2022 Newgen State of Digital Transformation Research – Anand Raman, Newgen Software

This is texturing TV. Hey everyone, welcome to another text drug TV segment. I have a new person who's never been on Tech strong before with us.

His name is on and ramen and he's with the company called Nugent and believe it or not on an has been with Nugent for 25. That's two five twenty-five years you want to talk about. I mean, that's a that's a unicorn right there in the in the text space on the congratulations.

First of all on being there 25 years and welcome to text strong TV. Why don't you tell people a little bit about yourself? Thank you.

Thanks Adam. Absolutely. Yeah, I think it's definitely an intriguing.

You know, I think that's one of the first things that I get asked. Hey what what motivated you to stay in new Jen and you know all goes back to what our vision was our founder. We were founded in 92 and you know, I started fresh out of college in 94 join you Jen.

This is my first first job. I started in the software. Government side of the house at newgen and I think Newton was founded with the vision.

In fact, you know, our whole tagline is about one world one workplace. And you know, we kind of we've seen over the past two years right with the pandemic that coming to fruition that look the whole idea was that You can work from anywhere. Your customers can be service from anywhere.

You know, you may be a global organization. How can you make it more digital now those terms have reward but the tagline was one world one workplace. And that kind of was the way we wanted to approach, you know, solving more of these complex business problems for customers, whether it was at a bank in terms of how can you onboard customers whether it was Insurance in terms of how you can service your customers or issuing your policies to them.

So, you know, that's that's kind of so since then I've of course, you know as the company is grown and I've been in multiple roles. We used to have product development for new Jen. And then now I'm heading out America's business here looking really excited to grow our business in the Americas.

I think this is, you know, we started out of India and then we expanded to to other additional emerging markets and then reach the mature markets us and Europe and you know, we are expanding our business here. So so very excited to offer our products and solutions to customers. What a great story.

Congratulations. Know there was a time where that was the norm people went to work for IBM when they graduated college or GM or you know, some of these large multinational companies today and and there were pensions and you know and everything and it was not unusual for someone to spend their career. At one at one employer or one company and they you know work their way up.

The ladder is you have right fresh out of school all the way up now to running the Americans right for New China. I kind of miss those days. I'll tell you the truth.

I'm not so sure we weren't much better off when that was more the norm. Then because there's such tribal knowledge built up over those years. There's so much.

He just can't teach it and and for someone who hop, you know, a lot of did a lot of these. I don't want to sound old but a lot of these younger folks today, right they come in and they hop around every 14 to 18 months. It seems you know, they're jumping and you know you do you get different.

Experiences I guess but it's very hard for an organization to maintain that that tribal knowledge. If you will of who they are what they are what they do and and you know, it's a shame but on the other hand, I think a lot of people today. They'd rather change jobs than ask for a raise.

Right all I think that's what drives a lot of people to jump around today. They just The you know, they don't want to. Be uncomfortable asking for more money.

They're offered more money. But you know a recruiter or the next job and that's what they do. Anyway, congratulations to you.

And and that's a fantastic story. You spoke a little bit about Nugent and and it is a global company now obviously for folks in there might be people out here who have not really heard it before you spoke a little bit about what you do what you know, not you do but what the company does but you know for our audience out here on it. On and you know try to give us a little bit of a better clearer picture of you know, where the rubber meets the road at Nugent.

Sure. Absolutely. Absolutely.

See we are we are in the business of helping organizations transform themselves digitally and what we mean by that is we want we help our customers service their customers. And help them solve their most complex business problems. So for example for a bank financial institution, that might be how can I onboard my customer quickly?

For a healthcare payer. It might be how can I sign with my renew with my provider very quickly. How can I service my customer quickly and what we found the typical constraints are bottlenecks where people get stuck in the these are fairly complex business applications business processes, you know, you want to make sure that you are able to service your customer effectively.

You've got to help you've got to make sure that you work across your different business units. You may have different departments. You may have different systems.

You need a workflow which can kind of stand across all of that. You should be able to integrate with different systems. And finally the most important piece is the content whether it is in the form of customer application whether it is in the form of communication that has to be sent to the customer.

How do you manage that effectively, it could be structured information such as a form or a document but it could also be unstructured information. For example, now we are all seeing that you know teams calls are happening or Zoom meeting is happening. Are you how do you utilize that how does a customer service representative utilize that information to be able to offer the best possible customer service?

How do you like you talk Alan about people having 14 month 18 months tends in companies. Now, this is this is true for all large companies how you make sure that that tribal knowledge is maintained, you know, when you have people shifting you need to be able to make sure that you the next person who's able to pick up that, you know, maybe a customer called 18 months ago with a problem and now they have something else they want to make a change to that. It's a new customer service representative today who's handling that or a new relationship manager.

They need to have access to that information. They need to be able to pick up the threat from where it was last time. So, you know, those are the kind of things that we help organizations do is to is to really make it simple for customers to engage with the customer across different channels across different products.

