Leadingmile

INVESTING IN IT INNOVATION? THE TIME IS NOW!

Investing in IT innovation? The time is now! 

 

Executive Summary 

Looking at the current (market) environment, expected future development (and opportunity) and the relevant topics we see unfolding with our clients, we see the following key items 

  • The time to make the most impact by investing in IT is now 
  • Wealth managers have a whooping 78 trillion USD growth opportunity 
  • Organizations are becoming more dependent on people versus software, due to the increase in demand of flexibility of clients and end users 
  • The organizations who are taking the leap in investing in digitization and innovation, such as Artificial Intelligence, will end up coming out on top in the long run 
  • Further professionalization and digitization requires a trusted partner who knows the market and understand your challenges. LeadingMile can be your partner for now and the future. 

  

Developments in the Asset Management market 

All major research shows that the asset management market is growing. PWC estimated Assets under management (AuM) to grow rapidly and double between 2020 and 2025, with the growth of alternative assets leading the way.[1] Preqin forecasted a further growth of alternative assets from 2019 to 2023 by 59%.[2]  

With this growth market, what are the expected trends? Firstly, we are witnessing an increased competition within investing. Of course this drives up pricing, but at the same time it enforces the need for more efficiency in operations. With pricing up, margins go down and scale becomes relevant, as do niche knowledge and market focus. Investing in your IT can help achieve all this.  

 

Developments in IT 

What we have seen unfold in the beginning of the pandemic was a natural, or at least understandable reflex when it comes to investing decision making. Organizations were looking back to their old ways in times of crisis and build upon what they know best. New projects were cancelled or put on hold.  

When it comes to IT, this was especially unfortunate, since companies and those responsible for IT management have been told to do less with more for years now, while the market trends as described earlier may suggest that investing now is important to grow, find your niche or lower your operational costs. Turning data into effective decision making can be crucial. It can be equally crucial to streamline your operations and restructure your cost model.    

Departments who are still operating in the past and working with below-par tooling and software, will not be able to make the pivot. Naturally, we could understand the first response of cutting costs. Not only does it deliver cost benefits on the short run, but it can also encourage organizations to become more creative with the resources at hand and can give them insights on how to operate more effectively and coming up with new solutions for old problems. 

Our major point here is: many companies have already been through that stage and were already working to their maximum capacity given the current tools and infrastructure. What may get lost is the need to grow or focus their activitiesAn important consideration is that companies and their clients are experiencing a growing demand for flexibility and scalability 

 

What to do? 

The most impactful thing to do is to take IT solutions and servicing to the next level. This means not only to invest now, but to keep innovating and improving. Most companies, for example within Financial Services recognized this too, as can be read in the Unit4’s study on growing people-centric innovation[3]This study shows that 84% of global decision makers are not only keeping their eyed growth of their IT activities on the same level, but are accelerating their digital transformation plans. 

Financial services in the past decade has been all about innovation. With the rise of Fintech, the rules continue to shift and specializing in upcoming markets early on has proven to pay its dividends along the way. When we look to the future, we also see a big role for innovation and think it plays a massive part in the ability of an organization to be able to adapt to the global situation post-pandemic. LeadingMile recognizes how innovation such as AI will play a massive part in the Financial Services industry.  

At the same time, we see that the ability to make the difference in these early stages is made by people. As Unit4 cites in their report, organizations are hinging on greater flexibility, collaboration and empowerment.  At LeadingMile, we centre our attention on just that. Through Asset Based Consulting we combine the required skillsets and knowledge and make repeatable solutions and tooling available at the right time at the right place.  

Are you too looking to invest in IT now and stay on top? 

We look forward to discussing your vision and strategy and talk about how we can help realise your goals. LeadingMile, measuring progress in Alternative Investment.

Citations:

[1]PWC report: “Asset & Wealth Management Revolution: Embracing Exponential Change.”

Source: https://www.pwc.com/jg/en/publications/asset-and-wealth-management-revolution.html

[2]Preqin report: ”Alternatives in 2020.”

Source: https://docs.preqin.com/reports/Preqin-Alternatives-in-2020-Report.pdf

[3]Unit4 study: ”Organizations are Accelerating Digital Strategies for People-Led Transformation.”

Source: https://www.unit4.com/news/unit4-study-reveals-organizations-are-accelerating-digital-strategies-people-led

Rectangle 1470

Subscribe to Our Newsletter