramatic upheaval is going on. we live in an age of rapidly changing business models triggered off by digital technologies that are radically changing our communications, our organizational capabilities, and our mobility. It’s comparable only with earlier sea changes like the inventions of steam power and electricity.

missing link magazine

04issue 01/2013

introduction__from atoms to bits introduction__from atoms to bits

issue 01/2013

05

ts arrival on the scene as a precise distribution chan-

nel and social rendez-vous point has been truly charismatic. Desires and needs that

formerly entailed long routes and tedious procurement procedures can today be met in completely different ways; simpler and above all practical ways. So old products that were vulnerable are now dis-appearing and turning up again as virtual services; or they are revert-ing as files or as parts of streams. We have only to consider how we nowadays buy and read books, how we book hotels, do our banking; or think about software in the cloud. It is, however, not just these sectors that have been revolutionized by all this.

The change is completely unstoppable. The search for the Missing Link is pervading all busi-ness sectors and industries and both established companies and startups; the search is truly on

for the vision or a master plan for directing development from the industrial to the digital business model. Some enterprises have blazed the trail well in that they have, for instance, approached one stage of it all. Selling music, not CDs. Not disposing of cars at any price but understanding mobility as a service. That’s what the Daimler group has recently been doing with its hybrid consisting of car sharing and a car-rental business under the Car2go brand.

With Car2go, when customers want to get from A to B quickly within a city, they rent a 2-seater Smart. Spontaneously. Without having to fetch the vehicle from somewhere miles away and then having to get it back there. A glance at the Smartphone app is enough: Ah, the next Smart is parked just over there! The car can be reserved online right away.

Daimler’s Business Innovation department came up with the Car2go idea back in 2007. Sales of cars were stagnating owing to the impending financial crisis. The resourceful vehicle manufacturers

The Internet today is akin to the boilers

and bulbs of those bygone times.

metro-polItanopera

-

-

photo__

apps for mobile devices. That was a step too far for some opera purists but many opera enthusiasts across the world have taken Gelb to their hearts for it.

Would this perhaps be a good approach for an enterprise seeking to find its own Missing Link? Finding what really motivates the customer and taking it to him. Indulging in real interaction. Making his life as simple as possible.

Just as IKEA is currently demonstrating. The Swedish furniture giant’s brand-new catalogue presents a truly shining example of how to go about extending the scope of digitalization by using a playful but shrewd application of computer-assisted Aug-mented Reality. A supplementary, free-of-charge app makes it possible. Customers can position 90 products from the catalogue in their homes experimentally and, of course, virtually. They see how they would look, true to scale and in their precise destined positions. It’s done by using the app to scan the page concerned in the printed catalogue. One then places the catalogue at the desired point in the room, captures the area concerned with tablet or smartphone, and thus sees how the new sofa would actually look in the flat.

links,photos__ www.metoperafamily.org www.car2go.com www.ikea.com

__IKEA catalogue app--

augmented reality conquers IKea

resolved the sales slowdown in an unusual way. They put their money on the social trend towards using things instead of owning them, to accessing them instead of having them exclusively. The idea escalated rapidly from the trial operation that took place in the German city of Ulm. Today Car2go Smarts are running about in 22 cities in six countries.

A sales crisis is not always needed to trigger off innovation. Visionary entrepreneurs and managers frequently stimulate technological opportunities in such a way that transformation comes of its own accord. That happened in the case of Peter Gelb, who was appointed General Manager of the Metropolitan Opera in New York in 2006. He extended the Met’s business premises by a hundred hectares and catapulted it from a local into a global opera house. His “The Met: Live in HD” initiative started in the very same year. Suddenly performances could be seen not just in the Broadway opera house but were also transmitted live to 1,700 cinemas in 50 countries. Last year the total of tickets sold actually reached 10 million. The Met is now being consistent in offer-ing subscribers an HD streaming service via the Internet with its own

Although already extremely practical, the use of Augmented Reality will become even more realistic in the near future. With the introduction of Google Glass heralded for 2014, tablets and smartphones are themselves going to be superfluous; and a Billy bookcase will then just appear before one’s eyes, i.e. as it were “in the flesh”.

I


06 07issue 01/2013 issue 01/2013

introduction__from atoms to bitsintroduction__from atoms to bits

nthropology and IT normally have hardly any points of

contact. A few more centuries will probably pass before future gen-erations of researchers ask what exactly did homo sapiens contrib-ute to the innovative technologies at the start of the 21st century. It might then be that future anthro-pologists will search for another missing connection – that between analogue people and homo digitalis. However, New Frontier Group – founded in 2006 in Vienna and now operating in 16 countries with a total global workforce of more than 1,800 – is already applying itself to

this very Missing Link link right now. The company, which focuses on IT solutions, is actually concerned with it all day and every day, all over the world, because of the sea change in the business world aris-ing from the influence of bits and

bytes. New Frontier Group is, though, fac-ing the future in other, non-anthropological respects. It’s not all about fossil finds at all, but about provid-ing companies with help at the start of their entrepreneurial forward leaps from industrial to digital,

followed later by help in the cockpit once they are in flight.

It’s all about ongoing, inte-grated thinking – for good reasons. Many companies implement single solutions based on social tools and products but most of these projects fail to deliver the results expected. New Frontier’s experience is that true transformation only happens if the solution addresses three areas while simultaneously adjusting and changing core business processes: employee engagement, client engagement and the enabling of business model innovation. Integrated part of those processes is the proper delivery of content through multiple channels, devices and personalized for users’ inter-ests. The solutions developed from New Frontier’s observation of the Missing Link build precisely on this.

we are not talking fossils

customerengagement

employeeengagement

business modelinnovationcontent and

delivery

The Missing Link is helping companies to generate new sources of revenue

A

annual report 2012__ new frontier group

founded 2006In vIenna

16 countrIes1,800 total global

worKforce

www.newfrontIer.eu

-

-

link__

missing link

methodology--

missing link value creation:

// more information__p58

creatIng &leveragIng the content/digitalpublishing__

creatIng the tractIon/performanceand proximitymarketing__

creatIng the socIalexperIence/brainpower/ibanking/ulympix/discourse__

creatIng the marKet place/cloud servicesbrokerage__


08 09issue 01/2013 issue 01/2013

introduction__the missing link storyintroduction__the missing link story

Such social solutions help identify customers and prospects, deliver appro-priate information easily, and actively integrate clients into sales, delivery and support processes.

They build on de-velopment. The ultimate objective of Missing Link solutions is to enable clients to develop new business models. New

Frontier has done that, for instance, with a Cloud services brokerage solution that opens up new lines of business for telecom companies and enables them to offer infrastructure, platform and software solutions as subscription-based services.

Branislav Vujović, President of the New Frontier Group and its Innovation team leader, sums it up: “We have together plotted a route to create this Missing Link for our clients – to create easy-to-use, intuitive solutions that

will bring about new levels of revenue. In line with this vision, we now have in place a unique set of solutions such as digital publishing, online market place, and social collaboration platforms for internal and external collaboration, all of which are now in active use in world-class corporations.

If you want to make a quantum leap in unleashing the power of

your organization, internally as well as towards your clients, then discover with us what New Frontier Group’s Missing Link portfolio can do for your business.”

