Nominations for the Fifth Annual Celent Model Insurer Asia Awards (2015 Awards) are now Open!

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Sep 19th, 2014

Every year, Celent recognizes the effective use of technology in the Asia Pacific region through its Model Insurer Asia Awards program. The nomination period for 2014 has already open. If you know of an insurance company which exhibits best practices in the use of technology, please click here and complete the nomination form. Submissions are being accepted until 31 October 2014.

Through our Model Insurer Asia Awards Program, Celent recognizes the year’s top technology initiatives. Past winners received their recognition through outstanding implementation of technology areas such as agent portals, document management, claims, billing, distribution management, and policy administration. Past winners include Max Bupa Health Insurance, Ageas Insurance Company (Asia), AXA Asia, Birla Sun Life Insurance, Tokio Marine & Nichido Fire Insurance, Yingda Taihe Property Insurance, and Cathay Century Insurance, to name a few.

Celent’s Model Insurer research is designed to try to answer the deceptively simple question: What would it look like for an insurer to do everything right with today’s technology?

Obviously, the question is not as simple as it appears. The terms “everything” and “right” will mean very different things to different companies. The approach that Celent has taken is to tease out high level best practices in the use of technology across the product and policyholder life cycle and in IT infrastructure and management that a Model Insurer would use.

On the back of the global Model Insurer research by our colleagues in North America and Europe, we at Celent Asia are conducting an Asia Pacific specific program to identify the potentially unique Model Insurer solutions that have been recently deployed in our region.

Of course, there is no such thing as a Model Insurer Asia across the board. Therefore, we focus on specific real world examples of individual technology initiatives in the Asia Pacific region. These case studies are presented at Celent’s annual Model Insurer Asia event and represent key themes:

•Legacy and ecosystem transformation: Legacy technology can hinder innovation, since insurers must typically offer backward compatibility. Insurers must not only modernize, but also transform their internal systems and how they interact with customers, counterparties, and regulators. This theme recognizes projects related to core system replacement or transformation including policy administration, billing, claims, and rating/underwriting.

•Digital and omnichannel technologies: Digital transformation is moving from person-to-person interaction toward person-to-machine or machine-to-machine. Integrating and coordinating among disparate and siloed delivery channels will be critical to satisfying ever-increasing customer expectations. Using the definition that digital automates complex tasks, allowing them to be mastered, then reproduced and distributed at no cost, this theme recognizes projects such as online customer portals; industrialization of processes; engaging user interfaces; online sales with STP; integration with business partners; leveraging social networks; and the use of mobile technology.

•Innovation and emerging technologies: Celent defines innovation as fundamental changes to products, services, or business models that break existing tradeoffs and provide value to the customer. New hardware, software, and network technologies feed insurance innovation. This theme recognizes projects such as the expansion into previously untapped markets due to technology; the use of technologies not previously used in the insurance industry; or the development of an innovation culture within an IT organization.

•Data mastery and analytics: Data has become a key source of competitive advantage for identifying profitable niches, managing risk, and improving service. New external data sources, data derived from devices, and new techniques for interpreting data are pushing the competitive boundaries for insurers at an accelerated rate. This theme recognizes projects such as predictive analytics (claims fraud, underwriting, pricing, climate analysis); prescriptive analytics (triage, sales automation, “next best action”); and virtualization (dashboards and heat maps, catastrophe management, network analysis, geopolitical risk analysis).

•Non-core implementation best practices: What does it take to safeguard investments in technology and answer the inevitable question, “What’s next?” This theme recognizes projects such as successful reuse of technology for new initiatives; implementation of a non-core system such as illustrations, document automation, electronic applications, or agency management systems; or finding successes in new methods and processes for distribution and sales.

An important note is that a Model Insurer Asia Award is recognition of an insurer’s effective use of technology in a certain area or theme, not necessarily a statement that the insurer is Best in Class. Model Insurer Asia success highlights the insurer’s ability to improve performance and meet market demands when tackling issues facing the industry today.

