cio summit 2013 - idg kassi… · $490 million net operating profit after tax ; over two million...
TRANSCRIPT
CIO Summit 2013
The changing role of IT
Nagib Kassis Head of IT & Business Alignment
© Copyright Allianz 22/07/2013
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Overview of Allianz
© Copyright Allianz 22/07/2013
Fast facts … World’s largest P & C Insurer
$3.74 billion in GWP in Australia
$490 million net operating profit after tax
Over two million policy holders in Australia and NZ
Leading Workers Compensation insurer
Voted Large General Insurance Company of the Year (2009, 2011-2012)
Brands include …
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Hypothesis
© Copyright Allianz 22/07/2013
IT has never been more important in insurance
IT will be even more important in the future
What are some of the future challenges?
Do we know how fast?
Are we prepared?
4
IT has never been more important to insurance
© Copyright Allianz 22/07/2013
Social Mobile
Big Data Cloud
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
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IT has never been more important to insurance
© Copyright Allianz 22/07/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
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Business IT Alignment
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Business IT
High demand for IT
Do IT my way
Parochial View
Higher appetite for risk
Limited capacity
Do IT right way
Enterprise view
Lower appetite for risk
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Business IT Alignment
© Copyright Allianz 22/07/2013
Business IT
High demand for IT
Do IT my way
Parochial View
Higher appetite for risk
Limited capacity
Do IT right way
Enterprise view
Lower appetite for risk
Agile
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Business IT Alignment
© Copyright Allianz 22/07/2013
Business IT
High demand for IT
Do IT my way
Parochial View
Higher appetite for risk
Limited capacity
Do IT right way
Enterprise view
Lower appetite for risk
Combined Governance Framework
Agile
Collaborative Pace Layering
Tools & frameworks to empower business & give more control
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Business/IT Strategy Alignment
Manage Solution Delivery
Translate Bus Strategy into IT Demand
Run & Sustain
▪ Understand business strategy
▪ Understand business processes
▪ Understand technology use in the industry
▪ Set business expectations about opportunities and limitations
▪ Guide business on how to collaborate with IT
▪ Proactively suggest solutions
▪ Apply IT capabilities to business requirements
▪ Prioritise initiatives and projects
▪ Manage pipeline
▪ Marshall IT Resources
▪ Explain IT Cost drivers
▪ Discuss IT Service Levels
▪ Inform Business of IT outages
▪ Troubleshoot specific issues
Transforming the IT function from “order taker” to “initiative shaper”…
▪ Provide project updates
▪ Manage project resources
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 22/07/2013
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Allianz Digital Architecture in Action
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Allianz Digital Architecture in Action
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Allianz Digital Architecture in Action
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 22/07/2013
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Digitalisation affects the insurance industry
1 Forrester Technographics European Benchmark study, 2011 2 BPM data, 2012, P&C only 3 Forrester Technographics (European Average) 4 BrightLocal.com, 2011 (US + UK) 5 Forrester, Q4 2009, Q4 2011 (US)
55+ age group catching up online usage
Utilisation of Mobile also in insurance
Social media multiplies impact of customer
experience
Offers are getting more transparent
Customers getting self-directed and active
Customer centricity calls for a multi-access offer
100% increase of online purchase of home & car insurance overt the last 5 years in Europe¹
Strong utilization of internet before purchase in Europe2 +42%
64% of customers shopped online within the last 3 months³
3/4 of 55+ customers rely on Social Media for purchase decisions in US/UK4
15% insurance search via mobile today6
30-35% of hybrid customers in Germany / France9
Digitalisation Impacts on insurance business
model
80% increase of unsatisfactory service comments via Social Media in the last 2 years5
6 http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats 7 Industry experts 8 Forrester 9 Multi-access business model
Source:
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50% of people who did leisure travelling within the last 12 months booked at least 1 leisure trip on line8
10% theoretical permutations for online configuration of BMW 7 series 7
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Trends in Digital/Mobile
Business Capability Bundling Mobile Payments Location-Based Services Usage-Based Insurance
(Telematics) Mobile Advertising Straight Through Processing Paperless process Rich Media (HTML5, Image
Capture, etc.) MDM/BYOD – Mobile Device
Management Mobile User Interface Design Cross-Platform Enablement Tablet Proliferation
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IT has never been more important to insurance
© Copyright Allianz 22/07/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
19
IT has never been more important to insurance
© Copyright Allianz 22/07/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
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Complexity is a fact of life - how we manage it is the challenge
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5
1 Time
Bad complexity
Good complexity
Complexity within a company
Special / multiple discount systems Segment-specific solutions without
modularisation Special rating Niche products breaking platform logic with low
volume/scale effects Customer/channel specific print/wordings
Multi-channel provider Multi-labeling/branding Process automation Comprehensive product range
Drives differentiation and competitive advantage
Motor examples
Drives cost
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Managing complexity – A journey…
Customer perception
Market pricing
Sales approach/format
Service offering
Processes
IT
Products/tariffs
Degree of differentiation
Zero base Today Target
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“Complexity is your enemy. Any fool can make something complicated. It is hard to make something simple.”
- Richard Branson
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IT has never been more important to insurance
© Copyright Allianz 22/07/2013
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
New Good ComplexityService GrowthBusiness GrowthIncreasing demand through:
STP Paperless office Shift online New products/services
Digitalisation, innovation and consumerisation and big data
Robustness and Scalability… Vo
lum
e of
ele
ctro
nic
tran
sact
ions
2010 2005 2015 Today
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
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25
Computer ‘Infection’ (as-a-Service)
Cyber-attacks-as-a-Service
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IT has never been more important to insurance
IT in insurance
Business/IT alignment
Architecture
Digital innovation
Data and processes Complexity
Robustness and
scalability
Security
People
© Copyright Allianz 22/07/2013
27
Hypothesis
© Copyright Allianz 22/07/2013
IT has never been more important in insurance
IT will be even more important in the future
What are some of the future challenges? HUGE
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Hypothesis
© Copyright Allianz 22/07/2013
IT has never been more important in insurance
IT will be even more important in the future
Do we know how fast?
What are some of the future challenges? HUGE
Faster than we probably think
29
Hypothesis
© Copyright Allianz 22/07/2013
IT has never been more important in insurance
IT will be even more important in the future
Are we prepared?
Do we know how fast?
What are some of the future challenges? HUGE
Faster than we probably think
…………………..