Reducing Enterprise Costs (Part 3)

In my previous 2 blogs on the Key Priorities For The CIO of Tomorrow I discussed Increasing Enterprise Growth and Delivering Operational Results.

In this blog I will be discussing Reducing Enterprise Costs.

In the aftermath of the credit crisis, businesses have suffered a series of major shocks from the Euro zone crisis, such as a challenging credit environment and a lack of market liquidity, significantly impacting business confidence.

Combined with continuing uncertainty, the ability to reduce enterprise costs is now firmly entrenched as the number one priority to re-position and invigorate today’s organisations for success in a new economic landscape.

In the current environment, I.T. is a critical catalyst for reducing enterprise costs. With this comes new challenges and tensions. The technology platform has to be flexible and agile, supporting reduced business costs while at the same time enabling the enterprise to emerge stronger, fitter and leaner for the challenges ahead.

Market trends indicate that the number of companies now cutting costs has climbed to over 50% of organisations, where the magnitude of cuts is often in excess of 20%.

With this comes the critical constraint of how to meet the demand for improved business performance, flexibility and agility while at the same time reducing costs?

In my experience this can only be achieved by seeking out significant and sustainable cost reductions through a process of:

1. Cost Compression
2. Optimisation
3. Re-architect and Re-platform

1. Cost Compression, aka Minimisation
The first step of the process focuses on the quick wins for dramatic cost compression. From renegotiating vendor contracts through to optimised processes to reduce enterprise technology expenses.

This is often achieved by focusing on reducing sales and servicing costs by introducing customer segmentation based on profitability and value, through to industrialising high touch processes through the introduction of self-service digital channels.

New levels of industrialisation can be achieved through the use of new technology, from standardising enterprise applications, such as CRM, through to redesigning IT processes to make use of commodity based SAAS and cloud based technology.

In one of the biggest examples of standardisation and virtualisation to date, BBVA, the Spanish bank, migrated all of its 110,000 employees across 26 counties onto Google Apps to drive increased efficiency and innovation for its global workforce.

These opportunities need to be prioritised according to their potential returns and risks and will typically enable organisation to realise savings in the range of 10% – 20%.

2 Optimise
The second step is to Optimise – to make current process better, faster and cheaper. By making effective use of technology assets, through rationalisation, simplification and automation, organisations can be migrated to a lower cost base to dramatically improve their operating margins and overall profitability.

By reducing operating complexity, such as consolidating and rationalising servers through to standardising and industrialising operating systems, organisations are better able to respond to new challenges and growth opportunities.

New tools such as virtualisation enable organisation to drive greater levels of optimisation through a process of standardisation. By eliminating processes that add little value and outsourcing non-core services, organisation can reduce overall fragmentation, complexity and waste throughout the enterprise.

At the recent FS Tech 2013 awards, the Solstice Programme from Lloyds Bank was recognised as one of the largest network optimisation programmes to date, driving greater levels of efficiency and optimisation, through a process of standardisation, consolidation and industrialisation of enterprise infrastructure.

During the optimise stage, organisations can often achieve cost reductions in the range of 15- 30%, enabling the organisation to be successfully position itself for the third and final phase.

3. Re -Architect and Re-Platform
The third and final stage is to Re-architect and Re-platform the technology proposition. Only by addressing the legacy of aging technology can organisations truly drive strategic and structural cost reduction.

Ageing technology consumes a disproportionate amount of energy, effort and cost thereby depriving the organisation of the very ingredients it needs to flourish. Legacy technology should be reengineered for the future. Mainframe platforms should be retired and ageing core banking platforms should be replaced. In addition, enterprise wide processes such as CRM and document generation need to be restructured to drive new levels of integration, automation and efficiency.

Only by rewriting legacy platforms and restructuring enterprise wide technology can organisations be in a position to drive sustained strategic and structural cost reduction.

Conclusion
This new wave of IT enabled cost reduction will create organisations that are lean and adaptable. These organisations will be built on a platform of sustained strategic and structural costs reduction, driving new levels of competitiveness and benefits to the wider enterprise.

In today’s new world it will be the leaner, low cost, organisations that will survive.

In my next post I will discuss Attracting and Retaining New Customers.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Biting The Bullet – Delivering Operational Results (Part 2)

In my first post in the series of Key Priorities For The CIO Of Tomorrow, I discussed Increasing Operational Growth.

In this post I will discuss how organisations need to bite the bullet and transform their complex and highly inter connected enterprise architecture to deliver increased operational results.

