Below is the executive summary for workshop 2 from TINtech 2011, by Jane Tweddle of SAP. The session focused on Managing Data as a Strategic Asset.
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Managing Data as a Strategic Asset: executive summary
The SAP workshop was well attended with approximately 25 attendees from a wide variety of insurers and related companies.
Jane Tweddle, SAP Industry Principal for Financial services kicked off the workshop drawing from the presentations earlier in the day which had stressed the value and importance of managing, controlling and using data:
The keynote presentations highlighted the importance of data with one of the presenters saying, “it’s all about data”, stating that the insurance industry is poor at gathering data and also at using it effectively or giving control back to the business.
The value of Analytics and Insight was also stressed. Insurers are good at underwriting but less so in understanding distributions, customers and channels. There is value for insurers to get control of their own data and perform more multi-channel CRM analytics.
Dean Farrow, SAP Insurance Solutions Director, spoke about Data as a strategic asset in the insurance industry. He talked about how data is exploding and it is important to harness this ever more complex and growing data volumes to empower the business to improve performance and how better data management can improve planning and exploit cross-selling opportunities. Dean used iPAD technology to demonstrate how tools can leverage value from data and how we might put a $value on data. They key is to put the data into relevant context and deliver information appropriately to users so as to ensure best use is made of it.
In summary harnessing and using data effectively will improve business performance and opportunity.
The second presentation focused on “Creating effective business intelligence from your data management strategy”. Here the potential value of effective data management VS the risk you might face from not having it was highlighted. The challenges of implementation and integration were also discussed and, most importantly, the return on investment that can be delivered through improving business performance from access to behaviour changing MI. The data management strategy enabled the company to focus on what is most important to the business and to identify the data that is required to deliver better awareness of correlation of risks and new business opportunities and to make more informed decisions. For example, CAT Risk Modelling capability, which involves a lot of data management and a lot of effort now provides a key differentiator and is creating a major business advantage.
Certainly the organisation benefitted significantly from the data management/BI efforts to date, but recognised that the next stage – CRM capability – was another challenge altogether, but one which would also deliver significant value.
The round table discussion across the workshop looked at two discussion areas:
- What are the barriers you encounter in your organisation to solving the challenges of managing data as a strategic asset?
- Discuss one data initiative that has worked well in overcoming these barriers
After much animated discussion the responses from the tables were consistent in their sentiments;
Data management for effective BI is difficult to deliver, due to inconsistent data, multiple data sources, lack of sponsorship in the organisation and lack of perceived business value compared to the effort required.
On a more positive note however, one company talked about the success it had achieved from building a small data warehouse to consolidate information from across a range of CRM systems. There was a feeling that broker performance was costing the company money, but the trends and patterns were difficult to spot while the data was spread over so many systems. Pulling this data together into a single repository allowed the business to very quickly spot under performance trends with a number of brokers, whereby consistently under priced policies were sold which resulted in a high number of claims. Removing these brokers from the business saved in the region of £750,000.
Industry Principle, Financial Services
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