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The Canadian Shield Insurance Company

Satisfactory Essays

Introduction Canadian Shield Insurance company, a subsidiary of Assurance Centrale, need to make decision on its IS system, which is the key to the success in insurance business. The old IS system alpha is outdated. Far-exceeding the budget on both time and cost, internally developed ISS is facing serious criticism in the trial stage and needs to be modified. Seamus, the manager of IS department in CS, had become aware of a new off-the-shelf alternative, AIS, which has many advantages. Statement of the main problem The main problem is to decide between the relative merits of ISS and AIS. Sub- problems • Analyze the qualitative and quantitative pros and cons of both choices, and decide on one. • Make recommendations to the top …show more content…

The severance of employees would be difficult and it may hurt the loyalty of employees to the firm in the long- run. There might be other technology issues in adopting new IS. ALTERNATIVES • Seamus can choose to keep the current Alpha system. • Implement ISS now • Implement ISS later when it is fixed with its complexity issue • Recommend AIS to top management. ANALYSIS OF ALTERNATIVES Systems Advantages Disadvantages Alpha Already in use, so everyone is used to the model. It is easy to use It crashes frequently Does not align with government’s new regulations It is out-dated Can not be updated ISS More efficient than the one presently in use. It addresses the issue of regular government reforms. Its capacity is high and it is user friendly It is Audit friendly. It would require training all staffs and it too detailed. If any change is required it will require a C+ programmer in Vancouver. AIS It is scalable It meets all the requirements that Seamus wants. It is user friendly and can be easy to navigate graphical interface. Designed to accommodate large information and easily updated It would result to severance. It might have some other hidden cost since it is out-dated. • The company have spent 5 years trying to develop ISS, if it does not implement it now, it may lose the momentum. However, if implemented now, “This program sucks”. • Implementing ISS later may fix the problems it is being criticized

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