Why universities will need to digitalise to survive Dave Sherwood 27 February 2021 Universities, and the role they play in society, are under threat from the impact of the ongoing pandemic. While rarely a sector in financial crisis, university leaders in seven of the higher education systems in Europe now predict a fall in core national funding as a result of COVID-19, compounding the huge hits universities have taken on rental and commercial services and contractual research. Fourteen national university sectors in Europe have also predicted a fall in income from international students, with travel restrictions limiting student mobility. Estimates of losses to the United Kingdom university sector range from £3 billion (US4.2 billion) to £19 billion (US$26.7 billion) per year as a result of the coronavirus, while the picture is no less bleak across the pond. The University of Michigan alone anticipates losses of up to US$1 billion this year across its three campuses.

Digitalising value streams effectively and efficiently is, without question, a move that will provide an organisation with future competitive advantage. However, to undertake such a digital transformation, top management must focus on developing the right capabilities and establishing the necessary mindset throughout the organisation – a necessity also common to lean management. The potential of digital technologies to transform performance is now widely recognised. However, most companies struggle to find the right approach to effectively grasp the benefits of this digital promise. Indeed, choosing from among the plethora of new options provided by digital technologies is a real challenge.

Digitalisation benefits the entire insurance industry. From simplifying complex policies and streamlining approval processes, digitalisation can have a positive impact on all parties including customers, agents and brokers. On the internet, 80%1 of local financial research is largely centered on insurance policies as customers gather more information before committing to a purchase. As a result, it has become crucial for insurers to provide a strong digital experience for customers. However, a recent global study found that over 58%2 of senior-level executives in the insurance industry believe they are behind other financial services when implementing digital technologies.