Insurance
  Trends
Agenda


• CEO Survey

• Changing the Game

• New Media

• Technology

• Customer reference

• Next steps
We spoke to 1,130 CEOs and conducted in-depth analysis to
determine the characteristics of the Enterprise of the Future


...
Core Traits of the Enterprise of the Future


1.   Hungry for change
2.   Innovate beyond customer imagination
3.   Global...
Hungry for Change
Although CEOs are more confident about managing
change, their capability and the challenge ahead is
           Although CE...
CEOs can no longer focus on a narrow set of
challenges and intend to manage a broader agenda
and greater uncertainty
     ...
Companies that delivered higher revenue growth
managed change more successfully

                  Underperformers**      ...
2. Thinking beyond customer imagination
CEOs see even more potential with informed and
 collaborative customers and are rapidly increasing
 their investment there...
Outperformers plan to increase their investment in
 informed and collaborative customers by 36% over
 the next 3 years – t...
3. Globally Integrated
Global integration approach


                                                Outperformers                           Unde...
4. Disruptive by Nature
Across the globe, a full two-third of all CEOs plan to
be engaged in some form of business model
innovation over the next ...
Within the various business models, CEOs plan to
implement distinct initiatives


                 Enterprise Model       ...
5. Genuine, not Generous
The only three external forces consistently rising on
CEOs agendas are all linked to Corporate Social
Responsibility
     ...
Majority of CEOs see CSR as an opportunity, not a
 threat, and plan to significantly invest in CSR to
 integrate with soci...
Core Traits of the Enterprise of the Future

       Core Traits of the Enterprise of the Future


                        ...
Changing the Game
Changing the Game: Goldcorp Inc


 • Yr2000, Strikes, debt,   • 100 targets identified
   high production costs,   • 80%+ ...
Changing the Game: Lego

 • Assembled 4 enthusiasts
 • Ideas on new sensors,
   redesigned input ports,
   and stabilized ...
Do you stand out?
“The purpose of the business is to create a customer”
                                                Peter F
Drucker
Questions

• What are the attributes of Generation X
• How do you communicate with them?

• What are the attributes of Gen...
Who are
          we / will we
          be dealing
            with?
35% of all teen girls blog
54% of wired girls post p...
Core Traits of the Enterprise of the Future
          Some insights about generational diversity
                     “You...
Core Traits of the Enterprise of the Future

      How do we find out about our customers?
How Weyou ask them?
    do ask them
1. People post their ideas on a topic
2. Others can vote on their agreement
   or disagreement with the idea by
   quot;pr...
Rant and Rave: Zuzzid
Core Traits of the Enterprise of the Future

               “Why do you engage customers?”
         ...
Innovation starts at Home
Innovating with our customers
               Innovation Jam 2006
Innoation Jam 2006
    Over two 72-hour periods, more tha...
Innovation with our friends…
        Innovating with our customers
             Innovation Jam 2008
Core Traits of the Enterprise of the Future

       Core Traits of the Enterprise of the Future


                        ...
Core Traits of the Enterprise of the Future

              Enterprise of the Future process

    •   Interview CEOs
    • ...
Innovation Jam - you can have one too


        Product Innovation                                                        ...
New Media

We understand demographics
We understand our customers
We understand what they want?
Video: How many friends do you have?
Web 2.0

       Guru
“Web 2.0 is the
business revolution in
                                  Me
the computer industry
cau...
Core Traits of the Enterprise of the Future

                     Blog: ING in Asia Pacific




                     http:...
Generational Website: Royal Bank of Canada
Peer-2-Peer
       Lending
•   Cuts out the middleman
•   Better response times
•   More user friendly
•   Supports our co...
Peer 2 Peer Insurance?




                http://www.peertopeerinsurance.com/public/friends.php
Finance in Facebook
Is it worth the investment?
Is it worth the investment?
Is it worth the investment?
Is it worth the investment?
Is it worth the investment?
Training and
    Games
“The Metaverse”
What does IBM do in this
       space?
         Internally
          Product
    Externally – Blue 2.0
W3 - today
W3 – Next (today)
2
1




    3

            Bluepages

    4
W4 - Research
Productisation of w3/w4
                 Lotus Connections
                                     Expanded
                 ...
Health of Social Network
New Media
                        Solutions




Think about other industries and how
           they do things
Next?
Can I help?


