Chapter 9: Business Needs And Information Technology Alignment Flashcards

1
Q

Insurer’s Information Needs

A

Classified into three levels:

  • Operational
  • Managerial
  • Strategic
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2
Q

Operational-Level Information Neefs

A
  • Customer information
  • Underwriting information
  • Claims information
  • Accounting and financial information
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3
Q

Types of Business Information Information Systems (BIS)

A
  • Transaction Processing System (TPS)
  • Database Management Systems (DBMS)
  • Document Management Systems (DMS)
  • Automated Workflow Systems
  • Decision Support Systems (DSS)
  • Expert Systems (ES)
  • Customer-focused collection and safety systems
  • Electronic and mobile commerce
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4
Q

Sources of Security and Control Risks

A

Weaknesses in data security allow risks from three sources:

  • Internal
  • External
  • Collusive
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5
Q

Security Risks and Responses

A
  • Destruction of data or programs
  • Espionage
  • Invasion of privacy
  • Social networks
  • Employee fraud
  • Human error
  • Cloud computing
  • Mobile devices
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6
Q

Aligning Insurer and IT Strategy

A
  • Importance of IT and business strategy alignment
  • Benefits and challenges
  • Plan for alignment
  • Metics of successful alignment
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7
Q

Benefits of Aligning Insurer and IT Strategy

A
  • Sustainable improvements in service level realized
  • Cost reduced
  • Compliance with a state’s insurance department regulations attained
  • Private or privileged information protected
  • Best practices standardized
  • Productivity increased
  • Communication enhanced
  • Production workflow expedite
  • Competitive advantage obtained via faster implementation of new technology
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8
Q

Challenges of Aligning Insurer and IT Strategy

A
  • Controlling expenses
  • Changing IT or business metrics
  • Clearly understanding customers’ needs
  • Management financial support
  • Lack of prioritization
  • Lack of trust
  • Overly complex IT infrastructure
  • IT as a separate unit
  • Lack of understanding of insurer and its needs
  • Lack of understanding of IT and its capabilities
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9
Q

Metrics of Successful Alignment

A
  • Percentage of downtime
  • Functionality
  • Problem resolution
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