Post-Digital Innovation in Financial Services Table of Contents

What is really happening at retail banks and insurers in Belgium?

EXPOSED Post-digital Innovation in Financial Services Table of contents

PaGe 1 Preface

2 Intro: Post-digital Innovation in Financial Services

4 The pie shrunk, not the slice

6 My take: Stéphane Nachtergaele, Assuralia

8 Post-digital frontrunners perform better

9 My take: Olivier Debehogne, Keytrade Bank

10 Mobile drives digital innovation

11 My take: Tom Kestens, Hello Bank

12 Focus on the prize, not the hurdles

13 My take: Michel Vermaerke, Febelfin

14 Harnessing the power of combinations

15 My take: André Vanden Camp, Axa

16 The value-oriented CIO premium

18 My take: David Tornel, Ethias

20 Warning: The risk of misjudging relative progress

23 Conclusion

25 Appendix 1: sample description

26 Appendix 2: questionnaire

Facilitated by:

In partnership with: CEDRIC DELEUZE Intro: Post-digital Innovation in Financial Services What is really happening at retail banks and insurers in Belgium?

The further popularisation of business-driven Such a vision of digital business innovation technologies – such as big data, social, mobile, appears intriguing and promising. But it leaves cloud, and cyber – is putting pressure on companies a lot of questions open for individual companies to fundamentally rethink operating models, business in a specific sector such as the financial services models and executive roles, regardless of industry industry (FSI). Considering the importance of FSI or geographical location. In its ‘Tech Trends 2013’ to the Belgian economy, Deloitte Belgium and Vlerick report*, Deloitte addresses these evolutions under Business School decided to join hands to investigate the umbrella of ‘post-digital innovation’. According what post-digital business innovation actually means to this vision, technology-centric forces driving for financial services providers (see Box 1 for our business innovation will be a major strategic theme working definition of post-digital innovation). for the coming years.

BOX 1: Post-digital Innovation Defined Post-digital business innovation includes all investments for significant business transformations with the following characteristics:

a the initiative is aimed at one or more of the following types of innovation: • structural innovations to the production and delivery of existing products/services (e.g. lean and work flow automation) • the introduction of new products/services (e.g. ATM finders and location-based insurance services) • the orchestration of new value-based eco-systems with 3rd parties (e.g. e-wallets, and peer-to-peer banking and insurance) • structural innovations to management and support systems and processes (e.g. e-HRM, analytical marketing and paperless working)

b the initiative involves the deployment of one or more of the following digital technologies: • Big data: capturing and analysing large and complex data sets (e.g. to identify commercial opportunities, to monitor social media, and to detect fraud) • Social: using social technologies to reach consumers and connect with employees and partners (e.g. advanced social media campaign/brand management systems and internal micro-blogging) • Mobile: providing mobile services to customers, employees and partners (e.g. mobile apps and location-based services) • Cloud: providing and managing cloud-based services for both core and non-core activities (e.g. cloud-based document services, or e-mail services, or CRM) • Cyber: the advanced use of electronic and cyber identification capabilities (e.g. the advanced use of e-ID and e-wallets)

* www.deloitte.com/us/techtrends2013

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With the additional support of Belgian sector We have organised our federations Febelfin and Assuralia, we have findings around 7 themes: investigated the nature and implications of 1 the pie shrunk, not the slice post-digital innovation as it takes shape in 2 Post-digital frontrunners perform better companies that provide banking and/or insurance services to retail customers in Belgium. 3 Mobile drives digital innovation 4 focus on the prize, not the hurdles For this report, we collected insights by combining two methods: 5 harnessing the power of combinations 6 the value-oriented CIO premium • first, in an exploratory phase, we interviewed several CIOs and business leaders of leading 7 Warning: The risk of misjudging relative progress financial institutions as well as non-financial This report primarily looks at post-digital innovation companies in Belgium. from the CIO’s point of view. ‘My Take’ sections add • second, on the basis of these interviews, we built the perspectives of several business leaders with and launched a web-survey aimed at the highest regards to the content developed in the report. ranked executives responsible for ICT in banks Business leaders of all kinds should find this report and insurers active on the Belgian retail market. interesting and informative. Out of 81 invitations sent out, we received 44 responses, which covered about 85% of the Belgian insurance and banking market in terms of banking assets and insurance premiums paid annually. Therefore, the results we present in this report are very representative of the Belgian financial services market (see appendices 1 and 2 for a description of the data-set and a copy of the web-survey).

Vlerick Business School, Brussels Campus

It has already been 5 years since the outbreak – which is comparable to pre-crisis levels. As one of the global financial and economic crisis of the interviewed CIOs put it: “The crisis forced sent shockwaves around the world, with major us to reduce the size of the pie – i.e. our entire ICT consequences for the financial sector. However, investment budget – but we refused to reduce the repercussions of that storm have not yet been the relative slice of innovation investments.” completely mitigated. Two strongly interconnected For 40% of our respondents, the crisis actually themes still dominate the executive agendas invoked an upward trend in the relative share of of companies providing financial services to spending on innovation. retail customers. Moreover, CIOs in FSI remain optimistic about First, many financial institutions still need to find innovation spending levels in the coming 5 years: ways to recover severe asset depreciations and nearly all agree that the share of innovation in the direct income losses. Second, the crisis, the bailouts, ICT budget will be on the rise during this period. and the scandals (e.g. LIBOR*) in the aftermath We also surveyed which kinds of innovations are of the crisis all but obliterated consumers’ trust in high on the agenda (see Figure 2). For the most part, financial institutions. Finding ways of regaining that financial institutions are looking at rather internally- trust has become, and will remain, one of the key focused and less radical types of innovation. challenges in the foreseeable future.

We polled CIOs of financial institutions on the Belgian retail market about the impact of these crisis conditions on their companies’ attention to 84% innovation in the ICT budget. From the results, we 80% learned that some companies have found themselves 67% compelled to reduce spending on innovation (see Figure 1). However, for a large majority, it seems that 45% the percentage of spending has remained at least at the same level as before the crisis.

Support & Operational New Eco-system a our share of investments in innovation was Management Innovations Services Innovations significantly reduced when the crisis broke out System Innovations 24% Figure 2: What types of innovation are banks

b our share of investments in innovation has been and insurers investing in? growing since the crisis Key examples are innovating support and 40% management systems for better risk management or marketing analytics (84%), or streamlining the c our share of investments in innovation will be operational side of existing services (e.g. straight- growing in the coming 5 years through-processing) (80%).

