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How you can use the RetailTech Model

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

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Model Stages

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

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Model Timeline

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

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Model Origins

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

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Model Lenses

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

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R&D

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

. .
5+
Leading Edge

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

. .
5%
1-3
Early Adopters

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

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25%
2-5
Mainstream

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

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50%
2-5
Late Adopters

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

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80%-100%
5+

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

The next-generation of process automation

Financial services institutions have been digitizing internal operations in the back and middle office for years. The work is an evolutionary, rather than revolutionary, and the objective is not just to drive down costs but to reduce cycle times and error rates.

Over the last decade, most organizations have emphasized converting documents, images and other analog inputs into digital formats and routing work items to the right queues and individuals. The focus now is on applying technology to assist people in processing work items. A further aim is to remove the need for human intervention altogether. This is where “robotics: comes into play as a generic term for a whole range of technologies that automate or augment clerical processes.

To date, robotics have been most widely deployed in facilities and administrative and human resources functions, yet FSIs are a prime candidate since so many tasks are rules-based and transaction volumes are high. Robotics Process Automation (RPA) software automates what a human employee does, for example, streamlining account reconciliation by transposing data from one system to another. RPA can be deployed quickly and works with existing systems, leaving processes relatively unaltered.

The stage beyond basic RPA is sometimes called Enhanced RPA. It involves the use of unstructured data and machine learning. The approach has progressed furthest in domains where there are high transaction volumes and a limited number of case types and interventions. As a result, systems can be easily trained. In financial services, Enhanced RPA has been adopted in complaints handling and simple insurance claims processing. Likewise, IT help desks increasingly use virtual customer agents to chat with customers, providing an automated response that can escalate to human-to-human interaction when needed.

The third level of robotics may be called Intelligent Automation, Cognitive Automation or Artificial Intelligence. The lack of standard terminology reflects the fact that these technologies are largely still in the R&D stage. What sets these systems apart is their ability to harness huge volumes of data to generate their own rules, evolve and predict outcomes. Risk assessments, whether for fraud, lending or insurance, will most naturally lend themselves to these approaches. They offer perhaps the greatest potential to get ahead of the competition, and banks should start to explore opportunities now since machine learning naturally implies a learning curve.

Explore these and other trends in the Internal Operations Lens of our Innovation Model. You can assess the maturity of robotics and other technologies, and determine whether now is the right time for adoption in your company.

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Internal Operations Expert

Ralf Fluegge
DXC FSI Practice

Arrange a meeting with Ralf Fluegge

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