To nominate an initiative at your company as a Model Insurer Asia, please use the brief form on here: Nomination form. Please note that vendors are welcome to assist their client insurers with their nominations, however vendors/suppliers are not qualified to receive an award. All nominations MUST include insurer contact information, and all follow-up will be done primarily with the insurer, not the vendor.

Guidelines for Celent Model Insurer Asia Award Submissions:

This information will assist you in completing the nomination form. Below are generalized criteria that are considered by Celent when evaluating submissions.

General submission and award criteria:

•The initiative has been implemented in the Asia Pacific region at an insurance company, a company that takes on risks under the policies it sells in return for the payment of premiums. MGA, TPAs or self-insured companies are not eligible for nomination.
•The nominated initiative is LIVE (in production) and functioning at the insurance company. Pilot programs are not considered live and in production.
•The nominated insurer has been involved in the submission and is willing to be actively involved in the post submission evaluation process which includes follow up emails and interviews, and possible inclusion in the Celent Model Insurer Asia report.
•Quantitative success metrics are measured and provided. Nominations without quantitative success metrics will not be accepted.
•Quantifiable results from a pilot program are acceptable however it must be noted that the results are from a pilot. Full production results are preferred.
•The initiative has not been submitted for another Celent 2015 Award, e.g., Model Insurer.

Quality of Nominations

The importance of the quality of the nomination itself, and of the supporting information, cannot be overemphasized. The nomination should be as specific, accurate, and complete as possible. It is imperative that the true merits of the initiative be conveyed through this information. Keep in mind that in most cases those involved in the selection process will have no personal knowledge of the nominated initiative and will lean heavily on the information provided below for the information they need to make reasonable judgments. In some cases, Celent will check publicly available information to augment or substantiate the information provided.

The deadline for nominations is Friday, October 31, 2014. Once submitted, all communication will occur between Celent and the insurer, however Celent will acknowledge the receipt of the submission with both the insurer and, if applicable, the vendor partner.

Apple Watch is a game changer

Neil Katkov

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Sep 10th, 2014

The Apple Watch unveiled a few hours ago is a game changer. Even if the “iWatch” flops, the voice input function will have a profound effect on lifestyles, finally liberating users from the tedious and clumsy digital (as in fingers) input that has dominated human-device interaction since the advent of the typewriter (actually since the invention of writing).

Like the smartphone and the tablet before it, the Apple Watch marks another giant leap in usability, and in turn has the potential to boost adoption of digital financial services. In a best case scenario, mobile payments, digital wealth management services, and biomonitor-based insurance could all reach their long-awaited tipping points and achieve widespread adoption.

It should come as no surprise due to Apple’s reputation for design, but the fact that the Apple Watch looks like a watch,  not a Dick Tracy-era device, will be a major factor in its adoption. The slim form factor and accuracy of the timepiece place the iWatch squarely in the jewelry accessories market as much as in the smart device market. This is a virtual first in the computing industry (it is hard to imagine many people wearing the clunky Samsung Gear as a fashion statement) and its significance in driving demand for the device should not be underestimated. No doubt we will see iWatch shops in the jewelry sections of department stores globally before long.

Nominations for the 2014 Asia Insurance Technology Awards (AITAs) are now open

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Aug 12th, 2014

The Asia Insurance Technology Awards (AITAs) recognize excellence and innovation in the use of technology within the insurance industry in the Asia Pacific Region.

Nominations for the 2014 AITA Awards are now open. Please find more information on Celent website, and you can download the nomination form from there. The deadline for submitting the nomination form is 15 September 2014.


IT Leadership Award

This award honours an individual who has displayed clear vision and leadership in the delivery of technology to the business. The recipient will have been responsible for deriving genuine value from technology and has demonstrated this trait with a specific project or through ongoing leadership.

Nominations accepted from insurers. Vendors are welcome to assist their client insurers with their nominations, however vendors/suppliers are not qualified to receive this award. All nominations MUST include insurer contact information, and all follow-up will be done with the insurer, not the vendor.

Best Insurer: Technology

This award honours the insurer who has made the most progress in embracing technology across the organisation. The recipient will have deployed game changing technology projects in the area of core insurance and broker processes.