Chris Sparshott
(Sparkbouy)
chris@chrissparshott.com

Portfolio
http://www.slideshare.net/sparkbouy/slidesho...
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Insurance Trends

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A client preso for the insurance industry. High level with charts to prompt discussion on external access to insurance services.

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Insurance Trends

  1. 1. Insurance Trends
  2. 2. Agenda • CEO Survey • Changing the Game • New Media • Technology • Customer reference • Next steps
  3. 3. We spoke to 1,130 CEOs and conducted in-depth analysis to determine the characteristics of the Enterprise of the Future CEO Survey What is the Enterprise of the future?
  4. 4. Core Traits of the Enterprise of the Future 1. Hungry for change 2. Innovate beyond customer imagination 3. Globally integrated 4. Disruptive by nature 5. Genuine, not just generous
  5. 5. Hungry for Change
  6. 6. Although CEOs are more confident about managing change, their capability and the challenge ahead is Although CEOs are more confident about managing change, the gap between their capability and the challenge ahead is growing growing The Change Gap* Triples 2006 2008 8 % CHANGE 22 %CHANGE GAP* GAP* 13% 12% 6% 19% 11% “We have seen more change in 22% 31% the last ten years than in the 83% 20% previous 90.” Ad J. Scheepbouwer, CEO, KPN 65% 61% Telecom 57% Change Needed Past Change Success No/limited Change No/limited Success Moderate Change Moderate Success Substantial Change Successful Change Needed Past Change Change Needed Past Change Success Success
  7. 7. CEOs can no longer focus on a narrow set of challenges and intend to manage a broader agenda and greater uncertainty External Forces Impacting the Organization Market factors 84% 67% 48% People skills 42% 44% 48% Macroeconomic factors 41% 35% Globalization Regulatory concerns Technological factors 33% Socioeconomic factors Environmental factors Geopolitical factors 2004 2006 2008 Source: IBM Global CEO Study 2008; n (2004) = 403, n (2006) = 760, n (2008) = 1130
  8. 8. Companies that delivered higher revenue growth managed change more successfully Underperformers** Outperformers** 29 4% % CHANGE GAP* 19 % CHANGE GAP* 24% 5% 17% 13% 10% CEOs of organizations with outperforming revenue growth are 85% 83% 17% more confident about their ability to 22% implement change 66% 54% Change Needed Past Change Success No/limited Change No/limited Success Moderate Change Moderate Success Substantial Change Successful Change Needed Past Change Change Needed Past Change Success Success * Dif ference or ‘gap’ betw een expected level of change needed and past success in managing change ** Performance based on industry comparisons w ithin Source: IBM Global CEO Study 2008; n (underperformers) = 173, n (outperformers) = 164 survey sample of revenue CAGR 2003 to 2006
  9. 9. 2. Thinking beyond customer imagination
  10. 10. CEOs see even more potential with informed and collaborative customers and are rapidly increasing their investment there Rise of the informed and collaborative customer Negative impact No impact 10% 22 % INCREASE 20.4% 14% 16.7% Positive impact Investment* past 3 Investment* next 3 76% years years “The rise of the informed and knowing consumer will “We must redefine our value proposition to continue to have an impact regarding our go-to- customers. Information and advisory content market priorities. We must know how to leverage are becoming even more valuable than new media. We've been surprised by the impact that traditional drivers.” just a few consumers can have with their blog H. Edward Hanway, Chairman & CEO, CIGNA Corp. entries.” Source: IBM Global CEO Study 2008, n = 609; * Total investments: all asset investments + all investments in R&D, marketing and sales Rob Hurlbut, CEO, Attune Foods
  11. 11. Outperformers plan to increase their investment in informed and collaborative customers by 36% over the next 3 years – the time is now Investment in the rise of the informed and collaborative customer Underperformers** Outperformers** 14 % INCREASE 24% 36 % INCREASE 21% 19% 14% Investment* past 3 Investment* next 3 Investment* past 3 Investment* next 3 years years years years “In the future, we will be talking more and more about the ‘prosumer’— a consumer/ producer who is even more extensively integrated into the value chain. As a consequence, production processes will be customized more precisely and ** Performance based on industry comparisons w ithin individually.” survey sample of net profit margin CAGR 2003 to Hartmut Jenner, CEO, Alfred Kärcher GmbH Source: IBM Global CEO Study 2008; n = 167; * Total investments: all asset investments + all investments in R&D, marketing and sales 2006
