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
• “…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 $400-1100/kw
Pros Emissions free, long life
Emissions free Low emissions, heat reuse
Low emissions, heat reuse
Cons Negative ROI, unfeasible in CT
Space requirements, unfeasible in CT
Negative ROI, immature technology
Carbon emissions
WindSolarMicro-turbine
Fuel Cell
XX X.
What are Microturbines?
Power and heat generation devices
Run on natural gasor other clean fuels
Very “green”
Many cost advantages
Modular & scalable
Microturbine Finance Calculator
Scenario 1 – Today’s environment
Scenario 2 – High energy prices
Scenario 3 – Utility price spike
Microturbine Finance Model
Lower Carbon
Footprint
High ROI
Tax Benefits
Heat Reuse
Scalable
Save the Environment and Save Your Wallet
What Are the Issues?
• “X6’s growth showing signs of slowing…”
• “X6 has started exploring new ways to maintain healthy profit growth…”
How PAYD Works
Signal from Satellite to Vehicle GPS
1
2
Signal from GPS to Privacy CenterData sent from Privacy Center to X6
3
Why PAYD?
• Improved actuarial accuracy• Potential to reduce premiums Market share• Consumer interest survey
1. Lower insurance premiums 41.3%2. Save gas money 39.9%
PAYD Simulation
Via spreadsheet
0.00
0.02
0.04
0.06
0.08
0.10
Annual Vehicle Kilometres (1,000s)
Cra
sh
-Rela
ted
Cla
ims P
er
Year
Total
Non-Culpable
Culpable
Casualty
TRADITIONAL PAYD PAYD Upper 50 - 5% less DrivingCustomers 100 Customers 100 100Avg Miles 14,308 Avg Miles 14308 13,863 Total Sample Miles 1,430,800 Total Sample Miles 1,430,848 1,386,344 Avgerage Premium 1,080.00$ 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
• “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
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