On the face of it, the FCA’s (Financial Conduct Authority) focus on regulating the market whilst simultaneously promoting competition and innovation may seem like a Catch-22 situation for financial services businesses.
Bookmakers always win. They may experience the occasional bad day, but over a period of time they always win. Why? This is primarily because they study form. They analyse as much data as they can absorb, applying hypotheses to test possible outcomes (whether mentally or with the aid of computers), setting prices and refining continuously based on further events and patterns. Basically, they calculate the most likely outcomes based on statistics and other insights, and then set the odds in their favour. They also study their levels of exposure and risk, taking appropriate steps to offset potential losses, to ensure that they nearly always make a profit.
If you’ve had that drowning feeling of being submerged under the mountain of information that big data throws up, you’re not alone. While big data was intended to serve as a panacea for businesses to respond to market needs by drawing useful insights from reams and reams of information, its unmanageability has metamorphosed into a plague for most organisations. Most businesses end up feeling crippled rather than empowered with this knowledge repository at their disposal.
We are living in the age of the customer and not the seller, where the customer controls the majority of the front end sales process. This is a paradigm shift in the process, as the seller is no longer conducting a sales process. Rather, he facilitates a buying process. By incorporating a digital technology strategy that includes a compelling customer relationship management plan, businesses can achieve insights that promote a robust sales strategy.
“I'm not dumb. I just have a command of thoroughly useless information,”
Calvin from the comic strip Calvin and Hobbes once famously said. This is a situation that most IT users will identify with as they try to make sense out of the reams of data they have to sift through on a daily basis whilst adding updates to the system.