pegaworld 2014 presentation: aig leverages their center of excellence as a strategic advantage

© 2013, Confidential, Pegasystems Inc.

TM


AIG: Leveraging Their

Center of Excellence as a

Strategic Advantage

Jeffrey Fisher - Manager of CoE, AIG

Michael Woodward - Sr. Information Officer, AIG

3 3 © 2014, Confidential, Pegasystems Inc.

Discussion Topics

• Who’s AIG?

• Center of Excellence (CoE) What is a CoE?

AIG Pega CoE Mission

AIG Pega CoE Areas of Focus

AIG iSUITE

AIG Pega CoE Operating Model

• CoE Structure & Roles AIG Pega CoE Model

Team Structure and Roles

Educating the Enterprise

• Pega Technology Powering AIG’s CoE

• AIG’s CoE Case Studies

• Lessons Learned


Who we are:

Michael

Woodward

Senior

Information

Officer

Jeffrey

Fisher

Manager

of CoE


About AIG

95years

64,000 Employees

$68.7 billion AIG’s revenue in 2013

More than 98% of Fortune 500 served

300,000+ Financial professionals

who make up the AIG

Life and Retirement

distribution organization

130+ Countries where AIG operates

58,300+ Loans modified,

helping families in the

U.S. keep their homes

88+ million Clients worldwide

$7 million Donations made by AIG’s

Matching Grants Program to

match employees’ gifts to

charitable organizations in 2013


Discussion Topics

• Who’s AIG?




AIG iSUITE







• Lessons Learned


AIG Pega CoE

Functions

Delivery Assurance

Technology & Architecture

Quality Assurance

Resources & Skills Devpt

Infrastructure

Industry Definition of a BPM CoE

A formally appointed and documented body

of knowledge and experience in business

process management methodologies and

technologies with goals of providing

expertise, managing governance practices,

and supporting BPM projects

FORRESTER RESEARCH


!

AIG’s Key Reason for Starting a Pega CoE

• No governing body for best practices & standards

• Multiple Pega Platforms to manage; spanning version 5.3 to 6.2

• Lack of direction on when to customize vs use OOTB features

• No guidance for sizing and estimating projects

- Define a standard method for Pega Implementations

• No Service repository for reuse across strategic projects

• Lack of business and IT collaboration

• No knowledge sharing and collaboration between

application development teams

• Lack of visibility across strategic partners

• No visibility into Pega product framework & licensing


AIG Pega CoE Mission: 1 2

3 4

Provide Thought Leadership Accelerate Projects

Mitigate Risks Act as Vendor Liaison

• Scale Pega projects to enterprise

competency

• Promote continuous improvement

• Provide education & training

• Assist with best practices & standards

• Guide to employ BPM appropriately

• Cultivate robust community of experts

• Establish an environment of reuse

• User interface & report adoption

• Promote Pega OOTB rules vs. Code

• Provide “What’s the Best Way” answers

• Provide repeatable delivery methodology

• Review project designs and code

• Provide cost effective BPM expertise & skills

• Provide proven templates, checklists and

approaches

• Performance monitoring of BPM apps

• Manage technical issues reported to Pega

• Arrange for Pega experts to deliver seminars

• Distribute product announcements

• Manage Pega software licenses &

Frameworks

• Manage strategic Pega implementation

project


AIG Pega CoE Area of Focus

Pega Applications within:

AIG Property Casualty

Underwriting Focus

• 12 Implementations supporting the

Underwriting process

• Covering Pre-quote all the

way to bind, to issuance

Breadth: Global

P&C

UW

Workers

Comp. Personal

Lines

Warranty

Ins. Engineering Risk

Exp.

Quote – Bind – Issues


AIG Application Spotlight - iSUITE

ISUITE’s Central Objective is…

“To get paper off the desk.”

