Sounds Crazy! Yes, you heard it correct. ROI is dead. As a technology solutions provider, I came across a mindset problem that prevent businesses from taking up Digital transformation initiatives
1. Traditional Mindset: Digitalization is costly. Insurance industry has been a laggard in Digitalization due to their general mindset that Digitalization is complex, costly & risky.
2. Fact: Research indicates about 80% of Digital transformation initiatives have been delayed because of complex integration challenges.
These complex integrations are perceived as costly. Logistics industry has been plagued with these integration challenges leading to supply chain visibility challenges.
Traditional perception in both these industries narrow down their decision making by seeking an answer to the question. “Can you tell me about my ROI?”
We at SwiftAnt, have coined a 3-word response to this conundrum. ROI is dead.
Why and how? Zero CAPEX. This is how we have delivered state of the art Digital products and solutions to our insurance and logistics clients.
How do we get paid?
We have transitioned to a business transaction model. Our clients pay us a small fraction per unit transaction. Our products focus on improvement in industry metrics and they pass on a small fraction of these benefits to us.
Did this work in Insurance?
Yes, we have implemented a country wide motor insurance policy issuance and claims automation solution in this model. Industry has been able to turn around their profitability and Microsoft has published this as a success story.
A leading global logistics solution provider implemented a seemingly complex solution that is perceived as costly during covid times with Zero CAPEX. They are now able to onboard their trading partners in a span of 2 weeks as opposed to 6 - 8 weeks earlier. This was augmented with Business intelligence @ Zero CAPEX which is unheard of.
As products & services get commoditized & Uberized, the cost pressure on businesses is too high. Business cannot afford huge CAPEX investments for Digital transformations. CAPEX investments are slowly pivoting to SAAS model which in turn is transitioning to Zero CAPEX & business transaction models.
When you don’t invest for a Digital Solution & start scaling your business. Why even think about ROI? Its dead.
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