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CBRE’s AI-Based Facilities Management Solutions Reaches 1 Billion Square Feet Of Deployment

By
Grace Cooper
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0
CBRE’s AI-Based Facilities Management Solutions Reaches 1 Billion Square Feet Of Deployment

As the nature of work has changed and where it is done becomes more distributed, it has necessitated that companies in the commercial real estate sectors evolve with the times. The companies who occupy commercial real estate have different needs based on less frequent use of the space and different uses for the space, as well. For nearly seven years, Sandeep Davé has been a tech and digital executive at CBRE, the nearly $31 billion revenue company, with more than three of those years as the Chief Digital and Technology Officer of the company. He defines the evolving needs with three “Es”: energy, efficiency, and experience. The ability to collect data has never been greater, but making sense of it can be difficult. The issue is one of diversity both of building types (no two are exactly alike) and building management systems (there is no one standard used).

Davé and his team have developed a home-grown platform called Smart Facilities Management (FM) Solutions. This is an artificial intelligence platform that studies the data and makes suggestions based on the conclusions it draws. “We realized that 39% of our work orders were delayed due to classification errors,” noted Davé. “The artificial intelligence [in Smart FM] helps correct these errors to ensure that we have a better data foundation. The platform also includes anomaly detection. For example, occupancy, sensor-based metric data, and dynamic cleaning [are tied together]. I don’t need to clean the floors every day because Mondays and Thursdays nobody is showing up. There are so many interventions like that in our Smart FM platform, and we have what we call remote monitoring, virtual assist.” Smart FM has been used to improve operational reliability and drive efficiency at more than 20,000 of CBRE’s Global Workplace Solutions client sites, totalling 1 billion square feet.

Smart FM was spearheaded by a team that joined CBRE when the company acquired E2C Technology in the third quarter of 2022. Now Davé and his team are layering in generative artificial intelligence capabilities within Smart FM. He refers to these new capabilities as the CBRE Self-service AI Playground. CBRE employees can upload documents to the AI Playground. As an example, an employee can have a 200-page investment report synthesized, and in a few moments, that employee will be spared the need to try to find a needle’s worth of an insight in a haystack of data. Other solutions include:

  • Virtual Maintenance, which combines remote monitoring and diagnostics, alarm triage and advanced analytics to drive next best actions.
  • Automated Maintenance, which delivers real-time asset performance information and automates compliance reporting and asset inspections.
  • Dynamic Services, which provides AI-driven data insights on space utilization, enabling an enhanced employee experience.

“Now we use the AI Playground to auto-generate content,” said Davé proudly. “The responses I’m getting is that what used to take two days is now taking two hours. This is game changing, and it’s taking off. We’re adding 100 to 250 users a week as we are building this technology.” He foresees many different uses of the Smart FM and the Self-service AI Playground, from drafting emails to better quality and faster responses to RFPs. The team continues to explore the possibilities.

Davé is also pleased with the progress made in making buildings more energy efficient. He noted a story he has heard about how in the early stages of COVID when office buildings were largely empty, the grids serving Manhattan were near peak capacity, as buildings were still being cooled during summer days as though they were full. Davé and his team have worked to combine the occupancy data to inform HVAC usage to ensure better efficiency across the CBRE’s buildings.

Davé closed the conversation with two important insights. First, he noted that he does not see AI as a near term threat to jobs, as it is more important than ever to have humans in the loop. “We are focused on the human element because the technology is still new and humans are needed for everything from review, intervention, bias recognition and the like,” he offered. “We have taken an approach to issue guidelines to that effect.”

Finally, he noted that it is important to chase strategic imperatives rather than shiny objects. “If we avoid chasing the shiny object, and if we link ideas back to what is the core strategy of the business, then we can deploy AI at scale, which is how we will gauge if we are successful,” he said. The results so far would suggest that CBRE has been more successful than most.

Peter High is President of Metis Strategy, a business and IT advisory firm. He has written three bestselling books, including his latest Getting to Nimble. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.

Business Reporter – Finance – Financial services: digitising the consumer experience

By
Grace Cooper
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0
Business Reporter – Finance – Financial services: digitising the consumer experience

The financial services sector is changing rapidly. Customers increasingly prefer to interact with financial institutions such as banks and insurance companies online, often through mobile apps, a trend driven by growing broadband access and ever-more-powerful smartphones running on fast 5G networks. 

 

At the same time, new and disruptive start-ups in the sector are providing innovative ways of providing financial services, such as peer-to-peer lending, automated customer service, mobile wallets and integrated buy-now-pay-later services.

