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Modernize Your Legacy Technology

Maximize Your Business Agility

If you can count your company’s age in decades, or even centuries, you are probably struggling with old, unstable technology spread across multiple platforms. This could leave you open to corporate risk and inhibit your process and IT efficiency.

Did you know:

  • More than 80% of modernization projects exceed their initial budget
  • Of those, the average overage is 75% of the original estimated cost
  • More than 90% of modernization projects are delivered behind schedule
  • 45% of projects fail to link modernization to business value

Legacy Modernization Success

To avoid being one of these statistics, you need to consider a few key items. We would like to share the six most important areas that you should focus your attention on when considering legacy technology modernization.

Platform Conversion

You are probably considering migrating all of your products and supporting processes from multiple systems onto one vendor platform. Most insurers take this route and soon find themselves swimming in vendor chaos and costly mods.

But which mods do you really need? Are there work-arounds? What are the options?

To get the bottom of these types of questions, always be honest about your requirements. Make sure that you always verify and validate the vendors claims to determine actual vs. aspirational capabilities.

IT Portfolio

Eventually, even the best designed software and most cutting-edge platforms age into maintenance challenges. You might find yourself with four, five, or even more core admin platforms.

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You will need to identify those assets that should be tolerated or migrated, and those in which you should seek to invest or seek to eliminate.

 

Download the Rationalizing Your IT Portfolio whitepaper to learn more, or talk to us about receiving a personalized Rainbow Risk chart, like this one!

Business Priorities vs. Technology Capabilites

Technology and services are inseparable. Your ability to serve its customers and distributors can be greatly enhanced with the right technology. When technology decisions are made without regard for business purpose and goals, the results can be crippling, especially for sales, distribution, service and operations support.

Align the needs of your various business areas and the overall technology strategy to drive commitment and support.

System Conversions

Many insurers we talk to are faced the issue of the under-estimation of the amount, and type, of personnel needed to complete the job efficiently. To be successful, you will need to combine an understanding of policy administration, underwriting, claims, and trading platforms with knowledge of both current and legacy technologies.

This approach creates the most effective and successful conversion services on the market for you.

Check out this Modernization Program case study to learn how this approach benefited one of our clients.

System Selection

Insurers often spend millions on a new system, only to find that the hoped-for value is short lived.

This is because:

  • Political players or aggressive vendor sales teams hijack the process
  • A selection exercise narrowly focuses on small subset of needs
  • Decision makers react to previous failures rather than looking at current holistic needs
  • There is an over simplified selection process
  • Insurers are unaware of what is on the market
  • Selection teams lose control of the decision process

To make deployment easier, expectations easily met and increase your value delivery, keep a few things in mind. System replacement in the preferred way to remediate legacy technology, if you can justify the cost. You should also make sure you aren’t picking a system just because it is the most cutting-edge, but because it is the best fit for your unique situation.

Check out our System Selection blog post for more tips and tricks.

Mergers & Aquisitions

While mergers and acquisitions can be a strategy for rapid growth, they can also undermine your organization’s efficiency and effectiveness if not handled carefully. Be sure to have sufficient agility to integrate new blocks into your organization without jeopardizing your own market leadership.

Having an objective, detailed assessment gives you the information you need to make the best decisions for the future.

Not sure where to begin? Take a look at our Modernization Scorecard whitepaper to learn some best practices and get you started on your modernization journey.

Insurers will gain business value NEOS
Read the blog

Check out these best practices to keep your vendor focused.

Read the blog

Check out these best practices to keep your vendor focused.

Not sure where to begin?

Take a look at our Modernization Scorecard whitepaper to learn some best practices and get started.

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