This article is based on his live speech. (PPT download address attached at the end of the article)
“Would rather live less than 20 years, desperately also want to win the big oil field”, wang Jinxi’s sentence is very familiar, today’s speech will start from a photo of him. What do you see in the picture below?
First, the company judged the well’s location to be between 46 and 48 degrees north latitude, roughly between Harbin and Qiqihar, based on Wang’s clothing. Second, the diameter of the well was deduced from the handle held by Wang Jinxi. Third, determine the density of the field from the photographic environment and calculate the approximate reserves and production. Of course, in this process, the company must have done a lot of research and analysis of oil factors, geographic reserves and other data.
Through this story, we can sense the importance of data storage and the power of digital transformation.
At present, the “fire” of digital transformation has been successfully “burned” from industry to finance. From my perspective, it not only includes some technical terms such as AI, cloud computing and block chain that we often talk about, but also includes a series of implementation practices driven by user needs.
I. Challenges and countermeasures of digital transformation
(a) industry general attitude: everyone is a demand porter
At present, the phenomenon of the entire industry is: from users to front-line employees, to the person in charge, and then to the headquarters, etc., through the progressive layers of demand, to achieve the final landing and realization, as shown in the following figure, everyone is the porter of demand.
1. The requirement path is long. The transmission of each level of demand will inevitably lead to the loss of information or excessive interpretation, and it is very likely that when the user’s demand is landed, it has completely changed its appearance, which is contrary to its original demand.
2. The demand decision-making chain is elastic. In the whole process of demand transmission, demand decision-making completely depends on subjective judgment and empirical judgment, without enough scientific and data support.
For example, at the beginning of this year, Hunan Finance Planned to upgrade its PC trading software and invited some typical users to do one-to-one interviews. In the interview, one topic was “How do you view the optimization and iteration speed of Hunan Finance Level 2?” However, through interviews, we found that 60% of the users had barely used the tool, and several active users said they did not know about the tool.
In our general impression, we would have thought that PC Level 2 tools were more marketable than mobile because of their wider boundaries and more extensible capabilities, but the results were very different. Based on the interview data, we expanded the sample size and obtained data verification again.
Therefore, from the point of view of requirement delivery process, instead of “I think”, we should start from “users think”, and we should consider how to realize scientific decision.
(2) From the beginning to the end: from solving certainty to exploring possibilities
In the process of changing from “demand porter” to “demand decision maker”, we need to solve two core problems:
1. How to go digital? This is the digital construction of the problem, it can help us see the digital bottom card.
2. How does digitization work? This is the process of digital output, its purpose is to help us figure out the digital bottom card, complete a better “playing cards”.
In fact, from infrastructure to user connection, to online users, and then to the accumulation of numbers, and finally to our model of analysis and generation of digital marketing strategies, the whole is a scientific digital decision-making link.
In previous cases, the “human” factors in the four things of bigger, but because of the digital this magic weapon, we will find the system factors of the impact of proportion is higher, through the way of human-computer interaction combination, finally achieve the goal of optimization and upgrading, the efficiency of resource allocation, which we think of the moment to do the most important significance of the digital transformation.
(iii) The jade of other mountains: digital transformation of banks
In the financial field, the bank is an industry with the highest digital penetration rate, which has important reference significance for securities and funds. Tian Huiyu, president of China Merchants Bank, put forward the idea of light banking transformation, among which the most critical element is digital transformation.
1. External traffic. CMB credit Card, in particular, has always paid close attention to the demand trend of young users. Therefore, in external cooperation, it will choose enterprises in different fields such as Didi, OPPO, Tuniu and Tencent to ensure real-time control of user demand through building characteristic ecological circles.
2. Internal construction platform. Unlike other banks, CMB chose to build its APP into a platform for customer management and service, and switched from card business to APP business early on.
3. User realization. In 2010, CMB launched the handheld life APP, hoping to get through the consumption life and finance through diversified product layout, so as to cope with the potential crisis of the gradual loss of young people. From the point of view of now, “China Merchants Bank” and “palm life” two apps have become China Merchants Bank users must have two apps.
4. Structural transformation. In my opinion, the structural transformation is the core content of digitalization. CMB has established the “Network Banking Division” in its headquarters to realize the transformation through inter-departmental coordination and digitalization drive. Meanwhile, the position of “digital GM” is set up to take charge of leading functions of digital innovation and transformation. On this basis, through the data support of strong optimization in the background, drive the financial products in Taiwan, and then form a digital closed loop through scene acquisition.
To sum up, for digital banks, their overall transformation path is from innovation of experience to innovation of science and technology, to innovation of ecology, and then to innovation of organization. They have created their own digital transformation path, which is a sample worthy of reference for the current large financial industry, including funds, insurance, securities, etc.
Ii. Ability and Choice of digital industry
(1) Value VS contradiction: Pain point is fact, demand is opinion
Focusing on the securities industry, we will find that there are huge challenges in data construction.