They build on the commitment and em-powerment of employees. This necessarily entails finding a way to connect people, available infor-mation, and knowledge so that collectively they act more creatively and are more empowered than individually – a way of making people more responsive, more understanding of clients’ needs, better able to adjust processes, and able to do so faster. Social components are included with micro-blogging, connecting and following col-leagues. Sharing knowledge, experience and expertise is part of the solution as well as ranking and search-ing based on voting, tagging, commenting and liking mechanisms increasing the value of information.

They build on the engagement and em-powerment of customers. The key here is to engage with them in open and transparent collaboration and reshape their com-mitment. New Frontier’s solutions and services address the complete range of activities, from performance marketing and targeted digital marketing to collabora-tive tools for new sales and delivery processes or cloud services brokerage.

_ BrAnIslAv vujovIc

__president of new

frontier group

--

We hAve TogeTher ploTTed A rouTe To creATe ThIs MIssIng lInk for our clIenTs

--

characterIstIcs ofnew frontIer group’smIssIng lInK

solutIons--

actively engageclients

private & secure

workspace

context-sensitiverightsourcingof information

accelerateknowledgediscovery

cross-organization

collaboration

easy internal & external

content sharing

business workflow

integration

Pervasiveenvironment

imProve branding

& image

social elements

real time

mobility anytimeanywhere

increasePenetration

great user experience


010 011issue 01/2013 issue 01/2013

infographic__missing link solutionsintroduction__the missing link story

WWW.AMAzon.coM//

190 million customers--

o, it was not just an ingenious thought; it took a

view of the whole world. Jeff Bezos was just one of the first people to recog-nize the enormous poten-tial of the Internet. The restrictions of the retail trade were thereby lifted: opening times, selling space, national frontiers.

In lieu of them, there moved into the digital sector what the majority of consumers were ignoring in tatty little shops but were finding in the supermar-ket, namely

wide choice, low prices and convenience. Bezos opened his book business based on this far-sightedness at a very distinctive address – on www.amazon.com. Just four years later TIME news magazine conferred the title of “man of the year” on him for the sales

River of no return

success he had by then achieved. Meanwhile, local booksellers com-plained about customers being lost to the Internet

and managers of large retail chains were asked how it had come about that an out-sider computer scientist had managed to take them by surprise on their

own business terrain.

With Amazon Bezos created a River of No Return. Retailing will never again work as it used to, neither with books nor with many other categories of merchandise. “Earth’s biggest selection” – that’s Amazon’s boast today covering 16 product categories. As well as predictable offers such as consumer/entertain-ment electronics, toys, drug store items and sports goods, there are recent additions under the surprising heading of “Collectibles & Fine Art”, including paintings, lithographs and drawings by international artists, including works by Damien Hirst and an original pen-and-ink drawing by Salvador Dali.

info__1994 jeff bezos founded amazon1995 amazon went online2012 turnover reached 61 billion usd--

how one man on his own

revolutionized retailing from

the bottom up.

nmissing link magazine

012 013issue 01/2013 issue 01/2013

story__amazon’s groundbreaking successstory__amazon’s groundbreaking success

succeeded in converting to a new and additional business model as a result

of its know-how and the capacities of its own com-puter centers. It is now offering its own Cloud Computing service with Amazon Cloud Drive. Cost effective and simple to install. Seen this way, there will certainly

be more business sectors that will find themselves flowing down the Amazon, the great River of No Return.

Goods that can be eval-uated and are based on personal recom-mendations are available to order as simply as imaginable by one simple “click”. Goods that do not even have to be traded by Amazon itself but by joint promotion in the territory oc-cupied by the online trading giants can be placed as “offers”. Today, much of this is normal and everywhere on the net but all these conveniences and breaks with taboo were ini-tially Amazon’s innovations, which make the outcome technically explicable.

The top dog of front-end commercial websites is, however, continually devel-oping despite, or because of its success. The former online book dealer has, on the one hand, handled the sector’s next digitalization leap to perfection with its own Kindle E-Book-Reader, with the Kindle Fire iPad-Pendant, and the offers of E-Books linked with them. On the other hand, the company has acquired completely new business fields because it has meanwhile

It is now offering its own Cloud Computing service with Amazon Cloud Drive.

earth’sbiggestselection--

source_ eurostat

25%of comPanies

in CzECh REpubLICselling online

14%of comPanies in sLOvENIA

selling online

12%of comPanies in sLOvAkIA

selling online


014 015issue 01/2013 issue 01/2013

infographic__e-commercestory__amazon’s groundbreaking success

e-commerce insight

these are the products customers get informed about online –

and what they buy online--

source_mc kinsey iconsumer

europe 2011

100%consumers whoresearched &

purchased online

household productsgroceries

furniturehealth and beauty productsclothingfootwearhome decoroffice supplies

electronicscomputer hw/swvideo games dvds / videosbooks

35 60%gone to digital

20 40%

digital battleground

10%

still in store

“ Vision is incredibly important”

dr. georgewesterman

--

//research scientist at mit sloan’s center for digital business

//faculty chair for the school’s executive education course “essential it for non-it executives”

//co-author of the book “the real business of it: how cios create and communicate value”

//and other publications

-

-

info__

interview conducted for new frontier group

A Skype cAll from ViennA to cAmbridge, mASSAchuSettS.

George Westerman has been waiting for it. The scientist sounds right on the ball – unsurprising, as it’s morning for him over there. What’s more, after making a study of digital transformation, he is ready to make an enormous number of profound observations on it.

--


016issue 01/2013 issue 01/2013

017

interview__george westermaninterview__george westerman

g

019issue 01/2013


issue 01/2013

018

38%high tech

35%retail banking

31%travel

33%insurance

30%telecom

24%cpg20%

utilities

12%manufacturing

7%pharma- ceuticals

26%retail

“you need to start thInKIng about what you are goIng to do.”--

_ george WesTerMAn

eorge, you are a research scientist at MIT Sloan’s Center for Digital Business. What – of all things – led you to do a study on digital transformation?

there was a lot in the press about how compa-nies were using social media, analytics and mobile devices. but we always seemed to hear the same stories about high tech companies like apple and google or amazon. we didn’t see many stories about large traditional companies, like manufacturers or insurance companies that have been in business for 50 or 100 years. we knew they were powerful users of technology, but we weren’t hearing about them. so we decided to find out what these traditional companies were doing. how were they succeeding with these new technologies? our team motto was to find “boring companies doing interesting things”.

What have you found out?using interviews and surveys, we studied more than 400 companies over two years. we discovered that most big companies are invest-ing in these new digital technologies. they are applying them in broadly common areas but are getting wildly different results.

we have identified a class of companies that we call digirati. these companies manage digital activities differently. they see digital not as a technology problem but as a transformation opportunity. they do it through two types of capa-bilities. they not only invest in digital technolo-gies to change customer experience, operations, or their business models but, very importantly, they also invest in leadership capabilities. by putting the two types of capabilities together, digirati can do things that other firms can’t. and our analysis shows that they are 26% more profitable than the competitors in their industry.

