Playing the long game with digital transformation
From global insurers to consumer goods giants, top companies agree: Digital transformation is key to keeping their lead.
Thomas Kropp was Zurich's CIO at the time of writing.
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It’s hard to underestimate the importance of digital transformation in today’s business world. According to a survey by the Economist Intelligence Unit, nine out of 10 companies believe digital transformation is now a requirement for success, while almost four out of five (79%) say that without further digital transformation, they will be at a competitive disadvantage within three years.
Companies understand that the goal of digital strategy is not just to raise short-term profits but instead to build a more competitive business for the long term. According to the survey, that involves one goal that stands out above all others: improving the ability to meet customer demands.
“We’re putting customers at the heart of everything,” says Thomas Kropp, group chief IT services officer at Zurich Insurance Group. “We’re focusing on how we can better serve their increasingly connected lifestyles and businesses with digital innovations that provide the tailored risk protection that they want.”
DXC has worked with the global, multi-line insurance provider since 2004 to support its digital transformation initiatives — and with measurable benefits. The use of next-generation cloud management technologies, for example, has brought a 30% cut in costs and a huge reduction in provisioning times. Zurich Insurance Group is currently embarking on a total worldwide digital transformation that embraces a large range of new technologies, including Internet of Things, blockchain, robotics and cognitive computing.
“We are committed to invest in the agility and modernization of our systems and provide a digital workplace of the future for our workforce,” says Kropp. “It is part of our strategy to invest in innovation and digitalization to enhance our operations and to better serve our customers.”
While tech giants such as Amazon and Google designed for digital from the outset, and others such as Uber and Airbnb have exploited digital to disrupt existing sectors, the key for traditional enterprises is to mobilize company-wide change focused on putting customers at the heart of the decision process, according to Michael Fitzgerald, vice president, digital transformation at DXC Technology.
“This means changing enterprise culture by learning how to sense and respond at a very practical level to changing customer needs,” he says.
More than four out five (81%) respondents in the EIU survey say that a change in culture is critical to implementing a successful digital transformation. For more than one in four, that includes a commitment by the C-suite and board to lead development and implementation.
But how do they know where they are going? Like a leading sports coach, DXC uses their proven playbook to guide companies through the process. This is based around a future business model and the road map to get there.
“People sometimes worry that the agility that digital provides can be a bit chaotic,” says Fitzgerald. “So it’s essential to have new frameworks and new models that allow you to be digital but without that meaning chaos. It’s all about doing things on purpose rather than just reacting.
So is there any company in the world that wouldn’t gain a competitive edge through digital transformation? “That’s a good question,” he says, pausing a moment for thought. “And I think I’d have to say no.”