Join The 2014 Financial Services Architecture Survey

Jost Hoppermann

Banks and other types of firms in financial services typically like to know the answer to the question: “What are the others doing?” They leverage the answer when, for example, assessing their overall strategic position, planning for the transformation of their application landscape to a more powerful customer-centric approach, or determining the “best” sourcing approach for this transformation. 

  

It is time to update the survey results: Forrester has just started surveying banks in North America, Europe, and further geographies about their major business drivers, the current state of their application landscape, their key issues and concerns, and their plans for the future. At a high level, the survey is designed to answer the question: “What are others doing?” Phrased in a different way, it targets the question: “What are the key trends regarding the transformation of the application landscape in financial services in the Age of the Customer?”

Source: November 8, 2012, “The Transformation Imperative In Financial Services Defies Any Crisis” Forrester Report

To make this survey successful, Forrester needs your help. If you are working in financial services in any role that is related to financial services business applications, architecture and strategy, please participate in Forrester’s Global Financial Services Architecture Survey 2014. If you have not yet received an email invitation, please contact me – JHoppermann (at) Forrester.com and I ensure that you will receive a link to the online survey.

Thanks a lot for your help,

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Agile BI Ship Has Sailed — Get On Board Quickly Or Risk Falling Behind

Boris Evelson

The battle over customer versus internal business processes requirements and priorities has been fought — and the internal processes lost. Game over. Customers are now empowered with mobile devices and ubiquitous cloud-based all-but-unlimited access to information about products, services, and prices. Customer stickiness is extremely difficult to achieve as customers demand instant gratification of their ever changing needs, tastes, and requirements, while switching vendors is just a matter of clicking a few keys on a mobile phone. Forrester calls this phenomenon the age of the customer. The age of the customer elevates business and technology priorities to achieve:

  • Business agility. Forrester consistently finds one common thread running through the profile of successful organizations — the ability to manage change. In the age of the customer, business agility often equals the ability to adopt, react, and succeed in the midst of an unending fountain of customer driven requirements. Forrester sees agile organizations making decisions differently by embracing a new, more grass-roots-based management approach. Employees down in the trenches, in individual business units, are the ones who are in close touch with customer problems, market shifts, and process inefficiencies. These workers are often in the best position to understand challenges and opportunities and to make decisions to improve the business. It is only when responses to change come from within, from these highly aware and empowered employees, that enterprises become agile, competitive, and successful.
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The Banking Platform Market Grew Again - Banks Refocus On Customer-Facing Functionality

Jost Hoppermann

Many of you know that Forrester has surveyed the global banking platform market since 2005. For 2013, we analyzed the deals of 29 vendors. Seven of these vendors – Infosys with Finacle, Misys, Polaris Financial Technology, SAP, SunGard, TCS with TCS BaNCS and Temenos – continuously participated since 2006. Earlier this year, we delivered a Forrester Webinar on some results of the survey analysis; and just recently Forrester published further results in a report.

Today, I would like to highlight some of the key results:

  • 2013 saw the second highest number of counted deals ever. The 29 vendors submitted more than 1,600 banking platform deals in 2013, making the number of counted deals the second highest we have yet recorded. New named deals decreased in number, while the amount of extended business deals grew.
     
  • Good customer relationship drove individual vendor success. In 2013, very successful vendors were those that were able to leverage good client relationships to extend deals and thus increase their market share. The number of combined new named and extended business deals grew by 4% from 2012 to 2013.
     
  • Customer-facing functionality drove 2013 banking platform deals. Banks signed for more functionality related to channel solutions, customer data/party management, and customer relationship management than in the past while more transactional functionality such as core banking and lending still grew, but reduced its footprint within the overall sold banking platform functionality. Banks refocused on customer-facing capabilities to win, serve, and retain customers and increase top-line growth.
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Vendors Battle For The Heart Of The Contact Center

Kate Leggett

Organizations fail to deliver a quality of service that customers expect. Our data shows that 67% of US online consumers say they've had unsatisfactory service interactions in the past 12 months. This parallels recent data from Accenture Global Consumer Pulse Research survey. This is because companies need a variety of queuing and routing, CRM and WFO software to support end-to-end operations  - software procured from a number of different vendors. Today’s set of un-integrated components restricts contact center managers from obtaining a full, multichannel view of customer interactions, makes it difficult to configure more effective rules for contact flow, and ultimately impacts the quality of service delivered.

The last decade has seen continued consolidation and turmoil in each of the three software categories, as vendors have acquired direct competitors to fill in gaps in their offerings. More importantly, vendors have acquired companies in adjacent spaces to broaden their customer engagement management capabilities and offerings. Today, the leading vendors within each respecive category offer robust end-to-end solutions, and you have to dig deep to find feature differentiation between software solutions. This has left vendors focusing on different verticals, geographies and deployment sizes in order to grow their footprint.  In addition, some vendors have made moves into developing capabilities or making acquisitions outside of  their respective categories to increase market share. Many vendors offer a combination of 2 of the three foundational building blocks for the contact center - but no vendor has robust end-to-end offerings across all three categories.

