This can capture the attention of news agencies to raise the profile of the institution as being a trailblazer and take aim at those customer segments that may aspire to be seen as adopting new innovation.
However, by being an early adopter of new technology, companies forego the ability to know the way in which consumers use it and how company processes need to adapt.
In September 2014, Apple released an electronic payment system called Apple Pay.
In the rush to become the first credit card issuers on the Apple Pay electronic payment system, some banks established customer care centres rather than extend the capabilities and capacity of their existing fraud prevention teams.
In so doing, the detection mechanisms were not implemented for the new technology and the banks found the rate of fraud to be much higher than traditional credit cards.
On the flip side, the rewards in adopting new technology can be very significant. In Apple’s case, the CEO, Tim Cook was able to proclaim in October 2014, that over one million credit cards had been registered in the first three days.
Not bad statistics, however the banks with higher levels of fraud, would have had customers impacted. These customers would be unlikely to refer anyone to their service anytime soon.
An early stage risk assessment when putting together the business case has significant value, and in the launch above, may have identified a risk worth mitigating.
Certain measures should be put in place to identify the risks of implementing something, which on face value “can’t fail”.
Business case development is one of these control mechanisms for any organisation, irrespective of size.
Proper assessment needs to involve all impacted areas of the business operation including training, processes, systems and collateral.
A technology shift in the industry brings these days a considerable following, primarily due to the cross over in consumer and business products.
Identifying what could be compromised using technology takes a brave leader who takes a balanced view against being driven by market trends.
Industry consultant and commentator Cherian Abraham, who in reference to the banks relationship to Apple, controversially said: “No one is bold enough to call the emperor naked”.
Business case assessment on a technology, needs to consider the following:
1. Qualify the quantum of the problem or opportunity the technology will address. An operations manager or a sales/marketing specialist best formulates this with a mandatory review by a senior finance specialist, accountant or management consultant.
2. Design the platform to illustrate the future state. This can be by developing a prototype with help from an Application Design and Development team. High-level requirements at this stage can be used to create wireframes, screenshots and functionality to show other stakeholders.
3. Determine who will be impacted by the change and what current processes need to be updated. A Change Manager handles this, if you have one, alternatively the business sponsor or project manager should consider these.
4. Consider the risks of the change using a scenario, impact and mitigation approach. It doesn’t need to be highly structured, but enough to consider the complexities of what you’re seeking to implement
5. Lastly, develop a project plan with key milestones that need to be met to keep the overall project on track to timeframe and budget.
Experienced staff or suppliers who participate in the business case give it a better chance of success.
If your delivery of the technology takes more than a few months ensure that the review team are available to discuss any changes to the plan – it could be a significant shift that impacts the overall business case.
In conclusion, a supplier review of internal and external capability is a worthwhile exercise. It can ensure a strong business case has the best chance of successful delivery. So, do you have you got the best team assembled?
Supplier Bench, a free service launched recently by Know My Business can help with introductions to service providers that deliver a strong value proposition.
An obligation free assessment by Supplier Bench can give you peace of mind that your production quality and the outcomes being sought have considered your exposure to risk.
