The document discusses Nationwide Insurance's challenges with its finance function and its efforts to address those challenges through a project called Project FOCUS. Specifically, Nationwide was hindered by multiple financial processes, organizations, and systems across its enterprise, which created issues with timely access to information and increased expenses. Through Project FOCUS, Nationwide aimed to reinvent the role and operating model of its finance function to enhance its contribution to the company's future success. The document outlines Nationwide's finance function problems in 2006 and discusses how innovation and improved performance require investment in areas like talent management, financial data, performance tracking, business intelligence, and financial close and reporting processes.

1. Nationwide Insurance
Building an Effective Finance Control
and Fast Book Closing BI-System
Challenges & Best Practices
4th Workshop on Business Intelligence
07.05.2010, TU Dresden
Dr. Georg Loepp
Business Development Manager
Banking - Insurance – Healthcare

2. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
2 > 6/17/2010

3. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
3 > 6/17/2010

4. Teradata Overview
1,800
Revenue 400 Operating Income
1,600
Results 2009: 300
 Revenue: $ 1,709 Mrd. 1,400 200
 Income: $ 338 Mio. 1,200
 CEO: Michael Koehler 100
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 Teradata Corporation is a global leader in data warehousing and analytic solutions. Our customers
use our market-leading technology to gain deeper insight into their business operations to drive
growth, profitability, and competitive advantage.
 Over 925 customers, mostly Fortune Top 500 customers with more than 2400 Systems
 More than 6600 professionals dedicated to data warehousing
 Targeted Industries: Retail, Telecommunication, Media & Entertainment (TME), Financial Services,
Manufacturing (Automotive, Semiconductor, High Tech), Travel & Transportation, Government,
Utilities
 Again #1 position in the leader quadrant of Gartner’s Data Warehouse DB Magic Quadrant, 2010
and for the nine consecutive year leading Gartner’s DWH Server Model
 Since Oct 1st, 2007 listed as an independent (split from NCR) and publicly traded company at the
NYSE (S&P 500); ticker symbol TDC
 Extended partnership with IT-Partners for realizing in-Database functionality
4 > 6/17/2010

5. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
5 > 6/17/2010

6. The Solution of the business Problem
Building Data Marts result in
fragmented, inconsistent Data with
considerable higher operation times.
Herefrom less funded Decisions & even
Reputation-risk arise through missing Data
security & Compliance. For the Operations
and the Development of these systems
occur verifiable significantly additional Cost.
Integrated Data guarantee the
Consistence and Usability of
Information, with simultaneously highest
Security using a central Data Protection.
Thereby Decisions could be taken much
quicker, better and traceable, and this
with significantly less Costs
6 > 6/17/2010

7. Teradata Vision: Active Enterprise Intelligence
Teradata: A central integrated View on your Business
Hub & Spoke 1. Application specific Central - 1. Business specific
Star schema 2. Unflexible during changes
Flexible - 2. Easy to change
Point2Point- 3. Prone to Inkonsistencies 3. Longterm stable Foundation
4. Denormalised –Redundant 3. Normal Form 4. Normalised – Non redundant
Implementation
5. Irreproducible 5. Audit Proof
Strategic View Strategic View
Production Finance Risk Marketing Sales Production Finance Risk Marketing Sales
consistent logcal View
Konto- Haupt- Risko- Kunde Filiale
Vertrag buch modell Konto-
Vertrag
Haupt-
buch
Risko-
modell
Kunde Filiale
ORDER ORDER
ORDER NUMBER
Logical Data Model
ORDER NUMBER
ORDER DATE ORDER DATE
STATUS STATUS
ORDER ITEM BACKORDERED ORDER ITEM BACKORDERED
QUANTITY QUANTITY
CUSTOMER CUSTOMER
CUSTOMER NUMBER CUSTOMER NUMBER
CUSTOMER NAME CUSTOMER NAME
ORDER ITEM SHIPPED ORDER ITEM SHIPPED
CUSTOMER CITY CUSTOMER CITY
CUSTOMER POST QUANTITY QUANTITY
CUSTOMER POST
CUSTOMER ST SHIP DATE SHIP DATE
CUSTOMER ST
CUSTOMER ADDR CUSTOMER ADDR
CUSTOMER PHONE ITEM CUSTOMER PHONE ITEM
CUSTOMER FAX ITEM NUMBER CUSTOMER FAX ITEM NUMBER
QUANTITY QUANTITY
DESCRIPTION DESCRIPTION
Accounting Gen. ledger Customer Channel Accounting Gen. ledger Customer Channel
Transaction Cash Flow ERP … Collection Transaction Cash Flow ERP … Collection
7 > 6/17/2010

