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Chubb Fst It Wealth Management V1


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IT Transformation & "IT Leadership - The Road Less Travelled"

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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
  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> 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]