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1、The ResetAccelerating the business value of technology in Financial ServicesContents03|About this paper04|Executive Summary06|Part 1:Modern technology platforms and the value at stake 12|Part 2:Pitfalls on the road to success 15|Part 3:Three ways to extract value faster from modern technology platfo
2、rms 28|Conclusion About this paperBoston Consulting Group(BCG)and Salesforce have collaborated to explore how modern technologyplatformscanhelpthefinancialservicesindustryunlocksignificantvalue,acceleratetransformationoutcomes,anddelivergreaterexperiences for customers.Whilethevalueatstakeissignific
3、ant,successfultransformation through technology is not guaranteed.Drawing on insights from other successfulendeavours,thispaperexploreshowfinancialinstitutionscanrealisethetruevalueofcontemporarytechnologyplatforms.Itidentifiesthecommonpitfallsthatfinancialinstitutionsexperience,whichcanleadtolowerv
4、aluecreation,increased costs and longer delivery timelines.It also reveals how industry trailblazers have:increased their odds of success when implementingnewtechnologyplatforms,acceleratedvaluecreation,and used technology as a catalyst for wider transformation.Thefindingsofthispaperareunderpinnedby
5、quantitativeandqualitativeresearch,includingsurvey responses from across all levels of the financialserviceslandscape.Thepaperalsoincludesinsightsfromsixkeyindustryleaders,complementedby experience from Salesforce and BCG.The paper comprises three parts:Part 1 explores the value that a modern techno
6、logy platform can unlockforfinancialinstitutions.Part 2 dissects the common pitfalls that prevent organisations unlocking the enduring value of a modern technology platform.Part 3-defines three ways to extract value faster,that ultimately enables technology to become a catalyst for transformation ou
7、tcomes.This section includes insights from pioneering organisations that are leading a new wave of success.THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES4Ourfindingsshareinsightsfromsuccessfulendeavours,andrevealthreewaysthatthefinancialservicesindustrycanacceleratevalue from te
8、chnology:1.Orchestrate around the customer and clarify the value creation path.Ourresearchshowsthatover30%offinancialinstitutions embarking on a transformation lose sight of the end point during delivery2.This highlights the need for a new approach to technology transformation one that combines long
9、-term strategic planning with clear incremental delivery.A use-case driven approach bridges strategyintopracticaldeliverybydefiningclearoutcomes and the associated implications ontechnology,people,process,andgovernance.Byapplyingause-casedrivenapproach,financialinstitutions can prove out the value o
10、f technology investments,andscalewithcertainty.AndrewIrvine,GroupExecutiveforBusinessandPrivateBankingatNAB,highlightshowthisapproach has helped drive a key program of work:“When we built our business banker platform,we focused on value creation from day one.Time was of the essence;we wanted to deli
11、ver ease and simplicity to bankers and customers quickly.Any system improvements had to be delivered at pace and in stages.Perfection and years to deliver was not an option.”-Andrew Irvine,Group Executive for Business and Private Banking at NABExecutive summaryFinancial institutions are facing unpre
12、cedented headwinds from post-pandemic impacts,to inflation,skills shortages,and industry competition.Further,thepre-pandemicthreatsand opportunities that initiated transformation effortsincreasedconsumerexpectations,digitaldisruption,regulatoryscrutinyandpressureonrevenue and cost performance have o
13、nly accelerated.Asaresult,transformationeffortsneedtodelivergreaterbusinessvalue,faster.Topursuetheirtransformationambitions,financialinstitutionshaveturnedtotechnology,data,andAI solutions.These solutions can reduce business costs over the long term.They can also enhance employee and customer satis
14、faction and drive revenue growth.Modern technology platforms also offerfinancialinstitutionstheabilitytodeliveroncompliancerequirements,whilecreatingsignificantvalue.Whilethevalueatstakeisapparent,realisationoftenremainselusive.Manyorganisationsattempting to implement new technology platforms get ca
15、ught in common pitfalls between strategy and operational execution.These include a lack of clarity around transformation objectives;insufficientbusinessinvolvement;poorunderstanding of how the technology can support them;and a focus on short-term improvements in a fast-changing environment.BCG data
16、highlights thatonly42%offinancialservicesorganisationsmeet or exceed their expected value creation from transformationefforts1.Clearly,thereisroomforcontinued improvement.1.BCG Analysis Transformation Check Survey 2022.2.BCG Analysis Transformation Check Survey 2022.BOSTON CONSULTING GROUP x SALESFO
17、RCE52.Empower the organisation and liberate the technology and data.The rise of low-code/no-code(LC/NC)solutions is creating a new wave of productivity and speed benefits.Thesesolutionshelpfinancialinstitutionsto take advantage of technology and data at scale by placing control into the hands of the
18、 organisation.Itisprojectedthatby2025,70%ofnew applications will be developed using LC/NC solutions,enablingfivetosixtimesfasterdeliveryspeeds and time to market3.To realise this potentialvalue,organisationsneedto:grow base-level technology knowledge across thebusiness,use out-of-the-box features th
19、at can be configuredandmaintainedeasily,and choose tech platforms that support LC/NC natively.“We standardised the development of our forms and focused on enabling clickable change that could be owned long-term by our business units.Rather than making technology the gatekeepers of change,we lifted t
20、he skill set,made technology a true enabler and the business a true owner.”-Jon Pascoe,Head of Transformation Client Services at AMP3.Design for change and invest to sustain.Projectswhichsuccessfullyharnessthebenefitsof a technology platform are largely underpinned bychangemanagement.Inourexperience
