CRM Implementation Failure at Cigna Corporation

According to analysts, one of the main reasons for Cigna's poor customer service and the resultant reduction in membership was the failure of the restructuring of its information technology (IT) and CRM³ systems, at its HealthCare division.

This US$ 1 billion project was aimed at moving 3.5 million customers of Cigna from the twenty year old computer systems to new AS400 systems that supported claims processing platforms - PowerMHS software and ProClaim software.

The project was monitored by the Chief Information Officer (CIO), Andrea Anania (Anania).

As a result, customer service went haywire resulting in millions of dissatisfied customers. The company lost six percent of its healthcare members in 2002 alone.

The management of Cigna, during the shareholders' meeting in October 2002, accepted that they had been unsuccessful in executing the project. Cigna's top management analyzed the reasons for the debacle.

The reasons cited were: greater than expected cost of implementing the project, and misconceptions about the timing of the economic benefits from the project...