Digital Transformation & Innovation Bootcamp

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Digital Transformation & Innovation Bootcamp

Business Models for Value Creation Are Evolving Quickly ... Burst Your Bubble of Belief

Hi Bootcamp Execs,

Thank you so much for your participation in the January session of Cutter’s Digital Transformation & Innovation Bootcamp. Coupled with Karim’s outstanding program and extraordinary ability to orchestrate the non-stop flow of new ideas, it’s the groups’ insights, questions, and debate that make the two days such a valuable experience for all.

For those of you who want additional reading, below please find a sample of content complementing the cases and materials provided across the two days.

I was so impressed with the way everyone applied Karim’s framework and teachings, and quickly generated new strategies and projects to prototype. This was rigorous digital transformation ideation in real-time. Kudos to all, and thank you, again!

Karen Coburn
CEO, Cutter Consortium


Figure 1 — Emerging types of collaboration.

Painting a New Financial Services Landscape

by Bjorn Cumps

Traditional banks, big tech firms, and new fintech startup ventures are the three major players that together will help shape the new financial services landscape. Are they all going to compete? Not necessarily! We are already seeing the first forms of collaboration between these different players materialize.


Asia’s Payments Revolution

by Andy Yee

The economic gains brought by digital payments are significant. Greater financial inclusion and less friction in commerce lead to increased spending on goods and services. This, in turn, creates a virtuous economic cycle whereby increased consumption translates into more jobs and higher income. Moody’s Analytics estimates that increasing electronic payments contributed an additional $296 billion to consumption between 2011 and 2015, or a 0.1% cumulative increase in global GDP during the period. They also created 2.6 million jobs on average each year. By harnessing payments innovation, Asia can further accelerate its economic growth.


Distributed Ledger, Distributed Consensus, and Their Impact on the Financial Services Market

by Karolina Marzantowicz, by Maciej Jedrzejczyk

Many observers believe that distributed ledger technology (DLT) will bring fundamental disruption to relationships in a borderless, modern economy that has become more decentralized and more connected than ever. A recent report from the World Economic Forum pointed to blockchain — one potential implementation of DLT — as a revolutionary decentralized trust system that will reshape the global economy. The UK government has been researching DLT for some time now, exploring how the government can use the technology to benefit the country and its citizens. The bank-backed R3 blockchain consortium has gathered key players from the financial markets to work together on blockchain adoption in the financial industry. The year 2016 will definitely be remembered as the moment when blockchain and DLT emerged into the mainstream.

Figure 2 — Mining blockchains, blocks, and transactions

Fintech and Blockchain for Senior IT Managers

by Steven Kursh, by Arthur Schnure

Blockchain is most simply defined as “the first native digital medium for value, just as the Internet was the first native digital medium for information.” Blockchain has gained great attention, investment, and development because it addresses two of the riskiest aspects of life and business on the Internet: transactions and trust. We’ve long recognized the security, privacy, and trust issues that plague the Internet, and since the early 1980s technologists have been working on a solution. For transactions, intermediaries have made possible the trust and security needed to complete transactions and until now have been the best method for completing transactions with trust. However, as we know, security has unfortunately been a weak point, with data breaches leaving individuals’ personal and financial information vulnerable and putting trust at risk.

Figure 2 — Emerging types of collaboration.

Toward Digital Financial Services Ecosystems

by Bjorn Cumps

Digital transformation and technological innovation are reshaping the financial services sector. Today the sector is confronted with both large, established tech companies like Apple, Google, Amazon, and Facebook and small fintech startups that are moving into the financial services space. From a sector perspective, it is clear that a lot of the innovations focus on disintermediating the incumbent organizations. There is a clear move toward more decentralization and peer-to-peer (P2P) collaboration. Blockchain technology enables value transfers through a decentralized, P2P consensus process. International money transfers are drastically improved using P2P operating models, new P2P insurance solutions are created, and both lending and capital raising now take place on P2P platforms. 

Philip O'Reilly

Fintech and the Digitization of Financial Services — Opening Statement

by Philip OReilly

We hope the articles in this issue of CBTJ will advance the state of the knowledge for all readers, regardless ofyour specific area of interest in fintech. Whether youwish to gain an overview of the emerging fintech themes, broaden your knowledge of blockchain tech­nology, or understand the impact these technologies arehaving on the insurance and payments industries, there are learnings for you here as you continue on yourfintech journey. 

Figure 1 — Playing Go.

Google's AlphaGo: A Triumph for Cognitive Computing

by Paul Harmon

AlphaGo is a major breakthrough in cognitive computing; it is a software application that can successfully play the hardest strategy game that people play and can beat human experts at it.