21、,dataand technology generally represent just 30%of the solution required to unlock value.The other 70%isachievedthroughnon-technicalaspectssuch as redesigning end-to-end processes and policies,cultivatingtherightskillsandcapabilitiesand redesigning the operating setup.Financial institutions need to
22、take a holistic approach to funding.By adopting a product-basedfundingmodel,theycanprovideongoinginvestment and achieve maximum value from the platform.3.Gartner,MagicQuadrantforEnterpriseLow-codeApplicationPlatforms,2021.Notethatthisfigureisglobal.THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINF
23、INANCIALSERVICES6PART 1Modern technology platforms and the value at stake Tomeettheirtransformationambitions,financialservicesorganisationshaveturnedtotechnology,data,andAIsolutions.Successfullyharnessingthesesolutionsislikelytoreducecosts,increaserevenue,and increase employee and customer satisfact
24、ion.Moderntechnologyplatformscanunlocksignificantvalueacrossorganisations,whileenablingnewtable-stake requirements around compliance.BOSTON CONSULTING GROUP x SALESFORCE7Inourexperience,technologyplatformsdeliverbenefitsinatleastsixways:Unlock new waves ofvalue creationDrive operational efficiency E
25、nable compliance at scaleAccelerate innovation Support strategic partnering and ecosystem developmentMeet and exceed customer expectations 125364THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES81.Unlock new waves of value creation Moderntechnologyplatformscanhelpfinancialinstituti
26、onsmeetrisingcustomerexpectations,drivetop-linegrowth,andsignificantlyreducecosts.Simultaneously,theplatformenablestheinstitution to develop a deeper understanding of customer needs and even anticipate them exceeding expectations and building stronger customer relationships.Our research shows that w
27、henfinancialinstitutionsleveragemoderntechnologyplatforms,itiseasierforthemtoaggregatedata,deriveinsightsandbuilda360-degree view of the customer.4 These actions can generate a 20-30%increase in customer retention and satisfaction.5 Meeting the customer imperativeultimatelyfuelstop-linegrowth,withsu
28、ccessfulorganisationsreportinganupliftof10%or more in revenue.62.Drive operational efficiency Deployedcorrectly,amoderntechnologyplatformcandrivesignificantoperationalefficiencyacrossthevaluechainbyreducingmarginsuppression,decreasing process cycle times and orchestrating resources intelligently.Str
29、eamlining and automating processes also leads to further operational improvements.Based on BCG case experience,financialinstitutionsthatautomateunderwriting processes see above-average mortgageandlendingprocessingtimes,andreduce their costs by 20-25%.7 Technologyplatformsalsodriveefficiencyforfinanc
30、ialinstitutionswhentheyconnectdisparateprocessesacrossproductlines,customercohortsandbetweenfrontandbackoffices.Improvingandintegrating processes end-to-end and front-to-back across multiple products shortens process cycle times and reduces manual handling.Modern digital platforms can also be used t
31、o reimagine account opening and onboarding journeys at mid-large regional banks with low Net Promoter Scores(NPS)and complex processes.Our experience shows that these improvements can deliver a 3-5%increase in account revenue for new customers,andreducetheoverallcostofprocessesby15-20%.Wealsofindtha
32、tfinancialinstitutionsthat use digitisation can integrate and improve exchange to exchange(e2e)processes to deliver 95%+straight-through processing(STP)for simpleproducts,80%+STPforcomplexproducts,and 80%+first-time-rightforkeyprocesses.820-30%increase in customer retention and satisfactionLeveragin
33、g modern technology platforms=4.Salesforce FY22 Customer Success Metrics.5.Salesforce FY22 Customer Success Metrics.6.Salesforce FY22 Customer Success Metrics.7.BCGanalysis.8.BCG analysis.BOSTON CONSULTING GROUP x SALESFORCE93.Accelerate innovation Financial institutions can also use modern technolo
34、gy platforms to commoditise aspects of innovation,enablingthemtokeepupwithindustrydisruptorscost-effectively.Withtherighttechnologyplatform,anorganisationcanaccesshundreds of new features each year.While not every feature will be relevant for a particular organisation,beingabletocost-effectivelyconf
35、igureaprovenfeaturecanreduceanorganisationsinnovationanddevelopmentcosts,acceleratetimetomarket,andkeeppacewithaconstantly evolving industry.Modern technology platformscanfuelincrementalimprovements,allowing organisations to redeploy talent behind strategic imperatives.4.Meet and exceed customer exp
36、ectations Whenorchestratedcorrectly,amoderntechnologyplatformcanunlockastrategicinnovationloop,allowing organisations to experiment at scale and take greater risks on potential opportunities for example,byprovidingthemwiththeabilitytobuildnewdigitalproductsforspecificcustomercohorts.They can use cus
37、tomer datasets to understand and predictcustomerneeds,generatenewideasandrapidly develop experiments to prove value.With aflexibletechnologyplatformunderpinningtheinnovationloop,organisationscandeliverrepeatedimpact using a common platform.Organisations canreducethecostofinitiatives,andmovefromstrat
38、egicinceptiontoimplementationfaster,allowingfinancialinstitutionstorespondtomarketshiftsandcustomerneedsfasterandmorecost-effectively.THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES105.Enable compliance at scaleFinancial institutions are required to adhere to increasing levels of
39、 regulatory compliance.Many takeafragmentedapproach,whichresultsinhigh-cost investments in technology and operational design that solve discrete regulatory issues(such ascomplaintsmanagement),butwhichfailtorealisethebenefitsofaunifiedrelationshipacrossthe full journey.Modern platforms can integrate
