For over 30 years, the "computer" has been one of the greatest tools available to help risk managers analyze "risk." From the early days of the R.L. Kautz System (one of the earliest risk management information systems known), to present day, claim software developers still have to deal with the "technology trap" – the planned obsolesce of computer hardware.
Never before in the history of computing, have technological improvements in computer hardware and software outdated the machines that reside on the desks of risk managers, at such an alarming pace. As we enter the 21st century, the adage of "buy a computer today and it will be outdated tomorrow" has never seemed more real. But to get a true understanding of the technology trap, we need to take a look at the beginnings of computing itself.
With the invention of the first mechanical counting device – the abacus – some 5000 years ago, Italian artist and inventor Leonardo da Vinci’s sketch of a gear driven adding machine in 1496, one could say the art and effectiveness of "computing" has withstood the test of time.
It was French philosopher and mathematician, Blaine Pascal (after whom the Pascal programming language was named) who used da Vinci’s concept, devising a method of gear-driven counting wheels in 1642, to create the first true computer – the Pascaline.
Blaise Pascal's Pascaline -- the first mechanical computer.
From these humble beginnings, we have seen the rise of computing to mammoth machines, which took up an entire floor of office space, to the eight-pound lap-top computers we have now. It’s hard to believe that the microcomputer of today harnesses over 100-times the processing capability of its vacuum tube predecessors.
More remarkable yet is the quantum leap in computing technology we have seen within the last 10 years. Its effects on the risk management community have been great, with many successes and a multitude of failures.
For example, turning back the clock to the 1970s – the heyday of the mainframe – most risk management departments relied on their Management Information Systems (MIS) departments for risk management system development, reports and the generation of payments. These systems were generally rudimentary in nature, and are now considered archaic in design.
In 1941, the $750,000 UNIVAC computer at the U.S. Census Bureau took up over 940 square feet of office space.
With the formation of Microsoft in 1975, Bill Gates introduced the first computing language for a personal computer – the eight-Bit Microsoft Basic Interpreter, and later MS-DOS – bringing the personal computer to the risk managers desk top without the need for MIS department dependency.
With a simple DOS-based system, a risk manager could now keep track of claims data within a personal database, data could be downloaded into a personal spreadsheet and numerically analyzed. The only problem was that early versions of these PCs were expensive (the computer itself, extra memory and hard disk space), and there were severe limitations on scalability to handle additional data.
These systems were the "norm" until the introduction of Windows 3.1x, when 16-Bit operating systems came into play to challenge the "user friendly" Mac environment. Since Windows ran under the DOS environment, DOS-based software was still feasible, though running in an emulator. Some problems with third party software evolved, including loss of functions and some system error messages. To correct these "bugs," many software vendors re-wrote programs to be "Windows compatible," which were released as new versions.
In 1993, a new and more powerful operating system took hold of 32-Bit technology – Windows NT – which was followed the next year with Windows 95 for non-UNIX machines. These programs eliminated the need for an ancillary disk operating system, as it was an integral feature of Windows 95. While Windows 95, 32-Bit technology was "backward compatible" with most 16-Bit Windows programs, some earlier versions experienced the same pitfalls as their older DOS-based programs; system lock-ups and data loss. Again, software vendors initiated the re-programming of their software to run properly on Windows 95.
While we have become comfortable in our new 32-Bit "Windows" environments, the table is about to be turned again. Scheduled for release next year, Hewlett-Packard and Intel will roll out their 64-Bit Merced chip, thrusting software vendors into another programming frenzy.
So what does that have to do with Risk Management? Plenty. Unless your RMIS software can keep up with the changes in computer technology, your department can soon become outdated, and in some cases, unable to remain compliant with state workers’ compensation standards. The upgrade of technology can also be costly. To run Windows 95 and some of the newer 32-Bit RMIS software, you must have a PC, which runs a 486 or better processor. Many claims departments still have 386 processors, and older 286 processors in use. Switching to a new RMIS package or upgrading to another version of your current software may require an upgrade in hardware, department wide, costing thousands of extra dollars.
Today’s risk manager should be concerned with one thing only, risk management, not computer and RMIS technology. The RMIS programs are only there to support the duties of the department. entered RMIS data should be valid – with Fort Knox security features – and worry-free with respect to data storage. Reports should be accurate and informative, easy to retrieve without guess work. RMIS users should also be able to use the system with a minimum of training, and have instant access to technical support should questions arise.
With all the changing technology, how can cost-conscious risk management departments obtain a state of the art risk management system, yet retain remain impervious to the need for hardware upgrades?
The key to staying out of the technology trap, of course, is never to get trapped in the first place. These were the same questions with which the developers of ClaimLink were faced – beating planned obsolesce – in an effort to develop a complete backward compatible system with the highest degree of reliability in a "mission critical" environment – claims.
The Sucaba development team researched nearly every computer manufacturer, including mainframes, minis and micro computers throughout the world. After ingesting volumes of information, their search led them to Hewlett-Packard in Palo Alto, California, and the 3000 series mini computer.
The Hewlett-Packard HP-3000 Mini Computer - The Power of a Main Frame, yet the Size of a Mini-Tower PC.
Recognized as a leader and innovator in computer system design, and with the well earned reputation as the most reliable general-purpose midrange commercial system in the world; the HP-3000 series began its life in the 1970s, and has evolved into the 32-Bit RISC (reduced instruction set computing) processor it is today. This remarkable mini powers organizations such as 3M, Allied Signal, Chevron, the County of Los Angeles and Time/Warner in their data processing needs.
Complete backward compatibility is ensured by HPs Multi Programming Executive operating system (MPE/iX). Designed as an open-environment, client-server, HP continually enhances MPE iX in an ongoing effort to expand functionality, networking and coexistence with UNIX based and NT based systems. In essence, the operating system remains true to it’s original binary capability, provides worry free upgrading without data loss or the need to manage migrations, unlimited scalability and complete data security due to its Legacy operating system.
In risk management terms, this translates into ease of system integration with your current environment, whether an organization runs under a DOS, Windows, Windows 95, Windows NT, MAC/OS or UNIX environment. Either stand-alone or integrated within a network, the "plug and play" capability of the HP-3000 will always continue to evolve into the third decade and beyond.
Getting caught in the technology trap is easy, especially if you aren’t aware of all the options. Beating the trap is even easier, providing you utilize a scalable, and truly open client-server system. The choice is ultimately one of risk management: spend more on systems and integration, or where it really counts – your loss prevention program.
For more information, visit the 
HP-3000 Business Server web page.
All Material Copyright © 1996, 1997, 1998, 1999 Sucaba Company, Inc.