A VAT Of Opportunity For Businesses

Khaled Musilhy

Expanding beyond oil-based revenues has been a growing need for nearly all Gulf Cooperation Council (GCC) states with oil-dependent economies, and the recent oil-price deadlock has further intensified the need. Despite the short-term disruption it will entail, value-added tax (VAT) is a huge opportunity for growth, change, and transformation, not only for the UAE economy, but also for businesses at large. And businesses need to be ready to adapt to this change, which can cascade into benefits for everyone.

Emerging technologies and an emphasis on sustainability are driving rapid changes in our world. As a sign of things to come, several large global automotive markets are moving towards the use of electric vehicles and electric grids, expanding the percentage of sustainable sources in their basket.

In this rapidly transforming scenario, economies that have traditionally relied on their oil and gas resources will need to reimagine themselves. The governments of the GCC countries, too, are preparing for a future that reinvents their economies. The VAT regime, which will expand the tax intake of the governments of the region, is a step towards investing in future prosperity through diversification of the economy. However, like all new measures – especially in taxation – the change will generate some disruption. But in reality it is the region’s first step towards a creative transformation

But what about businesses? How will VAT impact their efficiencies? And can they be VAT-ready, to optimally harness its various benefits?

Balancing globalization and localization

Globalization has been at the core of the massive growth we have seen in industry and business. But to be global, you need to be a local player. This balance of being global and acting local is a critical one, as local laws, product availability, and sensitivities need to be effectively balanced with international laws and standards.

Introduction of VAT is a classic example of this. While it will trigger a whole new era of change and growth, at this point it has created gaps that need to be plugged within business’ operational and product strategies. So today, software that is world-class and cutting-edge cannot be efficient in UAE if it is not VAT-compliant and ready function within the necessary parameters.

For the Gulf countries, implementation of VAT is akin to a globalization move. Diversification and following international law are the only routes to becoming part of a global marketplace. Additionally, taxation can also serve as a new source of revenue.

So how can we prepare for this colossal change? A simple checklist and a positive outlook can ensure compliance as well as optimized benefits.

Readiness is about a shift in mindset

Introduction of a new tax regime is a major change, and enterprises have always worried about it. That said, the region’s tax-free status for a prolonged period makes VAT seem like an even greater challenge.

Let’s look at readiness first. Some important aspects that a business needs to consider are:

  • The key question: Are you covered by VAT? (AED 370,000 onward is mandatory)
  • Understand the industry you are in and find out tax exemptions and taxable categories
  • Conduct a VAT assessment exercise to identify and classify relevant parts of your business
  • Find out about the requirements of VAT on your accounting structure
  • Determine your readiness from an accounting perspective regarding input and output tax
  • Make sure your team and organization understand the added role of tax accounting

Now let’s talk about the shift in mindset that is most critical when preparing for change. Taxation needs to be viewed as a positive change. When you pay taxes, they are routed toward a healthy platform for business. Infrastructure projects and new laws supporting foreign investors are basically routes to redirect investment back into the country for the benefit of the country and its people.

From an enterprise point of view, as a global executive involved in standardizing global policies with local compliance, I personally don’t see much impact on the consumer – except the shock effect, which might last a few months. There will definitely be a decrease in the power of buying until things settle down into a way of life. Also, I would expect retailers and trading companies to become more innovative.

Looking at the positives

If we talk about the scope and extent of taxation, the 5% VAT being implemented (in general) is low compared to global figures that range between 15% and 25%. Also, the simplicity of the market means fewer complications for everyone. This is a greenfield market, where the law is very simple and straightforward.

Innovation is another great tool to prepare and support this transformation. As we operate in several global markets with existing tax regimes, we have to help our customers further by making the system not just tax-ready, but also configurable. Delivering preconfigured solutions makes their lives easier. Updates and patches, along with tax-return statement options, should become part of solutions to support VAT implementation.

