RMIS-Web Risk & Insurance RMIS Article

"The Human Factor"

by David P. Duden

August 1997

In my years of working with customers on technology issues, I cannot recall a time when technology was affecting all of us in such a profound and direct way. The rapid rate of change and the adoption of technology in our lives is increasing at supersonic speed. We can't escape it, but perhaps we can simplify the use and maximize the results of our risk management technology.

For many of us, the technology people have been those "techies'' in the back room who did their thing and from whom we stayed away. Perhaps Computer Science was just an elective in college that kept you at a terminal late at night until your "job'' ran properly. But replacing manual processes with automation was enough of a solution at that time.

Saving time and growing a business without adding staff was the promise of automation, of course. Little attention was devoted to workflow and the cultural change that many went through in their journey to an automated office. And the people generally responsible for the automation buying decisions were rarely the full-time users of the system.

Today, technology cannot be left at the office. School children are expected to use the computer beginning in kindergarten, and Internet access is coming at us through the phone wire, cable TV and the airwaves. When was the last time you saw an advertisement without a www address attached? Surprisingly, most respondents to a recent survey listed Internet access as being more easily available at home rather that at the office.

Certainly, risk management technology is not immune to the tremendous changes that are occurring. Within the last 12 months, we have seen a tremendous overhaul of the RMIS software industry. Changes not only in technology but in the strategic direction of the RMIS providers have promised a new era, perhaps one in which risk managers and insurance professionals will create more innovation through their use of technology.

Getting a pulse on this new era of risk technology has been a challenge. The fluctuations in the marketplace have been occurring at an incredible rate. At a time when technology companies are doing well overall, the risk technology vendors cannot afford to implement new technology. These companies must try to satisfy the existing client base while providing leading solutions to a growing group of prospective clients. The approach to this when-to-stop-the-upgrades problem has varied. While some vendors simply create a cutoff date, others try to encourage clients to move to new technology for added functionality. Depending on the application, the decisions can be critical.

As we approach the year 2000, many companies are using the threat of the Year 2000 problem as a reason for upgrading their technology. I hope these companies do not lose sight of the necessary functionality they need to improve their technology beyond a four-digit date field.

Ultimately, the issues surrounding your technology decisions often have more to do with the personalities of the people involved than the bits and bytes of the computer. Workflow is still dependent on people even though our computers may dictate a certain methodology. In an era of increasing power and complexity on the computer screen, let's keep our focus on the human element.

David P. Duden is the National RMIS Practice Leader and head of the RMISLab at Deloitte & Touche LLP in Hartford, Conn. He can be reached electronically at dduden@dttus.com.