And the way we've done that is we've built products for workflow what we call business Process Management and content management and these products have been organically built by New Gen and because of that we are able to offer good effective cost effective solutions to customers utilizing these products. So, you know, that's that's and we work with some of the large leading financial institutions Healthcare payers insurance and government agencies across the globe today. We are there in over 70 countries with about 600 plus customers Enterprise clients using new gym.

Got it. Excellent. Thank you for that.

So we've got all that kind of foundational stuff laid down here. I wanted to talk recently. You guys published a study and Survey around some of the digital transformation material and and knowledge and you know intelligence you've gathered.

Why don't you would you mind sharing a little bit with our audience? Absolutely absolutely. So, you know view being a digital transformation and helping organizations solve some of their problems.

So we thought that look and we've seen that in the pandemic, you know, that's really exploded. It's it's everybody's is adopting digital. It's become the norm.

So we thought let's understand what's going on digital transformation is a word we've heard you so many times. So we wanted to just understand where people are today. So we commissioned 11 market research to survey 300 business and it leaders across large and mid Market Enterprises AC The globe on the state of digital transformation and it was a diverse group and there were a variety of intriguing findings.

I think the most the most clear finding to us is to surely that in 2022. We are at the peak of interest in digital transformation. Now digital transformation as a term has been used for a long time certainly, you know since since the time it was find a decade ago.

but What's happening is that it's is the last the events of the last two three years have really. Increase the spend of organizations and at the focus of organizations on digital transformation. Now, this survey was Global we met with it and Business Leaders across the US Canada Mia Asia Pacific across Industries with a third from Financial Services a third from insurance and the third from various of their Industries and and a mix of about 50/50 between the mid Market companies, which typically we call us under 5,000 employees and then the large Enterprises which are 5,000 employees and above and the profile of the people was all that was survey.

It was about 60% where senior managers VP levels and about 40% were sea level six. Actually these kinds of things on and I always like to ask people. You know, what?

What was the biggest surprises or what would maybe counterintuitive, you know that came out of the survey that made you say my goodness. I didn't I didn't realize that I wouldn't have thought that Absolutely. See I think one thing is clearly coming out that like I said despite the strong interest in digital transformation.

So 100% of the organizations that we served are are doing or thinking about digital transformation. But a lot of both of them are at the early stage, so what 25 24% are at the discussion stage? Half are currently transforming and about 27% are more or less done.

So clearly there is still a long way to go with only 24% really, you know, early stage and another 49% still in the early stages of implementing digital transformation. I would say that, you know the to your point in terms of what was startling. I think the the difference between and we talk more about you know, the drivers for digital transformation, but but I think the biggest biggest Insight that we gained was the fact that you know, the big difference between the leaders and the and those were not you know, I think that came out very very strongly that Some eight times as many talked here Enterprises have completed their digital transformation in implementation.

Then the bottom tier And they started two years ago. Um seven times as likely to be digitally transforming the leaders as opposed to you know, the ones who are not leading. And the digital leaders are five times as likely to be engaged with low code.

So 63% as if as compared to 13% amongst those who are not so these this findings were very very, you know, surprising that you know, the Gap so the leaders continue to be winning there. They're really increasing that Gap. So I think The message here for organizations.

Is that really, you know, they need to step on it and accelerate their digital transformation. Otherwise, the leaders are just, you know winning this game. A great a great you know it I've been in it a long time in technology a long time that pattern that you're referencing here.

I don't think it's particularly unusual for the in terms of adopting adopting Technologies, right the kind of crossing the chasm model if you will, right? Yeah you 10 or 15% early adopters. And of course is the chasm and maybe you have the early mainstream then you have later mainstream and then laggards.

com. Right? What's interesting though is that you don't need 50 75% of organizations actually doing it.

For it to be mainstream for it to be you know, hot with a bullet and that that I think really does I think the numbers bear it out perfectly that perfectly describes describes digital transformation today. Everybody wants to do it. Some are talking about doing it, you know, probably like it sounds like a better quarter of the folks are talking about according to the organizations are talking about doing it a quarter of them.

Are really really or maybe more than a quarter almost a half hour, you know relatively early in the process and and maybe a quarter or less. 20% are are you know really far along with it? That that's pretty that to me that that hunts with what we see right that coincides with it.

What would any other kind of insights you? Can you want to point out? Absolutely.

Absolutely. I think you know the the other interesting Insight is that what is digital transmission? What are these organizations doing?

What are these 70% 50% 25% you know, what what do they mean by transformation? I think with the data that we found was very interesting 68% of the respondents. Those companies are transforming front-end processes.

And that's not surprising. Right. The front end is the part which is dealing with the customers, right?

Sure. How do you how do you make that experience better? And you know, how do you onboard faster and we all understand, you know, the front end process of any organization whether it is a bank or a retail or an insurance company 60% again, you know a strong percentage of number is is transforming their backend which means things like they're, you know, their operations things like their, you know, they're back office function and usually the drivers there are things like making them becoming more efficient becoming more compliant and just making sure you know, things are being done in a more streamlined manner but Only 38% are doing end-to-end.

