In this remarkably frank excerpt from a recent conference presentation, Justin Watts of Lloyds Banking Group (LinkedIn profile) explains how his organisation has adapted their digital transformation approach to solve real world problems.
Justin’s key advice is to study the existing system and people’s behaviour closely first – “get knowledge” – and use this to work out weaknesses in the system.
Real transformation doesn’t come from “plugging a digital front end” onto an existing system. It comes from understanding the demand that customers place on the system and meeting those needs efficiently. Changing the system leads to transformation, not just bolting on digital.
Once the “value work” within the system is understood, that’s when to use technology to its best effect. Technology can enhance the value work by making it faster / more effective, or it can eliminate the costs associated with failure demand.
And remember – sometimes a digital solution is not appropriate. Moving bank statements online is never going to cater for the customer that needs their statements stamped by a branch for the purposes of completing an immigration application.
With insights about real people’s behaviour and needs, innovation becomes more than “blue sky thinking”. It’s about solving real world problems.