Cognizanti Digital Business 2020: Getting there from here!
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Cognizanti An annual journal produced by Cognizant Digital Business 2020: Getting there from here!
Cognizanti is an annual journal published by Cognizant. Our
mission is to provide unique insights, emerging strategies and
proven best practices that globally-minded companies can use in
their quest for business and IT performance excellence.
All articles published in Cognizanti represent the ideas and
perspectives of individual Cognizant associates and contributors
who have documented expertise in business-technology strategy
and implementation. The content of the articles published in
Cognizanti represents the views of the individual contributors
and not necessarily those of Cognizant. They are put forward
to illuminate new ways of conceptualizing and delivering global
services for competitive gain. They are not intended to be, and are
not a substitute for, professional advice and should not be relied
upon as such.
For more insights, and to continue the conversation online, please
visit our e-community at http://connections.cognizant.com.
© Copyright 2014, Cognizant Technology Solutions
No part of this publication may be used or reproduced in any manner whatsoever without written
permission of Cognizant.
Cognizanti An annual journal produced by Cognizant
VOLUME 7 • ISSUE 1 • 2014
The Cognizanti Team
Publisher: Malcolm Frank, Executive Vice President, Strategy & Marketing
Editor-in-Chief: Alan Alper, Associate Vice President, Corporate Marketing
Editor: Reshma Trenchil, Senior Manager, Corporate Marketing
Thought Leadership
Program Management: April Vadnais, Senior Manager, Corporate Marketing
Art Director: Jason Feuilly, Associate Director, Corporate Brand/Design
Design/Print Production: Diana Fitter, Freelance Designer
Contributing Editor: Mary Brandel, Freelance Editor
Columnist: Bruce J. Rogow, Independent Advisor
Digital Distribution: Shamrez Zack, Senior Manager, Corporate Marketing
Editorial Advisory Board
Kaushik Bhaumik, Senior Vice-President & Market Leader,
Communications & Technology Industry Group
Nagaraja Srivatsan, Senior Vice-President,
Emerging Business Accelerator
Mark Livingston, Senior Vice-President,
Cognizant Business Consulting
Ramkumar Ramamoorthy, Senior Vice-President,
Corporate Communications
Anand Chandramouli, Director, Cognizant Research Center
Ben Pring, Associate Vice-President,
Cognizant Center for the Future of Work
Gary Beach, Publisher Emeritus, CIO Magazine
Table of Contents 6 Editor’s Note Seeing the Digital Future through a 2020 Lens 9 The First Word Signposts to a True End-to-End Digital Enterprise 17 Digitizing Business Process Why Smart Hands and Machines Will Power the Second Industrial Age 23 Digital Banking Get Ready to Meet Your Customers Client Commentary Retail Banking in a Code Halo World 31 Connected Health Enabling Healthier Outcomes for All 39 Trip Planning How We Will Travel in the Year 2020
47 Consumer Goods Creating Sustainable Relationships with Consumers 53 Exploring the Customer Interface You Had Me at ‘01001000010001 01010011000100110001001111’ 59 Information Architecture Trolling in the Data Lake? Get Yourself a Fish-Finder 65 Application Program Management Software Development in the World of Code Halos The Future of IT Making IT Your Organization’s Code Halo Hero 75 The Last Word The Journey to 2020
Editor’s Note
Seeing the Digital Future
through a 2020 Lens
We know: You’ve heard (seemingly forever) how digital technology will revolutionize business. It
started in the mid-1960s with the advent of commercial mainframes and green screens. Gurus gushed
breathlessly about the impending paperless office and repeated that mantra throughout the 1970s
as minicomputers and dedicated word processors selectively supplanted big iron. They raised the
rhetoric in the late 1980s, pinning their hopes and dreams on networked PCs and Unix servers, and
continued through the 1990s (into current times) with the mainstreaming of the Worldwide Web and
so-called “Internet of Things.” And still, the average worker generates more than two pounds of paper
per day … so much for the paperless office!
Given all this, it might sound a bit naïve to proclaim that the era of digital business is now upon us.
Yet as this issue of Cognizanti reveals, new technologies, tools and techniques are rapidly converging
to push the vision of end-to-end digital business over the final barrier into an approachable reality.
Big changes in the way we work, live, digitally maintain our health and manage our finances are right
around the corner and are likely to become accepted norms sometime in the next decade. And this
time, when we say “digital,” we really mean it. Business leaders of the future will compete not on
things we can touch but on something that’s as intangible as it is powerful: code. When businesses
successfully distill and apply meaning from the digital data that surrounds every person, process, orga-
nization and device (what we call a Code HaloTM), they rise above the fray, turn over entire industries
and emerge as indomitable — and fierce — competitors.
It is our contention that business meaning made from Code Halo intersections will separate industry
leaders from also-rans in this new digital economy. And for businesses in all industries, the path to
digital success will be paved with a slurry mix of process reinvention, mindset shifts and deepening
inter-disciplinary competency across the components of the SMAC StackTM (i.e., social, mobile,
analytics and the cloud). With this technology foundation at their core, organizations can transform
their business models from simply managing widgets to trading on digits and offering personalized,
engaging and fulfilling customer experiences.
In the pages that follow, our authors peer over the horizon into the next decade to see how Code
Halos will create engaging and even clairvoyant enterprises that can read the minds of customers,
employees and business partners, and deliver personalized products and services that offer true value
at the moment of need, sometimes even before the need is realized.
6
Our experts examine how SMAC-charged Code Halos will empower digital business within key
industries (consumer goods, banking and healthcare) and assess impending changes in fundamental
business-technology disciplines (process automation, IT management, enterprise information archi-
tecture and software development).
And we conclude with practical advice on what organizations can and should do to navigate around
and through the organizational, technological and business model mountains and molehills that they
are sure to encounter on the way to fulfilling their holistic digital business mandates.