93% More radical innovations – such as introducing new services to the market or pursuing eco-system Figure 1: What is the evolution of the relative share innovations – are lower on the agenda in the financial of innovation in the total ICT budget? services industry. Eco-system innovations entail radical shifts in how These results are confirmed by the observation financial services are purchased and enjoyed by that the share of their ICT budget designated for consumers (e.g. through disintermediation). For innovation has remained between 10% and 20% example, a number of interviewed CIOs mentioned

* LIBOR = the London Interbank Offered Rate. The LIBOR reflects the average interest rate charged to banks if they were to borrow money from another bank. In June 2012, large scale fraudulous manipulations of the LIBOR by leading banks such as Barclays Bank were uncovered, i.e. the LIBOR-scandal.

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the entry of third parties into specific financial services niches in which they are currently not even recognised as market players, let alone market Banks Insurers makers (e.g. Google Wallet).

However, a subtle distinction should be made 24% between banks and insurers: while most banks are 40% Yes No 60% investing in eco-system innovations, insurers are Yes 76% currently much less keen to do so. No

The results presented in Figure 3 show that nearly 2 out of 3 banks are investing in innovations to develop or adapt to new eco-systems for providing financial services to retail customers. Only 1 in 4 Figure 3: Which FSI companies are investing insurers are currently doing the same. This difference in eco-system innovation? between the two branches in FSI raises the question whether the insurance business is inherently less likely to undergo such radical changes. Or, are insurers perhaps setting themselves up for an unpleasant surprise in the coming years, as new market entrants might emerge with radically different business models: e.g. social insurance such as www.friendsurance.com?

Assuralia is the sector Second, the legal framework for insurance in Belgium organisation representing is very keen to protect consumer interests – which life and non-life insurance is, of course, a good thing. It allows consumers companies active on the to acquire insurance services with a good under Belgian market. We were standing of the various products and providers. very eager to facilitate this However, it makes direct sales via digital platforms research project, because difficult to arrange, except for a few simple niche it is directly aligned with products (such as last-minute travel insurance). our mission to regularly provide our members with Moreover, in the past five years, the regulatory topical and objective information on current trends pressure on insurance companies has steadily in the sector. The results provide revealing insights increased, forcing insurance companies to carefully into the state of post-digital innovation in our consider and invest in solutions for issues such as sector. recovery plans, archiving requirements, privacy, and so on. It is conventional wisdom that insurance companies Finally, the survey only captures innovation are often wary of adopting new technologies or investments made by individual companies. launching bold new commercial initiatives. This is In fact, for the insurance market, a lot still needs to both a perception and a cultural phenomenon. be done at the level of information infrastructure. Often, insurance companies will hold back in For instance, through cooperations at sector level developing new products or services until the and cooperative insurance information network sector has a clear view on the legal and regulatory providers, we are continuously developing implications. Nonetheless, most insurance companies sector-wide protocols for standard paperless frequently express their desire to work more flexibly messaging between insurance companies and other by applying new technologies such as social, mobile, parties in the insurance eco-system. For example, and cyber. And quite often, we see that many the Telebib II insurance vocabulary initiative is insurers will actually move swiftly when a first a major step forward in simplifying the massive mover has launched his initiatives. amount of communication that follows an accident Three hurdles to post-digital between two people insured by different companies innovation through different brokers. Next to these sector-wide efforts, the survey does not cover innovations in In addition to culture, we see three other main the provision of digital platforms to the thousands explanations for why the insurance sector appears of insurance brokers active in Belgium. These somewhat more conservative than its banking investments do not appear on the budgets of counterparts (although, of course, this is in no way individual insurance companies, because this is a contest between the two sectors). First, many the terrain of third-party insurance brokerage insurance companies have only indirect contacts software providers. with their customers. Most of them work via insurance brokers who sell different products from different insurers to their clients. So, it’s difficult to convince customers to adopt digital solutions from one particular insurance company. This is something we experienced through consumers’ only tepid adoption of e-billing solutions, which have existed for many years.

6 / © Vlerick Business School Alleviating, and looking beyond, the hurdles In conclusion, insurance companies face a number of significant hurdles to post-digital innovation which are very particular to the sector. Assuralia is proactively working with its members, the regulators and the government to clarify and alleviate more and more of the aforementioned hurdles. Considering the insurance business’ complex eco-system, this naturally takes time. Even so, Assuralia is pleased to see that a number of insurance companies are already willing to look beyond these hurdles – some are trying out new digital platforms to reach customers with value-added services. Although such initiatives are often rather limited in scope, this early experience might prove invaluable in the future.

In addition to gauging the current level of ahead in rolling out investment plans for post-digital investment in innovation by banks and insurers, technologies were close to 3 times less likely we were also eager to test whether post-digital to be lagging in financial performance vis-à-vis innovation is becoming a key success factor for the their competitors. relative financial performance and recovery of banks and insurers. Digital leaders Digital laggards To this end, we first calculated the degree of post-digital innovation leadership for each company. 89% 73% This indicator was based on a combined measure at par at par of the company’s current level of investment in the or or following 5 technologies: big data, social, mobile, leading leading cloud, and cyber. Our respondents were asked to assess how far their company was in deploying each of these technologies. 27% 11% lagging Based on the spread of answers we received from lagging the survey and the pre-survey interviews, we determined a dividing line between digital leaders and digital laggards. A company that, on average, Figure 4: Are digital leaders also financial leaders? had decided at least to invest in deploying pilots was considered to be digitally leading (41%). Those This result suggests a financial premium for banks companies that, on average, showed they were only and insurers who are further along in adopting researching and investigating these technologies (or technologies such as big data, social, mobile, cloud had no interest in them at all) were considered to be and cyber. Although it may still be too early for many digitally lagging (59%). of these technologies to realise their full potential in In a next step, we related these scores to the business value, we can already see that banks and companies’ level of financial performance versus insurers who are less advanced in their adoption their competitors’ performance in the past fiscal year of these technologies are running the risk of falling as reported by the CIO. Figure 4 shows the outcome behind their competitors. of this operation: those companies that were further

Vlerick Business School, Ghent Campus 8 / © Vlerick Business School My Take Olivier Debehogne Sales AND Marketing Director, Keytrade Bank