Readiness also means accepting the transformation in roles that a VAT regime will trigger. Many traditional roles will be redefined, and new meaning can be found in the way line-of-business staff deliver value to businesses. Take the role of an accountant, for instance. Their purpose is no longer just to compute VAT. That is a system job. Their real purpose will be to monitor, validate, and protect your organization against noncompliance.

Enterprises to become stakeholders in transformation

One of the challenges of VAT is that it falls under a transactional or dynamic type of taxation, which means it requires constant monitoring and reporting. For the smooth implementation of VAT, enterprises will need to understand their industry at a deeper level than previously.

VAT will require businesses to identify and classify their functions, earnings, and expenses. A prepared and engaged enterprise will be able to maximize any benefits it can accrue through exemptions and claims. The new tax regime will present opportunities as well as compliance requirements. Enterprises can take four approaches to be an active participant in the region’s creative transformation:

  • As an active agent, an enterprise can lead the transformation in business models and collaborative relationships. An enterprise can reinvent itself and, in the process, alter the industry it is part of.
  • Through strategic evolution, enterprises can gain advantages through financial models optimized for the new tax regime.
  • By taking ownership of the initiative, an enterprise can be at the forefront of accurate and timely compliance. Through their efforts, enterprises can generate streamlined processes and help create a new normal.
  • Through focused innovation within the new regime, an enterprise can drive process evolution and the creation of new synergies.

With change comes opportunity

Tax restructuring is one of the most fundamental reorganizations that an economy can go through. This is even more important when the restructuring is being pursued in the interest of reinventing the economy itself. Rarely do businesses get the opportunity to stake out entirely new ways to operate and to implement fresh strategies to this extent. The VAT implementation in the UAE represents a chance for businesses to align with a new vision, diversify markets and opportunities, and, ultimately, leverage a much wider array of avenues for growth.

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Khaled Musilhy

About Khaled Musilhy

Khaled Musilhy is a technology and business leader, bringing over 20 years of experience in different roles of software products development, implementation, commercialization, and sales operations. In his current capacity as head for SAP SE globalization services product management for developed European and Middle Eastern countries, he drives SAP innovation and localization roadmap for SAP products enablement to its country-specific needs and languages.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Shaily Kumar

About Shaily Kumar

Shailendra has been on a quest to help organisations make money out of data and has generated an incremental value of over one billion dollars through analytics and cognitive processes. With a global experience of more than two decades, Shailendra has worked with a myriad of Corporations, Consulting Services and Software Companies in various industries like Retail, Telecommunications, Financial Services and Travel - to help them realise incremental value hidden in zettabytes of data. He has published multiple articles in international journals about Analytics and Cognitive Solutions; and recently published “Making Money out of Data” which showcases five business stories from various industries on how successful companies make millions of dollars in incremental value using analytics. Prior to joining SAP, Shailendra was Partner / Analytics & Cognitive Leader, Asia at IBM where he drove the cognitive business across Asia. Before joining IBM, he was the Managing Director and Analytics Lead at Accenture delivering value to its clients across Australia and New Zealand. Coming from the industry, Shailendra held key Executive positions driving analytics at Woolworths and Coles in the past. Please feel to connect on: Linkedin: http://linkedin.com/in/shaily Twitter: https://twitter.com/meisshaily

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Catherine Lynch

About Catherine Lynch

Catherine Lynch is a Senior Director of Industry Cloud Marketing at SAP. She is a content marketing specialist with a particular focus on the professional services and media industries globally. Catherine has a wide international experience of working with enterprise application vendors in global roles, creating thought leadership and is a social media practitioner.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


David Parrish

About David Parrish

David Parrish is the senior global director of Industrial Machinery & Components Solutions Marketing for SAP. Before joining SAP, he held various product and industry marketing positions with J.D. Edwards, PeopleSoft, and QAD going back to 1999.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Ralf Kern

About Ralf Kern

Ralf Kern is the Global Vice President, Business Unit Retail, at SAP, responsible for the future direction of SAP’s solution and global Go-to-Market strategy for Omnicommerce Retail, leading them into today’s digital reality.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Andre Smith

