Fishing for Solutions

After commiserating with a freelance writer about some unusually tight deadlines we were both facing, he sent me a cartoon that showed a couple of goldfish swimming in a blender. Next to the blender, there was a hand holding a plug near a wall socket. With bulging fish eyes focused on that plug, one says to the other: I cant stand the stress!

Granted, this analogy may be a little extreme, but it generally sums up some of what technology executives are dealing with todaycase in point, legacy systems. The systems are stressed, and so are those responsible for them, especially given curent budgets.

Industry insiders say they dont see much in the way of replacement going on now, rather partial upgrades or component-based solutions. Some of the smaller or mid-size companies may be taking a look at replacement, since with less to upgrade than larger companies, it might be somewhat easier for them to pull off.

Resistance to change could quickly disappear for lots of reasons, though, once the economy improves. Change is needed not because the systems dont workthey do, but not well enough to be competitive into the future. They may not serve clients or the distribution channel, or they may not be easy to interface for business intelligence or warehousing. Theres also risk exposure in running multiple systems and not being able to access what you need if theres a business interruption.

So the decision becomes whether to toss the old stuff or put a wrapper around it. Industry advisers warn to be certain whats underneath is worth savingif its held together with gum, it may not meet your changing needs. Flip side, they say if youre replacing, you need to understand the technology and the business process driving it. The new system will institutionalize the processmake sure its one you want to live with long term.

This is a technology and business issue. Business will require replacements, citing a need for speed, greater efficiency, cost cutting in administration or system maintenance, and possibly the greatest driver of all, enhanced data management. Information is more necessary than ever, and the systems of old werent built to answer the questions insurers face todaywhether for better customer relations, risk exposures, or regulatory concerns.

So what are IT leaders to do, even if their pockets contain only lint? At the least, get into education mode with the business side and make some plans. Consider beginning the project sooner than laterwith the sell side hungry for business, technology can be cheaper, and insurers might be able to cut some deals.
Just ask those guys in the blenderit sure is better to be in the swim of things.

Sharon S. Schwartzman
Editor-in-Chief

P.S. A heads-up on a new, recurring column: The objective of CIO Chronicles is to examine issues that challenge CIOs of midmarket insurance companies. While much attention is paid to the largest corporations, the needs of the many mid-size IT operations often are Unique.