Could that be seen as a pattern every company can follow?

the number one thing we have seen is that wherever these activities start in a company, the transformation really works when it’s driven top down. transformation needs to be organized around a unified vision that people can relate to. a really interesting example is the french yellow pages company “pages jaunes”. they make those big, thick, local business directories that are delivered to every house. I don’t know about you, but I haven’t used one of those in years.

By chance, I got one sent recently, but as you said I sent it back straight away.

that’s the situation pages jaunes was in. revenue was declining 10 % every year because people no longer use these directories; they use google or other services instead. the company’s ceo tried to move the company into digital services but didn’t get much traction until he came up with a new vision. he said: “listen guys, we are not in the business of making yellow books. we are in the business of connecting small businesses to local customers. books are just a technology, and that technology is dying. that’s why we need to go digital”. that grabbed people’s attention and helped them understand the need to change. executives then invested in helping people make the change. they told workers “we are going to teach you how to sell webpages, we’re gonna teach you how to de-velop online content instead of paper content.” you see, vision is incredibly important.

Is there a protected business area where Digital Transformation is out of the question?

we were surprised. we found that every large industry we studied already has one or more digirati. that means, even if you are in the slowest-moving industries, you need to start thinking about what you are going to do.

What if I don’t see the big idea for a smart new business model?

you may not need a new business model. you may find opportunities to change your customer experience or transform your operational processes. the important thing to realize is this. If you don’t see it, that doesn’t mean it’s not there. one of your competitors will find it. or maybe a startup will develop a way to do your business better than you do.

eBusIness.MIT. edu//

interview__george westermaninfographic__digital transformation

advantage dIgItal

__research from mit center for digital business and capgemini consulting examines how industries are benefiting from digital transformation.--

“ leT’s look for-WArd Ten yeArs.--

What is a good way to start to act?

be alert to what is happening around you. many companies get their employees, and even their customers, involved in idea generation through contests, internal conferences, and social media; they then experiment with some of the ideas.

some companies set up small innovation groups to identify opportu-nities and conduct experiments. that allows you to try some new ideas out while letting most of your people focus on getting their current work done. another very important first step is to build up your leadership capabilities. how will you coordinate and govern digital activities across the firm? how will you develop your digital vision? do you need a digital unit? a chief digital officer? should each business unit do its own thing, or should the corporate office invest in some capabilities?

I’m fascinated by how startups are using new technology to transform the nature of old industries imaginatively. amazon has transformed the book industry and the travel industry is nothing like it used to be. now peer-sharing networks are really catching on. airbnb allows anyone to turn their home into a hotel room. hailo and lyft are invading the taxi industry with easier and cheaper services.

Companies and jobs are going to change in ways we can’t even imagine.”

There are still companies who claim to have hardly any data about their customers.

every company has data. the question is whether the data is in a usable condition. one of the really important things we found in the study is that strong It capabilities are even more important in the digital world than they were in the previous world. If you have very strong It systems, an integrated view of your customers and operations, and strong relationships between your It and business people, then you can do things a lot of compa-nies can’t do.

What possibilities and developments do you see for the future?

let’s look forward ten years. com-panies and jobs are going to change in ways we can’t even imagine. so just think about when the google driverless car becomes a driverless taxi service. when airbnb sells more hotel rooms than hotel chains do. when Ibm’s watson starts to work in my doctor’s or lawyer’s office. these kinds of things are already starting to happen. they’ll start slowly but, when they do come in, we are going to see some major changes.

massachusetts InstItute of technology

photo__


021issue 01/2013

interview__george westermaninterview__george westerman

issue 01/2013

020

how dIgItal

are you? Is your

company already

in the digital

economy?-

question_

Can your customers approach your company via social media, web and mobile?yes__2 pt / no__0 pt

question_

Is one of your core business functions operated digitally – like Marketing?yes__2 pt / no__0 pt

question_

Are you interacting with your company’s ecosystem digitally? E.g. online collaboration with customers and vendors.yes__2 pt / no__0 pt

questionaire solution__p.22

Missing links can be found in all states of transition where

ambitious beings are in search of new frontiers. In the

current transformation of business through digital

technologies, companies need to discover the link bridging the

gap from analogue to digital. Find out in which phase

of transition to a digitally transformed company you are:

0 ptthe euKaryotes

From mono-cell to complex organism. Your evolution is starting now!

… able to use their energy more efficiently. for the first time, the prerequisites for the development of complex cells to higher forms of life were created.

2 – 4 ptthe tIKtaalIK

From water to land.You’re going to explore new land.

184 to 175 million years ago the tiktaalik developed, as the first species having fins with joints and simple lungs. a substantial step towards being able to hunt on land was thus taken.

6 ptthe homo sapIens

From animal noises to human speech. You’ll excel your communication skills.

It is well known that anatomical changes differentiated homo sapiens from other anthropoids. this triggered off our trailblazing power of speech and was the origin of the entire universe of today’s communicative opportunities.

mIssInglInK.newfrontIer.eu

run your digital assessment online:


022 023issue 01/2013 issue 01/2013

questionaire__how digital are you?questionaire__how digital are you?

callfor

action-

This means that the providers must con-stantly invest in their networks in order to keep the infrastructure competitive. Moreover, they remain attractive for their customers only if the service is right and favorably

priced – all of which puts pressure on the average revenue per customer. That pressure is increased further by tightened official regulation and, in particular, by the pressure to reduce roaming costs.

The second challenge is the search for a suitable position vis-à-vis Google & Co. Its services are flourishing and require no infrastructure of their own but shift commu-nications into areas where there is little, if any, profit for telcos to earn.

one might assume that the rapid increase in mobile phone connections all over the world would engender a festive spirit in the upper echelons of the telecommunications industry but the opposite is in fact the case. - -

* __Mid 2013, according to the international telecommunications union (itu)

It’s true that – according to the most recent calculations* – there are about 6.8 billion active con-tracts, compared with only 1.4 billion in 2003, but although this obviously means more communica-tion with cell and smart phones,

tablets and other mobile devices it does not automatically mean more profit. The sector is exposed to two great challenges.

On the one hand it has to satisfy the hunger for broadband capacity

and create platforms such as Google, Apple, Facebook and Amazon with their video, music and cloud services.

Active contracts:

2003 1.4 billion2013 6.8 billion


issue 01/2013

024issue 01/2013

025

intro__telecommunicationintro__telecommunication

ow are Telecom providers finding the current business situation? What are the new trends, and why is the industry moving towards the digital economy?

the current business situation in our industry is challenging. we are under pressure from a very competitive landscape, regulations, over-the-top players, high market saturation and tough economic fore-casts. the trend is toward seeking new revenue potential outside our

core business, seizing new market opportunities and reinforcing custom-ers’ loyalty by taking good care of their needs and providing them with optimum services.

development into the digital economy therefore presents a wide range of opportunities. we can achieve better operational efficiency, increase customer satisfaction via on demand services such as e-care and e-shop, and we can relate to our customers with better roI. many global provid-ers are pursuing the transition to digital providers and offering services

far beyond the telecommu-nications sector as such.

