In the 18 months since we started our Technology & Innovation Forum, we have seen our membership quadruple, with 85 participants representing more than 50 asset and automotive financial services businesses.
In some respects, we find ourselves returning to familiar, key topics - data, microservices, agile development – even revisiting the most recent developments, such as AI. And we have looked at some tech best practices and conclusions that seem to stay the same – the critical role of planning, change management and communication, for example – even when the technology itself is new.
Here, we consider how, as the technology we buy and use has changed, so too our businesses and behaviours have begun to change, and might yet need to evolve further.
With the growing adoption of agile practices and terminology, we are becoming comfortable with using the word "product", especially when applied to IT, (rather than HP, leasing and contract hire). However, even when talking about sizeable projects, for example, replacing a CMS/back-office system, and often when still using – appropriately – "waterfall" project management methodology, we are also hearing more and more about a product-led or product-first approach.
So, if that's what we're now saying, what are we doing differently as a result?
Of course, agile development and microservices enable fast and bespoke development of point-solutions, and most importantly, fast time-to-market. With larger-scope deployments, however, even many tech providers are increasingly shying away from customisation in favour of product homogeneity, foregoing the revenue opportunities in favour of standardisation and product integrity, enabling faster and more reliable implementation projects.
For the business purchasing the solution, this means less emphasis on elaborate process descriptions and business requirements definition, and more emphasis on adapting business processes to those prescribed by the vendor as being the most effective use of the product.
Indeed, for back-office processes and systems, this would seem to make much sense; the processes (as opposed to the process outcomes) are invisible to the end customer, where automation and speed of repeated execution of similar, high-volume transactions - performance of a standard calculation, payment advice, and debit - are not only an expectation but also do not particularly represent a point of differentiation for the business.
Less business effort in preparation for a major IT project and faster delivery by the suppliers should create some capacity, let alone the efficiency savings new applications are expected to bring.
But it's not simply a matter of business efficiency; it should also create business opportunity. And that opportunity is business-wide – as much for the tech function as for the operational areas.
Embracing these new technologies and new practices requires learning and adjustment for both business and IT, and should enable understanding and bring them closer together.
If the business is able to spend less time describing what it does, (arguably, what it has always done, based on what it is used to doing), then it can spend more time on describing the remaining challenges and problems, the solutions to which should ultimately distinguish that business from its peers and competitors.
Accurately and precisely defining the problem will almost certainly require education and experimentation, as well as engagement with the solution, really with tech in general. The first users to adapt and adopt are likely the pool from which the first Business Product Owners will be drawn.
The increased efficiency of product-led project delivery should also create space for IT resources.
With the business more focused on defining the problems and what it needs a solution to do, rather than issuing instructions on the solution it thinks it wants, there is increased pressure on IT to deliver and demonstrate success in meeting the business challenge.
This also requires a shift in mindset, learning about the nature of the business, its competitive and regulatory environment and not just "doing IT". The IT Product Owners have to acquire a depth of understanding of how "their" product relates to the business, its strengths and weaknesses, its potential and limitations.
Whilst the product deployments themselves become more rapid, the total tech ecosystem will almost certainly grow in size and complexity, and increasing attention must be paid to APIs and getting the different moving parts to work together.
At least initially, in order to show timely progress and tangible results, there may need to be some tactical product/project selection. This is also not a bad idea to build business confidence in the new methodology. Apart from anything else, constant, incremental change is less disruptive and less risky. Eventually, the business language evolves to integrate an agile approach, and it becomes the new normal.
The dialogue between business and IT is continuous and reaches ever further across the organisation. The change has started and acquires a momentum of its own. That's not to say it is overnight, but with the setting of appropriate goals, the measurement of achievement and the communication of success, a revolution is what it will become.
Most finance businesses are some way into their digital transformation journey but at a variety of different points along the road.
The changes required in business and organisational practices are manifold, and there is probably no single right or wrong place to start, but wherever you are on your journey and whether it is product selection or implementation, project planning or management, process design or review, Finativ offers the relevant experience and expertise to help you in making the changes you need to make, and in achieving the objectives you have set yourself.
And how we provide that assistance is every bit as agile and flexible as the business you want to become.
Contact us to find out more.
