Iso insurance IT Strategy

The project provides an in-depth analysis of an IT Strategy for ISO insurance company which specializes in providing student insurance to international students studying in the US.

1. I T Strategy Plan ISO Insurance Presented by: Gautam Sawant Parth Soni Zhongyang Sheng Bhavin Shah Zheng Shang Jash Shethia

2. Agenda Executive Summary About ISO ISO overview Corporate Strategy Business/Service unit Strategy ISO - IT Strategy Mission, Vision, Objectives, Value IT Strategy – Big Data Alignment with Corporate & Business unit Business Improvement and Competitive Advantage Professional Assessment IT Service Design Technology Roadmap Business Model Functional Analysis Implementation Strategy Measurement and Metrics Issues and Challenges Recommendation Conclusion

3. Executive Summary ISO is a leading insurance provider in the US managed solely by current and former international students currently providing affordable personal health insurance to international students ISO also manages student health insurance plans for universities throughout the US Currently ISO provides only a limited number of Insurance only to a fraction of the 1043839 international students studying in the US In the recent years the US has seen a steady rise in the number of international students coming each year ISO plans to capitalize on this rise and develop an effective strategy that will help it improve its market share in the international student insurance business ISO also plans to tap the existing customer base of international and provide new insurance services like vehicle insurance, renters insurance life insurance and long term health insurance ISO hopes to use technologies like Big Data and cloud effectively and grow sustainably over the next 2-3 years Gautam Sawant

4. Introduction: Company Background: For International Students, by international students : ISO provides specialised insurance plans for international students. ISO is managed by former and current international students who understand the need of providing affordable insurance plans to international students in the US. Multi-lingual customer service: ISO’s primary goal is to provide the best customer service. Owing to the vast diversity of its clientele ISO has to provide robust customer service. ISO customer representatives speak a variety of languages. Gautam Sawant

5. Introduction (contd.) Purpose: Provide cost effective insurance solutions and sector leading customer service to maximum number of international students Industry: Currently solely in the insurance industry Customers: Currently focusing only on international student insurance but ISO plans but ISO plans to provide holistic insurance solutions like health insurance, life insurance and car insurance Gautam Sawant

6. Corporate Strategy Mission : To do our utmost to provide our customers with the best, affordable insurance plans, complement this by maintaining the highest quality of customer service and exceed customer satisfaction by constantly improving our services Vision : ISO aims to be a one stop shop for all insurance needs of its clientele which is international students in the US. ISO plans to build a long term relation with incoming students and provide students a host of insurance plans like car insurance, renters insurance, life insurance and health insurance. Its also plans to expand its customer base and provide sector leading customer service Gautam Sawant

7. Objectives Become a leader in providing insurance services to international students Build long term relations with existing customers by providing excellent customer service Aim to provide insurance services to 60% of the international student market by 2020 Provide a variety of new insurance services like car insurance, renters insurance, life insurance and long term health insurance to customers keeping in mind ISO’s goals of affordability and customer service Make effective use of technology to acquire new customers, improve customer service and grow sustainably Gautam Sawant

8. Value Statement ISO plans to achieve excellence in the field of insurance by adhering to the following values: Respect: Respect to the needs of the customers and that of the co workers Integrity: Deliver value while acting fairly and ethically Service: Place the customer at the center of what we do Innovation: Leverage technology to get the best of what is in hand Gautam Sawant

9. Corporate Strategy Gautam Sawant

10. Business Strategy Mission : To provide peace of mind and value to customers with its customer-focussed insurance services and excellent customer service Vision : Be known as a company of choice for its customers and as a provider of holistic and cost effective insurance services to its customers Gautam Sawant

11. Business Objectives To differentiate itself from competition through its unique clientele and placement as a low cost insurance service provider To provide market leading value to its customers through its range of customised and well thought out insurance plans Increase the international student customer number through targeted marketing by using social media and forming alliances with educational forums and platforms worldwide like edulix, usnews rankings and princeton review Beat the competitors on cost through real time custom based pricing for insurance plans Develop a cost effective and sustainable IT infrastructure Gautam Sawant

