Insurers spend a fortune on IT but have trouble measuring the value they get from their investment. Isn't it time to know?
Insurers have spent heavily to improve their technology capabilities but are still left questioning the value they are getting from IT. Managing IT value is hard because 1) the responsibility for managing IT value is fragmented across the organization and often lies within competing organizations, and 2) the processes and tools in place often are not designed to measure value at a deep enough level to inform decision making; instead, they report history.
The quest for IT value requires new tools and a new mindset- what we refer to as a new "ecosystem". To achieve their expected ROI, insurers should improve their IT value ecosystem by adopting an integrated framework designed to help them manage their IT investments. Working within the right framework, insurers can position themselves to create a solid foundation of data to support fact-based decision making.
Paul Frank and Bruce Brodie discuss how financial institutions can implement a strategic framework to manage IT investments.