Delivering Real-Time Business Value for Insurance
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Transcript of Delivering Real-Time Business Value for Insurance
July 2013
Delivering Real-Time Business Value for
Insurance SAP Business Suite Powered by SAP HANA
Public
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public
The real-time opportunity
Insurance companies must seek new competitive
advantages in response to changes in customer trust,
demographics, and demands as well as profit margins
reduced by higher capital requirements, compliance
costs, and prize competition.
Create new and innovative products that excite customers
Respond rapidly to evolving trends
Develop flexible, efficient, and cost-effective business processes
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 3 Public
Delivering the future of insurance today Business priorities in insurance
Market insight
and customer
intimacy
Convert loyalty into revenue by utilizing predictive
analytics
Focus on the right markets by gaining insight into
customer analytics
Get a true 360-degree view on the customer
Insurance
operations
Speed up information flow in planning, forecasting,
simulation, and pricing
Maximize transparency for closed-loop fraud
processing
Finance, risk,
and compliance
Accelerate the closing process
Achieve real-time visibility of access and process risks
Maximize cash-flow efficiency
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 4 Public
SAP Business Suite powered by SAP HANA The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
Cloud Social
Big Data Mobile
One platform bringing it all together
Advanced
analytics
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 5 Public
Industry value map for insurance Enabling the customer-centric insurer
Procurement
Market Insight and Customer Intimacy
Customer and Multichannel Management
Marketing Management
Sales and Service Management
Sales Force Management
Finance, Investments, and Compliance
Strategy, Planning, and Consolidation
Governance, Risk, and Compliance
Accounting and Controlling
Investment and Asset Management
Core Insurance Operations
Product and Policy Lifecycle
Claims Lifecycle
Reinsurance Lifecycle
Billing and Payments
People and
Talent Core Human Resources
and Payroll Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 6 Public
Industry value map for insurance Enabling the customer-centric insurer
Procurement
Market Insight and Customer Intimacy
Customer and Multichannel Management
Marketing Management
Sales and Service Management
Sales Force Management
Finance, Investments, and Compliance
Strategy, Planning, and Consolidation
Governance, Risk, and Compliance
Accounting and Controlling
Investment and Asset Management
Core Insurance Operations
Product and Policy Lifecycle
Claims Lifecycle
Reinsurance Lifecycle
Billing and Payments
People and
Talent Core Human Resources
and Payroll Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer Experience Data Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Initial focus for
SAP Business Suite
on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Customer and multichannel management Business value for contact management with interaction center
High volume of customer records and interactions result in increased search times and greater difficulty locating specific customer records.
Customers demand consistent
service across channels.
When responding to social media
queries, service reps struggle to get
all relevant customer information,
leading to inefficiency and
dissatisfaction.
Searches in the interaction center ‒
including account searches,
interaction history, and the customer
fact sheet ‒ are significantly faster
Quickly identify customers and get a
complete 360-degree view in real
time
Route all inbound communications
to the best resource
Increase calls handled by
call center by
6%
Improve
Reduce
first-call resolution
and customer
satisfaction by
97%
service cost
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 8 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Marketing management Business value for marketing
Missed market opportunities due to lack of visibility and inefficient processes
Data explosion, driven by new level
of connectivity of consumers using
mobile devices and social networks
Data in disparate data sources, which
prevents true 360-degree view of the
customer
Agile marketing to respond faster to
changing market dynamics and
opportunities
New analytical data-mining
functionalities on Big Data (social
media, predictive)
Near real-time monitoring and
reporting on marketing performance
One central place for collecting all
customer data leading to 360-degree
view of customers in real time
Precision marketing to personalize
every interaction with the customer
Improve profitability by
0.5%
Optimize
Increase
return on
marketing
investments by
15%
customer
satisfaction by
30%
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 9 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Sales and service management Business value for sales
Difficult to identify profitable customers from customer pool
Inability to identify gaps in sales
pipeline leading to missed targets
Difficult to extract actionable information from the enterprise-wide customer data to maximize the chance of a sale
Minimal insight into buying preferences of customers in social data context
Easier identification of profitable
customers with account intelligence
analytics
Faster transaction search capabilities
Complete transparency into sales
pipeline (for example, in commercial
banking) based on real-time
information with unlimited drill-down
functionalities
Real-time analysis of Big Data to
better understand buying patterns
Real-time access and assembly of all
data including social sales data
Improve profitability by
0.5%
Increase
Improve
percentage of
sales reps
achieving quota by
17%
offer win rate
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 10 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Strategy, planning, and consolidation Business value for planning, budgeting, and forecasting
Planning performance limited to OLAP, staged cubes for transactional and master data
Data load performance is driven by
the amount of data extracted from
SAP Business Suite
Reporting, loading, and retraction
performance limits planning iterations
Drilldown within OLAP cube, and drill-through to SAP Business Suite and OLTP data within standard times
Seamless replication of master and
transactional data from SAP
Business Suite
Availability of more granular data to
support planning
Big Data challenge negated, allowing
for faster extract and DSO activation
times
Iterative planning and real-time
simulation supported through
improved performance
Improved performance for drilldown
(expand) and consolidation (collapse)
Fast drill-through and live view of
transactional data in SAP Business
Suite
Improve service level
performance
Reduce
Minimize
cycle times and
manual effort by
9%
operating costs
15%
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 11 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Governance, risk, and compliance Business value for access control role analytics
Most companies face a high volume and ongoing increase of unused and orphaned roles.
