The Case of the Soft Software Proposal
The Case of the Soft Software Proposal
By: Thomas H. Davenport, senior research associate at the Harvard Business School Why should Middleton fund an IS project with "intangible" benefits?
But what if it doesn 't? Middleton Mutual is a large insurance company head-quartered in Philadelphia. Its chief information officer, Dennis Devereaux, and vice president of information systems planning, Max Vargo, are about to request $1 million to develop an expert system for Linda Peterson 's property and casualty (P & C) underwriting department. They 've discussed the expert system with President Bill Hayes, CFO Hal Atkins, and other members of the capital expense committee and until now have felt confident it would be approved. But according to the messages in the company 's electronic mailbox, the project seems less certain.
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To: Ddeveraux, CIO
From: Mvargo, VP, IS planning Finished the paperwork for expert systems underwriting program. Expected benefits are soft - intangibles like more consistent underwriting and faster turnaround - but compelling. Absent any big changes, we can get it to Capital Expense Committee for next week 's meeting. Are you checking with Bill Hayes? I 'll check if you want.
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To: WHayes, president
From: Ddevereaux, CIO Just wanted to confirm that we will be submitting our expert systems proposal to the CEC next week. We 've pinned down the figures, and they 're well within the $1 million we budgeted. We 've selected a shell program from a first-rate vendor and lined up a top-notch knowledge engineering consultant who specializes in insurance applications. Two of our most experienced underwriters and eight programmers from my department will work closely with the consultant. We 're excited about this program and are anxious to get started.
Welcome to Middleton E-mail.
You have 1 new message.
To: Ddevereaux, CIO
By: Thomas H. Davenport, senior research associate at the Harvard Business School Why should Middleton fund an IS project with "intangible" benefits?
But what if it doesn 't? Middleton Mutual is a large insurance company head-quartered in Philadelphia. Its chief information officer, Dennis Devereaux, and vice president of information systems planning, Max Vargo, are about to request $1 million to develop an expert system for Linda Peterson 's property and casualty (P & C) underwriting department. They 've discussed the expert system with President Bill Hayes, CFO Hal Atkins, and other members of the capital expense committee and until now have felt confident it would be approved. But according to the messages in the company 's electronic mailbox, the project seems less certain.
Welcome to Middleton E-mail.
You have 1 new message.
To: Ddeveraux, CIO
From: Mvargo, VP, IS planning Finished the paperwork for expert systems underwriting program. Expected benefits are soft - intangibles like more consistent underwriting and faster turnaround - but compelling. Absent any big changes, we can get it to Capital Expense Committee for next week 's meeting. Are you checking with Bill Hayes? I 'll check if you want.
Welcome to Middleton E-mail.
You have 1 new message.
To: WHayes, president
From: Ddevereaux, CIO Just wanted to confirm that we will be submitting our expert systems proposal to the CEC next week. We 've pinned down the figures, and they 're well within the $1 million we budgeted. We 've selected a shell program from a first-rate vendor and lined up a top-notch knowledge engineering consultant who specializes in insurance applications. Two of our most experienced underwriters and eight programmers from my department will work closely with the consultant. We 're excited about this program and are anxious to get started.
Welcome to Middleton E-mail.
You have 1 new message.
To: Ddevereaux, CIO