At&T Wireless and Cigna Crm Failures

2013

A Tale of Two Failures

Cigna Healthcare and AT&T Wireless

SPJIMR

PGPM Group A7

Contributors:

Chirag Barhate

Dibyayan Das

Deep Dey Dashmanth Reddy

Gaurav Gupta

Jaydeep Joshi

Index

Case 1: Failure’s of Cigna’s $1 Billion IT overhaul 2

a. Overview 2

b. What made Cigna go for IT transformations? 2

c. What was the hurry? 3

d. What went wrong? – THE BIG MISTAKES 3

e. CIO - Did Anania fulfil her responsibility? 4

f. Role of the ‘name – brand system integrator’, CGEY 4

g. Corrective Measures 4

Case 2: AT&T Wireless Self destructs with CRM Upgrade 6

a. Why AT&T needed to upgrade? 6

b. Challenges of the CRM upgrade project 6

c. Reasons of project failure 6

d. Impact of project failure 7

e. Lessons learnt 7

Case1: Failure of Cigna’s $1 Billion IT Overhaul

Case Overview

In January 2002, Cigna HealthCare's $1 billion IT overhaul went live with 3.5 million members of the insurance company moved from 15 legacy systems to two new platforms in a matter of minutes. However, the resulting glitches in customer service were so significant that millions of dissatisfied customers walked away, and analysts downgraded Cigna's stock. The problems stemmed from Cigna's haste to get its new systems up and running. The IT team didn't take time to do thorough volume testing, and the back-end data just didn't work at the front end.

The result was:

* A loss of 450Million Dollar...