FANTASTIC report from Oliver Wyman outlining their latest thinking on how to harness the potential of digital innovations. An excellent read.
I’ve highlighted 3 of their 10 trends that are most immediately relevant to me. But I highly recommend digging into this entire report. Absolutely fascinating stuff.
Trend 1: Move at clock speed: companies need to behave like digital disruptors
Moving at clock speed requires constant iteration to engineer processes that are inherently superior. Retooling for high clock speed means setting up agile, entrepreneurial pods that move from fast to instant and reject complexity for simplicity.
Daily life must take place in “beta” mode. Instead of the traditional sequence of design-build-run, these processes should run in parallel.
A high-clock-speed company will put out a minimum viable product as soon as possible—and then redesign it repeatedly to generate a stream of improved versions. This constant iteration means that work should be divided into projects that last no more than a few months.
Trend 7: Don’t Just Digitize, Humanize: Companies’ digital futures will depend on emotional bonds as much as functional superiority
The bond between consumer and brand drives preference and loyalty. Brands with strong emotional engagement enjoy 50% higher customer value. If people don’t have that kind of connection with your business, they’ll drop you as quickly as they dropped their travel agent, bookstore, or their yellow cab.
Technology’s toolkit for emotional connection is growing. Soon people will be perpetually and seamlessly connected to the network, through their clothes, their biometric data, their presence and preferences will be recognized everywhere. Hunching over screens will give way to human dialogue-based interactions such as Alexa.
Companies will need to adopt a new mindset, one that focuses as much on the emotional as the functional. They will need to understand four fundamental human needs that technology is destined to deliver and build customer experiences around them: understand me, take care of me, let me contribute, and help me belong.
Long-term, technology’s promise isn’t efficiency, it’s actually intimacy. Once that is achieved, today’s functional advantage will be accompanied, and eclipsed, by tomorrow’s emotional bonds.
All companies will be forced to profoundly rethink how they can compete in this next-generation, more-human digital world, which is unclaimed territory.
Trend 9: Learn from Online Retailers: Personalized recommendation engines are coming to healthcare
Consumers have shifted from worrying about sharing personal financial information when shopping to embracing online retailers’ recommendations. That is because the best online retailers empower shoppers with in-depth product information, peer opinions and they know what a consumer is looking for before the person asks for it.
Now, healthcare companies are experimenting with digital capabilities to see if they can encourage a similar level of influence in people’s lives.
If, like online retailers, healthcare companies manage to develop digital platforms that can influence people’s choices, they might achieve the holy grail of healthcare: behavior change.
Empowering people to monitor chronic care conditions like diabetes could significantly cut U.S. healthcare spending, since such expenses account for 85% of it. Companies like Proteus are using digital capabilities to develop highly personalized insights into an individual’s behavior. It’s both high-tech and high-touch.
If the healthcare industry can develop useful and proactive tools, and if it can engender the kind of consumer interest that retailers enjoy today, then not only will improvements in individuals’ well-being be attained; the healthcare landscape as a whole will also be profoundly changed.