CRM Implementation Failure at Cigna Corporation|IT and Systems|Case Study|Case Studies

CRM Implementation Failure at Cigna Corporation

            
 
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Case Details:

Case Code : ITSY050
Case Length : 14 Pages
Period : 2000-2005
Pub Date : 2005
Teaching Note :Not Available
Organization : Cigna Corporation
Industry : Health Care Insurance
Countries : US

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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.



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Excerpts

Background Note

On March 31, 1982 the Philadelphia-based Insurance Company of North America (INA) and Hartford-based Connecticut General Corporation (CGC) merged their operations to form Cigna. Cigna acted as the holding company with INA and CGC as its chief operating companies, and was headquartered in Philadelphia...

Implementing CRM Systems

In 1999, Cigna HealthCare was operating with IT systems that were nearly two decades old and were clearly outdated. It had separate units for membership (enrollment), processing the medical claims and verifying customer eligibility...

Migration - Problems Galore

Anania felt that the migration process for more than 13 million customers would take too long if she went by her plan of migrating customers to the new platforms in small groups...

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

Launch of Mycigna.com and the Turnaround

In January 2002, Anania decided that Cigna should start work on a web portal project - mycigna.com. The web portal project aimed to make it possible for millions of healthcare customers to make easy and secure online transactions...

Looking Ahead

The migration program was expected to continue throughout 2005. Anania said that she and her team had learnt a number of lessons from the project (Refer Exhibit IV for Steps for effective migration to new systems). According to analysts, the company was now processing medical claims quickly and had, to a certain extent, achieved its goal to reduce human intervention. However, the Cigna management did admit that the project had exceeded the original budget of US$1 billion and that it had already done a certain amount of financial damage to the company...

Exhibits

Exhibit I: Cigna's Five Year Financial Summary
Exhibit II: Products and Services Offered By Cigna Healthcare
Exhibit III: Cignature - Your Plan Your Choice
Exhibit IV: Steps For Effective Migration to New Systems


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