8March 2016Defining DigitalizationBy Jeff Palm, CIO, Allianz Life Insurance Company of North AmericaOne of the key challenges facing CIO's today is the notion of Digitalization. It dominates the headlines, and is becoming increasingly important in all aspects of an organization, from the boardroom on down. As basic as it sounds, one of the fundamental challenges I face at times, is that it's difficult to really define what Digitalization is. Perhaps more accurately, it's difficult to define what Digitalization ISN'T.Think for a moment about your list of corporate priorities, look at your list of initiatives for the calendar year, and consider your planned spending. In some way, shape, or form, everything that faces us is somehow about Digitalization. So, the questions become: How do you think about Digitalization, and get an organization to share in, and mobilize around a common view of this idea?I suggest that organizations can, and should, think about Digitalization using two distinct lenses ­ each requiring a different mindset.First ­ Digital Improvement of the Existing LandscapeMuch of the environment we now work in originally spawned from a primarily "non-digital" beginning. Digitalization in this environment takes many forms, usually targeting gains in efficiency, and creating step-wise, incremental change. We all have countless projects in these spaces, and there is often substantial benefit associated with investing here. Hallmarks of these initiatives generally include:· Implementation of automation· Digitalization of data· Elimination of paper· Reduction of manual processes and human touchpointsThese efforts generally constitute a large portion of the corporate agenda. They display solid benefits, a good CBA, and promise gains associated with simplification or streamlining of existing business processes. They are usually centered on the introduction of one or more new technology capabilities. Most organizations could stay quite busy tackling just these challenges and the need to keep developing core competencies in these areas is unlikely to decrease any time soon.However, improving the existing landscape is only part of the equation. There is a second opportunity that exists ­ one that requires more in terms of strategy, thought leadership, and willingness to question (or even disregard) the status quo.Second ­ Re-imagining the Business from a Fully Digital PerspectiveComparatively speaking, this type of effort is much more difficult than the first, and requires a different mindset. As opposed to "editing" an existing process or capability to IN MY OPINIONJeff Palm
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