Financial Management Information Systems (FMIS)
Companies also need to seamlessly integrate development and operations via automation, standardization and transparent resource allocation. Just like developers, they are tired of technology proliferation, version-control issues and long wait times for hardware and software setup. A continuous delivery pipeline built on a cloud environment and managed using DevOps practices can dramatically shorten delivery cycle times, reduce manual errors and decrease costs. Capabilities like automated testing and on-demand service catalogs now allow developers to spin up environments and rapidly develop and test new functionality.
This model must also increase focus on security and risk management, a facet of digital operations that has risen to the top levels of executive and board scrutiny. At the organizational level, the new operating model redefines roles and responsibilities around digital models rather than the often outmoded pattern of aligning with technology domains.
This helps clarify decision rights and accountability—considerations that are more important than ever, as an increasing number of products and services cross functional lines, creating the risk of poor transparency and weak accountability. In other words, companies need more business-enabled talent within IT and more IT-enabled talent within the business. Current IT staff will need to learn new skills, and new expertise will need to be brought in from the outside.
Many companies debate whether they need a two-track operating model to deliver on digital priorities. Our research indicates that about two-thirds of emerging leaders have adopted some type of two-track system separate organization, separate systems or both and closely manage the interdependencies. We also see companies that resist this idea, but it need not become a source of conflict.
However, the model should be set up with clear guidelines on responsibilities, funding and duration to avoid driving up costs and creating a schism of winners and losers within IT. A global bank has investments in many start-ups across 40 countries and in a venture capital fund active in 10 countries. The message is clear: Landing the right skills and mindset for digital innovation may require access to nontraditional sources.
Most banks and insurance companies run their businesses on complex IT architectures that have been modified and patched to help their systems keep up with business demands.
Starting fresh is rarely an option, but most financial institutions will need to update and adapt their IT architectures over the next few years to make them more modular and flexible—an essential action for providing the rapid responses necessary to succeed in the digital era. We believe that most financial institutions will need to replace or transform their IT architecture over the next 10 years or so. This challenge is daunting, but there are thoughtful approaches to reduce the risks. Best practices we see include:.
A leading global insurance company on a drive to double its business is implementing a multi-tenant architecture while reducing its legacy footprint from 11 distinct stacks to a single, well-architected and modular stack. A leading European bank is transforming its IT architecture from fixed, coded processes to more flexible ones, from application-oriented to service-oriented methods and from high-variety to industrialized, low-cost architectures. In India, a leading bank built a single customer view by leveraging a CRM solution.
A British bank has built a platform that enables a single view of the customer, captures client documentation digitally at the point of interaction and secures biometric data when customers open accounts. Regardless of the approach, these architecture transformations are multiyear projects and must be very carefully planned and managed. Another important trend is the shift in infrastructure toward hybrid cloud architectures and software-defined data centers SDDCs to reduce cycle times, increase resiliency and reduce costs. Financial institutions are also eyeing the cloud as a way of delivering services, and IT vendors are beginning to commercialize enterprise-grade cloud capabilities that deliver security, control and performance agreements at levels demanded by the financial industry.
At least one North American bank has also said it wants to transform the way it manages resources from the data center to the desktop using hybrid cloud and SDDC technologies. Once executives have identified the elements that need to change, they can begin the transformation program, which starts with an assessment of their current capabilities.
Financial institutions should not think of this as an IT project—rather, the whole organization has to work together to develop an integrated technology roadmap for a new era of digital customer engagement. Only with the focused attention of senior executives from IT and the rest of the business can companies set the right strategic goals and define the appropriate organizational models to reach them. Executives can think of rebooting IT as a journey that comprises four phases. The first step is acknowledging the starting point and aligning the C-suite with a sense of urgency about the opportunity at hand.
They can then begin to discuss the scale, scope and associated costs and benefits of implementing a digital technology transformation agenda. Our research finds that this level of attention by C-suite executives is critical see Figure 2. Once senior leaders have a clear understanding of their current position, they need to align their vision of the future. What do they want to accomplish, and what capabilities will they need to get there? These questions open a broad and detailed discussion about the gaps between current and future state as well as the funding necessary to bridge them.
As the organization aligns strategic and tactical directions, the third step is to clearly define and activate the transformation initiatives.
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The way to begin activation is with bite-sized changes to the operating model. The final step is a perennial one: Successful transformations lead into programs of continuous improvement, refining processes with feedback from customers, the front line and managers. One of the biggest challenges in this step is to maintain a design that eliminates complexity.
Financial Services Information Systems
In most companies, rewards accrue primarily to those who create new things. But a new operating model should also recognize those who find ways to decommission legacy products and services that consume resources while adding little value to future business.
It not uncommon to have false starts, and some organizations have two or more before momentum builds and change begins to turn the organization. All things considered, executives should expect that it will take three to five years to complete the transformation.
The challenge of the first months lies in building support, and the goal of the remaining period is to maintain that focus and make change sustainable. Senior leadership must maintain its commitment to the transformation, but just as important is endorsement at all levels of the organization. A sponsorship spine—a chain of committed and accountable sponsors that runs across the organization from the front line to the management suite—can help ensure sustained attention to the effort. The people who work in an organization must believe they are getting full information, understand how the change affects them and feel they are being treated fairly—even when changes are difficult.
They must feel that after all is said and done, the goal—a thriving financial institution that meets and exceeds the requirements of its customers—is worth the journey. We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results. Content added to Red Folder Red Folder 0. Removed from Red Folder Red Folder 0. Learn More about VitalSource Bookshelf. CPD consists of any educational activity which helps to maintain and develop knowledge, problem-solving, and technical skills with the aim to provide better health care through higher standards.
Financial Services Information Systems - CRC Press Book
It could be through conference attendance, group discussion or directed reading to name just a few examples. We provide a free online form to document your learning and a certificate for your records. Already read this title? Please accept our apologies for any inconvenience this may cause. Add to Wish List. Toggle navigation Additional Book Information. Description Table of Contents Editor s Bio. Features Presents the technologies that help you provide exciting products and improved services to your customers Offers an end-user's take on financial services technology Outlines the powerful technologies that have helped companies offer new, integrated products and improve customer service Presents financial services technologies from a financial services perspective, covering everything from GIS technology applications to network design and internet topics Summary The calculus of IT support for the banking, securities, and insurance industries has changed dramatically and rapidly over the past few years.
Consolidation and deregulation are creating opportunities and challenges never before seen. Unheard of just a few years ago, e-commerce has given birth to new infrastructures and departments needed to support them.
At the same time, new intelligent agents stand ready to take on such diverse functions as customer profiling and data mining. Get a handle on all these new and newer ripples with Financial Services Information Systems. Here, in this exhaustive new guide and reference book, industry guru Jessica Keyes gives you the no-nonsense scoop on not just the tried and true IT tools of today, but also the up-and-coming "hot" technologies of tomorrow, and how to plan for them.
Financial Services Information Systems addresses challenges and solutions associated with: Hancock and Rhonda R.
Related Financial Services Information Systems (Best Practices)
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