accelerate digital transformation: from trend to … · “our costs are too high and our agility...

ACCELERATE DIGITAL TRANSFORMATION: FROM TREND TO BUSINESS-CRITICAL NEED FOR BANKING & INSURANCE

March 7, 2018

Understanding Digital Transformation

Business Context

Augmented intelligence (bots, agents, robo-advisors, intelligent automation)

Open API banking

The branch of the future

Digital ledgers and blockchain

Fintech partnerships

Predictive analytics, IoT, big data

Advisory

Payments

Cards

Commercial

Depositsand lending

Banking license

How will financial services firms innovate and evolve?

THE CURRENT VISION MISSES BUSINESS TRANSFORMATION

Financial services companies are focused on using technologies to improve efficiency but missing the opportunities to transform their businesses. Insurers have a traditional product delivery model while banks are trying to leverage fintech companies to deliver morecompelling customer experiences.

BankInsurer

CustomersCustomers

Fintech

Delivering a “one-size-fits-most” experience to customers

Current State of Customer Experience Delivery

THE FINANCIAL SERVICES REVOLUTION?

“Our costs are too high and our agility is too low – if we don’t change this quickly, we won’t be ableto compete.“

CIO of a Global Systemically Important Financial Institution

91% of banks and 75%of FinTechs say that collaboration will become an expected way of business and they expect to partner with each other in the future.

“World Retail Banking Report 2017” Capgemini & Efma

CUSTOMER EXPERIENCES ARE ALIGNED BY FUNCTION AND BRAND TODAY

Each brand is trying to create

their own experience

Financial Services Retail Transportation Delivery Lodging Government Others

Experience providers are narrowing their focus to smaller niches with greater capabilities. The creation of customer experiences is accelerating. Generalized experiences are likely to be outflanked by more targeted experiences.

Bran

dsTr

uste

d N

etw

orks

(E

xam

ples

)

The digital future is characterized by deeply customized user experiences targeted to customer niches and specific activities

EMERGING CUSTOMER EXPERIENCES ARE ALIGNED TO USER TYPE AND ACTIVITY

Classy Party Getting toWork Right

Smart Winning

RetirementMobile Valet The Genius

Gift GiverThe Divers’Bucket List

Track Nature’s Progress

Leaving aFinancial Legacy

Practical Dress Nature Giving Diving for

Good

Birthday Easy Smart Moneywith Kids What to wear

Little Gifts for Special People

Diving with Kids

Building aBetter Bakery

Plan your Prom

Club Fund Raising

Walk to School

College Financial Planning

What’s It and What’s not

Giving GiftsWith Little

Money

Funeral Planning

Estate Planning

Gifts for Family Loss

Nic

hes

YoungProfessional

Working Momwith Small Kids

BakeryOwner

High schoolstudent

Lost a lovedone to death

Retired Environmentalist

ActivitiesPlan an Event

Manage aSmall Business Walking Personal Financial

Planning Dressing Gift BuyingScuba Diving

EACH FUNCTIONALLY ALIGNED CAPABILITY WILL COMBINE TO ENHANCE CUSTOMER EXPERIENCES


Smart Winning






Good



Diving with Kids


Plan your Prom

Club Fund Raising

Walk to School




Money

Funeral Planning

Estate Planning


Nic

hes

FinancialServices

RetailTransportation

DeliveryLodging

GovernmentOthers

Plan an Event



YoungProfessional


BakeryOwner

High schoolstudent



Activities

Building a Better Bakery customer experience provides clarity on what is possible

EXAMINING ONE CUSTOMER EXPERIENCE SHOWS THE POSSIBILITIES


Smart Winning






Good



Diving with Kids


Plan your Prom

Club Fund Raising

Walk to School




Money

Funeral Planning

Estate Planning


Nic

hes

FinancialServices

RetailTransportation

DeliveryLodging

GovernmentOthers

Plan an Event



YoungProfessional


BakeryOwner

High schoolstudent



Activities

Others

CUSTOMER EXPERIENCES ON THE CLOUD PROVIDES ACCESS TO A MYRIAD OF SERVICES

10

Microsoft Platform CapabilitiesCommunity

CalendarWeather

OthersTraffic

Big Data

Cars

SocialMedia

BusSchedules

Other Customer Experiences

Functionally Aligned

Capabilities

Insurance

PurchasingInvestments

DeliveryTransportation

Shopping

Lodging

GovernmentServices

Budgeting

Payments

AGILITY IS ESSENTIAL TO ASSEMBLE CUSTOMER EXPERIENCES

11

• Average income of people nearby• What to bake for which days• Optimize price for products• Business expansion options• Deliver service options• Optimize staffing• Optimize which staff when• Create staffing schedules

