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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:
DIGITAL BUSINESS LEADERS have strong digital performance and strong financial performance.
DIGITAL LEADERS have made progress in digital, but have not translated it into financial strength.
BUSINESS LEADERS have achieved strong financial performance without prioritizing digital.
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.
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1Accenture Digital Performance Index, https://www.accenture.com/us-en/insight-digital-performance
2Accenture assessed nine public companies and seven private companies.
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.
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:
Managing Director – Digital Health