RSA Finance leveraging Winshuttle with SAP to become Bolder, Faster and Smarter with Journal Processing and Mergers Keith Wood | RSA

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Introduction to your Speaker

Keith Wood FCA

• Chartered accountant with more than 10 years experience

in the financial services industry

• I work with a strong focus on leveraging technology to

support innovation and promote business change in the

insurance/financial services sector

• 5 years with RSA Insurance – currently Head of Finance

Systems

• Previous experience: FD of a Mayfair Hedge Fund and

Chief Group Accountant of Catlin Insurance (FTSE 250)

Feel free to contact me on - www.linkedin.com/in/keithwoodfca

Or on my personal blog at www.keithwoodfca.com

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Agenda

• Introduction to RSA & UK Finance Systems

• Overview of UK Finance Systems Landscape

• How SAP is used within RSA Insurance Group

• RSA Finance Systems challenges/ pain points

• The why and how of Winshuttle

• Winshuttle Examples

• How we intend to use Winshuttle going forward

• Q&A

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Introduction to RSA

With a 300 year heritage, RSA is one of the world’s leading multinational

insurance groups. Today, we write premiums of £8.7bn, employ around 23,000

people and serving 19 million customers in over 140 countries.

While our origins lie in London, RSA is a global company with businesses in both

mature and emerging markets. We have major operations in the UK, Ireland,

Scandinavia, Central and Eastern Europe, Canada, Asia, the Middle East And

Latin America. The UK represents 41% of group premium.

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UK Finance Systems Team: Bolder, Faster, Smarter

Finance

Systems

Live Service and Customer

Support

Business Led Change and integration

Regulatory Systems and

SAP Development

• Team of 14 people, structured into functional areas to support UK Finance Systems

• Support all Finance Systems – main focus is on the SAP ERP system

• Each team is autonomous – but we keep a “one team mentality” and matrix

approach to resourcing (cross training etc) to maintain agility

• Concentrate for innovation labs to brainstorm solutions to current Finance issues

and highlight wider SAP\industry developments

Innovation

Regular meeting

for team to bring

innovation to the

fore

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RSA SYSTEMS LANDSCAPE!!!

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Finance systems landscape – a 300 year legacy……

11 Line of business systems (using

23 different policy admin systems)

17 Payment systems

180 critical EUCs (10,000 other

spreadsheets - inc Op Plan &

forecasting)

3 Reserving systems

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MI Systems

>100,000,000

transactions

pa

interfaced

into SAP

(15,000 interfaces pa)

Main financial system

(SAP) 160 active company ledgers

6,700 active general

ledger accounts

3 other financial

systems

29 regulated entities

2 Datamarts

Group Reporting /

Consolidation system

10 Debt management systems

300,000 statements pa

(4 million items)

900,000 payments pa

All finance systems support, maintenance and development is outsourced. Responsibility still rests with RSA. Suppliers

are Accenture (UK & Bangalore), IBM (UK, South Africa and Bangalore), CSC (UK) and GSL (UK)

+4,000 balance

sheet accounts

reconciled

every month,

inc. 300 bank

accounts

Gross written premium £3.5bn

Gross outstanding claims reserves

(ocr) £4.7bn

Claims, expenses &

commission£3.3 billion

Direct & re debtors £3.5 billion pa

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RSA SAP Landscape

Main constituents are:

• SAP ERP ECC6 - main GL/HR system

• SAP EP7 Portal - ESS/LSS self-service Portal

• SAP BW - Business Warehouse providing HR cubes for MI

• SAP PI (XI) - ETL system to interface between ECC6 and external systems like HMRC

• SAP CD - Engineering payments system

• SAP Cologne - GL for RSA Germany

• SAP Solution Manager - interface between RSA systems and SAP and provider of Enterprise support functionality. A technical ‘enabling’ system.

• SAP Support Aspects - there are other related SAP areas such as the SAP Router for SAP Marketplace and the SAP GUI which are necessary for the correct functioning and for access to systems.

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Why we chose

In 2013 we were actively investigating application of technologies to enhance or supplement our SAP estate. We had looked at a selection of tools including Winshuttle.

