Typically insurers only access 20% or less of the data they store in silos and disparate systems. If you fall in this category how can you expect to achieve digital transformation? You can't!
Yet you are probably cajoled into AI projects as 72% of your competitors state this is a critical strategic initiative? Urged to analyse unstructured data to find new insights. Faced with the demand to digitise insurance yet limited by legacy core systems.
Start at the beginning- corporate strategy and data.
Unless you know why you need to make decisions it is unlikely you will make the right ones just because you can access more data. Data is a strategic asset and must be managed to achieve the vision, goals and strategic objectives of the organisation.
"John Wanamaker said: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” In today’s economy, the quote may well become: “Half the money I spend on data is wasted; the trouble is I don’t know which half.” David Blankley CMS Wire Dec 3rd 2018
Blankley went on to say "Too often companies complete a large data collection project, then when nothing happens wonder what all the fuss was about.
Here are three concrete actions your business can take to avoid this fate."
- Re-imagine how to share data
Wait until you access and analyse the right data for the outcomes that are a strategic imperative
Re-imagine how to exploit and action the insights form the right data
Explore new insights that will help delight customers, collapse costs and disrupt competitors
Blankley further states the obvious but a fact probably forgotten by many. Data at rest stays at rest- " Collecting data provides a foundation for more informed decisions. However, it is just the foundation. Once collected, the data still needs to be converted to information that can be understood and acted upon."
How to do that when our core systems are 15 or more years old without replacing with yet another complex, inflexible and costly insurance system?
Do what other major insurers have done and chose one of the agile, business configurable , quick to deploy (weeks not years) and cost-effective digital platforms that are the digital transformation enablers.
Better still with the ability to access, analyse and gain the insights to digitally transform the business. To apply a laser focus on customers.
But first you still know why you are digitally transforming and what outcomes will delight customers and collapse costs. The you can decide how and with which technology partners.
Explore Have a pet theory about how to improve your business? Now is the time to explore. New data sets are wonderful because they provide opportunities for discovery ahead of the competition. A fresh data set is far more exciting for data scientists than an existing one. Chances are the existing data set has been picked over already and the most impactful insights have already been gleaned.