Advertisment

Are your digital efforts paying off?

Nearly $400bn per year could be spent on digital efforts that return below-expectation ROI and delay the digital transformation, says Genpact research

author-image
Soma Tah
New Update
ID

NEW YORK, USA: Digital technologies are changing industry dynamics and how enterprises run in unprecedented ways.

Advertisment

However, this surge in digital transformation initiatives is often challenged in reaching digital's full, truly revolutionary potential because of pre-existing legacy processes and technologies, and a myopic view of digital technologies solely focused on the front end.

Some on-the-ground challenges:

A lack of an aligned digital strategy for business operations

Advertisment
  • Business operations, middle and back office, receive little attention when organizations develop their digital strategies, which generates a significant risk of disconnect across the front-to-back office processes that have an impact on client service, compliance, and cost to deliver products and services.

Difficulty integrating legacy systems; managing change

  • Change management is as important as digital technology savviness in large organizations, where legacy processes and systems create barriers.
  • Poor communication between IT and business teams when implementing with digital transformation initiatives is an additional obstacle.

Advertisment

Not having the right tools and talent

  • These technology deployment challenges also affect analytics initiatives, which struggle with a lack of business intelligence tools, access to talent, as well as legacy processes and systems that do not capture the required data.

Estimates from the Genpact Research Institute also indicate that if the right digital transformation strategies are not adopted, nearly $400 billion per year could be spent on digital efforts that return below-expectation return on investment (ROI) and delay respective companies’ digital transformation.

Advertisment

Genpact introduces its Lean Digital approach that enables large companies to rearchitect their middle and back office operations and achieve measurable impact such as growth, cost efficiency, and business agility.

“Lean Digital ushers in a new era in how our clients are approaching digital transformation – a shift that has driven adoption of these methods in many of our banking, insurance, manufacturing, life sciences, and consumer product clients, and that has driven our investments including the creation of an innovation lab in Silicon Valley to prototype and experiment with them,” said Tiger Tyagarajan, Genpact president and CEO.

Lean Digital harnesses three complementary domains: digital process-centric technologies, design thinking methods focused on the end customer, and Lean principles that focus on agility.

It leverages business transformation methods like Genpact’s patented Smart Enterprise Processes (SEP) framework, Systems of Engagement solutions and related digital integration services, as well as Data-to-Action analytics that, combined, create intelligent operations able to sense, act effectively and efficiently, and learn from their actions.

digital