As the leader in online concerned with how many fans or likes we have trading in Belgium, Keytrade if this doesn’t enhance the customer experience. Bank has always been at Instead of using these platforms for social-based the forefront of digital marketing, we count on our own network of innovation in financial customers. We are now on the 10th run of our services. Keytrade started ‘Members Get Members’ campaign – which is still in 1998 with the launch of proving to be highly effective: attracting 4000 new VMS-Keytrade, Belgium’s members in only 6 weeks. first online investment site. Immediately, the Nevertheless, I do believe strongly in a first-mover enterprise experienced success and serious growth. advantage for post-digital technologies. However, In 2002, VMS-Keytrade became Keytrade Bank, this advantage is not just technological in nature, acquiring its banking status by taking because, in fact, once an app has been launched, over Realbank. it’s open for every competitor to see and copy. The experience of building these apps enabled A whole new customer experience us to generate a great deal of knowledge and Indeed, the mobile revolution is driving the human capital. momentum for most of our post-digital innovation New players are constantly knocking at the gates investments. In November 2012, we launched our and our known competitors are also launching new Keytrade Bank application for iPad – the first banking customer experiences every day. More than ever, app in Belgium to combine functionalities for success in retail financial services will depend on banking, investment management and trading. Since who is the quickest to understand, and provide for, its launch, the application has been widely adopted consumers’ rapidly changing needs. For example, our and has a 4+ rating in the iTunes store. Moreover, our learning experience with the iPad app in Belgium is app was nominated for an innovation award earlier now helping us roll out the platform to our branches this year. in Switzerland and Luxemburg. We also launched an We didn’t want to merely extend traditional iPhone version in June 2013, and we have recently e-banking capabilities to mobile devices (we had launched an Android version. already launched our mobile website for that in 2008). Rather, our app provides a whole new Agile methods for software customer experience by leveraging the full range of development iPad functionalities. For example, our customers can We firmly agree with the report’s conclusions that personalise their accounts with their own pictures post-digital leadership, and the premium which and execute money wires to internal or external it might bring with it, is strongly related to value- accounts with a simple gesture. For investment oriented leadership by our CIO and close alignment management purposes, clients can follow markets between business and ICT. At Keytrade Bank, and rediscover the performance of their portfolio we facilitated this by applying agile methods to using interactive charts and heat maps. software development for our mobile applications. By means of collocating commercial, legal and Providing for consumers’ rapidly ICT people, weekly demo sprints and other agile changing needs rituals, we were able to closely align the different In addition to mobile, we are also actively developing stakeholders. Our executive committee was also innovative customer experiences based on analytical, closely involved – spending 20 minutes each week to social, cloud and cyber identity technologies. see the progress based on these weekly sprints and However, for most of them we are still wary of making suggestions. This experience will be a firm adopting innovations just for the sake of innovation. foundation to guarantee our future successes in a For example, many banks are far more present than fast and flexible approach to post-digital innovation. we are on Twitter and Facebook. But we’re not

Mobile connectivity, and associated technologies If we then look at the importance the companies give such as apps and social platforms, have rapidly to the same technologies in 3-5 years’ time, we get become commonplace in people’s day-to-day lives. almost an inverted image. Figure 6 shows that, while As these technologies become more and more insurers may be lagging in current implementations interwoven with our daily lives, expectations of today, they still expect that these technologies will constant connectivity are easily finding their way figure prominently on their investment agendas into the enterprise. On the one hand, as employees within 3-5 years. But whether this is a realistic we expect to be able to work on the road or from ambition remains to be seen. Considering their home with any device without losing access current levels of deployment of these technologies, to documents, applications, colleagues or this would require a significant catch-up effort. communities-of-practice. On the other hand, clever business leaders are dreaming of their businesses capturing massive amounts of consumer behaviour Banks Insurers patterns for marketing or risk management Big data purposes. 48% 59%

Our results show that companies in FSI have Social technology understood the impact of consumers’ expectations to be able to decide on, purchase, track and enjoy 58% 80% services anywhere at any time and from any Mobile device. Figure 5 shows that retail banks in Belgium are most advanced in their adoption of mobile 92% 82% technologies compared to the other technologies. In Cloud general, insurers are currently lagging behind their banking colleagues in their adoption of different 58% 69% technologies. Nonetheless, mobile is also still relatively high on their agendas. Cyber 67% 61% Banks Insurers Big data Figure 6: Do banks and insurers believe that 24% 37% post-digital technologies will feature prominently in their future investment portfolios? Social technology 56% 32% One final note: while ubiquitous mobile connectivity

Mobile of consumers and employees seems to be at the centre of the FSI’s attention, a post-digital view on 80% 42% digital innovation means that mobile cannot be seen in isolation from the other 4 technologies. To a large Cloud extent, the different technologies are mutually 44% 44% reinforcing – that is, a push towards mobile services will also push the envelope when it comes Cyber to the other 4 technologies. For example, some 44% 26% technologies (cloud and cyber) will enable mobile platforms, while other technologies (big data and social) benefit from the increased critical mass derived from nearly permanent mobile connectivity. Figure 5: Are banks and insurers investing in different kinds of digital technologies?

10 / © Vlerick Business School My Take Tom Kestens Head, Hello bank! Belgium

Launched on 16 May 2013, Ahead of the market Hello bank! is the first But having no physical distribution network is both exclusively mobile bank in an advantage and a risk. On the plus side, it means Belgium. By ‘exclusively a significant cost reduction compared to traditional mobile’, we mean that the banking models. However, it also means that every offering to our customers is service we offer via our app has to work flawlessly not available via a network without any extra human interaction. We know we’re of physical offices or via a ahead of the market by attracting consumers with traditional website on PC/Laptop. Instead, Hello such a radical approach, and that is exactly where bank! aims at offering a rich banking experience we aim to be. that is accessible through any mobile device – phone or tablet – free of charge. We had set ourselves a target of only 12 months to develop and launch Hello bank! in Belgium. Clearly, Anticipating the millennial this was going to be a challenge. Thanks to the generation strong backing from top management — at both local and group level — we were able to count on Although Hello! is part of BNP Paribas Fortis the support of over 500 people from across BNPPF! (BNPPF), we decided to develop and launch Hello bank! under a distinct brand with its own commercial Changing from green to blue strategy and leadership. There were two main Looking specifically to the ICT side, the development reasons for that decision. and launch of Hello bank! required a complete First of all, 2012 was a tipping point with regard to overhaul of skills. Hello! would not be about the adoption of mobile devices. We are no longer extending our existing services to mobile platforms. talking about the 10% of early adopters — market Instead, we were changing ‘from green to blue’: reports show that, by the end of 2013, over 50% of creating a completely new service offering, based consumers will own and use a mobile device in their exclusively on technologies and processes that daily life. As a consequence, consumer expectations were going to be very different from traditional are changing radically. Especially when we consider retail banking. the upcoming generation of millennials who have So, considering the tight schedule as well, we grown up with the availability of internet and could not be satisfied with ICT simply executing mobile connectivity. what business demanded. All our people needed Our target customers want services and products to be very skilled in balancing the desirability and to be accessible to them at any time and from feasibility of features for the first release. Moreover, anywhere, as part of their always-on, on-the-go in this business model, it doesn’t stop with the lifestyle. Even to the point that, one day perhaps, launch of the bank. Hello bank! needs to be updated they will expect their mobile device to predict what frequently with new features and improvements. they might want, based on surfing behaviour, agenda For example, in September we have launched a new items, and location (e.g. www.google.com/now). We credit card offering, and we will have new features to are the first retail bank in Belgium to have an offer be launched in December. specifically geared to them. It should be clear, therefore, that I fully agree with Second, the financial crisis has shaken many the conclusions in the report about the importance consumers’ trust in banking institutions. Although of having a strong, value-oriented ICT leadership the crisis struck five years ago now, many consumers and an excellent business-ICT relationship. Banks are still more confident having full control over their who aren’t able to count on such an open-minded, own finances. Our target group wants a clear set of creative yet pragmatic, ICT leadership and staff straightforward banking services, without the hassle will definitely struggle. For Hello bank!, that has or cost of going to a local branch and speaking been indispensable to making this kind of radical with an advisor. Accordingly, Hello bank! has no post-digital innovation happen. commercial offices. © Vlerick Business School / 11 Focus on the prize, 4 not the hurdles

