Enterprise Planning and Implementation of AI in Ozicare Insurance Firm

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Enterprise planning and implementation assignment 1

Contents
Introduction.................................................................................................................................................3
Task 1 Making reasonable assumptions; outline the high-level strategy of the organisation to incorporate
AI & Machine Learning..............................................................................................................................4
Task 2 Consider the motivation of the Business provide with justifications for applying AI & Machine
Learning to its processes..............................................................................................................................5
Task 3 Using a Business Model Canvas, outline how the company’s Customer Relationship and
Partnerships will change through the project. Consider the resources and Benefits....................................6
Task 4 Assess the Values and Value Chains of the organisation, and discuss how the project will support
these............................................................................................................................................................7
Task 5 Consider the capabilities of the organisation, and at a high level, identify which capabilities need
to change during the Project........................................................................................................................8
Task 5 Define the current state and future state, the outcomes of the project and plan (at a milestone level)
the initiative. Consider also the Risks involved...........................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
List of figures
Figure 1 Stages of strategic planning...........................................................................................................4
Figure 2 Business motivation model...........................................................................................................5
Figure 3 Business canvas model..................................................................................................................6

Introduction
This report consists of project planning to implement AI and machine learning into Insurance
firm Ozicare. Ozicare wants to implement new technologies to enhance the customer relationship
and to meet the increasing customer demands. In order to implement this, a project has been
initiated and this report consists of the planning phase. The planning strategy has been defined in
this report, the benefits and risks of implementing AI have also been covered. This report
majorly focuses on what changes will be made through this implementation process and how the
value chain will be affected.

Task 1 Making reasonable assumptions; outline the high-level strategy of the organization
to incorporate AI & Machine Learning
To successfully implement AI and machine learning into the insurance firm, the strategy has
been broken down into the following steps:
 First of all, each activity that will be performed will be mapped and informed to the
respective team members.
 The employees should be trained to work with Machine learning and Al technologies or
external team can be hired too.
 Converting or replacing each activity such as claim management, fraud detection, and
risk management through machine learning and AI techniques.
 After performing any activity, progress needs to be tracked to improve the quality of
services.
 To support the ongoing process, identify an owner.
 Define scope before replacing each activity such as either a product feature needs to be
replaced or an entire department?
 Improving the current employee's awareness about the new technology and not replacing
them. Continuously analyzing the data and collecting the outcomes to detect if further
progress is needed.
 The consistent learning environment for the employees to start and keep up with
emerging technologies (Lemay, 2019).
Figure 1 Stages of strategic planning
(Sources: Draw.io)

Task 2 Consider the motivation of the Business provides with justifications for applying AI
& Machine Learning to its processes.
Considering the motivation of the firm, there are a lot of potential benefits of applying AI and
ML into insurance firm, such as:
 With the help of AI, employees can easily extract insights from data, manage and track
leads.
 AI can help in marketing insurance using a recommendation system to improve
generating revenue.
 AI and machine learning will help in detecting the fraud and prevent false insurance
claim such as AI built mechanism can detect whether the vehicle was damaged due to
bad weather or not, thereby preventing a lot of false insurance claims
 Machine learning can collect data using templates for claim management to make the
whole working process more efficient.
 With the help of AI chatbots, insured users can interact with the machine to claim their
insurance and no human intervention is needed.
 AI detection system can work for detecting the market issues, government policies and
laws to predict the potential signs that can be taken early.
 Asset management can be faster with AI and machine learning.
 Machines learning algorithms and techniques such as clustering, input recognition can
manage the huge database of the firm and also will replace manual data management and
handling (Balasubramanian et. al, 2018).
Figure 2 Business motivation model
(Sources: Draw.io)

Task 3 Using a Business Model Canvas, outline how the company’s Customer Relationship
and Partnerships will change through the project. Consider resources and Benefits.
AI and machine learning will make the customer relationship better in the insurance firm.
Customers want interaction with the company either through emails or call centers etc. The
whole customer relationship needs to be personalized. Those insurance companies which will
fail to keep the customer's relationship will lose their customers to their competitors. Therefore
with the help of AI chatbots, customer interaction will be a boost. Image recognition will help
the in claim processing of insurance firm. AI techniques like handwriting recognition and voice
recognition will increase claim management. AI enabled chatbots u smoother and effortless.
Embedding AI and machine learning into an insurance firm will reduce the manual effort that
was needed before for claim management system or fraud detection system. With the help of AI
in-built technologies, the former systems will be replaced. Database management systems will be
embedded to analyze the data because insurance firms have a huge amount of data which needs
to be analyzed to better the recommendation systems. Therefore AI and machine learning will
take over the old customer relationship management and partnerships (Kelley, 2018).
Figure 3 Business canvas model
(Source: Draw.io)

