A Solution to Services Oriented. 10 August 2009

Transcription

1 A Solution to Services Oriented Modernization for Insurance Carriers Joint Webinar by Hexaware Technologies & Oracle Modernization i Solutions 10 August 2009

2 Hexaware Overview 5200 Employees Globally (Dec 08) 15 th Largest Software Exporter (NASSCOM) 178 Active Clients Served Worldwide (Dec 08) 56 Million-Dollar Clients (Dec 08) 66 Fortune / Global 500 Corporations as Clients (Dec 08) 262 USD mn Revenues in CY 08 Founded in1990 Nearly 2 decades of continued value creation Hexaware Technologies & Oracle Corp. All rights reserved. 2

3 Team Profiles Tom Laszewski, Technical Director Oracle Modernization Solutions Over 20 years experience in databases, middleware, software development Established the initial the Oracle Modernization Partner Ecosystem including some of the largest partner channels Master of Science in Computer Information Systems from Boston University Durgesh Hattangadi, Project Director Hexaware Technologies Over 15 years in IT Architecture & Program Management Keen interests are UML-based design/architecture, SOA, Legacy Modernization Bachelor s Degree in Electronics & Communications Technology from University of Bombay Ghanshyam Upadhyay, Project Director Hexaware Technologies Over 18 years experience heads the BI&A delivery team at Hexaware Mumbai & manages key large accounts in Europe. Apart from Business Intelligence his interest areas are Data Modeling, Statistical and Economical Modeling and Central Banking Master of Science in Statistics from University of Delhi Hexaware Technologies & Oracle Corp. All rights reserved. 3

4 Objective of this Webinar The need for Legacy Modernization and the need for exposing business functions as services within the insurance carrier and also with partner applications is well known. However, with varied approaches & varied products, compounded with the existing enormity of application and business complexity, the challenges associated with a LM initiatives are huge. Join this two part webinar where: Oracle presents the Legacy Modernization Stack from Oracle and learn how the Oracle Modernization team helps in implementing the right roadmap Hexaware Technologies showcases two multi-year legacy modernization initiatives for its customers each having its own unique challenges and the diverse approaches used to achieve similar objectives Hexaware Technologies & Oracle Corp. All rights reserved. 4

5 Early in this decade, the architecture group at The Hartford determined that SOA would be the most cost effective way to replace aged COBOL applications, he said. "We have systems that are as old as I am," Moreland said. "[They're] at least 30, 40 years old and they're still working. So, we're trying to retire those." Benjamin Moreland Director of Foundation Services, The Hartford August 510, August 2009 Copyright Oracle Corporation 5

6 Business Climate is Changing Focus is on Business Transformation PACE OF BUSINESS Increasing expectations ti from customers and partners to provide answers sooner INNOVATION Companies are under pressure to bring products and services to market faster GLOBALIZATION Customers, supply chain, and competition have all become global REDUCE COSTS Relentless pressures to drive additional efficiencies do more with less "In a time of accelerating turbulence, the valuation of a company will be strongly affected by how it executes change." August 10, 2009 Copyright Oracle Corporation 6

7 Typical Legacy Environments Hardware Platforms IBM mainframes (13,000 +) IBM AS/400 (300,000 +) Bull GCOS Dec Alpha Unisys Operating Systems MVS, OS/390, z/os TPF, z/tpf VSE, VM, z/vm VAX/VMS TP Monitors CICS IMS Databases Sybase VSAM, ISAM IMS/DB DMSII ADABAS DATACOMM IDMS Programming Languages COBOL Assembler PL/1 NATURAL COOL:Gen C/C++ Fortran "By 2008, organizations that have not developed a mainframe modernization strategy risk losing the opportunity to leverage this portfolio due to a decline in skills and knowledge of these systems. August 10, 2009 Copyright Oracle Corporation 7

8 Modernization Payback Stay on mainframe legacy Re-host Modernize to lower cost platform Project Investment Cumulative Savings Break-Even Point Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 August 10, 2009 Copyright Oracle Corporation 8