About Andre Smith

Andre Smith is an Internet, marketing, and e-commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Paul Dearlove

About Paul Dearlove

Paul Dearlove is General Manager - Retail, SAP ANZ based in Sydney. As a former professional athlete, Paul has a keen focus on high performance and believes there are many skills that can be transferred to the corporate environment.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Marina Simonians

About Marina Simonians

Marina Simonians is the Head of Global ISV GTM Strategy at SAP responsible for building new global ISV software driven initiatives for Big Data, AI/ML, Advanced analytics and IoT. With a passion for ecosystems she believes partnerships are most critical success factor in today’s software-driven market.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

Personal Branding: A Fine Line Between Ego And Enterprise Success

Daniel Newman

Group Of Business People In Conference Room, Businesswoman Pointing At Presentation Board --- Image by © Eric Audras/PhotoAlto/CorbisWith the growth of personal blogs, social media, and other online media, there has been a rapid rise in the number of individuals, both within management and the rank and file of organizations, who are building, and seeking to build, substantial online reputations. However, many companies aren’t necessarily looking at social media as a platform for individuals to build brands, but rather as a channel to reach more customers.

The question is: What stance should companies take as it pertains to their employees building successful online presences? I believe it is important that employees are empowered to become advocates, but at the same time, the efforts and outcomes must support the needs of the brand. The biggest caveat is mixing personal branding with ego, which always defeats the real purpose of brand building efforts from a business standpoint.

Check your online ego

While it seems fairly obvious that ego must definitely not be part of a company’s social business, or an individual’s personal branding, we see it happen all the time. Guy Kawasaki once said, “I wouldn’t call myself humble.” But after a particularly humbling experience, which he shares here, the former Apple evangelist, venture capitalist, and author has emerged as a true advocate of humility. “When you have this kind of perspective that you’ve arrived, that you have established a brand,” he says, “that’s a really slippery slope toward egomania.”

I can cite multiple instances where ego has surreptitiously made its way into branding efforts, ultimately corrupting the brand. And I can point you to the cases of star CEOs like Mark Zuckerberg or Steve Jobs, who have achieved cult status as far as branding is concerned, without undermining the success of their respective brands. But these shining examples are not easy to replicate. On a more practical note, you need to maintain a delicate balance between your personal branding and the success of the company you are representing.

Individual brand building vs. achieving company goals

Today, customers are searching for the real face behind a brand. They are seeking the human touch. They want to know the brand they are going to be associated with. Employees lend this human side to a brand, which is why companies should encourage them to build their own persona and voice through blogs, social networks, and content sharing sites.

But for individuals dipping their toes into the pool of personal branding for the first time, it’s really important to understand what is it that they hope to achieve through it. When employees are representing their organization through digital channels, it’s more likely that they are acting as a mouthpiece to deliver the voice of the organization. In fact, strong personal brands are needed to strengthen the corporate brand. Somewhere along the way, more precisely, when a personal brand starts to capture attention and is talked about, the problem of ego surfaces.

The problem is more visible in the case of high-profile business executives. Since it’s easy for anyone to become self-absorbed in the course of sharing, informing, educating, and interacting these high-profile figures are at serious risk. They don’t flinch from sharing their personal stories, be they significant, or trivial. There’s a fine line between narcissism, and a genuine desire to help a company drive their thoughts, ideas, and messages forward. When the true purpose of personal branding is forgotten and it becomes a self-promotion campaign, the company gains little or no value. I think people who are seeking personal branding to leverage enterprise success should master the art of great storytelling, minus the brag. Only when that happens can they be viewed as true advocates for their organizations.

This post originally ran on forbes.com.

The post Personal Branding: A Fine Line Between Ego and Enterprise Success appeared first on Millennial CEO.