We stated earlier that about 60% of Belgian retail This requires a high degree of digital citizenship. banks and insurers are lagging in the deployment In Europe, Febelfin is taking the lead in creating of post-digital technologies (see Figure 4). So, a consumer awareness about personal security next step is to see what kinds of barriers might measures with regard to issues such as phishing be holding them back from progressing. We and identity theft (see My Take by CEO Michel looked at barriers both internal and external to the Vermaerke). But more and more employees have to organisation. Figure 7 depicts the top 3 internal and deal with mobile connectivity of information systems external barriers indicated by our respondents. Each and platforms inside the banks and insurers as well. top 3 represents around 60% of all the answers. This means that employees must be made highly sensitive to issues such as risk, fraud, and privacy in their day-to-day actions.

Internal barriers External barriers Last, but most definitely not least, banks and insurers in Belgium are facing difficulty in drawing 18% up the business case for post-digital innovation. 22% Non-discre- Many of them are not yet clear about how digital 25% tionary 23% External Internal priorities Legal security security innovation can generate enough business value to 17% warrant a position at the top of their investment Value 20% proposition Customer agenda. One reason for this may be the flood of

40% 35% demand non-discretionary priorities that banks and insurers Other Other are being expected to deal with, especially in relation to post-crisis regulation (18%). Another reason is that some companies (20%) feel that there is simply not enough consumer demand for digital services. It can Figure 7: What kinds of internal and external barriers be debated whether or not this is actually the case could stifle value realization from digital technologies? – such a position more likely indicates a conservative view of consumer trends than an actual lack of First, legal issues need to be dealt with before consumer demand for mobile services. launching digital innovations. An indispensable As a final note on the hurdles for digital innovation, condition is to cover (at least) all legal requirements Figure 8 shows that digital leaders feel much less concerning issues of privacy, fraud and protection restricted by any issues that might stand between against theft of financial assets or identity. them and the achievement of their digital innovation Second, our results show that both external security ambitions. Digital leaders seem more likely to focus (e.g. hacking) and internal security (e.g. leaking on the prize than on the hurdles. Especially when of sensitive information) are major concerns. The it comes to internal barriers, they are more confident importance given to internal security confirms that in declaring that there are no significant barriers security cannot be reduced to a mere technical that would keep them from investing successfully matter for the ICT department. And to protect data in post-digital technologies. and systems from external threats, it is still good practice to invest in the most advanced technical No showstopping internal barriers security available. Still, security incidents often 43% originate from a combination of technical and human Digital leaders breaches of security. No showstopping external barriers 36% So, security becomes more a matter of being able to train and trust your own employees, partners No showstopping internal barriers and customers. Banks and insurers will have to Digital 18% be confident that all stakeholders understand the laggards No showstopping external barriers personal implications of hyper-connectivity and on-demand access to applications and data. 20% Figure 8: Do digital leaders and laggards feel hindered

12 / © Vlerick Business School by internal and external barriers? My Take Michel Vermaerke CEO, Febelfin

Febelfin is the sector Seeing opportunities and organisation for banks business value operating in Belgium. Apart from innovations, we see that a lot of ICT One of our spearheads spending is going to mandatory projects related for the coming years is to initiatives such as the ‘Single European Payment creating awareness about Area’ (SEPA) and the ‘Markets in Financial the implications of nascent Instruments Directive’ (MiFID). However, some digital innovations in the organisations are able to see these initiatives as field of banking. Although it’s not Febelfin’s role opportunities, not just problems. So, as the sector to interfere with the development of individual organisation, we strongly support the idea of a banks’ competitive strategies, it is part of our duty bank’s CIO or ICT director as a business value- to inform our members about common aspects oriented leader. A value-oriented CIO will be able to of the digital revolution that will impact all of see business value and new customer needs even in them. To this end, Febelfin has been very active mandatory projects, where others mainly see costs. in knowledge collection and exchange on various digital innovation topics – for example, through Only by making the effort to align business, legal research projects such as www.bankofthefuture.biz. and ICT knowledge and needs, can banks regard the When Vlerick Business School and Deloitte Belgium changing banking landscape as opportunities for came to us with this research project, we were very customer-oriented digital business innovations. supportive, and the research makes some very Combating cyber crime interesting points. Finally, security has truly become a key issue. Banks in Belgium are doing their very best to maintain Investing in eco-system innovations the highest possible standards when it comes to We were not surprised to see that there are protecting their customers’ assets and data by differences between post-digital leaders and technological means. They do so in full cooperation laggards, which seems to suggest a competitive with the authorities. Thanks to these efforts, digital advantage for the leaders. Even before the outbreak banking in our country is highly trusted. of the liquidity and Eurozone crises of 2008 and 2010, respectively, it was becoming clear that However, as the banks’ own barriers have become consumer expectations towards banking were more and more impenetrable to cyber criminals, shifting towards 24/7 flexible and mobile banking consumers themselves have become the primary models. Although the crisis has forced banks to targets. By means of tactics such as phishing, look at innovations in support of increasing internal consumers are tricked into disclosing personal efficiencies, we were happy to see that banks are information regarding their bank accounts. also still investing in new services and potential In addition to that, consumers need to become eco-system innovations. By investing and innovating, aware of the vast amount of personal information the banking sector will continue to play its financing that is readily available to individuals with malicious role at the service of individuals, economy intent via Twitter, Facebook and other social and society. networks. That’s why Febelfin has taken the lead in Europe in raising awareness about this issue through award-winning campaigns such as ‘Dave the Mind-reader’ (over 10 million views on YouTube), ‘See how easily freaks can take over your life’ (half a million views) and www.safeinternetbanking.be.

