Dan Simpson understands business transformation - and the critical role the customer plays in it. Before joining Trustmark, Dan led the Enterprise Technology Group at Physicians Mutual in Omaha, Neb., where he was the driving force behind the company’s business transformation strategy and the Greenfield program, which implemented new customer-centric business processes, service-oriented architecture (SOA), a new enterprise data warehouse, and several key business applications. For these efforts, Dan was recognized as Technology Chief of the Year in 2010 by the Applied Information Management Institute.
Q: What are the business challenges and issues that typically motivate the need for business and IT transformation?
Dan Simpson: Common challenges facing business today include changes in market conditions, consumer behavior, and the regulatory environment as well as increasing competition and complexity. The inability to adapt to these changes drives the need to put new business process and technology foundations in place.
Q: How have you approached business process redesign?
Dan Simpson: The most effective approach is to focus on business process first before diving into systems. Depending on specific situations, I’ve seen great value in taking an approach where processes redesign starts and ends with the customer. This customer-driven approach helps drive customer-friendly decisions and efficiencies.
Q: What is a customer-driven application, and why is that concept important to transformation outcomes?
Recently my colleague Sharyn Leaver and I had the opportunity to meet with Robert Mead and Michael Mathias, the CMO and CIO, respectively, at Aetna. They will be speaking at our upcoming CIO-CMO Forum on September 22, 2011, in Boston, so this serves as a bit of a preview to what should be an eye-opening presentation. Enjoy!
David Cooperstein: What external changes drove you to build a deeper partnership with your technology peers?
Robert Mead, senior vice president, Aetna marketing, product and communications: The US healthcare system is fragmented and well behind the curve in terms of price transparency and consumer-friendly products and services. The deep partnership between technology and marketing at Aetna lets us put leading-edge technologies and powerful tools and applications directly into the hands of people so that they can be confident consumers and informed patients. Our close collaboration with our colleagues in technology is driven by a few external factors:
The increasing cost of care and the corresponding changes in employer-based insurance — consumers are being asked to take more ownership of their health and wellness and their healthcare spending.
The introduction and rapid adoption of technology empowers consumers (and patients) to engage in the healthcare system where they are in life and in the way they want to be connected.
Healthcare reform aims to bring millions of previously uninsured Americans into the marketplace as consumers.
Have you ever thought seriously about the future of business processes? If not, it’s time to. With trends coming at us fast and furious — business transformation, the age of the customer, mobility, cloud, social, process outsourcing — processes of the future will look very different from how we work today.
Forrester is in the process (pardon the pun) of looking at business processes in 2020. We’ve interviewed 10 major thought leaders at large global organizations and a number of systems integrators and vendors in the BPM space. Wow, have we learned a lot from these deep thinkers! Many of the trends they identified are already being actively worked on in their companies — so these are not just pipe dreams — and include:
A major strategic alignment between business process transformation and customer experience
Very little concern about technology issues — because they believe the technology will work well (and this is not what keeps them up at night even now)
A major focus on standardizing processes across the globe so that work can easily flow to the lowest-cost labor at any given moment
The belief that processes will run in the cloud (private or public) and that businesses will consume processes-as-a-platform
A strong conviction that IT will largely vanish into the business
The need for access to global talent pools driving some of the need for business process transformation
The expectation that being dynamic and turning on a dime will be critically important