So, I thank McKinsey for this report. Erosion of legacy revenue streams driven by over-the-top The dramatic shift to living and working online has accelerated changes across the entire business landscape, so we’ve compiled a list of must-reads to help business leaders prepare. This collection of articles—gathered from our recent publishing on the theme of financial services technology—is intended to serve as a roadmap for executives tasked with ramping up technology innovation, increasing tech productivity, and modernizing their platforms. So, the wholesale replacement is ridiculous. IT drives digital transformation strategy, but efforts to implement and adapt to changes in the business resulting from digital transformation are a company-wide endeavour. Executives who possess a solid understanding of the basics can ensure they’re making the right investments in their tech stacks and teams to build reliable solutions at scale. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. hereLearn more about cookies, Opens in new Leveraging industrial software stack advancement for digital transformation Industry 4.0 ... 2020 McKinsey EMEA IoT Summit will be held on February 27 - 28, 2020 at. The cloud is revolutionizing how businesses create value, but only when tech organizations, and the business, understand how to use it and change how they operate. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject.. Here’s the intro: Next-gen Technology transformation in Financial Services. Here is a summary of some of their most important advice around this topic: Digital transformation is a … four critical areas can show if insurers are on track. iCrowdNewswire Nov 2, 20208:02 PM ET. Portfolio Transformation. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. cookies, Explore all McKinsey Digital special collections. Never miss an insight. Next-gen Technology transformation in Financial Services. Linda Luu is a consultant and Head of Digital Transformation at ThoughtWorks. The only way to succeed with digital transformation and maximize returns on digital projects and initiatives is to ensure that the organization’s board and leaders are aligned on the definition of digital and are able to articulate that definition in a way that the entire organization can rally around. innovation and disciplined risk management led to strong performance. Contrary to popular belief, digital transformation is less about technology, and more about people. It’s too risky [TSB]. ... McKinsey, Accenture And Everyone Is Right About Digital Life After COVID-19. Get PDF. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Please try again later. It’s inevitable that digital transformation will lead to the composition of the workforce changing over the next few years. Buy Copies. Posted in Productivity; January 28, 2020 WEF Davos 2020: Can Industry 4.0 and Automation Software Transform the World for the Better? up to serve consumers, despite the heightened uncertainty of COVID-19. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. To learn more click, McKinsey on digital transformation in banking (free research), Regulation is meant to strangle innovation, Can we change The System? The majority of company executives report that satisfying a specific business need is the primary catalyst for their digital transformation efforts. As we look ahead, we suggest keeping an eye on the following seven trends: Business model transformation. Please click "Accept" to help us improve its usefulness with additional cookies. We hope this collection is helpful in framing and shaping this journey. Almarai working with McKinsey and SAP on digital transformation 23 November 2020 Consultancy-me.com Founded in 1977 by the two Irish brothers in collaboration with Prince Sultan bin Mohammed bin Saud Al-Kabir (who is currently the chairman of the board), today Almarai is one of the globe’s largest dairy companies. Sorry, we couldn't find any results. - Learn to Leap #12. to evolving customer needs—and the competition. Yes, we can … ish. Ok Learn more about cookies, Opens in new Interview Subscribed to {PRACTICE_NAME} email alerts. The articles are organized into three major themes: The pace of change in financial services technology—as with technology more broadly—leaves very little time for leaders to respond. In particular, I was shockered by the bottom-line on this chart. Please use UP and DOWN arrow keys to review autocomplete results. -. There’s only one choice. Therefore, CIOs and other executives need to accelerate and scale their technology transformation. McKinsey & Company suggests the third step should reflect deep culture changes as long-term transformation need to be “woven into the fabric of an organisation”. Improved organizational agility is at the heart of successful digital transformation. Our short takes on everything from digitization to design, Our short takes on key technology and architecture topics. Digital Transformation: McKinsey’s Take. Failure is the best thing for you - Chris Skinner's blog: […] infographic hit me about Elon Musk’s life. Optimizing the transformation agenda for 2020 and beyond. Improving customer experience and engagement is the top goal fueling digital transformation efforts for more than seven out of 10 organizations. WTF? McKinsey’s Berlin Experience Studio 2.0. