Broadcom has been actively looking to diversify away from their core business of chip manufacturing into enterprise software. Their previous acquisitions – CA Technologies for USD 18.9 billion in 2018, followed by Symantec for USD 10.7 billion the next year – have already indicated that. The VMware acquisition is the biggest – and arguably very different from the others.
IT and Digital Leaders in Financial Services are aware of the benefits of IoT and there are some use cases that most of them think will help transform Financial Services (Figure 2).
However, there are many more potential use cases. Here are some use cases whose volume will only grow every day to fuel incessant data generation, consumption and processing at the Edge.
Smart Homes. IoT devices like Alexa/Google Home have capabilities to become “bank in a speaker” with edge computing.
In-Sync Omnichannels. IoT devices can be synced with other banking channels. A customer may start a transaction on an IoT device and complete it in a branch. Facial recognition can be used to identify the customer after he/she walks in and synced IoT devices will ensure that the transaction is completed without any steps repeated (zero re-work) thereby enhancing customer satisfaction.
Virtual Relationship Managers. In a digital branch, the customer may use Virtual Reality (VR) headsets to engage with virtual relationship managers and relevant experts. Gamification using VR can be amazingly effective in the area of financial literacy and financial planning.
Home and Auto Purchase. VR may also find use in home and auto purchase processes with financing built into it. The entire customer journey will have a much smoother experience with edge computing.
Auto and Health Insurance. Companies can use IoT (device installed in the vehicle) plus edge computing to monitor and improve driving behaviour, eventually rewarding safety with lower premiums. The growth in electric mobility will continue to provide the basis for auto insurance. Companies can use wearables to monitor crucial health parameters and exercising habits. The creation of real-time dynamic rewards around it can change behaviour towards a healthier lifestyle. Awareness, longevity, rising costs and pandemic will only fuel this sector’s growth.
Payments. Device to device contactless payment protocol is picking up and IoT and edge computing can create next-gen revolution in payments. Your EV could have an embedded wallet and pay for its parking and toll.
Branch/ATM. IoT sensors and CCTV footage from branches/ATMs can be utilised in real-time to improve branch productivity as well as customer engagement, at the same time enhancing security. It could also help in other situations like low cash levels in ATMs and malfunctions. Sending live video streams for video analytics to the cloud can be expensive. By processing data within the device or on-premises, the Edge can help lower costs and reduce latency.
Trading in Securities. Another area where response time matters is algorithmic trading. Edge computing will help to quickly process and analyse a large amount of data streaming real-time from multiple feeds and react appropriately.
Trade Finance. Real-time tracking of goods may add a different dimension to the risk, pricing and transparency of supply chains.
Cloud vs Edge
The decision to use cloud or edge will depend on multiple considerations. At the same time, all the data from IoT devices need not go to the cloud for processing and choke network bandwidth. In fact, some of this data need not be stored forever (like video feeds etc). As a result, with the rise in the number of IoT devices and increasing financial access, edge computing will find its place in the sun and complement (and not compete) with cloud computing.
The views and opinions mentioned in the article are personal.
Anupam Verma is part of the Leadership team at ICICI Bank and his responsibilities have included leading the Bank’s strategy in South East Asia to play a significant role in capturing Investment, NRI remittance, and trade flows between SEA and India.
New Cloud/AI Partners Winning Consulting and Implementation Deals
We have seen a new community of partners emerge with tech changes, such as the hyperscale cloud platforms and AI/machine learning tools. Traditionally, these companies would be good at one thing – and would learn slowly. For example, in the SAP ERP growth period, the projects were large and long. A single, mid-sized SI might only be working with 2-3 clients at a time. Therefore, the IP that they collected was limited – and they would find themselves with focused or niche skills. The large SIs had done many large, long projects across the globe and had much best-practice IP to call upon, giving them a broader and deeper knowledge of the technology and industries. Smaller providers had limited IP and industry experience.
But in this cloud and AI era, specialist providers work on hundreds of smaller projects with dozens or hundreds of clients. With the technology constantly evolving, the skills are constantly improving. While the global SIs are working on many cloud and AI engagements, they are often part of longer engagements – giving the consultants and tech teams less exposure to the new and evolving cloud platforms.
In a world where technology is changing at pace, the traditional global SI practice of “learning from peers across the globe” doesn’t happen at the pace the market requires. By the time your peers in the business have completed a project, documented it, and shared learnings, the market has moved on and technology has changed. Today it is easier and faster to learn directly from the tech vendors and cloud platform providers and their training partners. The network effect of knowledge in a team on the opposite side of the globe for a global SI is less valuable to clients. Often the smaller and mid-sized SIs have a deeper, broader knowledge of the technology platforms and toolsets than the larger providers – giving them a competitive advantage. For example, if you want the actual experience of moving SAP to Azure, or Oracle to AWS – you’ll often find the smaller providers have more experience. And this continues to play out. In many markets in the world, the top 5-10 SIs for cloud, AI and cybersecurity has a high proportion of local specialist providers.