12. IT Mission and Vision IT Vision: Our ambition is to provide every international student with various insurances on a platform which is very flexible and user friendly. We aim to achieve this by using the Big Data Analytics and Cloud Computing services. IT Mission: The most important thing is to keep the customers happy and satisfied. This can be done by being efficient in the following areas: Reliable : High degree of reliability and responsiveness is critical Security : The systems should be secure to keep the privacy of customer data, hence gaining their confidence Mobile app : Enhancing portability by delivering the products through mobile app Availability : Everything should be readily available and every customer query should be answered Social : Social presence and awareness among customers should be created, thereby trying to increase customer base Simplicity : The processes like buying the insurance online and later claiming insurance should be kept simple Specific : There should be no hidden terms and conditions. Transparency is the key to gain customer confidence Parth Soni

13. IT Objectives Parth Soni

14. IT Value Statement What? – Moving from paper based to digital solutions through mobile application/Website Increasing in efficiency by increasing in transparency Expanding worldwide + including other insurances as well Where? – Strong architecture, Efficient hardware and software, analyzing and extracting value from data, cloud storage Who? – International Students(Customers), Stakeholders When? – Every process included from purchasing insurance to claiming insurance should be made simpler & should be efficient Improving every quarter as per business need How? – Gaining maximum customers worldwide + holding the current customers by using technologies like Big Data and Cloud Computing. Also help customers to make the most of the insurance policy by offering various promotions and discounts. Parth Soni

15. Understanding Big Data Analytics Big data is a term that describes the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. But it’s not the amount of data that’s important. It’s what organizations do with the data that matters. Big data can be analyzed for insights that lead to better decisions and strategic business moves Big data analytics is the use of advanced analytic techniques against very large, diverse data sets that include different types such as structured/unstructured and streaming/batch, and different sizes from terabytes to zetabytes. Parth Soni

16. The 5V’s of Big Data Parth Soni

17. Importance of Big Data Analytics We can use Big Data Analytics for number of reasons: cost reductions time reductions new product development Optimized offerings Smart decision making Parth Soni

18. Big Data Analytics in ISO “ The insurance industry is–by definition and by practice–generally averse to risk. But thanks to the success of early adopters of data analytics, insurance companies in the $1.1-trillion U.S. market are scrambling to ramp up their own data analytics practices before it’s too late.” - Alex Woodie “You’re going to see an incredible level of customization at the consumer side, where people will be able to buy the insurance they want and need, priced and tailored to what they’re actually doing. It’s going to come to resemble far more what it does now a more traditional retail-oriented industry business.” - Seth Rachin Parth Soni

19. Big Data Analytics in ISO The insurance industry works on the principle of risk. Customers take out policies based on their assessment of a particularly bad thing happening to them, and insurers offer them cover based on their assessment of the cost of covering any claims. So wouldn’t it benefit everyone if there was a way to more accurately assess risks? Predictive modelling basically means working out what will happen in the future by measuring and understanding as much as we possibly can about what has happened in the past. “ Models ” are then built which show what is likely to happen in the future, based on the relationships between variables which we know to exit from examining the collected data from the past Parth Soni

20. Structure of Big Data Parth Soni

21. Big Data trends in Insurance Industry Parth Soni

22. What is Cloud Computing? Cloud computing  is a type of  Internet -based computing that provides shared computer processing resources and data to computers and other devices on demand. It is a model for enabling ubiquitous, on-demand access to a shared pool of configurable computing resources (e.g., computer networks, servers, storage, applications) which can be rapidly provisioned and released with minimal management effort. - Wikipedia Cloud computing is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications - Webopedia Parth Soni

23. Why Cloud Computing? The adoption of cloud computing will increase flexibility, scalability and cost-effective IT solutions. Cloud-based solutions help ISO to decrease their total cost of ownership by reducing the upfront installation costs of IT system. ISO can subscribe to cloud-based solutions to shift from on premise to software-as-a-service-based deployment model. Insurance firms shift to cloud-based IT infrastructure model to increase flexibility in IT resource utilization and attain cost-effectiveness through the pay-per-use pricing model. Parth Soni

