Innovation Should Focus On Products, Operations, And Organizations
As a longtime monopoly, the Chinese banking, financial services and
insurance industry (BFSI) has suffered from inefficiency, quality
problems, and an uncompetitive Return On Investment. Thus can no longer
meet the high bar for customer satisfaction in the age of the customer,
according to new
research from Forrester
Research, Inc. (Nasdaq: FORR). Internet companies like Alibaba and
Tencent have launched financial services products, including innovative
products like Yuebao, which are disrupting China's BFSI with higher
profits, lower barriers to entry, and better flexibility. The government
is also making regulatory changes that will open up the market and
Two new reports from Forrester Research’s Charlie
Dai examine the mentioned digital disruptions in the industry and
how traditional banks are finding ways to balance between product,
operational and organizational innovation.
Charlie recommends that CIOs and enterprise architects of commercial
banks systematically embrace architectural innovation by leveraging
emerging technologies like cloud, big data, and enterprise mobility, so
that they can effectively support their strategic business
transformation in the age of the customer.
Key takeaways from the research include:
innovation involves Internet finance, personal financial management,
supply chain finance, and small-business lending. Operational
innovation involves mobile banks, process banks, and community banks.
Organizational innovation connects the two. Technology decision makers
must strike the right balance among these dimensions to achieve
Product Innovation Is Critical For Continued Business Growth
finance will help Chinese banks reach a vast new pool of customers;
supply chain finance and lending to small and medium-size businesses
will expand the banking ecosystem. High-availability applications
enabled by big data will be the key to differentiating personal
financial management offerings.
Operational Innovation Will Drive Customer-Oriented Business
A comprehensive mobile banking strategy will help
Chinese banks engage customers and improve loyalty. Process banks will
improve efficiency and agility by using a unified data platform as
part of the corporate foundation.
Organizational Innovation Is The Foundation for Greater Innovation
products and operations relies heavily on Enterprise Architecture (EA)
professionals. Old organizational structures may no longer apply in
this new, innovative EA practice. Aligning innovative EA teams (and
related IT groups) with business strategy is key to achieving high
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Source: Forrester Research, Inc.