Reference no: EM132297298
Case Two BMW: FIMC Launches Mobile App to Provide Enhanced Roadside Assistance Services
In any given year, more than 40 million people in the United States require some form of roadside assistance—whether it’s to get a battery restarted, a flat tire changed, or a car towed to a local repair shop. No one wants to be stuck on the side of the road, so many consumers choose to purchase a roadside assistance plan that gives them access to help in the event of an emergency. Consumers have choice when it comes to purchasing a plan, with options available from automotive aftermarket retailers and service providers, employee groups, insurance and financial institutions, and trade associations.
Since 1974, Financial Insurance Management Corporation (FIMC), headquartered in Sarasota, Florida, has been developing, marketing, and implementing outsourced, membership-based roadside assistance programs for customers such as AAMCO Transmissions, Citibank, Precision Tune Auto Care, and Wells Fargo. Through its customized programs, which also offer health, home, and travel services and discounts, the company provides roadside assistance benefits to more than 2 million members in the United States, Puerto Rico, and Canada.
When an emergency happens—even if it’s just a set of keys locked in a car—customers need and expect prompt service. And while FIMC prided itself on the high-quality customer service it provided via its call center and Web site, offering customers access to services via a mobile app was a logical next step. A primary goal for the company was developing an app that would deliver increased value to members by making it easier for them to access their benefits and take advantage of current promotions.
After researching alternatives, FIMC opted to go with a mobile solution developed by PointSource, a local software development firm, using IBM’s MobileFirst platform. To ensure that the app was firmly grounded in the company’s business objectives, FIMC and PointSource staff spent time translating the business requirements into a mobile strategy that fit within FIMC’s time and budget constraints. Once the groundwork was completed, PointSource was able to build a prototype of the FIMC mobile app in less than four weeks— deploying the final application just three months after the project started.
An important project requirement for FIMC was that the app be integrated with the company’s back-end systems, which hold membership data and benefits information. FIMC also needed an app that would be accessible by all of its members—no matter what type of mobile device they used. Rather than create multiple apps, PointSource developed a single, hybrid application that can run on both Android and Apple iOS devices. The app’s intuitive interface provides members with one-touch roadside assistance, personalized discounts and promotions, claim submission tools, and deductible-management features. The mobile app’s tools have improved the quality of the company’s communications with its members. And, because members who have easy access to their benefits are more likely to renew their memberships, the app has helped FIMC increase its renewal rates. Using the app, customers can quickly renew their membership from any location, ensuring continuous service.
Working with PointSource, FIMC plans on launching a new version of its mobile app every month. The PointSource development team uses cloud-based development services that allow it to create work items to share with FIMC on an ongoing basis. This allows FIMC to remain involved with the development process and helps PointSource stay in touch with FIMC’s priorities and changing business needs.
Critical Thinking Questions:
1. How important do you think it is for FIMC and other companies offering roadside assistance services to provide customers with access to services via a mobile app? Do you think a mobile app will provide FIMC with a competitive advantage, or is mobile access something that most customers have come to expect?
2. One ongoing concern for Vivobarefoot is the quality and speed of the Internet service available to its office in central London. Given that, do you think it made sense for the company to move more of its IT services to the cloud? Go online and do some research about Microsoft’s Office 365 product. What options does it offer for working offline if Internet service is not available? Does that change your opinion about Vivobarefoot’s shift to the cloud?
3. A recent survey by IBM of 585 mobile application developers and managers found that only one-third of mobile development projects successfully met project criteria in terms of budget, schedule, and project objectives. Given that, what are some of the potential risks for companies, such as FIMC, that develop and deploy a mobile app on such a tight schedule?