40、a range of systems toprovideacomprehensive,unifiedviewofthecustomerandtheirhistorywiththeirfinancialservice provider.By focusing on a platform approachtoregulatorycompliance,financialinstitutions can meet and accelerate-their regulatory compliance reporting while building a holistic view of their cu
41、stomer base.A platform approach to compliance will increase work upfrontcomparedtoaquickbolt-onsolution,buttheongoingbenefitsfaroutweighthisinvestmentbysettingupfinancialinstitutionswithamoreagile,comprehensiveresponsetocurrentandfutureregulations,whilereducingcostandrisksandimprovingcustomer,employ
42、eeandpartner experiences.BOSTON CONSULTING GROUP x SALESFORCE116.Support strategic partnering and ecosystem developmentA modern technology platform is interoperable and can easily connect into the extended digital ecosystem.Thisallowsfinancialinstitutionstopursue a variety of partnership models.Incu
43、mbent financialinstitutionscanpartnerwithsmaller,nicheproviderssuchasfintechorinsurtechthatfocusonspecificsegmentsofthemarkettojointlydevelopa tailored customer experience.This gives organisations lower-cost access to a broader customerbase,andaccesstocustomerdatathatcansupportportfoliomanagement,ri
44、skmanagement,andinternalinnovation.Additionally,inalow-profitabilityenvironmentwhereconsumerpreferenceschangerapidly,anopenecosystemallowsfinancialinstitutionstoscale rapidly to meet the evolving needs of customerswithoutsignificantinvestment.Throughanopenecosystem,financialinstitutionscanprovidemor
45、eoftheseservices,gainingthisrevenue and future customer wallet share.Usingmoderntechnologyplatforms,financialinstitutions can foster collaboration and partnershipsinanecosystem,withmultiplepartnerengagement options already well established:Improvingoperationalefficiencyandreducingcosts by acquiring
46、or upgrading internal capabilitiesthroughclient-vendorrelationships,white labelling solutions or integrating digital platforms with partners Improving revenue from existing products and customers,andgeneratingnewrevenuestreams by extending the reach of new products tonewsegmentsandmarkets,launchingn
47、ewproductsandservices,orbuildingfintechecosystems.Modelsincludewhitelabelling,integratingplatforms,referrals,APIpartnershipsand co-creation Identifying and validating new digital opportunities by conducting early cross-industry demand testing of new products and technology or participating in tech e
48、ducation and ideation to spot new opportunities through capital investment,incubationorindustrygroupmembership.THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES12Pitfalls on the road to success The value of transformation through technologyisapparent.However,formanyorganisations,re
49、alisationremainselusive.BCGdatarevealsthatonly42%offinancialinstitutions meet or exceed their expected valuefromtransformationefforts.9 More than half of companies undergoing transformationeffortsfailduetoinflexibilityandlimitationsoftheirunderlying technology.There is clearly room for improvement.P
50、ART 29.BCGanalysis,TransformationCheckSurvey2022.42%of financial institutions exceed their expected value from transformation effortsBOSTON CONSULTING GROUP x SALESFORCE13Lack of clarity on the customer and case for changeLackofclarityaboutthecustomerimperative,thecaseforchange,andtherolethattechnol
51、ogyplayscanleadtomisguidedandconflictingtransformation investments.When initiatives are driven purely to enhance products or services but notlinkeddirectlytothecustomerneed,financialinstitutions risk trying to solve problems that dontexist.Similarly,iftheyfocusondigitalsolutions that improve the cus
52、tomer experience butarenotexplicitlylinkedtobusinessvalue,customersatisfactioncanincrease,butatanunsustainable cost and great burden to the organisation.For technology transformation to be successful,itmustbedrivenbyaunifiedcaseforchange and tie both the customer experience and organisationalbenefit
53、stogether(e.g.,automationand driving cost out).Misalignment between risk and investment appetiteMisalignment between ambition and risk appetite canleadtounfulfilledexpectationsandgoals.Formanyfinancialinstitutions,pasteffortstoaddressunderlying technology issues have delivered low valueandsignifican
54、tcostandtimeoverruns.Theseexperiences have become cautionary tales that drive disproportionate negativity around an organisationsabilitytodelivertransformations,thus creating a risk-averse culture.Boards can further reinforce this culture of risk aversion if they are hesitant to place substantive in
55、vestment and funding behind technology and organisational changeprograms,basedonnegativepastexperiences and industry tales.This lack of sustainedfundingseestransformationeffortstreatedasaseriesofdefinedinitiativeswithanexplicitendpoint,ratherthananongoingprogramthatevolves,withaninvestmentthatfluctu
56、atestomeet the challenges and value at stake.25 common pitfalls1Most organisations that attempt to transform their business through modern technology platforms experience common pitfalls throughout the process from the strategic planning phase right up to operationalexecution.Uponexamination,themost
57、common reasons for failure lie in the execution and not in the technology itself.Drawing on BCG case experience and research and extensive interviews withindustryleaders,weidentified5 common pitfalls for financial institutions when delivering technology-led transformations:THERESETACCELERATINGTHEBUS
58、INESSVALUEOFTECHNOLOGYINFINANCIALSERVICES14Lack of coordination and emphasis on changeTechnology,digitalandtransformationeffortsareoftendisparateandsiloed,resultinginincrementalismandduplicatedeffortsandinvestments.Despite establishing transformationofficesandmanagementfunctions,financialinstitution
59、smaycontinuetodeliverprojectsthataredrivenbyspecificbusiness unit requirements.This can result in isolatedsolutionsthatfailtoscale,becomecost-effectiveandprovideanorganisational-wide advantage.Inadditiontolackofcoordination,technologytransformation programs disproportionately emphasise getting the t