Setting off full-bore on developing an end-to-end digital business strategy requires leaders to see the
big picture. This starts with a serious rethink of what their company is really in business for, given the
Code Halo-inspired upheaval occurring across industries. From there, it evolves into the creation of
impeccably designed and personalized experiences that delight customers at every digital touchpoint
with meaningful and rewarding engagements that drive loyalty (as measured with every interaction
and transaction). That’s not easy, of course, especially in a traditional business world in which success
often pivots around feeds, speeds and other easily duplicated business advantages.
The New Digital Gestalt
As our tribute to design thinking, we hope you enjoy the new look and feel of the Cognizanti journal.
We contemporized the design and created additional entry points to invigorate the reading experience.
We are also moving to a digital-first approach by creating more snackable and shareable content from
the get-go that is easily ported into our Cognizant Perspectives app (which can be sampled on our
Web site (www.cognizant.com/latest-thinking). Feel free to share your thoughts, whether about our
new look, your forays into digital business or your perspective on Code Halo thinking, with me at
Alan.Alper@cognizant.com or on our e-community, Cognizant Connections
(connections.cognizant.com/).
Cognizanti • 7
The First Word
Signposts to a True
End-to-End Digital
Enterprise
By Akhil Tandulwadikar
This data explosion has significant implications for
As digital tools and
enterprises, particularly those seeking to sharpen
technologies are embedded their competitive edge by deftly interpreting the
accumulated bits and bytes and transforming them
at the core of the business,
into workable insights that inform and illuminate
the future of work looks more business strategy and direction.
connected and data-driven The data deluge caused by increasingly chatty and
than ever before. connected products, services, industrial devices,
consumers and enterprises has resulted in the
creation of fields of information — or what we call
A few years ago, who could have guessed that a Code HaloTM. In a business context, these halos
a bunch of everyday objects, or “things,” could enable meaningful connections among people,
cause such upheaval in the way we live and do organizations and devices. Extracting meaning
business? And yet, here we are in the midst of a from Code Halos is a skill that successful enterpris-
data explosion, instigated in part by the so-called es of tomorrow will need to master, with the help
Internet of Things, a vast and growing network of of new technology foundations and skills based on
sensor-enabled devices embedded in everything the SMAC StackTM (i.e., social, mobile, analytics
from vehicles, to healthcare equipment, to and cloud technologies).
household appliances. These connected “things” —
which in 2012 accounted for 0.6% of the estimated
1.5 trillion things in existence — are expected to
A Look at the SMAC Stack
number 50 billion by 2020 — or 6.58 connected Big Data & Analytics
devices per person.1 Code Halo thinking is predicated on mastery
of business analytics. To fan the analytics flame,
The market for wearable electronics alone is
organizations are betting big on big data, a global
forecast to cross the $8 billion mark by 2018,2
market that is projected to reach $48.3 billion
across the consumer, healthcare, enterprise and
by 2018 4 (see Figure 1, next page). The advanced
industrial sectors. The result: A boom in global IP
and predictive analytics software segment within
traffic volume, which will reach 1.4 zettabytes per
the big data market is forecast to grow from $2.2
year by 2017.3
billion in 2013 to $3.4 billion in 2018.5 Through
the application of best-in-class business analytics,
Cognizanti • 9
Big Data Will Take Center Stage
Global big data market estimates and forecast (in $ billions)
$60
$48.3
$
$48.
8.3
$50
.5%
$40 R 40
CAG
$30
($ billion)
$20
$6.27
$10
$0
2012 2018
Source: Transparency Market Research
Figure 1
enterprises across the retail, banking, insurance, ments, including increased efficiencies, improved
manufacturing, communications, information employee mobility and the ability to innovate,7
services, media and entertainment industries could spurring levels of cloud-related spending that are
generate value worth $2.61 trillion per year, an expected to reach $235.1 billion in 2017, according
increase of 8% beyond current levels.6 to IHS8 (see Figure 2).
Cloud Computing Enterprise Social Networking
The growth in cloud infrastructure is enabling While social networking seems to have historically
efficient data storage and easier data sharing. As received short-shrift from enterprises, we detect a
cloud computing matures, it is paving the way for subtle shift in the air. A recent Frost & Sullivan
next-generation IT architectures, such as software-, suvey9 found that 88% of respondents believe
platform- and business-process-as-a-service. In fact, social networking will be important in the coming
the cloud is already delivering measurable improve- years, especially to enable knowledge transfer
Thickening Clouds in Store for Enterprises
Global spending forecast on cloud architecture (in $ billions)
$250
$200
$150
($ billion)
$100
$50
$0
2011 2012 2013 2014 2015 2016 2017
Source: IHS
Figure 2
10within the enterprise and among geographically
disparate employees. Social tools can also improve
Impact on the Enterprise
employee engagement, as shown in the early With SMAC technologies as the fulcrum, pundits
corporate use of “gamification” techiques. Enter- estimate that business spending on digital
prises’ growing seriousness about social is reflected infrastructure will reach the $360 billion mark
in the uptake of enterprise social software to enable by 2016, transforming all functional areas of the
document-sharing, micro-blogging, wiki publishing enterprise. Social tools will improve customer
and creation of shared spaces for communities.10 engagement and unlock collaboration. Mobile
will enable anytime/anywhere interactions and
The rise of “social” offers a glimpse into the localized deals. Analytics will make these efforts
emergence of a digitally-wired enterprise that personalized and even able to predict customer
fosters a collaborative work culture and enables needs. Cloud-enabled digitization of processes will
knowledge to flow seamlessly among connected result in greater automation and better monitoring
employees over smartphones, tablets and other of internal processes. Integrated data management
devices of choice. will be the crucial intermediary that brings
disparate sources of data together and feeds the
Mobility respective functions with the necessary insights.
Whether they’re used for social engagement,
transactions, entertainment or customer service, Finance
mobile devices are now a crucial channel for Increasingly, financial executives will employ
customer interaction. Monthly traffic from cloud-based SaaS solutions to supplement core
mobile devices will surpass 15 exabytes in 2018, financial applications in areas such as expense
according to the 2013 Cisco Visual Networking management and reconciliation management.
