gartner - the nexus of forces

8/21/2019 Gartner - The Nexus of Forces

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GARTNER CONSULTING

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is forthe sole use of the intended Gartner audience or other authorized recipients. This presentation may containinformation that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner point of viewBart Mellink – 6 June 2013

The Nexus of Forces



© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.Copying,distribution or public displaying prohibited without the express written permission of Gartner

1

Disruptive Technology is about technology changes that have a―Transformational Impact on products, services and processes‖

The

Internet

E-Commerce“.COM buble”

Mobile

DataMobile

Phones

Social

Media

1990’s

2000

2010

2013

2011

PC

Cloud

Big Data

Information

Consumerazation

Mobility

Digital

Enterprise

AppDisruptive Technology

timeline

Introduction




2

Context: CIO priorities for 2012 – Enhancing the Customer Experience

The biggest value proposition is not in the individual priorities, but is realized at the Nexus of theseemerging and disruptive technologies such as Cloud, Mobility, Big Data (business intelligence and

data management) and Social Business.

Introduction




3

…want to connect to…

• share experiences

• find answers

• engage withthe community

…want to be mobile…

• using devices of

their choosing• staying connected

with people

• being able to switcheasily between workand non-work

…want a seamless

experience to…

• access anythingfrom anywhere

• use multiple devices

(and apps), sometimessimultaneously

• blend work and non-workactivities

… consume andgenerate information

• Ubiquitous accessto info and apps

• Contextually relevantinfo to augment their

activities• Don‘t care how it

works, only that it does.

The Nexus of Forces: People …

Introduction

Digital Enterprise




4

Key questions around disruptive technologies related to financial services

Disruptive

Technology

Impact and key questions

Cloud • Should we use cloud services for our computing infrastructure?• How can we leverage cloud services to reduce costs and increaseagility while ensuring compliance with security and regulations?

• Which Cloud based financial services become available on the marketand how should we react?

Mobility • How do we support ―bring your own device‖ in our environment?• How do we address the need for mobile applications?• Do we have to build our own internal App store?

Big Data/Information

• How do we improve our data quality?• Which data (internal and external) should we analyze to improve ourrisk analysis, business performance, CRM and planning?

Social • How will our products and brand be perceived by our (potential)customers that rely on information shared through social networks?

DigitalEnterprise

• How to leverage innovative technologies such as Social, Big Data and Analytics to increase customer engagement, sales and services?

Introduction



5© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.Copying,distribution or public displaying prohibited without the express written permission of Gartner

Cloud




6

Agility

Less Complexity

More Focus

Self Service

Innovation

Cost

Expectations

Gartner defines cloud as "a style of computing where scalable and elastic IT-enabledcapabilities are provided 'as a service' to external customers using Internet Technologies."

Security

Assurance

Lock-in

Integration

Financial

Transparency

Expectations and Concerns are Both Evolving

Cloud




7

Slicing the Cloud Vertically:Cloud Service Layers continue to evolve

Providers are developingofferings across multiple

segments, making marketsegments increasinglyinterconnected

Film Forecaster

System Infrastructure Services

Business Proc. Serv.

Information Services

Application Services

App. Infrastructure Services

M g m t . a n d S e c u r i t y

Cloud Enablement

CloudService Broker

(CSB)*

PaaS

SaaS BPaaS

C l o u d B r o k e r a g e

IaaS

Cloud




8

Cloud deployment models: Private to Public

Virtual

Private CloudHybrid

Enterprise A Enterprise A

E n t e r p r i s e A

E n t e r p r i s e B

E n t e r p r i s e A

E n t e r p r i s e B

C o m p a n y X

U s e r Z

Closed Private Open Public

Community

Public Cloud

Public

Cloud

Managed

Private Cloud

Enterprise A

Enterprise

Private Cloud

Owner Enterprise Enterprise Provider Provider Provider

Operator Enterprise Provider Provider Provider Provider

ServiceAccess

Closed(enterprise)

Closed(enterprise)

Closed(enterprise)

Closed group(community)

Open

Level ofControl Full High High Low None

Points ofLeverage

Skills (none) Assets (none)

Skills (strong) Assets (none)

Skills (strong) Assets (medium)

Skills (strong) Assets (strong)

Skills (strong) Assets (strong)

Cloud




9

Let's buy some Cloud Service — Are you still in control?

