Information Systems Implementation Company provides auto insurance coverage for licensed drivers in the state of Indiana. The companys headquarter is located in the city of Speedway where it has two strategic business units located at the cities of Waterloo and Corydon. In all, BWAIC employs approximately 150 people with internal departments consisting of the Policy, Claims, Payroll, Personnel, and Insurance Agents. Currently, BWAIC insures 50,000 policyholders statewide. Last year, BWAICs net profit was $875,000. With certain state regulations, along with related socioeconomic impacts, the company expects an increase of new policies to underwrite. Accordingly, BWAIC is interested in positioning itself in the market where: 1) Internal exchange of information is efficient, 2) It improves its Customer Service, 3) Share information with external business contacts.
PROJECT OBJECTIVE To stimulate a vision within the company of leading the market in customer service through an efficient information system and to utilize the most current technologies at lowest possible cost. EXPECTED BENEFITS Internal: An improved information process where business applications provide intelligent solutions, secured data, and improved communication exchange between units and offices. External: To provide an advantage over the market where the interactions between the company and its external business environment produces customer satisfaction. Accordingly, this will have a positive impact on customer service where efficiency on the point of contact, through the lifetime of the policy, is evident. SYSTEMS PROFILE Currently, BWAICs network setup doesnt provide an efficient exchange of information between its key departments. Each department utilizes their own business transaction system within a mainframe environment.
This input-output process performs the processing of their business transactions. The departments: Policy, Claims, Personnel, Payroll, Legal and Insurance Agents, have varying application needs. Likewise, they share a common interest to achieve the best customer service possible. The Policy department has users that perform the administrative and technical type of work as it relates to underwriting insurance policies. The Claims department has users that perform calculations for the reserves of claims.
They review the potential liability costs involve in customers claims. The Legal department relies heavily on an efficient exchange of information. The Personnel, Policy and Legal are information oriented departments. Claims and Payroll, on the other hand, relies heavily on accurate calculations of fiscal data. It is reported that the current databank is reaching its capacity.
The current system is also inhibiting their customer service where the turnaround to process a claim takes about 90 days. The strategic locations of the Business units also contribute to the problems of the current system. The mainframe system negatively impacts the companys ability to reach out to their customers. The Insurance Agents are limited to the office in terms of processing new clients. Under the mainframe system, the structure of the database is costly to maintain and support.
Also, it limits the companys ability to intelligently process their information and exchange them with their external business environment. RECOMMENDED SOLUTIONS There are a variety of systems available in todays market. Costs will depend on the companys desire on long-term solutions. In todays information environment BWAIC needs to position itself to compete with other insurance firms with an advantage of having the best technological tools. An efficient system will produce satisfied customers and intelligent employees. This change in information culture will allow the company to utilize their resources more efficiently where performance reports and external data help the managers make intelligent business decisions. It is without reservations that I recommend the following solutions for the BWAIC: Network Planning of the backbone and the network foundation is vital to the success of this project.
It is recommended that a Client/Server network is implemented through a TCP/IP protocol. Each offices will operate as Local Area Network (LAN) connected together as a Wide Area Network (WAN). Each office and users will have the ability to exchange information instantaneously. This configuration will produce the best and secured environment for which powerful machines (Server) produce and process the information to the users (Client) of the information. The backbone (Bandwidth) have to support the type of data that will travel between the offices and through the customers. Each department will utilize their own groupware that will process their information. This information system will be accessible via remote access to allow mobility and flexibility for managers to strategically position their resources and staff.
To supplement this, it is recommended that an Intranet is put in place so as to allow information to external business contacts and customers via Extranet. The Intranet solution will also be the method that will enable E-Commerce activity and gain a market advantage Conversion of the database to a Relational Database Management System is also vital. The current database cannot be shared with external information users. Likewise, it does not produce the type of information that produces intelligent reports for management. The existing data will need to be converted to an SQL language so that it can be processed and controlled by an Oracle Server.
This conversion will position the company to be supported for future technological growth and will have the ability to control the anticipated increase of data. Given the structure of BWAIC, it is recommended that the headquarter maintains and administer a central database. This will provide security and the least possible cost. Client Side Information Processing Since each department has different business needs, it is vital that an extensive study be conducted as to how, what, when, where and why they will process the information. Preliminary study is as follows: Policy This department will require a groupware that gives them access to their policy database. This application will be web-enabled to allow mobile and speedy access. Claims and Payroll These departments will require a groupware that will give them the ability to make calculations and have the control of inventory.
The Claims department will utilize a web-enabled application that interfaces with the Policy information as to the status of policyholders. Payroll, on the other hand, will have an application for their internal calculation needs as well as provide a “limited” version to frontline supervisors for accurate reporting. Insurance Agents This department will have the most mobile needs. The will have access to Policy and underwriting information at their fingertips. Their web-based application will interface with the Internet forms that are produced as customers are solicited.
Legal This department will gain an advantage over other firms by having complete information. The trickle effect of information efficiency throughout BWAIC will result in confidence on Claims adjusters and high level managers. STUDY An extensive study of the following will be performed in able to produce a smooth transition to the new environment: I. The backbone of the current system to identify the size and cost-benefit of the proposed plan II. Each departmental needs and the behavior of which they process information III. The users as to how sophisticated their computer knowledge to identify the training needs and to evaluate how they will adapt to the change (impacts on the rollout) IV. The resources of the company V.
Identify and compare with a company with a similar structure and research the success and the feasibility the proposed system VI. Develop a systems support plan and develop a business disaster plan to recover the company should a catastrophe of loss data occur VII. Analyze the complete cost-benefit of the project and formulate a proposal plan to the President This is to apprise you with the second phase of the Systems Re-Engineering Project which you have hired my services to perform an analysis on. This phase involves the survey and the planning of the relational database management system for your company which was articulated in my project proposal. As mentioned, I highly recommend re-structuring your existing current data model, which does not produce efficient use of the systems.
This study of data modeling is vital to the success of the overall project. Afterall, the main asset of your company is its data. Attached, please find the following: 1) Entities/Legend 2) Context Data Model 3) Relational Data Diagram 4) Narrative Please do not hesitate to contact me to arrange a meeting regarding this phase or on any concerns you might have. Sincerely, Project Lead Relational Data Diagram Context Data Model 1. Agents – An agent is assigned to many policies. This representative maintains the control of the policies and accordingly, the policies these agents underwrite is directly assigned to the writing agent.
2. Claims – A particular claim is related to two instances in this model – Estimate and Policy Holder. Under one claim, there can be multiple estimates as to a particular claim. It is also the standard that an estimate is incurred when a claim is filed, thus making the Estimate a dependent entity. As to the Policy Holder, a claim is dependent where it does not come to a fruition without having a policy holder filing it. 3. Estimate – This type of data is directly related to the activity of a claim.
There is at least one estimate recor …