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.
Evaluating and Purchasing a New Technology Platform
Recently, one of our clients 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.
By selecting Nolan to assist them—at less than 1% of the cost to install an IDMS—the company received assurance that the investment was justified and learned the necessary steps to ensure that certain benefits were realized. The Nolan consultants also quantified the increased workloads that claims adjusters and underwriters will absorb once IDMS is fully operational -- vital information in reducing unit costs. As an added benefit, the study identified several process improvement opportunities unrelated to installing the IDMS.
By selecting Nolan to assist them -- at less than 1% of the cost to install an IDMS -- the company received assurance that the investment was justified.
The Payoff?
The client was able to move forward with confidence in a technology investment backed by a sound implementation and maintenance strategy. With Nolan, experience pays…and our clients win.