Four steps in the digital transformation journey

1. Data quality and data management

The digital transformation journey starts with data. Fundamentally, it’s about putting data front and centre of your business. In our recent blog post; Why data has become a firm’s most valuable asset we set out the steps firms need to take in order to implement a solid data collection and data management strategy. As with all assets, ‘data quality’ needs to be managed and the key is to ensure that when any new data is either keyed, or uploaded in bulk, into your systems it is done right first time. Practices like fudging the data simply to progress to the next screen must be designed out of the data capture process.

Data collection, how it is validated, and how errors are identified and corrected efficiently have become critical considerations and the first important steps towards digital transformation.

2. Business process design and automation

After implementing a robust data management strategy, the next important step is deciding which business processes to re-design and / or automate. Our advice is to be pragmatic and focus your attention on those processes that consume the most resource or that create the most pain.

During the digital transformation planning stage, financial advice and wealth management firms should assess current processes and assess whether the same result can be achieved in a better way, for example:

Is it still necessary to produce, and dispatch physical documents, or can the information be presented to clients digitally

Are physical signatures still needed from clients or could clients sign documents electronically

Can clients be provided with direct online access to their records, e.g. enabling them to perform simple self-service tasks like checking the value of their portfolio or inputting fact find information

Can clients arrange remote video meetings with their adviser Can internal process be streamlined or automated

Are there opportunities to integrate with other third-party applications and data sources

Can management reporting be fully automated

Having done the analysis firms should then construct, and execute, a rolling plan to deliver continual performance improvements. Our advice is not to try to change everything all at once. Instead, make sure that every change is consistent with the overall direction of travel and building on what has already been achieved.

3. Cultural and behavioural adoption

The next step is to embed the digital transformation internally across the organisation. Even the best systems will fail if they are not embraced and used by your staff (and your clients). So, prioritise training, education, support, and monitoring. Whilst systems are becoming more and more intuitive there is still plenty of legs in the adage that “you get what you inspect – not what you expect!”. And, even here the technology can help, e.g. by identifying which parts of your technology are, and are not, being used.

financial-planning-wealth-management-digital-transformation-culture

4. Extract powerful data insights

And, finally, and perhaps most excitingly, firms should seek to extract the incredibly powerful insights that are latent within the data that is growing day-by-day within their systems. For example, understanding common patterns of behaviour amongst clients such as the trigger points for investments and withdrawals. The more that firms, can understand how their clients behave, and why, the better able they will be to deliver their advice at the right time and in the right way.

Four steps in the digital transformation journey

1. Data quality and data management

2. Business process design and automation

3. Cultural and behavioural adoption

4. Extract powerful data insights

CURO

Resources

About T4A

Four steps in the digital transformation journey

1. Data quality and data management

2. Business process design and automation

3. Cultural and behavioural adoption

4. Extract powerful data insights

CURO

Resources

About T4A

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