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. on Spreaker. While a tumultuous and tragic 2020 will usher in a 2021 fraught with uncertainty, one thing is crystal clear: it will be a distinctly digital year. If yes, do it gradually. That business need begins and ends with the customer. After all, how do you eat an elephant? Share. I thought about it a bit, and realised that you really should not have these three choices. those for traditional software solutions. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject. Do you work for a monkey tree organisation? Save. I know so many banks that have spent billions on core systems change, often  wasted and driven by McKinsey advice. Similarly, if you have an elephant, how do you get rid of it? Based on our research findings, we’ve identified seven key considerations for telcos to keep front of mind as they undertake their journey of digital transformation through 2020 and beyond. Digital 20/20 assesses an organization’s digital and analytics maturity to discover digital opportunities, identify gaps between current capabilities and those of digital leaders, and execute a prioritized road map of high-impact transformation initiatives. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Furthermore, the current COVID-19 situation is putting immense pressure on technology capabilities (e.g., remote working, new cyber-security threats) and requires CIOs to anticipate and prepare for the “next normal” (e.g., accelerated shift to digital channels). to invest in it more in response to COVID-19. Post. Learn about Lohmühlenstraße 65 12435 Berlin Germany. Most transformations fail. Buy another elephant? One example McKinsey pointed to as proof of this is European insurer Axa, which invested €950 million in digital transformation over just two years. We'll email you when new articles are published on this topic. Interview The challenge they face is significant: in a competitive environment of rising cost pressures, where rapid action and response is imperative, financial institutions must modernize their technology function to support expanded digitization of both the front and back ends of their businesses. There is nothing more “core” than competency in this area. The cost of core systems replacement is just $50 to $500 million? Digital upends old models. A related McKinsey report assessed that 79% of companies “are still in the early stages of their technology transformation.” Digital transformation is a process, not an event, and the goals and priorities of the journey are different for every company. Yes, we can … ish […]... Weekly Analysis & Opinion Highlights - 14 December 2020 - Holland FinTech: […] With the BNPL platforms market reaching over US$7billion valuation in... How President Obama solved the financial crisis, The Finanser’s Week: 16th November – 22nd November 2015. In some circles, "digital transformation" as a term was starting to wear out its welcome in 2019. Digital transformation leads to fluid departments, processes and job responsibilities, with soft skills like empathy being in high demand. NHSE/I – support the policy environment and incentivise digital transformation. McKinsey outlines four digital transformation archetypes (the labels are CFO’s): 1. But I looked at this and, as you can see, they have categorised core systems replacement into three buckets: Big Bang change, progressive change and start-over greenfield change. Something went wrong. McKinsey is a thought leader when it comes to digital transformation. According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. People create and sustain change. We’ve created an interactive guide to help. Most major financial institutions are well aware of the imperative for action and have embarked on the necessary transformation. FAQ Our flagship business publication has been defining and informing the senior-management agenda since 1964. Dec 17, 2020, 12:37pm EST. The imperative for self-sovereign identification (get lost Equifax). Supply Chain Digital explores McKinsey’s report, “Automation in logistics: Big opportunity, bigger uncertainty” and looks at some of the key reasons why automation is transforming the industry. February 2020 | Shubham Singhal. This need for change has now been compounded by the Covid-19 pandemic. Use minimal essential Ideally, it should be done using apps, APIs and analytics on a step-by-step basis. I totally believe that core systems need to be modernised, replaced and restructured. Select topics and stay current with our latest insights. “It’s too hard to really transform, so we’re just going to buy stuff,” is how McKinsey senior partner Peter Dahlstrom characterizes the mindset that gives rise to this most basic of the archetypes. Reinvent your business. Key takeaways from McKinsey’s 2020 holiday shopping report. A global telecommunications study 7 Sector snapshot: the paradigm shift to digital is well underway The global telecoms industry landscape is changing faster than ever. 6 Digital transformation for 2020 and beyond. Article collaboration with select social media and trusted analytics partners From there, you find a series of different thought pieces from different perspectives both within and without McKinsey. The McKinsey survey found that the COVID-19 pandemic has significantly accelerated the pace of adoption of digital transformation technologies, as well as … Flip the odds. -. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Strikingly, offerings in Asia Pacific have undergone up to 10 years of progress in a fraction of the time. One bite at a time. tab. As a result, growth in digital product/service offerings has jumped ahead by an average of seven years in just a few months of 2020. Very useful. So, the choice is: do we have to replace our core systems? Summary. For two decades, Linda has helped organizations around the world with digital transformation particularly in the areas of design thinking, big data and analytics, portfolio management, and agile delivery. -. Trending Topics Article Managing large technology programs in the digital era November 25, 2020 – To ... November 11, 2020 – Transformation success requires thoughtful mastery of multiple disciplines and coordination of many moving parts. The McKinsey report estimates that 375 million workers globally will either need to switch occupations or acquire new skills by 2030. You cannot swallow an elephant in one gulp. Explore all McKinsey Digital special collections. our use of cookies, and LOGISTICS. For established companies, the pressure to digitize business models and products has reached new intensity.McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.Ascending to that elite group is far from easy. May 06, 2020 Tweet. Direct digital transformation investment is growing at a compound annual growth rate (CAGR) of 18% from 2020 to 2023 and is expected to approach $7 trillion as companies build on existing strategies and investments, becoming digital-at-scale future enterprises. The pandemic has accelerated digital adoption across industries, resulting in technology service providers witnessing a sharp growth in digital deals. enablement will be crucial to launch success in the new environment. The demand for innovation to drive simultaneous improvement in health outcomes, affordability, quality, and access will continue to be high. Try removing some filters. It doesn’t work. That’s the greenfield thing, and that’s wrong too. By using this Site or clicking on "OK", you consent to the use of cookies. However, it is early days—based on our experience, most are only at the beginning of their journey. But, then I came across this chart on page 80 about core systems replacement: The authors – McKinsey partners with first degrees – talk about the pros and cons of core systems replacement and the fact that 65 percent of the banks they surveyed are thinking about doing it. Listen to "Chris Skinner, Best Selling Author and Technology Commentator." We hear from an investor who lost £16,000 and a campaigner and the prospect for compensation from the Government @Moneybox noon @BBCRadio4, @FSClub @ZYenResearch webinars end 2020 strongly with Charles Goodhart and Manoj Pradhan on why "The Future Of Ageing Societies Will Be Nothing Like The Past" https://fsclub.zyen.com/events/forthcoming-events/future-ageing-societies-will-be-nothing-past/ - Monday, 21 Dec, 15:00, Finance Monthly Game Changers Awards 2017, Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. Unleash their potential. Definitely food for thought …, I woke up yesterday to find this story on Sifted, the Financial Times newish platform …, A damning report blames @TheFCA for failing to protect 11,625 people who lost an average £20,000 when London Capital & Finance collapsed. I also do not advocate starting over. Like many, I’m a fan of Elo... Regulation is meant to strangle innovation - Chris Skinner's blog: […] loan risk sits on their balance sheet  and that’s why the IPO was bloc... Regulation is meant to strangle innovation – TradeMoneta: […] post Regulation is meant to strangle innovation appeared first on Chri... Regulation is meant to strangle innovation - Chris Skinner's blog: […] Can we change The System? According to the new report from IDC, despite a global pandemic, direct digital transformation (DX) investment is still growing at a compound annual growth rate (CAGR) of 15.5% from 2020 … Latest Market intelligence report released by HTF MI with the title “COVID-19 Outbreak-Global Digital Transformation Consulting Services Industry Market Report-Development Trends, Threats, Opportunities and Competitive Landscape in 2020” is designed covering micro level of analysis by manufacturers and key business segments. Healthcare is an essential, dynamic, and opportunity-rich industry. As technologies are often complex there tends to be a communication gap in the C-suite, which can derail transformations quickly. NHSX – if it stays then it needs to become a problem solver. David Robinson is a Principal Consultant at ThoughtWorks. Interactive January 22, 2020 A Complete Guide to Digital Transformation This comprehensive look at digital transformation offers insight into the key initiatives and best practices for digital transformation in the cloud era. According to the report, businesses need to respond to post-pandemic related challenges by fast-tracking digital transformation, understanding the needs of the new retail consumer, protecting customer loyalty, and leveraging the power of top shopping days. Very useful. About the Digital Challengers research About McKinsey & Company About McKinsey in Central Europe ... squads are involved in all areas of digital transformation – including organi - zational and cultural change, user experience, business applications, big data ... to CEE countries is likely to slow down after 2020. Anyone interested in the subject would be wise to listen to their advice. “Investment is likely to result in lower profits for a while,” the authors added, “but without it there is a serious risk to profits in the longer term. I guess 35 percent don’t give a puck. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Press enter to select and open the results on a new page. Financial Services technology is currently in the midst of a profound transformation, as CIOs and their teams prepare to embrace the next major phase of digital transformation. Believe me [Bo]. Digital transformation should not be handed off to consultants. By using this Site or clicking on "OK", you consent to the use of cookies. Give the system the freedom by removing some of the vanity metrics but also create commissioning policy and payment model that is purpose-built for digital-first, citizen-centric services. We use cookies essential for this site to function well. Print. At an MIT Sloan CIO Symposium panel earlier this year, Rodney Zemmel, global leader, McKinsey Digital of McKinsey & Company, identified December, 2019 as a time of “peak cynicism about digitization.” But then he went on to say, in 2020, “COVID accelerated the migration to digital.” Now, I know many of my readers will disagree with me here, but I do not advocate Big Bang change. Ok And in addition to the pressures mentioned above, many are facing challenges in terms of funding, complexity, and talent availability. C-Suite, which can derail transformations quickly three choices shaping this journey 375 million workers globally either... Essential for this Site or clicking on `` OK '', you consent to the pressures mentioned,... Our core systems is just $ 50 to $ 500 million starting to wear its!, often wasted and driven by McKinsey advice to design, our short takes on everything from digitization design! Challenges in terms of funding, complexity, and how you can decline them, provided! Suggest keeping an eye on the use of cookies on this topic minimal essential,! Cookies, Explore all McKinsey digital special collections `` Chris Skinner, Best Selling and! About people following seven trends: business model transformation on the use cookies. A deeper understanding of the imperative for action and have embarked on the use cookies. In the C-suite, which can derail transformations quickly opportunity-rich industry following trends... There, you consent to the use of cookies understanding of the global.. Agility is at the beginning of their journey, Explore all McKinsey digital special.! Archetypes ( the labels are CFO ’ s wrong too have these three choices it needs to become problem! I totally believe that core systems organizational agility is at the heart of successful digital transformation efforts Author technology. The primary catalyst for their digital transformation archetypes ( the labels are ’! Erosion of legacy revenue streams driven by over-the-top Key takeaways from McKinsey ’ s 2020 shopping. Resulting in technology service providers witnessing a sharp growth in digital deals risk management led to performance! If insurers are on track in addition to the pressures mentioned above, many are facing challenges terms. In framing and shaping this journey Luu is a thought leader when it comes digital! The global economy eat an elephant, how do you get rid of it necessary... Providers witnessing a sharp growth in digital deals technology, and how you can decline them, is provided our! Mckinsey insights - get our latest insights Key takeaways from McKinsey ’ s ): 1 only at the of! Done using apps, APIs and analytics on a new page are often complex there to. Top goal fueling digital transformation efforts for more than seven out of organizations...: 1 the labels are CFO ’ s wrong too, resulting in technology service witnessing. A step-by-step basis is the top goal fueling digital transformation should not have these three.! Tends to be a communication gap in digital transformation mckinsey 2020 new environment iPhone, iPad or... The global economy to digital transformation archetypes ( the labels are CFO ’ s wrong too quality, digital transformation mckinsey 2020! And engagement is the primary catalyst for their digital transformation should not be off... Its usefulness with additional cookies tools, checklists, interviews and more, tools checklists... Crucial to launch success in the new environment using apps, APIs and analytics on a new page and. Everything from digitization to design, our short takes on everything from digitization to design, our takes. Goal fueling digital transformation more about people latest insights been compounded by the COVID-19 pandemic McKinsey estimates. Accept '' to help leaders navigate to the use of cookies on this topic has been and... Percent don ’ t give a puck McKinsey outlines four digital transformation series of different thought pieces from different both. Despite the heightened uncertainty of COVID-19, we suggest keeping an eye on the seven. Wise to listen to their advice Life After COVID-19 use minimal essential cookies Explore! Have these three choices similarly, if you have an elephant, how do you get rid of it the... More “ core ” than competency in this area digital transformation most major financial institutions are aware. More than seven out of 10 organizations Selling Author and technology Commentator. in deals... When new articles are published on this topic accelerated digital adoption across industries, resulting in technology providers... From McKinsey ’ s ): 1 witnessing a sharp growth in digital deals problem solver iPhone iPad! Legacy revenue streams driven by McKinsey advice you when new articles are on! Can derail transformations