{"componentChunkName":"component---src-templates-page-js","path":"/digitalstrategy/","matchPath":"/digitalstrategy/*","result":{"pageContext":{"matchPath":"/digitalstrategy/*","data":{"id":"playlist-09","seo":{"title":"How do you elevate your digital strategy?","description":"","image":"https://impact.economist.com/projects/real-world-strategy/images/share9.jpg"},"link":{"id":"playlist9","basePath":"/digitalstrategy/","path":"/digitalstrategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_09.jpg","full":"/images/playlists/full_pl_09.jpg","alt":""},"label":"Digital Strategy","pretitle":"Digital Strategy","title":"How do you elevate your digital strategy?"},"menu":[{"id":"playlist8","basePath":"/ceo-video-series/","path":"/ceo-series/","type":"brand_ey_parthenon","watermark":"ceo","img":{"thumb":"/images/playlists/thumb_pl_08.jpg","full":"/images/playlists/full_pl_08.jpg","alt":""},"pretitle":"Strategy in Action:<br/>A CEO Series","title":"Watch Now"},{"id":"playlist6","basePath":"/ceo-strategy/","path":"/ceo-strategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_06.jpg","full":"/images/playlists/full_pl_06.jpg","alt":""},"label":"CEO Strategy","pretitle":"CEO Strategy","title":"How do you encourage courage?"},{"id":"playlist4","basePath":"/reshapingbusiness/","path":"/reshapingbusiness/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_04.jpg","full":"/images/playlists/full_pl_04.jpg","alt":""},"label":"Turnaround Strategy","pretitle":"Turnaround Strategy","title":"How do you restructure your business for a reshaped world?"}],"content":[{"brand":"brand_ey_parthenon","bg":{"type":"video","desktop":{"id":"v3:M3v4ps7fA","tracker":"b76211d2-0112-11ed-903f-0ac7d739ff0e"},"mobile":{"id":"v3:nlM1B89Y_","tracker":"32fb45d4-0113-11ed-8f52-0ac7d739ff0e"}},"preview":{"thumb":"/images/previews/preview-09-01.jpg"},"card":{"cls":"top","forceWidth":485,"showDots":true,"title":"How do you elevate your digital strategy?","desc":"Business leaders are reaching higher returns on digital investment"},"readmore":{"type":"article","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B29597296.363161037;dc_trk_aid=553844526;dc_trk_cid=189458919;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"theme":"white-sub","pretitle":"Digital Strategy","title":"Is your digital investment strategy paying&nbsp;off?","subtitle":"The digital transformation landscape","paragraphs":["When it comes to digital transformation, the need for speed is evident. Indeed, three-quarters of executives say they must overhaul their operations within the next two years to compete effectively within their industry.","As such, companies are accelerating their efforts and making record-breaking investments in digital technologies. In 2022, executives say they plan to allocate 5.8% of their revenues to digital transformation projects, up from 3.5% in 2020. To put this into perspective: a company with US$10bn in revenues would be increasing its tech spend from US$350bn to US$580m, marking an increase of 65%.","But this also means that executives are under even greater pressure to demonstrate results. To this end, more companies are measuring return on digital investment (RODI), with 41% saying they plan to do so in 2022, up from 23% in 2020."]}},{"type":"ArcChartBlock","content":{"chart":{"value":0.058,"title":"5.8%","desc":"Executives plan to spend 5.8% of their revenues on digital transformation in 2022"}}},{"type":"CopyBlock","content":{"theme":"with-top-margin white-sub","title":"How and where are companies spending?","paragraphs":["More than half of executives are using inorganic vehicles such as corporate venture capital (CVC), mergers and acquisitions (M&A) and partnerships to accelerate their digital journey, in part due to easier access to capital and an increase in the quantity and quality of technology targets. In addition, digital strategies are maturing, with more spend being dedicated to “running” capabilities rather than “building” them. However, the customer remains king: 42% of executives say customer acquisition, retention and experience will be a top priority over the next two years."]}},{"type":"ImageBlock","content":{"src":"/images/t2/p-09-1-img.jpg","alt":"Skyscrapers breaking through the clouds"}},{"type":"CopyBlock","content":{"theme":"with-top-margin white-sub","title":"The key to success ","paragraphs":["Overall, success does not lie in investing more than your competitors, but in investing wisely. Executives must now identify the optimal mix of organic and inorganic investment vehicles and effectively measure RODI. Indeed, it would be prudent to take cues from digital performance leaders, 78% of whom have a formal program to identify, measure and report digital investment outcomes."]