Development of Customer Relationship Management System to Improve Service Quality in PT Manulife Life Insurance Indonesia

Customer Relationship Management System (CRMS) Development in order to improve service quality in PT. AJ. Manulife Indonesia is done by comprehending the performance model of the company and the factors that are affecting the company performance improvement and the quality of the decision to be taken by top management. System Dynamic is a method that can be used to stimulate complex systems. System Dynamics approach is expected to build a model of corporate performance that can be used to evaluate the quality of service to customers so that they can make decisions quickly and accurately. This study proves that the model is built with standard models used as changing targets and it can simulate a target quality of service to customers by delivering current and future achievement. Achievement in the future is influenced by the value of achievement of SLA, Response Time, and Defect, where the greater value of control, the greater value of the correction rate so that the GAP will be smaller. Correction rate which is determined in this study was 10%, 20%, and 30% of GAP (CB)


INTRODUCTION
Business strong competition makes each company put their focus on strategy building in order to be able to survive and compete [1]. Each company has a boost that produces high quality and high competitive good or service that can be accepted in local or even international. The growing of life insurance industry in Indonesia from 2012 has increased rapidly the revenue of life insurance industry in II quarter (Q2) in 2012. It reaches Rp. 60,5 trillion or grows 18.5% compared to same period in 2011 which is Rp. 51 trillion [1].
PT. Manulife life insurance Indonesia is a company that conducts business in life insurance such as health insurance, life insurance, employee EHQH¿W DV ZHOO DV WKURXJK PXWXDO IXQG VHUYLFH DQG DVVHW PDQDJHPHQW IURP LWV DI¿OLDWHG FRPSDQ\ 7KLV stands since 1887 in Toronto, Canada, then develops in America, Japan, Philippine, Beijing, Hong Kong, Indonesia. PT. Manulife life insurance is headquartered LQ -DNDUWD LW RSHUDWHV WKURXJK PDUNHWLQJ RI¿FH network in 24 cities that are spread in Indonesia with more than 172 marketing division supported by more than 9.000 employees and professional agents and it has about 1.6 million active policies.
Ref. [2] states that excellent company must show concern to the future, human resources development, quality, advantage, achievement and focus on customer and all stakeholders. From Ref. [2], it needs to be emphasized that focus on customer is a challenge that is faced by PT. Manulife life LQVXUDQFH ,QGRQHVLD KRZ FRPSDQ\ FDQ IXO¿OO HDFK need of customer as well as give right solution. That activity is one of indications in achieving business excellence and it is stated in "ESI a New Method for Excellence Measurement" research done by Ref. [3].
To improve service on customers and operational activity of sales people (agent) in 2012, PT. Manulife life insurance Indonesia implements customer relationship management system (CRMS) under the name of Agency Link. Each customer data from new insurance purchasing (policy) will be noted LQ WKDW V\VWHP WKHQ LW ZLOO EH LPSRUWHG WR KHDG RI¿FH system. From that system, each online application IURP QHZ SROLF\ ZLOO EH VHQW WR KHDG RI¿FH RSHUDWLRQDO system to be processed and given decision (agreed, need completeness of information or pending, rejected), the goal is to automate underwriter job. The expectation from online application management is 85% from all new entry applications. Agency Link system supports needed information to customers, like information about development of entry policy, policy value, policy status, and other information that is needed by customers. It is conveyed through agent, as well as note issue from customer, then in each month, management does evaluation on that information.
From the researcher's observation, the usage of Agency Link in the period of July 2012 until June 2013 on average of online application is as big as 64% from all new entry applications. Here is the list: From that condition, the expectation of the usage of Agency Link isn't achieved. Evaluation that is done by management on all information of business activities and complaints certainly is used to make decision and improve service quality to customers. Each generated decision really affects the company performance, therefore observation is conducted on the Agency Link usage as CRMS in company by agents and build a company performance model that can develop information system for sales and simulate VHUYLFH ÀRZ WR FXVWRPHU :LWK WKDW VLPXODWLRQ UHVXOW it is expected that top management can take right decision, so company performance will continue to increase until company achieves and keeps business excellence.

