Executive sponsorship and stakeholder involvement ensure successful and rapid migration of business processes from a company to an outsourcing partner like AAA Business Services. AAA advocates accelerated migration for greatest benefits to the customer through strategic partnerships focused on people, processes, technology, and commercial disciplines. Critical success factors include effective project teams, appropriate training, constant communication, selecting the right processes, and delivering continuous improvement after migration.

1. AAA
Business Process Transitions &
Reengineering

2. 2
Critical Success Factors for Migration
•Mobilising joint project team
•Preparing and delivering the appropriate training
•Constant communication
•Selecting the right processes
•Re-engineering the process for remote working
•Delivering continuous improvement post migration
•Developing and testing an effective technical solution
•Thorough testing pre migration
•Full BCP/DRP
•Strong executive sponsorship
•Structured outsourcing methodology
•Partnership model with customer
•Accelerated migration for greater benefits
•Consistent service delivery
•Stakeholder management
•Process improvements for “discontinuous benefits”
•Constant monitoring of performance to effect mid-course corrections
AAA Business Services advocates accelerated migration for greatest benefits to the customer. The right
people, processes, systems, strategy and a strategic sourcing partnership based on commercial
disciplines are essential for successful migration.
Ongoing
Perfromance
Strategy
Technology
Process
People

3. 3
From Concept to Delivery…..
Feasibility
Study
Migration
Service
Delivery
• Identification of
outsourcing opportunities
• Detailed Operations, IT,
Financial feasibility
• Training of personnel
and IT implementation
• Monitoring performance and
ongoing process
improvements
Opportunity
Identification
AAA Sales Pitch to
Customer & outsourcing
concept
Identify processes that
can be out-sourced at a
high level and the need
to be examined further
Sign -off for Feasibility
Study/Solution Design
stage
Detailed analysis of
processes and
interdependencies
Process Mapping
Technology linkage
Proof of Concept
Firm costs, savings &
Benefit estimation
Sign off for Migration
Design Operating Model
Training of AAA
personnel on client
processes
Implementation of
technology infrastructure
for remote processing
Validation of Process &
Productivity metrics.
Service Level Agreement
BAU at AAA.
Process is monitored on
the basis of customer
defined Service levels
Customer Feedback
Ongoing process
improvements at AAA
Ongoing training and
knowledge management
BSG Project Manager
+ IT
Project Manager + IT
Project +Operations
Manager
Process Owner + Project
Manager
Operations Manager
Process Owner
BD + BSG
Biz Leaders/ AAA
Relationship
AAA
Client
Stages
Activities
Involvement
4 – 6 months

4. 4
Executive sponsorship and stakeholder involvement ensure
successful and rapid migration
Strategic Partnership
Company-wide SponsorCompany-wide Sponsor
Steering Group (Joint Team)Steering Group (Joint Team)
Decides business requirementsDecides business requirements
Strategic
Considerations
Migration
Methodolog
y
Tactical
Considerations
Departmental
Resources
Project
Manager
Central
Project Team
Champions and Business
Facilitator
AAA Transition Resources
Functional Experts -
Training, IT
Scoping
Design
Implementation
Delivery
AAA Operations Team
Day to day operations
Management TeamManagement Team
SLA
Reviews
Continuos
improvement

5. 5
Analysing Processes
Complexity
 Extent of manual calculations
 Definitive work procedures/ rule sets
 Number of variations to standard process
 Extent of supervisor/ technical expert involvement
 Time criticality
 Business Risk
Handoffs
 Extent of interaction with external parties (agents/customer)
 Number of output documents generated
 Need to refer to offline/physical documents (internal/ external)
Training effort
 Training time to reach competence and full productivity
 Availability of talent
Technology & systems availability
 Type of system used (mainframe, client/server)
 Bandwidth requirements
 Hours of access
Savings potential
 Number of FTEs
 Volumes
Indicative list of criteria to be scored against
1
2
3
4
5
Opportunities can be identified at various levels
Money
Claims
EnterpriseLevel 0
FunctionLevel 1
ProcessLevel 2
Sub-processLevel 3
TaskLevel 4
AAA AAA
Customer Services Customer Services
Policy Servicing
Corporate, SME and Personal
•Increase premium
•Reinstatement
•Annual single premium
•Transfer value
•Pay invoices
•Set up cases
•Changes to static details
•Medical referrals
Examples
•Process-centric organisation structures
facilitate easier migration than product-
centric organisations structures
•Product-centric structures normally
involve several sub-systems and sub-
processes, leading to heightened
complexity
•For e.g. in PPP, over XX% of the claims
will be processed at AAA by XXXX and
only a small percentage in AAA SL

