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VALUE CENTRICITY
Vishwa Kolla Head, Advanced Analytics
John Hancock Insurance
Show me
the money
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TOPICS
Definition Scenarios Win - Win
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VALUE IS … the regard that something is held to deserve;
the importance, worth, or usefulness of something.
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2001 – 2013 CAGR Revenue (Firm | Industry)
Source: 2001 – 2013 Revenue figures from Capital IQ
3%
3%
3%
1%
5%
7%
7%
8%
10%
12%
Why? Integrating AI effectively helps create value
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Save Money
Make Money
How? Broadly … Value Creation translates to …
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Self Actualization
Esteem
Love / Belonging
Safety
Physiological
How? In more depth … Abraham Maslow’s Hierarchy of Needs
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How? An operating model; Check the quality box before starting a conversation
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How can one provider higher value? More Elements
More Elements
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Higher in
Pyramid
How can one provider higher value? Higher in the Pyramid
More Elements
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TOPICS
Definition Scenarios Win - Win
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Scenarios
External Internal
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Scenarios
External Internal
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Today’s perceptions about Life Insurance
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“Life insurance ranks at the top of the list of things
consumers know they probably should buy, but get
no personal enjoyment from whatsoever. There's just
no happy way to look at life insurance. In the best-
case scenario, life insurance is just another bill to pay.
And in the worst case, your family collects the
benefits, but unfortunately you're dead.”
Source: USA Today, Knowing when you need life insurance, September 19, 2013
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Capitalism is under siege. Diminished trust in business is
causing political leaders to set policies that sap
economic growth … Business is caught in a vicious
circle … The purpose of the corporation must be
redefined around …
CREATING SHARED VALUE
Michael E. Porter and Mark Kramer, Jan-Feb 2011
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1 264 Vs.
With more touchpoints, we can serve our customers better
Who
Who
Else?
What?
What
Else?
Why?
Nudge
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How
Else?
Value
Elements
Annual
Touchpoints
AI/Analytics
Use Cases
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Scenarios
External Internal
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Generally, for AI / Analytics shops, internal value addition is mostly in functional layer
IoT
Fraud
Wellness Reward
Redemptio
n
Severity
Morbidity
Risk
OCR
Engines
Triage
Models
Smoker
Likelihood
Mortality
Risk
Rules
Engine
LTQ
Stratified
APS
Summary
Scoring
Engine
Advisor
Segmentat
ion
Goals
Based
Investing
Market
Segmentat
ion
Customer
Segmentat
in
Profiling
Tools
Survey
Analytics
3rd Party
Data
Web-
Scraping
Persona
Automatio
n
Text
Analytics
LT [*]
Match
Merge
Mix
Optimizati
on
Advisor
Segmentat
ion
Channel
Strategy
Cross-
Sell
Prospecting
Acquisition
Nurture
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TOPICS
Definition Scenarios Win - Win
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AI gets a lot of attention and credit
1997
2011
2016
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What will yield the best outcome?
Smart
Human
Smart
Human
Normal
Human
Normal
Human
Smart
Machine
OK
Machine
Smart
Machine
OK
Machine
Weak
Process
Weak
Process
Weak
Process
Strong
Process
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Turns out, a strong process is far more critical
Smart
Human
Smart
Human
Normal
Human
Normal
Human
Smart
Machine
OK
Machine
Smart
Machine OK
Machine
Weak
Process
Weak
Process
Weak
Process Strong
Process
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The outcome, though non-intuitive, is remarkable
Normal
Human
OK
Machine
Strong
Process Steven Crampton and Zackary Stephen New Hampshire
Beat Grand Masters + Machine
2005
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Emphasizing Process over Purpose can help leverage AI produce more value
“Weak human + machine + better process was superior to a strong
computer alone and, more remarkably, superior to a strong human +
machine + inferior process.” – Gary Kasprov
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D E V E L O P
a culture in which an effective
process of thinking and learning and
testing and learning is emphasized
over immediate purpose
C O L L A B O R A T E
and think creating shared value – be
it internal or external customers
U N D E R S T A N D
who are you serving, how you
can serve and in what ways.
Shape your value. Shape your
value delivery according to your
customer
Summary
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