Demystifying Digital – Why Customer 360 is the Foundational Digital Capability – ..(1/3)

The first post in this three part series on Digital Foundations introduces the concept of Customer 360 or Single View of Customer (SVC). We will discuss the need for & the definition of the SVC as part of the first step in any Digital Transformation endeavor. We will also discuss specific benefits from both a business & operational state that are enabled by SVC. The second post in the series introduces the concept of a Customer Journey. The third & final post will focus on a technical design & architecture needed to achieve both these capabilities.
In an era of exploding organizational touch points, how many companies can truly claim that they know & understand their customers, their needs & evolving preferences deeply and from a realtime perspective?  
How many companies can claim to keep up as a customers product & service usage matures and keep them engaged by cross selling new offerings. How many can accurately predict future revenue from a customer based on their current understanding of their profile?
The answer is not at all encouraging.
Across industries like Banking, Insurance, Telecom & Manufacturing, the ability to get a unified view of the customer & their journey is at the heart of the the enterprise ability to promote relevant offerings & detect customer dissatisfaction. 
  • Currently most industry players are woeful at putting together this comprehensive Single View of their Customers (SVC). Due to operational silos, each department possess a siloed & limited view of the customer across multiple channels. These views are typically inconsistent, lack synchronization with other departments & miss a high amount of potential cross-sell and up-sell opportunities.
  • The Customer Journey problem has been an age old issue which has gotten exponentially more complicated over the last five years as the staggering rise of mobile technology and the Internet of Things (IoT) have vastly increased the number of enterprise touch points that customers are exposed to in terms of being able to discover & purchase new products/services. In an OmniChannel world, an increasing number of transactions are being conducted online. In verticals like Retail and Banking, the number of online transactions approaches an average of 40%. Adding to the problem, more and more consumers are posting product reviews and feedback online. Companies thus need to react in realtime to piece together the source of consumer dissatisfaction.
Another large component of customer outreach are Marketing analytics & the ability to run effective campaigns to recruit customers.

The most common questions that a lot of enterprises fail to answer accurately are –

  1. Is the Customer happy with their overall relationship experience?
  2. What mode of contact do they prefer? And at what time? Can Customers be better targeted at these channels at those preferred times?
  3. What is the overall Customer Lifetime Value (CLV) or how much profit we are able to generate from this customer over their total lifetime?
  4. By understanding CLV across populations, can we leverage that to increase spend on marketing & sales for products that are resulting in higher customer value?
  5. How do we increase cross sell and up-sell of products & services?
  6. Does this customer fall into a certain natural segment and if so, how can we acquire most customers like them?
  7. Can different channels (Online, Mobile, IVR & POS) be synchronized ? Can Customers begin a transaction in one channel and complete it in any of the others without having to resubmit their data?

The first element in Digital is the Customer Centricity & it must naturally follow that a 360 degree view is a huge aspect of that.


                                       Illustration – Customer 360 view & its benefits

So what information is specifically contained in a Customer 360 –

The 360 degree view is a snapshot of the below types of data –

  • Customer’s Demographic information – Name, Address, Age etc
  • Length of the Customer-Enterprise relationship
  • Products and Services purchased overall
  • Preferred Channel & time of Contact
  • Marketing Campaigns the customer has responded to
  • Major Milestones in the Customers relationship
  • Ongoing activity – Open Orders, Deposits, Shipments, Customer Cases etc
  • Ongoing Customer Lifetime Value (CLV) Metrics and the Category of customer (Gold, Silver, Bronze etc)
  • Any Risk factors – Likelihood of Churn, Customer Mood Alert, Ongoing issues etc
  • Next Best Action for Customer

How Big Data technology can help..

Leveraging the ingestion and predictive capabilities of a Big Data based platform, banks can provide a user experience that rivals Facebook, Twitter or Google and provide a full picture of customer across all touch points.

Big Data enhances the Customer 360 capability in the following ways  –  

  1. Obtaining a realtime Single View of the Customer (typically a customer across multiple channels, product silos & geographies) across years of account history 
  2. Customer Segmentation by helping businesses understand customer segments down to the individual level as well as at a segment level
  3. Performing Customer sentiment analysis by combining internal organizational data, clickstream data, sentiment analysis with structured sales history to provide a clear view into consumer behavior.
  4. Product Recommendation engines which provide compelling personal product recommendations by mining realtime consumer sentiment, product affinity information with historical data.
  5. Market Basket Analysis, observing consumer purchase history and enriching this data with social media, web activity, and community sentiment regarding past purchase and future buying trends.