 


Lane Leskela

About Lane Leskela

Lane Leskela, global business development director, Finance and Risk, for SAP, is an accomplished enterprise software leader with years of experience in customer advisory, marketing, market research, and business development. He is an expert in risk and compliance management software functions, solution road maps, implementation strategy, and channel partner management.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Shaily Kumar

About Shaily Kumar

Shailendra has been on a quest to help organisations make money out of data and has generated an incremental value of over one billion dollars through analytics and cognitive processes. With a global experience of more than two decades, Shailendra has worked with a myriad of Corporations, Consulting Services and Software Companies in various industries like Retail, Telecommunications, Financial Services and Travel - to help them realise incremental value hidden in zettabytes of data. He has published multiple articles in international journals about Analytics and Cognitive Solutions; and recently published “Making Money out of Data” which showcases five business stories from various industries on how successful companies make millions of dollars in incremental value using analytics. Prior to joining SAP, Shailendra was Partner / Analytics & Cognitive Leader, Asia at IBM where he drove the cognitive business across Asia. Before joining IBM, he was the Managing Director and Analytics Lead at Accenture delivering value to its clients across Australia and New Zealand. Coming from the industry, Shailendra held key Executive positions driving analytics at Woolworths and Coles in the past. Please feel to connect on: Linkedin: http://linkedin.com/in/shaily Twitter: https://twitter.com/meisshaily

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Catherine Lynch

About Catherine Lynch

Catherine Lynch is a Senior Director of Industry Cloud Marketing at SAP. She is a content marketing specialist with a particular focus on the professional services and media industries globally. Catherine has a wide international experience of working with enterprise application vendors in global roles, creating thought leadership and is a social media practitioner.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


David Parrish

About David Parrish

David Parrish is the senior global director of Industrial Machinery & Components Solutions Marketing for SAP. Before joining SAP, he held various product and industry marketing positions with J.D. Edwards, PeopleSoft, and QAD going back to 1999.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Ralf Kern

About Ralf Kern

Ralf Kern is the Global Vice President, Business Unit Retail, at SAP, responsible for the future direction of SAP’s solution and global Go-to-Market strategy for Omnicommerce Retail, leading them into today’s digital reality.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Andre Smith

About Andre Smith

Andre Smith is an Internet, marketing, and e-commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Paul Dearlove

About Paul Dearlove

Paul Dearlove is General Manager - Retail, SAP ANZ based in Sydney. As a former professional athlete, Paul has a keen focus on high performance and believes there are many skills that can be transferred to the corporate environment.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Marina Simonians

About Marina Simonians

Marina Simonians is the Head of Global ISV GTM Strategy at SAP responsible for building new global ISV software driven initiatives for Big Data, AI/ML, Advanced analytics and IoT. With a passion for ecosystems she believes partnerships are most critical success factor in today’s software-driven market.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.


Lane Leskela

About Lane Leskela

Lane Leskela, global business development director, Finance and Risk, for SAP, is an accomplished enterprise software leader with years of experience in customer advisory, marketing, market research, and business development. He is an expert in risk and compliance management software functions, solution road maps, implementation strategy, and channel partner management.

Hack the CIO

By Thomas Saueressig, Timo Elliott, Sam Yen, and Bennett Voyles

For nerds, the weeks right before finals are a Cinderella moment. Suddenly they’re stars. Pocket protectors are fashionable; people find their jokes a whole lot funnier; Dungeons & Dragons sounds cool.

Many CIOs are enjoying this kind of moment now, as companies everywhere face the business equivalent of a final exam for a vital class they have managed to mostly avoid so far: digital transformation.

But as always, there is a limit to nerdy magic. No matter how helpful CIOs try to be, their classmates still won’t pass if they don’t learn the material. With IT increasingly central to every business—from the customer experience to the offering to the business model itself—we all need to start thinking like CIOs.

Pass the digital transformation exam, and you probably have a bright future ahead. A recent SAP-Oxford Economics study of 3,100 organizations in a variety of industries across 17 countries found that the companies that have taken the lead in digital transformation earn higher profits and revenues and have more competitive differentiation than their peers. They also expect 23% more revenue growth from their digital initiatives over the next two years—an estimate 2.5 to 4 times larger than the average company’s.