Task 4 Assess the Values and Value Chains of the organization and discuss how the project
will support these.
Value chain determines the internal activities that took place in a firm to make its products and
services better either in terms of cost and differentiation. Value chain analysis of the firm
indicated that the internal firm activities which are most valuable for this firm which makes its
services different from its customers are customer management services and policy
administration. These are really helpful for the value chain by differentiating their services. AI
will help in understanding the emails and requests of the customers. With the help of chatbots
and automatic call centers, insurance firms will get more intricate with the working systems. A
virtual assistant will enable policy administration, renewal and cancellation of services without
needing human interventions. The insurance firm will benefit by increasing their value chain
management with the help of AI because AI will make it possible to process unstructured data
without committing mistakes and errors. Machine learning, video analytics, robotics are the field
of Al that will be embedded into the day to day working of insurance firms. All these activities
will ensure better customer management services (Eling and Lehmann, 2018).

Task 5 Consider the capabilities of the organization, and at a high level, identify which
capabilities need to change during the Project.
Considering the capabilities of the firm, a lot of things will be changed while incorporating AI
technologies such as machine learning into the current working system. Insurance firms are also
slow to changes and adaption hence the project cost will be high to implement AI, therefore,
expenditure on resources will increase. The value chain will be modified accordingly to
accommodate changes during AI implementation (Kogo and Kimencu, 2018).

Task 5 Define the current state and future state, the outcomes of the project and plan (at a
milestone level) the initiative. Consider also the Risks involved.
The current insurance industry is facing a lot of problems such as
 The insurance sector is growing at slower rates than the other sectors, unlike the older
days now the focus has been shifted towards cross-selling customer bases and to increase
retention of customers.
 Some of the times, insurance firm fails to pay the claims and financial challenges are the
biggest obstacle these days.
 The insurance firm is facing tough competition in the market because every other firm is
moving towards technology and increasing their sell and customer trust factors thereby
giving a major challenge for this firm to incorporate AI and machine learning into the
working processes.
 Due to lack of automation, there is a lot of human intervention which has led to
mismanagement. Customer complaints, risk management, and claim management are not
up to the mark.
 With no predicting technologies, the insurance firm can fail to meet the changing
economic criteria, policies and government laws.
 Customer expectations have become higher.
In the future, insurance companies can automate all these tasks with AI and machine learning
and will be able to predict risks in advance. There are some risks such as AI have the ability to
identify patterns and apply it to make conclusion while analyzing the risks but as these patterns
are not fully understandable by humans, therefore, it will be a risk to depend upon something that
is unknown to managers and employees (Lamberton et. al 2017).

Conclusion
Insurance industry grows at a slower pace but with increasing customer expectations, AI and
machine learning need to be implemented to make the claim management, risk management can
be improved. There are a lot of benefits of AI as automating the tasks which need human
intervention will also decrease and error will be minimized. Chatbots and robotics can be used as
highly effective technologies into insurance firms.

References
Balasubramanian, R., Libarikian, A., and McElhaney, D., 2018. Insurance 2030—The impact of
AI on the future of insurance. McKinsey & Company, New York, NY, USA, Apr.
Eling, M. and Lehmann, M., 2018. The impact of digitalization on the insurance value chain and
the insurability of risks. The Geneva Papers on Risk and Insurance-Issues and Practice, 43(3),
pp.359-396.
Kelley, K.H., Fontanetta, L.M., Heintzman, M. and Pereira, N., 2018. Artificial Intelligence:
Implications for Social Inflation and Insurance. Risk Management and Insurance Review, 21(3),
pp.373-387.
Kogo, P.K., and Kimencu, L., 2018. Organizational capabilities and performance of insurance
companies in Nairobi city county, Kenya. International Academic Journal of Human Resource
and Business Administration, 3(1), pp.126-149.
Lamberton, C., Brigo, D. and Hoy, D., 2017. Impact of Robotics, RPA and AI on the insurance
industry: challenges and opportunities. Journal of Financial Perspectives, 4(1).
Lemay, M., 2019. Towards Data Science. [Online]. Available from:
https://towardsdatascience.com/implementing-a-corporate-ai-strategy-a64e641384c8 [20 April
2019].