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Within the banking industry there is on going discussion concerning the hidden opportunities that ‘big data’ can unlock. Many financial institutions are now looking to take advantage of ‘big data’ by transforming themselves into information-led organisations. Organisations that have already begun their transformations are seeing immediate improvements in the quality and speed at which they can make decisions. The whitepaper, ‘Analytics: the widening divide’ identified 3 types of analytics users. These users were grouped as Aspirational (Basic Users), Experienced (moderate Users) or Transformed (sophisticated users). Between the 3 groups it was found that, 80% of Transformed organisations saw competitive advantage derived from analytics, 63% of Experienced analytics users gained competitive advantage from analytics and just 37% of Aspirational users were able to use analytics to build competitive advantage.
While transformation into an information-led organisation can provide vast benefits for your organisation it can often be complex, resulting in many financial service institutions facing difficulties in focusing their efforts. Through our work with global and local financial institutions we have identified 4 key imperatives for consideration in any information-led transformation:
1) Create a customer focused enterprise – It goes without saying that a core objective of all financial institutions should be to deliver an outstanding customer experience. As the saying goes ‘people won’t always remember what you do or say, but they will remember how you made them feel’. Keeping this in mind, how can we ensure customers always leave with a good feeling? Through the use of analytics, institutions can address the needs, wants and demands of not only various market segments but of individual customers. This truly one-to-one marketing approach provides the best possible experience for your customers. This approach is not only more effective in reaching the customer but also decreases the costs associated with marketing and will ultimately leave your customers with that ‘good feeling’.
2) Increase flexibility and streamline operations – An information-led transformation should also encompass the analysis and alignment of business operations, technology & systems architecture. Often I see large organisations with IT systems that are unable to interact and communicate with one another. Alignment gives financial institutions the flexibility needed to succeed in a rapidly changing environment as well as providing advantages through speed to market. This standardisation will drive numerous efficiencies by allowing information to be used and interpreted across and between business units.
Please come back to our blog later in the week when I will be discussing the remaining imperatives for consideration when financial institutions are engaging in an information-led transformation.
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