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Channeling Marcus Ryu
It's been a busy few weeks. Among other things I have had the opportunity to attend and to speak at the Guidewire Connections User Group and also ISOTech 2007. Both events were successful in their different ways and I had the chance to talk with and listen to some interesting industry professionals. Of the speakers I heard and the topics they addressed the one which resonated the most with me was Marcus Ryu's talk on Foundational Technology Change" at the Guidewire show. Marcus,[url=http://cheapnikesoccercleatsmercurial.webmium.com/][b]nike soccer cleats mercurial Discount Soccer Cleats[/b][/url], who is Guidewire's VP of Strategy, is one of those people who when you listen to him speak,[url=http://monclerjackenoutletch.albirank.net/][b]Moncler Weste Billig Moncler Jacken Outlet Moncler Outlet Österreich[/b][/url], makes you think "I wish I'd said that". He also talks about the things I care about and am interested in, such as core system deployment and legacy migration and mainframe retirement.
So, without his knowledge or consent I am going to give this column over to Marcus' thesis concerning "Foundational Technology Change",[url=http://duveticaoutletcanada.halod.com/][b]duvetica down jackets men sale[/b][/url], which I will hopefully paraphrase without too much mutilation. Foundational Technology is the big stuff - platforms, languages, operating systems and in the application systems world - policy,[url=http://woolricheliteparka.blogspot.com/][b]woolrich elite parka[b][/url], claims, billing and reinsurance systems. In reality the replacement of core systems with modern alternatives often means also the introduction of new languages, platforms and operating systems. Marcus made five points:
Foundational change causes major disruption across the adopting organization. This disruption comes in several forms and includes changes to business and operational practices,[url=http://goedkopemonclerjassendamesheren.olimx.com/][b]http://goedkopemonclerjassendamesheren.olimx.com/[/b][/url], the necessity to invent throw-away interim work-around processes and workflows, and the need in the IT world to graft new and different technologies onto what is usually a complex and rigid environment. Not only are such changes disruptive,[url=http://www.duveticajacketsjp.com/][b]デュベティカダウンジャケット[/b][/url], the disruption is sustained over a significant period of time, often several years.
Few carriers have the capacity to support the change of more than one core application system at the same time. The project simply becomes too complex and the risks too great. Or even more confusingly,[url=http://billigtmonclerdunjackastockholmrea.olimx.com/][b]http://billigtmonclerdunjackastockholmrea.olimx.com/[/b][/url], the new policy system goes live for auto but the old system and its workflow remains for homeowners. These types of problems are significantly increased if independent agents are involved in the deployment and these more occasional users are confronted with different look and feel,[url=http://parajumpersonsalestores.blogspot.com/][b]Parajumpers on Sale[/b][/url], rules execution and workflow as they move from one line of business to another. The option to wait until the whole system has been re-done before go live would lead to a lengthy implementation and the risk that if something needs to be modified it is not discovered early in the process and changed.
I think most of us have two gut level notions concerning the justification of foundational technology change: first; most cost benefit analyses are arbitrary and difficult to justify; and second, replacing core systems has all sorts of concrete and potential benefits that pay extraordinary dividends over time. However, the size and timing of those dividends depend largely on what the carrier does with their new systems over time. For example, a carrier that enters new markets, updates and changes products and introduces new customer services and distribution channels will gain far greater benefit from the speed and flexibility of its new systems than a carrier that remains largely status-quo in terms of its business model. To use Marcus' analogy,[url=http://billigamonclerjackadamsverigeonline.albirank.net/][b]Billiga Moncler Jacka Dam Sverige Online Moncler Jackor Herr Outlet[/b][/url], cost justifying a new foundational technology is like trying to cost justify sending your kid to college. Funding higher education is expensive,[url=http://www.duveticajacketsjp.com/][b]デュベチカ専売店[/b][/url], only the cost is truly known, the action clearly has many potential benefits (better job,[url=http://parajumperssale.webmium.com/][b]Parajumpers Jackets On Sale Parajumpers Parka Coat Online Store[/url], higher income, powerful contact network,[url=http://duveticashop.olimx.com/][b]Buy duvetica jackets online duvetica down jackets men sale uk outlet[b][/url], general ability to think and act in more thoughtful and appropriate ways) but the reality is that for any one student the outcome will be more or less cost justified depending on what they actually use their education to achieve.
As we noted above,[url=http://newkevindurantshoes2012.blogspot.com/][b]http://newkevindurantshoes2012.blogspot.com/[/b][/url], carriers deploy new foundational technologies unevenly and in phases. Carriers do this because it is too big and complex and risky to do otherwise. What this fact entails is that a phase or cycle of adoption occurs which usually solves part of an overall problem in a partial way. This change must be adopted and worked with for a period of time before it can be improved and perfected. Carriers that implement rules engines don't write all the rules and then implement the system as a complete and finished entity. Rather they write a small (relatively simple) rules subset, deploy the subset and test its efficacy in the business environment,[url=http://billigeparajumpersjackendamen.albirank.net/][b]Billige Parajumpers jacken damen parajumpers outlet long bear herren[/b][/url], get commitment, buy-in and feedback,[url=http://duveticadownjacketssale.webmium.com/][b]http://duveticadownjacketssale.webmium.com/[/b][/url], and enhance and update the rule-set. To do otherwise would almost certainly cause chaos.
So, if adopting foundational technology change is so hard to do and difficult to justify why take the risk? Shortly after hearing Marcus' speech at the Guidewire conference I gave a speech of my own at ISOTECH. My talk was concerned with what is coming in the Claims technology arena and focused on replacement of core claims administration systems, the use of fraud analytics and the impact of event data recorders and cashless payments. The conclusion of my talk was very similar to Marcus', thus:the pressure for these changes, based on perceived benefits is now overwhelming and your competitors are adopting them nowthe people who wrote and developed your legacy technologies are retiring and are not being replacedthese new technologies present significant competitive advantagesthe adoption of these new technologies creates a platform for further change which enables the adopter to further distance themselves from the competition.
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