Nominations accepted from insurers. Vendors are welcome to assist their client insurers with their nominations, however vendors/suppliers are not qualified to receive this award. All nominations MUST include insurer contact information, and all follow-up will be done with the insurer, not the vendor.

Digital Transformation Award

This award honours an insurer or broker who has made the most progress in implementing digitization initiatives, such as sale and service of products online, eco-system integration (such as with business partners, repair shops, medical providers, distribution, etc.), leveraging social networks, work-place enablement (such as BYOD, collaboration tools, etc.), business process automation (STP), engaging user interface design, or analytics (analyse customer behavior, propensity, risks, etc.).

Nominations accepted from insurers. Vendors are welcome to assist their client insurers with their nominations, however vendors/suppliers are not qualified to receive this award. All nominations MUST include insurer contact information, and all follow-up will be done with the insurer, not the vendor.

Best Mobile Application

This award recognises the insurer who has exhibited true innovation in the use of mobile technology. The recipient will have developed a unique and compelling application not seen elsewhere in the industry.

Nominations accepted from insurers. Vendors are welcome to assist their client insurers with their nominations, however vendors/suppliers are not qualified to receive this award. All nominations MUST include insurer contact information, and all follow-up will be done with the insurer, not the vendor.

Newcomer of the Year

This award recognizes the best new player in the insurance technology field. The recipient will have introduced a game-changing solution to the industry.

Nominations accepted from insurers or vendors.

Innovation Award

This award recognizes the innovation business model or in the usage of technology.

Nominations accepted from insurers or vendors.

Innovation in the Japanese Financial Services Industry, Part 2: Panel Discussion

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Jul 22nd, 2014

Celent hosted Innovation & Insight Day Tokyo on June 5. Following the event presentation titled “Digital Financial Services and New Innovation Initiatives,” which focused on Celent’s innovation survey results, a panel discussion was held.

This is the second in a two-part report providing an overview of event proceedings.


Five leading experts in Japan’s financial industry joined the event as panelists. Celent would like to offer a heartfelt thank-you to these individuals for taking part despite the pressure and the presence of competition and many disclaimers. The panelists’ wealth of experience and sheer passion for innovation was palpable and the content thought provoking. Above all, the impassioned and experience-informed comments of panelists displayed the confidence of Japan’s financial industry. Below are some of the more salient comments that demonstrate the spirit and mindset of innovators in Japan.

What motivates your firm to innovate?

  • “Responding to customer expectations.”
  • “A backdrop of growing user needs and the proliferation of technology and the environment to meet these needs.”
  • “Our objective is to remove all inconvenience from the customer experience.”
  • “We aspire to offer financial services that achieve exactly what people feel they need and consumers think they want.”
  • “Innovation is the lifeblood and fate of a corporation.”


What drives innovation at your firm?

  • “Aligning innovation objectives and technology employed.”
  • “Integrating technology and compliance is important.”
  • “Amplifying the motivation and drive of each employee to take action.”
  • “Reflecting the intentions of management.”
  • “Resisting the temptation to seek short-term growth.”
  • “Supporting management philosophies that bet on uniqueness.”


The threat and opportunity of disruptive innovation

During the proceedings there were questions and opinions from participants exchanged with the moderator:

  • “There is no special opportunity for innovation. It is important to reflect innovation in daily management. That is something that we have done since we started our business and something that we will continue to do. Innovation is simply naturally part of what we do.”
  • “We do not see disruptive innovation as a threat. Rather, for the development of the industry as a whole, the kind of shakeout such innovation entails is necessary. We will undergo challenges and survive—and look to take on more such challenges.”


Celent concluded the event with the below message.

Managers: Have faith and confidence in innovation

The importance of leadership and management responsibility in innovation is self-evident. At the same time, innovation is a mid-to-long-term journey—more a marathon, than a sprint. Failure is sometimes to be allowed. In addition, it is not uncommon to destroy a corporate culture that has been fostered over many years. An intense commitment to innovation on the part of management itself is required. Technological drivers continue to advance and case studies of successes only increase. Mangers: Be confident.


Distinguish between disruptive innovation and kaizen (improvement), and the need to tackle the former

The greatest factors hampering the progress of disruptive innovation are not to be found outside a company but within it. Especially within large corporations, where tendencies such as the below are seen; conversely, these tends to derail innovation. These tendencies include the following.

