Digital Leaders in Insurance Outperform Others in All Digital Maturity Dimensions | Market Insights™
April 24, 2018
Digital leaders in insurance outperform others in all digital maturity dimensions
Digital leaders in insurance outperform others in all digital maturity dimensions
Digital leaders in insurance focus on 5 key areas: digital strategy, digital talent, process transformation, technology adoption, and innovation.
Enterprises are increasingly looking to analytics to achieve top line impacts – think marketing and pricing analytics to support new product launches and better understand consumer behavior – and positive contributions to their bottom line through, for example, risk and fraud analytics. And they’re increasingly favoring GICs over third-party providers to support their analytics initiatives.
Why? By the nature of their engagement model, GICs are tightly integrated with the parent organization, which better enables the high levels of governance and management that are essential to deliver analytics services. GICs also have an edge as they can bundle analytics services into the business process services they deliver to provide integrated solutions.
Here are just a handful of examples of the types of value GICs are delivering to their parent companies.
Of course, the quality of the analytics and the impact of the resulting outcomes are directly related to the analytics talent the GIC employs.
Some GICs have chosen to upskill and reskill their existing workforce. While one has made it mandatory for select teams to undergo analytics courses and training, others have provided monetary incentives to team members who willingly opt into the training. Both approaches make GICs talent-ready to deliver analytics capabilities and face demand fluctuations. GICs are also exploring partnerships with specialist firms that can provide resources for a short duration, as needed.
To deliver even greater value, many GICs are proactively identifying areas within their operations to plug-in the analytics layer. To facilitate this, they have established analytics as a shared horizontal capability in their organization structure so that the skills and knowledge attained from one team can be leveraged by others. Further, GICs are heavily investing in training data scientists, and providing them global exposure to understand business needs better.
The days of providing just arbitrage are long gone. If your GIC wants to deliver the value your parent company needs in today’s business environment, analytics capabilities must enter into your equation.
To learn more about our view on GICs’ analytics capabilities, be sure to attend our sessions at the NASSCOM GIC Conclave (note, Everest Group is the Strategy Partner for the event) and visit us at Stall 7.
Everest Group offers solutions to help healthcare providers combat margin-crushing regulations, expenses, and risks in turbulent marketplace
A majority of healthcare providers in the United States suffered financial decline in 2017 amid the industry shift toward a value-based care system. Although many healthcare providers espouse a sound and logical strategy that focuses on people, process, and technology, few have been singing that song correctly, according to Everest Group.
In Everest Group’s recently published report, “Healthcare Provider Market: Addressing Issues Beyond Value-Based Care | What Healthcare Providers Need to Do to Address Myriad of Challenges,” the firm presents the challenges faced by healthcare providers in the market today and explains how most healthcare providers’ efforts to overcome those challenges have fallen short.
The key challenges facing healthcare providers include the following:
To engineer a turnaround in this bleak trend, U.S. healthcare providers still need to focus their investments on people management, process improvement and technology enhancement—but in smarter ways than ever before, according to Everest Group. In particular, healthcare providers need to be more targeted in their digital transformation investments and bolder in their ecosystem development endeavors, relying heavily on partnerships to effect greater change.
“One very real and pressing concern of many providers is the large investment they have already made in large-scale EHR implementations and the limited resources remaining for new investments,” said Manu Aggarwal, practice director at Everest Group. “To identify the path forward, providers need to outline a targeted set of investments instead of another round of large ones. Specifically, investments in automation and analytics can yield solid, quick wins and pave the way for future engagements without the need for high capital outlay.”
“Another ‘must’ for providers is ushering in a much more collaborative culture,” added Aggarwal. “For example, providers need real-time data sharing with payers in order to provide enhanced patient experience. Providers also need strong partnerships with technology vendors and business process service providers to deliver the modern, technology-driven services that patients demand. And, finally, broader collaboration among the health network is required for improving patient outcomes and maximizing reimbursements.”
Additional examples of the solutions recommended by Everest Group in the report include the following:
With its four-pillar strategy that pivots around “Digital”, Infosys is refocussing on its client’s needs and has chosen to shift away from products, which was Vishal Sikka’s legacy.
At its fourth-quarter results announcement, CEO Salil Parekh revealed the final contours of a four-pillar strategy, which to a lot of industry watchers had resembled predecessor Sikka’s gameplan.
So, what has changed? Jimit Arora, Partner, Everest Group, explained that as part of the strategy review, the leadership has been decisive in terms of what aligns with Agile Digital. In this regard, Skava and Panaya were not fitting in strategy and hence being divested. This clear articulation of what the company seeks going forward seems to have convinced industry watchers.
Were you as riveted as I was by Mark Zuckerberg’s testimony about the Facebook-Cambridge Analytica scandal?