How does your company approach the movement into the Digital Economy?we are working on multiple initiatives to support this transition. one of them is our ever-expanding business cloud services, with which we are finding

new revenue streams and add-ing value to our business offer. along with offering fixed telecommunication services, this enables us to be a full service provider and thus take care of all the needs of our busi-ness customers while sim-plifying and adding value

to their businesses.

the other initiatives are invest-ments to provide superior online ex-perience throughout the customer’s lifecycle. from the customer’s initial

dejan turK, chaIrman of the management board of sI.mobIl d.d.

--

info__

30% market share in Slovenia. Sounds like a resting pillow. But for Dejan Turk this is not enough. The CEO of Si.mobil has further plans.

photos__ mIchael KönIgshofer

--

“a wIde range of opportunItIes”

h



027issue 01/2013issue 01/2013

026

cover story___dejan turkcover story__dejan turk

inquiry via search engines, getting information about our offer on our online channels (such as our web pages and social media channels) in an engaging and easily understood way and buying it online, to getting support and managing it via online self-service, regardless of the device, desktop or mobile being used.

In your opinion, which digital initiatives yield the best business results?

Initiatives that target new revenues can be easily meas-ured and assessed. on the other hand initiatives aimed at building customer relationships and increasing engagement and satis-faction are less tangible. we will only be able to assess some of them after years of practice and improvements.

the power of the social media is, however, undisputable. these channels are an important source of information. we can learn so much from discussions with customers, build relation-ships, gain ambassadors, and acquire important insights that classical measurement tools have failed to reveal. the social media have become a new virtual public place where companies can openly interact with their clients, thus opening up new opportunities.

Why did you decide to become a Cloud Service Broker?

the incentive came through the challenges we were facing in our core business – declining revenues and increasing competitiveness and regulation. while searching for new business opportunities, we realized we can utilize what we are best at – communications, sales, support and other customer-facing processes. combining

that with best-of-breed busi-ness solutions providers, we can address the market with broad, compel-

ling and valuable propositions. we therefore introduced a new range of services for business users named popolna pisarna in june 2011.

That translates The Perfect Office.exactly. popolna pisarna was the first end-to-end offer of business communication solutions in slovenia. with these new services si.mobil is moving on from the mobile services field and becoming an end-to-end provider of It, communi-cations and business solutions. popolna pisarna includes four groups of services: fixed and mo-bile telephony, fixed and mobile Internet, cloud computing services and computer hardware and devices. an important advantage of popolna pisarna (the perfect office) is that it gives busi-ness clients a one-stop communications and business service in one place, as si.mobil takes care of everything.

“The social media have become a new virtual public place.”

link__ www.sImobIl.sI


028issue 01/2013

cover story___dejan turk

the future of telco business

oPerator revenues are going down (% P.a.,

decrease of fixed-line)

increase in data (% P.a., mobile broadband growth)

336 bnusd 2011

1.6 bnconnections 2012

-4% +26%274 bn

usd 2016

5.1 bnconnections 2017

enterPrises are moving to

the cloud

moving from charging minutes to data and the cloud

growing cloud services

the landscaPe is changing

the number of connected devices will exceed the

number of PeoPle on earth by the end of 2013.

sources_idc, cisco, gsma, analyst mason, cloudhypermarket.com

growth in the cloud (% P.a.)

24 bn € / 2017

13,8 bn€ / 2012

everything is mobile

17%cagr of

software-as-a-service 2012 – 2016

56%use webmail services

such as gmail, hotmailor yahoo! mail

34%store Personal

Photos and data online

5xmore cloud comPuting

growth thanoverall it growth

+15%

“New initiatives are more like a marathon than a sprint – it takes time and commit-ment to achieve success.”

- -

revenue 2012: eur 200 mIllIon customers: around 660,000

marKet share: 30%

si.mobil__

//graduated from vienna university in marketing and finance

//started his career at mcdonald’s slovenia – ceo by 1998

//2003 ceo of metropolis media

//2004 head of marketing and sales at si.mobil

//since 2007 chairman of the management board of si.mobil

-

-

info__dejan turk


031issue 01/2013issue 01/2013

030

cover story___dejan turkcover story___dejan turk

How would you describe the results of this initiative? Can you already measure ROI?

after a tough start when we had to establish market position and build aware-ness, sales picked up and we are now tracking successful stories. we often say that new initiatives are more like a marathon than a sprint – it takes time and commitment to achieve success.

How do you see the future of the Digital Economy with regard to your business?

we believe that it could come to resemble the travel industry, which today – seen from the customer’s perspective – is almost totally digital. we want to be among the companies seizing the opportunities and driving the strong tran-sition to the digital world

forward. there are a lot of ideas in our world. It is im-portant to be able to assess them critically and have the means and organization to implement them. we will in future have to rely on the revenues generated also out of our core business.

What do you think will happen to companies in your industry that decide to run their business as before - without innovating their busi-ness model, without embracing the digital economy?

the prognosis for such companies is quite clear. they

“We want to be among the companies seizing the opportunities and driving the strong transition to the digital world forward.”--

are moving in the opposite direction from us so they will face even tougher challenges in the future. In order to keep their margins and profits up in the mid-to-long term, they will have to focus on drastic cost saving and business optimization. put simply, they will be-come “bit part” communica-tions players for the global, over-the-top players.


032 033issue 01/2013 issue 01/2013

cover story___dejan turkcover story___dejan turk

provided automatically; this means application login data is sent to the client afterwards and sales and billing is done via the Telco provider clients’ monthly invoice.WagaMarket provides the marketplace where clients can select ICT and non-ICT services; these are integrated with Telco billing and service partners’ provisioning systems so that no manual efforts after sales are necessary on the Telco site. WagaMarket is

a fully integrated, automatized broker-age platform with a set of predefined local and global services.

Si.mobile – a Telekom Austria group company – started using WagaMarket two years ago and first KPIs confirmed an increase of ARPU (Average Revenue per User/

Customer) because customers decided to buy additional services besides mobile and data services; another result is the improvement of Customer Churn Rate, which is reasonable if a client uses more than one service from one provider.

3rd party services to its clients. Services can be known ICT services like e-mail hosting, domain registration, e-mail to fax, or mass SMS but can also be non-ICT services like “remote assistant”, which are offered and deployed by partners.The “remote assistant” is a shared assistance service for entrepreneurs and SMB clients, who don’t have their own offices responsible for taking phone calls and redirecting requests to

responsible persons. The “remote assistant” does all of this for the client; it is charged and invoiced monthly based on a mini-mum subscription run- time and is included in the Telco clients’ monthly bill. Classic IT services like Microsoft Exchange work in a very similar way. The client selects the service online on the Telco mar-ketplace – like shopping online – and the service is

elco provid-ers’ business is changing rapidly and

traditional telecom business models are outdated owing to liberalization of number portability, investments in new technology (LTE), market deregulation, and platform providers like Amazon or Apple. These factors are ultimately leading to a decrease in average revenue per user (ARPU) and to churning of customers to other providers. WagaMarket, New Frontier Group, helps reshape the business model by offering a Cloud Service Brokerage platform that enables the Telco provider to offer own or

Reshaping telecoms’ business model by creating a new revenue stream

T

__sources: industry analyst firm forecasts

question_

Does the telecom company provide its users with self-service online portal(s) and social consulting?yes__2 pt / no__0 pt

question_

Is the telecom operator offering more than classic services (fixed line, mobile, internet)? E.g. IT cloud services (Ms Exchange, CRM), alongside traditional ICT services? yes__2 pt / no__0 pt

question_

Does your telecom provider offer you support and consulting in promoting your services/products or leveraging your business through mobile applications?yes__2 pt / no__0 pt


Is your telecom provider already

in the digital

economy?


