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Trust in the Digital Age UST in the DIGITAL AGE TR the Magazine for Decision Makers Ceo

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Trust in the Digital Age UST in the DIGITAL AGE TR the Magazine for Decision Makers Ceo December 2017 December 2017 ceoThe magazine for decision makers Trust in the Digital Age UST IN THE DIGITAL AGE TR The magazine for decision makers ceo 92239_UG_ceo-Magazine_e_17_10_31.indd 3 06.12.17 13:17 Data – the raw material of the future Data are intelligent in their own way. High-tech analytics and machine learning make it possible to mine an enormous amount of valuable ore – in the form of knowledge and observed experiences – from the mountains of data that span the globe these days. This knowledge can be used in countless beneficial ways; for example, in the healthcare system for more effective therapies. But those who compile, process or use data must ensure the integrity and security of that input, especially when it comes to personal data. Alas, Big Data and today’s dependence on computer technology offer cybercriminals fertile ground. This is why the security of data, IT systems and processes is at the top of corporate executives’ agenda. The inside cover photo offers a peek behind the curtains at Open Systems Ltd, a firm that ensures the security of its customers’ IT infrastructure. Publisher: PwC, Birchstrasse 160, 8050 Zurich, Switzerland Layout: PwC, Katrin Baur, Birchstrasse 160, 8050 Zurich, Switzerland We asked our interview partners what the three Graphics processing/print: hashtags might be that describe them best. Their answers Linkgroup Ltd, Mühlebachstrasse 52, can be found at the beginning of each article. 8008 Zurich, Switzerland Title photo: Credit Suisse The opinions expressed by the interviewees may vary with those of the publisher. This issue of our “ceo magazine” is available in German, French and English. Circulation: 10,000. © 2017 PricewaterhouseCoopers Ltd. All rights reserved. 92239_UG_ceo-Magazine_e_17_10_31.indd 4 06.12.17 13:17 ceo 2/17 Editorial Trust is regarded as the ne plus ultra of any interpersonal relationship. And successful business partnerships are formed from trusting ties. Trust emerges only over time, yet it can be lost in a heart- beat. And in the Digital Age, trust is the number one success factor – in every respect. We have devoted this issue of ceo Magazine to a very special topic: trust. Trust is in high demand, but low in availability. According to our global CEO Survey 2017, more than half of those surveyed express concern about today’s dearth of mutual confidence. There are many reasons for this scepticism: new digital technologies, social media, competitors from outside the industry, and today’s seemingly bottomless seas of data. Ever faster, ever vaster, ever more networked – digitisation has fundamentally changed the playing field. Top-down becomes peer-to-peer. The boundaries between the physical and virtual worlds blur. And despite it all: offline survives. Whether the uniqueness of interpersonal encounters can be fully virtualised is one of the big questions of the future. Along with the digital means of communication, the way co-workers interact changes, too, as do corporate cultures. It comes as no surprise that good performances are the direct result of motivation and identification. Hence companies these days permit modern working nomadism, install transnational and interdisciplinary teams, as well as invest in the workplace of the future. Our interview partners come from various industries, represent both start-ups and global corporations, and apply fundamentally different business models. But each of them relies on the trust of their customers, business partners and employees. Because they are fully aware of the importance and driving force of trust. And all of them view the digital transition as an opportunity – a chance to solidify trust. This by using data in a value-adding manner, creating Urs Honegger transparency, implementing innovations, enhancing quality, monitoring risks, assuming social CEO PwC Switzerland responsibility and developing sustainable solutions. We wish you a mind-broadening read. Urs Honegger ceo 3 92239_IH_ceo-Magazine_e_17_10_31.indd 3 06.12.17 13:14 Internet of Things Physical objects embedded with sensors, software, and network connectivity capture and analyse information Artificial intelligence to fulll business objectives. Machine learning has 73 % potential to create new products and services. 63 % Blockchain 63 % Distributed electronic ledger has potential for prevention 54 % of fraud. Robots Automate, augment or assist human activity. 11 % Drones 3 % Provides new modes 14 % 5 % 15 % 31 % for surveillance, survey, and delivery. 