Technology Up Gradation And Fund Scheme

By Author: Sherry Roberts
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The case is normally in reference US Company called Northern insurance following their investment on the technical underwriting financial system, (TFUS). The system encompassed the largest ever investment made in the IT by the company. The system was meant to assist the company in streamlining their underwriting process as well as offering capabilities in relation to strategizing on the e-business (McKeen & Smith, 2012). However, a couple of months in the system, TUFS became the company’s cost center, spending over $4 million on the system. Consequently, the high expenses of the system resulted in the CIO, Martin Drysdale having his job on the line. In the example of TUFS, several of the projected rewards incorporated financial savings via improvement of the efficiency as well as e-business competence. As illustrated in the example, the company did not make utilization of the e-business aspect two years subsequent to its release. It thus points to an IT malfunction, although it could be as probable that a communication breakdown in the midst of those accountable for the definition of the company’s stratagem produced ...
... the unexploited feature. The results follow with the CIO convening a meeting with the company’s CFO with the intention of deliberating on the reasons as to why the system was failing to deliver the results it was targeting. The meeting was to discuss additionally on whether continued investment in the system was warranted (Murphy, 2014).
The company should have invested on the TUFS as the idea was brilliant and was going to help the company a lot. The system was going to streamline the process of underwriting and as a result immensely save on the costs the company was investing. Conversely, the technicians failed to attain any form of participation from the underwriters. Additionally the various departments were operating on different pages in relation to the creation of the system (Uk-Joong & McKenzie, 2010). The resultant impact was that huge amounts of money spent in the process of trying to fix the underwriting errors that were made and kept reappearing over and over again. The projected benefits characterize prospects, which in our case do not materialize to have been evidently defined by the IT or else their business colleagues. It might be of additional significance, in this case, to inquire how the project is in tandem with the company strategy. One rationale as to why it is imperative is that the potential benefits are strategic in nature. In other words, improvement of efficiency along with e-business possibly will be a superior business strategy. On the other hand the deficiency of an apparent strategy, it is not easy to articulate how the characteristics can grant the company an advantage. To make the situation worse, the senior underwriting managers were insistent on the reliance on the old reports other than looking online for the current reports.
Finally, there was an evident failure of involvement of the business in main decisions affecting the system, leading to the system disappointment. The major component of the resources belonging to the company utilized an effort to rectify the underwriting errors which has the possibility of being avoided from the beginning. The issues could have avoided the underwriters along with the technicians resolved to work together towards the objective having uniformity in their communications.
In addition, the entire organization believed that the innovation had the effect of connecting various functionalities in the company without any recognizable evidence relating to the business needs. The business failed to undertake any responsibility in the implementation of the innovation both at the senior as well as expert levels. Various strategies that were marketable altered throughout the life of the implementation of the innovation but occasioned the failure to reassess the entire venture in terms of the progress. The reasons as to why the organization faced challenges were because the innovation had value sparing as well as income creating opportunities. Consequently, the management decided only to concentrate on the sharing of cost. The management failed to have any means to guarantee that the achievements from the innovation were adequately measured to design the way forward. The official in the organization along with the supervisors did not have any clue in relation to the management of the innovation (Uk-Joong & McKenzie, 2010).
Additionally their accomplishments did not satisfy the rate at which the implementation of the innovation framework was supposed to guide the implementers. The principal issues that were affecting the TUFS mainly related to the various sections of the business and needed urgent addressing to make the business profitable. The problem was evident in the fact that the supporters, as well as the CFO, held the malicious in position that the innovation was costing the company a lot without conveying any of the expected results. Additionally the detractors of the innovation felt that despite the significant investment in the TUFS, the framework did not portray any evident value to the organization (Collins, 2011). The TUFS project had inadequate planning requirements that indicate be deficient in of strategy altogether. Projects that is deficient in vigilant requirements frequently conceived as well as executed unilaterally. As a result, the TUFS project presents important challenges when inventive time lines necessitate amendment (McKeen & Smith, 2012).
