The article: Take advantage of information technology to stay competitive

We have to all agree that information technology has played a core role in changing our lives to be more useful and efficient in all aspects of life. Information technology used not only in commercial and private sector but also in governmental sectors form schools to hospitals. Therefore, IT has become a strategic asset to all companies or governments that posses and pay close attention to it. When we notice that information technology has been ignored or being paid less attention than what it deserves in multi-billion business like Insurance industry, many question marks might be raised up.

As mentioned in the article in banking, banks all over the world have chosen IT as their core process to provide its customers with the best customers. Every bank has its own IT department through which they try to differentiate themselves through offering unique services that add value to the customers and the image of the bank. Through IT banks tremendously cut their cost by reducing its branches and offering all its application online. For instance, Me Bank does not exist physically (it is a web based bank); customers get application online; furthermore they can check their account and transfer money form one account to another. The customer can do all these while setting at home and without wasting fuel and worrying about work timing of the bank. Therefore, there is direct relationship dynamic between the banks and its customers which lead to customer loyalty and satisfaction.

Therefore, in a competitive market such as insurance market, each company should try to posse’s competitive advantage against others through basis of differentiation. Therefore, I think the best way of differentiation is through investing more money in improving its IT department and provide the customers with unique and efficient products and services. I call it investing money rather than spending or wasting money when it comes to information technology because the return that the company would get exceeds the spending. Information technology will cut administration and processing cost. For instance, the writer mentioned that general insurance companies spend nearly 3 billion for processing and administrative costs. Furthermore, companies can provide their customers with information and support online to increase interactivity as a customer interface.