The New Core: the questions to ask

Deloitte Asia Pacific FS Technology Lead Partner Clifford Foster outlines the trade-offs needed between how technology-driven innovations raise customer expectations, offer new sources of revenue, and transform the competitive landscape, and how enterprises’ extensive IT infrastructures and systems enable them to run their existing businesses, with a wide range of products and channels to support.

When moving into the future, these existing assets can be an advantage or disadvantage. To determine next steps the questions to ask include:

  • Which established systems provide a competitive advantage?
  • What needs to be adapted and leveraged differently?
  • Which systems are impediments that need to be replaced or scrapped?

Organisations have to figure out how to harness these existing IT assets and capabilities to meet their current needs, while positioning their businesses for the future. They need a clear, executable, strategy on how to leverage and integrate emerging market services into their offerings quickly and smoothly; while continuing to meet regulatory and broader stakeholder requirements.

At a minimum this strategy will need to consider:

  1. Isolating the nodes in the new core

    The organisation will need to implement technology and practises that isolates the core systems in the IT environment. These core systems can be wrapped as interoperable nodes that interact with other business system nodes, to deliver functions that are vital to the operation of the business.

    Although this may not seem to be too different to the IT environment that it has today, it has created untapped potential waiting to be exploited to the benefit of the organisation and its stakeholders.

  2. Build the core network to unlock the potential

    There is value in the nodes. But even more value in the network that connects these nodes within the organisation. A core network provides a clean and secure gateway for connecting nodes within the organisations and external nodes or services external to the organisation. This allows internal teams, as well as chosen third parties, to innovate and implement new ways of working.

    As with Metcalfe’s Law, the more nodes isolated within the IT environment, the greater the potential value to the organisation. This facilitates the flow of data, rather than restricting it to islands of information at the edges. For example, by generating new business insights from data in flight through the network, with data-at-rest in the core nodes you can provide, monitor, and action events at the heart of your business.

  3. New skills

    Exploiting the potential of the core and core network requires a new set of skills, management and governance. Combinations and intersections become more important than single data points.

    The enterprise should clearly consider its technology and information management operating model by considering what capability is needed to:

    • Build and maintain the core and core network?
    • Maintain the nodes in the core network?
    • Work with the business to exploit the potential value?
Rising to the challenge

The organisation’s that are best able to exploit the digital core will position themselves for a future whereby the value and assets within the enterprise can be rapidly combined with new market services to deliver unprecedented value to shareholders.

To find out more about our technology-driven innovation tech trend for 2018 click here

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