The Future of Service Provision and the Middle Office

  • Posted by Suntec
  • April 27, 2016 2:22 PM BST
Service Provider Enterprises of all types (Banks, Telecoms, Utilities, Insurers, Governments especially) face significant disruptive changes arising from the emergence of the Digital Economy. Innovations including Cloud, the IoT, mobile and digital channel emergence and Big Data, taken together with market changes such as deregulation and the entry of new, more agile players have created conditions which alter the way in which service providers need to behave in order to remain competitive, maximise customer lifetime and shareholder value.

Historically, competition was very limited and providers delivered simple services (gas, electricity, voice telephony or current banking account) to their customers using very large-scale monolithic organisational structures, processes and aligned IT systems to define products, find and on-board customers and manage their accounts over decades. Customer engagement was limited to enrolment, a monthly or quarterly paper invoice, and handling a single payment per bill. Satisfaction with the service provided generally ranged from disinterested to outright anger when customers felt abused by a perception of misleading and confusing tariffs, delay or failure to pass on wholesale market changes in price to consumers, and a lack of transparency and openness in their dealings with the service provider.