ONTARIO, Calif.–Origence has released a new white paper that examines how digital transformation goes beyond just the technology and which profiles three credit unions that have successfully managed a digital transformation.
The paper points to a Harvard Business Review article that reported $1.3 trillion was spent on digital transformation in 2018, and of that “about $900 billion went to waste. No wonder the publication’s survey also found that digital transformation was the top risk concern for directors, CEOs and senior executives.”
Why do so many digital transformations fail? the paper asks.
“Because digital technologies provide only the potential to increase efficiencies and improve the customer experience,” noted Origence. “However, as the HBR article pointed out, if an organization lacks the right structure and culture, digital transformation will not only fail, it will magnify those flaws.”
According to the Origence paper, the success of a credit union’s depends upon the ability to do business with members using the channel they prefer.
“With each year, those preferred channels are digital. That means when it comes to credit union digital transformation, failure is not an option,” Origence stated, adding, “Changing an organization’s structure is no easy task. In fact, it’s more difficult than converting to a new technology system or expanding into a new market. That’s because it’s not the tools or members that are changing … it’s ourselves.”
A Look at Culture
The paper suggests the kind of culture change that must occur to facilitate a successful digital transformation requires rethinking job responsibilities, workflow, team building, project management, and in some cases, an attitude adjustment by staff and executive management.
“There is no magic formula or easily duplicated model to follow. Each credit union is different and must build a new culture that is as unique as its field of membership,” Origence stated. “However, there is plenty to learn from other credit unions that have faced the same challenge and created cultural and organizational shifts that have enabled successful digital transformations.”
In the paper Origence said it features examples from three credit unions that have successfully executed digital transformation and are already experiencing growth as a result. The three CUs represent different asset classes, serve different fields of membership and are focused on different mixes of technology to create customized member experiences that meet the needs of their unique markets, Origence said.
‘What They Didn’t Do’
“What they didn’t do was let technology drive the future of their cooperatives,” Origence said. “Instead, they used an opposite approach, first envisioning the credit union’s future and then making sure the people and processes fully supported that vision. That vision then drove which technology was used to transform the credit union.”
For info, go here https://pages.origence.com/origence-digital-transformation-whitepaper