Discover the Potential: Grow, Lead and Succeed - SAPfm.sap.com/pdf/9625/SAP - Discover the Potential_Jonathan Bobalik.… · Built on SAP NetWeaver 7.0 ... Year-End Shipments 2007

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

Jonathan Bobalik, Director IBU Insurance (Americas)

November 13, 2007

Discover the Potential: Discover the Potential: Grow, Lead and SucceedGrow, Lead and Succeed


Agenda

SAP for Insurance: Enabling Success

SAP for Insurance: Customer Examples

Summary



Network Collaboration Is Key

Focus & Collaborate

Networked Specialists

Market forces (inorganic) growth:Scale

Realization of (acquired) synergies: Orchestrate

Few

Many

Market forces specialization:Focus

Specialization requires networking:Collaborate

Customer ExpectationsCost Pressure

Scale & Orchestrate

Global Players


Next to Straight-Through-Processing (STP) – an additional level is needed: Business Network

Product Factory Intermediary Customer

Every player acts according to his individual strength, provided as servicesCollaborative network infrastructure requiredStandards based, modular architecture is prerequisite


Evolution of SAP for Insurance

Composites

Serviceenablement

Businesscapabilities

Guiding principlesExtend service enablementBuild composites on top of business process platform for insuranceExtend functionality with new business capabilitiesUse the platform for new cross-component process integration Offer new deployment scenariosGrow with market needsSecure customer investmentsEvolutionary developmentModel based

Business process platformfor insurance

Today


Ecosystem in Action: Turning Breakthrough Ideas into Solutions

Communities Trusted partner engagement

Business architecture

Insurance Architecture

Forum

Open Ecosystem

SAP EndorsedBusiness Solutions

OEM/Reselling

Open Ecosystem

SAP EndorsedBusiness Solutions

OEM/Reselling

READY

SAP for Insurance


SAP Delivers on the New RequirementsMajor Building Blocks of a Business Process Platform

Enterprise SOA is the architectural blueprintof a Business Process Platform

The business process platform provides:

Technology platformto integrate, compose, and deploy enterprise services for flexible business processes

An extensible repository of enterprise servicesdefinitions

Application logicthat implements those services in a robust and reusable fashion


Insurance Business Processes based on SAP Business Process Platform for Insurance

Value Chain

RiskEvaluation

CustomerSegmentation Value Based

Management

FraudDetection

Policy Management

Underwriting

Sales

Claims Handling

Financials

$

SAP Insurance –Support of End-to-End Business Processes


Simplify and position key application scenarios (A2A, B2B)

Deliver innovation - without disruption - faster to customers

Extend functional coverage, in particular in core insurance

Business Suite Scenarios

Enterprise SOA by Evolution

SAP for InsuranceSAP for

Insurance

Core Insurance

1

2

3

Strategy: Evolutionary Development of the SAP for Insurance Business Suite


Multiple Architectural Perspectives

Implementation/Development

View

Business ModelView

ProcessView


Business processes

Business domains

Scenario group

Businessscenario

Businessprocess

Business task

Primary Building Block: Process Components

DEVELOPMENT OFHIGHLY REUSABLE

PROCESS COMPONENTSWITH FUNCTIONALITY . . .

. . . EXPOSED AS ENTERPRISE SERVICES

Process component

Businessobject

Businessobject

Businessobject


ESOA is the Common Language

Enterprise Services establish a common and stable service contract between business and IT, while allowing "strategic decoupling"

IT strategy (optimize)

Business strategy

CreateIllustration

ProcessNew Business Underwrite Bind &

Issue

Create_ApplicationCheck_Customer

Check_Risk

BusinessIntent

ITImplementation

Create_PolicyCreate_Reserve


SAP‘s ERP EhP* Strategy - Overview

SAP NetWeaver

SAP ERP 6.0

Enhancement Packages

Quick Facts About SAP ERP 6.0Launched in June 2006Built on SAP NetWeaver 7.0 More than 3,800 productive systems (07/2007)Platform upon SAP will deliver future software innovationsSoftware innovation delivered via “SAP enhancement packages”SAP enhancement package 2 for SAP ERP 6.0 will go into ramp-up starting July 27th 2007