 

Financial services organisations cannot assume that a steady-as-she-goes strategy, focused largely on cutting costs, will still be sufficient. The major incumbents have the advantage of being highly trusted brands. But if they are to meet the challenge of rapid change, they will have to engage far more closely with their customer base, using the savings that automation can bring to provide enhanced levels of service and new, and possibly less profitable, propositions.

 

The increasing importance of data

 

Perhaps the most significant trend in financial services is the increasing importance of data. Increased bandwidth means more data can be collected, and AI and other big data analytics techniques mean that this data can be analysed in real time and converted into highly valuable insights.

 

A better knowledge of consumers makes it easier to comply with know-your-customer (KYC) requirements, especially by strengthening fraud detection and risk-assessment tools. Data can be used to identify consumer trends and develop new services that take advantage of them. And by collecting huge quantities of data about individual customers, financial institutions can provide the personalised and targeted services that generate increased profits and stronger loyalty.

 

One particularly significant trend in this area is the move towards data being shared between institutions (with the data subject’s permission). The most obvious example of this is Open Banking, where third-party financial services providers gain access to customer data held by retail banks. 

 

Open Banking gives consumers better insights into their finances together with the opportunity to find the best services for their personal financial circumstances. However, it is a threat to banks in that it weakens their hold on their customers and increases competitive pressure. Banks cannot ignore this threat and must use this increased pressure to develop new strategies. These could include partnering with innovative start-ups as well as accepting that they will have to provide better customer service and launch fintech services that match the effortless customer experience of disruptive new sector entrants.

 

Enhanced consumer experience

 

Digital technology provides opportunities to improve customer experience. At its simplest, this involves providing comprehensive, intuitive and secure online and mobile banking services.

 

But digitisation can go much further, especially when powered by AI. Personal financial management (PFM) tools will help people understand their finances and how to improve them; they can also help people with tasks such as making payments or adjusting how much they save each month. Customer service chatbots that are helpful (rather than simply enhanced versions of IVR systems) can be developed and may go as far as the provision of personalised financial advice by “robo-advisors”.

 

Wearables are another opportunity for banks. Increasingly, people are forgoing physical wallets and relying on their mobile phones to make payments when they are away from home. But mobile phones can sometimes be unreliable. Having a backup in the form of an app in a wearable device such as a smartwatch will enable people to make payments, check balances and receive notifications about financial transactions even when their phone battery has died.

 

Increased safety

 

Huge effort has gone into ensuring that online banking services are safe to use. Customers are often the weakest link when it comes to securing money against theft. Unfortunately, people are often fooled into making inappropriate transactions by highly credible fraudsters. The industry is investing heavily in measures to identify and prevent fraud and these measures are greatly strengthened through the use of AI.

 

Fraud will always be a problem. For instance, dating scams are very hard to prevent because people so desperately want to believe in the person scamming them. But the fraudsters can at least be identified, and the victim advised that they are in danger.

 

Another improvement to security comes from using biometrics (fingerprints, facial scans and voice recognition) rather than passwords and PINs, to prove identity. Biometrics offer high levels of convenience to the customer as well as increased security (they tend to be stronger than PINs and the passwords many people use) which is why they are increasingly being used to secure online and mobile banking transactions. And where biometrics fail for some reason (perhaps it is too dark for facial recognition to work), the customer can always be offered more traditional routes to customer service as a backup.

 

The future of financial services: the metaverse

 

If Facebook’s owner Meta is correct, the virtual world of the metaverse will become increasingly important, and people might be able to bank in the metaverse using virtual banks, ATMs and other financial services including insurance and currency transactions.

 

In addition, banks might create virtual branches where customers can interact with bank staff. This could be a more convenient and immersive way for customers to bank, and something that would at least in part solve the problems caused by so many bank branch closures.

 

However, the metaverse will bring with it many challenges, including security. Someone walking into a branch of a high street bank can be sure they are talking to genuine bank employees and using genuine bank services. The same may not be true in the metaverse, and financial institutions will need to develop new security measures to protect their customers’ data and assets. In addition, new regulation may be needed to protect consumers banking in a virtual environment.

 

Maintaining financial inclusion

 

The percentage of the UK population who are “unbanked” (do not have access to an account at a financial institution) dropped from 3.6 per cent in 2017 to 0.2 per cent in 2021. That equates to 120,000 people who are totally reliant on cash. However, the number of people who use cash regularly is far larger: over eight million adults in the UK (17 per cent of the population) rely on cash to make payments every day. Cash is declining in popularity. But it is still very much in use, especially by certain sections of society such as older people and the less well off. 

 

For society to be fair, it should be the case that everyone can have access to basic financial services, such as obtaining cash, making payments and saving money securely. And these services should not only be offered online because many UK households (2.3 per cent in in 2023-24, some 650 000 households) do not have internet access. As well as using digital technology to reduce costs and offer better consumer services, the financial services industry must work to expand access to financial services to underserved populations. 