60、echnical solution right.Theychannelmostinvestmentandeffortintostandinguptherighttechnicalsolution,ratherthan solving for the surrounding organisational change to operationalise a new platform.As a result,thereisinsufficientsupportandcapabilityto fully utilise the platform and extract its value.5Poor
61、 measurement and management of transformationMeasuring the impact and returns delivered from technology investment has been historically difficulttoquantify.Financialinstitutionshavestruggled to measure the impact that transformationprogramshaveontheorganisation,particularly the value created from t
62、echnology initiatives.Thisisoftenduetoalackofset-upandtracking of clear KPIs from the outset;but also becauseitisdifficulttomeasuretechnologysimpactonitself,becauseitisanenablerofotheroutcomes.This inability to measure success leads to challenges in the scoping and complexity of initiatives,overruns
63、incostandtime,andalossof faith in the value of technology programs.3Prioritising renovation over revolutionA risk-averse culture and quarterly pressures canleadfinancialinstitutionstoprioritisenear-term value.They may invest in technologythatisincremental,designedtodelivershort-termgoals,andfailstos
64、upportlong-term transformation ambitions.Inaddition,thecostsofmaintainingtechnology and increased operational demands take away from discretionary and project-based technology spending.These cost pressures can limit the scope of transformationalchangetosmaller,short-terminitiativesthatprioritisespot
65、fixesand do not revolutionise the underlying technology.By prioritising these short-term incrementalchanges,financialinstitutionsdiminish the value from technology investment and slow progress towards transformativegoals.Inworstcasescenarios,a strong emphasis on short-term incremental changes can cu
66、mulatively build up technology debt that adds to the cost and complexity of operations.This approach hinders the ability to move beyond legacy technology something that requires a transformative leap.4BOSTON CONSULTING GROUP x SALESFORCE15PART 3Three ways to extract value faster from modern technolo
67、gy platformsContemporary technology platforms represent significantvalueandcanactasacatalystfortransformation.Our research and insights from successful endeavours indicate three ways for organisations to accelerate value creation from modern technology platforms.THERESETACCELERATINGTHEBUSINESSVALUEO
68、FTECHNOLOGYINFINANCIALSERVICES161.Orchestrate around the customer and clarify the value creation pathA use case describes the application of technology and data in the context of a business and or customer outcome.In a financial services context,a use case could be the delivery of a personalised onb
69、oarding experience for banking customers.Ourresearchshowsthatover30%offinancialinstitutions embarking on a transformation lose sight of the end point during delivery.10Clearly,analternative approach to technology transformation is needed one that combines long-term strategic planning with clear incr
70、emental delivery.Wesuggestause-casedrivenapproach,whichbridgesstrategyintopracticaldeliverybydefiningclearoutcomesandtheimplicationsontechnology,people,process,andgovernance.Our research reveals 3 ways to accelerate value creation through a modern technology platform1A use case driven approach bridg
71、es strategy into practical delivery across technology,operations and governance Application of a use case driven approach allows FIs to prove out value rapidly and scale with certainty2310.BCGanalysis,TransformationCheckSurvey2022.Orchestrate around the customer and clarify the value creation pathEm
72、power the organisation,liberate the technology and dataDesign for change and invest to sustainBOSTON CONSULTING GROUP x SALESFORCE17Digital Day OneREVENUEGROWTHCOSTTAKE OUTPlatform Features/ComplexityRapiddeploymentof POC/MVPAt ScaledeploymentValue creationprocess12 mo3 mo$6 mo9 mo24 mo36 moFigure 1
73、A use-case driven approach allows incremental delivery that builds towards a clear outcome(see Figure 1)for the customer and the organisationovertime.Itprovidesfinancialinstitutionswithsignificantadvantages:stronger control over investment and cost the ability to pivot work based on market shifts,an
74、d increased traceability from strategy through to execution.Importantly,ause-casedrivenapproachplacesownership with the business rather than technology,ensuringvaluecreationremainsatthe forefront of execution.By focusing on use cases,organisationscanprovevaluerapidlyandthen scale with certainty.Orga
75、nisations that use a use-case driven approach can get to market twice as fast as those that dont.They also achievea50%reductionindevelopmentcosts,and create twice as much value.11 A use case driven approach focuses on incremental value creation,cost out and outcome delivery from day one and has sign
76、ificant advantages over more traditional cascading approaches to tech deliveryFaster time to market 2xIncrease in value creation2xReduction in cost50%11.BCG analysisTHERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES18WHYWHATHOWBusiness Strategy,e.g.Digital use cases driving valueTec
77、hnology platformsOrganisationand peopleGovernanceInnovation agendaICustomer experienceIIMarket expansionIIIModernise tech IVESG and compliance VProduct development&InnovationSupply ChainManufacturingSales,Distribution&MarketingToadoptause-casedrivenapproach,financialinstitutions need to start with a
78、 clear case for change and end point.Our research shows that this can double the chance of transformation success when done correctly.To set up the initiative for success,organisationsneedtostartwithaclearview of the customer and employee outcomes that they want to deliver and understand the value a
79、t stake.Theyshouldviewtheentire,end-to-endvaluestream and then work backward to orchestrate the organisationsprocess,capabilities,andtechnology.Withaclearstrategyset,itcanthenbebrokendown to identify the underpinning technology and data outcomes required to deliver the overarching strategicambition.
