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by Tom

The Data Revolution according to Sir Tim

April 24, 2012 in Financial Services, Tales of Tools

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Ever heard the inventor of the web, knighted Sir Tim Berners-Lee speak about “The Data Revolution”? Neither did I and apparently my expectations were somewhat wrong. Just judging from the scope and depth of his works Tim has done wonders for the standardization and openness of the internet. And he has a wealth of ideas and is bubbling with new and upcoming trends. But there’s another scale of his genius… It’s how confusing his series of facts and topics seems to the uninitiated… If confusion is a function parameter of the genius – then this speech at the Teradata Universe in Dublin was true genius. Excuse my ignorance…

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by Tom

From Big Data to Smart Dialogue

April 23, 2012 in Private Banking, Success Stories

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Listening to the speech of Erik Brynjolfsson, Director of the MIT Center for Digital Business at the Teradata Universe Confence in Dublin, some fascinating aspects for the financial services came up. Erik and his team researched the usage and characteristics of the components that make up the overused “Big Data” buzzwords. The most interesting bits are Nanodata, Now-Casting and HiPPOs:

  • Nanodata – the data items we use to base our Analytics on are getting ever smaller. From true customer transactions we have moved to clickstreams, tweets and Facebook likes and dislikes. In most banks and financial services we see these information commodities only used fragmented and very partially, compared to the telco or retail industry.
  • Now-casting – digital communication is no longer a one-way road. Leveraging social communities and micro-blogging platforms like Twitter innovative companies can actively involve their customers in company decision making. It’s true theat banks have a hard time listening to their clients in the real world but extending the feedback loop to digital channels would be a smart way to drive down cost and listen to different clients and partners than those that choose to visit a real world branch.
  • HiPPOs – or the Highest Paid Person’s Opinion – is a reputation based insight, that evaluate information not following plain statistics but filter and weigh who’s best suited to make a more valid and more educated decision. Imaging wine guru Robert Parker would not simply evaluate a new wine but use his human tasting capabilities to engineer and create a new wine. Similarly Google search analytics provide an easy and publicly available insight into people’s interests and hence upcoming actions. And in predicting housing sales data the Nanodata based prediction were 66% more accurate than those of highly paid experts.

As a conclusion the research found that a data driven decision approach always wins over the expert or HiPPO based approach. One of the key concerns that Erik shared is the level and maturity of privacy and security in conjunction with public data – he predicts that we will have multi-billion dollar event within the next 12-24 months.

Most of the time university research is far removed from day to day work of operational financial services, but Erik and his team at the MIT media lab have shown some great examples and explains what big data will be about and how you can put it into practical use today. Check them and their works out at his profile & paper.

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by Tom

Ethical Finance – what’s your take on the priorities?

Februar 23, 2012 in Financial Services, Help Wanted

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Driven by our membership and engagement at the Hub Zurich, we have started an ethical finance working group, trying to get a hands-on approach in changing the ethics of the finance industry. However we’re still discussing the priorities at hand. And obviously we would very much like to understand, what the general public thinks most important:

  • Driving a bottom-up, grassroots change campaign forcing retail banking to react and adopt
  • Engaging big players in a transparency & impact reporting movement => changing the system from within
  • Leveraging the philanthropy business of both banks and their clients to find a middle ground of the first two extremes

What’s your view on where we should put our focus?

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by Tom

Does off-shoring help this world to become a better place?

Februar 15, 2012 in Financial Services, Success Stories

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I fully believe in the paradigm that off shoring helps this world to become a better place. Over time I’d agree, and way too slow for us to be satisfied, I’d agree as well. But here’s my 5p’s why I still think we’re heading the right way:

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  • Education matters – for all the people and raising economies out there it’s a clear sign that education helps to become more prosperous and earn a better living.
  • Getting even – while the outlook might be bleaker for some of us Westerners reaching a more level playing field in terms of jobs, opportunity and wealth distribution seems to me a good thing. Everybody just has to keep up its act – but we are still very privileged with the baseline we are starting from.
  • Flexibility is a must – while it still may be about labor arbitrage for some firms, off shoring is becoming more and more a required capability for many companies to be able to grow and maintain their profitability. Getting skills not available in your home market and becoming more flexible with economic up- and down-swings is getting even more crucial than shaving some dollars (Euros, Swiss Francs, Yen) off your payroll cost base.
  • Aspirations grow – almost all off shore service providers aim at reaching up the value chain and moving from plain headcount providers to service and solution partners. This will increase the pressure to innovate on both ends of the off shoring deal.
  • The facts compute – when you track the world stats on google analytics project on population growth and education and medical progress you can clearly see, that things have changed. While there’s still too much hunger and poverty in the world there has also been great progress in Africa, India, Asia and South America. In many countries a four person middle class household has become the norm not the exception.