Enabling Agronomy Data and Analytical Modeling: A Journey

by Mohan Babu K

Farmers and the agricultural companies that service their needs deal with vast amounts of structured and unstructured data. Analysis of such data gathered from across a variety of growers and growing conditions, combined with data from other sources — including satellite and drone imaging, field-level sensors, weather, and other historic data — can provide insights to enable farmers to make timely decisions that can improve their yields and minimize losses due to unpredictable changes in weather.

Philip O'Reilly

Beyond Fintech: New Frontiers — Opening Statement

by Philip OReilly

This issue focuses on key topics of interest for financial services organizations, namely equity crowdfunding, legacy systems migration, robo-advisors, test outsourcing, and refining the reconciliation process.

Bhardwaj Velamakanni

Implementing Design Thinking in Agile

by Bhardwaj Velamakanni

This Advisor presents an overview of improving Agile techniques and practices by using design thinking within the Agile space and describes three techniques from design thinking methodologies that tend to yield benefits to Agile practitioners.

Gustav Toppenberg
Executive Update

Data’s Story: An Enterprise Asset in the Digital Backbone

by Gustav Toppenberg

The existence of a digital backbone in an organization means that anyone aspiring and planning to transform different parts of the enterprise can leverage the digital backbone in a consistent and sustainable way, ensuring that each transformation effort connects and leverages a common platform. Digital transformation leaders are starting to realize that a powerful digital services backbone to facilitate rapid innovation and responsiveness is key to successfully executing on a digital strategy.

Effort score and priority rank for requirements in our sample project.
Executive Summary

Can We Measure Agile Performance with an Evolving Scope? An EVM Framework (Executive Summary)

by Alexandre Rodrigues

Can a method like EVM, developed to control projects with well-defined objectives, be applied to control product development initiatives that evolve continuously toward a “moving target”? In an Agile environment, we are faced with the dynamic evolution of a finite boundary of integrated scope, cost, time, and resources; this finiteness — essential for business management and decisions — is the cradle for project management techniques, tools, methods, and frameworks. The EVM method was first developed to help with managing complex R&D projects mostly characterized by an unstable, volatile, and evolving scope. It is therefore no surprise that EVM applies to Agile projects.


The Frontier of Fintech Innovation — Opening Statement

by Philip OReilly

It’s a pleasure for me to introduce the first of two special issues of Cutter Business Technology Journal (CBTJ) showcasing the thought leadership and cutting-edge research and development (R&D) being done in State Street Corporation’s Advanced Technology Centres in Europe, the Middle East, and Africa (EMEA) and Asia Pacific (APAC), in partnership with University College Cork (UCC) and Zhejiang University (ZJU), respectively. The articles in this issue represent a small sample of the output from the R&D undertaken in these centers, which combine academic excellence with real industry impact.

Executive Update

Business Architecture’s Role in Crisis, Risk, and Compliance Management

by William Ulrich

Every business must deal with crisis, risk, and compliance challenges. Teams chartered with addressing these challenges are often split across business units and regions, which fragments crisis, risk, and compliance management efforts. Business unit silos and related complexities obscure ecosystem transparency, which in turn constrain an organization’s ability to identify risks, assure compliance, and prevent and disarm crises. Business architecture delivers business ecosystem transparency as a basis for improving a business’s ability to collectively address challenges related to crisis, risk, and compliance. 

Curt Hall

Building New Business Models with Blockchain

by Curt Hall

Organizations are using blockchain to create new business models — exploiting its capabilities for optimizing contract management, financial transaction management, and identity management.

Nine Policy Recommendations for Managing Technical Debt
Executive Update

Managing Technical Debt: Nine Policy Recommendations

by Rick Brenner

For technology-dependent products, companies, institutions, and even societies, sustainability depends on learning how to manage technical debt. Like most transformations, incorporating new practices into our organizations will likely be an iterative process. We already recognize the problem, and researchers are making progress, albeit mostly on technical issues. This Executive Update proposes a policy-centered approach to the problem. It begins with a principle that can serve as a guide for constructing technical debt management policy, and then shows how to apply that principle to develop nine recommendations that enable organizations to manage technical debt effectively.

Bhardwaj Velamakanni

Emerging Agile Anti-Patterns

by Bhardwaj Velamakanni

Agile methodologies, however popular they are, bring their own sets of “smells” and anti-patterns to the table, sometimes causing irreparable damage to the team. While the sources of these smells are many, one of the primary culprits is the mindset that treats Agile as “yet another methodology,” totally ignoring the cultural aspect. This article throws light on some of the prominent smells that are emerging of late in the Agile world.

