There is plenty of hype about digital transformation (DX). It’s going to save the business; it’s going to transform customer engagement; it’s set to redefine collaboration and communication. All this is true, but only as a part of a whole. DX is a journey, not a destination, and the route isn’t linear – it’s decided by the business, its strategy, the shifting sands of market and economy, and on building a culture that’s capable of leveraging digital to achieve results that are measurable. It’s not a tool. It’s not one single technology. It’s transforming the way the business thinks about business.
Demystifying DX asks for several steps in an entirely new direction, particularly in the financial sector where DX initiatives have often inhibited growth rather than enabling it. The challenge is that often decision makers in financial services and insurance companies see DX as a technology investment that will silver bullet its way through legacy problems. It won’t. Well, actually it will, if it’s part of a rethink around how the business is organised and how it redefines its processes and products to drive long-term success.
The biggest myth is that DX is technology that will simply deliver exactly what the business wants, when it wants it. The reality is that technology only forms one small part of the equation, and the rest is made up of culture, mindset and strategy. As the business embarks down the DX road, there are three key steps that it must take to ensure that DX is not a mythical beast that may or may not deliver value.
The first step is to see DX as an enabler. It can provide the business with the tools it needs to meet the demands of a rapidly evolving market. Customers want the same customer experiences from the financial industry as they get from buying a book or groceries online – they want speed, efficiency and reliability.
Many DX projects are not successful because there was internal resistance. Leadership paid lip service to the idea and put some backing behind the technology, but they stuck to the status quo because it was what they knew and were comfortable with. DX is more than a project; it’s a culture shift. It is a fundamental redesign of internal thinking that allows for people to fully realise the potential of the technology that comes with DX, and to innovate within that potential.
The right culture and approach – created by ensuring that there is buy-in and awareness throughout the business – will result in an agile and flexible mindset that translates to fresh thinking, new products and intuitive service delivery. The second step? Build a culture that embraces the capabilities of DX with employees and leadership that are empowered to implement it effectively.
Generating value
The third step is to see DX as a constantly evolving process. McKinsey captures this perfectly in its recent podcast, Digital transformations are a long game, where it points out that it’s become fashionable to talk about how often DX fails and how difficult it is to get value — that DX is elusive and murky as a quantity. However, “the point of digital transformation isn’t to become digital. It’s to generate value for the business” – and this value is found in expanding market share, lowering operational costs, driving intelligent growth and innovation, and evolving in line with markets and customers.
The fourth step is to recognise that DX is iterative. Most companies have already embarked on a process of DX so they don’t need to rip and replace when it doesn’t deliver what they expected. They can simply refine what they have by recognising the problems that have inhibited its capabilities.
Finally, the business needs to maintain a clear vision about what it wants to achieve. To step away from the concept of digital transformation and to rather reframe this concept as modernisation, as a methodology that helps companies to optimise their people, processes and growth. The insurance industry may be an old industry, but it can benefit immensely from reorganising the way it does business, the way it thinks about business, and the way it uses technology to reimagine its potential.
About Greenraven
The urgent need for digital transformation by insurance companies has been highlighted by the Covid-19 pandemic and the various lockdowns across the world. Our consulting projects to businesses and communities therefore touch on all aspects that can improve the well-being of people, the environment and governance.
At Greenraven we have extensive practical experience in the African insurance industry to be able to advise on the following:
- Inclusive insurance – why and how?;
- Digital transformation and where required, access to affordable scalable technology;
- Transformation project management;
- Alternative distribution strategies;
- Cell captive arrangements;
- Product design and alternative pricing strategies;
- Simplified policy wording;
- Change management and mentoring.
Contact us at [email protected], visit greenraven.co.za or connect on LinkedIn.
- This promoted content was paid for by the party concerned
