sap customer billing final nov9fm.sap.com/pdf/9625/sap_cutting edge of customer billing...discover...

DISCOVER THE POTENTIAL | SAP AMERICAS INSURANCE FORUM | NOVEMBER 12-14, 2007 | MIAMI, FLORIDA

Michael Berlin / Hubert Schlees

IBU Insurance

SAP Customer BillingSAP Customer Billing


Agenda

Customer Billing & Payments Overview

Value Proposition

Current Offering – Customer Billing and Payments

Future Direction – ESOA

Demo



SAP for Insurance

MarketingManagementMarketing

Management

SalesManagement

SalesManagement

CustomerService

CustomerService

Mobile Field Enablement

Mobile Field Enablement

Collections & DisbursementsCollections & Disbursements

CommissionsCommissions

ReinsuranceReinsurance

Financial Asset ManagementFinancial Asset Management

Product ManagementProduct Management

Policy Management

Policy Management

ClaimsManagement

ClaimsManagement

Human CapitalManagement

Human CapitalManagement

General LedgerGeneral Ledger

ControllingControlling

SupplierRelationshipManagement

SupplierRelationshipManagement

ProcurementProcurement

Projects, etc.Projects, etc.

Business PartnerBusiness Partner

MDMMDM XAppsXApps XIXI PortalPortal Business Process Management

Business Process Management BIBI KMKM Mobile,

etcMobile,

etc

Strategic Enterprise ManagementStrategic Enterprise Management Business Information WarehouseBusiness Information Warehouse

Analytics

Insurance Core Applications

Insight DrivenSales & Service

SAP NetWeaver

Business SupportApplications

Electro

nic Bill

Presen

tmen

t

& Paymen

t

Collections &

Disbursements

Management Financia

l Custo

mer

Care, D

ispute

Manag

emen

t &

Collecti

ons Man

agem

ent

Credit Management


Customer Billing

Payment:ACH, LockboxCheckBiller Direct

Payment Application:Clearing OI

Collections:DunningInstallment planBRF

Customer Service:InquiriesDisputesUpdates

InvoicingSub-ledger postingsOpen itemsGL interface

Communication:E-mail Fax Paper

Exceptions:Returns

3rd Party Collections:Broker PortalGroup

Business

Business PartnersPolicies,

Contracts


Agenda


Value Proposition



Demo



Insurers with Over 100,000 Policies have an Average of 3.73.7 Separate Billing Systems

“Celent estimates that between 8% and 10% of non-maintenance IT spending will go toward billing over the next five years, ranging from about US$537 million in 2006 to US$749 million in 2010."

– Celent, 2006 Billing Survey

Projected Non-Maintenance IT Spending on Billing

Total IT Spending on NEW Billing Projects by US P/C Insurers(US $ Millions)

$800

$700

$600

$500

$400

$300

$200

$100

$02006 2007 2008 2009 2010

$537$589

$642$694

$749

Source: Celent Estimates


Insurers Want Customer Billing to be a Central Service

45% of insurers want to leverage Customer Billing as marketing/ service

65% of insurers want to achieve Enterprise Billing (not by line of business)

50% of insurers need EBPP capabilities ASAP

Source: Billing – Business and IT Issues for P/C InsurersFebruary 2006, www.celent.com


Separate Bills for Each Product Incurs Extra Costs and Encourages Customers to Shop Around

Pain: Unnecessarily high costs and poor cash flow

Products/Policy and Contract Systems

Billing and Receivables Systems

CUSTOMER

Fleet Manual

OtherWork Comp

Retro Plans

Credit LifeLife

P&C

Manual

System 1

System 3

System 7System 6System 5

System 4

Pain: Eroding customer retention

Pain: Lost marketing and cross-selling opportunities

System 2

HIGHER COSTS, POORER SERVICE, LOST SALES OPPORTUNITIES AND LOST CUSTOMERS


RESULT: LOWER COSTS, EXCELLENT SERVICE, INCREASED SALES, AND LOYAL CUSTOMERS

Solution: Reduce costs and increase cash flow

With SAP, Billing is a Strategic Marketing Advantage that Increases Customer Retention While Increasing Profitability

Solution: Increase customer retention

Solution: Identify and act on marketing and cross-selling opportunities

Products/Policy and Contract Systems Fleet

ManualOther

Retro Plans

Credit LifeLife

P&C

Work Comp

SAPSAP

CUSTOMER


Agenda


Value Proposition



Demo



Electro

nic Bill

Presen

tmen

t

& Paymen

t

Collections &

Disbursements

Management Financia

l Custo

mer

Care, D

ispute

Manag

emen

t

& Colle

ctions M

anag

emen

t

Credit Management

Customer Billing & Payments


Functional Highlights – Collections & Disbursements (FS-CD)

