IGITAL GREECE HE PATH TO GROWTH OGISTICS KONSTANTINOS GEORGIOU MANAGEMENT CONSULTING MANAGER ACCENTURE

THE 4 TH INDUSTRIAL REVOLUTION

DISRUPT OR BE DISRUPTED TIME TO REACH 50 MILLION USERS DIGITAL IS ALREADY A GAME CHANGER BUSINESS MODEL DISRUPTION Telephone 75 Years Taxis World s largest taxi company Radio 38 Years Real Estate World s largest accommodation provider Television Mobile Phone Internet Facebook Angry Birds PokemonGo! 4 Years 3,5 Years 35 Days 19 Days 13 Years 12 Years Telco Infra Inventory Content Actual Inventory Cinemas World s largest phone companies Most popular media owner World s fastest growing bank World s largest movie house Source: Accenture Strategy Energy Copyright 2017 Accenture. All rights reserved. 4 Apps World s most valuable retailers World s largest software vendor

CORPORATE LIFE EXPECTANCY CONTINUES TO DECLINE AVERAGE COMPANY LIFESPAN ON S&P INDEX IN YEARS KEY TRENDS 90 2 weeks Replacement rate for S&P 500 companies 61-84% 14 years Estimated lifespan of an S&P 500 company in 2026 25 18 14 Share of S&P 500 expected to be replaced over the next 10 50% years 1935 1958 1980 2011 2026 Copyright 2017 Accenture. All rights reserved. Source: Innosight, Corporate Longevity: Turbulence ahead for large organizations, Spring 2016. Replacement rate is calculated by dividing the number of exiting companies in a given year by the total companies in S&P 500. 5

DIGITAL DISRUPTION RESHUFFLES THE FUNDAMENTALS OF BUSINESS, LIFE, WORK AND GOVERNMENT Companies 4 out of 5 State at least 30% of major business processes currently rely upon digital technologies 52% Expect digital to cause significant change or complete transformation in their industries Consumers From a mass-customized, pre-produced product to an individually tailored and created on demand product From a product bought in a physical location to a product bought online and delivered today Employees HOW work is organized By 2025, 45% of workers will be contractors WHAT work is performed Technology has made us five times more productive since 1972 WHO performs the work 80% of companies lack big data skills HOW work is led 2x direct reports to CEOs in 2 decades Government From an Analogue Government that asks from citizens the same information multiple times To a Digital Government that is transformed to a public service provider and provides citizen-centric services Copyright 2017 Accenture. All rights reserved. 6

ACCENTURE & SEV DIGITAL GREECE STUDY EVALUATION OF THE DIGITAL STATE OF THE NATION AND DESIGN OF THE WAY FORWARD GLOBAL DIGITAL DISRUPTION GREECE S DIGITAL ANATOMY THE GREEK DIGITAL VISION & DIGITAL STRATEGY THE EXECUTION OF THE GREEK DIGITAL STRATEGY Digital Greece: The Path for Growth Input used: ACN Secondary Research Econometric Models Questionnaire of Perceived Digital Maturity Copyright 2017 Accenture. All rights reserved. 8

THE SIZE OF THE GREEK DIGITAL ECONOMY 29bn 16% Greece s low digital maturity score, both at a national and at an industry level, results to a limited contribution to the Greek economy The Greek digital economy is currently worth 16.3% of the Greek GDP. This is equivalent to contributing 29bn to the Greek GDP Source: Oxford Economics, Accenture analysis Copyright 2017 Accenture. All rights reserved. 9

HOW DIGITAL IS GREECE? DESI INDEX Digital Frontrunners Digital Followers Digital Laggards Denmark Austria Hungary Finland Germany Cyprus Sweden Malta Poland Netherlands Luxemburg Belgium UK Ireland Lithuania Spain Portugal France Slovenia Croatia Italy Greece Bulgaria Romania Greece is ranked 26th out of 28 countries in the Digital Economy and Society Index (DESI) and scores at the lower end of the digital laggards group Estonia Czech Rep. Latvia Slovakia Source: DESI Index, European Commission, 2017 Copyright 2017 Accenture. All rights reserved. 10

