IT Innovation & Transformation Poised to strike deeper in a Changing Economy Ian Cook – CIO & Senior Vice President Chubb ...
Poised to Strike Deeper in a Changing Economy Chubb vs S&P 500 Economic data with permission Roman Scott, Managing Directo...
Certain Change
Uncertain Results
Certain Change
Uncertain Results
Certain Change
Uncertain Results
Certain change, uncertain results
But is there
Light
at the end of
The Tunnel?
…and then
Stock markets
Stock markets
Green shoots?
CDO Premier League Total $ USD 815 bn CDO Losses Source Bloomberg Feb 09
It Shrank
OECD Leading Indicators Source IMF & Calamander Group
Optimism & Denial Source IMF & Calamander Group
Exports as % GDP 185 % 94% 62 % 62 % 38 % 37 % 35 % 26 % Asia is more – not less – dependent on exports today than it was ...
However
Growth depends on people
This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its ...
This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its ...
Drivers of Change <ul><li>Business scalability </li></ul><ul><li>If eastern economies emerge stronger – from this recessio...
Hypothesis The Insurance value chain is composed of information and a series of information exchanges.  An insurance busin...
Drivers of Change Products Distribution Your traditional value Proposition may be based a product set through a single dis...
Drivers of Change Products Channels  x  2
Drivers of Change Products x  n… Channels  x  n… Prepare for adaptability in response to growing complexity
Response to complexity <ul><li>Growing complexity in response to market opportunity:- </li></ul><ul><ul><li>Business infra...
Operational excellence  IS  a strategy Brand Poor  SERVICE   Good Low  COST   High Low  COST   High
Operational excellence  IS  a strategy Growth Cumbersome  -  Adaptability -  Agile High  Productivity   Low High  Producti...
Operational excellence  IS  a strategy Expense High  -  Cost/Transaction -  Low High  Transactions/Staff   Low High  Trans...
Becoming Informed Profitability Poorly  -  Informed   -  Highly High -  Data Quality  - Low High -  Data Quality  - Low
IT Leadership The Road Less Traveled
Learning & Adaptive culture Credibility is a valuable currency in this cycle Conduct Situational analysis Define Strategic...
2008 ASEAN CIO Leadership Survey Operational performance Financial performance Sustainability performance Technology Archi...
ASEAN quotients of CIO excellence PQ Performance Quotient TQ Technology Quotient LQ Leadership Quotient
Leadership Challenge <ul><li>Oxymoron :  “IT and Business Alignment” </li></ul><ul><li>Where are the business decisions be...
Leadership challenge Ray Kurzweil – on the pace of progress   “ In the 19 th  century, we saw more progress (in technology...
Why is it… <ul><li>…  that so many senior business executives in our industry, plainly do not welcome discussions around t...
Step 1 Keep the shop front open and ready to do business Drive sustainable profitable growth Be clear on our Job Definitio...
Where is the mindset in your organisation? Not “Wrong” but not “Right” either “ A CIO’s biggest challenge?...  Cost Contro...
Step 2 No business person – worth his or her job – is going to want to talk to you until you can unequivocally prove the v...
Language barriers For example :-  Rather than talking about “Architecture” let us discuss how technology can support “An a...
Leadership challenge If,   as we suspect… Technology is not yet viewed for its strategic significance in the organisation,...
Step 3 Which Table? Have your “earned” your seat at that table? Talking the language of business Getting “A seat at the ta...
Step 4 <ul><li>If we are :- </li></ul><ul><ul><li>1 Talking the same language </li></ul></ul><ul><ul><li>2 Presenting cred...
Credibility Profile Trusted Advisor Budgets Escalation path Cost Perception IT “Up-Time” Automation Service Catalogue Sour...
Step 5 All decisions about the various coures of action required to support a strategy must be  owned  by the board – or a...
“Order Taking” !! * @@ * @ # !!! *** !! @ !!!!!  Bla bla bla bla bla bla Bla bla bla bla bla bla Bla bla bla bla bla bla
Step 6 I.T. and Business…. It’s ALL about People Destroy the order taking mentality Develop your people :–  Almost everyon...
“ Today and tomorrow’s CIO must lead like a CEO, analyse like a CFO and execute like a COO. It’s the hardest job in any la...
Thank you for your attention [email_address]
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Chubb Fst It Wealth Management V1

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IT Transformation &amp; &quot;IT Leadership - The Road Less Travelled&quot;

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  • We consider the “Information Economy” comprises all ICT, Information based businesses and all of the life sciences The Information Economy is growing as a share of the total global economy and will continue to do so. Global investment in ICT is increasing exponentially. Computational power is increasing exponentially. At one level, the Insurance value chain can be thought of as little more than a series of information exchanges; be they coverage terms, pricing, re-insurance and so forth. Is it therefore reasonable to assume that Insurance entities who gain mastery over information and the automated exchange of information – will be creating a sustainable competitive advantage?
