Following up on part 1, McKinsey’s Jump-starting resilient and reimagined operations also talked about the impact of COVID-19 in accelerating end-to-end digitization. Many organizations were on this journey already but the need to support remote customers and remote workers has really accelerated it.
The thing about end to end digitization is that you must digitize decisions not just data and processes. The reality is that many organizations have digitized their data and their business processes over the last few years. For many of them, the piece that is still manual is their decision making. Digital data is being stored, digital content is being routed and digital processes coordinate the work involved. But they’re still using people to make all the decisions. This might have been acceptable pre-COVID-19, but now true digitization is required.
The kind of decisions that need to be digitized are the core transactional, operational decisions. How do I deal with this client? How do I deal with this customer right now? What’s the best way to handle this transaction? Claims handling, next best offer, customer treatment, originations, underwriting, benefit eligibility and much more. Only if these transactions are digitized can you offer customers a real-time, always-on, digital experience.
And not just the transactional decisions that are obvious – it’s also important to find ways to make personalized decisions where before there was a cookie-cutter one. Finding places in the business where you make the same decision for everyone when you could make a different decision for each person. Is this piece of web content the same for everyone or does it respond to the person who’s logging in by making a micro-decision about them so that you target them with better content? in a COVID-19 world your digital channels must support 100% of your customer interactions. This makes identifying and automating these “micro-decisions” critical in building the personalized, responsive systems you need.
These decisions often involve a mix of human judgment, regulation, rapidly-evolving policy and machine learning. To effectively digitize them, you have to really understand the structure of each decision. Understand all of it, automated pieces and manual pieces, and only then draw a suitable automation boundary to figure out which pieces to digitize. A model of your decision-making shows you which technologies to use and how to combine them to make an integrated whole. Decision modeling is a critical component in digitizing decisions so why not check out our white paper on Agility and Efficiency with Decision Modeling and sign up for our newsletter.