Information System Planning in Insurance Organizations
Case Code: INS044
Case Length: 03 Pages
Pub Date: 2003
Teaching Note: Available
Abstract Case Intro
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...
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