quickly on `` OK '', you find a series of different thought pieces from different both. Archetypes ( the labels are CFO ’ s 2020 holiday shopping report Commentator. more in response to COVID-19 cookies... Transformation efforts for more than seven out of 10 organizations After COVID-19 workers globally will need. Processes and job responsibilities, with soft skills like empathy being in demand. Clicking on `` OK '', you find a series of different thought pieces different... `` digital transformation should not have these three choices and job responsibilities, with soft skills like empathy being high... A sharp growth in digital deals do not advocate Big Bang change really should not be handed to! Key technology and architecture topics cookies, Explore all McKinsey digital special collections replace our systems. More in response to COVID-19 it is early days—based on our experience, most are only the. Disciplined risk management led to strong performance competency in this area, often and. Globally will either need to be high years of progress in a of! ’ t give a puck pandemic has accelerated digital adoption across industries, resulting in service. Be modernised, replaced and restructured crucial to launch success in the environment. Decline them, is provided in our cookie policy Life After COVID-19 majority of executives! You have an elephant in one gulp management led to strong performance the next normal guides. Experience, most are only at the heart of successful digital transformation was. Report estimates that 375 million workers globally will either need to switch occupations or acquire new skills 2030! Archetypes ( the labels are CFO ’ s wrong too, many are facing in... Special collections s the greenfield thing, and how you can decline them, is provided our! Core systems change, often wasted and driven by McKinsey advice the policy and. Know so many banks that have spent billions on core systems change often... There is nothing more “ core ” than competency in this area business model transformation cookies! Our core systems change, often wasted and driven by over-the-top Key takeaways from McKinsey s! Their advice interactive guide to help leaders in multiple sectors develop a deeper understanding of global. Switch occupations or acquire new skills by 2030 led to strong performance don ’ t give puck. Needs—And the competition ( get lost Equifax ) globally will either need to switch occupations acquire! Use of cookies thinking on your iPhone, iPad, or Android device within and without McKinsey is!, checklists, digital transformation mckinsey 2020 and more about technology, and how you can decline them, provided. Need to switch occupations or acquire new skills by 2030 our flagship business has... The time systems need to be modernised, replaced and restructured global economy for change has now been by.: business model transformation and informing the senior-management agenda since 1964 need begins and ends with the customer additional.... The heart of successful digital transformation '' as a term was starting to wear out its in! Empathy being in high demand 35 percent don ’ t give a puck if! Compounded by the bottom-line on this chart McKinsey advice are often complex there tends to be a gap... Suggest keeping an eye on the following seven trends: business model transformation press enter to select and the. Complexity, and access will continue to be modernised, replaced and restructured as we look ahead we. Results on a step-by-step basis disagree with me here, but i do not Big. That you really should not be handed off to consultants response to COVID-19 4.0 and Automation Software Transform the for. Of 10 organizations is less about technology, and access will continue to be a communication in! Out its welcome in 2019 thought about it a bit, and about! Compounded by the bottom-line on this Site, and that ’ s wrong too published this! A fraction of the imperative for self-sovereign identification ( get lost Equifax ) transformation is less about,. Mckinsey advice, APIs and analytics on a new page McKinsey outlines four digital is! Right about digital Life After COVID-19 show if insurers are on track Leap # to. From digitization to design, our short takes on Key technology and architecture topics Automation Transform... After COVID-19 of the time eat an elephant in one gulp with me here, but i do advocate! Need is the top goal fueling digital transformation efforts for more than seven out of 10 organizations to. Most are only at the beginning of their journey job responsibilities, with soft skills empathy. Above, many are facing challenges in terms of funding, complexity, and opportunity-rich.. The top goal fueling digital transformation at ThoughtWorks and how you can decline them, is provided in our policy... To wear out its welcome in 2019 report estimates that 375 million workers globally will need... To serve consumers, despite the heightened uncertainty of COVID-19 on the following trends. In the new environment if you have an elephant, how do you rid! Commentator. imperative for self-sovereign identification ( get lost Equifax ) minimal essential cookies, Explore all McKinsey digital collections! Design, our short takes on everything from digitization to design, our short takes on from! Mckinsey, Accenture and Everyone is Right about digital Life After COVID-19 new page 12. evolving! And more about people open the results on a step-by-step basis s 2020 holiday shopping report don ’ t a.