Critical Issues of Marketing Analysis - Essay Example

2. Business Marketing Analysis s: 2 Business Systems Insurance is an insurance agency that first began in1923 selling life insurance. Systems Insurance is not one to boast brag or bombard you with billions of dollars of advertising. Ever since our founder B.B. Systems coined the phrase, “Nothing without Service,” our approach has been simple: overwhelm our Customers with the best service at the greatest value. In short, let thehappiness of the customer do the talking. Systems Insurance is currently ranked amount the 500 largest U.S. companies, in terms of revenue, by FORTUNE Magazine. Systems Insurance is also ranked among the top 20 largest auto insurers in the state of Pennsylvania. Today Systems Insurance fulfills its commitment made to customers by providing auto, home, life and business insurance rooted in the founding values ofhonesty, affordability, and service on the basis that our customers come first. We offer products that will protect you without any hidden surprises. 2.1 Vision Statement Together with a large network of independent insurance agents Systems Insurance serves more than 5 million insurance Customers in 16 states as well asCosta Rica, and the District of Columbia. With our agents, we continue to carry out the company’s founding purpose: "To provide customers with as close to perfect policy’s and as near perfect serviceas is possible, and to do so at as minimal a cost as possible." Our Customers know we will work to go the distance to help them with their insurance needs and to recover after any monetary loss. That may be the reason behind System Insurance retaining over 92 percent of Customers, year after year. 2.2 Business Goals To maintain growth within the insurance industry over the years, Systems Insurance has used an established set of business goals. Continue to give customers the best service at the lowest cost. Increase customer base 10% each year while keeping our agent/customer relationship. Continue to increase company revenue by 5% each year. 2.3 Business Objectives The following is meant as a guideline to help while implementing a new business innovation, to help the organization evolve and grow through the efficiency and productivity of both Agents and customers. Profitability As with most, if not all insurance companies, Systems Insurance wishes to remain profitable while implementing innovative, products, and technology. Increase revenue without increasing the rate of our policies. Agents / Customers At Systems Insurance, our company revolves around our dedicated Agents. Our daily goal is to maintain and improve the effectiveness of policies in order to help Agents bring in new customers. Agents depend on the effectiveness of the technology we provide, by providing the best technology we help to ensure we continue to offer the highest levels of customer service Organizational Development Systems Insurance will continue to grow to compete with the largest of Insurance companies. The growth of Systems Insurance Agents has led to a large push in the number of Policy Holders we hold today, as well as the overall organizational footprint. 2.4 Metrics During the project’s creation, qualitative risk analysis will be used to gauge each risk as encountered through the development cycle, from start to finish of the project. Systems Insurance runs a strict risk management plan, management wishes for updates on weekly bases to describe budget, and current schedule. Risks are expected with the project, as a way to help minimize these risks, each risk will be analyzed and reviewed for degree of impact to the development and implantation of the project. 3. Proposed IS Innovation Plan 3.1 Problem Statement Our billing inquiry view is currently configured using Dragon Designer for use in our Commercial Lines Online applications. System users including agents have noticed a large waste in time needed to open the applications that house the inquiry. Customers have begun complaining about the time agents kept them waiting for an answer on their policy information as well as balance information. Based on Agent feedback, the existing screen is not only time consuming, but also cumbersome to use, and difficult to understand due to a large amount of redundant data. The screen has also been found to be lacking key data elements that would enhance usability. The issues associated with the billing inquiry system have created a need to review the system and find a solution to ease of access, usability, and overall functionality. 3.2 Project Objective This project is meant to create a new standalone billing inquiry application in order to create ease of access for policy and billing information. The application will be designed and created with the future in mind to be integrated into various other organizational services through the use of I-Frames. The end result is to have a fully functional, singular area where of which will provide Agents as well as policy holders with a real-time, view of policy and billing data. To increase overall functionality and effectiveness for Agents and Policy Holders, the application is also meant to take in simple policy payments such as the current minimum due. Current Billing Inquiry In-use The above image shows the current set up of the billing inquiry used by agents. The red boxes show where the Agents complain above redundant clutter as the Policy Number and Effective Data are repeated numerous times. The yellow boxes show areas of confusion, there are multiple “total” amounts. The billing inquiry should be more precise with the billing information that is needed. 3.3 Organizational Impact The major impact of this innovation will be the companies’ most important assets: Agents and policyholders. Successful design and creation of the application will mean better service to our Agents, and to our policyholders. The project then only helps to strengthen the organizations overall vision of customer service to our customers and helps to provide the greatest levels of care and satisfaction. 