How to Win Friends and Save Money

EXL ConsultingHow to Win Friends and Save Money

OCTOBER 12, 2015

2 | May 2, 2023 | © 2013 EXL Confidential

Who are these guys?

Director, Operational Excellence

VP, Organizational Transformation

[email protected]

[email protected]

mailto:[email protected]




3 | May 2, 2023 | © 2013 EXL Confidential

Who is EXL Consulting?The EXL Consulting practice focuses exclusively on addressing the operational needs of our customers, from design to implementation, assuring outcomes along the way.

Our experienced practitioners target operating-model design, process optimization, technology implementations, effective use of data, and deep domain expertise to meet our clients’ ever-changing business landscape.

Deep Technical Architecture Experience

Worldwide Delivery

360+Global professionals

15+ years average experience

Strong Leadership

Business process solutions and technology focusDeep expertise in insuranceStructured products include data management and technology maturity assessmentsCombination of management consultants and technology specialists

Process improvement and strategic consulting focusCross-functional expertise with groups focused on insurance, healthcare, banking & financial services, utilities, and TTLBlend of management consultants and Lean Six Sigma practitioners

Financial process improvement, compliance, and control focusDeep experience with insurance and banking & financial services firmsBroad range of accountancy and audit certified professionals

Operational Excellence Organizational Transformation

CFO Advisory

4 | May 2, 2023 | © 2015 ExlService Holdings, Inc.

So what are we talking about today?

The competition, cost management, and information technology continue to show up on top of the major challenges to growth and profitability life insurers will face in the coming years.

Source: Towers Watson, North American Life Insurance CFOs Name Their Top Challenges

Top 3 Challenges Top PickCompetition 78%Cost Management 61%Information Technology 44%


So what should our priorities be?

A recent study noted 5 key priorities for life an annuity insurers to address some of these challenges.> Transform for Growth

> Addressing Longevity Risks> Achieving Information Fluency> Overcoming regulatory challenges> Upgrading Capital Management

Source: Deloitte, 2015 Life Insurance and AnnuityIndustry Outlook

Although all of these are important, this session will primarily focus on Transform for Growth and Achieving Information Fluency


So what exactly is transformation?

The Bottom-line: We need to see a unique blending of consulting, platforms, and

outsourcing acumen Source: HfS

Pull the levers…

• Streamline and digitize processes and improve turnaround time• Enhance staff productivity while reducing errors• Improve pricing and customer insights with data federation• Modernize legacy systems• Enable customer self-services and mobile

processreengineering

productivityanalyses

cost structure analysis

technical architecture

improvements


Achieving Information Fluency… huh?

Datamarts EDW

BusinessSystems

Geographic Data Socio/Economic Data

PUBLIC

ENTERPRISE

GOVERNMENT

Cloud

Data is dispersed and siloed

Florida has more golf courses than any other state and is home tothe World Golf Hall of Fame and Museum in St. Augustine


Data Unleashed™ Accelerated Data Federation

Data Unleashed™ provides the environment for rapid data integration, federation and unification

PUBLIC

ENTERPRISE

GovernmentSemantic Environment• Extensible Life Insurance Ontology• Predefined Calculations and Rules• Triple Store (in-memory or physical)• Semantic Reasoner• SPARQL Endpoint

Analytic Tools• SAS• R

The Florida Everglades are the only place on theplanet where crocodiles and alligators live together


Levers of TransformationEXL’s proprietary BluePRINT™ methodology addresses fundamental elements of business functional performance to identify “quick-wins” and transformational opportunities

Do we trust our data to make important decisions?

Do we have the right data?

Do we have proficient reporting capabilities?

Have we optimized utilization of our legacy IT?

Have we harnessed the power of emerging technologies to unlock potential?

Do we have effective and efficient processes to deliver products/service?

Do we consistently meet KPI goals?

Do we have the right skills to do the work?

How does the organizational model leverage skill based routing rules?

Do we understand evolved customer needs?

Are we market competitive?

