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Digital change …
… is important, and in fact, it's what many insurers are missing. But it's disappointing that most digital transformations in insurance are set to fail. Most digital transformations fail because executives don't know what it takes to keep digital projects separate and get them done. To build your digital change, you need the right parts, like Lego blocks, and build a good foundation so the whole thing doesn't drop.
Research shows that organizations are 6 times more likely to reach their digital transformation goals if they have a change management plan. But as we can see from the high number of projects that fail, most projects start off in a different direction, usually with one of the two mistakes below.
Digital change isn't just an IT job, but this way of thinking is one of the main reasons projects fail. No matter what the project is—digitizing HR operations, updating an old accounting system, automating the shop floor, etc.—organizations tend to put all of their attention on the IT staff. This leads to quick, huge investments in different technologies, which make the digital transformation process harder (and more expensive) to carry out.
Consider that you have been tasked with digitizing the human resources department. Your initial thought may be to make contact with information technology in order to enquire about a new software solution or to add the project to their always expanding backlog of items requiring internal development.
Instead, take a more comprehensive approach to the issue that you're attempting to fix, ideally seeing it through a lens of the four Ps of digital transformation:
People
Who should be a part of the initiative and how can they help? Build a multi-disciplinary team consisting of developers, stakeholders, business users, and anyone else who can contribute something of value to the project.
Portfolio
How will this project fit into your existing collection of software solutions that you have in your portfolio?
Process
How will this project impact the user experience? Which other areas of the organization will this change have an impact on?
Platform
What kinds of technologies are required in order to make digitalization possible? You are free to concentrate on investigating the various possibilities available to you at this point.
The shift to digital doesn't happen overnight. Patience is a virtue and a key to success, but stakeholders, leaders, and buyers want to see quick results that show your work was worth it.
The Agile method is based on getting feedback and making changes all the time. This makes it easier to get people interested in your project. This puts a lot of pressure on teams to come up with solutions for the whole company quickly, which makes them take on too many projects at once.
Instead of having teams work on a bunch of complicated projects at the same time, use an Agile method to prioritize tasks. First, you work on a specific business case. Then you get feedback, try things out, go through iterations, and finish.
For instance, the business case for the HR staff might be to automate requests for time off. This is a pretty simple process update that can show results quickly. It also lets stakeholders and other users test the solution as it's being built and give feedback. The Agile method is based on getting comments and making improvements all the time, which can make it easier to get people interested in your project.
The process of digital transformation isn't something that can be completed in a matter of weeks using only IT. It is an ongoing evolution that is dependent on having the appropriate people, platform, and, most crucially, change management strategy. If you keep these things in mind, your chances of being successful will be much higher, and the opportunities you will find will be virtually limitless.
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