Case Study Description of CIGNA Property and Casualty Reengineering (B)
In 1993 CIGNA Property and Casualty embarked on a full transformation effort under a new leadership team headed by Gerry Isom. This case presents progress through September 1995.
Authors :: Richard L. Nolan, Donna B. Stoddard, Elise Martin, Chiara Francalanci
Swot Analysis of "CIGNA Property and Casualty Reengineering (B)" written by Richard L. Nolan, Donna B. Stoddard, Elise Martin, Chiara Francalanci includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cigna Casualty facing as an external strategic factors. Some of the topics covered in CIGNA Property and Casualty Reengineering (B) case study are - Strategic Management Strategies, Change management, Design, Entrepreneurship, Human resource management, IT, Leading teams, Organizational structure and Technology & Operations.
Some of the macro environment factors that can be used to understand the CIGNA Property and Casualty Reengineering (B) casestudy better are - – there is backlash against globalization, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing commodity prices, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China,
increasing energy prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of CIGNA Property and Casualty Reengineering (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CIGNA Property and Casualty Reengineering (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cigna Casualty, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cigna Casualty operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of CIGNA Property and Casualty Reengineering (B) can be done for the following purposes –
1. Strategic planning using facts provided in CIGNA Property and Casualty Reengineering (B) case study
2. Improving business portfolio management of Cigna Casualty
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cigna Casualty
Strengths CIGNA Property and Casualty Reengineering (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cigna Casualty in CIGNA Property and Casualty Reengineering (B) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Cigna Casualty are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– Cigna Casualty is one of the most innovative firm in sector. Manager in CIGNA Property and Casualty Reengineering (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Cigna Casualty has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CIGNA Property and Casualty Reengineering (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Cigna Casualty in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Technology & Operations industry
– CIGNA Property and Casualty Reengineering (B) firm has clearly differentiated products in the market place. This has enabled Cigna Casualty to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Cigna Casualty to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Cigna Casualty in the sector have low bargaining power. CIGNA Property and Casualty Reengineering (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cigna Casualty to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Cigna Casualty has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cigna Casualty has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Cigna Casualty is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Cigna Casualty is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CIGNA Property and Casualty Reengineering (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Cigna Casualty is one of the leading recruiters in the industry. Managers in the CIGNA Property and Casualty Reengineering (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Cigna Casualty has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in CIGNA Property and Casualty Reengineering (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the CIGNA Property and Casualty Reengineering (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Cigna Casualty is present in almost all the verticals within the industry. This has provided firm in CIGNA Property and Casualty Reengineering (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses CIGNA Property and Casualty Reengineering (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CIGNA Property and Casualty Reengineering (B) are -
Increasing silos among functional specialists
– The organizational structure of Cigna Casualty is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Cigna Casualty needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cigna Casualty to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cigna Casualty is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CIGNA Property and Casualty Reengineering (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study CIGNA Property and Casualty Reengineering (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cigna Casualty 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Cigna Casualty, firm in the HBR case study CIGNA Property and Casualty Reengineering (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Cigna Casualty has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Aligning sales with marketing
– It come across in the case study CIGNA Property and Casualty Reengineering (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case CIGNA Property and Casualty Reengineering (B) can leverage the sales team experience to cultivate customer relationships as Cigna Casualty is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Cigna Casualty has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CIGNA Property and Casualty Reengineering (B), it seems that the employees of Cigna Casualty don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cigna Casualty supply chain. Even after few cautionary changes mentioned in the HBR case study - CIGNA Property and Casualty Reengineering (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cigna Casualty vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study CIGNA Property and Casualty Reengineering (B), it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Cigna Casualty has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities CIGNA Property and Casualty Reengineering (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study CIGNA Property and Casualty Reengineering (B) are -
Manufacturing automation
– Cigna Casualty can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Cigna Casualty has opened avenues for new revenue streams for the organization in the industry. This can help Cigna Casualty to build a more holistic ecosystem as suggested in the CIGNA Property and Casualty Reengineering (B) case study. Cigna Casualty can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Cigna Casualty to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cigna Casualty to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cigna Casualty to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Cigna Casualty can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Cigna Casualty can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CIGNA Property and Casualty Reengineering (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cigna Casualty is facing challenges because of the dominance of functional experts in the organization. CIGNA Property and Casualty Reengineering (B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Cigna Casualty has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cigna Casualty can use these opportunities to build new business models that can help the communities that Cigna Casualty operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cigna Casualty can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, CIGNA Property and Casualty Reengineering (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Cigna Casualty can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Cigna Casualty to increase its market reach. Cigna Casualty will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cigna Casualty in the consumer business. Now Cigna Casualty can target international markets with far fewer capital restrictions requirements than the existing system.
Threats CIGNA Property and Casualty Reengineering (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CIGNA Property and Casualty Reengineering (B) are -
Environmental challenges
– Cigna Casualty needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cigna Casualty can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Cigna Casualty can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Cigna Casualty in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Cigna Casualty has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Cigna Casualty needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cigna Casualty can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cigna Casualty.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CIGNA Property and Casualty Reengineering (B), Cigna Casualty may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Consumer confidence and its impact on Cigna Casualty demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cigna Casualty can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study CIGNA Property and Casualty Reengineering (B) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cigna Casualty with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Cigna Casualty needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Weighted SWOT Analysis of CIGNA Property and Casualty Reengineering (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study CIGNA Property and Casualty Reengineering (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study CIGNA Property and Casualty Reengineering (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study CIGNA Property and Casualty Reengineering (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of CIGNA Property and Casualty Reengineering (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cigna Casualty needs to make to build a sustainable competitive advantage.
