Data in the Digital Era – Driving New Business Models – TCS
Article Synopsis :
Digital technologies offer insurers a new set of opportunities to create value by leveraging the data they capture while carrying out business as usual. While most insurers are embarking on data-driven digital transformation, many are still struggling to figure out the right data strategy that will be the launch pad for becoming a true data-driven organisation.
In the white paper “Data in the Digital Era – Driving New Business Models and Results for Insurers”, Vinod Kachroo and Arunashish Majumdar from the Tata Consultancy Services team describe how insurers are using data in each line of business in this new digital era. The paper recommends that insurers use an outcome-driven approach to define their data strategy, and focus on using both internal and external data to develop a holistic view of the customer who is at the vortex of this disruptive transformation. The white paper identifies important questions in relation to future data strategies with focus on business results and needs:
- What infrastructure is required to retrieve, store and process?
- What data needs to be sourced to do this analysis?
- What insights can help business in this decision making?
- What can create a competitive advantage for business?
The authors go on to present an interesting model called the 720 degree view of the customer which brings together customers’ external data profiles and their enterprise profiles to drive innovative business models of the future.
The report also identifies some best practices that have been working well with insurers in their journey towards data driven transformation:
- Data Ownership
- Data Quality
- Data Security
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Digital Insurer's CommentsThere is no question that data will continue to play a big role in the digitisation of insurer’s business models in the future. The challenge lies with the successful of implementation of data strategies that derive true business value. The insurance industry is data-rich but still has some way to go with respect to insights and analytics in comparison to other industries such as retail and banking. We believe that insurers must effectively leverage structured and unstructured data from both internal and external sources in the same way these other industries and organisations such as Google and Amazon have done so well. Only then will true competitive advantage come. In addition to the questions and best practices outlined in the report, we feel that insurers should also focus on the following areas in order to execute a successful data strategy:
- Leverage new data sources as well as existing sources
- Identify the right analytics tools
- Hire the right talent
- Integrate legacy data
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