QBE Emerging Market’s Digital Transformation Journey to Drive Sustained Profitable Growth via Pega 7
©2016 Pegasystems Inc.
Jason Little, SVP of Digital, Architecture & IT Strategy, QBE Emerging Markets
Julian Anderson, Head of Digital Innovation & IT StrategyQBE Emerging Markets
About the Presenters
2
Julian AndersonHead of Digital Innovation & IT Strategy
QBE Emerging [email protected]
Hong Kong
Jason LittleSVP of Digital, Architecture & IT Strategy
QBE Emerging [email protected], Philippines
About QBE
3
OUR PURPOSEWe give people the confidence to achieve their ambitions
OUR VISIONTo be the insurer that builds the strongest
partnership with customers
• Global 20 insurer / reinsurer.
• Australian - Listed ASX
• 17,000+ employees globally
• Operations in 38 countries
• Focused on general insurance
• Diverse product mix
• Distribution via agents, brokers, financial institutions & direct to the public
QBE’s History with Pega
4
Shared Systems
Core Insurance
Channel Delivery
FinancialsData Warehouse
Document Mgmt.Customer Data
Reinsurance Credit Mgmt.
Social Media Mobile
AffiliateWhite-label
Broker / Agent WebCall
Centre
BPMProduct
&Rating
Underwriting Claims
Policy Admin Claims
• 2006 QMS Pilot Australia– Broker/Agent E-business platform– White-labeled web system– Call centre POS– Claims Management– Externalized Rating Engine
• Standardized Underwriting Process• 2014 Emerging Markets (Reuse)
• Pegaworld Washington 2014…
What We Will Cover Today…
5
• QBE Emerging Market’s business challenge
• What we have achieved so far…
• How are we making it happen?
• Applying our lessons learnt
• What’s next for us…
What We Will Cover Today…
6
• QBE Emerging Market’s business challenge• What we have achieved so far…
• How are we making it happen?
• Applying our lessons learnt
• What’s next for us…
QBE Emerging Markets
7
Profitable Growth Strategy
Em
ploy
ees
(EV
P)
Tech
nolo
gy &
A
naly
tics
Cen
tre's
of
Exc
elle
nce
Double GWPby 2020 (2 to 4 Billion USD)
MTP Agency Broker Bancassurance
Marine Specialty SME Personal Lines
Commercial / Corporate
Affinity
Group Shared Services
Cus
tom
ers
(CV
P)
Asia Pacific Region
(16 countries)
Latin American Region
(7 countries)
Our Profitable Growth Business Strategy
23 Countries
Our Case for Digital Transformation
8
Products / Underwriting
Sales & Distribution
Policy Admin & Credit Control
Claims
Customer Service
High Operating Cost
Current State Issues
Non Customer Centric
No consistency & scale between 23 countries
Inefficient manual paper-based processes
Too focused on the rear view
Emerging Markets – Core Operations
8
Language Timezone+ Regulatory
EM Country IT operations
23 x Countries
A Repeatable Digital Architecture
9
2 x Regional COEs
3 x Group Shared Service Centers
And Emerging Market’sGlobal hub & spoke operations model
…Demands a Repeatable Digital Architecturein 3 layers
9
Customer Centric Omni-channel Services layer
…to Achieve our Profitable Growth
ambitions
Organisation Design Optimisation
Scale &Best Practice
Standardisation & Automation
Renewal Retention
Growth
Improved NPS
Customer & Business Intelligence “Brain” Services layer
Business Process Excellence Services layer
Core Core Core Core …x10Core Core
1
2
3
Surrounding
ChannelsCustomers
EM Country IT & Operations
1. Customer Centric Omni-channel Service layer
2. QBrain – Integrated Customer & Business Intelligence Services
SalesForce.com Qnect – Customer Self service platform
Data Assets
3. SmartQ – Integrated Business Process Excellence layer
Core Insurance x 10
SmartQ – Business Process Management
Visualization
Contact Centre
Next Best Action
Pricing & Product Engine
CMS (Electronic File)
Enterprise SearchSingle Customer View
Customer Service CRM
Scanning & Indexing
Enterprise Service Bus Automation & Robotics
Underwriting & Policy Processing Claims Credit Control Document
Processing
Sales support - Mashup
Cloud
BAM & Non-bound $ Operational
TBA (recent acquisition)
Pega’s Critical Role in Our Target ArchitectureMTP Agent Broker Bancassurance Customer /
Claimant Browser Mobile App
Email / Messaging
Systems B2B Social
10
Other
Pega
STP Services - Mashup Mobile
What We Will Cover Today…
11
• QBE Emerging Market’s business challenge
• What we have achieved so far…• How are we making it happen?
