Prepare for future industry demands with a digital core that is both continuously modern and flexible.
Though oftentimes seen as more traditional industries, Financial Services and Insurance (FSI) are looking ahead with efforts to modernize and future-proof due to the impact of many fast-moving technologies such as artificial intelligence and machine learning, blockchain, bots, and the Internet of Things (or IoT). To harness these forces of change and to remain competitive, forward-thinking CFOs are identifying new ways of keeping costs contained by prioritizing the implementation of a modern and flexible digital core. Bolting on new technology to yesterday’s infrastructure will not create the agility needed to thrive in the ever-changing, highly competitive market of the future. Major change is needed
First, CFOs need to fundamentally change their outlook toward digital technology. This means a shift from the perception of technology as a cost center that supports other revenue-generating activities, to a critical investment in the future that drives competitive advantage and organizational growth. With ever-increasing pressure to achieve such business imperatives as finding opportunities to decrease operating costs without sacrificing customer service and identifying new revenue streams, creating flexible, integrated technology in the form of a digital core needs to be top priority.
Have you embarked on the process to overhaul your technology infrastructure? Here are three key factors to help your company move toward the agile and modern digital core that you need.
True digital transformation will only come by overhauling the old infrastructure and implementing a modern cloud-based platform. To enable continuous change and flexibility, you then need to develop and implement tools and platforms that promote a growth mindset. Continued development will lead to continuous deployment. Lastly comes all of the business process enabling tools that optimally will be integrated into a Single Source of Truth (SSOT) framework to optimize data driven decision making and business solutions. Without overhauling the inner layers of the digital infrastructure, the business-enabling technology – those that provide insight, engagement, and record – will not be positioned properly for future success.
Collaborative technology design is another way for CFOs to be more proactive. Organizations that involve the employees in the process of work design from the development stage can reap significant benefits. Collecting multiple points of view – from leadership who rely on outputs and insight to make decisions, to the users of your financial tools and processes – is critical to ensure efficiency and effective redesign.
What is the biggest expense on your P&L? Labor. Humans cost a lot of money; there’s salary, plus benefits, and insurance, and so on. When a company can effectively transfer routine processes from employees to a robotic process (RPA), this frees up labor costs in a way that is both self-sustaining and impactful to your bottom line. As an added bonus, you and your employees are now available to analyze that data in a more insightful way and drive impactful decision-making.
Successful transformation of Financial and Insurance organizations is about providing sophisticated decision support tools to allow for innovation and growth. With a well-thought out plan, you can aggressively create a digital core that is both continuously modern and flexible; allowing your organization to thrive both now and in the future. Let Workday and Mercer be your trusted partners for true, competitive transformation and digitalization.
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