And this was something very interesting. That end to end digital transformation was the other big differentiator between the the top tier the leaders and everybody else. and digital transformation itself is complex, right and doing it end to end, you know is something that clearly we are seeing as one big differentiated between between the leaders and the others and when we say end to end it means dealing with it's fairly complex stuff, you know, whether the business process, you know, for example, if you take a simple business process, you know you Providing an employee a self-service portal for a leave application for a leave is a simple process but the moment you're talking about very, you know, complex business processes, which means where you're talking about looking at multiple parts of the customer Journey.

And how they engage with the organization across different products, you know, whether that's you know, they start with buying one product and then how can they get that product service or you know if they have to do a return if it's if it's you know, depending on the kind of industry there and or if they have to add new products make changes to this product. So that's where it becomes more complex. Whether it's the process being more complex whether it is the information that the organization is dealing with that becomes more complex or even you know, communicating back and forth with the customer.

How do you use Omni Channel using multiple channels to communicate effectively with the customer at the right time. So clearly we are seeing a difference that 93% of organizations are focusing on of the leaders are focusing on transforming their complex business processes as opposed to about 50% who are focused on transforming some of their easier and simpler business processes. Excellent great insight there.

you know one of the again, we I interview a lot of people on text trunk and we do a lot of surveys in that kind of thing one of the things that we see a lot is the You know, it's great. You gave it. So the numbers what are the takeaways?

What are you recommendations? How do people get to where they want to be? Absolutely.

See I think there are and you know, just kind of to to give the framework for that. What are they hoping to accomplish? You know, I think that's the first step.

And what are the drivers for that? clearly, you know everybody is The pace of business today has changed completely right? It's an accelerated piece of business customer expectations are at all time high, right?

Everybody wants the the amazon-like experience. I think you know, that's that's an example that is so often quoted but it's true and I think it's it's across Industries. We find that people's expectations are shaped by one industry and you know, they have similar expectations from their from their render in the other industry and competitive pressures.

How do you innovate to keep up with competition? There's all kind of competition that is coming up and it may not be your usual competitors. It may be for for banks.

We've seen, you know, it's the alternate lenders. It's it's fintex. So I think the the clear recommendations from new gym now we've been in this space for a long time and you know, this survey kind of also brought it home very clearly.

That edits hard digital transformation is all about reimagining your complex business processes to unlock simple. What we mean by that is that make it simple for customers to do business with you across your products channels Journeys, really your customers don't care how complex your business is, or if you have different departments different systems, you've acquired different entities. The best organizations make it easy for customers to engage with them across all these moving parts.

And we found that there are five practices to what we call unlocking simple. The first is to keep customer experience as your focus. Now, of course, that's and what that means is, you know, again, make sure that look at those journeys of the customer across, you know different touch points.

So Omni channel is going to be important different products are going to be important. You know, you don't want to be in a situation where onboarding is super easy, you know, you have three clicks to click on and your onboarded you sign up for something enter your credit card information and boom you're part of your customer, but to make A Change Is Gonna Take You you're being pushed back and forth. You know, you got to email somebody you've got to go you've got to visit that's a broken experience.

That's not gonna help the the customer ever, you know become a supportive for you as a company. So you can't look at the customer experience across different Dutch points. That's the first recommendation.

The second is focus on automating the full application and to end So, you know look at again different Journeys different products different systems that you might have. It doesn't really matter now, maybe the customer or if it's a bank is a consumer for you, but they are also they also have a business account with you. How can you how what can you learn from those two relationships from the customer's perspective?

It is one one organization that they're dealing with. So best strategy we find we recommend is that you automate the full end-to-end application? Um, the third thing is that you know, look you have to from our perspective.

We think that that organizations would be well served if if they identify a digital transformation platform. That does two things one is it handles complexity and we've talked a lot about complexity on this call right in terms of all those systems Integrations omnichannel workflows being able to really do the car doing the hard part. But I think it's also equally important for customers or organizations to look at or digital platforms that are also agile.

Because as the pandemic taught us right there is absolutely no no way you can predict what's coming down the pike whether it is the environment whether it is your competitors. So how quickly can you adopt if things change how can you turn your business on a dime and so look for look and that's where low code comes in that. You know, if you're if you're digital transformation platform is build on local technology.

Then you can make changes as as the situation changes. So I would say those are really the top three, you know lessons that we would we would we would recommend to our I think they You're 100% correct? Right, if you can take nothing outside of this interview take those three things, but now we're overtime but I just real quickly for people who want to get more information.

On the survey where can they go? Absolutely. com and I'm I'll be happy to share a link of this which you can maybe maybe attached.

Well, we'll put it in the notes. com because eventually find probably find it from there. Yeah, you didn't thank you so much.

Thanks so much for coming on and sharing with us. This was great come back and you know anytime and keep us posted. Okay?

Thank you Ellen. It was a pleasure. Thank you for having me here.

Thank you. com. com Nugent.

Excuse Me in soft because you get that right Nugent soft. com. Check it out.

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