The term “digital transformation” has taken some criticism for being overused of late, but the simple truth is that the transformation of financial services is being driven by the adoption of digital tools, practices, and procedures. Even so, effective and pervasive results are not a given and there are a number of common stumbling blocks that can derail transformation efforts.
Read our list below for four stumbling blocks we often see on the road to digital transformation for financial services and insurance organizations:
Slow or low ROI
A perennial challenge for any change effort is that enthusiasm and buy-in can be diminished or dashed when expected gains are slow to materialize. A well-designed digital transformation plan can address this by concentrating on low-hanging fruit to deliver results quickly. The modern technologies, processes, and discipline of transformation lend themselves well to making this a reality and results can be expected to accelerate as a well-designed digital transformation plan is expanded.
Chasing gains from data analytics
Expectations run high when it comes to expected outcomes from enhanced insights that come from improved data analytics, but the reality is that it takes careful preparation and hard work to lay the groundwork that will produce outstanding outcomes. While it is often possible to produce quick gains in insight to prove the case, deep, long-term results are dependent on a concerted investment in data infrastructure. Again, short-term gains can show the way, but the message that investment and time are needed for pervasive transformation should be employed as well.
Cybersecurity threats
It seems like not a day goes by that there is an announcement of another serious cybersecurity threat emerging. Serious, sophisticated cybersecurity threats are a fact of life and if history is any guide, these threats will only continue to increase in both numbers and intensity. Fortunately, the native cloud computing resources that are foundational to digital transformation efforts often have superior security profiles and they also offer wide-ranging and intuitive tools to help with cybersecurity efforts.
Resistance to change
At its heart, digital transformation is much more than new technology. Technology changes the way that development occurs which, in turn, affects the ways in which teams collaborate and work is organized. Ultimately, the org structure of the enterprise is affected as well, with more of a reliance on horizontal cooperation and integration. People can be naturally inclined to resist disruption so the human element to digital transformation should not be ignored. In this new reality, change must be addressed at the level of Human Resources and vocal management support is a big help.
Our white paper “Is Digital Transformation in Financial Services Dead?” co-authored with Google Cloud, goes into greater detail on ways that the biggest stumbling blocks to digital transformation can be addressed along with ways that digital transformation will ultimately benefit your organization. Download your copy now.
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FINANCIAL SERVICES
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