  12. 12. 3. Globally Integrated
  13. 13. Global integration approach Outperformers Underperformers Actively enter new markets Defend your core Deeply change mix of capabilities, Maintain current mix of capabilities, knowledge and assets knowledge and assets Partner extensively Do everything in-house Globalize brands/products Localize brands/products Optimize operations globally Optimize operations locally Grow through mergers & acquisitions Grow organically Drive multiple cultures Strive for one culture Extensive Globalizers (n=230) Globalizers (n=246) Blended Thinkers (n=131) Localizers (n=140) Source: IBM Global CEO Study 2008
  14. 14. 4. Disruptive by Nature
  15. 15. Across the globe, a full two-third of all CEOs plan to be engaged in some form of business model innovation over the next three years Business Model Innovation Focus 69% Established Economy 69% 69% Emerging Economy* 29% 29% 30% 2% 2% 1% Limited/No Moderate BMI Strong BMI BMI Focus Focus Focus Limited/No Moderate BMI Strong BMI BMI Focus Focus Focus “When the business model is innovative, “All types of business model innovation are operations and the product will follow equally important; it's a matter of priorities.” automatically.” Stephane Bancel, CEO of Biomerieux Ronald de Jong, CEO Philips CL, Germany Source: IBM Global CEO Study 2008; n = 1106 * See appendix f or list of emerging economy countries
  16. 16. Within the various business models, CEOs plan to implement distinct initiatives Enterprise Model Revenue Model Industry Model Innovation Focus Innovation Focus Innovation Focus Collaboration is instrumental to drive Revenue Model innovators Industry Model Innovation Enterprise Model Innovation shift the value mix remains rare 91% 73% 71% 57% 56% 36% 36% 38% Work Within Focus on Intense New Pricing/Taxation Reconfigure Create Entirely Move Into New Redefine Organization Differentiating Collaboration Structures and Models Product/Service/Value New Industries Industries Existing Markets Activities with External Mix n = 234 Partners n = 369 n = 203 Source: IBM Global CEO Study 2008
  17. 17. 5. Genuine, not Generous
  18. 18. The only three external forces consistently rising on CEOs agendas are all linked to Corporate Social Responsibility External Forces Impacting the Organization “Our strong commitment to corporate sustainability will be a clear differentiator for us 48% 2004 with all stakeholders.” 44% 2006 42% Tom Johnstone, CEO, SKF 2008 “Our company is investing extensively in corporate social responsibility. We need to be a reference in this domain. As the leader of the luxury industry, we have to stay ahead.” Yves Carcelle, Chairman and CEO, Louis Vuitton 18% 17% 15% 12% 12% “I see corporate responsibility going through 9% three phases. People start to consider issues like the environment because they are compelled to do so. Then they realize that it actually makes business sense. Eventually Environmental Socioeconomic People Skills they move beyond compulsion Issues Factors and selfish motives to become passionate because it is the right thing to do.” Vinod Mittal, Managing Director, ISPAT Industries Source: IBM Global CEO Study 2008; n (2004) = 403, n (2006) = 760, n (2008) = 1130
  19. 19. Majority of CEOs see CSR as an opportunity, not a threat, and plan to significantly invest in CSR to integrate with society Increasing customer expectations of corporate social responsibility Negative 25 % INCREASE impact 13.4% 11% 10.7% No impact 20% Investment past 3 Investment next 3 years years Positive “The consumer’s concept of quality will no longer be impact measured by only the physical attributes of a product 69% — it will extend to the process of how the product is made, including product safety, environmental compliance and social responsibility compliance.” Victor Fung, Chairman, Li & Fung Source: IBM Global CEO Study 2008, n = 609; * Total investments: all asset investments + all investments in R&D, marketing and sales
