In this article about how robots are moving up to take on both menial paperwork and complex data analysis, Alejandro González and Pedro Fernández-Olano, authors of the Arthur D. Little report "Defining the Digital Organization," are quoted as saying they do not foresee widespread use of robotics in banking in the short term, particularly in corporate banking, which often requires more complex interactions with customers. But they recognize that sophisticated software algorithms-or software robots, for that matter-doing more of the grunt work on the back end could be useful. "Banks would be able to do things more efficiently and not lose money in irrelevant customer marketing campaigns," says Gonzalez.
Digital transformation has changed the world. The ubiquity of the Internet and the extremely rapid expansion of increasingly versatile smartphones have disrupted the way consumers interact with several industries. From entertainment to the car industry, almost no sector of the economy has been left out of the digitalization wave. Financial services are not an exception. The way customers interact with banks and insurance companies has changed: according to Eurostat and The Financial Brand, as much as 40% of banking customers in the EU are active online banking users. That number rises to 61% in the US. We expect this number to rise to 83%-89% in the EU by 2020. In this article, Alejandro Gonzalez and Pedro Fernández from Arthur D. Little, examine how financial institutions can implement technologically-inspired strategies.
Even though Big Data is a new frontier and there is widespread excitement about masteringand executing something new, it is important to base any new investments in skills andtechnology on a strong business context. In this article, Lokesh Dadhich and Shinichi Akayama of Arthur D. Little, discuss why Telcos should aim to build upon small successes and then gradually roll out Big Data initiatives organization-wide.
Recent cases in which we have participated have shown that the organization of digital efforts is a key and controversial aspect of every digital transformation. Channels, clients, IT and other departments often think that digitalization is their natural field of play, and that they must keep ownership of the process. Traditional channels, product areas and other "business-as-usual" departments sometimes see digitalization as more of a threat than an opportunity, and their lack of involvement and commitment is a real danger to the outcome of the transformation. In this article, Alejandro Gonzalez and Pedro Fernández of Arthur D. Little, explain why becoming digital centric is a must.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint: ‘Telecom operators: Open Innovation with start-ups.’ As disruptions rock the corporate world, Open Innovation has taken off, yet for telecom operators difficulties remain finding, scaling and sustaining valuable relations. Telcos need to show their hand to start-ups in terms of pitching what they can offer, from piloting fast-paced ideas to scale development. For collaboration relationships to be successful however, a good fit needs to be found in the initial meeting – requiring clear strategic planning, governance and internal processes and resources from telcos for any future collaboration with a good fitting start-up.
High-profile mobile money launches by Apple and Samsung have recently joined the ranks of companies offering mostly wealthy owners of expensive smartphones the ability to pay for goods with a swipe of their handsets. But while this will undoubtedly help the use of mobile payments to spread, the reality remains that the mobile phone as a means of payment remains relatively niche even in developed markets. In this article, Julien Duvaud-Schelnast, manager at Arthur D. Little, is quoted saying mobile banking is still in its infancy. He expects the market to expand into new areas such as direct debit payments, and he adds that more than half of smartphone users in the US used mobile banking services in 2014. So far, however, he says mobile is mostly acting as a complementary channel for basic activities, such as balance checks, rather than providing the main route of access to banking activities. In terms of providing access to a full range of banking services, it seems that mobile still has a long way to go.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Mobile Payment.’ Mobile payment has been on the agenda of numerous players across industries for more than a decade. Now, with Apple Pay and Google Wallet launched and the markets equipping themselves, mobile payment may finally take off. Is this the turning point in developed markets? In this article, Julien Duvaud-Schelnast, Manager at Arthur D. Little, provides his view on the theme.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Mobile Payment.’ Mobile payments have taken off on a global scale, accounting for a total of $285 billion (€252bn) in 2014 and representing seven percent of global electronic transactions. Arthur D. Little expects these figures to continue growing at a fast pace, exceeding $800 billion (€706bn) by 2017. Mobile network operators (MNOs) have been active in the mobile payment space for over a decade, but with limited success in developed markets. They are now facing an ever-decreasing window of opportunity as other players seek to bypass them.
This online feature discusses Arthur D. Little’s new ‘Open Innovation with Start-Ups’ report which suggests operators should give greater consideration to partnering with startup companies rather than procuring their services. The report suggests that rather than acting as gate-keeper to services, operators should openly collaborate with startup companies and allow those taken on board to develop their own internal capabilities, which will in turn benefit from the “scale and scope” of telcos. Karim Taga, Global Practice Leader of ADL’s Technology, Information, Media, and Electronics Practice, is quoted as saying “Many large global telecommunications providers are crying out for a fundamental re-set of their innovation efforts and capacity. As counter-intuitive as it sounds, some of the world’s biggest telcos will see their innovation efforts bear more fruit by opening up their R&D models, embracing fast-moving start-ups, and actively engaging with potential partners at every level in the global supply chain.”
This article discusses how multiple Internet of Things devices in smart cities pose a potential security nightmare. But who is responsible for security in a smart city? Usually it is the government or local authority, but that is changing, says Ansgar Schlautmann, Associate Director at Arthur D. Little. He explains, “Smart cities involve an ecosystem of suppliers, including operators. A good example of a telco playing a major role is Valencia, where Telefonica is the main contractor. We see telcos are actively looking at running smart cities. We suggested to one of the telcos we supported that it act as a general contractor and find the IT companies and vendors.”