improved process performance using accenture's performance
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Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Improved Process Performance Using Accenture’s Performance Management Solution
Based on SAP NetWeaver
BISAP International Forum for Insurance Leipzig, June 10, 2008
© 2008 Accenture. All rights reserved. 2
Agenda
Summary
Overview
of PMS
How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?
Brief Overview of Enterprise Performance Management
Accenture in Profile
© 2008 Accenture. All rights reserved. 3
•
Customers: –
94 of the Fortune Global 100, more than two-thirds of the Fortune Global 500
–
Over 4,000 public and private organizations with approx. 18,000 projects in the last five years
•
More than 175,000 employees in 49 countries, approx. 5,300 at six locations in Germany, Austria, and Switzerland
•
Established in 1989; annual revenue for the fiscal year ending August 31, 2007: U.S.$19.7 billion
•
Listed on the New York Stock Exchange (since July 19, 2001)•
Average global annual growth rate of 16% (for the past 16 years) Frankfurt
Munich
Dusseldorf
Berlin
ViennaZurich
Globally (as of January 2008) about
175,000
Austria, Switzerland, Germany
4,978Switzerland 459
4,282GermanyAustria 237
Accenture is a global management consulting, technology services, and outsourcing company. Striving to deliver innovation, Accenture works with clients to enhance their performance. With extensive industry and business process expertise, global resources, and a proven track
record, Accenture can mobilize the right people, skills, and technologies to help customers improve performance.
Accenture in Profile
© 2008 Accenture. All rights reserved. 4
Agenda
Summary
Overview
of PMS
How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?
Brief Overview of Enterprise Performance Management
Accenture in Profile
© 2008 Accenture. All rights reserved. 5
A Key Characteristic of Leading Insurance Companies Is a Focus on Enterprise Performance Management (EPM)
EPM helps insurance companies to:•
Implement corporate strategy at strategic and operational levels•
Create transparency in business-critical processes•
Manage and optimize business performance•
Analyze key value drivers and their interdependencies
“By implementing EPM methods, leading companies can achieve a 2.95% increase in total return on assets and a 5.15% higher return on equity However, only 23% of the companies examined in this study actually achieved these results.”
(Harvard Business Review study)
© 2008 Accenture. All rights reserved. 6
Implement steps to enhance processes and systems
Provide management with information to assess performance and identify bottlenecks
Define measures, budgets, and guidelines for implementing strategic objectives
Manage daily operations based on activity planning
Strategy
Strategic
objectives
Plans
Control
key
figures
Management information
Initiatives for
improvement
Act
Do
Check
Plan
Insurance Companies Can Use Enterprise Performance Management to Align Their Business with Strategic ObjectivesEPM is based on a cycle of goal setting, planning, reporting, analysis, and definition of measures for improvement.
© 2008 Accenture. All rights reserved. 7
Both approaches must be embedded in an ongoing process of improvement if they are to take root.
Initiatives for
improvement
Lean –
stands for the value-oriented optimization of processes by eliminating process steps that do not add value.Defining characteristics:•
Demand-driven optimization of team strengths and skills•
Validated insights into process quality thanks to strict monitoring•
Identification of excess capacity and shortfalls and the consequences of each•
Control of the improvement process with an extensive set of key figures•
Monitoring of progress in relation to planning
Six Sigma –
stands for quality control aimed at minimizing variations in mission-critical processes.Defining characteristics:•
Identification of process variations•
Analysis of check results•
Monitoring of workload, backlogs, and lead times in relation to planned values
The Lean Six Sigma Method Clearly Demonstrates How Efficiency and Quality Can Be Closely Aligned
© 2008 Accenture. All rights reserved. 8
•
A unified data basis for process information
•
Clearly defined data structures
•
A flexible architecture and integration platform
•
A high degree of scalability
•
Easy integration•
Usability
A solution for process performance management must support the following requirements:
Strategische Ziele
Planvorgaben
Steuerungskennzahlen
Management-
informationen
Verbesserungs-
initiativen
Check
Plan
DoAct
Strategie Strategy
Strategic
objectives
Plans
Control
key
figures
Management information
Initiatives for
improvement
Act
Do
Check
Plan
An Ongoing Process of Improvement Requires a Valid and Reliable Process Data Basis in Order to Define the Right Improvement Initiatives
© 2008 Accenture. All rights reserved. 9
Costreduction
Salesgrowth
Customersatisfaction
•
40% reduction in process duration•
20% reduced
document
creation•
5% lower
resource
requirements
•
15% increase in customer satisfaction•
10% higher process success rate
•
2-10% growth in sales•
20% increase in customer supportcapacity
•
60% shorter
lead
times•
20% fewer
complaints
Significant Value Is Created Through Sustainable Management of Business Process Performance
© 2008 Accenture. All rights reserved. 10
Agenda
Summary
Overview
of PMS
How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?
Brief Overview of Enterprise Performance Management
Accenture in Profile
© 2008 Accenture. All rights reserved. 11
Translation of strategy into strategic maps
Strategic
map
Cause-effect
relationship
Value
driversObjectives
Strategy
and vision
Improvementinitiatives
Conversion of value drivers into key figures across several organizational levels
Key figure
management
Key figures and management cockpit
Reporting
PMS
Key figures Management cockpit
Accenture’s Performance Management Solution (PMS) Integrates Seamlessly into the Lean Six Sigma Improvement Methodology
© 2008 Accenture. All rights reserved. 12
PMS is based on the principles of Lean Six Sigma and provides management with consistent information about process times.