What Are Enhancement Packages?Optionally installed and activated software innovations for SAP ERP 6.0Software innovations include; UI simplifications, functional enhancements, industry specific capabilities and enterprise servicesCumulative in nature; current enhancement packages contain the entire content of earlier packagesEnhancement packages are not support packages

* EhP = Enhancement Package


Bundles of Enterprise Services Year-End Shipments 2007 – PREVIEW* EhP3

Transportation & Warehousing

Integration with external Warehouse Mgmt SystemIntegration with Transportation Management SystemTransportation collaboration and subcontracting

Order to CashOrder to Cash v2 (incl. B2B)Quote to Order for Config. PdtsAvailability Issue Resol. & Back Order Processing

Public SectorPublic Sector Budget ManagementReserve and Commit Budget

* Disclaimer: SAP reserves the right to change the ES bundles listed without prior notice. Not all Scenarios and Industries are listed here.

Year-End Shipments 2007Year-End Shipments 2007

PLANNED RELEASEin Dec 2007

Service for CustomerCustomer Service Execution v2

Procure to PayDocument BuilderProcure to Pay (incl. B2B)Supplier Collaboration in the Supply ChainSupply Chain Operations & Execution in Oil&GasOutsourced Manufacturing

Corporate ServicesAsset Configuration v2Maintenance Processing v2Maintenance Service Collaboration v2Project SystemEnvironment Health and Safety (EH&S) ServicesBatch Traceability & Analytics v2

Hire to RetireHCM Master DataHCM Time ManagementHCM Org ManagementHCM Enterprise Learning

Banking & InsuranceAccounting IntegrationFS Business Partner Maintenance v2Loans Management Bus. Operations v2Credit Risk - ModelingFin. Acctg - Results Integ.Fin. Acctg - Financial Instru. PricingCredit Risk Mgt - Fin. Instru. PricingInsurance Policy Issuing UnderwritingInsurance Billing & PaymentInsurance ext. claims investigationInsurance ext. reportingInsurance document vendorInsurance CredentialingMgmt Acctg - Results Integration

Trading IndustriesMerchandise & Assortment Planning Int. Trade & Commodity Management v2Store Fresh Item Mgt Integ.Planning to Shelf Opt Integ.

HealthcareCollaborative Health NetworkResource & Supply Chain Planning for Healthcare Providers

And more ….Advertising Management (Media)Subscription Management (Media)Compliance Relevant Data Exchange –eLogbook (Defense)Information Integr. Systems (GIS) (Defense)


Retrieve & Validate credential with 3rd party provider (e.g. government)Based on US Standards to Interact with regulative government bodies

ES Bundle (EhP3):Insurance Credentialing

Insurance specific Enterprise Services Bundles

Services for processing incoming claim notificationsBased on Acord Standard

ES Bundle (EhP1):Insurance Claims Handling

Integration with externalClaim Investigation via Enterprise ServicesBased on Acord Standard

ES Bundle (EhP3: Insurance External Claims Investigation

Services to send claims information to government entities and insurance industry organizations

ES Bundle (EhP3):Insurance External Reporting

Services for seamless integration of 3rd party document handling services

ES Bundle (EhP3):Insurance Document Vendor

Services to inform surrounding solutions about billing & payment exception

ES Bundle (EhP3):Insurance Billing & Payment

Services for processing incoming policy applications and policies request

ES Bundle (FS-PM 4.0):Policy Issuing and Underwriting


SAP‘s ERP EhP* Strategy – Key Findings

SAP is changing the game with enhancement packages:

Innovation without disruption

Sustainability All Enhancement Packages follow SAP ERP 6.0 maintenance cycle

Pick and Choose Switch framework provides flexibility to choose what functionality to use

Stability AND Innovation Predictable projects and isolated testing and adjustment effort

Deploy as you go All SAP enhancement packages are optional

*EhP = Enhancement Package


Further information on SAP Service Marketplace

• Strategy and roadmap of SAP ERP • Lifecycle of Enhancement

Packages• Value of SAP ERP • Upgrade to SAP ERP

•Key information:

http://service.sap.com/erp-ehp


Agenda



Summary



Key Business Initiatives Company IT-Enabled Results

SAP survey with 175 customers

Business Initiatives That Drive Operational Excellence and AgilityBest Practice Examples of IT Providing Value to the Business

