Core System Modernization as a Foundation for Growth and Innovation
"Core System Modernization ", an inspiring short video, focuses on core system modernization as a foundation for growth and innovation in insurance operations. It is an introduction to Deloitte's Core System Modernization approach, providing insights for insurers to redesign technology and business logic to align with its enterprise growth strategy built on a digital foundation. In this video, several insurance subject matter experts, Joanna, Sammie, Mark and Candy, will in-depth interpretation of the benefits of Core System Modernization, "4R" strategies as well as enabling collaboration for the success of the modernization:
- Introduction of Core System Modernization
Core system modernization is a strategic program to federate core business logic and data to promote flexibility, agility, and speed to market and support innovation and enterprise growth. Modernization addresses business needs through business and technology improvements and operational alignment. Implementing core modernization can increase operational efficiency through service digitization. Second, it can reduce technical debt and thus the risk & resources to maintain legacy systems. Insurance companies can also gain flexibility via cloud infrastructure, and re-usable services that accelerate technology delivery. More importantly, enable personalization, innovation & ecosystem integration – that contribute to customer acquisition & retention.
- Leveraging Four "Rs" strategies to achieve core system modernization the insurance sector
The vision of core system modernization is to transform a tightly-coupled code base and hardware into modularized cloud applications where traditional layers are converted into components that can be consumed only as needed. Four specific strategies have emerged—we call them the 4 “Rs” (Replatform, Remediate, Revitalize and Replace) — which can be combined to craft an approach tailored to your specific requirements. Ultimately, the vision is to change a system where many aspects of the code base and the hardware are tightly coupled to a system comprising a set of cloud applications, where logics and data are abstracted to a resource that can be consumed only when it is needed.
- Importance of collaboration and skillsets building to modernize core systems
To accelerate the core systems modernization, we are seeing more collaboration and integration across business, IT, and external ecosystem partners. In leading companies, multiple functions are often joined up to drive core system modernization solutions. Using an agile approach, they work together in squad/scrum teams to co-create, iterate and scale solutions that can truly meet the business needs and address their operational pain points. In addition, the skill sets and capabilities required will need to be expanded and uplifted as a result of the modernization. For example, the ability to collaborate and work in a cross-team, agile, and virtual work environment, pre and post core system implementation will be crucial. Using design-thinking skills to drive user-centric solutions will also be essential, alongside the additional technical skills required to address the increasing complexity of the system solutions, such as cloud infrastructure, advanced analytics and user-centric process.