IT Case UConn Team

Mission and Objectives

• Remains practical and economical

• Solves business problems

• Creates entry barrier to competitors

• Meets short term and long-term needs

Scalable

InnovativeFeasible

Powerful

Green Energy Options

• “…The company still lacks a regeneration strategy”

• “[X6] does not produce power, making its energy usage non-sustainable”

Green Energy Options

Microturbines

Fuel cells

Solar and wind

Vampire power elimination

Employee incentives

Green Energy OptionsMicroturbine

ElectricialCost

$.25/kwh $.06/kwh $.06/kwh $.05-.12/kwh

CapitalCost

$5000/kw $1000/kw $2500-5000/kw $400-1100/kw

Pros Emissions free, long life

Emissions free Low emissions, heat reuse

Low emissions, heat reuse

Cons Negative ROI, unfeasible in CT

Space requirements, unfeasible in CT

Negative ROI, immature technology

Carbon emissions

WindSolarMicro-turbine

Fuel Cell

XX X.

What are Microturbines?

Power and heat generation devices

Run on natural gasor other clean fuels

Very “green”

Many cost advantages

Modular & scalable

Microturbine Finance Calculator

Scenario 1 – Today’s environment

Scenario 2 – High energy prices

Scenario 3 – Utility price spike

Microturbine Finance Model

Lower Carbon

Footprint

High ROI

Tax Benefits

Heat Reuse

Scalable

Save the Environment and Save Your Wallet

Pay As You Drive Auto Insurance

What Are the Issues?

• “X6’s growth showing signs of slowing…”

• “X6 has started exploring new ways to maintain healthy profit growth…”

How PAYD Works

Signal from Satellite to Vehicle GPS

1

2

Signal from GPS to Privacy CenterData sent from Privacy Center to X6

3

Why PAYD?

• Improved actuarial accuracy• Potential to reduce premiums Market share• Consumer interest survey

1. Lower insurance premiums 41.3%2. Save gas money 39.9%

PAYD Simulation

Via spreadsheet

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0.02

0.04

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0.08

0.10

Annual Vehicle Kilometres (1,000s)

Cra

sh

-Rela

ted

Cla

ims P

er

Year

Total

Non-Culpable

Culpable

Casualty

TRADITIONAL PAYD PAYD Upper 50 - 5% less DrivingCustomers 100 Customers 100 100Avg Miles 14,308 Avg Miles 14308 13,863 Total Sample Miles 1,430,800 Total Sample Miles 1,430,848 1,386,344 Avgerage Premium 1,080.00$ CT 2006 Per Mile Charge 0.05 0.05

Avg Var Rate 715.40$ 693.15$ Total Revenue 108,000.00$ Fixed Rate 350.00$ 350.00$

Average Premium 1,065.40$ 1,043.15$

Total Revenue 106,542.00$ 104,317.00$

Claims: Claims per 100 Unit Cost Expected Cost Claims: Claims per 100 Exp Claims Unit Cost Expected CostBodily 1 12,296$ 12,296$ Bodily 1 0.97 12,296$ 11,914$ Property 3.54 2,869$ 10,156$ Property 3.54 3.43 2,869$ 9,841$ Collision 5.14 3,131$ 16,093$ Collision 5.14 4.98 3,131$ 15,593$ Comp 2.46 1,519$ 3,737$ Comp 2.46 2.38 1,519$ 3,621$

Total Claims 42,282$ Total Claims linear 40,969$ nonlinear 35,643$

EBIT 65,718$ EBIT 63,348$

Reducing Claims One Mile at a Time

Driving

Profitability and Market Share

Traffic and Accidents

Uninsured Motorists

Pollution

System Modernization

System Modernization

• “17% of the workforce with legacy skills fast approaching retirement…”

• “New hires only have skills to work with modern technology…”

• “X6 has a large amount of data dating back to the 1970’s…”

• “X6 has a large volume of complex data preventing executives from analyzing data…”

What Are the Issues?

Data Centric Service OrientedWeb 2.0 Enabled

PlatformIndependent

LocationIndependent

ResourceIndependent

ExpertiseIndependent

Why System Modernization?

Customers Premiums Claims

Data Warehouse/Data Mart

Service Oriented Architecture

Deploy service based enterprise mashups for structural information

and other Web 2.0 tools for unstructured information

Develop applications towardService Oriented Architecture

Model and transform various data sources to a centralized data warehouse and data mart

Roadmap for System Modernization

Mashup Example

Light weight

•Web based

Reusable

•Building blocks

Dynamic

•Real time

Minimize Workforce

Permanent and Portable Solution

Situational AwarenessBusiness

Oriented

Innovative

Let Business Drive IT the Way It Should

Conclusion

System Modernization PAYD

Green Technology

Business

Technology

Cost Saving Profit Maximization

Questions?