3.4 System Integration and Systems Development Model Much of Systems Insurance current software functions in the .NET world. In keeping with the rest of the system the new billing inquiry will be designed through C# asp.net. The system will then be able to be used at a moment’s notice through the company intranet. There are multiple databases that must be utilized; specifically the billing and payments databases must be accessed. The project itself is accepted to be on a large scale and must utilize an experienced functionally diverse team. The Systems development model that will be used will be that of agile. The development of the system must remain flexible and adaptable to any needed changes. Deliverables are a must throughout development as the project is high priority. The development team must accept that requirements could change as the wants of the Agents and constraints of the databases are changed and discovered. Marketing Analysis Systems Insurance has many strong points in their company. It has many characteristics and qualities that give it an advantage over other companies within the same industry in the region it serves. Systems insurance offers life insurance policies in 16 states in the United States as well as Costa Rica, and Columbian District. Aggressive marketing strategies, updating the official website as well as using the most modern methods of advertisements like the social media which covers a very large audience will ensure that Systems possess a strong competitive advantage. The subsequent SWOT analysis captures the main strengths and opportunities within the company and illustrates the weaknesses and threats facing Systems Insurance. Some of the strengths include: Unique products Excellent customer service Strong capital base Efficient management team and well trained staff Consistent quality of products and services Expertise and experience in the insurance industry Aggressive and focused marketing campaign with clear goals and strategies Customer Loyalty Given the opportunity, customers tend to be loyal to the SWOT Analysis of Systems Insurance Company. Instead of aiming at all customers, SWOT analysis of Systems Insurance aim at new customers to grow the business. Future customer loyalty is expected to have a perpetual positive impact on this company hence adding to its value. Unique products help to differentiate SWOT analysis on Systems Insurance from local and international competitors. They can charge higher prices for unique products because clients cannot get them elsewhere. This leads to the increase in profits for the entity. A strong brand name, achieved through long-term service of Systems insurance, gives it the ability to charge higher prices for the products since consumers place extra value in company brand. There is need for the management to put extra efforts in this factor. Systems insurance company has a comprehensive customer insight and offer excellent customer service to the clients. For instance, one of the business goals of Systems insurance is to continue giving customers the best service at the lowest cost possible. They have a well-trained staff especially the development team responsible for the installation of new billing software. Weaknesses These are the characteristics that form the disadvantage part of the company: Quick expansion of the billing system-There will be a lot of new hires, cost of resources as well as the cost of training the new recruits. The cost installation and configuration of the software are also included in this section. Cost of maintaining reputation/ relevance- Comes with the quality assurance policy. As companies strive to outdo each other in the market, competition stiffens and this translates to more input be it in technological advancement or advertising that is required for a greater output. Since this is a continuous process it is essential and yet it is a tedious process. The struggle to maintain its lead and stay ahead of competitors in terms of technology adoption The expense of acquiring insurance consumers from competing firms- this is a legal process that is coupled with legal fees which vary from time to time and with regard to the nature of the client. This form of an unbudgeted cost poses as a liability. There are many complaints from consumers concerning the billing inquiry system that uses Dragon Designer in Commercial Lines Online applications. Clients have begun complaining on the time taken by agents while waiting for an answer on information concerning their policies as well as balance information. This is a major concern within the entity and it has to be addressed to avoid losing customers to immediate competitors. There are plans to review the billing system and get a solution to enhance easy usability, access, and overall functionality The new billing inquiry software will require a large starting capital to hire the resources as well as recruiting new staff and technicians. Systems insurance should look for better ways of financing the project and this could lead to major losses if not properly planned. Due to the expansion, new recruits and interns will be hired. The cost of training them adds to the capital requirements. OPPORTUNITIES These are the elements that Systems insurance could exploit to the advantage of competitors: Growing community Client reliability- Results to a competitive advantage since it shows reliability and it brings about stability in the firm. Cross-selling insurance- Here the target is the loyal clientele because there exists a bond of trust which can be exploited for more gains. Adoption of current technology- keeping up with technological novelties keeps the firm relevant in the dynamic industrial world and speeds up operations in the business. Growing market Business expansion through mergers and acquisitions- Brings about access to moneys for new development, addition of quality workforce and access to a broader customer base. As the company grows the capability to reduce fixed costs over a growing number of customers. Increased sales through the expansion of the products and services offered as well as recruiting additional sales representatives offers a greater opportunity for growth. The purpose of the new billing system will create a new standalone billing application software which will create an ease of access for billing information on the policies offered and it will optimize the supply chain management system. This