This article was originally published in the Summer 2018 issue of The Record.
Established industries, such as the insurance sector, are often associated with being secure, reliable, responsible and trusted. Although a few individual companies may not fit this description, overall people trust the insurance sector because of its positive legacy. However, there’s a flip side to being in business for decades. Often legacy infrastructure means that systems and applications have been bolted on over time and strung together like a bowl of tightly woven spaghetti that cannot be easily untangled.
Today is the age of the customer and the 24/7 convenience, mobile and self-serve solutions demanded by the “I want it when I want it and how I want it” society rarely match up with legacy systems. For years, insurance companies have struggled to overcome the disparity between the systems they have and the ones they need to best serve their customers. This challenge is not easily fixed. Often product vendors try to convince companies that the only way is to completely replace these legacy systems and applications. Not only is this a costly and time-consuming undertaking, but it may also hinge on unrealistic expectations that can result in failure.
DXC Technology often recommends that clients adopt an incremental approach to modernisation, rather than ‘rip and replace’ tactics. Transformation is an ongoing process that enables insurance companies to leverage their existing infrastructure investments, rather than scratching everything they’ve done before. By focusing on key areas that can improve the customer experience – such as enhancing user interfaces, getting the right data to the right people, or automating processes – companies can implement initiatives that deliver the biggest impact.
The key is to start small and build on this success. Companies should find a technology partner that has strong expertise and solutions that can provide enhanced functionality and an improved customer experience, without requiring them to rip out and replace entire legacy systems all at once. Working with a partner that can integrate solutions without completely disrupting the existing IT environment can help companies to reduce risk.
Implementing technologies incrementally can help companies enhance the customer experience and thereby increase revenue. It also decreases expenses because companies can eliminate manual workarounds and exception processing, which contributes directly to the bottom line and ensures success. Once a specific improvement has been successfully completed, the company can work with their partner to map their ongoing transformation journey.
Lori Murray is global product leader for Banking, Capital Markets and Microsoft Business Applications at DXC Technology
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