The Old Way The New Way

Press the

I Accept

button

Conduct an RFI process

followed by an RFP

process that, after six

months, results in a 1,000-

page service contract,with 50 clauses and 20

attachments, that is then

reviewed and signed off

by the sourcing, IT,

finance, procurementand legal departments.

Cloud




10

Service Layer Clustering - Potential Alternatives to mix Sourcing and CloudWho is responsible for the overall IT Architecture?

SolutionDesign

ApplicationDevelopment

ApplicationEnhancement

ApplicationMaintenance &

Support

Middleware &DB admin

ApplicationOperations

Infrastructure

management

DC Facility

HW Platform

ExtendedInfra

ServicesITO

AMS

ITO

InfraServices

ITO

Extended AMS ITO

Infra UtilityService(IUS)

ITOperations

ITO

AMS ITO

HostedData

Center &Equipment

ITO

IT Ops

ITO

Extended AMS ITO

Business

Process Mgmt Retained + Staff Augmentation

Retained + Staff Augmentation or Projects

Retained + Project Based Application Development

Traditional (out)sourcing portfolios

ITO = IT Outsourcing AMS = Application Maintenance and Support

PaaS

AMS ITO

SaaS

IaaS

Extended AMS ITO

BPOBPaaS

Retained

Retained

Cloud models

Cloud




Cloud use cases




12

Example SaaS: Google Apps Premier Edition (GAPE)

Cloud




13

Brazilian Órama Internet based Investment Funds provider (for retail clients) fullyleverages a mix of IaaS Amazon Cloud services

Amazon services used:

Elastic Cloud (EC2) - ComputingElastic Load Balancing – Multiple

Availability Zones

Amazon S3 – Storage

Amazon CloudFront – Reduce latency

Amazon RDS – Relational Database

Service Amazon Route 53 – Name service

Amazon CloudWatch - SystemManagement

https://www.orama.com.br

Cloud

Cl d

https://www.orama.com.br/

https://www.orama.com.br/




14

Example SaaS: Ohpen uses the Amazon EC2 ―virtual private cloud‖ as production

deployment platform for multiple front end web sites

Amazon Elastic Cloud (EC2)(Ireland)

Ohpen own(native) offering

Ohpen services as―white label‖ product

Robeco is launching customer

Cloud

Cl d




15

Business and IT Transformation: Usage-based Insurance

15

Pay-as-you-drive Accident coverage for 24

hours for 99 Cent

Cloud




Mobility and Digital Channels

Mobility




17

Key questions around Digital Channels and Mobility: From Inside/Out to Outside/In

Should we develop a ―Bring Your Own Device‖ (BYOD) strategy and how does

such a strategy look like? What are the benefits, costs and risks involved?

How and where will our workforce be situated in the future and what are theimplications for technology, security and application design?

Should we enable our internal business applications for tablets and mobilephones and what is the impact on Application Development, maintenance andoperational processes? Should we create an internal App store?

Which external business functions should be available for our customers and

business partners on mobile devices and how do we manage this?Should we be part of an industry community or establish strategic relationshipsto strengthen our market position in the mobile space?

Which will be our role within the Digital Channel strategy of our key customersand which services should we develop to support this?

INSIDE/OUTFOCUS

OUTSIDE/INFOCUS

Mobility

Mobility




18

How to leverage what is possible today (or coming soon) in your business?

