Skip to main content Skip to Footer

LATEST THINKING


Big digital talk,
little digital action

 

UNTAPPED DIGITAL POTENTIAL

New Accenture research reveals that the vast majority of US health insurers are not yet translating their digital investments into better financial performance and new business growth. Most are investing in digital technologies to create business efficiencies, and stopping there. Health insurers can achieve short-lived gains this way. But they cannot unlock new sources of value for sustained improvements in financial performance over time, which is critical to thrive amid massive healthcare industry change.

DOWNLOAD THE FULL ARTICLE [PDF]

Health insurers are not embedding digital across the value chain

Health insurers are not embedding digital across the value chain

DOWNLOAD CHART [PDF]

GETTING BY IS NOT GETTING AHEAD

Digital Business Leaders outperform Everyone Else in financial and digital performance

Digital Business Leaders outperform Everyone Else in financial and digital performance

DOWNLOAD CHART [PDF]

Accenture created the Digital Performance Index (DPI) to help companies better understand the interplay between digital and financial performance.1 The index categorizes companies into four distinct groups:

  1. DIGITAL BUSINESS LEADERS have strong digital performance and strong financial performance.

  2. DIGITAL LEADERS have made progress in digital, but have not translated it into financial strength.

  3. BUSINESS LEADERS have achieved strong financial performance without prioritizing digital.

  4. THE REST have survived in the past without building up digital capabilities.

Accenture assessed 16 leading US health plans as part of this cross-industry research initiative.2 Just 19 percent are Digital Business Leaders, 6 percent are Digital Leaders, and 19 percent are Business Leaders. A stunning 56 percent are The Rest—companies that have not achieved leadership in digital or financial performance.

Digital Business Leaders—none of which are digital native companies born digital in a digital industry—stand out from Everyone Else (Digital Leaders, Business Leaders and The Rest combined) in an important way. They have 19 percent better financial performance and 17 percent better digital performance. Rather than investing in digital for the core business alone, Digital Business Leaders harness digital capabilities to transform their business models while simultaneously breaking into new, innovative markets.

DOWNLOAD ARTICLE [PDF]

1Accenture Digital Performance Index, https://www.accenture.com/us-en/insight-digital-performance

2Accenture assessed nine public companies and seven private companies.

THE SECRET TO NEW GROWTH

Digital Business Leaders’ strong digital savvy relative to peers is paying off. Unlike Everyone Else, they have gained significant profitability associated with their digital investments. They even outperform Digital Leaders financially, largely thanks to a more targeted and systematic approach to executing their digital strategy. This is a departure from Digital Leaders’ tendency to invest in digital to preserve the core business without simultaneously expanding into new digitally contestable markets.

Digital Business Leaders’ digital acuity gives them staying power too. They are the only group of health insurers now positioned for consistent growth. According to Accenture analysis, while Digital Business Leaders have 8 percent higher three-year profitability, they have 44 percent better consistency of growth over five years compared to their peers.

Digital Business Leaders have the best digital performance across the entire value chain

image

DOWNLOAD CHART [PDF]

Digital Business Leaders have higher profitability and consistency of growth from digital

image

DOWNLOAD CHART [PDF]

Stay In The Know

Receive e-mails from Accenture featuring new content that matches your interests.

Visit the subscription center to make your selections and subscribe to New from Accenture.



TRANSFORM TALK INTO ACTION

Health insurers that want to improve digital and financial performance should model the behaviors of Digital Business Leaders from within and outside the industry. There several key shifts to make:


AUTHORS

Brian Kalis

Brian Kalis
Managing Director – Digital Health

LinkedIn LinkedIn Mail to Brian Kalis. This opens a new window.

VIEW PROFILE

Nikhi Kasibhotla

Nikhi Kasibhotla
Senior Business Strategy Consultant

LinkedIn Mail to Nikhi Kasibhotla. This opens a new window.


SUGGESTED CONTENT