San Francisco, CA, USA
May 21, 2004Improving
Speed to Market
Reports Published by Celent
A Celent speed to market model projects higher
revenue and more profit from reduced product development time.
When senior insurance executives describe their
goals and objectives, they often speak of agility, flexibility,
responsiveness and speed to market. These concepts apply to every part of
the insurance value chain, but they are especially relevant to the
starting point in that value chain, product development.
Celent’s two latest reports present the case for
improving speed to market in the Property/Casualty market and in the
Life/Health market, respectively. The reports find impressive benefits
from accelerating the product development cycle and improving speed to
market. The financial rewards include higher revenue and profitability.
Establishing a role of market leadership is also important—especially
for companies selling through independent channels. And all channels,
prospects and policyholders value a relationship with a responsive,
innovative insurer.
"Using a Celent model for measuring speed to
market, we found a significant ROI for both Property/ Casualty and
Life/Health insurers," commented Donald
Light, senior
analyst in Celent’s insurance group and author of the report. Light
continued, "We also found that bottlenecks occurred most frequently
in two areas: making changes in the IT environment, and getting regulatory
filings right the first time."
The reports explain the two key metrics for
measuring speed to market. The first is cycle time for getting a single
new product to market. The second is product portfolio freshness—which
measures the portion of total sales contributed by new or enhanced
products. The reports conclude by describing several best practices, in
the areas of speed, process, and organizational. The Property/Casualty
report and the Life/ Health report highlight the regulatory and
competitive issues unique to each sector.
Both reports have 16 pages and six figures. Tables
of contents are available
online. Click
here for the life/health
edition, here for the property/casualty
edition.
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