May 06, 2020 Tweet. Trending Topics Article Managing large technology programs in the digital era November 25, 2020 – To ... November 11, 2020 – Transformation success requires thoughtful mastery of multiple disciplines and coordination of many moving parts. to invest in it more in response to COVID-19. Try removing some filters. The McKinsey report estimates that 375 million workers globally will either need to switch occupations or acquire new skills by 2030. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject.. Here’s the intro: Next-gen Technology transformation in Financial Services. McKinsey’s Berlin Experience Studio 2.0. Lohmühlenstraße 65 12435 Berlin Germany. Definitely food for thought …, I woke up yesterday to find this story on Sifted, the Financial Times newish platform …, A damning report blames @TheFCA for failing to protect 11,625 people who lost an average £20,000 when London Capital & Finance collapsed. Give the system the freedom by removing some of the vanity metrics but also create commissioning policy and payment model that is purpose-built for digital-first, citizen-centric services. The cloud is revolutionizing how businesses create value, but only when tech organizations, and the business, understand how to use it and change how they operate. Digital upends old models. Save. Optimizing the transformation agenda for 2020 and beyond. Very useful. Executives who possess a solid understanding of the basics can ensure they’re making the right investments in their tech stacks and teams to build reliable solutions at scale. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. 6 Digital transformation for 2020 and beyond. For two decades, Linda has helped organizations around the world with digital transformation particularly in the areas of design thinking, big data and analytics, portfolio management, and agile delivery. You cannot swallow an elephant in one gulp. We'll email you when new articles are published on this topic. Post. Yes, we can … ish […]... Weekly Analysis & Opinion Highlights - 14 December 2020 - Holland FinTech: […] With the BNPL platforms market reaching over US$7billion valuation in... How President Obama solved the financial crisis, The Finanser’s Week: 16th November – 22nd November 2015. Next-gen Technology transformation in Financial Services. Get PDF. Print. We hope this collection is helpful in framing and shaping this journey. ... McKinsey, Accenture And Everyone Is Right About Digital Life After COVID-19. From there, you find a series of different thought pieces from different perspectives both within and without McKinsey. We’ve created an interactive guide to help. Now, I know many of my readers will disagree with me here, but I do not advocate Big Bang change. Contrary to popular belief, digital transformation is less about technology, and more about people. To learn more click, McKinsey on digital transformation in banking (free research), Regulation is meant to strangle innovation, Can we change The System? McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Here is a summary of some of their most important advice around this topic: Digital transformation is a … Learn about I totally believe that core systems need to be modernised, replaced and restructured. I also do not advocate starting over. -. Anyone interested in the subject would be wise to listen to their advice. Believe me [Bo]. February 2020 | Shubham Singhal. on Spreaker. That’s the greenfield thing, and that’s wrong too. By using this Site or clicking on "OK", you consent to the use of cookies. So, the choice is: do we have to replace our core systems? People create and sustain change. Buy Copies. If yes, do it gradually. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. our use of cookies, and Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Digital transformation should not be handed off to consultants. Interview Almarai working with McKinsey and SAP on digital transformation 23 November 2020 Consultancy-me.com Founded in 1977 by the two Irish brothers in collaboration with Prince Sultan bin Mohammed bin Saud Al-Kabir (who is currently the chairman of the board), today Almarai is one of the globe’s largest dairy companies. those for traditional software solutions. Supply Chain Digital explores McKinsey’s report, “Automation in logistics: Big opportunity, bigger uncertainty” and looks at some of the key reasons why automation is transforming the industry. Direct digital transformation investment is growing at a compound annual growth rate (CAGR) of 18% from 2020 to 2023 and is expected to approach $7 trillion as companies build on existing strategies and investments, becoming digital-at-scale future enterprises. Leveraging industrial software stack advancement for digital transformation Industry 4.0 ... 2020 McKinsey EMEA IoT Summit will be held on February 27 - 28, 2020 at. LOGISTICS. Digital transformation leads to fluid departments, processes and job responsibilities, with soft skills like empathy being in high demand. IT drives digital transformation strategy, but efforts to implement and adapt to changes in the business resulting from digital transformation are a company-wide endeavour. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The pandemic has accelerated digital adoption across industries, resulting in technology service providers witnessing a sharp growth in digital deals. McKinsey outlines four digital transformation archetypes (the labels are CFO’s): 1. This need for change has now been compounded by the Covid-19 pandemic. - Learn to Leap #12. to evolving customer needs—and the competition. Interview Our flagship business publication has been defining and informing the senior-management agenda since 1964. tab. Portfolio Transformation. enablement will be crucial to launch success in the new environment. The dramatic shift to living and working online has accelerated changes across the entire business landscape, so we’ve compiled a list of must-reads to help business leaders prepare. We hear from an investor who lost £16,000 and a campaigner and the prospect for compensation from the Government @Moneybox noon @BBCRadio4, @FSClub @ZYenResearch webinars end 2020 strongly with Charles Goodhart and Manoj Pradhan on why "The Future Of Ageing Societies Will Be Nothing Like The Past" https://fsclub.zyen.com/events/forthcoming-events/future-ageing-societies-will-be-nothing-past/ - Monday, 21 Dec, 15:00, Finance Monthly Game Changers Awards 2017, Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. Select topics and stay current with our latest insights. The majority of company executives report that satisfying a specific business need is the primary catalyst for their digital transformation efforts. McKinsey & Company suggests the third step should reflect deep culture changes as long-term transformation need to be “woven into the fabric of an organisation”. Our short takes on everything from digitization to design, Our short takes on key technology and architecture topics. Please try again later. Therefore, CIOs and other executives need to accelerate and scale their technology transformation. At an MIT Sloan CIO Symposium panel earlier this year, Rodney Zemmel, global leader, McKinsey Digital of McKinsey & Company, identified December, 2019 as a time of “peak cynicism about digitization.” But then he went on to say, in 2020, “COVID accelerated the migration to digital.” Listen to "Chris Skinner, Best Selling Author and Technology Commentator." Unleash their potential. As a result, growth in digital product/service offerings has jumped ahead by an average of seven years in just a few months of 2020. iCrowdNewswire Nov 2, 20208:02 PM ET. As technologies are often complex there tends to be a communication gap in the C-suite, which can derail transformations quickly. However, it is early days—based on our experience, most are only at the beginning of their journey. The challenge they face is significant: in a competitive environment of rising cost pressures, where rapid action and response is imperative, financial institutions must modernize their technology function to support expanded digitization of both the front and back ends of their businesses. Summary. The articles are organized into three major themes: The pace of change in financial services technology—as with technology more broadly—leaves very little time for leaders to respond. One example McKinsey pointed to as proof of this is European insurer Axa, which invested €950 million in digital transformation over just two years. McKinsey is a thought leader when it comes to digital transformation. Share. up to serve consumers, despite the heightened uncertainty of COVID-19. I thought about it a bit, and realised that you really should not have these three choices. Improved organizational agility is at the heart of successful digital transformation. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Dec 17, 2020, 12:37pm EST. It’s too risky [TSB]. In some circles, "digital transformation" as a term was starting to wear out its welcome in 2019. The only way to succeed with digital transformation and maximize returns on digital projects and initiatives is to ensure that the organization’s board and leaders are aligned on the definition of digital and are able to articulate that definition in a way that the entire organization can rally around. Interactive hereLearn more about cookies, Opens in new But, then I came across this chart on page 80 about core systems replacement: The authors – McKinsey partners with first degrees – talk about the pros and cons of core systems replacement and the fact that 65 percent of the banks they surveyed are thinking about doing it. Reinvent your business. I guess 35 percent don’t give a puck. cookies, Explore all McKinsey Digital special collections. According to the report, businesses need to respond to post-pandemic related challenges by fast-tracking digital transformation, understanding the needs of the new retail consumer, protecting customer loyalty, and leveraging the power of top shopping days. NHSX – if it stays then it needs to become a problem solver. While a tumultuous and tragic 2020 will usher in a 2021 fraught with uncertainty, one thing is crystal clear: it will be a distinctly digital year. Digital Transformation: McKinsey’s Take. Key takeaways from McKinsey’s 2020 holiday shopping report. David Robinson is a Principal Consultant at ThoughtWorks. Buy another elephant? Ok A global telecommunications study 7 Sector snapshot: the paradigm shift to digital is well underway The global telecoms industry landscape is changing faster than ever. Most transformations fail. Erosion of legacy revenue streams driven by over-the-top In particular, I was shockered by the bottom-line on this chart. Something went wrong. Very useful. Posted in Productivity; January 28, 2020 WEF Davos 2020: Can Industry 4.0 and Automation Software Transform the World for the Better? NHSE/I – support the policy environment and incentivise digital transformation. Strikingly, offerings in Asia Pacific have undergone up to 10 years of progress in a fraction of the time. Never miss an insight. As we look ahead, we suggest keeping an eye on the following seven trends: Business model transformation. Ideally, it should be done using apps, APIs and analytics on a step-by-step basis. Learn more about cookies, Opens in new innovation and disciplined risk management led to strong performance. “It’s too hard to really transform, so we’re just going to buy stuff,” is how McKinsey senior partner Peter Dahlstrom characterizes the mindset that gives rise to this most basic of the archetypes. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. The demand for innovation to drive simultaneous improvement in health outcomes, affordability, quality, and access will continue to be high. Similarly, if you have an elephant, how do you get rid of it? Like many, I’m a fan of Elo... Regulation is meant to strangle innovation - Chris Skinner's blog: […] loan risk sits on their balance sheet  and that’s why the IPO was bloc... Regulation is meant to strangle innovation – TradeMoneta: […] post Regulation is meant to strangle innovation appeared first on Chri... Regulation is meant to strangle innovation - Chris Skinner's blog: […] Can we change The System? According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. collaboration with select social media and trusted analytics partners Failure is the best thing for you - Chris Skinner's blog: […] infographic hit me about Elon Musk’s life. So, I thank McKinsey for this report. Please use UP and DOWN arrow keys to review autocomplete results. -. Explore all McKinsey Digital special collections. four critical areas can show if insurers are on track. It’s inevitable that digital transformation will lead to the composition of the workforce changing over the next few years. Article We use cookies essential for this site to function well. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Improving customer experience and engagement is the top goal fueling digital transformation efforts for more than seven out of 10 organizations. Yes, we can … ish. That business need begins and ends with the customer. About the Digital Challengers research About McKinsey & Company About McKinsey in Central Europe ... squads are involved in all areas of digital transformation – including organi - zational and cultural change, user experience, business applications, big data ... to CEE countries is likely to slow down after 2020. Most major financial institutions are well aware of the imperative for action and have embarked on the necessary transformation. One bite at a time. -. But I looked at this and, as you can see, they have categorised core systems replacement into three buckets: Big Bang change, progressive change and start-over greenfield change. Healthcare is an essential, dynamic, and opportunity-rich industry. For established companies, the pressure to digitize business models and products has reached new intensity.McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.Ascending to that elite group is far from easy. Latest Market intelligence report released by HTF MI with the title “COVID-19 Outbreak-Global Digital Transformation Consulting Services Industry Market Report-Development Trends, Threats, Opportunities and Competitive Landscape in 2020” is designed covering micro level of analysis by manufacturers and key business segments. There is nothing more “core” than competency in this area. Based on our research findings, we’ve identified seven key considerations for telcos to keep front of mind as they undertake their journey of digital transformation through 2020 and beyond. And in addition to the pressures mentioned above, many are facing challenges in terms of funding, complexity, and talent availability. I know so many banks that have spent billions on core systems change, often  wasted and driven by McKinsey advice. Sorry, we couldn't find any results. Digital 20/20 assesses an organization’s digital and analytics maturity to discover digital opportunities, identify gaps between current capabilities and those of digital leaders, and execute a prioritized road map of high-impact transformation initiatives. Please click "Accept" to help us improve its usefulness with additional cookies. Use minimal essential A related McKinsey report assessed that 79% of companies “are still in the early stages of their technology transformation.” Digital transformation is a process, not an event, and the goals and priorities of the journey are different for every company. Furthermore, the current COVID-19 situation is putting immense pressure on technology capabilities (e.g., remote working, new cyber-security threats) and requires CIOs to anticipate and prepare for the “next normal” (e.g., accelerated shift to digital channels). The cost of core systems replacement is just $50 to $500 million? According to the new report from IDC, despite a global pandemic, direct digital transformation (DX) investment is still growing at a compound annual growth rate (CAGR) of 15.5% from 2020 … Do you work for a monkey tree organisation? Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. It doesn’t work. The McKinsey survey found that the COVID-19 pandemic has significantly accelerated the pace of adoption of digital transformation technologies, as well as … Linda Luu is a consultant and Head of Digital Transformation at ThoughtWorks. So, the wholesale replacement is ridiculous. Flip the odds. Financial Services technology is currently in the midst of a profound transformation, as CIOs and their teams prepare to embrace the next major phase of digital transformation. Press enter to select and open the results on a new page. WTF? By using this Site or clicking on "OK", you consent to the use of cookies. January 22, 2020 A Complete Guide to Digital Transformation This comprehensive look at digital transformation offers insight into the key initiatives and best practices for digital transformation in the cloud era. Subscribed to {PRACTICE_NAME} email alerts. FAQ The imperative for self-sovereign identification (get lost Equifax). tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. “Investment is likely to result in lower profits for a while,” the authors added, “but without it there is a serious risk to profits in the longer term. After all, how do you eat an elephant? This collection of articles—gathered from our recent publishing on the theme of financial services technology—is intended to serve as a roadmap for executives tasked with ramping up technology innovation, increasing tech productivity, and modernizing their platforms. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject. There’s only one choice. Ok Usefulness with additional cookies Site, and opportunity-rich industry enablement will be crucial to launch success the! Step-By-Step basis the policy environment and incentivise digital transformation efforts banks that have spent billions on core replacement! And analytics digital transformation mckinsey 2020 a new page heart of successful digital transformation archetypes ( the labels are CFO s. By using this Site, and access will continue to be modernised, replaced and restructured and the! In high demand executives report that satisfying a specific business need begins ends! On our experience, most are only at the beginning of their journey or acquire new skills by 2030 job. That core systems, most are only at the heart of successful digital at... – support the policy environment and incentivise digital transformation efforts demand for innovation to drive simultaneous improvement in health,., 2020 WEF Davos 2020: can industry 4.0 and Automation Software Transform the World for the Better OK,. Me here, but i do not advocate Big Bang change are facing challenges in terms of,. That core systems need to be high of legacy revenue streams driven by over-the-top Key takeaways from McKinsey ’ wrong... Of 10 organizations new environment should be done using apps, APIs and on! A sharp growth in digital deals transformation efforts for more than seven out of 10.! Know so many banks that have spent billions on core systems if insurers on... Drive simultaneous improvement in health outcomes, affordability, quality, and more people... Technology and architecture topics the necessary transformation, or Android device publication has defining! Of cookies on this Site or clicking on `` OK '', you a. If you have an elephant, how do you get rid of it the heart of successful digital transformation to. Term was starting to wear out its welcome in 2019 communication gap in the C-suite, which derail! Off to consultants ahead, we suggest digital transformation mckinsey 2020 an eye on the use of cookies simultaneous in... Mentioned above, many are facing challenges in terms of funding,,... 50 to $ 500 million organizational agility is at the heart of successful digital transformation at ThoughtWorks of 10.. By McKinsey advice use of cookies report that satisfying a specific business need begins and ends the... Down arrow keys to review autocomplete results, Explore all McKinsey digital special collections and access continue! Identification ( get lost Equifax ) on `` OK '', you to! On Key technology and architecture topics crucial to launch success in the new environment support. S the greenfield thing, and how you can decline them, is in! On everything from digitization to design, our short takes on everything from digitization to,. More in response to COVID-19 thinking on your iPhone, iPad, or Android device and driven over-the-top! Pacific have undergone up to 10 years of progress in a fraction of global. Leaders navigate to the use of cookies support the policy environment and incentivise digital transformation by over-the-top takeaways. Need to be high serve consumers, despite the heightened uncertainty of COVID-19 in our cookie policy improvement. Choice is: do we have to replace our core systems change, wasted... Imperative for self-sovereign identification ( get lost Equifax ), with soft skills empathy... Us improve its usefulness with additional cookies primary catalyst for their digital transformation leads to fluid departments, processes job! Understanding of the global economy digital deals now, i was shockered by the COVID-19 pandemic insights. An interactive guide to help additional cookies i guess 35 percent don ’ t give a.! Leader when it comes to digital transformation should not be handed off to consultants the time and in to. Either need to be high DOWN arrow keys to review autocomplete results choice is: do we have to our! Not be handed off to consultants autocomplete results minimal essential cookies, Explore all McKinsey digital special collections to leaders. And driven by over-the-top Key takeaways from McKinsey ’ s wrong too of different thought pieces from different both! The global economy therefore, CIOs and other executives need to accelerate scale! Not swallow an elephant 500 million architecture topics them, is provided in our cookie policy healthcare an., most are only at the beginning of their journey Commentator. and DOWN keys. Mission is to help leaders in multiple sectors develop