  20. 20. Core Traits of the Enterprise of the Future Core Traits of the Enterprise of the Future IBM Solutions 1 2 3 4 5 Hungry Innovative Globally Disruptive Genuine, for beyond integrated by nature not just change customer generous imagination CEOs can now assess how ready they are for becoming the Enterprise of the Future.
  21. 21. Changing the Game
  22. 22. Changing the Game: Goldcorp Inc • Yr2000, Strikes, debt, • 100 targets identified high production costs, • 80%+ yielded substantial terminated mining gold operations • 8 million ounces = $3bn • $100 invested in 1993 • CEO Rob McEwen work $3000 today “Goldcorp Challenge” $575,000 prize • Exposed 400Mb 55,000 acre property of Geological data to the web
  23. 23. Changing the Game: Lego • Assembled 4 enthusiasts • Ideas on new sensors, redesigned input ports, and stabilized firmware • Contributed for free • Mindstorm v2 still sells 40,000 units a year at $199 a pop -- with no advertising -- and has become Lego's all-time best-selling product •http://www.wired.com/culture/lifestyle/news/2006/01/69946
  24. 24. Do you stand out?
  25. 25. “The purpose of the business is to create a customer” Peter F Drucker
  26. 26. Questions • What are the attributes of Generation X • How do you communicate with them? • What are the attributes of Generation Y How do you communicate with them?
  27. 27. Who are we / will we be dealing with? 35% of all teen girls blog 54% of wired girls post photos online 19% of boys have posted videos 39% share their own artistic creations online 26% of teens remix content 27% of teens maintain a personal webpage 28% of teens have created their own blog 33% of teens create or work on webpages or blogs for others http://www.pewinternet.org/pdfs/PIP_Teens_Social_Media_Final.pdf http://www.flickr.com/photos/14692968@N00/1351463530/
  28. 28. Core Traits of the Enterprise of the Future Some insights about generational diversity “Your customers” Generation Traditionalist Boomer Gen X Gen Y Born between… 1922 - 1945 1946 - 1964 1965 - 1976 1977 - 2000 Too much and I’ll Training The hard way Required to keep me Continuous & expected leave Collaborative & Learning style Classroom Facilitated Independent networked Communication style Top down Guarded Hub & Spoke Collaborative Problem-solving Hierarchical Horizontal Independent Collaborative Decision-making Seeks Approval Team informed Team included Team decided Command & Leadership style Get out of the way Coach Partner control No news is good Feedback Once per year Weekly / Daily On demand news Unable to work Unfathomable if not Technology use Uncomfortable Unsure without it provided Job changing Unwise Sets me back Necessary Part of my daily routine Lancaster, L.C. and Stillman, D. When Generations Collide: Who They Are. Why They Clash. How to Solv e the Generational Puzzle at Work. Wheaton, IL. Harper Business, 2003.
  29. 29. Core Traits of the Enterprise of the Future How do we find out about our customers?
  30. 30. How Weyou ask them? do ask them
  31. 31. 1. People post their ideas on a topic 2. Others can vote on their agreement or disagreement with the idea by quot;promotingquot; or quot;demotingquot; it. 3. Comments can be provided to elaborate ones thoughts on the matter at hand. 4. Good ideas rise to the top, 5. Bad ideas fall to the bottom. 6. The comments will tell the story why an idea is good, bad or ugly.
  32. 32. Rant and Rave: Zuzzid Core Traits of the Enterprise of the Future “Why do you engage customers?” This is poor example • Zuzzid helps people help each other. • Let everyone know about your insurance experiences by leaving a Rant or a Rave. • Consumers can learn from each other’s experiences, leave advice or comments, agree or disagree, and get the discussion going. • Ask questions about insurance and get a general consensus from other users. • A price engine takes the cost of thousands of peoples’ insurance cover and uses this to figure out what other people like you pay.” Sources: http://www.listio.com/web20/story.php?title=Zuzzid http:// zuzzid.co.uk
  33. 33. Innovation starts at Home
  34. 34. Innovating with our customers Innovation Jam 2006 Innoation Jam 2006 Over two 72-hour periods, more than 150,000 people from 104 countries and 67 organizations came up with more than 46,000 new ideas. Out of all that collective intelligence, the best ideas were selected. IBM publicly committed up to $100M in seed money to their development. 3-D Internet Big Green innovations Banking for the Unbanked Digital Me Real-time Translation Services Electronic Health Record System & Healthcare Payment Intelligent Transportation System Real-Time Translation Services Simplified Business Engines
