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You were invited by the president of an insurance company who wanted to consult with you. The president told you that she had the following problem: The head of the life insurance department wanted to provide a new service to their customers. As the life insurance manager explained, this new service would be very beneficial for the customers. He was sure that by providing this service, they would be able to keep their current customers happy, and acquire many new customers as well. If this new service was not provided, their competitors may use this idea, and they may lose business and lose their position as the leader in the life insurance industry. In order to provide this service, a new information system would need to be developed and the hardware for processing would need to be upgraded. The information systems managers response to the president was that the required development was expensive and a significant workload. The information systems manager dismissed the request, claiming that the head of the life insurance department did not know what was required and what was needed to maintain a competitive position. He, the information systems manager, had a better view of what is required since he has been an information systems professional for many years. The president, in fact, confirmed that she was very happy so far with the performance and the efficiency of the information systems department. The information systems manager did not spend much money, and kept his cost as low as possible. She told you that by and large she trusted her information systems manager. Nevertheless, because of your reputation, she wanted to get your opinion.; What would you recommend to the president? Explain with a rationale.
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