  • Compared with start-ups and small or medium enterprises, large firms boast a wealth of capital and business resources.
  • In particular, these resources include human resources and technology, which can be channeled to R&D.
  • These companies often have business operations that require 360-degree management and much competition
  • Such firms are often home to isolated “black sheep” employees that seek to innovate.

If you neglect innovation, cannibalization can be expected to take place not only in your core business areas but in new businesses as well. To keep innovators from being ostracized as black sheep, it is important to clearly distinguish between the accumulation of kaizen (improvement) on a daily basis in core operations and disruptive innovation, and, in particular, it is important to direct management and initiative toward the latter.


Initiatives and leadership that are not negative contribute to positive value standards

Of course, trusting in your management resources, in particular in your personnel and technology, and putting effort into your business battles over “invisible continents,” “immeasurable risk” and “non-consuming consumers” is important. However, in such challenges when results do not appear with time, then you should not underestimate the power of disruptive innovation. Furthermore, it is key “to always be positive.” Leadership and initiatives that acknowledge and embrace diversity and difference and that do not deny any possibility are needed.


Today no industry or industrial structure is immune to change and, like plate tectonics, the ground around us is always shifting. Digital technology is doing more than changing products, services, consumer experiences, and expectations; it is also radically changing value chains and business models.

Until now, Japan’s financial industry has developed by virtue of outstanding leadership and the agile introduction of technology. Celent would like to emphasize anew the importance of innovation to Japan’s financial industry, buttressed as it is by people and technology. The results of Celent’s recent innovation survey hinted at further reform to come in Japan’s financial industry. When it comes to innovation, now is an opportune time for commitments from top management and fresh initiatives from technology vendors.

Undertaking this innovation conference was a major challenge for Celent Tokyo. However, any undue anxiety completely vanished amidst the enthusiasm of survey and event participants. The Japanese financial industry is extremely positive and enthusiastic when it comes to innovation. Celent would like to express its deep gratitude to the professionals in the financial industry who took time to participate in this event in various capacities, and we hope that it will prove in some way useful to your continued success.


Fig. 2 Structures to Support Innovation: Financial Services Institution / Vendor Comparison


Source: Celent Innovation Survey 2013/2014

Innovation in the Japanese Financial Services Industry, Part 1: Two Gaps

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Jul 22nd, 2014

On June 5, nearly 120 individuals from Japan’s financial sector and the financial technology sector gathered to participate in our Innovation & Insight Day Tokyo 2014. This is the first of a two-part recap providing an event overview and recounting event highlights.

The first keynote address compared the May 2014 Japan Financial Industry Innovation Survey with a similar global Celent survey conducted last October. This comparison pointed to two existing gaps.


Gap Number One: A Leadership Gap

1. Perception of the importance of innovation

“The next few years innovation will be extremely important. Customer expectations are changing very rapidly and it is crucial to act so as not to fall behind.” The ratio of respondents who agreed with this statement was similar in Japan and globally as shown below.

  • Global: 79%, Japan: 81%

—Conclusion: There can be no doubting the importance of innovation.


2. Leadership and innovation initiatives

“Our firm has an individual in charge of innovation (a chief innovation officer).”

  • Global: 11%, Japan: 7%

“We have an organization in charge of innovation (center of excellence).”

  • Global: 27%, Japan: 7%

“Innovation-related leadership relies on proponents at the CEO level.”

  • Global: 62%, Japan: 85%

—Conclusion: There was a clear lack of leadership among top management when it comes to innovation initiatives.


3. Three significant impediments

Global: 1) Daily work operation routines, 2) Internal habits and practices, 3) Inadequate support system.

Japan: 1) Internal habits and practices, 2) Lack of senior management support, 3) Daily work operation routines.

—Conclusion: Both globally and in Japan, in contrast to the high levels of awareness of the importance of innovation, at financial institutions there was a distinct lack of leadership.


Gap Number Two: Gap Between Financial Institutions and Vendors

The Japan survey asked both financial institutions and financial solution vendors about innovation-related initiatives. Responses indicated another gap here between financial institutions and these vendors.