12 % 7 % 10 % 15 % 17 % 24 % Virtual reality Abolishes logistical limitations 3D printing and opens new possibilities Potential to turn any for simulation. business into a factory. Augmented reality Blending of physical and virtual world presents new business opportunities. The Essential Eight – Investments in Key Emerging Technologies* today and 2020 Which of the following technologies are you making * Technologies that will sustain revenue growth and enhance substantial investments in? (All that apply) business operations. This is measured by the following criteria: the technology’s relevance to companies and industries; global Today reach; technical viability, including the potential to become mainstream; market size and growth potential; and the pace In three years of public and private investment in them. 4 ceo Source: Based on PwC 2017 Global Digital IQ®Survey 92239_IH_ceo-Magazine_e_17_10_31.indd 4 06.12.17 13:14 ceo 2/17 Interview Courage and responsibility in balance PwC experts Reto Häni and Andreas Eschbach on the success factors behind a leap into the digital age. Digitisation has changed the business world what information they collect, as well as how #passion_for_security from the ground up. What does it take to be they handle and protect that data. #curiosity #candour successful in this era? Andreas Eschbach: In the B2C business, portals Reto Häni: Courage, speed and responsibility. help to ensure transparency – at least in terms It takes courage to use digitisation in a way that of price, service and customer satisfaction. creates something new and different. Swiftness However, the security of customer data is usually is important as well: try something out quickly not addressed here. Certifications are confi- and accept the risk that it won’t work. Moreover, dence-building, as they attest to a company’s companies need to protect their customers’ data compliance with international safety standards. as they would a precious physical asset. But in the B2B sector, companies need a sophisti- cated security concept. Only the fewest companies Andreas Eschbach: Above all, companies must we analyse for the first time are continuously be able to anticipate. Every organisation needs and optimally protected in a way that is ideally employees who can grasp not only the techno- suited to their business model, their geographical logical changes and opportunities, but also their business activities and their corporate structure. Reto Häni risks, and evaluate the chances for their applica- Partner and Head bility to their own business model. And this not You plead the case of using risk management of Cyber Security and Privacy, just every three to five years; rather, on an as a strategic tool. How does that function PwC Switzerland ongoing basis. in actual practice? How can the right balance be struck between Andreas Eschbach: One example is real time risk #TechGeek #tinkerer the opportunities of digitisation and the assessment. Most companies conduct quarterly #entrepreneur dangers associated with digital progress? or semi-annual risk assessments. However, those who follow the risks in real time can readily Andreas Eschbach: Businesses shouldn’t turn identify trends and possible threats. This allows a blind eye to the new. Instead, they should the company to react proactively instead embrace the credo “Learn fast, fail fast”. In this of reactively, which in today’s world gives the regard, an innovation centre can be a good place business a strategic edge. for enabling employees to develop innovative approaches and – here, too – take the inherent Anyone who follows the media can’t avoid risks into account in the overall evaluation. But getting the feeling that cyber attacks have not everything that is technically doable is also increased significantly in recent years. Does meaningful. I advise companies not to get this impression match with your experience? involved in every hype that comes along. And what is the greater risk factor: the human Reto Häni: On one hand, it’s right to forge bravely being or the IT system? Andreas Eschbach ahead with digitisation. It offers many opportun- Reto Häni: Yes, cyber attacks are increasing Partner and Head of Risk Assurance Services, ities: from automation and higher efficiency to significantly these days. Frequently, companies PwC Switzerland entirely new business models. However, it’s just don’t even notice they’re being attacked – and the as important to be aware of the potential pitfalls number of unreported cases is still high, despite on every step of the way. Data protection and the greater visibility. Moreover, the attacks today security don’t belong at the end of this process – are so professional that the lone hacker is no those measures are part of the process, always. longer the primary risk. Investment in security How can companies secure the trust of their technologies is therefore becoming increasingly customers and business partners? important. Reto Häni: By making them aware that their data are valuable and, as such, are being treated with the utmost care. Transparency is fundamental to creating trust. Companies should clearly indicate ceo 5 92239_IH_ceo-Magazine_e_17_10_31.indd 5 06.12.17 13:14 “Trust has to be earned each day – and with everything we do.” Susanne Ruoff CEO of Swiss Post 6 ceo 92239_IH_ceo-Magazine_e_17_10_31.indd 6 06.12.17 13:14 ceo 2/17 Content 8 Urs Rohner 12 Bruno Giussani 16 Tobias Häckermann 18 Alain Dehaze 22 Susanne Ruoff counts on trust and spreads ideas with digitises what’s on makes workers fit for links the physical with confidentiality. added value. the agenda. the future.
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