BY ARA C. TREMBLY
As we approach the start of the industry trade show seasonthose events where everything old becomes new, and everything new gets oldit probably isnt a bad time to do a reality check. As an industry observer from my perch high above the teeming metropolis of Hoboken, N.J., I have decided to make available some of my most brilliant insightsspecifically on the events and developments of the past year.
Heres how it will work. Ill mention a technology-related trend or happening, then I will rate that concept on its level of techno-spiritual evolution (TSE). I will assign from one to five at signs (@) for each instance. Each @ represents a step toward the virtual nirvana that exists at the highest levels of TSE.
A rating of one @ will indicate the very lowest level of TSE, perhaps that of a dog (and not a smart dog like a border collie, but rather something like the lugubrious, slobbering creature that would inhabit the front porch of Jed Clampetts Ozark mountain shack). At the other end of the scale, a rating of five @s would denote the very zenith of TSEequivalent to that of, say, Bill Gates or a typical 15-year-old.
Insurance Technology Product Introductions: @@@@
For the sheer number of product introductions last year, tech vendors in insurance and financial services must be commended. Between the ACORD and IASA trade shows alone, this reporter counted an incredible 40 new products (mostly software) being announced. Not every product was a world beater, but it was heartening to see most of them focused on boosting productivity for carriers and/or agents and brokers. That was a sound message and a wise strategy, given a national economy that is just beginning to recover. The spate of new products also speaks to the tech sectors faith in the insurance and financial services markets.
Demand for Return-on-Investment For Technology Products: @@
Theres absolutely nothing wrong with wanting a reasonable ROI in any product. The problem is some buyers have focused so narrowly on this demand they have excluded purchases that may not return dollars immediately, ignoring the fact software and systems must be updated to keep an enterprise abreast of the industrys technology pace. As a result, updates to a companys tech infrastructure, while sorely needed, may not get past the purchasing managers ax, because they dont guarantee ROI within the next year. Yes, the company may get by on legacy systems and applications for another year or two (its probably already been 20 years), but the longer one waits to update, the more expensive and more difficult that task becomes. ROI is not the only reason to buy technology; it may not even be the most important reason.
The Tech Industry Refocuses on Business: @@@@
In his past addresses to the tech faithful at Comdex, Microsofts Gates was selling the concept of pervasive computingcomputers and software in all parts of our homes, on our persons, and even in the packaging for commercial products. In 2003, however, his focus turned abruptly to software as an enabler of e-commerce and productivity. This radical shift surprised no one who has considered the beleaguered state of the economy and the even more beleaguered state of the tech industry. Technology was no longer about gee-whiz gadgets. Instead, we wanted to know how tech would help us get leaner and more productive. Indeed, productivity was the key message at the IBM Global Insurance Executive Conference. Speaker after speaker discussed the ways in which technology can make this industry more efficient and productive. My only regret is the tech industry waited so long to get on this bandwagon.
Outsourcing Information Technology: @@
Outsourcing a companys IT functions may not be wise. In addition to obvious communication issues, theres the need to impart ones corporate culture to workers who might be halfway around the globe. More important, you may be sending your valuable proprietary information to a nation in which intellectual property laws are lax or nonexistent. Computerworld reported an Indiana state agency canceled a $15.2 million IT services contract with a company that planned to import workers from abroad. The state decided it wanted to provide better opportunities to its own workers. And theres another key point. If you hire a programmer from another country, a programmer in this country wont have a job. Thats not to say outsourcing always is a bad idea, particularly if one is outsourcing noncritical business processes. And nothing says you cant outsource to a U.S.-based company. Sacrificing U.S. tech jobs for short-term gains hurts us all in the long run. In better economic times, we may feel differently, but for the moment, caution is advisable.
Well, that was enjoyable. No trend or event achieved TSE nirvana, but then again, no one was compared to Old Duke on The Beverly Hillbillies.
Ara C. Trembly is technology editor for National Underwriters property/casualty and life/health editions. He may be reached at atrembly@nuco.com.
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