System in organization final paper Essay Example | Topics and Well Written Essays - 2000 words

System in organization final paper - Essay Example Insurance industry is a world where competition progresses speedily and the requirements of customers change quickly, Lenox should see that IT oriented system is to be delivered in months and not in a period of over three years. Oxford Health Plans Inc was ranked as the fifth top –growing company in the United States in 1996 by the Fortune magazine as the business was growing both in revenues and in members. Everything went topsy-turvy when Oxford management tried to introduce new computerized billing system as the executive’s paid a little or poor attention to information technology. The bad structuring and management of Oxford billing system not only tarnished the company’s brand name but also resulted its future growth as Oxford’s stock price stumbled down to one-third of its earlier quote due whooping loses of $ 300 million. If the management do not spot the apt IT-enabled chances, introduce misguided systems or mishandle the whole activity , in such scenarios ,IT systems can even be proved to be devastating like what it had happened in Oxford. Badly visualized and implemented IT investments become hazardous in the long run if it is not noticed at the early stage. Sullivan should have been made to directly report to Bennett, CEO rather than reporting to Fontana, CFO. Sullivan, as a CIO, should have assumed responsibility for outcomes of IT investments, in collaboration with the senior management. A management committee should have been formed with CIO as the head and this committed should have supervised the real-time systems and should have introduced necessary changes as and when necessary. Lenox CEO is fully aware that by bringing the latest technology, by modernizing key applications and by rationalizing and reorganizing the information services at Lenox, it definitely helps Lenox to see its business is growing. If investment in information technology is