Measuring responsibility: How investment in data enables ESG
The surprising connection between digital transformation and corporate responsibility
Defining Digital Transformation
Digital transformation in healthcare is a widely used term with varied meanings based on organizational and individual perspectives. In Huron’s research, 77% of organizations agree that digital transformation can be described broadly as a goal to:
Huron surveyed more than 300 leaders across five business sectors to find out how data and corporate ESG efforts are converging. The results reveal why investment in digital technology is the complement, not the competitor, of ESG efforts.
Leaders may be closer than they realize to lessening burdens tied to ESG and driving more meaningful outputs that matter to clients, consumers, and employees. To get there, it will take a commitment to digital-first thinking and an understanding of how to optimize existing data, technology, and analytics to serve ESG needs.
In Huron’s research, digital-first is defined as creating an agile organization where technology and corporate culture work together to improve processes, maximize efficiencies, and offer unparalleled customer experience.
Healthcare’s Digital Mindset and Execution Are Not Always Aligned
Nearly half of low-maturity organizations consider their entire organization to be digital-first compared with a more balanced acknowledgment from higher-maturity organizations. This contrast indicates a gap between how some organizations perceive their digital maturity and how they invest and execute their strategy.
Entire organization
Do you consider your organization to be digital-first?
Some of the organization
None of the organization
Low Maturity
52%
2%
46%
Medium Maturity
61%
1%
38%
High Maturity
77%
3%
20%
The Escalating Importance of Digital Maturity
Healthcare organizations that have mature digital strategies and implement them successfully can benefit significantly through their ability to be agile, respond quickly to shifts in the market, and remain financially viable despite volatility.
Mature organizations understand the need for continuous improvement and do not consider an area complete just because they have an existing solution.
Resilience
Initiated digital transformation before COVID-19, aiding in response and recovery
Focused on cost and growth
Make technology investments with the purpose of generating cost savings and catalyzing organizational growth
Data-driven
View advanced analytics as a top digital transformation priority over the next one to three years
Unified view of data
Data is integrated into a data lake or single source of truth
Value clinician input
Encourage clinicians to bring forward technology ideas
7 Core Areas of Digital Transformation
The research indicates seven focus areas make up the digital transformation journey. Where organizations prioritize their focus will depend on the outcomes they are trying to achieve.
e.g., enterprise resource planning (ERP), electronic health record (EHR)
e.g., security event monitoring, certifications, identity access management
e.g., data quality, data lakes, payor interoperability
e.g., voice recognition, note taking, remote work
e.g., remote patient monitoring, wearables, hospital at home
e.g., smart floors, interoperable equipment, robotics
e.g., population health, artificial intelligence, robotic process automation
Core Technology & Interoperability
Data Protection & Cybersecurity
Data Sharing, Management, & Governance
Digital Apps & Tools for Healthcare Workers
Digital Apps & Tools
for Consumers
Advanced Care Facilities
Advanced Analytics
& Automation
Top Healthcare Digital, Technology, and Analytics Investment Areas
Most healthcare organizations are prioritizing investments in core technology and data protection and cybersecurity. Data sharing, management, and governance is also a top investment area for high-maturity organizations.
While healthcare organizations have defined digital transformation as core to improving care and the consumer experience, they indicate less investment overall in digital apps and tools for consumers.
Core Technology & Interoperability
Data Protection & Cybersecurity
Advanced Care Facilities
Digital Apps & Tools for Healthcare Workers
Advanced Analytics & Automation
Data Sharing, Management, & Governance
Digital Apps & Tools for Consumers
Core technology (overall)
Core cloud components (e.g., Azure, AWS)
Enterprise resource planning (ERP)
Electronic health record (EHR)
56%
80%
91%
78%
73%
86%
66%
72%
74%
29%
49%
55%
Low Maturity
Medium Maturity
High Maturity
Healthcare Organizations Rely on Partnerships to Drive Digital Transformation
High-maturity and medium-maturity organizations report that they are leaning on partnerships in the areas of advanced care facilities, data protection, and digital apps and tools for consumers.