24. 5 P’s of IT strategy Plan: Use technologies like BIA effectively to acquire customers and calculate dynamic premiums Develop a cost effective IT infrastructure using cloud Perspective: Consent with all the employees before embracing a new technology culture Develop a strategy to leverage ISO’s image of a partner to students and Universities Ploy: Partner with education forums for marketing to acquire new international students. Introduce new low cost insurance plans like renters and car insurance to the existing student network Pattern: Enhancing the already good customer experience Retain all successful policies and add technology as a new dimension to strategy Keep the functional website as it is Position To position itself as a low cost insurance provider giving the best value Differentiate itself from the competition through its unique customer base Bhavin Shah

25. IT strategy alignment tools Identify business drivers like cloud analytics and mobility that is driving ISO’s IT needs Develop an IT vision for ISO Assess ISO’s current IT alignment with respect to assets investment and organization Assess the alignment gap Prioritize It tasks according to criticality and business value Analyse various options for implementing the selected technology Create migration plan and an IT roadmap for ISO to align IT with business Adjust the IT strategy according to the business needs as and when needed 8 steps to IT and business alignment - CIO Index Bhavin Shah

26. Balanced scorecard method Financial: We measure the financial impact of the new strategy like sales growth net income etc. How ISO should appear to its stakeholders is also decided . Internal Business process: ISO needs to decide which business process it should excel at to satisfy its stakeholders. ISO will try to focus on easy claims and finding precise premiums using technology Customer: Evaluate how new strategy will impact customers. Also decide ISO’s positioning for the customer. ISO has decided to position itself as a low cost and focussed options to the students. Learning and growth: This involves training of the current IT and business staff in latest business and technology trends. This will help them to be on the same page when developing an IT strategy inline with business needs. Vision and Strategy Bhavin Shah

27. 5 Principles of delivering value Portfolio value for management process Real time tracking of customer data and use of BIA in calculating premiums can deliver considerable long term value Investing in cloud- based IT infrastructure Developing an innovation based culture Chunks of value Deliver value through focused marketing by partnering education forums Improve value proposition by fine tuning analytical predictions Deliver value through independent projects like a simple mobile app for easy claims Holistic orientation to technology view Simplify IT process across architectures for ease of use Incorporate analytics across mobile and desktop applications for an improved customer experience Work on quality of data for better insights Joint ownership of technology initiative Make sure that business people at ISO understand the value that IT delivers and take ownership towards success of IT Decision should be taken by keeping both IT and business in mind More small Experiments Experiment with new Big Data algorithms to get better predictive insights Experimentation on improving cloud services and bia in mobile applications Bhavin Shah

28. Business Improvement and Competitive Advantage Market Positioning: ISo plans to use cutting edge technologies and still focus on its original customer base which is international student. This exclusivity of service will position ISO uniquely in the minds of its customer thereby creating competitive advantage Dynamic premiums: ISO plans to provide dynamic premiums to each student based on past health records using BIA. This will reduce the premium amounts thereby giving ISO an even more competitive price to beat the competition Customer service: ISo is already providing multilingual customer support. ISO plans to add more languages to their customer support mechanisms. Also development of a mobile app will help clients in easy tracking, renewal and claims thereby winning on customer satisfaction Partnerships: ISO plans to partner leading software vendors for affordable cloud solutions and educational forums for targeted marketing Master Data Management: Using Master Data Management and cloud ISO plans to increase the security, uniformity and availability of sensitive customer data. MDM will also help in data management through ease of synchronizing. Bhavin Shah

29. Forming a strong relationship between IT and business Competence Credibility Interpersonal Interaction Trust leading to value IT staff should be trained about the core business processes of the insurance industry Excellence in IT innovation will improve brand reputation Strong implementation of business analytics to calculate premiums and check frauds will reduce load of the business guys Technology enhancements should be delivered on time to maintain credibility Meet all the compliance requirements so that the business does not run into any issues Partner with reputed suppliers for quality products Set standards for evaluation of the quality of work Train IT in business jargons and vice versa Organize weekly/bi-weekly meets between the IT and business teams for enhanced communication Develop a detailed communication plan and establish proper communication chanels IT and business teams need to be transparent about their processes to build trust Long term cooperation between IT and business teams will lead to value creation Bhavin Shah

