Improved Process Performance Using Accenture's Performance

Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Improved Process Performance Using Accenture’s Performance Management Solution

Based on SAP NetWeaver

BISAP International Forum for Insurance Leipzig, June 10, 2008

© 2008 Accenture. All rights reserved. 2

Agenda

Summary

Overview

of PMS

How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry?

Brief Overview of Enterprise Performance Management

Accenture in Profile


•

Customers: –

94 of the Fortune Global 100, more than two-thirds of the Fortune Global 500

–

Over 4,000 public and private organizations with approx. 18,000 projects in the last five years

•

More than 175,000 employees in 49 countries, approx. 5,300 at six locations in Germany, Austria, and Switzerland

•

Established in 1989; annual revenue for the fiscal year ending August 31, 2007: U.S.$19.7 billion

•

Listed on the New York Stock Exchange (since July 19, 2001)•

Average global annual growth rate of 16% (for the past 16 years) Frankfurt

Munich

Dusseldorf

Berlin

ViennaZurich

Globally (as of January 2008) about

175,000

Austria, Switzerland, Germany

4,978Switzerland 459

4,282GermanyAustria 237

Accenture is a global management consulting, technology services, and outsourcing company. Striving to deliver innovation, Accenture works with clients to enhance their performance. With extensive industry and business process expertise, global resources, and a proven track

record, Accenture can mobilize the right people, skills, and technologies to help customers improve performance.



Agenda

Summary

Overview

of PMS





A Key Characteristic of Leading Insurance Companies Is a Focus on Enterprise Performance Management (EPM)

EPM helps insurance companies to:•

Implement corporate strategy at strategic and operational levels•

Create transparency in business-critical processes•

Manage and optimize business performance•

Analyze key value drivers and their interdependencies

“By implementing EPM methods, leading companies can achieve a 2.95% increase in total return on assets and a 5.15% higher return on equity However, only 23% of the companies examined in this study actually achieved these results.”

(Harvard Business Review study)


Implement steps to enhance processes and systems

Provide management with information to assess performance and identify bottlenecks

Define measures, budgets, and guidelines for implementing strategic objectives

Manage daily operations based on activity planning

Strategy

Strategic

objectives

Plans

Control

key

figures

Management information

Initiatives for

improvement

Act

Do

Check

Plan

Insurance Companies Can Use Enterprise Performance Management to Align Their Business with Strategic ObjectivesEPM is based on a cycle of goal setting, planning, reporting, analysis, and definition of measures for improvement.


Both approaches must be embedded in an ongoing process of improvement if they are to take root.

Initiatives for

improvement

Lean –

stands for the value-oriented optimization of processes by eliminating process steps that do not add value.Defining characteristics:•

Demand-driven optimization of team strengths and skills•

Validated insights into process quality thanks to strict monitoring•

Identification of excess capacity and shortfalls and the consequences of each•

Control of the improvement process with an extensive set of key figures•

Monitoring of progress in relation to planning

Six Sigma –

stands for quality control aimed at minimizing variations in mission-critical processes.Defining characteristics:•

Identification of process variations•

Analysis of check results•

Monitoring of workload, backlogs, and lead times in relation to planned values

The Lean Six Sigma Method Clearly Demonstrates How Efficiency and Quality Can Be Closely Aligned


•

A unified data basis for process information

•

Clearly defined data structures

•

A flexible architecture and integration platform

•

A high degree of scalability

•

Easy integration•

Usability

A solution for process performance management must support the following requirements:

Strategische Ziele

Planvorgaben

Steuerungskennzahlen

Management-

informationen

Verbesserungs-

initiativen

Check

Plan

DoAct

Strategie Strategy

Strategic

objectives

Plans

Control

key

figures

Management information

Initiatives for

improvement

Act

Do

Check

Plan

An Ongoing Process of Improvement Requires a Valid and Reliable Process Data Basis in Order to Define the Right Improvement Initiatives


Costreduction

Salesgrowth

Customersatisfaction

•

40% reduction in process duration•

20% reduced

document

creation•

5% lower

resource

requirements

•

15% increase in customer satisfaction•

10% higher process success rate

•

2-10% growth in sales•

20% increase in customer supportcapacity

•

60% shorter

lead

times•

20% fewer

complaints

Significant Value Is Created Through Sustainable Management of Business Process Performance


Agenda

Summary

Overview

of PMS





Translation of strategy into strategic maps

Strategic

map

Cause-effect

relationship

Value

driversObjectives

Strategy

and vision

Improvementinitiatives

Conversion of value drivers into key figures across several organizational levels

Key figure

management

Key figures and management cockpit

Reporting

PMS

Key figures Management cockpit

Accenture’s Performance Management Solution (PMS) Integrates Seamlessly into the Lean Six Sigma Improvement Methodology


PMS is based on the principles of Lean Six Sigma and provides management with consistent information about process times.