6 Marketing Mistakes Small Businesses Should Avoid

By
Grace Cooper
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0
6 Marketing Mistakes Small Businesses Should Avoid

Marketing is an expense, but it can also be considered an investment in the success of your small business. When done correctly, it can build your brand, draw prospective customers to your website or store, and ultimately drive revenue.

To make the most of your marketing dollars and successfully promote your small business, you’ll want to avoid the following mistakes.

1. Not making market research a priority

Market research, one of the first stages in the marketing process, is used to confirm demand for your business’s product or service, identify its target market and assess competitors.

“If we think of marketing, it’s not only the promotion of services, the promotion only of products. It’s the creation of products. It’s the creation of services. It’s connecting with people,” says Islam Gouda, a marketing scholar and author. “As a small business, I want to understand how my customers are thinking about different aspects in terms of their wants or their needs.”

When researching your target market, consider the platforms and channels they frequent and market your business there.

”Make sure that you’re really focusing on how people are going to find you,” says Jennifer Fortney, president of Cascade Communication, a PR and marketing communications company based in Chicago. Beyond the largest, most popular platforms, Fortney suggests also looking into niche publications and local magazines.

2. Brand inconsistency

“Always have consistent branding across all your channels: your social media, your LinkedIn profile, your website, your brochures, your fliers, whatever it is,” says Vanessa Castillo Bell, a consultant for the Arizona Minority Business Development Agency. “Once you have consistent branding all across your channels, your customers will recognize your brand.”

Establish brand guidelines for the logos, colors, images and text you’ll use across your marketing materials. Consistent branding creates a brand identity that looks professional and can offer benefits such as increased customer trust and loyalty — which can all lead to higher revenue for your business.

3. Not having a clear website strategy

There are many platforms on which to market your business, but your website is especially important. “Businesses own their website. That’s their online home,” Castillo Bell says. Therefore, you have complete control over what information you provide and how.

Castillo Bell recommends learning search engine optimization (SEO) techniques and identifying keywords that your customers would use to search for your products and business. Including those keywords in blogs, newsletters, white papers, videos and other types of content marketing can help your website appear on search engine results pages and gain traffic. Optimizing your website for mobile — since many consumers search online using their phones — is another key step, Castillo Bell says.

You’ll also want to make important details about your business easily accessible to website visitors. “If you’re a local business, be very specific about your location, what areas you serve, and put all of that information on your website,” Fortney says.

4. Expecting immediate results from marketing

Building an effective marketing strategy requires patience; however, a mistake many businesses make is that “they are looking for a quick process,” Gouda says. “They are looking to generate revenue on the spot. They do not wait for return on investment,” he says. Ultimately, “they confuse marketing and sales.”

In reality, the results from your marketing strategy may not be noticeable for months. Researching your target audience, creating consistent messaging in all your marketing materials and exploring free marketing ideas can all help you stay the course.

5. Using too many social media channels

From Facebook and YouTube to Instagram, TikTok and many more platforms, social media is a great place to market your business. However, trying to build an online presence on multiple channels doesn’t guarantee success.

“Just because a social media outlet or a social media platform exists doesn’t mean you have to use it. If you stretch yourself too thin, you’ll do none of it well,” Fortney says. “Own one. Pick one that’s the best for your business and your product or service, own it.”

After you’ve become successful in managing one platform, consider whether you want to add another social channel to your marketing strategy.

6. Not utilizing free resources

Before paying consultants to help with your marketing strategy, “one resource you should take advantage of is your free agencies,” Castillo Bell says.

The U.S. Small Business Administration, Small Business Development Centers, Minority Business Development Agencies and community development financial institutions, as well as nonprofit organizations for women, minorities and veteran small-business owners, can all be good options when you need free or low-cost help with your marketing plan.

‘Give yourself a break’: why small business owners need to regain a sense of balance | Small business, big future

By
Grace Cooper
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0
‘Give yourself a break’: why small business owners need to regain a sense of balance | Small business, big future

If we are honest, most of us could use a little more balance at some points in our busy lives. Getting the right mix between work and leisure time can have benefits for our physical and mental health. It can also improve the performance of a business, research has suggested.

The pandemic saw the biggest change in working patterns for decades, perhaps centuries. There was a surge in home working and flexible, “hybrid” working, blending work in the office with remote work.

But despite this increased flexibility, work-life balance is far from standard, especially among small business owners, who often feel compelled to check emails outside traditional work hours or work over the weekend.

Given the fact that small and medium-sized businesses (SMEs) account for 99% of all UK businesses, that’s a lot of people who aren’t switching off when perhaps they should.

However, there is some encouraging news here. According to a recent survey of UK small businesses leaders by American Express, there is certainly a widespread understanding of the importance of work-life balance and a desire to improve it.

