The development of value systems and the role of information
          systems in the portuguese insurance industry

Marques, Bruno Alexandre Ribeiro

doi:10.4301/S1807-17752013000300001

Bruno Alexandre Ribeiro Marques Address for correspondence / Endereço para correspondência Bruno Alexandre Ribeiro Marques, Catholic University of Portugal, Invited Professor, iLIDH Institute, Portugal, Researcher Portugal Master in Business from Universidade Católica Portuguesa (UCP), MBA (UCP) and PhD from Universidade de Aveiro, He is currently member of the Technology Department and coordinator of IT Governance and Best Practices committee at Açoreana Seguros Insurance Company. He collaborates with universities as a professor in the fields of Information Systems, Knowledge Management and Change Management. He is also an investigator in the areas of Information Systems and Organizational Development. He was as a consultant role in the areas of Management and information systems in national and multinational companies. Address: Av. General Norton de Matos, nº 19 - 8º Dt – Miraflores. Algés.. Portugal Phone: +351966541595 Email: brmarq@clsbe.lisboa.ucp.pt; bruno.armarques@gmail.com

Catholic University of Portugal, iLIDH Institute, Lisbon, Portugal

Address for correspondence / Endereço para correspondência Bruno Alexandre Ribeiro Marques, Catholic University of Portugal, Invited Professor, iLIDH Institute, Portugal, Researcher Portugal Master in Business from Universidade Católica Portuguesa (UCP), MBA (UCP) and PhD from Universidade de Aveiro, He is currently member of the Technology Department and coordinator of IT Governance and Best Practices committee at Açoreana Seguros Insurance Company. He collaborates with universities as a professor in the fields of Information Systems, Knowledge Management and Change Management. He is also an investigator in the areas of Information Systems and Organizational Development. He was as a consultant role in the areas of Management and information systems in national and multinational companies. Address: Av. General Norton de Matos, nº 19 - 8º Dt – Miraflores. Algés.. Portugal Phone: +351966541595 Email: brmarq@clsbe.lisboa.ucp.pt; bruno.armarques@gmail.com

Figures (9)
Tables (3)

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Figure 1
– Methodology for Empirical Verification

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Figure 2
– GPS Analysis Model (Integrated Partnership Management Model for the Insurance Industry) (note: Author’s analysis).

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Figure 3
- Scale of levels of maturity.

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Figure 4
– Overall Maturity Level of Insurance Value System and its components.

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Figure 5
– Characterization of the overall importance of IS.

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Figure 6
– Components of IS Maturity Levels.

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Figure 7
– IS types and impact on Partnerships.

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Figure 8
– Current and future Impact on partnerships of the dimensions of analysis.

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Figure 9
– SWOT analysis of insurance partnerships (Brief).

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Management challenges What strategic vision could be foreseen in the insurance industry considering the new competitive environment? Which are the keys for competitive differentiation assuming that external openness, strategic collaboration and learning are new strategic strengths? How to build, in a consistent manner, a strategy based on intangible resources – namely, information, innovation and knowledge? In light of value systems principles, how to manage partners, relationships and processes, in order to create value and in an integrated way? Table 1 – Management challenges

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Dimensions Theoretical references Brief Description Structure TCE Relational View Structure influences governance types and the collaborative potential of the partnership; centrality level is a way to acquire external knowledge. “Background” Relational View Dynamic Capabilities Capability to select partners in an integrated way; external openness in a quest to acquire more knowledge; ex-ante evaluation of partners. Formal Governance TCE Relational View Formal infrastructure and procedures as the basis for interaction between partners. Social Governance Knowledge Management Relational View Socialization and favorable psychological context as preconditions towards knowledge creation; investments in coordination methods to stretch partnerships’ learning potential. Knowledge management Knowledge Management Relational View Access to external sources of knowledge; capacity to assimilate the role and internalize knowledge through operative routines. Continuous learning processes. Innovation Dynamic Capabilities Innovation as a symptom of learning and Client-orientation based on competences coordinated through the value system. Information Systems Dynamic Capabilities Relational View Basis to the connectivity between heterogeneous systems; collaborative infrastructure. Dynamic Capabilities Dynamic Capabilities Flexibility and organizational qualities towards collaboration. Organizational catalysts and continuous learning. Human network (social ties) and an ethical climate through all functional levels. Execution Relational View Experience, organizational memory, roles and responsibilities in order to execute/operate the inter-organizational processes and coordination methods. Outcomes TCE Dynamic Capabilities Performance report designed following Balance Scorecard’s four perspectives; Collaboration Levels. Table 2 – Dimensions and references (brief).

