Northern Insurance: An E-Business Strategy

1104 Words 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, …show more content…
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). Consequently, he had a meeting with Melissa Freeman, who was the organization’s CFO, to further investigate this matter, and possibly come up with a viable solution that could limit such issues in the future (McKeen & Smith, …show more content…
The only difference was that with time, the problems instead of getting resolved actually increased (McKeen & Smith, 2012). One of the challenging factor is that TUFS is not being utilized the way it should be, for instance majority of the staff are still heavily relying on the old underwriting procedure instead of this efficient underwriting system called the TUFS (McKeen & Smith, 2012). As a result, the staff is not successfully expediting their underwriting process with this e-business methodology, as they are resisting the fully use of TUFS, and only use it as a back up or a secondary source (McKeen & Smith, 2012). The staff was clearly relying on the previous way of research than looking the information online through the TUFS program. Overtime, this procedure leads to insufficient outcomes. Additionally, TUFS being such an expensive investment has been experiencing some on going technical issues since its initial installment, which results in extra maintenance expenses (McKeen & Smith, 2012). As a downfall, the IT department has consistently been investing to resolve this issue with no major

Related Documents

Related Topics