Customer 360 can help improve the following operational metrics of a Retailer or a Bank or a Telecom immensely.

  1. Cost to Income ratio; Customers Acquired per FTE; Sales and service FTE’s (as percentage of total FTE’s), New Accounts Per Sales FTE etc
  2.  Sales conversion rates across channels, Decreased customer attrition rates etc.
  3. Improved Net promotor scores (NPS), referral based sales etc

Customer 360 is thus basic digital capability every organization needs to offer their customers, partners & internal stakeholders. This implies a re-architecture of both data management and business processes automation.

The next post will discuss the second critical component of Digital Transformation – the Customer Journey.

Embedding A Culture of Business Analytics into the Enterprise DNA..

IT driven business transformation is always bound to fail” – Amber Storey, Sr Manager, Ernst & Young

The value of Big Data driven Analytics is no longer in question both from a customer as well as an enterprise standpoint. Lack of investment in an analytic strategy has the potential to impact shareholder value negatively.  Business Boards and CXOs are now concerned about their overall levels and maturity of investments in terms of business value – i.e increasing sales, driving down business & IT costs & helping create new business models. It is thus an increasingly accurate argument that smart applications & ecosystems built around them will increasingly dictate enterprise success.

Such examples among forward looking organizations abound across industries. These range from realtime analytics in manufacturing using IoT data streams across the supply chain, the use of natural language processing to drive patient care decisions in healthcare, more accurate insurance fraud detection & driving Digital interactions in Retail Banking etc to quote a few. 

However , most global organizations currently adopt a fairly tactical approach to ensuring the delivery of of traditional business intelligence (BI) and predictive analytics to their application platforms.  This departmental is quite suboptimal in ways as scaleable data driven decisions & culture not only empower decision-makers with up to date and realtime information but also help them develop long term insights into how globally diversified business operations are performing.  Scale is the key word here due to rapidly changing customer trends, partner, supply chain realities & regulatory mandates.

Scale implies speed of learning,  business agility across the organization in terms of having globally diversified operations turn on a dime thus ensuring that the business feels empowered.

A quick introduction to Business (Descriptive & Predictive) Analytics –

Business intelligence (BI) is a traditional & well established analytical domain that essentially takes a retrospective look at business data in systems of record. The goal for BI is to primarily look for macro or aggregate business trends across different aspects or dimensions such as time, product lines, business unites & operating geographies.

BI is primarily concerned with “What happened and what trends exist in the business based on historical data?“. The typical use cases for BI include budgeting, business forecasts, reporting & key performance indicators (KPI).

On the other hand, Predictive Analytics (a subset of Data Science) augments & builds on the BI paradigm by adding a “What could happen” dimension to the data in terms of –

  • being able to probabilistically predict different business scenarios across thousands of variables
  • suggesting specific business actions based on the above outcomes

Predictive Analytics does not intend to nor will it replace the BI domain but only adds significant business capabilities that lead to overall business success. It is not uncommon to find real world business projects leveraging both these analytical approaches.

Creating an industrial approach to analytics – 

Strategic business projects typically begin imbibing a BI/Predictive Analytics based approach as an afterthought to the other aspects of system architecture and buildout. This dated approach then ensures that analytics becomes external to and eventually operating in a reactive mode in the operation of business system.

Having said that, one does need to recognize that an industrial approach to analytics is a complex endeavor that depends on how an organization tackles the convergence of the below approaches –

  1. Organizational Structure
  2. New Age Technology 
  3. A Platforms Mindset
  4. Culture


        Illustration – Embedding A Culture of Business Analytics into the Enterprise DNA..

Lets discuss them briefly – 

Organizational Structure – The historical approach has been to primarily staff analytics teams as a standalone division often reporting to a CIO. This team has responsibility for both the business intelligence as well as some silo of a data strategy. Such a piecemeal approach to predictive analytics ensures that business & application teams adopt a “throw it over the wall” mentality over time.

So what needs to be done? 

In the Digital Age, enterprises should look to centralize both data management as well as the governance of analytics as core business capabilities. I suggest a hybrid organizational structure where a Center of Excellence (COE) is created which reports to the office of the Chief Data Officer (CDO) as well as individual business analytic leaders within the lines of business themselves.

 This should be done to ensure that three specific areas are adequately tackled using a centralized approach- 

  • Investing in creating a data & analytics roadmap by creating a center of excellence (COE)
  • Setting appropriate business milestones with “lines of business” value drivers built into a robust ROI model
  • Managing Risk across the enterprise with detailed scenario planning

New Age Technology –

The onset of Digital Architectures in enterprise businesses implies the ability to drive continuous online interactions with global consumers/customers/clients or patients. The goal is not just provide engaging visualization but also to personalize services clients care about across multiple modes of interaction. Mobile applications first begun forcing the need for enterprise to begin supporting multiple channels of interaction with their consumers. We have seen how how exploding data generation across the global economy has become a clear & present business & IT phenomenon. Data volumes are rapidly expanding across industries. However, while the production of data itself that has increased but it is also driving the need for organizations to derive business value from it. This calls for the collection & curation of data from dynamic,  and highly distributed sources such as consumer transactions, B2B interactions, machines such as ATM’s & geo location devices, click streams, social media feeds, server & application log files and multimedia content such as videos etc – using Big Data.

Cloud Computing is the ideal platform to provide the business with self service as well as rapid provisioning of business analytics. Every new application designed needs to be cloud native from the get go.

The onset of Digital Architectures in enterprise businesses implies the ability to drive continuous online interactions with global consumers/customers/clients or patients. The goal is not just provide engaging Visualization but also to personalize services clients care about across multiple modes of interaction. Mobile applications first begun forcing the need for enterprise to begin supporting multiple channels of interaction with their consumers. For example Banking now requires an ability to engage consumers in a seamless experience across an average of four to five channels – Mobile, eBanking, Call Center, Kiosk etc.

A Platforms Mindset – 

As opposed to building standalone or one-off business applications, a Platform Mindset is a more holistic approach capable of producing higher revenues. Platforms abound in the webscale world at shops like Apple, Facebook & Google etc. Applications are constructed like lego blocks  and they reuse customer & interaction data to drive cross sell and up sell among different product lines. The key components here are to ensure that one starts off with products with high customer attachment & retention. While increasing brand value, it is key to ensure that customers & partners can also collaborate in the improvements in the various applications hosted on top of the platform.

Culture – Business value fueled by analytics is only possible if the entire organization operates on an agile basis in order to collaborate across the value chain. Cross functional teams across new product development, customer acquisition & retention, IT Ops, legal & compliance must collaborate in short work cycles to close the traditional business & IT innovation gap. Methodologies like DevOps who’s chief goal is to close the long-standing gap between the engineers who develop and test IT capability and the organizations that are responsible for deploying and maintaining IT operations – must be adopted. Using traditional app dev methodologies, it can take months to design, test and deploy software. No business today has that much time—especially in the age of IT consumerization and end users accustomed to smart phone apps that are updated daily. The focus now is on rapidly developing business applications to stay ahead of competitors that can better harness Big Data’s amazing business capabilities.


Enterprise wide business analytic approaches designed around the four key prongs  (Structure, Culture, Technology & Platforms)   will create immense operational efficiency, better business models, increased relevance and ultimately drive revenues. These will separate the visionaries, leaders from the laggards in the years to come.

What Lines Of Business Want From IT..


                    Illustration: Business- IT Relationship (Image src –

Previous posts in this blog have discussed the fact that technological capabilities now make or break business models. It is critical for IT to operate in a manner that maximizes their efficiency while managing costs & ultimately delivering the right outcomes for the organization.

It is clear and apparent to me that the relationship lines of business (LOBs) have with their IT teams – typically central & shared – is completely broken at a majority of large organizations. Each side cannot seem to view either the perspective or the passions of the other. This dangerous dysfunction usually leads to multiple complaints from the business. Examples of which include –

  • IT is perceived to be glacially slow in providing infrastructure needed to launch new business initiatives or to amend existing ones. This leads to the phenomenon of ‘Shadow IT’ where business applications are  run on public clouds bypassing internal IT
  • Something seems to be lost in translation while conveying requirements to different teams within IT
  • IT is too focused on technological capabilities – Virtualization, Middleware, Cloud, Containers, Hadoop et al without much emphasis on business value drivers

So what are the top asks that Business has for their IT groups? I wager that there are five important focus areas –