  • Chubb Fst It Wealth Management V1

    1. 1. IT Innovation & Transformation Poised to strike deeper in a Changing Economy Ian Cook – CIO & Senior Vice President Chubb Insurance Group of Companies
    2. 2. Poised to Strike Deeper in a Changing Economy Chubb vs S&P 500 Economic data with permission Roman Scott, Managing Director Calamander Group and economic spokesperson for British Chamber of Commerce, Singapore
    3. 3. Certain Change
    4. 4. Uncertain Results
    5. 5. Certain Change
    6. 6. Uncertain Results
    7. 7. Certain Change
    8. 8. Uncertain Results
    9. 9. Certain change, uncertain results
    10. 10. But is there
    11. 11. Light
    12. 12. at the end of
    13. 13. The Tunnel?
    14. 14. …and then
    15. 15. Stock markets
    16. 16. Stock markets
    17. 17. Green shoots?
    18. 18. CDO Premier League Total $ USD 815 bn CDO Losses Source Bloomberg Feb 09
    19. 19. It Shrank
    20. 20. OECD Leading Indicators Source IMF & Calamander Group
    21. 21. Optimism & Denial Source IMF & Calamander Group
    22. 22. Exports as % GDP 185 % 94% 62 % 62 % 38 % 37 % 35 % 26 % Asia is more – not less – dependent on exports today than it was a decade ago
    23. 23. However
    24. 24. Growth depends on people
    25. 25. This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people” Craig Barrett, Intel 2004
    26. 26. This is your time BRIC G7 USD Trillion “ The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people” Craig Barrett, Intel 2004
    27. 27. Drivers of Change <ul><li>Business scalability </li></ul><ul><li>If eastern economies emerge stronger – from this recession </li></ul><ul><ul><li>Markets open up, buying habits change, maturity improves </li></ul></ul><ul><ul><li>At what point do we reach the “knee” of its growth trajectory? </li></ul></ul><ul><li>How much will change will we experience in economic norms? </li></ul>
    28. 28. Hypothesis The Insurance value chain is composed of information and a series of information exchanges. An insurance business entity makes informed decisions based upon quality information arising from reliable data. USA 19 OECDs incl. USA Percentage of non-residential gross fixed capital formation for ICT as % of total economy Source OECD.org
    29. 29. Drivers of Change Products Distribution Your traditional value Proposition may be based a product set through a single distribution channel
    30. 30. Drivers of Change Products Channels x 2
    31. 31. Drivers of Change Products x n… Channels x n… Prepare for adaptability in response to growing complexity
    32. 32. Response to complexity <ul><li>Growing complexity in response to market opportunity:- </li></ul><ul><ul><li>Business infrastructure must quickly adapt vertically and horizontally </li></ul></ul><ul><ul><li>Reduce time & cost to market for each new opportunity </li></ul></ul><ul><li>Our goal should be to build a scalable and repeatable business model + the supporting infrastructure, processes and people </li></ul>Simple Complex Agile Cumbersome Negative impact on expense and flexibility Positive impact on expense and flexibility
    33. 33. Operational excellence IS a strategy Brand Poor SERVICE Good Low COST High Low COST High
    34. 34. Operational excellence IS a strategy Growth Cumbersome - Adaptability - Agile High Productivity Low High Productivity Low
    35. 35. Operational excellence IS a strategy Expense High - Cost/Transaction - Low High Transactions/Staff Low High Transactions/Staff Low
    36. 36. Becoming Informed Profitability Poorly - Informed - Highly High - Data Quality - Low High - Data Quality - Low
    37. 37. IT Leadership The Road Less Traveled
    38. 38. Learning & Adaptive culture Credibility is a valuable currency in this cycle Conduct Situational analysis Define Strategic Choices & Vision Measure, Reward & Refine Execution Learn Focus Execute Adapt
    39. 39. 2008 ASEAN CIO Leadership Survey Operational performance Financial performance Sustainability performance Technology Architecture Technology performance ICT Skills Strategic Capability Employee Capability Governance Capability Leadership Quotient Technology Quotient Performance Quotient Permission 2008 ASEAN CIO Leadership Study The changing role of CIO: From Technology excellence To Business impact
    40. 40. ASEAN quotients of CIO excellence PQ Performance Quotient TQ Technology Quotient LQ Leadership Quotient
    41. 41. Leadership Challenge <ul><li>Oxymoron : “IT and Business Alignment” </li></ul><ul><li>Where are the business decisions being made? </li></ul><ul><li>It is a simple fact that :- One of the key differentiators between any two companies competing in the same space, is the extent to which the board recognises the strategic importance of technology to the agility of their business model and how this helps them to compete in any given market </li></ul>http://www.mckinseyquarterly.com/managing_it_support_interview_with_CIO_of_NetApp_2154 Even in the tech-friendly realm of Silicon Valley, IT leaders struggle to inspire the most senior executive group and their own IT people to :- Move beyond an order-taking mentality; by striving to : Genuinely understand the strategic needs of the business; and then : Proposing innovative solutions to solve strategic business problems. Marina Levinson – CIO NetApp
    42. 42. Leadership challenge Ray Kurzweil – on the pace of progress “ In the 19 th century, we saw more progress (in technology) than in the nine centuries preceding it. In the first 20 years of the 20 th century we saw more advancement than in all of the 19 th century. And we won’t experience 100 years of progress in the 21 st century – it will be more like 20,000 years of progress at the current rate” .
