2-MINUTE Q&A #8: Digital Transformation Considerations Insurance Carriers Need to Understand
This is the eighth blog in a series on insurance transformation by Majesco and PwC. Today’s insurance blog is a continuation from the 7/7/2022 featured podcast between Majesco’s Denise Garth and PwC’s Kanchan Sukheja and Sudhakar Swaminathan. We will continue to discuss how transformation is a continuous initiative for future growth and how it will ultimately lead you to become a next-gen digital leader.
Q. How can carriers capture the most value out of their digital transformations?
Carriers should recognize that investment in new technology is not enough on its own. While technical transformation gives carriers new or updated systems, it does not, on its own, transform the business processes that are required for a total transformation, nor the processes that are required to support the new technology. Technical transformation also requires transformation at the business level. In any technology transformation effort, carriers should also consider their existing dev ops and operational processes. Business processes likely need to be updated to achieve total digital transformation, and to support any system update or implementation.
Q. How can carriers move from following an agile process to committing to an agile value system?
Agile methodology allows carriers to deliver business value as fast as possible. To realize this benefit, carriers may try to adopt agile processes, however, carriers are likely not to reap the full value of becoming agile without adopting an agile value system. Adopting an agile value system removes the emphasis of strictly adhering to agile processes. In focusing on delivering business value as fast as possible, carriers may need to develop custom, hybrid processes that may deviate from traditional agile processes.
This shift in focus from processes to values, is an ideological transformation that should start at the leadership level. Leaders should create an environment that allows for development, testing, and fast failure of new ideas. Leadership should foster discipline among teams to continue to follow processes that work in the carrier’s environment, and customize agile processes that do not. Carrier leadership should de-emphasize the pursuit of purist agile processes, and re-emphasize a commitment to agile values.
Q. How can carriers change their business processes to avoid over customization of a SAAS solution?
Carriers involved in digital transformations often over customize their new solutions to fit their existing business processes. Over-customization of new technology requires carriers to make large initial investments, which can result in overspending and delays in the transformation journey from the outset. This is a costly mistake that is common in many digital transformations.
Over-customization can be a result of failure to update business processes to function with new technology. This was discussed above. Additionally, over customization can result from scope creep during implementation. Starting a transformation journey with finalized, high quality business requirements can help to guard against scope creep, and the resulting over customization of the solution.
Guarding against over-customization starts at the leadership level. Within their companies, leaders should cultivate a culture that allows for flexibility of business processes; teams should also develop a strong scope management skill set before transformation begins.
Q. After a large digital transformation, how can carriers maintain their new technology?
Successful long term maintenance of new technology requires more than just periodic system updates to maintain it. As with most large digital transformations, a mindset shift also should occur within the company. Carrier leadership should recognize that true transformation never ends, and as such, cultivate a culture of constant technical innovation that maintains and constantly improves the new solution and business processes required to support it. As such, carrier leadership should cultivate strong partnerships between business and technical teams; bringing business folks closer to the technical solution and engineers closer to business processes can result in more successful technical and business solutions.
Denise Garth: If you enjoyed our quick 2-minute chat, check out our podcast for additional questions and answers. We will continue to bring the responses to your tough questions on all topics Distribution Management related, so be sure to check back here every month to catch each blog in our series!