In my last blog ![\"MakeItDigital\"](\"https:\/\/i0.wp.com\/ianalderton.com\/wp-content\/uploads\/2016\/01\/MakeItDigital.jpg?resize=189%2C107\")
I discussed a new wave of digital disruption where existing business models are being challenged by agile new disruptors that have been built for the digital age, putting the customer in charge, with social, mobile, data analytics\u00a0and cloud technologies at their core.<\/p>\n
In this blog I will be discussing the key trends of Digitisation<\/strong> and Digitalisation<\/strong>.<\/p>\n 1. Digitisation<\/strong> In reality there is no instruction book or \u00a0bible on best practice.\u00a0Digital commerce implementations are dependent on a complex ecosystem of technologies, data, tools and vendors.<\/p>\n To date, many banks are focusing their digital initiatives on \u201cDigitisation<\/strong>\u201d :<\/p>\n Digitisation<\/strong>: “Moving what you did offline (analogue) to online (digital)”<\/em><\/p>\n Historically, this has occurred across 3 distinct phases and has mirrored banks internal core systems \u00a0by applying a digital veneer to existing activities\u00a0in order to reduce channel costs and improve operational efficiency :<\/p>\n 3 phases of Digitisation<\/p>\n Although worthwhile, digitisation of separate end to end value chains is no longer sufficient by itself\u00a0to justify future digital investment.<\/p>\n 2. Digitalisation<\/strong> Digitalisation<\/strong>: “Process of exploiting digital assets to maximise business success”<\/em><\/p>\n Alternatively Gartner defines Digitalisation as \u201cthe use of digital technologies to change a business model and provide new revenue and value producing opportunities<\/em>\u201d.<\/p>\n New competitors are aware that they can offer customers a more convenient and less expensive proposition by exploiting new service models and industrialising digital assets such as data, cloud and mobile.<\/p>\n Technology is now being used at the forefront of the user experience increasing customer centricity as well as driving innovation in new Omni channel products and services.<\/p>\n This approach relies on offering new technical capabilities (APIs, apps, functionality and connectivity) that support a broader customer use case \u2014 one that extends beyond simple financial services transactions\u00a0such as mortgages and savings.<\/p>\n Digitalisation has already disrupted digital wealth platforms with the advent of new platforms such as Nutmeg\u00a0and Simple to enable people to manage their money and investments online. The\u00a0rise of new robo advisors will further accelerate change in this sector.<\/p>\n In addition, consumers are now choosing to invest their savings into small businesses through crowd funding or peer-to-peer lending platform such as Funding Circle and Zopa.<\/p>\n 3. Walled Gardens \/ Digital ecoSystems<\/strong> These new digital walled gardens, such as Alibaba, Alipay and MyBank, promote both increased customer lock in as\u00a0well as locking out traditional financial providers.\u00a0 As an example Alibaba via its Alipay alliance now controls 82% of China\u2019s online payments.<\/p>\n MyBank, an Alibaba backed online bank, uses big data techniques and a data trove of 40 trillion retail customer records to generate a unique competitive insight using predicative analytics of customer behaviours, business sentiment and commercial risk exposure.<\/p>\n 4. In Conclusion<\/strong> Banks now need to fully exploit their digital assets and update their structure, services and products to remain competitive and relevant in the new Digitalisation\u00a0ecoSystem.<\/p>\n In my next post I will discuss the key pillars for digital success.<\/p>\n IAN ALDERTON In my last blog I discussed a new wave of digital disruption where existing business models are being challenged by agile new disruptors that have been built for the digital age, putting the customer in charge, with social, mobile, data … Continue reading
\nMany organisations are anxious to get ahead of the curve on digital which is changing the very nature of business and making markets more dynamic,\u00a0putting the customer first and placing data at the heart of the organisation.<\/p>\n\n
\nThese early digitisation pioneers, have given way to a new wave of “Digitalisation”<\/strong> :<\/p>\n
\nPowered by extensive use of big data techniques, data analytics and massive data pools, new digital disruptors are creating new digital eco systems or walled gardens to further accelerate the customer proposition and potentially disintermediate existing players.<\/p>\n
\nApplying a digital veneer to existing operations to make the service more attractive to the customer, is no longer worthwhile in the new digital eco system.<\/p>\n
\nEmail : ian@IanAlderton.com<\/a>
\nTel : +44 (0) 7702 777770<\/p>\n","protected":false},"excerpt":{"rendered":"