Case Study

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QUESTION 1

From the article we can see that IT has the ability to provide competitive advantage for Lennox as an insurance company. The CIO had a plan to build a sophisticated computer aided system that will help the company to connect with many agents nationwide to organize business with their customers and bring success to the company. Lifexpress with the help of technology are going to use a simple laptop to develop financial profile of a customer, to identify and explore Lenox’s most appropriate policies, to conduct initial analysis, to compare the company’s details to know the requirement for a better strategy can be done easily using technology and also in less time. As the author said “A process that had taken anywhere from four to six weeks could now be completed in a few days or, in some instances, a matter of hours.” So using technology an insurance company can minimize their workload at the same time do it more efficiently. For example using technology a company can transform from being manual to automatic. The works, which were done manually could be done through technology and would have been more efficient and less time consuming. And by using technology we a company can remove the middle man from the whole process, for example in this company the CIO has to report to CFO and then the report eventually goes to CEO, so if technology is used here and a database is created, the report can directly go to CEO without the help of CFO. Through technology it becomes easier to have control on the workflow and keep track of progress. It is easier to communicate through technology, above that it becomes cheaper to run a company using technology as “it helps the firms in reducing the costs by eliminating the mail rooms, paper files as well as the data entry clerks.” Above all the most important thing for a company is its information and data, which is managed proficiently by using technology, it helps the company to store data, rate them and the company, manage data etc. that also reduces the overall cost for the company. Along with that technologies help the company to identify risk characteristics in their business and also a way to overcome come the risk by helping the company to develop better solutions with innovative technologies.

QUESTION 2(a)
Lenox is not a company with high technology support and it has been suffering for these. They are highly dependent on independent agents for their selling but they also need to provide these agents with all the tools and technology they require. That is why they hired a CIO to develop the IT department in their company. And according to the CIO there was a lot to do but she had to do it as fast as possible because the other company that is Lenox’s competitors have already started using innovative technology for their business purpose and automated there business process, but the people working at Lenox were not very good with technology as they have been using an agent for that. So when they felt that other companies are getting served better due to technology, they hired a CIO to work on their development in technology field. The CIO went through all the documentation and information about the company and designed a system for the company to make it automated. But the system took very long time and failed at the end, as the people in Lenox were not familiar with technology. So I think building a system for the company when the company is not at a good stage was not a great approach. Building a system for a particular company can be good when the company has a stable state and has a lot of sources. But Lenox was not in a good position and their competitors were already ahead of them. So instead of building they could buy the system and use it. By doing that they could use other companies as reference to teach the workers to use the system, “She needed to show Lenox’s business managers how other companies use technology and then guide them as they championed such...
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