Data – the key to a profitable and efficient operation
Time for another hot button – Big Data.
We’ve all heard it, but we don’t really understand it. At Apex our approach is more straight-forward. We all know that data provides opportunities for organisations that are able to exploit them, however rarely do we see the simple things done well. The systems held by many organisations carry the data required for almost all customer service activity from the earliest stages of the business relationship. The degree to which, however, data is re-keyed, re-input, re-collected, re-agreed across the value chain, is remarkable. The best organisations have started to get to grips with this internally, but still fail to recognise the opportunities to be gained in the use of the data in managing the interactions with others outside their organisations.
Questions you need to ask
What is the data model for your organisation? Do you have clarity about the capture, exploitation and reuse of that data across the life-cycle of a customer? Do you understand the purpose of the data that you are capturing and the extent to which it can be used?
A recent project in the commercial insurance sector revealed a staggering 60% cost improvement opportunity to be realised simply from the single capture and subsequent re-use of insurance contract data across the lifecycle of the policy. Given the fact that this data moved between organisations, and then within each organisation from the underwriting, to the accounting, the finance and then to the treasury functions increased the opportunity. This opportunity was reflected in each organisation within the value chain.
Standardisation of data formats across the sector (ACORD etc) present opportunities, but how are these to be realised? How could your organisation start to use and to profit from these developments? What would be involved, and how complex and expensive is it?
Apex has been involved in a number of initiatives at market level and within organisations to understand the most efficient way of generating, sending / receiving, capturing, utilising and then reusing data to support the insurance process, whilst minimising the cost and effort associated with fulfilling customer needs. The implications for individual organisations can be substantial. Getting to grips with the operational implications of data capture and reuse will transform the industry and deliver real competitive advantages to those organisations that are ready.
If you would like a conversation about how you understand and make the most of the opportunities that this presents, then we’d be delighted to talk to you.