Welcome to the web site Best Blog Hồng, At this time best.bloghong.com will introduce you to the article Legacy systems don’t have to inhibit innovation
, Let’s be taught extra about it with us. Legacy techniques do not need to inhibit innovation
Different components of this sequence:
- Insurance coverage hasn’t modified much-but all the pieces round it has
- Core transformation is non-negotiable if insurers wish to renew
- $3 Billion value of classes realized from dwelling enchancment shops
- Digital alternatives that insurances should get proper
- Legacy techniques do not need to inhibit innovation
- The smart pivot: 4 levels to develop into the insurance coverage of the longer term
New applied sciences resembling cloud computing, information lakes and robotic course of automation can allow insurances to innovate with out being hamstrung by legacy techniques.
When you’re simply tuning in to this sequence, here is a short recap of what we have mentioned in contrast far: Insurance coverage is ripe for disruption, and insurances should steadiness two measures with a purpose to reply. They should get the Sensible Fundamentals proper, and they should innovate with Slicing New Floor initiatives. Each are essential, as Sensible Fundamentals allows core transformation, which in flip frees up funding capital and allows the agility wanted to innovation.
It is about this level within the dialog when insurance coverage leaders begin trying uneasy. And that is when the elephant within the room begins knocking over the furnishings. Legacy. Legacy considering, legacy processes and, most positively, legacy techniques.
It is a respectable concern. Power underinvestment in IT and progress by means of acquisitions has left many insurances dealing with excessive technical debt—the amount of cash it could take to get legacy techniques to a state match for as we speak’s enterprise surroundings.
Digital decoupling for an clever enterprise
Insurers can look to new digital architectures to assist tackle the problems of legacy. For instance, cloud companies, information lakes, microservices, open APIs and robotic course of automation can’t solely cut back dependency on—and the price of sustaining—legacy techniques, but in addition assist them execute enterprise technique extra shortly.
Accenture calls this digital decoupling. Digital decoupling is a solution to launch a company from its dependency on legacy techniques. In lots of instances, we are able to rebuild the capabilities wanted for the again workplace within the cloud, with out the convolution of the legacy system. Robots and cognitive processes can assist determine the place the cloud-based system must plug into the legacy system. Digital decoupling can ship financial savings to launch capital for investments. It additionally contributes to the secure basis required to underpin agility and assist innovation. Let’s take a look at a number of ways in which digital decoupling can assist insurances.
Case research 1: Purchase a automobile…when you’re within the automobile
One world financial institution was mired in legacy techniques however needed to develop its automobile financing market. Accenture helped it launch the potential to have clients purchase a automobile after they’re within the automobile. Consider it: you are immersed within the new-car odor, recent off a check drive. With the push of a button and a digital signature you should buy the automobile, together with the financing, insurance coverage and prolonged guarantee. Speak about delivering a knockout buyer expertise for the time being of reality.
Accenture made it occur in simply three quarters. We used cloud-based digital instruments to rebuild the financial institution’s again workplace, enabling virtually completely straight-through processing. Subsequent, the cloud-based again workplace was built-in into important enterprise techniques, however in any other case bypassed the legacy system. The cloud-based workplace is 50 p.c cheaper to run, creating a right away value benefit over the competitors. And on this specific market, the place the economic system declined by 8 p.c over the previous two years, the financial institution’s automobile gross sales are up 30 p.c.
Case research 2: Robots allow Sunday mortgages
This specific financial institution had a mortgage workplace with typical workplace hours: Monday by means of Friday, 9 am to five pm. However when do folks purchase homes—and due to this fact, when do they want mortgages? The weekend. However on this area, weekend mortgages weren’t attainable.
Accenture labored with this banking consumer to develop an AI-backed mortgage functionality. Robots labored beside folks to discover ways to make mortgage selections. When the folks go dwelling for the day, the robots hold working. At this time, if you would like a mortgage on a Sunday, you may get one—and extra necessary, you should buy your dream dwelling.
Accenture tapped into new applied sciences to bypass this financial institution’s legacy techniques to ship the AI-backed mortgage functionality in simply 20 weeks.
What’s notable about these digital decoupling efforts is that they are usually self-funded, particularly when information lakes are leveraged. For instance, utilizing information lakes and different applied sciences, Accenture was capable of create a wholly new financial institution in about 6 months—and finally, because the enterprise shifted to the information lake from the mainframe, the mission grew to become self-funding. Utilizing information lakes, specifically, to lead to a brand new structure that’s extra environment friendly and cheaper to run than the legacy system.
With digital decoupling, insurances can renew with out being shackled by their legacy techniques. Consider it as two-speed IT. You’ll be able to transfer quick with innovation by decoupling the again finish. In the meantime, you may have time to maneuver slowly later as you begin shutting down components of the legacy system—a course of that releases much more trapped worth.
Many due to my colleague Edwin Vander Ouderaa for his work on this space. To debate how digital decoupling can assist you renewal with out being hindered by legacy, please contact me.