new business models - dell technologies us€¦ · new business models the financial services...
TRANSCRIPT
New BusinessModels
October 2018 | 38
New Business Models
The financial services industry is being disrupted like no other and the days of traditional banking are over. With brand giants like Apple, Amazon, Google and Facebook all making moves in the finance industry, incumbents are having to rethink their business models in order to compete with huge consumer bases, highly agile and scalable platforms and strong brand loyalty. If traditional players remain pureplay commodity, they are at risk of losing the customer relationship to tech giants who have the capability to provide banking-as-a-service.
Financial institutions are now leveraging digital and emerging technologies to create new business models, exploring how they can get closer to the client and own the relationship. In many cases, this may mean entering strategic partnerships, or even creating their own fintech.
October 2018 | 39
Dell Technologies company, Pivotal, works with financial institutions to assist across the customer journey – from idea concept to creation. Pivotal support clients in streamlining the entire journey of an idea – ensuring the best ideas get to market in the most efficient and effective manner. Pivotal focus on helping financial institutions become software companies that create the world’s leading consumer-led products.
The Pivotal methodology includes the following steps:
1. Concept to Creation Labs– User-centric Design– Iterative Development– Continuous Improvement
2. Accelerate speed-to-market
The emergence of fintech, open banking, and digital payments is forcing financialinstitutions to rethink their business in order to thrive in a disruptive economy
New Business Models
New Business Models
Pivotal Labs is the concept of creating balanced teams across product design, development and management. Focusing on user-centric design, iterative development and continuous improvement, Pivotal’s knowledge sharing culture enables financial institutions to create world-class software-drive products.
- User-Centric DesignAllocating time to creative thinking encourages new ideas andinnovation. These sessions focus on customer journey mapping toexplore the many different ways customers may interact with a clients’ brand. This is then built in to the design process to ensure products and services are relevant to customers. Pivotal work with clients to identify the business outcomes and business case up front.
- Iterative DevelopmentPivotal help financial institutions transform their business by cultivating new ways of working to drive and support continuous innovation. Pivotal encourages knowledge transfer and creative collaboration which increases productivity, driving results and ultimately a better customer experience.
- Continuous improvementReduce the risk of building the wrong thing while comfortablychanging direction. Create a Minimal Viable Product (MVP) to entice and test on early adopters. Data gathered on initial user experience will provide valuable insights to feed into the development process for continuous innovation to ensure clients get the best experience.
October 2018 | 40
Pivotal Cloud Foundry (PCF) is an open source cloud applicationplatform. PCF enables large enterprises to innovate at start-up speeds by providing developer frameworks, application services and cloud mobility. PCF allows financial institutions to rapidly create and deliver highly functional software, giving them a competitive advantage. Reducing developer time spent on admin tasks allows developers to work on what’s most important – great code.
The following sections outline the above methodologies, services and products in more detail.
1. Concept to Creation - Pivotal Labs 2. Accelerate Speed-to-Market
New Business Models
88%
New Business Models
October 2018 | 41
of financial institutions believebusiness is at risk to innovators(PwC, 2017)3
64%instances when customers would switch from one brand to another due to lack of relevance(Accenture, 2018)4
82%expect to increase fintechpartnerships in the next threeto five years(PwC, 2017)3
89%of high performers believe that their business needs a"much more iterative, dynamic, agile approach to doing business compared to three years ago".(Accenture, 2018)5
New Business Models
October 2018 |
New Business Models
The Pivotal approach unifies development, design, and productmanagement to create high-value products. In addition to strategicbusiness advice and planning, Pivotal Labs practitioners workalongside financial institutions to enable them with expertise inthese three key areas:
2. Iterative Development Building working software at a consistent speedand quality in the face of changing requirements.The practice of short iterations encourages a‘fail-fast’ culture great for innovation.
3. Continuous ImprovementReduce the risk of building the wrong thing while comfortably changing direction. Make data-driven decisions by creating Minimum Viable Products, lean experiments and identifying and testing assumptions.
1. User-Centric DesignUser-centric design ensures software solves a real problemby creating a desirable and usable product. User interviews,ethnographic studies, persona definition and prototypecreation leads to industry-leading products.
Pivotal
October 2018 |
New Business Models
Practice test-driven development, pair programming, short development cycles, and continuous verification and integration of code. How Pivotal Labs works:For more information:Webpage: https://bit.ly/2QUeOQg
1. Stand-upEach workday begins with a brief team stand-up meeting to discuss what you did yesterday, and what you plan to do today.
2. PlanTeam memberscollaborate to clarify itemsand ensure consistency
3. IterationThe product manageroversees prioritisation, whileprototypes are managed bythe designer. Throughout,user research eliminatesunnecessary features.
