Modernizing the Customer Journey

Thank you very much. No, it's actually the seventh time. Okay. You've got one. I hope that my presentation is coming up. There it is. Yes. In terms of introduction, I've been in this identity space for like 20 years now. My name is Gerald Horst in German. That's Gil HT, as we just heard, and I'm very happy to be here. And I know that a lot of people, you know, participating or watching from, from remote, a lot of people are here and still joining. So thank you. It's good to meet real people.

And like I said, I've been in this industry since over 20 years now, I did my first identity management project in a company called effort back in 2000. And I became the CEO of that company. I helped that company grow into an international firm and in 2016 it got acquired by PWC. And since then I've been leading the digital identity practice in PWC. And I've been actually, this is my seventh time here at the EIC.

And I've been on this stage two times before and not as a speaker, but side by side with two of my clients who were awarded by Martin Kuppinger and his team for having implemented the best customer identity access management project. Here you go on left side, Tom Tom in 2016 and the right hand side money you, which was Brose challenger bank. Those were pro moments. And I cannot thank Martin enough for recognizing these fine solutions, obviously.

So in my presentation today, customer identity, access management or cm as I will call it is also going to be the core topic and especially integrating it with customer relationship management or CRM, which in my opinion, is a critical success factor for any front office transformation. And I will introduce that opinion by discussing and sharing with you, what comp companies currently are investing in and especially what winning companies are investing in.

And I will also explain how we as PWC are helping these companies with what we call an integrated solution and integration between cm and CRM. And since this is not only theory, I will also talk about a specific client that is currently modernizing its front end and the related customer journeys. So PWC is a big firm. We are also always referred to as a big four firm, that's over 300,000 people globally. And as you can expect, we do a lot of investigation. We do a lot of surveys. And one of the key surveys we do is as is, is a survey we do on the CEOs. And we do that globally.

And we first did that in 1999 and actually this year or at the end of last year, when we did the survey, the turn up was the biggest effort. More than 5,000 CEOs responded globally. And more than half of them were actually here from Western Europe and they shared their findings and their perspectives for this year 2021 and beyond with us. And you know what? CEOs are very optimistic. Are there any reasons for being optimistic? Yes. I think the world dealt with the pandemic.

Well, most governments took out their big PaaS financed their way out of the pandemic and the, the economies or most economies are bouncing back. So they've also good news for us.

They're very optimistic, but have good news for us because if there's anything we've learned from the pandemic that this new normal and working from home makes that digital transformation and cybersecurity is really top of mind for CEOs 49% of the CEOs in our survey responded that they will be investing with double digit numbers in digital transformation and digital transformation in this case means changing the way they operate their business by introducing a new and enabling technology, which is actually definition for a digital transformation.

And besides that, they also invest in cyber security more than before 31% of the CEOs stated that they will plan to invest with double digit numbers in cybersecurity and data privacy. As you can expect in this, in this day and age, the CEOs obviously have concerns. The biggest concern is that they will be hacked and that they will be ending up in a ransomware attack or being robbed off their valuable data.

And cyber threats are actually seen as the biggest threat here in Western Europe, even bigger than the pandemic on the global scale, it is still the pandemic, which is the biggest concern of the CEO. But here in Western Europe, it is cybersecurity and cyber security is a very big, you know, organization in PWC, it's over a billion dollar business.

You know, we, we consult clients in about topics like compliance and governance. We are savvy in threat intelligence in cyber forensics and crisis management in it and OT security, and obviously also in identity and access management in my team alone, as you can see on the right hand.

Oh, and there's also getting notice, sorry, this is an important commercial slide. Another Analyst has put us for the second year in a row up in the magic corner right up there, but it in my team, there's all, I mean, we are doing a lot of work in identity action management. I have a team here in EA of about 300 people and we need them daily because our clients, they are going through all kinds of digital transformations. They're going to the cloud in all shapes and forms. They're accessing data from outside the network and share that with clients, with employees and with third parties.

And they're doing this at high speed and in this new normal, you know, when we're all working from home, the number of cybersecurity breaches, as we all know is staggering. Anything as we learned from the recent number of cybersecurity that cyber crime has actually become an industry. And I think that's where we actually come into play because most of the course, and it's been expressed earlier today by Jackson shore. Most of the breaches are actually direct result of week of compromised identity management processes.

And we know that IDEX management sits at the core of, let's say every day's business, it's about securing every transaction. And over the past year, I've discussed the concept of zero trust in different webinars because that's what we do when we're working from home. We do webinars together with some of the leading vendors that are also here at the venue.

And if one thing became clear is that identity actually is the new parameter because the old way assumes a network with a network parameter in which everything is safe, but outside that network parameters where the bad guys live, and you can see that this is a very difficult proposition because when that parameter is breached, the bad guys easily get access to the internet.

