By David Tuyo
Digital transformation reminds me of a question that my kids would ask when they were younger on family road trips: “Are we there yet?” Undoubtedly, most parents who have had a toddler in the backseat of a car have heard the same question.
My answer to my kids was, “We are getting closer.” However, this answer does not apply to digital transformation. Digital transformation is a journey, not a destination. That's because digital transformation is continuous – or at least it should be if you want to unlock the greatest value possible from digital technology, while also seizing new opportunities.
What is Continuous Digital Transformation?
Digital transformation has become a corporate buzzword over the past decade. But to our organization, digital transformation refers to the process of integrating digital technology into all parts of your business.
By extension, continuous digital transformation is the process of leveraging digital technology in new and more effective ways on an ongoing basis. It consists of a roadmap, resource allocation, minimum viable product creation, beta testing, and continuous evolution through a robust feedback loop. Continuous digital transformation is an important concept because it can be easy to interpret digital transformation alone as a one-and-done project.
Too often, organizations adopt digital technology and then declare themselves digitally transformed. For example, replacing all paper-based forms with digital documents or automating routine customer service tasks increases efficiencies of some aspects of the business, but not across all parts of the business.
The Reality
That approach to digital transformation would make sense if digital technology were fixed and offered finite opportunities for creating value. In reality, however, new technologies are emerging every day. Plus, organizations are continuously devising new ways of leveraging existing technology.
For that reason, digital transformation should be a strategy, not a project with an end date. When you achieve one set of digital transformation goals, you should identify new opportunities for enhancing the digital processes you have in place or implementing new ones, then work toward implementing them.
Continuous Digital Transformation in Practice
For my organization, University Credit Union, continuous digital transformation has meant constantly doubling down on the impact of the digital solutions that we use both for internal opportunities and to engage with the communities and members we serve.
Here are some examples of how we pursue continuous digital transformation.
From Fillable PDFs to Web Apps
Back when I joined the company in 2017, the only way that our members could fill out a membership, loan or mortgage application online was to use a fillable PDF form – an example of a digital technology that might have been transformative back in the early-2000s, when being able to fill out a PDF and submit it by email was faster and more convenient than completing a paper form in a branch.
But today, our members expect a better digital experience, which is why we implemented online apps for membership, loans and mortgage applications back in 2017 and 2018. Of course, we didn’t stop there, while we continuously improved the experience, this month we launched what we believe is the best application experience in the country.
In my opinion, this is a textbook example of how a business can embrace the concept of continuous digital transformation to replace a digital solution with a better alternative. The evolution of technology from a fillable PDF to an automated online application to AI enabled assistance within the application demonstrates how digital transformation is a journey. We didn’t stop with the fillable PDF. Our members expected more, and we had to deliver.
Finding New Ways to Leverage AI
Like many businesses that interface extensively with clients, we've long used AI to help automate some aspects of our member services. For example, we've offered chatbots that allow members to ask questions and receive answers on a 24/7 basis since early 2020.
But AI has come a long way since the days when chatbots were cutting-edge, which is why we're constantly putting next-generation AI solutions to use. For example, we recently implemented AI-based tooling that allows us to manage payment disputes automatically.
If a member is concerned about a potentially fraudulent credit or debit card charge, our system will assess it instantly and automatically. Cases that are deemed fraudulent trigger automated cancelation of the card and overnight shipment of a replacement to the member. The result is faster resolution of issues for our members, greater protection against fraud and less manual effort required from our staff to handle fraudulent transaction reports.
Going forward, our next round of AI-based innovations will include more cutting-edge technology, such as the use of generative AI to produce totally dynamic website content for individual app users, as well as to serve customized financial recommendations to our members.
Supporting a Distributed Workforce
We had a road map, plans and a few beta remote workers back in 2019, before many people had heard of Zoom. The full execution of our being a remote-first organization was implemented during the pandemic. That move prompted us to invest in a suite of new technology that would allow our employees to work effectively no matter where they were based.
For instance, we adopted Secure WorkRemote from Vega Cloud, a Desktop-as-a-Service solution that allows us to serve virtual desktop sessions to employees over the Internet. This strategy solved two key challenges for us: First, it keeps sensitive financial data on central servers, rather than placing it directly on employee PCs or laptops that could be stolen or hacked via home networks.
And second, because Secure WorkRemote delivers ultra-low latency, our employees, who are spread across seventeen different states, and counting, get a digital experience that feels virtually exactly the same as the one they expect from a traditional PC.
Conclusion: Digital Transformation Goes On and On, My Friends
Just as a young child continuously asks, “Are we there yet?”, I continue to ask the same question in regard to digital transformation. My answer is always “no.” Digital transformation initiatives can continue indefinitely, especially if you want to remain as competitive and efficient as possible, you need to be pushing the needle constantly by adopting or creating newer and better digital solutions whenever they possible.
At the same time, you should always be on the lookout for partners (like Vega Cloud in my company's case) who can help you make the most of new technology to unlock unparalleled value for your members and employees. The key to great digital transformation is to be never satisfied.
David Tuyo is the President and CEO of University Credit Union.