Connect with us

Business

2023 Tech and Industry Predictions from Teradata Experts

By: Teradata experts

From advances in AI/ML tied to digital twins & simulations to the expansion of satellite/cellular partnerships to expand coverage to remote or under-served areas, our tech & industry experts weigh in on what they think are the game-changing predictions for 2023.

Technology & Business

Dan Spurling, SVP, Product Engineering

Trusted Social Connectedness: While Twitter is imploding, and social media is generally seen as a negative, I believe that humans still crave connectedness in this space – especially when it is intentionally curated to ensure dependence – but that we will require both 1) greater transparency into who is stating the information that we consume, while 2) ensuring some form of security and privacy only with those whom we select (obvious potential conflict)

Digital Twins: I believe there will be advances in the ML/AI evolution tied to digital twins or simulations; moving beyond just sensors that predict machine failure or buying propensities, and moving into predictions of economic markets, food production, population health, etc.

Data Reduction: There is an exponentially increasing amount of data, but I believe we will see rise of solutions that deduce the meaningful bits of data from the overall mass of data collected, or even reduce the footprint of data using new technologies beyond current classic data storage techniques

Personal Security: (Unfortunately) Driven by greater government destabilisation and associated erosion of trust in government, I believe we will see increasing tech advances in the areas of personnel security and security monitoring

Risk Aversion: I predict that there will be reduced willingness to take large risks or make investments into risky ideas, thereby increasing the success of entrenched incumbents and decreasing the broad proliferation of new tech adoption across the large enterprises, resulting in reduced startup growth and flat to growing revenue for large software or service providers.

Michael Hay, VP, Product Management

Consolidation, Concurrency and Currency: With the looming recession, there is a natural tendency to figure out how to do more with less. How to focus on profit overgrowth. As a result, customers will shrink their footprints and seek to do the same or more work. This speaks to deploying Data and Analytics systems that can incrementally scale, but return a benefit significantly larger than a nominal incremental investment. Another way to look at this is platforms that have the virtues of being cheaper to perform queries, experiment, and avoid the data copy tax will win.

More, not less, Cloud providers:

Two global patterns, increased protectionism and a strong shift towards profitability to weather the looming recession, point to the genesis of more, not less, cloud providers. These new providers can be one of:
• General providers focused on meeting country or region-specific protectionist policies and avoiding laws and regulations with global reach, like the USA Cloud Act.
• Cloud provider plays that emphasise a special focus on unique industry requirements. For example, Energy or Healthcare companies could shift their business towards providing cloud and analytics services with acute emphasis on their respective industries and regulatory regimes.
• SaaS companies who have reached sufficient scale and must become profitable to survive.
These providers will be looking for software and services that enable them to be successful as cloud providers, and companies who are capable of supplying them, will win.

Retail

Mike Skypala, Industry Lead, EMEA

Hybrid is here to stay: People are now using both online and offline formats to shop, with in-store experiences seen as a chance to touch, feel and see the products. Many retailers are following IKEA’s lead by showing consumers what a full “at-home room” could look like in their retail spaces, making it a more visually led interaction. This blended approach to shopping is likely to stick around, which adds a certain element of complexity for retailers looking to track and interact with customers on their purchase journey and understanding the profitability of each, with analytics helping to comprehend these shifts and changes in behaviour.

Cost conscious shopping will intensify in 2023: As the cost-of-living crisis continues, there will be a sustained focus on value and cost-effective shopping as we head into a New Year. With the launch of an “Essentials” range in almost every supermarket speaking to this ongoing focus, consumer spending on non-essential goods, including fashion, homeware and beauty is likely to also continue to fall. As a result, retailers should ensure a steady flow of canned foods and cupboard essentials as these remain the priority items for many.

Sustainability remains a priority: Though sustainability has been at the forefront of consumer minds for years now, we’ve yet to see it truly become a systemic part of a retailer’s business and baked into every decision made; instead, it is often a siloed group of ad-hoc initiatives. By collecting and examining data on a range of sustainability-related issues — from energy use and carbon emissions to mobile consumption habits — companies can generate insights that would drive their sustainability initiatives and inform their long-term strategy moving forward. It’s likely that some form of legislative policy will come in either within this coming year or the next, meaning retailers will have to reach a certain level of sustainable practice in order to keep trading.

