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PGP II (2010-12)
CIGNA Property and Casualty Reengineering (A)
Chandra Mohan | Gurpreet Singh Bhalla | Kapil Dhaka | Shashikant Kewale | Vishal Nema
Process of classifying. quality of underwriting.Cigna P&C • A division with employee strength of 6500 and revenues of $4 billion • Principal factors in P&C products were Pricing. policyholder services. and product differentiation and availability • Underwriting.Overview. and transferring solicited risk prior to issuing a policy • Combined ratio = Loss ratio + Expense ratio • IT was used since 1960 and a budget of $85 m was allocated to IT in 1993-94 . rating. operating efficiencies.
HR. claims and producer relations – Introduce significant structural changes in order to identify the problems and focus on the solution . underwriting.Gerry Isom's Vision • Vision: To be one of the top-performing specialist property and casualty companies in the industry – Focus was to be placed on profitability instead of revenues – Expand performance evaluation from strictly financial measures to include marketing.
Reengineering Initiative • Transformation and Reengineering initiatives were carried out in as follows – Significant structural change.President’s Executive Counsil – In discussion with Valerio.divided P&C into 3 new divisions and further into 18 business units – Formed a new executive team. came up with reengineering plan • Renaissance was to contribute by its IT approach and its Balanced Scorecard methodology • Gemini was to do a thorough analysis and help in implementing Business Process Redesign . head of Transformation.
Uniqueness & Innovation • Mapping and Analysis of As-Is Process – In depth interviews of more than 100 employees – Disconnects and processes to be re-engineered identified • Formation of cross sectional teams of best performers to design and implement the processes • Incremental adaptation and sharing of knowledge from different businesses minimizing cost and risk • Emphasis on what the company wants to be and not on the technical feasability of the processes • Transforming the company's IT way of thinking through in sourcing • Dissemination of unstructured information through Knowledge Management System .Reengineering approach .
Role of Client-Server architecture • Different kind of knowledge workers required specific support by IT. for which client/server approach was the best choice • Client/ server architecture permitted data to be managed as a common source and to be accessed by a variety of application according to their particular requirement • Shared data resource could be tailored to the information needs of individual workers by customizing their applications • This system provided three types of resources to support a worker’s decision making: a) b) c) Information necessary to drive solutions Communication infrastructure to make information accessible Application to transform information into worker knowledge .
Dealing with Legacy Systems • CIGNA P&C was intense user of IT and most of the IT budget was allocated to legacy systems • Renaissance strategy in reengineering was to take workers beyond mere access to traditional structured information found in mainframes – Learning and Knowledge core processes building needed to be integrated in each of redesigned process • Legacy systems were assessed and integrated in design on the basis of effectiveness and support to client desktops • Desktop interface was designed specifically to match cognitive model of decision making process • P&C's objective was to new use of networks focused on people and on enhancing communication .
Dealing with Legacy Systems • Impact on Legacy Systems – Did not eliminate all legacy systems – Elimination paced by incremental substitution of new substitute systems – Analyzed to adapt relevant appllications to new requirements – Library of reusable software components was created to reduce code duplication – Refrained from excessive investment – Upgrade was preferred to replacement – IS team opted to use a set of common components when creating various desktops – Core features of desktop retained although configuration changed .
it provided company’s current standing as compared to the management vision .Importance of Balanced Scorecard in the Architecture Design • Importance of Balanced Scorecard to Tier-1 – Sets measures for achieving individual targets – Provides continuous feedback. thus identifying key concern areas and their resolution mechanisms • Importance of Balanced Scorecard to Tier-2 – Links the effectiveness of individual performances to organizational progress – Helped in conceptualizing various cause-and-effect relationships in business processes – Helped the knowledge workers to identify areas where competencies need to be upgraded • Once integrated into the system.
Thank you! .