However as technology advances it obvious that the use of the internet to drive

However as technology advances it obvious that the

This preview shows page 17 - 20 out of 57 pages.

However, as technology advances, it obvious that the use of the internet to drive sales and interact with customers will become a more important distributional channel in the insurance industry in the future. The insurance companies that are effective in adopting the internet as a route to market stand in a favorable position to exploit opportunities. Effective usage of the internet as a sales tool requires: (a) simplicity of use, (b) a straightforward process to make purchases, (c) availability of various payment options and (d) an ability to communicate with support team regarding the arising problems. The digital nature of
Image of page 17

Subscribe to view the full document.

ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 17 using the internet as a sales tools supports the simplification of monitoring the business environment. Timely and accurate information can be mined and presented to the leadership of the organization to make informed strategic decisions. Opportunity in the insurance industry also can be exploited through being cost competitive with other firms in the industry. This opportunity is exploited by: (a) optimizing its capital structure, (b) improving value stream, and (c) lean accounting. A firm in the insurance industry can optimize its capital structure and make effective adjustments to the current asset and liability ratios in order to maximize profitability. It would also be wise for the firm to analyze its value stream and work to eliminate activities that do not provide value. Understanding lean thinking and accounting as a strategic initiative to support and strengthen the efficiencies achieved though value stream analysis. Aside from using the instruments of technology and cost competitiveness, customer confidence is an element of the insurance industry that presents significant opportunity for firms. Overcoming a negative connotation resulting from negative experiences or perceptions of insurance companies can result in a long term relationship. The insurance industry thrives by exploiting the fear of an unplanned incident for profit. Customers pay insurance companies to mitigate the risk of financial loss from an unplanned incident. The benefit for the customers who never have an unplanned event threaten financial loss is sometimes lost. The story of peace of mind and security has to be told to the customers to bolster customer confidence. Knowledge is a significant organizational asset that contributes to the achievement of important strategic business goals and objectives. However, the information required to develop knowledge is not always effectively gathered. Obtaining accurate and timely information about a specific business problem is an extremely complicated issue that has to be managed for a firm
Image of page 18
ALLSTATE INSURANCE CORPORATION CASE ANALYSIS 18 to be successful. A tool that can facilitate the gathering and transfer of information into knowledge is enterprise resource management planning (ERP). An ERP system can provide real-time information related to the customer and company environment.
Image of page 19

Subscribe to view the full document.

Image of page 20
  • Fall '18
  • Notgrass

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes