delivering real-time business value for insurance

July 2013

Delivering Real-Time Business Value for

Insurance SAP Business Suite Powered by SAP HANA

Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The real-time opportunity

Insurance companies must seek new competitive

advantages in response to changes in customer trust,

demographics, and demands as well as profit margins

reduced by higher capital requirements, compliance

costs, and prize competition.

Create new and innovative products that excite customers

Respond rapidly to evolving trends

Develop flexible, efficient, and cost-effective business processes


Delivering the future of insurance today Business priorities in insurance

Market insight

and customer

intimacy

Convert loyalty into revenue by utilizing predictive

analytics

Focus on the right markets by gaining insight into

customer analytics

Get a true 360-degree view on the customer

Insurance

operations

Speed up information flow in planning, forecasting,

simulation, and pricing

Maximize transparency for closed-loop fraud

processing

Finance, risk,

and compliance

Accelerate the closing process

Achieve real-time visibility of access and process risks

Maximize cash-flow efficiency


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for insurance Enabling the customer-centric insurer

Procurement

Market Insight and Customer Intimacy

Customer and Multichannel Management

Marketing Management

Sales and Service Management

Sales Force Management

Finance, Investments, and Compliance

Strategy, Planning, and Consolidation

Governance, Risk, and Compliance

Accounting and Controlling

Investment and Asset Management

Core Insurance Operations

Product and Policy Lifecycle

Claims Lifecycle

Reinsurance Lifecycle

Billing and Payments

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration


Industry value map for insurance Enabling the customer-centric insurer

Procurement

Market Insight and Customer Intimacy

Customer and Multichannel Management

Marketing Management

Sales and Service Management

Sales Force Management

Finance, Investments, and Compliance

Strategy, Planning, and Consolidation

Governance, Risk, and Compliance

Accounting and Controlling

Investment and Asset Management

Core Insurance Operations

Product and Policy Lifecycle

Claims Lifecycle

Reinsurance Lifecycle

Billing and Payments

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning and

Analytics

Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Initial focus for

SAP Business Suite

on SAP HANA


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Customer and multichannel management Business value for contact management with interaction center

High volume of customer records and interactions result in increased search times and greater difficulty locating specific customer records.

Customers demand consistent

service across channels.

When responding to social media

queries, service reps struggle to get

all relevant customer information,

leading to inefficiency and

dissatisfaction.

Searches in the interaction center ‒

including account searches,

interaction history, and the customer

fact sheet ‒ are significantly faster

Quickly identify customers and get a

complete 360-degree view in real

time

Route all inbound communications

to the best resource

Increase calls handled by

call center by

6%

Improve

Reduce

first-call resolution

and customer

satisfaction by

97%

service cost

With SAP Business Suite on SAP HANA


Today


Marketing management Business value for marketing

Missed market opportunities due to lack of visibility and inefficient processes

Data explosion, driven by new level

of connectivity of consumers using

mobile devices and social networks

Data in disparate data sources, which

prevents true 360-degree view of the

customer

Agile marketing to respond faster to

changing market dynamics and

opportunities

New analytical data-mining

functionalities on Big Data (social

media, predictive)

Near real-time monitoring and

reporting on marketing performance

One central place for collecting all

customer data leading to 360-degree

view of customers in real time

Precision marketing to personalize

every interaction with the customer

Improve profitability by

0.5%

Optimize

Increase

return on

marketing

investments by

15%

customer

satisfaction by

30%



Today


Sales and service management Business value for sales

Difficult to identify profitable customers from customer pool

Inability to identify gaps in sales

pipeline leading to missed targets

Difficult to extract actionable information from the enterprise-wide customer data to maximize the chance of a sale

Minimal insight into buying preferences of customers in social data context

Easier identification of profitable

customers with account intelligence

analytics

Faster transaction search capabilities

Complete transparency into sales

pipeline (for example, in commercial

banking) based on real-time

information with unlimited drill-down

functionalities

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data including social sales data

Improve profitability by

0.5%

Increase

Improve

percentage of

sales reps

achieving quota by

17%

offer win rate



Today


Strategy, planning, and consolidation Business value for planning, budgeting, and forecasting

Planning performance limited to OLAP, staged cubes for transactional and master data