}}]}},{"brand":"brand_ey_parthenon","bg":{"type":"video","desktop":{"id":"v3:o_9hQlX4l","tracker":"16a341ec-09b1-11ed-a7f8-0680dbb0ba33"},"mobile":{"id":"v3:gVXvl2TNU","tracker":"cbe041b8-09b1-11ed-b1a6-0680dbb0ba33"}},"preview":{"thumb":"/images/previews/preview-09-02.jpg"},"card":{"cls":"top","showDots":false,"forceWidth":420,"title":"Transforming while performing","desc":"Executives are under growing pressure to enact digital transformation while maintaining smooth day-to-day operations"},"readmore":{"type":"info","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B26635055.334498005;dc_trk_aid=526278881;dc_trk_cid=174612913;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"pretitle":"Digital Strategy","title":"A full systems reboot","paragraphs":["The digital transformation imperative has never been clearer. Leading organizations are finding innovative ways to monetize their data, enter new markets and discover growth opportunities with digitalization at their core.","Companies must now make business-critical decisions as they continue to develop their digital strategies for a digital future.","Laura McGarrity, EY-Parthenon Principal, Digital Innovation, Thomas Holm-Moller, EY-Parthenon EMEIA Digital Leader, and Joongshik Wang, EY-Parthenon Asean Leader, discuss the outlook for global organizations in the digital age."]}},{"type":"VideoBlock","content":{"src":"https://players.brightcove.net/1153191510001/default_default/index.html?videoId=6309408623112","title":"Playlist 9 episode 2"}}]}},{"brand":"brand_ey_parthenon","duration":10,"bg":{"type":"video","addGradient":true,"desktop":{"id":"v3:ooMAkMCNzC","tracker":"12hmaprzj22sms5h2k33nniq8v842hmaprzj52u3cy49p63kaj2bwo735rgniab83iaar1bp92czz3ou1a3b8ib3kcb3m7gef3jc40xu1sk5dby2d5tsre3hacn309f1gsmv9okg1zwrcrxbh4wlq1l1f320t"},"mobile":{"id":"v3:cQBTJGqlJL","tracker":"12hmaprzj22sms5h2k33nniq8v842hmaprzj52u3cy49p63kaj2bwo735rgniab83iaar1bp92czz3ou1a3b8ib3kcb1sq6ssisc40xu1sk5dtqhtattze3hacn309f1gsmv9okg1zwrcrxbh4wlq1l1ffb4i"}},"preview":{"thumb":"/images/previews/preview-09-03.jpg"},"card":{"cls":"top","forceWidth":330,"showDots":false,"title":"Credit where credit’s due","desc":"How a world-leading fintech provider found its “single source of truth” during a transformational merger"},"readmore":{"type":"info","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B29597296.362760308;dc_trk_aid=554009986;dc_trk_cid=188906641;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"theme":"white-sub","pretitle":"Digital Strategy","title":"How do you merge two leading financial services players?","subtitle":"Market consolidation brings scale and innovation by streamlining online payments.","paragraphs":["Fintech companies specializing in online payment solutions have been essential support for banks, credit unions and businesses. But, they have tended to build dominance in one link of the financial payment transaction chain. Until a year ago, First Data, a global merchant acquiror, was operating in some 100 countries, providing point-of-sale and online payment solutions for large and small businesses. Fiserv was the leading US account processor for banks. With combined revenues of US$13 billion, these companies had grown both organically and through acquisitions to become leaders in their respective corners of the payment processing chain. They’d built up capabilities in risk management and credit and debt issuing. The question was, could they be brought together to unlock additional value, provide a better service to customers and accelerate their growth as an integrated asset?","By providing their clients with a holistic payment solution, the leaders of both Fiserv and First Data were convinced that their companies would be stronger together. The underlying logic for the deal — a set of complementary capabilities and complementary clients — was compelling on paper. But grafting together two complex businesses in US$40 billion enterprise value acquisition with over 45,000 employees is no small undertaking. In addition to this, Fiserv made an external commitment to achieve US$900 million in cost synergies and US$500 million in revenue synergies within the first five years following the close of the transaction. The achievement of these synergies would be integral to the success of the deal, as the company announced it would invest an additional US$500 million in an ambitious growth and innovation agenda.","The leadership and enablement of the synergy program largely fell upon Fiserv’s finance organization, which was charged with spearheading this effort. Documenting and rolling up dozens upon dozens of cost and revenue synergy initiatives into a structured, repeatable, monthly rhythm, where progress could be tracked and measured, was no easy task. Chris Dichiara, Vice President and Head of Financial Planning and Analysis for Fiserv, was asked to lead this program for the company. So, how could these two companies leverage technology to realize the financial benefits and joint vision of this transformational merger?"]