Critical Role of No-Code Development in the New Normal
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At the end of 2019, economists and investors predicted that 2020 would be a year of uncertainty. They pointed to the political climate, trade wars and outstanding debt as three risk factors for businesses in 2020. Within weeks of the start of 2020, uncertainty took on an entirely different meaning.
Today, businesses are faced with what is known as Knightian Uncertainty — a total lack of quantifiable knowledge about a possible occurrence. In other words, companies do not have sufficient data upon which to base decisions. How do organizations move forward with that level of uncertainty?
According to some researchers, the answer is flexibility. Companies may need to use multiple supply chains or find different avenues for delivery of products or services. Existing business models will give way to solutions that provide for greater flexibility. Unfortunately, many insurers lack the infrastructure that allows for that flexibility.
Slow to Transform
New research found that a minority of businesses feel they have the digital and leadership capabilities for a successful digital transformation. Another 39% felt their businesses had digital capabilities, but only 35% thought they had the leadership. Compare that to the 56% of insurance companies that feel they lack the digital and leadership skills for a successful transformation.
Digital transformation doesn’t happen all at once. It is a continuum because it integrates technology into all areas of a business. Through integration, enterprises change how they operate and deliver value to customers. Beyond the technology, a transformation also changes the corporate culture that focuses on the customer, creates an agile environment, and builds a robust organizational structure. All of these elements are crucial to business survival.
Unfortunately, many insurers feel less equipped to handle a digital transformation now than in 2012. Almost half of the businesses thought they could handle a digital transformation in 2012 compared to only 35% today. Some progress has been made in creating a digital customer experience; however, the same cannot be said for the businesses themselves. Only 38% say their employees can collaborate digitally. Overall, the insurance industry lags behind telecom, automotive and banking in digital transformation.
The slow progress towards a digital transformation within the insurance industry comes from a mix of legacy systems and inefficient paper-driven processes. Many insurers still rely on complex legacy IT systems that do not interface with newer technology. Often, these systems operate as self-contained applications without the ability to share data. Over half of the insurers agreed that the complexity of their systems was the primary barrier to a customer-centered process.
The inability to share data contributed to the paper-based processes. If the computer systems could not share data, then the employees had to access multiple systems to acquire the needed data. As a result, many processes become paper-heavy as a way to keep the information in one place as it moved through the company. That construct makes customer service challenging in the digital world.
Poor Customer Experiences
J.D. Power’s 2019 study found that some progress was made in improving the customer’s experience, primarily through the use of mobile apps; however, the overall customer experience was still poor. Brands have to deliver exceptional digital experiences across all channels if they want to thrive, and insurers still have a long way to go. Here are some telling statistics on customer expectations.
- 70% of customers want a seamless handoff based on earlier interactions
- 84% of customers want to be treated as a person, not a number
- 70% of customers expect companies to understand how they use their products or services
- 59% of customers want personalized engagement based on past behaviors
- 89% of customers become frustrated when they have to repeat themselves to multiple agents
- 61% of consumers will not return to a mobile site if they have trouble accessing it
- 40% of consumers will visit a competitor’s website if they can’t access a company’s mobile site
- 88% of consumers will not return if they have a bad experience on a website.
Consumers expect a hassle-free experience and have little patience for technology that does not perform. Providing an exceptional experience does have its rewards. Organizations with strong omnichannel experiences retain 89% of their customers. Without an omnichannel presence, the retention rate is 33%.
When executives hear ” IT will have to develop that,” their hearts sink. They see dollar signs and delayed delivery, but they have also grown to accept it as a standard response. It doesn’t have to be. Using no-code development solutions, organizations can create sophisticated applications without writing a line of code.
What is No-Code
No-code is a development platform that uses a visual environment to create applications. The process may involve drop-and-drag methods, or it may mean adding components to the platform. When deployed across an enterprise, the solution enables subject-matter experts to create solutions to meet business needs because coding knowledge is not necessary.
Why Use No-Code
No code helps an organization meet its business objectives without placing more strain on an IT department. Most companies are experiencing a shortage of qualified IT personnel, which makes it challenging to deliver new applications quickly. With no-code tools, the ability to create applications is moved to the individuals who understand the business processes behind the app. This re-allocation of resources takes the strain off of IT and provides business units with the ability to create exactly what they want.
Without an IT roadblock, solutions can be delivered in a timely fashion at a lower cost. It also allows for faster updates to applications and a lower ongoing maintenance cost. It makes for a more agile organization.
How to Find the Right Solution
But, be careful. Not all no-code platforms are created equal. The best solution is one that knows your business. Can they demonstrate use cases that show precisely how a feature is implemented? Here are some questions to ask:
- Does the platform support all the industry’s security requirements such as SOC2?
- Can the solution interface into existing systems?
- Is the tool easy to use?
- Will the vendor be there when you need support?
These are just a few of the questions you need answered before you commit to a no-code solution.
Into the Future
What will the insurance industry look like in six months? A year? Here are two possible scenarios.
Company A has used the time to move forward on its digital transformation. It has worked to leverage its legacy systems so that data can be shared. It’s alleviated the strain on IT while delivering a more responsive customer experience through no-code solutions. When new information on the virus results in changes to the insurance industry, no-code users update their applications to add a second electronic signature to a policy agreement, for example. Within 24 hours, the company is in full compliance with the new guidelines. It sends an email to all customers affected by the change and directs them to the updated form. The quick response builds trust and better customer experiences.
Company B was not as aggressive in its digital transformation and was less accepting of non-traditional solutions. As a result, implementing that second signature requirement requires more resources, more time to deliver and poor customer experiences. First, the policy agreement has to be modified, which means finding the document file and making modifications. Since the legacy systems are less integrated, a blanket email is sent to customers explaining who needs to submit an updated form. The email directs those customers to reply to the email so an updated agreement can be sent to them. When updated, the customer is asked to return the signed form. The process takes weeks, maybe months, depending on how quickly the customer responds.
For insurers, the question is which company will you be? If you want to be an A company, talk to us about helping your company transform to provide a better customer experience through increased engagement, while increasing revenue and cutting costs.