Mis - Modernization of Ntuc Income Essay
No.6 case study
NTUC Income (Income), one of the Singapore’s largest insurers, has over 1.8 million policyholders with total assets of $21.3 billion. The insurer employs about 3,400 insurance advisors and 1,200 office staff, with the majority located across an eight-branch network.
On June 1, 2003, Income succeeded in the migration of its legacy insurance system to a digital web-based system. The herculean task required not only the upgrading of hardware and applications, it also required income to streamline its decade-old business processes and IT practice.
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In 2002, despite periodic investments to upgrade the HP3000 mainframe that hosted the core insurance applications as well as the accounting and management information systems, it still frequently broke down.
According to James Kang, CIO at Income, “the system breakdowns were a real nightmare. Work would stop and the staff had to choose either data reconciliation, or backup. However the HP3000 backup system allowed restoration only up to the previous day’s backup data. If the daily backup was not completed at the end of the day, the affected day’s data would be lost, and costly and tedious reconciliation would be needed to bring the data up-to-date.”
In one of the hardware crashes, reconciliation took several months to restore the data loss. In all, the HP 3000 system experienced a total of six days of complete downtime.
That was not enough. The COBOL programs that were developed in the early 1980s and maintained by Income’s in-house IT team also broke multiple times, halted