{"id":53768,"date":"2020-12-11T15:08:04","date_gmt":"2020-12-11T23:08:04","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/industry\/microsoft-in-business\/?p=53768"},"modified":"2020-12-11T15:08:04","modified_gmt":"2020-12-11T23:08:04","slug":"leveraging-the-microsoft-feedback-loop-in-the-banking-industry","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/industry\/microsoft-in-business\/business-transformation\/2020\/12\/11\/leveraging-the-microsoft-feedback-loop-in-the-banking-industry\/","title":{"rendered":"Leveraging the Microsoft Feedback Loop in the banking industry"},"content":{"rendered":"

\"Man<\/p>\n

The Microsoft Digital Feedback Loop is about understanding how your captured data better serves your customers and removes analytical silos. In banking, the feedback loop can help you integrate data across your branch, including product offerings, customers, internal operations, and employees.<\/p>\n

Why the Microsoft Digital Feedback Loop?<\/h2>\n

The current widespread business disruption is driven by technology. It\u2019s important to note that this disruption is not evenly distributed across all industries. Those industries that have been more severely affected include transportation and automotive, home goods, media, and hospitality. More specifically, these industries have been impacted by products like Uber, iRobot, ecobee, Netflix, and Airbnb.<\/p>\n

These products and companies are representative of \u2018digital natives\u2019 that have leveraged their software expertise to create a natural advantage over established players. Digital natives typically have three times the number of developers than established players. This comparative advantage allows for quicker updates for both apps and customer-facing products based on customer feedback. This, in turn, provides an opportunity for companies to achieve higher customer ratings.<\/p>\n

The net effect of faster releases is higher revenue growth:<\/p>\n\n\n\n\n\n\n
Releases<\/td>\n<\/td>\n<\/tr>\n
>10% faster<\/td>\n2.5x growth<\/td>\n<\/tr>\n
>25% faster<\/td>\n4.0x growth<\/td>\n<\/tr>\n
Continuous delivery<\/td>\n9.0x growth<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Companies practicing continuous delivery are realizing a 20% lift in revenues over time.<\/p>\n

What is the Microsoft Digital Feedback Loop?<\/h2>\n

Perhaps it\u2019ll be helpful to look closer at an example in a specific industry, such as the automotive industry. A car manufacturer collects near-real-time information on its vehicles and analyzes \u2018signals\u2019 using AI to determine which \u2018actions\u2019 require a response. The car manufacturer also reviews social media activity on its vehicles to track customer complaints and comments.<\/p>\n

Customers complained that the autopilot was taking curves faster than other vehicles. By viewing the telemetry from the car, the manufacturer can both confirm and review activity based on the \u2018signals\u2019 from the car itself. It can also see that customers are hitting the brakes on curves. Once equipped with this data, the manufacturer can then react and remotely update the autopilot so it takes curves slower.<\/p>\n

Some car manufacturers can repair 90% of customer issues remotely. These repairs happen even when the vehicle is sitting in the customer’s driveway. Post repair, the car manufacturer can close the feedback loop by posting to social media that it responded to customer concerns and needs both quickly and efficiently.<\/p>\n

Manufacturers can also review both operations and employee performance with the Microsoft Digital Feedback Loop. Electric car manufacturers can collect data on where customers charge their cars during road trips. More specifically, these manufacturers are using this data to have the GPS navigation system plan road trips through charging locations, placing a priority on those stations that can charge vehicles quickly. This might also entice small businesses to include charging locations on-site along commonly traveled routes to attract more business traffic. With charging stations being more accessible, more electric car drivers would stop along a travel route at a small business location and spend 30 minutes shopping and browsing while waiting for their vehicle to fully charge.<\/p>\n

In a recent IDS study, approximately 70% of organizations claim they have digital strategy capability. However, just 30% of them acknowledged that they have a company-wide data sharing strategy. This disconnect has a profound effect on the ability to intelligently use data across four major digital transformation goals:<\/p>\n