Working speed
–Overview of lead times and workload
Productivity
–Portion of the processing time actually used for customer-oriented work
Complaints
–Overview of customer complaints
Quality
–Insights into error rates and process success rates (number of error-free transactions)
Capacity planning
–Demand-driven control of the availability of resources and skills
The Performance Management Solution (PMS) incorporates five functional areas:
PMS Delivers Essential Information for Managing Operational Business Processes
© 2008 Accenture. All rights reserved. 13
Key Results•
A clear improvement in terms of quality, productivity, and processing times thanks to:–
Reports every two weeks to ensure consistent control of capacity and processing times
–
Weekly forecast of the expected workload for each team–
Daily reports to track success and for capacity planning•
Regular review of objectives as part of the improvement process
The
Challenge•
In 2002, process information was widely dispersed within Nationale
Nederlanden.•
A large backlog (of approximately 200,000 business transactions) had also built up at Nationale
Nederlanden.•
Processing times were, on average, more than 60 days and, in some cases, were more than 300 days.
•
As a result, operational costs rose in tandem with declining customer satisfaction.
The
Solution•
Nationale
Nederlanden
decided to implement a performance management system to control processes in accordance with key objectives, namely: a high level of customer satisfaction, cost efficiency, and a profitable product portfolio.
•
The objectives were translated into key figures and the main influencing factors determined in a control model.
•
The necessary reports were defined on the basis of this control model.
•
The application was firstly developed on the Microsoft.NET
platform with MS SQL as the database system. Accenture then developed the solution based on SAP NetWeaver
BI as a business packaged solution, which was delivered to Nationale
Nederlanden
at the end of 2007.
•
Nationale
Nederlanden
is the largest insurance company in the Netherlands.
•
Nationale
Nederlanden
is part of the ING Group, a global financial services provider of Dutch origin.
•
ING provides banking, insurance, and asset management services to more than 50 million private and corporate customers in 65 countries.
Operational Performance Management
Case
study: ING Nationale Nederlanden
© 2008 Accenture. All rights reserved. 14
Agenda
Summary
Overview
of PMS
How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?
Brief Overview of Enterprise Performance Management
Accenture in Profile
© 2008 Accenture. All rights reserved. 15
•
Overview of worklists, inputs and outputs, and lead times•
Information about bottlenecks and variations in the process flow•
Enables demand-driven optimization of team sizes and skills
•
Insight into the efficiency of operational processes•
Information about the time invested in value-driving activities•
Productivity key figures to analyze employee or team performance
•
Insight into the quality of process handling•
Support for a continuous process of improvement to reduce the error rate
•
Information about customer complaints and expectations•
Key factor in sustaining long-term relationships with customers
•
Requirements planning based on experience•
Helps management to monitor progress and to avoid capacity shortfalls and excess capacity situations
•
Provides an overview of the most important key figures with target/actual comparisons•
Helps management to handle trends and implement countermeasures
•
Defines target values for control key figures
Working
speed
Productivity
Management cockpit
Quality
Complaints
Capacity
Objectives
Solution components
The Solution Covers the Entire Cycle, from Strategic Planning to Implementation, Monitoring, and Control
Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16
Performance Management Solution
Operational systems
Master dataTime recording
Quality
management
Complaints
management
Process
management
DSO‘s
InfoSources/InfoObjects
InfoCubes
Management cockpit
Working
speed Complaints Productivity Quality Capacity
.
Example: SAP WFMExample: SAP CATS Example: SAP CRM Example: SAP ERPExample: SAP MDM
SAP NetWeaver
BI
Core
systems
Objectives Reqmntsplanning
PMS Architecture Enables the Integration of Data Sources from Operational Systems in All Company Areas
© 2008 Accenture. All rights reserved. 17
•
PMS based on SAP NetWeaver
BI builds on a solution that has been operated successfully for several years, with functions that cover the entire spectrum of tasks under the heading of EPM.
•
The SAP NetWeaver
platform lowers TCO and reduces risks.•
The solution facilitates the implementation of sustainable EPM methods, such as Lean Six Sigma.
•
Implementation is faster and less expensive with SAP standard planning and reporting functions.
•
All documents required to implement and modify PMS are delivered
as standard (activation guide, overview documents, functional and technical designs, test documentation, training material).
•
23 main reports, with over 100 views, were predefined based on a
Lean Six Sigma implementation.
PMS: Key Benefits
© 2008 Accenture. All rights reserved. 18
Agenda
Summary
Overview
of PMS
How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?
Brief Overview of Enterprise Performance Management
Accenture in Profile
© 2008 Accenture. All rights reserved. 19
Insurance companies…•
... can significantly improve efficiency and quality by implementing methods such as Lean Six Sigma.
•
...should support the implementation of a performance management solution with a reporting platform that provides fast, high-quality information for process control.
Accenture’s Performance Management Solution…•
…offers standard planning and reporting functions, which can be modified to suit specific business requirements.
•
…is based on a proven technology platform, which offers extensive integration options that reduce TCO.
•
…includes a wide range of predefined functions and tools to accelerate implementation.
Accenture’s
Performance Management Solution…
Summary
© 2008 Accenture. All rights reserved. 20
Christian-Hendrik NoelleSenior Manager
Accenture Campus Kronberg 161476 Kronberg, GermanyTel.:
+49 6173 94-67056Fax:
+49 6173-94-47056 Cell: +49 [email protected]
If You Have Any Questions, Please Do Not Hesitate to Contact Us
© SAP 2008
SAP INTERNATIONAL FORUM FOR INSURANCE
After the event, the presentations will be available at: www.sap.com/community/insurance2008
© SAP 2008
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