west bend mutual insurance company
realizing the benefits of major technology initiatives
Investing in technology should never be a gamble. But
with multiple target areas for improvement and a myriad of vendors to
address them, how can a company be sure that a sizeable systems investment
will pay off?
The Robert E. Nolan Company is an excellent place to
start in ensuring that the long-term benefits exceed the initial outlay
for technology enhancements and process improvements. An objective analysis
can help confirm the merits of the initial investment, and maximize its
ongoing returns. Consider it low-cost insurance to hedge a bet that high-cost
technology improvements will result in a winning solution.
Purchasing a New IDMS System
Recently, one of our clients -- West Bend Mutual Insurance
Company-- was on the threshold of investing over $4 million in an Integrated
Document Management System (IDMS) including document imaging and production
workflow. They were concerned that the expenditure wasn’t sufficiently
cost justified. Plus, they understood that the full potential of the new
technology would not be realized by simply plugging it into the wall.
The company’s entire approach to processing work would have to change,
and they needed assistance determining the impact of the conversion.
The Nolan Company was enlisted as a strategic partner
to provide an objective analysis of the costs and benefits associated
with installing and maintaining an IDMS for claims and policy processing.
This analysis would also provide an operational blueprint for optimum
technology and talent use beyond the implementation stage.
New Technology Impact Study
Utilizing an in-depth knowledge of integrating people,
processes and technology, the Nolan team was quickly able to understand
how the new technology would impact each job in claims and policy processing.
Nolan consultants held discussions with members of each area of the company
that would be impacted, which involved reviewing every position and job.
The team gathered detailed data on task frequencies and completion times,
and then developed estimates as to how an IDMS would reduce the cost of
those tasks.
All of the benefits were priced and integrated with the
technology rollout plan, presenting the client with a time-phased view
of staffing implications that would help them decide how to handle attrition,
both during and after the rollout.
The Nolan team also developed a list of potential cost
impacts beyond the installation and licensing costs already recognized
by the technology vendor. As a direct result, Nolan was able to identify
and quantify additional costs that had not been anticipated.
Presentation and Justification
The final step in the effort was to quantify the net
present value and return on investment (ROI) and to develop Board presentation
materials. Nolan supported every step of the approval process, and the
Board of Directors agreed to proceed with the IDMS investment.
