Roland Berger’s New realities in central banking: The rise of cryptocurrency

Minting a central bank digital currency: Roland Berger envisions the emerging digital future.

2017 is heralded as the dawn of digital currencies in the financial services industry. Amid all the hype, it is important to sift through and identify the key messages relevant in the world of finance.

In our previous THINK ACT edition, New realities in central banking: The organizational challenge , we examined the structural changes and transformation necessary for central banks to become high performance organizations.

Technology is just a means to an end: Banks need to follow five crucial steps.

In this edition, we reveal the impact of digital currencies on central banks, explain the underlying technologies, and make recommendations for central banks in the digital age.

In order for central banks to maintain relevancy into the future, they are tasked with evaluating the development of a central bank digital currency.

Central banks need to follow a clear five step roadmap – from the first vision to the national rollout.

Having currency represented in a digital manner is nothing new. In fact, this has been the case since the digitization of communications.

At present, in developed markets nearly all money is held and exchanged by digital means in the form of information and only a small percentage of all money in circulation exists in physical form.

While a central bank digital currency will not completely replace physical notes and coins any time soon, adoption rates are difficult to predict. There can be no doubt that these digital technologies are here to stay.

Read all in this paper

Source: New realities in central banking: The rise of cryptocurrency — Roland Berger


McKinsey & Company: Improving the #customer #experience to achieve government-agency goals #cx

The benefits of a customer-centric strategy aren’t limited to private-sector businesses.

Government agencies at every level can gain by putting the needs and wants of citizens first.Across the business landscape, savvy executives are increasingly asking the same question: What do my customers want?

They are coming to realize that, whatever they offer, they are in the customer-experience business.

Technology has handed consumers growing power to choose how and where to buy products and services, and customer-friendly leaders such as Amazon and Apple steadily raise customer expectations for superior service ever higher.

We find that how an organization delivers for customers is beginning to be as important as what it delivers. Our research shows that companies that systematically put customers first create inroads against competitors, build cultures that benefit employees as well as customers, and improve the bottom line from both the revenue and cost sides.

The customer-experience phenomenon

This may seem far removed from the work of federal, state, and local governments, but it offers important lessons. True, agencies rarely have a direct competitor from which they are trying to capture market share. Nor do disruptive start-ups typically emerge to steal their customers. Yet the rationale for agencies to improve the citizen experience may be just as powerful.

For enhancing an agency’s ability to achieve its stated mission, outperforming in efforts to meet budget goals, and engaging employees in a superior culture of citizen service, customer-experience improvement efforts offer public agencies far-reaching lessons.

Central to any successful customer-experience program is a focus on identifying, understanding, and mastering the customer journey: the complete end-to-end experience customers have with an organization from their perspective.

In essence, improving citizen experiences requires more rigorous effort to improve citizen journeys across channels and products. Like customer-focused businesses, most agencies focused on serving citizens typically think about touchpoints: the individual transactions through which citizens interact with the agency and its offerings. But this siloed focus on individual touchpoints misses the bigger, and more important, picture: the citizen’s end-to-end experience.

Only by looking at the citizen’s experience through his or her own eyes—along the entire journey taken—can you really begin to understand how to improve performance meaningfully.

Read all: Improving the customer experience to achieve government-agency goals | McKinsey & Company

My point of view: Looking at many government agencies there is a world to win choosing such an approach. But legislation, politics, back-log technology and a resistance to change are major obstacles.

From disrupted to disruptor: Reinventing your business by transforming the core | McKinsey & Company

Companies must be open to radical reinvention to find new, significant, and sustainable sources of revenue.

When Madonna burst onto the scene in the early 1980s, there was little reason to suspect that she’d have more than her allotted 15 minutes of fame. But in the three decades since her debut album, she has managed to remain a media icon.Her secret? “Madonna is the perfect example of reinvention,” Janice Dickinson, renowned talent agent, has said. Fittingly, the name of Madonna’s sixth concert tour was “Reinvention.”

Madonna may seem like an unlikely touchstone for modern businesses, but her ability to adapt to new trends and set some others offers a lesson for companies struggling with their own digital revolutions.

That’s because the digital age rewards change and punishes stasis.

Companies must be open to radical reinvention to find new, significant, and sustainable sources of revenue. Incremental adjustments or building something new outside of the core business can provide real benefits and, in many cases, are a crucial first step for a digital transformation. But if these initiatives don’t lead to more profound changes to the core business and avoid the real work of rearchitecting how the business makes money, the benefits can be fleeting and too insignificant to avert a steady march to oblivion.

Simply taking an existing product line and putting it on an e-commerce site or digitizing a customer experience is not a digital reinvention.

Reinvention is a rethinking of the business itself. Companies need to ask fundamental questions, such as, “Are we a manufacturer, or are we a company that enables customers to perform tasks with our equipment wherever and whenever they need to?” If it’s the latter, then logistics and service operations may suddenly become more important than the factory line.

Netflix’s evolution from a company that rented DVDs to a company that streams entertainment for a monthly subscription to one that now creates its own content is a well-known example of continuous reinvention.

Reinvention, as the term implies, requires a significant commitment. From our Digital Quotient® research, we know that digital success requires not only that investment be aligned closely with strategy but also that it be at sufficient scale. And digital leaders have a high threshold for risk and are willing to make bold decisions.

But companies don’t have to wait far in the future to realize those benefits. We’ve found that 60 to 80 percent of total improvement targets can be achieved within about three years while also laying the foundation for future growth.

For all the fundamental change that digital reinvention demands, it’s worth emphasizing that it doesn’t call for a “throw it all out” approach. An engine-parts company, for example, will still likely make engine parts after a digital reinvention, but may do so in a way that’s much more agile and analytically driven, or the company may open up new lines of business by leveraging existing assets. Apple, with its move from computer manufacturer to music and lifestyle brand through its iPhone and iTunes ecosystem, reinvented itself—even as it continued to build computers. John Deere created a whole series of online services for farmers even as it continued to sell tractors and farm equipment.

Read all: From disrupted to disruptor: Reinventing your business by transforming the core | McKinsey & Company

Kuudes’study – The Informed Consumer

Understanding the customer is a crucial part of our work at Kuudes. We accordingly decided to conduct a thorough study of the motives and most recent trends underlying consumer choices and tour the whole of Sweden to interview people

Read all: Swedish study – The Informed Consumer