It was ten years ago this year that The Wall Street Journal published “Why Does Software Eat the World?” emblematic article in which the author predicted the future belongs to next-generation technology companies. The author of the article is Marc Andreessen, one of the world’s best-known venture capitalists, who typically invests in good-looking early-stage, promising companies such as Airbnb, Facebook, Skype, or Groupon with good sense. Its portfolio also includes some of the world’s best-known fintech companies, such as Stripe, (Transfer) Wise, Coinbase, Robinhood, or Buy Now, one of the pioneers of Buy Later, Affirm. ten years ago, Andreessen said, “the next ten years will be about creative destruction, with fierce battles between incumbents and software companies.”
His expectations for 2021 have typically been met, and as he predicted , cloud – based services exploded, visual recognition and artificial intelligence came into tangible proximity and paved the way for the future of self – driving cars. The winds of cryptocurrencies have hit the central banks as well, launching digital central bank money projects in a row. The tough battle Andreessen had expected between the incumbents and the software companies was only partially fulfilled – at least in the financial industry. The bank-fintech “battle” has typically evolved into a partnership these days, but on the horizon there are BigTech companies marching step-by-step toward the financial industry. It is true that they do not want to become a bank for the time being, but it is also becoming increasingly clear that banks can only be second fiddlers in their digital ecosystem.
digital technologies no longer only enable us to create new products, services, a higher level of customer experience or automated processes more efficiently. With digital technologies, we can even reinterpret the functioning of our industry and create a new business ecosystem. provided by data collected about us. The data creates the potential for hyperpersonalization, which results in an increase in our customer experience and thus in the day-to-day use of the components of the ecosystem.
and the more content, payment card data and passwords stored there, the more difficult it will be for users and developers to switch between digital ecosystems.
Responding to ever-changing customer needs is the world’s largest multinational also posed a significant challenge to its companies. It has been recognized that digitalisation alone is no longer a sufficient condition to address the challenges. The key to the solution lies in the digital ecosystem model, which has been most successfully developed by BigTech companies through continuous experimentation, failures, and a wealth of experience.
BigTech companies have recognized that they may be able to transform industries due to the value chain has become modularly reorganized, and the relationships between actors in the value chain have become digital. The smaller the value chain, the more substitutes appeared on the surface. on-premise IT systems will be replaced by a microservice architecture and a cloud-based approach. Add to this the opportunities offered by 5G, the Internet of Things (IoT) and machine learning, an increasingly complex digital world (metaverse) unfolds before us, in which existence requires a new business approach, strategy and implementation.
The paradigm shift can be seen not only in IT but also in the business approach. Instead of or in addition to cost rationalization, maximizing the digital customer experience is now a priority. The way to do this is through the creation of real-time operations, which will also lead to a redesign of the entire value chain.
Companies that do not join any digital ecosystem and / or build their own are expected to ” the dilemma of innovators “will end up like Kodak, Nokia and many other companies that did not recognize in time what response they needed to meet the challenges of digital transformation. What could be these answers? How do banks build digital ecosystems on the model of BigTech? What will be the new directions of digital transformation? We are looking for answers to these questions at this year’s FinTechShow.
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