IDC: The Role of Digital Transformation in Industry Disruption
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The Role of Digital Transformation in Industry Disruption James Wester – Research Director Jerry Silva – Research Director FSI Transformation Assembly 2015
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Transcript of IDC: The Role of Digital Transformation in Industry Disruption
The Role of Digital Transformation in Industry Disruption
James Wester – Research Director Jerry Silva – Research Director FSI Transformation Assembly 2015
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“the changes associated with the application of digital technology in
all aspects of human society.” Wikipedia
Digital Transforma/on
In a narrower sense, "digital transformation" may refer to the concept of "going paperless.“
Wikipedia
“The use of new digital technologies (social media, mobile, analytics, or embedded devices) to enable major business improvements (such as enhancing customer
experience, streamlining operations, or creating new business models). Sloane
Business School, MIT
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The ability to:
deliver content products, services, advice, information
to consumers Retail, SME, Corporate, Staff
regardless of origin or destination Core, CRM, Lending
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"Silicon Valley is coming… they all want to eat our lunch”
Jamie Dimon, CEO JP Morgan Chase
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The reports of my death…
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The promise of “disruption”
has led to immense attention.
Payments: Transformation Target
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
Find the Opportunities
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 9
Cardholder Merchant
Card Issuer Merchant Acquirer
Card Networks
Rules Communications
Acc
t Man
agem
ent
Set
tlem
ent (
less
fees
)
Payment
Service/Product
Paym
ent
Purchase D
etails
Settlement (less fees)
Purchase Details
Worldwide Payment Cards
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Source: Nilson Report, Federal Reserve
5.99
4.21
2.64
1.29
0.71 0.71
0.11 0.08 0.07 0
1
2
3
4
5
6
7
Private Label UnionPay Visa MasterCard Maestro Domestic Amex JCB Other
(Bill
ions
)
Cards in Circulation
§ 16 billion cards worldwide (credit, debit, prepaid)
§ 775 million cards in U.S. alone
US Payment Methods
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Source: Nilson Report
$1,556
$1,053
$2,491
$2,111
$1,348
-
500
1,000
1,500
2,000
2,500
3,000
Cash Checks Credit Cards Debit Cards Electronic Payments
(Bill
ions
)
Payment Value By Type – 2013
Transformational Opportunities
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Reduce Complexity: Simplify complex processes
Reduce Cost: Remove high, often arbitrary, fees
Increase Access: Expand to untapped markets
Increase Utility: Move beyond money
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80% - 85% of the CIO/COO agenda today goes to regulatory compliance,
risk management, security, and operations.
Ultimately this is an untenable position
Shadow IT has become the de facto way for line of
business to create new products and services, bypassing the IT group
altogether.
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$14.8B will be spent in 2015 on transformational initiatives in US Banking
Many banks are investing in organizational changes to enable innovation and
“go forward” projects
Innovation Labs Embedded IT
3rd Party Partnerships
Questions and Answers
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§ Have you joined our IDC Community? – open to everyone! http://idc-community.com/financial
§ Sign up for our free monthly email newsletters: www.idc.com/gotinsights
James Wester – Research Director [email protected] Twitter handle: jameswester
Jerry Silva – Research Director [email protected] Twitter handle: JerrySilva_PGS
