Industry cultures define a lot about how companies in different industries acquire, deploy and support technology.
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The insurance industry is a late-adopter of technology. If the truth be told, most insurance executives really dont like technology very much. They see technology as a giant pain in the ass, something they cannot get along without (though wish they could), and something that costs way, way too much money.
The major insurance players were all late to the Internet and are still late, leaving lots of insurance sales to Internet companies like eHealth and Health Benefits Direct, not to mention all of the quote companies like Insweb, Netquote and Iquote, which take money from the insurances companies every time they channel a policy on their behalf. They cling to legacy claims processing systems that have long since crossed the cost/benefit line and are reluctant to make investments in business intelligence and service-oriented architecture. They even still wrestle with build-versus-buy decisions, as though operational technology never commoditized and outsourcing was still just an experiment. Overall industry grade? C.
The casino industry sees technology as a way to mine data to riches on the backs of gamblers who lose on Monday, but not Tuesday, and who really like to check into casinos from the back door, among other quirks that together profile the high rollers (those who lose lots of money). Their investments in CRM are paying off: they are extracting more money from the high losers than ever before. Overall industry grade: B+ for effectiveness (but a D for social responsibility).
The financial services industry is committed to technology on all levels. Its safe to say that they are operational and strategically committed to technology as a lever in their efforts to snare customers (or, as they say, clients) from cradle to grave. Some banks spend lavishly on technology and some only aggressively. Executives like Jamie Dimon (JP Morgan Chase; Bank One) and Jack Brennan (Vanguard) strongly believe in technology and spend huge amounts of money on new financial products, new service offerings and especially on the retail end of the business. Vanguards use of the Web is nothing short of game-changing. Overall industry grade: B+.
Next page: The retail industy; Plus: grading your own sector