    43. 43. Why is it… <ul><li>… that so many senior business executives in our industry, plainly do not welcome discussions around technology? </li></ul><ul><li>Is I.T. perceived as a cost or a strategic imperative? </li></ul><ul><li>Is it fear? </li></ul>Strategy Managing capital Business model Markets Product & distribution Human capital Technology
    44. 44. Step 1 Keep the shop front open and ready to do business Drive sustainable profitable growth Be clear on our Job Definition :-
    45. 45. Where is the mindset in your organisation? Not “Wrong” but not “Right” either “ A CIO’s biggest challenge?... Cost Control.” Ian Campbell, CIO, British Energy, FT, 19 th September 2007 <ul><li>We Need to change mindsets at every level in our organisation </li></ul><ul><li>From a cost perspective to a VALUE perspective </li></ul><ul><li>For the CIO, it’s the question that never goes away: Can value methodologies really prove IT’s worth to the business? </li></ul><ul><ul><li>CIO, April 15 th 2007 </li></ul></ul><ul><li>Typically, IT value methodologies do not adequately measure, much less prove, technology’s value to the business. </li></ul><ul><ul><li>John Boochever </li></ul></ul>
    46. 46. Step 2 No business person – worth his or her job – is going to want to talk to you until you can unequivocally prove the value that has been achieved from an investment in technology Demonstrate credibility :-
    47. 47. Language barriers For example :- Rather than talking about “Architecture” let us discuss how technology can support “An adaptive and learning organisation” Every CIO, IT department manager, analyst, programmer, tester, help desk, IT operations staff, etc. etc. must adopt the language of business in order to describe and understand the true context of their endeavors Empathy Business Domain Strategy Growth Market Distribution Capacity Product Service Productivity Expense Profitability Business Model Customers IT Organisation Infrastructure Machines Architecture Security SOA BPM Web 2 SLA’s Bandwidth BI Project delivery Processes
    48. 48. Leadership challenge If, as we suspect… Technology is not yet viewed for its strategic significance in the organisation, there is a good chance that IT is not engaged early enough in the development of business strategy and thought leadership
    49. 49. Step 3 Which Table? Have your “earned” your seat at that table? Talking the language of business Getting “A seat at the table” :-
    50. 50. Step 4 <ul><li>If we are :- </li></ul><ul><ul><li>1 Talking the same language </li></ul></ul><ul><ul><li>2 Presenting credible data on the value generated from technology investments </li></ul></ul><ul><li>There is a good chance that we can bring our unique skills and experience to bear in providing technology solutions to strategic business problems </li></ul>Provide something meaningful :-
    51. 51. Credibility Profile Trusted Advisor Budgets Escalation path Cost Perception IT “Up-Time” Automation Service Catalogue Sourcing Options ROI Solution Availability Performance Metrics Policies Scenario Planning Predictive Analysis Portfolio Management Sourcing Strategy ROA Business Agility Dashboard Compliance Impact on Business Accepted Colleague Critical Resource
    52. 52. Step 5 All decisions about the various coures of action required to support a strategy must be owned by the board – or at least in the most senior executive group that we have in our organisation This clearly includes decisions around technology investments Move Technology Investment Decisions outside of IT :-
    53. 53. “Order Taking” !! * @@ * @ # !!! *** !! @ !!!!! Bla bla bla bla bla bla Bla bla bla bla bla bla Bla bla bla bla bla bla
    54. 54. Step 6 I.T. and Business…. It’s ALL about People Destroy the order taking mentality Develop your people :– Almost everyone in your IT organisation will need some degree of leadership competency
    55. 55. “ Today and tomorrow’s CIO must lead like a CEO, analyse like a CFO and execute like a COO. It’s the hardest job in any large organisation” John Ruggero, a Vice-President of Gartner EXP Today’s CIO
    56. 56. Thank you for your attention [email_address]

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