🗂 Link: Goldman Sachs brings on co-CIO, CTO

The strategy has four parts, according to the presentation. The investment bank wants to:

Offer a digital client experience

Increase automation

Build scalable infrastructure

Make room for innovation

To do so, Goldman Sachs is using 45% of its $4 billion engineering budget in 2019 on investment. The other 55% will be used to run the bank.

In the financial services sector, banks are making huge investments in technology. JPMorgan allocated $10.8 billion last year and has earmarked $11.4 billion for technology in 2019. Bank of America spent $10 billion on tech in 2018.

Source: Goldman Sachs brings on co-CIO, CTO

🗂 Link: Digital banks on track to treble customers in next year but profits remain elusive

.As they mature, digital startups are now turning their attention from customer acquisition to becoming profitable. With no branch networks and legacy IT systems, digital challengers have a substantially lower cost-to-serve than incumbents of £20-£50 per account compared to £170. Meanwhile, deposit balances for challengers have increased from £70 to £350 per customer. However, this is still dwarfed by the £9000 average for incumbents.However, the majority of new entrants are still not profitable, with the average digital bank losing £9 per customer

Source: Digital banks on track to treble customers in next year but profits remain elusive

🗂 Link:

Toyota is working to have 70% of new cars connected globally by 2020, with almost all of those in the U.S. and Japan. Automakers are already using the cloud to generate revenue through telematics insurance and car-sharing services.

Toyota also has talked about using data to alert dealers when cars need servicing, provide information about road and traffic conditions for smart city planning, and inform retailers where their customers are commuting from to allow more targeted marketing.

Source:

Link: IT outages in the financial sector: Legacy banks playing tech catch-up risk more outages, UK MPs told

said 65 per cent of outages are in retail banks. She said the regulator received 853 notifications of outages in 2018/19 “that is a huge increase on the previous year”. However, she added some of those incidents were relatively minor, with part of the increase being due to a change in regulatory reporting requirements.

Source: IT outages in the financial sector: Legacy banks playing tech catch-up risk more outages, UK MPs told

Link: Camera scanning vehicles result in big jump in parking fines

Before Amsterdam started using scanning vehicles in 2013, the Dutch capital issued 18.5 million euros in parking fines. Last year Amsterdam issued nearly 30 million euros in parking fines, an increase of 61 percent. Before using scanning vehicles, Rotterdam issued 177,895 parking fines in 2014. In 2016 that increased by 86 percent to 330,326, before dropping by 6 percent to 310,684 in 2017. AD did not receive more recent figures from Rotterdam.

Delft saw a 26 percent increase in paring fines, Utrecht saw an increase of 17.5 percent. In The Hague, the parking fines increased by half. Tilburg told the newspaper that its issued fines tripled since it started using scanning vehicles.

Source: Camera scanning vehicles result in big jump in parking fines

Link: A new player in a new game

Like most other ‘new generation’ IT providers, Fastly plays up its growth rate while playing down the cost of that growth. Sales at the company rose about 40%, year over year, in 2018 to $145m. In comparison, Akamai is a single-digit percentage grower, although it is roughly 10 times larger than Fastly. Fastly also runs in the red, largely because its gross margins are just 54%, 10 percentage points lower than those at Akamai.

Source: A new player in a new game

Link: Dutch now pay more on housing, healthcare and energy than before the crisis: ING

In 2017 basic needs such as housing, healthcare, food and energy accounted for 41 percent of household spending, compared to 36 percent in 2008. Housing and maintenance in particular became a relatively larger cost item, increasing from 19.5 percent in 2008 to 23.7 percent in 2017. Healthcare accounted for 3.8 percent of household spending in 2017, compared to 3.1 percent in 2008. Households also spent a larger portion of their income on food and non-alcoholic beverage, increasing from 10.1 percent to 10.8 percent. According to ING, this is due to faster than average price increases.

Source: Dutch now pay more on housing, healthcare and energy than before the crisis: ING

Link: Fixing Europe’s zombie banks

Unlike America, where banks have a return on equity of 12%, Europe does not have strongly positive government-bond yields, or a pool of investment-banking profits like that on Wall Street, or a vast, integrated home market. All this is true, but European banks have been lamentably slow at cutting their costs, something which is well within their control. As a rough rule of thumb, efficient banks report cost-to-income ratios below 50%. Yet almost three-quarters of European lenders have ratios above 60%. Redundant property, inefficient technology and bloated executive perks are the order of the day.

And:

And when the next downturn comes and banks need to raise capital, which investor would be foolish enough to give even more money to firms that do not regard allocating resources profitably as one of their responsibilities?

