Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CMPT 641 Assignment #1 - Digital Transformation Plan Phase #1 Assignment #1 Guideline: For the first assignment of CMPT 641 course, we need to develop

CMPT 641 Assignment #1 - Digital Transformation Plan Phase #1 Assignment #1 Guideline: For the first assignment of CMPT 641 course, we need to develop the first phase of the digital transformation plan for a company called ArchiSurance [1,2]. ArchiSurance [1,2] works in the insurance industry and they like to improve their functionalities by using digital technologies capabilities. They hired us as a business analysis team to suggest a digital transformation plan. We need to consider the following steps to develop the first phase of the plan 1- Understanding the business requirements. 2- Developing the vision of the digital transformation project 3- Describing the current state of the company 1 - Understanding the Business Requirements ArchiSurance [1,2] is the result of a merger of three previously independent insurance companies: Home & Away, specializing in homeowners insurance and travel insurance PRO-FIT, specializing in auto insurance Legally Yours, specializing in legal expense insurance The company now consists of three divisions with the same names and headquarters as their independent predecessors. ArchiSurance was formed to take advantage of numerous synergies between the three organizations. While the three pre-merger companies sold different types of insurance, they had similar business models. All three sold direct to consumers and businesses through the web, email, telephone, and postal mail channels. Although based in different cities, each was completely housed in a modern office complex in a major metropolitan area. Each had loyal customer bases and strong reputations for integrity, value, service, and financial stability. All three companies were privately held by interlocking groups of institutional and individual investors. The lead investors of the three companies began merger talks after they noticed that lower-cost competitors were entering their markets, that there were new opportunities in high-growth regions, and that each company required significant new IT investments to remain competitive. They realized that only a larger, combined company could simultaneously control its costs, maintain its customer satisfaction, invest in new technology, and take advantage of emerging markets with high growth potential. The merger negotiations and regulatory approvals took 18 months, but two years ago the papers were signed and the merger was complete. The new company offers all the insurance products of the three pre-merger companies, and intends to frequently adjust its offerings in response to changing market conditions. Like its three predecessors, ArchiSurance sells directly to customers via web, email, telephone, and postal mail channels, and indirectly via intermediaries. The inflexibility of the ArchiSurance current state (business processes, data, application) makes it difficult to adapt to changes in business conditions. Partly as a result of the merger, the application landscape has become scattered, resulting in data redundancy and functional overlap, as well as point-to-point application integration using a variety of data formats and methods. These problems cause internal instabilities, increased application maintenance costs, and obstacles to sharing information across the company and with partners. Consequently, the IT department has a sizable list of work requests. ArchiSurance top management is very concerned about the list, particularly an unmet need to share information automatically with high-volume contracted sales partners and influential insurance consultants. The ArchiSurance lead investors and CEO support these initiatives on the condition that all changes are invisible to ArchiSurance customers and partners. The insurers products and services must not be affected, and all customer and partner interactions must proceed uninterrupted and unchanged. As part of this effort, the technical infrastructure will also be simplified. The separate back-office servers will be replaced by a shared server cluster located in the data center at Home & Away headquarters. However, to ensure business continuity, there will also be a back-up server cluster located in the data center at PRO-FIT headquarters. In addition to the more immediate goals related to post-merger integration, ArchiSurance also sees the rapid pace of technology as both a challenge and an opportunity. It wants to embark on a Digital Transformation and has defined a new Digital Customer Intimacy strategy, which employs a combination of Digital technologies. ArchiSurance intends to acquire more detailed customer data and use it to improve customer interaction and satisfaction, and to adjust insurance premiums based on risk. To this end, for insurance products sold to consumers, ArchiSurance intends to use data from smart, connected devices such as fitness trackers, vehicle tracking systems, or home automation gateways. In various B2B markets ArchiSurance intends to use data from sources such as fleet management systems, energy networks, in-store RFID devices, or smart building sensors. Ultimately, this may result in real-time insurance products where customers receive direct feedback on the financial consequences of their behavior, and advice on adjusting this behavior to lower their insurance premium. After the merger, ArchiSurance set up a shared front-office