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Phase II (Sep 93 - Mar 94): Marine investigation

'The irony at the moment is that ... because the system is so old and antiquated it can't take that claims interface. They have 12 people keying claims in the service area, while you can get an interface that just automates all that. So you can imagine if you see this report, the Marine project pays for itself on cost savings, all these wishy washy statements that we can make £2 million profit by better underwriting, you can almost forget all that it pays for itself ???. Because these Marine people they pay, as well as all the kind of potential staff savings here, they also pay £600,000 odd a year to use the current system. ... That is an internal cost so it's funny money but, as far as X is concerned, it's their bottom line and the fact is that there is a team of 45 people maintaining that system in XUK and equally there is all the kind of processing resources the system consumes on the mainframe, so you can lose all that. So you do a five year cost benefit analysis on all that and the numbers look pretty good. ... Yes, I've done that, oh yes I had no problem selling it initially, it was the easiest cost basis I'd ever done.'

X022 page 010.01 (tape 01.2.06) Gordan Notes/Trans/Tape 27/01/94

Social influence: Organisation: Financial issues
Technical influence: IT environment: Existing systems


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