Data as an Asset: Building a Business Case for Data to Digital in Financial Services Institutions
This IDC Perspective addresses the question of how a financial service institution (FSI) can build a business case for data transformation to make it digitally consumable. Methods for creating credible business cases, including the best ways to define and quantify business benefits and costs, are also presented. Michael Araneta, associate VP, IDC Financial Insights Asia/Pacific says, "FSIs should build buy-in from the get-go, especially because significant resources are needed to successfully deliver Data-to-Digital at speed and scale. It is likely that Data-to-Digital will take at least several years to be completed, even for the highest-priority DX requirements. Justifying costs and benefits will also require a dose imagination, as you would for DX. A mix of traditional, strategic, and qualitative metrics should be used."Steve Shipley, senior executive adviser, IDC Financial Insights Asia/Pacific adds, "We suggest an internal corporate venture (ICV) investment approach, given the extensive funding and partnering needed to deliver significant longer-term revenue and dividend streams from Data-to-Digital. Furthermore, especially due to scarce digital data skills, a combination of learning, crowd sourcing, partnering, and industry is required to provide the sufficient resourcing to tackle Data-to-Digital. This will alleviate some costs and ensure quicker realization of organizational benefits."
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