By Marcia Le Roux, SSP
More and more insurers are realising the benefits of switching to digital. But before you embark on a digital transformation drive, it’s important to ensure that the whole business is aligned with your strategy.
Alignment is the foundation upon which your company’s digital journey is built. It involves equipping your teams with the skills they need and fostering a culture of flexibility that allows you to thrive in this rapidly changing landscape.
There are three areas for a business to successfully align itself to experience digital transformation –
Collaboration
Successful workforce transformations require a collaborative effort involving both business and technology teams, led by influential figures such as business development, the CEO, and the chief information officer.
This collaborative approach involves fostering teamwork and driving innovative practices across diverse organisational units, constantly pushing for advancements in the digital landscape.
Recognising the interdependence of all elements within a digital transformation is crucial and calls for effective management. For instance, an efficient operating model relies on skilled talent, and the potential of impressive technology remains unrealised without user adoption.
Achieving excellence in the digital and AI realm is not limited to tech companies alone; even large, established organisations can outperform competitors and unlock value by undertaking the challenging task of rewiring their enterprises. This responsibility extends to the entire C-suite, given the cross-functional nature of digital and AI transformations, with each member playing a vital role in fostering these enterprise capabilities.
Rewiring the business is an ongoing journey of continuous improvement, representing a process of ongoing enhancement rather than a fixed destination.
Business objective roadmap
Sufficient planning and alignment play an important role for transformational success by establishing a roadmap driven by business objectives within the C-suite.
Given the broad-reaching effects of digital and AI transformations on various aspects of a business, investing sufficient time to facilitate a fruitful transformation reaps significant rewards in terms of clear vision and unified implementation.
Some of the top priorities when planning a digital transformation-focussed roadmap include:
- enhancing customer experience,
- acquiring and retaining customers, and
- fostering loyalty.
These priorities rely on leveraging technology and the ongoing advancement of digital experiences on all levels of the business. The specific technology utilised may vary, but it will centre around data, analytics, digital platforms, artificial intelligence, and more – all aimed at continuously transforming the customer experience and meeting the ever-growing expectations of customers.
Insurers are increasingly relying on data-driven decision-making for capital investments. To accomplish this effectively, an enterprise-wide approach is required, with a focus on metrics that provide insurers with a solid foundation for making objective investment decisions aligned with their short-term and long-term goals.
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Employee-focused strategies
The insurance industry is undergoing a workforce transformation, characterised by the need for employees to develop new digital skills, embrace agile work practices, and adapt to a customer-centric culture. This transformation is driven by the industry’s increasing reliance on data analytics, the adoption of emerging technologies like artificial intelligence, and the growing emphasis on personalised customer experiences.
As a result, employees are being encouraged to enhance their digital literacy, collaborate across teams, embrace innovation, and demonstrate a proactive approach to learning and adapting to change.
Insurers are also facing increasing demands from their employees, who seek companies that share their values, demonstrate strong commitments to corporate social responsibility (CSR), and provide meaningful work beyond mere financial compensation. Consequently, many insurers have made commitments to promote diversity, equity, and inclusion (DEI) throughout their businesses, in addition to their environmental initiatives.
Some strategies to overcome the skills shortage and adaptation to this changing environment are:
- Digital skills development
- Agile workforce
- Data analytics and insights
- Customer-centricity
- Collaboration and innovation:
- Change management and adaptability
These key workforce transformations within the digital transformation landscape in insurance reflect the industry’s shift towards a more tech-enabled, customer-focused, and agile workforce to thrive in the digital era.
In conclusion, aligning your business with digital transformation requires a deep understanding of the three main areas unpacked above. By embracing these capabilities and integrating them into your organisation, you will position yourself for success in the digital age.