Being a solutions provider in an ever-evolving industry means constantly stepping up your game. With the drive to be ‘disruption architects’, organizations are diving into digital transformation as opposed to just modernizing. As enterprises are confronted with new market developments, shifting customer preferences, new compliance rules as well as competitive challenges- they are scaling up their functions. Transformation via reengineering existing legacy systems, renewing ERP systems, and rewriting processes—are now more crucial than ever. According to the TechTrends 2020 report by Deloitte, CIOs recognized that their existing systems lacked the agility to innovate and scale, with 64 percent CIOs rolling out next-generation ERP or modernizing archaic platforms. Thus, the overarching vision of emerging as a holistic enterprise is underpinned by increased investments in cloud, core modernization, comprehensive cyber risk strategies, and more.

Before we go further, let us first understand the difference between digital transformation and IT modernization

Digital Transformation v/s IT Modernization

‘Digital transformation’ and ‘IT modernization’ are the latest buzzwords and understandably so. However, there is a discernible gap in their comprehension as they are commonly used interchangeably. Let us first delve into what differentiates them and how enterprises adopt them to embrace perpetual change.

Digital Transformation (DX) is a holistic adoption of rapid, high-impact overhaul of how a company operates, supports its customers, and develops new businesses by embracing innovative technology. If digital modernization is a step forward, digital transformation is a giant leap. Mandated typically by the leadership level- CEO or CIO, digital transformation is undertaken to achieve a market impact through end-to-end orientation. AI, automation, IoT, cloud migration, and other advanced technologies are transforming the way businesses function today, necessitating a fundamental shift in corporate philosophy, culture, and business models.

IT Modernization in a nutshell is upgrading to new business-enabling technology such as cloud services, email and collaboration platforms, and vital systems like ERP, logistics. The aim is to improve existing processes, increase efficiencies, and be economical. Infrastructure and operations are frequently the focus of digital modernization, with a particular “digital” emphasis on a more engaging front-end user interface and user experience. With the vision of driving impactful business decisions, this shift is mandated by middle management.

Key Characteristics of Digital Transformation

While IT modernization shares some key attributes with digital transformation such as automated productivity, streamlined processes etc, there are some stark differentiators that make digital transformation a concept on its own. Some key characteristics of digital transformation can be identified as-

Holistic remodeling– DX is not confined to technology or disruption, it’s all about value, people, optimization, and the ability to quickly adapt through intelligent application of technology and data. In practise, end-to-end customer experience optimization, operational flexibility, and innovation, along with the development of new revenue sources are key goals and desired results of DX. The factors that have contributed to this phenomenon are evolutions such as big data, advanced analytics, cloud computing, artificial intelligence, machine learning among many others

•  Integration of data and process– It is imperative to keep data integration at the heart of your digital transformation remodeling journey. The integration will assist you in eliminating silos and achieve your company’s vision of modernized technology-embedded processes. With data integration done at the onset of your transformation program, you will be able to construct a modern platform upon which to build your new processes. Thus, there is an ecosystem built to make your old and new processes coexist as the process isn’t restricted to just consolidating source systems
• Leadership communication– Digital transformation compels the C-suite level management to be at the nexus of the journey and put in innovative efforts. With the decision of transforming from the grass-root level comes the need to address your employees’ concerns and queries. With the advent of DevOps and agile work styles, the CIO’s position becomes more cross-functional – to cooperate and innovate with their associates to provide new products and capabilities at an unprecedented pace

Investment in the right direction

According to a report by Statista, in 2022, spending on DX is projected to reach ~ US$ 1.78 trillion whereas between 2020 and 2023, investments are forecast to amount to almost ~US$ 7 trillion. So, let’s delve into the top areas of investment for digital transformation.

Leaders are more likely to invest in the internet of things (IoT), cloud computing, artificial intelligence (AI), and advanced cyber protection as they foray into digital transformation. Investing in cloud-native applications will help to maneuver seamlessly as these solutions are devised to effectively operate in private, public or hybrid cloud. These processes leverage prominent technologies like Microservices, Containers, DevOps, and Automation to deliver swift innovative transformation.

Parallelly, the leadership team should also constantly examine personnel requirements, investment strategy, and financial restrictions as they drive transformation. Stalled conversions are frequently caused by insufficient operating models and a lack of domination.

Leading by example

A leading global bank engaged in digital transformation with the aim of resolving challenges on various fronts such as manual processes, customer experience, employee productivity, and mitigating risks. The firm focused on building CoE and developing RPA applications to accelerate their processes and tackle challenges. Through digital transformation, the bank was able to create a CoE that helped standardize, document, and govern their automation program- freeing up 2,500 work hours that they applied to higher-value tasks.