8. Analyst View: Proven DWH Technology
Teradata: Active Enterprise Intelligence based on Data Warehousing
Gartner: Magic Quadrant for Data Warehouse Systems
"Teradata is proprietary." This is a
false claim, as the DBMS is no
more proprietary.
Today, Teradata runs on
commodity hardware and Linux,
and is even replacing the proprietary
BYNET with InfiniBand and other
standard interconnects.
interconnects
Teradata allows customers to
engage in several market
microtrends…
… addresses the
"learn as you grow" mentality.
Source: Gartner Research, Magic Quadrant for Data Warehouse Database
Database
Management Systems, Donald Feinberg, Mark A. Beyer; Publication Date: 28 January
2010/ID Number: G00173535
nine consecutive years leading
8 > 6/17/2010

9. TD Strategic Directions
We Address High Analysis Quality = Performant Data Warehouse
Multidimensional Query Concurrency
Scalability Simultaneous parallel
Guaranteed Linear execution of complex
Scalability of the solution queries
Scan Optimization Ease of Use
At any point in time the Easy map complex issues
fastest result on offered solutions
Multiple Appliances Integrated Data
Expandable dependent on Single point of truth
the business requirements
Consistent Performance Agile Analytics
Guaranteed SLAs Right time decision
support and effective early
warning
Availability Active Workload
7*24 Up and running Automatic prioritization
and optimal resource
mitigation
Investment Protection Multi Temperature
Guaranteed business Automatic user profile
improvement oriented use of
information
9 > 6/17/2010

10. Teradata Customers
Customers: Active Enterprise Intelligence for Top Companies worldwide
Finance Media Retail
Logistics &
Industry
Public • Market leader of all
Tourism Institutions industries are using
Teradata-Systemes
for Decision
Support
• 35 New Customers
in EMEA within the
last 24 Month (e.g.
HSBC, Unicredit,
Daimler, Nokia, etc.)
• Loyality rate of the
Teradata Customers
> 99%.
• The Teradata
Community
(Customer, Science
Departments and
Employee) is
constantly working
on the Development
of best in class
solutions
10 > 6/17/2010

11. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
11 > 6/17/2010

12. Who is Nationwide?
Nationwide – Company Overview:
• $157B Statutory Assets - 35.000 Employees
• Ranked 98th in the Fortune 500
• Core businesses include:
> domestic property and casualty insurance, life insurance and retirement savings,
asset management, and strategic investments.
• Full range of products and financial services
> auto, fire, life, health and commercial insurance to administrative services,
annuities, mutual funds and retirement plans.
• Specific P&C Rankings:
> 4th-largest homeowner insurer based on premiums written
> 6th-largest auto insurer based on premiums written
> 10th-largest commercial insurer
> 6th-largest total property and casualty insurer
12 > 6/17/2010

13. Nationwide Insurance
Project Spotlight
Project FOCUS (Faster, Online, Customer-driven,
User-friendly, Streamlined):
 Situation: Nationwide wanted to have a world-class
finance organization but was hindered by multiple
financial processes, organizations and systems across its
enterprise
 Problem: This environment created a number of issues
regarding a lack of timely access to information and
added expenses with limited ability to optimize capital
and manage risk.
 Solution: Reinvent the role and operating model of the
finance function to enhance its contribution to
Nationwide’s future success
13 > 6/17/2010

14. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
14 > 6/17/2010

15. Finance
Key Horizontal “Hot Topics”
• IFRS • Transparency / Financial
> New Global Financial Reporting Reporting
Standard > Enhanced transparency &
> Requires more detailed data and flexibility of financial reporting
reconciliation to transactions capabilities
• Profitability • Expense Management
> Current economic pressures > Insight into key expense items
driving demand for insight to cost to manage & monitor
& revenue drivers > Vendor management
• Finance Architecture Redesign • ERP Migration
> Simplification initiatives to drive Augmentation/Avoidance
cost out while meeting new > Ability to reduce cost/risk of
requirements large ERP Migrations
> Approach to prolong time or
avoid making the migration
15 > 6/17/2010

16. Nationwide Insurance
The Finance Function Problem 2006
• Multiple G/L’s
• Multiple Consolidation & Reconciliation
Systems
• Multiple Profitability Systems
• Multiple Reporting Solutions
And every one of them has
its own data repository
16 > 6/17/2010

17. While many leaders have made progress on
improving key enablers, significant opportunities
for improvement in Finance still exist
People Process
• While strategies may exist, organizations do • Process and data improvements can have a
not consistently manage to them big impact on closing cycle
• Significant time and effort spent • Inability to react to changes in a
coordinating and resolving dependencies on coordinated and collaborative way across
other operating units the enterprise
• Leading organizations spend more and focus • Understanding of cost and other key
on planning and analytics and have higher performance drivers still insufficient
retention rates
• Ability to anticipate business changes
• While information and tools have been hindered by insufficient leading indicators
deployed in many organizations, lack of
training has slowed use
Information Technology
• Progress has been made in basic reporting, • ERP systems not well suited to meet
but addressing 21st century reporting growing analytical and reporting
requirements is needed requirements
• Speed, access and flexibility of • IT complexity is driving increased costs and
information, not accuracy is the issue hampering collaboration across functional
• Detail necessary to determine the “what, silos
why and how” of results not easily • Enterprise application use growing but
available for many heavy reliance on Excel still exists
• Integration of financial and operational • Growing use of data warehousing and
information and metrics in a consistent master data management among leading
way is uncommon organizations
17 > 6/17/2010

18. The Challenge:
It was time to reinvest in Finance
Innovation and improved performance require investment.
• Potential areas to invest in and results to expect:
> Talent Management to enable improved capabilities
> Financial Reference Data/Chart of Accounts to enable better control over data
> Performance Scorecards to enable people to focus on doing what matters most
> Business Intelligence to enable smarter decisions, while reducing risk
> Financial Close Consolidation and Reporting: to enable faster, smoother close
> Budgeting, Planning & Forecasting: to enable one version of the truth
> Tax and Treasury: to enable higher profits and better compliance
> Benchmarking: to enable understanding of performance relative to peers
What to do:
Identify your top three investment opportunities. Build business cases that
include the value of better information, improved talent retention, & less risk.
18 > 6/17/2010

19. Finance Transformation Requires Leveraging
Complementary Capabilities
Acting on
Process
Standard Knowledge
Management
Reporting
Recording Sharing
Transactions Knowledge
Operational Systems Analytic Systems Drive Business
Help Run the Business Decisions
Enterprise Resource Planning Enterprise Data Warehouse
(ERP) > Flexible architecture optimized for business
analytics and ad-hoc decision making
> Structured architecture drives process efficiency
and consistency in core business processes > Analytical focus – analyze and manage the
business
> Transaction focus - operating the business
> Provides analytical flexibility and
> Provide process integration across key operational
customized reporting capabilities across
processes
business processes
– Large Investment
– Large Investment
– Highly Visible Spend
– Low Visibility Spend
– Traditionally High Priority
– Emerging Top Priority
19 > 6/17/2010