2. Delivering Operational Results
In today’s world, enterprise technology is typically over complex and inter twined with intricate processes. In a challenging landscape where wholesale replacement is not feasible, changes are bolted on decreasing channel efficiency, driving up operational costs and introducing increased risk of IT failures.

Overall, the complex and inter twined enterprise architecture restricts an organisations ability to breathe and successfully serve its customers, shareholders and the wider economy.

Cross Enterprise Process Efficiencies
A recent Gartner survey identified that :

“Enterprises realise on average only 43% of technology’s business potential”

Furthermore, typical business as usual activity consumes up to 70% IT budget just to maintain the status quo.

Today’s organisations need to exploit new and powerful synergies across the complex enterprise architecture through a process of specialisation.

Transformed Infrastructure
One of the early pioneers in this field were energy companies with vast high voltage infrastructure assets, connecting the length and breadth of the nation.Through a process of specialisation, new synergies were exploited by transforming their infrastructure assets to deliver a new nationwide data network, at minimal incremental cost, by transmitting data over the existing power network.

Similarly large telcos are continuing to transform their infrastructure. In a world where traditional voice calls are declining, telcos are moving from the analogue and cash world to the new digital economy through a process of specialisation. One of the biggest assets owned by the telcos is their billing relationship with the customer. This represents a significant commercial opportunity for telcos to establish new and exciting propositions, such as mobile payments and mobile wallets, potentially disrupting established payment providers.

Japanese telecommunications organization NTT DOCOMO successfully exploited its billing pedigree and created a critical mass of 35m users for its mobile wallet by leveraging existing customer billing relationships.

NTT DOCMO’s mobile wallet, or Osaifu-Keitai as it is known locally, provides identity card, loyalty card, public transport ticketing as well as electronic money by transforming its commercial assets to deliver highly competitive and compelling operational results.

New Operational Opportunities
Only by transforming existing enterprise assets can organisations exploit new synergies and drive new levels of operational results through a process of specialisation. Where power companies and telcos have led, other organisations now need to follow.

In the next blog, I will discuss the third part in the series –Reducing Enterprise Costs.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Key Priorities For The CIO Of Tomorrow

Consumers are driving the digital economy and mobile revolution, requiring a new level of customer experience and service.

At the same time, the current low interest rate and low margin environment is stagnating growth requiring organisations to aggressively look at new ways to increase their top line revenue growth and bottom line earnings.

In a recent report from Gartner, the top business priorities for 2013 were identified as :

1. Increasing Enterprise Growth
2. Delivering Operational Results
3. Reducing Enterprise Costs
4. Attracting and Retaining New Customers

In this first of a series of key skills for today’s CIOs, we discuss Increasing Enterprise Growth.

1. Increasing Enterprise Growth – Next Generation Remote Banking Solutions

In an environment where revenue growth continues to be sluggish, clients are demanding innovative products and greater service. Customers have now come to expect a digital approach to conducting business that is online, mobile, social and real time.

Banks have to respond by focusing on Next Generation Remote Banking Solutions to drive new forms of customer engagement and experience, such as personal finance management and self service capabilities. These new innovative services will deliver increased customer confidence and loyalty while at the same time accelerating the reach and market penetration of new digital banking services.

Furthermore, the next generation of Remote Banking Solutions will offer increased operational efficiencies and effectiveness. From new forms of client engagement, such as new self service channels, through to streamlining the user’s cross channel digital experience, reducing operational costs and driving bottom line earnings.

Only by developing the next generation of Remote Banking Solutions, to drive customer engagement, customer experience and financial efficiency, can banks truly deliver new forms of enterprise growth.

In the next blog, I will discuss #2 – Delivering Operational Results.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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The Rise of The Digirati – A new form of Digital Maturity

 

 

 

In a world where the pace of change is accelerating, a recent report from Cap Gemini ( http://bit.ly/R7VQBv ), identified the creation of a new class of digital organisation, the “Digirati” that are leading the new digital economy.

Digirati organisations were identified as significantly outperforming their industry peers:

• The new Digirati were 26% more profitable than their industry counterparts.

• They generate 9% more revenue through their employees and corporate assets

• In addition, Digirati create 12% higher market valuations than their peers.

Digital Maturity
What is unique about the Digirati organisations, is that they have developed a new form of competitive advantage in the form of digital maturity or DNA. The report goes on to identify that this new digital DNA has been created as a combination of two separate capabilities – Digital Intensity and Transformation Management Intensity, as shown in the following schematic.

