Riding the Whirlwind

Strategic Interactive Marketing for the Insurance Industry

Key Points:

Particular challenges for Systems and IT Managers include:

• a substantial user base of customers with wide variations in levels of skills and equipment;
• 24 hour operation;
• distributed systems and technology;
• multi-media;
• links to multiple external suppliers and distributors;
• new risks;
• fluctuating capacity demands;
• internationalisation;
• new development techniques;

7.5 Technology Management

7.5.1 It is particularly challenging for Systems and IT Managers when their companies use the new interactive mediums:

• a user community that embraces potentially millions of customers, most of whom have no understanding of technology.
• a wide variety of network devices but no control, or even knowledge, of the exact hardware and software configuration (e.g. users with different browsers).
• 24 hour / 7 days a week operation.
• a trend from information access towards information processing and manipulation as processes extend to customer's equipment, and they become the "clerks".
• the creation and distribution of software to run on the diverse customer equipment (e.g. Java applets).
• the use of multi-media (text, image, animation, sound, video (including netphones & videophones), 2D and 3D worlds).
• delivery of services over unknown public networks.
• delivery of services using the processing resources of suppliers, partners, agents, industry specialists and consortiums (e.g. real-time credit card authorisation).
• risk management (e.g. viruses, hackers, volume hate mail, etc.).
• capacity management (e.g. unknown growth rates and sudden surges in demand after a TV advert.).
• possible need to support multi-languages, multi-currencies, and multi-legislation.
• Rapid Application Development techniques including deploying IT staff to multi-disciplinary departments running operational systems and model office systems simultaneously.

Diagram ommitted due to size.
A wide variety of skills & techniques requires a multi-skilled team.

• new business led architectures;
• new analysis and design skills;
• new techniques and tools;
• new programming languages and hardware;
• new applications skills;
• new data management skills;
• new systems software;
• new paradigms and ways of thinking;
• shortages of skills and knowledge.

- Strategic Business Analysis Skills -

• Strategic business analysis skills to create interactive technology strategy and architecture (e.g. process modelling, value chain analysis).
• New analysis and design skills (e.g. OO, Booch, Jacobson, GUI, Human Computer Interface (HCI), behavioural modelling, web graphics).
• New development techniques and toolsets (e.g. RAD, OO, KBS).
• New programming languages and tools (e.g. HTML, C++, Smalltalk, CGI, Perl, Java scripts, Java).
• New hardware skills (e.g. PC/Internet, I-TV, Web-TV, Kiosks, PDAs, Smartphones, ACD)
• New application skills (e.g. electronic commerce, relationship management, telesales, push software, agent software.
• New data management skills (e.g. OO databases, ORBs, data analysis and data mining tools).
• New hardware & software environments (TCP/IP, PPP, servers, public and private communication links, firewalls, server performance monitoring and reporting, SET security systems, e-mail, conferencing, chat, UseNet).

- New Paradigms -

• New paradigms and new ways of thinking (e.g. push & pull dialogues with customers, component approach, rules based systems, product meta-databases).
• Lack of organisational and industry knowledge making project management difficult (e.g. timescales, costs, scope).
• Critical shortage of staff with the above skills.

Many projects will contract in a wide variety of external support. Over 11 types of organisations may be needed to bring in all the necessary skills.

- Wide Variety of External Support -

7.5.2 The last factor necessitates contracting in a wide variety of external support. In some areas, like programming and creative design, the industry operates very much with individuals on a freelance basis. Other suppliers could come from:

• Advertising Agencies
• PR companies
• Market Researchers
• Marketing Consultancies
• Telemarketing and Telesales
• IT / Business Consultancies
• IT System Houses
• IT Hardware and Software companies
• Specialist Object Technology companies
• Specialist Web designers
• Internet Service Providers (ISPs)

All these are vying for a slice of the action. Some offer their particular specialities, leaving the client to provide overall project management and to blend the disparate disciplines and experiences. Others offer a complete turnkey solution.

3 key technologies are required:

• Interactive Delivery Mechanisms (front-end)
• Object Technology (middleware)
• Data Storage, Analysis and Mining (back-end).

- 3 Key Technologies -

7.5.3 There are 3 key technologies for supporting Relationship Marketing (RM) and Mass Customisation (MC):
 

• Interactive Delivery Mechanisms (front-end)
• Object Technology (middleware)
• Data Storage, Analysis and Mining (back-end)

These 3 key technologies map closely to the new 3 level distributed architectures that are replacing the 2 level client / server model.

3 Level Architecture: Interactive Delivery Mechanisms (front-end), Object Technology (middleware), Data Storage, Analysis and Mining (back-end). (Click diagram to enlarge).

Descriptions of these are in the following sections. Even if an organisation does not wish to embrace Relationship Marketing and Mass Customisation, the effective use of these technologies is still beneficial.