Innovation Comparative Analysis: Cigna vs. Aetna
The purpose of this paper is to provide a comparative analysis of two companies within the same industry (Cigna vs. Aetna) and an evaluation of their innovation processes.
Current Situation Analysis
A recent survey of the nation's top CEO's concludes that innovation remains the lifeblood of business. "For CEO's today, it's all about achieving growth and efficiency through innovation. It's not about product innovation so much anymore as about innovating business models, process, culture and management." (April, 2006).
In comparing Aetna and Cigna, it's interesting to note that the companies share a number of important similarities. Both are recognized leaders in the health insurance industry, and both are recent award winners for their innovative processes. Both are led by CEOs who are relatively new in their top positions, and both ascended from leadership positions within their company.
Perhaps most significantly, both are national companies competing for similar books of business. Both sell health insurance benefit plans to employers and single policies to individuals; both offer managed Medicare plans, seeking to capitalize on the opportunities for privatization created by the new Medicare Modernization Act of 2004.
They compete directly against each other in most markets, and both have identified the emerging consumer-directed health plan market as a key target for expansion and growth.
Innovation expert Tom Kelly recently stated "it's not enough to be an innovator anymore. You have to out-innovate the competition." (Kelly, 2006). Interestingly, it would seem that both Aetna and Cigna are adopting pages from Kelly's playbook that says those who succeed will be those who ...