But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.

Companies that are making the grade understand that unlike earlier technical advances, digital transformation doesn’t just support the business, it’s the future of the business. That’s why 60% of digital leading companies have entrusted the leadership of their transformation to their CIO, and that’s why experts say businesspeople must do more than have a vague understanding of the technology. They must also master a way of thinking and looking at business challenges that is unfamiliar to most people outside the IT department.

In other words, if you don’t think like a CIO yet, now is a very good time to learn.

However, given that you probably don’t have a spare 15 years to learn what your CIO knows, we asked the experts what makes CIO thinking distinctive. Here are the top eight mind hacks.

1. Think in Systems

A lot of businesspeople are used to seeing their organization as a series of loosely joined silos. But in the world of digital business, everything is part of a larger system.

CIOs have known for a long time that smart processes win. Whether they were installing enterprise resource planning systems or working with the business to imagine the customer’s journey, they always had to think in holistic ways that crossed traditional departmental, functional, and operational boundaries.

Unlike other business leaders, CIOs spend their careers looking across systems. Why did our supply chain go down? How can we support this new business initiative beyond a single department or function? Now supported by end-to-end process methodologies such as design thinking, good CIOs have developed a way of looking at the company that can lead to radical simplifications that can reduce cost and improve performance at the same time.

They are also used to thinking beyond temporal boundaries. “This idea that the power of technology doubles every two years means that as you’re planning ahead you can’t think in terms of a linear process, you have to think in terms of huge jumps,” says Jay Ferro, CIO of TransPerfect, a New York–based global translation firm.

No wonder the SAP-Oxford transformation study found that one of the values transformational leaders shared was a tendency to look beyond silos and view the digital transformation as a company-wide initiative.

This will come in handy because in digital transformation, not only do business processes evolve but the company’s entire value proposition changes, says Jeanne Ross, principal research scientist at the Center for Information Systems Research at the Massachusetts Institute of Technology (MIT). “It either already has or it’s going to, because digital technologies make things possible that weren’t possible before,” she explains.

2. Work in Diverse Teams

When it comes to large projects, CIOs have always needed input from a diverse collection of businesspeople to be successful. The best have developed ways to convince and cajole reluctant participants to come to the table. They seek out technology enthusiasts in the business and those who are respected by their peers to help build passion and commitment among the halfhearted.

Digital transformation amps up the urgency for building diverse teams even further. “A small, focused group simply won’t have the same breadth of perspective as a team that includes a salesperson and a service person and a development person, as well as an IT person,” says Ross.

At Lenovo, the global technology giant, many of these cross-functional teams become so used to working together that it’s hard to tell where each member originally belonged: “You can’t tell who is business or IT; you can’t tell who is product, IT, or design,” says the company’s CIO, Arthur Hu.

One interesting corollary of this trend toward broader teamwork is that talent is a priority among digital leaders: they spend more on training their employees and partners than ordinary companies, as well as on hiring the people they need, according to the SAP-Oxford Economics survey. They’re also already being rewarded for their faith in their teams: 71% of leaders say that their successful digital transformation has made it easier for them to attract and retain talent, and 64% say that their employees are now more engaged than they were before the transformation.

3. Become a Consultant

Good CIOs have long needed to be internal consultants to the business. Ever since technology moved out of the glasshouse and onto employees’ desks, CIOs have not only needed a deep understanding of the goals of a given project but also to make sure that the project didn’t stray from those goals, even after the businesspeople who had ordered the project went back to their day jobs. “Businesspeople didn’t really need to get into the details of what IT was really doing,” recalls Ferro. “They just had a set of demands and said, ‘Hey, IT, go do that.’”

Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants.

