Digital Transformation is perhaps one of the most trending buzz phrases in business blogs and publications. It is a loosely used descriptor for a wide range of strategic objectives: from tactical projects to cloud applications and novel products and services that disrupt industries. To do justice to its meaning, a digital transformation must fundamentally change an organization’s way of doing business, whether this implies redesigning the customer experience, uprooting and reinventing operational processes or creating new revenue streams with technology. Most modern enterprises will tap into the powerful and ever so appealing capabilities of new and emerging technologies to drive an impactful business transformation. While some major transformations are widely known, like Netflix’s shift from a DVD rental retailer to an AI-powered video streaming service leader, there are plenty of non-mainstream digital transformation examples that can be the spark to action for businesses that are lagging behind in the quest to remain competitive.
Organizations that operate in regulated industries face a set of challenges when it comes to implementing innovative ideas. Information security, privacy regulations and auditory compliance take center stage in every technology project, adding a few complicated but necessary layers to the innovation process. Following are digital transformation examples in the healthcare, banking and insurance industries that should motivate business leaders to think creatively and identify new ways to impact their organizations.
Credit Unions Play to Their Customer Service Strength
Credit Unions are known for offering better customer service and higher interest rates on deposits than banks but have been lagging in digital innovation. They have been facing pressure from millennials to get up to date with technology for some years now, but since the COVID-19 pandemic has forced many physical branches to shut down, a digital transformation in the industry is imminent.
As an example, Affinity Plus Federal Credit Union has gained a unique edge after undergoing a three-year extensive digital transformation. It fundamentally changed the digital and in-person experience and reengineered its operations. Catering to millennials looking for intuitive, digitally led solutions, it implemented an innovative, mobile-first digital banking platform. It also changed its 20-year-old core operating system to provide members and employees a better experience in terms of day-to-day interactions. Understanding that not all members are technically adept, Affinity Plus also placed significant investment in developing next generation branches, which provide open technology bars, face-to-face interactions and a wide array of new digital tools. Affinity Plus showcases a great digital transformation that is driven to make technology work for people, not the other way around.
Hospitals Improve Administrative Interactions with Patients
Clinical applications of AI, such as computer vision algorithms that detect cancer in X-ray images, have become the “poster child” of the future of healthcare. However, there are many other areas that affect a patient’s experience, including navigating through administrative processes like pre-registration or managing finances.
Boston Children’s Hospital is using AI to transform the patient-provider communication around financial and administrative services. The hospital is automating the process of obtaining managed care authorizations and approvals for different procedures and outpatient visits, freeing up staff to have more meaningful interactions with patients. Beyond that, it is also coming up with better ways to communicate with patients and their families about their out-of-pocket costs as deductibles and co-insurance costs continue to climb. It is doing this by providing self-service options that will enable the hospital to expand its hours of operations beyond the traditional call center window.
Insurance Companies Look Beyond Quantitative Analytics
The insurance industry is no stranger to sophisticated quantitative algorithms and predictive analytics as part of the risk assessment process. Newer advances in machine learning and computer vision are creating new core value propositions for insurance customers. Amica Mutual Insurance is leveraging satellite imagery to do automatic remote inspections of properties, allowing them to respond to customer needs with unprecedented speed and quality of service. With the new AI platform, the Amica team could, for example, detect if a roof is damaged, assess risk and proactively reach out to customers before the structure is severely compromised.
PBM Launches Prescription Home Delivery Application
Pharmacy Benefits Management (PBM) companies administer prescription drug benefits on behalf of health insurers. They manage the nitty gritty intricacies and complexities in claims processing and formulary management. As an innovator, Abarca and Triple-S Management Corporation are on a mission to continuously improve the pharmacy experience for patients. In 2019, they partnered with software and AI consultancy Wovenware, to build Puerto Rico’s first prescription home delivery program. The major product launch coincided with the COVID-19 pandemic and “Triple-S en Casa” (the name of the service) provided the convenience of home delivery and peace of mind for millions of people in Puerto Rico at a time when they need it most.
Approaching Healthcare Data Security in a Different Way
In highly regulated industries, digital innovation is bound to strict security standards. Customer-sensitive information must never be compromised and data privacy must be protected at all costs. Innovations in cybersecurity may not be as appealing as other mainstream digital transformation examples, but they have a profound impact on a company’s bottom line. Data breaches cost companies millions of dollars every year and attacks are increasing in numbers and severity and they are constantly changing. Rules-based software has been guarding patient information for the past decades, but machine learning algorithms may offer new and more effective ways to safeguard data. Johns Hopkins developed an AI application to produce a highly accurate privacy analytics model that reviewed every access point to patient data and detected when an electronic health record (EHR) was potentially exposed to a privacy violation, attack or breach. Employing supervised and unsupervised machine learning techniques and transparent AI methods, Johns Hopkins implemented a predictive privacy analytics platform. As a result, security investigations were reduced from 75 minutes to only five minutes. Further, the false-positive rate dropped from 83 percent to an astounding three percent, indicating that most notifications were real data breaches. With a new approach to compliance analytics Johns Hopkins fundamentally changed the operational efficiency, potentially saving millions of dollars and protecting patients’ trust that when compromised, can be impossible to regain.
Digital Transformation Examples That Inspire Action
To achieve results comparable to the ones in the digital transformation examples described above, most companies partner with external organizations with different value-added services such as innovation consulting, service design, agile software engineering and applied AI solution development. Multidisciplinary teams will be the key to powering your digital transformation and should include business leaders, industry experts, tech gurus, creative innovators as well as actual customers.
Wovenware, Inc. is a technology consulting firm providing end to end services to deliver digital innovation. Contact us if you are looking for a partner to drive your digital business transformation.