With the intention of improving the TUFS innovation coupled the desire to generate large amounts of profits; the company needs to put in place proper safety mechanisms. The innovation should additionally be redesigned and debugged to guarantee that the previous error experiences do not recur with a failure in the repeating of the same mistakes (Collins, 2011). The other improvement mechanism is the fact that the entire company staff needs to improvise via having teams that are supportive of the innovation, with the right project managers and technicians. Because Northern is a provider of insurance, additional efforts should be put in place with the intention of collecting data that properly design as well as the relevant customer information. The company needs to ensure the data they have is stored and backed up. The data that collect via the underwriters needs to be adequately designed by the staff into a data model. The company should additionally ensure that the staff well trained in the use and application of the latest software updates, internet as well as the technology (Uk-Joong & McKenzie, 2010). Implementation of the above issues is with the intention of making the employee conversant with the technical matters affecting the innovation, as well as the diverse problem-solving mechanisms. On the occasion that the company has the desire to succeed as well as become reliable, the issues that have mentioned above needs to be corrected and implemented in the company.
IT projects need investment and cooperation from stakeholders. There are numerous objectives for the need to get buy-in before commencing an IT project, some of which comprise investment throughout improvement as well as dedication to conversion away from old procedures to the new system after completion. One-sided IT projects time and again fall short of the level of investment along with dedication necessary for the successful of an IT project (Murphy, 2014). It thus becomes additionally critical in relation to the scope as well as the size of the project increases. The TUFS project enjoyed minimal stakeholder participation in the commencement as well as premature stakeholder desertion when challenges arose.
The company needs to implement measures that will ensure that the similar issues do not affect their future operations and success. The dynamic investigation of the market needs to be carried out with the taking it to consideration of the consistent substance. An example follows that there is the necessity for the company’s blueprints to rearrange (Collins, 2011). These specific immense plan activities such as the TUFs should have an R&D that helps keeping in mind that the objective encompasses preparing for the future success. Additionally the R&D could be used for the setting of the momentary or short-term achievements that required being bargained for with additional verification that they will not affect the current or future business. The alterations should be sudden intrinsic changes, with the possibility of having negative as well as positive outcomes. The developments are moderate as well as an opportunity for learning that normally has dynamic results. Thus on the occasion some of the fundamental innovations of the projects are executed, the improvements should be evident in the final business results.
Northern insurance as a company should have information warehousing as well as store all the information that is related to the business. During the implementation of any new R&D extend, the information that the company has stored is going to play a major part in the design. The undertaking part is going to exert a huge portion in relation to how it is going to implement, with the innate issue emerging as the venture progresses (Murphy, 2014).It is clear that an adequate plan and assets need to offer with the intention of helping the performance meant to assist in connecting the holes evident in the groups created in the organization.
The benefits can measure by the utilization of various strategies some of which include the evidence that indicates effective communication among the various departments in the company (McKeen & Smith, 2012). The effective communication of the various stakeholders would entail the improvement in the outcomes of the company targets in relation to the utilization of the innovation. Additionally with a cautious identification deficiencies that are crippling the company early on in the implementation of the project would assist in the generation of the metrics top assess the success (Murphy, 2014). The main assessment of the success is the reduction in the budget that is being dedicated for the launching of the system coupled [with evident financial savings by the company. The resultant effect would be an increased stakeholder participation that consequently translates into better decision-making and productivity by the company. 
References
Collins, R. J. (2011). Project management. Nwe York: Nova Science Publishers.
McKeen, J. D., & Smith, H. A. (2012). It strategy issues and practices (second ed.). Pearson.
Murphy, D. (2014, April). Investing in TUFs (Power Point Slides). International banking in the new era: post-crisis challenges and opportunities. (Fifth, Ed.) Binkley, UK: Emerald.

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