Riding the Whirlwind

Strategic Interactive Marketing for the Insurance Industry

Key Points:

The comprehensive Implementation section provides practical ideas for strategic interactive marketing.

2.5 Implementation

2.5.1 The Implementation section provides practical ideas for strategic interactive marketing. It includes:
 

• the SIM Framework to assist companies with formulating their strategy and development.
• the use of the Customer Relationship Cycle with a 4 stage framework for enhancing product and service delivery and growing customer's life time values.
• options for assessing and handling the impact on existing distribution channels.

These include:

• the SIM Framework.
• the impact on existing distribution channels.
• use of a Business Architecture.
• change management issues.
• the need for a marketing orientation.
• organisational issues.
• the wide variety of skills required.

- Differentiation Strategy -
 

• using the strengths of the new mediums to pursue a differentiation strategy.
• assessing and handling the promotional issues including the physical attributes of the products and services.
• use of a Business Architecture to provide cohesion together with descriptions of three major architectures.
• the organisational processes that deliver products and services to customers.
• the need for an integrated approach to deliver Mass Personalisation or Customisation.
• options for completely redesigning or incrementally improving processes. Process design issues and techniques for improving processes.
• use of the Universal Modelling Language (UML) within a RAD environment for defining user's requirements and quickly building quality, yet complex systems.
• a review of the limits that might be experienced with suggested antidotes.
• the issues of effective change management including a look at the relationship marketing failures at MCI.
• the need for a marketing orientation that permeates throughout the organisation. The requirement for a multi-skilled workforce and the likely significant impact on managers.
• organisational forms, motivation and rewards, and the need for cultural change.
• the particular challenges for Systems and IT Managers.
• the use of external support and the possible need for over 11 types of skills.

The following 3 key building blocks are described in some detail:

• Interactive Delivery Mechanisms.
• Object Technology.
• Data Storage, Analysis and Mining.

- 3 Key Building Blocks -

2.5.2 The Implementation section then covers in-depth the 3 key technologies for interactive delivery: Interactive Delivery Mechanisms, Object Technology, and Data Storage, Analysis and Mining.

• Interactive Delivery Mechanisms looks at integrating the substantial amounts of data organisations have acquired, with the processing activities to support interactivity, and the wide variety of mediums that customers will use.
   
• Object Technology (OT) looks at the business and IT benefits of using this technology. Case examples are given from the insurance industry. It identifies the reasons for its slow acceptance and how that is now changing with the developments of UML, and comprehensive software and support offerings. Examples of these are provided including the major insurance architectures and frameworks from IBM and Andersen Consulting.
  
• Data Storage, Analysis and Mining looks at how financial services companies are exploiting their customer databases. Data Mining is explained and its benefits described along with case studies from the insurance industry. Data Visualisation looks at a method of reporting the output from data mining and describes the applied research work at South Bank University.

Finally the implementation section looks at packages, outsourcing and partnerships.

2.5.3 Alternatives, or complementary approaches to implementation are explored:

• Package solutions give faster and lower cost implementation. A number of package for electronic commerce are described. In particular there is a description of BroadVision's package that also supports 1-to-1 Marketing as well as electronic commerce.
  
• Outsourcing some or all processes is another option and there is mention of a number of example suppliers. One full service organisation, is the UK based Interactive Financial Services.
  
• Partnerships are an opportunity to share resources, ideas, and risks and mention is made of a number of suppliers who are promoting this method. Opportunities for companies to exploit the applied research at South Bank University are described.