4. RetrospectiveThe team meets weeklyto decompress, identifyissues, and discuss areasfor improvement, leadingto iterative improvement.
5. Test-drivenWrite tests that assert theapplication can do what wewant it to do. A piece of codeor functionality isn’t done untilit passes the test.
6. PairingPair two developers to worktogether at the same computerto complete each task. As pairsrotate, knowledge is spreadrapidly through the team,avoiding silos of knowledgeand allowing for team growth.
2. Accelerate Speed-to-Market
October 2018 | 44
Dell Technologies company, Pivotal, enable financial institutions to move fast and innovate quickly to deploy new services and create new business models. By focusing on the below four key areas, Pivotal provide digital transformation solutions to financial institutions to drive innovation and growth.
The financial services industry is moving faster toward a softwaredriven future. To differentiate their business, financial institutions are having to write more software than ever before. In most cases, this is very new to traditional players, who historically haven’t been software developers. In addition, tolerance for downtime is plummeting, and security has never been more important. Under this backdrop, financial institutions are evaluating ways to stay competitive and grow their digital business in order to stay relevant. Pivotal Cloud Foundry (PCF) is a cloud platform engineered to deliver a single software platform to run an enterprise capable of scaling to support hundreds of IT teams
and thousands of applications. PCF allows financial institutions tocontinuously deliver any app to every major private and public cloud with a single platform. By focusing on four key areas of Developer Productivity, Operator Efficiency, Comprehensive Security and High Availability, PCF enables financial institutions to streamline their software development processes, increase time-to-market, secure the business and enhance customer experience.
New Business Models
Pivotal focuses on the below four key areasto deliver business outcomes:
October 2018 | 45
New Business Models
Developer Productivity
Accelerate feature delivery Use PCF’s portfolio of modern runtimes to deliver features faster.
Comprehensive Security
Reduce risk in your appportfolioProtect systems from attackersusing Pivotal’s Rs of security:repair, repave and rotate.
Operator Efficiency
Enjoy a 200:1 developer tooperator ratioDesigned for zero-downtimedeployments. Run on every major private and public cloud.
High Availability
Deliver enterprise SLAs at scaleRely on built-in high availability to keep customer-facing systems online under even the most challenging circumstances.
Focusing on those four key areas deliversthe following business outcomes:
1. Improved speed Faster cycle time, more frequent deployments.
2. Improved scaleMore requests per second to apps and services.
3. Improved stabilityGreater uptime of customer-facing service.
4. Improved security Achieving 100% patch coverage.
5. Improved savings Lower cost per unit of deployed compute.
For more information: Video: https://bit.ly/2odq79oVideo: https://bit.ly/2xzceHp
Digital Transformation UseCases in Financial Services
October 2018 | 46
Pivotal provide digital transformation solutions to financial institutions to drive innovation and growthThe following outline a number of primary use cases:
1: Mobile bankingExtend payment solutions and interactivity to mobile to improvecustomer experiences and employee workflows. Keep financial system infrastructure competitive by delivering an agile environment for rapid, cloud-native application development. Enable digital connectivity with user-centric design.
2: Trading and transactionsGain greater visibility into market risk. Enable same-day tradeprocessing and transaction data ingestion with advancedanalytics. Govern the lifecycle of trading applications with a cloudnative platform that accelerates software development withoutcompromising operations.
3: Compliance and process automationRevise compliance and governance infrastructure faster to meetregulatory standards. Re-architect compliance workflows andprovide greater advantage with an innovative, agile and real-timecomputational platform. Automate and digitise repetitive, low-valueprocesses. Enable straight-through processing to boost productivity.
4: Personalised sales and marketingEnhance user experiences by improving your team’s developmentprocesses with paired programming and agile software development. Use a cloud-native platform to deliver more target mobile advertisements based on location, generating new revenue streams.
5: Risk, fraud and security managementRely on advanced analytics to enable credit risk stress testing, conduct market risk and exposure analysis, as well as aggregate risk position reporting across departments and timezones. Detect anomalies faster with real-time data analysis.
New Business Models
Transforming a 200+ year-old Bank into a Fintech
October 2018 | 47
With financial startups cropping up in every corner of the world, no big bank can afford not to innovate. Citi recognised a need to change the way they do business. In order to thrive in a disruptive economy, Citi decided to join the disruption. To truly scale the new skills, tools and mindsets, needed to act like a startup Citi needed a radical new team, Citi FinTech, to lead the way and mould Citi into the bank of the future. Citi enlisted Pivotal to foster a knowledge sharing culture, create an agile development team and ultimately enable Citi to react to consumer demands and remain competitive against new disruptive entrants.
