Article Synopsis :
With digital transformation initiatives a “boil the ocean” approach is often counterproductive.
This report from Cognizant on ‘Digital Process Acupuncture’ presents new thinking on how organizations might apply digital solutions with more precision to realize cost savings and revenue growth as well as heal process pain-points across the industry value chain.
Based on C-Suite discussions with over 300 European and North American banks, PC&L insurance companies, healthcare payers and retailers, the following strategies are suggested for business process digitization in pursuit of early wins:
- Focus on the front office first: Customer-facing processes are the priority in every vertical industry.
- Trim fat and build digital muscle: Digital process changes improve top and bottom-line results by more than 18% equating to true capital gain.
- Benefit from the treatment with process and value chain integration: Precise digital solutions help industries become more agile and achieve significant cost reductions.
- Keep it safe: Effective digital process change relies on secure information and platforms.
The paper outlines how to apply digital ‘acupuncture’ and the benefits of such an approach:
- Release value by pinpointing current and future pressure points: Close process gaps to enable highly-precise, seamless and error-free business operations
- Build digital muscle by removing wasteful expenses in terms of costs and time: According to a Cognizant survey, Insurance companies have achieved 11.6% gains in revenue and 10% cost savings with digital process changes
- Apply digital treatments to customer pressure points to help relieve most of the problems in the value chain
- Drive revenues and close gaps between insurers and customers with 56% prioritizing digital risk and fraud compliance and 51% digitizing innovative claims management approaches
- Process and Value chain integration are the ultimate benefits of acupuncture: 66% of respondents cite improved integration as a key benefit (or expected benefit) of process digitization
- Produce value by a variety of techniques including robotics, automation and real-time processing: In insurance digital processes are being used for location-services (62%), peer-to-peer services (53%), and omni-channel personalized content or services (56%).
Specialists such as data scientists, application developers, digital marketing specialists, business consultants, in-house/shared services centres, and business process outsourcing partners are essential to process optimization. Five simple steps enterprises can take to deliver ‘Digital Process Acupuncture’ are:
- Identify the pressure points and focus precisely by creating the means to drive rapid innovation by connecting technology, data science, devices, design and business strategy to change a business process or customer experience.
- Incubate innovative digital processes by learning best practices from the industry and applying them.
- Find the points from which the money flows to cut expenses and enable cost-savings.
- Invest in IT support teams; stimulate collaboration.
- Strike new, innovative partnerships that cultivate valuable capabilities.
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Digital Insurer's CommentsNo organizational system is the same day to day, week to week. Digital transformation is therefore dynamic.
There is tremendous value in understanding the parts comprising the whole, how everything fits and flows together. Sometimes a minor change in one area can have a major impact on overall system performance.
Why operate – or heaven forbid amputate – when a little targeted therapy will do?
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