{"id":123210,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/one-of-the-options-for-the-case-company-is-to-move-its-applications-to-the-cloud-discuss-the-strengths-and-weakness-of-this-approach-for-the-case-company-given-the-regulatory-fines-of-the-past-the"},"modified":"2017-08-12T07:46:09","modified_gmt":"2017-08-12T07:46:09","slug":"one-of-the-options-for-the-case-company-is-to-move-its-applications-to-the-cloud-discuss-the-strengths-and-weakness-of-this-approach-for-the-case-company-given-the-regulatory-fines-of-the-past-the","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/one-of-the-options-for-the-case-company-is-to-move-its-applications-to-the-cloud-discuss-the-strengths-and-weakness-of-this-approach-for-the-case-company-given-the-regulatory-fines-of-the-past-the\/","title":{"rendered":"One of the options for the case company is to move its applications to the cloud. Discuss the strengths and weakness of this approach for the case company.\/Given the Regulatory fines of the past, the case company is concerned that the process of implementing the strategy should have the highest standards of governance. Discuss the overall project control framework you would propose and the reporting arrangement to the Board\/Fully capitalising on the Pega CRM implementation is far wider than just a software upgrade. Discuss how the case company should ensure a successful transformation of its business processes. Who will be involved and how will it be managed?\/The effective use of the CRM system and the data warehouse will change the nature of the middle management. You are an IT consultant in a small organization specialising in supporting sales and service management teams in this sort of change and have been appointed by the case company assist and guide them in this process. Write an initial report to Martin Bennett UK Managing Director of the case company setting out how you would help them make the technical, organizational and culture changes in middle management needed both within the case company and with their alliance partners. In particular, focus on the effective use of the data warehouse."},"content":{"rendered":"
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One of the options for the case company is to move its applications to the cloud. Discuss the strengths and weakness of this approach for the case company.\/Given the Regulatory fines of the past, the case company is concerned that the process of implementing the strategy should have the highest standards of governance. Discuss the overall project control framework you would propose and the reporting arrangement to the Board\/Fully capitalising on the Pega CRM implementation is far wider than just a software upgrade. Discuss how the case company should ensure a successful transformation of its business processes. Who will be involved and how will it be managed?\/The effective use of the CRM system and the data warehouse will change the nature of the middle management. You are an IT consultant in a small organization specialising in supporting sales and service management teams in this sort of change and have been appointed by the case company assist and guide them in this process. Write an initial report to Martin Bennett UK Managing Director of the case company setting out how you would help them make the technical, organizational and culture changes in middle management needed both within the case company and with their alliance partners. In particular, focus on the effective use of the data warehouse.<\/h2>\n

Task-1 One of the options for the case company is to move its applications to the cloud. Discuss the strengths and weakness of this approach for the case company.
Task-2 Given the Regulatory fines of the past, the case company is concerned that the process of implementing the strategy should have the highest standards of governance. Discuss the overall project control framework you would propose and the reporting arrangement to the Board<\/p>\n

Task-3 Fully capitalising on the Pega CRM implementation is far wider than just a software upgrade. Discuss how the case company should ensure a successful transformation of its business processes. Who will be involved and how will it be managed?<\/p>\n

Task-4 The effective use of the CRM system and the data warehouse will change the nature of the middle management. You are an IT consultant in a small organization specialising in supporting sales and service management teams in this sort of change and have been appointed by the case company assist and guide them in this process.
Write an initial report to Martin Bennett UK Managing Director of the case company setting out how you would help them make the technical, organizational and culture changes in middle management needed both within the case company and with their alliance partners. In particular, focus on the effective use of the data warehouse.<\/p>\n

Assessment Criteria(task1 to Task4, 2000 words without diagrams and reference, Harvard referencing-one report separated using task number)
Task 1
Relevant theory and frameworks Have you performed systematic research?
Application Have you understood the different cloud options; have you provided evidence and applied it to the case study?
Have you discussed strengths and weaknesses?<\/p>\n

Task 2 Relevant theory and frameworks Have you selected an appropriate set of theoretical frameworks and\/or method(s)? Are they appropriate?
Application Have you proposed a valid control framework?<\/p>\n

Task 3 Relevant theory and frameworks Have you selected an appropriate set of theoretical frameworks and\/or method(s)? Are they appropriate?
Argument Have you understood the Business Process implications?
Application Have you addressed the management and engagement issues?<\/p>\n

Task 4
Relevant theory and frameworks Have you selected an appropriate set of theoretical frameworks and\/or method(s)? Are they appropriate?
Argument Have you identified the issues?
Application Have you set out clearly and concisely how you would proceed as a consultant?<\/p>\n

CASE STUDY-HOME SERVE<\/p>\n

This case study is based on a real organization. Their Annual report is posted on Blackboard for this module. The some of the scenarios are however fictitious.
You are not required to have any special knowledge of the company except that which is in the public domain and you may make any reasonable assumptions provided that they are documented.<\/p>\n