• Applying our lessons learnt
• What’s next for us…
What We Have Achieved So Far…
12
QBE Underwriting Workbench (QUW)
• Common UW processes• In use 9+ years• 1600+ users (incl. GSSC)• Proven GWP uplift & efficiency
• SmartQ – Reuse Proven Processes+
• Modernised (Upgraded to Pega v7)• Re-architected Integration (SOA)• Enhanced User Experience (HTML5)• Localised & Capability uplifted
Implemented:• Malaysia• Singapore• Philippines
… continued country rollout & additional processes / features
Inflight Projects:• Hong Kong • Documents • Claims• Argentina
Australia (2007 – present) Malaysia (Pegaworld 2014) SmartQ – Today
15
DEMONSTRATION
What We Will Cover Today…
16
• QBE Emerging Market’s business challenge
• What we have achieved so far…
• How are we making it happen?• Applying our lessons learnt
• What’s next for us…
How Are We Making It Happen?
Common EM IT Operating Model – Digital COE
Innovating our Delivery Model
Enterprise Architecture – Design for Reuse, Playbook & Repeat!
1
2
3
17
Shared KPIs
GWP Growth Sales Productivity Retention NCOR Operations
Efficiency ROIIT Unit CostNPS
enables
EM Profitable Growth StrategySales Excellence & Innovation Operational Excellence Risk & Investment Rigor
EM Portfolios
Asia Pacific
• Business Change
• Requirements
Ser
vice
sO
ptimizes
Digital COE
• Application development• Re-use: solutions &
playbooks• Adaptable Component-
based Application architecture
• Market research • Innovation &
ideation process• Transition to delivery
• Application maintenance• Throughput & transparency• Supply/demand mgmt
• Enterprise Architecture & Solution Design rigour maximising reuse
Architecture Services
Testing Services • Optimise system test services, maximising automation
Strategy & Innovation Services
Digital Application Delivery Services
Application MaintenanceServices
Common EM IT Operating Model – Digital COE
18
CSC
Manila ADC
• Solution Design
• Application Development
• Testing• Integration• Maintenance
LATAM
• Business Change
• Requirements
Measured By
1
Innovating Our Delivery Model
19
INSURANCE SERVICES
Convenience,Tailored to my lifestyle,
Fairer premiums
CUSTOMER PERSONA & NEEDS
CONTEXT & FEEDBACK
TOUCH POINTS & BEHAVIOURS
CUSTOMER JOURNEY&
UX DESIGN
2
Innovating Our Delivery Model
20
Idea
Wireframe
Working design
Prototype
Test and iterate
Project initiation
Rollout
Time / Effort
Agile Innovation
IndustrializedProject Delivery
12 weeks
Management decision
Sco
pe Innovation is a short pre-cursor to a project
2
Innovation is a Short Pre-cursor to a Project
Innovating Our Delivery Model
21
1Discover
Discover opportunities
2Ideate
Envision future
3Validate
Prototype & test
4Evaluate
Business case for
investment
▶ Run innovation cycle▶ Crowd source shortlist
▶ Crowd sourced refinement
▶ Formation of teams
▶ ▶ ▶
▶ Build prototypes▶ Test ideas▶ Customer Focus Groups
▶ Develop business case▶ Showcase▶ Seek investment
4 weeks 2 weeks 4 weeks 2 weeks
5Execute
Hand over to project delivery
▶
▶ Sponsorship for Project initiation
2
Our Innovation Process
Innovating Our Delivery Model
22
TOOLSVALUE (KPI’s)STRATEGIC THEME
SHOULD WE DO IT CAN WE DO IT
DO-ABILITY
Java / HTML5
Cloud
Analytics
GWP Growth
Productivity
Retention
BPM / MobileNCOR
Efficiency
NPS Integration / APIs
Sales & UW Excellence
Customer ServiceExcellence
Claims & Risk Excellence
Operations Excellence Agile Methods
Speed to market
Cost (MVP)
People / Partners
Skills
2
Our Ideation Assessment Framework: By [providing this service] for [these customers] will result in [this outcome]. We will know this is true when [this metric is met].
