digital frontier

Can (Digital) Transformation Be Measured?

A sextant is an optical navigation device used by sailors starting around 1730. With practice, it can prove quite accurate in plotting courses. Though the contemporary digital equivalent - a global positioning system (GPS) - has become the mainstream tool for navigation, sextants are still in use today among a small but avid group of yachtsman, survivalists and cognoscenti. Keep this migration in mind as we walk through today's question: Can (digital) transformation be measured? Our answer to this, of course, is yes - however, as in most cases, the specificity of measurement is data dependent. So, the qualified "yes" to this question, for now, relates to measuring transformation at the enterprise level. This is because the necessary enterprise data is relatively easy to find in the financial disclosures of the companies in our initial target sample. There is also rhyme and reason to starting at enterprise level because it plays squarely into our long term vision to define the total value of technology spending in the financial services ecosystem - [...]

By |2020-10-05T21:08:42-04:00September 20th, 2016|Open|

#DigitalFrontier: Guiding Lights for the Analog Galaxy

Before everyone heads off to worship at the Altar of Tryptophan for a few days, I wanted to share some updated analysis: (I promise to keep it as short as possible, but unfortunately no less dense than usual.) In a recent post, #Technical Leverage: Can You Defy Your Scale?, I added Google’s (and Virtu Financial’s) RPE (revenue per employee) analytics to our core assembly of the 51 largest global banks. Given Google’s stand-out RPE of US$ 1.23 million (2014), I developed a hypothesis that this was a common theme among similar / Internet-related leaders; that perhaps there was a pattern that would help us better describe and understand the nature of the digital revolution. Before we go to the visual, it is often the case in the search for meaning in new mega-drivers that there is a refinement of language and labeling exercise that needs to take place. After all, if we are too cavalier about the definition of new mega-drivers – if “digital” is in fact new at [...]

By |2020-10-05T21:04:38-04:00November 24th, 2015|Open|

#Technical Leverage: Can You Defy Your Scale?

If you believe the latest bromides, “IT strategy is business strategy”, then the success of any business is predicated on the deployment of technology – which includes the perpetual coordination of hardware, software, data and IT-related personnel (or human capital). Alphacution has applied this hypothesis to the financial services industry (FSI), first by modeling the technology-related spending of 51 of the largest global banks – arguably among the biggest buyers of technology in the FSI ecosystem – and then generating a series of benchmarks, analytics (many of which fall under the label, “T-Greeks”), visuals and narratives to describe how each market actor is performing in that ecosystem. Off the back of this first version of the Alphacution Composite Model, regional and global industry patterns also emerge, in addition to entity-specific metrics. Focus on Revenue per Employee One of the most fascinating pictures we have been able to generate in these early stages of the modeling is a normalized ranking of the sample banks by revenue per employee (RPE), where “employee” [...]

By |2020-10-05T21:04:20-04:00November 12th, 2015|Open|