Digital change creating leaders and laggards

Make text smaller Make text larger

  • Greg Hendrick, of XL Catlin

    Greg Hendrick, of XL Catlin


A study has revealed how the importance of embracing digitalisation is creating leaders and laggards across the business world.

Sponsored by XL Catlin, the Harvard Business Review Analytic Services study, entitled Operationalising Digital Transformation: New Insights into Making Digital Transformation Work, surveyed 335 respondents across a variety of business around the world.

Some 43 per cent said they were achieving positive outcomes from digital transformation investments, especially those using digital technology at all levels of operations, from supply chains and distribution networks to compliance activities and analytics.

However, in contrast to the digital transformation leaders, other organisations are finding digital transformation a challenge.

The report looked at what differentiated the leaders, and also the new risks these companies face including those associated with advancing technologies and the risk of disruption by competitors ahead of the digital curve.

The study found that almost three out of four of the business es classified as digital transformation leaders reported revenue increases, with the percentage dropping to 20 per cent or below for those reporting modest or negligible benefits from digital transformation.

Almost 40 per cent of respondents said their core business was at risk of digital disruption from other businesses further along the digitisation path or “quicker on the draw”.

And more than 80 per cent of companies said the biggest risk associated with digitisation was not embracing it.

Legacy systems, siloed operations and information systems, and budgetary constraints were cited as the top three challenges that organisations face in leveraging digital capabilities to improve operations.

Greg Hendrick, president of property & casualty at XL Catlin, said: “As re/insurers, it is imperative that we understand how the use of digital technologies is transforming the way our clients across all industries work and the risks they face.

“Studies like this will help us gain insights and look ahead so we can help our clients address these risks to achieve the full benefits of digital transformation throughout their entire operation.”

Alex Clemente, managing director of HBR-AS, said: “It’s somewhat logical that many organisations began their digital transformation at customer touchpoints, being driven by consumer demand.

“However, leading organisations know that back office functions, such as general operations, supply chain, and distribution, are equally fundamental to operationalising digital transformation.”

Click on Xl Catlin study in related media to read the study in full.

You must be registered or signed-in to post comment or to vote.

Published Jun 14, 2017 at 8:00 am (Updated Jun 13, 2017 at 7:27 pm)

Digital change creating leaders and laggards

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries