success story sap bi for insurance

Success Story SAP BI for InsuranceSales Controlling ERGO Austria International AG

SAP BUSINESS INTELLIGENCECONVISTA CONSULTING AG

ConVista Consulting AG 2013 2 ConVista Consulting AG 2013 3

Editorial

ERGO Austria International AG (ERGO Austria) is one of the five largest insurance groups in Austria, with a market share of about 4 percent.In addition to its companies in Austria, ERGO Austria has other subsidiaries in Central and East-ern Europe. The operating insurance companies of the holding in Austria are ERGO Versicherung AG (EVA), the specialized companies Victoria-Volks-banken Pensionskasse/Vorsorgekasse that offer corporate provisions, and ERGO Direct. They have a long-standing sales partnership with the major banks Bank Austria/UniCredit Group and Volksbank. ERGO offers its products also via its own external sales team, agencies, and insurance brokers. The owner of ERGO Austria is the internationally active ERGO Versicherungsgruppe AG, headquartered in Düssel-dorf, Germany. ERGO Austria brings in around 20% of the international premium volume of this insurance group. With a share of approximately 95% of the premium volume, life business is the main focus.1)

1) Source: www.ergo-austria.at (December 31, 2012)

The Customer

„The target-oriented sales controlling in the insurance industry is one of the key success factors in the original

insurance business. On closer inspection it becomes all too obvious that most insurance companies have vast

untapped potentials for development in particular when it comes to data acquisition for sales controlling. Only

few of them are already taking the challenge by developing integrated controlling systems for key figures, which

are suitable for the strategic control of an insurance company and which lead to a higher efficiency in sales. We

are very pleased that together with ERGO we created a solution that contributes significantly to a target-oriented

sales controlling by providing high data transparency and automation.”

(Dominic Testrut, Partner of ConVista Consulting AG)

Christoph Thiel (CIO) Since January 2010, Christoph Thiel is a member of the Board of Management at ERGO Ver-sicherung AG, Austria. Among his responsibilities in this position is the management of the entire IT landscape of ERGO Austria Inter-national AG and its contribution to implementing the market strategy.

„We are very pleased that we were able to provide our sales colleagues with an innovative reporting and control instrument. We have, so to speak, replaced the map and compass with a navigation device featuring head-up display.” (Christoph Thiel)


ConVista Consulting AG 2013 3

ERGO Austria International AG—Sales Controlling with SAP Business Intelligence

The project goal was to set up a new sales controlling solution for ERGO Austria, as well as the rollout of the solution in the sales of EVA, also particularly in the sales of Volksbanken sales part-ner with its more than 400 subsidiaries in Austria. In several projects over the last few years, an enter-prise data warehouse (DWH) has been established for ERGO Austria, which is based on the software of SAP Business Intelligence (BI). It was planned that reporting with the new enterprise DWH would replace the evaluation tools used up to then. For the reporting and planning processes in sales controlling of EVA the newly created data basis proved insufficient with regard to data transfer and reporting dimensions. After a functional analysis of the required reporting and planning dimensions, the existing data basis was to be set up as an effective control instrument in the form of a web-based sales controlling application.

The first step was to determine in the course of a feasibility study the extent to which the software components of the SAP Business Explorer Suite already in use were sufficient for modeling the required functions. As a result of this feasibility study, ConVista recommended using a new controlling application based on SAP BI not only for sales reporting proper but also for modeling planning processes. The prototype, implemented during the feasibility study, served as a model for the gradual setup and extension of the sales controlling solution in the four subsequent implementation stages.

Successful Implementation of a Sales Controlling Application for Managing Reporting and Planning Processes

Project Goal

Project Duration Start date End dateFeasibility study 2.5 months September 8, 2011 November 24, 2011

Project phases (1 - 4) ”Setup of Sales Controlling”

19 months January 31, 2012 August 31, 2013

Feasibility study and implementation SC-Application



The Business Intelligence team of ConVista examined in this study whether SAP BI was an appropriate software solution. The analysis included assessing the benefits anticipated by modeling the respective business- and process-relevant functions with the SAP BI components.

