Much is made of how other industries have been transformed by a technical revolution, with Amazon, Apple, Uber and their peers being frequently quoted as examples of this change. In reality these firms have brought huge step changes in the customer experience and distribution elements of their industries, but I would argue had less impact on the manufacturing and production elements. I believe this is the most likely impact in our industry too.
So firm will likely face a combination of evolution and revolution decisions in the near future. How do firms assess their future technical landscape and safeguard their investments to empathise with these upcoming changes? There are some key steps that I believe they should undertake as part of all technology change projects.
Firstly I would like to see more emphasis on business agility. This assessment has many aspects, but key considerations are controlling the number and amount of simultaneous projects being undertaken and the size and length of large single projects. Firms who are focused internally, managing significant internal projects will almost certainly be unable to assess and react to external changes and opportunities in the market.
Secondly ensure that there is a strong and open relationship with suppliers and ensure you have very effective oversight and understanding of these organisations. It is increasingly critical that firms appreciate the opportunities and future constraints that suppliers will place on the business. If there is, as I believe, an increasing need for business agility, it is important that the incumbent suppliers and technologies can allow Asset Managers to change and evolve, and quickly. Many selection processes are still over weighted in favour of functional fit, and lack sufficient rigour in how the supplier and their products and services are evolving. For example, if you are purchasing software, can the supplier offer this as a service, what are their plans in this area? What is the ongoing cost of ownership? What is the upgrade policy and how much time and effort will be needed to upgrade the application?
Thirdly always ensure that the project is undertaken as part of the planned Target Operating Model. It should go without saying that all major investments must complement and support the business goals and timelines of the firm, but sadly many firms do not invest sufficiently in ensuring these critical elements are aligned. It is also increasingly important that large projects are fully understood by all parts of the organisation and the benefits are communicated effectively and widely supported. As IT silos become increasingly redundant, end users are increasingly critical in these projects.
Many wise people in our industry believe we are entering a period of significant change, most likely led by developments in technology. Periods of change and turmoil present the biggest opportunities for firms who are aware and able to react and the biggest threats to those who are not. This is true of the providers as much as the Asset Managers themselves. Selecting and working with the right partners will be increasingly important. Some of the large and popular suppliers of today will be the wrong partners for the future.
As the industry changes, firms must quickly adapt and ensure that they change their processes, particularly around selection and supplier management, to ensure they have the maximum business agility possible. Even if you are not totally convinced that this is the case, are you prepared to bet the firm on the current status quo? In my eyes it is a brave or foolish person who does.