Practical Steps for Insurers to Get Started with Digital Execution

Webinar

Rob Llewellyn Founder,

CXO Transform

@robertllewellyn

Nick FordSr. Director, Product

Marketing,

Mendix

@nicolasmford

Presentation Review Discussion PointsInsight From:

#DigitalTransformation

Digitization is a top priority for insurance CIOs.

Yet, only 12% consider their organizations to be digitally progressive.

10-Point Digital Transformation Overview1. Context and Pilot App

Lessons Learned

2. Consider Strategic Objectives

3. Digital Use Cases

4. Orchestrating Transformation

5. Digital Transformation Governance

6. Establish a Balanced Portfolio

7. Assess and Acquire

Capabilities

8. Launch, Manage and Govern

9. Realise Business Value

10.Key Take Aways

StartStart Small and

Celebrate Success

Structure

Scale

Formalize Processes, Portfolio, Team &

Strategy

The Digital Enterprise

EXECUTION focus changes per stageof digital execution

FOCUS:

Gain the confidence

to start your Digital

Execution

FOCUS:

Learn the discipline to

find, prioritize and create

solutions that deliver value

and support your strategic

goals

FOCUS:

Drive and scale

innovation to achieve

and sustain leadership

1. The objective of the pilot was to …

2. What were the challenges?

3. What lessons can be learned?

4. What value was delivered?

5. Is there scope to further increase value of the pilot?

6. If so, will “pilot v2 project” enter the portfolio?

Pilot App Lessons Learned

How Is The Firm Responding Strategically?

GoalDefense Offense

Not Losing Winning

Consider Strategic ObjectivesApp Business Change Benefit Strategic Objective

App 2

App 3

App 4

OPERATIONAL

EXCELLENCE

App 1

Electronic instead

of paper based

From “only at workplace”

to “from everywhere”

From heterogenouse to

clear defined processes

From multiple standards to

single system maintenance

From local to global

security standards

Less crisis through

more stable system

Ease of operation through

modern workplace

High professional standards

across the world through best

practices

Standardised processes

facilitate collaboration

with customers

Flexible data access from

Where ever you are

Efficient online processes for

managers and employees

Improved collaboration

through workflows

Improved security

How Transformational Will You Be?

Business ModelHow you make money

[the greatest opportunity to disrupt and protect against disruption]

OperationsThe efficiency and

effectiveness of your business

operations

WorkforceThe efficiency and

effectiveness of your people

CustomersYour brand and channels used

to engage with customers

Digital Use Cases

Solution Description

Current

Situation

Value

Proposition

Business

Benefits

Orchestrating Transformation

Who has the Capability, Experience, andBandwidth to …

Conduct Digital Transformation?

Digital Transformation Governance

Transformation Direction

Makes decisions about the

inclusion and removal of any

initiatives that wish to become

part of the digital

transformation portfolio.

Transformation Execution

Responsible for monitoring

progress and resolving issues

that may compromise delivery

and benefit realisation needed to

achieve strategic intent.

GOVERNANCE

Digital Transformation Governance Example

Projects

Transformation Programme Office

Transformation

Delivery

Committee

PlansRisks and IssuesReportingDecisionsActions

RoadmapRiskBenefitsCostScopeDecisions

Executive

Committee

Transformation

Direction

Committee

Transformation Direction Committee

1. Understand

- Assessexisting portfolio

- Assess proposed new initiatives

2. Categorise

- Organise into groups

- Base groups on strategic objectives

3. Prioritise

- Establish prioritisation criterion

- Rank initiatives by agreed measures

4. Balance

- Find the ideal mix of initiatives

- Consider budget, risk and benefit return

5. Plan

- Collate information from Portfolio Direction

- Plan digital transformation execution

Dig

ital T

ran

sfo

rmatio

n

Po

rtfolio

4

R&I

Ref name Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Grand TotalWR&I09 - NSO Team Leader New Ways of Working 1,000,000 1,000,000

WWR&I12 - SLA/Travel balance 800,000 800,000

WR&I01 - Burst Team Leader Performance Management 656,000 656,000

WWR&I14 - Role of an Analyst 512,000 512,000

WWR&I13 - Public Laterals 480,000 480,000

WR&I02 - Non Complex Valve Shuts (Bursts) 378,000 378,000

WR&I02 - Non Complex Valve Shuts (NSO) 378,000 378,000

WR&I10 - 7-7 Working + other o/t (Bursts) 339,000 339,000

WWR&I05 - Recurring Chokes 317,000 317,000

WWR&I10 - 7-7 Working + other o/t 257,000 257,000

WWR&I11 - Contractor job selection 250,000 250,000

WR&I05 - Reinstatements 142,317 94,181 236,498

WWR&I04 - End of Day 228,000 228,000

WR&I06 - Dry Digs (Bursts) 151,460 151,460

WR&I06 - Dry Digs (NSO) 151,460 151,460

WR&I06 - Dry Di gs (Bursts) 91,000 91,000

WWR&I02 - Reduced pass backs 14,000 14,000

WR&I03 - Burst Squad and NSO Operational Dashboards - -

WR&I08 - DOMS Compliance

WR&I10 - 7-7 Working + other o/t (NSO)

WWR&I01 - Functional Roles

WWR&I06 - Work orders

WWR&I07 - Contractor job selection

WWR&I08 - Fleet Management

Grand Total 2,184,317 1,000,000 596,000 559,000 1,900,101 6,239,418

5

WWOps

Ref name Stage 1 Stage 2 Grand TotalWWOps06 - DO setpoints and Aeration Process Efficiency 1,792,000 1,792,000

WWOps01 - Improve screening process quality - contractor savings 1,053,756 1,053,756