80、Eachusecaseneedstohaveaclearlinkbacktovalue,andanunderstandingofthe technical feasibility and any change implications.This allows the organisation to form a view on what is required in a minimum viable product(MVP)to deliver value today while setting the foundations for realising value at scale.Figu
81、re 2FIs need a new approach to technology transformation that combines long-term strategic planning with clear incremental deliveryA use case is the application of technology and data in the context of a business outcomeBOSTON CONSULTING GROUP x SALESFORCE19Withadesiretoliftthestandardofcustomerexpe
82、rience and enable bankers to be more effective,NABdefinedaseriesofusecasesthatarticulatethecustomerandbankerrequirements,thefunctionalityneeded,andthevalueatstake.Theseinputswereprioritised,allowingtheteamtoidentifythefirstwaveofusecasesthatwoulddeliver genuine utility to bankers and customers.The t
83、eam landed on four key uses cases:predictiveneeds-basedleads,predictiveretentionmanagement,consolidatedviewofcustomerinteractions,andnotificationsforservicingcalls.Overthenextsixmonths,theteamleveragedtheSalesforce platform to deliver on three of the four usecases,combiningover300disparatedatapoints
84、intoasinglesourceoftruth,creatingsharper customer insights and next-best-action advice to bankers.The banker platform at NAB was rolled out in a pilotphaseandembeddedintotheworkflowfora third of bankers across the business bank.This approach provided the team with the opportunitytogatherfeedbackearl
85、y.Notably,thepilothighlightedtheculturalshiftandchangemanagement required to scale the platform successfully,“Youcanhavethebesttechnologyintheworld,butitisgoingtobeuselessifbankersdontuseit,”saysAndrewIrvine.ThepilotallowedtheteamatNABtonotonlyrefineNAB:Enablingbankerstodelivera better experience fo
86、r customers“When we built our business banker platform,we focused on value creation from day one.Time was of the essence;we wanted to deliver ease and simplicity to bankers and customers quickly.Any system improvements had to be delivered at pace and in stages.Perfection and years to deliver was not
87、 an option.”-Andrew Irvine.AndrewIrvine,GroupExecutiveforBusinessandPrivateBankingatNAB,andhisteamdeveloped a business banker platform that fosters a deeper relationship between customers and bankers.Andrewtellsus,“Itssimple;wewanttomake it easier for our bankers to get closer to ourcustomers.”Forba
88、nkers,remaininginformedonthecustomers needs is rarely simple.Before developingthebusinessbankerplatform,eachbanker would have to work across multiple systems,oftenwithincompletedatasets,toforma view on the best action to take with a customer.This highly labour-intensive process led to increasedrisk,
89、missedopportunities,highercosts,and an inconsistent customer experience.19THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES20thetechnicalsolution,butalsoimplementsufficientchangemanagementtodriveadoptionand success.Now12monthsfrominception,NABisrollingoutthe platform across the ent
90、ire business bank and seeing results;the platform has enabled higher conversionrates,lowerportfoliorisk,andamoreproductiveworkforce.“Withthisplatforminplace,we can know when a customer is facing stress or lookingforsupportwithanewopportunity,andourbankerscansupportmoreproactively,”saysAndrew Irvine.
91、The NAB journey showcases the value of a use-case driven approach.The experience at NAB highlights how technology can be rapidly and iterativelydeployedatlowercost,andlessrisk,all while delivering greater value to both the organisation and its customers.2.Empowertheorganisationandliberate the techno
92、logy and dataThe rise of low-code/no-code(LC/NC)solutions is creating a new wave of productivity and speed benefitsfororganisations.Itallowsfinancialinstitutions to take advantage of technology and dataatscale,byplacingcontrolintotheirhands.Itisprojectedthatby2025,70%ofnewapplications developed by e
93、nterprises will be completedusingLC/NCsolutions,12enablingfiveto six times faster delivery and time to market.EarlyadoptersleveragingsimpleLC/NCsolutionshavealreadyseenmodestreturns,withcostreductions of about$5-8 million.13 To realise this potentialvalue,organisationsneedtogrowtheirbase-level techn
94、ology knowledge across the business,useout-the-boxfeaturesthatcanbeconfiguredandmaintainedeasily,andchoosetechnology platforms that support LC/NC natively.12.Gartner,MagicQuadrantforEnterpriseLow-codeApplicationPlatforms,2021.13.BCG case experience.BOSTON CONSULTING GROUP x SALESFORCE21Toliftitsbase
95、leveloftechnicalknowledge,anorganisation needs to start with a culture of learning and upskilling.Organisations that dont understand a platforms out-of-the-box capabilities and features oftenendupmakinglargeinvestmentsthatrealiselimitedvalueandaddtechnicaldebt.Toooften,the disconnect between busines
96、s outcomes and technical functionality leads to a high degree of customisation,orintheworstscenario,thepurchase of a platform that is fundamentally not fitforpurpose.Business units and technology teams need to get closer to the technology and understand the realm of possibilities a platform can prov
97、ide.Closing this gap starts with taking advantage of training and learning content provided by leading technology platformproviders.Forexample,Salesforceprovidea free online learning platform and community called Trailhead to teach the public how to use and leverage its platform.Accessing this sort
98、of training can accelerate value in an organisation by democratising knowledge and delivery capability.The scale and potential that this training can provide toafinancialinstitutioncanbeprofound.Forexample,20,000staffmembersatSouthAfricasStandard have attained Ranger Status the highest learningranko
99、nTrailhead.Suchtraining,combinedwith proactive partnering with vendors to provide upskilling,allowsfinancialinstitutionstoliftskillsand knowledge across their organisations.Putting technology into the hands of business units requiresashiftinmindset.Organisationsneedtoembrace out-the-box features and
100、 avoid the not invented here syndrome.The misconceptions that technologymustbespecificallybuilttoanorganisationsspecificrequirementsandthatexistingsolutionsdeliverlowervalue,oftenleadstolarge-scale,costly,andlengthycustomisationprograms.Modern technology platforms are continuously evolvingtomeetthen
