Chapter 9: Business Needs And Information Technology Alignment Flashcards
1
Q
Insurer’s Information Needs
A
Classified into three levels:
- Operational
- Managerial
- Strategic
2
Q
Operational-Level Information Neefs
A
- Customer information
- Underwriting information
- Claims information
- Accounting and financial information
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
4
Q
Sources of Security and Control Risks
A
Weaknesses in data security allow risks from three sources:
- Internal
- External
- Collusive
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
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
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
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
9
Q
Metrics of Successful Alignment
A
- Percentage of downtime
- Functionality
- Problem resolution