  35. 35. Innovation with our friends… Innovating with our customers Innovation Jam 2008
  36. 36. Core Traits of the Enterprise of the Future Core Traits of the Enterprise of the Future IBM Solutions 1 2 3 4 5 Hungry Innovative Globally Disruptive Genuine, for beyond integrated by nature not just change customer generous imagination
  37. 37. Core Traits of the Enterprise of the Future Enterprise of the Future process • Interview CEOs • Analyse information • Initiate Innovation Jam • Create blueprint for change • Gain competitive advantage for IBM, its partners and it’s customers • (Game changing process)
  38. 38. Innovation Jam - you can have one too Product Innovation Services Innovation Customizing services (instead of Developing and bringing to market one-size-fits-all) and lowering prices products that stand out in feature, Product Services (by beating competitors who are not function cost, availability… all in the Innovation Innovation capitalizing on new tools of right place at the right time innovation) in order to distinguish and deliver high value Policy & Society Innovation Addressing the broader Business Process Innovation implications of innovation – for privacy, piracy, digital Conceiving, implementing, rights, intellectual property, integrating and managing global trade, etc. – and Policy & innovation Business an organization’s business creating breakthrough Society that Process processes (supply chain, innovations in these areas Innovation matters Innovation CRM, HR, product and shaping broad societal development, etc.) for frameworks competitive differentiation Management & Culture of Innovation Business Model Innovation Creating and maintaining new behaviors and organizational Re-conceptualizing the fundamental structures to become the company design of a business through the use Management Business of innovation tools and collaborative that can constantly create game- & Culture of Model changing products/services approaches Innovation Innovation
  39. 39. New Media We understand demographics We understand our customers We understand what they want?
  40. 40. Video: How many friends do you have?
  41. 41. Web 2.0 Guru “Web 2.0 is the business revolution in Me the computer industry caused by the move to Interaction the Internet as a Technology Styles platform, and an Anyone attempt to understand Change the rules for success “Socially on that new platform.” Solutions Constructed Tim O’Reilly Media and Communication” Participation
  42. 42. Core Traits of the Enterprise of the Future Blog: ING in Asia Pacific http://www.ingblogs.com/mycupofcha/?p=82
  43. 43. Generational Website: Royal Bank of Canada
  44. 44. Peer-2-Peer Lending • Cuts out the middleman • Better response times • More user friendly • Supports our communities • Feels good to lend to people rather than a savings account • Delivered in a well known interface e.g. On-line auctions • Fewer costs – No branch, – fewer staff – Less infrastructure (initially)
  45. 45. Peer 2 Peer Insurance? http://www.peertopeerinsurance.com/public/friends.php
  46. 46. Finance in Facebook
  47. 47. Is it worth the investment?
  48. 48. Is it worth the investment?
  49. 49. Is it worth the investment?
  50. 50. Is it worth the investment?
  51. 51. Is it worth the investment?
  52. 52. Training and Games “The Metaverse”
  53. 53. What does IBM do in this space? Internally Product Externally – Blue 2.0
  54. 54. W3 - today
  55. 55. W3 – Next (today)
  56. 56. 2 1 3 Bluepages 4
  57. 57. W4 - Research
  58. 58. Productisation of w3/w4 Lotus Connections Expanded customized profile data fields and views for your organization Identify, develop and maintain a professional network with colleagues Tag your colleagues and easily find them, search on them, and keep in touch Aggregate team with them data 61
  59. 59. Health of Social Network
  60. 60. New Media Solutions Think about other industries and how they do things
  61. 61. Next?
  62. 62. Can I help? Chris Sparshott (Sparkbouy) chris@chrissparshott.com Portfolio http://www.slideshare.net/sparkbouy/slideshows Blog http://chrissparshott.com IBM chris_sparshott@nz.ibm.com
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