The Future Enterprise Copilot Strategy Will be Hybrid | Market Insights™
February 21, 2024
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Europe has performed better than the North American market for the top four Indian IT companies including Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro. Execution of some large deals and subsiding of the ill-effects caused by the Russia-Ukraine war crisis were some other reasons that drove UK and continental Europe to pip the North American market in terms of growth, experts have said.
However, most analysts believe demand will bounce back by the second half of this calendar year. Peter Bendor-Samuel, CEO of market intelligence and research firm Everest Group, believes that whether interest rates in the US are cut or not, the IT services business will see a possible rebound soon.
While the future of digital assets was once uncertain, the recent surge in investments, partnerships, and pilot use cases spearheaded by banks and technology giants has laid the doubts to rest. This holds particularly true for cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDCs). Our latest research provides valuable insights into the latest trends and the key players shaping the digital asset industry landscape. Read on to learn more.
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Over the past decade, the digital asset industry has undergone a dramatic transformation, evolving beyond its initial cryptocurrency buzz to becoming a diverse ecosystem teeming with innovation and new players. This evolution can be understood by looking at the following two distinct generations:
Cryptocurrencies and blockchain technology were born in this era, establishing the core infrastructure and sparking public awareness of this nascent space.
The current phase is characterized by the growing legitimacy of digital assets fostered by regulatory frameworks and compliance measures aimed at protecting investors. This has attracted financial institutions and corporations and propelled the rise of tokenization as a powerful tool for asset representation.
CBDCs have emerged as a significant focus, driven by their potential to enhance financial inclusion, improve transaction traceability, and streamline cross-border payments. Central banks worldwide are actively exploring CBDCs through pilots, partnerships, and infrastructure development. Similarly, tech giants are focusing on stablecoins, with prominent projects like Diem (formerly Libra) backed by Meta and Coinbase.
Exhibit 1 provides a visual overview of this dynamic ecosystem.
Both CBDCs and stablecoins are vying for prominence in the digital asset industry, but their paths diverge on key points. Central banks wield the reins with CBDCs, ensuring strict regulations and government backing. This, however, makes banks wary of stablecoins outshining their controlled offspring. Conversely, stablecoin adoption could weaken central banks’ monetary policy influence by redirecting deposits from banks to digital wallets, hindering loan disbursement.
Despite this tug-of-war, CBDCs are gaining momentum. Many countries are setting regulatory frameworks, with active projects like Project Dunbar and Project mBridge testing retail and wholesale applications. While retail CBDCs face hurdles in building confidence, wholesale versions are generating more traction due to their potential to streamline interbank settlements through fewer intermediaries.
Collaboration is key in this evolving arena. Central banks are actively partnering with regional banks for pilot programs. ANZ and Commonwealth Bank have joined Australia Central Bank to explore offline “digital cash” models. Technology providers like Soramitsu are also lending their expertise, facilitating initiatives like a Pan-Asian payment system built on Cambodia’s CBDC.
Crypto ETFs are making digital assets as accessible as buying stocks. This digital asset trend isn’t lost on global giants like HSBC, who are actively expanding into “crypto-friendly” regions. Take Hong Kong, where they’ve launched Bitcoin and Ether ETFs, allowing everyday customers to buy and sell these digital goldmines through familiar channels. Similar initiatives are brewing in South Korea, with KB Kookmin Bank joining the fray and hinting at potential crypto ETFs alongside their CBDC efforts.
The validation doesn’t stop there. BlackRock, the world’s investment behemoth, recently tweaked its proposed spot Bitcoin ETF, potentially cracking open the door for broader Wall Street participation. This move sent ripples of optimism through the cryptoverse, especially after a rough patch triggered by industry meltdowns.
However, the road to crypto nirvana isn’t paved with pure optimism. The Securities and Exchange Commission (SEC) has historically been skeptical, rejecting numerous spot Bitcoin ETF applications, including one from Fidelity. Their concerns? Potential market manipulation and the threat that cheaper ETF access could undermine major exchanges.
