HI6006 Competitive Strategy Editing Service
Delivery in day(s): 4
In order to review the insurance sector and its performance in US captioned link was visited http://www.iii.org/facts_statistics/industry-overview.html. This link helped in order to get an overview of the insurance sector and various processes related with insurance industry in US. This link enabled to obtain data pertaining to insurance companies operating in health and non health segment. This analysis provides an overview of the overall revenue obtained from insurance sector and percentage of this review from the health and non health segment. Total time of 2 days was spent in order to attain information from the above link.
For getting data on the Hartford financial services website named www.thehartford.com was visited which provides key information on the organizational background, structure, processes followed in insurance sector and key personnel associated with the organization. This website was quite useful in order to understand the challenges faced by company in order to carry out their renewal process for insurance. Total time of 2 days was spent in order to explore vital information pertaining to the company and its operations.
Book review was done for Laudon and Laudon 12th edition in order to understand the technology, organization and management framework used for information technology implementation. This helped in order to explore the technology and its usage in the business domain.
In order to gain information on the social media management services link www.crowdsource.com was reviewed which provides information on the usage of social media tool for using the concept in order to implement the business objectives. Further with the help of present link I have reviewed various business usage which can be implemented in the organizational environment for Hartford financial services was reviewed along with potential benefits which would be gained by Hartford along with risk factors which organization is exposed to from the usage of crowd sourcing technique.
I meet with one of my friend who works with social media management organization which provides business solutions for problems faced by the organization into strategic and sales aspect. From the interaction made with the friend, I was able to know various usages of social media tools in order to manage the brand name of the organization along with getting various ideas so as to enhance the business processes.
Finally, I reviewed the entire report which is being presented to the CEO of the organization so as to review ICT strategies of Hartford financial services so as to include various processes & policies parameters required in order to make the efficient business operations for Hartford financial services.
Present report analyses the requirement of information system requirements and implementation of digital innovation in context of Hartford financial services. There are several business challenges faced by the organization in terms of higher business generation, renewal process, compliance and risk management. Information system requirements need to be identified for developing system in the organization which would meet the challenges faced by the organization. Implementation of crowd sourcing in organizational context is important looking into the efficiency in processes, cost effectiveness and generation of new business ideas.
Present report would consider the crowd sourcing concept in order to bring innovation in the digital world. Crowd sourcing can be defined as the process in which large number of people would contribute their services, content and ideas towards a unique project which comes from the online community in present age (Accorsi and Wonnemann, 2011). The enabling element for crowd sourcing is web 2.0 which allow greater interaction among people. For example, Wikipedia is the best example of crowd sourcing technique wherein people contribute their ideas and services. URL has been selected for the present technique i.e. www.CrowdSource.com. The major rationale for consideration of wide applications for crowd sourcing technique is its ability for cost competitive, ease of communication and efficient operations etc.
There are several problems encountered by the business, consumers and society which would be resolved through crowd sourcing technique in public interest. The first issue resolved by crowd sourcing technique would be vast amount of data availability which would be contributed by several users. This data would be freely available for the readers and authenticity would be checked through efficient sources. Further crowd sourcing would allow speedy collection of data for a particular field of study which may not be possible through individual efforts.
Some of the competitive techniques which can be considered near to crowd sourcing technique would include Pinterest, Vine, Ning, Pheed and Hootsuite. All of these techniques are based on the social media applications. Pinterest is the photo sharing portal containing large database of the photo shared by users. Hootsuite is the famous social media management application which is used in order to manage several social media networks through a simple dashboard.
Some of the vital areas in which crowd sourcing technique would be advantageous for Hartford Financial services would include research work, market survey, cost effective approach, business forecasting, product demonstration and development of new ideas. One of the areas of concern for Hartford Financial services is their reason for declining sales and surveys & interview can help to know about the declining sales for company (Atluri et al, 2001).
New ideas can be developed for Hartford financial services in order to speed up the processes and implement ideas for enhancing revenue for the business. Customization & development of products and services for Hartford Financial services would be another important area wherein company need to focus its efforts through crowd sourcing. Looking into the customer needs and wants for the service and product aspect these services & products of the company can be altered so as to offer high degree of customer satisfaction. Hence business impact for Hartford financial would be to attain efficiency in enhancing speed of renewal process while creating new ideas for revenue generation would be the another important business impact. Cost effectiveness and business revenue maximization are the two areas in which crowd sourcing would help Hartford Financial (Breaux and Antón, 2008).
Application of crowd sourcing technique is wide in its scope as it would cover high number of business domains. Considering the financial service domain businesses looking for the new ideas, feedback on their services, market surveys and research work would be the major consumer segment of the crowd sourcing technique. Overall, market for crowd sourcing technique is quite large as all financial service providers would be looking at the crowd sourcing technique for gathering market data. Hence 90 to 100% of the business consumers would be using crowd sourcing technique (Breaux and Antón, 2008). The major feature which would attract business consumers to buy crowd sourcing technique would include cost efficient approach and generation of new ideas. In order to retain these consumers continuous cost efficiency improvement should be done wherein with help of technology it is possible to involve larger number of people in crowd sourcing technique.
Some of the major drawbacks and problems faced in usage of Crowd sourcing technique can be given as under:
Future of the present crowd sourcing technique would largely depend upon the accountability developed through their stakeholders and global economic scenario. In case the global economic scenario remains stable and organizations are able to develop the cost effective model through crowd sourcing then this technique would be having lot of scope for the improvement and application in coming time. Further it is important to involve the stakeholders with high degree of responsibility on them would make it possible to maintain confidentiality of data.
