The first question for all insurers is – Do we need to change? If the answer is yes, then defining the appropriate strategy for the company is essential. Insurers must explore the possibilities of the future enterprise and begin with clear, razor sharp business strategies and plans that are linked to and drive the business and IT roadmaps. Insurers must define what is important to achieve, define success and then track and measure with key performance indicators.
The market leaders continue to execute against aggressive and bold strategies. They are clearly looking to seize the changing markets as an opportunity to grow and expand. They view their business capabilities through the eyes of their customers vs. the traditional “front and back” office business processes.
The following are clips from some of their strategies:
·“…grow faster than the market by outperforming our peer group”
·“…continue to be top of mind with key distributors and grow”
·“…focus on distributors and customers while maintaining excellence in customer service”
·“…be the most diversified company in terms of products, distribution channels, and geographic footprint”
·“…deliver operating income that exceeds shareholder’s expectations”
·“…break the bonds of market cycles”
Looking across the broad industry, strategies may appear similar, but the reality is, they are different. It’s typically the unique combination of financials, customer service, product/price development, distribution and internal operations philosophies that creates the magic sauce of each insurer. It is also in the smooth execution. This is why it is so critical to have clearly defined and articulated strategies that lay the foundation for redesigning the business processes and align to the right technology investments.
This is an excerpt from a recent whitepaper “Insurance: Realizing the Full Potential of Change Shifting the mindset to create dynamic business models by leveraging BPM and SOA as true enablers” authored by Deb Smallwood & Cindy Maike, Co-founders of Smallwood Maike & Associates and published and sponsored by IBM. Contact Deb Smallwood at dsmallwood@smallwoodmaike.com for a copy.
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