The digital asset industry landscape is buzzing with innovations aimed at propelling crypto beyond speculation and into everyday use. Revolutionizing payment capabilities and transaction mechanisms is a key focus area. From fintechs to card giants, everyone’s in the game, forging partnerships and rolling out solutions to boost crypto acceptance, scale cross-border transactions, and enhance liquidity management. Let’s look at some examples:
FinTechs – Alchemy Pay, a crypto payments provider, is bridging the gap between crypto and fiat by partnering with domestic payment systems in Australia and New Zealand (ANZ), making crypto purchases a breeze. Imagine buying groceries with Bitcoin – Alchemy Pay makes it possible. And their reach extends far beyond this, with millions of transactions processed for users in over 170 countries. They’ve even teamed up with Legend Trading to further extend their global reach and enhance user experience with seamless crypto purchases and fiat support in major currencies.
Big banks – Financial giants like JP Morgan are embracing the blockchain revolution. The JPM Coin, initially used in US dollars, is now available in euros, streamlining fund transfers between their branches and corporate clients, enabling 24/7 payments and smoother liquidity management. MUFG’s Progmat Coin joins the scene as a blockchain-based stablecoin platform, aiming to become a universal digital payment method that is compatible with other digital assets.
Payments platforms – Wirex, a crypto payments platform, has made a strategic move by partnering with Visa. This alliance grants them Visa membership in the Asia Pacific region and the UK, paving the way for them to directly issue crypto-enabled debit and prepaid cards in over 40 countries. Imagine swiping your Bitcoin-loaded card at your local cafe – that’s the future Wirex is building.
Cards – Mastercard enters the mix with its APAC-first digital wallet integration with Stables. This partnership allows users to convert stablecoins to fiat, enabling global spending at Mastercard-accepting merchants. Additionally, Mastercard is actively fostering innovation through its fintech accelerator program, supporting startups in the crypto and blockchain space.
Beyond the usual players – Deep tech ventures are also pushing boundaries. Crunchfish, a company developing a Digital Cash platform for banks and CBDC implementations, has partnered with LISNR, a proximity verification specialist. Together, they’re offering a groundbreaking proximity-based payment solution for merchants and banks. Envision paying for your coffee just by being near the counter – that’s the futuristic vision Crunchfish and LISNR are bringing to life.
Tokenization, the process of converting traditional assets into digital tokens, is rapidly changing the financial landscape, with digital bonds and green bonds taking the lead. This has spurred enterprises to explore and invest in these innovative assets, attracted by their potential to streamline processes, enhance transparency, and unlock new opportunities.
Financial giants like Goldman Sachs and UBS are already revving their engines. Goldman Sachs’ Digital Asset Platform (GS DAP™) powered the European Investment Bank (EIB) in issuing the world’s first fully digital bond on a private blockchain. Similarly, UBS launched a three-year senior bond on Distributed Ledger Technology (DLT) through SIX Digital Exchange, showcasing the potential for efficient and secure bond issuance.
Green bonds, with their focus on financing environmentally beneficial projects, also are finding their tokenized groove. Project Genesis, a collaboration between the Bank for International Settlements (BIS) and the Hong Kong Monetary Authority (HKMA), developed a prototype platform to tokenize retail green bonds and track their environmental impact. This initiative, along with others from ABN Amro, the Japanese Exchange Group (JPX), and the BIS Innovation Hub, demonstrates the growing interest in tokenizing sustainable investments.
The digital asset landscape thrives on partnerships and innovation, and nowhere is this more evident than in custody solutions. While other areas remain entrenched, custody is forging a path forward, laying the groundwork for a robust future built on trust and security. These developments, fueled by partnerships and even the entry of insurers, are poised to propel digital asset adoption.
Let’s look at some key partnerships shaping the landscape:
BNP Paribas – The banking giant plans to offer custody services for Bitcoin and other digital assets, teaming up with fintech heavyweights Metaco and Fireblocks to build a secure and reliable offering.
Zodia – Recognized for its institutional focus, Zodia Custody has set foot in Singapore, aiming to meet the rising demand for bank-grade custody services across Asia-Pacific. Backed by industry stalwarts like Standard Chartered, SBI Holdings, and Northern Trust, Zodia leverages cutting-edge technology and stringent compliance to fuel digital asset adoption in the region.
Canopius – This leading (re)insurer has made its mark by underwriting a groundbreaking digital asset custody product in Singapore. This first-of-its-kind offering establishes Canopius as the pioneer on Lloyd’s Asia platform to provide local coverage for digital asset custody.
