model between the customer and the corporation, effectively providing a means by
which true information exchange, not just
information transfer, can occur. Outsidein refers to the ability to extract input from
outside the corporation to drive decisionmaking and broader strategic direction.
Inside-out, on the other hand, refers to strategic decision-making based on a model
driven by perspectives within the corporation (primarily a supply-constrained view).
As described in the four-quadrant
view shown in Figure 1, both outside-in
and inside-out input models are relevant
consideration factors depending on the
objectives (external expansion or internal
optimization) of the corporation pursuing
a digital transformation. The highlighted
examples (customer touch points, captive
conversion, internal collaboration, performance management) provide high-level
examples of key opportunities for corporations looking to capitalize on digital.
WHERE TO BEGIN
On a practical level, executing a
digital engagement strategy should be
gradual but still involve all key facets of
the company’s infrastructure. Although
a digital platform is heavily supported
by technology and is rooted in IT, it
should be a priority for the entire business. Paramount for digital success is
a broad top-down mandate that spans
A NA L Y T I C S
marketing, sales, service, operations,
finance and IT.
In terms of implementation, inertial
elements can slow the internal adoption of digital with business-as-usual
perspectives within the company, and
externally through an untrained customer base. To manage those constraints,
companies should adopt and institute
a gradual but focused program, concentrating initially on the interactions
most intuitively handled through a digital interface. Such early interactions
are best exploited in a service and support (e-service) model that provides a
natural problem-resolution incentive for
customers to engage. As a result of a
digital-service-first model, corporations
can obtain insightful data from a large
set of interaction types to help identify
those easiest to migrate to digital. Payment of bills is one the most common
interaction types for this purpose.
The challenges of the present, however, don’t change the fact that digital
engagement is the blueprint for future
corporate operating models. To that end,
organizations that embrace, implement,
and refine their thinking around this imminent paradigm will be the likely standouts
in the capital markets in the years ahead.
Dr. Henna A. Karna is president of Verisk Digital
Services, the digital business unit of Verisk Analytics.
M A Y / J U N E 2 014
|
11