1. Years promoting innovation

There was no significant difference between financial institutions and vendors, with both recording similar figures:

  • Three years or less: 54%, Five years or more: 30%

—Conclusion: Financial institutions seem to interpret the fact that technology-supplying vendors possess approximately the same level of experience as themselves as meaning that innovative initiatives cannot benefit from sufficient experience.


2. Organizational and structural

“A chief innovation officer has been appointed”

  • Vendors: 24%, Financial institutions: 7%

“Have established a center of excellence”

  • Vendors: 14%, Financial institutions: 7%

“CEO-level proponents of innovation are relied upon for leadership”

  • Vendors: 67%, Financial institutions: 85%

—Conclusion: With a slightly lower degree of reliance on upper level management for innovation leadership, vendors are slightly superior.


3. Departments that lead innovation

Financial institutions:

  • Business departments lead: 30%, IT departments lead: 11%

Vendor innovation proposals:

  • Directed to business departments: 14%, Directed to IT departments: 17%

Undertaking initiatives in both business and IT areas:

  • Financial institutions: 59%, Vendors: 69%

—Conclusion: There is a visible gap between financial institution innovation IT initiatives and vendor business sector initiatives.


4. Digital financial services initiatives

There was also a visible gap when it came to the priority level of digital financial services (innovative financial services that harness digital technology) as advocated by Celent.

  • Financial institution priority areas: Process improvements, transaction feature enhancements, product and service customization
  • Vendor initiative areas: Three sectors were overwhelmingly dominant: big data, mobile two-way communication, omnichannel

—Conclusion: Survey results indicated a general tendency for financial institutions to be more conservative and vendor proposals to be more aggressive.


What exactly is this gap and what does it signify? This gap is between the proposals of vendors that feature the newest or hottest technology and the initiatives of financial institutions, which have yet to recognize the advantages of or are still evaluating such technology or technological initiatives. At the very least, currently it is easy to see that, unfortunately, vendors and financial institutions are not yet on the same page when in comes to what they are looking for in initiatives. Moreover, it could be that even if new technology is applied incrementally (to drive improvement) it could also prove to be a driver of disruptive innovation.

In addition to responses that can be numerically tabulated and analyzed, the survey also allowed participants to articulate freely their own invaluable opinions. A more detailed analysis of this survey and examination of innovation in the financial industry in Japan will be available in the upcoming Celent report “Innovation in the Japanese Financial Services Industry: The Gap between Management and Initiatives.” Please be on the lookout for it.


Fig. 1 Comparison with Other Industries: Global / Japan Comparison

Compared with other industries, financial services firms (e.g., banks, insurers, asset managers) innovate…


Source: Celent Innovation Survey 2013/2014



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Jul 22nd, 2014

セレントは、去る6月5日、「イノベーション&インサイト・デー 東京 2014」を開催した。「デジタル金融サービスと新たなイノベーションの取り組み」と題した本イベントでは、セレントによるイノベーションサーベイの報告に引き続き、パネルディスカッションを実施した。





  • 「顧客の期待に応えるために」
  • 「ユーザニーズの高まりと、それを実現する環境や技術の普及を背景として」
  • 「顧客経験の不都合をなくすことを目的に」
  • 「人の気持ち、生活者の想いを実現する金融サービスの提供を目指して」
  • 「イノベーションとは、企業の宿命である」



  • 「イノベーションの目的と採用する技術とのアライン(整合)」
  • 「テクノロジーとコンプライアンスの摺合せが重要」
  • 「従業員ひとりひとりの取り組み姿勢(やる気)が加速」
  • 「あくまでマネージメントの意思を反映」
  • 「爆発的な成長への誘惑を絶ち」
  • 「ユニークさに賭ける経営哲学が支える」



  • 「イノベーションの機会に、特別なものは無い。日々のマネージメントにイノベーションを反映することが重要、創業以来そうしてきたし、これからも続ける。イノベーションは自然体」
  • 「破壊的なイノベーションに、脅威は感じない。むしろ、業界全体の発展のためには、そうした荒波が必要。そうしたチャレンジは受けて立つし、そのようなチャレンジを続けてゆきたい」





