Digital Innovation Summit “The Digital MovemenT ”

1. Welcome to the 5th edition of the Digital Innovation Summit“The Digital MovemenT” Martin Hermsen, Sia Partners martin.hermsen@sia-partners.com

2. #DIS2019 Agenda Digital innovation Summit 2019 by Sia Partners

3. Sia Partners is a next generation consulting firm and a pioneer of Consulting 4.0 BUSINESS TRANSFORMATION Next generation unique blend CREATIVITY & DESIGN DATA & DIGITAL • $280M • revenue for FY19/20 • 25 offices in • 16 countries 3 Data Science centers • CAGR of • 22% over the last 3 years • 1,500 • Consultants • 500 clients • 92% returning Digital innovation Summit 2019 by Sia Partners

4. Consulting 4.0, our innovative ecosystem Productivity Tools Collaborative Tools Design Thinking Lab MOOCs DataSets & DataLab Data Science Showroom APIs & Consulting Bots RPA IoT Data Management Cybersecurity Blockchain DevOps Serverless PaaS Quantum Computing Volumetric Displays Voice Recognition/Virtual Assistants Taxonomy & Ontology Augmented/Virtual Reality Drones Conversational User Interfaces BIM Autonomous Vehicles Connected Home Digital Due Diligence Innovative Ecosystems Digital Trends Observatory Digital Assessment & Strategy Data Monetization Transformation Hub New ways of working POC to industrialization Digital marketing agency E-commerce AI Startup trends Learning Expeditions Students Contests | Hackathon Sia Ideas Open Source Thought Leadership Digital innovation Summit 2019 by Sia Partners

5. Where We Are What we do OUR BUSINESS UNITS THE NETHERLANDS AMSTERDAM A global coverage with 25 offices A local presence in the Netherlands since 10 years ENERGY & UTILITIES FINANCIALSERVICES CONSUMER GOODS & RETAIL PHARMACEUTICALS DIGITAL, MARKETING & CUSTOMER EXPERIENCE Digital innovation Summit 2019 by Sia Partners

6. The State of Digital Digital InnovationSummit Digital innovation Summit 2019 by Sia Partners

7. The Digital Innovation Summit Partners Digital innovation Summit 2019 by Sia Partners

8. DIGITAL AROUND THE WORLD IN 2019THE ESSENTIAL HEADLINE DATA ON GLOBAL MOBILE, INTERNET, AND SOCIAL MEDIAUSE TOTAL POPULATION UNIQUE MOBILE USERS INTERNET USERS ACTIVE SOCIAL MEDIA USERS MOBILE SOCIAL MEDIA USERS 7,676 BILLION URBANISATION: 56% 5,112 BILLION PENETRATION: 67% 4,388 BILLION PENETRATION: 57% 3,484 BILLION PENETRATION: 45% 3,256 BILLION PENETRATION: 42% Digital innovation Summit 2019 by Sia Partners

9. ANNUAL DIGITAL GROWTHTHE YEAR-ON-YEAR CHANGE IN KEY STATISTICALINDICATORS TOTAL POPULATION UNIQUE MOBILE USERS INTERNET USERS ACTIVE SOCIAL MEDIA USERS MOBILE SOCIAL MEDIA USERS +1.1% JAN 2018 – JAN 2019 +84 MILLION +2.0% JAN 2018 – JAN 2019 +100 MILLION +9.1% JAN 2018 – JAN 2019 +367 MILLION +9.0% JAN 2018 – JAN 2019 +288 MILLION +10% JAN 2018 – JAN 2019 +297 MILLION SOURCES: POPULATION: UNITED NATIONS; U.S. CENSUS BUREAU. MOBILE: GSMA INTELLIGENCE. INTERNET: INTERNETWORLDSTATS; ITU; WORLD BANK; CIA WORLD FACTBOOK;EUROSTAT; LOCAL GOVERNMENT BODIES AND REGULATORY AUTHORITIES; MIDEASTMEDIA.ORG; REPORTS IN REPUTABLE MEDIA. SOCIAL MEDIA: PLATFORMS’ SELF-SERVE ADVERTISING TOOLS; PRESS RELEASES AND INVESTOR EARNINGS ANNOUNCEMENTS; ARAB SOCIAL MEDIA REPORT; TECHRASA; NIKI AGHAEI; ROSE.RU. (ALL LATEST AVAILABLE DATA IN JANUARY2019). Digital innovation Summit 2019 by Sia Partners

