Tag: Pinnacle Model

How Banking is Adopting and Using AI Technology | In the News

The pace at which companies are investing in artificial intelligence (AI) continues to gain momentum and the financial sector is not immune to this trend. According to research by global management consultancy Accenture, banks that invest in AI and human-machine collaboration tools could boost their revenue by over a third (34 per cent) by 2022.

Robotic process automation (RPA) that uses cognitive AI is being deployed by banks to improve operational efficiency and reduce costs, and many large finance firms are already seeing benefits.

Therefore it’s not surprising that, according to data by analyst firm Everest Group, banks and financial firms account for 40 per cent of the RPA independent software vendor market.

Read more in IDG Connect

Everest Group Identifies ‘Pinnacle GICs,’ Digital Capabilities That Exemplify Best-of-the-Best Global In-House Centers | Press Release

Digitally mature GICs vastly outperform others in delivering strategic impact, operational improvements and cost savings.

Everest Group has deemed 11 enterprise Global In-house Centers (GICs) as Pinnacle GICs™—GICs that are achieving superior business outcomes because of their advanced digital capabilities. More importantly, Everest Group has analyzed what these Pinnacle GICs are doing well and is sharing the secrets of their success.

Many GICs are playing a key role in driving their enterprises’ digital agendas, thanks to the rise of next-generation technologies such as mobility, analytics, cloud, automation, and other enabling technologies. While most GICs are in the early- to mid-stages of digital adoption, some GICs have performed better than others by building and orchestrating differentiated capabilities and deriving superior outcomes.

Everest Group’s Pinnacle Model™ approach explores what the very best GICs are doing in terms of real impact and then correlates the capabilities required to achieve those results. By examining what these Pinnacle GICs have in common, others can learn how to succeed, whether they desire to make incremental changes or achieve major transformations.

Everest Group studied the digital adoption journey of 54 GICs, examining five key capability areas—scale of operations and penetration across digital segments, breadth and depth of services, digital talent, operating model and level of influence, and innovation. When those key capabilities were correlated with business outcomes, 11 Pinnacle GICs rose to the top.

As a group, the 11 Pinnacle GICs significantly exceed other GICs in three key outcome areas:

  • Cost impact: Pinnacle GICs generated 53 percent ROI from digital initiatives, while 44 percent of other GICs are yet to achieve ROI at all.
  • Operational impact: Pinnacle GICs achieved 46 percent improvement in operational metrics, compared to 19 percent by other GICs.
  • Business impact: 68 percent of Pinnacle GICs generated significant strategic impact, compared to 37 percent of other GICs.

“We found that Pinnacle GICs as a group are 1.8 times more invested than other GICs in supporting multiple business units with digital capabilities and 3 times more likely to provide end-to-end support within digital segments,” said Michel Janssen, chief research guru at Everest Group. “These discrepancies illustrate in a striking way that the GICs that are investing in and applying digital capabilities with breadth and depth across their organizations are reaping drastically superior outcomes in the marketplace. The bottom line for enterprises is that embracing digital is an imperative, not just an opportunity, and the speed of digital adoption is critical to derive maximum impact.”

Everest Group’s recently released report, “Digital Maturity in GICs: Pinnacle Model™ Analysis 2018” describes the journeys of these best-of-the-best companies, provides insights into the key enablers needed to achieve desired outcomes, and points to the investments required for the greatest speed to impact.

***Download a complimentary abstract of the report here.*** (Registration required.)

“Our Pinnacle Model assessments show organizations exactly who is succeeding and how,” added H. Karthik, partner, Global Sourcing, at Everest Group. “One of the most valuable aspects of this research is that we are able to identify Pinnacle Accelerators™, which are specific methods organizations can use to accelerate their digital transformation journey. Armed with clear points of comparison and insightful recommendations, organizations are better equipped to prioritize where to invest their time and resources and plan their own path to the top.”