  1. Transact in the language of the business –Most would agree that there has been too much of a focus on the technology itself – how it works,  what the infrastructure requirements are to host applications – cloud or on-prem, data engines to ingest and process it etc etc . The focus needs to be on customer needs that drive business value for an organization’s customers, partners, regulators & employees. Technology at it’s core is just an engine and does not exist in a vacuum. The most vibrant enterprises understand this ground reality and always ensure that business needs drive IT and not the other way around. It is thus highly important for IT leadership to understand the nuances of the business to ensure that their roadmaps (long and medium term) are being driven with business & competitive outcomes in mind. Examples of such goals are a common organization wide taxonomy across products, customers, logistics, supply chains & business domains. The shared emphasis on both business & IT should be on goals like increased profitability per customer, enhanced segmentation of both micro and macro customer populations with the ultimate goal of increasing customer lifetime value (CLV).
  2. Bi-Modal or “2 Speed” IT et al need to be business approach centric – Digital business models that are driving agile web-scale companies offer enhanced customer experiences built on product innovation and data driven business models. They are also encroaching into the domain of established industry players in verticals like financial services, retail, entertainment, telecommunications, transportation and insurance  by offering contextual & trendy products tailored to individual client profiles. Their savvy use of segmentation data  and realtime predictive analytics enables the delivery of bundles of tailored products across multiple delivery channels (web, mobile, point of sale, Internet, etc.). The enterprise approach has been to adopt a model known as Bi-Modal IT championed by Gartner. This model envisages two different IT camps – one focused on traditional applications and the other focused on innovation. Whatever be the moniker for this approach – LOBs need to be involved as stakeholders from the get-go & throughout the process of selecting technology choices that have downstream business ramifications. One of the approaches that is working well is increased cross pollination across both teams, collapsing artificial organizational barriers by adopting DevOps & ensuring that business has a slim IT component to rapidly be able to fill in gaps in IT’s business knowledge or capability.
  3. Self Service Across the board of IT Capabilities – Shadow IT (where business goes around the IT team) is not just an issue with infrastructure software but is slowly creeping up to business intelligence and advanced analytics apps. The delays associated with provisioning legacy data silos combined with using tools that are neither intuitive nor able to scale to deal with the increasing data deluge are making timely business analysis almost impossible to perform.  Insights delivered too late are not very valuable. Thus, LOBs are beginning  to move to a predominantly online SaaS (Software As A Service) model across a range of business intelligence applications. Reports, visual views of internal & external datasets are directly served to internal consumers based on data uploaded into a cloud based BI provider. These reports and views are then directly delivered to end users. IT needs to enable this capability and make it part of their range of offerings to the business.
  4. Help the Business think Analytically  – Business Process Automation (BPM) and Data Driven decision making are proven approaches used at data-driven organizations. When combined with Data and Business Analytics, this tends to be a killer combination. Organizations that are data & data metric driven are able to define key business processes that provide native support for key performance indicators (KPIs) that are critical and basic to their functioning. Applications developed by IT need to be designed in such a way that these KPIs can be communicate and broadcast across the organization constantly. Indeed a high percentage of organizations now have senior executive in place as the champion for BPM, Business Rules and Big Data driven analytics. These applications are also mobile native so that they can be provided access through a variety of mobile platforms for field based employees & back into the corporate firewall.
  5. No “Us vs Them” mentality – it is all “Us”  –  None of the above are only possible if the entire organization operates on an agile basis in order to collaborate across the value chain. Cross functional teams across new product development, customer acquisition & retention, IT Ops, legal & compliance must collaborate in short work cycles to close the traditional business & IT innovation gap.  One of chief goals of agile methodologies is to close the long-standing gap between the engineers who develop and test IT capability and business requirements for such capabilities.  Using traditional app dev methodologies, it can take months to design, test and deploy software – which is simply unsustainable. 

Business & IT need to collaborate. Period. –

The most vibrant enterprises that have implemented web-scale practices not only offer “IT/Business As A Service” but also have instituted strong cultures of symbiotic relationships between customers (both current & prospective), employees , partners and developers etc.

No business today has much time to innovation—especially in the age of IT consumerization where end users accustomed to smart phone apps that are often updated daily. The focus now is on rapidly developing business applications to stay ahead of competitors that can better harness technology’s amazing business capabilities.