The research is based on responses from 500 business leaders in companies with fewer than 50 employees. Eight in 10 (82%) of the executives agree that regular time off from work is important to their wellbeing.

However, there is often a gap between intention and action, the research found. Almost half (46%) of those surveyed admit to feeling guilty about not spending enough time with family or friends. And one-third (33%) say that they stopped their hobbies altogether when they started running their own business.

“While [small business owners] recognise the importance of frequent breaks in improving their work-life balance and the success of their business, many of them struggle to find room for downtime,” says Amanda Salt, vice-president, small and medium enterprises, UK Card Services at American Express.

Someone who is well aware of this pressure is Michelle Ovens, director of Small Business Saturday UK, a campaign to celebrate small business success and encourage consumers to “shop local” to support businesses in their communities. People often start a business because they want more freedom and flexibility, she says, “but that freedom can be curtailed by them trying to do everything in the business and running out of time in the day and gas in the tank”.

There’s no one-size-fits-all approach to a good work-life blend, says Salt. Some may need to spend more time supporting elderly parents or young children, for example. Others may want more time for hobbies.

There are also benefits for the business itself. The Amex survey found that almost eight in 10 (78%) of respondents agree that regular breaks are important to being a good leader and more than half (56%) think they and their business would benefit from them spending more time away from the workplace.

“Time away, especially travelling abroad or getting a change of scenery, can even offer new perspectives and ideas that entrepreneurs can bring back to their businesses,” says Salt.

Her tips for improving your work-life balance? Set firm boundaries between work and leisure time; for yourself, colleagues, suppliers and customers. Also, book time off work to recharge your batteries and reduce the risk of “burnout”.

American Express Business Cardmembers can use the points they on their business spending to enjoy leisure activities. Photograph: Westend61/Getty Images

For its part, American Express says it is trying to extend such flexibility to its business customers.

For example, business leaders with an American Express Business Card can earn points from their day-to-day business spend on anything from stationery to advertising, and can use those points to help enjoy leisure travel, sporting events and a range of experiences.

Ultimately, however, what constitutes the right work-life balance will vary over time and be different for each small business owner. There isn’t a magic formula and therefore we shouldn’t be too hard on ourselves if our messy lives fall short of our ideals.

“Balance in life is a constant work in progress,” says Ovens. “It might mean work sometimes; sometimes it might mean sport, or family, or community, or rest. The key thing is to give yourself a break – we are all a work in progress here.”

By using Membership Rewards® points, small business owners can make more of their downtime by turning everyday business spending on an American Express® Business Card into activities and treats. These points earned on every transaction give entrepreneurs flexibility to use their rewards in a way that best suits them.

Annual fees apply. 18+, subject to status. For full terms and conditions of American Express® Business Cards click here

If you’d prefer a card with no annual fee, rewards or other features, an alternative option is available – the Basic Card.

American Express Services Europe Limited authorised and regulated by the Financial Conduct Authority.

Morgan Stanley’s AI Assistant Marks New Era For Finance Sector

By
Grace Cooper
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0
Morgan Stanley’s AI Assistant Marks New Era For Finance Sector

Key takeaways

  • Morgan Stanley has unveiled its new internal AI model for research tasks
  • The AI model is built on ChatGPT software, with OpenAI releasing an enterprise tier in August
  • Morgan Stanley’s share price rose 0.4% on Monday

Are banking juggernauts tech companies now? That’s the latest question we’re pondering after Morgan Stanley confirmed it’s launched an internal AI assistant based on OpenAI tech. It’s the first out of the gates to launch a custom AI model, though the likes of JPMorgan, Citigroup and Goldman Sachs are hot on their heels.

The move is likely the first of many we’ll see from the big banks as the opportunity for generative AI grows, with some seriously large numbers being touted by research firms on the potential value added to the banking industry.

Let’s get into the details of what Morgan Stanley has created and the market reaction to the news.

What’s Morgan Stanley’s AI play?

Banking giant Morgan Stanley is officially getting on the generative AI hype with a new artificial intelligence-powered assistant. With the catchy name ‘AI @ Morgan Stanley Assistant’, the new tool is designed for its financial advisors and support staff to access over 100,000 research reports and documents.

The AI program aims to save staff time on administrative and research tasks concerning questions about markets, internal processes and recommendations so that the advisors can focus on their client base more.

The new tech has been built on OpenAI’s GPT-4 software, having first announced in March that it was working on an AI assistant with the buzzy new tech. JPMorgan and Goldman Sachs also have similar projects, but Morgan Stanley is the first out the door with an internal customized AI program.