Innovating Our Delivery Model
23
2
Delivering with Geographically Dispersed Project Teams
Latin America Asia Pacific
P E G A
• Continuous innovationP I L O T
Architect for Reuse: Reduce TCO, Increase Agility
• 8 years of intellectual property from QBE Australia QUW. Reused across entire Australian (& offshore) business
Q B E S M A R T Q ( P e g a 7 )
Q B E Q U W A N Z O
L ATA M A S I A
M Y SA R G E N T I N A S GC O L O M B I A• Configure by
Regulatory, channel & core integration
P H H K
Spec
ializ
atio
nR
euse
• Language e.g., Spanish
• EM Pega 7 Common rules & processes
3
QBE’s Enterprise Architecture: Situational Layer Cake
24
25
Playbook Industrialization & Software Products
What We Will Cover Today…
26
• QBE Emerging Market’s business challenge
• What we have achieved so far…
• How are we making it happen?
• Applying our lessons learnt• What’s next for us…
Lessons Learnt – Upgrading to V7
27
Upgrades
• Upgraded (internally) 4.2 -> 5.4 -> 6.2 -> 7.2• Previously high degree of UI customisation • Underlying processes and business rules retained• We now conform to OOB as a principle
V7 & Responsive UI
• Significant improvements in version 7• We chose to throw away the old UI• To take 100% advantage of the new responsive UI • Enhancing old screens or reversing customisation takes more effort
Training
• Training - massive paradigm shift in UI configuration • Effort lost in developer discovery• Developers need to relearn so they don't repeat past mistakes• Make use of more productive features e.g., Data pages
Sustained Profitable Growth
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GWP Growth Due to:• Increase in quote to new business rates• Increase in renewal retention• Increase in new business opportunities
due to improvements in broker/agent satisfaction scores (NPS)
Productivity Savings Due to:• Increase % time spent new business vs. admin• Increase in # transactions processed per staff• Increase in GWP underwritten per staff• Reduced stationary and storage costs• Reduced staff training time
US
$m
Investment
AnnualGWP uplift
Expense Savings
MYS
What Benefits Are We Seeing?
X 10X 2
Achieving Reuse Benefits
29
Cos
t (U
SD ’m
)
MYSAustralia
Reuse
Reuse of Assets and a Repeatable Delivery Process Are Key
… To Enabling the Business Case Emerging Markets Wide
SIN Ph
Playbook = x 14Reduction in cost
Benefits (U
SD ’m
)
Architecture = x 10Reduction in cost
Larger Markets drive upfront investment /
enhancements
Production Line = x 2-3 reduction is cost
due to scale
Tier 1 Markets
Tier 2 Markets
Tier 3 Markets
What We Will Cover Today…
30
• QBE Emerging Market’s business challenge
• What we have achieved so far…
• How are we making it happen?
• Applying our lessons learnt
• What’s next for us…
What’s next for Us (2016–17)?
31
ChannelsCustomers
EM Country IT & Operations
1. Customer Centric Omni-channel Service layer
2. QBrain – Integrated Customer & Business Intelligence Services
SalesForce.com Qnect – Customer Self service platform
Data Assets
3. SmartQ – Integrated Business Process Excellence layer
Core Insurance x 10
SmartQ – Business Process Management
Visualization
Contact Centre
Next Best Action
Pricing & Product Engine
CMS (Electronic File)
Enterprise SearchSingle Customer View
Customer Service CRM
Scanning & Indexing
Enterprise Service Bus Automation & Robotics
Underwriting & Policy Processing Claims Credit Control Document
Processing
Sales support - Mashup
Cloud
BAM & Non-bound $ Operational
TBA (recent acquisition)
MTP Agent Broker Bancassurance Customer / Claimant Browser Mobile
AppEmail /
MessagingSystems
B2B Social
Other
Pega
STP Services - Mashup Mobile
✓✓
GSSCManila
CebuColombia
Secure Integration
PegaAmazonCloud
DIGITAL COE
QBE COEs Sales, UW & Claims
SingaporeMiami
On the move! In-country CORE
INSURANCE(x10)
Asia Pacific Region(16 countries)
Latin American Region
(7 countries)
Referrals
Build & Deploy
Anywhere
SLAs
EXEC INSIGHT
Pega Cloud Pilot
32
Supporting Our Hub & Spoke Operations
Telematics
33
MobileSimple, Convenient, Relevant – Empowered
Next Best Action
34ES
B (o
ptio
nal)
Customer Touch Points
Best Action
Request
QNect (Pega Mashup/API)
Salesforce(Pega Mashup/API)
Contact Centers/IVR (Pega or 3rd Party)
Social Media
SmartQOperations Workbench
NBA AdvisorStandalone quick win UI
Real-time Analytics
Hola de Buenos Aires!
35
THANK YOU
QUESTIONS?
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