Systems implementation, maintenance, and security

7.7.4 Systems implementation, maintenance, and security

The systems implementation phase involves acquiring hardware and software, developing software, testing programs and procedures using both artificial and live data, developing documentation, and carrying out a variety of other installation activities. Systems implementation also involves the training of end-users and operating personnel. Systems maintenance involves monitoring, evaluating, and modifying or enhancing a system once it is up and running. it includes a post audit, which establishes investigation activities were conducted. Systems security is an issue that must be addressed in the design and implementation stages. As users of IS, managers have a major role to play during the systems investigation, systems analysis, and – to a lesser extent – systems design phases. Lack of end-users Involvement in systems development almost certainly guarantees the failure of an IS because it will not satisfy the requirements of the organisation.

Speeding up claims with new information systems

Insurance companies employ claims adjusters to visit property damaged by disaster, analyse the damage, and estimate the value required to repair the property. Each estimate can take considerable time and effort. Adjusters might visit four or five properties in the morning and afternoon, then return to the office where they review notes taken at each property, consult reference charts to calculate repair costs, complete paper forms and enter data into the victim of the disaster.

Multiply the complexity of this process by the thousands of claims that an insurance company processes each year, and the result is a lot of paper work, wasted time and mistakes. The executives of Gore Mutual Insurance in Canada wanted to streamline the claims adjustment process, making it more effective and efficient by applying new information systems. They partnered with a software company named Symbility to create a Multiply the complexity of this process by the thousands of claims that an insurance company processes each year, and the result is a lot of paper work, wasted time and mistakes. The executives of Gore Mutual Insurance in Canada wanted to streamline the claims adjustment process, making it more effective and efficient by applying new information systems. They partnered with a software company named Symbility to create a

Symbility designed pen-based software to run on Windows tablet PCs and handheld PCs. Adjusters can now take notes, sketch floor plans and diagrams, even transfer digital photos from mobile phones. All forms and references charts are accessible and easy to manipulate.

The adjuster’s PC is connected over a wireless network to a special information service provided by Symbility that supports all calculations, data manipulation, and processing

required adjusting claims. Gore Mutual found that the tables PC solution let adjusters spend more time meeting with customers in the field. Estimates were calculated quickly and accurately. Symbility estimates that the system results in claims being settled up to six times faster and more accurately.

Source: Stair, R, Reynolds, G & Chesney, T. 2008. Fundamentals of business information system. London: Cengage learning.

CASE STUDY QUESTIONS Question 1: Symbility designed a new information system that speeds up the processing of claims by insurance companies. Explain the basic components of the new information system. Illustrate your answer by means of diagram.

Question 2: To be of value to insurance companies, the information produced by the Symbility information system should have certain characteristics. Explain these characteristics.

Question 3: To develop the new information system, Symbility needed to go through a systematic development process involving end-users (the insurance companies) and their own technical staff. Discuss this process and apply each step of the process to the case study.

Question 4: Information systems can conceptually be classified as operations information systems, man agement information systems and ‘other classifications (such as the Internet, extranet and so on). Where would you classify the information systems developed by Symbility? Substantiate your answer.

REVIEW QUESTIONS

Multiple choice questions

Question 1

A claim adjuster from an insurance company needs to estimate the value required to repair a hotel totally devastated by a hurricane. The replacement cost of only the hotel’s roof is estimated at R3 million. The replacement cost of the hotel roof is an example of ______________.

1. Information 2. Data 3. Management information 4. An information system

Question 2

An information system utilizes ____________ to perform the basic activities of __________. 1. Data and information; financial planning

2. Hardware, software and human resources; input, processing, output, feedback, control and storage 3. Computers; input, processing and output 4. Information technology; operational efficiency

Question 3

The handheld PCs with handwriting recognitions used by Symbility in the case study are an example of _____________.

1. Software resources 2. Hardware resources 3. Procedures

4. Human resources Question 4

The adjuster’s PC is connected over a wireless network to a special information service provided by Symbility that supports all the calculations, data manipulation, and processing required adjusting claims.

This is referred to as ___________, and more specifically ______________. 1. Systems hardware; central processing unit 2. Human resources; the adjuster 3. Procedures; computer procedures 4. Software resource; application software

Question 5

The accuracy of the claims calculated by claims adjusters is a function of the following characteristics of the information used in the calculation process:

A. Accuracy B. Relevancy C. Sufficiency D. Currency