More advanced organizations view partnerships as a means to accelerate growth or create more value from their technology investments. Low-maturity organizations report the highest level of technology partnerships but are likely missing opportunities for more advanced use of their platforms and solutions to support organizational goals and mission.
Most healthcare organizations are actively working with or seeking technology partners.
of low-maturity organizations
92%
of medium-maturity organizations
73%
of high-maturity organizations
52%
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Next steps
Let Huron’s industry and digital expertise guide your next initiative. Talk to one of our industry specialists about how your organization could be generating greater value by harnessing the power of digital transformation and ESG together.
Core Technology & Interoperability
Data protection & cybersecurity (overall)
37%
62%
89%
Compliance & certification
70%
76%
80%
Security event monitoring
60%
72%
70%
Routine security exercises
41%
63%
94%
Device security for remote workforce
46%
57%
64%
Data Protection & Cybersecurity
Advanced Care Facilities
Advanced care facilities (overall)
33%
58%
83%
Smart/advanced care facilities
43%
71%
86%
Expansion of interoperable equipment
46%
68%
86%
Advanced robotics
39%
48%
62%
What Mature Organizations Do Well Relative to Industry Peers:
Healthcare Digital Maturity Archetypes Emerge
Huron’s analysis identifies three digital maturity archetypes with distinct differences in digital mindset and strategy for how they approach digital, technology, and analytics.
Digital maturity is not a linear path, and digital transformation will look different for every organization. Higher maturity can enable greater agility and the ability to better control costs. However, your organization’s vision and goals and the needs of your patients should define your road map, as the level of maturity to achieve desired outcomes will be unique for every organization.
Low Maturity - 32%
Click to explore digital maturity archetypes
Low
Medium
High
Absence of organizational-level strategy
Dictated by IT and finance leaders
Prioritizes cost-saving investments
Organizational Strategy
•
•
•
Reactive to industry shifts
Resistant to change
Unsure of the benefits of large-scale digital transformation
•
•
•
Digital Mindset
“We’re more or less trying to put out fires, being a little more reactive than proactive.”
— Senior Director of Supply Chain, Regional Health System
Siloed strategy
Cross-functional collaboration (IT, finance, clinical, and strategy)
Focused on cost savings with an eye on growth
Organizational Strategy
•
•
•
Fast follower of trends
Open to piloting projects
View nontraditional players as an opportunity to advance
•
•
•
Digital Mindset
“We don’t want to be out there in the vanguard. We let others do that and try to learn from their mistakes.”
— Chief Financial Officer, Regional Health System
Unified strategy articulated across the organization
Cross-functional leadership alignment
Growth mindset
Value on internal and external input
Partnership-driven
Organizational Strategy
•
•
•
•
•
Desire to be viewed as an innovative digital leader
Pursues and pilots tech for competitive advantage
Patient-centric strategies
Pipeline for physician ideas
Views nontraditional players as collaborators
•
•
•
•
•
Digital Mindset
“We [said] let’s bring more innovation … and now on a weekly basis we are bringing new technology into the fold.”
— Chief Medical Informatics Officer, National Health System
Medium Maturity - 47%
High Maturity - 21%
Digital apps & tools for consumers (overall)
22%
37%
76%
Customer relationship management (CRM)
55%
68%
71%
Telehealth
53%
61%
77%
Robotic process automation (RPA)
52%
61%
80%
Comprehensive digital front door/digital app
54%
63%
61%
Wearables (e.g., heart rate monitors)
55%
51%
86%
Patient portal or app for scheduling, communication, etc.