LET S TRY ANOTHER INDEX DIGITAL ECONOMIC OPPORTUNITY INDEX (DEOI) DIGITAL SKILLS DIGITAL TECHNOLOGIES DIGITAL ACCELERATORS WHY DEOI? 1 CONNECTION OF DIGITAL MATURITY WITH PRODUCED ECONOMIC VALUE The digital nature of occupations and the skills and knowledge required for people to perform their jobs The productive assets related to digital technologies (hardware, software and communications equipment) The environmental, cultural and behavioral aspects of digital components of the economy that support digital entrepreneurship or activities COMPARISON BETWEEN GREECE AND ITS GLOBAL PEERS WITH REGARDS TO VALUE CREATION Copyright 2017 Accenture. All rights reserved. 11 2

LET S TRY ANOTHER INDEX DEOI INDEX Digital Skills Digital Technology Digital Accelerators Stock of digital skills Digital Skills Development Digital Ways of Working Digital Capital Stock Digital Engagement Digital Enablement National Communications Infrastructure Open Data/ Digital Service Provision Digital Business Environment Greece Greece Greece Greece Greece Greece Greece Greece Greece Austria Belgium Czech rep. Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Russia Spain Sweden Switzerland Turkey UK Source: Oxford Economics, Accenture analysis Copyright 2017 Accenture. All rights reserved. 12

WHY SO BAD? Absence of a National Digital Vision Lack of Continuity in the National Digital Strategy Conflation of the National Digital Strategy with the ICT strategy Limited interconnection and synergies between the Private Sector and Greek Academia Outdated Regulatory Framework/ Inflexible Data Protection Regulation Lack of meaningful collaboration between the Private and the Public Sector Absence of a structured Performance Management Framework Absence of a Digital Governance Model Lack of an attainable action plan Copyright 2017 Accenture. All rights reserved. 13

WHAT CAN WE ACHIEVE IF WE DID SOMETHING ABOUT IT? Additional GDP Growth by 2021: 4,9 7,6 bn 199,8 bn 197,1 bn 192,2 bn +4,9 (2,6%) +7,6 (4,0%) 2021 Baseline GDP Lower Range of GDP uplift Upper Range of GDP uplift Copyright 2017 Accenture. All rights reserved. Source: Oxford Economics, Accenture Analysis 14

Low Technology Evolution Progress Radical GREECE S REQUIRED I-LIFT Holistic Strategies Accelerate the rotation to digital Targeted Strategies Lead the rotation to digital j-shift Fundamental Strategies Enable the rotation to digital Progressive Strategies Facilitate the rotation to digital Low Digital Maturity High Copyright 2017 Accenture. All rights reserved. Πηγή: Ανάλυση Accenture 15 Ψηφιακή Ωριμότητα

WHERE TO START FROM? INITIATIVES FOR THE ROTATION Design the digital roadmap Introduce the Digital Strategy Office Formulate a strong Data Management Capability Provide transport planning & route optimization Introduce the connected fleet Digitalize the picking process in the warehouses Implement range imaging sensor systems Build a predictive maintenance solution Integrate the supply chain processes Digitalize & automate the warehouses Automate back-office processes Transform the Digital Talent Increase the security of the internal systems Copyright 2017 Accenture. All rights reserved. 20

THE FUTURE IS NOW! UBERIZATION OF TRANSPORTATION Uber-like platforms are here to stay, expand and become a relevant step towards Independent Logistics Grids. Promises to shake up the transportation industry in a myriad of ways: expediting revenue allocation, disintermediating freight broker control of the market, and driving more efficient use of assets and working time. Based on client pilots we estimate uber-like platforms can reduce rates as much as 10 to 20 percent, and empty miles up to 15 percent. An example is Walmart, which recently announced to start a test with a grocerydelivery service with Uber and Lyft to address rising last mile delivery costs. An Uber-like platform for freight and cargo will likely complement rather than replace existing contract logistics arrangements in providing services to large shippers. We have never been closer to Independent Logistics grids; driven by digital technologies, a flexible plug and play network of logistics partners that drives maximum efficiency is becoming quickly reality. Copyright 2017 Accenture. All rights reserved. 21