Convenience shopping is set to get more convenient: It’s likely that automatic, “scan as you go” and self-check-out options will continue to increase around the country as consumers continue to demand more convenient, faster and streamlined shopping experiences. There’s an opportunity for retailers to expand on personalisation elements in real time, based on actions as consumers walk round the shop, moving away from static data and towards contextual data. Additionally, the U.S. is leading the way with computer vision and smart trollies in particular, which pick up both what is being put in a shopper’s trolley, as well as what needs replenishing on the shelves.

Dave Spear & David King, Senior Industry Consultants for the Retail, CPG & Hospitality

Industries at Teradata

Revenge of the CEO: Unlimited free returns? 15-minute delivery? Metaverse? Expect intense scrutiny from Finance on the ROI and NPV of such investments, with a tougher hurdle due to rising interest rates. Expect “sure” cost reduction proposals to win over “wishful” growth projects as investors crave cashflow and profitability.

Healthy Dose of Retail: Health retailing continues to blur the line between traditional healthcare providers and general retailers. We’ll see more small and large acquisitions by companies like Amazon, Walmart, Target, CVS and Walgreens, all trying to deliver new health services at affordable prices.

QR Beyond James Bond: QR-codes make a giant leap forward in retail. These square codes will unlock huge amounts of data for consumers to engage with and fuel new innovation in supply chain analytics.

Techies More Approachable: Silicon Valley layoffs and tougher work policies provide a window for traditionally less sexy retail tech teams to attract strong talent on the rebound.

Telco

Nadine Manjaro, Director, Industry Consultant in Telecommunications and IoT

Fixed Wireless Access: In 2023 US operators will deploy more Fixed Wireless Access solutions.

They will focus on streamlining offers to areas where they have excess network capacity to prevent negative impacts to mobile voice and data services. T-Mobile will continue the lead in the US with over 1.5 million FWA customers through September 2022, followed by Verizon with 1 million FWA customers. Both companies have publicly shared FWA subscribers’ projections. Verizon’s plans to reach 4 to 5 million subscribers by 2025 and T-Mobile’s plans to reach 7 or 8 million within a similar period.

Private 5G: There will also be an expansion of Private 5G services in manufacturing and retail enterprises to optimise manufacturing processes and retail experiences. Large enterprises are seeking end-to-end visibility throughout the manufacturing process as well as the supply chain process. Private 5G will enable more consistent coverage and support more advanced capabilities such as machine vision analytics which enables manufacturers to spot defects earlier and take corrective actions before the produce reached finished goods status.

Cellular/Satellite Partnerships: Expansion of cellular/satellite partnerships to extend coverage to remote and underserved areas. SpaceX and T-Mobile are teaming up to deploy cellular systems on low orbit satellites, this will fill in some coverage gaps in remote areas along some less travelled roads, national parks, and deserts.

Telcos in the cloud: Many Telcos will continue migrating their data to the cloud as a means of reducing costs and enabling wider use of data insights for decision making throughout the different departments. They will encounter cost overruns since some of the providers selected demonstrated value with small, limited workloads. As they move to scale the workloads, they will encounter migration issues, cost over-runs and performance limitations.

Security: Security management will continue to be a major concern in terms of who has access to their environment. This will delay the movement of some workloads to the cloud. The next generation data architecture will be multi-cloud, hybrid with on-prem, multi-vendor ecosystem which enables internal enterprise data marketplaces.

ARPU erosion: In the US, mobile data, and voice ARPU will decrease as operators compete to win subscribers in an oversubscribed market. Customers are more cost conscious because of inflationary pressures and will be more likely to switch providers based on free device offers and lower service charges. This will drive operators to lower the cost of mobile services which will erode ARPU.

C-band deployments: Verizon and AT&T will continue to expand C-band deployments to cover a larger segment of the US population and to gain ground on T-Mobile who has the best spectrum assets in the low and mid bands. They will also need C-band to expand Fixed

Wireless Access services with higher data rates than lower band spectrum.

Consumers win: Consumers will benefit with lower prices and better service. Those who are in remote areas with limited access to broadband will have more options with FWA and satellite to cellular partnerships such as the announced partnership with T-Mobile and SpaceX Starlink satellites. As more devices with both satellite and cellular capabilities proliferate, users can access service from anywhere on earth or even at sea. In addition, businesses will be able to track shipments across the entire route without coverage gaps. Initial coverage with start with test and multi-media but will later expand to voice and data coverage.

Healthcare

John Matthews, Managing Director Healthcare & Life Sciences

Shifts to digital: We will continue to see more shifts to digital settings across industries, but in particular for healthcare as virtual visits and digital consults have made a huge difference in a supply constrained regulated environment. Who wants to actually drive to the doctor when one can video chat just as effectively for many needs?