30. Information Management 4) Build Information standards : Set standards for data quality and make sure data meets the quality and security needs. Use metadata to cross reference business models 3) Establish information stewardship : Information stewards, their roles and responsibilities are clearly stated. Information stewards are responsible for the accuracy, completeness and security. 2) Articulate operational components : Information management policies related to people , processes and technology is clearly articulated 1) Develop an Information management policy : Develop detailed IM policy aligned with ISO’s business goals. This policy sets the guidelines for privacy, accountability, risk tolerance and helps in making key decisions Parth Soni

31. Master Data Management Master Data Management: ISO will create a lot of structured and unstructured data most of which will be confidential details of customer We plan to setup a master data management( MDM ) plan. MDM is technology enabled discipline where business and IT work together for uniformity, accuracy, stewardship, semantic consistency and accountability of shared data assets MDM is focussed on a master or reference data. Synchronizing multiple data items and maintaining data quality are essential aspects of a MDM system Parth Soni

32. Implementation of Big Data Analytics in ISO Setting policy premiums : Insurers must set the price of premiums at a level which ensures them a profit by covering their risk, but also fits with the budget of the customer Transparency leading to benefit for customers : Customers don’t mind giving up some data if you’re transparent about what data you’re asking for, and they are getting real value back for it Tackling Fraudulent claims : Insurers use Big Data to tackle fraudulent claims through profiling and predictive modelling Marketing : ISO can become more efficient in offering products and services which will meet specific needs by conducting sentimental analysis of customer feedback & social media activity Increased understanding of Customer data : Through Big Data Analytics, ISO will be able to understand different needs & affordability of different International students in different parts of the globe. Also it will provide straight forward affiliations and claim centers with clear conditions. Parth Soni

33. Cloud Implementation process: Parth Soni

34. In tegration with Big Data: More than data storage and the ease of provisioning this at affordable cost on the cloud, the availability of powerful tools like IBM Watson, Google BigQuery, Tableau, and ETL tools like Informatica and Talend makes it very productive for users to extract, cleanse, and analyze data in the cloud.  Parth Soni

35. Improving customer experience Following are the measures that ISO is planning to take to improve customer experience: Exceptional customer support with quick turnaround time Special promotion offers and deals Building a personalized relation with the student right from the first day Referral bonuses Hassle free settlement of claims Easy interface for website and mobile applications Well trained customer support staff Parth Soni

36. Compliance Impacts and Needs SOX and NAIC Privacy Laws Industry Specific regulations International regulations Information Complying with new capital regulations that were designed for banks and do not always fit the insurance business model SOX provisions currently apply to only public companies but new NAIC regulations can put similar restrictions on private companies too Iso contains sensitive personal data and health data of customers and makes sure that all the customer data is secure ISO abides by various data security laws like Gramm-Leach-Bliely Act (GLBA) and Health insurance portability and accountability act (HIPPA) ISO makes sure that it complies with multiple regulatory bodies in the insurance industry ISO plans to perform an own risk and solvency assessment (OSRA) each year as an embedded process in risk based decision making as stated by the regulators Gautam Sawant

37. Suppliers and Alliances Cloud service suppliers: Amazon Web services Marketing partners:US NEWS and Edulix Network provider: AT&T Data visualization: tableau OS vendor: Microsoft Gautam Sawant

38. IT Governance IT Governance Process and Structure : IT governance involves defining a structure that ensures companies are aligned with its business strategies, that all the stakeholders’ voices are heard and there is a good way to measure the performance of IT Understanding business requirements for IT Planning and implementation of IT Risk and Resource Management Evaluation IT aligned with business strategy Gautam Sawant

