1-Transformation today takes place at a fast speed, requiring a level of integration and alignment that many organizations are not prepared to handle. How do you define an effective business transformation? How can an organization avoid the risks of failure associated with its transformation strategies?
The rate of success with Digital Transformation across the globe is very low. Some Analysts indicate less than 20% of initiatives meet expected outcomes. The high rate of failure with transformation is an indication indeed that the approach taken in transformation must be changed; starting with the clarity on successful outcomes.
> EFFECTIVE BUSINESS TRANSFORMATION
Considering the growing Digital Economy, an effective business transformation must result in greater Digital Maturity for the Organisation. Digital Maturity should be assessed from a number of practical perspectives, such as:
– % of Transactions that are purely Digital
– % of Digital Revenue
– Increased Customer Experience
– Improved Data-driven Decisions
– Number of pure Digital Revenu Streams
– Organisation Service Accuracy
> AVOIDING RISK OF FAILURE
Most of the failures in Digital transformation can be traced to the common tactical approach taken, mistakenly assuming Digital is just the acquisition of tending technologies. The successful organizations use the following practices:
– Architectural Planning is the foundation practice to map out your destination and understand the current state.
– Portfolio Management is then used to focus the program on practical business gains and improvements
– Lifecycle Control is required to ensure every project in the portfolio is effectively controlled towards the desired state.
2-Any organization that allows data democratization among different business units needs to have strong governance in place to ensure the data is carefully managed by all technical and non-technical users. Could you please elaborate more what that means, the pros/cons of data democratization and the tech innovation that has transpired to support this effort?
It is paramount to understand that Data is in fact the most important asset for every organization as the Digital Economy continues to grow and gradually supersede the 3rd Economy (The Industrial Manufacturing Economy). With this in mind, the treatment of data must completely change at all levels, from Governance to Operation.
> DATA GOVERNANCE
I see Data Democratization simply as a strategy to make Data seamlessly available to stakeholders across the organization. Yet, the more encompassing idea is that of Data Governance which is the broader set of initiatives to ensure Data is effectively repositioned and managed as the critical asset it is for the organization. When establishing the Data Governance program the organization is immediately bringing to life the required capabilities and competencies to succeed. Many such practices are essential to success with a Data Democratisation Endeavor. Some of such practices:
– Data Awareness and Education across the Organisation
– Practical Data Ownership | Stewardship
– Pro-active Data Quality
– Data Lifecycle Management
– Effective Data Security
– Continuous Data Compliance
> ENABLING TECHNOLOGY
Data Governance has gone from a process-oriented idea to being almost fully automated today. Many suppliers (i.e. Talend | Erwin, amongst others) have matured solid and innovative tools and solutions to help realize Data Governance in a practical sense. A plethora of advanced solutions including machine learning is emerging to make this an even easier and intelligent practice.
3-With banks now starting to jump on the metaverse trend, a significant percentage of bankers globally believe that customers will use augmented reality (AR)/virtual reality (VR) as an alternative channel for transactions by 2030. How can banks start enhancing their capabilities and competencies from now to be ready for the future and to which extent the metaverse will change the ways banks enable, engage, and invent?
Customer Experience is the new competitive frontier for the Banking sector. Banks will win or loose their share of the market on the Customer Experience. This battle is now well under-way and will pick up even more pace every year. From BigTech to FinTech to NeoBanks the banking landscape is fast changing almost by the day. As such, Bank must restructure its business model with Customer Experience as the secret sauce for winning products and services.
> DIGITAL TRANSACTIONS
Over 20% of economic transactions are already taking place over Digital Platforms, and this is only the beginning of the fast-growing economic model. Beyond convenience and timeliness, Digital Transactions transcend the limits of geographic and psychological limits of traditional brick-and-motar models. Digital Transaction scenarios range from digitalizing traditional services to establishing new Hybrid, Augmented, and totally virtual scenarios. Many aspects of everyday social and work transactions are improved with metaverse possibilities. If we are gradually able to lead a Hybrid life connecting Physical realities to Virtual possibilities, Banking services will follow suit.
> BANK 4.0 AND METAVERSE
Much is been said about Bank 4.0; banking in the age of Artificial Intelligence. Yet the crux of the transition is essentially realizing Customer Experience is gradually becoming the primary recipe for success and growth for Bank. Bank 4.0 is also about banking taking place everywhere, yet never at the Bank itself. This is everywhere inclusive of developing digital and hybrid societal communities. Quite simply Bank should restructure its Business and Operating model with Customer Experience at the center. Experimentation and early transitioning into the Metaverse space will just happen naturally, with a primary focus on Customer Experience. From Hybrid augmented reality scenarios enabling real-time contextualized banking services (i.e. Instant Loan Augmentation…), to bank facilities in support of Virtual Community living. The bottom line is clearly shown that success comes from Customer Experience.