Friday 27 June 2014

The Efficiency CIO vs the Agility CIO


Craig Beattie



I wanted to take a moment to discuss two CIO archetypes. I had the occasion to see a panel recently where CIOs from different ends of this scale were sat next to each other to discuss a common topic. Having grown up in application development and worked in Enterprise Architecture I found myself split on how to approach change and investment.


First with my EA hat on. For those who have talked to me about Enterprise Architecture you may have heard me espouse the view that it is frequently focused on efficiency. EA is a great tool for mapping out current state and understanding change. Two of the key outcomes of EA are highlighting gaps in change, infrastructure, applications and the organisation as well as highlighting duplication. Duplication obviously yields opportunities for rationalisation and efficiency with what is typically an easy business case to assemble.


As an EA it can be easy to become focused on making investments in IT highly efficient, keeping a simpler applications architecture and making the right large investments in IT.


With my EA hat on I align with the efficiency CIO. Making large, meaningful investments in IT change that has the best promise of return on that investment. The key is to have the big view of change and protect future change from complexity. Here, change is executed selectively, as reliably as possible using the right resources at the best possible cost.


Now with my application developer hat on. Here my interest is in how do create new software and grow software assets to better meet the customers needs. With this hat on I want more change, to create more software to satisfy the many diverse requirements of the customers in the organisation. As a software engineer or application developer I see where parts of the organisation are starved of simple change, starved of access to skills like mine to continuously improve their position.


Here I observed what I have called here the Agility CIO. The CIO who is the developers champion, who values the ability to create new software and is happy to have the IT landscape grow to assist the business in similarly growing. Why not throw some IT folks, either internal or with partners, at a business problem and create something new? There needs to be adoption of pre-built assets, re-use, re-factoring, replacement – but this is a natural result of engineering and something we trust developers to execute as part of their role. Of course this means having good developers who are well paid, rather than the cheapest resources available. Further, with new software and expensive developers complexity and cost base tends to increase over time as well.


There is a role for both types of CIO, each organisation has different priorities whether they’re an insurer, intermediary, vendor, start-up, etc. Further, these priorities change and the CIO needs to balance their approach to change along this continuum. Indeed there will be parts of the organisation where the Efficiency CIO is most appropriate in reigning in unproductive change, and other parts facing stiff growth challenges that need an Agility CIO.


Where is your IT organisation on this scale? Where should it be? What is a good balance? I’d love to hear your feedback.


Celent is looking to understand how fast is fast, as well as how investment can be protected or future-proofed in a survey live at the moment. We’d be happy to share the results to those who share their views…


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Thursday 5 June 2014

6.24.2014 Celent Insurance Webinar: BPO in Insurance

Mike Fitzgerald, Senior Insurance Analyst


This event is free to attend for Celent clients, flex-plan clients, and the media. Non-clients can attend for a fee of US$250. If you are unsure of your client status, please contact Chuck Smith at csmith@celent.com or at 617-262-3125.


Please click here for more information.






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Tuesday 3 June 2014

Apple Takes a Bite at the Internet of Things—Where are Insurers?

Apple has just announced two new “robust frameworks” for developers that are aimed squarely at two of the hottest sectors in the Internet of Things (IoT): HealthKit and HomeKit (http://ift.tt/1pMLVBK).


The IoT connects people and non-human things. HealthKit facilitates communication between fitness apps (think fitness bands) and health apps (think doc in a box). HomeKit uses Siri to poll and control household appliances and systems (heating and cooling, lighting, security (and eventually entertainment?). Everyone who saw “Her” and wishes they could achieve a higher level of intimacy with an AI/Machine Learning avatar, can now (according to Apple’s PR) “tell Siri you are “going to bed” and it could dim the lights, lock your doors, close the garage door and set the thermostat.”


Apple also announced some initial partners: the Mayo Clinic for HealthKit; and Philips Lighting for HomeKit—both strategically good, and household names (so to speak).


What is missing from this announcement is any mention of how health insurers or homeowners insurers could participate in what Apple wants to be a foundational step for connecting networked sensors to data stores, and then using analyses of that data to better price, underwrite, and control losses.


The iPhone (and other smart phones) have changed parts of the claims process, and basic communication between consumers/patients and healthcare providers. Apple clearly hopes that HealthKit and HomeKit will begin to do the same for the IoT.


Will insurers jump on this wave—or stay on the beach?






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