Build

ing

a Be

tter

Bak

ery

Capa

bilit

ies AI

Purchasing

BotSocial Media

• Ratings, comments, recommendations• Changes in opinions• Look for new employees• Reorder regular supplies

• Delivery of orders

Cars• Parking availability• Types of cars

Shopping

IoT• Equipment monitoring• Current ingredient supply

• Find best deals, source, and location of supplies• Suggest new products

Community Calendar

Insurance

Investments

Budgeting

ML• Alert on customer patterns• Note changing business• How customers behave in the store

Government Services• Answer questions for customers• Make recommendations to customers

• Request new capital• Savings progress• Recommendations for investments

Blockchain• Create a secure employee onboarding

• Receive alerts on local events• Anticipate changes in sales

• Real Time tax submittal• 911 support

• Progress toward business growth goals• Variance of spending from budgets

• Insure equipment’s changing value• Insure assets• Business continuation• Key person insurance

12

AND GROW SERVICES OVER TIME…

As new micro products become available users can choose to add them• AI will optimize which services to add • New data will be needed to activate them• Monitization of new services will be key• Users can sell their data and insights back to

others• Bank branches could become key services

across this landscape

Data and intelligencePredict and respond proactively

TrustSecurity and privacy are built in

Application innovation

Accelerate innovation with the cloud and improve agility

Open and flexibleLeverage open source

investments that you already know and scale at your pace

The technologies ecosystem of transformation with ongoing investment and innovation

13

Why Microsoft Azure?

FINANCIAL INSTITUTIONS CAN WIN IN THIS EMERGING WORLD IF THEY CAN:

Own customer experiences using their own and others’

capabilities

Deliver the best decisions at scale

Quickly adopt new business models and

revenue streams

Establish and maintain trust and security

Despite the uncertainty of the future, acting now based on what we know will prepareyou for the future

RECOMMENDATIONS FOR TODAY

Financial Institutions should

Establish a relationship with a trusted cloud

Know you customers’ profile and behaviors

Pick the experiences where you have a right to win

Explore the business model changes

Build out the partner ecosystem to support your experiences

Build out the partner ecosystem to deliver added services

DRIVING DIGITAL ADOPTION THROUGH CHANGE MANAGEMENT

WHAT’S THE CHALLENGE WITH DIGITAL ADOPTION?

Digital platforms are being deployed to improve collaboration and efficiencies, but people are not using it

Organizations are struggling to gain benefits from digital initiatives because end-users’ productivity remains low

Organizations never get a return on their investment in change and technology

75% of all digital transformation projectsfail to delivertheir intended business benefits

17

Digital initiatives/technology adoption issues within large corporations is endemic and very costly—because:

*Source: Gartner

ROI

1818

WHAT’S THE UNDERLYING FACTOR OF THESE CHALLENGES?

Digital Disruption = The New Normal

19

Success is driven by the people within your organization

Enable your organization to define and deliver business value for yourselves

WHO CAN MAKE CHANGE HAPPEN?

KEY ROLES

Executive Sponsors

Project Managers

Business Owners/Dept.

Leaders

Champions & Community Managers

On average, large IT projects Change management is a success enabler

20

WHY IS ENABLING ORGANIZATIONAL CHANGE SO CRITICAL TO DIGITAL INITIATIVES?

6x Increased likelihood of meeting objectives

& 7% over time

Source for StatisticsInc., P. (n.d.). Executive Summary of Best Practices - 2016. Retrieved August 18, 2017, from http://empower.prosci.com/2016-best-practices-change-management-executive-summary

15%

44%

76%

94%

Poor Fair Good Excellent

Percent study of participants who met or exceeded objectives

CHANGE MANAGEMENT EFFECTIVENESS

Run 45% over budget

Delivers 56% less value than predicted

Source for StatisticsMichael Bloch, Sven Blumberg, and Jürgen Laartz. (n.d.). Delivering large-scale IT projects on time, on budget, and on value. Retrieved August 18, 2017, from http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/delivering-large-scale-it-projects-on-time-on-budget-and-on-value

http://empower.prosci.com/2016-best-practices-change-management-executive-summary

http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/delivering-large-scale-it-projects-on-time-on-budget-and-on-value

WHAT’S THE SOLUTION?

21

• Design a custom immersive learning program.• Establish learning objectives, goals, timeframes

and deadlines.• Mobilize your resources for delivery.