A post-digital vision for business innovation However, a second observation did show a very fully embraces the disruptive power of the significant difference between digital leaders 5 technologies included in our study: big data, and laggards. We investigated whether CIOs social, mobile, cloud, and cyber. What is more, who support the idea of combining post-digital we have learned from pre-survey interviews and technologies believe that their business partners are round-table discussions that most of the value to on the same page about this. Our data suggest that be realised from these technologies will come from CIOs of digital leaders are nearly twice as likely to be innovative ways of combining them. For example, aligned with their business counterparts on this issue a bank might want to use big data technologies (see Figure 9). Digital laggards were more under to extract and uncover consumer patterns derived the impression that their business partners focus from massive amounts of usage data from mobile too much on individual technologies. Therefore, it and social services. seems that alignment between ICT and business on this issue might prove to be an important factor in Thus, the hypothesis is that it will be counter- becoming a digital innovation leader. productive for companies to discuss different post-digital technologies too much in isolation from each other. We checked this assumption with Digital leaders Digital laggards our survey respondents. A first observation was that about two thirds of CIOs agreed with the statement 15% NO 53% NO that most of the value from post-digital technologies will come from combining them. There was no significant difference between digital leaders and laggards on this matter. 85% YES 47% YES

Figure 9: Are ICT departments aligned with their business partners on the need for combining post-digital technologies?

Vlerick Business School, Leuven Campus 14 / © Vlerick Business School My Take André Vanden Camp Chief Operating Officer, AXA Belgium Insurance and Bank

The AXA Group in Belgium Out-of-the-box thinking comprises the AXA Belgium Having said that, our banking division has also had insurance division and the to deal with its own share of hurdles for digital Belgian banking division innovation. For example, the increased regulatory within AXA Bank Europe. fall-out from the financial crisis (e.g. Basel III) has We are proud to serve over been channelling ICT investment resources towards 3 million customers in non-discretionary investments. As a consequence, Belgium through 920 all proposals for discretionary spending are independent bank agents and more than 5,000 closely vetted for the profitability and clarity of brokers representing AXA products. As Chief their business case. This makes it harder to keep Operating Officer and head of ICT for both banking digital initiatives at the top of the agenda – and and insurance in Belgium, I am regularly involved so business and ICT leaders need to think out-of- in digital business innovation in each activity. the-box, innovatively yet pragmatically. Looking at our progress in digital innovation in banking, it More digital banking appears that we are moving in the right direction. than insurance The success of our mobile banking campaign in April I largely agree with the observation that banking is 2013 (new mobile application and product offering) more digitally advanced than the insurance business. is a good illustration of that evolving mindset. There are a number of reasons for this. First of all, While history and business specificities help explain the current business model for insurance is based current differences between banks and insurers, primarily on a brokerage model. When we combine they cannot justify continued digital inertia in the that with a frequency of service consumption which insurance market. Digital innovation in insurance is is lower than that in banking, we find that we have possible and will actually be inevitable. It will entail fewer direct interactions with our customers for significant changes in the way we conduct our insurance purposes than for banking. So, it’s not business, and our main challenge is (and will be) to surprising that post-digital technologies – which are launch our brokers, agents and business partners very much oriented towards, or based on, direct and on that journey towards higher customer centricity. frequent consumer contacts – are much less often We’re making progress on that front: we continue adopted by insurers than by banks. to invest in areas such as customer relationship Second, for several decades already, the banking management, master data management and portal/ sector has been making a lot of effort to develop mobile solutions. international standard protocols for financial transactions (cf. SWIFT). This has provided a solid Open-mindedness needed piece of infrastructure on which many banks are able This brings me to a final remark. I was pleased to see to build digital innovation towards their customers. in the results a confirmation that those CIOs who For insurance, we are taking part in such a process are able to demonstrate a value-oriented leadership via Assuralia and our participation in the insurance style are better positioned to grasp the momentum network provider Portima. However, there is still a lot towards digital innovation. Such CIOs can give their of ground to cover. executive team a decisive push towards investing in digital innovation. However, if such a CIO does not have executive business peers who are open-minded and able to think beyond their current business models, he or she will not be able to make that difference, neither in banking, nor in insurance.

The past two decades have seen an intense depending on the type of leadership role they discussion on the future of the CIO’s role. indicated to be most important when it comes to The debate involves two opposing views on the post-digital business innovation. The CIOs who evolution of this role: on the one hand, there is emphasised being a business visionary or educating the vision of the CIO as a value-oriented strategic the business on realising business value were partner, a (co-)leader of the organisation’s digital considered to be more value-oriented. CIOs who innovation, and a valued member of the executive emphasised the planning of strategy execution committee; on the opposite end, there is the or leading by example were labelled as less notion that the continuing fusion of business and value-oriented. ICT issues means that other business functions are Figure 10 shows the extent of this premium as draining the clout concerning ICT-enabled business measured by the degree of digital leadership. Digital innovation away from the CIO. In such a model, leaders are about 3 times more likely to have a CIO business leaders keep post-digital innovation largely with a strong value orientation than digital laggards. within their own functional departments or business There is also a financial premium from having a lines and out of the CIO’s sight. In the latter case, value-oriented CIO: financial leaders are about 3 the highest ranked enterprise-wide executive times more likely to have a more value-oriented CIO responsible for ICT will be more of an operational when it comes to digital business innovation. technology manager reporting to the CFO or COO. These results may incite CIOs to question for The results of our survey seem to support the case themselves whether they are focused enough on for a value-oriented CIO role. There appears to be realising business value with ICT. For those CIOs a premium for companies whose CIOs emphasise who are already very value-oriented, this message business-value-oriented leadership in their approach may be seen as a confirmation of the added value to post-digital business innovation. We labelled of their efforts. CIOs as being either more or less value-oriented

Digital leaders Digital laggards

11% Less value- 31% oriented CIO Value- oriented CIO 69% 89% Less value- Value-oriented oriented CIO CIO

financial leaders financial laggards

22% 37% Value- Less value- oriented oriented CIO CIO 63% 78% Value- Less value- oriented oriented CIO CIO

Figure 10: Are CIOs at financial and digital leaders more value-oriented than their peers at the laggards?