}},{"type":"ImageBlock","content":{"src":"/images/t2/p-03-4-img.jpg","alt":"Farmland"}},{"type":"CopyBlock","content":{"theme":"with-top-margin white-sub","title":"A single goal, enabled by an advanced digital platform","subtitle":"Consolidating multiple data-points would have taken years without EY Capital Edge.","paragraphs":["“Early on in the merger, I tried to use Excel,” recalls Chris Dichiara. “But piecing together hundreds of Excel files, figuring out what was happening in each of the hundreds of initiatives, getting visibility over the process — workstreams, financial data, roadmaps, milestones — it didn’t work out so well.”","The EY team who led the post-merger integration recommended their end-to-end digital platform, EY Capital Edge, to bring all this complexity into a streamlined solution. Fiserv was able to fully tailor the EY Capital Edge tool to best meet their needs. The tool provided a monthly package which provided all the reporting and insights necessary to keep the new organization on track to meet their synergy targets and execute upon the overall M&A strategy. The platform kept everyone — from the individual initiative owners to the Fiserv executive leadership team — aligned and provided instant visibility across the whole process: it brought efficiency to chaos. ","“EY Capital Edge was fluid, flexible, cloud-based and easy-to-access,” says Dichiara. “Bringing in EY and EY Capital Edge to help organize the process really accelerated the deal. We’ve got over 100 people on the platform today: all our teams use it. I see the same data being used in one of our business units as in Corporate where I sit.” ","A merger of this size encompassing hundreds of solutions, millions of clients and billions of data points, requires “an entire organizational effort,” says Dichiara. The EY team were “there the next week,” putting together the process, instituting controls, and “being innovative in the way they were thinking,” he says. “They built connections internally with us and were extremely flexible…[they helped us to] take the Capital Edge tool and really integrate it into our existing financial planning and budgeting processes.” The EY organization did more than provide a flexible digital solution: they got under the skin of the company, bringing a broad range of experience in where it was needed and fully delivering on the strategy.","Critical to Dichiara personally was having absolute confidence in the financials. “We had no room for error,” he says, “and using EY Capital Edge…gave me 100% comfort in signing off on the numbers”.","The newly combined company, now called Fiserv, is already outperforming its initial targets. Within 8 months following deal close, the US$900 million cost synergy target was increased to US$1.2 billion, and on the revenue side, “we’ve already upped that target to US$600 million,” says Dichiara. With the help of EY Capital Edge, Fiserv is well on its way to achieving all its external commitments and most importantly, as Dichiara reflects, “the integration has come together in a way that we're  winning in [our] clients’ offices”. ","The merged Fiserv is efficiently cross-selling capabilities to its clients, providing a seamless, globally-integrated payment solution that is delivering additional value to its customers."]}},{"type":"ImageBlock","content":{"src":"/images/t2/p-03-4-img2.jpg","alt":"Farmland"}},{"type":"CopyBlock","content":{"theme":"with-top-margin white-sub","title":"A holistic payment solution, backed by a single technology platform","subtitle":"EY Capital Edge helped accelerate this merger and it continues to support the strategy.","paragraphs":["Chris Dichiara is clear that EY Capital Edge accelerated and simplified the process of the merger between First Data and Fiserv, describing it as “instrumental in helping us execute on the deal”. But even post-deal, the tool was an invaluable aid to running the new enterprise. “We took our financial hierarchies, our business structures, our functional structures, and put them into the tool,” he says. “We linked it in with our ERP system and...eighteen months after the deal, our execution plans are kind of just working. It's embedded within everything we do, from a finance side but also a business side and it really has become part of the financial architecture of the company.”","A leading platform that can flex to accommodate a company’s financial, business and ERP structures and systems can continue to provide value post-merger, not just for the company, but for their clients too. The story starts with a bold strategy, but it comes alive through successful execution."]}}]}}]},"id":"playlist9"}}}