Digital Intensity is the investment in technology enabled initiatives to change how the company operates from customer engagement initiatives, such as location based marketing and social media through to internal operations, such as optimised pricing and real time monitoring.

The second dimension is Transformation Management Intensity, creating the leadership competencies, culture and capabilities to drive large scale digital transformation across the whole organisation. This consists of shaping the vision of the future organisation and joining up disparate and disconnected digital silos, such as a marketing, customer on boarding etc into a unified digital organisation

These organisations have successfully evolved their digital DNA, through a combination of Digital Intensity and Transformation Management Intensity, successfully changing customer engagement models and business operations to drive increased completive advantage.

Companies recognised as having a high level of Digital Maturity, such as Zappos, American Express and ZestCash, have built their success on a number of customer facing processes, such as Social Media, Customer Experience and Operational Processes to define their digital vision and transformation journey.

For large organisation, this can represent many millions of pounds to both top line earnings and bottom line revenue growth.

Conclusion
In a world where there are no digital signposts to follow, the majority of successful stories focus on fast moving start-ups such as Instagram and Piterest.

More established organisations are now starting to respond. Out of the digital haze a new form of organisation is emerging – the Digirati, an organisation that can holistically build new forms of digital DNA, transforming customer engagement models and operational processes, to consistently outperform its industry peers to deliver new forms of digital productivity, profitability and proficiency.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Is Risk Depleting Your Capital ?


In today’s highly regulated environment, many organisations are being adversely impacted with the increasing regulatory burden depleting their economic capital. For every pound spent on regulation, there is a direct reduction in the amount of capital available for the front office to generate an economic return.

Historically risk, compliance and regulation have always been key drivers in terms of defining budgets. This has resulted in organizations making significant investments in governance only to have a ROI based on ticking the regulatory box. This is no longer sustainable.

In today’s post credit crisis environment, of higher capital costs and lower leverage, it’s time to implement an integrated risk management framework for a new era of strategic business needs and competitive advantage. To succeed in this new environment, risk management has emerged from the back and middle office as a new form of competitive advantage, tying the outcomes of risk management directly to strategic business outcomes such as driving product innovation, increased operational efficiency and intelligent risk reporting to name but a few.

Strategy
Successful organisations need to look beyond regulation and view risk management as a strategic element of their value chain in order to deliver sustainable growth and innovation. This can only be achieved by taking a holistic view across multiple and sometimes disparate business silos, to maximise the use of capital and leveraging data as an asset to drive greater economic returns.

Complexity
Financial institutions need to be able to look at different markets, customers and product lines in a more sophisticated manner. Regulators have woken up to the fact that technology can be deployed to collect the right information to improve financial accountability, surveillance and integrity. Coupled with an increasing regime of legislative control, a new level of regulatory burden is shaping how organisations respond to a new complex landscape.

Underpinning this is the need for information based on more than just a finance or process perspective but deep risk management. Organisations require new risk management capabilities to support real time scenario planning and risk mitigation. This can be achieved through agile, effective and efficient technology architecture.

Shared Solution Architecture
Many organisations have grown through aggressive growth and acquisition with the consequence being that their technology real estate has become bloated, costly and highly fragmented. This technology footprint will often consist of many 100s of systems, many of them overlapping and duplicated, such as multiple loan, securities and risk management platforms.

What is required is a shared solution, across all business silos, that leverages the latest technology, where amendments can be made to make compliance desirable not feared. This can be achieved through the harmonization of technology and consolidating vendor applications in areas such as data warehousing, trade entry, risk calculation engines and business intelligence reporting environments. This will make significant positive contributions to risk management with more flexible risk reporting, faster risk engines, extended asset coverage and more timely market data.

Competitive Advantage
The increasing pressures on margins coupled with the high cost of technology and burgeoning regulation means that firms are searching for competitive differentiation by moving from compliance to performance and adopting more effective and efficient risk management practices.

Technology is playing a key role as an enabler for this transformation, driving demand for new architectures and high-performance computing. To win in the marketplace, organisations must out-innovate and out-execute, and that means moving faster, being more accessible to clients, launching new products and pricing more effectively. Technology rather than people will be at the forefront to drive risk management as a new form of competitive advantage.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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CIO Magazine


Stop Press : Check out my latest article on Big Data as the new digital currency that has been published in the prestigous CIO magazine …

 

Big Data Gives Banking CIOs New Frontier For Innovation

Big Data has been with us for many, many years. Arguably, Big Data can trace its roots back to the 1880 US census.
20120921-212420.jpg
This survey of 50 million people generated 2.5 gigabytes of data with results being calculated using punch cards in just six weeks.

