Alexander Forbe`s risk services rolls out extranet to 5000+ users

In support of its strategy to leverage benefit from using e-commerce more effectively, Alexander Forbes Risk Services is in the process of rolling out what is expected to be more that 5000 extranets to its clients over the next two years. According to Devan Reddy, Executive Director for the Risk Services division, the key business drivers behind implementing an extranet solution are a focus on improving customer service and adding value to clients.

"We are always looking for effective tools that add value to client servicing and therefore made a strategic decision to get more involved in the e-commerce environment. One of the greatest benefits we can expect from an extranet is the ability to service our clients on a 24-hour basis, all year round, enabling us to pass information on to them that is relevant to their business more quickly and add value beyond just a certain routine service as part of a risk programme", he says.

Reddy maintains that in terms of what Alexander Forbe`s is offering in the risk services environment, it is one of the first in the market, and the initial response from clients has been phenomenal. However, he is quick to point out that it is not the company`s intention to remove the interface between the client and the company`s servicing agents. "The time saved in delivering hardcopies of summaries and claims reports will allow more time to be spent on servicing the client and understanding their business better. We hope to spend more time with clients and add value to their business," he says.

The company currently has 150 extranets, and plans have been approved to extend the offer to all clients. This is expected to be in excess of 5000 extranets over a two-year period and, although the company understands that an extranet is not necessarily appropriate for all clients, every client will have the option to choose whether or not they want one.

In addition, because of the strategic nature of the decision to implement these extranets, the company won`t be passing the cost onto the client. "We are absorbing the cost ourselves and it won`t cost the client a cent more. This will be part of the service delivery. For us it is as essential as a fax machine and telephone. It makes it easier for us to do business and for our clients to do business with us," says Reddy.

Although the company`s extranet strategy was decided on 18 months ago, Reddy found that from the onset, the turn around time on their existing technology was far too long to guarantee the kind of service the company required, and it would take between 25-35 days to get a single extranet up and running. "We needed a technology that was more dynamic, flexible, easy to use and quick to market," he says.

In December 2001, solution provider Dimension Data approached Alexander Forbes with the locally developed intranet and extranet knowledge management framework called IntraCS, and in January 2002 the company began rollout to 150 companies. "IntraCS immediately gave us the ability to maximise delivery and build extranets a lot faster than our previous approach. We can now build an extranet in an hour, with a limited resource pool, with the value being passed directly onto our clients. From a scalability perspective, IntraCS adds tremendous value", says Reddy.

Beyond just the time it was taking to build them, another key issue facing the company was the ongoing management of the extranets. In this regard, a management interface tool was built using the existing IntraCS framework, allowing Alexander Forbes to easily maintain, update and change content and settings of profiles from a single interface, substantially reducing maintenance costs and the number of resources required. Reddy also maintains that it was important for the company to manage extranet utilisation by the client and identify the components that added the most value. "In the past we couldn`t do this, but with IntraCS we can now start tracking utilisation and add value in the areas where the most value can be added," he says.

He also maintains that clients are going through a phase now where they are getting accustomed to using web technology, and understanding that just because a piece of paper doesn`t exist it doesn`t mean that its not valid, and that whatever can be viewed on the web is valid, published and secure. "Clients are going through a bit of a cultural shift to achieve the value add," he says.

In terms of a strategy to identify the cost savings, Reddy maintains that it is one of those technologies where it is very difficult to measure. "You have to buy into it, make the investment, and then sit back and realise the benefits. We do have a strategy in place to measure benefits however we are already experiencing some. Realistically with IntraCS we installed 150 extranets in two months. If we went back to the way we were doing it, this would have taken us three years. That`s enough for me to put a value on the table and say here`s a saving," he concludes.