Four Worst Practices for Leveraging P&C Information When Core Systems Change: Part 1
#1: Fearfully Focus on “Go Live”
Previously, I discussed the importance of BI and analytics as part of a core systems upgrade initiavtive. In my next few posts, I’ll focus on specific worst practices to avoid when defining and implementing your strategy.
The first pitfall is when the core system upgrade becomes all-consuming, causing tremendous stress for both business and IT leaders. Executives who’ve lived through an upgrade in the past will be nervous because they know that disaster can strike at any time during the process. Those who have never experienced an upgrade before are probably even more nervous because they don’t know what to expect.
It’s a risky venture, especially when you consider that new core systems must be integrated with older ones, as well as those acquired through mergers, to serve the business in a unified way. The time and cost involved can lead those in charge to avoid BI, analytics, and other add-ons in an effort to hit the all-important “go live” target.
Although upgrades are complex, and there is a lot on the line, this narrow focus on only the upgrade itself comes at a price. Without incorporating transformational projects into the upgrade initiative, like a solid BI and analytics strategy, it will be hard to demonstrate immediate benefit from the new system(s) and run a profitable business immediately after the go live date.
In order drive profitability, innovation, and customer experience, insurers need to use their newly upgraded systems to capture new data, link to data from outside the enterprise, and derive valuable insights from them – right from day one! A shared vision among business and IT leaders for truly leveraging data will bring the kind of results that will justify the investment in new core systems.
Next time, I’ll highlight yet another worst practice – starting off with massive gaps in BI and analytics.
Don’t forget to sign up for our upcoming webinar, Turning Transaction Data Into Pervasive Business Value on June 25th.