Digital Transformation Plan – Phase #1 - Part 2

Individual Assignment

University Canada West

CMPT 641 (HBD-FALL23-70) – Digital Transformation

Dr. Mahmood Mortazavi Dehkordi

CMPT 641 – Assignment #2 - Digital Transformation Plan – Phase #1 - Part 2

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Assignment #2 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 homeowner’s 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.

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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 insurer’s 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.

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 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

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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

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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

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Digital Transformation Plan
“Phase 1 – Part 2”

First Page

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Digital Transformation Project Vision..........................................................................................................7
Vision.......................................................................................................................................................8
Current State Description............................................................................................................................8
Overview..................................................................................................................................................9
Enterprise Architecture (AS IS) for the manual Work processes..............................................................9
...................................................................................................................................................................10
References.................................................................................................................................................12

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Digital Transformation Project Vision
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 (IoT, AI, Blockchain)

Capabilities Scope Expected Value
Device Management Shared service center Enhanced the velocity of document
(Document Processing), processing, minimized errors, and heightened
Sales overall efficacy in the management of legally
Claims Processing binding documents.
Underwriting Enhanced agility, customized customer
Customer relations engagements, and optimized sales procedures.
Marketing Improved market intelligence, tailored
product offerings, and enhanced risk
evaluation.
Device Data Analysis Underwriting Enhanced underwriting judgments, precise
Claims risk assessment, and optimized claims
Marketing handling.
Investment Optimized marketing efficiency, heightened
Customer Relations customer interaction, and enhanced customer
Actuarial contentment.
Enhanced investment strategies, heightened
returns, and enhanced risk management
Enhanced pricing accuracy, superior risk
assessment, and heightened financial stability.
Business Insight Claims Enhanced claims decision-making, expedited
Actuarial & Marketing in processing times, and heightened customer
designing products satisfaction.
Investment Enhanced investment choices, heightened
profitability, and superior risk mitigation.
Collect feedback and offer guidance based on
Internet of Things (IoT) observations.
Classification Shared service center The ability to classify documents enables
Underwriting automatic categorization and organization,
Claims thereby optimizing document processing.
Marketing The objective is to enhance precision and
productivity by automatically classifying and
examining underwriting and claims data.

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 Customer data classification for the purpose
of tailoring marketing strategies and
enhancing customer relationship
management.
Clustering Marketing Enhanced marketing campaigns tailored to
Sales individual preferences, refined customer
Customer Relations segmentation, and heightened sales
Underwriting conversion rates.
Actuarial Augmented customer satisfaction, tailored
customer assistance, and enhanced claims
administration.
Utilize clustering techniques to categorize
comparable risks, enhancing the precision of
underwriting and enabling customized
pricing.
Utilize clustering techniques to enhance the
accuracy of risk factor analysis, resulting in
improved pricing models and determinations
of reserve levels.
Predication Claims Integrate predictive capabilities to anticipate
Underwriting claim patterns, facilitating proactive actions in
Actuarial the processing of claims.
Sales Employ predictive abilities to anticipate
Customer Relations market trends, evaluate forthcoming risks, and
Investment improve pricing and reserve level
determinations.
Utilize predictive capabilities to anticipate
customer requirements, preferences, and
market demand in order to enhance the
precision of marketing and sales initiatives.
Utilize predictive abilities to anticipate market
trends and optimize investment strategies for
optimal returns.
Recommendation Sales Integrate recommendation functionalities to
Customer Relations deliver customized product suggestions to
Marketing customers during sales interactions and
Underwriting marketing campaigns.
Employ recommendation functionalities to
provide tailored product recommendations in
marketing campaigns, taking into account
customer preferences and behaviours.
Utilize recommendation capabilities to
propose appropriate insurance products
according to customer profiles and risk
evaluations.
Utilize recommendation capabilities to offer