There’s much room and ability to improve the bottom line by fixing the back-office sprawl:

Costs are falling at an annual rate of about 4%, according to analysts at ubs. This is not enough. As consumers switch to banking on their phones there are big opportunities to cut legacy itspending and back-office and branch expenses. Lloyds, in Britain, has cut its cost-income ratio to 49% and expects to get to close to 40% by 2020. The digital German arm of ing, a Dutch bank, boasts a return on equity of over 20% in a country that is supposedly a bankers’ graveyard. If other banks do not do this they will soon find that they have lost market share to new digital finance and payments competitors—both fintech firms and the Silicon Valley giants such as Amazon—that can operate with a fraction of their costs and which treat customers better.

Source: Fixing Europe’s zombie banks

Link: High churn rate in the S&P 500

Innosight’s third study of company’s ability to maintain leadership positions estimates that by 2018, 50% of the companies on the S&P 500 will drop off, replaced by competitors and new market entrants. Staying at the top of your market-heap is getting harder and harder.

This is often used to show how difficult the business world is now. It’s hard enough to get to the top, and hard to stay there.
Original source: High churn rate in the S&P 500

Link: High churn rate in the S&P 500

Innosight’s third study of company’s ability to maintain leadership positions estimates that by 2018, 50% of the companies on the S&P 500 will drop off, replaced by competitors and new market entrants. Staying at the top of your market-heap is getting harder and harder.

This is often used to show how difficult the business world is now. It’s hard enough to get to the top, and hard to stay there.
Original source: High churn rate in the S&P 500

Link: The New Affluents

Time to reap: “Several traits about the new affluents distinguish them as ideal prospective customers for brands of all sectors. In particular, luxury brands looking to woo customers with a little extra in their pockets might find this group a good place to start. Gen Xers’ share of national wealth is forecast to grow from under 14% in 2015 to nearly 31% by 2030, while Millennials’ share is forecast to grow from just 4% in 2015 to 16% by 2030, according to Gartner research. Additionally, this group is likely to be raising families and becoming first-time homebuyers, making them prime targets for home and CPG brands…. Though the new affluents want to save, they are likely to be in the midst of costly life transitions related to family and are also paying off significant debt, meaning money management is definitely on their mind.”
Original source: The New Affluents

Link: Facebook’s facing limits

“By most estimates, the entire global ad market (digital and offline) sits at roughly $550-600bn and by that measure Facebook, whose sales come almost entirely from ads, commands nearly 10% of it.” But, compared to Google: “If Facebook plans to regain the value it lost with its latest earnings announcement, it’s going to have to ink some riskier acquisitions that increase its addressable market, or at least take it into new corners of advertising.”
Original source: Facebook’s facing limits

Link: Digital transformation in power generation and delivery

“Over the next decade, the electricity industry is predicted to unlock approximately $1.3 trillion in value through development and digitization of infrastructure, including platforms, devices, as well as cloud and advanced analytics.”

With the “greatest opportunities are predicted at the retail (8.5% EBIT improvement) and generation (6.6%) levels.”
Original source: Digital transformation in power generation and delivery

Link: The sky’s the limit

‘But China could add 13% to its GDP by 2025, relative to a baseline, if it increased women’s employment, hours and productivity as quickly as the leading countries in its region or peer group, McKinsey says. That would translate into an extra $2.6trn by 2025 (an economy the size of France). In India the relative gain could be even greater (18%), because it has far more room for improvement. McKinsey’s scenario would require 37% of Indian women to be in the workforce, up from 27% now.’
Original source: The sky’s the limit

Link: Allstate Technology Chief Develops The Uber Of Roadside Assistance

Success: “The Good Hands Rescue Network digital platform was launched in August 2016. Since then, we have seen a revenue lift in the tens of millions that is likely to grow to the hundreds of millions.”

Business value/metrics: “After a year, we are averaging around 25,000 rescues a month… With the end-to-end digital process of the request, response and time to arrive, we are seeing an average actual time of arrival (ATA) at 27 minutes, which has reduced the wait time by almost half. This is consistent with our primary objective of reducing the amount of time a motorist is stranded.”
Original source: Allstate Technology Chief Develops The Uber Of Roadside Assistance

Link: Allstate Technology Chief Develops The Uber Of Roadside Assistance

Success: “The Good Hands Rescue Network digital platform was launched in August 2016. Since then, we have seen a revenue lift in the tens of millions that is likely to grow to the hundreds of millions.”

