Assignment 2 - Case Study -Week 2

1. INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME
ASSIGNMENT 2 – CASE STUDY 1
TITLE: MODERNIZATION OF NTUC INCOME
LECTURER: PROFESSOR DR. RUSLI ABDULLAH
(email: rusli@upm.edu.my)
GROUP 13 Matrix No:
1. Hj Nasseruddin Bin Hj Abdul Jabar - P13D142P
2. Hj Zulkifflee Bin Hj Sofee - P13D136P
3. Chong Min Fatt - P13D154P
Prepared by: Hj Zulkifflee

2. INTRODUCTION
• NTUC Income is a life and General Insurance Company
based in Singapore.
• NTUC Income Insurance Co-operative Limited was
established in 1970 in response to the growing need for
affodable insurance for Singaporean workers
INFORMATION SYSTEMS& ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

3. INTRODUCTION
• Today, it is the only insurance co-operative in
Singapore.
• With a modest capital of $1.2 million, NTUC Income
has become Singapore’s leading composite insurer
offering life, health, general insurance and
investment-Linked products with total assets of
about $31 billion as at end of 2012.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

4. INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME
Question 1. What were the problem faced by Income in the case? How were
the problem resolved by the new digital system?
Question 2. What types of information system and business processes were
used by Income before migrating to the fully digital system?
Question 3.Describe the Information systems and IT infrastructure at Income
after migrating to the fully digital system?
Question 4. What benefits did Income reap from the new system?
Question 5 – How well is Income prepared for the future? Are the problems
described in the case likely to be repeated?

5. Question 1. What were the problem faced by Income in the case?
How were the problem resolved by the new digital system?
The problem faced by NTUC Income are:-
i. Delay day by day in business process and the process were very
tedious and paper-based.
ii. The existing system is HP 3000 mainframe still frequently broke
down.
iii. Backup data in a costly and tedious process, would risk losing
important data.
iv. The COBOL program also faced multiple broke down. It will
make a process slowly.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

6. continue
The problem resolve by:
i. Providing the Java based eBao life system from eBao
Technology.
ii. The software comprised three subsystems Technology,
Policy Administration, Sales Management and
Supplementary Resources.
iii. All applications resided on two or more software.
iv. Minimized downtime occurence due to hardware or
operating system failure.
v. Better communicating with customers.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

7. Question 2. What types of information system and business
processes were used by Income before migrating to the fully
digital system?
• Before migrating to the fully digital system, Income used
eBao Technology. The eBao Technology included:-
i. HP 3000 mainframe, that bosted the core insurance
applications as well as the accounting and management
information systems.
ii. The COBOL program that were developed in the early 1980s
and maintained by Income’s in house IT team.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

8. INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME
For the business progress, transaction processing for
policy underwriting was still a batch process and
information was not available to agents and
advisors in real-time.
To launch new product, time taken were ranged from
few weeks to months.
continue

9. Question 3.Describe the Information systems and IT
infrastructure at Income after migrating to the fully digital
system?
• Income migrating to the digital system in June 2003. Information
system after migrating;
• i. Switched from eBao Technology to the Java eBao LifeSystem in
June 2003.
• ii. The software comprised three sub-systems, Policy
Administration, Sales Management and Supplementary Resources.
• iii. All applications resided on two or more servers, each
connected by two or more communication lines, all of which were
“load balanced”.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

10. continue
Replaced its entire IT Infrastructure with more robust,
scalable architecture, Example;
• Scanner for all servicing branches
• Chabged monitor to 20 inches
• Upgraded OC RAM size to 128 MB
• New hardware and software
• Database servers
• Web Servers
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

11. continue
Installed disk storage system
LAN cable with faster cables
A fiber-optic backbone
Wireless capability
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

12. Question 4. What benefits did Income reap from the new
system?
The benefits reap from the new system are;
i. The system can be accessed anytime by staff and advisors.
ii. Information sharing among staff members become faster.
iii. Allowed Income to view summary of each customer.
iv. Under new system, all documents were scanned and stored
on”trusted’ storage devices-secure.
v. Minimized downtime occurrence due to hardware or
operating system failures.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

13. Continue
The benefits reap from the new systems are;
i. Cross selling became easier, and customer service could be
improved.
ii. Simplified workflows cut policy processing time and cost by
half.
iii. Greatly rduced the time required to design and launch new
products from months to day.
iv. Online support of customers, agent and brokers.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

14. Question 5 – How well is Income prepared for the future? Are the
problems described in the case likely to be repeated?
• Income is prepared very well for the future.
• Income was switched to the Java based eBao LifeSystem from
eBao Technology.
• The management of information system was changed to three
levels or structure –Policy Administration, Sales Management
and Supplementary Resources.
• Income decided to replace its entire IT infrastructure with
more robust scalable architecture.
• Income also revamped its business continuity and disaster-
recovery plans.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

15. continue
• Income had to throw away all paper records, including legal
documents. All documents now were scanned and stored on
“trusted” storage devices-secured.
• Income had to train employees who had been accustomed to
working with paper to use the eBao system and change the
way they worked.
We don’t think the delay day to day, tedious and paper-based
will be repeated. With the new system, income going forward
to the new environment and new culture in the business
process which will enhance performance and give a
competitive advantage to Income.
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME

16. THANK YOU
• PREPARED BY GROUP 13:
HAJI ZULKIFFLEE BIN HAJI SOFEE - P13D136P
HAJI NASSERUDDIN BIN HAJI ABDUL JABAR - P13D142P
CHONG MIN FATT - P13D154P
INFORMATION SYSTEMS & ELECTRONIC COMMERCE – GST 5083
MODERNIZATION OF NTUC INCOME