Friday, November 4, 2016

Bank of America Digital Transformation

Today technology plays a big part in every aspect of life, especially in the corporate world. In the article Bank of America’s Digital Transformation: Where IT Fits In , the author talks about how most banks, especially Bank of America Merrill Lynch are in the midst of becoming more technology integrated. The article was particularly interesting because it points out that in business it is often hard to find a balance between digital, automated processes and customer experiences versus human centered relationships. Although the world is definitely turning into one that is more technologically dependent, human interaction will always be important.

So as Bank of America moves towards a digital transformation, they recognize that there is a lot of change in infrastructure and the way they handle the data they are dealing with. In class we learned that it is important to recognize that each piece of data has a certain level of importance. I think in the case of a bank most of the information they are dealing with is important such as customer name, social security numbers, account numbers, etc. In Bank of America’s case they are trying to integrate a cloud service; however instead of using an outside service such as Google Cloud or Amazon, they are developing their own. I found this very interesting because Bank of America is not a technology firm, they have a very limited knowledge on how the cloud service works and how data should be handled. Although the article states that it is much cheaper for Bank of America to implement their own cloud service I can see there being issues with the privacy of the data and making sure that everything is being handled correctly.  The article Cloud Adoption Soars But Integration Challenges Remain on the CIO states, “With approximately 90 percent of businesses using the cloud in some fashion, it's safe to say the technology has become a mainstay in IT. But challenges remain beyond the initial integration.” The article also states that companies are no longer using clouds for just marketing or CRM but instead for valuable data. I think that as Bank of America continues to improve its IT and cloud services it is important for them to store the data correctly.

In addition to that Bank of America is also modernizing its data platforms to enable accurate and fast decisions that will help increase revenue, reduce risk and deepen customer relationships. As Bank of America moves towards making 80% of its workload more automated I think it is also important to recognize that they will need more technological infrastructure to do so. Although it is definitely much easier to use computers and automate processes instead of using manual labor, I think that the cost and risks will definitely increase as technology develops.  

1 comment:

  1. I thought this blog post by Prianka was very intriguing. I have also never truly considered Bank of America as a technology company but it is clear after reading Prianka’s response that they are adjusting to the times and trying to become more technological. I do agree with what Prianka said about how although our world today is turning into a more technologically dependent one, human interaction will always be important. Regardless of age everyone in the world today at one point or another has dealt with human interaction. Especially in the service industry some sort of human interaction will be vital for a company in terms of customer satisfaction. Although it may be cheaper to use computers, and other automated processes it is still important to realize the value of human labor. Customer relations is pivotal in the banking world. When there is a problem no one wants to talk with a robot. The more technology is used in the day to day life, the more costs will eventually build up. I agree with Prianka when she says “Although it is definitely much easier to use computers and automate processes instead of using manual labor, I think that the cost and risks will definitely increase as technology develops.” All of the technology that is being integrated will eventually need to be constantly upgraded and maintained. The thing about technology is that it’s constantly changing and can be costly to keep up with the changing times.
    Another part of this response that I found interesting that Bank of America is trying to implement its own cloud service. This is kind of shocking to me. I am not sure of the numbers from a cost standpoint but perhaps BoA building their own cloud service is more cost efficient to them. But as Prianka said, BoA is not a tech firm. They are not known for being a tech firm either. I found it very interesting that a very big and powerful bank with millions of customers would simply this new cloud service that they are building for themselves. I understand they are probably bringing in the best professionals to help with this, but after this is set up will BoA have the professionals to maintain this system? From a privacy standpoint, if I were a BoA customer I would feel a bit uneasy putting my money with a bank that is essentially giving their cloud service a test run with my information. In today’s world keeping data secure is monumental. BoA must make sure that they are handling their clients’ information carefully because a cyber-attack is a major issue, but a cyber-attack on a system that you created even though you are not a tech firm would be a disaster for the company. I am sure that the executives at BoA know what they are doing but my initial response is to question that a company like this starting its own cloud service without the background experience.

    ReplyDelete

Note: Only a member of this blog may post a comment.