Ins analytics canada leveraging disruption - saporito - final

Leveraging Digital Disruption for Innovation

Pat Saporito, Sr. Director – BI, Global COE for Analytics, SAP

[email protected]

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal

Digital: 4th Wave of Info Technology

1850

Industrial

economy

2020

Digital

economy

1990

Internet

economy

IT

economy

1970

$0.36T

$12.10T

All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.

$27.50T

$90.0T

Gross

world

product


Living in a digital economy

90%of the world’s data

has been generated. 1

72%of insurers are forming new distribution partnerships2

212 Billion“Things” will be connected 3

The need to

automate

analytics

Connect

millions of

partners

Transform IoT

data into ‘pay

as you behave’

products

The need to

digitize

1 ScienceDaily, May 22, 2015 | 2 Accenture Digital Innovation Survey 20143 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC

43%of insurers plan to or have

acquired innovators/startups


Digital transformation is disrupting everything

75%Of B2B buyers use social

media in purchasing decisions

3.7XGrowth in global cloud

data traffic by 2020

21BConnected devices by 2020 Largest accommodation

provider owns no real estate

Most popular media

owner creates no content

Most valuable retailer

has no inventory

Will you disrupt or be disrupted?

People Data

ThingsProcesses

“Gartner Symposium/ITxpo 2015”; “IDC Social Buying Whitepaper 2014”; Cisco® Global Cloud Index (2015-2020)

http://www.cisco.com/c/en/us/solutions/service-provider/global-cloud-index-gci/index.html?CAMPAIGN=GCI+2015&COUNTRY_SITE=us&POSITION=Press+Release&REFERRING_SITE=PR&CREATIVE=PR+to+GCI+page&_ga=1.235145921.1903656987.1482186949


Insurance Industry Disrupters

Types

Peer to Peer Insurance

Usage Driven Insurance

Spot Insurance

Aggregators/Quote

Engines

Other…

More InsurTech Sources:

CB Insights InsureTech Blog

TechCrunch Insurance

4

http://www.cbinsights.com/blog/category/insurance-tech

https://techcrunch.com/tag/insurance/


Digitization is transforming all aspects of insurance

Wants to become the

world’s first peer-to-

peer property and

casualty insurance

provider

Offers a new type of

insurance to meet the

needs of those

affected by climate

change and adverse

weather conditions

Uses thousands of

analytic models to

classify and

underwrite risk, adjust

claims and help

improve member’s

health and wellness

Insurance Leaders need INSIGHTS to deliver on their vision and goals!


Race to InnovatePartner – Acquire - Invest


The Analytics Native

• Began as an analytics company; morphed into an insurer

• Acquired by Monsanto (seeds) for ~ $1 Bil.

• Bayer (insectide) recently made a $62 Bil. Bid for Monsanto!

200+ data scientists analyzing 50 terabytes of weather

data/day!

The Climate Corporation aims to help farmers around

the world protect and improve their farming operations

with uniquely powerful software and insurance products.

…proprietary technology platform combines hyper-local

weather monitoring, agronomic data modeling, and

high-resolution weather simulations to deliver

climate.com, a solution that helps farmers improve their

profits by making better informed operating and

financing decisions, and Total Weather Insurance, an

insurance offering that pays farmers automatically for

bad weather that may impact their profits.

Backed by Founders Fund, Khosla, Google

Ventures, NEA, Index Ventures and Atomico.

http://www.foundersfund.com/

http://www.khoslaventures.com/

http://www.googleventures.com/

http://www.google.com/

http://www.indexventures.com/

http://www.atomico.com/


The Innovator

!

Insurers are using

their venture capital

funds to invest in

innovation!

6


World Class Data & Analytics: Rarely Achieved

What we hear vs. what we see!


Data is the fuel and Analytics is the engine of Digital!In leading organizations, executives agree that…

Decision making is

distributed across

the organization

Decisions can be

mapped directly to

company strategies

Decisions are

data driven

Decisions are

made in real time

75% 78% 62% 62%

Source: “Leaders 2020 The Next-Generation Executive: How Strong Leadership Pays off in the Digital Economy,” Oxford Economics, 2016


Unlocking business value

from data – big or small

Creating an information

driven culture

– inside and outside

Maximizing the ROI of

BI investments

100101011010

Use Analytics

Today

Need Analytics

by 202075%

10%

Key Challenges

Increasing & Enabling Analytics Use

Capabilities Needed: Trusted Data, Data Integration, Change Management


Individual Customer Journey

13


Source: Accenture, “Everyday Bank”

Financial Services Digital Ecosystem

New Partners…. and Competitors!


