IBS Journal March 2018
37
DRIVING VALUE
would be about driving that spirit both in thinking and doing. For example, the roles and responsibilities of a manager can be different between an agile and a waterfall development model, and attempting to have both co-exist may paralyse the functioning of the team. Driving innovation-inclusivity with the team, and having an agile framework that can plug-and-play with multiple outsourced entities is emerging as a dynamic ecosystem that allows for digital innovation promoting both collaboration and co-creation.
An interesting example is Capital One’s initiative to institutionalise design thinking and lean startup learning across the organisation, and accelerate the enterprise-wide digital agenda with a stimulating environment for ideation and customer experience enhancement. Banca Intessa, an Italian bank based in Turin has invested in a digital learning process that is based on a Netflix app, driving an active engagement by 100,000 employees. The bank won the Workforce Empowerment and Behaviour award for a digital learning portal.
Time-to-market is key, and any framework that dilutes this proposition is unlikely to sustain. Having long cycles of planning, developing, testing and rollouts are passé. The new-age thinking is about prototype-driven minimum viable products (MVP) and scaling those that pass the smell test. To get this going, we are looking to have banking business experts, UX designers, IT development team and quality assurance professionals to work in tandem, and having a cross-functional innovation team of a different order than what we had 10 years ago. The spirit of agile models is in making things faster, dynamic and effective. This also means easier adaptability, real-time interface and promoting online-virtual communities that are complementary and yet not bound by geographic restrictions. More importantly, both enterprise and individual performance measurement framework would need to be realigned with changing priorities as well.
4. Do we know if we are truly generating real value?
A boardroom conversation of a bank is incomplete if it has not expressed its concern with growing micro-loan fintech players or peer-to-peer crowdfunding models, and the advent of robotics and artificial intelligence defining new ways of financial advice. Yet, it is also true that not every board member relates to the value that is in
the first to offer is as good as no offer
“
store from a next-generation digital world. A typical passive approach to board approvals on digital transformation are two forth: a) Being relevant: If you’re not on the digital map, you don’t exist; and b) Staying ahead: Not being the first to offer is as good as no offer.
Defining a value proposition is a function of distinguishing between customer segments that are primary today as against the segment that would be centre-stage tomorrow. The hallmark of a digital model is also about differentiating the value drivers for each customer segment based on what is critical for each of them.
This also has another connotation: being digital also comes with the responsibility of safeguarding against the new-age risk factor – cyber security in particular which can create havoc if not pre-empted. Customer data, drivers of relationship and information assets are sources of value, and losing them to intruders can bring any bank to its knees, if not protected vociferously. With regulatory norms also increasing by the day, the cost of compliance can also go up steep in the digital era.
However, the real case for a digital transformation can be, and needs to be, much more than this. This is essentially driven by where we visualise the organisation to be over the next three-to-five years and what that would mean to the shareholders from a value perspective. And what does it take to reach there, including key changes that need to be driven?
Fortunately, most of the changes are driven by what is adaptable from an immediate standpoint. The digital paradigm, as they say, is all about driving long-term vision but with a short-term execution. Launching digitally innovative products, driving digital adoption by the customer, improving digital process framework and building a digital-ready organisation are all means to a larger end: is there value created – either with increased business, or with reduced costs? Ultimately, the proof of the pudding is always in its eating – and for once, this had better be real and not virtual!
Stay ahead: not being
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
