Many may think of digital transformation in the financial services industry as something like emailing a PDF of a bank statement instead of printing it and sending via snail mail.
After working with data, analytics, software and fraud-prevention experts, I have found that digital transformation is actually much more than PDFs. It can have a bigger and more positive influence on a business’s bottom line – especially when built on a foundation of data.
Digital transformation is the new business model. And executives agree. Seventy percent of executives feel the traditional business model will disappear in the next five years due to digital transformation, according to recent Experian research.
Our new e-book, Powering digital transformation: Transforming the customer experience with data, analytics and automation, says, “we live in a world of ‘evolve or fail.’ From Kodak to Blockbuster, we’ve seen businesses resist change and falter. The need to evolve is not new. What is new is the speed and depth needed to not only compete, but to survive. Digital startups are revolutionizing industries in months and years instead of decades and centuries.”
So how do businesses evolve digitally? First, they must understand that this isn’t a ‘one-and-done’ event. The e-book suggests that the digital transformation life cycle is a never-ending process:
- Cleanse, standardize and enrich your data to create features or attributes
- Analyze your data to derive pertinent insights
- Automate your models and business practices to provide customer-centric experiences
- Test your techniques to find ways to improve
- Begin the process again
Did you notice the key word or phrase in each of these steps is ‘data’ or ‘powered by data?’ Quality, reliable data is the foundation of digital transformation. In fact, almost half of CEOs surveyed said that lack of data or analytical insight is their biggest challenge to digital transformation.
Our digital world needs better access to and insight from data because information derived from data, tempered with wisdom, provides the insight, speed and competitive advantage needed in our hypercompetitive environment. Data is the power behind digital transformation.