Data load performance is driven by

the amount of data extracted from

SAP Business Suite

Reporting, loading, and retraction

performance limits planning iterations

Drilldown within OLAP cube, and drill-through to SAP Business Suite and OLTP data within standard times

Seamless replication of master and

transactional data from SAP

Business Suite

Availability of more granular data to

support planning

Big Data challenge negated, allowing

for faster extract and DSO activation

times

Iterative planning and real-time

simulation supported through

improved performance

Improved performance for drilldown

(expand) and consolidation (collapse)

Fast drill-through and live view of

transactional data in SAP Business

Suite

Improve service level

performance

Reduce

Minimize

cycle times and

manual effort by

9%

operating costs

15%



Today


Governance, risk, and compliance Business value for access control role analytics

Most companies face a high volume and ongoing increase of unused and orphaned roles.

Scheduled batch jobs are required to analyze a transaction log with millions of records (such batch jobs usually take hours to complete).

The cost of ongoing role

maintenance can be high – one

customer estimated active ERP role

maintenance costs at about

US$4,000 annually.

Unused roles and orphaned roles constitute unneeded access risk to the organization (and possible compliance issues).

Conflicts associated with segregation of duties arise from continuous monitoring of access risks.

Accelerated analysis of role usage to

isolate unused and orphan roles

Deeper insight into roles for

uncovering any potential risk for the

organization

Role usage and assignment

information provide valuable insight

to business executives during

business reengineering and

reorganization

Trigger the assigned workflow

directly from the analysis to remove

unused roles assigned to users

Expose orphaned roles across the

system landscape quickly to begin

the decommission process

Identify unused and

orphaned roles

Consolidate

Reduce

most-frequently

used (active) roles

noncompliance and

overall access risk



Today


Accounting and controlling Business value for entity close

Long-running processes

Time-intensive reconciliations

Limited time for analysis

Inefficiencies due to manual

processes and low automation

Missing financial excellence

results in higher cost of equity

at the capital markets

Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios

More time for analysis; less overtime;

earlier publishing of financial results

through faster period-end processes

and better reconciliations

Increased efficiency through smarter

reconciliations and reporting,

reducing operating costs and

improving stakeholder satisfaction

Real-time analytics down to the

lowest level of detail – delivering

quality, transparency, and process

efficiencies

Reduce time to close the

entities’ books by

13%

Reduce

Enhance

cost of finance by

15%

compliance and

accuracy by

18%



Today


Accounting and controlling Business value for financial and managerial reporting

Risk of noncompliance due to

unfulfilled (overruns in) audits

A lot of data; decision-relevant

information not readily available

Data analysis not supported or

automated

Long-running batch jobs/reports

Time-intensive data analysis

Large number of time-consuming and non-value-added processes required to access and provide accurate, up-to-date information

Timely execution of compliance-

relevant validation tasks

Increased end-user satisfaction

(accurate, detailed, visualized, timely,

and actionable information)

Acceleration of key critical-path

processes and reports

Instant response time on most data-

analysis queries

Elimination of workarounds and data

latencies

End-user data analysis through self-

service means


performance by

18%

Reduce

Reduce

month-end closing

time by

12%

operating costs by

17%



Today


Accounting and controlling Business value for profitability and cost analysis

Data latencies and process delays

impact the ability to react to issues/

opportunities.

Lack of data depth and user self-

service affect internal decision

making.

Long-running processes

Time-intensive data queries

Mostly manual data analysis

Substantial amount of time and effort on processes that do not directly add value

Suboptimal resource efficiency and effectiveness

Timely execution of critical business

processes supports decision making

and increases the ability to swiftly act

(insight-to-action) in dynamic market

environments.

Critical transactions and calculations

run quickly

Instant response times on queries

Prebuilt analytics automates the data

analysis process

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support


performance by

17%

Reduce

Minimize

cycle times and

manual effort

4x

operating costs



Today


Accounting and controlling Business value for shared service framework for finance

Vendor, customer, and employee

queries generate a high load on the

shared services organization (SSO).

This demands an extremely efficient

working environment for agents in the

SSO.

Agents in an SSO spend a lot of time

searching for vendor, customer, and

employee data.

Shared services organizations are under constant pressure to improve the quality of service and to lower the costs of providing those services.

SAP HANA-based acceleration of

inbox performance speeds navigation

within the inbox. It allows the agents

in the SSO to review and prioritize

their work more efficiently.

