The digital transformation process for businesses

DIGITAL TRANSFORMATION - The future is approaching but also the present needs innovation. For companies, digital transformation has become a requirement that can no longer be ignored. The consequences of its implementation are manifold, as are the problems it can bring. So how does a company deal with digital transformation?

Digital transformation

We have been talking about digital transformation for more than twenty years now, but do we really know what that means? Initially with this term it was intended to indicate all those processes related to digitization and digital archiving of documentation. Even today this meaning is present within the definition of digital transformation but the concept has been substantially expanded.

Digital transformation indicates a set of predominantly technological, cultural, organizational, social, creative and managerial changes associated with digital technology applications. Acting in an organic and combined way on these elements digital transformation goes beyond the simple adoption of new technologies and allows to provide services, to provide goods, to live experiences, find, process and make accessible large amounts of content regardless of the real availability of resources (human, material, intellectual and economic, etc.), creating pervasively new connections between people, places and things. This process is enabled by the development of new technologies, but it is not limited to their adoption. In fact, it aims to integrate and involve the entire technological ecosystem, encouraging transparency, the sharing and inclusion of all participants.

The point of view of companies

From a technological point of view, the tools in favor of companies are Immersive Reality, Virtual, Cyber-Economy, Neuroscience and Neurolink, Blockchain, Artificial Intelligence and much more. All these tools are then integrated with concepts that at first glance have less to do with digital, such as anthropology, emotional intelligence, social sciences.

Those listed are just some of the solutions available to a company, but it is not said that all are suitable. In fact it is necessary that every enterprise before deciding which road it wants to undertake does a research on itself in order to understand own needs. Only in this way can a functional digital transformation be put into practice. Otherwise there is a very high risk of finding oneself in the situation explained by some Italian companies and collected from the research of the Insight Intelligent Technology Index. The data of Italian companies for 2019 show that:

Sustainability and digital transformation

In the process of digital transformation, however, we must not forget another important aspect: sustainability. Another frequent mistake should also be avoided, namely limiting the term sustainability to the only aspect related to attention to the environment. Wrong, because sustainability also means everything that is aimed at improving the human condition. This also implies its position in the workplace.

Sustainability is not just a theme of "fashion" at the moment, but a real need that customers, users of our services, want. The attention to this aspect is always higher and deeper. Consumers are not only attentive to the raw materials used and the exclusive sustainability of the final product, but also ensure that the entire production cycle respects the rules. Important is the whole phase of life of the goods, from the ideation up to the arrival in the houses of the buyers.

The digital transformation for this factor is important, because it must be able to adapt at the same time to the needs of the company, the worker and the customer. And these are very often difficult to match. A meticulously studied digital transformation can, however, greatly simplify things. Unfortunately, however, we are far behind on this aspect, as the research conducted by the Centro Studi Tagliacarne shows that only 6% of the activities have succeeded in carrying out the ecological and digital transformation or is very close to us. All the others are either still far from the final transaction or have yet to begin the transition.

The future of technology

Technology is now a regular player in our present and is about to be the protagonist of our future. Economic activities want to make use of it because it allows them to have access to instruments capable of responding to the needs of flexibility and complementarity. However, to keep up with the pace of digital transformation, staff need to be flexible and able to keep up with change. The investment of digital transformation must also be able to foresee this.

Know your client: Hamid-Reza Khoyi introduces the topic

KNOW YOUR CLIENT HAMID-REZA KHOYI - Investing is not so easy, as it is not easy for those who manage the client portfolio to be aware of the person’s history and his money. In order to do their job properly, advisors need to know as much as possible about investors in order to make the most of their money. To do so they have a number of tools including the "Know your client, let’s discover it together with Hamid-Reza Khoyi.

Know your Client: what is it?

The Know your Client is a tool used to verify the identity of a customer and assess potential risks or illegal intentions in the relationship with the customer. Investment advisors, for example, use it to ascertain the financial situation of their clients and that this is not included in the "black list" or otherwise. This tool is also useful for auditors for whom it is called "Understand your Business". In general, the fields of application are many.

There are three steps in the KYC procedure:

At this stage, all the basic information of the assisted person is collected through the compilation of the primary documents. It therefore requires all the user’s personal data and occurs through the use of credentials such as name, date of birth, address, or other documents. At this stage, the modern screening tools of the customer made available by the modern Fintech are also available.

At this point the customer’s identity is verified and the risk profile is evaluated using the user’s credentials collected. The legal nature of the client, the activity mainly carried out, the geographical area of residence are thus verified.

Performing KYC only in the client’s cognitive phase is not enough. There must be continuous monitoring over time to verify that the information collected initially continues to be valid and that the user behaves correctly over time.

Know your client: Hamid-Reza Khoyi tells you who you are interested in and how to use it

The Know your Client is a freely usable tool in the business world, but there are figures who have the obligation to implement it. These are banks, financial intermediaries, trustee, and industry professionals.

These figures have at their disposal many management technologies to do it at their best. There are directives that require you to prove that you have the software for testing KYC, but everyone is free to adopt the most appropriate degree of depth. Of course, the more you think the customer is a potential risk, the more convenient it is to do a more in-depth analysis.

Important tool to support anti-money laundering

As we have seen, it is a very versatile tool that affects several fields of application, but the first purpose for which it is designed is to support the battles of money laundering. The necessary practices to ensure that illegally obtained money can be used legally, such as insurance fraud, are unfortunately difficult to detect, but the Know your Client, as Hamid-Reza Khoyi says, is an excellent ally.

Now that most operations can easily take place online, adopting KYC becomes more and more fundamental.

Know your customer, the prospects for the future projected by Hamid-Reza Khoyi

The market offers numerous KYC implementation solutions including a wide range of artificial intelligence algorithms that can implement research processes and speed them up without losing efficiency and safety. The future that is slowly showing us technology allows us to look very far ahead.

"Maybe one day the technology will amaze us so much that even the Blockchain can be a useful tool for the Know your Client" - says Hamid-Reza Khoyi.