Where does Switzerland stand?

In a survey of major Swiss companies, *Werbewoche* sought to assess the current state of affairs regarding the use of big data.

Big data, i.e. the use of large amounts of data to gain insights and competitive advantages, is regarded as an important technology of the future, which will significantly change our lives in the future with the Internet of Things, as sensors are constantly supplying more data everywhere (see Werbewoche 18, 10.10.2104, p. 22ff). While there are government funding initiatives in the USA and the EU, there are no such initiatives in Switzerland. Is this why Switzerland is missing the boat? Werbewoche conducted a survey of large Swiss companies to find out how they currently deal with big data. The most striking result of this research was the extraordinarily large number of refusals - but perhaps this was actually due to the fall vacations (or all the other reasons given) and not an indication of not wanting to reveal any gaps here. Nestlé's statement is an example of this: "We are closely monitoring and analyzing developments in the field of big data. The handling of our data is an internal matter that we generally do not comment on. For competitive reasons, we also do not provide any information on our internal organization. We ask for your understanding."

The two major distributors Migros and Coop are probably the most obvious candidates for the use of big data, not least because of the Cumulus and Supercard loyalty cards. Migros media spokeswoman Martina Bosshard confirms: "We have the opportunity to quickly evaluate large amounts of data and gain insights from it." Such evaluations are primarily carried out as part of the Cumulus customer loyalty programme in order to be able to make personalized offers to customers, to improve the product ranges in the stores or to evaluate new locations for stores. In addition, customers can be informed quickly and directly in the event of a recall. Coop media spokeswoman Nadja Ruch also states: "Big data has also been an issue for Coop for some time. " Marketing and Supply Chain Management in particular are dealing with it, and there is a department in Marketing that is responsible for the corresponding, diverse data analysis. The insights gained in this way flow into location planning, product range planning in individual stores or pricing and promotion design, for example, which ultimately benefits customers. Big data analyses are also increasingly being used for customer-specific communication and to offer customers tailored benefits.

Rail, Swiss Post and Swisscom make it ...

Big data has also arrived at large state-affiliated companies. Oliver Flüeler, Head of the Media Office at Swiss Post, does not want to go into detailed questions, but basically states: "In contrast to the USA, Switzerland is still in its infancy when it comes to big data. " There are initial approaches not only in logistics, but also in the e-commerce sector, for example. Sepp Huber, Head of Media Services at Swisscom AG, is more forthcoming. He reports that the telecoms giant has set up a big data competence center and is trying to use big data technologies to optimize internal processes, improve the state of its infrastructure and thus reduce investment costs, position new types of services on the market and also facilitate research in this area. SBB also has a big data project that is part of the IT department, as Stephan Wehrle, Head of Media Office, explains. There are various potential applications in the individual divisions, particularly in the area of maintenance. He mentions, for example, the evaluation of measurement data from diagnostic vehicles and the analysis of faults in locomotives and vehicle doors. However, big data can also make the work of analysts much easier when it comes to traffic projections, evaluating services and planning services.

... and the insurance companies too

Insurance companies have always tried to optimize their risks with statistical calculations. So it comes as no surprise when Michel Liès, CEO of Swiss Re, said at the annual meeting of reinsurers in Monte Carlo in mid-September: "Big data has the potential to fundamentally reshape the (re)insurance industry and even the economy as a whole." The ability to work with large amounts of data could help to obtain early indications of incidents that are difficult to predict and have a major impact, so that these indications can be dealt with in greater depth. Ultimately, it is the art of risk assessment that counts, and this valuable quality can be supplemented, but never replaced, by big data. According to Nicole Horbelt, Head of Media Relations at AXA Winterthur, there is also "great potential in the use of big data", particularly in order to address and serve customers in a more needs-based and targeted manner. For example, to address them with the right solution at the right time. However, she also notes: "We are at the beginning of this journey and are currently identifying the best areas of application. " And at Baloise Switzerland, Urs Bienz, Head of Operations & IT and member of the Executive Board, reports that big data is already being used in various areas, particularly in research and development, pricing and insurance fraud. Big data is used by selected specialists in the specialist areas and IT, and the results are made available throughout the company. Meanwhile, Martin Läderach, Head of Communications Switzerland at Swiss Life, does not talk about big data, but explains that the company does not rely on huge collections of data, but on "smart information". However, the goal is comparable to big data: The focus is on clever analyses of internal and external data, which should provide new insights regarding customers that are "of critical relevance for our specifically tailored products and offers".

