E Business : An Effective Strategy Essay

1104 Words Oct 5th, 2015 5 Pages
In today’s market driven environment, technological needs are exponentially booming. As a result, IT continues to transform organizations in terms of service, infrastructure, performance, management, and customer aspect. Furthermore, there has been a drastic increase in the tech savvy consumers, who heavily rely on IT for their day-to-day needs. All these changes lead to the widespread adaptation of e-business as an effective strategy. Additionally, e-business not only promises to expedite the work process, but also to make it cost-efficient (Chatterjee, Segars, & Watson, 2006). Therefore, Northern Insurance implemented an e-business strategy by making a huge investment on the Technical Underwriting Financial System (TUFS) (McKeen & Smith, 2012). However, TUFS was never fully implemented, due to which it faced many challenges (McKeen & Smith, 2012).
Background the Investment and Organization
Northern Insurance made one of the largest investments towards TUFS, for “streamlining the underwriting processes and providing strategic e-business capabilities” (McKeen & Smith, 2012, p. 67). Based on both the investment as well as maintenance cost, it was estimated that almost $4 million was spent by Northern Insurance (McKeen & Smith, 2012). However, even after two years of implementation there was no cost saving results, as previously predicted. Therefore, the CIO of the organization, Martin Drysdale’s position was at stake due to such financial loss (McKeen & Smith, 2012).…

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