And, and in the new way, basically zero trust is what it actually stands for trust nobody or nothing coming from inside the network or from external networks, we should be verifying the identity of any requester being it employees, being at people, working at third parties, being at customers before granting access. And it needs to be done in a way that is secure and compliant to rules of regulations.

So back to the storyline CEOs are investing in digital transformation and cybersecurity, like never before this is coming from that survey we did on the 5,000 CEOs and we wanted to know a little bit more. So we wanted to dig deeper and did another survey on top of this survey to find out what digital transformation actually means to these CEOs. And especially what makes them these companies, winning companies and winning means by the way, seeing growth and also achieving the goals that these companies have set out before starting the transformation.

And we did a survey on the more than 500 companies with different roles in these companies and also companies from let's say, large size, medium size and small size, a big turn up from the C-suite again. So let me share the outcomes with you because I think they are really relevant. Number one reason to be a winning company is that these companies focus on the customer need. They have invested in understanding the customer needs.

They do know how they interact with their customers, and they do know what the moments that matter are they're able to adapt our services, not only to the changing needs of these customers, but, but also effectively changing their need. Their let's say business to the market conditions they operate in.

Secondly, winners have broken down the silos in their organization with the intention to op to change their operating model. You cannot do a business transformation in a department or a siloed business alone. It has to be done enterprise-wide it has to be done across all channels. And that means a shared few amongst the key stakeholders of the business is absolute, absolutely necessary. It's necessary to have a shared view about strategy, the business, the business goals, what an new and enabling technology can bring. And it has to be done.

Enterprise-wide thirdly, winning companies are investing in lots of new technologies, artificial intelligence, 5g, OT, and the aim to disrupt and capture the interest of their customers. The overall benefit of these new technologies will produce more engaging experiences, you know, for customers providing customers more, what they want when they want it. And the well orchestrated use of the technologies to support business growth and also live up to the expectation of the clients versus focusing on operational efficiency alone is a key differentiator for transformation success.

Two other things that stand out is that trust actually has become a factor or a selling point trust about the services and about the brand. Customers want to know who they're dealing with and that they stick to what they say. And also a transformation is not something that you can delegate. So if you do a business transformation that has to be done, enterprise-wide across all channels. It has to have the board's attention. It has to have an active board that is either engaging or leading that transformation. So think about this.

The companies, most likely to be winning in this new normal are companies that focus on the customer need. They understand that trust is a factor. They introduce a new and enabling technology focused on business growth and they do so enterprise-wide. And this is where seam comes into play and especially integrating cm with CRM technologies. And let me explain that by a, a regular customer journey of a regular firm, let's say an insurer firm and assume, imagine that you're working for this insurance firm. There you go. The insurance firm is called Jupiter and you are in, in it or insecurity.

And this person, she, her name is Sophie. She's actually a potential customer. She just moved in to, in a new apartment with her boyfriend and she's looking for home insurance. So she sits at the sofa, takes out the mobile phone and serves, serves the web checks out different websites. And he ends up on the website of this company, Jupiter. And she looks for an insurance with a coverage that she can understand. And that's of course, affordable and Jupiter, both being a, an online firm cost effective and also highly personalized as highly personalized engagement.

So the price seems right, so she decides to write a product. So what she does is she downloads the Jupiter app using a QR codes. She types in her personal information with that binds the phone to the new user account. She just created, she takes how to identity card. She swaps it past the phone for verification purposes and she approves the transaction. And basically, and also she chooses an authentication means because she has the choice besides the pin code to use the fingerprint because that's convenient to her. So very easily, she becomes a customer and very easily, she buys this product.

So Jupiter is a firm that has integrated cm with CRM and can Jupiter can now onboard a customer and can bring together sales, marketing, customer service data, and identify verification to offer clients a highly personalized 360 degree view on them and offer products and service at such. So based on this, Sophie gets triggered in the app because she's typed in that she has a doc and automatically she gets a message.

Hey, have you thought about pet insurance? Of course she's interested, but she wants to know more before just saying yes that she wants something. So she ends up after identifying herself and providing consent. She ends up having a chat with the customer service agent. He explains things. And then she basically says yes. And she buys also that product logging into the app, verifying who she is, approving transactions, providing consent all is being done by using a mobile phone.

And by using a fingerprint, by the way, these and more of these use cases can be demonstrated in our booth or can be demonstrated it refer booth as well, just reach out and we can do so. So looking at these specific I access management that come into play, there are basically three groups. There is identification and verification to become a known and trusted customer there's authentication and signing to basically approve transactions, enable customer care and byproducts. And there is rebinding and management to basically manage your accounts, your passwords, and also make sure and consent.

Don't forget to do the consent there and also re bind when a phone gets lost. And this is by the way, not a very easy process. It's quite costly. And a lot of companies do not think, think about this when they start a cm engagement or a cm program. So these capabilities are obviously key to Jupiter and obviously key for the front end and of transformation.