The politics of healthcare: The politics of healthcare remains so we’ll continue to see big fights over government spending in Medicare and Medicaid, as well as increasing debate over drug pricing. This fight, the lobbying dollars, the election season megaphones will simply not go away as entrenched interests, change agents, and economic realities contend in the public square.

FinTech

Simon Axon, Industry Consulting Director, EMEA

ESG will continue to define banking in 2023: Governments and world leaders are under increasing pressure to implement stronger regulation and legislation that will demonstrate real change and commitment. Ultimately, governments see financial services as a vehicle to implement net zero policies, as well as to accelerate the path to net zero. We will see the cost of money becoming much higher for carbon damaging activity in the coming year, with more favourable rates provided to those implementing sustainable activities. To do so, banks will need granular information on a host of factors that determine the level of environmental impacts over time and risk across all sectors and all kinds of assets and investments.

Disruption as the “New Normal”: The repeated disruptions felt as a result of COVID-19, Brexit, war and political turmoil have, unsurprisingly, had a detrimental impact on the financial industry – as we’re seeing now with the ongoing rise of inflation and the increased cost of living. While ad-hoc crises are nothing new, these back-to-back and sometimes simultaneous crises is not something the industry has ever had to contend with. In 2023, the banking industry will need to further adapt as the definition of who is categorised as a ‘vulnerable’ customer changes. Banks will need smarter analytics in order to identify these vulnerable customers, with new factors calculating these scores, centred around reliability of income, as opposed to income vs. expenditure. The data needed to understand your customer base, therefore, will need to be more nuanced than it previously was.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Total Experience in Insurance

Source: Finance Derivative
Author: Monica Hovsepian, Global Industry Strategist for Financial Services, OpenText

While the insurance industry might be undergoing major changes driven by technology, the end goal remains much the same. Improving the customer and employee experience has been the priority for the industry ever since the digital transformation got underway.

Obviously, financial metrics are the true bottom line, as ever in business. But, as ITT President Harold Geneen put it so sagely, ‘in the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later.’

Geneen was speaking in a different age, when the word ‘experience’ was used in a slightly different way. But his insight is just as important today. Getting digital experiences right – for both customers and employees – is critical to the overall business success of companies within the insurance industry.

McKinsey has highlighted this, reporting that many insurers are struggling to effectively respond to their customers’ demands for a better digital experience. They’re hampered by legacy information systems that are inadequate for modern purposes. On the other side of the counter, those outdated systems are making it hard for insurance employees to do their jobs to the best of their ability; 70% of employees in the sector have more work to do than they have time for.

Eradicating these frustrations is therefore a business-critical priority for insurers going forward. The customer experience (CX) and the employee experience (EX) must be addressed and optimised simultaneously, requiring a focus on balancing back-office optimisation and customer-facing excellence.

As these two facets become increasingly linked, it can be more useful for insurers to think of it in a singular term, approaching the task by building a total experience (TX) business strategy to differentiate themselves in a fiercely competitive and dynamic market.

Transforming the way customer data is managed

McKinsey also has some stats to back up the importance of managing CX effectively in this new digital age: companies that do so typically see a 20% improvement in customer satisfaction, a 15% increase in sales conversion, a 30% lower cost-to-serve and a 30% increase in employee engagement.

Getting to those benefits involves transforming the way you manage your customer data to make it more efficient and agile. At its core, this is about being able to understand your customers better so you can make better business decisions and deliver greater satisfaction. This can be achieved by leveraging modern information platforms to streamline internal systems and bring all important data into a single ‘pane-of-glass’ 360-degree customer view.

The EX component of TX comes in here too, as the kind of technology that achieves that 360-degree view makes things much easier for employees, and gives them readily-available insights they can then use to elevate the experiences they offer to customers, including joined-up interactions and personalised service and engagement.

Finding harmony across the channel mix

Once the foundations of the 360-degree view is in place, insurance companies can begin to build out the seamless experience demanded by customers across the mix of different channels, including websites and applications, over the phone or in-person services.

As an example, modern technology can facilitate self-service tools, to add convenience for customers and decrease the burden on employees, allowing them to focus on delivering more strategic, valuable engagements elsewhere.

To touch on the ongoing topic du jour, there are also many demonstrable use cases for AI in insurance already. Combined with analytics, it can be used to help reduce information overload and optimise customer experiences, by giving support teams with AI-driven intelligence to anticipate the next-best action, next-best offer, and next-best channel to engage customers with.  Furthermore, AI can be utilised to empower employees to engage with customers by writing relevant communications, by summarising claim documentations to expedite decisions.