Post-merger integration in 2-8 months

Streamlined financial processes and compliance

Reduced days outstanding23%Cost containment

8%Compliance

2%Mergers and acquisitions

Improve distribution partnerrelationships and services

Improved customer servicewith minimized administration

New product including new processes in 6 month

14%Business process innovation

10%New markets and channels

23%Managing relationships

New products or services10%

Reduced costs and found alternate revenue source

Ope

ratio

nal E

xcel

lenc

eB

usin

ess

Agi

lity

1)

2)

1) Oil and Gas Industry2) Media Industry


Customer Case:Optimized Cost Containment

Business StrategyGrowth and innovation by exploiting distribution channelsEstablish international process standardizationImprovement operational excellence

Before - Decentralized business handling with numerous

point-to-point connections

After - Integrated / service-enabled adaptive distribution process

IT StrategyHarmonized business application landscape for shared services(e.g. billing & payments)Internationalized model for customer and channel managementUnified SOA-based integration model

Underwriting

Brokers

Customers

PolicyAdmin

Bank

$

PaymentsCollectionProcessing

Billing

Agents

Brokers

Agents

Billing &Payments

ProcessingCustomers


Enterprise SOA Value Delivered

BenefitsPerform integrated insurance processes with:

Reduced processing timeIncreased process automationIncreased profit

Integrate external partners into the business processes

Why SOA?Support next business practices and process innovationExtend processes across systems and organizational boundariesCreate composite applications to support new processesAllow deployment to follow organization, even when it is changingReplace multiple individual 1:1 interfaces by reusable unified web servicesReduce integration costs - Easy to integrate and extend

“SAP Netweaver XI, by using Web Services, permits us to integrate heterogeneous systems in a services based way; thanks to it, we can leverage all of the advantages of an SOA-based architecture”

-Franco Callautti, Accounting Area Administrative Director, Generali

Servizi Informatici S.r.l.


Customer Case:Higher Business Process Innovation

Business StrategyImprove customer serviceOptimize combined ratio with optimized claim handlingRelocate processes to the point-of-sale (POS)

Before – Multiple actors, media, …without integration

After - Collaborative one-stop business at the POS

IT StrategyPortal-based solution to run customer-related process at the POSIntegrate network partners into the processesSynergies across multiple sales channels

Insurer

Agent

External Fraud Service

Insurer

Agent

External Fraud Service


Enterprise SOA Value Delivered

Benefits

Elimination of identified disruptive factors / media breaks in process executionImproved efficiency in service processes through optimized online processesReduced admin costs through out-tasked claims handling to the POSEasy to do business with the company – better relationship with agencies

Why SOA?

Integrate external service partners with unified servicesElimination of system and media breaksEasy retrieval of data from disparate systems; seamless to the userEnterprise SOA allows efficient integration of solutions

SAP and non-SAPInternal and external


Benefits of Enterprise SOAAccelerate Change, Consolidate Costs, and increase Productivity

Easy and flexible deployment

Supports new business practices and process innovation

Easy to integrate and extend


Customer Examples in this Forum

To learn more about SAP for Insurance installations, please attend the following sessions:

Tuesday, November 13• Allstate J. Raphael 9:20am• Cincinnati Financial J. Crow 10:30am• Allianz Dr. J. Ott 10:30am• Zurich C. Zebold 11:20am• AIG J. Rowland 2:20pm• Allstate J. Raphael 2:20pm• MassMutual S. Jaberi & R. Laughlin 4:50pm• MassMutual K. Kim 4:50pm

Wednesday, November 14• MassMutual E. Wilczynski 9:50am


Agenda



Summary



Wrap-Up: Start your Business Network Transformation - today

Get ready for yourBusiness Network Transformation

Think big, start small and don't under-estimate the skills challenge Partner with SAP and Communities (e.g. SDN, BPX) in an open and frequent opinion exchange


Insurance Business Processes based on SAP Business Process Platform for Insurance

Value Chain

RiskEvaluation

CustomerSegmentation Value Based

Management

FraudDetection

Policy Management

Underwriting

Sales

Claims Handling

Financials

$

SAP for Insurance –Supporting Business Network Transformation

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

Thank youThank youvery much !very much !


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Documents

Discover the Potential: Grow, Lead and Succeed - SAPfm.sap.com/pdf/9625/SAP - Discover the Potential_Jonathan Bobalik.… · Built on SAP NetWeaver 7.0 ... Year-End Shipments 2007