Tag: Digital Transformation

Existing ERP And IT Systems Constrain Collaboration And Productivity | Blog

The world’s businesses are moving into a deeper level of competitiveness and productivity. In the past, when we introduced sailing into the oceans, it improved trade, which resulted in a huge explosion in wealth. When we introduced the telegraph and phones into the world, it dramatically changed communication. When we introduced common accounting practices where we could professionalize the accounting function and rely upon a consistent way of record keeping, we thereby improved productivity. The next wave is where companies will share information across countries and organizational boundaries. However, this transition necessitates moving away from current IT architecture.

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Dilemma of Customers’ Increased Productivity or Service Providers’ Profitability | Blog

I previously blogged about the need for a new third-party services operating model that would be more productive and agile and focus far more on results. Though the industry was on the verge of moving to a new model, adoption was slow at first. Now, attraction for the move to a new model is picking up in the marketplace, but enterprise customers and service providers define expectations differently.

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EmpowerCX 2020 | October 14-15 | Virtual Event

Everest Group CEO Peter Bendor-Samuel will deliver the keynote address at EmpowerCX 2020 virtual event hosted by Sitel Group. Peter’s keynote address is titled I Can’t Get No Innovation! in which he will discuss the past, present and future of innovation and its impact, why you should invest in it and what you can expect from your service provider as you move through digital transformation.

When

Thursday, October 15, 11:00 AM – 11:55 AM EDT

Where

Live, virtual event

Presenters

Peter Bendor-Samuel
CEO, Everest Group

 

Digital Transformation Benefits Beyond Cost Reduction | Blog

This is an intriguing time for digital transformation. For the past few years, many companies held back in the extent of digital transformation they were willing to undertake because the change management effort was huge. But the COVID-19 crisis and subsequent recession changed that picture and companies now look to accelerate digital transformation. Why? Because digitized processes deliver robust value-creation opportunities that go way beyond cost savings.

Read more in my blog on Forbes

How Changing Demographics and the Pandemic are Influencing Wealth Management | Blog

Millennials and Gen Xers currently account for a majority of the earning population worldwide. As a result, the largest demographic cohort looking to manage wealth or create retirement income is shifting from baby boomers to these population segments (see the exhibit below), which are generally more involved, aware, and digitally oriented than preceding generations. The new investor generations demand information at their fingertips, anytime, anywhere – something impossible to achieve with traditional wealth management methods.

Exhibit: estimated shift in wealth from baby boomers to Gen X and millennials from 2016 to 2046

estimated shift in wealth from baby boomers to Gen X and millennials from 2016 to 2046

The impact of COVID-19 on wealth management

The COVID-19 outbreak has brought some key challenges in wealth management to the forefront. First, it has highlighted gaps in traditional wealth management methods, accentuating the pressing need for digital transformation. COVID-19-induced restrictions have severely impacted agent availability and as well as customers’ ability to visit advisers. Firms that can leverage digital tools to balance business continuity challenges with customer expectations will be able to differentiate themselves from others in the current climate.

Second, revenue erosion resulting from the COVID-caused recession, combined with an increase in business costs, may drive consolidation in the industry, as smaller firms will find it difficult to stay afloat. We are already seeing a shift in asset classes’ preferences. High Net Worth Individuals (HNWIs) and Ultra HNWIs (UHNWIs) will be impacted, as the wealth managers’ diverse portfolios are impacted. More than half of respondents to a UBS Group AG survey of wealthy investors said they feared not having enough liquidity in the event of another pandemic, and a similar percentage expressed worry about leaving sufficient money to their heirs.

What wealth managers need to do

Wealth managers need to increase their focus on services such as workforce management, operations continuity, customer communications, digital, goal-based planning, and portfolio impact advisory to persist through the current challenging situation. At the same time, they shouldn’t lose sight of the perpetual risks to business, such as cyberattacks, money laundering, and other security threats. Wealth management firms will need to ensure – even in the absence of physical interaction and with limited agents – that leadership maintains the confidence of both customers and employees.