How Robo-Advisors work..(2/3)

Millennials want “finance at their fingertips”..they want to be able to email and text the financial advisors and talk to them on a real-time basis,” – Greg Fleming, Ex-Morgan Stanley
The first post in this series on Robo-advisors touched on the fact that Wealth Management has been an area largely untouched by automation as far as the front office is concerned. Automated investment vehicles have largely begun changing that trend and they helping create a variety of business models in the industry. This three part series explored the automated “Robo-advisor” movement in the first post.This second post will focus on the overall business model & main functions of a Robo-advisor.
FinTechs led by Wealthfront and Betterment have pioneered the somewhat revolutionary concept of Robo-advisors. To define the term – a Robo-advisor is an algorithm based automated investment advisor that can provide a range of Wealth Management services tailored to a variety of life situations.
Robo-advisors offer completely automated financial planning services. We have seen how the engine of the Wealth Management business is new customer acquisition. The industry is focused on acquiring the millennial or post millennial HNWI (High Net Worth Investor) generation. The technology friendliness of this group ensures that are the primary target market for automated investment advice. Not just the millenials, anyone who is comfortable with using technology and wants lower cost services can benefit from automated investment planning. However,  leaders in the space such as – Wealthfront & Betterment – have disclosed that their average investor age is around 35 years. [1]
Robo-advisors provide algorithm-based portfolio management methods around investment creation, provide automatic portfolio rebalancing and value added services like tax-loss harvesting as we will see. The chief investment vehicle of choice seems to be low-cost, passive exchange-traded funds (ETFs).

What are the main WM business models

Currently there are a few different business models that are being adopted by WM firms.

  1. Full service online Robo-advisor that is a 100% automated without any human element
  2. Hybrid Robo-advisor model being pioneered by firms like Vanguard & Charles Schwab
  3. Pure online advisor that is primarily human in nature

What do Robo-advisors typically do?

The Robo-advisor can be optionally augmented & supervised by a human adviser. At the moment, owing to the popularity of Robo-advisors among the younger high networth investors (HNWI), a range of established players like Vanguard, Charles Schwab as well as a number of FinTech start-ups have developed these automated online investment tools or have acquired FinTech’s in this space.e.g Blackrock. The Robo-advisor is typically offered as  a free service (below a certain minumum) and typically invests in low cost ETFs.  built using digital techniques – such as data science & Big Data.


                                  Illustration: Essential functions of a Robo-advisor

The major business areas & client offerings in the Wealth & Asset Management space have been covered in the first post in this series at

Automated advisors only cover a subset of all of the above at the moment. The major usecases are as below –

  1. Determine individual Client profiles & preferences—e.g. For a given client profile- determine financial goals, expectations of investment return, diversification etc
  2. Identify appropriate financial products that can be offered either as pre-packaged portfolios or custom investments based on the client profile identified in the first step
  3. Establish correct Investment Mix for the client’s profile – these can included but are not ,limited to equities, bonds, ETFs & other securities in the firm’s portfolios . For instance, placing  tax-inefficient assets in retirement accounts like IRA’s as well as  tax efficient municipal bonds in taxable accounts etc.
  4. Using a algorithmic approach, choose the appropriate securities for each client account
  5. Continuously monitor the portfolio & transactions within it to tune performance , lower transaction costs, tax impacts etc based on how the markets are doing. Also ensure that a client’s preferences are being incorporated so that appropriate diversification and risk mitigation is being performed
  6. Provide value added services like Tax loss harvesting to ensure that the client is taking tax benefits into account as they rebalance portfolios or accrue dividends.
  7. Finally ,ensure the best user experience by handling a whole range of financial services – trading, account administration, loans,bill pay, cash transfers, tax reporting, statements in one intuitive user interface.


                             Illustration: Betterment user interface. Source – Joe Jansen

To illustrate these concepts in action, leaders like Wealthfront & Betterment are increasingly adding features where  highly relevant, data-driven advice is being provided based on existing data as well as aggregated data from other providers. Wealthfront now provides recommendations on diversification, taxes and fees that are personalized not only to the specific investments in client’s account, but also tailored to their specific financial profile and risk tolerance. For instance, is enough cash being set aside in the emergency fund ? Is a customer holding too much stock in your employer? [1]

The final post will look at a technology & architectural approach to building out a Robo-advisor. We will also discuss best practices from a WM & industry standpoint in the context of Robo-advisors.


  1. Wealthfront Blog – “Introducing the new Dashboard”