Competitive Simulation Uncovers Crucial Blind Spot

Proactive’s War Game offering increases the probability of success in the face of market and competitive uncertainties, because your team has already considered them and is better prepared to act.

Case in Point: A client in the nutrition space faced a significant decision on non-GMO food – should they make a significant investment in marketing, reformulation, and modifying production equipment, or “wait and see”?

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Technology Disrupts and Innovates the Insurance Market

There were several valuable presentations on day one of the Society of Insurance Research (SIR) conference in Scottsdale, Arizona. Keynote speaker Bill Harnett of Harnett Advisors discussed how every business is now subject to technology disruptions, Moore’s Law and the exponential change it brings.

Bill asserted that “every industry is becoming a tech company,” and over time he will be right. Currently, he explains, there are three ways in which most insurance companies manage risk:

1) Eliminate it
2) Transfer it
3) Insure it

What are technology disruptions?
With technology disruptions, such as driverless cars, there will eventually be less risk to insure, and this wouldn’t just be limited to cars. Driverless buses and trucks are in development. This is projected to result in fewer accidents and less deaths, and services such as telematics may become obsolete as vehicle sensors make autonomous vehicles (AV) driving safer and more efficient. AV will free up 50-minutes a day to drivers, parking garages and parking space requirements will be massively reduced, and vehicle crashes are expected to fall by 90%. Think about the impact that has on companies that insure these things.

While some experts estimate that it will be 2050 before AV will be the primary mode of transportation, Bill believes that by 2020 you will start to see more autonomous vehicles on the road as companies like Ford have committed to producing a series of autonomous cars by then. Even Uber has plans to ultimately have no drivers.

Technology such as 3D printing will also impact the insurance market. There is virtually no limit to what can be constructed via 3D printing. There is new technology connected to very large 3D printers that are able to build a 3D printed home, and in China this has already been put into practice. This kind of technology will certainly impact on the property and casualty insurance market.

Bill also made the point that not only has technology be taking over blue-collar jobs, but it is coming after white-collar jobs. With technology like IBM’s Watson, that can read thousands of documents in seconds, faster than any human can read, this technology is able to quickly find correlations across different types of content that humans don’t have the capacity to do. For instance, be able to examine different treatments for various kinds of cancer to identify new treatments. It’s estimated that by 2023 that computers like Watson will be able to think just as the human brain, and by 2050 that these computers will have to power to assimilate data equal to all the brains on the planet.

So, be prepared for technology to both disrupt and innovate every industry. The future capability of technology is exciting, but also a little scary, and industries that have been major money-makers in the past may not exist at all, or will exist in a very different capacity, in the future.

Top 10 Intelligence Capabilities Issues

Over the past several years we have been collecting information and data points from interviews we held with top executives from dozens of companies. We found out that the top intelligence capability issues that are cited from business leadership as impediments to a highly valued intelligence function are universally consistent across industries and firms. Check out the top 10:

  1. Deliverables lack actionable business insight and recommendations.
  2. Tactical/transactional work consumes too much time.
  3. Intelligence team talent lacks business/market understanding or analytical skills.
  4. The corporate function ignores BU/Regional issues.
  5. Deliverables are not clearly designed nor enable business priorities and strategies.
  6. Information is delivered or data is dumped – analysis burden is left to the recipient.
  7. There are inconsistencies in local capabilities/understanding and the ability to execute.
  8. Competing priorities inhibit any real, valued outcomes – BU, Regional, Local.
  9. Routine reporting lacks insight (newsletter tend to diminish brand value).
  10. Resource constraints from leadership, talent, budget, meeting/process integration, technology.

A CI capability starting with a rock solid CI strategy that aligns with core executive leadership, has a business cadence and corporate governance, as well as contains proper CI purpose, vision, mission and values statements seems to set the intelligence pace to head off at the pass many of the above CI capabilities issues.

Top Four Elements to Build and Implement a Successful CI Function

We all love success, don’t we? For 23 years we have dedicated our careers to the competitive intelligence (CI) field. During that time we have observed CI professionals around the world. We’ve seen some who … Read More …

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