Madhur heads the Pre-Sales team at SunTec, which acts as the strategic sales centre for the organizations and is tasked with the responsibility of providing consultation to clients and address their business pain points, covering aspects of solutioning, product mapping and business process definitions. Combined with an experience of 20+ years in areas like pre-sales, solution architecting and client engagement, Madhur brings strategic thinking and global vision into this role.
Prior to joining SunTec he was with Oracle Financial Services, having served in multiple capacities during his 12+years with them.
Today, we see digitization disrupting how ordinary people are consuming media. Whether it is music, T20 cricket matches or the Latest blockbuster, consumers are increasingly viewing these content on mobile devices. Digitization has collided with the worlds of telecoms, media and technology. Convergence is cool and is estimated to be a $1.6 trillion market. Driven by the comfort created by on-demand TV, music streaming and eBook services, customers now want the same experience from their old-school telecoms and banking service providers. In a bid to reach every customer through tablets, mobiles or laptops, the big service providers are reacting.
The reaction has been through Mergers and Acquisitions (M&A), the fastest way for businesses to show customers that they are not slow learners. The £12.5 billion purchase of mobile operator EE by telecoms giant BT has already created UK’s largest telecommunications provider, with European domination rising on the horizon. Over the coming months, BT will incorporate the mobile experience provided by EE, on top of its current offerings in broadband, television and landline—creating a quad-play offer and simplifying the lives of its customers and dramatically improving the options available to them.
Globally, alliances are being established horizontally across different industries to ensure that customers are kept comfortable. This is meant to create an end-to-end brand experience incorporating mobile, physical and online touch-points personalized for individual customers. Borrowing a successful case from the retail industry, Tesco pioneered this horizontal land-grab, with its Clubcard as the vehicle used for understanding customer behaviour and more importantly tailoring its offers based on this observed behaviour.
There is a lot of room for improvement in the internal technology architecture before banks and telecoms companies can deliver true convergence for customers. Using the current situation with BT and EE, mergers and acquisition naturally present technical challenges to businesses as the application landscape exponentially becomes more complex as a result of two companies becoming one. The movement of vast amounts of data from one system to another is an issue and sometimes the ‘best looking’ data set is kept even though it may not have the most valuable information.
Even when internal IT systems are aligned, businesses should be ready for the new data created by their customers on a daily basis. In this connected world where over 2.5 quintillion bytes of data are generated globally every day, all of this data created by consumers on social media, e-commerce and mobile payments provide mountains of information which businesses should use when defining core customer segments or when personalizing service delivery. In essence, businesses have more information about consumers and financial trends than ever before right at their fingertips.
To fully understand the market and deliver accurate customer offerings, businesses should utilize the data held in the silos by installing an overlay layer between their core applications and the customer facing applications.
To fully understand the market and deliver accurate customer offerings, businesses should utilize the data held in the silos by installing an overlay layer between their core applications and the customer facing applications. This middle layer helps with the delivery of converged, bespoke customer offers—by the definition of sub-segments of customers (even down to a segment of one) based on a number of factors: demographics, spending patterns, life style choices, etc.
Without a middle layer, product teams will have no insight into customer behaviour which Leads to poorly executed convergence strategies. Managing customer data will be a waste of time as siloed systems would still be impenetrable for IT teams. Another benefit in deploying an overlay layer would be separating the delivery of customer experience from back office operations, facilitating convergence happening at the front office, improved user experience level and protecting previous investments in IT.
Telecoms are seen to be ahead of banks in the process of digital transformation. To combat this perception, banks need to present technology replacement strategies which reflect a renewed focus on customer-centric, rather than transaction-centric delivery. Convergence plays a big role in these replacement strategies as it provides Less friction for customers and enables them to review and accomplish their goals.
Like the telecoms sector, M&A is an approach used by established banks to make up Lost ground. Spanish banking giant BBVA bought a US-based start-up, Simple for US$117 million last year because the pressure created by younger, data-driven companies like Google and Amazon on understanding customer behaviour forced BBVA to react. Simple is a success because it gives consumers options which can really help them with their financial lives. It is simply not about user experience any more, but understanding and then influencing consumer behaviour. Instead of gobbling up Simple into its business model, BBVA has left it untouched and are learning from the start-up.
Convergence plays a big role in these replacement strategies as it provides less friction for customers and enables them to review and accomplish their goals.
Moving ahead, the best banks and telecoms services will be those which are matched to future customer needs. Consumers are more empowered and know there are more options available than ever before. According to a recent survey from IT consultancy Accenture, only 11 percent of consumers strongly agree that companies are successfully converging digital, mobile, social and traditional channels; there is certainly a lot of room to grow in this trillion dollar economy. Those who can shape really compelling customer offerings in this way will be rewarded by customers looking for tomorrow’s customer experiences.