I’d like to collect some success stories off your successful off shoring experience. Be they along the overall betterment path mentioned above or be they about organizational success in transforming on shore work to off shore opportunities. Give us your story and we’ll use it in our upcoming Hub session on ethical off-shoring.

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by Tom

Reporting Portal Quest for Help

Januar 11, 2012 in Financial Services, Tales of Tools

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We are about to engage in a new challenge where a host of old legacy reporting solutions should be drawn together under one common and joint reporting portal. And while I’m quite aware of the various tools and technology options that are out there, I’m wondering on how and how far we could and should carry this idea.

I’d be very happy if you could help with some of your own thoughts & experiences:

  • Should we fuse and embrace Social Software? (the client is rather traditional and not used to embracing social SW in his daily routine)
  • Would you use the portal features of an established (and likely employed) reporting tool or go for a fully fledged independent portal framework?
  • Speed over Features – since speed ad completeness of integration matters more to our client than richness of features, we’d like to opt for a minimum starting point. What would you consider the minimum features mandatory?

Thanks a bunch for any experience & insights shared…

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by Tom

Five steps to conquer the report dragon

Januar 8, 2012 in Financial Services, Help Wanted

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Have you ever faced a reporting inventory of over 2500 reports? And alongside several stakeholders with slightly opposing views:

“That’s a wealth on information on which we act and steer and decide. We’ll need every single one of these reports”,
says Mr. Fact Junky

“Every business can be run on 3 max 8 reports, no matterwhich size, industry or geography”,
says Mr. Lean’nMean

And I guess the truth lies somewhere in between those two extremist views. Here’s how we have approached the reporting dragon in the past. Maybe you can add & share your experiences:

  1. Introduce the target grail – There is no holy grail of reporting tools and strategy. Yet when listening to the different departments and vendors you feel like amidst the crusades – religiously fought over existing data marts and new pet projects. Usually to focus a divers and heterogeneous group of BI users on a common strategy & direction you’ll have to transport the benefits of standardization and centralization of data. Paint a picture where the data is common and normalized but the freedom of creating new and independent reports, analysis and dashboards remains.
  2. Find a fast success story – your most common reaction will be “yeah, right, you’re thest that tries…”. If you have a good understanding of the dragon’s weak points you can tackle a small but important pain point. For example don’t try to solve all cost reports at once, maybe just start with headcount.
  3. Build your round table – be aware that you will not slay that dragon one handed, you’ll need to build your host of supporters. Sponsors usually are a good place to start and usually they are more convinced if you can tell them about ways to increase revenues rather than only save cost.
  4. Offer services for the lazy & creatives – with BI there is no size fits all, but two usually do surprisingly often. Offer a full service, highly customized and tailor-made service from data integration to report creation full through to the editorial commenting process. As a second option offer a DIY self-service infrastructure. You’ll be surprised how much of your BI center’s workload will fall away, when your tech and data savvy users start to lend a hand. Last and optionally it’s a good idea to offer an ad hoc analysis team to generate fast answers to the questions of stakeholders that cannot do it themselves and don’t need the fancies of a full report or dashboard.
  5. Slay the dragon – Turn them off – regularly that last and obvious step is ignored or disregarded. Once you have tuned your user community to the target state of mind they will accept and welcome if you replace their former partial data marts & manual reporting processes and guide them toward the common future.

Sounds too easy and straight for you? I agree that for large organizations we’re usually talking a 2 to 3 year process and not a single big six month project. But once embarked on a common trail it’s amazing how much momentum your own report crusade can develop.
Start to raise your banners.

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Have a fast and successful start

Januar 1, 2012 in Financial Services, Private Banking, Tales of Tools

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Having passed off the afterglow of the New Year’s fireworks and enjoying the privileged banking holiday our eyes turn towards the challenges of the year ahead. Let’s see how solid strategy and hands-on execution turn your plans to bottom-line impact:

  • KYO – Know your objectives – don’t just start off the new year with leftovers from the last. Instead take stock and reflect and decide whether your priorities are the right ones. Is it important and is it urgent?
  • CSU – Create sense of urgency – use everyone’s reset button and good intentions to start off in a positive and constructive mood where everyone knows what his mission and purpose will be
  • EWYD – Enjoy whatever you do – not talking away that there are enough tasks no-one likes to complete, but whenever you treat yourself and your team to the quantum fun you deserve, the work gets done faster and easier. So don’t forget to celebrate and have fun. Surely you’ll find enough reasons to do so – last year’s left-over celebrations are not to be forgotten

Have a great start of a great 2012 to all of anvalad’s employees, clients, friends and partners.

