A ‘Darwinian Moment’ For Business
Sapient’s Register says the ability to deal with data will help determine winners
Sapient’s Chip Register
Helping companies cope with big change is an
essential tool on any consultancy’s utility belt.
Chip Register, Managing Director of Sapient
Global Markets, says we are at the beginning
of a transformational cycle as consumers are
changing how they want to experience its service, and as new government regulations are
placing burdensome data requirements on
financial institutions. As a result, the ability to
effectively manage and present data—both to
consumers and government regulators—will
lead to what he called “a Darwinian moment”
for businesses. Naturally, all this change leads
to increased opportunities for consultants and
Register sat down to discuss them. In helping
clients adapt to this transformational cycle, by
building infrastructure, honing and devising
new business processes, as well as improving
data management, 2012 has been a strong
growth year for Sapient Global Markets, which
saw 8 percent growth in the second quarter
and 11 percent in the third quarter.
around improving that experience.
Technology and the different uses of the
Internet for data in general are driving a lot
of transformation for our clients. So that’s a
Massive amounts of data are becoming
available that weren’t before. The technology behind data management is growing
hugely. There is so much data being required
by the government and regulators that people are changing their data architecture to
be able to provide all this trade-level data.
That’s another avenue causing the re-look
at data management infrastructure. Anytime
you want to really get into re-architecting
data in a company, that’s open-heart surgery.
It has to be done very carefully by highly
skilled people. Part of it is compliance,
which is sort of a defensive impetus, and part
of it is changing the customer experience
which is playing a little more offense.
Consulting: What has 2012 been like for
capital markets consulting?
Register: What’s taking up all of our time is
business model transformation. Companies
are doing different things to provide services than they’ve ever done before. At the
same time you have a regulatory twist, you
have a technology twist going on. The way
customers want to experience their wealth
management portals or investor portals is
really changing the way these companies
are aligning themselves. A lot of companies
now are finding competitive edge around a
better experience. We do a lot of work
Consulting: What are clients expressing concern about heading into 2013?
Register: The biggest one I would say is
how do you operate in a world where you
have to maintain so much collateral in the
institutions. You’re going to earn less
because that capital is not at risk. This is
where, as with Sarbanes-Oxley, that the
road to hell is paved with good intentions on
regulations. The whole Dodd-Frank/”Too
Big To Fail” legislation, what you could be
doing is setting up a scenario with all these
compliance mandates that only the largest
institutions can afford to play the game, so
all the smaller players get squeezed out.
January 2013 Consulting