Brad Miller, Head of Global Digital & Cloud Technology at Citi, leads the team pioneering the next phase of Citi’s consumer banking mobile, tablet, and internet products and the underlying platforms. He is responsible for executing Citi’s next-generation platform and cloud vision through the delivery of digital products and services supporting Citi’s FinTech, credit card and retail bank units. Miller recognised you can’t move fast at a company with a big, interdependent platform; business agility is achieved by teams that are empowered to plan, build, ship, and run their applications or services all by themselves. But you don’t get there overnight, this takes time and dedication to ensure the right cultural shift.
Putting engineers in close proximity to other members of the organisation emboldened Miller and his team, which he describes as “super excited to be able to unleash their own potential on building software the way in which they’ve dreamed”. A big part of beginning to innovate requires trust and cooperation, which Miller says Citi is achieving by merging the planning and development processes: “The development team is working with the business, as one cohesive unit that is incentivised on a week-by-week, sprint-by-sprint, release-by release cadence to own everything end-to-end internally and drive that autonomy to that team.
Results:
Created a fintech within a large historically traditional bank
End-to-end ownership of projects
Agile development culture
Highly productive developer teams
Our charter isn’t just to make ourselves successful but to build the templates that enable other teams inside Citi, to be able to pick up the learnings and accelerate their growth so that we can help everybody be successful and provide our customers the best experiences, as fast as possible."
Brad Miller,Head of Global Digital and Cloud Technology,Citi
New Business Models
Mitigate Risk of Losing Out to Competitionwith New Business Models
October 2018 | 48
Scotiabank is a 185 year old bank offering personal and commercial banking, wealth management, private banking, corporate and investment banking and capital markets through a global team of 90,000 bankers. When it came to competing in an ever-more-disruptive industry, Scotiabank recognised the need to transform their business.
The bank was challenged with a number of obstacles that was slowing down their time-to-market. Developers were unable to reuse code, release processes could take from days to weeks, and too many people were involved. Teams were optimised for organisational hierarchy. Infrastructure had lengthily provisioning times and this all equated to time, complexity, and increased cost.
To overcome these obstacles and mitigate risk of losing out tocompetition due to delayed time-to-market, Scotiabank set up a product software company within the business. They focused on hiring a new team of 60 to deliver their vision of being an API driven bank. In order to create this vision of an API-driven bank, Scotiabank needed a platform that developers loved, that was simple, secure, reliable and compliant for a bank.
Scotiabank had five requirements: 1. Go to production in 4 months 2. Enable daily code releases 3. Be secure and compliant for a bank 4. Scale to 100s of developers in multiple geographies 5. Run on cloud and integrate with legacy systems
Solution:Scotiabank leveraged Pivotal’s cloud platform, Pivotal CloudFoundry, to run applications and their banking-as-a-service layer.
1. Allows developers to reuse code, providing the stability to change services and deploy those changes in near real-time
2. Gives access to instant infrastructure3. Provides a standardised way for loggings and metrics4. Provides highly available applications5. Allows for blue/green deployments during business
Results after just 10 months on the platform:
29 different teams on the platform
21 are in production in four different countries
3000 deploys in a month
New Business Models
Digital Transformationof a Large Global Bank
October 2018 | 49
Focused on digital investment and productivity improvements,automation and operations, simplifying software development and IT Infrastructure, and reshaping global function, this Bank engaged Pivotal to help execute a number of programmes to help them achieve their strategic priorities.
Leveraging both public and private cloud environments, they needed a cloud platform that would enable a common developer experience and across multiple clouds and true cloud mobility. The Bank's digital transformation activities included mobile and global Internet banking live, digital assistants, trade transaction trackers, e-FX platforms, and payments apps all running on Pivotal Cloud Foundry.
Results:
Faster time-to-value. Hours instead of months.
Thousands of builds per week. From 9000 to 11000 builds a week, making sure applications are being tested and delivered to production more often.
Delivering value quickly and more often Around 50 deployments to production a week.
Resilient and scalable platform. Scale applications in seconds instead of months.
Getting applications to customers faster including investment apps, global Internet banking apps, and mobile banking apps with over 1 million downloads.
Zero downtime. Upgrades to the platform and to applications without disruption to the users.
No infrastructure provisioning. Developers can focus on writing good software, not on infrastructure.
Modernisation to reduce costs over $500k reduction in overall operating server costs for one app team.
New Business Models
October 2018 | 130
Contact uswww.delltechnologies.com
@DellTech
Dayne Turbitt
https://bit.ly/2xGgo0p
Margarete McGrath
https://bit.ly/2NGJdUq
Glenn Mallon
https://bit.ly/2ImiXZA
Craig Reid
https://bit.ly/2N7n0d0
