Elias Point Ventures is an advisory and business services firm driving digital transformation of the global risk management and insurance industry through the promotion and adoption of platform business models and digital ecosystems. Platform business models beat traditional business models in winner takes all contests. Leaders must develop new strategies and operational capabilities or risk disruption by platform businesses.
Innovative firms transform the core, grow the core and scale the new. Transforming the core requires the application of new technologies to deliver sustained cost reductions. Growing the core requires the application of new technologies to personalize customer experience and empower data driven decision making. Scaling the new requires developing new business models, new revenue models, innovation architectures, ecosystem partnerships and corporate venturing and acquisitions. Elias Point Ventures advises executive teams as they scale the new through the launching of platform business models.
Elias Point Ventures is a platform community facilitator through the Insurance Platforms Institute, an adviser to those seeking to launch a platform business model and a builder | owner | orchestrator of platform businesses. The group provides valuable insights in these critical areas:
- Vision Validation
- Value Proposition, Ecosystem Role
- Platform Strategy Formulation
- Business Model Structure, Reward Sharing Mechanisms
- Ecosystem Activation
- Governance, Collaboration, KPIs
- Open Innovation Acceleration
- Platform Driven Innovation
- Talent Management
- Sponsorship, Organization Alignment
- Technology Application & Data Management
- Platform Technologies, Data Capabilities
John Hagel, Co-Chairman of Deloitte’s Center for the Edge, shares a perspective about the Big Shift in a video entitled “The Big Shift”. John speaks to the mounting performance pressure and our inability to respond to this pressure. Scalable efficiency is fast becoming inefficient. Future success rests on the concept of scalable learning. Focusing on scalable learning will change everything in the work environment. John introduces the themes of the future of work and the gig economy. He highlights scaling the edge as a mechanism for replacing the core of the business.
Strategy changes in the era of digital transformation. Harvard Business School’s Sunil Gupta in a video entitled “Driving Digital Strategy” speaks to the key components of digital leadership and transformation. He emphasizes a shift in strategic thinking and a need to focus on reimagining the business model, reevaluating the value chain, reconnecting with the customer and rebuilding the organization. He claims that the rules of strategy have changed. The experts at Bain and Company in the video entitled “Bain Digital Transformation Roadmap” highlight a similar sentiment as they describe four pillars of transformation. They emphasize developing a digital strategy, reimagining the business model, leveraging technology and orchestration. Dr. Jeanne Ross of MIT does an excellent job of defining the concept of establishing a digital vision in a video entitled “Articulating Your Digital Vision”. Peter Bendor-Samuel, CEO of Everest Group, in a video entitled “The Problem with Technology First Digital Transformation” reminds us of the chasing shiny objects challenge.
Platform Business Models and Digital Ecosystems
Platform business models offer a different approach to how businesses operate and present a potential for significant disruption. Sangeet Paul Choudary in the video entitled “Platform Revolution” introduces the concept. Professor Geoff Parker of Dartmouth College and MIT speaks to how platforms are changing the world, implications for firms and strategies to adopt in the video entitled “The Platform Revolution, Digital Ecosystem Management”. For an excellent read refer to the book entitled “Platform Revolution”. For an excellent and free online course checkout the edX course entitled “Platform Strategy for Business”. Here is a video description of the course, Overview. It’s rigorous. John Hagel describes the different types of platform business models in the video entitled “Platform Pull”. It is important to note that there are four fundamental types of platforms and their application may be in B2C, B2B2C or B2B contexts. A lot of focus has been on Apple, Google and Microsoft. That said, there are many other applications and examples.
Digital Transformation in the Insurance Industry
A.M. Best surveyed 1,500 rated insurance company units. A.M. Best’s Stefan Holzberger, Sr. Director & Chief Rating Officer, defines the innovation landscape in the video entitled “A.M. Best on Industry Wide Survey on Innovation”. A.M. Best’s Matthew Mosher, EVP & COO, speaks about how A.M. Best is adding innovation maturity to their company rating evaluation framework in the video entitled “A.M. Best’s Matthew Mosher”. Insurance companies are under significant pressure to not only apply technology but to show how the technology is adding quantifiable value.
One Business Problem
The top 125 P&C insurance companies, representing approximately $638B in DWP, are confronted with a pressing need to digitally transform their existing business models, operating models, business processes and tasks. This challenge requires significant investment. For top tier insurance companies, each company is deploying technology to solve business problems they believe are unique to their organization. In many ways, both the problems and solutions are universal. Redundant investment is the norm. For lower tier insurance companies, the investment challenge parallels that of the top tier. For these companies, investment in digital transformation may be excessive and potentially prohibitive. In the BestTV video entitled “Mutual Insurers See Tech as Enhancing Their Unique Business Model” Elisabeth Sandersfeld, SVP & CFO of GuideOne Insurance, speaks to the cost and complexity of digital transformation when assumed by an individual mutual insurance company. She mentions an interest in exploring the potential of developing a platform solution funded by multiple mutual insurance companies.
Are These Platform Businesses?
There are several consortia driven digital transformation initiative/solutions that may be or will be platform businesses. The Institute’s RiskBlock Alliance is described in the video entitled “The Criticality of an Ecosystem for the Future of DLT”. The video describes Canopy 2.0 and Canopy 3.0. B3i’s Chief Architect speaks to the blockchain solution being developed in the video entitled “The Who and What of B3i’s Chief Architect – Alessandro Spadoni”. Lastly, AAIS CEO discusses the openIDL initiative in the video entitled “AAIS CEO Ed Kelly and IBM Discuss OpenIDL at IBM Blockchain Summit for Insurance”.