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 tailored suggestions to customers, enhancing
their involvement and contentment.
Cognition Claims Integrate cognitive abilities to automate the
Marketing comprehension and manipulation of intricate
Customer Relations claims data, enhancing the effectiveness of
Sales claims processing.
Actuarial Enhance sales procedures by utilizing
cognitive analysis to gain deep understanding
of customer requirements.
Utilize cognitive abilities to examine market
trends, consumer behaviours, and competitor
strategies in order to enhance marketing
planning with better-informed decisions.
Utilize cognitive abilities to examine intricate
risk factors, enhancing the precision of
actuarial models and pricing strategies.
Private Distributed Shared service center Trustworthy handling of documents and
Ledger (Document Processing), claims, mitigating the likelihood of fraudulent
Actuarial activities and guaranteeing the accuracy and
Underwriting consistency of data.
Claims Facilitate secure and transparent financial
Finance transactions, guaranteeing precision in
Investment premium collection and claims payment.
Ensure secure and transparent documentation
of underwriting decisions, pricing strategies,
and actuarial calculations.
Transparent and secure monitoring of
investment transactions, enhancing
accountability and mitigating the potential for
fraudulent activities.
Public Distributed Shared service center Transparent and traceable documentation of
Ledger (Document Processing) customer interactions and claims, thereby
Claims bolstering customer confidence and
Customer Relations establishing an auditable record.
Finance Enhance transparency and traceability in
Investment financial transactions and investment
management, thereby bolstering investor trust
and ensuring adherence to regulatory
requirements.
Transparent and unalterable storage of claims
data and document processing activities. This
will improve accountability and mitigate the
risks of fraudulent activities.

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Current State Description
Overview
Please briefly explain

- The role of enterprise architecture in a digital transformation project.

Enterprise architecture serves as a comprehensive blueprint for the digital transformation of a

company. It facilitates the organization and integration of various components of the
enterprise, ensuring their seamless collaboration. Similar to a map, it illustrates the current
position of the company and its desired trajectory in the digital realm. Enterprise architecture
facilitates the selection of appropriate technology, establishment of streamlined processes,
and integration of all components.
It serves as the fundamental support for the digital transformations, ensuring their
implementation in an intelligent and systematic manner. Enterprise architecture serves as a
knowledgeable advisor that assists a company in effectively and efficiently transitioning to a
more digital and streamlined state.

Enterprise Architecture (AS IS) for the manual Work processes

Please fill Table 2

- Business Architecture Screenshot: Draw the Business Architecture of business process 1 using
Visio and put the screenshot in the table.
- Data Architecture Screenshot: Draw the Data Architecture of business process 1 using Visio and
put the screenshot in the table.
- Application Architecture Screenshot: Draw the Application Architecture of business process 1
using Visio and put the screenshot in the table.
Please provide your reasons for each Items you mentioned Table 2

Table 2: Enterprise Architecture for Business Process #1

Business Architecture Screenshot
The below business architecture is based on the process 1 which describes the stage of
insurance application to policy delivery. The same were used in Phase 1 part 1 of the
assignment. Business Architecture is a specialized area of enterprise architecture that
specifically deals with the arrangement and structure of an organization's business elements.

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 Data Architecture Screenshot

The Data architecture is based on the arrangement and use of data resources used in the
insurance process.

Application Architecture Screenshot

The application architecture shows various apps and software (technology) used in the process
of Insurance policy issuance.

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Please fill Table 3

- Business Architecture Screenshot: Draw the Business Architecture of business process 2 using
Visio and put the screenshot in the table.
- Data Architecture Screenshot: Draw the Data Architecture of business process 2 using Visio and
put the screenshot in the table.
- Application Architecture Screenshot: Draw the Application Architecture of business process 2
using Visio and put the screenshot in the table.
Please provide your reasons for each Items you mentioned Table 3

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 Table 3: Enterprise Architecture for Business Process #2
Business Architecture Screenshot

The below business architecture is based on the process 2 which describes the process of
claims raising to claim settlement between the insurer and the insured.

Data Architecture Screenshot

The Data architecture is based on the arrangement and use of data resources used in the claims
handling and settlement process.

Application Architecture Screenshot

The application architecture shows various apps and software (technology) used in the process
of claims raising and settlement.

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References
[1] Doest, H., Iacob, M.-E., Lankhorst, M.M. (Ed.) & van Leeuwen, D.: Viewpoints Functionality and
Examples, ArchiMate Deliverable D3.4.1a v2, TI/RS/2003/091, Telematica Instituut, Enschede, The
Netherlands, 2004.
[2] van den Berg, H., Moelaert, F.: PRO-FIT Autoschade Open Case Testbed, Testbed Deliverable
WP3/N004/V001, TRC, Enschede, The Netherlands, 1997.
[3] Asthana, R. (2023, May 2). Claim settlement process: How to ensure your claims are settled. Forbes.
https://www.forbes.com/advisor/in/insurance/claim-settlement-process/

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