Switzerland is an ideal location for digital innovations

Thanks to an Internet-savvy population, Switzerland has excellent opportunities to establish itself as a digital innovation laboratory. New digital products and services could thus be developed and launched across various industries. This is the conclusion reached by the strategy consultancy Oliver Wyman on the basis of a recent study. However, security concerns on the part of end customers are still hampering this development. Technology companies and online retailers are the most skeptical. Cross-industry cooperation and improved rules for handling personal data, as well as the clear positioning of added value for customers, could strengthen trust and further accelerate the growth of Switzerland as a digital location.

A life offline? For many Swiss, that's unthinkable. Nearly two-thirds of the Swiss surveyed say they can't go more than a day without online access. They are also very active on the Internet in their private lives: three quarters surf for more than two hours a day outside of work.

These are the findings of the study "Switzerland's Digital DNA" by Oliver Wyman, which is based on a representative survey of 2100 people. "Companies could make even greater use of the high internet affinity of the Swiss to launch new products and services," says study author Nordal Cavadini, a partner at Oliver Wyman in Zurich. "The country could thus become the digital innovation laboratory in Europe," adds co-study author Martin Gahr, a consultant at Oliver Wyman in Zurich.

However, the authors see the protection of private data, which still needs to be improved, as a potential obstacle. One-fifth of respondents have already been victims of cybercrime. 77 percent of respondents fear growing cybercrime and 68 percent call for more regulation in this regard: Business and politics are called upon to reduce existing security concerns.

In general, the Swiss surveyed are very open to digital technology: 67 percent state that it will have a positive impact on their lives. 74 percent expect work to be simplified, 57 percent anticipate new jobs as a result of digitization, depending on the respective industry. 66 percent hope for a boost in education, and 58 percent foresee positive effects on health. The Internet is still predominantly used in Switzerland for information and exchange. Personal communication achieves the highest value with 79 percent, ahead of fact checks with 61 percent.

Added value for the customer through business collaboration

For companies, it is now a matter of benefiting from the good conditions and generating added value for their customers with digital business models. But there is pent-up demand for digital offerings, especially outside the traditional online platforms. The Oliver Wyman experts expect new alliances - even between today's competitors: "Unconventional partnerships will more often see the light in the digital age, " says Cavadini. The public sector is also coming into focus for cooperations, such as hospitals, health insurance companies or universities, which, according to the survey, enjoy particularly high levels of trust among the population when it comes to handling personal data. "It would not be surprising if companies from industry or the service sector cooperate with such institutions," says Cavadini.

Almost three-quarters of respondents are currently reluctant to share personal data. In addition, 63 percent are concerned about how companies encrypt and store them. Strong differences are revealed when it comes to the question of who the Swiss entrust with personal information. Technology companies and online retailers fare the worst: Only 26 percent of respondents said they trusted technology companies to pass on their data, compared with 27 percent for online retailers. By way of comparison, doctors, hospitals and health insurance companies scored 64 percent, banks 62 percent, and universities, colleges and research institutes were also far ahead with 55 percent. Only by working together can we ensure greater credibility, says Joris D'Incà, Head of Switzerland at Oliver Wyman: "Cantons, cities and companies have an obligation to ensure clear data protection guidelines. If they don't act on the trust deficit issue, it could jeopardize future growth."

Data against lower prices

Overall, the Swiss are aware of the risks when dealing with personal data. Take geotagging, for example: 92 percent of respondents are certain that smartphones can store and play back locations. 79 percent express the view that the government could relatively easily track Internet history and query most personal information as well as health and financial data. "The Swiss accept that personal data is collected," Cavadini says. "They welcome getting better prices or personalized services in return." Seventy-eight percent associate digitization with cheaper end prices. From this, Cavadini concludes, "New Economy can also be a way out of the high price island."

About the study

For the study "Switzerland's Digital DNA," Oliver Wyman surveyed more than 2100 Swiss (Internet users and offline users) in February 2017 in the two major national languages, German and French, regarding their attitudes toward the topic of digitization. They were asked about topics including Internet use, hopes and fears, trust, and future changes.