Although companies are pouring trillions into digital transformation, a high percentage of these initiatives fail.
Of the $1.3 trillion that was spent on digital transformation in 2018, it is estimated that $900 billion was wasted, according to an analysis by global market intelligence firm IDC.
In a Jan. 12 webinar, sponsored by VisiQuate and hosted by Becker's Hospital Review, three VisiQuate experts discussed how to ensure digital transformation initiatives succeed and offered practical steps to meaningfully improve workflow and generate a return on investment.
The presenters were:
- Rich Waller, co-founder and chief experience officer, VisiQuate
- Sean Kirby, senior vice president of product marketing, VisiQuate
- Raymond Roberts, director of data science, VisiQuate
Here are five key takeaways from the webinar:
1. View digital transformation as a change management project. Digital transformation is not just about the technology being implemented, rather it is about investing in people and planning with those people, explained Mr. Roberts. By viewing the digital transformation journey as a change management project, teams should be able to better resolve conflicts, learn new things and abandon old ways of completing tasks. "Once you acknowledge this is a change management project, from there you are realizing that this is not going to be comfortable," Mr. Roberts said.
2. When evaluating options to build, buy or partner on a digital transformation solution, a hybrid model usually works best. A hybrid approach of partnering with a technology provider while also investing in in-house capabilities often is the best approach to digital transformation, Mr. Kirby said. This hybrid model allows an organization to build and configure a solution rapidly, while also maintaining flexibility and creating long-term value and differentiation with in-house capabilities, Mr. Kirby said. "Plugging into a partner ecosystem can be really often the best solution for flexibility, as initiatives change and project timelines move forward," he said.
3. Establishing a data-driven culture.The success of artificial intelligence and machine learning technologies is largely dependent on establishing a data-driven culture, and that starts with data readiness and availability, Mr. Waller said. It is imperative to have this data ready before moving to more complex AI and machine learning capabilities, he explained.
4. Use checkpoints to minimize risk of initiative failure. One way to minimize digital transformation failure is implementing go-no-go checkpoints, Mr. Waller said. "We like to put go-no-go checkpoints early and often," he said. "We recommend contractualizing those with your partners and team ... to ensure those overall metrics are met and challenged to move on to the next phase."
5. ROI on digital transformation initiatives can be significant. VisiQuate presented a case study of a client that used a hybrid partnership approach to achieve digital transformation and improvement in its revenue cycle department. In particular, the client wanted to improve success in denial prevention and obtain higher reimbursement. The client, in partnership with VisiQuate, set out to do this by smart segmentation and prioritizing accounts with the highest potential liquidity. After implementation, the client saw a net cash lift of $113.8 million and had $8.3 million in denial recoveries. The health system was also able to reduce its staff by 15 percent and improve overturn rates by about 19 percent, according to Mr. Waller.
To learn more about how VisiQuate is working to ensure success of digital transformation projects, listen to the full webinar here.