as a multi-channel contact center for sales and customer service, with a primary contact center at the pre-merger headquarters of Home & Away. There are still three separate back-offices that handle the insurance products of the three original companies. A Shared Service Center (SSC) has been established for document processing at the pre-merger headquarters of PROFIT. The center administers the central document repository as well as all automated document workflows. In addition, it performs all scanning, printing, and archiving for legally binding documents as they enter or leave ArchiSurance. To ensure business continuity and handle periods of peak activity, the SSC also hosts trained personnel and equipment to perform the functions of the front-office, which is similarly prepared to reciprocate. The organization structure of the company is shown in Figure 1. Figure 1: ArchiSurance Organization Structure The main business functions distinguished by ArchiSurance are: Marketing, which studies, plans, promotes, and manages products and market segments, and works with Actuarial to design products Actuarial, which determines product prices and reserve levels, works with marketing to design new products, and analyzes enterprise risk Customer Relations, which includes the interactions between ArchiSurance and its customers; it handles customer questions, captures incoming claims, and conducts direct marketing campaigns Underwriting, which sets prices for individual policies and generates insurance proposals and policies Claims, which formulates and executes a response to each claim against an ArchiSurance policy Sales, which manages a pipeline of opportunities, and closes contracts with customers Finance, which handles regular premium collection and the payment of insurance claims Document Processing, which supports other functions through document scanning, printing, and archiving Investment Management, which manages financial and real estate assets for maximum returns within corporate and regulatory liquidity and risk constraints Some of these business functions are replicated in the three divisional back-offices of ArchiSurance. Figure 2 shows the business functions of ArchiSurance. Figure 2: Business Functions of ArchiSurance Figure 3 shows the two central business processes of ArchiSurance, issue new policy, which is performed when selling a new insurance product, and handle claim, which is performed when a damage claim has been received. While the details of these processes may differ for the different types of insurance product, the main steps are the same. Figure 3: Two business processes of ArchiSurance 2 Developing the vision of the digital transformation project Please complete this Section in the digital transformation plan template. 3 Describing the current state of the company Please complete this Section in the digital transformation plan template. 4 Follow the rubric (page 10) for this assignment Digital Transformation Plan Phase 1 First Page Digital Transformation Project Vision 7 Overview 8 Vision 8 Current State Description 9 Overview 9 Process mapping for the manual Work processes 9 9 References 11 Digital Transformation Project Vision Overview Please briefly explain - The role and importance of the digital transformation project for this company. - The steps of the digital transformation project. - The role of capabilities in a digital transformation project. Vision Please fill Table 1 - Scope: Identify which part of this company (business process, business function, business organization units) will be improved by each capability) - Expected value: Identify the values the company expects to achieve by implementing each capability Please provide your reasons for each Items you mentioned Table 1 Table 1: Expected values of Digital Capabilities (Big Data Analytics, Cloud Computing) Capabilities Scope Expected Value Structured Data Management Business process Business function Business organization unit Value #1 Value #2 Semi-Structured Data Management Unstructured Data Management Data Validation Data Cleaning Distributed Computing Analytical Database ETL Master Data Management Reference Data Management On Demand Provisioning Dynamic Scaling Cloud Bursting BC/DR Current State Description Overview Please briefly explain - The role of manual work process mapping in a digital transformation project. - The reasons for identifying the data items and software applications for each step of a manual work process Process mapping for the manual Work processes Please fill Table 2 - Step: The name of the step - Data Item: Which data/information is used for the step. - Application: Which software application is used for the step. Please provide your reasons for each Items you mentioned Table 2 Table 2: Process Mapping for Business Process #1 Step Data Item Application Please fill Table 3 - Step: The name of the step - Data Item: Which data/information is used for the step. - Application: Which software application is used for the step. Please provide your reasons for each Items you mentioned Table 2 Table 3: Process Mapping for Business Process #2 Step Data Item Application

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Risk Management

Authors: Genserik Meyer, Thierry, Reniers

3rd Edition

311066531X, 978-3110665314

More Books

Students also viewed these General Management questions

Question

How does stress increase or reduce my effectiveness?

Answered: 1 week ago

Question

Explain the meaning of ergonomics.

Answered: 1 week ago