6. 6
Re-designing Processes to Facilitate Migration
Invoice
sent by
Garage
Check invoice
against
AMECS
No
Yes
Yes
Pass Invoice
to Engineers
Assistant
Check with
Engineer
Does invoice
meet rules
Send Back to
Garage
Contact
Garage
Discuss
with
Garage
Issue
resolved
Pay
Invoice
No
Yes
No
Send
Invoice to
IM Site
Payment
Process
Update
Diary at all
stages and
Systems on
payment
AS - IS process map
To - Be process map - post migration
Invoice
sent by
Garage
Check
Invoice
against
AMECS
No 25%
Yes 75 %Does invoice
meet rules
Pay
Invoice
Send Invoice
to IM Site
Payment
Process
Invoice
Scanned to
AAA
AAA
Support
Team
Yes
Pass Invoice
to Engineers
Assistant
Check
with
Engineer
Send Back to
Garage
Contact
Garage
Discuss
with
Garage
Issue
resolved
No
Yes
No
Update Diary
at all stages
and Systems
on payment
Op Co Process
AAA Process
Support Team in Op Co process

7. Defining Procedures and Protocols to Manage and Control the
Offshore Location As Part of the “To Be” Operating Framework.
Outgoing Correspondence
• Print Customer / Adviser
correspondence
• Collate and Envelope
• Mail out
Print
requirement
sentData Centre
Offshore CS Admin
Image Server
Incoming
Correspondence
Mail/Fax
Mail Room
Scanning
Registration
Processing System
Image Server
(Filenet)
Workflow Server
CSR completes
predetermined handoffs
and exceptions from
offshore
Contact between Adviser
and Offshore CSR via
Adviser MemoAdviser
Offshore CSR uses onshore
systems for work allocation
and product system access
Remote CSR accesses local
offshore image server for
images
Handoffs from Offshore to
Onshore CSR via workflow
system
• Monitor exception
percentages
• Monitor Quality
• Maintain and update
Knowledge
Management
• Maintain and update
training materials
Onshore CS Admin,
Onshore Customer Service Activities AAA
Onshore Remote
Site Support Team
Images sent daily - prior
to the start of
processing in Bangalore
each day
• Adviser has
contact with
offshore CSR via
Adviser memo.
Onshore Systems Offshore Systems
Contact between Onshore
Support and Offshore CSR
via email/phone
Work Tracking System
Allotment of work to
individual processors
Client AAA Business Services
• Identify exceptions
• Assign Work flow code that
identifies item as a Bangalore
Handoff
• Log exception to Onshore CS
via workflow system
• Process non-exception items
• Handle follow-ups
• Communicate with Adviser via
Adviser memo if necessary
• Communicate with Onshore
support team
• Access Knowledge
Management and Training
materials
Queuing

8. 8
Indicative Costs and Benefits
Year 0 Year 1 Year N
Recurring
Annual
Benefits
Set-up
Costs
NPV @ 15%
Payback Typically 12-18 months
Typically discounted over 5 years
Process improvements can cause non-
proportional increase in recurring benefits
Net recurring annual benefits, including non-payroll cost savings, are in the region of 40-50%
*Some costs are semi-fixed, most notably property, and savings in these cost
categories may only be achieved after 1-2 years if migration size is small
Recurring Annual Benefits
•Payroll cost saving (management & staff)
•Non payroll cost savings (IT, property, o/h)
•Recruitment & Training cost savings
Set-up Costs
• Project team (Op Co & AAA)
• IT costs (application development costs, hardware, licences)
• Telecom costs (bandwidth & firewall installation)
• Accommodation and travel (project team, trainers, trainees)
• Parallel running costs
Recurring Annual Costs
•AAA FTE cost
•Support Team Cost
•Bandwidth Cost

