"It is important to look at both – the ones that succeeded, and the ones that failed as well"- Martin Kuppinger, Founder and Principal Analyst, KuppingerCole Analysts.
Learn from his insights on how you can update your business with digital transformation and preserve the interest of customers.
In your opinion what Industry(s) have the most achievements in terms of digital transformation and innovation? How decision-makers from insurance and finance can learn from it?
Digital Transformation is not a new thing. Amazon is already 25 years old, and it digitized not only book stores. Thus, there are many stories about successfully transforming into the digital age, as well as great failures such as Kodak. My perspective is that it is important to look at both – the ones that succeeded, and the ones that failed.
However, even more important is taking the perspective of the consumer and the customer: What to they want, how can you serve them? If you do that right, you will succeed. If you just try to retain your traditional business models, your corporate culture, and just put a little of a digital “skin” around it, you will fail.
Can you share a short process to analyze the technology of a business that will make executives and managers convinced and say “we need a new tech department”? You might also want to share some use cases you encountered that would be the best sample for this?
I would rather say: Don’t create a new tech department. You will inevitably fail. Look at all the “digital units”, decoupled from the main organization. This is the wrong approach.
You must change the DNA of your business. Digitize the business. Create a vision, convince people that the new digital business is the better way. Microsoft shifted consequently to pay-per-use and as-a-service models, and the earn more than ever before. They took a risk, but they succeeded. Think radical, don’t try to keep dying services and products alive, but reinvent your business.
For financial services, there is another aspect to look at: You are the face to the customer. Do everything to remain in that position. That means that you need to serve them perfectly well, with modern apps and technology, for all of the financial services they need. That will make you a winner. You will become a loser if you only provide backend services to the new stars in the financial service business. Be the portal, the entry door – to all financial services, beyond yours.
What are the technologies you think that will make a huge impact on the insurance and finance industry in the next 3 to 5 years?
Digital Identity, because it is about making consumer customers and serving them well. IoT, because Consumer IoT devices are ubiquitous. Blockchain, if used right, in the right place – for simplifying KYC, for many other use cases.
We’re now having a generation of buyers with no product loyalty – some say IT is one of the riskiest industry now – what’re your 2 cents on this? And how other industries can learn from this?
Consumers are loyal as long as they are served well. The challenge is that they have more choices. Customer loyalty in the past was frequently based on a lack of choice. With other words: Treat your customer well, think outside-in – from the customer, not from the business. If you serve the customer well, he (or she) will be loyal.
Please excite us more with KuppingerCole Analysts AG? How do you help your clients?
For CIOs and CISOs in the era of Digital Transformation it is very important to have a clear understanding of both technology and markets. This enables them and their teams to fine-tune their own strategies and projects as well as to avoid costly mistakes in choosing vendors and solutions.
KuppingerCole offers a wide range of reports, consulting options and events that supports CIOs and CISOs with high-level market knowledge and comprehensive expertise within these core areas.
Providing IT Professionals with a clear understanding of both technology and markets to enable them to fine-tune their own strategies and projects as well as to avoid costly mistakes in choosing vendors and solutions. Our commitment is to focus on what business really needs from IT, with the desire to assist you in improving IT alignment and overall business performance.
Our main objective as an analyst company is to be perfectly informed about the current market status, relevant vendors and products at all times.
Our new KC PLUS research area offers a broad range of vendor-neutral information, extending from Product Reports, through Technology and Trend Reports, to extensive market analysis for individual segments.
We organize conferences, summits, workshops, meet ups and webinars in all fields of identity, focused on Information Security, Cybersecurity, IAM, Cloud, Digital Risk and Digital Transformation. Our conferences are leading events for innovative leadership as well as best practice and cover current and future topics regarding the challenges in digital business. Benefit from the invaluable content of our events and join the series of keynotes, discussions, round tables, best practice presentations and workshop sessions. Gain knowledge to make better product and service decisions for your business.
As tech person please share your top must read 3 books and 3 gadgets that never left your side.
Books: It is more quick reading on the internet. My must read book still is Dolphin Strategies by Lynch/Kordis.
And it is still worth reading Hammer/Champy on Business Reengineering, specifically the first section, where they say that you should not document all existing processes in detail, but look at input and output and figure out the best way to go from input to output.
Gadgets: None. A few apps that really are helpful, such as the one for the German railway. If gadget, then my Amazon Kindle.
Your inspiring messages to those young people who want to enter the high-speed spinning world of technology.
Given that I’m not as young anymore: It is worth listening to the elder, experienced ones. They might not be as digital, but they have learned many lessons in their life.
KuppingerCole Analysts Europe’s leading Analysts on the topics of Information Security in the era of Digital Transformation
KuppingerCole Analysts, founded in 2004, is an international and independent analyst organization headquartered in Europe. The company specializes in offering neutral advice, expertise, thought leadership and practical relevance in Information Security, Identity & Access Management (IAM), Governance (IAG), Risk Management & Compliance (GRC) as well as all areas concerning the Digital Transformation.
KuppingerCole supports companies, corporate users, integrators and software manufacturers in meeting both tactical and strategic challenges. Maintaining a balance between immediate implementation and long-term viability is at the heart of KuppingerCole’s philosophy.