HD Camera• ―Kinnect‖ type gesture sensing • Facial expressions reading and interpretation• 2D to 3D to Holograms to 4D

Micro-electro mechanical systems• Accelerometer• Compass• GPS (not a MEMS)• Gyroscopes• Sensors (i.e. Pressure & Temperature)

Biometric Authentication• Fingerprint

• Vein pattern (in the palm)• Retina scan• Voice authentication• Heartbeat pattern

Information Exchange• Machine sensors (IoT)• NFC• New Bluetooth• Wi-Fi Direct data transfer• Device Pairing with multiple devices

• Information extraction from picture/video• Augmented Reality (visual contextual info)• Location-aware to activity-aware (i.e. smart VM)• Active to Passive Computing Digital Assistants/ Delegated Control

• Proactive recommendations• Appliance/ Machine Control (Chevy‘s digital keys) • Digital Assistant to Digital Assistant communication

• Olfactory sensing (artificial nose)• Kinetic movement (phone can move)• Germ-killing UV light• Solar powered batteries• Wireless battery charging (3 ft. Proximity)• Braille Input/ Display

HD Audio/ Microphone

Other Features

• Voice Authentication• Speech Recognition

Form-Factor Evolution• Common operating systems• Form factor agnostic (mobile cloud)• Holographic projectors (i.e. keyboards)• Wearable/ implants• More computing power (replace desktops)

• 2-sided to multi-sided screens• Foldable/ Bendable screens• Expandable screens• Transparent screens

Next-Gen Display Screens

Mobility

Mobility




19

What may be possible in the future

2012 – 2013: Smartphones and Tablets

Augmented Reali ty

• Get balances by looking at the bank's logo• Mood recognition can improve service• Auto-translation of documents /speech• Voice-control offers hands-free computing

Self-managing devices and sy stems

• Possibly a self-managing ATM or branch• Groceries refilled proactively would require

access to payment methodsInformation exchange

• Capture data for loans directly from cars,houses, etc.

Biometric Authentication

• Heartbeat PatternRemote Control (Gesture based)

• Control any iDevice, even possibly ATMs?

Paymen ts (NFC)• Scan your iWatch at the POS terminalGamification

• Financial related loyalty points similar to f itnessrelated Nike Fuel Points

Implants and Electronic Tattoos

• Microchip lets blind patients see shapes• Microchips provide cashless transactions• E-tattoos may auth and provide access to

‗closed‘ branches in the future True Art i f icial Intel l igence

• Genetic Algorithms AI that can learn andadapt to manage investment accounts

2020

2013 – 2014: Watches and work-out bands 2016 – 2017: Truly smart clothing 2018 – 2019: Bio-Computing/ Cybernetics

2013 – 2016: ―Up-rights‖ like Google Glass 2017 – 2018: The internet of everything

Biometric Authentication

• Voice• FingerprintsInformation Capture and Exchange• Camera (MRDC and photo bill pay)• Wi-Fi Direct and NFC to exchange info

Fabric Keypads for m obile devices

• Another possible form-factor for serviceinteractions

• Payments integrated into fabric whichredefines the POS for clothing purchases

2013

Apple ‗iWatch‘ may launch in 2013 Google‘s talking shoes concept: March 2013 FDA approved microchip implants in 2004

1st gen iphone launched in 2007, ipad in 2010 Google Glass may launch in late 2013/ 2014 Qualcomm‘s Wifi coffee maker concept: Feb‘13

Mobility

Mobility




20

Business and IT Transformation: Real-time Insurance

20

Real-time

underwriting

Travel Insurance

ATM

Mobility

Mobility




21

Gartner Consulting Case Study: Customer, Channel, & Disruptive Technology Trend

Assessment – Tier-1 US Bank

Client and Business ContextOur client is a Tier-1 US Bank with a early adopter strategy onIT technologies. In 2008, the bank acquired a major other bank

and was also effected by the financial crisis (the bank receiveda substantial federal bail-out from the emergency economicstabilization act)

Challenge

Due to the combination of the aftermath of the financialcrises and the integration effort of a major acquisition, theBank felt they were no longer in a front runner positionrelated to their digital and channel strategy

Due to their dependency on the digital channels the bankneeded to identify both a tactical and strategic innovationroadmap

Gartner Approach/DifferentiationGartner used an "Outside-In" approach looking acrossmultiple dimensions:

Demographic Trends

Banking Industry Trends

Macroeconomic Factors

Key business Drivers

Technology Enablers

Client ResultsThe detailed roadmap Gartner created (in March 2013),contains a clear priority mapping. The bank decided toimplement all Gartner recommendations

Banking Industry TrendsKey business Drivers Technology Enablers Priority mapping

Mobility




Social

Social




23

What Is Social CRM?

