fst media technology & innovation – the future of insurance & wealth management conference...
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3 Continuous change for us INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY Changing business and technology landscape Thought leadership Training & Development Emphasis on business acumen Exceeding customer expectations PartnershipTRANSCRIPT
FST MediaTechnology & Innovation – the Future of Insurance & Wealth Management Conference
Four Pillars of the CIO RoleStrategy, Governance, Risk and Delivery
Vivek Bhatia, Chief Information Officer
Sydney, 27 March 2008
2
What changes are impacting the industry?
Change Effect
Consolidation of insurers and distributors • Scale economies driving down price
• Leveraging of distribution
• International best practice
Insurers acquiring distribution • Blurring of boundaries of traditional models
• Cost efficiencies
• Compliance and independence
Changing demographics and purchasing trends
• Workforce change
• Internet – transactions and marketing
Private Equity and Hedge Funds • Pressure on listed company managers
• Absolute focus on shareholder returns
Labour market trends • Full employment driving wage inflation
• Competition for talent
3
Continuous change for us
INFORMATION
TECHNOLOGY
Changing business and technology
landscape
Thought leadership
Training & Development
Emphasis on business acumen
Exceeding customer
expectations
Partnership
4
Objective
business-enabling strategies1
2
3
4
To provide a satisfactory return to shareholders
Key Pillars for the CIO to help achieve the objective –
strong governance framework
sound risk management
reliable delivery capability
5
Key Priorities
Customer service
OperationalExcellence
Risk Management
Best team
Stra
tegy
do
ing
the
righ
t th
ings
Gov
erna
nce
doin
g th
em r
ight
Day
to
Day
Act
ions
Profitable growth
Business enabling strategies
7
strategiesResults of a CIO leadership survey conducted by IBM, Harvard & MIT -
2006 :
CIOs felt transformative power of technology was not recognised by CEOs
2007 :
Increasingly CEOs and the Board recognised technology as being central to innovation and competitive advantage and a significant driver to business value
Three main items on the agenda
• Performance improvement to external partnering, market expansion and internal efficiency
• Develop high potential IT staff to counter shortfall in talent
• Extend the level collaboration to the lines of business i.e. greater IT-Business alignment
8
strategies
Strong governance framework
10
governance is critical
Measurement of performance
Financial discipline
Partnering to achieve
business case outcome
Efficiency of end-to-end
function
Critical issues / High criticality / Not desirable
Some issues / Medium criticality
No issues / Low criticality / Very desirable
Confidence
Low -
Medium -
High -
Confidence
Low -
Medium -
High -
Confidence
Low -
Medium -
High -
Sound risk management
12
risk is the name of the game
Sustainability
De-risking the organisation
Measurement of risk
Defining appetite
Controls and ownership
Information Security
Disaster Recovery Planning
Business Continuity Planning
Regulatory Compliance
Protection & promotion of brand
13
risk is the name of the game
Reliable delivery capability
15
operational excellence
Drive competitor and market advantage
Best in class cost structure
Internal systems & processes
Measurement of service
Emphasis on customer service
Challenge convention
to drive change
consistently
“be patient in planning, but relentless in execution”
16
operational excellence
17
leaving thoughts
18
Thank You