The Purpose of iSUITE


“INTAKE”

Submissions

“CHOREOGRAPHY”

Underwriting

“SERVICING”

SC Requests

HIGH VOLUME EFFICIENCIES

• Logical Centralization / Geographical Distribution

• Automatic Role-Based Work Assignments

• Business-Driven Prioritization

• Load Balancing

• Tracking & Reporting

Workflow Architecture of iSUITE

& Corresponding Benefits

HIGH COMPLEXITY EFFICIENCIES

• Real-Time Transfer

• Secure/Rights-based Environment

• Automatic History and Auditing

• Enforced Compliance

• User Preference-able & Flexible

• Real-Time Statuses

• Serial & Parallel Work-streams


“Approvals” and “Tasks” “External Requests” “Service Center Requests” “Workitem Reminders”

From

Service Center Close

Underwriting Workitem

New Business

Renewals Endorsements

1-step process, with infinite possibilities…


BPM COE Operating Model – AIG

• Centralizing and managing Pega development

resources enables the COE to:

Establish a stronger link between the COE and

Pega projects & applications

Drive reuse

Develop specialists to use across projects &

applications

Standardize approaches

• Resulting in the following qualitative benefits:

consistency, higher quality, increased delivery

speed, and reduced cost.

Application 1

Project B

Project C

Project A

Application 2 Application 3

AIG CoE:

Pool of Pega Development

Resources Specializing in:

– Pega Frameworks

– Integration

– Maintenance

– Refactoring

– Etc.


CoE Operating Model – 10 Core Benefits

1. Drive efficiencies

Scale resources/effort across projects

2. Enforce BPM standards

Improve quality

Streamline development

Ensure stable applications

3. Standardize the estimating process

Improve business expectations

Streamline project resourcing

4. Drive reuse

Reduce cost of development

Reduce defects

Speed time to market

5. Develop specialists

Resident experts to quickly deploy

6. Drive use of an agile methodology

Team are able to easily adapt to

requirement changes

Reduce cost of development

7. Resourcing flexibility

Greater transparency in project staffing

Ability to adjust resourcing more easily

8. Education & training at pool level

Reduction in overall training costs

9. Strengthen the BPM development

community

Faster resolution to problems

10. Improve staff in the pool

Increased exposure to other business areas

Greater knowledge sharing

No downtown


Discussion Topics

• Who’s AIG?




AIG iSUITE







• Lessons Learned


AIG COE & Project Team Structure

AIG CoE Team

CoE Manager

PRPC CoE Leadership

IT Exec Sponsor(s)

AIG Pega CoE

CoE LSA (2)

AIG Pega CoE – Extended Team

Engage Directly / Guidance

Test Lead Infrastructure Lead DBA Lead Deployment Manager Performance Lead

PM

Project Leadership

SI Delivery Partner

PM BA QA LSA

Project Team(s)

BA QA

AIG Pega CoE Governance

Go

ve

rna

nce

/ Gu

ida

nce

E

ng

ag

e D

irectly

Enterprise Architect

Governance Manager

Process

Owner(s)

Pega LSA

CoE SA(s) Enterprise Architect

CoE Manager

Legend:

AIG Delivery

Partner

Pega

Biz Exec

Sponsor

Pega


Typical AIG CoE Roles

CoE Leadership CoE Core Team Project Team

• Interacts with executive

leadership team and project

leadership

• Pega BPM project teams

have the executive support

to do the “right things”

• Executive governance

• Standardize Pega BPM

Delivery

• Perform value added

services and governance

• Own and improve best

practices and methodology

• Enablement of the project

team members (including

the business)

• Deliver R&D projects

• Participate in Program /

Project governance

• Manage / drive the project

• Manage day to day scope

and deliverables

• Use the current program

governance model

• Deliver projects according

to the initial set of best

practices and methodology


AIG Pega CoE – Building Communities LSA Community Forum – Recent Topics

• Adding custom validation rules in Pega to emphasize coding guidelines.

• Integrating a Pega Application with Google Maps.

• What is localization and how to implement it?

• Excel file creation with dynamic columns

• COE Code Review Process

• Automatic Agent Monitoring, Integration connections Testing Portal, Production Health Check

• Document Uploader functionality

• Reviewing Log Files and fixing exceptions

• Security – Types of Authentication


Discussion Topics

Who’s AIG?

Center of Excellence (CoE) What is a CoE?



