Digital and innovation are two buzzwords thrown around a lot by people who don\u2019t seem to always have a firm grasp on what they actually mean. Majority of organisations know they need to invest in their digital capabilities and innovation teams, however don\u2019t seem to know how to do this. To help you on this journey, let\u2019s take a look at both \u201cdigital\u201d and \u201cinnovation\u201d and explore some approaches on embedding the two firmly within your organisation.<\/p>\n
Often when people talk about digital they are referring to digital marketing. It\u2019s important to know that digital marketing is only a small component of digital. It involves the use of social media platforms such as Facebook to promote your brand, products and services. Digital is much broader than this. A good way to think about digital is that it\u2019s the connection between your business and technology. It enables organisations to generate value for their end users and for itself through digital tools. These tools can include a variety of channels such as e-mail, apps, social media and many more.<\/p>\n
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Digital can touch on and reach all levels of a corporation regardless of size. It impacts legal matters, customer experience, business processes and so on. It\u2019s far reaching impact is why the industry has coined the term \u201cdigital transformation\u201d. For digital transformation to take place successfully it often requires extensive changes to be made across the organisation. Old and outdated business processes can not always simply be automated and transformed by digital initiatives. Doing so can have an impact on customer experience and leave organisations worse off than before. Some companies are at different stages to others on their digital journey and tend to engage in simple digital experience changes to test the waters.<\/p>\n
The next step in this process is innovation. Innovation is what brings the various digital technologies and capabilities together. It\u2019s a process that involves rethinking products, processes and business models using new and advanced technology. Innovation also refers to changing an organisations culture, processes and ways of approaching problems.<\/p>\n
The key to success is to use innovation as the fuel to promote and drive digital transformation. New technology and creative thinking are ways to make digital processes more efficient and to improve the customer experience. Organisations can\u2019t afford to wait, they need to promote innovation while digital transformation is occurring. This enables them to move quickly towards the test, trial and error phase where they can encourage employees to take risks by testing, failing fast and moving on.<\/p>\n
A good example is the insurance industry that has operated by using similar business models for decades. They\u2019ve essentially been selling similar products in similar ways for a very long time. However, this is starting to change, with new technological developments and new players entering the market, insurance companies are being forced to change. Smaller digital insurance agencies are entering the market with a smaller product set and a focus on providing an optimal digital experience across multiple touchpoints. This has forced the older companies to jump aboard the digital revolution and embrace innovation at their core in order to survive.<\/p>\n
A key tool in transforming old and complex processes is artificial intelligence (AI). AI enables automatic decision making at scale to optimise a customers experience. It\u2019s about replacing the complexity of human decision making that can create inconsistencies for customers and companies alike. An example is Israeli company Five Sigma, who are using an AI-based claims management tool to streamline the decision-making process and become more efficient.<\/p>\n
Insurance companies are also embracing the innovation process by making changes to their old processes. More companies are moving from annual payments to more flexible on-demand payment methods that align more with the way consumers prefer to pay for services in the digital age.<\/p>\n
Innovation can come from anywhere, even from new technologies that create a need for new solutions e.g. cybercrime. Organisations of all sizes are faced with the threat posed by cyber criminals \u2013 a threat that only now exists as a result of the technological developments of the Internet. Israeli insurance company, Menora Mivtachin, are making the most of this trend by offering cyber insurance to small and medium sized businesses. This is a new type of insurance product that\u2019s specific to the digital needs of customers.<\/p>\n
The above examples show that digital and innovation are complimentary. Individually they can provide benefits to companies, however it\u2019s when the two concepts are intertwined that corporations can truly accelerate, grow and differentiate themselves in the market.<\/p>\n","protected":false},"excerpt":{"rendered":"
Digital and innovation are two buzzwords thrown around a lot by people who don\u2019t seem to always have a firm grasp on what they actually mean. Majority of organisations know they need to invest in their digital capabilities and innovation teams, however don\u2019t seem to know how to do this. To help you on this journey, let\u2019s take a look at both \u201cdigital\u201d and \u201cinnovation\u201d and explore some approaches on embedding the two firmly within your organisation. […]<\/p>\n","protected":false},"author":1,"featured_media":83850,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[172,174],"class_list":["post-83093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-machine-learning","tag-ai-machine-learning","tag-business"],"_links":{"self":[{"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/posts\/83093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/comments?post=83093"}],"version-history":[{"count":1,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/posts\/83093\/revisions"}],"predecessor-version":[{"id":83851,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/posts\/83093\/revisions\/83851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/media\/83850"}],"wp:attachment":[{"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/media?parent=83093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/categories?post=83093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/johnnyhuntington.com\/projects\/wp-json\/wp\/v2\/tags?post=83093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}