39. IT Governance Components We identify the five components to IT governance: Strategic Alignment : This involves linking business and IT so they can work well together. Alignment is possible only when there is proper planning and effective communication between the business and IT leaders about costs, reporting and impacts. Value Delivery : This step makes sure that the IT department does what is required to deliver the promised benefits Risk Management : This step involves developing a formal risk management framework decides how IT measures accepts and manages risk. Resource Management : This step involves managing the resources more efficiently and effectively Performance measurement : This involves putting structure around measuring business performance by using methods like IT balanced scorecard. Gautam Sawant

40. Risk Mitigation Gautam Sawant

41. Communication Plan goals goals For effective communication ISO decides to use a five step communication plan. These are the five times when business and IT managers meet to discuss the plans: Identify business goals : The business and IT leaders meet for the first time to align the IT strategy with the business goals Deconstruct goals into behaviour : For each goal identify the discrete behaviour that the business leadership expects from the IT Create actionable communication Objectives : This meeting involves the discussion about the communication objectives. The best business objectives are as specific as possible. Ensure that stakeholders understand the plan : Make sure that both the IT and business departments understand the business and IT plan Re-asses the plan regularly : Assess the plan regularly with respect to the attainment of business goals. Gautam Sawant

42. Professional Assessment

43. Super swot analysis Strengths Affordable premium costs using analytics Great customer service tailor made for its clientele Easy renewal and claims due to mobile app Cost saving and flexibility provided by cloud Targeted marketing Weakness Strategy limited to the customer base of international student Huge costs associated with development of new technologies Tackling IT compliance and security issues Opportunity Expand into new markets Use technology to increase customer base Partner more universities Increasing the number of insurance services SO Strategies Lower premiums can help expand ISO to expand in developing markets Targeted marketing will help ISO get new customers very efficiently WO Strategies Huge costs will be justified if ISO decides to expand into new markets in the future Future strategies can target more customers than just international students Threats Security of data on cloud Current political environment not suitable for international students Change in insurance regulations for students competition in the insurance industry ST Strategies Setup a MDM which will improve data uniformity, availability Choosing right vendors for cloud infrastructure and negate considerable security threats Use technology for competitive advantage WT Strategies More investment can help ISO build more secure systems Monitoring compliance regularly to stay ahead of changing regulations Gautam Sawant

44. Ansoff Matrix Gautam Sawant

45. Porter’s five forces N ew Entrants Threat:Low Buyers Threat:Low Suppliers Threat: High Substitutes Threat: Low Industry Rivals Threat: Medium ISO’s low price a barrier to new entrants Switching insurers is difficult Insurance industry build on trust High capital requirement Cloud service suppliers are have more customers every day leading to low bargaining power Partner cooperation essential for ISO Insurance is an essential service and cannot be substituted Insurance a necessity which reduces buyer’s power Switching difficult for buyers Buyers unlikely to find cheaper alternatives Insurance industry is competitive and there is a threat of rivals ISO’s positioning reduces the threat of rivals Gautam Sawant

46. AS-IS TO-BE Business Strategy AS-IS TO-BE Products and Services : Currently limited to only student insurance Online products limited to only a website Products and Services : Plans to add new insurance services like renters and car Insurance Plans to develop a mobile application in the future Customers/Clients : ISO serves only 30% of its target market which is the international students Currently business limited students Customer/Clients : Plans to capture 70% of the international student market No plans of expanding beyond students immediately but expansion of customer will be considered in the future Competitors : Currently competing only on price IT infrastructure not as robust as competitors Competitors : Plans to leverage technology to compete more sustainably Cloud and mobility will make the infrastructure market ready Gautam Sawant

47. AS-IS TO-BE Business Strategy(contd.) AS-IS TO-BE Distinctive competencies : Multi-lingual customer service Most affordable plans Distinctive competencies : Plans to use analytics for premium calculations in addition to the customer service Plan to go ahead with the same strategy with some insights from analytics Governance : Internal Decisions: The focus was only on competing on price and giving the best customer service Regulatory: Currently abiding to all current regulations set by bodies like SOX Partners: Currently partners limited to a few universities in the US Governance : Internal Decisions: Plans to use technology effectively in addition to the current objectives Regulatory: Plans to comply with new regulations that are being set by new regulatory bodies such as NAIC and also take into account new IT compliance regulations Partners: Plans to increase the number of university partners and also partner cloud vendors for infrastructure and educational forums for effective marketing Gautam Sawant