They're going through key for the clients, but as so important is that these capabilities, although unseen by the customer, make it possible for Jupiter to do their business in a secure and compliant way, and basically do their business being compliant to important regulations like KYC past PSD, two AML and GDPR. And if there's a fraud management system integrated in the backend, then also preventing fraud can be automated and which means less skimming, less fishing and less malware coming away. So this all is really great, isn't it?

But in real life, it's not that easy because implementing cm is certainly not a trivial case. We, a lot of our customers always feel that it is quite cumbersome to implement cm and end up playing a game of twister with all the different stakeholders that need to be involved. You think about business and product owners, channel management, channel managers, fraud, specialists, it security compliance, you name it. And how easy is it, how difficult is it to align all these people and make sure that they understand what the transformation is about?

So that's why we at PWC, we invested in the development of a very serious game called the customer identity game, which helps our clients getting a joint understanding of the bigger picture and allows them to effectively come out of this twist that I talked about. So we've been playing the game since the introduction at the end of 2019, just before COVID happened in a physical form for the first time. And since then we played it a number of times in a, both physical and an online version.

And we have seen that our clients are able to accelerate their implementation by a factor we bring together typically in the game, 25 people, 25 stakeholders, and they play in teams of five against each other. And when playing the game, the participants get a go solid understanding of the C for cabaret, which is, you know, quite complex can be quite complex and need to be understood by all the stakeholders to have, you know, a critical mass that's working together effectively.

They combine different identity solutions in these processes that I talked about and they make relevant choices about their strategy, like who, who they wanna be. Do they wanna be a traditional company do or do they want to in innovate and basically disrupt the target markets? And at the end, of course, there's a result. There's always a winner. And we explain why that team has won and what they can learn from it. Ultimately, the participants get a, they experience their decisions on what it does to customer experience what it does to security and what it does to cost.

As you can tell, I really love this game. I've been playing it myself for a couple of times, both in a physical firm and in a virtual firm. And you know, then again, what's not to love, right? Playing games is fun. So the first client we actually play this set was NN, which is a large financial service firm in the Netherlands with us, their business on a global scale with approximately 15,000 employees, they serve about 20 million customers.

And with pensions, with investments, with insurance and with banking services, and they decided that they were going to introduce retail payments, which is quite a step change for the organization, because this means, and, you know, exposure to, to fraud, it means increased pressure from compliance needs, but also they needed to change from a nine by five mentality to a 24 by by seven mentality and availability. So the ultimate goal was basically to have closer interaction with their customers, do more transactions and increase customer loyalty.

And at the, and in the end, basically do more business by introducing retail payments. So they asked us to enable for them to onboard that customers within as little as two minutes, which is, you know, quite interesting, why two minutes, maybe you've recognized these guys Here, you see five of the athletes of a large group that NN has been sponsoring for many, many years. And three of these have actually won medals in the last Olympics. The men in the middle, his name is alio Kipchoge. He is seen as the greatest of all times in running.

He has won a gold medal in the last Olympics in the marathon. And he did the same five years before in the marathon in Rio. And the interesting thing is he's also the only person that has ever run a marathon in under two hours, one hour and 59 minutes. And that's where their need came from. And they said, we want to be enabled by. We want to enable our clients to onboard safely and securely comply to all legislation within two minutes. And they asked us to help out. So we did our best. We played the customer identity game. First. We co-created the cm strategy.

We helped to make important technology decisions. And we helped also with the design and implementation of the key technologies from a technology perspective, this covered the mobile channel integration, the backend service development and the implementation of the technologies based on for truck on transmit security for identity orchestration, and also the integration of the identification and verification provider for line. So the many aspects about this transformation, but Martin is already here, and time is off the essence. So I will come to my, until the end of my presentation.

We helped this company to overcome many hurdles. We did enable onboarding in a safe risk, adaptive and PSD two compliant way in under two minutes, but in order to end in further and to make it possible for them through all that channels, upsell and cross sell in an online format, we introduced the integration of cm with Salesforce.

They are using Salesforce like many companies and, and then can then bring together the identity, the marketing, the sales, and the service data to paint a 363 picture of their clients, personalize their services and optimize their customer journey and become a winning company. If you want to learn more, we can talk to you about this at the booth. This brings me almost to the end of my presentation. I have three takeaways for you. First companies invest in digital transformation and cybersecurity.

However, the winning companies focus on customer need. They understand trust is factor. They bring in a new and enabling technology for purpose of business growth and they do so enterprise-wide secondly, implementing cm means bringing in a new and enabling technology to support business growth. Evidence shows that companies are winning when they implement cm, where others stay behind when they do not. And last but not least integrating cm, where are we? Somebody fucked up?

My slides here are last, but not least integrating cm with CRM modernizes and optimizes the customer, the customer front end of our clients, and really makes the customer identity matter. I hope this was hope. It was useful to you. I talked about two reports. One was investigation among CEOs and the other one was what winning companies make winning companies they're available in our booth. If you want them just reach out and on behalf of PWC, I wish you were great further conference. Thank you.