Digital transformation. The vast majority of your customers probably don’t give much thought to the term. But they do expect to engage with your organization in a new, digitized way because of mobile technology, the Internet and, often, simply because they are comparing the experience you offer to that of popular social, commercial and entertainment platforms.
So what is digital transformation, or more specifically, what does it mean for your business? To better answer that question, let’s first define what digital transformation is not.
It’s not just about getting rid of paper.
Reducing the cost and time burden of paper is an essential component of transforming your operations to digital, of course, but “paperless” does not equal “digital transformation.” It’s entirely possible to automate the multi-channel capture, classification and extraction of all your claims documents or account applications, and still not reach the potential of a fully automated and efficient customer onboarding or servicing process.
It’s better to think of a reduction or elimination of paper as a starting point rather than your end goal. When you digitize your data, it’s easier to access, manage and distribute, but more importantly, you can collaborate with other processes through the digital platform much more efficiently and effectively. When your customer touchpoints (their systems of engagement, such as a mobile device) and your line of business applications (your systems of record) are integrated, you can do more with fewer resources, reduce costs and outpace competitors who may be juggling multiple, disparate solutions.
It’s not just about appealing to millennials.
It’s true that millennials tend to lead the way when it comes to embracing digital technology. However, it may surprise you that most people under the age of 70 years also want to interact digitally most of the time when conducting business, whether on their smartphone, tablet or laptop.
In one study, over half of the under 70 respondents wanted the ability to research loan types/rates, apply for the loan, and submit or review documents through a digital channel. And a full 50% expected the option to sign a document without having to drive to a brick-and-mortar office to provide a wet signature[1].
It’s not just a process of internal change.
Digital transformation is not just a process that happens inside your organization. At least it shouldn’t be. The benefits are wide-ranging: from reducing costs while handling greater volumes of complex customer interactions, to increased visibility of operations and an enhanced ability to comply with regulations and mitigate risk. But that’s only half of the equation.
Think of digital transformation as an ecosystem that extends beyond the virtual walls of your organization to digitize all the touchpoints where value can be created for your customers. You want to create an environment in which you are engaging the necessary persons and processes outside, as well as inside, your organization to give your customers a fast, seamless experience. Digitally transforming your business means you can better engage your customers anytime, anywhere, using any device, which is the new normal and what your customers now expect.
It is about closing the distance between your customers and your organization.
You want to optimize and accelerate high-value customer journeys—those beginning-to-end processes that customers experience in getting the product or service they need, through whichever channels they choose. These information-intensive, customer-facing processes include customer onboarding, claims processing, loan automation, citizen service provision, supplier management, and more.
A true digital transformation adds value along customer journeys through capabilities such as:
- Information capture — Ingest any document type from any source (incl. electronic data sources) and integrate seamlessly with business processes
- Robotic process automation — Automatically pull data from hard-to-reach sources into your business processes when you need it, without human intervention
- Customer communications — Send multi-channel communications in-batch, on-demand or interactively
- e-Signature — Securely finalize important documents anytime, anywhere
- Mobile — Engage customers on any device at any stage of the business process
- Process intelligence and analytics — Gain visibility and control over your processes, and make better decisions from data
Learn more about these essential digital transformation capabilities, and how to define and structure a digital transformation initiative unique to your organization. Register now for this upcoming webinar.
[1] Consumer Lending: Understanding Today’s Empowered Borrower, PwC