20. Critical Step
Getting the Conceptual Architecture Right
Manage All Accounting Consolidate
Future proof Rules in Common Use around Standardize
design Transparent Way With Applications application business
Ability to Drill to Details According to clusters rules &
Purpose models
1 Next Generation Finance Infrastructure
3
Accounting Financial Systems 4 HR
5 Calculation
6 Reporting
Hub Engines & & Analytics 8
Source Accounting Consolidation HR Applications
Systems Treatment Rules
General Ledger PR Financial Reporting
Planning Allocation
DDA Data delivery to users &
Card Sub-Ledger
AP Purch AR FA PA Other processes is timely,
Basel Risk accurate & appropriate
Management Reporting
Mtg
Invest
Trust
2 Data Warehouse Regulatory Reporting
Call 1101
Center 1001 Operational
9
Branch
1011 7 Store once: Analytics
use many times
ATM
Tactical Info Delivery
CIF
Extract once:
Customer Introduction & Life-Cycle Maintenance Process
System
Put customer
Set Status to
Upload Customers state to
Charge
ACT IVE
Logistics
Update logistics
information
Don’t change mid-flight
yes
10 Data Quality
yes
Sales Rep/
DSD Rep
Update Customer
Profile Information
Overall Data
Finance /
Steward
Hierarchy,
Duplicate
Resolve Credit Approval Update Billing Update Hierarchy Channel,
Review Alerts resolution yes no
Duplicates Reqd? Information Information Address info
reqd? no
complete? Alert
respective role
no
Consistent data for all Uses Hierarchy Security Master Data
Sales
Update Trade
Metadata
Channel
Information
Management Management & Governance Management Workflow Management Rules Management
Management
End-to-End Data Transparency, Informed Real-Time
Governance & Consistency Decision Making
20 > 6/17/2010

21. Agenda
Teradata Overview
Teradata – Focus on enabling Technology und References
Nationwide - Company Overview
Nationwide - Challenges of the Finance Function
Nationwide - Program Results
Q&A
21 > 6/17/2010

22. Nationwide Insurance
Success Story
Situation
• Company growth strategy is through acquisitions Impact
• Had a financial reporting environment dependent upon pulling
• Close process reduced
data from 200 source systems
from 15 days to 7
• Finance organization was focused on data gathering and not data
• Standard data definitions
analysis
and well defined data
governance across 200
Problem source systems and 2,000
• Disparate, fragmented financial systems environment users
• Ineffective forecasts were poor predictors of performance • Finance now has flexibility
to quickly integrate
• No single view of enterprise financial performance
acquisitions
• System complexity limited ability to adapt to environmental and and adjust to change
strategic change
• Finance, now spending
more time on value-
Solution adding analysis
• Redefine the role and operating model of the core finance • Improved planning and
functions, processes and systems variance analysis process
• Implement a Teradata and Planning system as the foundation of – driver-based plans
the new financial systems architecture • New Strategy and project
• Deploy a shared service finance model scope was implemented in
less than 12 month
• Create a more agile enterprise to analyze and drive timely
decisions
22 > 6/17/2010

23. The VISION is in place: CFO Dashboards
The Art of the Possible - Total Consolidation View of the Company
23 > 6/17/2010

24. What Does a Good Data Warehouse
Give the Finance Function?
• A broader range of data
• More detailed data
• More history
• A better analytical environment
> Faster response
– Support for iterative analysis
> More user control
> More comprehensive in its ability to
answer business questions
• A better analytical calculation
environment
> Faster, better and cheaper
• More up-to-date data
• More reliable and consistent data
• Reduced operational risk
> Avoids spreadsheet proliferation
24 > 6/17/2010

25. Summary: Finance Benefit using Teradata
• Faster closure – Closing the books every day
> Earlier identification of issues
> Easier analysis and validation
• Alternative options for new reporting
requirements -> 80 % Ad-hoc Reporting
• Flexibility to cater for:
> New measurement approaches
> New products
> New portfolios
• Strategic (e.g. management control, compliance
governance, etc.)
• Reduced costs
> System
> Manpower
• Greater business value add
> Enhanced financial analysis
> Dissemination of financial management knowledge
25 > 6/17/2010

26. Questions
Many thanks for your attention!
Dr. Georg Loepp
Business Development Manager
Banking, Insurance & Healthcare
Teradata GmbH
Hahnstrasse 43 E
60528 Frankfurt / Germany
Tel: +49 (69) 665 29 - 175
Mobile: +49 (172) 82 38 - 444
Fax: +49 (69) 665 29 - 247
Georg.loepp@teradata.com
Teradata.com