Homeserve plc was originally part of South Staffordshire Water plc ,a small water company providing water in part of the West Midlands within the overall operating boundaries of Severn Trent Water plc. It is unusual in that this small water company created a non-regulated commercial business bigger than the original water company and was spun off and separately listed on the stock exchange. Its core business has been selling home emergency plumbing, electrical and other services cover (usually not covered by household insurance policies) mainly through relationships with utility companies. Thus you can buy emergency plumbing cover through Thames Water in this area but provided by Homeserve plc. <\/p>\n

It is intending to spend ?50m on IT in 2016 as you will see from the following extract from their 2015 Annual Report:<\/p>\n

Technology investment<\/p>\n

We are making progress with our plans to upgrade our IT systems. Our intention is to replace our core customer IT system and invest in new technology that allows us to improve the products and service we offer our customers and to increase our efficiency. Our attention has initially been focused on our UK business, where we have now implemented a limited version of the replacement Pega Systems software which is operating as expected. Having now worked with the new software we are confident that we have the right technology solution to allow us to significantly improve how we interact with our customers and reduce our cost to serve. We expect to have completed the replacement of our UK system within the next twelve months, and, having done this successfully, we intend to roll out the new system to our business in the USA.<\/p>\n

We also continue to look for further opportunities to invest in technology to allow us to drive greater revenue, improved efficiency and customer service. As a result, during the year we have identified opportunities to invest in new data warehouse technology, digital document composition, digital asset management solutions and customer self-service tools for our businesses in the UK and USA. We also plan to upgrade the IT system for our Spanish Claims handling business. As a result of these additional investments, our capital investment will increase in 2016 before normalising at around ?25m in 2018.<\/p>\n

We expect to maintain a higher than usual level of capital expenditure in 2016 and 2017 as we invest in our core customer system, additional technology solutions that are expected to deliver customer service and efficiency benefits, and continue to make payments to partners in respect of the acquisition of customers originated by the partner. As a result, in 2016, we expect to invest a total of ?50m in systems and technology and ?20m in respect of partner payments. Total investment is expected to decrease to around ?35m in 2017 before normalising at ?25m from 2018.?<\/p>\n

(Pega Sofware website is: www.pega.com)<\/p>\n

Record Fine from the Financial Conduct Authority<\/p>\n

While the business model of utility ?affinity partners? created a successful business from nothing, and paved the way for rapid growth, the parallel development of governance to support the growing business did not occur. As a result the company was fined a record ?30m in February 2014 for systematic failures (see appendix 1). <\/p>\n

Among those failures were:
?from January 2005 to October 2011, to have in place adequate IT software and carry out effective tests on its IT systems, which resulted in some customers being overcharged and being charged for duplicate cover that they did not need?
But there were others also related to the system controls in its processes.<\/p>\n

While the business has addressed the issues as shown in the Stock Exchange Notice Appendix 2, and the business is prospering again, nevertheless, it creates a climate at the Board and among large corporate investors in which the assurance about system controls for future projects is vital:<\/p>\n

