INSPIRED BY: Neglected, Indebted or Gold-Plated: Which Type of IT Do You Have?
For centuries, the cost of distance has determined where businesses produce and sell, where employers locate jobs and where families choose to live, work, shop and play. What if this cost fell dramatically, thanks to new technologies? How would the global economy change if manufacturers could produce locally in small batches, without incurring excess cost? Would existing business models and supply chains, for instance, suddenly become uncompetitive? If people could work from anywhere, would crowded neighborhoods start to thin out? That change already has begun in the world’s advanced economies and is gathering momentum. Over the next two decades, the cost of distance will decline sharply, according to Bain research, altering the way we live and work—faster than most people expect and more broadly than [...]
Any CIOs who have heard their business executives boasting about “going around IT” should be concerned for their jobs. We hear this sort of thing frequently, particularly from executives who have been talking with technology vendors that promise to solve their analytics problems with new technologies that glean business insights from vast amounts of data. And while it’s true that data and analytics will change the way companies succeed in almost every industry, no company can hope to fully benefit from analytic insights unless they undertake the hard work of building their internal capabilities for managing data and integrating the insights into operations. Most CIOs and other senior IT executives know their organizations are not prepared to make full use of the waves of data [...]
This article originally appeared on FierceCIO.com. When Bain & Company started working on its second "Rebooting IT: What separates digital leaders from the rest" report, the aim was to figure out what leaders were doing right, and what those lagging were doing wrong. Overall, Bain found that digital leaders are willing to put in the time, be strategic and work hard to transform their companies and help them to thrive in the ever-changing digital landscape. According to Vishy Padmanabhan, a partner in Bain's technology group and one of the authors of the report, there was a main question they were looking to answer: "What are these leaders doing from a technology space that allows them to actually differentiate and enable and drive value for them [...]
So many companies are looking toward Big Data to solve all their problems. They think that if they could plug into one of the hundreds of advanced analytics tools out there, they’ll find clear answers about why they’re not growing as fast as they could. But it’s not that simple. The tools and data crunchers are only small parts of a successful advanced analytics strategy. There’s much more involved in using Big Data to steer a company. The ones that do it best identify the right analysis opportunities, design the right processes and hire the right talent. These Big Data overachievers eventually make advanced analytics part of their DNA, and they become the leaders of their industries. That’s why so many companies want to jump [...]
If you were to build an IT organization from scratch today, you would build it very differently from the one you’re working with. You would build an IT organization tuned for speed to market, one that delivers the digital capabilities that customers want: more personalization, greater transparency and convenience and a seamless omnichannel experience. You would build one with a modular architecture that relies extensively on cloud-based delivery models. You would also build tools and processes to analyze vast amounts of data so you could develop effective products and services. Of course, few companies have the luxury of starting from scratch. Instead, almost all large enterprises are working to update their existing IT organizations so they can do far more than they could just five [...]
Customer expectations for banks, wealth management companies and insurers are on the rise. In 2013, more than half of consumer bank interactions around the world took place through online or mobile channels, according to Bain & Company customer surveys. Include ATMs and the share of electronic, digital interactions exceeds 85% today and could hit 95% by 2020. Technology is at the heart of this transformation, and with the right capabilities financial firms can compete against nimble, technologically sophisticated start-ups that are reimagining ways to serve customers’ financial needs. Executives see the opportunity to deliver differentiated customer experiences and “wow” moments—like the ability to deposit checks with a mobile phone camera, remote bill pay or even basic transactions delivered through a good mobile app. And this [...]
Retail executives tell us they need more from their CIOs. Yes, IT needs to keep the online store running and cyberattackers at bay—but that’s table stakes. The retail industry is changing quickly, and what executives need most in a technology partner is someone who understands social, mobile, analytics, cloud (sometimes called SMAC) and all the other technologies spurring rapid change in their industry. They need partners who can help them discover and build new business capabilities that will set them ahead of the competition. Few retailers say they are getting this today from their IT function; until recently, most had not asked for it. Across the industry, CIOs are busy maintaining their decades-old legacy systems while locked in an arms race against increasingly sophisticated cyberattacks [...]