system should bring in an improvement to revenues and market share. The key opportunity here is to boost the customer base and improve the business loyalty and brand. This new innovative billing system will have a major positive impact on the customer service to our agents and our esteemed policyholders. It will be in the list of the most important assets of the company. It is a project that will help strengthen the overall vision and objectives of customer service to our clients and help provide greater levels of satisfaction and care. THREATS This represents the elements within the environment or the insurance industry that could cause trouble for the entire entity if there are no proper guidelines to solve them. Price fluctuations Competitor marketing Vertical integration Competition To cater for the extra costs of the IS innovation strategy ( the new billing project) and to ensure that it is cost effective, the cost of our life assurance policies may be increased and this could lead to the loss of a substantial number of customers to competitors. Another threat to the success of Systems insurance is the quality of marketing strategies used by competitors. Systems insurance has to make use of the current technology when advertising both existing and new products so as to gain a competitive advantage. For example, ensure that there is an updated, vibrant website where customers could see new developments within a particular product. Target markets Systems insurance company mostly targets seniors, middle-income earners and family businesses as our esteemed customers. Seniors citizens-Systems Insurance Company is targeting senior people who have for the past proved to be a profitable and stable market for our products. Greater percentage of these people has formal employment or stable businesses thus collecting premiums from them have proved to be easy and profitable. These people prefer the best brands of companies irrespective of the pricing because majority has average incomes and they are willing to pay premiums. Middle-income earners- We are targeting middle income earners both locally and internationally. Statistics have showed that people in most of the population in any locality is above 45. Majority of these people have the required average income and they understand the risks associated with old age. Thus obtaining premiums from them is easy and less costly. Competition As a result of globalization, terrorist attacks and deregulation, the insurance industry has tremendously grown over the past decade and this has led to the creation of more firms offering life insurance policies to customers. The competitors include: Local independent brokers- In almost all the states where System insurance company operates , there are small alternate markets particularly small farm mutual’s that continuously offer life assurance policies at low prices, and even allow substantial discounts and underwriting terms. They are preferred by most of the customers. One of the main weaknesses of such markets is that they are smaller, are one man operations and do not have enough finances to impact the market place aggressively. Agents- These are insurance agents whose products are competitively priced and they normally have large advertising budgets. They are sometimes difficult to compete with because they seem not to be restricted on underwriting terms as our markets. In addition, they possess large ability to write certain risks. Their main weakness is that they are not knowledgeable and aggressive as the ones for Systems. Group plans such as public employees, teachers. Professionals such as accountants, engineers, teachers etc may come together and form groups where they can contribute money towards a common pool from where they can be compensated incase of illness or death. Their main strength is that they price their facilities as per their decisions. However, they are very few in number obviously. 5. Operational Analysis 5.1 Project Feasibility Feasibility of a project is key to whether or not a project should move forward. A feasibility study helps to determine this key factor. A feasibility study can be defined as, “an initial investigation to clearly identify the nature and scope of the business opportunity or problem.” As a simplification it can simply be defined as the identification of the primary issues involved with an idea or problem. Systems Insurance must look at the feasibility of implementing a new billing inquiry system and if this route will solve the problems in the most efficient manner. In doing so, we must be assured that no major problems will stop the implementation of the system and the overall idea, before investing company assets. Feasibility studies looks into four main areas used to measure feasibility of a proposal: Operational (Effectiveness) Feasibility Schedule (Time) Feasibility Technical (Tech Resources) Feasibility Economic (Cost) Feasibility Operational As Systems Insurance looks to expand into more states and into more age groups, a stronger billing inquiry system will be a necessity. As our competitors switch their focus on mobile systems we must now play catch up as we do not have a functional web based system for use by our own agents or our policy holders. As our demographic age group gets older we must look to the future and turn our focus to the younger demographic. Web based and mobile systems will be a must, a new appealing easily functional billing system for people on the go will become a strong selling point moving forward, and will be an easy starting point when management decides to implement a mobile system. In testing the overall effectiveness of the new system, functional and pilot studies will be conducted using large groups of agents across the Harbor East, PA footprint. Covering approximately 7% of the overall population of Systems Insurance agents. Overall, this project will help to enable a more satisfying experience for Systems agents, as well as our valued policy holders, all while preparing for the future. Schedule The project is expected to take two years to fully implement and is expected as a deliverable to management no later than March of 2017 with a start date of February 1st of 2015. The project has little room for