  • 中小企業やスタートアップと比較して、圧倒的に潤沢な資金
  • R&Dに投入できる十分な経営資源(特に、人と技術)
  • (360度のマネージメントが必要な)多様な事業部門と多くの競合
  • 孤立する「ブラックシープ(黒い羊)」









図 2. イノベーションを支援する組織(金融機関・ベンダー比較)

Innovation survey2

出典: セレント「イノベーションサーベイ」2013/2014


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Jul 22nd, 2014

6月5日、日本の金融業界と金融テクノロジー業界から約120名のご参加を頂き、「イノベーション&インサイト・デー 東京 2014」を開催した。本稿では、本イベントの要諦を2回に分けて報告する。



1. 重要性認識

  • グローバル:79%、日本:81%



2. イノベーションに取り組むリーダーシップ

  • グローバル:11%、日本:7%


  • グローバル:27% 日本:7%


  • グローバル:62%、日本:85%



3. 3大阻害要因

  • グローバル:①日常業務のルーチン②社内慣習③サポート体制の不備
  • 日本:①社内慣習②経営幹部のサポート不足③日常業務のルーチン



1. イノベーション推進の経験年数

  • 金融機関とベンダーの間で大きな差異はなく、両者とも、
  • 3年未満:54%、 5年以上:3割強



2. 組織・体制

  • ベンダー:24%、金融機関:7%


  • ベンダー:14%、金融機関:7%


  • ベンダー:67%、金融機関:85%



3. イノベーションを主導する部門

  • 金融機関:ビジネス部門が主導:30%、IT部門が主導:11%
  • ベンダーのイノベーション提案:ビジネス部門向けは14%、IT部門向け:17%
  • ビジネス・IT両部門での取り組み:金融機関:59%、ベンダー:69%



4. 「デジタル金融サービス」への取り組み

  • 金融機関の優先分野:「プロセス改善」、「取引機能拡張」、「商品・サービスのカストマイズ」
  • ベンダーの取り組み分野:群を抜いて「ビックデータ」、「モバイルと双方向通信」、「オムニチャネル」





図 1. 他業界と比較した、金融機関のイノベーションの進捗レベル認識(グローバル比較)

Innovation survey1



データベース・アズ・ア・サービス (DBaaS): グローバル金融機関におけるプライベートクラウド実装

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May 23rd, 2014





1. グローバル金融機関におけるIT基盤に対する4つの期待:

  • オンディマンドサービス
  • プロビジョニングの迅速性、弾力性
  • サービスの計測可能性
  • 監査とセキュリティ対応

2. 期待を実現した4つの原則:

  • サービスのカタログ化とセルフサービス
  • 適用技術の標準化
  • リスク、セキュリティの一元管理
  • 運用保守の標準化

3. 本事例を成功に導いた7つのKFS:

  • プログラム管理
  • エンタープライズアーキテクチャ(EA)アプローチとサービス定義
  • エコシステム(LCM)志向
  • サポートモデル
  • セルフサービス
  • インベントリ―とデータ品質管理
  • ユーザ部門とのコミュニケーションとIT需要管理


セレントは、金融機関におけるクラウド適用[1]をはじめとした、革新的なIT活用の取り組みを多数レポートしてきた。また最近時、1) デジタル&オムニチャネル、2) イノベーション&エマージングテクノロジー、3) レガシー&エコシステムマイグレーション、の3分野にフォーカス[2]し、金融業界におけるイノベーティブな取り組みをリサーチしている。多くの来場者にとって本事例は、コスト削減を超えて、新たな事業価値を生み出すテクノロジー・プラットフォームとしてのITを見直す契機となろう。正に、エマージングなテクノロジーを用いた、エコシステムマイグレーションの好事例とみなされる。


図 : 金融機関におけるとITソーシングモデルの変化

sourcing models_JAPANESE

出典: セレント


[1]「クラウドが加速する日本の金融システム・金融IT産業のサービス化:鍵を握るモジュール化技術」(2011.7) など

[2]「2014年モデルバンク パート1:デジタル/オムニチャネル・バンキング」(2014.4) など

Database as a Service (DBaaS): Private Cloud Implementation at Global Financial Institutions

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May 23rd, 2014

Spring is here and with it so is convention season. This year in Japan, innovation is proving to be an even hotter buzzword than Abenomics.