Foresight driven approach

As challenging as digital transformation seems, it is imperative to position it at the forefront of every organization’s way forward plan. While the pandemic has pushed the momentum of digital transformation, it is becoming increasingly crucial to improve customer experience and increase operational efficiency. Thus, adopting an integrated approach at various functional areas will remodel your enterprise into a holistic one.

Views expressed in this article are the personal opinion of Sandeep Sekar, Vice President – Digital Business, Maveric.

Disclaimer – The Banking & Finance Post

Banks and financial services firms today are compelled to go digital. While restraint by some is understandable, the change is both necessary and worthwhile

It has been a little over a year since digital transformation topped agendas in the financial sector, around the globe. Banks and traditional financial services companies have often been slow to adapt to the digital revolution, but Deloitte has pointed out in a report that digital transformation can provide a significant advantage. Financial services companies refrain from adoption because new technologies add complexity and challenges to their core services; however, they can innovate to capitalise on the latest advancements and deliver new forms of value to their customers. Most importantly, digital transformation is not just advantageous for banks but also necessary. With the rise of the digital economy, digitally native consumers expect digital banking, for which digital transformation has become a strategic imperative.

The need behind the transformation

The operational efficiency of an organisation is directly related to its technological maturity. Efficiency is the hallmark of digitally mature organisations, and it lets them maintain low overheads. On the other hand, organisations that continue to use legacy systems tend to be underperformers. The reason is clear – and here’s the proof: A Boston Consulting Group (BCG) survey suggested that digital initiatives can help financial institutions cut costs by as much as 80% with proper execution.

These digital initiatives lead to benefits such as convenience and ease of use for consumers, who have no interest in back-end performance improvements (which drive technology adoption in many organisations). According to a survey by American Bankers Association, mobile payments, online budgeting, video approvals, etc. are features for which customers would switch banks. Some of the advantages of digitisation can allay safety concerns too, such as contactless payments and e-services.

Understanding the deterrents

Transformation of any kind comes with challenges – more so when it pertains to digital, as it threatens the way of working of so many people. In addition to these regular ones, financial institutions must find a way to overhaul their complex business models and legacy systems. The entrenched way of working in a financial institution also makes it difficult to understand the potential of digital transformation.

While innovators and early adopters iterate at exponential rates, leading to products and services that are disruptive, not all people in the financial sector operate at the leading edge of innovation – they are more concerned about the rules and regulations and adhere to them, for good reasons. The safety created by this environment makes it difficult to fully grasp the significance of new technology trends, and institutions must find a way to disrupt while staying grounded.

Custom(er)ising the banking journey

Consumers demand an easy, seamless, and fully customised experience. For them, both grocery shopping and banking are transactions – if they can take care of the former from an app, they expect the latter to provide similar convenience. Four out of five financial institutions agree to this trend, according to BCG, and yet 43% of them haven’t developed a digital strategy.

The solution to this starts with data. Banks accumulate details and information about their customers on a huge scale, which can be utilised to create bespoke user journeys that are intuitive and simple. Data analytics can provide extremely valuable insights to help banks understand and serve consumers better in a non-invasive but a pre-emptive and personalised way.

Embracing open banking

The financial landscape has changed drastically over the last decade: banks are not just competing with banks but also with finance-related apps that make basic banking processes look rigid. Opening up an avenue where information is shared securely through APIs with third parties, after getting the consent of consumers, can pave the way ahead. The data can be used by various mobile and app services to help consumers find the easiest way of accomplishing their goals, thereby simplifying their banking experience.

Succeeding at trial-by-transformation

Despite the challenges ahead, leaders in the financial sector have an incredible opportunity to redefine the customer experience. The effects of digital transformation through experience engineering can permeate all levels of a consumer’s life, considering how banking is the backbone of almost all economic activities. Banks that are most digitally enabled can set new standards at an accelerated pace for the industry while making life easier for both their employees and customers.

Originally published on Dataquest India

The secret of success for any business is “Happy Customer”. And if you know how to succeed in enhancing the customer journey, then the sky is your limit. Gone those days when consumers use to take the back seat and business growth was the only goal to chase. Today, the most crucial aspects of any business are enhancing and smoothening the customer journey and make sure that not a single touchpoint is missed.

So, to build a strong customer loyalty process every customer touchpoint is addressed whether they are looking for a new service or financial product, scheduling a loan appointment, or checking statements, etc.  But at the same time, make sure to enhance operational efficiency, productivity, and control costs.

