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Deloitte Asia Pacific FS Technology Lead Partner Clifford Foster outlines the trade-offs needed between how technology-driven innovations raise customer expectations, offer new sources of revenue, and transform the competitive landscape, and how enterprises’ extensive IT infrastructures and systems enable them to run their existing businesses, with a wide range of products and channels to support.
When moving into the future, these existing assets can be an advantage or disadvantage. To determine next steps the questions to ask include:
Organisations have to figure out how to harness these existing IT assets and capabilities to meet their current needs, while positioning their businesses for the future. They need a clear, executable, strategy on how to leverage and integrate emerging market services into their offerings quickly and smoothly; while continuing to meet regulatory and broader stakeholder requirements.
At a minimum this strategy will need to consider:
1. Isolating the nodes in the new core
The organisation will need to implement technology and practises that isolates the core systems in the IT environment. These core systems can be wrapped as interoperable nodes that interact with other business system nodes, to deliver functions that are vital to the operation of the business.
Although this may not seem to be too different to the IT environment that it has today, it has created untapped potential waiting to be exploited to the benefit of the organisation and its stakeholders.
2. Build the core network to unlock the potential
There is value in the nodes. But even more value in the network that connects these nodes within the organisation. A core network provides a clean and secure gateway for connecting nodes within the organisations and external nodes or services external to the organisation. This allows internal teams, as well as chosen third parties, to innovate and implement new ways of working.
As with Metcalfe’s Law, the more nodes isolated within the IT environment, the greater the potential value to the organisation. This facilitates the flow of data, rather than restricting it to islands of information at the edges. For example, by generating new business insights from data in flight through the network, with data-at-rest in the core nodes you can provide, monitor, and action events at the heart of your business.
Exploiting the potential of the core and core network requires a new set of skills, management and governance. Combinations and intersections become more important than single data points.
The enterprise should clearly consider its technology and information management operating model by considering what capability is needed to:
The organisation’s that are best able to exploit the digital core will position themselves for a future whereby the value and assets within the enterprise can be rapidly combined with new market services to deliver unprecedented value to shareholders.
To find out more about our technology-driven innovation tech trend for 2018 click here
Clifford leads Deloitte’s Platform and Systems Engineering offering in Australia and Asia Pacific, which focuses on building and delivering solutions that leverage new and innovative technologies. He has more than 25 years management consulting and IT delivery experience, working with clients in Australia, South East Asia, China, the United Kingdom and Africa. Clifford is well regarded by his clients for his ability to shape and deliver strategic and complex transformation programs.