NTUC Case Study

Good Essays
NTUC is one of the largest insurers in Singapore, it operates in a highly competitive market. Founded in 1970 as a co-operative to ensure low paid workers have insurance, which fits well in Singapore’s culture of social welfare where people are required to save to take care of their needs themselves, which is an alternative to the European style welfare state. (Goodman, 2015)

Types of Information systems
NTUC used decade’s old business processes and IT systems, with a manual paper based process supported by legacy HP 3000 mainframe running COBOL. The Mainframe had the following modules (Core Insurance application, Accounting system and MIS).
Problems (Process based)
• Overly complex, resource intensive, paper based business process with too
…show more content…
Problems (IT based)
The IT system used by NTUC was hampering their ability to grow, and affected their competitive advantage. In an emerging Digital world customer experience, the ability to utilise data and a flexible Digital platform are key to a successful business model. (Weill & Woerner, 2015)

• The Mainframe System frequently broke down with 3 major hardware failures recorded in the study which resulted in 6 full days of downtime.
• Backup features were limited, HP 3000 backup system allowed restoration to only up to the previous day's backup data. If the daily backup was not completed at the end of the day, the affected day's data would be lost, and costly and tedious reconciliation would be needed to bring the data up to date, once taking several months to restore the data loss.
• The COBOL systems was difficult to develop and service, the complexity resulted in delays of releasing new business capabilities.
• Batch oriented, information not available in real-time which hampered decision making as well as affecting service
…show more content…
This change allowed them to tackle the following key strategic objectives:
• Operational excellence - ability to access system from anywhere improves the ability of mobile workforce to sell products and improve customer experience
• New products, services and business models - Flexibility and agility in producing new products will help competitiveness
• Customer & supplier intimacy
• Improved decision making
(Laudon & Laudon, 2013)

I believe the “Orange” strategy could not have been possible with the legacy systems for a number of reasons. The legacy systems were difficult to change and hampered innovation which would have prevented the core business model as well as the supplementary strategies “Orange Eye” and “Orange Force”.
The key to the strategy was a customer centric view, which relied in the ability to know their customers and their needs, which required a centralised CRM system with analytical capabilities
The complexity of the business process and manual nature hampered growth and left NTUC exposed to a number of external forces:
• New Entrants
• New Functionality:
• Margins
• Consumer

Related Documents

  • Decent Essays

    Mensa Situational Analysis

    • 1432 Words
    • 6 Pages

    Mensa Situational Analysis: Mensa Inc. 5 year business strategic plan will comprise of numerous reconstruction efforts in order to address the major strategic management issues faced by the company. The company has issues with the development of numerous poorly executed strategic plans with high operating cost, poor resource management, and the inability to gain adequate financial control. The packaging sector was once the cash cow for Mensa, but the lack of competitors in the industry and growing pressure from customers resulted in a negative competitive position. Mensa once invested in numerous businesses (communication, appliances, etc.) but sold off many due to poor human resources and financial issues.…

    • 1432 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    In addition to this, the new invoicing system turned out to be a major downgrade in terms of the number of transactions it could support per day. This crippled operations to some extent. Migration of the physical inventory was also not done to precision meaning the $40million projected savings were not realized as planned (“FoxMeyer case”, n.d). Implementation was delayed and the final product was performing way below par so the business became unsustainable. These errors caused FoxMeyer to dig deeper into their pockets trying to keep the business afloat, causing them to spend much more than they had budgeted for.…

    • 1397 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Typically the most difficult tasks involve providing training to the employees that are responsible for using, operating or receiving data from the upgraded information systems. In this situation in particular, one of the major concerns for these companies was that the information system updates would cause defects in the system and also that the time that it would take to upgrade the reservation system could cause a gap in services to the user. An outage in their web services would cause major setbacks for both companies and neither of them could afford the loss. The text states that WestJet had been running practice tests and training…

    • 883 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store. If you have a question about a product good luck trying to hunt someone down to assist you with your inqucdtrt;qwerkqwe’r233343240234l’iry. Often times you will feel as if you are the only one in the store. This is due to the fact that TheStore has trimmed the company employees down below an acceptable level for conducting normal business operations. The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store.…

    • 52230 Words
    • 209 Pages
    Decent Essays
  • Decent Essays

    According to Charles Atkinson in his article, entitled, Inventory Management Review, Dell is highlighted as a company with low inventory levels. A decrease in inventory over time, as seen in following chart, had a great effect on Dell’s overall performance because computers depreciate at a very high rate and if a computer company is sitting on a lot of inventory, the losses are great. Dell also uses the Just in Time inventory method to make their manufacturing process a success. However, Dell has a different approach to using this method, they influence their suppliers in order to reach their JIT goals. One thing that sets Dell apart from everyone else is that they have short lead times for their customers.…

    • 2008 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    Altera Case Study

    • 1833 Words
    • 8 Pages

    The high tech market of semiconductor devices is highly volatile and forecasts are dependable only to a certain extent as technological breakthroughs would shift the demand in entirely new direction. Customers need to have flexibility in terms of owning inventories or writing- off orders during such market changes. The supply chain of Altera before and after implementing the strategy is shown below: Altera could revamp its inventory through little changes in its supply chain strategy. By moving the push-pull boundary upstream, the company could save millions of dollars. But the move was well though off, as the processes which were now part of the pull from the customers’ side involved a short lead time.…

    • 1833 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    • This model is often less cost effective, as its time consuming and expensive to make any changes in later stages. Once the product is developed and if any failure occurs then the cost of fixing such issues is very high. • The negative aspect of this model is that a huge amount of time is wasted. For example phase II cannot be completed before completion of phase I which means time of software developers is wasted while designers are still designing the softwares designs in first phase. • This model involves high amounts of risks and uncertainty, as the testing period comes quite late in the development process, flaws are being detected so…

    • 1043 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Once the idea is initiated, in the process of getting into the market, entrepreneurs lose sight of what they actually started with in the first place. This leads to failures and major damages to most of the ventures. For an idea to be successful, adapting to the varied needs and requirements of the market, while keeping in mind the vision and the mission statements of the company without losing ones’ integrity in the process needs to be taken care of. Through the first few years of the journey, it’s going to be a dangerous terrain on which one would walk, this is only because proving to the world about ones capabilities and leaving a mark in the world is no easy task and requires many sleepless nights with many new and improving ideas, most of them rather being impromptu ones. The world is being pretty generous with start-ups these days since the number of entrepreneurial entries have increased manifold in the recent times and these entries have proven to be very successful in taming the market.…

    • 1918 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    When projects run late, testing always suffers, with often disastrous results. One example mentioned in the article pertained to the revision on a piece of Odyssey, a telco program used by AT&T that was to work with the new Siebel 7 system. Various teams were responsible for different aspects of the project, one of which entailed changing code on the Odyssey system. Since the company was so pressured to complete the project, teams within the project did not consult with the other teams. As one team changed the code another team would run tests on new programming that was dependent upon the old code and was now meaningless.…

    • 1087 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Effective marketing requires an integrated marketing communication strategy balanced with a differentiated advertising campaign that accommodates Global’s different products. Using traditional marketing and incorporating social media marketing will attain this balance. Traditional and social media marketing cannot be used exclusive on one another. Both are needed to achieve Global Tech marketing goals and to ensure the success of the company and its brands (Manternach, 2011). By following the recommendations made in this paper, Global Tech Computers will reach high global brand awareness, strength, and loyalty, reach more consumers, achieve message stability, and build a reputation for being beneficial to consumers and to their lives.…

    • 1262 Words
    • 6 Pages
    Decent Essays