Strategic advice to leverage new technologies

There has been a big escalation in the media profile of service automation over the last three years. With the introduction of robotic process automation (RPA) and cognitive automation (CA) tools, potential adopters of these new types of service automation tools remain skeptical about the claims surrounding their promised business value. Potential adopters want to know why organizations are adopting service automation, what outcomes they are achieving, and what are the practices that lead to achieving multiple business benefits.

To answer these questions, we conducted two surveys of 143 outsourcing professionals along with interviews of 48 people, including service automation adopters, providers, and advisors. From the interviews, we identified 20 adoption journeys. The benefits include doing more work with fewer humans, improving service quality, executing services quicker, reducing service costs, extending service coverage to 24 hours without shiftwork, increasing work team flexibility, increasing compliance, and, most surprisingly, increased employee job satisfaction. 

The digital revolution has hit the insurance sector, with insurtech disrupting the entire value chain and customer lifecycle. New technology offers opportunities to redesign the customer experience, design new products and services, streamline processes, and increase effectiveness. The opportunities are huge; hence, they attract financial technology startups and drive investment.

While other strategies can to some extent be seen as alternatives, information superiority is different; it should be implemented in combination with any of the other options, serving as a “booster” of competitive advantage. In this Executive Update, we propose possible scenarios for the implementation of information superiority strategy, which provides relatively high sustainability without introducing too much complexity.

In this Update, we explore a firm that adopted decoupling as a strategic principle and discovered not only the advantages of this approach but uncovered yet another underutilized capability of data visualization: response redirection.

We are constantly reminded via media coverage of data breaches and other hacking incidents just how important it is for organizations to protect their sensitive data. Naturally, this brings up the key question: where do organizations see the biggest threats to their sensitive data emanating from? A Cutter Consortium survey that asked 50 organizations about their data-centric security and protection practices helps shed some light on this question.

The articles in this issue present perspectives and ideas on business transformation in the digital age. We hope they will inspire and encourage you to visualize the likely future of business in your domain and to explore the opportunities it presents. Finally, we hope their insights will help you identify suitable transformation strategies and plans and, if needed, choose viable collaboration models for partnering with startups and other firms in your digital business efforts.

The financial services sector was one of the first to be impacted by digitization, and for many years, banks (and also insurers) have been innovating their offerings to respond to the increasing demands of customers, changing regulations, and heightened competition. But the real disruption — which has changed banks’ business models and the way they interact with consumers — began with the emergence of fintech. Increasingly, small, nimble, technology-savvy companies are unbundling the offerings of traditional banks; consider online lenders that provide loans to customers who, due to strengthened credit criteria, have lost access to conventional bank loans, or remittance companies that allow customers to send money abroad at the fraction of the cost charged by banks. In recent months, the trend has been observed even more strongly in the insurance space with the rise of insurtech, which impacts the whole insurance value chain, from customer onboarding, through risk assessment, to selling the products, and finally to claims processing. Digital transformation has become inevitable, and banks and insurers are looking for the most efficient strategies for the digital age. 

Big data, the Internet of Things (IoT), and the cloud are technological innovations that need to demonstrate corresponding business value. While the aforementioned technologies have distinct identities of their own, they are also interdependent. Innovating with these technologies at a business level demands a multidisciplinary, holistic approach that also incorporates an understanding of how to manage risks. The Big Data Framework for Agile Business (BDFAB) provides a basis for fostering innovation and managing the risks associated with it in the big data, IoT, and cloud space. This article discusses the nature of innovation in the context of big data, IoT, and the cloud and its application in practice.