Digital Transformation Taking the Front Seat

Today the financial business is witnessing huge challenges. Customer expectations are increasing by leaps and bounds. They are looking for a provider that gives them something extra in terms of some financial advice, better interest rates, etc.

With the unprecedented access to information and growth in technology, customers have innumerable options to choose from and it is paramount that organizations enhance their CRM systems to engage with customers more often, make their interactions personalized, and make every experience delightful to enhance customer experience, build loyalty and improve customer retention.

Banks and financial organizations have realized the fact that to be ahead of their competitors and to provide a seamless experience to their target market, they have to revolve their business function around it.

Customer Relationship Management (CRM) solution is no longer optional. It needs of an hour. A rightly implemented CRM can help financial institutions and banks in acquiring new customers, close the deal, and provide excellent customer service. As CRM holds the core customer data, these data are utilized for better handling of problems, providing info on the best product and service, communicate with customers at right time, and to extend customer service across multiple channels.

Source: Deloitte

The above infographic clearly shows that disruptive forces are taking center-stage in customer service strategy. As per a study conducted by Deloitte “Organizations must begin pro-actively reaching out to customers with information, advice and where appropriate, forewarnings. Acting as a partner to your customer and advising them how to make the most out of your services and reduce costs for themselves are high-value services that will single out your organization from the pack”

New Capabilities for Customer Services – Siebel CRM

Till now, we have understood that why CRM is no longer an optional choice for banks, but the question arises on how they can achieve maximum top-and bottom-line growth?

Here are some of those benefits and how you can become the bank that customers love with the right banking CRM solution.

• It can help you in establishing a need-based, customer-centric business model
  We all agree that it costs twice as much to acquire a new customer as to keep an existing one. Especially the in case of banks were losing one customer or acquiring a new one can be a huge financial burden. But with the help of a robust CRM system, banks can segregate customers based on their account information, demographic, engagement history, the types of services they use, etc.And based on this information campaigns can be built with tailored-made offerings. Competition for customers is high, so relevant offerings and cross-sell opportunities are crucial for keeping existing customers engaged.Oracle’s Siebel Open UI is a power-packed next generation UI framework, built with modern web standards (HTML, CSS & JavaScript) to simplify the overall user experience. With Siebel Open UI, you can easily digitize your traditional UI to a much more intuitive user interface.
• It can help in delivering digital-first engagements
  The right CRM solution can help financial institutions and banks in delivering a digital-first banking experience to their millennium customers. We all know today customers are looking for services that can be easily accessible at their fingertips. And dealing with these types of customers you need to empower your sales and field agent with apt and real-time access to customer’s information, history, reports,and more, over your smartphones, tablets, and any other devices.Siebel CRM mobile solution offers pre-built mobile applications such as sales mobile and service mobile, which can be configured and integrated with the Siebel CRM applications. That means, your customer-facing team is fully accessed with customers’ information anywhere anytime.
• It can increase banker productivity
  What’s the first thing comes to your mind when we talk about the banking process? It simple “Paperwork and Repetitive task”. Numerous processes that need manual handling and involve lots of paperwork. These outdated banking process systems make bankers less productive due to the procedure’s vulnerability to errors.But these concerns are no more cause of concerns for bankers. With the help of Robotic process automation (RPA) banks are now automating their business processes, thus reduces manual mundane tasks. Moreover, banks can complete their back-end tasks more accurately and efficiently without completely overhauling existing operating systems.
• It can help in personalizing customer relationships at scale
  Digitalization has elevated customer loyalty and incentive programs to a new height. It requires you to build trust without any human interaction, which means customers want a flawless experience with the services they are using. So, how to recognize your loyal customers without spending thousands of dollars on ads, setting up expensive retargeting on custom development?

With Siebel loyalty management, you can personalize the way you want to interact and engage with your valuable customers. Furthermore, you can acquire and leverage rich customer insights and embedded best practices to deliver innovative and differentiated programs that drive behavior and build value, offer great customer experiences across channels, and adapt quickly and cost-effectively to improve competitive advantage.

Conclusion

Though you can reap endless benefits with CRM implementation and can build a robust customer relationship strategy especially in the banking domain which is now a customer-driven world. Experts believe that banks that understand and serve customized offerings are more likely to succeed, while those who still believe in traditional ways will lose market share and fade away.

As it is rightly said that “It is never too late to adopt innovations and new ways of working”.  And it is important to keep in mind that we need to fundamentally change how we operate and deliver value to your customers. This can only be possible if a strong infrastructure foundation and well chose team collaborate.