In the memo to staff, first reported by CNBC, Morgan Stanley’s co-president Andy Saperstein said the new tool would “revolutionize client interactions, bring new efficiencies to advisor practices, and ultimately help free up time to do what you do best: serve your clients.”

Morgan Stanley also has more AI tools planned, including running a pilot on an AI program called Debrief that automatically summarizes client meetings and generates follow-up emails.

Has OpenAI’s enterprise tier been successful?

Morgan Stanley is just one of the many companies that have been an early tester of OpenAI’s bespoke AI programs, with the AI start-up introducing a separate enterprise tier for businesses in August.

The new tier is designed for businesses of varying sizes and industries and includes access to GPT-4 with no usage caps, faster performance and API credits. The pricing tier varies according to the enterprise client’s size and needs. OpenAI confirmed several companies were part of the beta process, including Block, Canva and Duolingo.

The most critical differentiation with the enterprise tier is that OpenAI’s model isn’t trained on the data the company submits. In a blog post, OpenAI confirmed, “We do not train on your business data or conversations, and our models don’t learn from your usage”. Instead, ChatGPT can be used by the client to train its own custom model for customer service, research and administrative tasks as some example use cases.

However, there are still risks over the new enterprise model. It’s not clear what training dataset is used to train ChatGPT-4 and whether it might involve copyrighted material in its usage. Hallucinations, where the AI model gets confused and hallucinates facts, are also a concern.

Are other banks looking at generative AI?

It’s fair to say the opportunity for banking and generative AI to partner together is massive. JPMorgan confirmed back in May that it was looking to develop a ChatGPT-like AI model to handpick investments for customers. The banking titan is also investing $1 billion in AI and data analytics in 2023, with a view to investing either the same or more every year.

That’s nothing compared to the potential return on investment. JPMorgan predicts it will see $1.5 billion in realized value for 2023 alone, while McKinsey estimates AI could create up to $1 trillion of additional value every year for the global banking sector.

Citigroup also laid out its AI plans recently, with CEO Jane Fraser confirming the bank had been working on generative AI models for the last three years. Fraser commented in her LinkedIn post that “the risks of not embracing generative AI far outweigh the risks of engaging with it.” Citi, along with JPMorgan and Goldman Sachs, had banned ChatGPT on their trading floors until a full risk assessment was completed.

The Evident AI Index ranks the top 23 banks in North America and Europe on how well-prepared they are for the coming AI revolution, with JPMorgan taking the top spot by some distance. Ranked on talent, innovation, leadership and transparency, U.S. banks are further ahead of their European counterparts and took up seven of the top 10 spots. Morgan Stanley held the tenth spot in the index.

What else is happening with Morgan Stanley?

The AI news coincided with the announcement on Monday that Morgan Stanley was being sued for at least $750 million by private equity firms that claim they were defrauded in a bad high-speed rail company investment.

Subsidiaries of Certares Management and Knighthead Capital Management have charged Morgan Stanley with contract violation and fraud, alleging that the firm improperly restructured a deal involving their investment in a loan to Brightline Holdings.

Brightline Holdings, also a defendant in the case and backed by private equity firm Fortress, operates a Florida rail system and plans to develop more railway lines between LA and Las Vegas.

The plaintiffs said Morgan Stanley convinced them to invest $281 million but concealed information about a Brightline preferred share deal that should have needed the loan to be paid at a “make whole” amount of roughly $750 million. The bank is also accused of forging documents.

Morgan Stanley said in a statement, “The firm does not believe the claims have merit and will defend itself vigorously.”

What was the market reaction?

Morgan Stanley’s share price closed 0.4% higher on Monday, possibly driven by the AI news. In some good news after the litigation bombshell, the stock has also risen 0.12% in premarket trading on Tuesday.

The bank’s share price is up 3.49% since the start of the year after a tumultuous March banking crisis left the banking sector’s stocks struggling to recover. In comparison, rival JPMorgan has seen a 10.36% increase in its stock, but Goldman Sachs has declined 0.8% and Citigroup has lost 6.8% in value. SPDR S&P Bank ETF has seen just over a 16% decrease in its value in 2023.

The bottom line

Morgan Stanley has been the first to lay down the gauntlet and present a fully operational, internal AI model to make life easier for financial advisors and staff. We can imagine the other top banks will want to mimic the success soon with their own AI models.

As for Morgan Stanley, the bank saw a slight gain in its share price on Monday as a result. What’s interesting about AI in banking is that the potential value added pointed out by McKinsey is enormous – which is why so many banks are looking to hop on the generative AI bandwagon. Expect a flurry of banking-related AI announcements in its wake.