The study examined in particular the following requirements:

Creating a web-front-end for central access to reporting and planning functions

Integrating the corporate design in evaluations/(web) interfaces

Creating actual/target evaluations (production/in-force business)

Mapping the EVA agent hierarchy and division hierarchy in the DWH, incl. automated update functions

Entering planning figures along the customer’s agent hierarchy (top-down/bottom-up)

Integrating additional data as well as ser-vice and help functions (e.g. collaboration partner data, storing planning documents, authorizations)

Sending mails of evaluations

These functions were implemented in an exemplary manner in the course of the study by developing a prototype for a sales controlling application. This allowed also to verify the interaction between SAP BW and the existing EVA IT environment. Ensuring data quality for analyses and specifying the evaluation and planning dimensions were among the main challenges. In addition to exact key figure definitions for production and transaction statistics, the implementation of the newly defined EVA agent hierarchy including more than 70.000 branches in the DWH was a key success factor. Together with a division hierarchy, the agent hierarchy provides the data basis for the top-down planning and most of the evaluation requirements.

Successful Feasibility Study



The prototype successfully demonstrated that the customer requirements for sales were fully supported by the SAP BI software components and by using the SAP NetWeaver portal. The following components were used:

SAP BW Integrated Planning

SAP BW Business Explorer (BEx Analyzer, Web Application Designer)

SAP BW Information Broadcaster

SAP NetWeaver Portal

Building on the implemented prototype and the solutions derived from discussing the central issues, the feasibility study pointed up the distinct advan-tages and benefits over alternative options for im-plementation (stand-alone custom development or Microsoft Excel).

ERGO Austria then opted for ConVista to set up and integrate the sales controlling application. The implementation was achieved with a multi-tiered rollout plan.

“The early availability of the prototype, which was enhanced with colleagues from the functional department, has been key in making the project a success.

Handling the look and feel at an early stage proved very useful for specifying implementation details later.”

(Dietlind Angebrandt, Project Manager at ERGO Austria)



At the beginning of the project, the business and technical evaluation dimensions and the required key fi gures were analyzed in workshops togetherwith the customer. The long-standing expertise of the ConVista project team in key fi gure analysis and evaluation processes as well as many years of experience with the software components used (ALICE portfolio management system/SAP BI) made it possible to quickly develop a strong foundation for the further implementation. The combined technical and functional expertise of the project team played a major role in identifying the required processes and making transparent the relevant factors for the technical realization. Then the data sources were clarifi ed and the top-down and bottom-up planning processes were analyzed. Since the EVA agent hierarchy in the operative source system was newly implemented for the insurance contract manage-ment (ALICE) at project start, transferring the plan-

ning processes to the new hierarchy posed a key challenge. Through close cooperation with the EVA sales controlling team during the project, we could compile a concept for the DWH extraction und processing of this hierarchy, which later on was used for the regular transfer of the hierarchy to the DWH. The results of the thorough detailed analysis and conception subsequently accelerated the project. They also helped the teams of the IT and the functional departments to gain a deep understanding of the data processing processes. The early availability of the prototype was a decisive factor in the fast extension of the sales controlling application. In close cooperation with the EVA sales controlling team the prototype was successively expanded. The early training and further coaching of the power users of sales controlling in the BW tools were vital to end-user acceptance of the solution.

The ConVista Solution

“Owing to our tried-and-true analysis method we specified the relevant re-porting dimensions at an early stage. We have thus created a clear vision of the goal and scoping effort.”(Alexander Makowski, Project Manager at ConVista)

“The application provides us with diverse options for analysis and control—ad hoc and easy.The newly gained data transpar-ency will allow for continuous, and above all sustainable, im-provement of the data quality.” (Bruno Schmid, Sales Controlling at ERGO Austria)



The implemented functions form a high-perfor-mance solution that can be enhanced and easilyextended to further application/sales areas.The data basis supports all daily evaluation requirements.

The following business views and processes were mapped:

Key fi gures:Comparisons between production, commis-sion, claim, overall (contract) portfolio and portfolio movements, and planning data.

Sales partner data:Integration of contract data delivered by sales partners (portfolio, production).

Hierarchies:Agent and division hierarchies as well as additional aggregation groups allow for creating fl exible views of and selections for transaction data.

Life cycle of agent hierarchy:Different time snapshots of the hierarchy are stored in separate views. It is therefore possible e.g. to separate between planning hierarchy and current hierarchy.

Campaign integration: Sales competitions, cross-selling evalu-ations, brand-dependent sales.

Calculated key fi gures: Integrated weighting/conversion of key fi gures (e.g. converting premiums to single-premium contracts, conversions between piece/premium/commission).

Planning processes: Performing top-down and bottom-up plan-ning. Parameterizing and specifying planning steps can be done with a central process control customizing.