Index, and according to Nielsen, consumers Big data and analytics will enhance functions
now use their smartphones more than their such as accounting, disclosure and governance.
PCs to access the Web.11 Both smartphones and Accelerated runtimes for period-end reports could
wearable devices will push mobility even further, significantly reduce the time needed to close the
enabling businesses to interact more personally books. Mobile solutions will improve employee
with customers, especially through localization productivity with self-service features such as data
capabilities that deliver offers, alerts and services to retrieval and sharing (see Figure 3).
customers just when they are needed.
Mobile Improvement Goals of CFOs
42%
45%
30%
34%
30%
15%
0%
Providing employees Enabling employees to share Providing employees
with better data data and make better with up-to-the minute
retrieval capabilities real-time decisions access to data
Source: “Supporting Growth with New Technologies Survey,” 2013, American Express & CFO Research
Figure 3
Cognizanti • 11Economic Benefits of Customer Intelligence
Big data analytics plus customer intelligence will make business
processes more cost-effective, resulting in enhanced output and
value across industries.
2011 (£M)
Professional Services / 1,390
Other Activities / 1,431
Retail / 1,148
Manufacturing / 1,401
Central Government / 827
Telecoms / 603
Healthcare / 467 UK Economy (£M)
Transportation & Logistics / 454
73,791
Retail Banking / 234 80000
Energy & Utilities / 236
Investment Banking / 164
70000
Insurance / 122
60000
50000
40000
30000
Cumulative 2012-17 (£M) 20000
Professional Services / 12,664
10000 8,477
Other Activities / 11,620
Retail / 10,961
Manufacturing / 10,640 0
Central Government / 6,712 2011 (£M) Cumulative
Telecoms / 5,678
2012-17 (£M)
Healthcare / 4,633
Transportation & Logistics / 4,161
Retail Banking / 2,127
Energy & Utilities / 1,943
Investment Banking / 1,568
Insurance / 1,083
Note: Customer intelligence benefits as measured in 2011 currency valuation
Source: “Data Equity: Unlocking the Value of Big Data,” Cebr & SAS
Figure 4
According to Ovum, customer engagement
Marketing and CRM
systems will be the fastest growing enterprise
Advanced analytics will provide an ultra-high- application between 2013 and 2018, with a CAGR
definition12 picture of a company’s move-forward of 10%.14 Using online tools (such as social media
performance and promotional scenarios to refine platforms) to handle customer issues will over time
customer engagement strategies on the fly. prove increasingly useful in improving customer
satisfaction while reducing costs.15
A study13 of the UK market by the Centre for
Economics and Business Research (Cebr) found
that better customer intelligence, driven by big Human Resource Management
data and analytics, could infuse the UK economy Meanwhile, big data is gradually moving recruit-
with $123.8 billion (£74 billion) between 2012 and ment decisions out of the hands of individual
2017 (see Figure 4), benefiting several industries, interviewers. Analyzing in-house data about high-
including retail, telecommunication and banking. tenure employees will help some organizations
better understand the characteristics to seek in
prospective job candidates.16
12of analytics to guide decision-makers through a
Supply Chain
constant deluge of data.19 Enterprise architects
Areas such as demand planning, order need to work in tandem with key business
management and price management are also stakeholders to keep the enterprise poised for
expected to benefit greatly from big data initiatives. continuous transformation.
Big data analytics will enable more intelligent use
of channel data, and a digitized supply chain will OO People-centric digitization: Digitization
more effectively combine transactional data with efforts must focus on the people who make
interactional data to enable new forms of connec- business happen. Decisions should be guided
tivity and manufacturing.17 Leaders will be able to by the company’s culture; if the organization
interpret signals in the supply chain and transmit moves too fast, it risks alienating traditional
them to the right person at the right time to make thinkers and skeptics, but if it moves too slowly,
the right decision. it risks market irrelevance. The imperative is to
get employees thinking positively about digital.
Meanwhile, 3-D printing’s print-on-demand
capability is set to have a massive impact on the OO New skills: Data scientists, business and data
industrial economy in terms of savings in logistics analysts, data visualizers, big data program-
and inventory. The economic implications of this mers, data architects, behavioral scientists and
technology will amount to $550 billion a year by academic researchers will all be key to creating a
2025, according to McKinsey & Co.18 digital future.
Preparing for complexity: Digital enter-
Preparing for the
OO
prises are based on a complex environment, full
Digital Future of sensors sending and receiving data. To excel
amid this complexity, enterprises will need to
While the specifics of digital enterprises will vary
support product digitization with equivalent
by industry, the fundamentals of getting it right are
process digitization.
consistent for everyone. End-to-end process digiti-
zation is not just about the technology that binds a OO Managing structural transformation:
multitude of devices into a coherent whole; it also End-to-end process digitization requires large-
involves the organization’s culture, its present and scale and holistic change across the organiza-
future workforce and, importantly, its leaders. tion. Many enterprises will appoint a chief
digital officer — a seasoned and savvy individual
Some important factors of successful digitization
with a mix of the right leadership and technical
are:
skills — to oversee this change. Alternatively,
OO A robust enterprise architecture: individual business units could run their own
Continuous adaptation to a changing business digitization efforts using a shared infrastructure.
environment requires an agile and elastic digital
IT architecture, as well as an increasing array
Footnotes
1
“Connections Counter: The Internet of Everything in Motion,” Cisco, July 29, 2013,
http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342.
2
“Wearable Electronics Market to Hit $8 Billion Value by 2018,” PR Newswire, Aug. 18, 2014,
http://www.prnewswire.co.uk/news-releases/wearable-electronics-market-to-hit-us8-billion-value-
by-2018-271697591.html.
3
“The Zettabyte Era: Trends and Analysis,” Cisco, June 10, 2014, http://www.cisco.com/en/US/
solutions/collateral/ns341/ns525/ns537/ns705/ns827/VNI_Hyperconnectivity_WP.html.
