Digital Transformation of
Banking Services
GENERAL OVERVIEW: TECHNOLOGICAL TRENDS - RELATED
ISSUES AND IMPLICATIONS
The book ‘Future Shock’ by Alvin Toffler
Past 50,000 years if divided into lifetimes of 62 years each, we get 800
Lifetimes. Out of the total Lifetimes
Fully 650 Lifetimes Man lived in Caves
During Past 71 Lifetimes Possible to Communicate
from one Lifetime to another
through writing
During Past 7 Lifetimes Ever seen a Printed Word
During Past 5 Lifetimes Possible to Measure Time
with any Precision
During Past 3 Lifetimes Used Electric Motor
Present, the 800th Lifetime Majority of all Material Goods
Accelerating Rate of Technological Change
Exponential Growth of Technology
Accelerating Rate of Technological Change
Travelling Speed Achieved by Human beings
Time Carrier Speed (mph)
6000 BC Camel 8
3000 BC Chariot 20
1880 AD Steam Locomotive 40
1960 Aircraft 500
1980 Supersonic Planes 1500
Now Space Capsules 25,000
Some Reasons for Exponential Growth of the Technology
Invention breed inventions
All inventions are pooled together for
communication facilities
Elements combined becoming more
powerful
Methods of problem solving improved
more and more swiftly
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Technology S-Curves
Graphical representations of the development/improvement of
a new technology
Compare some measure of performance (speed, cost, or
capacity, etc.) with some measure of effort (R&D spending or
intensity, person-hours, etc.)
The relationship between effort and performance is typically
S-shaped:
Initially, performance improvements per unit of effort are small
Once key drivers of performance are identified, rapid
improvement follows
Diminishing returns as physical limits reached
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Technological figure of merit
( examples : Speed of aircraft km / hr :
Speed of computation mips )
Time
S-shaped technological progress
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Some Explanation of the S-pattern Growth of Technology
Some Reasons for Exponential Growth at early stage
Invention breed inventions
All inventions are pooled together for communication facilities
Elements combined becoming more powerful
Methods of problem solving improved more and more swiftly
But there is Limit to Exponential Growth
Reason,
As the discipline matures, fewer breakthrough occur
because number of possibilities decline
Therefore, Cumulative growth of a particular technological
parameter follows an S-shaped pattern over time/effort
Shifting S-Curves
Happens when an existing technology reaches the point of
diminishing returns (incremental improvement is not possible any
more!)
A new technology is often developed to challenge the existing
technology
Initially, the new technology is usually inferior to existing technology on key
dimensions, such as quality, performance, reliability or simply higher
development cost and higher price.
The quality and price of the first digital cameras (cost $1,000) was
inferior to that of disposable 35 millimeter cameras (cost $10).
But the new technology has greater potential for performance
improvement.
Shifting S-curve example
Both same products
but are based on
totally different
technology
Is the VOIP radical or incremental technological innovation?
Usually a new /radical technological innovation which will be used as a base for an
existing products (traditional camera vs. Digital camera , etc.)
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Latest technology
( Rocket propulsion
VLSI microchips )
( examples : Speed of aircraft km / hr :
Individual and overall
Technological figure of merit
S-shaped growth pattern
Speed of computation mips )
Intermediate technology
( examples : Jet propulsion
Integrated circuits)
Intermediate technology
( examples :
Turbo-jet propulsion engine
Transistorized machines )
Old technology
( examples : Propeller engine aircraft
Vacuum tube calculators )
Time
Sequential S-Shaped Technological Change Progress
Today technology is inextricably linked with human livelihood
Technology and Man Tool for amplifying human abilities and
conditioning living surroundings
Technology and Society Aid for increased unity as well as diversity
Technology and Production Resource for transformation of available inputs
into desirable outputs.
Technology and Industry Instrument for achieving higher productivity and
growth in market share
Technology and Nation Wealth for socio-economic development & for
improving standard of living
Technology and Nature Device to conquer, control, exploit, degrade,
conserve, recycle
Technology and World Source of Power to destroy opponents or to
bring everybody closer to unification
Impact of Technological Change
A host of concurrent trends throughout the world
Shrinking distance barrier for physical movement of people
and goods due to dramatic improvements in transportation
technology
Shortening time delay for all kinds of social transactions
resulting from sophistication in communication technologies
Enabling real time audio-visual simulations for diverse
learning and entertaining in virtual space using multimedia
technologies
Harnessing artificial intelligence that can mimic humanness
in robots and expert systems though computer integrated
technologies.
Relaxing space related constraints by reducing physical size
of products and support infrastructure through miniaturization
technologies.
Offering alternatives to overcome shortage of superior
property materials and energy by molecular and nuclear
technologies.
Manipulating biological processes for the production of food
and medicine using genetic technologies.
Globalization and Privatization and Information flooding
Passing an extra-ordinary time of very rapid socio-economic
change with
Globalization of market and service sources
Privatization of production and services
Constant flooding with information because of IT and
social media
Powershift in Organizations due to Technology
Information based coordination capacity is contributing to less
hierarchical organizations and creation of flatter and more
flexible corporations
IT enables effective decentralization with simultaneous
effective centralization in decision-making
IT permits top managers to obtain information more quickly and
accurately, but also allows middle and lower level managers to
be better informed to make more timely decisions
Easily available information helps everyone to form opinions
and ask questions
Other Global Trends
A series of politico-legal reforms are making countries
more interdependent. These include:
General acceptance of market-oriented economic
policies
Emergence of new trading nations
Deregulation of economies, liberalization of trade and
globalization of markets
Promotion of improved standard of business practices
and proprietary rights
We observe several Socio-Cultural shifts in all parts
of the world. These include:
Move towards a mass media promoted consumerism in
life style
Significant alteration of the demographic structure
through health and family planning
The acceptance of human rights
Pressure on family values, behavior, and attitudes due
to the influence of popular television culture
Technology has become the driving factor in
international competition
One of the key factors affecting profitability, growth and
competitive posture of firms
Plays a major role in industry structural change, and creating
new industries
A great equalizer in industrial settings
Many successful firms grew out of technological changes
Managers must anticipate implications of technology on
business
Customers are in the driving sit.
Well informed customers are now in the driving sit.
They can switch from one product/service provider to
another by just a click
Customer satisfaction and customer loyalty have
become important agenda of the business enterprises
In the present technologically dynamic era, without a continual stream
of innovations, any firm will soon fail to compete
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