The technology boom since 1880 has created the explosive growth of data within organisations.

IBM states that data growth is running at a torrent of 2.5 exabytes per day (where an exabyte is a billion gigabytes).

Of this 90 per cent of the information has only been created in the last two years.

Since 1880, technology has created a global economy where transactions have evolved from cash to credit cards through to electronic payments. The next evolution is a digital economy where data is the new currency.

Continue to full article …

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The Emerging Technologies Hype Cycle

With all new technology, the challenge is when to adopt and make the right investment decision. Do you jump before main stream adoption to gain competitive advantage over your peers or do you wait until there is broad market acceptance of the commercial value and benefits?

A recent report from Gartner, a leading technology research company, identified the fastest moving technologies in its 2012 Hype Cycle for Emerging Technologies.

Many of these technologies (see below), such as Big Data, Cloud and Social Analytics (social CRM) have been discussed in previous posts. One thing was common in that all of the technologies followed a predictive pattern on how the technology is adopted to maximise both impact and value.

Source: Gartner’s 2012 Hype Cycle for Emerging Technologies

Looking to the emerging technology cycle, we are at a new tipping point where a number of new technologies are converging, such as Big Data, Cloud and Social CRM. These new technologies are becoming emedded and are disrupting more established banking business models in their wake. In much the same way as when the ATMs were first introduced in the 1960s, people continued to prefer interacting with a bank clerk until dramatically in the 21st century, with the culture change of telephony, online and mobile banking, most people don’t set foot inside their local branch.

This can be illustrated by looking at one of the emerging technologies on the hype cycle.

Speech Recognition
Speech recognition has the opportunity to converge with a number of other emerging technologies, such as Cloud and Big Data, to disrupt conventional banking channels.

As we saw with the ATM, it may only be a period of time before people find it more efficient to talk to a robot rather than a bank clerk.

Surprisingly research in speech recognition predates the invention of the modern computer by more than 50 years. Alexander Graham Bell was inspired by his wife, who was deaf, to experiment with transmitting speech which ultimately led to his invention of the telephone. Not until the 1990s that computers were powerful enough to handle speech recognition.

The very essence of speech recognition can be distilled down to mathematics – you don’t need to recognise accents or dialects. James Baker, a computer speech revolutionary and founder of Dragon Systems, a leading voice technology company, identified that speech recognition had to calculate the mathematical probability of one sound following another. His algorithms have become the industry standard.

Converging New Technologies
Speech recognition technology is already commonplace in call centres, where it lets users navigate through menus and decides when calls should be handed off to a real customer service rep.

We are now entering a second technology cycle, with speech recognition being propelled forward as it converges with a number of emerging technologies such as consumerisation and Big Data to provide new commercial benefits.

All speech recognition is highly dependent on data – the more data you have, the better results you get. Google have driven this to a new level by embracing Cloud, Big Data and Data Exhaust to store every spoken or written search phrase entered into its systems. Using Big Data statistic searches, Google’s speech recognition can determine words based on its digital content.

Additional capability is delivered by Smart phones, which now have as much processing power as the mainframe machines of the ’90s. Coupled with high-bandwidth data connections to the cloud, remote servers can perform the heavy lifting required for both voice recognition and understanding spoken queries.

Using machine learning and statistical data-mining techniques, smart phones can now understand human speech. People now talk to their smart phones, asking to send email, search for directions or find information on the web – want to know more, ask Siri.

Future
Speech is an exciting interface and can dramatically simplify interactions more than anything else. When using mobile applications, speech is the natural interface – typing will always prove to be frustrating and erroneous.

In a world where people are increasingly interacting with technology, the voice of the customer will be stored in the cloud. This data can then be accessed and analysed to provide new innovative services such as fraud detection and security biometrics to name but a few.

As an example, Sberbank the largest retail bank in Russia has utilised speech recognition in its ATMS for lie detection. By testing the customers responses to questions from a database of interrogation recording, Sberbank are able to ascertain when people are lying, dramatically improving their fraud detection rates.

Summary
For financial organisations, speech recognition is on a new and exciting trajectory. With a well established presence in call centers driving operational efficiency, the new technology wave for speech will see it become embedded with new emerging technologies such as Big Data and Cloud to create new operating models to drive greater product differentiation and customer value.