16 / © Vlerick Business School

My Take David Tornel Director of Marketing and Product Management, Ethias Insurance

Ethias is the fourth largest Digital helps enrich relationships insurance company in It is our opinion that insurers could do much more Belgium, serving over one to simplify their products and processes for their million customers. Ever customers. In fact, consumers quite often feel since our founding in 1919, anxious about dealing with insurance companies, the company has cherished because they fear they’ll be presented with complex a mutualistic, socially products with all kinds of small print clauses. (This is responsible and customer- actually quite ironic when you’re in the business of oriented philosophy. In our view, the mission of an reassuring people!) This is why we believe strongly in insurance company is to instil our customers with having direct contact with our customers. Because a sense of reassurance in any way we can. This we do not work via a brokerage model, we can customer-centric philosophy is the driving force in develop closer relationships with our customers, our approach to post-digital innovation as well. which we can enrich with mobile applications and other initiatives to simplify their life. Multi-channel approach For example, we launched our Auto 24/7 app six I’m not surprised to read in the report that most months ago. Again based on consumer research, we insurance companies are lagging behind in digital identified a number of specific areas in which we can innovation investments. Many companies have support our customers in the case of a car accident. difficulty seeing the added value of investing in The app provides our customers with all the tools digital innovation, because they think digital is about for compiling and submitting a damage claim to us doing exactly the same thing as before, but without quickly and easily. It has geo-location services to the paper. Of course, this isn’t enough of a business pinpoint the address or to locate the nearest garage. case for post-digital innovation. We see digital And it also allows pictures to be taken and included innovation as part of our multi-channel approach, in in the claim. Of course, they will still need to fill in which we look at which of our customers’ needs can the paper version when the opposing side is not be addressed optimally via different channels: i.e. the an Ethias client. But now we can start helping our internet, mobile devices, tele-centres, and a limited customers even before we receive these forms. number of brick and mortar offices. We also like to think outside the box of specific For example, from consumer research, we learned products. For example, our Ethias Safest Route that consumers that want to buy a renter’s insurance application is not directly connected to a particular policy as part of their contractual obligations want insurance service – instead, the app fits in our a very simple product without much hassle. So, we philosophy of wanting to provide our customers developed a product and process by which – on the with ease-of-mind. The app is a GPS tool that shows basis of only four simple questions – prospects can users the safest route from A to B by identifying get an online offer for a policy that they can even locations where there have been a higher frequency underwrite directly on the web. To be clear, though, of accidents. it is not our intention to shift all products to an online model. If anything, we use the room created by such initiatives to upgrade our personal contact time with our customers in the Ethias offices around the country – where our people can now focus on giving expert advice regarding more particular insurance questions.

18 / © Vlerick Business School The digital mindset Looking at the results of the survey, I also fully agree with how a CIO can make a big difference. Our ICT Director, Stéphane Rassart, is really the kind of business value-driven ICT leader needed to make digital innovation become a normal part of our mindset. To give some examples, he and his team regularly organise innovation forum sessions for the business, which are very well attended and always spark new ideas on how technology can be used to the benefit of our customers. But it also works the other way around. For instance, Stéphane makes it a point for him and his people to participate in business workshops on strategy and customer orientation. I am convinced that insurance companies will struggle to keep up if they don’t have a CIO who is willing to join the business leaders in the cockpit of business change.

In sum, a big difference between us and many of our competitors is that we don’t let the specifics of the insurance market prevent us from moving forward. Naturally, as a sector, we still need to clarify a lot of the legislation that has been imposed after the financial crisis, and we also still need to work together through Assuralia to define simplified exchange protocols. But we are convinced that we are building a competitive advantage by already instilling our people across the organisation with an understanding of an insurance eco-system that will naturally include digital platforms. Warning: The risk of 7 misjudging relative progress

An organisation’s qualification as a digital leader When it comes to reducing the risk of not knowing was based on a combined measure of how far the what they don’t know, CIOs have two main options: respondents’ organisations were in deploying big first, they can intensify their engagements with data, social, mobile, cloud, and cyber technologies. business partners inside their own organisation; We can also compare this combined scoring with second, they can find ways to intensify post-digital the CIOs’ own assessments of their position in external benchmarking across the sector. deploying digital technologies compared to A first reason for the CIOs’ misjudgement of their competitors. the relative digital innovation progress may be connected to a concern expressed by some of Figure 11 shows that CIOs of digitial laggards are them during our pre-survey interviews. These CIOs more likely to misjudge their position vis-à-vis their were under the impression that the business-driven competitors. There are two possible explanations nature of post-digital technologies makes it easy for this phenomenon: these CIOs might be for business partners to set up small, disparate overestimating their own progress; or they might be pockets of post-digital technologies without much underestimating the maturity of their competitors. visibility to the CIO or the ICT department. This was confirmed by our survey.

A majority of the CIOs of banks and insurers in Digital 22% 78% Belgium agreed that the business-driven nature of leaders Incorrect Correct post-digital might challenge their grasp of digital business innovation. Figure 12 shows that CIOs of digital leaders recognise this challenge at least as much as their digitally lagging counterparts. Digital 38% 62% laggards Incorrect Correct Digital leaders Digital laggards

Figure 11: Do CIOs of digital leaders and laggards 39% NO 50% NO correctly assess their actual relative position in deploying post-digital technologies? 61% YES Such a misjudgement of one’s own position entails considerable risks. It may actually sustain a 50% YES self-perpetuating process of under-investment in post-digital technologies. CIOs of digital laggards who overestimate their own post-digital maturity or underestimate the progress of their competitors don’t feel as strongly pressured to catch up to their competitors, let alone surpass them, in post-digital Figure 12: Do CIOs of digital leaders and laggards innovation. As a consequence, digital laggards who experience the business-driven nature of post-digital technologies as a challenge to their department’s misjudge their own position are more likely to remain grasp of business innovation? in that position.

20 / © Vlerick Business School From the data, we learned that a key element in It seems that flexible governance mechanisms can solving this problem seems to be maintaining a be an important way for CIOs and ICT departments strong relationship with business partners. A strong to keep abreast of digital business innovation business-ICT relationship increases the probability initiatives. The key is to find the appropriate level of that business partners will engage with the CIO and formality and standardisation to minimise the risk the ICT department when it comes to post-digital of pushing such initiatives off the ICT department’s innovation initiatives. Figure 13 shows that, on radar due to governance mechanisms that are either average, CIOs of digital leaders are more likely too lax or too strict. to build a strong relationship with their business partners. So, it seems that, while CIOs of different banks and insurers recognise this issue equally, Digital leaders Digital laggards digital leaders are more effective in resolving it.