034 035issue 01/2013 issue 01/2013

case__telecommunication questionaire__how digital are you?

global broadband

mobIle on the rIse

--

3,703 millionmobile, 2016

2010

2010

866 millionfixed, 2016

“ we invented the codes to do innovation”

Alexander Osterwalder has a charming smile and every reason to be pleased about things.

First, he lives and works by Lac Léman. Secondly, he has presented a book that has sold 700,000 copies across the whole world. An introduction to the innovation of business models – which we are going to discuss.

--

www.alexosterwalder.com

-

-

link__

interview conducted by new frontier group


036 037issue 01/2013 issue 01/2013

interview__alexander osterwalderinterview__alexander osterwalder

“ We sold 700,000 books in 26 languages”--

ou are encouraging customers to innovate their business. Where do you see the power technology to help innovate their business models?

business models are like yoghurts in the fridge. they have expiry dates. the whole boom in technology has changed business radically and has led to business models expiring faster. the music industry has experienced this violently. other industries like banking or the pharmaceutical industry are experiencing this now. so digital is in general having a huge impact on business models and their shelf lives.

Is every aspect of today’s innovation necessarily based on digital transfor-mation?new business models can happen in any kind of way. It could be revenue streams, new digital channels, it could come from anywhere. so that’s number one and that’s something com-panies don’t al-ways understand. when thinking about innovation, they always first think technology – and I think that’s a bad place to start.

Why?digital is a very interesting component that allows you to play around with your

business model. the choices we can make today are phenomenal. there are a lot of places where we can use digital technologies,

new ways of interacting with custom-ers. but many companies are not yet very good at managing this.

You’ve already named some industries but are there other industries that provide examples of such difficulties?

let me give you two that I know a little bit from the inside. the first one is the publishing industry. If you consider book or magazine publish-ers, the thing that they are most concerned about is ebooks. but that’s just a channel. maybe they should think about how authors interact with readers? or how authors create their books? the main question isn’t the ebook per se. If you take business model generation …

The very book you are famous for.

… we co-created it with readers, with predictors in business. does that have to do with ebooks? not directly. but did the process we used, which we did on a digital platform, lead to a better

book? I think so. business model generation became a global bestseller – we sold like 700,000 books in 26 languages – because we co-created it with some of the readers. some of them, 470 to be exactly, even paid us to be part of this project.

And the publishing industry is really missing out on such chances?

this industry is just waiting to be violently disrupted. I’m always surprised to observe the lack of change in these com-panies. are the people working in them stupid? not at all. their com-pany processes are so ingrained that change can’t happen. so if you want to introduce innovation, digitally or

not, you need to substantially change the way you innovate. that’s not hap-pening in the publishing industry.

Your second example?the second industry I know from the inside (because I’m on the innovation board of one of the biggest companies in the world) is the pharma-ceutical industry. right now this industry has an expiring business model. 30 % of all revenues will expire because of patents expiring. how are they are going to replace them? they don’t know that yet. do they today know how to communicate with their users – patients, doctors and hospitals – in a digital way and in the context of all the legal complexities you have in the pharmaceutical industry?

no, they don’t. this industry is going to have to learn a lot to be prepared for the future. I predict that some of those in the top 10 today will no longer be there in the coming years.

When listening to your explana-tions, one gets the impression that certain industries and companies aren’t talking to their customers sufficiently.

you bet. It’s very hard for large companies to integrate innovations that are happening around them. what usually happens is that the companies that don’t react disappear.

“Digital is a very interesting component that allows you to play around with your business model.”

ymissing link magazine

038 039issue 01/2013 issue 01/2013


Kodak. they went bankrupt. nokia. they are walking dead. why? because their processes were made to succeed in another age. most people in these com-panies usually know what should be done, but their processes don’t allow them to do it. your job description is to do whatever was successful over the last 10, 20 or maybe 100 years.

How much do you need to know specifi-cally about the phar-maceutical business, for example, to be on the innovation board of one of its leading companies?

I never tell companies what to do in terms of their actual business. I know a little bit about the pharmaceutical industry, but the people in it know much more. the one thing I definitely know more about is how to come up with better business models. how you design them. prototype them. test them. Implement them successfully. so I show them a process. they have to come up with the right solutions and then I help them to make the birth of these new solutions easier. It’s not something we haven’t done before. we always looked for the newest technology tools and tried to integrate them into our business, but now

we know how to do that more systematically. today we understand how you can come up with a new busi-ness model. 10 years ago we didn’t have this process.

What is new about this process?

I’ll give you an example. before we started having a process to manage quality in companies, people just did it in an ad hoc way. It was done very differently and it wasn’t necessarily managed. today you have a process, and certifications, or accounting. we all take it for granted. nobody today re-invents accounting. you would probably go to jail if you did that. but at one point somebody had to come up with the processes and rules. same with business models. before we invented them in an ad hoc way. but now we understand how to do that better with a process. the business model canvas, which we invented, is becom-ing de facto standard. com-panies are describing every new initiative with it. at one

point maybe every manager, every entrepreneur will use it. we are well on the way towards that. It’s a little bit like codifying business models. we invented the codes to do strategy and innovation.

Can you give us a successful example of change at compa-nies you have worked with? Maybe even with a digital twist?

In most large companies around the world you’ll find people using the business model canvas. do these companies have great results? some do, some don’t. can I give you their names? sorry, I can’t.

but there are two things. there is the in-novation model itself – and there is describing it so that we can learn from it. we describe a lot of examples because we want people to learn from these business models. mastercard is training people to use the business model canvas for better communications. telenor is using it so its multidisciplinary teams can have better conversations about business models. people at 3m are using it more systematically.

you have all these compa-nies using it in a slightly different ways.

many companies are having a hard time coming up with new business models. but that doesn’t matter. because by using the canvas they can have better conversations about existing models and can improve. so the methodol-ogy we are looking at is not just about inventing new business models. there is a spectrum ranging from improving existing models all the way to inventing new models that will make money tomorrow.

most of the r & d budget of large companies is spent on improving the existing business model. but where does substantial new growth come from? you need to manage the whole range from existing to new business models. even if you take digital. digital is about improving existing business models and it’s about helping develop to-tally new business models. It’s not or. It’s always and.

// entrepreneur, frequent Keynote speaKer, busIness model Innovator

// co-Inventor of busIness model canvas

// lIves In lausanne,swItzerland

-

-

biography__ alexander osterwalder, 39


040 041issue 01/2013 issue 01/2013


Markets are con-versations. This was the first topic of the Cluetrain manifesto, pub-lished in 1999, as it became clearer how fundamentally the relationship

between companies and customers was actually changing. The changed Internet-based communi-cations brought the all-pervading power of the old school of marketing into question. And back then not even one pixel of the social networks could be seen on the net.