Faster identification of vendors,

customers, and employees allows the

agent to provide more responsive

service, which leads to improved

satisfaction of the agents and the

clients of the SSO.

Reduced costs and faster response

times allow the SSO to meet its

service level agreements, meet its

budget objectives, and improve its

KPIs.

Increase productivity for

shared services

agents by

15% Improve

Reduce

employee

satisfaction

overall costs of

delivering services



Today


Core human resources and payroll Business value for payroll processing

Responses to management ad hoc

inquiries about trends of high volume

payroll information cause significant

costs to HR IT.

Business users have a very limited

ability to analyze payroll results.

Addressing employee inquiries about payroll is time consuming and expensive while HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services.

Free up HR IT resources to focus on

the execution of organizational

strategic tasks

Leverage thresholds as a steering

mechanism to optimize business

performance

Simplify payroll data analysis with

optimized representation of data

Slash time needed to access and

analyze critical payroll information

with SAP HANA-based high-speed

read access

Increase employee productivity and

satisfaction with faster response

times to employees

Increase productivity of users

responsible for

payroll management

10% Improve

Reduce

employee

satisfaction

overall costs of

payroll processing



Today


Core human resources and payroll Business value for effective shared services delivery

Employees direct queries to the

shared services organization (SSO)

and expect to get prompt, accurate

answers.

SSO agents spend time searching for

employee data using employee

identification.

SSO agents are under constant

pressure both to improve the quality

of service provided to employees and

to lower the costs of providing those

services.

SAP HANA-based acceleration of

inbox performance speeds navigation

within the inbox, allowing the SSO

agents to review and prioritize their

work more efficiently.

Faster employee identification allows

the agent to provide more responsive

service, which leads to improved

employee satisfaction.

Reduced costs and faster response

times allow the SSO to meet its

service level agreements and budget

objectives and to improve KPIs.

Increase productivity for

shared services

agents by

14% Improve

Reduce

employee

satisfaction

overall costs of

delivering services



Today


Time and attendance management Business value for time and absence calculation

Responses to ad hoc inquiries from

management about trends of high-

volume time information causes

significant costs to HR IT.

Business users have a very limited

ability to analyze time evaluation

data.

Addressing employee inquiries about time is time-consuming and expensive while HR is under pressure to increase the quality of service provided to employees and to lower the costs of providing those services.

Free up HR IT resources to focus on

the execution of organizational

strategic tasks

Leverage thresholds as a steering

mechanism to optimize business

performance

Simplify time evaluation data analysis

with optimized representation of data

Slash time needed to access and

analyze critical time information with

SAP HANA-based high-speed read

access

Increase employee productivity and

satisfaction with faster response

times to employees

Increase productivity of

users responsible

for time

management

Improve

Reduce

employee

satisfaction

overall costs of

time management



Today


Workforce planning and analytics Business value for transactional analytics

Translation of organizational strategy

into HR metrics requires significant

effort or special expertise.

Decisions are often based on

hunches.

Difficult to zero in on underlying

transactions from high-level key

performance indicators

Time-consuming data loads in traditional reporting tools

Integrated and personalized cockpits

that provide insight into metrics that

matter most

Leveraging of thresholds as a

steering mechanism to optimize

business performance

Powerful predefined workforce and

time management-related KPIs for

managers, with the ability to navigate

into details

Embedded analytics inside business

transactions

Prebuilt virtual data models for real-

time transactional analytics

Simplified architecture

Increase revenue per employee by using analytics to identify strategic advantages

20% Optimize

Reduce

your business with

reliable real-time

HR data

time and costs of

operational reporting



Today


Procurement and order collaboration Business value for operational procurement

Missing real-time insight into

operational procurement reporting

Inability to dynamically create

operational procurement-related

reporting in a modern user interface

Slow and costly paper-based

processes

High transaction costs

Long-running transactions while posting documents with high volume of line items

Frequent errors yield to maverick spend

New configuration options for

procurement analysis

Modern and easy-to-consume user

interface

Complete visibility into end-to-end

procurement activities

Real-time insight and easy-to-

manipulate information

Accelerated long-lasting processing

of purchasing documents

Increase transparency

Lower

Increase

procurement

operations cost by

17%

process

effectiveness by

12%



Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As a starting point, we recommend a performance

and usage analysis of your current software

system.

delivering real-time business value for insurance

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