Understanding the power of communities, the multiple

personas of their members, their expectations, theiraspirations and how to engage with them will becomeessential skills for companies in the 21st century.

Social CRM is a strategy for harnessingcommunities to support customers, aswell as sales, marketing and customerservice organizations, along apurposeful and mutually beneficial

business process.

Social




24

Five Levels of Social Maturity:From Social Media to Social Business

No way,

no how!

It's too

dangerous!

Okay, it's worth

spending some

time organizing

this stuff . . .

There might be

a pony in there

somewhere.

We've got

goals, we've got

metrics, we've

got game!

OMG!

How did we ever

do business any

other way?

Level 1:

Reactive

Level 3:

Emerging

Level 2:

Exploratory

Level 4:

Integrated

Level 5:

Optimizing

Social




25

Emerging community based financial products in Europe: Paypool and Bankeez

Collecting money/ fundraising and donations:

Shared gifts for weddings and anniversaries

Cost sharing of parties and trips

Collecting registration fees, tickets, prizes,funds for (charity) organizations

―Social Savings Account‖

Shared savings account (with real money)

Shared ―goal‖ setting (i.e. trip, present,

charity)

Social media to share progress

Leverages Tunz.com banking license inBelgium

Social




26

Challenging Traditional Business Models: Peer-to-Peer Insurance

Social




27

New Product Development via Crowdsourcing

Customer

innovation

Co-design

Customer

engagement




Big Data / Information

B ki CEO‘ i di t th d f i f ti l t liBig Data / Information




29

Banking CEO‘s indicate the need for more information on regulatory compliance,

customers, the competition and operations

Source: Gartner Research, CEO Survey 2012:

Financial Services CEO Agenda





30

Big Data Initiatives: The three V‘s

Technical

Challenges andOpportunities

Business

Challenges andOpportunities





31

Big Data – New Questions From the Business

Past Future

What

happened?

Why did

it happen?

Reporting,Dashboards

Forensics &Data Mining

What is

happening?

Why is

it happening?

Real-Time Analytics

Real-TimeData Mining

What is likely

to happen?

What should I do

about it?

Predictive Analytics

Prescriptive Analytics





32

Big Data requires Expanding Your Analytic Capabilities

SELECT *FROMcustomersWHERE

companynameLIKE 'a%'

Predictive Analytics

Complex Event Processing

Data and Text MiningRule Engines

Mobile Deployment

Gamification/ContestsScenario Planning

Natural Language Processing

Visualization





34

Social Media plus Information Equals Customers Insight

Gamification

Social Media

AnalysisOwn Social Media

Network




The Nexus of Forces driving the Digital Enterprise

Gartner Point of View




36

The Nexus of Forces

Digital Enterprise

Gartner Point of View




37

Best Practice: Use Pace Layering to drive decision points

Organizations need to create a "layered"application strategy that recognizes that the

business requires several types of applicationswith different governance, funding, anddeployment models

Systems of Record – Established packagedapplications that support core transactionprocessing, i.e. core banking

Systems of Differentiation – Applications that

enable unique company processes or industry-specific capabilities. They have a medium lifecycle (one to three years), but need to bereconfigured frequently to accommodatechanging business practices or customerrequirements, i.e. channels

Systems of Innovation – New applications thatare built on an ad hoc basis to address new

business requirements or opportunities. Theseare typically short life cycle projects (zero to 12months) using departmental or outsideresources and consumergrade technologies

Systems of Innovation

Systems of Differentiation

Systems of Record

Core product factory

Label / commercial offering

Sales channel

Outputmanagement Billing Finance

Productmanagement Reinsurance Risk

management

Underwriting /

Acceptance

ClaimsPolicy

administration

Margin Service

Commercialbundle

Bundleacceptance

Channelmanagement

Clientmanagement Marketing Advice

Sales Support

HighlyFlexible

TightlyControlled



GARTNER CONSULTING

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is forthe sole use of the intended Gartner audience or other authorized recipients. This presentation may containinformation that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.

Contact

Bart MellinkVice PresidentDisruptive Technologies EMEA LeadGartner ConsultingTelephone: +31 [email protected]

gartner - the nexus of forces

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