IDC Financial Insights MaturityScape Outlines Digital Transformation for Banks

Bank CEOs that evangelize the critical role of digital transformation gain competitive advantage

FRAMINGHAM, Mass.--(BUSINESS WIRE)-- Digital transformation (DX) represents the best way for banks worldwide to prepare to respond to rapidly changing customer behaviors and market conditions. As with any transformational journey, however, the road to DX maturity is beset with challenges. To help today's leading banks identify the stages, dimensions, outcomes, and actions required for businesses to digitally transform their operations, organizations, products, and services, IDC Financial Insights today unveiled a new IDC MaturityScape, Digital Transformation in Banking (Doc #US41117816). The new study serves as a guide for bank line-of-business (LOB) and technology executives to identify areas in need of improvement in support of digital transformation in five key areas or disciplines: Leadership DX, Omni-Experience DX, WorkSource DX, Operating Model DX, and Information DX.

• ClickToTweet: Bank CEOs, are you prioritizing the role of digital transformation in your business?

For a traditional bank, where change does not happen often, the DX journey is easily derailed by lack of commitment at the top. Anecdotally, according to the new report, banks around the world that seem to be following the DX path and show evidence of fundamental changes to their profitability and growth are being led by executives who instill confidence in the organization that DX is the future of the bank and are willing to make the associated policy changes to make it happen. According to Jerry Silva, Global Banking research director for IDC Financial Insights, "There is a need for a clear articulation from the top on 'how things are changing' and 'why we must change' to serve as a preamble to the DX master plan that the bank refers to and adheres to consistently. We believe that it is in this area — Leadership DX — that most banks will stumble."

To maximize the value of the IDC MaturityScape for digital transformation in banking, IDC provides the following guidance:

• Assess the bank's level of maturity and capability in each of the five dimensions of DX: Leadership, Omni-Experience, WorkSource, Operating Model, and Information.
• Assess the current state of leadership and its ability to create and execute the vision for digital transformation of the business.
• Assess the bank's strengths in each of the other disciplines and develop a plan and process for building necessary competencies.
• Develop and implement a plan to integrate DX initiatives and programs into the existing culture, including organizational changes, new digital roles, funding, talent management, operations, and information requirements.
• Revise the strategic planning process to incorporate next-generation changes/threats and developments in DX.

"Digital transformation is the process that will separate the banks that will flourish over the next decade from the institutions that will perish from non-action," Silva continued. "The banks that have demonstrated strong innovation and market presence are the ones that are committed to a DX culture, starting with the CEO."

A future IDC MaturityScape Benchmark study on DX in banking will summarize the findings of an IDC DX survey to be conducted with banks worldwide.

To arrange a one-on-one briefing with Jerry Silva, please contact Sarah Murray at 781-378-2674 or [email protected]. Reports are available to qualified members of the media. For information on purchasing reports, contact [email protected]; reporters should email [email protected].

IDC MaturityScapeIDC MaturityScape reports are used by IT executives and their enterprise partners to have a structured way to identify their current level of maturity, and the gap between where they are and where they want to be to maintain competitive balance or achieve industry superiority. Using IDC MaturityScapes is a way to reduce the friction of change, to make more precise investments, and to identify the details of governance, process, technology, organization, and other factors that can derail the best-laid technology initiative.

About IDC Financial InsightsIDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit http://www.idc-fi.com, email [email protected], or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-insights-community.com/financial.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160405006107/en/

Attune Communications
Sarah Murray, 781-378-2674
Partner
[email protected]
or
IDC
Emily Tynan, 508-935-4409
Marketing Specialist
[email protected]

Source: IDC Financial Insights

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