New Concepts

Table of Contents

1. Introduction 4

1.1. Insurance Industry Overview and Major Trends 5

1.2. Need for Data Analysis and The Insurance Value Chain 5

2. Sales & Marketing 6

2.1. Agent and Sales Force Deployment: 7

2.2. Agent Development and Relationship Management: 7

2.3. Channel Analysis: 7

2.4. E Business Development: 7

2.5. Site Navigation: 7

2.6. Error Analysis: 7

3. Retailing 8

3.1. Customer Profitability: 8

3.2. Customer Lifetime Value: 9

3.3. Customer Segmentation: 9

3.4. Attrition Analysis: 9

3.5. Affinity Analysis: 10

3.6. Target Marketing: 10

3.7. Campaign Analysis: 10

3.8. Cross Selling: 10

4. Banking 11

4.1. Budgeting: 11

4.2. Asset Liability Management: 11

4.3. Financial Ratio Analysis: 11

4.4. Profitability Analysis: 11

4.5. Web Reporting and Analysis: 11

5. Stock Trading 12

5.1. Dematerialization 12

5.2. Information Flow 13

5.3. Conflicting interests 13

5.4. Realize economies of scale 14

5.5. Volatility 14

5.6. Adverse impacts of IT on stock markets 14

6. Manufacturing 16

7. Summary 18

8. References / Bibliography 19

Table of Figures

Figure 1 - Insurance Chain Model 5

Figure 2 - Business Intelligence and CRM 8

Figure 3 - Before implementation of Value Chain Model 16

Figure 4 - Sample Value Chain: Optimized Processes 17

Information Technology, Commerce and Money

The thrust of the original Industrial revolution was separation - to break work

into its component parts so as to permit mass production. The effect of computer networks in the Digital Revolution, however, is unification - to erase boundaries between company departments, suppliers, and customers. Indeed, the parts of a company can now as easily be scattered around the globe as down the hall from one another.

The whole notion of "the organization" becomes a blurry boundary around a set of people and information systems and enterprises. Some areas of business that are undergoing rapid changes are: Sales and marketing, Retailing, Banking, Stock trading and Manufacturing.

Source: Williams, BK and Sawyer, SC. Understanding Information Technology. Sixth Edition. McGraw-Hill: New York. Pp 428-429.

Question

Using your organization or one with which you are familiar; discuss how the use of information technology in the following areas can be extremely valuable:

* Sales and Marketing

* Retailing

* Banking

* Stock trading

* Manufacturing

1. Introduction

In recent years, Information Technology (IT) has become pivotal to the process of economic development. Because of .the tremendous strides which have been made in this discipline over the past two decades or, so, information technology crow provides the most efficient and cost-effective ways of exchanging information and transacting business. In addition, it has changed the very nature of the world's financial and other service sectors. Perhaps its most important potential contribution to the social and economic development of countries, however, is the fact that it embodies in its mechanisms and modalities the means of considerably enhancing our human and Institutional capacities.

In this globalised world in which we live, Information technology is now arguably one of the most important determinants of competitiveness and social and economic growth. Countries and firms are becoming more competitive because of their knowledge, rather than because of their natural resources and the low cost of their labour. What now determines a country's advantages are its access to information technology and knowledge? What is now more important than ever in the attack on economic underdevelopment is man-made not "natural", in the traditional sense of the term? And since man-made comparative advantages can only be acquired by knowledge, the implications with regard to labour markets; technical education, and human capital formation are tremendous and far-reaching. Countries that invest in, and quickly adapt information technology will develop socially and economically. The inhabitants of those countries which do not so invest and adapt are, more than likely, doomed to lives of abject penury.

1.1. Insurance Industry Overview and Major Trends

The insurance industry is quite diverse in terms of portfolio of products provided by

different companies. The products can be broadly classified into two product lines :

property and casualty (P&C) and life insurance. Life insurance product line can be further

sub-divided into life insurance, health insurance and annuity products.

Island Life Assurance Co Ltd (ILA), which deals in Life Assurance and its subcategories will be used as a model for

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