48. AS-IS TO-BE Business Infrastructure AS-IS TO-BE Organization Structure : Currently following a functional structure wherein business and IT teams work in separate silos Currently only three verticals are present namely insurance business(marketing also included), IT and HR Organization Structure : Plans to use a matrix structure for better coordination between business and IT, silos will be maintained but the reporting will be more cross functional Plans to split the insurance vertical into sub silos for the new insurance services Key Processes : Most of the key processes not automated Key Processes : Plans to automate some key processes like calculating premiums and fraud detection using analytics Human Resources : Currently human resource has a very limited role as the staff is small Human Resources : With new recruiting in IT as well as the business teams human resource teams will play a much more crucial plan Gautam Sawant

49. AS-IS TO-BE IT Strategy AS-IS TO-BE Technology Scope : Key Applications: ISO currently just has the website which can be used to buy and renew insurance Key Technologies: This is a simple J2EE application using HTML, javascript, restful web services using spring framework Technology Scope : Key Applications: Plans to add a mobile application that can be used to buy and renew policies and claim insurance Key Technologies: The new application will support IOS and Android and will be connected to a Master database Systemic Competencies: Current web applications is stable and can handle basic activities like buying and renewing insurance Systemic Competencies: Plans to add dynamic capability to evaluate premiums based on information provided by the customer Governance: IT was little part of ISO’s business and ISO has aimed to keep a clean and cost effective infrastructure Governance: Shifting to cloud will make ISO more flexible. ISO also plans to use MDM which will help with better governance Gautam Sawant

50. AS-IS TO-BE IT Infrastructure AS-IS TO-BE Architecture: The current web application follows a J2EE architecture Architecture: Plans to make the current architecture cloud ready and develop IOS and android based mobile apps Key Processes : Currently only the processes like buying and renewal of insurance were handled by the IT infrastructure Key Processes : ISO plans to add more mediums to buy and renew insurance by introducing the mobile app. ISO is also leveraging analytics for processes like premium calculation and fraud detection Human Resource : Currently IT resources are very limited and hence HR policies not defined in depth Human Resource : With an increase in the IT staff ISO plans to bring in more robust HR policies which will also help in smooth transition as far as company culture is concerned Gautam Sawant

51. Market Analysis and Demand As of 2015/16 there are 1043839 international students studying in USA Number of international student enrollment is rising at more than 10% per year ISO will also try to expand its customer base beyond students in the next strategic cycle as insurance remains and healthcare remain one of the largest sectors in US Gautam Sawant

52. Target Market Due to such a growth in the international student enrollment in US the target market for ISO will be the international students ISO can consider expanding its target audience to general public in USA in the next strategic cycle Gautam Sawant

53. Application Portfolio Analysis (positioning map) High price Low value ( coverage ) High value (coverage) Low price ISO positioned as a low price high value insurance provide Gautam Sawant

54. BCG Matrix Vehicle Insurance Dental Insurance Student Health Insurance Renters, Life Insurance Gautam Sawant

55. IT Service Design

56. Stages of the Service Design SD Understanding SD Explaining SD Filtering SD Generating SD Thinking SD Realizing Finding out and learning Make it happen Giving Strategic Directions Developing Concepts Selecting the best Enabling Understanding Zheng Shang

57. IT Service Process SD U nderstanding Strengthen competitiveness at the insurance market SD Thinking Differentiate service & Products. Lower the price SD Generating Integrated data management. Mobile APP. Synchronized database on portable device SD Filtering Selecting ideas and combining concepts. Evaluating results and solutions SD ExplaIning Making concepts tangible, showing future possibilities and giving overviews SD Realizing Implementation and delivery, providing guidelines and plans Zheng Shang

58. Objectives of Technology Roadmap To reach a consensus about a set of needs those are required technology and satisfy To provide a mechanism to help forecast technology developments, To provide a framework to help plan and coordinate technology developments. Zheng Shang

59. Phases of Technology Roadmap Phase 1: Preliminary Activity Phase 2: Development of Technology Roadmap Phase 3: Follow-up Activity Scope Zheng Shang