WWOps02 - Optimise manpower 1,016,760 1,016,760

WWOps04 - Sewer vactoring - Contractor savings 796,768 796,768

WWOps07 - Optimise sludge movements 456,000 456,000

WWOps04 - Sewer vactoring - FTE savings 384,067 384,067

WWOps14 - WW Ops Commitment Meetings 340,000 340,000

WWOps13 - Excess energy billing 264,000 264,000

WWOps08 - Optimise Sludge Treatment Centres 250,000 250,000

WWOps05 - Optimise pumping stations - WW Ops 159,840 159,840

WWOps01 - Improve screening process quality - FTE savings 156,288 156,288

WWOps11 - Policing of local contracts 50,000 50,000

WWOps15 - Waste Water Fleet mix 33,400 33,400

WWOps05 - Optimise pumping stations - multifunctional Ops 29,600 29,600

WWOps03 - Meeting Customer Demand (7-7 Working) 13,500 13,500

WWOps09 - Improve operator asset care and instrument training - -

WWOps10 - Improve knowledge retention - -

WWOps12 - WW Ops Operational Dashboard - -

WWOps12 - Improve E&M at WW Ops

WWOps16 - Lubrication

WWOps17 - Sludge Disposal / Final Product

Grand Total 76,500 6,719,479 6,795,979

6

WOps

Ref name Stage 1 Stage 2 Stage 3 Grand Total

WOps05 - Man Power - Treatment Workers & Asset Operators 1,917,500 1,917,500

WOps02 - Source to Tap Management 1,360,000 1,360,000

WOps16 - Optimised use of Energy and reduced energy costs 573,800 573,800

WOps04 - Manpower - Networks & Leakage 390,000 390,000

WOps11 - Site Process Optimisation 192,000 192,000

WOps01 - Water Fleet mix 168,400 168,400

WOps17 - W Ops Commitment Meetings - E&M spend 145,000 145,000

WOps17 - W Ops Commitment Meetings -W Ops spend 145,000 145,000

WOps10 - Water Treatment Sludge Movement - W Ops benefit 100,000 100,000

WOps10 - Water Treatment Sludge Movement - WW Ops benefit 100,000 100,000

WOps06 - Overtime 50,000 50,000

WOps14 - Remote System Access 48,000 48,000

WOps08 - Ordering Process 43,200 43,200

WOps07 - Power Billing - -

WOps13 - Plant Automation

Grand Total 1,793,200 3,271,300 168,400 5,232,900

Digital

Use CasesFive Stage Portfolio Direction Process

Establish a Balanced PortfolioFocus on Start Phase with Portfolio Planning

Low Complexity, High Exposure

• Customer facing• Multi-channel• Limited integrations

Example: Lead generation app,customer engagement

High Complexity, High Exposure

• Customer facing & multi-channel• Heavy usage• High available, disaster recovery• Goal and requirements to bediscovered

Example: customer self-service portal

Low Complexity, Low Exposure

• Internal users• Limited integrations• Value driver: Efficiency• Well defined goal & requirements

Example: automating manualprocesses

High Complexity, Low Exposure

• Complex integrations• Business critical• Heavy data load• Internal users• Goal and requirements available

Example: automating manualprocesses

Exposure

Complexity

• = your first project reference

• Discuss:• Functionality expected (MVP)

• Integrations

• Parties involved (interdepartmental, integrations)

• Architecture impact (SOA, CBA)

• Governance (cross regional, foreign, cross BU)

HOW TO LOOK AT T-SHIRT SIZING

Remove SiloesTrade siloes and chaos…

Remove Siloes…for a balanced and coordinated portfolio

Transformation Capabilities

Launch, Manage and Govern

2017 2018

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4

Start TransformationExploration

Establish Portfolio Governance and

Committee

Agree, Fund and Resource Portfolio

Govern and Manage Transformation Programme

1. Portfolio Management

2. Value Management

3. Risk Management

3. Programme & Project Management

4. Business Process Management

5. IT Management

6. Organisational Change Management

7. Competence & Training Management

Launch Transformation

Programme

RealiseBenefits

Establish Portfolio

1. Assess current state

2. Analyse & recommend

3. Formalise portfolio

4. Preparation

RealiseBenefits

RealiseBenefits

RealiseBenefits

RealiseBenefits

RealiseBenefits

RealiseBenefits

RealiseBenefits

RealiseBenefits

Realize Business Value

Strategic• Support for the organisation’s strategy

• Long or short term viability of the organisation

• Provide customers with unique value proposition

• Desire to be seen as innovative

• Permit new business models

• Permit new forms of organization

• Build barriers to entry

• Lock in customers

Management• Increased agility

• Better control through improved information

• Growing the skills of the workforce

• Meeting the highest professional standards

• Ease of operation, allowing use by less experienced staff

• Improve quality of working life

• Existing systems have become inadequate

• Less crisis

Operational• More effective use of existing IT systems

• Improved quality at reduced cost

• Improved turn around time

• Enable staff to focus on more high-value work

• Reduced headcount

• Reduction in costs

• Increased income from better quality products

• Timeliness and accessibility of data

Functional / Support• Employee self services

• Improved recruitment and retention processes

• Provision of infrastructure systems

• Improved communication/collaboration opportunities

• Adoption to standards

• Compatibility with customers/suppliers systems

• Enforcement of regulatory or legal requirements

• Implementation of metrics

• Production of standard reports

Key Take Aways

1Support

Strategy

2Orchestrate

Holistically

3Deliver

Value

Three Immediate Actions To Take

1

Identify the

strategic

priorities that

digital should

support

2

Create 3 to 5

digital use

cases to help

achieve each

strategic

objective

3

Agree where on

a 12 month

roadmap each

digital project

should reside

Download the on-demand webinar to learn more about getting started with

Digital Transformation.

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