January 10, 2018 | Written by: Sanjay Rishi
Categorized: Banking | Cloud
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Business model innovation only just begins once you’re on the cloud—and the leading global banks are already making the move and are now exploiting cloud for innovation – and while they do that, they are having to rethink their operating models. In this episode of the Boardroom Advisory Series, we look at how transformation is no longer about the technology—it’s about the shift in how organizations do business. Watch the preview here:
In the full episode, we look at how moving to the cloud is transforming operating models to improve customer retention, open new revenue streams, and position incumbent, global banks as the disruptors in their own industry. IT professionals at financial institutions are under tremendous pressure to adopt and make the most of technologies like cloud, IoT, cognitive computing. But their real responsibility isn’t to invest in and deploy new technologies, it’s to support initiatives that transform business processes and business models, and that potentially alters the very future of the organization.
Boards at global financial institutions can no longer look at transformation as an IT problem because it’s now an enterprise imperative. One example I mention in the episode is a client who has seen an increase of customer retention between 10 to 12%. This increase can be attributed to their move to the cloud. By taking advantage of faster development times, better access to their own, secured data, and cleaner application integrations, customers saw improved service. The bank became the disruptor, not the disrupted.
To get there, architecture must be built with a holistic, enterprise approach. It requires participation from both IT and business leaders to rethink the operating model. Cloud adoption brings in new challenges – skills, governance, and processes that have to be transformed to deliver the promise of technological capabilities. Watch the full episode to see how IBM is helping Boards facilitate those conversations and accelerate results of their transformation initiatives.
Watch the full individual video here, and the full Boardroom Advisory series here.