DIGITAL TRANSFORMATION IS ABOUT HUMAN & ORGANIZATIONAL TRANSFORMATION

Plan

Adopt

Discover

Empower

Assess the baseline

Design learning based on data

Achieve organizational transformation and ROI

• Prepare for and manage change by understanding barriers to success, learning styles and personas.

• Map out key organizational milestones to reach goals and objectives.

• Stir up positive excitement around change.

• Put all necessary interventions for change into place.• Rollout the change and create knowledge-able people.• Provide support and training resources.

Apply training and see adoption soar

• Create smarter learners who know how to make tech work specific to their roles.

• Invoke behavior change and a shift in cultural mindset.• Stay aligned with goals, best practices and KPIs

2323

Take a human-centric approach to digital adoption by:• Strategizing and developing a clear vision for change• Communicating the vision• Preparing your people for change/adoption• Creating a culture where constant change is the new normal• Using analytics to see where customer success gaps are• Developing a customized, immersive adoption solution for business

users• Creating/delivering a multiprong learning program to drive adoption

and empower employees to proficiently use technology

RECOMMENDED PRACTICES TO MANAGING CHANGE AND DRIVING ADOPTION

THE VITALYST PROPEL METHODOLOGY ALIGNED TO OUR SOLUTIONS & SERVICES

Discover Plan Empower

Go LivePilot

Adopt

Windows Deployment

Walk-Up CenterEmployee Outreach Programs

Instructor-led Training

E-LearningSelf-Help ResourcesKnowledge Videos

Data Discovery & Adoption

Floor Coaches

Live How-to SupportLive Technical Support (MHS)

Communications

Deployment ArchitectSolution Architect

M365 Managed Training Services

Technical analyst

Advanced Support GroupExcite Days

25

COMPLEMENTING THE PARTNER ECOSYSTEM TO DRIVE CHANGE AND ADOPTION

Microsoft

VitalystASSESSMENT

REMEDIATIONENABLEMENT

MIGRATIONCHANGE

ENABLEMENT CHANGE ADOPTIONPROCIENCY

Adoption Landscape

Microsoft Vitalyst

DRIVING DIGITAL TRANSFORMATION AT FINANCIAL INSTITUTIONS

26

27

DRIVING DIGITAL TRANSFORMATION AT A FORTUNE 500 BANK

Business ChallengeMeet broader organizational vision to move from a call center to an engagement center to deliver highest level of customer serviceReplace existing CRM platform which lacked ability to support modern workflows (Phase 1 of transformation) with Dynamics CRMEmbark on digital transformation with minimal impact to the end-user community and no disruption in customer engagementAlign the needs of management with the end-user community for maximized adoption and usage of new technology

Business GoalsDesired a solution that would positively impact multiple lines of business and bring together many internal record sourcesNeeded to implement technology that allowed for streamlined workflows and processes into one integrated systemImprove service efficiency, shorten resolution times and improve competitive advantage for superior customer serviceEnsure end-users adopt and understand the benefits the CRM platform will provide to deliver the best customer service

28

Solutions ProvidedImplemented innovative and secure technical CRM platformProvided Dynamics CRM to reduce risk, ensure compliance of business policies, and make integration less challengingDesigned, implemented and delivered end-user transformation strategy

• Holistic training program including instructor-led training, e-learning, self-help resources• Frequent communications to end-users with information about what will be changing, as well

as the benefits of the new technologyResults

Organizational readiness and change management success• Faster onboarding time for new hires• Excitement and adoption of new technology amongst pilot user group filtering into broader

end-user community slated for migration

Improved customer service delivery that resulted in• An increased number of calls for customer support answered within company’s SLA• A reduction in time taken to create and process a customer case• A reduction in steps needed to perform tasks within the system• A reduction in time needed to answer a support request

DRIVING DIGITAL TRANSFORMATION AT A FORTUNE 500 BANK

Highly complex project impacting multiple lines of business and internal

record sources

Project resulted in drastic reduction of steps needed to complete routine tasks

Phase 1 of migration success confirmed by pilot group no longer needing

legacy platform

29

Q&A

www.vitalyst.com

Vitalyst is a global provider of learning services and solutions that helps organizations humanize technology. Using a proprietary methodology, we help clients identify high impact opportunities, then create educational programs to maximize adoption and skilled use of technology. We deliver a unique, employee-centric, transformation experience, enabling our clients to develop sustainable improvements for continued innovation and growth.

Thank you!• Paul Rigby

[email protected]

• Steve [email protected]

30

accelerate digital transformation: from trend to … · “our costs are too high and our agility...

Documents