9. 9
Service Delivery - Continuous Improvement
Typical 3 Phase evolution from Service Delivery to Excellence
* Indicates typical time at each stage
Phase I
(3-6 Months *)
Stabilisation
•Stabilise process
•Capture Immediate
Savings
•Build operational
relationship
Standardisation
•Develop procedures
jointly with business
•Strong Value Add
•Efficiency gains &
benchmarking e.g.
automation
Continuos improvement
•Further standardisation
of procedures
•Cross training to gain
operational flexibility
and cost efficiency
•Generate value added
MIS for the business
•Significant cost saves
from higher efficiency
Phase II
(6-12 Months *)
Phase III
(12-18 Months *)
ContinuosContinuos
ImprovementImprovement
Management
sponsorship &
focus
Resource
management
Measurement,
analysis &
improvement
Iterative
development

10. 10
Success Stories
Customer – AAA Life, India
Objective – To undertake a feasibility study across all AAA Life Operations departments to identify processes that
can be migrated to AAA Business Services and to develop a business case for each feasible opportunity with an overall
migration roadmap. Also, to provide Project Management expertise and assist AAA Life in migrating the identified
processes.
Approach – 2 Senior Associates from BSG worked jointly with the Operations Improvement Project Team of AAA
Life. Using BSG’s process evaluation and reengineering methodology and tools, the team not only delivered on all the
initial project objectives, but also facilitated knowledge transfer to AAA Life team members.
Monetary Benefits for the Customer – The project delivered a capacity of 91 FTEs at AAAL translating to an
annual saving potential of £ 1.46 million from 2003 with break even in 2003.
Customer – AAA Dubai & Middle East
Objective – To conduct an organisation-wide feasibility study across the AAA operations in Australia and New
Zealand for migration of Adviser and Customer Service processes to AAA Business Services
Approach – Formed a joint project team consisting of a Senior Associate from BSG, AAA ANZ and Accenture
resources. Assessed migratability of processes, designed the operating model for integration of migrated processes with
the upstream and downstream activities left at the client location by using AAA Business Services’ robust re-
engineering and migration methodology and toolkit.
Benefits for the Customer – Prepared a comprehensive migration schedule encompassing 320 FTEs delivering an
estimated benefit of AUD 8.4 million. Conducted pilot migration exercise for 41 FTEs, within 87% of the program
budget demonstrating significant quality and process improvements.

11. 11
BSG in Action » AAA Life – Migrations
Process Migration Approach
 “Pull” Approach
 Project team comprised members from AAA, India and AAA Life, Dubai
 Structured migration approach using standardized tool-kit
Benefits –
 116 FTEs in AAA ( net 91 FTEs savings at AAAL)
 Annual savings of £ 1.46 million for AAA Life
 Life Business processing vertical at AAA created
 Consolidation of processes enabling knowledge sharing among AAA group companies viz. AAA L & AAA ANZ
Robust Methodology
Feasibility Migration
 Define Scope
 Generate criteria
 Evaluate process
 Determine
operations, IT and
financial feasibility
 Map “As-is”
process
Benefits
sign-off
Preparation
 Re-engineer process
 Map “To-be” process
 Prepare training
manuals
 IT implementation
Training in Dubai/ India
 “Train the trainers”
 Conduct accreditation for
India trainees
 Train new hires in India
 Conduct accreditation for
new hires
Parallel Run
 Parallel processing
 Stabilize process
 Process Ramp Down
in Dubai
$
Service Delivery
 Stabilized processes
 Business- As- Usual

12. 12
BSG in Action » AAA Life – Process Re-Engineering example
Department – Group Money Purchase Process – GPP New Business Quotes
New Process – “TO-BE” (simplified)
Existing Process – “AS-IS” (simplified)
Impact
 Higher productivity as processing unit-time reduced by 29 % from 35 to 25 mins
 Faster turnaround as dependency on a Specialist relationship team eliminated
 Smoother workflow as dependency on physical files eliminated
Re-Engineering initiatives
 Creation of database to hold
“specials” information
 Data Digitisation
New Business
Quotes request
received at AAA L
Check physical
files for any
“specials”
Verify information
from Relationship
teams
Process case as
required
Prepare Quote and
correspondence
letter
New Business
Quotes request
received at AAA L
Scan the request to
AAA
At AAA, Open
database to fetch
“specials” details
At AAA, Process
case as required
At AAA, Prepare
Quote and
correspondence
letter
S E
S E

13. Thank You
Helping AAA in “setting the high standards in our business”