Organisation that aligns completely to changed realities of digital world wins
Published on : Thursday 24-10-2019
Digitalisation is imperative but enterprises are still struggling with implementation. How can begin the process?
The digitalisation journey, which started as providing the customers with frictionless anytime self-serviced interfaces to take control of their needs has now evolved to a point that it is changing the basic fundamental business models – disrupting and creating numerous ones it its wave. The challenge is to build the entire business model around the core digital pillars rather than stitching few journeys incoherently and hence it demands greater accountability from the top of the business rather than just shared responsibilities – lack of which at times may prevent getting the full benefits of digitalisation
The four critical components of a successful Digital Transformation are:
A. Strategic Intent – A top down strategic vision and intent on the goals and objectives of digitalisation is key especially in the beginning of the journey else too many bottom up overlapping journeys will erode the benefits fast.
B. Right Infrastructure and Communication – Ability for the organisation to quickly pilot , test out and deploy the new levers of digitalisation not only provides them with a first mover advantage but also allows them to refine it for its success. And a critical component of this is the right infrastructure – not only for technology and data but also people and talent to make this happen. The entire organisation should join up cutting the silos to make it happen.
C. Keeping the Customer Experience as critical – In order to deliver the customers of tomorrow a superlative experience, the focus should be on the end to end journeys and experiences rather than success and commercial benefits of individual products. Identifying and measuring the customers’ life time value metrics is essential.
D. Retain the Trust – Behind all the glittery journeys of digital, the essential pillar still remains the customer trust. We need to be transparent and committed to protect their interest even more in a connected, integrated free data flow world.
For many organisations, the stumbling block is the silos, which ironically, digitalisation seeks to break. Is this a classic chicken and egg story?
Armed with top down push and visibility and a strategic intent to deliver – digitalisation must first focus on some quick wins rather than a radical transformation upfront so that credibility can be gained. Once credibility is gained, experiments can be done to dismantle existing structure and build new ones which help businesses and then finally once the risk appetite builds, more calculated and well researched risks can be taken to radically transform the organisation.
Is joining one of the digital platforms the only way for an average enterprise?
Digital Platforms are key to be able to deliver capable and seamless experiences to the customers in this world but just having one does not guarantee success. It's still about the redefined business models and a streamlined set of customer journeys and experiences that can be delivered and not about the tools themselves. But once we have the critical platforms they continuously need to be harnessed with more data and tailored new products via mass customization and hyper personalisation.
Often, companies get bogged down in discussing technologies rather than outcomes. How should an effective CTO deal with this?
Yes that's where the strategic objectives and intent becomes critical – not only at the beginning but regular appraisal of the progress basis. What is in it for me? And what is in it for customers? Hence the tools and platforms should be seen as means and not the end and business should be leading the digital transformation rather than keeping solely as an IT/CTO prerogative. CTO should play the role of a facilitator and a visionary but the accountability should be firmly with the head of business or the Chief Digital Officer to make the implementations successful.
Finally, is multiplicity of vendors creating conflict in the process?
Yes, choice of digital partners is very crucial. It all depends on what roles they are playing. We need to be more selective in the core process/systems, strategic platforms and middleware as these forms the foundation and the partner should not only understand the organisation’s driving mantra but also should be ready to adopt the business metrics as their own for a mutually beneficial sustainable alliance. But for the front end – with open banking making build, test, deploy new products and services extremely easy and fast more partners not only helps spread the footprint and also improves the digital experience by many notches. Similarly ability to quickly onboard many Fintechs having expertise on some particular emerging technology also avoids long gestation of development cycle.
At the end of it, the organisation that aligns itself completely to the new changed realities of the digital world wins rather than just tip toeing into it. As Charles Darwin observed – “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change”
Rajnish Khare is a senior Banking Professional, having 20 years of experience with HDFC Bank, Citibank, Standard Chartered, Reliance Retail and ICICI Bank. He is currently, Head Digital Transformation, Social Business & New Media and Mobility Banking and is responsible for Digital, Social, UI/UX, API Banking & Mobility Strategy for HDFC bank and inculcating Innovation as a culture & using innovation as a strategic differentiator to gain leadership position in chosen markets. Earlier, he was Chief Innovation Officer for Citibank and prior to that Head - Remote Banking. Digital Payments & Business Innovations, at Standard Chartered Bank, a leading UK based Bank with strong presence in Asia.