1 2 3 The Dilemma of Smart Things 4 5 Who owns it? The question of ownership and the challenges of the beta burden are Evolutions in the engineering space started businesses down two sides of the same coin. Ownership of products is now effectively this path. Agile and DevOps processes allowed the organization to shared among companies and their customers. An evolving digital move and respond to the demands of customers, while application experience is designed to be an intrinsic part of the usefulness and programming interfaces (APIs) opened the door for robust and ever- differentiation of a product. That’s possible because the enterprise transforming ecosystems. But as adoption of this new generation of can take control of a product to improve or expand the experience products continues to grow, the impact is being felt far beyond the throughout its lifecycle. technology organization alone. But this is a huge departure from the past, when what you bought Insurance companies must expand the approach that began in the (and insured!) was what you got. The real value is often embedded engineering space to permeate every aspect of their organization, in software like apps and firmware. Tesla customers have seen their whether it’s sales, customer support, development, design, claims, cars transform without ever visiting a mechanic as new functions underwriting or others. If leaders ignore this imperative, even the like autonomous driving, accommodations for pets and enhanced most successfully delivered product or service will look like a failure safety features are pushed through firmware updates. when the businesses can’t keep up with its evolution. Insurance companies that leverage sensors and apps to interact with customers may need to evolve their strategies and operating models to align with a new role. To deliver the wide-ranging experiences they hope to achieve through flexible, updateable products, companies must rethink the way the entire organization develops, delivers and supports its outputs. 36 Technology Vision for Insurance 2020 | We, the Post-Digital People