60. Phase 1： Preliminary Phase Zheng Shang Step1： S atisfy Essential Conditions Step2: Provide Sponsorship/Leadership Step3: Define the Scope and Boundaries for the Technology Roadmap

61. Phase 2: Development Phase Step1: Identify the products that will be the focus of the roadmap Step2: Identify the critical system requirements and their targets Step3: Specify the major technology areas Step4: Specify the technology drivers and their targets Step5: Identify alternatives and their timelines Step6: Recommend the technology alternatives that should be pursued Step7: Create the technology roadmap report Zheng Shang

62. Phase 3: Follow-Up Activity Phase Roadmap must be critiqued, validated and accepted by the group that will be involved in any implementation A practical plan needs to be developed using the technology roadmap A periodical review and update point is needed Zheng Shang

63. IT Business Model Jash Shethia Marketing partners: Edulix USNEWS Technology Partners: Amazon web services tableau Insurance services Student health insurance Renters insurance Vehicle insurance Life insurance Insurance premiums Customised insurance plans Value generated from referrals Value from partnerships Cost saving from cloud Value from real time analytics Multi-lingual customer service Customised premiums Custom based plans State of the art technology for customer support Company employees Data analysts IT Team Business Team ISO website Mobile App Main focus only on the international students in US Plans to expand the customer base in the future Salaries cost Cloud Infrastructure costs Marketing expenditure Maintenance costs Insurance premiums Alliances

64. Aligning IT and Business Models Communications Weekly meetings between business and IT managers in order to exchange current progresses, problems and needs Partnership Emphasize partnership through shared goals, risks, rewards and penalties. Assess business perception of IT value Competency / Value Measurement Implement IT and business metrics as defined in the objectives. Scope & Architecture Increase transparency of architecture, agility and flexibility through standards and continuous assessment Governance Allocate the financial resources according to the defined IT strategy Skills Emphasize culture of innovation and internal trust between business and IT through trainings and group activities IT Business Alignment Mechanism Jash Shethia

65. 8 P’s of Service Marketing Target Market Place U nited states. Major International cities Process - C ustomers register for a service/s - Payment for the service -Delivery of services like handling claims Product Product Insurance Services like health, auto, Home etc. Customized services Price General Service premiums, Customized Service Prices Productivity & Quality Faster, personalized and competitive services Physical E vidence t Claim sites, Company HQ’s, Customer Services Sites, University and schools. People International Students Hospitals, Home owners, Promotion Promotional Codes, Discount for referrals, Jash Shethia

66. Value Proposition Jash Shethia

67. Marketing Segmentation Jash Shethia

68. Customer Satisfaction and Loyalty Provide excellent product training to all employees. Train the employees in customer empathy. Build infrastructure that supports the customer service. Resolves customer issues at the first point of contact. Empower employees to make customers happy. Deliver on promises. Make it personal. Jash Shethia

69. P/L Analysis Jash Shethia

70. Revenue Projections and Expense Forecasts: Jash Shethia

71. IT budget Cl o ud computing: Total amount over a 3 year cycle 1,153,360 DESCRIPTION QUANTITY AMOUNT Physical Servers & VMware Licensing 5 $103,000 Storage Area Networks (SAN) 1 $28,890 Network Switches 2 $50,958 Server Cabinet & PDUs 3 $6,000 Power and Cooling Costs 3432 $237,600 Number of Systems FTEs to manage the environment 2 $450,000 GB of Memory (N+2 Redundant) 394 $255,312 GB of SAN Storage Space 1000 $21,600 Jash Shethia

72. Customer Service Strategy Differentiation: Provide customized, personal insurance services. Mobile Application functionality for ease of use. Problem Solving capabilities based on different national and regional demographics. Issues resolved at first point of contact. Seamless service and experienced employees Improve services by means of feedba ck. Jash Shethia

73. Delivery Options Electronic channels: Mobile Applications Web Services Social Media University Websites Helpline Physical Channel: Student Orientations Student Organizations Community Centers Jash Shethia