Process

Data Technology

People

BusinessStrategy


The BluePRINT™ methodology is a rigorous data driven process producing level of information required for Business leaders to make informed investment and Change Management decisions. The transformational BluePRINT™ determines how to maximize investment in existing IT assets, while aligning process, data and technology with business strategy. Prior results include savings up to:

+ 25% reduction in variable workforce and/or department operating costs + 10% of annual IT operating costs

In 6-8 weeks, clients have in hand the ROI calculations and prioritized project plans to maximize the value of current IT assets and opportunities to introduce innovation to transform mission critical aspects of your business.

BluePRINT

Project Approach, Timeline, and Milestones

11

Project Initiation

Week 1

Current State DefinitionWeeks 2-3

AnalysisWeeks 4-6

Recommendations

Week 7

Sets foundation for the project’s goals, roles and governance• Define and rank

critical success factors• Identify constraints• Establish expectations

of deliverables• M: Project Kick-off

Kick-off Validation Report-out

Defines baseline current process and system and resulting gaps that correspond to key success factors and future vision• Conduct interviews to

baseline current processes and systems

• Review current systems and integration points

• Gather/Document current business rules and process

• Initiate current state scorecard

• M: Validate current state findings

Designs a target vision and definition to projects to transition from the current state to future state vision• Identify opportunity

themes leading to desired change

• Develop and prioritize a set of quick win projects

• Create high-level future state vision and identify opportunities for improvement to current state

• M: Validate improvement opportunities and future state vision

Prepare Optimization BluePRINT that includes recommendations, impact (time and money), and preliminary effort estimates for a more integrated and efficient Provider Enrollment process• M: Report-Out the

optimization summaries, plans, ROI, and business cases in the context of the BluePRINT to drive next actions

• M: Project Closure

Validation


Output includes “Quick Win” and Transformational projects that document:+ Strategically aligned goals+ Business Value and expected benefits including ROI+ Cognitive Corporation™ Scorecard+ Project Costs

BluePRINT Sample Deliverables


Project Framework:Cognitive Corporation ™

The Cognitive Corporation Framework allows firms to effectively and efficiently define, measure, analyze, improve, and control high priority activities

Key Components and Major Flows

• Data driven framework informs investment across 6 key areas of a Learning Organization

• Leverages a continuous feedback loop informing decisions, processes and business rules

• Creates a sustainable competitive advantage by exponentially increasing return on optimization and IT investments


Cognitive Corporation® Scorecard

* Weight:0: N/A or Not Important1: Minimally Important3: Moderately Important9: Extremely Important

How important* is the component that we’re scoring?

What specific aspect [of the Area] are we scoring?

Which of the 6 Cognitive Corporation™ areas are we scoring?

Weight x Score = Weighted Score

How much could we improve?

Max Score = Weight x 3Opportunity Score = Max Score – Weighted Score

How well** has the corporation actualized/realized the component?

How much of the Area has been fully utilized / realized / actualized?

** Score:0: Necessary, but missing1: Manual or automated with no/minimal leveragability2: Automated with medium leveragability3: Optimally automated, with high leveragability (building block)


Cognitive Corporation® Example 1/2

Area Component Definitions

Wei

ght

Scor

e

Wei

ghte

d Sc

ore

Max

Sc

ore

Opp

ortu

-ni

ty S

core

Summary Comments

Human integration How users interact w ith the system 9 2 18 27 9

SimulationAbility to expand human thinking through system simulation; concept of Sandbox environment 3 1 3 9 6

Data AnalyticsThe actual individual making the effective use of the data and the tools they have to perform useful data analytics 9 1 9 27 18

Implementation integration

Ability to apply their thinking into their systems; converting human thinking to system delivery (i.e. entry of edits) 9 2 18 27 9

53%

BPMBusiness Process Management: Execution and integration of processes and w orkflow and how much of w orkflow is automated 9 2 18 27 9

BRM Business Rules Management- Execution and integration of rules 3 1 3 9 6

58%Operational Data The storing of the business data 9 2 18 27 9

Unified DataUnifying the data both internally and externally 3 1 3 9 6

Content ManagementAbility to store the documentation (unstructured data) that is not part of Operational Data 9 2 18 27 9

