fst media technology & innovation – the future of insurance & wealth management conference...

FST MediaTechnology & Innovation – the Future of Insurance & Wealth Management Conference

Four Pillars of the CIO RoleStrategy, Governance, Risk and Delivery

Vivek Bhatia, Chief Information Officer

Sydney, 27 March 2008

2

What changes are impacting the industry?

Change Effect

Consolidation of insurers and distributors • Scale economies driving down price

• Leveraging of distribution

• International best practice

Insurers acquiring distribution • Blurring of boundaries of traditional models

• Cost efficiencies

• Compliance and independence

Changing demographics and purchasing trends

• Workforce change

• Internet – transactions and marketing

Private Equity and Hedge Funds • Pressure on listed company managers

• Absolute focus on shareholder returns

Labour market trends • Full employment driving wage inflation

• Competition for talent

3

Continuous change for us

INFORMATION

TECHNOLOGY

Changing business and technology

landscape

Thought leadership

Training & Development

Emphasis on business acumen

Exceeding customer

expectations

Partnership

4

Objective

business-enabling strategies1

2

3

4

To provide a satisfactory return to shareholders

Key Pillars for the CIO to help achieve the objective –

strong governance framework

sound risk management

reliable delivery capability

5

Key Priorities

Customer service

OperationalExcellence

Risk Management

Best team

Stra

tegy

do

ing

the

righ

t th

ings

Gov

erna

nce

doin

g th

em r

ight

Day

to

Day

Act

ions

Profitable growth

Business enabling strategies

7

strategiesResults of a CIO leadership survey conducted by IBM, Harvard & MIT -

2006 :

CIOs felt transformative power of technology was not recognised by CEOs

2007 :

Increasingly CEOs and the Board recognised technology as being central to innovation and competitive advantage and a significant driver to business value

Three main items on the agenda

• Performance improvement to external partnering, market expansion and internal efficiency

• Develop high potential IT staff to counter shortfall in talent

• Extend the level collaboration to the lines of business i.e. greater IT-Business alignment

8

strategies

Strong governance framework

10

governance is critical

Measurement of performance

Financial discipline

Partnering to achieve

business case outcome

Efficiency of end-to-end

function

Critical issues / High criticality / Not desirable

Some issues / Medium criticality

No issues / Low criticality / Very desirable

Confidence

Low -

Medium -

High -

Confidence

Low -

Medium -

High -

Confidence

Low -

Medium -

High -

Sound risk management

12

risk is the name of the game

Sustainability

De-risking the organisation

Measurement of risk

Defining appetite

Controls and ownership

Information Security

Disaster Recovery Planning

Business Continuity Planning

Regulatory Compliance

Protection & promotion of brand

13

risk is the name of the game

Reliable delivery capability

15

operational excellence

Drive competitor and market advantage

Best in class cost structure

Internal systems & processes

Measurement of service

Emphasis on customer service

Challenge convention

to drive change

consistently

“be patient in planning, but relentless in execution”

16

operational excellence

17

leaving thoughts

18

Thank You