Scattered data and lack of unified standards; Data is hard to get through; Data accuracy cannot be guaranteed; Metadata is complex and confusing, inconsistent… Most of these pain points are unavoidable facts.
Also, also nots allow to ignore to the securities industry inherent industry demand, need to use digital and intensification of management to match, but in the process of management, most of the time can’t get to the relevant data, such as how to determine the marketing activity type, target customers, methods, channels, etc., these are all we need to pass the data to answer the question, Because such data are often not collected or not collected in time to do the collection, collation and analysis, which leads to barriers in business analysis and management.
In terms of rigid strategies, there are three points: first, IT technology construction is the foundation, how to cloud and service related requirements, and build an efficient IT service platform, which is the foundation that all digitization needs to consolidate; Second, digital talent pool, in the process of digital transformation, to undertake business while enhancing digital awareness; Thirdly, the data reserve, in addition to the internal data governance of the enterprise, whether external data need to be linked to form the overall digitization of customer sources, etc.
In terms of soft strategy, it also includes three aspects, namely data strategy, continuous resource investment and open mind. Digitization is not a node or a short-term stage, but a long-term process. During this period, how to do it for a long time and how to continuously invest resources are the problems that test the strategic positioning of enterprises. Only based on their own recognition of digital value, it is possible to promote the development of enterprise digital transformation.
(2) To learn from numbers: the application fields and scenarios of digital securities industry
Digitalization has a wide application ability to the whole securities industry. Every process of every link, such as marketing, risk control, investment and research, operation and wealth management, has the shadow of digitalization. As for which point an enterprise should start from, it still needs to combine its own resource endowment and strategic positioning to decide.
Including some online and offline linkage and transformation that Xiangcai is doing now, it is through this way, based on customer labels, to achieve accurate marketing and effect follow-up, so as to achieve the purpose of cost reduction and efficiency increase.
3. Digital practice of Xiangcai Securities
As a financial technology brokerage, Xiangcai Securities has long been qualified for the pilot of Internet business, and has reached cooperation with many Internet financial companies, accumulating experience and methods in the process of digital transformation. Details are as follows:
1. Get through all channels
Different from Internet companies, financial companies may have multiple platforms due to their natural nature: multiple apps, multiple PCS, multiple outlets, call centers, etc. Such fragmented channels lead to inconsistent service experience.
In view of this, Xiangcai call center, APP, outlets through, as far as possible to achieve the bottom of the account system through. Technology implementation means, only, in my opinion, more difficulty in operation and management, zhu through multiple channels, will consistent service experience, including the user’s every key nodes, such as opening an account, register, purchase products, etc., make the user feel different channels only zhu present form, That’s one of the things we want to achieve at this stage.
2. Strong organizational support
Behind the digital transformation of Xiangcai, we rely on our agile and efficient organization. In the past, the business boundary of financial institutions was clearly demarcated, and business and Internet did not affect each other. However, under the demand of digital transformation, it was inevitable to reach through all departments horizontally to complete cross-border and cross-business cooperation and collaboration. Therefore, Xiangcai broke the vertical function line inside the company and established the joint operation working group of the Internet platform.
If we compare our Internet platform to a mall, each direct-sale store in the mall needs the participation of people from different departments. At this time, our “Network Finance Department” will position itself as a “mall manager” to ensure the hardware facilities, and do a good job in the management of merchants and people flow to ensure the profitability of the mall. Each store is a business unit that is responsible for “store decoration,” “user experience,” “membership benefits,” “marketing activities,” etc., or cooperation between the store and the mall, through which joint operations can be easily achieved.
Internet operation is not the business of a certain department, but the business of the whole company, which needs to be led by the Network Finance department to achieve customer reconstruction of business processes and user experience through sharing and communication.
3. Scenario-based marketing
Whether it is internal coordination or external integration, our ultimate goal is to carry out scenario-based marketing through building blocks. Xiang designed a “Lego Project” in which each module is independent and can be added or combined in different situations, and then pushed to customers. After nearly a year’s efforts, we have jointly realized the overall scenario-oriented marketing through pre-service, intelligent data, unification of China and Taiwan, and online operation.
4. Improve the online answering rate of customer service
The average answering rate of the whole securities industry is less than 90%, but Xiangcai has achieved 95% online customer service answering rate, which is originated from xiangcai’s early research on the application of artificial intelligence in the service field. It has launched intelligent outbound call, intelligent quality inspection, VCR, etc., to liberate human resources through artificial intelligence and solve complex problems that are difficult to be solved by human resources. In addition, the APP on the employee side has the function of customer label, which connects customer information with positions, and makes relevant push operation based on user portraits, improving the quality and efficiency of service on the whole.
In previous communication with colleagues, we talked about that no matter how accurate the plan is and how detailed the scene is, it will eventually come back to strategic determination, transformation cognition and cultural integration, because only these are the most basic things for an enterprise to do digital transformation. If an enterprise is unable to make a choice at the strategic level, the final result will be worse than expected. Therefore, an enterprise should match the concept of digital transformation with top-level design, assessment scheme and organizational structure.