But that was then. Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants. “If you’re building a house, you don’t just disappear for six months and come back and go, ‘Oh, it looks pretty good,’” says Ferro. “You’re on that work site constantly and all of a sudden you’re looking at something, going, ‘Well, that looked really good on the blueprint, not sure it makes sense in reality. Let’s move that over six feet.’ Or, ‘I don’t know if I like that anymore.’ It’s really not much different in application development or for IT or technical projects, where on paper it looked really good and three weeks in, in that second sprint, you’re going, ‘Oh, now that I look at it, that’s really stupid.’”

4. Learn Horizontal Leadership

CIOs have always needed the ability to educate and influence other leaders that they don’t directly control. For major IT projects to be successful, they need other leaders to contribute budget, time, and resources from multiple areas of the business.

It’s a kind of horizontal leadership that will become critical for businesspeople to acquire in digital transformation. “The leadership role becomes one much more of coaching others across the organization—encouraging people to be creative, making sure everybody knows how to use data well,” Ross says.

In this team-based environment, having all the answers becomes less important. “It used to be that the best business executives and leaders had the best answers. Today that is no longer the case,” observes Gary Cokins, a technology consultant who focuses on analytics-based performance management. “Increasingly, it’s the executives and leaders who ask the best questions. There is too much volatility and uncertainty for them to rely on their intuition or past experiences.”

Many experts expect this trend to continue as the confluence of automation and data keeps chipping away at the organizational pyramid. “Hierarchical, command-and-control leadership will become obsolete,” says Edward Hess, professor of business administration and Batten executive-in-residence at the Darden School of Business at the University of Virginia. “Flatter, distributive leadership via teams will become the dominant structure.”

5. Understand Process Design

When business processes were simpler, IT could analyze the process and improve it without input from the business. But today many processes are triggered on the fly by the customer, making a seamless customer experience more difficult to build without the benefit of a larger, multifunctional team. In a highly digitalized organization like Amazon, which releases thousands of new software programs each year, IT can no longer do it all.

While businesspeople aren’t expected to start coding, their involvement in process design is crucial. One of the techniques that many organizations have adopted to help IT and businesspeople visualize business processes together is design thinking (for more on design thinking techniques, see “A Cult of Creation“).

Customers aren’t the only ones who benefit from better processes. Among the 100 companies the SAP-Oxford Economics researchers have identified as digital leaders, two-thirds say that they are making their employees’ lives easier by eliminating process roadblocks that interfere with their ability to do their jobs. Ninety percent of leaders surveyed expect to see value from these projects in the next two years alone.

6. Learn to Keep Learning

The ability to learn and keep learning has been a part of IT from the start. Since the first mainframes in the 1950s, technologists have understood that they need to keep reinventing themselves and their skills to adapt to the changes around them.

Now that’s starting to become part of other job descriptions too. Many companies are investing in teaching their employees new digital skills. One South American auto products company, for example, has created a custom-education institute that trained 20,000 employees and partner-employees in 2016. In addition to training current staff, many leading digital companies are also hiring new employees and creating new roles, such as a chief robotics officer, to support their digital transformation efforts.

Nicolas van Zeebroeck, professor of information systems and digital business innovation at the Solvay Brussels School of Economics and Management at the Free University of Brussels, says that he expects the ability to learn quickly will remain crucial. “If I had to think of one critical skill,” he explains, “I would have to say it’s the ability to learn and keep learning—the ability to challenge the status quo and question what you take for granted.”

7. Fail Smarter

Traditionally, CIOs tended to be good at thinking through tests that would allow the company to experiment with new technology without risking the entire network.

This is another unfamiliar skill that smart managers are trying to pick up. “There’s a lot of trial and error in the best companies right now,” notes MIT’s Ross. But there’s a catch, she adds. “Most companies aren’t designed for trial and error—they’re trying to avoid an error,” she says.

To learn how to do it better, take your lead from IT, where many people have already learned to work in small, innovative teams that use agile development principles, advises Ross.

For example, business managers must learn how to think in terms of a minimum viable product: build a simple version of what you have in mind, test it, and if it works start building. You don’t build the whole thing at once anymore.… It’s really important to build things incrementally,” Ross says.

