Auto Insurance
Abstract
This paper talks about operational innovation which is a competitive weapon at progressive insurance. The case is summarized and the operations management techniques used in this case are explored.
Operational Innovation Operations strategy specifies the means by which operations implements corporate strategy and helps to build a customer-driven firm (Krajewski J. 2009, pp.9).
It links long-term and short-term operations decisions to corporate strategy and develops the capabilities the firm needs to be competitive. (Krajewski J. 2009, pp.9). Operations are decisions that are made inside an organization. Just like any other ideas, operations have to be carefully reviewed and implemented in order to achieve the desired outcome.
Discussion
Progressive Insurance, an automobile insurer that started business in 1937, had approximately $1.3 billion in sales in 1991 (Krajewski J. 2009, pp.9). By 2004 it had more than $11 billion in sales, and by 2007 was ranked 159 in the Fortune 500 list with $14 billion in sales covering 10 million policies in force (Krajewski J. 2009, pp.9). Progressive claims to offer low prices and better service though operational innovation. The operations strategies at progressive are are as follows;
Progressive uses a dedicated Web site, ForAgentsOnly.com (FAO), lets agents quickly, easily, and securely access payments; view policy, billing, and claims information; and send quote information directly to customers via e-mail. Customers are encouraged to go online to perform routine tasks such as address changes or simple billing inquiries (Krajewski J. 2009, pp.9). The use of web sites is very beneficial to agents and customers. This is very convenient and allows you to report damage and accident information.
Immediate Response Claims Handling allows a claimant to now reach a Progressive representative by phone 24 hours a day. The representative immediately
This paper talks about operational innovation which is a competitive weapon at progressive insurance. The case is summarized and the operations management techniques used in this case are explored.
Operational Innovation Operations strategy specifies the means by which operations implements corporate strategy and helps to build a customer-driven firm (Krajewski J. 2009, pp.9).
It links long-term and short-term operations decisions to corporate strategy and develops the capabilities the firm needs to be competitive. (Krajewski J. 2009, pp.9). Operations are decisions that are made inside an organization. Just like any other ideas, operations have to be carefully reviewed and implemented in order to achieve the desired outcome.
Discussion
Progressive Insurance, an automobile insurer that started business in 1937, had approximately $1.3 billion in sales in 1991 (Krajewski J. 2009, pp.9). By 2004 it had more than $11 billion in sales, and by 2007 was ranked 159 in the Fortune 500 list with $14 billion in sales covering 10 million policies in force (Krajewski J. 2009, pp.9). Progressive claims to offer low prices and better service though operational innovation. The operations strategies at progressive are are as follows;
Progressive uses a dedicated Web site, ForAgentsOnly.com (FAO), lets agents quickly, easily, and securely access payments; view policy, billing, and claims information; and send quote information directly to customers via e-mail. Customers are encouraged to go online to perform routine tasks such as address changes or simple billing inquiries (Krajewski J. 2009, pp.9). The use of web sites is very beneficial to agents and customers. This is very convenient and allows you to report damage and accident information.
Immediate Response Claims Handling allows a claimant to now reach a Progressive representative by phone 24 hours a day. The representative immediately