Delivering Real-Time Business Value for Insurance

July 2013
Delivering Real-Time Business Value for
Insurance
SAP Business Suite Powered by SAP HANA
Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Insurance companies must seek new competitive
advantages in response to changes in customer trust,
demographics, and demands as well as profit margins
reduced by higher capital requirements, compliance
costs, and prize competition.
 Create new and innovative products that excite customers
 Respond rapidly to evolving trends
 Develop flexible, efficient, and cost-effective business processes

Delivering the future of insurance today
Business priorities in insurance
Market insight
and customer
intimacy
 Convert loyalty into revenue by utilizing predictive
analytics
 Focus on the right markets by gaining insight into
customer analytics
 Get a true 360-degree view on the customer
Insurance
operations
 Speed up information flow in planning, forecasting,
simulation, and pricing
 Maximize transparency for closed-loop fraud
processing
Finance, risk,
and compliance
 Accelerate the closing process
 Achieve real-time visibility of access and process risks
 Maximize cash-flow efficiency

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for insurance
Enabling the customer-centric insurer
Procurement
Market Insight and Customer Intimacy
Customer and Multichannel Management
Marketing Management
Sales and Service Management
Sales Force Management
Finance, Investments, and Compliance
Strategy, Planning, and Consolidation
Governance, Risk, and Compliance
Accounting and Controlling
Investment and Asset Management
Core Insurance Operations
Product and Policy Lifecycle
Claims Lifecycle
Reinsurance Lifecycle
Billing and Payments
People and
Talent
Core Human Resources
and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration

Industry value map for insurance
Enabling the customer-centric insurer
Procurement
Market Insight and Customer Intimacy
Customer and Multichannel Management
Marketing Management
Sales and Service Management
Sales Force Management
Finance, Investments, and Compliance
Strategy, Planning, and Consolidation
Governance, Risk, and Compliance
Accounting and Controlling
Investment and Asset Management
Core Insurance Operations
Product and Policy Lifecycle
Claims Lifecycle
Reinsurance Lifecycle
Billing and Payments
People and
Talent
Core Human Resources
and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning and
Analytics
Supplier Discovery and
Lifecycle Management
Strategic Sourcing and
Contracting
Procurement and Order
Collaboration
Collaborative Invoice
to Pay
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Initial focus for
SAP Business Suite
on SAP HANA

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Customer and multichannel management
Business value for contact management with interaction center
 High volume of customer records and
interactions result in increased
search times and greater difficulty
locating specific customer records.
 Customers demand consistent
service across channels.
 When responding to social media
queries, service reps struggle to get
all relevant customer information,
leading to inefficiency and
dissatisfaction.
 Searches in the interaction center ‒
including account searches,
interaction history, and the customer
fact sheet ‒ are significantly faster
 Quickly identify customers and get a
complete 360-degree view in real
time
 Route all inbound communications
to the best resource
Increase
calls handled by
call center by
6%
Improve
Reduce
first-call resolution
and customer
satisfaction by
97%
service cost
With SAP Business Suite
on SAP HANA

Today
Marketing management
Business value for marketing
 Missed market opportunities due to
lack of visibility and inefficient
processes
 Data explosion, driven by new level
of connectivity of consumers using
mobile devices and social networks
 Data in disparate data sources, which
prevents true 360-degree view of the
customer
 Agile marketing to respond faster to
changing market dynamics and
opportunities
 New analytical data-mining
functionalities on Big Data (social
media, predictive)
 Near real-time monitoring and
reporting on marketing performance
 One central place for collecting all
customer data leading to 360-degree
view of customers in real time
 Precision marketing to personalize
every interaction with the customer
Improve
profitability by
0.5%
Optimize
Increase
return on
marketing
investments by
15%
customer
satisfaction by
30%
on SAP HANA

Today
Sales and service management
Business value for sales
 Difficult to identify profitable
customers from customer pool
 Inability to identify gaps in sales
pipeline leading to missed targets
 Difficult to extract actionable
information from the enterprise-wide
customer data to maximize the
chance of a sale
 Minimal insight into buying
preferences of customers in social
data context
 Easier identification of profitable
customers with account intelligence
analytics
 Faster transaction search capabilities
 Complete transparency into sales
pipeline (for example, in commercial
banking) based on real-time
information with unlimited drill-down
functionalities
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data including social sales data
Improve
profitability by
0.5%
Increase
Improve
percentage of
sales reps
achieving quota by
17%
offer win rate
on SAP HANA