Since Facebook, Youtube, Twitter & Co., however, no marketing experts have doubts about the aforemen-tioned topics. On the contrary. Experts would not be such if they did not react to the signs of the time. With advertis-ing carried neither in print insertions nor on TV spots but by our own urge to communicate.

Current members e.g. customers: over 250,000_Expenditure on

starting the website: usD 35,000 _budget for the video: usD 4,500

mIchael dubIn, ceo dollar shave club

photo__

are then delivered to you monthly for one dollar a time in packs of four or five. So far, so smart. This model was a success, though, only as a result of a witty 94-second advertising video on Youtube entitled “Our Blades Are F**king Great”. In it, CEO Michael Dubin is walking through the com-pany’s sales office, jumps on a forklift truck and cuts some sticky tape with a machete. No fewer than four million people sought to view this amusing video in the first month and share it with their friends. The figure was just under eleven million by the end of July 2013. The num-ber of club members is currently about 250,000. People are talking about the Dollar Shave Club, which is now marketing Shave Butter and Buttwipes as well as its razors.

the first cut is the deepest

ad

ve

rt

IsIn

g

vId

eo

- -

title__

Even in the digital age, we actually remain pro-grammed to the sending and receiving of news. As a result of the new technologies, however, a multitude of channels are now available for ’word of mouth’ propaganda. In the best cases, the viral effect produces colossal results – for instance, 12,000 new paid-up cus-tomers within 48 hours.

That’s what the US company Dollar Shave Club managed to achieve in March 2012, based on an ingenious dual strat-egy. Like selling razors and their blades together. As previously customary in that market, the Dollar Shave Club should have been launched with an attractive starter pack and a valuable offer of additional blades. But that was clearly insuffi-ciently far-reaching for the Internet-savvy Americans involved. They devised a special model for customer loyalty through the demand for new blades that was growing anyway – a club with an attractive annual bonus. As a new member of the Dollar Shave Club, you get a razor sent to you free of charge – the blades to fit into it

www. dollarshaveclub.com/

photos_ www.youtube.com

About the Dollar shave Club’s marketing ideas – which leave a powerful impression.

--

“our blad

es

are

f*

*kin

g

grea

t.”


042 043issue 01/2013 issue 01/2013

story__dollar shave clubstory__dollar shave club

“The larger you are,

the harder the task you have ahead.”

forrester research,www.youtube.com

--

photos__


044 045issue 01/2013 issue 01/2013

interview__james mcquiveyinterview__james mcquivey

info__ this article was originally published by forrester research, inc. in february 2013. reprinted here with permission.

for more information, including a complimentary webinar, video, book chapter give-away, and a free forrester digital disruption assessment tool, please visit the forrester digital disruption microsite: solutions.forrester.com/ disruption-nfg

a conversation with james mcquivey, forrester research principal analyst, author of digital disruption

have traditionally marked the bounda-ries beyond which they never thought to reach.

Can you explain what “inno-vating the adjacent possible” is and why it’s so important?

many people mistakenly assume that digital disruption necessitates replac-ing an existing product or process with an entirely new digital one. more often, how-ever, we achieve digital disruption not through replacement but through expan-sion, painstaking-ly enhancing our product experi-ence by identify-ing and providing the next possible benefit our customer wants. this is innovat-ing the adjacent possible, seeking and prioritizing the adjacent possibilities of interest to the customer, putting the customer at the center of the innovation process from concept through to delivery.

Your research and data show a disconnect when it comes to digital within global com-panies – a majority of people are excited about digital, but they’re not confident in having the skills within their com-pany to adapt to the changes digital brings; they also believe that the policies in place hinder the changes that must be made to digitally disrupt their businesses. What can be done to overcome these barriers?

digital disruption is not a one-time brainstorm or project. Instead it must become the new way of doing busi-

hat is digital disruption?digital disruption happens when people take advantage

of powerful yet cheap digital tools to create new product experiences, exploiting digital platforms to quickly deliver and test those new experi-ences. these digital disruptors rapidly learn that they can offer more value, to more customers, more cheaply than before – drawing them into a growing wave of digital-led innovation.

Are certain industries more susceptible to digital disruption than others?

every industry is now fair game for digital disruption. even if a company makes a product that can’t be digi-tized, all of the processes that go into creating and distributing it – not to mention building a customer relation-ship with the intended user – can and will be digitized. this is transforming previously insular industries like healthcare and financial services as well as dramatically physical indus-tries like cement manufacturing and military camouflage.

Is it really possible for large, established companies to embrace and adopt this mindset to digitally disrupt their businesses?

the beauty of digital disruption is that access to free tools and powerful digi-tal platforms is lowering the barriers to entry to competition for everyone, no matter the size or the traditional role of the firm. this means that companies of any size can and must participate in digital disruption, but they can only do so once they adopt a digitally disruptive mindset, casting off the policies and practices that

info__ //vice president & principal analyst at forrester research//leading analyst of digital disruption//comments regularly in the new york times, wall street journal // has contributedbylined columns for harvard business review, the economist, forbes…// appears frequently on news outlets like cnbc and npr// lives in needham, massachusetts

--

_ jAMes McQuIvey

ness at every level in the company. when done properly, it will generate continuous innovation across the organization that will improve internal processes and create new product

value. this level of transformation requires everyone to participate and therein lies the rub: the larger your com-pany is, the harder the task you have ahead. fortunately, employees want to become digital disruptors. equipped with tablets and smartphones, they know that their com-pany’s future hinges on delivering the kinds of experiences they have, on a daily basis, in their lives as consumers.

“Every industry is now fair game for digital disruption.”

Wmissing link magazine

046 047issue 01/2013 issue 01/2013

interview__james mcquiveyinterview__james mcquivey

Banks are now confronted with a mass of factors making them think predominantly about changes to their business – and, indeed, about a mass of difficulties: the tricky eco-nomic situation interlocked with

rising regulatory impositions, low interest rates and high operating costs. In the end, the only thing to be growing seems to be their customers’ demands which, in turn, are driven by the oppor-tunities for digital interaction. Customers these days expect transparent information about products, easy access to services,

and greater fairness in the form of lower charges. Preferably online. Banks that fail to take the disengagement into the Internet into con-sideration in good time simply set themselves up for even bigger problems. As the up-and-coming customer category, the digitalized socialized Generation Y will surely just ratchet its demands up further. It’s therefore high time to take action and develop new revenue streams. There is a great deal of room for maneu-ver when it comes to digi-talization, such as: mobile ways to pay, co-operation with telecom firms, and the speeding up of non-financial products like Cloud Services. Getting on with them is what matters.

change – for many years banks reserved this word for ‘small’ change, but that is no longer the case.

businessas usual...Not.-

tIna herzl--

photo__

issue 01/2013

049issue 01/2013

048


intro__bankingintro__banking

banking that’s more personal Financial affairs should be handled discreetly? At Fidor bank, they have other ideas.

s CEO of a bank, 48-year old Matthias Kröner

has an unusual career background. At first he was an enthusiastic hotelier, then he studied business administra-tion before landing up in banking. In 1993, the eloquent, always shirt-sleeved Munich local got an opportunity to take part in the building up of the DAB, which was then Germany’s first Direct Broker organization.