101、eedsoffinancialinstitutions.Forexample,eachyear,Salesforcereleaseshundredsofnewandtestedfeatures,basedontheplatformsbest innovations around the globe that can be readily Figure 3Foster enterprise learning and upskilling Avoid“not built here”syndrome and customisation goals Embrace out-the-box featur
102、esBuild with the intention to change THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES22deployed.Thesefeaturesallowfinancialinstitutionstobenefitfrominnovationwithprovenvalue,acleardeploymentpathandoverall,lessrisk.Atthesametime,whilemanytechfeaturescanbedeployedout-the-box,organis
103、ationsneedtoavoidablanket approach and remain selective.They should focus on using out-of-the-box features in areas with lowstrategicvalue,wheretheoutcomeishighlycommoditised.Adoptingconfigurationandclicksover customisation and code sets up the organisation to deliver outcomes faster and at a fracti
104、on of the costofcustomisedsolutions.Inaddition,usingout-the-boxfeaturesreducesdevelopmenteffort,freeingcapacityacrosstheorganisationtofocusonstrategic,high-value initiatives.Out-of-the-box technology is simpler to maintain than customised solutions because it allows users to makelow-code/no-code(LC/
105、NC),clickablechange.Businessuserscantakecontrolandownership,making changes to respond faster to customer and marketshifts.WhiletheadoptionandsupportofLC/NCsystemsisstillemerging,therearealreadyahostof examples where it is being deployed from workflowmanagementtoroboticprocessautomation.LC/NCallowsus
106、erswithlimited,orno,coding ability to design and manage technology solutions.This results in a lower burden for technology teams who can reclaim and redirect capacity,tohighervalueinitiativesthatdrivedifferentiationandcompetitiveadvantage.BOSTON CONSULTING GROUP x SALESFORCE23AMP:Unlocking technolog
107、y at scale JonPascoe,HeadofTransformation,ClientServicesandLesterChua,HeadofTechnology,DigitalandCustomerChannelsatAMP,successfullytransformedkey customer interactions by leveraging out-of-the-box features that required business units to take charge of the technology solution.AMP had invested in sev
108、eral technology platforms across the organisation that were yet to be fully utilised.To truly transform the customer experience while remainingcosteffective,theteamsetouttodelivertechnologymoresustainably.“Wecouldbuildsolutions,butbecauseeverythingwascode,thecostto maintain and change the solution w
109、as almost as muchasthebuild,whichdidntreallymakeusaleanerbusiness,”Jonsays.The business needed to transform hundreds of paper forms in a standardised manner.The team absorbed themselves in understanding how they could provide a standardised and low-code option to the business units.The team at AMP u
110、nderstood that while the out-of-the-box solutions might not be state-of-the-art orbespoke,thestandardsetupwithsomeconfigurationwouldprovideanoutcomeaboveindustry standard and enable simpler and cost-effectivechangeinthefuture.“Westandardisedthedevelopment of our forms and focused on enabling clickab
111、le change that could be owned long-term by ourbusinessunits,”Lestersays.Jon and Lester see this approach as core to continuous improvement.With the ability to make changesdirectly,businessownerscouldnowtest,learn,anditerateindependently.Byleveraging out-of-the-boxfeatures,AMPcouldharnessupgradesandi
112、nnovationatafractionofthecost,thereby outsourcing aspects of the innovation imperative.“Ratherthantrytokeepinnovatingoncommoditiseddigitalcomponents,wecanrelyonvendorstodothehardwork,andweleveragethebenefitsatlesscostandrisk,”saysJon.TheAMPteamteamprojectsignificantcostsavingsoverthenextfiveyearsand
113、areductioninIT maintenance and change hours of 60%.This will allow the organisation to focus on true innovation and developing a competitive edge.The AMP journey highlights the value LC/NC standstocreateintheindustry.However,this new-wave technology requires organisations to leavelargebespokecustomb
114、uildsbehind,andadopt more modular and easier to maintain technology platforms.“Rather than making technology the gatekeepers of change,we lifted the skill set,made technology a true enabler and the business a true owner.”THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES24Successful
115、lyharnessingthebenefitsoftechnologywithin an organisation relies on appropriate change management.Inourexperience,dataandtechnologyoftenrepresentsonly30%ofthesolutionrequiredtounlockvalue.Theremaining70%comesfrom the non-technical aspects such as redesigning back-endprocessesandpolicies,cultivatings
116、killsandcapabilitieswithinoperationalteams,andredesigningtheoperatingsetup.Often,organisations miss out on realising full value by failingtoconsiderthepathtosufficientlydrivetechnology adoption.Inourexperience,therearefourkeystosuccessfullydriving the organisational change required to embed the valu
117、e of technology.3.Design for change and invest to sustainFigure 44 keys to successfully drive org change required to embed and capture tech value1324Cross-functional teaming spanning across the organisationEnsuring leadership own the change process Enable sustained funding models to extract full val
118、ue of investments Connectingfront end improvements through to back-end changeBOSTON CONSULTING GROUP x SALESFORCE251.Connect front-end outcomes to back-end changeOrganisations can create systemic change that captures the value generated from technology programs with a holistic approach that connects
119、 back-end processes and operations with front-end customer,employeeandorganisationaloutcomes.BCGs front-to-back digitisation approach helps orchestratethischange,byorganisingarounddistinct value streams.Value streams are vehicles forchange,andaredefinedbytheirintendedoutcome such as shortening and s
120、implifying homeloanapplicationprocesses,orimprovingthe customer onboarding experience.By organisingtechnologyaroundavaluestream,financialinstitutionscanconsolidatedigitisationinitiatives,formintegratedcross-functionaldesignanddeliveryteams,andsufficientlydriveoperational change.2.Cross functional te
121、aming spanning across the organisationGettingthe70%rightrequiresawhole-businessapproachtobuildingthesolution.Frominception,businessowners,end-usersandtechnologyteamsneedtoremaininlockstep.Establishingacross-functional team that brings together the right mix of skills and perspectives ensures not onl
122、y a well-rounded technical solution but also clarity on the process and operating changes.DataAlgorithms,models and data TechnologyTechnology platformsEmbed technology in business processesChanging the way people workEst.new governance and operating setup Business process design,enable-ment&change m
