Agency Buyers Seek Software Simplicity

Don't get carried away with latest trends featuring multiplebells and whistles

When determining agency technology needs–in particular, forsoftware solutions–the tendency is often to seek customized,comprehensive, cutting-edge solutions for specific needs.Technology advances have opened a world of opportunity forinsurance agencies to streamline processes, increase efficienciesand improve customer service.

At the same time, technology trends and the ready availabilityof talented software developers make it easier than ever to getcarried away. While developers can create exactly what you ask for,the result may be more than what you need.

How can agencies best manage the software development process toensure the final product meets the needs of their producers,carriers–and, ultimately, customers? Simplicity and carefulplanning are the keys.

Differing agency office environments, whether centralized ordistributed, often lead management to seek a one-size-fits-allsolution. A seemingly simple request by one department often growsas others are pulled into the discussion–before you know it, theend result is greater than the sum of its parts, not user-friendly,expensive and perhaps outdated by the time it gets to market.

For example, Agent A asks an apparently straightforwardquestion: “How quickly can I get an accurate quote?” The agencydecides that developing specialized rating software to gather thispricing information expeditiously would provide a real competitiveadvantage.

Professionals from throughout the agency are called upon forinput, and various departmental needs are built into the softwareRFP. As we all know, rates can vary by many factors, such as lineof business, state and insurance company.

Rates change constantly. People from various departments maywork with different interfaces (the way an individual communicateswith the computer). The project grows, the timeline extends, andthe proposed solution becomes complicated. Suddenly Agent A'ssimple question seems quite complex.

Agencies seeking an outside software solution to address a needshould begin with a small internal team–ideally two or threepeople–to determine specific project needs, scope and budget.

While IT insight is valuable, it is not imperative (or evenpreferred) that IT leads this team. The project leader's keyfunction should be the “human interface,” whose function is toensure the software development process stays within the project'sdefined parameters. This person has the authority to say, “Wait aminute!” if things start escalating out of control.

For simplicity's sake, a modular software approach may providethe most efficient, cost-effective solution. A module is a separateunit of software that can stand on its own, yet connect with othermodules.

The team should sit down with the software developer to breakdown the project's needs into clearly defined modules and theircritical elements. Multiple software developers can work on amodular solution concurrently, each on a different module, whileusing the same concepts. This ensures that all modules will fittogether. Then, if a change must be made in the future, only thatmodule will have to be updated.

A high priority should be given to maintaining a consistent userinterface across as many disciplines as possible. The interfacemust be understandable to every user or it will lead to a level ofcomplexity that quickly becomes overwhelming, making the interfaceunusable.

In many cases, an off-the-shelf modular software product fitsthe bill. If it can be easily modified to your office environment,it isn't necessary to go through the time and expense of developinga customized product. Companies can pay only for the functionalitythey need.

By the same token, companies should remain focused on their ownneeds and not get too caught up with the latest technology trends.Think twice before rewriting your software to make it compatiblewith the latest data structure. For example, XML, which was toutedfor years as a “must have” technology, still hasn't lived up to itsexpectations.

Using open source code can further enhance the flexibility andcost-effectiveness of software solutions, as proprietary systemsinvolve the expense of licensing fees and upgrades.

The reality is, with any kind of software development project,an agency is entering the programmer's world. There is an abundanceof technical solutions to the many issues facing agents–and theyalways make sense to the software designers. (These excitingfeatures often sound like a good idea as you're adding themin).

The key to a project's success, though, is that the finalsolution makes sense to the users. Keep the human element, ratherthan the technology, as the focus of the software developmentprocess, and your agency will maximize the benefits thatwell-designed software offers–simplicity, efficiency andprofitability.

Dean Westover is the founder and president of Choices Softwareand is also president of Westover Insurance in Lynnfield,Massachusetts. He can be reached at [email protected].

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While determining a software project's parameters andestablishing its ultimate goals, the agency team should considerwhat is driving the need for a new solution.

o Is it internal data for employees to use, or the ability todraw on that data to use in marketing presentations tocustomers?

o How do the users work with their data?

o Do they prefer a customer-based system, a forms-based systemor a policy-based system? While a policy-based solution may workfor an insurance company, insurance agencies would likely benefitfrom an insured-based system that sorts by contacts andcustomers.