The dynamic technology environment today has left the CXO in a midst of a quagmire as the CXO has a limited technology budget and endless potential investment opportunities in the field of technology which could improve the performance of the bank. Clearly there is a need to get at least some guideline on the kind of returns on investments which the bank would be getting for any investment made in the field of technology.
In this rapidly digitizing ecosphere businesses are still at a nascent stage where most of the industry verticals although now realize that the future is digital but they are either not yet technologically ready to embrace it or have just started assessing the impact of this radical shift in the business models is impacting them and started reacting, there are exceptions though. Banking vertical being most technically inclined to digitization as compared to vertical like Energy or Manufacturing, becomes the obvious choice for this white paper. Every well-known bank today has at least one substantial size project in pipeline where it is trying to improve its digital footprint in one of the three areas i.e. Customer Relationship, Operations or Partnering with Other players in its ecosystem.
It clear that any digital transformation initiative is fruitless unless there is a clear buy in from the top management, in fact most successful digital transformations initiatives have been the ones which have been initiated from CXO down. It is imperative for any organization to transforms its operations into a more digital state in this rapidly digitizing economy. The next question which challenges a CXO is “Which initiatives would give the best results in terms of Returns of Investment?” and/or “Where should the IT dollar be invested to get maximum bang for the buck?” and/or “What kind of returns the top management can expect from these initiatives?”. In order to enable CXO understand the results and ROI, it becomes imperative for a digital transformation advisor to evaluate to identify variables which factor to the success of these initiatives.