Working speed

–Overview of lead times and workload

Productivity

–Portion of the processing time actually used for customer-oriented work

Complaints

–Overview of customer complaints

Quality

–Insights into error rates and process success rates (number of error-free transactions)

Capacity planning

–Demand-driven control of the availability of resources and skills

The Performance Management Solution (PMS) incorporates five functional areas:

PMS Delivers Essential Information for Managing Operational Business Processes


Key Results•

A clear improvement in terms of quality, productivity, and processing times thanks to:–

Reports every two weeks to ensure consistent control of capacity and processing times

–

Weekly forecast of the expected workload for each team–

Daily reports to track success and for capacity planning•

Regular review of objectives as part of the improvement process

The

Challenge•

In 2002, process information was widely dispersed within Nationale

Nederlanden.•

A large backlog (of approximately 200,000 business transactions) had also built up at Nationale

Nederlanden.•

Processing times were, on average, more than 60 days and, in some cases, were more than 300 days.

•

As a result, operational costs rose in tandem with declining customer satisfaction.

The

Solution•

Nationale

Nederlanden

decided to implement a performance management system to control processes in accordance with key objectives, namely: a high level of customer satisfaction, cost efficiency, and a profitable product portfolio.

•

The objectives were translated into key figures and the main influencing factors determined in a control model.

•

The necessary reports were defined on the basis of this control model.

•

The application was firstly developed on the Microsoft.NET

platform with MS SQL as the database system. Accenture then developed the solution based on SAP NetWeaver

BI as a business packaged solution, which was delivered to Nationale

Nederlanden

at the end of 2007.

•

Nationale

Nederlanden

is the largest insurance company in the Netherlands.

•

Nationale

Nederlanden

is part of the ING Group, a global financial services provider of Dutch origin.

•

ING provides banking, insurance, and asset management services to more than 50 million private and corporate customers in 65 countries.

Operational Performance Management

Case

study: ING Nationale Nederlanden


Agenda

Summary

Overview

of PMS





•

Overview of worklists, inputs and outputs, and lead times•

Information about bottlenecks and variations in the process flow•

Enables demand-driven optimization of team sizes and skills

•

Insight into the efficiency of operational processes•

Information about the time invested in value-driving activities•

Productivity key figures to analyze employee or team performance

•

Insight into the quality of process handling•

Support for a continuous process of improvement to reduce the error rate

•

Information about customer complaints and expectations•

Key factor in sustaining long-term relationships with customers

•

Requirements planning based on experience•

Helps management to monitor progress and to avoid capacity shortfalls and excess capacity situations

•

Provides an overview of the most important key figures with target/actual comparisons•

Helps management to handle trends and implement countermeasures

•

Defines target values for control key figures

Working

speed

Productivity

Management cockpit

Quality

Complaints

Capacity

Objectives

Solution components

The Solution Covers the Entire Cycle, from Strategic Planning to Implementation, Monitoring, and Control

Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16

Performance Management Solution

Operational systems

Master dataTime recording

Quality

management

Complaints

management

Process

management

DSO‘s

InfoSources/InfoObjects

InfoCubes

Management cockpit

Working

speed Complaints Productivity Quality Capacity

.

Example: SAP WFMExample: SAP CATS Example: SAP CRM Example: SAP ERPExample: SAP MDM

SAP NetWeaver

BI

Core

systems

Objectives Reqmntsplanning

PMS Architecture Enables the Integration of Data Sources from Operational Systems in All Company Areas


•

PMS based on SAP NetWeaver

BI builds on a solution that has been operated successfully for several years, with functions that cover the entire spectrum of tasks under the heading of EPM.

•

The SAP NetWeaver

platform lowers TCO and reduces risks.•

The solution facilitates the implementation of sustainable EPM methods, such as Lean Six Sigma.

•

Implementation is faster and less expensive with SAP standard planning and reporting functions.

•

All documents required to implement and modify PMS are delivered

as standard (activation guide, overview documents, functional and technical designs, test documentation, training material).

•

23 main reports, with over 100 views, were predefined based on a

Lean Six Sigma implementation.

PMS: Key Benefits


Agenda

Summary

Overview

of PMS





Insurance companies…•

... can significantly improve efficiency and quality by implementing methods such as Lean Six Sigma.

•

...should support the implementation of a performance management solution with a reporting platform that provides fast, high-quality information for process control.

Accenture’s Performance Management Solution…•

…offers standard planning and reporting functions, which can be modified to suit specific business requirements.

•

…is based on a proven technology platform, which offers extensive integration options that reduce TCO.

•

…includes a wide range of predefined functions and tools to accelerate implementation.

Accenture’s

Performance Management Solution…

Summary


Christian-Hendrik NoelleSenior Manager

Accenture Campus Kronberg 161476 Kronberg, GermanyTel.:

+49 6173 94-67056Fax:

+49 6173-94-47056 Cell: +49 [email protected]

If You Have Any Questions, Please Do Not Hesitate to Contact Us

mailto:[email protected]

© SAP 2008

SAP INTERNATIONAL FORUM FOR INSURANCE

After the event, the presentations will be available at: www.sap.com/community/insurance2008

© SAP 2008

Copyright 2008 SAP AG All rights reserved

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