Kröner took advantage of this oppor-tunity, became Germany’s youngest bank chairman at the age of 32 but in 2002 left DAB after a dispute. Hypo-Vereinsbank, which was its main shareholder at the time, was unwilling to go completely along the road that Kröner had mapped out. Kröner

consisting of more than 160,000 paying members discussing, online and openly, how and where [their] money can best be invested or not invested; evaluating financial products; and putting up suggestions for improve-ments. A premium is actually credited to their Fidor-Bank account for good ideas. Support takes place, accordingly, entirely via social media channels. Customer helps customer – that’s the principle, along with there being no branch at all! This combination on the one hand reduces the bank’s charges and

costs while, on the other hand, attracts today’s customers into the milieu where they are nowadays living socially – on the net. In this respect, the Fidor-Bank is wholly and completely acting out the advantages of the digital business model. Accounts can be set up via Facebook in just a few steps from anywhere. And then, until May 2013, there has also been the “like” dividend, under which customers can play an active part in determining the level of interest paid on a Fidor-Pay-account. The rule was simple – the more likes on Facebook, the higher the interest. By the end of the promotion, more than 15,000 people had liked Fidor Bank on Facebook. Customers thus obtained an annual interest rate of 1.10 % instead of the minimum rate of 0.5 %.

had other, even better ideas. Web 2.0 was the slogan on the flag he decided to fly. He saw the rapidly growing social and interactive networks like Facebook, Twitter or LinkedIn as the ideal plat-forms to drive his idea of customer-orientated and contemporary Internet banking forward.

It is precisely this vision that is now the whole idea behind the Fidor-Bank. Kröner himself founded this bank back in 2003 but it has only been courting cus-tomers since receiving its fi-nal full banking

licence in 2009. And how! Fidor-Bank concentrates entirely on the “Commu-nity”, meaning a network

fidor bank__link__ www.fIdor.de photo__ fIdor banK concentrates

entIrely on the “commu-nIty”, meanIng a networK consIstIng of more than 160,000 payIng members.

through the focus on future oriented social technologies and excellent cost-effectiveness for their customers.”

__matthias kröner

A

“fidor Bank is offering a unique customer oriented banking experience

051issue 01/2013

story__friendly fidor

050issue 01/2013

story__friendly fidormissing link magazine

obile services, in particular, are now widely available and intensively used. This means Saša Bilanovic has

the wind behind him in his job as Head of the E-Channels Sales Department at Raiffeisen Bank, Serbia, where he is building on a new iBanking solution.

How is the digital economy affecting the business performance of your bank?

More than ten years ago, and de-spite the underdeveloped Internet infrastructure and the skepticism of many, Serbia’s Raiffeisen bank launched an e-banking application for legal entities, clearly setting its “digital” trends and creating new standards on the market. In recent years, special attention was given to electronic com-merce as a means of simpler, faster and – from the client’s point of view – a free means of obtaining information and doing business.

Which solutions and strategies were implemented to digitally transform your business?E-BankIng “RaIffEISEn OnLInE”

given the technological advances of recent years and the unexpected frenzy of social networks and mobile applications, Raiffeisen Bank has striven to keep pace with the leading technological trends. One of our most im-portant activities is implementation of the eBanking application for individuals (v2.0) whose innovating and flexible platform has met a major part of our clients’ needs. The new version of the application has enabled a two-way communication and opened the door to Internet sales. We are also proud of our first “End-to-End” travel insurance which is sold on Raiffeisen OnLine.

M-BankIng “My MBank”In Serbia, a country where mobile communica-tion is going through a renaissance, there are over 10 million cell phones in use – which works out at 1.3 mobiles per person.

Recognizing the need and the potential, we have invested in the

development and implementation of a

new mBanking application called “My mBank”. This mobile application allows the user to turn his mobile phone into a personal bank teller who is always available, at any place and at any time.

fREE WIfI nETWORk “aLWayS OnLInE”

Owing to increased penetration of the Internet and to the availability of a large number of mobile ap-plications, many Serbs are spend-ing their free time on the World Wide Web using various models of smartphones. free Wifi networks are certainly one of the incentives, which is why many Raiffeisen Bank branches have introduced a free Internet “always online” whose welcome pages and content encour-age eChannel use. apart from this, it is a new acquisition and sales channel, which is an innovation for Serbia’s banking sector. Having a counter with multiple iPads reserved for clients who have come

in to see us, we try to eradicate their fear of using e-banking applica-tions and to change their habit of doing their banking only by “coming in” to the branch. Our experience has proved that our clients respond positively to education linked with benefits.

source__a.t. kearney and research center finance and information management (fim), june 2011

info__//at raiffeisen bank, serbia, since 2001//acting head of e-channel sales depart-ment//responsible for e-channel sales, e-bank-ing, m-banking, the bank’s websites and social networks

--

_ sasa bilanovic “WE’vE PROvED

THaT WE LISTEn”

Sharing information

Social consulting

Engaging with customers

13 %unlikely

14 %unlikely

4 %unlikely

68 %likely

70 %likely

89 %likely

19 %indifferent

16 %indifferent

7 %indifferent

SOCIaL MEDIa aCTIvITIESBOOST RETaIL BankIng

-

-

For a long time Serbia ranked as a latecomer as far as Internet infrastructure was concerned but it has caught up considerably in the last few years.

facebook:> 30,000 likes //

M



052 053issue 01/2013 issue 01/2013

interview__saša bilanovićinterview__saša bilanović

link__ www.raIffeIsenbanK.rs

--

photo__ Raiffeisen Bank, Serbia

socIal networKs

as for social networks, our bank is active in all the major social channels. raiffeisen bank has an official face-book page with over 30 thousand likes; it is regularly updated and the numer-ous activities are monitored. we have created and executed several online award competitions, the most recent one being a photo contest titled “It’s possible” which went viral, spreading on social networks at an incredible rate. we also recently launched a facebook page – raiffeisenclub – tailored to the needs of the younger population. In just a few months it has reached 9 thousand likes.

textIng and emaIledm and text marketing are based on good quality of contact information (e-mail, mobile phone numbers) and form the pillar of echannel as an alter-native mode of communication.

What are the results of such an initiative?

we had a record-breaking number of electronic transactions in the months following the implementation of the new version of the e-banking applica-tion and we are recording an above average growth of new users of e-banking. we have also eliminated a major disadvantage of the previous version, which only supported a microsoft platform. by opening the application

to all major commercial operating systems and web browsers, we have proved that we do listen to our clients’ voices. customers have responded positively to our promotional activities in the field of echannel, the wi-fi network, the new mobile application, and to the awards of our so-cial network contests.

all this has contributed to the excel-lent results mentioned above.

What do you think will happen to banks that continue to do their business the way they always did – before the advent of the digital economy – without innovating their business model?

In the coming years, I think the volume of work done in bank branches will be drastically reduced – especially because their new clients will be today’s teenagers, who will have grown up with the technology and tablets as game props.

technology has become a means of doing business, communicating, socializing, obtaining entertainment, and learning; in short – a way of life in itself.

“We had a record- breaking number of electronic transactions in the months following the implementation of the new version of the e-banking application.”


