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Highlights: Around FinTech in 20 years
Customer Relationship Marketing researcher
Financial systems market analyst
Business Group Director, Brodeur Worldwide
Senior Manager, European Comms
Research and teach innovation
2
Growing need for digital thinking
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Digital business strategy
•
4(Bharadwaj et al 2013)
Getting in the game
• Managers are increasingly nervous about the lack of progress in their digital initiatives.
• Too often, organizations merely add digital pixie dust to traditional processes.
• They need to address current opportunities while preparing for more fundamental medium- to long-term moves.
5
Mapping the Action Space
• Defining the strategy focuses on building competitive advantage in the double game. It provides insight into short-term “no regrets” moves as well as more-transformative plays. These decisions establish the path for the other five layers.
• Reshaping the customer experience explores how to eliminate pain points and how to surprise customers with new levels and forms of service today while achieving quantum improvements in customer experience tomorrow.
• Reimagining offerings and business models prepares companies to create novel products and services, often by exploiting new data and powerful analytics.
• Reengineering business processes entails adopting flexible and intuitive digital technologies to simplify processes and increase efficiency.
• Building capabilities, often by working with outside partners and creating new platforms, enables companies to develop new ways of working, new business models, and other building blocks of digital transformation.
• Accelerating the transformation involves devising new approaches to speed up learning, ramp-ups, and transformational plays.
Source: BCG 6
The ‘double game’
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WRITE A QUESTION ABOUT DIGITAL TRANSFORMATION
Activity
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What is the good news?
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Six ways to win with digital
Source: McKinsey 10
Digital transformation in UK insurance
11Source: PAC Consultants
Bimodal tensions in businesses
12Source: Forrester Research
Bimodal in the boardroom
• COO & IT focusses on back office
– Standardisation
– Crush complexity• Business to
employee
• B2B
• B2B2C: insurance
– IoT opens conversations
• CEO focusses on front office for new revenue streams
– B2C: e.g. retail banking; automotive
– C2C
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Bimodal: The transition
14Source: Gartner
Impact of changes: IoT
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ASK A QUESTION OF YOUR NEIGHBOUR
Activity
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What can insurers do?
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Dual challenges
• Digital capacity challenges
– Growing awareness of digital opportunities
– Innovation happens outside IT
– Vendors develop solutions
• Leadership challenges
– Differences between countries• Risk tolerance
• Market openness
• Managers have to develop strategy
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Steps to digital leadership
• Digital resister
– Not doing anything. Production oriented. Often not
• Digital explorers
– Islands of innovation disconnected from IT. Uses case-based
• Repeatable innovators
– Platforms (sometimes disconnected) to deliver services
– Often using labs that involve external partners
• Digital transformers
– Monetizing portfolios of new services
• Disruptors
– Moving platforms to new industries (Uber, BBVA, Capital One)
Source: IDC
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82% of European
enterprises. Initial focus on internal efficiencies
Redesign customer experience
• How to start from client experience?
– Which products come first?
– Mobile consumer hubs to engage ad-hoc with consumers’ frustrations
– Primary research
• Design thinking?
– Think about apps and artefacts• New solutions?
• New industries?
– Controlled openness• Hackathons
• Innovation labs
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How to progress
• Think out use cases
– Understand digital is a race
• Develop potential production environments
– Start: design, strategy and business case
– Later: security and high performance
– Finally: Go/No go/Loss leader
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The use-case journey
• Many races into market
– Speed matters
• Start from the customer
– 1 at a time
– Find the ingredients• Map the use case
• Find partners
• Agile approach
– Combine business and IT
– Fail fast• Especially when
resources are lacking
• Speeds up testing
– Rethink
– Fast rollout
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SILENT REFLECTION: FIND A PROBLEM FOR A USE CASE
Activity
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Where are we now?
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Global comparison: UK stalling?
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Source: Digital
Evolution Index, Tufts
University
Europe: More complex than in US
• 2/3rds of CTOs in Europe see digital transformation as their key goals
– Governance and data sharing rules create inhibition
– Harder to find European examples
• Furthermore, there’s push-back in many organisations
– Especially on the mainland
– What level of failure is allowed?
– How to work externally?
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Uneven, accelerating capacities
• Different regulatory and technical challenges
• Customers and colleagues in different countries work at different paces
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Europe: efficiency versus growth
33Source: Everest Group
Building digital capacity
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Building leadership capacity
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But…
DISCUSS THESE DIFFERENT PERCEPTIONS WITH YOUR NEIGHBOURS
Activity
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What is success?
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BBVA’s take on incumbents
Many obstacles
• Legacies– IT platforms, costly
networks, pain points
• Conservative risk approach– Risk aversion as a
standard within the industry
Context for success
• New competencies– Lack of capabilities
necessary to compete (Design, UX, Big Data)
• Cultural shift– Transformation requires
embracing cultural change
39Source: BBVA presentation at Money20/20 Europe
What does it look like?
“Being a Disruptor is a Privilege and a Responsibility”
Nigel Wilson
CEO, Legal & General
• 5 million customers in six months
– IndiaFirst micro-insurance JV
– $3pm for $3k cover
– 3 minutes to policy issuance
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What produces digital success or failure?
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Prototyping culture
• Agile
– Lean
– Design thinking
• Systems that support testing
– Plugging in to external systems
– Thinking about use cases
• But... start from customers not technologies
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MAKE A ROUGH, LEGIBLE PLAN FOR AN OPPORTUNITY(YOU WILL SWAP LATER)
Activity
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Developing the capacity to change
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Bite-sized opportunities for success
•
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What is the journey?
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From thought to action (1)
•
54(Saul Berman 2012)
Vendors provide more IP
55Source: PAC Consultants
Digital Compass
56(Westerman et al, 2012)
SWAP YOUR PLANS AND DISCUSS
Activity
57
Discussion
58
Summary
59