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Merry, peaceful and transparent

Dezember 23, 2011 in Private Banking

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We wish all our clients some peaceful and merry days. And since the year-end is positioned very friendly for entrepreneurs this time round, we’ll extend our holiday greetings to extend towards a list of new year’s resolutions we want to see put forth by banks for 2012. In the new year our favorite bank will:Vegi Languste

  • sell only products that fit the client’s risk profile and time horizon
  • measure their own success by the performance generated for their
    clients
  • establish a triple bottom-line reporting for investment products
  • be getting serious about mobile advice and social sales
  • understand social entrepreneurship as a complement to philanthropy banking

Obviously we are looking forward to many engaged discussions in 2012 and welcome dedicated guest writers…

Indulge responsibly and have fun!
your anvalad team

 

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by Tom

Leadership Wrap-Up

Dezember 15, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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So to wrap-up all of these practices into a short but comprehensive summary:

  • leaders create an environment of active mutual support.
  • And any environment is only defined by what we create, promote or allow.
  • In that sense leadership has nothing to do with organizational rank or financial powers but all to do with your inner wiring and worldviews.

You can start leading today. Just don’t believe everything you think.

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by Tom

Stories – the leadership conversation

Dezember 9, 2011 in Financial Services, Investment Banking, Private Banking, Success Stories

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But how can you determine a good leadership conversation? Practiced and mature leaders have established a solid social identity through conversations and they apply the following:
- They challenge business as usual and think beyond what’s deemed appropriate and possible
- In speaking for the future they inspire alignment along a shared vision
- They are enabling others and foster collaboration amongst teams and individuals
- They model the way, act as a role model and “walk the talk”
- And they encourage the heart in recognizing success and celebrating it

Obviously putting this guidance into practice will not be straightforward and you will have to be prepared to deal with setbacks and iterations. And that is the crucial point where you really can make a difference. Whenever you and your team commit to a new possibility and run into an obstacle you can choose a response in both speaking as well as acting. So whatever you say or do will either perpetuate the status quo or move you further on the path towards your objective. And to do the latter it is best to seek the active support of your colleagues and to reaffirm the commitment originally pursued. It is this spiral of setting an ambitious objective and dealing with setbacks that takes time and perseverance. To honor this path you will have to take a clear stance towards what you consider realistic and ambitious: “A true leader always speaks respectfully about the past, realistically about the present and optimistically about the future”, says Jack Weber, Professor of Business Administration at the Darden Graduate School of Business at the University of Virginia. In his over 20 years of researching and teaching leadership Jack and his wife Carol have helped many global organizations to manage the transformation towards a leadership driven culture.

Another practice that differentiates the leader from the manager is how this positive attitude towards a great future is established. While managers usually make assertions, leaders make declarations. An assertion is something that can be underpinned by a plan and usually can be proven. And though this is certainly required for many administrative tasks it will not promote thinking outside the box of your trained worldview. When JFK dreamed of putting a man on the moon within a ten-year time frame, people didn’t think it would be possible and he himself had no idea how it could be done. But still in declaring this visionary possibility and by repeatedly re-asserting his commitment to that endeavor he was able to motivate and align a whole nation to work towards a glorious target. And it’s these BHAGs – big, hairy, audacious goals – that fuel many amazing leadership feats. Take for example the young team that decides to turn an average fish stand in a Seattle open air market into a buzzing, thriving and globally known example of business leadership (check out the great videos at http://www.pikeplacefish.com/). Obviously you will have to determine and pursue your own BHAG and be sure to keep a firm grip on it during setbacks and disappointments. One fact that can also help you through these difficult stages is the statistic, that true innovation adoption only requires a mere 16% of critical mass. In his book, “The tipping point”, Malcolm Gladwell outlines how new ideas and trends become mainstream. Usually only 2% of any sizable population can be considered pioneers, who take on risk and try out new ideas early. Another 14% can be considered early adopters who observe and evaluate the experience made by the pioneers and are eager to still obtain a fast-mover bonus in utilizing new trends and technology. And once you have convinced those 16% you will enter the mainstream and late adopters usage patterns where existing trends propel themselves without the need to be actively pushed forward.

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