Staying on the Right Track when the Transformation Road Changes

by Colleen Risk, February 28, 2017
Industry Trends
Global, North America

Abstract

Numerous transformation initiatives provide lackluster results, and many are outright failures. This report provides the “dos and don’ts” that will smooth the road to a successful transformation journey.

Celent has released a new report titled Staying on the Right Track when the Transformation Road Changes. The report was written by Colleen Risk, a Senior Analyst in Celent’s Insurance practice.

In the face of intensifying digital disruption and the need to remain competitive, organizations must embrace emerging technologies and innovate to drive growth through new business models, new and improved product offerings, and increased customer engagement — while reducing costs and gaining operational improvements.

Unable to develop and operate such capabilities cost-effectively in their legacy environments and hampered by outdated and sluggish processes that are associated with aging and overly complex systems, many insurers are on the road the transformation.

Five success factors are: understanding business-as-usual demands; being business-sponsored; having the right level of decision authority; avoiding complexity; and providing vendor incentives.

Among the significant reasons that large-scale IT transformation projects fail are inadequate change management, lack of governance, inexperienced project teams, insufficient resources, and lack of risk management.

A project health check can be done as a precaution to ensure a project is performing as expected, or when a project runs into trouble and needs attention. However, the cost of fixing an issue is much higher than preventing one.

“There are a number of recurrent themes that drive success or failure,” said Risk. “Using best practices, including a project health check, will smooth the road to a successful transformation.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

Planning and Governance for a Successful Transformation

3

The Roadmap to a Successful Journey

5

Avoiding the Potholes in the Road

7

Buying Insurance with a Project Health Check

9

Final Remarks

11

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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