DIGITAL TRANSFORMERS

Vs

DIGITAL CHALLENGERS

Mrutyunjay Mahapatra

DMD & CIO, SBI1

AGENDA

• Transformers- Key Ingredients

• Challengers- Shape, Size, Players, Impact

• Dimension of a Challenge in BFSI

• Convergence of Transformers and

Challengers

• Triggers leading to Convergence

• Incremental or Radical?

• Handling Innovation- Key Strategies at SBI

• Roadmap is Interesting

2

TRANSFORMERS- KEY INGREDIENTS

• Build upon existing knowledge &

resources

• Competence- enhancing

• Relatively small changes in

performance/ utility

• Low to medium uncertainty risk

• Short to med-term horizon

• Centralized/ Formalization structure

3

CHALLENGERS

NO: Snapchat, Lyft, Minecraft, Pokemon Go, Apple Watch,

Microsoft Surface, Amazon Echo

NO: iPhone, Android, Instagram, Uber, iPad, Wii, WhatsApp,

Fitbit, Pinterest, Waze, Kindle, Airbnb, Macbook Air

NO: Facebook, Twitter, Google Maps, Wifi, Blueray, Xbox,

Spotify, YouTube, Hulu, Kayak, Sonos, Skype, iPod

NO: Google, DVRs, USB, Bluetooth, Netflix, Tencent, Blackberry,

Alibaba, Salesforce.com, Mailchimp, Jive

5 Years Ago

10 Years Ago

15 Years Ago

20 Years Ago

4

AREAS RIPE FOR DISRUPTIONS

5

PAYMENTS

• Paypal, M Pesa

• Paytm, Chillr,

Mobikwik

ALTERNATIVE

CURRENCIES

• Bitcoin,

Enterium

CREDIT

• Lending Club,

Prosper

• Faircent,

Capital Float

WEALTH

MANAGEMENT

• Betterment,

Wealth front

• Funds India,

Scripbox

DIMENSIONS OF A CHALLENGE IN A BFSI

6

ECOSYSTEM

TRANSFORMERS CHALLENGERS

THE REAL BATTLE GROUND!

CONVERGENCE OF TRANSFORMERS & CHALLENEGERS

7

TRIGGERS LEADING TO CONVERGENCE

PEOPLE

DATA

TECHNOLOGY

8

TYPICAL BI-MODAL APPROACH CAN’T WORK

• Creates a two-class system that adds

complexity and kills culture

• Focuses on a technology-centered model

that does not connect to customers

• Perpetuates the myth that back-end

systems can be left as they are

9

INCREMENTAL OR RADICAL?

To deal simultaneously with conflicting goals like-

Organizational Alignment vs Adaptation

Evolutionary vs Revolutionary Change

Efficiency vs Flexibility 10

• Orchestrating the integration of exploitation/

incremental and exploration/ radical

• Goal / aim of the explorative work

• Budget and resource allocation for

explorative work

• Scope, Level of openness

• Push or pull

• Capabilities to be built up

AMBIDEXTERITY WELL DONE IS A KEY DRIVER FOR

INNOVATION PERFORMANCE

11

EX

PL

OR

AT

ION

/ R

AD

ICA

L

INN

OV

AT

ION

EXPLOITATION/

INCREMENTAL INNOVATION

Low High

Low

Hig

h

CONSERVATOR

REVOLUTIONARY

(Startup)

OPTIMIZER

(Big Companies)

INTEGRATOR

AMBIDEXTOR

ORGANIZATIONAL AMBIDEXTERITY

An approach to balance exploration and exploitation

12

HANDLING INNOVATION

OPENNESS

Open Innovation is the heart of the

digital revolution

COLLABORATION

Identifying new ways to generate value

GOVERNANCE

Putting Structure on unstructured

ENTREPRENEURSHIP

Catalyst for change

Key Strategies of SBI13

ADOPTING CUSTOMER OBSESSED OPERATING MODEL

• Customer-led rather than customer-

aware

• Continuous Pipe of New Experiences,

Products and Services

• Insights-driven rather than data-rich

• Fast rather than perfect

• Connected, not siloed

• Real time ROI Info, future proofing

• Time to market: getting –ve? 14

FUTURE OF BANKING DRIVEN BY COLLABORATION

15

ROADMAP IS

INTERESTINGCollaborative

Innovation Centre,

CRM, Data Lake, IOT

Complete

Digital

Bank!

Platformization, API, Seamless

working of Virtual & Real Channels,

Branch Server virtualization

Digitalization of

processes, CBS

Transformation,

Infra UpgradeCrowdsourcing &

Hackathons, Cloud

Adoption

Digital Market

Place

Computerization &

CBS

Implementation 16

Disclaimer: Images and content displayed in this presentation are taken from various

internal and external sources including the public domain. 17