9% 28% yes yes Digital leaders Digital laggards Shadow ICT 91% NO 72% NO 21% 42% weak weak 79% 58% strong strong 16% yes Flexible 51% Governance 49% yes NO Figure 13: How strong is the Business-ICT relationship? 84% NO

Although a strong business-ICT relationship is a good foundation to start from, innovation investment decisions still need to be supported Figure 14: Are leaders and laggards applying by the appropriate governance mechanisms. We different governance mechanisms to asked the CIOs which type of governance situation post-digital innovations? most closely describes how initiatives pertaining to digital innovation appear on the agenda of the ICT department.

The results were quite clear in two ways. On the one hand, the upper pane of Figure 14 shows that digital laggards are about 3 times more likely to suffer from shadow ICT in post-digital innovation. In turn, the lower pane of Figure 14 shows that digital leaders are about 3 times more likely to allow for flexible governance for post-digital innovation: i.e. formal, but not necessarily heavy-burden, highly standardised, project proposals for these types of initiatives.

© Vlerick Business School / 21 A second reason for the CIOs’ misjudgement of the relative digital innovation progress may be that companies are too internally focused. This may result Banks 69% 31% Incorrect Correct in them not having a sufficient understanding of the level at which their competitors have advanced in deploying digital business innovations.

This last issue seems to be more a problem for insurers than for banks. Figure 15 shows that insurers Insurance 37% 63% Incorrect Correct are much more likely than their banking counterparts to overestimate their maturity in rolling out post-digital innovations. However, after analysing the data, this result cannot be explained by differences Figure 15: Do banks and insurers correctly assess in digital leadership, governance mechanisms or the their actual relative position in deploying post-digital technologies? strength of the business-ICT relationship. Rather, a possible explanation can be that, in general, the insurance market appears to be less transparent for insurance companies to gauge each other’s relative position. If so, might they benefit from benchmarking initiatives that would allow for more comparison amongst insurers?

22 / © Vlerick Business School w

Conclusion

Post-digital technologies (big data, social, mobile, cloud, and cyber) and changing consumer needs and expectations are stimulating the financial sector to investigate new opportunities – especially mobile opportunities. As a result, post-digital business innovations are on the agendas of most retail banks and insurers in Belgium. Although the direct impact of the financial and economic crisis has reduced overall ICT investment budgets, the impetus for digital innovation remains strong. However, not all companies are equally strong in following through on their digital intentions. In general, the banks are leading the way, while insurers are slower to adopt post-digital investments.

There appears to be a financial premium for being a post-digital leader. Moreover, post-digital leaders are more likely to have a CIO who emphasises a strong value-oriented style of leadership towards digital innovations. This suggests that the way in which CIOs conduct their own role can have an impact on their company’s chance to take advantage of this post-digital financial premium.

CIOs from both digital leaders and laggards recognise equally that post-digital technologies can challenge their grasp on post-digital innovation. However, digital leaders seem to be more effective in dealing with this challenge. Key elements in their approach are a strong business-ICT relationship and flexible governance mechanisms. This difference is also visible in the relatively high levels of shadow ICT reported by CIOs of digitally lagging companies.

Finally, digitally lagging companies - and especially insurers - do not always seem fully aware of their own position relative to their competitors when it comes to post-digital innovation. It will be crucial for FSI companies to develop more accurate mechanisms for guaging both the post-digital maturity levels of their competitors, as well as their own. Failing to do so may otherwise result in a perpetuation of systematic under-investment in post-digital innovation.

appendices Appendix 1: sample description

Total # respondents 44

Activity #

Banks 22 50%

Insurers 19 43%

Bancassurance 3 7%

Titles #

Chief Information Officer 17 39%

ICT Director 12 27%

Chief Operating Officer 5 11%

Department Head 5 11%

Other 5 11%

Reporting lines #

Chief Executive Officer 23 52%

Chief Operating Officer 10 23%

Chief Financial Officer 11 25%

Membership Exec. Committee #

Yes 15 34%

No 29 66%

Experience Levels Mean Total (Years) (Years)

In financial services 17,3 761

In information systems 19,4 853

In current position 6,3 284

Before continuing to the questions, please consider the following notes:

• If a question refers to ‘your organization’, please answer according to the situation at the company for which you are the highest ranked executive in charge of ICT.

• also please consider ‘innovations’ to be all investments oriented towards significant transformations to business processes, services, service ecosystems, and/or management systems and processes.

• completing the survey should take about 15-20 minutes. If you are not able to finish the whole survey in one go, you can always close your browser and afterward use the same link to finish it. Data collection will be closed on Friday 19 April 2013.

thank you again for you cooperation.

Q1 tO what degree do you agree that your organization is investing In the following business innovations? (Select one option per row) 1 structural innovations to the production and delivery of existing services (e.g. lean and work flow automation) 2 the introduction of new services (e.g. ATM finders and location based insurance services) 3 the orchestration of new financial service eco-systems with rd3 parties (e.g. e-wallets and peer-to-peer banking and insurance) 4 structural innovations to management and support systems and processes (e.g. e-HRM, analytical marketing and paperless working)

Strongly Agree Neither Disagree Strongly Don’t know agree agree nor disagree disagree

Structural innovations to the production and o o o o o o delivery of existing services

The introduction of new services o o o o o o

The orchestration of new financial service eco-systems o o o o o o with 3rd parties

Structural innovations to management and o o o o o o support systems and processes

<5% 5%–10% 10%–20% 20%–25% >25% Don’t know

Share of such business innovations in the o o o o o o ICT budget

Q3 tO what extent do you agree with the following statements about the relative share of such business innovations in your organization’s ICT budget? (Select one option per row)

Strongly Agree Neither Disagree Strongly Don’t know agree agree nor disagree disagree

The share of these innovations was significantly o o o o o o reduced when the crisis broke out

The share of these innovations has been growing since o o o o o o the outbreak of the crisis

The share of these innovations will be growing in the o o o o o o coming 5 years

Q4 tO what extent is your organization investing in the following clusters of technologies? (Select one option per row) 1 big data: capturing and analyzing large and complex data sets (e.g. to identify commercial opportunities, to monitor social media, and to detect fraud) 2 social: using social technologies to reach consumers or connect employees (e.g. advanced social media campaign/brand management systems and internal microblogging) 3 Mobile: providing mobile services to customers and employees (e.g. mobile apps and location based services) 4 cloud: providing and managing cloud-based services for both core and non-core activities 5 cyber: the advanced use of electronic and cyber identification capabilities (e.g. the use of e-ID and e-wallets)