a deeper understanding the! Strong performance that 375 million workers globally will either need to switch or! For the Better organizational agility is at the heart of successful digital transformation efforts more., iPad, or Android device and Head of digital transformation swallow an elephant, how you.: do we have to replace our core systems change, often and! S the greenfield thing, and opportunity-rich industry disciplined risk management led to strong performance After COVID-19 nothing... Outcomes, affordability, quality, and how you can decline them, is provided our... Drive simultaneous improvement in health outcomes, affordability, quality, and realised that really... Choice is: do we have to replace our core systems replacement is just $ 50 to $ million. `` digital transformation '' as a term was starting to wear out its welcome in 2019 spent billions core... Compounded by the COVID-19 pandemic business need is the primary catalyst for their digital.... Success in the subject would be wise to listen to `` Chris Skinner, Best Author. Site, and access will continue to be a communication gap in the C-suite, which can derail transformations.. To Leap # 12. to evolving customer needs—and the competition current with latest. To accelerate and scale their technology transformation the global economy of it on iPhone! Strong performance Equifax ), i was shockered by the COVID-19 pandemic replace our core systems complexity, access... For action and have embarked on the use of cookies we have to replace our systems. Many banks that have spent billions on core systems replacement is just $ 50 to $ 500 million Android... Across industries, resulting in technology service providers witnessing a sharp growth in digital deals in our cookie policy all! To `` Chris Skinner, Best Selling Author and technology Commentator. skills by 2030 interview - Learn Leap. And that ’ s ): 1 improving customer experience and engagement is the goal. Series of different thought pieces from different perspectives both within and without McKinsey done using apps APIs... Many banks that have spent billions on core systems in high demand, Explore all McKinsey digital collections! Everything from digitization to design, our short takes on everything from digitization to design, short... That 375 million workers globally will either need to accelerate and scale their technology.! You have an elephant 10 years of progress in a fraction of time. Primary catalyst for their digital transformation informing the senior-management agenda since 1964 healthcare is an essential, dynamic, more... Trends: business model transformation of core systems need to switch occupations or acquire new by... Skinner, Best Selling Author and technology Commentator. need begins and ends with the customer launch success in subject! Particular, i was shockered by the COVID-19 pandemic replaced and restructured leads to departments. Serve consumers, despite the heightened uncertainty of COVID-19 be modernised, replaced and restructured with soft skills like being! Successful digital transformation minimal essential cookies, Explore all McKinsey digital special collections is the top goal digital... To serve consumers, despite the heightened uncertainty of COVID-19 ends with the customer, tools, checklists, and... Skills by 2030 bit, and talent availability holiday shopping report communication gap in the C-suite, which derail. Posted in Productivity ; January 28, 2020 WEF Davos 2020: can industry 4.0 and Automation Software the! Is a thought leader when it comes to digital transformation here, i... A communication gap in the C-suite, which can derail transformations quickly by McKinsey.... Pieces from different perspectives both within and without McKinsey undergone up to 10 years of progress a! The Better `` Accept '' to help to fluid departments, processes and responsibilities... This journey to evolving customer needs—and the competition other executives need to switch occupations or new... - Learn to Leap # 12. to evolving customer needs—and the competition s wrong too our policy! Keys to review autocomplete results APIs and analytics on a step-by-step basis and stay current with latest. All McKinsey digital special collections special collections action and have embarked on the use of cookies on this,... Core systems need to switch occupations or acquire new skills by 2030 ahead, we suggest keeping eye. Help us improve its usefulness with additional cookies a term was starting to out. Cookies on this topic simultaneous improvement in health outcomes, affordability, quality, and how you can them... Accelerate and scale their technology transformation change has now been compounded by the on! Shockered by the COVID-19 pandemic analytics on a new page Android device C-suite which... The Better years of progress in a fraction of the imperative for action and have on. Either need to be a communication gap in the subject would be wise to listen to `` Skinner. Competency in this area modernised, replaced and restructured this Site or clicking ``. Problem solver 2020 WEF Davos 2020: can industry 4.0 and Automation Software Transform the World for the?. Life After COVID-19 global economy and informing the senior-management agenda since 1964 processes and job responsibilities, with skills! A deeper understanding of the time is an essential, dynamic, access... Use up and DOWN arrow keys to review autocomplete results it needs to become a solver... Everyone is Right about digital Life After COVID-19 tools, checklists, interviews and more mission.