Help functions: Upload and administration of help docu-mentation using your own help menus. Context-dependent help.

Implementation Highlights

ERGO Versicherung AG

own sales organization ...

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... ...

...

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industry business

region northregion east

agency broker internal sales

Bank

SR 112

SR 114

SR 107

Vbk 106 Vbk 105

SU Austriacentral

SU Loosdorf

PG Mayer

AGNT Mayer

ACNTR Mayer

PG Wagner PG Moser

SU Herzogenberg

region east

SU Loosdorf

New top-down planning process at ERGO Versicherung AG



Add Value with SAP BI

The SAP BI software solution met the diverse business requirements very well. High levels of trans-parency in processing and of data were achieved by daily, automated data loading processes and check routines for data quality (e.g. when providing hierarchy data). Using standard SAP BI tools allowed for an early integration of the sales power users in developing the application further. Evaluations and web content can now be developed and maintained by the power users themselves.

Technical features:

Data basis: BW cubes and aggregates for the sales controlling application with their own data loading processes to ensure data availability.

Authorization concept: : a two-level concept allows for authorizations based on user roles and the customer’s agent hierarchy (custo-mizing by power user via Web Dynpro main-tenance views).

Easy extensibility: web views, evaluations, mailing functions etc. can be created or enhanced by the power users of the EVA sales controlling teams themselves.

Self-service portal: agents and sales ma-nagers can access standardized evaluation templates and data using Excel or PDF export.

Additional functions: comment functions, history management of planning values, Web Dynpro maintenance (division hier-archy), process control for planning pro-cesses.

Group Data Warehouse for ERGO Austria—Insurance Reporting under ONE Umbrella.



The application offers a comprehensive and flex-ible reporting of production, commission, over-all (contract) portfolio and portfolio movements and claim statistics. The integrated view of target/actual key figures in a central solution results in more efficient reporting processes in sales. One of the implementation highlights was performing the top-down planning process by analyzing a pre-viously calculated new business target along the newly implemented hierarchy. This has highly sim-plified and qualitatively improved the planning and reporting processes of the EVA sales controlling. The new data and process transparency ensures the high data quality of the solution. The solution’s high degree of automation, the consistent data basis that

unifies different data sources, and the web-based reporting front end offer high efficiency as well as great potential for cutting costs. This is particularly

clear when comparing now and then: today’s use of the solution as self-service portal for Volksbank, a sales partner with more than 400 branches in Aus-tria, contrasts starkly with the previous processes of data acquisition that were mainly performed manu-ally.

Coaching the power users of the EVA sales con-trolling team at an early stage was a crucial success factor. Firstly, most of the necessary adjustments and enhancements were carried out by the sales controlling team itself. Secondly, the related knowl-edge was shared effortlessly with other people. When ERGO Austria awarded the project, they underlined that they selected ConVista in particular because they combined business process expertise with long-standing SAP technology experience and were fully conversant with the software solutions in use. ConVista was thus in a position to offer ERGO Austria a customized solution for its processes in sales controlling, which was based on standard tools and precisely tailored to the requirements and wishes of the customer.

Central Management Cockpit and Planning Tool

The Benefit for ERGO Austria


Expertise in processes, technology and methodology.

ConVista Consulting AG

ConVista Consulting AG provides support in the fields of processes, methods, and technology. By internationalization we understand a consistent process in which we accompany our customers even across borders—so that we can optimally consult them.

Innovative approaches, well-founded ex-pertise, and an above-average compre-hension of technology are the foundations of our success. Our employees possess substantial experience in the specialized mapping of business processes of SAP modules, as well as the conception and re-alization of complex SAP projects.

Furthermore, ConVista offers its compre-hensive expertise for optimally designing the architecture of an SAP installation in your company’s mature, heterogeneous system landscape. As a Service Partner and Special Expertise Partner of SAP AG, ConVista Consulting AG is an interna-tionally recognized partner for the organi- zational and technical integration of SAP software. Moreover, as an Independent Software Vendor (ISV) we also develop in cooperation with SAP additional solutions and add-ons that are tailored to the needs of our customers.

YOUR CONTACT

Alexander Makowski

ConVista Consulting AGIm Zollhafen 15/17 50678 Cologne-RheinauhafenGermanyPhone: +49 221 88826-463 Mobil: +49178 888 60 [email protected]

success story sap bi for insurance

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