Problem formulation
Each company has its own method in improving company performance. In this research simulation, a model will be made and the result is expected to be able to be used to solve problems. As for problems that will be analyzed are as following: Method that is used in this research uses three DQDO\VLV WRROV 6:27 LV XVHG WR REWDLQ FRPSDQ\ strategic factor by analyzing internal and external condition. Importance-Performance Analysis (IPA) is used to map relation of performance interest from VWUDWHJLF IDFWRU REWDLQHG IURP 6:27 WKHQ HDFK attribute that is offered would recognize gap between performance and interest level from that attributes. System dynamics is developed from system thinking. System dynamics method is chosen to build model that will be used based on gap as the background, because problem about company performance is dynamic and contains variables that are affected each other.
As aids in building simulating idea or formulating model as approach that thinks quantitative system, this research is facilitated with usage of computer application (SPSS Statistics version 17, Powersim Constructor version 9, Expert Choice version 9).
Standard model that is chosen in building a model in this research is a standard model of changing target since this model is a model that simulates a condition in which there is differences between targeted performance and performance that has been achieved. Quantitative approach is also used to analyze data that is collected at a time using time series, that is meant to know trend from a condition and to know cause and effect in simulation. That approach is used to explain what has happened in WKH ¿HOG ZKHUH WKH REWDLQHG GDWD LV PDGH DV VFLHQWL¿F writing in building a model.

Data collecting method
Data collecting in this research uses two types of data, which are: :LWK JRDO WR FRQWLQXH WR LPSURYH FRPSDQ\ performance to achieve and keep business excellence, variable that is used is dimension of service quality related to agent's sales operational activity with Agency Link. Therefore, in building company performance model, it can be seen like this: )LJ SURFHVV ÀRZ RI &506 RI FRPSDQ\ Entry application from agent will be submitted to MOOS (branch), then branch administrator will LQSXW GDWD LQ $:6 QH[W WKDW GDWD ZLOO EH VHQW DQG enter headquarter system (CAS) and it is received to be processed by underwriter. Data that enters in CAs will be counted by SLA for underwriter as calculation of performance process of submission new insurance policy application to customer [4][5][6][7][8][9][10][11][12][13].

Casual Loop Diagram of company performance
Here is the casual loop diagram of company performance: Listed loops in casual loop diagram (CLD) is relation between one variable with other variables, where positive sign means improving or strengthening and negative sign is decreasing or weakening. In deciding each circuit. It must be based on relation of cause and effect between variable where head of arrow expresses cause and tip of arrow expresses effect, either cause or effect element has to refer to a real condition or real world [14][15][16][17][18][19][20][21].

Stock Flow Diagram of company performance
After building CLD, next step is to build VWRFN ÀRZ GLDJUDP 6)' IURP WKH GHYHORSPHQW RI company performance model, as following:  /LIH LQVXUDQFH SURGXFW LV EHQH¿FLDO product for long term (>15 years). In UAT time, it is hard to get that long term condition because must be with batchjob that needs long time in accordance with ZDQWHG GDWH VR WR HQVXUH EHQH¿FLDO FDOFXODWLRQ FDQ ¶W EH IXO¿OOHG 2) Sales system hasn't been optimal because company sales application isn't fully to be able to support sales activity, so agents more choose manual process.

Opportunities SO strategy WO strategy
1) Increasing in effectiveness of sales information system will decrease manual process and head to paperless for sales activity. 2) Usage of system accelerates sales process and agents are easy to get accurate data about insurance information 3) Need of life insurance product in Indonesia people is continuing to increase along with Indonesia people consciousness of insurance function.
1) Develop information system that FDQ LQFUHDVH FRPSDQ\ SUR¿W 2) Sales activity of agents is supported by accurate and precise information system.

