Information System Planning in Insurance Organizations

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Case Details:

Case Code : INS044
Case Length : 03 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Available
Organization : Varied
Industry : Insurance
Countries : India

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Capital Insurance is one of the leading insurers in the US and it has been in existence for more than 30 years. As the business environment has changed significantly in the recent past and competition is getting tougher by the day, the company has decided to use Information systems to improve its administrative system.

The CEO of the company, Peter Groove (Groove) has therefore, convened a meeting with the head of the IT department, Rick Brenner (Brenner) and other senior people in the department to decide whether information systems should be developed in-house or outsourced.

It was unanimously decided that since the company had the capability, the system should be developed in-house. Soon the system was developed and implemented in various departments. Unfortunately, it failed. The head of the IT department met Grove and appraised him about the reasons for its failure. To fill up the lacuna in the system, he asked for time so that the team could rework on the system and implement it successfully.

The team reworked and made certain improvements. But again to everyone's surprise, it failed. These failures cost a fortune to the company...

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.