Today we can talk to computers, but very soon they will talk back.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Big Data and the Challenge of Governance

In my previous post ( http://ianalderton.com/?p=861) I disused that challenges of extracting value from Big Data using new forms of competitive advantage, such as dark data and data exhaust. In this post I am going to discuss the challenge of governance for Big Data.

Many organisations believe that Big Data is somehow different and is not applicable to the same degree of governance rigour. This couldn’t be further from the truth. Big Data has the same hallmarks as small data when it comes to governance. The key differentiator is the volume, velocity, variety and volatility of information being processed.

Competing On Insight
The search giant Google was one of the pioneers in Big Data, as seen with the launch of their BigQuery analytics tool, an area that has now developed into an industry worth billions of dollars. Big Data provides the opportunity to develop new operating models and new products based on real time customisation and pricing.

Data As A Currency
With the new analytical tools comes the ability to aggregate data. Organisations can now combine an internal view of their customer with geo–spatial information, such as Foursquare and Twitter, to generate targeted offers and promotions. Without a doubt, data is a new currency that can be traded and invested to drive customer engagement and product differentiation.

With this explosive growth of data and real time analytics comes greater responsibility to balance the need for knowledge with the right of the individual. Data by its very nature is contextual. When an individual shares information on Facebook, they are sharing stories, news, and information with their trusted network. Big Data can identify patterns with unintended consequences when aggregating data.

A recent and prominent example, from the US superstore Target, was when a man discovered his teenage daughter was pregnant because coupons for baby food and clothing were arriving at his address from the store. The daughter, who had not told her father she was pregnant, had been identified by a data system that looked for pregnancy patterns in purchase behaviour.

With Big Data we are entering a new era of ethical convention and challenge. The relationship between the social citizen, the customer and the organisation is changing. Big Data can pick up on trends and insight with unintended consequences.

Governance
With Big Data comes greater opportunity to increase customer engagement and competitive advantage. At the same time this represents a significant moral and ethical hazard for the uninitiated. Organisations need to be able to compete with greater responsibility and balance the need of the individual and customer versus the right to access data as a new currency.

Privacy
In 2006, AOL released anonymous search results in to the public domain. Unknown to AOL, this information was re-engineered by an individual who was able to make it no longer anonymous, thereby identifying the original search details. This information was then aggregated by the New York Police department, across their own photo records and face recognition software, to arrest an individual for attempted murder. In this instance, the New York Police department got their man but with these new tools, comes a new ethical dilema. There is a moral responsibility to ensure that there is clear definition of how the data will be used and potentially aggregated.

The customer’s expectations of trust has to be managed alongside privacy laws and regulation. When the data is collected, if the customer agrees for his information to be used only internally to the organisation, aggregating the internal view of the customer with his facebook profile is clearly a violation of privacy rights, as was illustrated in the Target example above.The sensitive nature of information is critical for all organisations.

In my experience, that are 7 key steps than need to be managed for effective governance of Big Data :

1. Define the business stakeholders and business benefits for Big Data
Make Big Data a business driven initiative. Define who is responsible for owning and maintaining the data

2. Define the organisational structure, scope and governance model for Big Data
How much and what type of data can the organisation consume from the clients public profile? Has the customer agreed to the aggregation of their internal and external profiles ?

3. Define Big Data custodians for both internal and external data
Who owns the internal and external view of the customer within the organisation ?

4. Definite risk factors and controls for Bug Data governance
What are the new laws, regulations & privacy standards for data aggregation?

5. Document policy and procedures for Big Data
How is the data maintained and audited to ensure integrity and compliance?

6. Define quality management policies
How is the data managed and maintained for accuracy and integrity?

7. Information Security and Privacy
How does Big Data change the concept of information as a corporate asset? How do all these Big Data technologies relate to our current IT infrastructure?

Only by implementing a clear and structured data charter, with an increased level of rigour and due diligence, can an organisation be confident that it has the correct level of governance.

To Conclude
Big Data brings a new era of moral hazard and commercial ethics. Against a backdrop of phenomenal scale and power to uncover commercial insights, Big Data can generate unintended consequences without the correct level of stewardship and governance.

Organisations need to revise customer interaction and data charters on how they aggregate the internal view of the customer with information available in social and public domains.

As Big Data becomes increasingly important, and new disparate data sets are shared and aggregated, the stewardship of how this information is consumed and aggregated will be central to both data privacy and how an organisation maintains its trust and integrity with its customers.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Big Data – Extracting Value

 “Most companies only capitalise on 5% of their in-house data”

This was the message at the leading Big Data Summit 2012. In a presentation from Forrester Research it was identified that most financial organisations are unable to extract and exploit the true value from the vast amounts of information they hold.