Tech Buyers No Longer Look for Culturally Aligned Partners
Tech buyers themselves are changing too. In years gone by, the smaller tech partners would tell us that they felt they were included in bids to drive down the price from the global SIs. But today the story is different. Smaller partners are admired for their agility and innovation. Large enterprise customers will choose small providers because the small SI is NOT like them. In the past, they chose the global SI because they were just like them!
Because of this, the large SIs are mopping up their smaller competitors across the globe. Accenture has acquired 40 companies in the past 10-11 months, IBM has acquired over 10, Atos and Cognizant have also acquired many companies in the past 12 months. They are doing this for the skills as much as for the clients, along with getting a foothold in a new market or strengthening their position in geography. The challenge will be to hang on to the clients, culture, and the IP of the acquired business. Often these smaller competitors are growing at a significant pace – and the biggest risk is that the acquiring company takes their eyes off the prize.
Smaller and mid-sized SIs and consultants find it hard to create deep pools of expertise across multiple industries. While some may have a deep focus on a single or two industries, only the large players have broad and deep geography and industry experience. This puts many of the acquisitions into context – the global SIs will take these acquisitions and use that deep and broad technical and business knowledge and add it to their industry knowledge to create a more compelling offering.
Their challenge will still be one of cultural alignment. As discussed, many companies seek out tech partners who represent what they want to be, not what they are. The ability for the Global SIs to retain the culture, agility and innovation of the acquired business will determine their ability to continue to see similar or improved levels of growth from the acquired business. Using their IP in the context of industries will be the key to their ongoing success.
GCCs employ around 1 million Indian professionals and has an immense impact on the economy, contributing an estimated USD 30 billion. US MNCs have the largest presence in the market and the dominating industries are BSFI, Engineering & Manufacturing, Tech & Consulting.
GCC capabilities have always been evolving
The journey began with MNCs setting up captives for cost optimisation & operational excellence. GCCs started handling operations (such as back-office and business support functions), IT support (such as app development and maintenance, remote IT infrastructure, and help desk) and customer service contact centres for the parent organisation.
In the second phase, MNCs started leveraging GCCs as centers of excellence (CoE). The focus then was product innovation, Engineering Design & R&D. BFSI and Professional Services firms started expanding the scope to cover research, underwriting, and consulting etc. Some global MNCs that have large GCCs in India are Apple, Microsoft, Google, Nissan, Ford, Qualcomm, Cisco, Wells Fargo, Bank of America, Barclays, Standard Chartered, and KPMG.
In the post-COVID world, industry boundaries are blurring, and business models are being transformed for the digital age. While traditional functions of GCCs will continue to be providing efficiencies, GCCs will be “Digital Transformation Centres” for global businesses.
The New Age GCC in the post-COVID world
On one hand, the pandemic broke through cultural barriers that had prevented remote operations and work. The world became remote everything! On the other hand, it accelerated digital adoption in organisations. Businesses are re-imagining customer experiences and fast-tracking digital transformation enabled by technology (Figure 1). High digital adoption and rising customer expectations will also be a big catalyst for change.
In last few years, India has seen a surge in talent pool in emerging technologies such as data analytics, experience design, AI/ML, robotic process automation, IoT, cloud, blockchain and cybersecurity. GCCs in India will leverage this talent pool and play a pivotal role in enabling digital transformation at a global scale. GCCs will have direct and significant impacts on global business performance and top line growth creating long-term stakeholder value – and not be only about cost optimisation.
GCCs in India will also play an important role in digitisation and automation of existing processes, risk management and fraud prevention using data analytics and managing new risks like cybersecurity.
More and more MNCs in traditional businesses will add GCCs in India over the next decade and the existing 1,700 plus GCCs will grow in scale and scope focussing on innovation. Shift of supply chains to India will also be supported by Engineering R & D Centres. GCCs passed the pandemic test with flying colours when an exceptionally large workforce transitioned to the Work from Home model. In a matter of weeks, the resilience, continuity, and efficiency of GCCs returned to pre-pandemic levels with a distributed and remote workforce.
A Final Take
Having said that, I believe the growth spurt in GCCs in India will come from new-age businesses. Consumer-facing platforms (eCommerce marketplaces, Healthtechs, Edtechs, and Fintechs) are creating digital native businesses. As of June 2021, there are more than 700 unicorns trying to solve different problems using technology and data. Currently, very few unicorns have GCCs in India (notable names being Uber, Grab, Gojek). However, this segment will be one of the biggest growth drivers.
Currently, only 10% of the GCCs in India are from Asia Pacific organisations. Some of the prominent names being Hitachi, Rakuten, Panasonic, Samsung, LG, and Foxconn. Asian MNCs have an opportunity to move fast and stay relevant. This segment is also expected to grow disproportionately.
New age GCCs in India have the potential to be the crown jewel for global MNCs. For India, this has a huge potential for job creation and development of Smart City ecosystems. In this decade, growth of GCCs will be one of the core pillars of India’s journey to a USD 5 trillion economy.