Today
Strategy, planning, and consolidation
Business value for planning, budgeting, and forecasting
 Planning performance limited to
OLAP, staged cubes for
transactional and master data
 Data load performance is driven by
the amount of data extracted from
SAP Business Suite
 Reporting, loading, and retraction
performance limits planning iterations
 Drilldown within OLAP cube, and
drill-through to SAP Business Suite
and OLTP data within standard times
 Seamless replication of master and
transactional data from SAP
Business Suite
 Availability of more granular data to
support planning
 Big Data challenge negated, allowing
for faster extract and DSO activation
times
 Iterative planning and real-time
simulation supported through
improved performance
 Improved performance for drilldown
(expand) and consolidation (collapse)
 Fast drill-through and live view of
transactional data in SAP Business
Suite
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort by
9%
operating costs
15%
on SAP HANA

Today
Governance, risk, and compliance
Business value for access control role analytics
 Most companies face a high volume
and ongoing increase of unused and
orphaned roles.
 Scheduled batch jobs are required to
analyze a transaction log with
millions of records (such batch jobs
usually take hours to complete).
 The cost of ongoing role
maintenance can be high – one
customer estimated active ERP role
maintenance costs at about
US$4,000 annually.
 Unused roles and orphaned roles
constitute unneeded access risk to
the organization (and possible
compliance issues).
 Conflicts associated with segregation
of duties arise from continuous
monitoring of access risks.
 Accelerated analysis of role usage to
isolate unused and orphan roles
 Deeper insight into roles for
uncovering any potential risk for the
organization
 Role usage and assignment
information provide valuable insight
to business executives during
business reengineering and
reorganization
 Trigger the assigned workflow
directly from the analysis to remove
unused roles assigned to users
 Expose orphaned roles across the
system landscape quickly to begin
the decommission process
Identify
unused and
orphaned roles
Consolidate
Reduce
most-frequently
used (active) roles
noncompliance and
overall access risk
on SAP HANA

Today
Accounting and controlling
Business value for entity close
 Long-running processes
 Time-intensive reconciliations
 Limited time for analysis
 Inefficiencies due to manual
processes and low automation
 Missing financial excellence
results in higher cost of equity
at the capital markets
 Difficulties in supporting parallel
financial reporting standards on a
global basis and in simulation of
scenarios
 More time for analysis; less overtime;
earlier publishing of financial results
through faster period-end processes
and better reconciliations
 Increased efficiency through smarter
reconciliations and reporting,
reducing operating costs and
improving stakeholder satisfaction
 Real-time analytics down to the
lowest level of detail – delivering
quality, transparency, and process
efficiencies
Reduce
time to close the
entities’ books by
13%
Reduce
Enhance
cost of finance by
15%
compliance and
accuracy by
18%
on SAP HANA

Today
Business value for financial and managerial reporting
 Risk of noncompliance due to
unfulfilled (overruns in) audits
 A lot of data; decision-relevant
information not readily available
 Data analysis not supported or
automated
 Long-running batch jobs/reports
 Time-intensive data analysis
 Large number of time-consuming and
non-value-added processes required
to access and provide accurate, up-
to-date information
 Timely execution of compliance-
relevant validation tasks
 Increased end-user satisfaction
(accurate, detailed, visualized, timely,
and actionable information)
 Acceleration of key critical-path
processes and reports
 Instant response time on most data-
analysis queries
 Elimination of workarounds and data
latencies
 End-user data analysis through self-
service means
Improve
service level
performance by
18%
Reduce
Reduce
month-end closing
time by
12%
operating costs by
17%
on SAP HANA

Today
Business value for profitability and cost analysis
 Data latencies and process delays
impact the ability to react to issues/
opportunities.
 Lack of data depth and user self-
service affect internal decision
making.
 Long-running processes
 Time-intensive data queries
 Mostly manual data analysis
 Substantial amount of time and effort
on processes that do not directly add
value
 Suboptimal resource efficiency and
effectiveness
 Timely execution of critical business
processes supports decision making
and increases the ability to swiftly act
(insight-to-action) in dynamic market
environments.
 Critical transactions and calculations
run quickly
 Instant response times on queries
 Prebuilt analytics automates the data
analysis process
 Leaner processes from data capture
through data analysis
 Increased productivity through
process-optimized analytics and
mobile support
Improve
service level
performance by
17%
Reduce
Minimize
cycle times and
manual effort
4x
operating costs
on SAP HANA

Today
Business value for shared service framework for finance
 Vendor, customer, and employee
queries generate a high load on the
shared services organization (SSO).
This demands an extremely efficient
working environment for agents in the
SSO.
 Agents in an SSO spend a lot of time
searching for vendor, customer, and
employee data.
 Shared services organizations are
under constant pressure to improve
the quality of service and to lower the
costs of providing those services.
 SAP HANA-based acceleration of
inbox performance speeds navigation
within the inbox. It allows the agents
in the SSO to review and prioritize
their work more efficiently.
 Faster identification of vendors,
customers, and employees allows the
agent to provide more responsive
service, which leads to improved
satisfaction of the agents and the
clients of the SSO.
 Reduced costs and faster response
times allow the SSO to meet its
service level agreements, meet its
budget objectives, and improve its
KPIs.
Increase
productivity for
shared services
agents by
15%
Improve
Reduce
employee
satisfaction
overall costs of
delivering services
on SAP HANA

