Other parts of this series:
In this set of posts we’ve looked at the explosion of big data and how all that information—properly analyzed—can lead to opportunities for an insurance CFO. Specifically, CFOs can make better, data-driven decisions. They can provide strategic guidance to the business. They can leverage insights and information to boost the business’s efficiency, and even use it to better meet compliance and regulatory requirements.
So, big data is well worth tapping into for an insurance CFO.
The remaining question is, how to tap in?
Our paper, Exploring Next Generation Financial Services: The Big Data Revolution, suggests that insurers and financial firms can make more appropriate use of big data and its insights by becoming a data-driven enterprise.
If your insurance business hasn’t yet started this journey, the transformation might be easier said than done. But encountering big data is inevitable. Wherever you are on a transformation journey to a data-driven enterprise, these three steps can help get you there:
- Step 1: Establish a data operating model that puts data at the center of decision-making processes. A number of other roles around data management, such as the data quality steward, would be part of this new model.
- Step 2: Build a leading edge, big data IT architecture, ideally one based on different data layers that guarantee flexibility, scalability and data exploration.
- Step 3: Change the business culture to build an innovative mindset that values and acts upon insights from data.
For insurers, our experience indicates high-performance CFO organizations can benefit from significant and tangible savings and potential intangible up-side. A new operating model to manage data (based on the alignment of data processes, high standards in data quality, new technologies, harmonized reporting and new analytics capabilities) can help sustain profitability and growth.
Whether we currently use data or not, it is getting generated all around us. Insurers can find ways to take advantage of this plentiful resource to drive the business forward. Building a data-driven enterprise, with the CFO positioned as a strategic resource, is one powerful solution.