4
“Global Big Data Market to Be Worth $48.3 Billion by 2018,” Transparency Market Research, June 4,
2014, http://www.transparencymarketresearch.com/pressrelease/big-data-market.htm.
5
“Worldwide Advanced and Predictive Analytics Software 2014-2018 Forecast and 2013 Vendor Shares,”
IDC, June 2014, http://www.idc.com/getdoc.jsp?containerId=249054.
Cognizanti • 136
Paul Roehrig and Ben Pring, “The Value of Signal and the Cost of Noise,” Cognizant Technology
Solutions, October 2013, http://www.cognizant.com/InsightsWhitepapers/The-Value-of-Signal-and-
the-Cost-of-Noise-The-New-Economics-of-Meaning-Making.pdf.
7
Thor Olavsrud, “How Cloud Computing Helps Cut Costs, Boost Profits,” CIO, March 12, 2013,
http://www.cio.com/article/2387672/service-oriented-architecture/how-cloud-computing-helps-cut-
costs--boost-profits.html.
8
Louis Columbus, “Roundup of Cloud Computing Forecasts and Market Estimates, 2014,” Forbest,
March 14, 2014, http://www.forbes.com/sites/louiscolumbus/2014/03/14/roundup-of-cloud-comput-
ing-forecasts-and-market-estimates-2014/.
9
“Enterprises Harness Social Networking for Increased Agility and Responsiveness,” Frost & Sullivan,
March 13, 2014, http://www.frost.com/prod/servlet/press-release.pag?docid=289562565.
10
“Enterprise Social Software Market 2014-2019,” MarketsandMarkets, May 2014,
http://www.marketsandmarkets.com/Market-Reports/enterprise-social-software-market-568.html.
11
“How Smartphones Are Changing Consumers’ Daily Routines Around the Globe,” Nielsen, Feb. 24,
2014, http://www.nielsen.com/content/corporate/us/en/insights/news/2014/how-smartphones-are-
changing-consumers-daily-routines-around-the-globe.html.
12
Wes Nichols, “Advertising Analytics 2.0,” Harvard Business Review, March 2013,
http://hbr.org/2013/03/advertising-analytics-20/ar/1.
13
“Data Equity: Unlocking the Value of Big Data,” Center for Economics and Business Research, April
2012, http://www.sas.com/offices/europe/uk/downloads/data-equity-cebr.pdf.
14
Jeremy Cox, “Ovum Finds Competition for Customers Hotting-Up as CRM and E-commerce Are Set to
be Fastest Growing Enterprise Applications,” Ovum, July 2014, http://www.ovum.com/press_releases/
ovum-finds-competition-for-customers-hotting-up-as-crm-and-e-commerce-are-set-to-be-fastest-growing-
enterprise-applications/.
15
Francesco Banfi, Boris Gbahoué and Jeremy Schneider, “Higher Satisfaction at Lower Cost: Digitizing
Customer Care,” McKinsey & Co., July 2013, http://www.mckinsey.com/client_service/marketing_
and_sales/latest_thinking/digitizing_customer_care.
16
Tim Smedley, “Forget the CV; Data Decide Careers,” The Financial Times, July 9, 2014,
http://www.ft.com/cms/s/2/e3561cd0-dd11-11e3-8546-00144feabdc0.html#axzz3Ajs5Yg6c.
17
Lora Cecere, “The Role of Analytics in the Race for the Supply Chain of the Future,” DataInformed,
Sept. 24, 2013, http://data-informed.com/role-analytics-race-supply-chain-future/.
18
Daniel Cohen, Matthew Sargeant, Ken Somers, “3-D Printing Takes Shape,” McKinsey & Co., January
2014, www.mckinsey.com/insights/manufacturing/3-d_printing_takes_shape.
19
Nick Vitalari, William Strain, Haydn Shaugnessy, “Creating Elastic Digital Architectures,” Cognizant
Technology Solutions, Elasticity Labs and Tammy Erickson Associates, September 2012,
http://www.cognizant.com/InsightsWhitepapers/Creating-Elastic-Digital-Architectures.pdf.
Author
Akhil Tandulwadikar is a Senior Researcher working in the Cognizant Research Center. He can be reached at
Akhil.Tandulwadikar@cognizant.com.
Acknowledgments
The author would like to thank Reshma Trenchil, a Senior Manager in Cognizant’s thought leadership
group, for her contributions to this article.
Code HaloTM is a pending trademark of Cognizant Technology Solutions.
Note: The logos and company names presented in this article are the property of their respective trademark
owners, are not affiliated with Cognizant Technology Solutions, and are displayed for illustrative purposes
only. Use of the logo does not imply endorsement of the organization by Cognizant, nor vice versa.
14Digitizing Business Process
Why Smart Hands
and Machines Will
Power the Second
Industrial Age
By Robert H. Brown
With digitally-fueled automation likely to wreak
Whether your organization
industry-wide change everywhere, will most
completely digitizes its humans effectively be “out of a job” by the end of
the decade? Hardly. Imagine instead a future where
business processes or takes a
functions become intelligent through technology,
one-off approach, advances allowing humans and digital processes to put their
heads together to create a more intuitive, more
in foundational information
responsive enterprise. And through that collabora-
technology, process tion, better business results will be delivered via
new digitally encoded processes.
automation and analytics, as
well as machine intelligence, Historical Precedent
will unleash the potential Informs the Future
for more productive and Movement of People,
innovative ways of working. Goods … and Information
Consider an analogy from the mid-19th century,
The ever-increasing digital intensity of work has when business entered the Industrial Age for good.
brought us to a profound inflection point in the The first transcontinental railroad was the emblem
way critical business services will be sourced and, heralding the shift from the Agricultural Age to
more importantly, delivered. For starters, advances the Industrial Age, and it created new, unforeseen
in technology, automation, interconnectedness, functions, jobs and economic possibilities. In
user experience, process analytics and machine terms of outcomes, people could get other people,
intelligence have finally aligned to redefine and goods, services, things — and importantly, informa-
reshape the very nature of work. And over the tion — from point A to point B in a radically more
next decade, disruptive changes are forthcoming efficient and effective way.1
on the order of magnitude of a second Industrial
Revolution.