No Interest Researching/ Experi- Rolling Out Operational Operational Investigating menting/ Towards >6 Months Piloting Production Big data o o o o o o Social o o o o o o Mobile o o o o o o Cloud o o o o o o Cyber o o o o o o

Extremely Rather Neither Rather Not at all Don’t know important important important nor unimportant important unimportant Big data o o o o o o Social o o o o o o Mobile o o o o o o Cloud o o o o o o Cyber o o o o o o

Q6 What kinds of business innovations is your organization pursuing WIth each of the following technologies? (Multiple selections possible per row)

Structurally Introducing Radically Structurally There Don’t know innovating new innovating innovating isn’t any operational services service support and significant production to existing eco-systems management interest processes and/or new systems and for this and systems clients processes technology in our organization Big data o o o o o o Social o o o o o o Mobile o o o o o o Cloud o o o o o o Cyber o o o o o o

Q7 Do you think your organization is currently investing enough In these technologies? (Select one option per row)

Far Rather About right Rather Far too little too little level of too much too much investment investment investment investment investment Big data o o o o o Social o o o o o Mobile o o o o o Cloud o o o o o Cyber o o o o o

28 / © Vlerick Business School Q8 What internal barriers, if any, might impede your organization From investing in each of the following technologies? (Maximum 3 answers per row)

Lack No strong Other, Internal Weak Lack of Organizatio- Restrictions None Don’t of CEO value non-discre- security innovative technical nal structures coming know sponsor- proposition tionary concerns culture implemen- not suited from parent ship priorities (e.g. fraud) tations to take company (e.g. M&A, skills advantage of legal, ...) technology Big data o o o o o o o o o o Social o o o o o o o o o o Mobile o o o o o o o o o o Cloud o o o o o o o o o o Cyber o o o o o o o o o o

Q9 What external barriers, if any, might impede your organization From investing in these technologies? (Maximum 3 answers per row)

External Insufficient Legal Concerns Absence Recessionary Lack of Change of None Don’t security customer issues (e.g. over of industry economy opportunities company know concerns demand privacy) regulator’s standards to test and ownership (e.g. or need stance learn from hacking) towards less mature outcome markets Big data o o o o o o o o o o Social o o o o o o o o o o Mobile o o o o o o o o o o Cloud o o o o o o o o o o Cyber o o o o o o o o o o

Q10 Where do ideas for new initiatives originate from when it comes to the following technologies? (Select one option per row)

Largely from the Largely from ICT Equally from the Not applicable business business and ICT Big data o o o o Social o o o o Mobile o o o o Cloud o o o o Cyber o o o o

Nearly all initiatives Most initiatives We are mostly Not applicable pass through our are submitted confronted with closely governed as formal, but accidentally enterprise-wide not necessarily discovered prioritization and standardized ‘shadow’ business selection process project proposals initiatives Big data o o o o Social o o o o Mobile o o o o Cloud o o o o Cyber o o o o

Q12 Which business leadership role is becoming the most important FOr you as CIO when it comes to helping your organization towards Successful investments in each of the following technologies? (Select one option per row)

Being an Educating the Planning the Leading the Don’t know effective business on execution business by business value creation of business example visionary strategy Big data o o o o o Social o o o o o Mobile o o o o o Cloud o o o o o Cyber o o o o o

Q13 tO what extent do you agree with the following statements? (Select one option per row)

Strongly Agree Neither Disagree Strongly Don’t agree agree nor disagree know disagree

Most business value from these technologies will only come from o o o o o o innovatively combining them

Our business is currently too much focused on the hyped potential of o o o o o o individual technologies

The business-driven nature of these technologies is challenging my ICT department’s grasp on digital business o o o o o o innovation in our organization

When it comes to these technologies, the business generally appreciates ‘supply-side’ considerations with o o o o o o regards to, e.g. operational reliability, legacy issues, or security

30 / © Vlerick Business School Q14 hOW would you rate your organization’s financial performance In its most recent fiscal year compared to that of your competitors? o significantly ahead of peers o Ahead of peers o on par with peers o behind peers o significantly behind peers o don’t know

Q15 hOW would you rate your organization’s innovative application OF the kind of technologies discussed in this survey, i.e. big data, SOcial, mobile, cloud, and cyber? o significantly ahead of peers o ahead of peers o on par with peers o behind peers o significantly behind peers o don’t know

Q16 hOW would you rate the relationship between the business and ICT in your organization? o very weak o Rather weak o neither weak, nor strong o rather strong o very strong

Q17 Which description most closely reflects your organization’s profile? o banking company o non-life insurance company o life insurance company o universal banking and insurance company o other ......

Q18 For banking, which is your company’s main market entry mode? o network of wholly owned branches o network of independent agents o on-line direct o other ...... o not applicable

© Vlerick Business School / 31 Q19 For insurance, which is your organization’s main market Entry mode? o network of wholly owned branches o network of independent agents o on-line direct o other ...... o don’t know o not applicable

Q20 Which situation best describes your organization’s decision POWEr over business innovations? o I’m part of the head office, which has full decision power over business innovations. o I’m part of a local/regional decision centre, which has near full decision power over business innovations. o I’m part of a local/regional branch, which has limited decision power over business innovations. o other ......

Q21 What were your organization’s total assets in the last fiscal year? (In million Euro) o <10k o 10k–30k o 30k–50k o 50k–100k o 100k–200k o >200k o don’t know o not applicable

Q22 What were your organization’s insurance premiums collected Over the last fiscal year? (In million Euro) o <50k o 50k–100k o 100k–200k o 200k–500k o >500k o don’t know o not applicable

Q23 What percentage of revenue does the ICT budget represent In your organization? o <3% o 3%–5% o 5%–10% o 10%–15% o >15%

32 / © Vlerick Business School Q24 What is the span of ICT responsibilities you oversee as CIO? (Multiple answers possible) o core operational information systems o customer facing information systems o support & management information systems

Q25 Which of the following best describes your title? (Multiple answers possible) o chief Information Officer o ICT Director o chief Operations Officer o chief Executive Officer o other C-level Executive ...... o department Head o other ......

Q26 Who do you directly report to? o chief Executive Officer o chief Operating Officer o other ......

Q27 are you a formal member of the Executive Committee of your organization? o Yes o No

Q28 What is your experience level in the following areas? (in years)

Experience in years Experience in the financial services industry ...... Experience in information systems management ...... Tenure in current position ......

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