Flexibility and the ability to capitalize on accidental discoveries during experimentation are more important than having a concrete project plan, says Ross. At Spotify, the music service, and CarMax, the used-car retailer, change is driven not from the center but from small teams that have developed something new. “The thing you have to get comfortable with is not having the formalized plan that we would have traditionally relied on, because as soon as you insist on that, you limit your ability to keep learning,” Ross warns.

8. Understand the True Cost—and Speed—of Data

Gut instincts have never had much to do with being a CIO; now they should have less to do with being an ordinary manager as well, as data becomes more important.

As part of that calculation, businesspeople must have the ability to analyze the value of the data that they seek. “You’ll need to apply a pinch of knowledge salt to your data,” advises Solvay’s van Zeebroeck. “What really matters is the ability not just to tap into data but to see what is behind the data. Is it a fair representation? Is it impartial?”

Increasingly, businesspeople will need to do their analysis in real time, just as CIOs have always had to manage live systems and processes. Moving toward real-time reports and away from paper-based decisions increases accuracy and effectiveness—and leaves less time for long meetings and PowerPoint presentations (let us all rejoice).

Not Every CIO Is Ready

Of course, not all CIOs are ready for these changes. Just as high school has a lot of false positives—genius nerds who turn out to be merely nearsighted—so there are many CIOs who aren’t good role models for transformation.

Success as a CIO these days requires more than delivering near-perfect uptime, says Lenovo’s Hu. You need to be able to understand the business as well. Some CIOs simply don’t have all the business skills that are needed to succeed in the transformation. Others lack the internal clout: a 2016 KPMG study found that only 34% of CIOs report directly to the CEO.

This lack of a strategic perspective is holding back digital transformation at many organizations. They approach digital transformation as a cool, one-off project: we’re going to put this new mobile app in place and we’re done. But that’s not a systematic approach; it’s an island of innovation that doesn’t join up with the other islands of innovation. In the longer term, this kind of development creates more problems than it fixes.

Such organizations are not building in the capacity for change; they’re trying to get away with just doing it once rather than thinking about how they’re going to use digitalization as a means to constantly experiment and become a better company over the long term.

As a result, in some companies, the most interesting tech developments are happening despite IT, not because of it. “There’s an alarming digital divide within many companies. Marketers are developing nimble software to give customers an engaging, personalized experience, while IT departments remain focused on the legacy infrastructure. The front and back ends aren’t working together, resulting in appealing web sites and apps that don’t quite deliver,” writes George Colony, founder, chairman, and CEO of Forrester Research, in the MIT Sloan Management Review.

Thanks to cloud computing and easier development tools, many departments are developing on their own, without IT’s support. These days, anybody with a credit card can do it.

Traditionally, IT departments looked askance at these kinds of do-it-yourself shadow IT programs, but that’s changing. Ferro, for one, says that it’s better to look at those teams not as rogue groups but as people who are trying to help. “It’s less about ‘Hey, something’s escaped,’ and more about ‘No, we just actually grew our capacity and grew our ability to innovate,’” he explains.

“I don’t like the term ‘shadow IT,’” agrees Lenovo’s Hu. “I think it’s an artifact of a very traditional CIO team. If you think of it as shadow IT, you’re out of step with reality,” he says.

The reality today is that a company needs both a strong IT department and strong digital capacities outside its IT department. If the relationship is good, the CIO and IT become valuable allies in helping businesspeople add digital capabilities without disrupting or duplicating existing IT infrastructure.

If a company already has strong digital capacities, it should be able to move forward quickly, according to Ross. But many companies are still playing catch-up and aren’t even ready to begin transforming, as the SAP-Oxford Economics survey shows.

For enterprises where business and IT are unable to get their collective act together, Ross predicts that the next few years will be rough. “I think these companies ought to panic,” she says. D!


About the Authors

Thomas Saueressig is Chief Information Officer at SAP.

Timo Elliott is an Innovation Evangelist at SAP.

Sam Yen is Chief Design Officer at SAP and Managing Director of SAP Labs.

