Enable Business Transformation In Banking & Financial Services Organizations through Connected Devices. Arvind Radhakrishnen.

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1 Enable Business Transformation In Banking & Financial Services Organizations through Connected Devices Arvind

2 Arvind Radhakrishnen Linkedin: Digital Transformation Consultant, Technology Strategy Advisor with passion for solving business problems by applying innovative technology based solutions. He has been consulting for various Fortune 50 Banking & Financial Services Clients for over 11+ years, helping them with laying out strategy, roadmap, evaluating product options and support with delivery & execution of digital transformation programs

3 Internet of Things (IoT) - Background The Internet of Things is a world-wide network of uniquely addressable and interconnected objects, based on standard communication protocols Big Companies are spending Big on IoT 795 companies worldwide invested an average of $86 million in 2015 in IoT initiatives IoT is Emerging out of Hype & Real Value is Emerging Investment is estimated to grow to $103 million by 2018 Michael Porter How Smart Connected Products are Transforming Competition Michael Porter who is famous for concept of Five Forces that define industries and their attractiveness has produced a recent work in HBR where he talks about how smart, connected products are transforming competition and describes how companies can evolve from making products to offering more complex, higher value offerings within System of Systems. Michael Porter and James Heppelmann article on HBR How smart connected products are transforming competition at

4 Internet of Things (IoT) Impact across Technology Layers $260+ Billion $15+ Billion Analytics & App Services Infrastructure $15+ Billion $30+ Billion Communications & Networking Things Sensors, Hardware etc Gartner Not to copied/redistributed without Gartner approval Images from Freepik

5 Broad Applications of IoT across Industries Wearables Devices worn by consumer Include Fitness Bands, Smart Watch, Smart Glass, Action Cameras Robotics Include human sensing systems for theft detection and behavioural analysis Smart Card, Mobile POS Solutions, Health monitoring Automated Damage assessment & recovery of infrastructures Connected Cars Comprises of Sensor informatics for monitoring, vehicle personalization driven by identification, authentification, real time stress identification Internet of Things Connected Home Concept that includes Remote Monitoring, control, scheduling of appliances along with ability to track & modify energy utilization along Connected Cities Built on premise of response to changing environment, changing traffic needs, vehicle to vehicle communication, control & monitoring for locomotives / train Industrial Automation Driven by Smart Factory automated monitoring, creating predictive maintainence, safe operation and workforce Optimized supply chain Augmented Operator Paperless plant..however, Banking & Financial Services are still missing to realize IOT benefits

6 Fundamental Elements that will drive IoT based Transformation.. Data Infrastructure to manage huge data collection Data system integration Automation and M2M Automated & Rapid Deployment Cloud, Data security These Foundational Elements are fundamentally based on digital forces Cloud, Mobility, Big Data & Analytics, Robotics and AI. Images from Freepik

7 ..should be founded on strong Architectural Principles.. Scalability Microservices based Service Models Common Information Model and Ontology Security Event Driven Processing Interoperability

8 ..& strong Functional Architecture reusable across board. Business Impact Business Impact-1 Business Impact-2 Business Impact-3 Business Impact-4 Enterprise Application Integration & Analytics Enterprise application 1 Enterprise application 2 Analytics Module /Algorithms Enterprise application 3 Enterprise application 4 Enterprise application 5 Domain - Abstractions & Analytics IoT Platform Event Processing Database Services Device Management Sensor Data Management Edge Processing Gateways & Devices Sensors in Physical world

9 What can Banks & Financial Services do to leverage IoT? Build a multi-dimensional view of digital transformation across revenue lines and business value levers. Multi Dimensional view of Impact of IoT on Banking & Financial Services Products Channels Payments Asset Management Internet of Things Enhanced Customer Experience Operational Risk Compliance Cost Optimization

10 Business Transformation Use Cases Customer Experience Cognitive Improve Targeted Offerings for Customer through combining Cognitive capabilities with IoT Increase Revenue Innovation Improved Integration between Bank Mobile App, Branch ATM Security Enhance Branch Security by sensing possible security issues at Branch Additional Revenue Channel by Integrating Financial Transactions through Amazon Echo, Google Home Connected Cars Automated & Authorized Financial Transactions through Bank Mobile App, Connected Car, Branch/ATM

11 Business Transformation Use Cases Operational Risk Compliance Improving Operational Risk Compliance at Data Centers through combination of sensors, Data Analytics Framework to build an enhanced Data Center Oversight Program D a t a C e n t e r F a i l u r e p r o b a b i l i t y P r e d i c t i v e M a i n t e n a n c e D a t a C e n t e r O v e r s i g h t T i m e t o F a i l

12 Business Transformation Use Cases Cost Optimization Improved Cost vs Value View Introducing Machine Learning techniques can help to correlate energy consumption with occupancy (associates/customers) to get better view of cost vs value for CFOs Improve Real Estate Management Understanding Occupancy Patterns, integrating energy consumption pattern analysis across multiple workplaces, branches provides opportunities for cost optimization Workplace & Branch Optimization Enhance REO (Real Estate Owned) Management by introducing device sensors to alert for possible thefts, intrusions in real estate owned by Banks Visualization: Empowers CFO to analyze data through Visualizations including Geospatial visualizations on enhanced toolsets, with real time analytics Customer Branch Occupancy Analysis: Understand how much time customer spends within Branch, relate on basis of transaction and find ways to reduce time spent by customer in branch

13 Driving Adoption Ensuring Business Objectives are met Define Vision with an Execution Strategy through a step by step methodological approach, built on basis of ROI model, followed by Implementation Plan Fundamental Elements for IoT Transformation Architectural Principles

14 Driving Adoption Challenges that have to be overcome Security More entry points and vulnerability towards malware attacks More layers of software, integration middleware, APIs, machine-to-machine communication, etc. create more complexity and new security risks Trust and Privacy Heightened sensitivity to controlling access and ownership of data. Compliance will continue to be a major issue in medical and assisted-living applications, which could have life and death ramifications. Complexity, Confusion and integration Issues With multiple platforms, numerous protocols and large numbers of APIs, IoT systems integration and testing will be a challenge to say the least Slower adoption and unanticipated development resource requirements will likely slip schedules and slow time to revenues, which will require additional funding for IoT projects and longer runways for startups. Evolving architectures, protocol wars and competing standards There may be multiple standards that evolve based on different requirements determined by device class, power requirements, capabilities and uses This presents opportunities for platform vendors and open source advocates to contribute and influence future standards. Concrete Use cases and compelling value propositions Lack of clear use cases or strong ROI examples will slow down adoption of the IoT Mainstream adoption of IoT will require well-grounded, customer-oriented communications and messaging around what s in it for me.

15 Results Exemplified TCS in News! Type Number of Buildings FY FY Change % Operational Sites ,461, ,118, Energy Savings Program FY Associates (Count) Energy Bill (INR). Cr

16 Future is here & technology will help make the world a more connected place. Arvind Radhakrishnen Images from Freepik