Appendix 1
Announcement about FCA Fine for Homeserve plc<\/p>\n

Home > News > HomeServe fined ?30 million for widespread failings <\/p>\n

1 HomeServe fined ?30 million for widespread failings
Published: 13\/02\/2014 Last Modified: 13\/02\/2014 <\/p>\n

The Financial Conduct Authority (FCA) has issued its largest ever retail fine of ?30,647,400 to HomeServe Membership Limited (HomeServe). The FCA found that HomeServe had serious, systemic and long running failings, extending across many key aspects of its business. In particular, during the period January 2005 to October 2011 it mis-sold insurance policies, failed to investigate complaints adequately, its Board was insufficiently engaged with compliance matters and its senior management were reluctant to address risks to customers if there was a cost implication involved.
HomeServe is an insurance intermediary, which sells home emergency and repairs insurance cover. Following a rapid expansion in the growth of its business, HomeServe developed a profit driven culture where profit targets were met by taking advantage of existing customers in pursuit of sales.
HomeServe has accepted that it needed to restore its customer focus and move away from a culture of putting profits before treating customers fairly. To date, HomeServe has paid approximately ?12.9 million to affected customers in redress and is expected to pay a total of ?16.8 million. The FCA has an objective to protect consumers and the changes made by HomeServe since the investigation will help ensure their customers are treated better in future.
Tracey McDermott, the FCA?s director of enforcement and financial crime, said
\u201cThis is a serious case, one that has warranted our largest retail conduct fine and generated a sizeable bill for consumer redress. Homeserve is another example of a firm that has acted without proper regard for its customers over a long period of time. Homeserve promises to provide customers with peace of mind when things go wrong. In fact the firm?s culture, controls and remuneration structures meant that staff were focussed on quantity not quality and there were customers that paid the price for that.
\u201cFirms must put the interests of customers at the heart of their business if we are to restore trust and confidence in financial services. True change in the culture within the financial services industry will only be achieved when firms and their management accept and deliver on their responsibility to ensure that customers are treated fairly.\u201d
The FCA found that HomeServe breached Principles 3, 6 and 7 of the FCA?s Principles of Business. It breached Principle 3 by failing to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems. In particular HomeServe failed:
? from February 2008 to October 2011, to take adequate steps to address compliance issues, for example, by failing to review and react to compliance monitoring reports that raised serious concerns such as mis-selling;
? from January 2008 to October 2011, to ensure that its senior management undertook adequate regulatory training, which led to a lack of regulatory knowledge and a failure adequately to identify and address issues that created a risk that customers may not be treated fairly;
? from January 2005 to October 2011, to identify and address inappropriate bias within the remuneration structure for the sales teams, which incentivised staff to increase the volume of products sold, irrespective of the customer?s need for the product;
? from November 2008 to October 2011, to identify and address inappropriate bias within the remuneration structure for the complaint handling teams, which incentivised staff to close as many complaints as possible, meaning that there was a risk that complaints were not handled fairly and that customers did not receive appropriate redress; and
? from January 2005 to October 2011, to have in place adequate IT software and carry out effective tests on its IT systems, which resulted in some customers being overcharged and being charged for duplicate cover that they did not need.
The FCA also found that, from January 2010 to April 2011, HomeServe breached Principle 6 by failing to pay due regard to the interests of its customers and treat them fairly with regard to complaints handling. HomeServe failed to investigate and resolve certain customer complaints fairly and failed always to offer appropriate redress, for example, for the full cost of having to call out an independent engineer to deal with a plumbing emergency which HomeServe should have resolved.
HomeServe also breached Principle 7 by failing, from November 2006 to October 2011, to pay due regard to the information needs of its clients and communicate information to them in a way which was clear, fair and not misleading when conducting telephone sales. HomeServe mis-sold two of its insurance policies to 69,000 customers by failing to explain the comparative price and coverage.
The FCA considers that the failings were particularly serious given that a significant proportion of its customers were of retirement age and therefore more vulnerable. HomeServe has been contacting potentially affected customers to provide redress where appropriate. This customer contact exercise is on-going.
HomeServe agreed to settle at an early stage of the investigation and therefore qualified for a 30% discount under the FCA?s executive settlement procedures. Were it not for this discount the fine would have been ?43,782,058.
2 Notes for editors
1. The Final Notice for HomeServe Membership Limited.
2. On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
3. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
4. Find out more information about the FCA.
Back to top ><\/p>\n

Appendix 2
?HomeServe plc
Conclusion of the FCA investigation
HomeServe confirms that it has agreed the terms of the Final Notice with the Financial Conduct Authority (FCA) relating to the investigation into historic regulatory issues at its UK business. These issues principally related to sales and marketing, controls and governance and complaints handling procedures that were last in operation over two years ago.
HomeServe has agreed to a fine of ?30.6 million in full and final settlement. There will be no need for further provisions in relation to this fine and the associated remediation exercise. All of the customers that may have been affected as a result of historic practices will have been contacted by the end of March 2014. This brings to a close the FCA investigation and related regulatory issues in relation to the UK business.
Richard Harpin, Chief Executive Officer, HomeServe plc, said:
\u201cWe acknowledge the FCA\u2019s Final Notice which brings its investigation to a conclusion. We sincerely regret that some customers have been affected by these issues. We have transformed the business, rebuilding and strengthening the management team, retraining staff and restructuring systems and controls. We have worked very hard over the last two years to put customers back at the heart of our business and we are committed to offering valuable products with a high quality of service.\u201d <\/p>\n

Key Reading<\/p>\n

? Biggs, D., 2010. Management consulting: a guide for students. Cengage Learning EMEA.<\/p>\n

? Keri Pearlson & Carol Saunders: Managing and Using Information Systems (any addition) John Wiley<\/p>\n

? Tidd, J., Pavitt, K. and Bessant, J. (2001). Managing innovation (2nd ed.). John Wiley and Sons<\/p>\n

? Marchand D A ( 2000) .Competing with Information .John Wiley Chicester<\/p>\n

? Finlay P (2000)Strategic Management Pearson Education England<\/p>\n

? McKeen J D, and Smith ( 2003) H A. Making IT Happen John Wiley Chichester<\/p>\n

? Ward J & Peppard J ( (2005) :strategic Planning for Information Systems, John Wiley<\/p>\n

? Management Consulting: A Guide to the Profession (4th Edition ) International Labour Organisation 2002<\/p>\n<\/p>\n

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