Today
Core human resources and payroll
Business value for payroll processing
 Responses to management ad hoc
inquiries about trends of high volume
payroll information cause significant
costs to HR IT.
 Business users have a very limited
ability to analyze payroll results.
 Addressing employee inquiries about
payroll is time consuming and
expensive while HR is under
pressure to increase the quality of
service provided to employees and to
lower the costs of providing those
services.
 Free up HR IT resources to focus on
the execution of organizational
strategic tasks
 Leverage thresholds as a steering
mechanism to optimize business
performance
 Simplify payroll data analysis with
optimized representation of data
 Slash time needed to access and
analyze critical payroll information
with SAP HANA-based high-speed
read access
 Increase employee productivity and
satisfaction with faster response
times to employees
Increase
productivity of users
responsible for
payroll management
10%
Improve
Reduce
employee
satisfaction
overall costs of
payroll processing
on SAP HANA

Today
Core human resources and payroll
Business value for effective shared services delivery
 Employees direct queries to the
shared services organization (SSO)
and expect to get prompt, accurate
answers.
 SSO agents spend time searching for
employee data using employee
identification.
 SSO agents are under constant
pressure both to improve the quality
of service provided to employees and
to lower the costs of providing those
services.
 SAP HANA-based acceleration of
inbox performance speeds navigation
within the inbox, allowing the SSO
agents to review and prioritize their
work more efficiently.
 Faster employee identification allows
the agent to provide more responsive
service, which leads to improved
employee satisfaction.
 Reduced costs and faster response
times allow the SSO to meet its
service level agreements and budget
objectives and to improve KPIs.
Increase
productivity for
shared services
agents by
14%
Improve
Reduce
employee
satisfaction
overall costs of
delivering services
on SAP HANA

Today
Time and attendance management
Business value for time and absence calculation
 Responses to ad hoc inquiries from
management about trends of high-
volume time information causes
significant costs to HR IT.
 Business users have a very limited
ability to analyze time evaluation
data.
 Addressing employee inquiries about
time is time-consuming and
expensive while HR is under
pressure to increase the quality of
service provided to employees and to
lower the costs of providing those
services.
 Free up HR IT resources to focus on
the execution of organizational
strategic tasks
 Leverage thresholds as a steering
mechanism to optimize business
performance
 Simplify time evaluation data analysis
with optimized representation of data
 Slash time needed to access and
analyze critical time information with
SAP HANA-based high-speed read
access
 Increase employee productivity and
satisfaction with faster response
times to employees
Increase
productivity of
users responsible
for time
management
Improve
Reduce
employee
satisfaction
overall costs of
time management
on SAP HANA

Today
Workforce planning and analytics
Business value for transactional analytics
 Translation of organizational strategy
into HR metrics requires significant
effort or special expertise.
 Decisions are often based on
hunches.
 Difficult to zero in on underlying
transactions from high-level key
performance indicators
 Time-consuming data loads in
traditional reporting tools
 Integrated and personalized cockpits
that provide insight into metrics that
matter most
 Leveraging of thresholds as a
steering mechanism to optimize
business performance
 Powerful predefined workforce and
time management-related KPIs for
managers, with the ability to navigate
into details
 Embedded analytics inside business
transactions
 Prebuilt virtual data models for real-
time transactional analytics
 Simplified architecture
Increase
revenue per employee
by using analytics to
identify strategic
advantages
20%
Optimize
Reduce
your business with
reliable real-time
HR data
time and costs of
operational reporting
on SAP HANA

Today
Procurement and order collaboration
Business value for operational procurement
 Missing real-time insight into
operational procurement reporting
 Inability to dynamically create
operational procurement-related
reporting in a modern user interface
 Slow and costly paper-based
processes
 High transaction costs
 Long-running transactions while
posting documents with high volume
of line items
 Frequent errors yield to maverick
spend
 New configuration options for
procurement analysis
 Modern and easy-to-consume user
interface
 Complete visibility into end-to-end
procurement activities
 Real-time insight and easy-to-
manipulate information
 Accelerated long-lasting processing
of purchasing documents
Increase
transparency
Lower
Increase
procurement
operations cost by
17%
process
effectiveness by
12%
on SAP HANA

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As a starting point, we recommend a performance
and usage analysis of your current software
system.

Delivering Real-Time Business Value for Insurance

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