These partnerships and developments signify a critical shift. Custody solutions are no longer an afterthought but a cornerstone for building a secure and trusted digital asset ecosystem. With renowned institutions and insurers stepping in, the foundation for mass adoption is getting stronger, brick by brick.
Fueled by technology providers, the current digital asset generation is expected to dominate the market for the next two to three years. However, the true revolution lies on the horizon with the imminent arrival of Generation 3.0. This era will witness a surge in meaningful collaborations across communities, bringing forth a wave of tangible use cases for the public. Tokenization will shift from being a niche concept to a readily accessible tool for everyone.
In this dynamic landscape, competition will be fierce. To thrive, service providers must embrace partnerships and actively build their capabilities. The stark reality they face is either to join the ecosystem or get left behind.
If you would like to share your observations or have questions about the evolving digital asset industry and digital asset trends, please reach out to [email protected] or [email protected].
Discover what changes are likely to occur in sourcing spend, sourcing strategy, and locations, and which digital services and next-generation capabilities are expected to be in demand in our webinar, Key Issues 2024: Creating Accelerated Value in a Dynamic World.
Undoubtedly, 2023 was a challenging year for businesses worldwide, and as 2024 approaches, economic uncertainty remains. According to the Federal Reserve’s predictions, the global economy is expected to grow at a modest 0.5% annually. Many firms’ natural response to such unsettling times may be to reduce or even stop their digital transformation activities. But this is the ideal moment to intensify your efforts in digital transformation.
According to the Everest Group Global CFO Survey 2022, most Chief Financial Officers (CFOs) rank digital transformation higher on their priority lists, especially when it comes to “judgment-intensive” expenditures.
Content is key to creating connected and engaging experiences. By effectively managing the content supply chain, enterprises can achieve greater productivity and scalability and produce high-impact content. Discover how the content ecosystem has evolved, explore the potential of generative Artificial Intelligence in reshaping the content supply chain, and gain insights into what’s next in this blog.
In today’s hyper-connected world, where customers interact with brands across multiple touchpoints, the demand for seamless experiences and one-to-one personalization has reached unprecedented levels. This has exponentially increased the desire for all forms of quality content that aligns with customer expectations.
The increasing appetite for content, coupled with rising customer expectations, poses a challenge for marketers to create, share, and track quality content at scale. Marketers need strategies and implementation mechanisms that can streamline the workflow, deliver content at scale, and track results to gain a competitive differentiation.
The content ecosystem evolution has been nothing short of transformative. The 1990s saw the emergence of the internet, leading to the inception of digital content (mostly text-based with limited interactivity) and its eventual breakout from traditional media.
The dawn of Web 2.0 brought dynamic and user-generated content. This coincided with the rising popularity of blogging platforms in the 2000s, the proliferation of smartphones, and the dominance of social media platforms in the 2010s. These factors significantly boosted the content ecosystem.
The advent of the COVID-19 pandemic provided further fuel to accelerate into the next generation of content preference – short-form, engaging, and snackable content.
In this multi-form content phase, ranging from text and videos to virtual/augmented reality (AR/VR) content, the ever-changing ecosystem dynamics continue to redefine content consumption behavioral shifts.
As we step into the connected future, consistent omnichannel content might not only define which form survives but also lead to the emergence of newer and more engaging content formats.
One might question the need to adopt a content supply chain when the current content ecosystem seems to function smoothly. However, the demand is driven by the ever-evolving content lifecycle with fast-changing consumer preferences and demands. The need to create personalized omnichannel experiences that can grab customers’ eyeballs in today’s crowded internet adds to the challenge.
A content supply chain is essentially a process to streamline content ideation, creation, management, and distribution in a structured and efficient manner. It ensures a seamless workflow, from ideation to delivery, optimizing collaboration, maintaining quality, and meeting diverse content delivery platform demands.
Effectively managing the content supply chain enhances productivity, enables scalability, and ultimately allows organizations to consistently produce and deliver impactful content in today’s dynamic digital landscape.
Exhibit 1: Defining a content supply chain lifecycle
While the term “content supply chain” might be new and gaining traction, consolidating multiple components of the content ecosystem lifecycle has become increasingly important over the past few years.
