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Manuel Kaiss

1.3 When do Insurers replace their Core Insurance Platform?

Having knowledge about the different stages of IT systems is the basis for approaching the implementation project in a forward-looking manner. With awareness of the lifecycle and the right technical know-how, the organisation is able to replace the IT systems at the right point in time.

Replacing the systems too late results in a more significant GAP to bridge and a longer period of time where the current IT systems are not receiving new features and updates anymore, while simultaneously the new system platform is not ready yet.

Business need vs. System status

Figure 3 - IT System Lifecycle, Introducing Late - based on (Comella-Dorda , et al., 2000, p. 2)


Stakeholder availability and resistance is a topic in general, but it becomes an even bigger issue the further we enter into the “Noman’s land”. The stakeholders will be struggling, in general, to prioritise their tasks during a transformation project. The struggle is even bigger when having to run the operation with an outdated legacy platform and taking up a leading role in the new transformation project on the business side. With bad timing and planning for the transformation project, trying to improve the situation with a new system platform, will make the situation much worse for the business departments at first.


The process of finding the correct timing is very delicate. Understanding how much time it takes to introduce the new IT systems and anticipating that the business needs are increasing during the project horizon as well gives us a more realistic approach. We also have to factor in, e.g., already known future supervisory measures and planned product launches. Having this on our radar allows us to avoid unnecessarily increasing the risk of poor scheduling and scope creep, both of which are two of the top reasons why IT Projects fail (see 2.1.1 Studies, Guidelines, Best Practises).


References:

Comella-Dorda , S., Wallnau, K., Seacord , R. C. & Robert , J., 2000. A Survey of Legacy System Modernization Approaches. Pittsburgh: Carnegie Mellon - Software Engineering Institute.

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