Big data is also a topic of the future in the financial sector. However, while Raiffeisen and Vontobel declined to participate in the Werbewoche survey and UBS remained silent, CS reported: "We are closely monitoring current developments on the topic, but from the bank's point of view we cannot contribute anything concrete/already implemented on the topic." Diego Wider from the press office of Zürcher Kantonalbank was more specific: "Data is an important asset for us, so big data will also become more important." Above all, new insights are expected from big data technologies. For example, efficient analysis of big data can lead to competitive advantages or increases in earnings. A future focus of Zürcher Kantonalbank's IT programs will therefore also be in the area of business intelligence for the systematic analysis (collection, evaluation and presentation) of data in electronic form.

Gas turbines around the world send data home

The answers from Siemens Switzerland show that big data is particularly important in industry. Benno Estermann, Head of Public Relations, emphasizes that the Siemens Group's overall strategy is very much focused on the three growth areas of electrification, automation and digitalization. The growth area of digitalization also includes activities in the area of big data in particular, "where we are very present". The strategy for big data and the corresponding basic research are being developed in the central research department in Munich. Siemens has already been working on developing corresponding products and solutions for several years. The starting position for this is "very good", as the company has access to many important data sources, such as turbines, automation systems, computer tomography or building and traffic control systems. Estermann cites these examples of the use of big data: data provided by sensors on the condition of machines and industrial plants can be combined with error messages and statistics from quality assurance. This enables intelligent monitoring systems to detect faults at an early stage, defective components can be replaced and problems rectified before machines break down. For example in power plants: Motion sensors record measured values on turbines that indicate component wear and transmit them to a computer system. This analyzes the data and sounds an alarm if critical threshold values, such as the maximum permissible temperature in the combustion chamber, are exceeded. Today, 8,000 gas turbines around the world already provide online data about their condition to a Siemens data center, where unusual patterns are detected and imminent failures are indicated. In medicine, big data algorithms can discover the correlations between data from diagnostic imaging devices such as magnetic resonance imaging (MRI) and doctors' findings and then derive treatment recommendations from this. Another concrete example is the "Remote Services Platform" from Siemens: 300,000 systems are already connected to this platform, including machines, trains and computer tomographs. The aim is to monitor these systems and enable greater availability. UPC Cablecom can also benefit from the technology and expertise of the Group abroad when it comes to big data. However, press spokesman Andreas Werz reports that no big data software or technology is being used as yet, although this is planned for a later date. This will primarily involve the evaluation of usage data in order to identify which systems or products are being used and in what form. For example, telephony over the time of day or television behavior. This will be used to identify technical problems and improve the stability of the service.

Too many experts soon?

To be able to practice big data successfully, you need suitable specialist staff. If you are part of an international corporation, you can benefit from the groundwork done at the parent company, as is the case at Siemens, for example. The challenge remains to familiarize specialist staff in Switzerland with big data tools and to develop appropriate training and further education courses. The general complaint is that there is a shortage of IT specialists. At Coop, media spokeswoman Ruch notes that the job profile for these people has changed in that people need to have the usual knowledge of marketing, but should also have expertise in statistics and an affinity for IT. According to the Migros media spokesperson, the company has "very competent specialists in-house" in the field of data analysis. However, it could well be "that recruitment will become more difficult in the future". Urs Bienz, who is responsible for Operations & IT at Baloise Switzerland, reports: "The search for suitable employees for the specialist areas and IT is proving very difficult. Unfortunately, too few specialists are being trained. This, coupled with rising demand, is leading to a difficult situation on the labor market." Swisscom spokesperson Huber, however, has a different assessment of the labor market situation: "The demand for data scientists will increase, but the supply is likely to exceed the demand."

Christoph J. Walther
 

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