error, and due to the large cross functionality needed between departments, an experienced project manager will be appointed to the project. Because of the tight timeframe, an accelerated schedule is accepted; the risks involved would include additional developers and quality analysts that would increase the overall cost of the project. These risks have been accepted by management and are included as part of the financial analysis. Technical There are known flaws within the companies’ database system that must be updated before the project will be possible. These updates include the information that can be pulled and the formatting problems within the database. These updates are part of a billing system update expected to finish by the first of 2015. The project is on track and no road blocks are expected. With this knowledge, Systems Insurance is perfectly capable of moving forward with the new system. Agents and management have agreed to the upgrade. With the systems in good standing, Systems Insurance will have no problem with the implementation of the new billing inquiry system. Economic It has been determined through much analysis that the project can be takin on financially. Project cost has been estimated at the cost of $877,000 over the first two years (more details found in Financial Analysis Section). The projected benefits of the system will far outweigh the total cost of ownership. With this information the project is well worth investing for the future. 5.2 Project Scope and Constraints Systems Insurance lifeline consists of our agents and policy holders, keeping strong relationships with both, and offering the best service is what makes Systems Insurance so successful. With the future in mind and expansion in site, implementation of a new billing inquiry system is a must for a successful future. Project must haves, have been determined to include: A central view for all policy information Recent Payments and Policy due dates must be visible Minimum Due must be clearly presented A simple payment system for minimum due payments to be made must be included This system should use the company’s Enterprise Architecture as a foundation All projects must consider their constraints, as with any project, the three constraints that must be addressed include cost, time, and scope. These constraints are considered by many as the Project Management Triangle. Cost – The project must be kept within budget. Many factors can change cost, including: labor, and risk. Because of the nature of the Project Management Triangle, the cost can also be effected by time, and scope. And in the same way, cost may effect time, and scope. Time – Just as the cost of the project must be kept in budget. The time frame of the project must stay in schedule. Factors that can effect time include anything from database problems, programming issues, or even a natural disaster. Scope – It is nature of a project to look for more to be added. However, changing the project will change time and cost, as well as create more potential problems. 5.3 Development Strategy The Systems development model that will be used will be that of agile. The development of the system must remain flexible and adaptable to any needed changes. Deliverables are a must throughout development as the project is high priority. The development team must accept that requirements could change as the wants of the Agents and constraints of the databases are changed and discovered. 5.4 Project Schedule This schedule represents the major steps of the project. Each task has an estimated duration; each duration has been estimated with time for expansion if needed. The actual start dates will be provided during the actual phases of the project by the assigned project manager. The schedule focuses on key tasks such as: initial systems request, data gathering, requirements analysis, system design, development, system test, implementation, system maintenance, disposition, the review of each stage, sprint evaluations (agile development), and the date of project completion. 5.5 Project Estimated Gant Chart 5.6 Project Charter Project Title: Billing Inquiry & Payment System Project Start Date: December 2014 Project End Date: May 2015 Budget Information: Please see Financial Analysis section Project Manager: Nathan Eades Project Objectives: The goal of the project is to create a new application, a central location to view billing information and make simple payments. This application is to be integrated into various enterprise services in the future. This will provide agents as well as customers a “one stop shop” for policy and billing data. Main Project Success Criteria: Increased Agent Productivity; Increased Web Traffic; Decreased Customer Service Cost Approach: Determine requirements for new billing inquiry & payment system from agent reviews and department manager request. Review databases for required data, including policy data, customer data, and billing data. Evaluate process of current simple payment method, improve and implement into new system. Develop security controls for integrated payment center, including security checks and auditing, including management overrides. Utilize agile development method as well as enterprise architecture for simple future use within other systems. Evaluate overall success of project including overall happiness of agents and customers to determine success and project value. Roles and Responsibilities Name Role Position Contact Info Nathan Eades Project Manager Systems Insurance nathaneades@systems.org 999-999-9999 Ashton Kutcher System Development Systems Insurance ashtonkutcher@systems.org 999-999-9999 Yazeed Almansour Marketing Systems Insurance yazeedalmansour@systems.org 999-999-9999 Jarah Alhusayni Finance Systems Insurance jarahalhusayni@systems.org 999-999-9999 Bobby Flay IT Supervisor Systems Insurance bobbyflay@systems.org 999-999-9999 Alex Bates Billing Dept. Rep. Systems Insurance alexbates@systems.org 999-999-9999 Sign-Off: ____________________________________ Comments from key Stakeholders: 5.7 Data Flow Diagrams Agent Policy Inquiry Agent Policy Inquiry with Payment Policy Holder Inquiry Policy Holder Inquiry with Payment 5.8 Entity Relationship Diagram 5.9 Use Case Diagram References Read More