Multi dimensional master data

Payment plan interface

Incoming and outgoing payments

Reversal

Co-insurance

Interest calculation

Dunning

Deferral and Installment Plans

Write-Offs

Broker collection

Reinsurance

Closing operations

GL-Integration

Account view

Invoicing


Sub-ledger and Integration

Calculating Systems

Policy Management

Policy Management

Claims Management

Claims Management

CommissionManagementCommissionManagement

ReinsuranceManagementReinsuranceManagement

Posting

Invoicing

Payment

Clearing

Dunning

Returns

Interest Calc

Coinsurance

Broker Collection

(Third party collection )U

niversalInterface

BusinessPartner

BusinessPartner Collections and

Disbursements

General Ledger

Bank

Profitability Analysis

Cost Center / Profit Center

Cash Management

Business Warehouse

Correspondence


Electro

nic Bill

Presen

tmen

t &

Paymen

t

Collections &

Disbursements

Management Financia

l Custo

mer

Care, D

ispute

Manag

emen

t &

Collecti

ons Man

agem

ent

Credit Management

Functional Highlights – Electronic Billing Presentment & Payments (EBPP)

SAP Biller Direct offers

Web access

Display all items on the customer account (open, paid, payment arranged)

Initiate payments (via credit card, direct debit)

Payment authorization (via interface)

Recall payments

Bill presentment

Contact log integration (complaints, queries,...)


Functional Highlights –SAP Credit Management

Credit Rules Engine

Credit Limit Management

Credit Case

Credit Information

Credit Manager Portal

Electro

nic Bill

Presen

tmen

t &

Paymen

t

Collections &

Disbursements

Management Financia

l Custo

mer

Care, D

ispute

Manag

emen

t &

Collecti

ons Man

agem

ent

Credit Management


Functional Highlights – Financial Customer Care & Dispute Management

Call Center Environment for Financial Related Aspects

Financial Inquiries, Deferrals & Installment Plans, Payment Data

Dispute Case Management

Tight Integration to FS-CD

Interactive Collection Management

Electro

nic Bill

Presen

tmen

t &

Paymen

t

Collections &

Disbursements

Management Financia

l Custo

mer

Care, D

ispute

Manag

emen

t &

Collecti

ons Man

agem

ent

Credit Management


Channels of Customer Interaction (IC, Web)

Disputes

CRM, Web-Enabled Self-Service and EBPP

Collections & Disbursements

Management General Ledger

Accounting/ Controlling

EBPP

Complete Customer Billing Solution

Dis

pute

M

anag

emen

t

Cre

dit

Man

agem

ent

Back Office Accountant

Credit Checks

Collection & Disbursements

Customer

Service Representative

Broker/Agent


Agenda


Value Proposition



Demo



Enterprise Services Architecture

Enterprise Services ArchitectureEnterprise Services Architectureis a service-oriented architecture (SOA) which merges SAP’s enterprise application

content with the open composition

platform SAP NetWeaverTM to enable flexible

business processes by SAP, partners, and

customers.


Calculating Systems

Categories of Services

Open Item Management

SAP FS-CD

1.Enterprise

Service

Agents/BrokerAccountant Purchaser

Provideinformation

3. Enterprise Service

Policy Management

Policy Management

Claims Management

Claims Management

CommissionManagementCommissionManagement

ReinsuranceManagementReinsuranceManagement

2. Enterprise Service


SAP Customer Billing

Realize one face to the customer

Reduce administration cost

Straight through processing)

Centralize cash flow

Support all insurance lines of business

High volume processing

“SAP has developed applications specifically for the insurance industry, which we believe will enable us to achieve our internal goals and gain a competitive advantage.” Mitchell Graye, Executive VP and CFO Great West Life & Annuity Insurance.

“

Value Proposition – Conclusion


Agenda


Value Proposition



Demo



Demo Scenario - Customer Billing

Back Office Accountant Customer Customer Service Representative

Review Customer Account Balance

Review Customer Invoice

Access Customer Information via

Interactive Center

Access Customer Invoice via Biller Direct

Initiate a payment via direct debt

Apply Payment


Contacts

Michael BerlinIBU Insurance

SAP Labs, LLC3999 West Chester PikeNewtown Square, PA 19073

T 610.661-9715F 610.661-9716M [email protected]

Hubert SchleesIBU Insurance

SAP AGDietmar-Hopp-Allee 1669190 Walldorf

F +49/6227/78-24142M +49/160/ 3603721E [email protected]

sap customer billing final nov9fm.sap.com/pdf/9625/sap_cutting edge of customer billing...discover...

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