123、anagement20%10%70%Figure 5THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES263.Ensuring leadership owns the changeTomanagechangeeffectivelyanddriveadoption,organisations need to garner genuine support from leadership.Our research shows that by clearly definingtargetbehavioursforlea
124、ders,organisations can double their chances of successfully deploying a digital initiative.14 Organisations need to prepare and incentivise leaders to drive and own change.They also need to ensure early and frequent two-way interactions with leaders.This creates transparency and builds a forum to ga
125、in buy-in.It also fosters a sense of ownership and responsibility and provides leaders with clarity on the role they play in the overall success of the transformation program.4.Enabling sustained funding modelsTosustaintransformationeffortsandensurevaluecreationremainsontrack,financialinstitutions m
126、ust take a holistic approach towards investment and measure success beyond the bottom line.They must also recognise that unlocking the full value of a technology platform requires targeted and sustained investment.Theyshouldembraceproduct-basedfunding,ratherthan funding based on time and requirement
127、s.This approachprovidesteamswithstable,perpetualfunding to deliver new platform features and improveexistingones,managetechnicaldebt,and adjust processes as required.Product-based funding fosters greater autonomy and ownership over the end-to-end product lifecycle.Atthesametime,itallowsforgreaterdom
128、ainknowledge.Ashifttoproduct-basedfundingmeansthat costing will live on with the technology and supportmaintenance,improvements,andscalefor the platform.Adoptingproduct-basedfundingrequiresashiftinhow organisations evaluate and measure success;inotherwords,progressismeasuredintermsofbusinessoutcomes
129、achieved,ratherthantechnicalaccomplishments.Organisations can only extract optimal value from the platform by providing ongoingfundingtosupportit,anddevelopingteams skills and capabilities to use it.As the outcomesdecrease,theorganisationcanreallocatefunding,butsomefundingshouldbeallocatedtosupport
130、the platform throughout its full lifetime.14.BCGanalysis,TransformationCheckSurvey2022.BOSTON CONSULTING GROUP x SALESFORCE27 APAC Financial Services Provider:Reimaging the end-to-end customer experienceAlargefinancialinstitutionwithoperationsacrossAsiaPacifichasbeenonajourneytoreimaginetheend-to-en
131、dcustomerexperience,whiledrivingoperationalefficiencyacrossitscorefunctions.Leveraging BCGs front-to-back digitisation approach,theorganisationdevelopedanumberofkey-valuestreams,includingcreditcardjourney,customerrelationshipmanagement,digitalmarketingmulti-platformintegration,lendingrelatedcustomer
132、onboardingandservicingjourney,KnowYourCustomer(KYC),underwritingandcross-selljourneytonameafew.Eachofthesevaluestreams has a clear set of customer and or internal outcomes,across-functionaldeliveryteam,andownership from senior leaders.Startingwithitshomeloanlendingexperience,thisfinancialinstitution
133、setouttoreducecustomereffortandfrictionthroughouttheapplicationandlending process.Their aim was to decrease the time to yes to hours rather than days.To enable thisvision,theorganisationwouldneedtosignificantlyimproveitsbackendprocessesandworkflow,reduceitsmanualprocessing,buildingauto-approval func
134、tions and consolidate key technology platforms.Overthenextthreemonths,theteamdefinedthelong-termcustomerexperiencevision,theunderlying process changes and technology requirements.The team was also tasked with reshapingprocesses,policy,organisationalstructure and technology around customer outcomes.T
135、his holistic approach resulted in quick wins,suchasa2030%reductioninformlength,which was achieved by realigning requirements for credit processing.The approach has also createdmoresubstantialchange,suchasautomatedcrediting,andanewcustomermanagement platform.This level of change required buy-in and a
136、lignment from multiple stakeholders and teams.To move effectively,theorganisationassembledacross-functional team with skills across the value stream.This resulted in faster and more informed decision-making,andachangeinprocess.Asaresult,technology that would have taken months to solve could now be r
137、esolved in a matter of hours.Sinceitsinception,theorganisationhasscaledthefront-to-backprogramacrossthebusiness,withKYC,creditcardsandunderwritingprogramscurrentlyrunning.Homeloansarenowfirmlyinthedeliveryphase,withtheteamworkingtodeliver:digital data and ID capture automated decisioning paperless p
138、rocessing simplifiedcreditandriskprofiling digital signing.Thankstotheseimprovements,theorganisationison track to deliver a one-day turnaround on home loan decisioning.THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES28 Conclusion Inaworldofuncertainty,onethingissurenewtechnologies
139、 and business models will continue to disruptthefinancialservicessector.Tokeeppacewiththischangingenvironment,market-leadingfinancialservicesfirmsarefocusedoncapturingthe full value of their new technology investments while constantly transforming their processes to deliver exceptional customer expe
140、riences.Successfulfirmshavebroadenedtheirfocusfromseeingtechnologyasthesolution,todefiningthebusiness processes that the technology is ultimately designed to support.They seek to embedtechnologyinbusinessprocesses,ratherthan the other way around.They are also changing the way they work so that their
141、 people and processesaresupportedbythetechnology,ratherthan the technology dictating processes or ways of working.Finally,theymeasureandcapturethetrue value of their investments in technology into tangible business and customer outcomes.Toresetthebalanceinfavourofbusinessvalue,financialinstitutionsm
142、ustchangehowtheyviewa technology transformation.They must dedicate 70%oftheireffortstounderstandingbusinessprocessesandoutcomes,andthetechnologyrequired needed to support them.The remaining 30%oftheireffortsshouldgotowardputtingtheappropriate technology platforms in place.By viewing technology as an
143、 enabler rather than a provider,financialservicesfirmscanunleashthefull power of their technology to delight customers and unlock greater value for the business.BOSTON CONSULTING GROUP x SALESFORCE29Authors James Sattler is the Australian and New Zealand leader for the Financial Institutions practic