Innovation was prominent at an Oracle convention event that took place in late April. IT experts from across industries and around the globe converged in Tokyo where they presented several instructive case studies on innovation in practice.

In kicking off the event and prior to a notable presentation by the CTO of a major financial institution, an Oracle senior director noted that reducing costs and investing strategically are eternal challenges in the systems sector. He pointed out that in recent years, the cloud has spread and emerged as a potentially powerful weapon to help solve in a balanced way these dual challenges of cost reduction and strategic investment, although there are as yet few examples of financial institutions using the cloud well. As such, the Oracle event was dedicated to introducing cases in which financial institutions have harnessed the cloud successfully in terms of IT strategies and private cloud strategies.

At this event, Celent discovered one ideal IT sourcing model initiative that epitomizes how a financial institution should migrate a global database to a private cloud.

Celent has broken down and organized the key points of this case study as follows.

1. Global financial institutions expect great things from the cloud when it comes to IT infrastructure in these four areas:

  • On-demand services
  • Prompt and flexible provisioning
  • More quantifiable services
  • Facilitating audits and security

2. The four principles that led to the achievement of these expectations:

  • Cataloguing of services and self-service
  • Standardization of applied technologies
  • Unifying risk and security management
  • Standardization of operation and maintenance

3. Seven key factors to success in this case:

  • Program management
  • Enterprise architecture (EA) approach and service definition
  • Ecosystem-focused (life cycle management) approach
  • Support model
  • Self-service
  • Inventory and data quality management
  • IT demand management and communication with line of business

In addition to the scale of this case, which involved the migration of over 10,000 nodes and nearly 300 instances of provisioning profiles, the initiative also allowed the multinational company in question to achieve a follow-the-sun operation for capital markets worldwide. The firm has created an outstanding IT infrastructure in terms of mission critical robustness. However, more than anything, this case study approached the ideal in terms of IT sourcing models in that it enables self-implementation of database provisioning operations and management in addition to being able to provide vendor products and services. It is easy to imagine that it was this EA that proved the key to success. Of course, while this is a case study of advanced IT operational capacity at a top-tier financial institution, the agile nature of this initiative was clearly stimulating to the Japanese financial institutions that were in attendance.

Celent has published countless reports on innovative IT applications and initiatives including on how financial institutions can and are using the cloud to enhance their businesses[1]. In particular, recent Celent research has focused on IT and innovation in the following three areas: digital and omnichannel, innovation and emerging technologies, and legacy and ecosystem migration[2]. For many participants at the convention, this case study likely proffered more than a means to reduce costs, but also a chance to revisit their IT approaches to create a technology platform that fosters greater business operation value. This case is a shining example of ecosystem migration using emerging technology.

Both vendors that focus on providing solutions as well as vendors that focus on IT services are offering integrated solution services that vertically integrate hardware, software, system building, system operation and maintenance. In addition, financial institution infrastructures including many types of shared systems are available for use in their current service formats.Above and beyond the system building of SI vendors seen so far rooted in on-premise approaches, Celent expects the IT sourcing models of financial institutions to diversify at a rapid clip.


Fig: Changes in sourcing models

sourcing models_ENGLISH

Source: Celent


Celent defines innovation as introducing novel approaches that improve on what has come before and Celent calls individuals that orchestrate this innovation entrepreneurs. Celent also believes that technology offers a medium to change that can yield greater value for customers. We are in an era of intensifying competition and only the financial institutions that make technology their friend and leverage it intelligently will remain when the dust settles. And DBaaS is a prime example of this in practice.


[1] See Celent’s report, Cloud Computing in the Japanese Financial Services Industry, November 2011

[2] See Celent’s report, Celent Model Bank 2014, Part 1: Digital and Omnichannel Banking, April 2014, among others

6.11.2014 Celent Webinar: How to Better Leverage Celent

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Celent CEO, Craig Weber

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