The Future of Total Experience

As economic turbulence continues, insurers are heavily focused on operational efficiency. As a strategy that harmonises customer experience excellence and streamlined back-end operations, total experience offers more than just another buzzword in the digital age. Gartner states that ‘Improving the customer experience (CX) ranked higher in the survey this year than more strategic focuses, such as growing revenue or new products/services development to support transformation.’

TX can be key to driving success through benefits such as:

  • Building lifetime relationships with customers by providing rich, relevant, and targeted communications across all channels
  • Empowering and engaging employees by ensuring they have the most current and relevant information across critical business systems with a single source of customer truth
  • Making better business decisions by leveraging AI to deliver actionable insights to employees.

Geneen talked about taking the experience first, with the financial success to follow. In today’s new environment of digital insurance, creating the right experience first is what will lead to long-term success. That involves both end customers and the employees that are responsible for serving them. By leveraging technology to offer cohesive and integrated solutions for both employee and customer experiences, insurance companies can ride the wave of change currently washing over the industry and come out the other side on top.

Continue Reading

Business

AI in Investment: A Guide for Asset Managers

Source: Finance derivative

Giacomo Barigazzi ,Co-founder, Axyon AI

In today’s dynamic investment landscape, the race to harness new technologies for a competitive advantage is more fierce than ever. For those in the asset management sector, embracing innovation isn’t just a choice—it’s a necessity to stay ahead in the relentless pursuit of investment opportunities.

The bedrock of investment management has always been grounded in exhaustive research and due diligence. However, the rapid evolution of technology mandates a shift in strategy. Now, it’s critical for leaders in this space to not just familiarise themselves with, but to fully integrate advanced technologies such as artificial intelligence (AI) and machine learning (ML) into their processes.

Exploring the Varieties of AI in Asset Management

It’s essential for asset managers to recognise the specific AI technologies available to them, as this understanding can greatly influence their approach to investment strategy. Broadly speaking, AI in asset management can be categorised into generative and predictive models, each with distinct capabilities and applications.

Generative AI, powered by advanced machine learning techniques, is designed to produce new data that mimic real-world information, such as text, images, and more. This technology is especially useful for creating realistic and diverse datasets, enhancing personalisation, and improving the accessibility of financial services. For asset managers, generative AI can play a crucial role in developing innovative solutions and strategies by generating novel insights and scenarios.

On the other hand, Predictive AI focuses on analysing historical data to forecast future trends and patterns. This aspect of AI is invaluable for asset managers aiming to anticipate market movements and adjust their strategies accordingly. The predictive capabilities of AI provide a strategic edge by enabling more informed decision-making and risk assessment.

For asset managers intent on leveraging AI to enhance their operations, distinguishing between these AI types is a fundamental step. By adopting the appropriate AI technologies, they can significantly improve client outcomes, operational efficiencies, and, ultimately, investment performance.

Creating a personalised client experience

Improved performance is not the only advantage AI brings to asset management; it significantly enhances the client experience by enabling the development of personalised services. For clients, generative AI tools like chatbots and virtual assistants establish a continuous support system that provides instant responses to queries, as well as up-to-date insights on market developments and portfolio adjustments.

A heightened level of personalisation throughout the investment journey ensures clients are not just satisfied but also better informed – a dynamic which undoubtedly fosters greater human relationships in the industry.

Strategic considerations for asset managers

As the widespread adoption of AI in the financial services sector continues to materialise, asset managers face a crucial task in nailing down the right WealthTech solution. It’s not just about adoption; it’s about making strategic choices.

Ultimately, companies expect to see a strong ROI after adopting an AI solution. Only by making a well-informed choice will they see the expected tangible impact of AI in asset management. A lack of due diligence in the procurement process risks introducing a solution that is both ineffective and disruptive.

Integration is key. AI solutions should align seamlessly with existing systems to avoid unwanted disruption to day-to-day operations. Therefore, choosing a provider that is ready to provide extensive training to support a smooth assimilation into operations should also be a priority for management.

There is an element of self-assessment required in the decision-making process. By recognising areas in a firm that require enhancement and understanding the specific value offered by each AI solution, leaders will be best positioned to identify a product that will bring significant improvements in targeted areas.

With a sea of options available in 2024, selecting an AI solution demands thoughtful consideration. Managers need to assess how each aligns with their investment strategy and delivers results. Consulting with experts and analysing case studies from similar businesses equips managers with valuable insights for informed decision-making.

