avoiding a legacy implementation: transformation 2015/sessions...source: ceb customer experience...

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation: Future-Proofing Your Core Systems Transformation Session #273 – Monday, June 8 @ 3:30 PM

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Karen Pauli, Senior Executive Adviser – CEB TowerGroup Karen Pauli is a Senior Executive Adviser in the Insurance practice at CEB TowerGroup with more than 25 years of insurance industry experience. She covers a wide range of topics in property and casualty insurance, specializing in distribution, underwriting, claims, predictive analytics, core systems, and business optimization.

© 2015 CEB. All rights reserved

4

Legacy Technology Limits Innovation and Change

Source: CEB Applications Leadership Council

Applications Spending Spending by Category in Conventional and Leading Enterprises

© 2015 CEB. All rights reserved

5

Policy Platforms Have to Support All Touchpoints

n = 527 Source: CEB Customer Experience Survey, 2013

Varying Channel Preference Across the Customer Journey Percentage of North American Insurance Customers by Channel Preference for Specific Activity, 2013

A typical customer will interact with

several different channels

throughout a product journey.

© 2015 CEB. All rights reserved

6

Core Systems are Highly Valuable

n = 110 Source: CEB FSI Technology Survey, 2013-2014

Property and Casualty Insurance Technologies Selected as Somewhat to Very High in Value Percentage of Respondents, 2013-2014

© 2015 CEB. All rights reserved

7

Three Factors Dominate Value Choices Most Important Factor in Technology Value Assessment1

Percentage of Respondents, 2013-2014

1Respondents could select one value choice from a list of five: financial return, functionality, process improvement, competitive advantage, ongoing costs and maintenance,

and enhancement of client value.

n =109 Source: CEB FSI Technology Survey, 2013-2014

© 2015 CEB. All rights reserved

8

Business Agility and Speed to Market Trump Cost-Efficiency in Cloud Adoption What Is the Most Important Value Driver in Considering the Cloud for Deploying Services at Your Organization?

Percentage of Infrastructure Executives, 2013

n = 68 IT Organizations Source: CEB Infrastructure Peer Perspectives, February 2013

© 2015 CEB. All rights reserved

9

Cloud Captures More Dollars

Percentage of Insurance Firms Expecting to Increase Spending by at Least 2% by 2016

n = 109 Source: CEB FSI Technology Survey, 2014

© 2015 CEB. All rights reserved

10

All Things Lead to Modern, Flexible Core Systems

Impact of Factors on IT Strategy and Implementation Decisions “Somewhat High/High Impact” Responses, 2014

82%

61% 60% 55% 54%

47% 43% 41% 31%

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Respondents gave an answer of “High Impact” or “Somewhat High Impact” to the question: “In the next 6 to 12 months, on a 1-5 Scale, with 5 being high impact and 1 being low impact, how much impact will the following factors have on your IT strategy and implementation decisions?”

n = 36

Source: CEB TowerGroup Insurance Agenda Poll

© 2015 CEB. All rights reserved

Thank You

Karen Pauli Senior Executive Adviser, Insurance

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Today’s Speakers:

Scott Hunt General Manager, PAS Software

CSAA Insurance Group & President – Project Innovation

Group

Pascal Lavoie CIO

Industrial Alliance

Philippe Lafreniere SVP & GM, Asia Pacific

EIS Group

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

~$300 mn (CA)

DPW

Province of Quebec

(Canada)

15 Insurance Products

9 + 6 Auto Home 24 months Core Systems

Implementation

05-26-2014 Go Live Date

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

IT Environment/Architecture – iA Auto And Home

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #1: What are the ways utilizing best practices during

implementations can improve system performance and sustainability?

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #1: Utilizing Best Practices

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #1: Utilizing Best Practices System

Performance and Sustainability

System Evolution Velocity

- Short Sprints - Continuous Integration - Automated Tests

System Debt Growth Rate

- Core vs Custom Feature - Efficiency of System Management

Ownership Costs - IT Resource Involvement - Training

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #1: Utilizing Best Practices System architecture can

very much impact longevity. Need to ensure you can continuously evolve: Assess where you need to

evolve Plan for rapidly changing

areas

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #2: Planning for Upgrades What are the specific benefits to planning ahead for

upgrades?

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #2: Planning for Upgrades

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #2: Planning for Upgrades Different types of feature implementations:

Customization

Extension & Configuration

Core

• Suitable for specific requirements

• Increases System Debt

• Flexible and Sustainable • Almost seamless transition

to new version

• Longer delivery cycle • Easiest upgrade path

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #2: Planning for Upgrades

Sidney Lanier Bridge Wikimedia Commons

A major upgrade, you think?

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #2: Planning for Upgrades Setting new standards for what an upgrade

is…from our perspective upgradeability cannot be a major event

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #3: Capitalizing on Cloud How can insurers capitalize on cloud for core system

transformation?

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Discussion Point #3: Capitalizing on Cloud The technologies for hardware, networking, operating

systems, data management and virtualization are evolving at a fast pace that questions the current depreciation norms and ROI expectations. Cloud solutions could ease some of the compliance

requirements for disaster recovery and business continuity plan.

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Discussion Point #3: Capitalizing on Cloud

EIS Cloud

Result is we are now productizing cloud based testing and deployment

Global distributed company = mastery of managing complex environments

Avoiding a Legacy Implementation

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Avoiding a Legacy Implementation

Thank you for your time! Any questions for today’s speakers? Karen Pauli – CEB TowerGroup Scott Hunt – CSAA & Project

Innovation Group Pascal Lavoie – Industrial

Alliance Auto & Home (IAAH) Insurance

Philippe Lafreniere – EIS Group

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

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