Insurance Networking News - Strategies 2011

lessons from the Habitrail®

By TeRRy BRown, VICe PResIden T of ImPlemen Ta TIon seRVICes, InsuResof T

It’s an age old struggle in this business—deciding between implementing a full enterprise solution vs. implementing ‘best of breed’ solutions from various vendors within the insurance vertical. You can make an argument in favor or against either approach. Enterprise solutions are typically easier to implement and allow carriers to clearly define work effort and costs by working with just one vendor. However, enterprise solutions can also be a bit limiting. Maybe not all of the components of the system are as feature-rich or as robust as others or maybe the various business units within the carrier cannot agree on which solution best fits their needs. Best of breed solutions, on the other hand, allow carriers to choose from among 60+ vendors in the space for the best systems for them by component. It seems like this approach would make all the business units happy. However, best of breed solutions are inherently more complex and risky. In addition to evaluating the functionality offered by each solution, carriers must determine how each system will integrate with the others. Issues of data transparency, maintaining a consistent user experience, and dealing with various technology stacks complicate both the evaluation and the implementation processes. Ideally, what carriers want and need is the best of both worlds—the ability to implement solutions by component, as their business needs and budgets dictate, and to eventually wind up with an enterprise-wide solution that provides best of breed functionality for all core components.

This sort of ‘plug and go’ mentality reminds me of the Habitrail system I built
and maintained for my favorite pet hamster, as a little girl. I was one of those kids
that always wanted the newest, coolest stuff and Habitrail was my parents’ way of
giving me at least some of what I wanted without breaking the bank. Remember
the Habitrail? It could be as basic or as cool as you wanted to make it. What started
out as a standard plastic box, big enough for one hamster, could quickly evolve
into sections that included a bigger space for multiple hamsters as well as the
now famous hamster wheel treadmill, a jungle gym and even climbing walls and
a swimming pool! If my parents had limited me to a standard cage, not capable of
expansion, I would soon have been asking for a replacement cage for my birthday
and would have tossed the current cage out with the trash. Not a good investment!
Similarly, if they purchased various add-ons from other manufacturers and relied on
me to duct tape them together, that would have spelled serious trouble for both me
and for my poor pet hamster, who would undoubtedly have found his way out of the
cage and into harm’s way. With the Habitrail, my parents provided me with a starter
cage for my first hamster and the ability to add on when needed or desired and at
a more reasonable cost. Each new module was provided by the same manufacturer
and easily plugged into place, expanding my hamster’s living space and feeding my
need to keep up with the latest cool stuff I saw on TV.