ProcessActual storage and versioning of processes 3 1 3 9 6

Rules Actual storage and versioning of rules 3 1 3 9 655%

Data hidden in unstructured fields (notes) and not all are populated in source system Some data sources and integrity are uncertainLimited real-time data accessIndependent processesNo centralized repository of rulesDifficulty in versioning processes in environments (Dev, Test, and Prod)

Overall Score:

System of record is currently largely manually updated Users have to check automation accuracy Users conduct quality checks of same data multiple timesManual report generation capturing duplicative data

Overall Score:Some workflow is being handled through system, but actions still completed outside of the systemPrioritization through first in first out only. Manual prioritization otherwise.Rules in allowing automated actionsUnstructured reports and manual review required to determine workloadOverall Score:

Think

Act

Know


Cognitive Corporation® Example 2/2

Area Component Definitions

Wei

ght

Scor

e

Wei

ghte

d Sc

ore

Max

Sc

ore

Opp

ortu

-ni

ty S

core

Summary Comments

Alerts Ability to signal people to take an action 9 0 0 27 27Complex Event Processing (CEP) Internal

Ability to react to complex events (i.e. claim coming in from Provider)

3 1 3 9 6Complex Event Processing (CEP) External

When something happens externally (CMS) that triggers something (i.e. OIG reports, CERTs to be able to correlate) 3 1 3 9 6

13%Operational/Trend Analysis

Ability to look at historical data to see w here things are going (a piece of data analytics) 9 2 18 27 9

Predictive Analytics Ability for data mining (data scientists realm) 9 1 9 27 18Content Analytics Including the unstructured data in the mining 3 1 3 9 6

47%Reports Internal and CMS Reports 9 1 9 27 18

ETLData betw een the systems being brought together into DWH (i.e.) 9 2 18 27 9

System IntegrationSystems are integrated w ith multiple data repositories 3 2 6 9 3

Collaboration Tooling

How w ell they are using the system to collaborate and share information; i.e. Dashboards; interdepartmental view (MR - POE) 9 2 18 27 9

56%

Strength / Building Block

Neutral / Medium Leverage-ability

Weakness / Improvement Opportunity

A score of 100% is an area that has been fully developed with maximum benefits for the corporation.

Claim system data source for DWH, but manual processes are required for reporting and trendingLacking key data elements and/or completeness of data prevents holistic view for proactive actionsMinimal predictive analysis completed to see future trends; mainly reactive reportingOverall Score:

Highly manual process to produce multiple reports Many reports do not focus on the prioritized metrics for immediate proactive actionMaking good use of the automation tool to not only pull the data but populate the data

Overall Score:

Despite overall process being very highly stimulus-driven, the system has no automated alertsUrgent actions required sometimes go unnoticed without Users looking at ReportsEmail communications largely serve as the 'Alert' for UsersLack of integration with external performance data

Overall Score:

Communi-cate

Sense

Learn


BluePRINTTM Impact

~4x

BluePRINTTM Assessment

~8xShor

t Term

Long Term

Define success criteria and measure progress Aligning project roadmap with strategic objectives Taking a holistic view of the operation Cross functional client executive involvement and buy-in is a

REQUIREMENT

Key to our Success

“Clear visibility on levers to achieve transformation”

ROI on

BluePRINT

Process

Data Technology

People

BusinesssStrategy


Improve appeals operations productivity to meet growth of overall business

Business problem

solved

EXL approach/

toolsapplied

Resu

lts

Six Sigma data analysis tools to optimize functionFuture state design and optimization

40% increase in operation productivity

Paperless workflow across ECM, CTI/IVR phone response system and new workflow platform

Change Management LeadershipSolution Architecture and Implementation

45% Reduction in total operational cost

Replaced high cost printing solution with low cost commoditized solution

Quick WinLegacy Sunsetting

$1Min cost savings in first 18 months

Improved overall operations effectiveness and efficiencies throughout all upstream and downstream operations

Cognitive Corporation ScorecardTM

Designed and implemented a Cognitive Claim Review Solution Data Federation

300% increase in ROI in 18 months

25% decrease in duration of reviews

We have successfully deployed our BluePRINTTM methodology in over 50 projects to identify opportunities to reduce cost and add value.

Select Project Impacts


Questions?

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How to Win Friends and Save Money

Technology

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