Business value/metrics: “After a year, we are averaging around 25,000 rescues a month… With the end-to-end digital process of the request, response and time to arrive, we are seeing an average actual time of arrival (ATA) at 27 minutes, which has reduced the wait time by almost half. This is consistent with our primary objective of reducing the amount of time a motorist is stranded.”
Original source: Allstate Technology Chief Develops The Uber Of Roadside Assistance

Link: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

“Home Depot plans to add more than 1,000 new hires to its technology teams in 2018” adding to the 2,800 it already has in “technical roles.”

Types of roles:

“The hires will span roles such as software engineering, user experience design, network engineering and product management, and be located predominately in the company’s Atlanta, Austin and Dallas technology offices, the company said.”
Original source: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

Link: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

“Home Depot plans to add more than 1,000 new hires to its technology teams in 2018” adding to the 2,800 it already has in “technical roles.”

Types of roles:

“The hires will span roles such as software engineering, user experience design, network engineering and product management, and be located predominately in the company’s Atlanta, Austin and Dallas technology offices, the company said.”
Original source: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

Link: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

“Home Depot plans to add more than 1,000 new hires to its technology teams in 2018” adding to the 2,800 it already has in “technical roles.”

Types of roles:

“The hires will span roles such as software engineering, user experience design, network engineering and product management, and be located predominately in the company’s Atlanta, Austin and Dallas technology offices, the company said.”
Original source: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

Link: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

“Home Depot plans to add more than 1,000 new hires to its technology teams in 2018” adding to the 2,800 it already has in “technical roles.”

Types of roles:

“The hires will span roles such as software engineering, user experience design, network engineering and product management, and be located predominately in the company’s Atlanta, Austin and Dallas technology offices, the company said.”
Original source: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

Link: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

“Home Depot plans to add more than 1,000 new hires to its technology teams in 2018” adding to the 2,800 it already has in “technical roles.”

Types of roles:

“The hires will span roles such as software engineering, user experience design, network engineering and product management, and be located predominately in the company’s Atlanta, Austin and Dallas technology offices, the company said.”
Original source: Home Depot is launching its biggest tech hiring spree ever to protect its lead over Amazon

Link: Gartner: IT spending to hit $3.7 trillion thanks to record 6.2% growth in 2018

“This is the highest annual growth rate that Gartner has forecast since 2007 and would be a sign of a new cycle of IT growth,” said John-David Lovelock, a research vice president at Gartner. “However, spending on IT around the world is growing at expected levels and is in line with expected global economic growth. Through 2018 and 2019, the U.S. dollar is expected to trend stronger while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for trade wars.”
Original source: Gartner: IT spending to hit $3.7 trillion thanks to record 6.2% growth in 2018

Link: How vulture capitalists ate Toys ‘R’ Us

“Just before the buyout, the company had $2.2 billion in cash and cash-equivalents. By 2017, its stockpile had shriveled to $301 million, even as its debt burden ballooned from $2.3 billion to $5.2 billion. Meanwhile, Toys ‘R’ Us was paying $425 million to $517 million in interest every year. This enormous cash drain probably made it impossible for the company to invest or innovate even if its trio of buyers had been up to the challenge.”

Debt is its own disruption.
Original source: How vulture capitalists ate Toys ‘R’ Us

Link: Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It?

“Amazon.com Inc. is famous for its losses over the years. But even in the heyday of the dot-com bubble, the e-commerce giant never came close. Amazon’s biggest loss was in 2000—a $1.4 billion embarrassment, or about $2 billion adjusted for inflation. Most years, Amazon turns a profit, albeit a small one. What Uber backers can point to, though, is a nearly unmatched pace of sales growth. Even as Uber’s revenue reached $2.3 billion in the fourth quarter of 2017, its annual growth rate remained strong, at about 90 percent compared with 2016. That’s faster than most tech companies with a similar valuation. Only one U.S. tech company of Uber’s size, Micron, grew at anything close to that last year.”
Original source: Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It?

Link: Is Microsoft Azure really making up ground on AWS?

In terms of raw figures, not growth, Azure is still a way behind. Even a generous assumption of Azure’s share of that US$5.3 billion intelligent cloud revenue figure for the quarter would put it well behind the US$5.1 billion AWS racked in over a similar period. Dave Bartoletti, a principal analyst at Forrester estimates AWS revenue at US$18 billion and Azure, excluding Office 365 and other non-platform revenue, at US$12 billion for the calendar year. “Azure has been growing faster on a smaller base, yes, but in our view, AWS’s growth is still very strong even at their size,” he added. “Azure is giving AWS a run globally, and is close to feature parity on many services. “Azure has also aggressively built out global regions and is on par with AWS for global data centre locations. It’s a healthy and exciting market, and Azure’s doing quite well.”
Original source: Is Microsoft Azure really making up ground on AWS?