Goals of Digital Transformation Carriers Need to Understand

This is the eighth blog in a series on insurance reform with Majesco and PwC. Today’s insurance blog is a continuation of the 7/7/2022 podcast between Denise Garth of Majesco and Kanchan Sukheja of PwC and Sudhakar Swaminathan. We will continue to discuss how innovation is the key to future growth and how it will help you become the next digital leader.

Q. How can carriers get the most out of their digital transformation?

Carriers need to realize that investing in new technology is not enough on its own. Although technological changes provide carriers with new or modified systems, by themselves, they do not change the business processes that are required to be completely changed, or the processes that are required to support the new technology. Technological change also requires change at the business level. For any technology change efforts, carriers also need to consider existing dev ops and how they work. Business processes must be adapted to enable the digital transformation, and support the restructuring or implementation of any system.

Q. How can carriers move from a legacy system to a value system?

An Agile approach allows carriers to deliver business value as quickly as possible. To realize these benefits, carriers may try to adopt traditional methods, however, carriers cannot reap the full benefits of being agile without implementing a value system. Adopting an agile value system removes the emphasis on strictly following standard procedures. With a focus on delivering business value as quickly as possible, carriers may need to develop hybrid strategies that can deviate from traditional ways of doing things.

This shift in mindset from methods to values, is a shift in mindset that must begin at the leadership level. Leaders must create an environment that allows for the development, testing, and rapid failure of new ideas. Management needs to foster a culture among teams to continue to adopt strategies that work at the warehouse, and adapt those that don’t. Carrier leadership should emphasize adherence to purist agile methods, while also emphasizing commitment to traditional values.

Q. How can carriers adapt their businesses to avoid the customization of a SAAS solution?

Carriers participating in digital transformation often adapt their new solutions to fit their existing operations. Upgrading technology requires carriers to make large initial investments, which can lead to high costs and delays in the transition process from the start. This is a costly mistake that is common in digital transformation.

Excessive customization can be the result of failing to adapt business processes to work with new technology. This was discussed above. In addition, an increase in personalization may result from an increase in the amount of time it is being used. Starting the transformation journey with finished, high-quality business requirements can help avoid redundancy, and its consequences in developing a solution.

Defending against personalization starts at the leadership level. In their companies, leaders need to develop a culture that allows for business flexibility; Organizations must also have strong change management skills before they begin to change.

Q. After a major digital transformation, how can carriers maintain their new technology?

The long-term success of new technology requires more than just periodic updates to maintain it. As with any major digital transformation, a paradigm shift must also occur within the company. Logistics management must recognize that real innovation is never-ending, and thus, develop a culture of continuous technology that maintains and adapts to the new business processes needed to support it. As such, logistics leadership should develop strong partnerships between business and technical teams; bringing business people closer to the technology process and engineers closer to the business processes can create successful technology and business solutions.

Denise Garth: If you enjoyed our two-minute chat, check out our podcast for more questions and answers. We’ll continue to bring you answers to your burning questions on all topics related to Distribution Management, so be sure to check back here every month to catch up on every blog on our list!