Paper Example on Digital Transformation Strategy

Introduction

Digital transformation entails the incorporation of digital technology in daily business activities over a given period. The integration aims to change business operations and processes through the opportunities that digital technologies present. Digitization enables an organization to improve its product quality and service delivery. Constant evolution and innovations in digital technology continue to expand the scope of the business (Matt, Hess, & Benlian, 2015). Currently, many companies are digitalizing their operations to stay relevant and profitable. Therefore, for successful integration of digital technology, our company requires an effective strategic approach.

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Digitization as a force has had a disruptive impact on some industries, such as media, music, travel, and retail. This wave has now spread to the healthcare and insurance sectors. As a company, failure to embrace digital technology will make us loose potential clients. As such, the firm will require money and vast resources to implement digital technology (Agarwal, Gao, DesRoches, & Jha, 2010). However, the process is worth the cost since it will reinvent our business model to facilitate improved service delivery and operations management. As a health insurance company, digitization is a viable option. It will enable the firm to remain relevant and to improve performance through cost-effective operations.

Although some of our competitors have already digitally transformed, we need to recognize that digitization is a long-term activity. Thus, it may take time for the company to modify its business culture and adopt a digitized model. Therefore, the transformation process should occur in phases. As a company, our driving force should not be the fear that our competitors are ahead of us. Instead, our priority is ensuring a smooth transition in alignment with the company's vision and objectives (Matt et al., 2015). I believe that we can achieve a successful digital leap if digitization begins internally.

Digitization of internal processes will enable the management to assess how well the company can adapt to the new system. Adoption of digitally-enhanced procedures will accelerate service delivery. However, as an enterprise, we cannot improve the customer experience without knowledge of how effectively the staff utilizes the technology (Agarwal et al., 2010). Therefore, the company should begin with the digitization of our insurance policies, records, and legal documents to assess our adaptability. After that, it should change the client recording system. Digitizing the internal processes shall equip the workforce with knowledge and skills to challenge digitized connections to the outside world.

Data is a significant element of a company's operations. Therefore, succeeding in digitization of internal processes such as data acquisition, analysis, safe storage, and retrieval is essential. Success in inner digital transformation will create confidence among the stakeholders. This portrays the company's readiness to venture into external digitized connections (Agarwal et al., 2010). Internal digitization will serve as a build up to more processing and task handling through the use of digital tools. The strategy allows the company to realign its business culture properly.

Conclusion

Digitization is a vital exercise in the health sector. It is crucial for the company to initiate the transformation process. The firm needs to keep up with the trends in the health insurance industry. However, adoption of digital technology requires careful consideration. Lack of resource planning affects the business' operations. Digital transformation is a process with a broad scope; thus it may take time to implement. The company's staffs need to understand the depth of digital technology for its successful integration. Thus, my preferred strategy is initiating internal digitization first before establishing external processes.

References

Agarwal, R., Gao, G., DesRoches, C., & Jha, A. K. (2010). Research commentary-The digital transformation of healthcare: Current status and the road ahead. Information Systems Research, 21(4), 796-809.

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343.