Case Study 2: Modernization of NTUC Income

Q1. What were the problems faced by Income in this case? How were the problems resolved by the new digital system? 

• Income’s insurance processes very tedious and paper based. 
• The collection schedule could introduce delays of two or three days.
• Investment to upgrade the HP 3000 mainframe that hosted the core insurance application broke down – took several months to restore the data loss if hardware crashes
• In-house IT team – Broke multiple times, halted the system’s and caused temporary interruption 
• Started with customers meeting an agent, filling in forms and submitting documents 
• Then submit forms to branches from couriers to the office service department 
• Office service would log documents, sort them, and then send them to departments for underwriting 
• Proposal allocated to underwriting staff then sent to computer service department lastly redistributed 
• For storage all the original document packed and sent to warehouse, staff log and store the document

Q2. What types of information systems and business processes were used by Income before migrating to the fully digital system?

• In 2002, upgrade the HP 3000 mainframe that hosted the core insurance applications as well as the accounting and management information systems but still frequently broke down.
• HP 3000 only backup system allowed restoration of   previous days backup data.
• The COBOL programs were also developed in early 1980s and maintained by Incomes in-house IT team. 
• To be quite cumbersome and time taken to launch new product ranged.
• New customer application for motor insurance.

Q3. Describe the Information systems and IT infrastructure at Income after migrating to the fully digital system? 

• Information system
• Income change to Java based eBao life system from eBao technology
• Its compromised 3 subsystems which is Policy Administration, Sales Management and Supplementary Resources
• Consist of customercentric design, seamless integration with imaging and barcode technology
• Immediately on high availability platform 
• IT infrastructure
• Has been replaced with a more robust, scalable architecture 
• All servicing branches has been replace with scanner
• Monitor changed into 20inches
• PC Ram size upgraded to 128mb
• new software and hardware for application servers, web servers, and disk storage system were installed

Q4. What benefits did Income reap from the new system? 

• 500 office staff and 3400 insurance advisors could access the system anytime , anywhere
• Staff member who telecommute enjoyed faster access to information almost as fast as those who accessed the information in the office
• Improve cross sells and customer service
• System become more flexible
• Cut the time and cost needed to design or launch new product
• Support agents and brokers
• Customer can do online services easily

Q5. How well is Income prepared for the future? Are the problems described in the case likely to be repeated? 

• Income has continuously upgrade their software system according to the evolving of technology from paper based system to digital web-based system
• This is to ensure the easiness of their services 
• Income also ensured that their customers will always get the best service from them
• Those problem would not likely to be incurred if Income continuously analyzes the problem and drawbacks of their system
• And if Income keep on finding the best and new ways to solve the problems, it might never occurred again