Scheduled batch jobs are required to analyze a transaction log with millions of records (such batch jobs usually take hours to complete).
The cost of ongoing role
maintenance can be high – one
customer estimated active ERP role
maintenance costs at about
US$4,000 annually.
Unused roles and orphaned roles constitute unneeded access risk to the organization (and possible compliance issues).
Conflicts associated with segregation of duties arise from continuous monitoring of access risks.
Accelerated analysis of role usage to
isolate unused and orphan roles
Deeper insight into roles for
uncovering any potential risk for the
organization
Role usage and assignment
information provide valuable insight
to business executives during
business reengineering and
reorganization
Trigger the assigned workflow
directly from the analysis to remove
unused roles assigned to users
Expose orphaned roles across the
system landscape quickly to begin
the decommission process
Identify unused and
orphaned roles
Consolidate
Reduce
most-frequently
used (active) roles
noncompliance and
overall access risk
With SAP Business Suite on SAP HANA
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Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and controlling Business value for entity close
Long-running processes
Time-intensive reconciliations
Limited time for analysis
Inefficiencies due to manual
processes and low automation
Missing financial excellence
results in higher cost of equity
at the capital markets
Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios
More time for analysis; less overtime;
earlier publishing of financial results
through faster period-end processes
and better reconciliations
Increased efficiency through smarter
reconciliations and reporting,
reducing operating costs and
improving stakeholder satisfaction
Real-time analytics down to the
lowest level of detail – delivering
quality, transparency, and process
efficiencies
Reduce time to close the
entities’ books by
13%
Reduce
Enhance
cost of finance by
15%
compliance and
accuracy by
18%
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 13 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and controlling Business value for financial and managerial reporting
Risk of noncompliance due to
unfulfilled (overruns in) audits
A lot of data; decision-relevant
information not readily available
Data analysis not supported or
automated
Long-running batch jobs/reports
Time-intensive data analysis
Large number of time-consuming and non-value-added processes required to access and provide accurate, up-to-date information
Timely execution of compliance-
relevant validation tasks
Increased end-user satisfaction
(accurate, detailed, visualized, timely,
and actionable information)
Acceleration of key critical-path
processes and reports
Instant response time on most data-
analysis queries
Elimination of workarounds and data
latencies
End-user data analysis through self-
service means
Improve service level
performance by
18%
Reduce
Reduce
month-end closing
time by
12%
operating costs by
17%
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 14 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and controlling Business value for profitability and cost analysis
Data latencies and process delays
impact the ability to react to issues/
opportunities.
Lack of data depth and user self-
service affect internal decision
making.
Long-running processes
Time-intensive data queries
Mostly manual data analysis
Substantial amount of time and effort on processes that do not directly add value
Suboptimal resource efficiency and effectiveness
Timely execution of critical business
processes supports decision making
and increases the ability to swiftly act
(insight-to-action) in dynamic market
environments.
Critical transactions and calculations
run quickly
Instant response times on queries
Prebuilt analytics automates the data
analysis process
Leaner processes from data capture
through data analysis
Increased productivity through
process-optimized analytics and
mobile support
Improve service level
performance by
17%
Reduce
Minimize
cycle times and
manual effort
4x
operating costs
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 15 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and controlling Business value for shared service framework for finance
Vendor, customer, and employee
queries generate a high load on the
shared services organization (SSO).
This demands an extremely efficient
working environment for agents in the
SSO.
Agents in an SSO spend a lot of time
searching for vendor, customer, and
employee data.
Shared services organizations are under constant pressure to improve the quality of service and to lower the costs of providing those services.
SAP HANA-based acceleration of
inbox performance speeds navigation
within the inbox. It allows the agents
in the SSO to review and prioritize
their work more efficiently.
