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#DigitalTransformation: Clues to Shifting Financial Services Technology (Part I)

Digital crumbs are everywhere. Like the fabled trail left behind for others to follow and discover, there are fascinating clues to be harvested from increasingly abundant data. Yes, the fast-streaming and big data versions of these digital crumbs offer untold clues and patterns – but only seen after applying the latest apparatus to the chore. There are also amazing clues to be discovered by picking up one crumb at a time (often by hand) - and then assembling that collection into a vivid prototypical picture. One of the most potent forms of data innovation comes from such manual assembly of these “crumbs” followed by process refinement, technology deployment, iteration of these steps and ultimately increasing levels of automation. It’s not the glamorous end of the data innovation assembly line, but it is absolutely necessary to get there. (Thank the folks in your enterprise data management group if you like the flow of analytics to your desktop or mobile device.) Anyway, here’s a potent case in point: Some of these so-called [...]

By |2020-10-05T21:03:32-04:00November 2nd, 2015|Open|
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#TechnologyVolatility (T-VOL)

According to Al Pacino, as Coach Tony D’Amato in the movie, Any Given Sunday, “this is a game of inches - the margin for error is so small - and the inches we need are all around us.” With this in mind, it turns out that measuring technology spending in detail represents some of those so-called inches. Personally, I have found such an analysis to yield really incredible and exciting insights – representing more than just a few of those inches. Our TPE Dispersion Analytic – known as T-VOL™ – is one of the better specimen to support such a claim, at least so far. First, let me detangle some of the jargon so that you can see how (potentially) cool and useful this analytic could be: We developed individual models of the largest banks in the world – currently numbering 51 – capturing financial and operational data over the pre- and post-GFC period, 2005 – 2014. For each bank, combining estimated non-human capital (NHC) technology spending with reported headcount [...]

By |2020-10-05T21:03:23-04:00October 27th, 2015|Open|
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#humanlatency

Though you may have fully gorged yourself on tales of latency over the past few years, I’m here to tell you that that overall story is far from over. Reason being, there is more than one form of latency – and the value (or cost – depending on your perspective) of at least one of the other types of latency will make the first narrative – the super-sexy knocking-on-the-door-of-the-speed-of-light version – seem like the Leda moon orbiting Jupiter. This is where human latency enters the vernacular. From where I sit – and though the nuances can be hotly debated beyond this short essay - there are actually three primary forms of latency - and a couple hybrid versions of those. These primary forms include “network / proximity latency”, “compute latency”, and “collaboration latency”. (Of course, the technology arms race of the past decade dealt almost exclusively with minimizing network / proximity latency.) Each of these general forms is a mix of native technical and human latencies, as follows (see Exhibit 1): With this rudimentary [...]

By |2020-10-05T21:03:14-04:00October 22nd, 2015|Open|
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#GlobalTCO

Ever wonder what the global financial services ecosystem spends on technology? I have - obsessively. The size and shifts of this market – and the tapestry of moving parts within it – is extremely valuable intelligence for all players in the FSI ecosystem. Moreover, with the intense focus in recent years on topics like “XaaS”, clouds, solid state memory, Hadoop clusters and so many other symbols of fintech innovation it is abundantly clear that this is the one puzzle that needs to be solved. Problem is: crossing the bridge from here to there while keeping a credible process intact is sufficiently complicated to dissuade most sane contenders from attempting the feat. Of course, that is unless you are someone who thrives on solving insanely complex puzzles that defy common temperaments. Simply put: It all starts by following the money, which by the way is also a decent proxy for following the data. My Uncle Lewis was a stockbroker in Detroit for most of his 89 years. He was the kind of [...]

By |2020-10-05T21:03:02-04:00October 22nd, 2015|Open|
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#Digital Research

We live in a “do-as-I-say-not-as-I-do” immersion chamber. Such seemingly benign hypocrisy is so pervasive that we are blindly oblivious to it. And, though there are many targets at which we could point this critique, let’s take the research and advisory business for capital markets and financial services – since the FSI ecosystem is the purpose of the work we are starting here. Digital everything / digital anything quickly went viral; becoming the bumper sticker for 2015. Those of us in thought-leadership and punditry circles spent the last several months insisting to our clients that they absolutely must leave their analog legacies behind and become more digital immediately – or else all manner of doom and gloom will wash over them. Good news: this mantra is way overdue – and will need to be reiterated with greater specificity and maturity for the foreseeable future. And, though becoming increasingly pervasive in industries like retail and entertainment over the past several years, the concept of digital transformation is quite new to the financial [...]

By |2020-10-05T21:02:53-04:00October 19th, 2015|Open|
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