Why don’t (some) insurance leaders take #digital transformation seriously?
I picked this up from the smart folks at BCG recently.We may have heard about Moore’s Law (processing power doubles every 18 months), but many of us do not know about the other two laws of digital information management.
The crucial second law is Butter’s law: This states that an optical fiber’s capacity to communicate data doubles every nine months. The third relevant law is Kyrder’s law: It says that state that the amount of data stored per square centimeter of a storage device will double every 13 months.
Now imagine the impact of all these three laws operating in tandem, compounding the effects of each other. That is the way digital technologies end up impacting businesses in an EXPONENTIAL manner. We humans, find it easy to understand LINEAR changes, and exponential changes are somewhat challenging to grasp intuitively.
That is one reason why several leaders from insurance and other industries tend to minimize the impact of digital trends, especially when they start small.
They are caught on the back-foot when technology change creates disruptive startups who were tiny couple of years back! Thoughts?