Enterprises and marketers also face technology and internal enterprise challenges beyond content. These include the lack of quality content, plagiarism, siloed communication, high manual involvement, omnichannel inconsistencies, and a fast-evolving landscape. To adopt a content supply chain at scale, the inefficiencies surrounding the fragmented content landscape need quick resolution.
The absence of a content supply chain greatly impacts content developers, marketers, enterprises, consumers, and other stakeholders involved in the content lifecycle. Without key performance indicators (KPIs), developers lack sufficient information and feedback on content to gauge effectiveness. Similarly, marketers are unable to precisely target their desired audiences due to a lack of relevant content. Enterprises also cannot tap into potential leads and manage content quickly at scale. Ultimately, without a content supply chain, end consumers would be barraged with an excess of irrelevant and annoying information, leading to a reduced experience.
Exhibit 2: Benefits of adopting a content supply chain
Generative AI (gen AI) has brought about a technology revolution. Touted as the next chapter in human-machine interaction, its impact on the content supply chain is extraordinary.
Gen AI can potentially revolutionize the content supply chain by assisting humans across the proposal, development, activation, and insights stages. It also can automate many manual tasks involved in creating and distributing content.
This technology could significantly reduce costs, improve efficiency, and produce better content quality and consistency. As a result, many enterprises have already invested in gen AI tools and solutions to supplement their workforce across the lifecycle stages.
Exhibit 3: Optimizing the content at scale for increased efficiency of marketing teams
Almost 50% of marketers either use or experiment with gen AI during their work according to our report, Content Supply Chain – Revolutionizing the Content Development Lifecycle. With the increasing adoption of gen AI in the content ecosystem, analyzing its degree of adoption and complexity provides deep insights into its usefulness as illustrated below.
Exhibit 4: Comparison of the complexity with the adoption of creative use cases
The content supply chain product market is heating up, with newer entrants joining well-established tech vendors, offering organizations many new options. However, it becomes imperative to ensure any new products enterprises adopt can be seamlessly integrated into their existing infrastructure and content pipeline.
With very few major tech vendors providing professional services for content supply chain product offerings, Global System Integrators (GSIs) have become essential. While GSIs offer consulting, implementation, or managed services for individual content supply chain components, the fragmented nature often can lead to integration issues. Thus, GSIs must develop end-to-end capabilities across the content supply chain ecosystem to meet growing enterprise needs and preferences.
GSIs must adhere to a strict framework that will enable them to offer strategy planning, design and implementation, run and operate, and manage services across the four content supply chain layers. This will enable GSIs to partner with enterprises to transform their content workflow process. A detailed framework can be found in the report, Content Supply Chain – Revolutionizing the Content Development Lifecycle.
Connected experiences will power the future. Overall, the personalization and interactive experience landscape has become increasingly complex and diverse. This requires brands to constantly adapt and stay up to date on the latest trends and technologies to reach and engage customers. Content is key to achieving connected experiences.
Having a predefined clear vision and strategy before adopting a content supply chain is essential to avoid wasting organizational resources. A thoroughly defined content strategy, optimized activation and delivery pipelines, and investment in proper content creation solutions and business KPIs are crucial for success.
Overall, a well-designed content supply chain can help enterprises stay ahead of the curve and break down internal siloes between different teams. This promotes consistency and responsiveness to changing market conditions. By implementing a content supply chain, enterprises can reduce duplication of efforts and meet KPIs in a standardized manner.
For questions about selecting the right content supply chain platform or to learn more about personalization, interactive experiences, or developments in this space, contact the Everest Group team at [email protected], or [email protected].
Register for our webinar, The Generative AI Odyssey: A Year in Review and What’s Ahead in 2024, to learn more about future themes across gen AI.
Healthcare enterprises have made digital adoption the bedrock of their growth strategies to optimize processes, realize cost efficiencies, and enhance member experiences. They are leveraging digital services for value-based care and population health management and to comply with changing regulations. To support enterprises on their digital transformation journeys, providers are ramping up their capabilities through vertical-specific partnerships and acquisitions, investments in Centers of Excellence (CoEs), and training, among other things. These efforts are, in turn, driving the need for research and market intelligence on demand and supply trends in healthcare payer digital services.
This report comprises three sections:
Scope
The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.
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