AIG iSUITE


CoE Structure & Roles AIG Pega CoE Model



Pega Technology Powering AIG’s CoE

AIG’s CoE Case Studies

Lessons Learned


AIG Pega CoE Leveraging the Pega Cloud

• Leverage as Strategic CoE development

sandbox (non-production use)

• Use cloud to test drive Pega frameworks

and PRPC versions

• Jump start development teams through

application and environment availability

Why The Pega Cloud?


Pega Service Repository Becomes the Engine for Reuse

• AIG Core Framework is Built on Top of Pega Base Products.

AIG Core Framework Situational Layer Cake

AIG Core Framework

CASL

GES KX

eStart

CMS Excel Utilities SFTP API

AIG Pega Core

Guardrails AIG Skins, UI,

Logos

CoE / MW Audit Portal

Foundational Data

Model

Core Work Processes,

Flows, Rules

Technical Integration Technical: Non-Integration Functional

• Case Management

• User Interface

• Correspondence

• Business Rules

• Process Management

• Integration Services

Pega BPM Base Product

Pega Underwriting for Insurance

Insurance Industry Foundation (IIF)

CPM for Warranty

Customer Process Manager (CPM)

Business Intelligence Exchange (BIX)

Internet Application Composer (IAC)

Pega Mobile

Salesforce Extender

Test Management Framework

Project Mgmt. Framework

PRPC Frameworks (Optional)


AIG CoE Deployment Strategy Powered by Pega

Situational Layer Cake

GES Framework

GES Implementation

AIG Core Framework

Pega/PRPC Base

Product

GES Users

MNP Framework

MNP Implementation

AIG Core Framework

Insurance Industry FW

MNP Users

Pega/PRPC Base

Product

IAC

SalesForce Extender

WIN Framework

WIN Implementation

AIG Core Framework

CPM for Warranty

Service Net Users

Pega/PRPC Base

Product

Warranty FW

CPM FW

GRASP Framework

GRASP US

Imp

AIG Core Framework

GRASP US Users

Pega/PRPC Base Product

GRASP APAC

Imp

GRASP UK Users

iSuite Framework

iSuite Implementation

AIG Core Framework

Pega/PRPC Base

Product

iSuite Users


Discussion Topics • Who’s AIG?




AIG iSUITE







• Lessons Learned


The Multi-National Project entails building a new Pega application that integrates with a number of applications and services within AIG.

Some of these integration points are already developed by other Pega applications within Underwriting.

Case Study: Project Starter Kit – New Development

Challenge

No re-usable asset framework or a starter kit for new Pega Applications to accelerate development.

Resulting in duplication of development efforts across development silos.

Solution – AIG Core Framework

Provide reusable framework & assets for integration and application components to be leveraged in existing & upcoming Pega applications.

Store, manage and publish reusable assets from AIG’s CoE Service Repository

15 – 20% reduction in development effort.

Faster time to market

Solution – Benefit


• Two of our Pega underwriting applications need to implement SFTP functionality. Pega provides FTP functionality out of the box requiring AIG to make use of java api’s and create utilities and activities.

Case Study – Reuse for Identical Business Requirements

Situation

• No placeholder for the application teams to share their code.

• Identical development activities were being done in silos, with no visibility into either project teams.

Approach and Solution – AIG Core Framework

• Provide a framework/skeleton for the application teams to share new functionality

• Empower Application Teams to communicate with the COE regarding the requirements.

• CoE Reuse program ensured “Build Once, Use Anywhere” paradigm

• 80% reduction in development effort



• A common integration used by many Pega applications within underwriting is upgrading its services.

• Without reuse all applications would need to make individual changes

Case Study – Common Integration Service

Situation

• Duplication of development efforts on maintenance activities.

Approach and Solution – AIG Core Framework

• Build a reusable framework that would be the repository of all Integrations and reusable components

• Implement a development & deployment strategy by versioning the AIG core framework.

• Empower multiple teams to collaborate and contribute in the creation of reusable assets


• Reuse across 12 Application

• Projected to reduce development efforts by a factor of 11

•


Discussion Topics

• Who’s AIG?




AIG iSUITE







• Lessons Learned


Lessons Learned & Challenges to Consider

• Funding: Corporate vs Project level

• Pega Expertise to build guardrail

compliant BPM apps

• Alignment with Enterprise Architecture

• Central repository and structure

• Management support


QUESTIONS & ANSWERS