Yes one more sign of the impact Covid-19 pandemic is and will have on travel, hospitality, vehicle hire and associated industries.
Companies everywhere have to square the circle of preserving liquid assets, cash-flow and yet still innovate to compete with nimble and disruptive competitors.
The focus is on survival right now and growth over the 2020-2023 period.
Will three to five year projects still have a priority? Many of the projects enterprises list in their technology priorities seem to be powered by vanity rather than reality.
75% of insurers put AI and RPA at the top of priorities and yet, unless they are well down the path, do not realise it takes longer to achieve and will cost more. BOTS are not a magic solution.
The C-Suite are putting some stiff criteria down for any new investments.
- Don't submit Capex requests unless the case is very compelling with fast results
- Don't say you need major upgrades to existing core platforms.
- Forget it unless you can prove a very fast time to realising measurable value
- Don't submit requests if you have to hire loads of people
- Forget the days when you were able to spend $10 million Capex and $20 million $50 million Opex over five years (when all associated costs taken into account)
There is a new paradigm in place. Just as Salesforce.com knocked the knees away from incumbent CRM and ERP, vendors do did a raft of even nimbler innovators like Hubspot and SugarCRM offer enterprises a raft of better and lower cost options.
Just as Tableau, Qlik and Logi Analytics upended the cosy world of Informix, Business Objects, Hyperion and other analytics vendors so are new insurtechs upending the cosy world of insurance technology vendors.
I think that insurers are often unfairly criticised for being cautious and risk averse. That is a necessary quality. They generally know what innovation is required but vendors are traditionally rather one dimensional in the how.
It will cost a lot, it will take a long time, it will require large project teams with developers, business analysts, and a large implementation team often provided at high cost by he large consultancies.
How can I achieve this fast with a quick time to gaining value, budgets that I can get signed off and implementation that does not strain the change management, HR and training resources?
And by the way- central IT are busy enough maintaining our current infrastructure and looking for scarce COBOL professionals. So don't expect me add further burdens for them.
Show me how to: -
- Make complex simple
- Make slow fast
- Make expensive affordable
- Make my task easier
Then I will listen to you!
Pandemic Impact Sweeping travel restrictions tied to the Covid-19 outbreak and the global economic collapse have hammered revenue, particularly in the rental-car business. While the U.S. government has a $50 billion bailout plan for airlines, Hertz hasn’t been able to access that program, and its chief rival, Avis Budget Group Inc., had a stronger balance sheet going into the crisis. The Estero, Florida-based company had been negotiating with lenders for relief as well as with the U.S. Treasury Department about the possibility of a bailout. But with dismal demand, a too-big fleet and plunging prices for used cars, Hertz didn’t have enough liquidity to last until a market recovery.