144、e at Boston Consulting Group.He is also a core member of BCGs Technology and DigitalAdvantagepractice.AtBCG,hehasdeveloped deep expertise in supporting bankingandinsuranceclientsandoffersabroadfunctionalskillset,includingcorporatestrategy,salesforceeffectiveness,operations,informationtechnology(incl
145、udingdigital),and large-scale transformation.He has consultedwithclientsacrosstheUK,WesternEurope,andtheAsia-Pacificregion.Contact:Sattler.James Claus Helbing leads BCG Platinion for BostonConsultingGroupintheAsiaPacificregion(Australia/NewZealand,China,Japan,IndiaandSoutheastAsia).Heisaleader of BC
146、Gs Technology and Digital Advantage practice and a core member of the Financial Institutions practice.Claus specialises in large-scale transformation projects,aswellasthedefinitionofinnovative IT Operating Models and digital technologies.He brings deep sector experience,workingtosupportbankingandins
147、urance clients for more than 20 years acrossEuropeandtheAsiaPacificRegion.Contact:Helbing.CGayan Benedict is Salesforces Vice President of Customer Advisory and Chief TechnologyOfficerforAustraliaandNewZealand.Gayan specialises in digital transformation,innovation,securityandtechnology strategy.Befo
148、re joining Salesforce in2021,GayanwastheChiefInformationOfficerattheReserveBankofAustralia(RBA).DuringhistimeattheRBA,Gayanledprojectssuch as modernising the RBAs core banking platforms,deliveringnationalreal-timepayments infrastructure and developing policy support around emerging technologies in A
149、ustraliasfinancialsystem.PriortotheRBA,GayanheldleadershippositionsatWestpacandTravelex,andheldIT roles at Oracle Corporation.He is also a post-doctoral research fellow at UTS.Contact:gbenedict Michelle Tea is Salesforces Vice-President of FinancialServices,SalesforceANZ.Michelleleads the day-to-day
150、 operations of Salesforces FinancialServicesdepartment,overseeingitsgo-to-market strategy and management of key financialservicesclients.Michelle has more than 25 years experience intheICTindustry,mostrecentlyasMicrosoftsDirectorofDigitalStrategy.Sheispassionate about using technology to solve compl
151、ex industry and business problems.Contact:Shreya Sethi is a Senior Director and Head of FinancialServices,BusinessValueServicesatSalesforce.Shreya leads the ANZ Financial ServicesPractice,partofSalesforcesStrategicAdvisory team in Australia and New Zealand.Asadigitaltransformationexpert,Shreyaworks
152、with CXOs in the industry to create sustainedbusinessvaluethroughtechnology,innovation and value-led partnerships.Shreya is also the Global President of Salesforceslargestemployeeresourcegroup,the Salesforce Womens Network.Before joiningSalesforce,ShreyawasaconsultantwithMcKinsey&Co,workingacrossFin
153、ancialServices and private equity practice.Contact:shreya.sethi Ross Seeger is the Director of Business ValueServices,SalesforceANZ.Rossoverseesinsuranceenterpriseengagements,whereheguides top-tier businesses through digital transformations that deliver maximum return on investment.He excels in driv
154、ing impact at scale,solvingbigproblemsandhelpingSalesforcecustomersbecomesimpler,moreagile,andcompletelycustomercentric.Ross has an extensive track-record leading some of APACs leading brands to enhance andrebuildtheirproductvalue,technologysuperiority and brand equity.Before joining Salesforce,Ross
155、heldleadershippositionsatIAG and Globalinks.Contact:Ash Rana is a Principal in Product Management for Boston Consulting Group.He is a leader of BCGs Product Management practiceacrosstheAsiaPacificregion,andacore member of the Technology and Digital AdvantagepracticeandBCGPlatinion.Ash,specialises in
156、 supporting organisations to combine customer-centric approaches to drive business outcomes and build competitive advantage.Ash has a particular focusonhelpingclientstodefineandbuilddigital products and services.He has worked to support a number of banking and insurance clients across the Asia Pacif
157、icregion.Contact:Rana.Ash BOSTON CONSULTING GROUP x SALESFORCE29 THE RESETACCELERATING THE BUSINESS VALUE OF TECHNOLOGY IN FINANCIAL SERVICES30Theauthorsaregratefulfortheinsight,research,andexpertsupport from our many BCG and Salesforce colleagues.The authors are also grateful for the insights and s
158、upport of several industryleaders,includingAndrewIrvine,RafCinaglia,JonPascoe,LesterChua,AndrewWalker,andJamesOrchard.Inaddition,aspecialmentiontoBiankaDemets,PaoloAloi,SaschaAmbrose,RishiMalhotra,ErenaHanayama,ElizaSpring,AnnaLeonedas,LouiseMcCabe,KatiePickford,SeamusHoran,LukeFlanagan,DanWong,Raym
159、ondFung,andDesignStudiosANZ.AcknowledgementsForinformationorpermissiontoreprint,pleasecontactBCG.TofindthelatestBCGcontentandregistertoreceivee-alertsonthistopicorothers,.Follow Boston Consulting Group on Facebook and Twitter.Boston Consulting Group 2022.All rights reserved.BOSTON CONSULTING GROUP x
160、 SALESFORCE31SalesforceisthegloballeaderinCRM,bringingcompanies and customers together in the digital age.Foundedin1999,Salesforceenablescompanies of every size and industry to take advantageofpowerfultechnologiescloud,mobile,social,voice,andartificialintelligenceto connect to their customers in a w
161、hole new way.Companies trust Salesforce to help them transform their businesses around the customer in this digital-firstworld.Salesforce Customer 360 is our vision for how we help customers with their digital transformations.WithCustomer360,everyteamsales,service,marketing,commerce,andbeyondcanhave
162、asingle,sharedviewoftheircustomersonanintegrated CRM platform powered by AI.This single source of truth enables employees to worktogethertobuildlasting,trustedrelationshipsanddelivertheintelligent,personalisedexperiences their customers expect.Salesforce is committed to a set of core valuestrust,cus
163、tomersuccess,innovation,equalityandsustainability.Salesforce is one of the leaders on FortunesChangetheWorldlist,andhasbeenoneofFortunes100BestCompaniestoWorkFor,fortwelve years in a row.Salesforce is headquartered inSanFranciscowithover77,000employeesglobally.In Australia and New Zealand there are
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167、lping our clients thrive and enabling them to make the world a better place.Visit BOSTON CONSULTING GROUP x SALESFORCE31THERESETACCELERATINGTHEBUSINESSVALUEOFTECHNOLOGYINFINANCIALSERVICES32Disclaimer The purpose of this report is to provide general and preliminaryinformation,anditscontentsshouldnotb
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