Driving Innovation at Incumbents - Insights from ERGO's Head of Innovation & Digital Transformation

In the rapidly evolving landscape of global business, innovation stands as a beacon guiding companies towards sustainability and growth. Hanbing Ma, Head of Innovation & Digital Transformation at ERGO, part of Munich Re Group, shared invaluable insights at the Cognigy Experience Summit into how ERGO has been embracing this journey. Here’s a glimpse into their strategy and what other companies might learn from their experience.

"There is no easy answer and there is no proven formula for success. And it's no secret that innovation is difficult for incumbents."

Hanbing Ma, Head of Innovation & Digital Transformation at ERGO

Utilizing Incumbents to Transform Services

At the core of ERGO’s innovation strategy is leveraging the incumbency. Unlike startups, legacy companies have extensive resources and established structures that, while sometimes cumbersome, can be powerful drivers of change if aligned correctly. Hanbing’s approach involves taking full advantage of these existing strengths to deliver superior customer service and streamline operations.

ERGO's Milestones in Innovation

ERGO’s innovation journey formally began in 2017 with the establishment of ERGO Digital Ventures. This strategic move was aimed at fostering innovation at a level parallel to ERGO Germany and ERGO International. The initiative marked a significant commitment from the top management and set the stage for a series of innovative breakthroughs.

Overcoming Common Obstacles in Innovation

According to Hanbing, several obstacles that typically hinder innovation in large organizations: complex bureaucracies, diverse managerial perspectives on innovation, and budget constraints. ERGO faced these challenges head-on by fostering a culture that not only embraces innovation but also systematically addresses these barriers.

The Role of Successful Projects in Streamlining Operations

One of the standout examples of ERGO’s innovation is the introduction of robotic process automation (RPA). The deployment of a bot developed to handle mundane administrative tasks, significantly improved efficiency. By automating routine processes, ERGO not only enhanced productivity but also boosted employee morale by freeing up staff to focus on more strategic and fulfilling work.

Key Success Factors for Sustaining Innovation

Hanbing emphasized three critical success factors for innovation:

1. Top Management Commitment: Ensuring the alignment of business and digital strategies while securing necessary resources.
2. Demystifying Technology: Making technology tangible and relatable so that employees can easily adopt and benefit from new tools.
3. Effective Communication: Keeping communication channels open to educate and get buy-in from all stakeholders, thus facilitating smoother implementation and higher acceptance rates.

"Think big, start small and scale fast. The seemingly safer option of scaling over time can be a death sentence for innovation."

Hanbing Ma, Head of Innovation & Digital Transformation at ERGO

A Blueprint for Innovation

As ERGO continues to push the boundaries of what's possible within the insurance industry, their journey offers a blueprint for other incumbents aiming to revitalize their operations through innovation.

Innovation, as demonstrated by ERGO, is not just about adopting new technologies but about creating a culture that supports continuous improvement and adaptation. For companies standing on the brink of their own innovation journeys, ERGO’s experience underlines the importance of resilience, strategic alignment, and the transformative power of technology.

Watch the full presentation

About Hanbing Ma

Hanbing Ma is leading the global innovation activities of ERGO. In this role, she is responsible for innovation strategy & projects, scouting activities, and corporate venturing. For digital transformation, one of her key priorities is to make use of digital technologies and scale them across the group. Further, she is a promoter of new ways of working and facilitates teams within the organization to manage the change. Hanbing has a background in strategy, business development, finance, and corporate innovation.

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