3) Excellence of company information
system can increase company image in premium market share in Indonesia.
1) Build information system that supports various company products. 2) Make information system fully support agent's sales activity.

3) Evaluation of information system
performance for sales activity in accordance with user's need and support future goal.

Threats ST strategy WT strategy
1) More competitor with various new innovation, so more various product offer to people. 2. Building and developing information system to create advantages on business along with support from management. Information system in company becomes additional trust value of outsiders (investor, shareholder, customers, people). Increasing trust from outsider will affect company image. 3. Improving sales target with fast and accurate sales activity process from company information V\VWHP 7KH VXSSRUW RI SURFHVV WKDW LV ¿WWHG ZLWK WKH JRDO RI PDNLQJ V\VWHP DQG IXO¿OOLQJ EXVLQHVV need. It means operational activity can run well.
In line with operational activity, management can continue to develop company strategy simultaneously by using the information system in company. If there is a hindrance in information system, then operational activity will be delayed.
For example, if in information system for sales activity occurs a mistake in submitting new policy or process due to inaccurate system, then that new policy needs more time to be processed, and the client might cancel the purchase of insurance product.
$V FRQFOXVLRQ IURP 6:27 DQDO\VLV 37 Manulife life insurance Indonesia needs to do progressive action to reach bigger opportunity by utilizing power that is held by company.

Achievement of company performance
Function of quadrant analysis is to show relation between assessment of interest level and satisfaction level of agents and employees on company support, especially IT department that affects service quality to customers. Here is the result of Cartesian quadrant from empathy and tangible variable: Achievement of company performance is successfully achieved in certain period time. This achievement will be made as reference to company to take decision to achieve of company performance. Data is made as basic management analysis in assessment on company performance. In this research, used data is data of July 2012 till June 2013 period.

SLA (Reliability)
If it is observed from month to month, graphic of SLA achievement in July 2012 till June 2013 period tend to increase simultaneously with increase of online application. Measurement of online application level can draw usage level of Agency Link [23].

Defect (Assurance)
Factor that affects the occurrence of defect LVVXH LV WKH LQGLFDWRU RI GLI¿FXOW\ OHYHO RI IDFHG SUREOHP 7KLV GLI¿FXOW\ OHYHO LV UHODWLYH XVXDOO\ IRU new employee, this allows the occurrence of defect, but old employee also has the possibility. Defect less than 7 times is still allowed, means that less than 7 times target is still achieved out of that then target can't be achieved anymore.

CONCLUSION
Conclusions of research by doing several scenarios in developing CRMS in order to take strategic decision and improve service quality are: 1. Company gives support in sales activity by providing CRMS as company power. From FRPSDQ\ 6:27 DQDO\VLV LQ TXDGUDQW , LW VKRZV that company is strong and has opportunity. From company power, it becomes opportunity for company to increase sales and achieve business excellence. To achieve that opportunity, measurement is done through service quality. Main priority from agent and employee on Agency Link is being able to help operational work, give information service without time limit, and give precise information according to what is expected by customer. From setting of correction rate of service quality, it is 10% from GAP and it will be achieved in 2018, when it is increased to 20%, then it can be achieved in 2015, and when it is increased to 30%, it can be achieved in 2014. The bigger rate of service quality value in GAP proves the faster target will be achieved, and it means the more increase on service quality to customers. The increase in service quality will affect company performance and service quality then it will give an opportunity to achieve business excellence. 2. Usage of CRMS that isn't achieved in accordance with target from management affects the increase in service quality. The unachieved increase in service quality is caused by unachieved SLA. In period of July 2012 to June 2013, achievement of maximum SLA is 92.10%, and minimum SLA is 80.80%, GAP between target and achievement is 7.9 %. The main cause of unachieved target of SLA is because there isn't any control to achieve the target.