Digital will remain the overarching theme to address these challenges. In recent times, Business-Process-as-a-Service (BPaaS) for back-office operations and robo-advisory have gained traction, though the solutions’ scale and magnitude continue to remain low. While BPaaS helps firms bolster their critical operations,  technology leverage can be increased further via more digital products, automated cybersecurity systems, smart portfolio creation, trade analytics, and trade simulations for efficiency improvements, productivity gains, bandwidth creation, and customer satisfaction in the next normal.

As wealth management firms look to achieve these objectives, they will require support to quickly and efficiently adopt digital, set up the required infrastructure, move workforce interactions to virtual mediums, revamp operations and traditional workflows to minimize human intervention, and hedge location-based risks. They will have to carefully prioritize tasks and implement digital step-by-step, so as not to abruptly overhaul traditional methods and processes. For this, they could opt for off-the-shelf products or customized solutions, or choose an external provider to do it all.

To tide themselves over the crisis and prepare for what’s to come, we recommend that wealth management firms:

  • Instill confidence in their clients and employees and shield themselves against other risks to survive this unprecedented situation. It will also be vital to take additional precautionary measures to maintain investor confidence. Given investor loyalty to certain firms, it would be useful to focus on maintaining the customer base rather than acquiring new customers
  • Align themselves with and adopt emerging digital industry trends, including robo-advisory, automated workflows to close sales, remote due diligence, and subscription-based advice models
  • Ease the pressure on their bottom lines by focusing on reducing cost-to-serve; automating their middle and back offices could serve as a starting point
  • Continually assess their investment philosophies; while COVID-19 is a crisis like no other, firms must draw lessons from previous crises to diversify their assets and maximize their investments in passive funds that make reasonable margins

At present, digital transformation is no longer a strategy to cater to a specific customer segment but the very means to survive. It will help meet customer experience standards and preferences in relationship management, query resolution, and communication. For employees, digital tools will enable more robust decision-making and goal-based planning for portfolios, as well as help monitor them real-time to enable faster turnarounds and higher returns.

Data Management: An Unwitting Game of Russian Roulette | Blog

I noted in several recent blogs that the COVID-19 crisis increased the need for digital transformation because the crisis brings new value-creation opportunities to businesses, and I explained how to capture those business advantages even in a recession. It necessitates implementing the right infrastructure – not just cloud and automation, but also a robust data management capability. Unfortunately, many companies accelerate digital transformation without a robust data management structure. Warning: Lacking this ability for data mastery, they essentially play Russian roulette with their business going forward.

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How To Structure A Company To Use A Gig Platform | Blog

In my previous blog, I talked about companies needing to structure their IT organizations so they are leaner, more agile and able to constantly use the world’s best coders with the rarest and newest skills that are dramatically scarce. To achieve these goals, I explained that they need to consider using a gig platform as an integral part of IT.

In the blog, I explained the benefits, especially accelerating the rebuilding of a business in the post-COVID-19 world. However, companies must understand the challenge in embracing a gig platform at scale: they must first restructure their organization. Here is a look at some important considerations and what is involved.

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Using A Gig Platform To Access Key Skills In The COVID-19 Crisis | Blog

The COVID-19 crisis has resulted in a devastated economy. Executives are looking at their businesses from a recession and retrench mindset, knowing they need to preserve cash. That involves eliminating inefficiencies, and enterprise IT organizations have significant inefficiencies and redundancies. So, companies have laid off many programmers and IT professionals. While these lay-offs created a surplus of IT talent, there is a talent shortage of necessary skills. Despite the lack of skills, companies recognize that coming out of the crisis will necessitate becoming more agile and innovating faster. In this blog, I discuss a potential answer to this problem.

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COVID-19 Crisis Pressures Service Providers To Cut Prices | Blog

As individuals or as businesses, any life-changing event results in rethinking our position. In the case of the COVID-19 crisis, it will change the way companies conduct business for a long time, as the crisis revealed weak spots in business practices and investments. Moreover, as companies begin to exit the crisis, they move forward with a recession mindset. However, the global crisis also reveals business opportunities going forward. Let’s look specifically at two factors: working from home and discounts from third-party service providers.

Read more in my blog on Forbes

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