4 Ways Successful Companies are ‘Winning’ in the Digital Era
How are companies ‘winning’ in the digital era? Are your organisation’s business processes keeping up with the pace of digital change?
Organisations can make a massive difference by relieving operational stress and go on to yield outsized results, according to new research in a White Paper commissioned by Cognizant. These results will come from applying digital remedies to precisely targeted process areas, says the company.
Across all industries surveyed for the White Paper, well over a half of respondents believed that digital change needed to occur in their companies in the next 12 months. “It is clear there is a burning platform in place and the flame is high. Action is required now – not ‘maybe someday’”, says author and researcher Robert Hoyle Brown, Associate Vice-President in Cognizant’s Center for the Future of Work.
The Time is Now
“Whether your company is a bank, an insurer, a healthcare provider or a retailer, the time for ‘digital acupuncture’ is now.” Using the example of acupuncture, which pulls from the 5,000 year old discipline of acupuncture, Hoyle Browne believes that ‘acupuncture’ can also be applied to organisations by implementing ‘pinpoint changes’.
“Leaders need to make some critical choices regarding initiatives that will quickly allow the benefits of digital process acupuncture to permeate into other parts of the business. The scale of the opportunity is massive — and eminently achievable.”
Here are the 4 ways that successful companies today are ‘winning’:
1. Focus on the front office first.
Customer-facing processes were prioritised in every vertical industry studied by Cognizant. Approximately 64% of healthcare payers claimed to have digitised enrollment and billing services, and 67% of retailers said they had digitised their B2C channels.
2. Trim fat and build digital muscle.
Digital process change propels top and bottom line results by more than 18%, the respondents projected, which equates to true capital gain. Those interviewed said they decreased costs by an average of 8% due to process digitisation efforts, with the greatest cost take-out originating with insurers (10%), and the lowest returns achieved by healthcare providers (5.5%). Revenues rose by 9.8% due to digitization, with the highest returns originating from insurers (11.6%) and the lowest returns — though still impressive — emanating from healthcare payers (8.2%).
3. Benefit from the treatment with process and value chain integration.
Precision digitisation within the process value chain significantly boosts the impact of cost reductions and speed-to-market improvements, and eliminates friction points, according to the research. For example, nearly half of healthcare payers (46%) cited better integration of the member/ provider customer support value chain, while retailers saw a similar impact on merchandising.
4. Keep it Secure
One essential point that came through in the Cognizant white paper is that effective digital process change relies on secure information and platforms. Roughly 59% of respondents cite data security as the chief issue today as their digital processes proliferate.
“Embarking on digital process acupuncture can seem scary. But unless executives are honest about the need to get started by identifying process stresses that can be alleviated through this approach, they are going to simply be spectators in the changes around them, as incredible opportunities slip further and further away”
“What matters most is lasting outcomes that can result in sustained health and rejuvenation of the whole business – that’s why a digital process acupuncture approach can be such an effective way to get going”.
Read the full Cognizant Whitepaper here ‘Digital Process Acupuncture: How Small Changes Can Heal Business and Spark Big Results”.
You can also read more from author Robert Hoyle Brown, who is an Associate Vice-President in Cognizant’s Center for the Future of Work. He is a regular contributor to the blog www.Futureofwork.com