Improved Process Performance Using
                                   Accenture’s Performance Management
                 ...
Agenda


 Accenture in Profile


 Brief Overview of Enterprise Performance Management


 How Does Accenture’s Performance ...
Accenture in Profile

Accenture is a global management consulting, technology services, and outsourcing company. Striving ...
Agenda


 Accenture in Profile


 Brief Overview of Enterprise Performance Management


 How Does Accenture’s Performance ...
A Key Characteristic of Leading Insurance Companies Is a
Focus on Enterprise Performance Management (EPM)

EPM helps insur...
Insurance Companies Can Use Enterprise Performance
Management to Align Their Business with Strategic
Objectives
EPM is bas...
The Lean Six Sigma Method Clearly Demonstrates How
Efficiency and Quality Can Be Closely Aligned

 Lean – stands for the v...
An Ongoing Process of Improvement Requires a Valid and
Reliable Process Data Basis in Order to Define the Right
Improvemen...
Significant Value Is Created Through Sustainable
Management of Business Process Performance




  • 40% reduction in proce...
Agenda


 Accenture in Profile


 Brief Overview of Enterprise Performance Management


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


...
PMS Delivers Essential Information for Managing
Operational Business Processes
The Performance Management Solution (PMS) i...
Case study: ING Nationale Nederlanden
Operational Performance Management
                                                 ...
Agenda


 Accenture in Profile


 Brief Overview of Enterprise Performance Management


 How Does Accenture’s Performance ...
The Solution Covers the Entire Cycle, from Strategic
Planning to Implementation, Monitoring, and Control
Solution componen...
PMS Architecture Enables the Integration of Data Sources
from Operational Systems in All Company Areas


                 ...
PMS: Key Benefits

                          • PMS based on SAP NetWeaver BI builds on a solution that has been operated
 ...
Agenda


 Accenture in Profile


 Brief Overview of Enterprise Performance Management


 How Does Accenture’s Performance ...
Summary



 Insurance companies…                                  Accenture’s Performance
 • ... can significantly improve...
If You Have Any Questions, Please Do Not Hesitate to
Contact Us




                             Christian-Hendrik Noelle
...
SAP INTERNATIONAL FORUM FOR
   INSURANCE




   After the event, the presentations will be available at:
   www.sap.com/co...
Copyright 2008 SAP AG
 All rights reserved

 SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, ...
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Improved Process Performance Using Accenture's Performance ...