44%
57%
76%
Automated check-in (e.g., kiosks)
51%
54%
64%
Planned Investments by Digital Maturity Level
Digital Apps & Tools for Consumers
Data Sharing, Management, & Governance
Data sharing, management, & governance (overall)
16%
50%
88%
Data availability & quality
62%
78%
89%
Data sharing & system interoperability
50%
72%
85%
Data sharing with payors/ external vendors
47%
63%
86%
Integrated 360-degree view of patient data
47%
55%
82%
Data lake/single source of truth
41%
56%
55%
Advanced Analytics & Automation
Advanced analytics & automation (overall)
22%
51%
85%
Monitoring population health
62%
77%
56%
Robotic process automation (RPA)
52%
61%
80%
Artificial intelligence diagnostic technology
55%
54%
73%
Predictive analytics/
machine learning
47%
58%
77%
Real-time clinical analysis
43%
58%
70%
Data visualization dashboards (e.g., Tableau, Power BI)
46%
53%
71%
Digital Apps & Tools for Healthcare Workers
Digital apps & tools for healthcare workers (overall)
30%
57%
85%
Automated documentation & ordering
69%
76%
88%
3D modeling and printing
59%
72%
74%
E-prescriptions/
medication management
63%
63%
59%
Personnel management/
care coordination
59%
51%
77%
Remote working capabilities
40%
61%
55%
Ambient clinical intelligence
50%
58%
68%
Revolutionize how consumers seek, receive, and manage care by employing digital technologies that make healthcare more accessible, personal, and efficient.
At its core, environmental, social, and governance (ESG) initiatives are about measuring the impact that business has on people, society, and the environment. It’s a story told through enterprise data and demographics, and most businesses agree that ESG is here to stay.
Low
Medium
High
Tap to explore digital maturity archetypes
Low
Medium
High
Low
Medium
High
Core Technology & Interoperability
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Despite how intertwined ESG initiatives are in industries, programs remain siloed from broader organizational strategies. Additionally, ESG programs are under-resourced from a digital standpoint. As the importance of ESG grows, organizations have an opportunity to improve effort and output without compromising investment in other areas of their business.
1
/7
2
3
4
5
6
7
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Tap to explore digital maturity archetypes
Research
303 Leaders
Surveyed across
multiple industries
5 Business Sectors
Including healthcare, higher education, manufacturing, financial services, and energy and utilities
20 In-depth Interviews
With CEOs, CFOs, CIOs, CHROs,
+
VPs of strategy, operations,
diversity, and ESG
Putting possible into practice
What is ESG? A quick guide to identifying ESG in business
Environmental
Social
GOVERNANCE
Climate change strategy
Energy efficiency
Water efficiency
Carbon intensity
Environmental management systems
Equal opportunities
Freedom of association
Health and safety
Human rights
Customer and product responsibility
Child labor
Business ethics
Compliance
Board independence
Executive compensation
Shareholder democracy
Business is normalizing and prioritizing ESG
Over the next two to four years, businesses expect to see a continued increase in ESG importance.
69%
24%
4%
Increase
Stay the same
Decrease
ESG is no longer a rising trend but rather a normal and crucial component of business.
Essential priority
High priority
Moderate priority
Low or no priority
20%
9%
2%
72%
Digital investment and ESG converge
Digital transformation and ESG are complementary rather than distinct.
96% of respondents have made digital, tech, and analytics investments to improve ESG outcomes
98% of respondents indicate that digital, tech, and analytics tools are important to achieving ESG excellence
ESG initiatives can be an incremental addition to digital transformation.
80% of leaders say ESG digital capabilities could be improved when folded into general transformation activities
Organizations combine ESG implementation and digital capabilities
Expanding data and technology strategic planning to include ESG goals
Selecting and deploying new software and technology
Embedding ESG data collection and analysis into data and technology process workflows
Integrating ESG into ongoing data and technology change management
83%
71%
64%
61%
ESG and digital investment create value
Focusing on the following intersections of digital and ESG priorities eases reporting burdens and drives greater return on investment.
Access to industry peer data to benchmark ESG DEI progress.
Make ESG data easily accessible to all.
Create new ESG data inputs (e.g., surveys, sensors, etc.)
Establish and empower cross-functional teams.
Implement an ESG
data lake.
13%
87%
34%
7%
59%
27%
3%
70%
15%
85%
29%
8%
63%
Healthcare
Higher Education
All Industries
Manufacturing
Financial Services
Energy/Utilities