Big Data is often used to describe the vast data sets that are too large and too complex to be processed by conventional means. In a previous post (http://ianalderton.com/?p=484), I defined Big Data as

Volume – from hundreds of terabytes to petabytes, where a petabyte is equivalent to 500 billion pages of standard printed text.

Velocity – up to near real time sub second delivery

Variety – including both structured and unstructured data

Volatility – hundreds of new data sources coming online from new apps, web services and social networks

The key focus for Big Data is Value in order to drive new competitive insights.

Value – the opportunity to define new operating models and products based on customer insight and intelligence

In this post we will discuss how to increase value from Big Data to enable companies to utilise more that 5% of their data assets and directly increase customer insight, intelligence and information to drive competitive advantage.

Extracting Value
At the Big Data Summit 2012, Holger Kisker (Principal Analyst, Forrester) reported that companies are unable to extract value and exploit commercial insight from the vast amounts of data they hold on products, customers, research and market trends.

Looking at this in more detail, the volume of data available is truly staggering and is measured in Zeta bytes (1021 , bytes) as illustrated in the following schematic.

Source: Sept 20, 2011, “Understanding The Business Intelligence Growth Opportunity” Forrester report

The vast majority of information available to companies is historical data. This comprises of the traditional reporting, such as structured databases and reports, as well as the unstructured data that is available both internally and external to the organisation in the form of emails, phone calls and online content. This historical information far exceeds the information being generated now and in the future.

To be successful in this new data world, financial institutions have to realise that they are in the data business and that data is their biggest asset.

Dark Data
The vast majority of information is dark data – this is data that is either under-utilised or mothballed.

In a world where we are over run by dark data, whether it is social, machine data or location data, the ability to extract value and develop new products and operating models based on deep customer insight and intelligence represents a new form of competitive advantage.

Value is focused on forecasting, trend spotting, developing new products or detecting fraud in real time. Underpinning this is the ability to build a 720◦ view of your customer.

The 720◦ Customer


To capitalise on company data, organisations need to extend the internal customer view to include an external perspective. Specifically, organisations need to build a 720◦ view of their customers to unify the internal view with the client’s external social and influencing network, such as Facebook and Twitter.

As an example, British Airways is delivering a targeted and personal touch through its “Know Me” programme by researching passengers and building a unified view of the customer. The “Know Me” programme will use Google images to find pictures of passengers so that staff can welcome them by name as they arrive at the terminal or plane. This is the kind of individual service, providing a unique and personal experience, that we all aspire to receive.

By building a 720◦ view of their customer, companies such as British Airways will drive new opportunities for revenue uplift through mass customisation, offering benefits such as individual prices and targeted offerings based on predicted behaviours and location based services.

Data Exhaust

An exciting by product of Big Data is Data Exhaust. This is the unstructured information that is a by-product of the online activities.

Google applies the principle of data exhaust to many of its services. In a world where Microsoft spent several million dollars developing a spell checker, Google developed a leading spell checker , in every language, based on the mis-spellings typed into its search engine. The Google spell checker was developed on the by product of Data Exhaust from its online search engine.

Collecting and analyzing data exhaust can provide valuable commercial insight into the behaviour, actions and aspirations of your clients. Re-using data exhaust to improve a service or create a new product will be a new form of competitive advantage for those organisations embracing Big Data.

Conclusion
The debate on Big Data is often focused on the underlying data volumes or the new innovative tools and techniques. As I’ve highlighted here, the real opportunity and critical success factor is VALUE – how to extract value and exploit the information to enable better informed decisions and strategic outcomes.

Only by pulling data together from different structured and unstructured sources and developing new ways of processing, such as the 720◦ Customer and Data Exhaust, can organisations successfully develop new seams of competitive advantage and harness the 95% of untapped Big Data resources.

IAN ALDERTON
Email : ian@IanAlderton.com
Tel : +44 (0) 7702 777770

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Financial Times Interview


The Financial Times have just published the video of  an interview taken when I was CIO Corporate Banking at RBS.

As part of a leading CIO Series, I was interviewed by Paul Taylor ( US Business Technology and Telecoms Editor, Financial Times ) for my views, insight and expertise on the post crisis rebuild of the financial services technology sector ( www.t.co/Ha2UR1QH ).

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