Video Quick Take: What Finance Leaders at Midsize Firms Need to Succeed

By
Grace Cooper
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0
Video Quick Take: What Finance Leaders at Midsize Firms Need to Succeed

Julie Devoll

Welcome to the HBR Video Quick Take. I’m Julie Devoll, editor for special projects and webinars at HBR. Today we’re with Eric van Rossum, chief marketing and solutions officer for SAP Cloud Enterprise Resource Planning. We’re here to talk about what midsize company finance leaders need to succeed. Eric, thank you so much for joining us today.

Eric van Rossum

Thanks for hosting me; I am excited to talk about what all this means for midsize companies.

Julie Devoll

To kick us off, what are some of the issues keeping CFOs up at night?

Eric van Rossum

Great question. At the end of the day, what keeps the CFO up at night, with all the topics throughout the day, and what’s top of mind? CFOs are in a tough spot. We’re in a low-growth, inflationary economic environment. But stakeholders and shareholders still expect revenue growth.

CFOs are thinking: “How do I set the right strategy and roadmap for growth in this volatile and uncertain economy?” And they face some challenges from that perspective. First, they need to create reliable financial forecasts and models when things are so unpredictable. And second, there is a need to ensure the availability of adequate capital to support the growth strategy, as well as the day-to-day operations, which with rising interest rates, means conducting a more focused review of different financial instruments, opportunity costs, and time horizons.

Julie Devoll

How can finance leaders at midsize businesses leverage technologies like Cloud ERP to manage today’s needs? But also, drive towards future growth?

Eric van Rossum

I think there are three things: One, Cloud ERP isn’t limited to just a moment in time. Two, Cloud ERP puts companies on a journey of continuous innovation. And lastly, three, Cloud ERP provides standardization.

And let’s start with that first point, that Cloud ERP isn’t limited to a moment in time. Solutions like S/4HANA Cloud, public edition, grow with you. They allow companies to adopt the capabilities they need as they grow. And particularly for midsize companies, they can get started with the essentials they need to operate today and build from there.

Speed is the name of the game. It’s about going live in two to three months and iterating from there. And this tees up that second point—that Cloud ERP puts companies on a journey of continuous innovation. Companies can leverage quarterly innovation cycles to deploy new capabilities. And this is how we deliver software today, on regular intervals.

And then lastly, there’s standardization. Midsize companies will get the same time-tested processes as their larger competitors out of the box with Cloud ERP without expensive customization. And SAP is known for defining the industry best practices in ERP, and we’re working on defining the next-generation ERP best practices as well. And as I mentioned, customers get these out of the box, driving a quick time to value based on those industry best practices.

Julie Devoll

You’ve mentioned how an organization’s finance and accounting teams can lead the way in ensuring growth and resiliency, both for today and tomorrow. But what can finance do to get the most powerful social and environmental results?

Eric van Rossum

For finance leaders, they can do three things. First and foremost, understand their role. Finance leaders play a key role in driving social and environmental results. They’re going to be stewards and decision makers who help set targets and KPIs for their business, whether that’s carbon accounting or key metrics around social commitments, diversity, inclusion, or environmental impacts.

Second, they can lead by example by incorporating sustainability into the discussions around financial planning, bringing the rigor they’re known for in finance and accounting and applying that to ESG requirements and companywide controls as well. And thirdly, they can partner and collaborate. As ESG requirements evolve from voluntary to mandatory across the globe, standardization and transparency are needed.

That’s going to work best when companies get collaborative and partner with like-minded organizations within and beyond their own standards.

Julie Devoll

Eric, is there anything you’d like to say today in closing to our audience?

Eric van Rossum

Absolutely. At SAP, we’re taking a very active role in supporting efforts to bring more standardization to sustainability. We recently announced plans to introduce what we call a green ledger, which is ledger-based accounting for carbon. Companies can manage carbon entering and leaving their systems and balance their responsibilities to society and the environment, aka their “carbon books,” the same way we do financial books.

ERP has always been the system of record for finance, and with this green ledger, we’re working to make it the system of record for sustainability as well.

Julie Devoll

Eric, this has been a great conversation. Thank you so much for joining us today.

Eric van Rossum

Likewise. I enjoyed it very much and hope to talk with you again soon.

Learn more.

Eric van Rossum is chief marketing and solutions officer for cloud ERP at SAP.

5 benefits of SMS marketing for your small business

By
Grace Cooper
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0
5 benefits of SMS marketing for your small business

Phone fetish

As consumers become more reliant on their mobile devices, the power of SMS communication cannot be overstated. SMS marketing provides a unique opportunity in this digital age, where messages can easily get lost or disregarded in busy feeds and inboxes. It provides a direct and instant connection with your target audience. Understanding how SMS marketing can elevate your business is critical whether you’re a startup wanting to build a name for yourself or an established brand looking to fine-tune your methods.