Digital (R)EVOLUTION?

Extend the addressable market and

ecosystem

New digitally enabled

insurance products

Today Tomorrow

Core insurance business

New non-insurance offers

New digitally enabled

premium services

Core insurance business

Property & casualty insurance

Life insurance

Health insurance

Banking/Financial Services

Property & casualty insurance

Life insurance

Health insurance

Banking /Financial Services

Telematics e.g., Pay as you drive (PAYD); Pay as you live (PAYL)

Simple insurance

Context based offerings and next best offer (NBO)

Smart pricing

Micro/retargeting

Infotainment; gamification

More advanced digital sales support for brokers, agents & advisors

Vehicle road service; financial investment/coaching; health and

wellness management; home protection; et al.

Ecosystem/partner offers; auto tires/batteries; gym/health club;

home improvement; et al.

Use case examples

9


End to End Enterprise Analytics

Integrated Data WarehousingEmbedded Analytics

Real-time Platform | Advanced Analytics | Smart Data Integration

Lead the CloudDeliver new analytics capabilities,

built natively on HCP

Interoperability and Support for

Hybrid Scenarios

Innovate the CoreModern, at scale on-premise

deployments

Mobile FirstStunning interactive experience

Pre

dic

tive

On-premise | Cloud

Act in the moment!

Transform the outcome!

Innovate without

constraint!


Enterprise Analytics: Strategy to Execution

Execution

Feedback to

Strategy

Strategy

Link & AlignStrategy to Execution

Business Driven

Strategically Aligned

• Executive Business Sponsorship

• Analytics Governance

• Competency Center

• Information Architecture

• Technologies & Tools

• Sustained Funding

• Data Governance

• Trusted Data / Data Confidence

• User Training & Development Needs

• Increased User Adoption

• Increased Maturity

User Access & Usability

Improved Decisioning

Analytics

Strategy &

Roadmap

Corporate

Strategy

New Data /

Capabilities

Real Time

Analytics

Operational

Reporting

Exploration &

Visualization

Predictive

Analytics

Ad Hoc

Reporting

Corporate Data

Strategy &

Metrics

Performance

Management

Governance, Risk

& Compliance

Business Strategy

Analytics Strategy

Data Strategy


SAP Data & Analytics Strategy Framework

ObjectivesBusiness

Needs

Business

BenefitTechnology Organization

Background and

Purpose

Current State and

History

Objectives and

Scope

Summary of

Needs

Envisioned To-Be

State

Priorities and

Alignment

Value Proposition of

Analytics

Expected Benefits –

Future State KPI

Business Case

Information

Categories

Architecture and

Standards

Tools &

Applications

Governance

Structure

Program

Management

Roadmap and

Milestones

Measurement

Education /

Training

Support

• Digital must be part of the overall business-driven data & analytics

strategy

• Strategy is operationalized by a Competency Center


Digital Transformation Roadmap

• What does digital mean to

your organization? Your

customers? Your partners?

• How does digital relate to

your strategic

plans/initiatives?

• What are digital

Opportunities? Risks?

• Conduct pilot with existing /

new capabilities

• Test capabilities needed to

support pilot.

• Operationalize pilot

• Conduct next pilot

• Data management

• Analytics

• Data bases/ platform

• Business Processes

• Skills & Behaviors

• Agility

Define a Digital

Strategy

Review Digital

Capabilities &

Culture

Conduct a Pilot


Merci/Thank You!

Available on Amazon

Pearson /FT Press &

other channels in print

and/or digitally

Download 1st chapter

(industry overview) free

Patricia SaporitoSr. Director, BI

Global COE for Analytics

SAP Labs, LLC

New York, NY

+1 (201) 681-9671

[email protected]

Blog: www.patsaporito.com

Digital/Innovation Resources:SAP Digitalist! Blog www.digitalistmag.com/

SAP Analytics Strategy Self Assessment Tool https://sap-bi-strategy-assessment.com/(includes links to Strategy and BICC Best Practices ebooks)

Hasso Plattner Institute for Design Thinking at Stanford Univ. http://dschool.stanfor.edu/

https://www.amazon.com/Applied-Insurance-Analytics-Framework-Technologies/dp/0133760367/ref=sr_1_1?s=books&ie=UTF8&qid=1405435096&sr=1-1&keywords=applied+insurance+analytics

http://www.patsaporito.com/books/applied-insurance-analytics/

mailto:[email protected]

http://www.digitalistmag.com/

https://sap-bi-strategy-assessment.com/

http://dschool.stanfor.edu/