10. Many companies struggle to incorporate digital and find digital investment ROIs to be poor Challenge to Scale Challenge to Monetize Challenge to Integrate Challenge to Delight ! ! ! ! • How to make digital a substantial part of our business? • How to accelerate our digital transformation? • How to integrate digital across our business? • How to develop a true digital mindset? • How to digitize our business and channels? • How and when will digital profits exceed the digital investments? • How to take the right investment decisions, even if it • How to innovate in a digital world? • Hoe to delight our customers? • How to truly master the omnichannel customer experience? Digital innovation Summit 2019 by Sia Partners

11. Digital is a mature function within the company and hosts a significant part of the company’s business • Digital and the business core are not well integrated and don’t operate seamlessly in the eyes of customers and partners • Operational inefficiencies emerge and data quality is inadequate to run analytics and derive meaningful insights • Centre(s) for digital innovation scout, develop and test new applications and solutions • A dynamic way of working and learning culture challenges traditional thinking and management styles • Scaling successful innovations and embedding them in the core business has proven difficult and time-consuming • Business impact is limited and ROI is still questionable • Customer satisfaction has significantly improved from changes made • digital and core are well aligned and work seamlessly across channels and business domains • Market position may have improved, but gross margins are under pressure • Efficiency gains have been limited and ROI is less than was initially expected • A new operating model has been established where digital and business core are well integrated • New ways of working replaced more traditional work methods • Efficiency has improved • Customers do not seem to benefit from changes made • The company’s market position has not improved Digital innovation Summit 2019 by Sia Partners

12. The Challenge to Delight Social ads Email Loyalty program Social networks Brand social network Reviews / blog Community forum Online ads (PPC) Website Brand content (newsletter, social media…) Media Blog Call centre / chat… Purchase Advocacy Awareness Consideration Retention Promotions / direct marketing Direct mail Key opinion leaders (KOLs) on social media Store Radio TV E-commerce S-commerce Outdoor advertising Digital innovation Summit 2019 by Sia Partners

13. Connect the employee learning journey to the customer journey Customer experience Store performance MAPPING THE CUSTOMER JOURNEY… Customer journey Walking in Asking Fitting Deciding Buying Browsing …TO EMPLOYEE LEARNING Being ambassador Connecting Identifying CJ Advising Leveraging digital tools Selling Learning Employee learning needs Employee learning journey Digital innovation Summit 2019 by Sia Partners

14. The Challenge to Monetize Digital innovation Summit 2019 by Sia Partners

15. The Challenge to Monetize Do nothing Keep the business As-Is. Keep digital investments at a minimum • Accelerate your core strategies • Implications common to all constitute the “core strategy” • Core strategies are “no regret bets” • Select your contingent strategies • Be selective, but persuasive Compete on price Invest in price, decrease costs, streamline COGS Optimize Assortment Increase assortment and choice. Consider exploiting the longtail. Digital Value Creation Strategies Omnichannel Retailing Invest in digital to innovate omnichannel retailing to deliver an innovative customer experience. Digital Distribution Distribute your products thru new channels by developing digital enabled market opportunities Develop new business models Add new revenue stream to the business by exploiting the customer base and data. Bold move Make new bold moves by capitalising on your network, customer base, data and digital platform. Digital innovation Summit 2019 by Sia Partners

16. How do youthinkthefuture looks like in the next 3 to 5 years? Digital innovation Summit 2019 by Sia Partners

17. #DIS2019 Agenda Digital innovation Summit 2019 by Sia Partners

18. Break-Out Sessions Digital innovation Summit 2019 by Sia Partners