Join us as we look at five benefits of SMS marketing and why it deserves a prominent place in your marketing toolkit:

  1. Instant & direct communication
  2. Increase conversion rates
  3. Cost effectiveness
  4. Personalised customer engagement
  5. High open rates & engagement

1. Instant & direct communication

A core benefit of SMS marketing is that it provides businesses with a significant edge by allowing for direct and immediate communication with their target audience and customers.

Text messages, unlike other marketing methods that may get buried in cluttered inboxes or social media feeds, have an amazing capacity to cut through the noise and instantaneously grab users’ attention.

You can be assured that your communications are received quickly due to the fact that ‘97% of text messages are read within 15 minutes of delivery’. This rapid reach is especially useful for time-sensitive offers, announcements or event promotions. SMS marketing ensures that your message reaches your clients directly and swiftly, building a sense of urgency and engagement that few other strategies can match, whether it’s a flash sale, limited-time discount, or breaking news.

2. Increased conversion rates

Another benefit of SMS marketing is that it can lead to an increase in conversion rates. SMS marketing isn’t about just sending messages; it’s about motivating people to take action.

Businesses have discovered that SMS messages have the ability to drastically increase conversion rates. You can build a streamlined path to action by sending brief and compelling messages directly to clients’ mobile devices. The direct nature of SMS communication promotes a stronger feeling of urgency and swift response, whether it’s urging consumers to make a purchase, sign up for an event, or take advantage of a limited-time offer.

SMS messages have been found to result in faster decision-making and a higher possibility of completing the targeted action due to their urgent nature. As a result, SMS marketing is an efficient strategy for attaining conversion targets and increasing the effectiveness of your marketing campaigns.

3. Cost effectiveness

Another benefit and one of the most appealing aspects of SMS marketing is its low cost, particularly for small businesses.

Traditional marketing strategies may involve substantial costs for printing, communication, and advertising space. SMS marketing, on the other hand, eliminates such expenses, allowing you to reach your target demographic for a fraction of the cost. With the increasing number of mobile devices, the reach potential is massive, and SMS campaigns may be carried out without the need for expensive design or production.

In addition, SMS messages’ high open rates and engagement levels make every communication matter, guaranteeing that your investment converts directly into customer engagement. SMS marketing stands out as a cost-efficient yet highly effective choice for small to medium-sized businesses looking for significant marketing solutions without breaking the bank.

4. Personalised customer engagement

Another benefit of SMS marketing is that it provides businesses with a unique opportunity to establish personal ties with their customers. You can adjust material to individual interests and behaviours by using segmentation and targeted messaging.

You can establish a sense of value and exclusivity by contacting users by name and providing relevant offers based on previous interactions. This personalised touch builds deeper customer relationships and promotes engagement. Customers are also more likely to respond positively to messages that are relevant to their interests and requirements.

SMS marketing allows you to develop a deeper link with your audience, resulting in increased customer loyalty and satisfaction, whether it’s a birthday discount or a product recommendation based on previous sales.

5. High open rates & engagement

Another benefit of SMS marketing is its exceptional open and engagement rates that are challenging to match in other communication channels.

SMS marketing has a very powerful ability to capture the attention of the target audience when you consider that ‘55% of all SMSes are read [while] 100% of SMSes are viewed’. SMS’s simplicity and private nature encourage receivers to read and interact with what you send. In addition to this, the compact structure of SMS encourages users to swiftly digest and respond to information, resulting in increased levels of engagement.

SMS marketing is a highly efficient approach to ensure that your messages are not only received but also actively engaged with by your target audience because of this direct and quick engagement.

Final thoughts

There are many marketing strategies and tactics that have varied success rates depending on the industry in which your business operates. We hope that this article has highlighted why SMS marketing should be a core tool in your business’s marketing toolbox, and the many benefits that it can provide.

DIFC unveils five year innovation outlook for financial services

By
Grace Cooper
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0
DIFC unveils five year innovation outlook for financial services
  • Open finance, decentralised finance, digital assets, and ESG-related finance identified as key trends driving innovation in the next five years

Dubai, UAE: A report titled ‘Drivers of Innovation in Financial Services’ issued today by Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region, in collaboration with Refinitiv, a London Stock Exchange Group business and one of the world’s largest providers of financial markets data and infrastructure, reveals a five-year outlook for innovation in the financial services industry.

Following the initial wave of innovation sparked during the pandemic, the global financial services industry continues to see major transformations. Tailored to the evolving preferences and expectations of customers and clients, the high demand for convenient and personalised services has increased competition and continuous disruptions as new players including FinTech and Big Tech companies claim their space in an ever-expanding market.