Bennett Voyles is a Berlin-based business writer.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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Survey: Four Ways Machine Learning Will Disrupt Your Business

Dan Wellers and Dirk Jendroska

We are entering the era of the machine learning enterprise, in which this subset of artificial intelligence (AI) capabilities will revolutionize operating models, shake up staffing methods, upend business models, and potentially alter the nature of competition itself. The adoption of machine learning capabilities will be limited only by an organization’s ability to change – but not every company will be willing or able to make such a radical shift.

Very soon, the difference between the haves and the have-nots of machine learning will become clear. “The disruption over the next three to five years will be massive,” says Cliff Justice, principal in KPMG’s Innovation and Enterprise Solutions team. Companies hanging onto their legacy processes will struggle to compete with machine learning enterprises able to compete with a fraction of the resources and entirely new value propositions.

For those seeking to be on the right side of the disruption, a new survey, conducted by SAP and the Economist Intelligence Unit (EIU), offers a closer look at organizations we’ve identified as the Fast Learners of machine learning: those that are already seeing benefits from their implementations.

Machine learning is unlike traditional programmed software. Machine learning software actually gets better – autonomously and continuously – at executing tasks and business processes. This creates opportunities for deeper insight, non-linear growth, and levels of innovation previously unseen.

Given that, it’s not surprising that machine learning has evolved from hype to have-to-have for the enterprise in seemingly record time. According to the SAP/EIU survey, more than two-thirds of respondents (68%) are already experimenting with it. What’s more, many of these organizations are seeing significantly improved performance across the breadth of their operations as a result, and some are aiming to remake their businesses on the back of these singular, new capabilities.

So, what makes machine learning so disruptive? Based on our analysis of the survey data and our own research, we see four primary reasons:

1. It’s probabilistic, not programmed

Machine learning uses sophisticated algorithms to enable computers to “learn” from large amounts of data and take action based on data analysis rather than being explicitly programmed to do something. Put simply, the machine can learn from experience; coded software does not. “It operates more like a human does in terms of how it formulates its conclusions,” says Justice.

That means that machine learning will provide more than just a one-time improvement in process and productivity; those improvements will continue over time, remaking business processes and potentially creating new business models along the way.

2. It creates exponential efficiency

When companies integrate machine learning into business processes, they not only increase efficiency, they are able to scale up without a corresponding increase in overhead. If you get 5,000 loan applications one month and 20,000 the next month, it’s not a problem, says Sudir Jha, head of product management and strategy for Infosys; the machines can handle it.

3. It frees up capital – financial and human

Because machine learning can be used to automate any repetitive task, it enables companies to redeploy resources to areas that make the organization more competitive, says Justice. It also frees up the employees within an organization to perform higher-value, more rewarding work. That leads to reduced turnover and higher employee satisfaction. And studies show that happier employees lead to higher customer satisfaction and better business results.

4. It creates new opportunities

AI and machine learning can offer richer insight, deeper knowledge, and predictions that would not be possible otherwise. Machine learning can enable not only new processes, but entirely new business models or value propositions for customers – “opportunities that would not be possible with just human intelligence,” says Justice. “AI impacts the business model in a much more disruptive way than cloud or any other disruption we’ve seen in our lifetimes.”

Machine learning systems alone, however, will not transform the enterprise. The singular opportunities enabled by these capabilities will only occur for companies that dedicate themselves to making machine learning part of a larger digital transformation strategy. The results of the SAP/EIU survey explain the makeup of the evolving machine learning enterprise. We’ve identified key traits important to the success of these machine-learning leaders that can serve as a template for others as well as an overview of the outcomes they’re already seeing from their efforts.

Learn more and download the full study here.  

 


Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Dirk Jendroska

About Dirk Jendroska

Dr. Dirk Jendroska is Head of Strategy and Operations Machine Learning at SAP. He supports the vision of SAP Leonardo Machine Learning to enable the intelligent enterprise by making enterprise applications intelligent. He leads a team working on machine learning strategy, marketing and communications.