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


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


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.


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


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


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


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


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


Thank You

Karen Pauli Senior Executive Adviser, Insurance



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



~$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



IT Environment/Architecture – iA Auto And Home



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

implementations can improve system performance and sustainability?



Discussion Point #1: Utilizing Best Practices



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



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



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

upgrades?



Discussion Point #2: Planning for Upgrades



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



Discussion Point #2: Planning for Upgrades

Sidney Lanier Bridge Wikimedia Commons

A major upgrade, you think?



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

is…from our perspective upgradeability cannot be a major event



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

transformation?



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.


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




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


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

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