The views and opinions mentioned in the article are personal. Anupam Verma is part of the Senior Leadership team at ICICI Bank and his responsibilities have included leading the Bank’s strategy in South East Asia to play a significant role in capturing Investment, NRI remittance, and trade flows between SEA and India.
It is quite obvious that success is determined by human aspects rather than technological factors. We have identified four key organisational actions that enable successful AI implementation at scale (Figure 1).
#1 Establish a Data Culture
The traditional focus for companies has been on ensuring access to good, clean data sets and the proper use of that data. Ecosystm research shows that only 28% of organisations focused on customer service, also focus on creating a data-driven organisational culture. But our experience has shown that culture is more critical than having the data. Does the organisation have a culture of using data to drive decisions? Does every level of the organisation understand and use data insights to do their day-to-day jobs? Is decision-making data-driven and decentralised, needing to be escalated only when there is ambiguity or need for strategic clarity? Do business teams push for new data sources when they are not able to get the insights they need?
Without this kind of culture, it may be possible to implement individual pieces of automation in a specific area or process, applying brute force to see it through. In order to transform the business and truly extract the power of AI, we advise organisations to build a culture of data-driven decision-making first. That organisational mindset, will make you capable implementing AI at scale. Focusing on changing the organisational culture will deliver greater returns than trying to implement piecemeal AI projects – even in the short to mid-term.
#2 Ingrain a Digital-First Mindset
Assuming a firm has passed the data culture hurdle, it needs to consider whether it has adopted a digital-first mindset. AI is one of many technologies that impact businesses, along with AR/VR, IoT, 5G, cloud and Blockchain to name a few. Today’s environment requires firms to be capable of utilising a variety of these technologies – often together – and possessing a workforce capable of using these digital tools.
A workforce with the digital-first mindset looks for a digital solution to problems wherever appropriate. They have a good understanding of digital technologies relevant to their space and understand key digital methodologies – such as Customer 360 to deliver a truly superior customer experience or Agile methodologies to successfully manage AI at scale.
AI needs business managers at the operational levels to work with IT or AI tech teams to pinpoint processes that are right for AI. They need to make an estimation based on historical data of what specific problems require an AI solution. This is enabled by the digital-first mindset.
#3 Demystify AI
The next step is to get business leaders, functional leaders, and business operational teams – not just those who work with AI – to acquire a basic understanding of AI.
They do not need to learn the intricacies of programming or how to create neural networks or anything nearly as technical in nature. However, all levels from the leadership down should have a solid understanding of what AI can do, the basics of how it works, how the process of training data results in improved outcomes and so on. They need to understand the continuous learning nature of AI solutions, getting better over time. While AI tools may recommend an answer, human insight is often needed to make a correct decision off this recommendation.
#4 Drive Implementation Bottom-Up
AI projects need alignment, objectives, strategy – and leadership and executive buy-in. But a very important aspect of an AI-driven organisation that is able to build scalable AI, is letting projects run bottom up.
As an example, a reputed Life Sciences company embarked on a multi-year AI project to improve productivity. They wanted to use NLP, Discovery, Cognitive Assist and ML to augment clinical proficiency of doctors and expected significant benefits in drug discovery and clinical trials by leveraging the immense dataset that was built over the last 20 years.
The company ran this like any other transformation project, with a central program management team taking the lead with the help of an AI Centre of Competency. These two teams developed a compelling business case, and identified initial pilots aligned with the long-term objectives of the program. However, after 18 months, they had very few tangible outcomes. Everyone including doctors, research scientists, technicians, and administrators, who participated in the program had their own interpretation of what AI was not able to do.
Discussion revealed that the doctors and researchers felt that they were training AI to replace themselves. Seeing a tool trying to mimic the same access and understanding of numerous documents baffled them at best. They were not ready to work with AI programs step-by-step to help AI tools learn and discover new insights.
At this point, we suggested approaching the project bottom-up – wherein the participating teams would decide specific projects to take up. This developed a culture where teams collaborated as well as competed with each other, to find new ways to use AI. Employees were shown a roadmap of how their jobs would be enhanced by offloading routine decisions to AI. They were shown that AI tools augment the employees’ cognitive capabilities and made them more effective.
The team working on critical trials found these tools extremely useful and were able to collaborate with other organisations specialising in similar trials. They created the metadata and used ML algorithms to discover new insights. Working bottom-up led to a very successful AI deployment.
We have seen time and again that while leadership may set the strategy and objectives, it is best to let the teams work bottom-up to come up with the projects to implement.
#5 Invest in Upskilling
The four “keys” are important to build an AI-powered, future-proof enterprise. They are all human related – and when they come together to work as a winning formula is when organisations invest in upskilling. Upskilling is the common glue and each factor requires specific kinds of upskilling (Figure 2).
Upskilling needs vary by organisational level and the key being addressed. The bottom line is that upskilling is a universal requirement for driving AI at scale, successfully. And many organisations are realising it fast – Bosch and DBS Bank are some of the notable examples.
How much is your organisation invested in upskilling for AI implementation at scale? Share your stories in the comment box below.