Insurers are struggling with Digital Transformation on so many fronts but there are three well intentioned mistakes that are being made all the time and could be avoided. Often this is because the executives involved are doing this for the first time.
These mistakes are:
1. Thinking about channels instead of customer journeys.
Because of siloed development, separate business logic is built every time a new channel is created, stopping customers from moving across channels during interactions. As a result customers have bad and inconsistent experiences, employees become frustrated and inefficient and the lack of reuse drives increased costs and inhibited innovation.
2. Thinking about tasks instead of outcomes.
So many insurers lack common processes across systems, regions, and LOBs and then make siloed investments in robotic band-aids to deliver quick fixs. The result is disjointed customer experience, a proliferation of unmanaged bots and little visibility into improvement opportunities.
3. Thinking about silos instead of end to end.
Insurers are organised in silos: Divisions, departments, LoBs etc. This siloed organisation structure results in siloed thinking which inhibits innovation and the ability to service customers in the way that they want to experience.
All this may seem very simplistic but I have seen this so many times now that it I can identify the themes quite easily.
New research from global consulting firm Capgemini has found that only a minority of businesses feel they have the digital and leadership capabilities to make digital transformation a success. Just 39% of businesses felt they had the digital capabilities necessary, and only 35% thought they had the requisite leadership capabilities. Even with those unimpressive numbers, the insurance sector is lagging behind other industries, according to Capgemini. The insurance industry is behind the telecom, automotive and banking industries in both digital and leadership mastery, and at 56% had the highest percentage of beginners in digital mastery. The report surveyed more than 1,300 business leaders across more than 750 organisations. It compared digital transformation progress against a similar report from 2012.