Cognizanti • 17We’re at a similar juncture today. It’s not a stretch to a health payer about the correlation between
to say that the impact of SMAC technologies (aka the level of care a patient receives and her wellness
social, mobile, analytics and cloud) on business (e.g., a $50 co-pay for a doctor’s visit vs. a $1
processes feels like the 21st century version of rails, million heart transplant).
steel, telegraph poles and locomotive engines.
We’ve started to see the metaphorical digital track When a doctor or nurse is given paperless
being laid and tunnels being blasted. And, like the mechanisms to create the claim as “digital”
railroad, the impact will be at a scale not previously from the outset, qualitative and quantitative
seen before in the history of business. benefits across the industry value chain emerge
We’ve started to see the metaphorical
digital track being laid and tunnels being
blasted. And, like the railroad, the impact
will be at a scale not previously seen
before in the history of business.
But much as trains need a destination, business in tandem with the caregiving process. These
processes — digital, or otherwise — are useless if include increased speed (or elimination) of claims
they don’t support a business strategy. That means management, improved accuracy and consistency,
helping smart people make smarter decisions in and compliance.
support of differentiating activities.
In addition to better patient care, other benefits of
digitization, automation and Code Halos include
Maximizing Digital improved results of clinical trials, increased
Processes by Connecting accuracy of clinical trial yields and improved
judgment and decision-making of physicians, such
Industry Value Chains as avoiding the wrong combinations of pills when
Signs of a powerful interplay of knowledge workers prescribing medications to patients. All of these
and digital processes are already evident on the advances help accelerate and improve the precision
road to 2020. This is especially true when you of regulatory approval for new and powerful drugs.
look at middle- and front-office processes within
industry value chains. Consider a day when Facebook, Amazon or
Google reveal that they have acquired, partnered
Take healthcare and the ecosystem of dependent or otherwise developed digital processes that
processes among medical providers, payers and facilitate the discovery of new drugs that cure
pharmaceuticals companies. For a healthcare cancer. That would be a definitive milestone for
payer, a claim is the “main character” in the humanity — a signaling event — far surpassing
insurance process story that passes from a patient, the “driving of the golden spike.” But it would
to a doctor, and then to the insurance company to also change the pharmaceuticals industry forever,
be paid. It becomes powerful when wrapped with prompting competitors to clamor for a response,
a Code HaloTM (i.e., the digital data that accumu- as fast as possible, in search of cures of a similar
lates around people, processes, organizations and magnitude.
devices).2 For instance, think of how a patient
Code Halo, rich with metadata that captures the So to prepare for these coming new digital realities,
individual’s vital signs, offers meaningful insights the journey to the future of process needs to
18begin today, by imagining how work will get done truly transformational, “Big D” process digitiza-
tomorrow. And to be sure, most organizations will tion — that is, re-imagining and instrumenting a
need to walk before they can run down the path to process from its beginning to harness the power of
the future. code. Truly digital processes can use Code Halos
to automate processes right from the outset, but
the real prize is the data that’s produced as a result.
‘Big D’ and ‘Little d:’ Information and meta-data in Big D processes are
Digitization at the inherently “born as digits.” And as physical value
chains digitize, process feedback and analytics
Process Level become instant. Open process loops are closed
Some simple questions to ask include: “How faster. Insights come faster. Traceability, tracking
do I eliminate paper-based process inputs, such and auditability are enhanced.
as invoices or claims, and make my process
truly ‘digital’ from the outset?” “Are the people Today, delivery models such as business process as
delivering my processes today adding value, or a service (BPaaS) probably come closest to making
injecting risk?” “What are we learning about our the promise of Big D digital processes a reality.
business or industry value chain as data is applied While many BPaaS offerings are almost entirely
to process-level algorithms, and is it facilitating automated, their outputs are leveraged to help
people to make better judgments?” process and knowledge workers make quicker,
Truly digital processes can use Code
Halos to automate processes right from
the outset, but the real prize is the data
that’s produced as a result. Information
and meta-data in Big D processes are
inherently “born as digits.”
Many companies are talking about, and in limited more informed business decisions, using a model
instances actually using, “RPA” (robotic process that’s typically less costly than traditional sourcing
automation) today. Think of this as “little d” options.
digitization of information inception (such as
e-invoicing, or optical character recognition). As By automating systems to better sense, predict
part of this, some organizations are running batch and deduce the data they consume, employees can
process or presentation-layer macros that automate work heads up, not down, with intelligence from
pieces of end-to-end workflows (using software digital processes supporting their own knowledge
providers such as UI Path, WinAuto, Blue Prism, and experience. And the ability to capture infor-
Automation Anywhere, etc. that rely on those mation about the movements of people, goods,
process inputs). Commonly, automation at this information and services through space and time
level is an “inside-out” play — simply an incre- is allowing leading-edge businesses to re-imagine
mental improvement on existing, intra-enterprise processes as digital from the outset. Consider
processes. In railroad terms, RPA is the railroad the Internet of Things, in which sensors — sure
spur in the switchyard. to include nanotechnologies in the near future
— are beginning to totally digitize and automate
But there may be a gnawing concern that “little processes in a straight-through data flow.3 Those
d” automation initiatives like RPA fall short of
Cognizanti • 19companies that harness these types of digital OO Perform an automation readiness
technologies to recombine and drive innovation assessment: Map processes to a level of detail
in their business processes will out-compete those that includes inputs, process and outputs. Scan
who can’t — or don’t — for years. the market for tested and ready-to-implement
technologies that have established tangible
Steps to Take Now, proof of success. Apply “little-d” automation
technologies that are minimally invasive to
On the Journey to the operating environments today, but keep your
Future of Process eye on the prize for where “Big D” transforma-
tion makes most sense tomorrow.