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Surprise! Customer Service Doesn't Need To Be Delightful - Just Effective

Kate Leggett

Forrester data shows that valuing a customer's time is the most important factor in good customer service. Customers simply want an accurate, relevant, and complete answer to their question upon first contact, so they can get back to what they were doing before the issue arose. Here are the numbers:

  • Consumers have little tolerance for long or difficult service interactions. 55% of US online adults are likely to abandon their online purchase if they can't find a quick answer to their question. In addition, 77% say that valuing their time is the most important thing a company can do to provide them with good online customer service, up 6 points from 2012.
  • Older customers are as intolerant to friction in service interactions as the young.  Impatience is not only a characteristic of the young. Older Boomers are not tolerant to long customer service interactions. Meeting these high expectations for the older generation can pay off. US online seniors may be less likely than their younger counterparts to purchase online, but don't underestimate their online commerce activity: 71% of US online consumers ages 69 and older have made an online retail purchase in the past three months.
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Ready Or Not, Metrics Will Decide Your RWD Success

Mark Grannan

Earlier this spring I was determined to tell the responsive web site management/operation story as a linkage between RWD’s business metrics and operational/site performance metrics and improvement tactics. Instead, I found a fragmented story: The business teams have different processes, tools, and goals from technical teams, whereby ‘management’ happens in isolation from ‘operation.’ Business teams that need to prove the ROI of RWD simply did not have a direct linkage to site performance, operations, and monitoring efforts. Compounding the problem, many front-end development agencies that build responsive sites don’t focus on metrics because they aren’t contracted for managed services after the site goes live. As a result, responsive site owners/committees must find their own fix, and our recent research is designed to address both RWD’s performance operations (i.e., speed) issues and business-value analysis for responsive sites:

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IFRS And Upstream Oil

George Lawrie

Following some work for a client in oil field services around the most appropriate ERP solution, I’ve had some questions about the impact of IFRS on accounting for exploration and evaluation (E&E). In a nutshell, IFRS offers some opportunities for energy firms or joint ventures to capitalize E&E costs that they might have expensed under previous local or US GAAP policies.

Accounting policy analysts will doubtless tell you that, in terms of record-to-report processes, you’ve got to be sure to work out how to match each expense element to commercially viable reserves on a field-by-field basis. Unmatched costs have to be expensed. This can be quite challenging, especially for infrastructure or services shared across fields. The challenge is particularly acute when exploration is undertaken as a joint venture or where firms trade exploration blocks.

Forrester undertook some work for a European hydrocarbon firm that was involved in numerous joint ventures and which had a high level of activity in trading exploration blocks. We leveraged this research and found that meeting the firm’s business needs required the CIO to be involved early on in preparing for M&A activity.

Forrester's 10-Step Methodology For Shortlisting Business Intelligence Vendors

Boris Evelson

BI is no longer a nice-to-have back-office application that counts widgets — it is now used as a key competitive differentiator by all leading organizations. For decades, most of the BI business cases were based on intangible benefits, but these days are over — today 41% of professionals, with knowledge of their firm's business case, base their business case on tangible benefits, like an increased margin or profitability. As a result, BI is front and center of most enterprise agendas, with North American data and analytics technology decision-makers who know their firm's technology budget telling Forrester in 2014 that 15% of their technology management budget will go toward BI-related purchases, initiatives, and projects.

But taking advantage of this trend by deploying a single centralized BI platform is easier said than done at most organizations. Legacy platforms, mergers and acquisitions (M&A), BI embedded into enterprise resource planning (ERP) applications, and organizational silos are just a few reasons why no large organization out there has a single enterprise BI platform. Anecdotal evidence shows that most enterprises have three or more enterprise BI platforms and many more shadow IT BI platforms.

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Boost Your Digital Intelligence With Big Data

Holger Kisker

But Avoid Ending Up With A Zoo Of Individual Big Data Solutions

We are beyond the point of struggling over the definition of big data. That doesn’t mean that we've resolved all of the confusion that surrounds the term, but companies today are instead struggling with the question of how to actually get started with big data.

28% of all companies are planning a big data project in 2014.

According to Forrester's Business Technographics™ Global Data And Analytics Survey, 2014, 28% of the more than 1600 responding companies globally are planning a Big Data project this year. More details and how this splits between IT and Business driven projects can be found in our new Forrester Report ‘Reset On Big Data’.

Or join our Forrester Forum For Technology Leaders in London, June 12&13, 2014 to hear and discuss with us directly what Big Data projects your peers are planning, what challenges they are facing and what goals they target to achieve.

Big data can mean different technologies.

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Are You Ready To Outsource Your Agile Modern Application Delivery?

Diego Lo Giudice

Our bi-yearly Forrester Agile survey suggests that Agile development (or simply "Agile") continues to see consistent, strong adoption. However, the same survey data shows that only a small percentage of firms are outsourcing Agile application development due to a lack of experience with the development sourcing approaches and governance models needed to make it work. Successfully outsourcing Agile development, either fully or partially, involves redefining roles and responsibilities, change management processes, metrics and SLAs, service descriptions, and other contractual elements. Merely using traditional outsourcing language and practices risks jeopardizing the benefits of Agile. There is no single way of doing this right.  

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