The Four C’s of Technology Transformation
In reviewing the four C’s of Credit, Marketing, and Diamonds, we have determined that there are four C’s that are relevant to any organization in the lending and marketing world considering a technology transformation.
Capacity – Do you have the ability to execute on new strategy? Currently, data is being compiled and analyzed faster than any time in history. Data providers are aggregating this data into usable products that will revolutionize decision making are you capable of using these products? Would you require massive customization just to get to a simple XML or web service data source?
Change is more than just new data sources. We heard recently from a top 10 bank that just building attributes is taking too long and is impeding growth. If your current system can’t meet your data acquisition and attribution needs, it has a capacity problem and needs a transformation.
Cost – Cost as a function of both time and money kills business innovation and growth. Is the project three months or 12 months? Can it be done for $1.5 million or $200,000? What is your fulfillment cost? Are you paying for industry experts in a 20-year-old computing language? The ROI on current technology has made it cost effective to ditch your legacy mainframe and adopt a new framework.
Convenience–Attributes take a good amount of work to develop…days in the lab data mining the best techniques, testing and retesting your customer strategy. The last thing that you would want to hear is that all of that has gone to waste because it took too long to implement. Analytics have a shelf life because as economies change, models and variables need to be re-evaluated. Let your analysts code attributes in a language they speak. The alternative is translating it from analyst speak to developer speak and developer speak to code. Extensive testing is then necessary and a few mistakes or loss in priority and all is lost. If making policy changes isn’t convenient, you might need a technology transformation.
Caret – Weight (or Caret in the diamond business) is the culprit in many systems. When we talk about open, flexible frameworks, we aren’t talking about the 800 pound mainframe gorillas of yesteryear. Today’s software scales easily and can be put on a more cost-flexible platform in modern languages compatible with XML and web service technology. In short, in technology you want a low “caret” infrastructure that can grow as you need it to and adapt as business adapts.
Disagree with one of our points? Have a different C to discuss? Let us know.
This post was contributed by:
Recommended For You
Last week, top data and analytics experts from Equifax and around the world convened in Edinburgh, Scotland for Credit Scoring and […]
Adaptive AI is the next great advancement in leveraging AI for credit risk. Equifax’s Chief Innovation Architect, John Fenstermaker, developed the product […]
Equifax has developed Insight Score™ for Personal Loans, a risk score optimized to help lenders evaluate applicants seeking unsecured personal loans. I […]
In November, Equifax and Moody’s joined forces to recap the economic and credit trends of 2018 — and look ahead […]