74. Technology Based on the IT Strategy, it is necessary to adopt and integrate new technologies like BIA, Cloud based & computing, IoT into daily company operations. The following benefits are expected: Predict incoming orders Find the right price point for different consumers Better alignment with strategy Optimization of available operations Find patterns in customer behaviour Customizable Pric ing Reduce operational costs Improve customer service Jash Shethia

75. Human Resources Jash Shethia

76. Implementation Strategy overview ISO Business Units ISO Health Care ISO C ar Insurance ISO Travel Insurance ISO Financial Insurance Program leadership & management Business and IT alignment Plan & Design System integration Shared operation platform ISO Business Units ISO Technology departments Technology platform Cloud computing Mobile application BI analysis Internet of things Data security management Master data management Network connection & access Mobile data Social media data Cloud storage data Third party data Shared operation platform Company’s cloud storage platform Platform which has access to third party database Zhongyang Sheng

77. Implementation Strategy deployment Building model in cloud computing with data in storage Collecting business cases and data to cloud storage Based on these models, using BI to make prediction or analysis Collecting data from customers’ ISO app Collecting data from customers’ health record or traffic record Collecting data from customers’ social media …... Help students purchasing the most cost effective and the most suitable insurance for them Making instant pay based on the photo (medical bills, Degree of vehicle damage) sent by customers and BI …... For new customers, using BI algorithm based on their personal information or answers on survey For old customers, using BI algorithm based on the data in their personal cloud storage(or from mobile app, social media hospital and traffic record) Zhongyang Sheng

78. Implementation Strategy development Feedback & Personal data collecting BI Analysis & Cloud computing Deploy Development Implement Zhongyang Sheng

79. Implementation milestone Deploy Infrastructure to build cloud storage (physical server) Build mobile application (3 months) Data model development by implementing cloud computing Getting access to customers’ social media, hospital record personal database etc Collecting data from different sources Data analysis (6 months) Build stable digital transfer to make instant payment for customers Enable all channels’ service (3 months) Overall 12 months B uild Collect Deliver Zhongyang Sheng

80. Measurement and Metrics:

81. Measurement Metrics The performance metrics the organization needs to consider are: 1) Traditional measures: Return on investment, Return on equity, shareholder equity, market share, ISO product profitability from different business units 2) New metrics: customer satisfaction, customer profitability ( insurance charge and compensation), customer lifetime value ( see ISO a way of investment) 3) Cloud computing metrics: Speed, Accuracy of prediction, Quality of data 4) Alliance and partnerships: See if the overall sales increase after selling insurance on Amazon 5) Mobile application & customers’ individual cloud service: customer satisfaction on the speed of insurance payment, the simplicity of the interface, see if the recommendation fit customers need Zhongyang Sheng

82. Balance scorecard (page 33) Dashboard Market Share KPI on different BUs & Cloud computing metrics/ BIA metrics Finance and customers’ change Zhongyang Sheng

83. Issues

84. Porter’s 6 additional forces for Threats New Entrants Threat:Low Suppliers Threat: High Substitutes Threat: Low Buyers Threat:Low Industry Rivals Threat: Medium Political & Legal Environment Complementors Technical Environment Demographic Environment Social Environment Macroeconomic Environment Bhavin Shah

85. Porter’s Six additional forces for Threats Political and Legal Environment Threats: Medium Technology Environment Threats: High Macroeconomic Environment Threats: Low Social Environment Threats: Low Demographic Environment Threats: Medium Complementors Threats: Low Bhavin Shah

86. Conclusions ISO should thus use technology to grow sustainably After all the planning the focus should shift on proper implementation of plans ISO should keep the focus on keeping the best customer service and affordability Bhavin Shah

87. Linking the golden thread with ISO Thus ISO will try to improve its business processes and gain a competitive by aligning it business objectives with IT Strategy . Bhavin Shah

88. Recommendations/Future Scope The current strategy should be executed for the next 3 years The success of this strategy should be leveraged for future expansion ISO should plan to expand the customer base from just international students to all regular customers in US ISO can also consider expanding into new developing markets as a holistic insurance service provider Bhavin Shah