Business process leaders can take practical action
now to get their digital process train on the right OO Help humans evolve toward the work of
track: tomorrow: Start by giving employees access to
digital processes and machines that help them
OO Analyze your company at the process do their jobs better, smarter and with more
level: Review in detail your processes as they meaningful impact to the business. It’s not
exist today (new product/service development, about the number of people tied to “doing the
sales and customer relationship management, process”; it’s about outcomes and making smart
operations, etc.). Infuse a digital process plan, people even smarter.
including the applicability of Code Halos, by
re-imagining moments of customer engagement To get to the future of process, don’t wait. Start
or constituent journeys. Target tangible process today, by imagining how the future of work will
metrics: cost-per-claim, clinical trial yield, look tomorrow when digital machines, informa-
healthcare unit cost, fraud prevention rates, etc. tion and processes help humans do their jobs
better, faster and with greater impact.
Footnotes
1
Before it fell into collapse, historians believe the Roman Empire was tantalizingly close to having
discovered the steam engine in the 1st century AD; the first recorded rudimentary steam engine being
the “aeolipile” described by Hero of Alexandria. Had his invention come a century – or even decades –
earlier, it is arguable that 1,000 years of Dark Ages could have been circumvented, and the Industrial Age
and Information Ages accelerated by one millennium.
2
For more on Code Halos and innovation, read “Code Rules: A Playbook for Managing at the
Crossroads,” Cognizant Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/
Documents/code-rules.pdf, and the book, “Code Halos: How the Digital Lives of People, Things, and Orga-
nizations are Changing the Rules of Business,” by Malcolm Frank, Paul Roehrig and Ben Pring, published
by John Wiley & Sons. April 2014, http://www.wiley.com/WileyCDA/WileyTitle/productCd-
1118862074.html.
3
Our book Code Halos refers to “amplifiers” for digitization (Chapter 4, pages 38-40). The best-known
ones include laptops, location-aware mobile apps, wearables like the Apple Watch, Google Glass or Nike
Fuelband and – increasingly – the Internet of Things (i.e., Google Nest).
Author
Robert Hoyle Brown is an Associate Vice President in Cognizant’s Center for the Future of Work and drives strategy
and market outreach for the Business Process Services Practice. He is also a regular contributor to the blog www.
unevenlydistributed.com, “Signals from the Future of Work.” Prior to joining Cognizant, he was Managing Vice
President of the Business and Applications Services team at Gartner, and as a research analyst, he was a recognized
subject matter expert in BPO, cloud services/BPaaS and HR services. He also held roles at Hewlett-Packard and
G2 Research, a boutique outsourcing research firm in Silicon Valley. He holds a Bachelor of Arts degree from the
University of California at Berkeley and, prior to his graduation, attended the London School of Economics as a
Hansard Scholar. He can be reached at Robert.H.Brown@cognizant.com.
Code Halo™ is a pending trademark of Cognizant Technology Solutions.
20Digital Banking
Get Ready to Meet
Your Customers
By Steven DeLaCastro
The strategy that your bank adopts to guide
New data modeling and
its digital evolution through 2020 and beyond
predictive analytics depends on the data, analytics and direction it
wants to pursue.
techniques are emerging to
help banks create insightful Thinking Big
digital strategies that map New channels require new ideas. Imagine
to their business objectives presenting contextual offers to customers at their
preferred point of consumption, for example. Or
and strengthen customer issuing merchant-funded, digitally redeemable
relationships. offers to customers as they pay for purchases with
mobile wallets or debit cards. Or using geolocation
services to generate custom offers.
Make no mistake: Getting to know customers is a
major undertaking for banks. It requires extensive Fully digital channels also require a new value
analysis, development of consistent channels proposition: Banks and customers swap informa-
and constant encouragement to use lower cost tion more freely. Consumers’ digital lives have
channels like mobile and online. changed the rules of banking: They expect person-
alized options — lots of them — and they want them
No wonder banks have relied on guesswork for now. In exchange, many are happy to reciprocate
so long. But guesswork is expensive. By finding by divulging important personal details. According
out who their customers are and then mapping to one recent study, 70% of bank customers are
that information to business objectives, banks willing to trade information about themselves for
can skip the speculation and create the personal- greater personalization or better service.1
ized customer experiences that are the hallmark of
online channels. That free exchange of data forms the heart of
customer centricity and the future of digital
The first step is developing the underlying data channels. The more data that banks have on
techniques. Equally important is converting the customers, the greater their opportunities to
data and newfound customer focus into business make use of Code Halos2 and deliver personalized
results. Data enables banks to map for multiple products and offers.
objectives, such as attrition and market penetra-
tion. It also allows bank of all sizes to benefit from
micro-segmentation.
Cognizanti • 23Developing the Underlying Convert Customer Focus
Data Techniques to Business Results
With mass marketing still in force at most banks, How can banks convert customer journey maps
how can banks begin driving the customer journey to real business results? Because journey maps
through digital channels? Data techniques are uncover many data points, they serve as a form of
key. Engaging customers means understand- computer modeling to determine the likelihood
ing who they are — or who you want them to of occurrences. Organizations can accurately
be — by creating customer personas. Personas are predict customer behavior rather than operate on
detailed, multi-dimensional representations of guesswork. The more variables tracked, the more
your customers and prospects that illuminate their accurate the predictions will be.
motivations and propensities. They are instrumen-
tal in shaping products and marketing strategies Banks can map for multiple objectives, including
and determining customer needs and preferences. attrition, market penetration and channels of
preference. For example, journey maps can
Engaging customers means understanding
who they are — or who you want them to
be — by creating customer personas.
