What Happens when Giants don’t Go Digital
In this post, we are travelling to the future. This article presents what a 2035 magazine would report on companies that failed to go digital in the 2020s.
Story Time: Cardeal’s Crash
After expending a decade trying to find out how to rejuvenate their business, the insurnace giant finally decides to end the bleeding and file for bankrupcy.
Cardeal Insurance started their business in 2007 as a local insurance provider for automobiles in Rachel, NA. As the car business kept growing during the 2000s and 2010s so did their scope, going nationwide in 2015.
Starting as a familiy business, the culture of the company was to always keep that kind of personal touch with teir clients, and alway provide services in their offices.
This worked as a charm in the beggining, as customers perceived it as a valuable strategy that showed that the company was really looking for meaninful interactions.
As the time and technology evolved during the years 2010s, more and more insurance providers decided to join in the digital train and offer their services through the Internet.
However, Cardeal Insurance continued providing only in-place services, as they pushed their strategy of providing a personalized experience. With this, they withdrew from the productivity that digital services offered — their website, only created in 2012, was a simple image with a phone number.
As a result, their market share dropped and dropped without an end as their customers felt that the value the company provided was no longer wnough without an Internet presence.
On 2022, the company was almost out of funds and they decided to use whatever they had left to create their online services. But it was too late.
The last 7 years of business were marked by mediocre online experiences and increasing debts, forcing Cardeal Insurance to finally end the company in 2029.
Digital Organizations Mindset
What went wrong with Cardeal? Why did their empire fall? The answer is that they failed to operate with the right mindset needed in the Information Society.
Corporations must focus on running their business using their time better, looking after efficiency and effectiveness. When Cardeal refused to create online and automated services, they decided against that.
On top of it, continuous improvement in the organization helps refine its capabilities and learn from experience. When cardeal refused to create online services and decided to continue with their in-place services only, they missed the opportunity to provide their customers with accessible and immediate contracting options.
To be able to survive, organizations must keep up with the pace of the digital revolution. They must continue innovating and bringing creativity in to their workflows. But most important than anything, organizations should focus on the value people bring to them.