The shift to digitization is on the agenda of a raising number of companies in various industries. McKinsey published an article discussing how asset managers, who were described as digital laggards, can achieve what is referred to as digital alpha to better compete in the digital economy. Insights from the article are derived from the company's Performance Lens Global Asset Management Survey, encompassing 300 firms worldwide. Out of these, only a rough 20 were considered as asset managers creating digital alpha.
We've highlighted some insights as to what led to these firms' success:
What is it that these leaders have in common, allowing them to generate greater value?
- They encourage a close partnership between technology and operations functions;
- Digital leaders are opting for two-speed technology strategies, meaning that they vigorously attack costs and technical debt all while investing in next-generation technical capabilities and operations models;
- Operations and technology capabilities are placed at the core of strategic differentiation.
How does one become a digital leader?
- Tone from the top - In these firms who have seen digital success, leaders pointed how both the CEO and CIO had made digital transformation initiatives a priority within the organization.
- Make the first "at-bat" count - Approach it as a journey. Having a signature initiative engaging multiple parts of the organization and depicting a significant transition between old and new realities will contribute to convincing the skeptics.
- Keep scale in mind throughout - Building agile and cross-functional teams will be of the essence to rapidly scale capabilities through flexible and reusable technologies.
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