While personas identify your customers’ quantify the likelihood that customers with specific
attributes, customer journey maps let you walk in attributes will buy new products or determine
their shoes. Journey maps are powerful visual tools which customers are likely to be most receptive to
that trace customers’ steps as they travel through fully embracing self-service channels (see Figure 1,
key banking activities, such as opening accounts, next page).
exploring additional products and services, and
resolving problems. Micro-segmentation is an important outcome of
journey mapping. It enables banks with sophis-
Journey maps provide the big picture. They ticated IT functions to tweak and personalize
deconstruct banking processes from the outside in: products and services right down to the level of
Instead of viewing customer experience from an individual customers. For example, a customer
organizational point of view, journey maps follow may prefer text-only communications, require
customers through channels, decision paths and, preemptive notification of cyclical account activity,
perhaps most importantly, emotions. and be interested in an auto loan.
For many banks, journey maps are eye-openers. But the strength of journey mapping is that it
Having never traveled as customers through their allows any bank to benefit from micro-segmen-
organization, many institutions only guess at the tation, regardless of its technology capabilities.
routes consumers follow, and they often find the Small- and medium-sized banks, for example,
reality is quite different from what they imagined. can use journey maps to expand the number of
Barriers become apparent. Frustrations are noted. segments they target from a handful to several
The customer journey is frequently revealed to be dozen.
far less linear than organizations realized, requiring
customers to switch channels for positive and
negative reasons.
24Typical Steps for Creating a Journey Map
A journey map shows what the customer is trying to
accomplish at each stage of the process.
Deliver Insights
Map the Journey
•for
Develop strategies
proactive
Collect Data •journey.
Map the customer interventions with
customers.
Create a Lens • Collect data. •goals
Identify customer
at each
• Make recommen-
dations as to the
Define
Create a Interactions
•perspectives
Gather stakeholder touchpoint. appropriate
Touchpoint •filter
The lens is the
through
at
each touchpoint. •and
Define roadblocks
decision points
predictive analytics
to implement.
Inventory
• Define all
which you view
the customer
•customer
Define the
•opportunities,
Identify the
interactions risk
journey. experience at areas and calls
• touchpoints.
Catalog all that can occur at
each touchpoint. •various
Define lens for
segments.
touchpoints. to action.
•nature
Identify the •each
Quantify risk at
interaction
of each
point.
touchpoint.
• Identify how
customers
encounter each
touchpoint.
Figure 1
Encouraging the Right Five Steps to Becoming
Channel for Each Customer-Centric
Customer Moving toward micro-segmentation and arriving
at personalization is an evolutionary journey.
By better understanding the customer journey,
The customer-centric strategy your bank adopts
banks can encourage more efficient channel use.
to guide its evolution depends upon the data,
They can empower consumers to take advantage
analytics and direction it wants to pursue.
of the channels that make the most sense for
Objectives might include increasing market share,
them, whether it’s digital channel conveniences or
penetrating new markets or lowering costs. Other
hands-on attention that human-assisted channels
goals might be reducing attrition, improving
provide.
product take-up and increasing loyalty.
For example, by determining the information that
It is important to start small and show early
customers regularly request and then proactively
success, gradually building your program and fine-
providing it, banks can predict and preempt the
tuning it based upon your findings and successes
use of human-assisted channels for the low-value
as you go.
interactions that mobile and online channels
process much more fluidly. Here are five steps your bank can take to begin
creating insightful digital strategies and channels:
Conversely, banks can offer mutually beneficial
encouragement for use of human channels. By 1. Evangelize the need for increased
funneling customers with little digital propensity customer insight and the types of
as well as those with high-value interactions (such data and process-sharing it requires.
as financial advice and complex sales) toward the Determine inherent organizational constraints
costlier hands-on channels, they strengthen those to sharing customer data across lines of
relationships that genuinely require individual business. Examine siloed channel processes
assistance and improve operational efficiency. such as line-of-business-based call centers.
Cognizanti • 25Identify the changes that will work in your envi- IT buy-in is essential. A key task is balancing
ronment with the least initial disruption. short- and long-term goals. How will your
organization build its infrastructure, platforms,
2. Determine potential sources of data
applications and support to meet its objectives?
from all channels. Prioritize the highest and
lowest cost channels, as they will yield the most 5. Examine must-have analytics capabili-
benefit from the least effort. Audit the data ties and tools. Analytics is the cornerstone
sources for availability and suitability. Assess for achieving greater insight into customer
data gaps and determine remediation. Create a propensity and preferences, as well as for cor-
data strategy that supports your objectives. relating the data needed to achieve a suitable
degree of digital segmentation.
3. Assess the organizational changes that
may be required. Reinventing your bank Many of the standard technologies no
for greater customer focus can require organi- longer do the job for banks when it comes to
zational change to support the new objectives. predictive analytics. Understanding the new
Dismantling siloes is hard work, typically options is a top priority. Be sure your organiza-
involving retraining and functional role modi- tion has a plan for integrating the new function-
fications. How will your organization evolve ality with its existing data sources.
in response? To ensure your bank is ready,
follow best practices for organizational change While banks have lagged behind their retail
management. industry counterparts in embracing digital — and
retailers’ successes have raised customers’ expecta-
4. Review your existing technology against tions for online experiences — banks need to cater
your short- and long-term objectives. to the new digital reality as it continues to evolve
Customer-centricity isn’t just about reframing and accelerate.
existing processes; it also involves reinventing
customer-facing processes through the use of
techniques such as customer journey mapping
and new technologies.
Footnotes
1
“Cisco Customer Experience Report,” Cisco Systems, Inc., April 22, 2013, http://newsroom.cisco.com/
release/1174098.
2
For more on Code Halos and innovation, read “Code Rules: A Playbook for Managing at the
Crossroads,” Cognizant Technology Solutions, June 2013, http://www.cognizant.com/Futureofwork/
Documents/code-rules.pdf, and the book, “Code Halos: How the Digital Lives of People, Things, and Orga-
nizations are Changing the Rules of Business,” by Malcolm Frank, Paul Roehrig and Ben Pring, published
by John Wiley & Sons, April 2014, http://www.wiley.com/WileyCDA/WileyTitle/productCd-
1118862074.html.
