July 19 – 5 Key Stories From The Digital World

By July 19, 2019 Insight

1. Digital transformation: How one bank is using AI, big data and chatbots to create new services

  • Gartner estimates as many as 80% of traditional banks will go out of business by 2030
  • established financial services providers will have to move faster by building digital platforms or finding niche products
  • NatWest has built a digital human called Cora…text-based chat bot answers customers’ questions on the bank’s online help pages…can answer 200 basic banking queries and has 100,000 conversations a month

2. The Assetization Of Personal Goods

  • With consumers valuing experiences over possessions, a rising number of goods categories — clothes, furniture, jewelry — are becoming available for rent or resell, or even split into shares that can be traded
  • global luxury goods resale market, for example, is expected to reach $51B by 2024, according to CB Insights’ industry analyst consensus
  • Anticipate brands to start offering more connected services such as health monitoring or predictive replenishment of consumables to improve the customer experience as well as generate extra revenue for brands

3. Automation at scale: The benefits for payers

  • developments in technologies such as robotics and machine learning have made it easier for companies to achieve process automation at scale, and this change is fundamentally transforming how the companies operate
  • Globally, almost half the activities employees perform—which account for nearly USD 16 trillion in wages—could potentially be automated using existing proven technologies
  • at least 30 percent of employee activities in about 60 percent of occupations could be automated

4. Prioritize Customer Value, Not Just Customer Experience

  • Most companies have no idea if they are creating value for their customers…can emphasize customer experience all they want, but without emphasizing customer value, even good customer experiences don’t deliver
  • Most firms…Obsess about features, not the value customers gain from them. Engineers and product designers load up products with as many features as possible rather than what’s needed — adding complexity but not necessarily value
  • value has four dimensions: functional, economic, experiential, and symbolic. But value is not constant and will vary by person and context

5. Microsoft trumpets ‘record year’ with $126B in annual revenue, up 14%, as quarterly profits beat estimates

  • For the first time ever, the Intelligent Cloud division brought in the most revenue…rose 19 percent to $11.4 billion, powered by 64 percent annual revenue growth from Azure
  • The number of Xbox Live users jumped from 57 million a year ago to 65 million in the most recent quarter
  • After hitting the $1 trillion valuation milestone for the first time in April, Microsoft has stayed consistently above that line throughout the quarter, giving it some breathing room ahead of Apple and Amazon for the title of the most-valuable U.S. company