Client: VGM Insurance

Industry: Insurance
Engagement: Vendor Search & Selection for a New Insurance Core System

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Challenge: Outdated, Inefficient Systems

VGM Insurance was operating on a legacy, on-premise core system that was outdated and inefficient. Many critical processes were performed manually, leading to operational bottlenecks and inefficiencies. VGM recognized the need to modernize its platform but required expert guidance to evaluate vendors and build a strong business case for the transition.

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Solution: Structured Vendor Selection & Business Case Development

VAi Consulting led a comprehensive vendor search and selection engagement, starting with 12 potential vendors and systematically narrowing the list to four finalists. Our approach included:

• Stakeholder Engagement & Requirements Gathering:
  We conducted in-depth meetings with all key stakeholders to gather business requirements and map existing processes.

• Vendor Evaluation & Scoring:
  A structured scoring system was developed to objectively assess vendors during onsite demonstrations, ensuring alignment with VGM’s operational needs.

• Business Case Development & ROI Analysis:
  We created a detailed business case template, supported by a financial model incorporating Total Cost of Ownership (TCO), Net Present Value (NPV), Internal Rate of Return (IRR), and ROI calculations.

 

Results: A Lasting Impact on Decision-Making

• Data-Driven Decision Making: VGM utilized the business case and scoring framework to confidently select the best-fit vendor.

• Adoption of a New Standard: VGM found the business case exercise so valuable that they adopted it as a standard practice for evaluating all major expenses moving forward.

 

Conclusion

With VAi Consulting’s strategic guidance, VGM Insurance successfully navigated the vendor selection process and made an informed, financially justified decision. This engagement not only modernized their core system but also introduced a structured, analytical approach to evaluating future business investments.