054issue 01/2013

interview__saša bilanović

trends in retail banking

faced with a changing market, high interest rates, operational challenges and empowered customers, banks have to

change their business model to compete

source__ernst & young

increased influence of social networks

54%of customers trust their

financial advisor for information on banking Products

customers start to use theirsocial network to gain information

about banking services

customers in control

69%are multibankers

74%have changed their banking Provider in the last 10 years

50%say that dissatisfaction with

high fees is the most imPortant driver of attrition

12%of customerslook for a better online and/or mobile banking service from their bank

60%of customers

under the age of 54 manage their banking

accounts online

customers request great user exPerience in omni–channel banking

28%of customers

under the age of 54 use the internet as Preferred channel

for consulting on banking Products & services

65% in huNGARy would share

Personal information to receive better banking services

80% in CzECh REpubLIC are

multibankers

78% in RussIA have

switched bank in the last five years

78% in TuRkEy use social

network to find information on services

47%of customers trust their social network for information on banking Products

oday’s challenges in the banking business are influencing retail and corporate customers. Owing to economic crises, reduced interest rates and the growth of online banks, customers

are demanding better service, improved transparency of information and, increasingly, a bank teller who is not only available onsite in the branch but who can support and consult virtually, in a more digital way.

By taking all these facts into consideration and follow-ing the online, digital and mobile trends, New Frontier Group provides customers with a Banking Platform, called “iBanking”, which is moving analogue business into digital.

iBanking is a cost-effective, efficient and simple solution for electronic banking for retail and corporate customers which takes into account users’ needs to com-municate with the bank through all available channels (social networks, web, contact center, IVR, SMS, tablet PC, smartphone,…) and to involve internal business areas like marketing, sales and customer service to deal with customers on the spot.

iBanking focuses on client needs by offering dedicated information for different customer segments, based on customized widgets. This enables banks not only to present core bank account informa-tion to their customers; it also enables marketing and sales departments to run targeted marketing cam-paigns easily, offering special products and approach-ing their clients on preferred channels. Advertisements on Facebook are linked to Online /mobile banking or the social communication layer, where the bank teller can consult customers online 24/7.

This is powerful. It makes it easy for banks to ap-proach their higher income customers and promote partner products, such as a new Mercedes or a city center apartment,which are then related to bank loans or leasing products – i.e. it enables cross-selling. Increasing and involving the ecosystem of a bank’s daily business helps re-shape its business model

long term.

Not only can sales move to digital but customer service can also be digitally improved. In today’s world, many bank customers are on social networks like Facebook, Google+, etc., spending several hours per week on their private

affairs. With New Frontier Group’s solution, banks can offer “social” customer service and support integrated with these channels; such

services are secure, private and provided through the bank’s technology rather than that of a third party (such as Facebook). This means clients can send their requests directly to the bank via social media and interact with the service agents and other people needed for solving their requests immediately. Service channels stay in-tegrated with customers’ profiles and news feeds, so it’s easy to come back and see the solution progressing.

In addition to its custom-er-facing functionalities, iBanking enables data collection and analysis for more detailed reporting, useful for all business areas in banks.

IBAnKIng IS A cOST-EffEcTIvE, EffIcIEnT AnD SIMpLE SOLuTIOn fOR OMnIchAnnEL BAnKIng

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turning online-banking into a sales and service

channel

T

Is your bank doing digital business? - -

Can customers manage all their financial requirements online/mobile and receive customized information for their needs without going to a branch?yes__2 pt / no__0 pt

Are consultations, sales and services offered to customers through social media channels? E.g. applying for a loan on Facebook or discussing new savings products with other customers in the community? yes__2 pt / no__0 pt

Can customers apply for non-financial products online, and buy services from other bank customers? E.g. selling products/services within a bank’s customer community. yes__2 pt / no__0 pt


question_

question_

question_


056 057issue 01/2013 issue 01/2013

questionaire__how digital are you?product__ibanking

braInpower – easy enterprIse collaboratIon

Brainpower is our solution for internal collaboration within an organization. It connects employees, ena-bles internal exchange of knowledge, and improves internal and customer oriented processes by us-ing the “one-click away” approach as the interface guideline.

dIscourse – customer engagement reInvented

Discourse is our social way of reshaping the on-line connection between companies and their clients. We engage with customers through Discourse, which makes

possible a personalized and secure collaboration

channel to clients beyond simple web portals.

IbanKIng – ready for IntellIgent banKIngibanking is the only real omni-channel via which custom-ers can interact with banks to consult them and effect transactions. Based on pre-built functions through widget technology, banks can easily create customized applications to target customer

segments and run dedi-cated sales campaigns.

dIgItal marKetIng – performance & socIal marKetIng

With Performance Mar-keting we help clients improve their sales and widen their customer bases through their online channels. Having a lead-ing position in popular search engine results is a must for every company. More visitors = More Sales!

The Missing Link portfolio

Business innovation’s components--

social, mobile, analytical / big data and cloud –

we’ve turned these key words into concrete services and solutions to bring the digital transformation to life for companies. The opportunities are diverse, ranging from iBanking online portals to gamification ideas. But they have one thing in common, namely that existing business models are thought through further and taken to new heights with tools specially designed in each case.

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new frontier group has more than 170 specialists engaged on specific projects and constantly developing its ideas. for example, guI/user-interface experts, who design hot mobile apps; cloud services experts, who create flexible service deliv-ery platforms; and collabora-tion experts supporting the virtual global enterprise. our portfolio now includes the following components:

wagamarKet – powerIng your cloud servIces

WagaMarket is our solu-tion to help our clients create an online sales channel. It is currently optimized for telecom providers seeking to enlarge their portfolio and services and to offer their clients base prod-ucts and services beyond their own core offerings.

dIgItal publIshIng – content desIgn & technology

With wireless, smart-phones and tablets, digital consumption of information and enter-tainment is within continuous reach. With our digital publishing solution we address the three critical areas for digital content distri-bution: fast and easy creation of content for smartphones and tablets, management of the digital content in a library, and distribution of the digital content to end-user devices.

ulympIx – challenge the world!

Games, or gamification of processes and activities, increase the engagement of participants as well as strengthen bonding to products and services. We apply gamification ideas

to all our social solutions. With Ulympix, we have created an open platform to link individuals and communities with brands and companies.

aIrtouch servIce – new dIgItal communIcatIon platform

Airtouch has been created to provide our customers with comfort and agility to support their business initiatives in marketing and sales segments. We make superior communica-tion and content delivery possible; and we provide real-time analytics and reports to support future business development.

link_ missinglink.newfrontier.eu

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058 059issue 01/2013 issue 01/2013

portfolio__new frontier groupportfolio__new frontier group

media owner, editor & publishernew frontier Innovation gmbhpottendorferstr. 23 – 25/4/3/21120 vienna, austriat: +43 1 890 46 23 [email protected]

project managementhanna weinzinger, gregor bierentwww.newfrontier.eu

concept & designmoodley brand identity, www.moodley.atart directionnora obergeschwandnerproject coordinationolivia forstmayreditingandreas Kumpphotostina herzl, michael Königshoferillustrationsjulia scheiber

photoswww.gettyimages.com www.plainpicture.com www.shutterstock.com

translation and proof readingtranslingua

printing08/16 printproduktion gmbh


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