For measuring the success of crowd sourcing technique a matrix consisting of process improvement, financial performance and customer value enhancement would be developed. This matrix would be used in order to get the combined score of the organization involved in crowd sourcing process. Each of the three areas of importance would contain some points based on which success for the innovation can be measured.
For the present context of digital innovation organization named Hartford Financial services has been selected which is US based insurance company dealing in property and casualty insurance areas. This company is listed into fortune 500 companies and URL of the company is www.thehartford.com. This company was established in year 1810 with the group of merchants having initial capital of $15000. At the time of establishment Hartford financial was fire insurance company.
Hartford financial service operates within life and general insurance industry wherein insurer assures to pay policyholder for the losses. Insurance industry in US is governed through state based regulatory system. According to year 2012 total value of premium for US insurance industry is approx. 1.1 trillion. Out of the entire insurance sector 58% is covered through health & life while rest of 42% is covered through property and casualty (Cabanillas et al, 2010). As on year 2012 there are total 6115 companies operating in insurance sector in US, out of these 2660 are into property & casualty insurance, 913 companies are into life & amenities, 58 in title, 272 in risk retention and 1318 other companies.?
Figure 1: Showing the revenue of insurance sector
As shown in figure 1 above that out of total revenue of $1098 billion from insurance sector, $456 billion comes from the property & casualty while rest of the $642 billion of revenue is attributed to life insurance & health segment.
Major products and services offered by Hartford financial services would include below mentioned:
Corporate vision for Hartford financial services is to evolve as the biggest insurance sector organization in order to showcase financial performance and in terms of value offered to the consumer segment. Mission statement for Hartford financial services would include providing financially secured future for the consumers and this would require development of products & services as per consumer needs (Chow et al, 2009). Some of the key values offered by Hartford financial services for becoming market leader in their industry are as below:
Three vital elements of the business strategy adopted by Hartford financial service include innovation, product breadth and expertise. Innovation is the medium for developing sustainable business model for any organization and Hartford Financial has incorporated innovation for attaining products & services as per consumer needs. Hartford Financial tries to develop high degree of expertise in insurance sector so that it can strive to attain high degree of market share in the insurance sector. Hartford financial service has enhanced the breadth of their product portfolio so that higher market share can be attained by reaching out to the niche consumer segment wherein no competitor is pitching their products and services.
Some of the major reasons which would force Hartford financial services to invest into current project of Crowd sourcing technique can be given as under:
A simplistic view of the corporate structure for Hartford financial can be given as per figure 2 below. There are basically two stakeholders for Hartford Financial services and these two stakeholders are customers/partners and management team.
Figure 2: Showing the corporate structure of Hartford Financial services
Major business processes adopted in context of Hartford financial services would include below mentioned:
A simple view of the business process adopted by Hartford financial services can be given through graphical representation below:
Figure 3: Showing the graphical representation of the business process adopted by Hartford
Some of the important external entities with which Hartford financial maintain good relationship includes below mentioned:
Risk contained in the present digital innovation for Hartford Financial services and mitigates can be given as under:
Confidentiality of information: Sharing of information from the project stakeholders to the competitors and other market player is biggest risk for Hartford financial services in present digital innovation. It is important to develop the security measures through which information can only be shared in a controlled project environment and information outflow should not be allowed.
Project control:Project managers for Hartford financials would be having lower degree of control over the project as it would involve high number of stakeholders in the project. For mitigating this risk it is important to deploy project manager having experience in the crowd sourcing technique (CSA, 2009).
Information credibility:Information shared by stakeholders does not have any kind of credibility and it is possible that unauthenticated information may also come into system through crowd sourcing process. In order to avoid any such risk it is vital to adopt the authentication process for information obtained through crowd sourcing technique.
Information system requirements for the current crowd sourcing project of Hartford financial services would include analysis & data systems, tracking information system unit for compliance process and development of the information technology infrastructure so that policy renewal system can take place in simplified manner. Some of the important system requirements for the current crowd sourcing project can be given as under:
Hence, above given information system requirements would be mandatory for the crowd sourcing project proposed for Hartford financial services in order to take benefit in various business applications.
Requirement for the IT infrastructure for present project of Hartford financial services can be given as under:
These IT infrastructure requirements would be there for the newly deployed crowd sourcing project and the specifications for each of the device can be changed as per requirement of the project at the time of implementation. It is important to assess the requirement before final implementation plan and pilot testing should be done with each of the IT infrastructure equipments required in the current project (Curtis et al, 1992). Assessing project viability based on the IT infrastructure would be important to ensure that on later stages there are no issues for the project implementation and entire project is working properly with the given IT infrastructure in organizational context.
Present report has helped in order to explore key areas for the implementation of information technology system in form of crowd sourcing for Hartford financial services. Some of the vital business challenges faced by Hartford financial are in terms of renewal of policies, administration, compliance, risk management, new business generation and claim handling processes. It is important to consider that Hartford financial services would require latest information technology tools such as Crowd sourcing which can allow the organization to have low cost solution for the problems faced by the organization. Some of the important areas of business application for crowd sourcing technique would include research work, market surveys, product development and product demonstration etc. It is important to identify various risk contained in the present process for implementation of the crowd sourcing technique and to deploy mitigates which can help in overcoming these risk and enhance business stability. Periodic financial performance analysis would be important for Hartford financial services and these analyses would help in order to gauge whether crowd sourcing is efficient enough to provide solution for the various problems encountered by the organization.
It can be concluded from the present context of Hartford financial services that business challenges faced by the organization can be overcome through implementation of suitable technology in form of crowd sourcing. CIS8000 Global Information Systems Strategy Assignment Help requirement analysis need to be done by the organization so as to understand exact IT infrastructure which would be required for the implementation of crowd sourcing in Hartford financial services. Crowd sourcing technique would be implemented in order to meet the challenges faced by the business management.