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Capability Status measured in the Portuguese insurance industry Implications for the CIO Culture of Trust Insufficient level for superior stages of collaboration A resilient level of trust is needed The CIO should have good interrelationship capabilities and a culture of openness – behavior generates behavior Culture of Competences Complementary competences from Partners are recognized and valued Portfolio IT Management would allow the CIO to focus on strategic information systems, namely, collaborative systems Culture of Technology At an operational level there is a generalized usage of Portals and transactional systems Gap at the management level (analytical tools) and regarding collaborative functionalities The CIO should be aware of the potential of Web 2.0 and PRM Systems. Partnership performance indicators, Portfolio Partnerships Management and Business Intelligence could be applied to Partners Management. The CIO can be an agent of change in this strategic domain Cognitive Culture External Sources of knowledge (Current Partners) Insufficient vision of Partnerships in light of Knowledge Management theory and practice CIOs should have credibility to be in the first line of innovative projects considering Partners Management IT management best practices (ex: COBIT) would permit productivity gains, allowing focusing resources on high-value projects Table 2 – Summary of critical capability for the collaboration and impact of the information manager.

Management challenges

What strategic vision could be foreseen in the insurance industry considering the new competitive environment?
Which are the keys for competitive differentiation assuming that external openness, strategic collaboration and learning are new strategic strengths?
How to build, in a consistent manner, a strategy based on intangible resources – namely, information, innovation and knowledge?
In light of value systems principles, how to manage partners, relationships and processes, in order to create value and in an integrated way?

Dimensions	Theoretical references	Brief Description
Structure	TCE Relational View	Structure influences governance types and the collaborative potential of the partnership; centrality level is a way to acquire external knowledge.
“Background”	Relational View Dynamic Capabilities	Capability to select partners in an integrated way; external openness in a quest to acquire more knowledge; ex-ante evaluation of partners.
Formal Governance	TCE Relational View	Formal infrastructure and procedures as the basis for interaction between partners.

Social Governance	Knowledge Management Relational View	Socialization and favorable psychological context as preconditions towards knowledge creation; investments in coordination methods to stretch partnerships’ learning potential.

Knowledge management	Knowledge Management Relational View	Access to external sources of knowledge; capacity to assimilate the role and internalize knowledge through operative routines. Continuous learning processes.

Innovation	Dynamic Capabilities	Innovation as a symptom of learning and Client-orientation based on competences coordinated through the value system.
Information Systems	Dynamic Capabilities Relational View	Basis to the connectivity between heterogeneous systems; collaborative infrastructure.

Dynamic Capabilities	Dynamic Capabilities	Flexibility and organizational qualities towards collaboration. Organizational catalysts and continuous learning. Human network (social ties) and an ethical climate through all functional levels.
Execution	Relational View	Experience, organizational memory, roles and responsibilities in order to execute/operate the inter-organizational processes and coordination methods.
Outcomes	TCE Dynamic Capabilities	Performance report designed following Balance Scorecard’s four perspectives; Collaboration Levels.

Capability	Status measured in the Portuguese insurance industry	Implications for the CIO
Culture of Trust	Insufficient level for superior stages of collaboration A resilient level of trust is needed	The CIO should have good interrelationship capabilities and a culture of openness – behavior generates behavior
Culture of Competences	Complementary competences from Partners are recognized and valued	Portfolio IT Management would allow the CIO to focus on strategic information systems, namely, collaborative systems
Culture of Technology	At an operational level there is a generalized usage of Portals and transactional systems Gap at the management level (analytical tools) and regarding collaborative functionalities	The CIO should be aware of the potential of Web 2.0 and PRM Systems. Partnership performance indicators, Portfolio Partnerships Management and Business Intelligence could be applied to Partners Management. The CIO can be an agent of change in this strategic domain
Cognitive Culture	External Sources of knowledge (Current Partners) Insufficient vision of Partnerships in light of Knowledge Management theory and practice	CIOs should have credibility to be in the first line of innovative projects considering Partners Management IT management best practices (ex: COBIT) would permit productivity gains, allowing focusing resources on high-value projects

[1] Address for correspondence / Endereço para correspondência Bruno Alexandre Ribeiro Marques, Catholic University of Portugal, Invited Professor, iLIDH Institute, Portugal, Researcher Portugal Master in Business from Universidade Católica Portuguesa (UCP), MBA (UCP) and PhD from Universidade de Aveiro, He is currently member of the Technology Department and coordinator of IT Governance and Best Practices committee at Açoreana Seguros Insurance Company. He collaborates with universities as a professor in the fields of Information Systems, Knowledge Management and Change Management. He is also an investigator in the areas of Information Systems and Organizational Development. He was as a consultant role in the areas of Management and information systems in national and multinational companies. Address: Av. General Norton de Matos, nº 19 - 8º Dt – Miraflores. Algés.. Portugal Phone: +351966541595 Email: brmarq@clsbe.lisboa.ucp.pt; bruno.armarques@gmail.com

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The development of value systems and the role of information systems in the portuguese insurance industry