  1. 1. Improved Process Performance Using Accenture’s Performance Management Solution Based on SAP NetWeaver BI SAP International Forum for Insurance Leipzig, June 10, 2008 Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  2. 2. Agenda Accenture in Profile Brief Overview of Enterprise Performance Management How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry? Overview of PMS Summary © 2008 Accenture. All rights reserved. 2
  3. 3. Accenture in Profile 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. • Customers: Globally (as of January 2008) about 175,000 – 94 of the Fortune Global 100, more than two-thirds of the Fortune Global 500 Germany 4,282 Austria 237 – Over 4,000 public and private organizations with approx. 18,000 projects in the last five years Switzerland 459 • More than 175,000 employees in 49 countries, approx. 5,300 at six Austria, Switzerland, 4,978 Germany locations in Germany, Austria, and Switzerland • Established in 1989; annual revenue for the fiscal year ending Berlin August 31, 2007: U.S.$19.7 billion • Listed on the New York Stock Exchange (since July 19, 2001) Dusseldorf • Average global annual growth rate of 16% (for the past 16 years) Frankfurt Munich Vienna Zurich © 2008 Accenture. All rights reserved. 3
  4. 4. Agenda Accenture in Profile Brief Overview of Enterprise Performance Management How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry? Overview of PMS Summary © 2008 Accenture. All rights reserved. 4
  5. 5. 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) © 2008 Accenture. All rights reserved. 5
  6. 6. Insurance Companies Can Use Enterprise Performance Management to Align Their Business with Strategic Objectives EPM is based on a cycle of goal setting, planning, reporting, analysis, and definition of measures for improvement. Implement steps to enhance Define measures, budgets, processes and systems and guidelines for Plan implementing strategic objectives Strategy Strategic objectives Do Plans Control key figures Act Initiatives for Management improvement information Provide management with Manage daily operations Check information to assess performance based on activity planning and identify bottlenecks © 2008 Accenture. All rights reserved. 6
  7. 7. The Lean Six Sigma Method Clearly Demonstrates How Efficiency and Quality Can Be Closely Aligned 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 Initiatives for improvement Both approaches must be embedded in an ongoing process of improvement Six Sigma – stands for quality control aimed at minimizing variations in mission-critical processes. if they are to take root. Defining characteristics: • Identification of process variations • Analysis of check results • Monitoring of workload, backlogs, and lead times in relation to planned values © 2008 Accenture. All rights reserved. 7
  8. 8. An Ongoing Process of Improvement Requires a Valid and Reliable Process Data Basis in Order to Define the Right Improvement Initiatives A solution for process performance Plan management must support the following requirements: Strategie Strategy • A unified data basis for Strategic objectives Strategische Ziele process information Do • Clearly defined data Act Plans Planvorgaben Do structures • A flexible architecture and Control key figures Steuerungskennzahlen integration platform Act • A high degree of Verbesserungs- Initiatives for Management- Management scalability initiativen improvement informationen information • Easy integration • Usability Check © 2008 Accenture. All rights reserved. 8
  9. 9. Significant Value Is Created Through Sustainable Management of Business Process Performance • 40% reduction in process duration Cost • 20% reduced document creation reduction • 5% lower resource requirements • 60% shorter lead times Customer • 15% increase in customer satisfaction • 20% fewer complaints satisfaction • 10% higher process success rate • 2-10% growth in sales Sales • 20% increase in customer support growth capacity © 2008 Accenture. All rights reserved. 9
  10. 10. Agenda Accenture in Profile Brief Overview of Enterprise Performance Management How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry? Overview of PMS Summary © 2008 Accenture. All rights reserved. 10
  11. 11. Accenture’s Performance Management Solution (PMS) Integrates Seamlessly into the Lean Six Sigma Improvement Methodology Strategy and vision Strategic map PMS Objectives Value drivers Translation of Reporting strategy into Cause-effect relationship strategic maps Key figures and management cockpit Conversion of value drivers into key figures across several Improvement organizational levels Management initiatives Key figures cockpit Key figure management © 2008 Accenture. All rights reserved. 11
  12. 12. PMS Delivers Essential Information for Managing Operational Business Processes The Performance Management Solution (PMS) incorporates five functional areas: PMS is based on the principles of Lean Six Sigma and provides management with consistent information about process times. Working speed – Productivity – Overview of lead times and Portion of the processing workload time actually used for customer-oriented work Capacity planning – Demand-driven control of the availability of resources and skills Quality – Insights into error rates and Complaints – process success rates (number of Overview of customer error-free transactions) complaints © 2008 Accenture. All rights reserved. 12
  13. 13. Case study: ING Nationale Nederlanden Operational Performance Management The Challenge • In 2002, process information was widely dispersed within • Nationale Nederlanden is the largest insurance company Nationale Nederlanden. in the Netherlands. • A large backlog (of approximately 200,000 business • Nationale Nederlanden is part of the ING Group, a global transactions) had also built up at Nationale Nederlanden. financial services provider of Dutch origin. • Processing times were, on average, more than 60 days • ING provides banking, insurance, and asset management and, in some cases, were more than 300 days. services to more than 50 million private and corporate • As a result, operational costs rose in tandem with declining customers in 65 countries. customer satisfaction. The Solution Key Results • Nationale Nederlanden decided to implement a • A clear improvement in terms of quality, productivity, and performance management system to control processes in processing times thanks to: accordance with key objectives, namely: a high level of – Reports every two weeks to ensure consistent control of customer satisfaction, cost efficiency, and a profitable capacity and processing times product portfolio. – Weekly forecast of the expected workload for each team • The objectives were translated into key figures and the – Daily reports to track success and for capacity planning main influencing factors determined in a control model. • Regular review of objectives as part of the improvement • The necessary reports were defined on the basis of this process 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. © 2008 Accenture. All rights reserved. 13
  14. 14. Agenda Accenture in Profile Brief Overview of Enterprise Performance Management How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry? Overview of PMS Summary © 2008 Accenture. All rights reserved. 14
  15. 15. The Solution Covers the Entire Cycle, from Strategic Planning to Implementation, Monitoring, and Control Solution components • Overview of worklists, inputs and outputs, and lead times Working speed • 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 Productivity • 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 Quality • Support for a continuous process of improvement to reduce the error rate • Information about customer complaints and expectations Complaints • Key factor in sustaining long-term relationships with customers • Requirements planning based on experience Capacity • Helps management to monitor progress and to avoid capacity shortfalls and excess capacity situations Objectives • Defines target values for control key figures • Provides an overview of the most important key figures with target/actual comparisons Management cockpit • Helps management to handle trends and implement countermeasures © 2008 Accenture. All rights reserved. 15
  16. 16. PMS Architecture Enables the Integration of Data Sources from Operational Systems in All Company Areas Performance Management Solution Management cockpit Working Complaints Productivity Quality Capacity SAP speed NetWeaver Objectives Reqmnts BI planning InfoCubes InfoSources/InfoObjects DSO‘s Operational systems Core . systems Time Process Master data Complaints Quality recording management management management Example: SAP CATS Example: SAP WFM Example: SAP MDM Example: SAP CRM Example: SAP ERP Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16
  17. 17. PMS: Key Benefits • 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. © 2008 Accenture. All rights reserved. 17
  18. 18. Agenda Accenture in Profile Brief Overview of Enterprise Performance Management How Does Accenture’s Performance Management Solution Support EPM for the Insurance Industry? Overview of PMS Summary © 2008 Accenture. All rights reserved. 18
  19. 19. Summary Insurance companies… Accenture’s Performance • ... can significantly improve Management Solution… efficiency and quality by • …offers standard planning and implementing methods reporting functions, which can be such as Lean Six Sigma. modified to suit specific business • ...should support the requirements. Accenture’s implementation of a Performance • …is based on a proven performance management Management technology platform, which offers solution with a reporting Solution… extensive integration options that platform that provides fast, reduce TCO. high-quality information for • …includes a wide range of process control. predefined functions and tools to accelerate implementation. © 2008 Accenture. All rights reserved. 19
  20. 20. If You Have Any Questions, Please Do Not Hesitate to Contact Us Christian-Hendrik Noelle Senior Manager Accenture Campus Kronberg 1 61476 Kronberg, Germany Tel.: +49 6173 94-67056 Fax: +49 6173-94-47056 Cell: +49 175-57-67056 c.noelle@accenture.com © 2008 Accenture. All rights reserved. 20
  21. 21. SAP INTERNATIONAL FORUM FOR INSURANCE After the event, the presentations will be available at: www.sap.com/community/insurance2008 © SAP 2008
  22. 22. Copyright 2008 SAP AG All rights reserved SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede aufweisen. Alle Rechte vorbehalten. © SAP 2008

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