AI as an empowerment tool

While AI will be a revolutionary tool in the asset management industry that will drive efficiency and innovation, it is not intended to replace the human touch. The technology should be viewed as a tool that empowers asset managers to focus on high-value work of greater importance to clients.

AI’s transition from a nascent curiosity to an integral business tool underscores a pivotal shift in industry dynamics. Asset managers who are slow to adopt these technologies risk falling behind in a market that’s increasingly influenced by AI’s capabilities. By contrast, those dedicated to swiftly and responsibly adopting this technology will likely be rewarded with an extra edge in performance.

Continue Reading

Business

BALANCING ACT: HOW A MULTICHANNEL APPROACH TO COMMUNICATIONS CAN DRIVE ENGAGEMENT 

Source: Finance Derivative

Tom Rahder, from Esendex, discusses how digitisation, and use of mobile messaging has transformed the banking industry, and where it can go from here. 

Barely a week goes by that we don’t see reports of banks closing more of their branches. 

And while they might come under fire for it at times, these closures reflect the fundamental shift in how we do banking today. 

Covid accelerated the change, of course – but digitisation of financial services had been happening for a long time. The rise of online-only challenger banks, and a growing number of ways to manage our finances online, has meant that the local high street branch has become redundant for many people. Young people in particular may never step foot in one because they have no need to: they can do everything from an app on their phone instead.

Most of us don’t think twice about using self-serve and/or automated digital tools for straightforward transactions, like transferring money between accounts. 

But our research also suggests that nearly 70% of those experiencing financial difficulties would rather manage their own repayment plan rather than have an ‘unpleasant’ conversation, and almost two-fifths would opt for an automated service over speaking to a human. So, far from being ‘second best’, an automated environment can provide the privacy people need to address complex challenges they’d once shied away from.

It goes without saying that any branch closures must be sensitively handled and communicated to ensure that the customers who still rely on them, many of whom may be elderly, disabled or vulnerable, aren’t left behind. 

To their credit, most banks recognise this, and will point people to nearby branches, set up pop-up counters in public places, and remind them that the Post Office is available for everyday banking. They also offer free digital skills training courses to empower customers to manage their finances in a fast, secure and convenient way. 

Unlocking the value of multichannel communications 

The reason why so many customers prefer to self-serve is largely down to the range and quality of communications available today. 

Forward-thinking firms recognise that choosing the right channels is critical if they want to deliver outstanding experiences in a competitive sector. 

A multichannel strategy doesn’t mean introducing as many channels as possible but meeting customers where they are, and continually monitoring the effectiveness of all your communications. It means balancing ease and convenience with security, and understanding how different channels drive actions – whether it be a clear and direct SMS for two-factor authentication, or WhatsApp messaging for dialogue.

The financial services sector, like any other, is impacted by wider consumer trends, so we’ve seen a big uptake of WhatsApp for Business messaging recently. It’s a channel that most people are already active on and feel comfortable with – so they are usually more likely to engage with banks, building societies and other lenders that offer it.

The good thing about WhatsApp is that it allows contact centre teams to manage multiple conversations at once, so people don’t have to endure long waiting times to speak to someone on the phone. It can also bring down the cost-to-serve, and free up staff to support customers who need it, including those who can’t easily access a branch. 

Two-way messaging, available via SMS and chat too, helps customers to feel listened to and deepens their connection with a business. They can discuss their issue and come to a resolution in a way that is most convenient for them, and have a written record for reference.

Looking ahead

As mentioned before, consumer demands are changing all the time – the challenge is keeping up. Fortunately, there is a growing number of APIs that plug your business messaging platform, allowing you to build on your capabilities with services such as RCS Messaging (Rich Communication Services Messaging). This interactive content, which can include videos and audio, is a powerful way to reach people via their SMS inbox.

Sometimes, we’re thrown a curveball – for example, reports that Gen-Z is shunning smartphones in favour of ‘dumbphones’. 

Whether this trend takes off remains to be seen; what’s important is that organisations in all sectors are able to accurately track metrics like open rates and ROI. It also reminds us that the ubiquitous SMS, with its open rate of 98%, remains as relevant today as ever. 

Last but not least, don’t be afraid to ask them exactly what they want too, rather than waiting for them to switch off and go elsewhere. A quick-fire SMS survey is a good way to gauge opinion and track trends over time, so you can invest in the channels that will deliver the most value to both your customers and the business. 

Continue Reading

Copyright © 2021 Futures Parity.