Addressing Technological Uncertainty in the Banking Industry
A recent article in the Harvard Business Review analyzes where certain vertical industries sit in an uncertain world, using scales of demand and technology.
It’s interesting to see banking and insurance companies face technological uncertainty, which can be attributed to the adoption of big data and other analytics technology and what (if any) effect those uncertainties will have in driving revenue.
New technologies and new competitors are hitting the markets at an unprecedented rate. Having the ability to manage the uncertainty generated by these disruptions is the key to enabling success.
While uncertainty is certainly increasing, it isn’t affecting all industries the same way and the Harvard Business Review article highlights this issue well, with some thought-provoking questions:
- Are new technologies or startups threatening my company or my industry?
- Over the past five years, have new competitors entered the market and captured 10 percent share by targeting our customers with a different value proposition than what we offer?
- Over the past five years, have we begun to see customer preferences change, resulting in a different mix of products and services being demanded?
- Have you recently started offering (or are planning to offer) a product or service that has never been offered before?
I encourage you to answer these questions and take a look at the “grid” and decide for yourself – do you fit where you expected to?