Faster identification of vendors,
customers, and employees allows the
agent to provide more responsive
service, which leads to improved
satisfaction of the agents and the
clients of the SSO.
Reduced costs and faster response
times allow the SSO to meet its
service level agreements, meet its
budget objectives, and improve its
KPIs.
Increase productivity for
shared services
agents by
15% Improve
Reduce
employee
satisfaction
overall costs of
delivering services
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 16 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Core human resources and payroll Business value for payroll processing
Responses to management ad hoc
inquiries about trends of high volume
payroll information cause significant
costs to HR IT.
Business users have a very limited
ability to analyze payroll results.
Addressing employee inquiries about payroll is time consuming and expensive while HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services.
Free up HR IT resources to focus on
the execution of organizational
strategic tasks
Leverage thresholds as a steering
mechanism to optimize business
performance
Simplify payroll data analysis with
optimized representation of data
Slash time needed to access and
analyze critical payroll information
with SAP HANA-based high-speed
read access
Increase employee productivity and
satisfaction with faster response
times to employees
Increase productivity of users
responsible for
payroll management
10% Improve
Reduce
employee
satisfaction
overall costs of
payroll processing
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 17 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Core human resources and payroll Business value for effective shared services delivery
Employees direct queries to the
shared services organization (SSO)
and expect to get prompt, accurate
answers.
SSO agents spend time searching for
employee data using employee
identification.
SSO agents are under constant
pressure both to improve the quality
of service provided to employees and
to lower the costs of providing those
services.
SAP HANA-based acceleration of
inbox performance speeds navigation
within the inbox, allowing the SSO
agents to review and prioritize their
work more efficiently.
Faster employee identification allows
the agent to provide more responsive
service, which leads to improved
employee satisfaction.
Reduced costs and faster response
times allow the SSO to meet its
service level agreements and budget
objectives and to improve KPIs.
Increase productivity for
shared services
agents by
14% Improve
Reduce
employee
satisfaction
overall costs of
delivering services
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 18 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Time and attendance management Business value for time and absence calculation
Responses to ad hoc inquiries from
management about trends of high-
volume time information causes
significant costs to HR IT.
Business users have a very limited
ability to analyze time evaluation
data.
Addressing employee inquiries about time is time-consuming and expensive while HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services.
Free up HR IT resources to focus on
the execution of organizational
strategic tasks
Leverage thresholds as a steering
mechanism to optimize business
performance
Simplify time evaluation data analysis
with optimized representation of data
Slash time needed to access and
analyze critical time information with
SAP HANA-based high-speed read
access
Increase employee productivity and
satisfaction with faster response
times to employees
Increase productivity of
users responsible
for time
management
Improve
Reduce
employee
satisfaction
overall costs of
time management
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 19 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Workforce planning and analytics Business value for transactional analytics
Translation of organizational strategy
into HR metrics requires significant
effort or special expertise.
Decisions are often based on
hunches.
Difficult to zero in on underlying
transactions from high-level key
performance indicators
Time-consuming data loads in traditional reporting tools
Integrated and personalized cockpits
that provide insight into metrics that
matter most
Leveraging of thresholds as a
steering mechanism to optimize
business performance
Powerful predefined workforce and
time management-related KPIs for
managers, with the ability to navigate
into details
Embedded analytics inside business
transactions
Prebuilt virtual data models for real-
time transactional analytics
Simplified architecture
Increase revenue per employee by using analytics to identify strategic advantages
20% Optimize
Reduce
your business with
reliable real-time
HR data
time and costs of
operational reporting
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 20 Public
Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Procurement and order collaboration Business value for operational procurement
Missing real-time insight into
operational procurement reporting
Inability to dynamically create
operational procurement-related
reporting in a modern user interface
Slow and costly paper-based
processes
High transaction costs
Long-running transactions while posting documents with high volume of line items
Frequent errors yield to maverick spend
New configuration options for
procurement analysis
Modern and easy-to-consume user
interface
Complete visibility into end-to-end
procurement activities
Real-time insight and easy-to-
manipulate information
Accelerated long-lasting processing
of purchasing documents
Increase transparency
Lower
Increase
procurement
operations cost by
17%
process
effectiveness by
12%
With SAP Business Suite on SAP HANA
© 2013 SAP AG or an SAP affiliate company. All rights reserved. 21 Public
Next step Business scenario recommendation and value discovery workshop
SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
We suggest such a workshop with your
line-of-business and IT experts.
As a starting point, we recommend a performance
and usage analysis of your current software
system.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you