The purchase decision was prompted by the RSA Solvency 2 programme, who wanted to spend £20k with consultants on custom uploads for new document types which were introduced by the programme. Finance Systems intervened and put together the business case for spending the money on Winshuttle licenses instead

Why? • Finance Systems reached the conclusion that spending money on custom uploads

was in essence “dead money” • our business case highlighted Winshuttle as a more strategic options • key benefits were it being more agile and longer term solution to data

uploads into SAP

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Update on progress

During 2013 we developed and started to roll out Winshuttle with the initial goal to automate efficient data and to demonstrate efficiency savings in excess of first year license cost We started out with 5 runner licenses and 1 studio license to perform a proof of concept We now have 26 licenses and 2 studio licenses – and rolled out fully for March quarter end 2014 First month KPIs - saved £62k & 2462 hours compared to manual processing with over 500 uploads completed using Winshuttle. This includes journal uploads and plan uploads

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Winshuttle – Story So Far March Month End Heat Map

WD1 – WD6 : on average 80 uploads per day by 7 users

Peaked on WD3 - 107 uploads ran by 8 users

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Winshuttle – the story so far in KPIs

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Why was our March roll out so successful? Tricks and Tips

• Spend time on testing - we spent around 3 months effort developing and testing prior to roll out

• Deployment was not as easy as expected as RSA had lots of non-standard customisation

• Inconsistent SAP transaction behaviour - particular problems were inherent in field status groups and cross company journals

Discoveries and

conclusions

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Journal Posting Success

• One template for each transaction type

• Two core scripts based on F-02 (Permanent) Z001 (Reversing Journals)

• Use one master Excel template

• End users have a very consistent path to follow

• 18 fields were regularly populated by the vast majority of users

• Standard template and scripts focused on these key fields

• Only one use case needed a variant script and template

• Makes training and roll-out much easier –but makes scripts more complex.

Our recipe

for success

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Solvency 2

Solvency 2 introduced the MIFF file process to Finance (Manual Interface File Format)

Designed as a manual upload to populate both FDS and SAP with the same information in real time

Would require manual rekeying of the data into SAP and the introduce risk around errors being manually introduced and the FDS\SAP being out of sync whilst data was being keyed

Using Winshuttle would help to remove rekeying risks.

Winshuttle template exists and links directly to the upload data and allows the same data to be uploaded in real time to remove the risk around rekeying and out of sync systems

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Cologne Migration

Cologne system was due to be migrated to UK SAP

Consultants asked for £200k to implement a migration solution

This was to be based around LSMW “Legacy System Migration Workbench”

Finance Systems offered to investigate the use of Winshuttle as an alternative

Proof of Concept was needed before we applied this to a data set that totalled around 3 million lines of data including master data set up

We quickly developed a script to take the data from the German SAP system, transform it and upload it with Winshuttle into the UK system

Tested 1k transactions took around 3-4 minutes of processing time. Results meant that we could upload a month's transactions in around 2-3 hours once the data was extracted (single user\single session)

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Cologne Migration

• Cost: no additional spend to utilise existing WS licenses

• Process Standardisation: provide templates for end to end solution automation

• Migration Agility: Pick up German data, transform via macro etc within the same spreadsheet. Support drag and drop once the transformation rules were understood

• Data Quality: the process followed the natural path data would have followed in a production system, with all the normal SAP validation rules built in at source so that uploads could be amended “in flight” if validation failed

• Scalability : multiple WS licenses available meant we could involve a wider range of SMEs in the migration process at the right cost base

Major Advantages

expected from using Winshuttle

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Expense Management

• RSA was using a database to transform data for loading to SAP

• This was labour intensive and time consuming

Problem

• Scripts were created for planning, fixed asset creation, depreciation and write downs:

• KP06 - planning upload

• AS01/AS02 – create/change asset

• ABAVN – asset retirement by scrapping

Solution Approach

• Expense processes were simplified

• The database for transformation was decommissioned.

Results

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Future Plans

• Embedding in Finance and investigating use cases in other RSA areas – HR \ Accounts Payable \ Receipts etc

• Master data management for SAP (create profit centres etc)

• Testing Data set up

• Using Query for reporting \ replacing spreadsheets

• Reconciliation \ Matching in SAP

• As knowledge spreads throughout Finance more and more use cases are being presented