About the Pinnacle Model

Everest Group’s proprietary Pinnacle Model™ assessments, which include input from executives from leading Fortune 1000 companies, compare internal capabilities to desired business outcomes, such as disrupting the industry, improving customer experiences, increasing market share, and launching innovative products and services. By highlighting what the best—Pinnacle Enterprises™—are doing, these performance studies help organizations plot a journey from their current position to where they want to go, prioritize investments of time and resources for maximum impact, and accelerate change.

RPA Study Reveals Difficulties in Achieving ROI | Sherpas in Blue Shirts

Everest Group conducted a comprehensive study on enterprise Robotic Process Automation (RPA) adoption. The study provided us with important insights into what allows companies to realize value from investing in RPA. For instance, at the outset, executives believe RPA is an easy way to automate tasks and thus increase productivity. But the study participants’ experiences reveal that, in theory, RPA is simple but, in practice, it’s difficult. Why? Because RPA is a digital transformation journey, and there are complications when trying to unleash digital transformation.

A company that wants to realize much value from implementing RPA must invest in the capability to drive automation. This involves more than configuring the robots. It requires process redesign, navigating the different stakeholders that have purview (security, IT, audit compliance, etc.) and navigating the business unit with the problem. Often the opportunities and problems span multiple business units, which requires coordinating and focus on multiple units and departments.

The technology itself is simple, but the problem of driving change is difficult. To overcome this, companies are establishing RPA Centers of Excellence (CoEs) – one of the best practices evident among 52 participants in our Enterprise RPA Pinnacle Model study. Getting IT involved early in the adoption effort is another best practice.

It’s very clear that companies that make the commitment and invest in resources to enable change to achieve a higher return on their investment. Pinnacle Enterprises™ – those that achieved superior outcomes as a result of their advanced capabilities – achieved 4X greater ROI than enterprises that didn’t take the RPA opportunity seriously by investing in such success factors as a COE, partners to do the configuration and coordinating the numerous stakeholders that need to be aligned to drive change. 4X is a huge difference in benefits!

A Surprising Outcome of the Study

In our detailed interview discussions with the companies participating in the study, we found significant frustration among the executives sponsoring RPA adoption. They discussed their struggles in trying to communicate with boards of directors and with the business units the need for adequate investment, support resources and the amount of change necessary to capture the value of RPA. The depth of the change and the extent of the investment is difficult for executives to convey to their organizations and their boards.

Interestingly, companies get a robust return from these investments in driving change. But because of the perception that the technology is simple, executives expect that value can be extracted without investment, without resources and without stakeholder alignment. This study clearly proves that is not the case.

One of our goals in the Pinnacle study was to investigate the participating companies across six dimensions of change required for RPA success so that they and other companies can learn from their experiences. A second goal was to develop an assessment tool. Any company can take the 30-minute questionnaire, followed by a four-hour workshop, and compare its RPA journey results against others’ experiences and against the Pinnacle companies, which are the most mature and achieving the most value from their investments.

We anticipated that people would compare their experiences against others, which would then give a practical road map where people can understand the investments and activities they needed to do to get a greater return from their RPA investment. In fact, this happened. Clearly, the people who take the assessment quickly identify the gaps they have against the best practices and build a road map to close the gaps.

The surprising outcome is that we didn’t anticipate how effective the assessment tool is for the executive sponsors of RPA to help communicate the level of effort and resources required. It’s a helpful communication vehicle for justifying the kind of investment and budget necessary to be a high-performing organization in extracting value from RPA and for getting the support for change and aligning stakeholder interests.

Assess Your Company’s Gaps

If your company is undertaking an RPA adoption journey, we believe you’ll get great value from going through this assessment process. Comparing your company’s results to other industries and leading companies will help you understand what you’re doing differently and help you build a road map to close the gaps. It will also provide a tool to help you discuss the business case for the appropriate amount of investment and the appropriate amount of resources necessary for top performance.

Each company progresses down the RPA adoption curve at its own pace. But there’s always something a company can learn from others. Even the best-performing companies – the Pinnacle Enterprises – benefited seeing what others had done and knowing where they should double down on investments and activities that capture value from RPA.

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

"*" indicates required fields

Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.