Over the last decade, we have had an opportunity to work with multiple Insurance Companies on different Biz-Tech Initiatives including those around Digital Transformation. As we have already covered in several of our previous insights, most of the transformation initiatives fail, with the primary reason being.... Our experience reconfirms the lack of an integrated approach, by the Companies around Processes, People, Technology, Data, and most importantly Organizational Change Capability, as the primary reason for the failure....
So, what does it take for the Companies to succeed in truly transforming the Org., with Digital Transformation as one of the pivots? That's the focus of this article. Let's dive in straight - we are already delayed 😊
Personalized products/services, self-service capabilities, accessibility/availability within seconds - the ever-changing customer demands & emerging technologies with their raw potential have been pushing Insurers to shed their legacy and move towards transformation. However, the transformation has always been focused on the context of 'Technology', especially with the new fad called 'Digitalization' or 'Digital Transformation'. But is it just Technology that needs to be transformed? Would just replacing your legacy platform with a very advanced new setup suffice? Would giving your customers a fancy mobile app to use but with the same type of products and same level of process inefficiencies satisfy them?
Definitely not (if your experience is different, you are either from Mars or Venus 😊). If Digital Transformation is only looked at in the context of IT, it's like putting in all the effort/investment, for giving the OLD PROBLEM a NEW FACE. Nothing betters for good.
So, what does it take to succeed? In one sentence - it's about bringing together all the inter-related domains, in the context of your VISION for transformation. And construct the right LARGER WHOLE for the NEW YOU. (Goes without saying the need for right leadership & talent - for vision, execution, and in-course corrections)
Getting into the details - You need to look at every aspect of your business (see the list below), through a NEW LENSE, so you reinvent the way you sell, deliver the products/services you already make/provide as well as identify how to create & deliver new value through new digital capabilities.
- Your Customers
- Your Products
- Your Servicing Models
- Your Operations
- Your Workforce
- Your Data
- Your Technology
- ....
Now the next big question, 'HOW'?
Well, as always, we bring to you our Framework and a few thought triggers that might help you course through your transformation journey. Here's a sneak peek....
Take Stock of "Where" we are on "Tech" & Why- Understand the current state of the ecosystem- Culture, People, Processes, Technology, and Data and 'Why' are they in this state?
Reasons & Measures of Gaps - Evaluate the reasons for the current state, identify the gaps between the current and the estimated future. In addition to this, determine the business units that require attention & improvement to facilitate transformation
Digital Acumen - Get a view of the current IT and Digital Acumen of the team, as in a preparation
Incremental Digital Adoption - Set the goals (short, medium, and long term). Focus on the quick wins and plan for an incremental transformation
Take Decisions - As you progress, decide on whether to Continue, Discard, Extend, Deepen, Add, Replace or Redo across the SYSTEM - Products, Processes, People & Technology
Identify & Prioritize Digital Initiatives - Recognize the immediate and short-term goals that are in alignment with the vision, value, and purpose. Focus on "visible successes" or "winnable targets" to boost morale and accelerate the journey
Implement & Measure - Ensure in-course corrections and recalibrate periodically to stay on track and get continued benefits
If by now you are reassured about your intrinsic capability to achieve your DT dreams, then go the extra mile by setting the right criteria for Value-Driven Results 😊:
- Create the culture for Transformation by encouraging and upskilling employees to set a digital mindset
- Ensure Inclusive & All-Encompassing Approach - Transformation is not just about Technology
- Establish a connection with the customers and design based on the needs/wants at key journey points
- Focus on challenging previous strategic assumptions and developing transition plans
- Identify the Leaders who are capable of realizing the change by encouraging responsibility & freedom for the right choices
- Initiate analytics-driven decisions to stay continuously relevant with market changes
Most importantly, focus on the little bets, spot the products/areas that address business challenges and customer needs, and focus on MVPs to begin with (instead of going all in). Digital Transformation is a journey and can give you the right and desired results when achieved incrementally.
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