Legacy business processes, still the root of all evil?

Whats holding you back!

CliveBamforth, Rob Longbottom, Service Director, Principal Analyst,Quocirca QuocircaLtd Ltd

A glimpse of whats going on in the insurance sector

! 137 interviews! ! Telephone based! ! Mostly brokers! ! Spanning all industries! ! Mostly commercial lines products! ! Mostly those responsible for coverholder status! ! Gross Written Premium in <5m or 5m-100m ranges
Quocirca 2013

Reaching customers Business process excitement IT help or hindrance?

Reasons to be cheerful
Quocirca 2013

Good customer experience getting tougher

Cost reduction

New relationships

24x7 service

Multichannel
Quocirca 2013

Consistency

The generation communications gap for commerce

0% Face to face Email Voice on mobile phone Voice on landline Post Text messaging Comments on websites Social networking Instant Messaging Internet phone eg Skype Microblogging eg Twitter
Quocirca 2013

5%

10%

15%

20%

25%

Aged between 16 and 24 Aged 65+

Source: Ofcom Communications Report July 2012

How to get to commercial customers?

Direct sales only

Direct and broker network

More than 10 employees Broker network only 10 employees or fewer

Quocirca 2013

0%

20%

40%

60%

Current channels to reach customers

Broker Direct phone sales In person sales Online self-service Insurance agent Call centre Bank
Quocirca 2013

More than 10 employees 10 employees or fewer

0%

20%

40%

60%

80%

Motivators for opening up IT in other industries

Go direct to customers 60% Improve customer experience 40% 20% 0% Improve partner loyalty

Integrate supply chains

Improve services to partners

Grow existing customers Secondary benefit

Quocirca 2013

Attract new customers Major motivator

Source: Quocirca - Digital identities & the open business research March 2013

Can brokers tailor systems for their customers?

Yes

Fully

Only partly

No

No

Not really

Quocirca 2013

0%

20%

40%

Reaching customers Business process excitement IT help or hindrance?

Reasons to be cheerful
Quocirca 2013

The excitement of IT & business processes

Quocirca 2013

Change your mind?

Direct economic impact of mobile Internet could be $3.7t to $10.8t per year in 2025
the automation of knowledge work could be $5.2t to $6.7t

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and for the Internet of Things it could be $2.7t to $6.2t

Quocirca 2013 Source: Disruptive Technologies McKinsey & Co May 2013

Who has well codified business processes?

Solid yet flexible

A bit inflexible

Not too good or poor

Revenues over 5m Less than 5m

Quocirca 2013

0%

20%

40%

60%

System flexibility versus process perfectionism?

Very flexible

Fairly flexible Those with very well codified processes Everyone else Difficult or inflexible

0%
Quocirca 2013

20%

40%

60%

80%

Capture unformatted information as part of the sales process?

Yes and in context

Not searchable Revenues over 5m Stored separately Less than 5m

No or unsure

Quocirca 2013

0%

20%

40%

60%

Integrating information from external data sources, e.g. rating agencies, government or industry bodies

Yes

All

Few

No

Not a problem

Big problem

Quocirca 2013

0%

20%

40%

60%

Reaching customers Business process excitement IT help or hindrance?

Reasons to be cheerful
Quocirca 2013

Business and IT the capability gap

Business imperative Business processes Tasks

Functionality Applications Platforms

Quocirca 2013

Getting the right level of technical support?

Better than required

Just whats needed

More or less

Revenues over 5m Less than 5m

No or not really

Quocirca 2013

0%

20%

40%

60%

Widespread awareness of support costs

Yes precisely

Yes roughly

Revenues over 5m Less than 5m

No or nor really

Quocirca 2013

0%

20%

40%

60%

80%

But what about value?

Very good

Pretty good Revenues over 5m Less than 5m Poor or not so good

Quocirca 2013

0%

20%

40%

60%

What or who has most impact on flexibility?

IT department

Software vendor

Business process

Software 0%
Quocirca 2013

20%

40%
Significant

60%
Moderate

80%
Little

100%
No impact

Greatest impact

Reaching customers Business process excitement IT help or hindrance?

Reasons to be cheerful
Quocirca 2013

What would a better system deliver?

More efficient deal processing

Greater variety of products

Increase volume of sales Close a higher percentage of deals

Target wider group of prospects

Quocirca 2013

0%

20%

40%

How much anticipated improvement?

%age of deals closed

Sales volume >20% more Product variety 10%-20% more 5%-10% more Up to 5% more Prospect numbers

Quocirca 2013

0%

20%

40%

60%

80%

100%

Time saved weekly from more efficient deal processing?

Less than 1 hour 4% >5 hours 8%

2-5 hours 28%

1-2 hours 60%

Quocirca 2013

Is it worth making the effort?

!"#$%&'(&#)*$#&"(%&(+,-$.#&'/& 0',1"()$#&)(2$.3)$4$%&25"2& "3$."6$#&-$24$$(&7899&"(%&:999& 5'+.#&1$.&;$".&1$.&0',1"(;<&

Target Inefficient Systems Wakeup And Smile

Quocirca 2013

Thank you & questions?

! This research was commissioned by Mercato Solutions ! For your copy of the forthcoming report please register:
! on the KnowledgeKube advert on your delegate iPad ! at the KnowledgeKube stand 1 ! or go to www.knowledgeKube-insurance.co.uk

! ! ! ! ! ! !
Quocirca 2013

Finally, a plea for independent lifeboats! (around 50 in UK are not funded by or part of RNLI)! http://www.ferryside-lifeboat.co.uk/donations!