Here are my key takeaways on the future of the services industry supporting social media and the increasingly digital world.
We are hurtling towards a truly digital economy where data is the key commodity. In such an economy, companies with access to data and, more importantly, the ability to make sense out of it through analytics tools will reign supreme.
It is not difficult to imagine a world where most corporate movements and conflicts center around data – lack of it, desire to access it and acquire better analytics tools, improper/unethical/overuse of it, and inadequate protection of it.
Internet of things and social media platforms can capture zillions of data points, and will potentially be important tools that supply this new currency to the ecosystem. However, market success will depend heavily on who has the business acumen and analytical power to churn data into insights and useful products. This will apply across sectors, but will be critical for BFSI, CPG, retail, and healthcare segments.
Data will not just be hard, like names, addresses, and IP addresses. It will also be soft, such as sentiments, propensity to buy, satisfaction, and the likelihood that a given customer will be a leading adopter. IoT and other data capture/analysis tools will need to change rapidly to accommodate these factors. Whether the claims of Facebook storing 29,000 data points on each individual are true or not, the data it does store keeps track of not just actions but also interest and intent, e.g., browsing but not actually buying a product.
In this new world, data security will be paramount – akin to safeguarding money! That makes cybersecurity a critical prong of a digital strategy.
The U.S. legislative bodies have demonstrated considerable interest in introducing new legislation oriented around this new data economy. My expectation is that the U.S. will mirror the EU General Data Protection Regulation (GDPR,) at least in intent and punitive measures, although the exact tenets may differ, and may be more expansive.
In order to continue to be amenable, operating locations for U.S. and European firms and their back-and middle-offices and IT centers, offshore services delivery countries like Argentina, Costa Rica, India, the Philippines, Malaysia, and Mexico will have to mirror the EU GDPR and U.S. regulations, and upgrade their data protection laws.
Alleged Russian interference in the Brexit vote and the 2016 U.S. presidential election, purported hacking by Western nations into Iranian nuclear reactors, political propaganda on social media, and the umpteen social media wars fought by even governments and elected officials all mean one thing: the Cold War has now gone digital. Against such a backdrop, technology and digital tools have come out of the back rooms of global businesses and into the front rooms of politics and governments.
With their strong emphasis on digital, we foresee governments increasingly investing in it to out-compete other countries. We also expect the public sector to increase their investments in cybersecurity.
Huge emphasis will be placed on a breadth of content moderation services – this includes content review, sentiment analysis, context analysis (e.g., distinguishing between hate speech and valid political dissent), and moderation.
While content moderation was previously viewed as low-value and transactional, the intense heat that social media platforms are facing will change it into a far more important process that involves a fair degree of decision-making. We might even see the most complex streams of content moderation leveraging legal professionals as agents. See my next point.
Because of the huge impact of social media content on almost everything in today’s world – politics (e.g., Brexit and the U.S. elections), the economy (e.g., Snapchat losing US$1.3 billion after a tweet by Kylie Jenner), entertainment, sports, and arts – content moderation will become a heavily regulated and watched process. Liabilities from social media fails will typically run into billions, and so will penalties.
Senator Ted Cruz raised a question related to the political leanings of moderation agents themselves, bringing into focus the larger issue of biases. Over-moderation will also be under scrutiny, meaning that content moderators will need to walk an extremely thin line.
With the explosion of social media across the nooks and crannies of the world, content moderation capabilities will need to keep pace. Facebook already has a team of up to 20,000 professionals moderating content, and that number is bound to leap up significantly in the near term, until AI and automation become smarter.
In our work with global service providers, we are seeing a huge ramp-up in demand for content moderation teams across all developed and emerging markets, and even for languages that were not previously supported by contact center or BPO service providers in any meaningful scale. Mark Zuckerberg himself gave the example of the need to increase Burmese language moderation due to the Rohingya crisis.
The trick for service providers to be successful in such as market will be to have a ready map of where they might be able to access just about any language in just about any kind of scale, because no one knows where the next crisis and related social media content may erupt.
Finally, but probably the most critical game changer in all this, is the role of AI and automation. At a point it will no longer be financially prudent to support the content moderation process with a people-intensive model, especially with the potential demand that can arise in a matter of hours in languages that are traditionally extremely hard to support. In such a scenario, companies with natural language processing and sentiment analysis tools that can make increasingly smarter decisions related to content management will be successful. Service providers and technology vendors that can develop such tools will find a ripe market to sell into!
While human judgment will still be required, IT tools can potentially be trained in an unlimited number of languages and dialects to take care of the bulk of business as usual content.
That’s as far as the eye can see today. But we are poised to see an exciting new world where entirely new tussles lead to some companies emerging as winners and others fading into obscurity as losers.
I would love to hear your thoughts on this topic, so please feel free to contact me at: [email protected].
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