Celent Says

The Product Configuration Dilemma

Craig Beattie
Insurance Experts' Forum, July 23, 2013

For those who follow our report agendas here at Celent, you will have seen product configuration on there for a while now, finally culminating in the report "Designing for Product Agility." I thought I’d use this blog to offer a perspective on my own journey through product engines and product configuration to explain how the report came about and what question it attempts to answer.

The report originates from two sources really. The first is in my work with insurers both selecting new systems and in evaluating existing systems. In this work, my colleagues and I have spent some time educating the market that in buying a new core system they’re not just buying software, but a pre-thought out design for how things should be done at an insurer. The software is configurable and can be customised but ingrained in there is a model or a map for how an insurer operates. Nowhere is this more clear than in the definition of a product, the definition of sets of products and how products are managed.

The second source is my work with the vendors themselves. As an analyst at Celent, I have the benefit and honor of seeing many demos, which provides me with an opportunity to see many different models regarding workflow, business rules, screens — all of which relate to products.

From these two sources the idea for the report was born — to compare different structures, different ways of assembling products, the different ingredients and different ethos of the vendors — to give insurers some insight into the complexity of the problem and how they should navigate their way to a perfect match. As I started to write this though I found that while these different structures are innately interesting to an abstract thinker like myself, they were on the periphery of the real problem: How do I make best use of product configuration capability to achieve the objectives of my organization?

In the report, there is some discussion of how product components are assembled, how collections of products can relate to each other, how tooling can make up for poor structure, how having a single team can improve speed but having many systems can make change even faster again — but the focus is on applying these things to achieve a business goal.

We will look more directly at the issue of product agility in future reports, particularly with the advent of the digital insurer. In the meantime, Donald Light’s long standing works on the subject (P&C edition and Life edition) remain relevant companions to the designing report.

This blog has been reprinted with permission from Celent.

Craig Beattie is an analyst in Celent's insurance group, and can be reached at cbeattie@celent.com.

Readers are encouraged to respond to Craig using the “Add Your Comments” box below.

The opinions posted in this blog do not necessarily reflect those of Insurance Networking News or SourceMedia.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

The Good, The Bad and The Ugly Of Enterprise BI

When IT can't deliver, business users build their own applications focusing on agility, flexibility and reaction times.

The IT-Savvy 10%

IBM survey reveals best practices of IT leaders.

The Software-Defined Health Insurer: Radical But Realistic?

Can a tech startup digitally assemble the pieces of a comprehensive, employer-provided health plan?

Data Governance in Insurance Carriers

As the insurance industry moves into a more data-centric world, data governance becomes more critical for ensuring the data is consistent, reliable and usable for analysis.

Fear This

Just days before this Issue, which contains our security cover story, went to press, we got some interesting news: 1.2 billion unique usernames and passwords and 542 million email addresses were reportedly stolen from 420,000 websites, according to The New York Times. The websites ranged from Fortune 500 companies down to small online retailers.

Should You Back Up Enterprise Data to the Cloud?

Six questions that need to be asked before signing on with an outside service.