Jens Coldewey

Middle Management in Flux

by Jens Coldewey

If you start changing an organization toward an Agile mindset, there’s no real end. Agile is about creating an organization of continuous learning and the transformation is done when there is nothing new to learn, which will probably be never. This puts an enormous challenge on middle management.


Business Opportunities in the New Digital Age — Opening Statement

by San Murugesan

The articles in this issue present perspectives and ideas on business transformation in the digital age. We hope they will inspire and encourage you to visualize the likely future of business in your domain and to explore the opportunities it presents. Finally, we hope their insights will help you identify suitable transformation strategies and plans and, if needed, choose viable collaboration models for partnering with startups and other firms in your digital business efforts.


Unlocking Value from Digital Initiatives

by Joe Peppard, by John Thorp

Beyond buzzwords, what we are seeing is a seismic shift in the role of technology in organizations. Technology is more and more embedded in everything we do as we move into an increasingly hyper-connected digital world, a world in which technology is driving significant social, organizational, and industry change.

Digital Data Steams impact bottom line

Improve Customer Experience — Leverage Your Digital Data Streams

by Federico Pigni, by Gabriele Piccoli

In this on-demand webinar, you'll discover the strategic and tactical opportunities made possible by Digital Data Streams and the opportunities for improved customer experience made possible by DDS.

Lou Mazzucchelli

Why Are They Twittering? A Modest Proposal

by Lou Mazzucchelli

At the Cutter Digital Transformation & Innovation Bootcamp, Cutter Fellow and Harvard Business School Professor Karim Lakhani talked about digitally-driven disruption of traditional business models for value creation and capture, discussing platform models like Facebook and Twitter. To date, Twitter has clearly done a good job “creating value.” But unlike Facebook, it continues to struggle with the capture part of the equation.

social collaboration
Executive Update

Seven Ways to Gamify Social Collaboration

by Phaedra Boinodiris

Social collaboration is not about technology. It’s about connecting people, and it’s changing the way business is being conducted. Similarly, gamification is not about games. It’s about motivating the per­sonal and professional behaviors that drive business value. Together, social collaboration and gamifi­cation help companies reap great benefits — among them, the ability to deepen customer relationships, drive operational efficiencies, and optimize their workforce. 

Figure 1 — Tracing a roadmap to projects.

Using Roadmaps Strategically

by Roger Evernden

Roadmaps have two key functions in strategy planning. The first is to outline planned architectural changes that will deliver the required strategies; the second is to outline alternative ways to achieve the same results.


Technology Trends, Predictions, and Reflections 2017: Opening Statement

by Cutter Team

Just as recent global events have given us reason to pause and reflect, the pace of technology emergence and disruption is proving to be a source of inspiration and uncertainty. Transitioning to a digital world is front-of-mind for many business executives, yet finding the right path is an ongoing challenge. So we asked Cutter’s team of experts for their insights on some of the technologies, trends, and strategies that will be relevant in 2017 and beyond. In typical Cutter Business Technology Journal fashion, our call produced a wide range of opinions and reflections worthy of consideration as you chart your business technology journey for the new year.


AGI: A Threat, an Opportunity, or an Inevitable Unknown for 2017?

by Alexandre Rodrigues

Artificial general intelligence (AGI) is currently emerging as an area where recent developments are likely to have a major impact on the way organizations do business, societies organize themselves, and even on how we address values and ethics.

The fact is that AGI already exists in our daily life. A common example is the GPS systems present in many new cars manufactured today; and let’s not forget the drones being used to deliver pizzas and cars that drive themselves. While automatic pilots have been used in commercial planes for quite some time, what AGI is about to offer to general business and human activity is well beyond what most of us have seen so far.


The Tech-Driven Tech Backlash

by Carl Pritchard

2017 is going to be a year of strange winners, and perhaps the strangest of all will be a giant leap away from technology and back to solutions that don’t rely on 24/7 connectivity. With the onslaught of major hacks and Facebook embarrassment, the antitech crowd may have its best year in decades. 


Rapid Technology Innovation in Blockchain: Should You Be on the Front Lines?

by Nate OFarrell

One of the most prevalent blockchains in the world, Ethereum, is poised to switch from a proof-of-work (POW) algorithm to a proof-of-stake (POS) algorithm, likely in 2017, with the release of the Casper codebase. Why does this matter? Because blockchain technology is becoming increasingly relevant and prevalent in businesses across the globe. It holds great potential to disrupt how businesses perform basic transactions, from payments, to programmable, self-executing contracts, to identity verification.