Chapter 6 Empirical Investigation Into the Implementation of An
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Chapter 6 Chapter 6 Empirical Investigation into the Implementation of an Internet-Based Self Service Technology at a Healthcare Insurance Firm Table of contents 6.1 mtroduction ....................................................................................................................... 178 6.2 United Assurance Group (UAG) and its context .............................................................. 179 6.2.1 mtroduction .................................................................................................................... 179 6.2.2 Organisation structure, mission and culture ................................................................... 179 6.2.3 Key strategic thrusts from 1999 to 2005 ........................................................................ 181 6.2.4 Summary ........................................................................................................................ 195 6.3 An overview of information and communication technology at UAG ............................. 196 6.4 Case description: the implementation of an mtemet-based self-service technology at UAG 6.4.1 mtroduction .................................................................................................................... 198 6.4.2 Phase 1: From information portal to e-business ............................................................. 198 6.4.3 Phase 2: From e-business to e-department ..................................................................... 209 6.4.4 Phase 3: From e-department to front-end development team ........................................ 226 6.4.5 Future situation ............................................................................................................... 236 6.4.6 I...essons I...eamt ............................................................................................................... 237 6.4.7 Summary of the case study ............................................................................................ 237 6.5 Conclusion ........................................................................................................................ 239 177 Chapter 6 6.1 Introduction In chapter 5, I reviewed the broader social context that expressed the challenges of self-service technology implementation in the global and South African healthcare contexts. This chapter is devoted to describing the case study organisation in natural language, 1 prior to a formal analysis in chapter 7 and chapter 8. The narrative that follows was put together using primary and secondary textual material collected from unstructured interviews, newspaper and magazine reports, and various internal publications. My role of interpreter involved comparing, ordering, explaining and interpreting the material to convey the history of the implementation phenomenon. The fITst part of this chapter is devoted to describing the organisational environment of the case, such as the complex regulatory environment; the formation of joint ventures (JVs) and internationalisation; competitive and innovative behaviour; important product design considerations; changing market conditions; and the evolving role of information and communication technology (leT). The second part of the chapter integrates the key features of the organisational environment context in discussing the implementation of an Internet-based self-service technology. The case spans from the early period of 1999 until 2005. This historical reconstruction tracks the evolution of the Internet-based self-service technology as it was implicated in various forms of organising from a static content-based website, to a newly established strategic business unit responsible for e-business during the dotcom era to a quickly restructured e-commerce department during the dotcom consolidation period, and - during the research fieldwork period - to a 'streamlined' decentralised project team responsible for overall front-end development work of organisation wide applications. Against this backdrop of organisational change, the discussion traces the way in which users and designers responded to the implementation and use of the Internet-based channel, in the context of traditional channels and the growing array of alternative technology based channels and communication media options. 1 Walsham and Han (1993) advocate a 'natural language' description of a case prior to a formal analysis. A 'natural language' depiction of the case presents the author's description and interpretation of events without the aid of the conceptual lenses. In the next chapter, the deeper and richer insight provided by using the key conceptual elements of the two theoretical frameworks will become self-evident to the reader. All participants' responses have been captured verbatim. 178 Chapter 6 6.2 United Assurance Group (UAG) and its context 6.2.1 Introduction These contextual elements are crucial for understanding the SST implementation phenomenon. I begin this section by presenting the structure, mission and culture of the case organisation. I then present the major historical developments experienced by the organisation from 1999 to 2005, shaped largely by the trends alluded to in the previous chapter. This is followed by a brief discussion on the increasing role of leT in the UAG business. In the next section, I focus briefly on the case study organisation, mission and culture. 6.2.2 Organisation structure, mission and culture Financial Services Group (FSG) (IiOO/o) International J oint Venture Partners (IJVP) United Assurance Group (UAG) ! 1 I I I Healthcare Insurance Company British Healthcare US Healthcare Life Assurm:e Company Wellness Science Company (HIC) Company Company (LAC) (WSC) (BHC) (UHC) South African llUUk.et Intemational market Figure 6.1 UAG's structure Source: Derived from UAG's financial reports United Assurance Group (UAG) is a subsidiary of Financial Services Group (FSG), one of South Africa's largest financial services companies (see figure 6.1). Listed on the Johannesburg Securities Exchange (JSE) and the Namibian Stock Exchange, FSG positions itself as an integrated financial services group, providing a comprehensive range of products and services to the South African market and niche products in certain international markets. It comprises a 179 Chapter 6 number of leading brands in banking and assurance, UAG being one of them. The dominance and performance of FSG in the South Mrican market is demonstrated by its market capitalisation of more than R77 billion in 2005. HIC, UAG's initial subsidiary company, was founded in 1992. At the time, HIC's offering was a fundamental shift in funding healthcare in the South Mrican healthcare industry. Driving HIC's growth was the medical savings account component of their product, which at the time was a major innovation in healthcare funding in South Africa. Because of tremendous growth, by 2000 HIC had been incorporated into a holdings structure, reporting to a parent holding company. UAG, the parent company, was composed of five divisions: Healthcare Insurance Company (HIC) , a healthcare finance company; Wellness Science Company (WSC), a company that provides wellness and loyalty programmes for customers and partners across the UAG group; Life Assurance Company (LAC), a life insurance company; United States Healthcare Company (UHC), a start-up healthcare company which UAG had launched in the US; and eHIC, the e-business arm of UAG. By 2001, eHIC had been integrated back into the UAG business, and was no longer regarded as a separate strategic business unit. It was now operating under the banner of H -World, which was the individual brand name of the website, and was a department restructured into the information technology department, reporting to the CIO. By 2004, UAG had extended its operations in the international health and life assurance markets, with the establishment of the British Healthcare Company (BHC). BHC focused on offering 'consumer-engaged healthcare products' for the UK's private medical insurance market. In 2000, UAG had more than 1 300 employees. By 2005, this number had more than doubled. More than 40% of the staff was composed of call-centre employees, IT made up 10% of the staff complement, while the rest of the staff was made up of administrative, actuarial and medical skills. The organisational make-up was complex in terms of diversity. There were differences in age groups, race, gender, social backgrounds, academic credentials, occupational disciplines and functional set-ups. These differences added to the interesting mix of social and political dimensions. 180 Chapter 6 At the heart of the UAG business was HIC. HIC's health plans were positioned as combining 'consumer empowerment and healthcare management to ensure that their members enjoy sustained affordable access to high quality care based on their needs'. HIC was covering more than 1.8 million lives by the end of 2005. WSC forms the unique underpinning to each of the four businesses. The aim of wse is to provide members with the tools to 'prevent disease and improve their wellbeing'. wse was launched in 1997 in response to the growing trend towards a healthier, more active lifestyle, and based on the premise that healthier lifestyles could translate into long-term savings on healthcare costs. According to the firm, WSC's purpose was to enhance the health of its members significantly. However, the cynics, especially in the form of the regulator, viewed this as a mechanism to appeal to the young and healthy