Leveraging automation technologies such as artificial intelligence (AI), blockchain, and cloud computing are also seeing business model and product innovations that have led to reduced operating costs and streamlining of inefficient processes. Investments in FinTech, projected to grow by 17.2 per cent CAGR to USD 949bn from 2022 to 2030, are further accelerating the ongoing pace of FinTech innovation globally and in Dubai, which offers access to high-growth emerging markets in the Middle East and North Africa (MENA), Western Europe, Asia and Africa.

The report unveils four key trends that will be pivotal in shaping the sector over the next five years, unlocking the potential of open finance, greater decentralisation in finance, the emergence of digital assets as a viable asset class, and the incorporation of ESG considerations across banking operations.

Additionally, the report outlines the importance of innovation within established financial institutions to facilitate agile development and improve future competitiveness through frameworks such as Venture Studios.

A strategic global hub for FinTech and Innovation companies in the region, Dubai and DIFC is home to a comprehensive innovation eco-system that provides financial institutions and FinTechs alike with the tools, platforms and regulatory support that enable financial innovation. These range from forward-thinking regulations, accelerator, and venture building platforms, to venture capital and other start-up funding vehicles, and internationally recognised talent development programmes.

Arif Amiri, CEO of DIFC Authority, said: “Investments in FinTech, projected to grow by 17.2 per cent CAGR to USD 949bn between 2022 and 2030, are accelerating the ongoing pace of FinTech innovation globally and in Dubai. Combined with access to high-growth emerging markets and DIFC’s world-class financial, regulatory and innovation eco-system, this provides immense opportunities for expansion and innovation. At DIFC, we already see Financial Institutions actively joining forces with disruptive start-ups as we collaborate to shape the future of finance in line with our 2030 strategy and beyond.”

Nadim Najjar, Managing Director, CEEMA, London Stock Exchange Group, said: “Innovation in the financial industry has become more important than ever with the continuous and fast pace of disruption in the industry pushing all players to find new ways of doing business. FinTech has been a cornerstone for the financial innovation in recent years, introducing a growing range of new technologies that enable new business models, applications, processes, or products. The ‘Drivers of Innovation in Financial Services’ report provides an overview of innovation in the financial industry, and insights on new financial innovations that will shape the industry in the next five years.”

The report was validated during a DIFC-hosted roundtable with industry leaders Gavin Payne, Head of Emerging Technology, Amazon; Akshay Chopra, VP, Head of Innovation & Design, Visa CEMEA; Danyaal Z. Abdul-Khaliq, Director of Innovation at E& Enterprise; and Alan Francis, SVP, First Abu Dhabi Bank. Other speakers included Youssouf Kamal, Managing Partner, U+ Digital Ventures; Hussam Ziadeh, Partner, Stryber; Simas Ceckauskas, Director, FutureLabs; and Marie d’Hullain, Head of Projects Portfolio, Commercial Bank of Dubai. Representing DIFC Launchpad at the roundtable was Steve Gotz, Corporate Innovation, and Michele Scataglini, Innovation Strategy. Silvina Bruggia, Director, Sustainable Finance, Emerging Markets, Refinitiv, moderated the session. 

Learn more about the key sectors and trends in financial innovation by downloading the complimentary ‘Drivers of Innovation in Financial Services’ report here.

About LSEG

LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system. With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes. LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 23,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.

For media enquiries, please contact:   
Tarek Fleihan
Global Communications
London Stock Exchange Group
[email protected]
[email protected]

About Dubai International Financial Centre

Dubai International Financial Centre (DIFC) is one of the world’s most advanced financial centres, and the leading financial hub for the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with an approximate population of 3 billion and an estimated GDP of USD 8 trillion.

With a close to 20-year track record of facilitating trade and investment flows across the MEASA region, the Centre connects these fast-growing markets with the economies of Asia, Europe and the Americas through Dubai. 

DIFC is home to an internationally recognised, independent regulator and a proven judicial system with an English common law framework, as well as the region’s largest financial ecosystem of over 39,000 professionals working across over 4,900 active registered companies – making up the largest and most diverse pool of industry talent in the region. 

The Centre’s vision is to drive the future of finance through cutting-edge technology, innovation, and partnerships. Today, it is the global future of finance and innovation hub offering one of the region’s most comprehensive FinTech and venture capital environments, including cost-effective licensing solutions, fit-for-purpose regulation, innovative accelerator programmes, and funding for growth-stage start-ups.  

Comprising a variety of world-renowned retail and dining venues, a dynamic art and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of Dubai’s most sought-after business and lifestyle destinations. 

For further information, please visit our website: difc.ae, or follow us on LinkedIn and Twitter @DIFC. 

For media enquiries, please contact:   
Omar Nasro
ASDA’A BCW
[email protected]  
Rasha Mezher | Dubai International Financial Centre Authority  
Consultant, Marketing & Corporate Communications
[email protected]

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