Author
Steven DeLaCastro leads Cognizant’s Banking and Financial Services Business Unit’s global digital banking
program, “Bank of Tomorrow … TodayTM.” With a wealth of expertise in bank technology and operations, software,
services and consulting, he has held the titles of Chief Information Officer, Chief Operating Officer, Senior Vice
President, Managing Director, General Manager, EMEA Sales Director, Regional Country Manager, Partner
and Managing Partner. Steven holds an M.B.A. and a BSc. in business administration with concentrations in
operations, finance and psychology. He can be reached at Steven.DeLaCastro@cognizant.com.
Acknowledgments
The author would like to acknowledge the Bank of Tomorrow …Today team for its invaluable contributions.
Code HaloTM is a pending trademark of Cognizant Technology Solutions.
26Client Commentary
Retail Banking in a
Code Halo World
By Amy Brady
social, mobile, analytics and cloud technologies
By leveraging data and
— the SMAC StackTM. Digitization 1.0 entailed
analytics, Key Bank can moving existing banking capabilities to the
Internet to streamline and enable customer inter-
better understand customer
actions, 24x7. The impact to banking processes
preferences and behaviors was minimal. Social, mobile, analytics and cloud
have the potential to change things, from customer
and deliver tailored offers,
interactions all the way to the end of the business
services and solutions. process.
As we continue our journey with data and analytics
Retail bankers are redefining convenience in high- – and leveraging Code Halos — we are developing
stakes bids for customers. Let’s face it — customer different ways to discern our customers’ unique
expectations have changed dramatically in just the needs and preference so we can offer services that
past decade. It’s no longer enough to offer banking we believe our customers value. As we develop
via the Web, mobile device or app. Such services these data capabilities, we can better understand
are mere table stakes. customer preferences and sentiments by capturing
and analyzing their social media interactions and
Above all, customers value clear and simple their previous transactions/interactions with us.
solutions to their personal financial challenges. And we can marry these insights with third-party
Customers want banking to be easy. They demographic data to understand what people like
expect — in fact, demand — an engaging, intuitive them need and want from a bank like ours. At that
and consistent experience across all channels, point, we can make offers and deliver services as if
including when they visit the branch, dial a they were a market of one rather than a number in
support center or engage in an instant chat session. a large demographic.
There is no way to deliver this experience without How will we do this? By seeing customer Code
fully digitizing critical internal and external Halos and distilling meaning from intersec-
processes across the front-to-back office. And tions with our processes and people. We can
from where I sit, Code Halo thinking1 is critical to create customer profiles that can be used across
transforming today’s loose assortment of digitized channels to ensure that we do not ask customers
assets into a coherent, interconnected ecosystem time-consuming and frustrating questions for
that provides true value to banking customers by which we already have the answers (like home
offering expertise that stems from anticipating address, account numbers, preferred language and
customer needs, wants and desires before a single channels). We reward them with offers that fit
request is articulated, input or even swiped. their preferences and requirements, not ours. We
proactively alert them on unauthorized or unrec-
Decoding and applying meaning from the data
ognized behavior, helping to keep them secure,
swirling around people, processes, organizations
confident and loyal.
and devices is something we are seriously applying
to our digital business transformation. Getting
there requires a strong IT foundation built on
Cognizanti • 27Consider this simple scenario: We see out-of- SMAC technologies are not only increasing our
state credit card transactions for a customer who ability to digitize our business; they are allowing us
typically transacts in Ohio, perhaps in another to increase speed and agility. In fact, actions that
region of the country or the world. An integrated typically take hours or days to complete pre-SMAC
ecosystem that leverages SMAC capabilities (a question on a credit or debit issue, loan status
enables us to see this in real time. We then alert or a product offer) will be handled by customers
the customer to verify whether the transaction is themselves, across channels, in real time. We
valid. As our call center staff solidifies and protects believe this will provide significant value to our
the relationship, they can also share advice on customers, as well as enable operational efficiency
credit card protection online, or offer an incentive and cost savings for Key.
for procuring additional safeguards from us.
Increased digitization will connect our
customers to our online support, branches
and call centers as if those banking
channels were one channel.
Beyond protecting customer assets, we find While SMAC technologies are core to enhancing
relevant and timely reasons to reach out and the client experience, these capabilities also
engage with customers by offering targeted deals enable true end-to-end transaction processing.
based upon our “data-enabled” understanding This process transformation requires not only
of their needs. This helps us to provide tailored technology change, but also an evolution in our
solutions and remain top-of-mind. In retail approach to business processes, as well.
banking, mindshare translates into market share as
measured in terms of share of wallet. I see Code Halo thinking as a way to drive transfor-
mative change across the retail banking landscape.
The challenge in all of this is to make sure we By embracing a digital architecture end-to-end,
apply predictive analytics and data insights in ways banks can work proactively and unlock insights
that create customer intimacy while maintaining and foresights contained in data intersections.
customer privacy and avoiding the perception of These insights and foresights can help banks
being invasive. provide services that banking customers truly
value.
Digital Empowerment Such a capability is critical in our business, where
Code Halo thinking and digital business trans- rival services are a click, swipe, phone call or
formation also benefit customers by empowering instant chat away. Therefore, we must become
them to work with us when, where and how omniscient, internally and externally, and
they want. Increased digitization will connect proactively deliver offers and services by reading
our customers to our online support, branches our customers’ minds. Code Halo thinking is
and call centers as if those banking channels integral to knowing, rewarding, protecting and
were one channel. This interconnection will empowering our customers. We are convinced that
enable customers to seamlessly move among the connecting and making meaning from Code Halos
channels as they choose – allowing them to easily is a critical component to solidifying and extending
interact with us and to see and resolve issues for our standing among the country’s major
themselves. regional banks.
28You can also read
