How Digital Ecosystems Create Value
Digital Ecosystems are growing in popularity, but what is a digital ecosystem?
In simple terms, Digital Ecosystems are “connected sets of services in a single integrated experience,” according to Insurance Thought Leadership. These groups of interconnected information technology resources function as a unit with one key element in common: interoperability.
The goal of these Digital Platforms is to allow Insurers to partner with Insurtechs to provide better services for their clients. The result is that insurers no longer have to struggle to find services that fit their client’s needs. They can easily link with ecosystems that provide a variety of solutions and choose the right fit for individual clients.
What are the Benefits of a Digital Ecosystem?
Integrating Digital Ecosystems allows companies to leverage aspects of many technologies to meet their specific business needs.
This is why being part of a Digital Ecosystem means the possibility to connect with other service providers. The integration of business-to-business (B2B) practices within an ecosystem allows any type of organization to:
- Control their technologies (new or old).
- Build automated processes.
- And consistently grow their business.
In conclusion, these Ecosystems help companies build trusted connections, improve business outcomes, drive change. and collect more data.
Types of Digital Ecosystems
There are three main types of digital ecosystems:
- Digitizer ecosystems focus on digitizing an existing product with the help of business partners. These ecosystems can add new functionality to systems and create digital service revenue. This ecosystem usually incorporates 20 to 100 existing partners across five industries. They are best suited for businesses with strong product capabilities, limited digital abilities, and a primarily internal focus.
- Platform ecosystems are more advanced systems focused on flawlessly connecting users and smart devices on a platform, while simultaneously guaranteeing high service levels and limited obstacles. This ecosystem works best with companies that have solid digital capabilities and a strong focus on external expertise.
- Super platform ecosystems are the most complex type of digital ecosystem. They focus on integrating several platforms into one integrated service, while also capturing user data from the integrated platform. This type of ecosystem is best suited to companies that possess advanced digital abilities and an established platform from the start, as well as a willingness to work with external partners. As a result, this ecosystem is preferred by well-established tech companies.
How do Digital Ecosystems Work?
To create a Digital Ecosystem, establishing a strong map is key. This Digital Ecosystem Map is a visual diagram of all the digital tools and platforms used within the organization. The tools for managing an ecosystem can fall into the following categories:
- Project management tools, software development tools, task management software, and issue tracking systems.
- Research applications, including data storage and visualization, resource libraries, and archives.
- Engagement tools, like email marketing, donor management tools, and customer relationship management (CRM) software.
- Collaboration tools, including email, file sharing, instant messaging, and video conferencing.
- Public platforms, such as websites, mobile apps, and social media channels.
- Knowledge management platforms, like intranets and wikis.
So, the first step is to illustrate the processes in detail on how data is transferred between parts of the ecosystem. Here, it is important to detail whether or not the process is automated or manual.
To be effective, this mapping should also document which systems are not currently connected or able to speak and transfer data between each company involved.
How to Drive Value by Using Digital Ecosystems
Now that we know what Digital Ecosystems are and how to use them, let us look at the benefits of implementing them into your business.
Cleo Platform is an integrated cloud-based ecosystem that brings together end-to-end integration visibility. In a recent study, the company presented the three key areas that Digital Ecosystems helps to drive value into different organizations:
- New Sources of Revenue: Using integrated technologies allows organizations to transfer data throughout their organization. This data allows for the development of new products and services.
- Improved Processes = Lower Costs: Improved workflow and integration make for better relationships with partners and clients, reduced costs because of automation, and greater organizational efficiency.
- Faster Adoption of New Technology: Cloud solutions and SaaS technology are easier than ever to find and integrate into your organization. There is no longer a need to work with outdated legacy software that is difficult to learn and has a hard time keeping up.
The Key to Survival
In a growing and more diverse market than ever before, the only way to keep up with changing technology is through a Digital Ecosystem.
The speed at which new technologies are emerging makes it impossible to plan for every change in the insurance industry. Digital Ecosystems allow organizations to keep up with these changes and cater to the ever-changing needs of clients.
Niche markets are growing, and the unified digital ecosystem platform makes it easier than ever to optimize solutions for each client.
The key to survival in this new market is the ability to evolve with new technologies and adapt to individual client needs.
Where to Start
Digital Ecosystems are growing in the auto, health, and homeowner’s insurance sectors and in the construction industry. These ecosystems allow insurers to analyze data and resolve a claim in hours as compared to the once months-long process.
The best place to start is within your organization. Look at the processes you follow and think about how a Digital Ecosystem will streamline them.
For example, AXA XL recently launched its Construction Ecosystem to link innovative construction technologies with data for their clients. The ecosystem allows clients to use integrated technologies to solve business problems and manage risks on projects and throughout their organizations.
You can learn more about the role SmartCompliance plays in AXA XL’s Construction Ecosystem here and if you have any questions, please contact us here.