9 Legacy Realities and Consequences Intense Pressure to Minimize IT Costs and Increase Agility Maintenance for 1000 MIPS legacy environment runs $3M-$5M/yr Lock-in and high cost limits funds for new initiativesiti High integration cost and time-to-market delays impact front-end agility 66% of Business-Critical Applications are on Legacy Platforms Gartner predicts 1, by 2008, organizations that have not developed a legacy modernization strategy risk losing the opportunity to leverage this portfolio due to a decline in skills and knowledge of these systems (0.7 probability). Legacy Skills are Diminishing Loss of business process knowledge as people retire Increased risk to supporting, enhancing core applications IT cannot react quickly to emerging business requirements 60-80% 35M LOC of IT Budget Consumed by Maintenance Cost (Apps and Systems) Maintained in Legacy Apps at an Average Fortune 100 Company 1 Dale Vecchio, Gartner, Leverage Your Mainframe Applications With SOA, 25 October August 10, 2009 Copyright Oracle Corporation 9

10 Oracle s Approach to Modernization Provide Modernization solutions that can be implemented Oracle Database Maximum Availability Architecture Hot pluggable Oracle Fusion Middleware including Tuxedo and Oracle Coherence Oracle Applications and Oracle Application Integration Architecture Work with partners who provide the means to get there System Integrators t Specialty modernization vendors Products and tools that add value to Modernization solutions Act as your Modernization Trusted Advisor We have the modernization expertise Average SME has 20+ years experience FREE architecture, planning, POC and jump start hands on technical resources We have a partner eco-system to provide the means to get there August 10, 2009 Copyright Oracle Corporation 10

11 Oracle s Architectural Vision Integrated Solutions Integrated business processes Integrated business intelligence Integrated user interface Standard components Certified configurations Synchronized releases Easier to manage Greater security Higher reliability Lowers cost of ownership August 10, 2009 Copyright Oracle Corporation 11

12 Multiple Modernization Approaches COTS Replacement custom apps with COTS: Oracle Apps for HRMS, CRM, Financials, Procurement Re-Architect By uncovering business rules, mining models and forwardengineering to re-useable services, BPM flows, and Business Rules. Oracle Modernization Service Orientated Modernization Leave applications on MF, extend in place via adapters, WS, etc. Re-Host Migrate to open systems with automated process, preserving code and data, SOA enable and integrate Automatic Migration Convert 4GLs to COBOL or Java, PL/I to C/C++, etc. Mix multiple l approaches based on your modernization goals August 10, 2009 Copyright Oracle Corporation 12

13 Batch CICS & IMS Service Orientated Modernization Oracle BPEL 3270 Access Portal Oracle BI COBOL Oracle Data Integrator E-LT E-LT Agent Metadat a DB2 ISAM/VSAM /IMS/Datacom/ / IDMS Oracle ESB August 10, 2009 Copyright Oracle Corporation 13

14 Oracle and Service Orientated Modernization BPA Suite REAL-TIME VISIBILITY Enterprise & Modeling PROCESSING BPM Suite Business User Modeling JDeveloper Application Development Framework BAM GOVERNANCE CEP Alerts Events Business ORCHESTRATION Monitoring Data Streams BPEL Process Manager Native Business ROUTING BPEL & DATA Rules SERVICES Oracle Service Bus Human Workflow Data Integrator Routing Transform ETL & Data Mediation Replication Oracle Coherence Messaging J2EE Application Server (Oracle AS, WebLogic, WebSphere, JBoss) Java and.net Caching Quality Enterprise Manager System GOVERNANCE Monitoring Web Services Manager WS Policies Security Enterprise Repository SOA lifecycle governance Registry UDDI JRockit VM & RT Adapters CICS IMS/TM VSAM IMS-DB Tuxedo CDC Adabas DB2 IMS-DB VSAM SQL Server Partners NonStop OpenVMS AS/400 IDMS Datacom August 10, 2009 Copyright Oracle Corporation 14

15 Service Orientated Modernization with Hartford Legacy Target Facts Hartford Insurance COBOL based system 4-6 month to deliver business changes 30 staff needed for production implementation Services Oriented Architecture BPEL Abstracted services from existing legacy applications Reduced time to market by 75% Reduced TCO Created a plug in play environment for future changes Increase Business agility Can replace underlying services with open systems in future _g gci ,00.html August 10, 2009 Copyright Oracle Corporation 15

16 Large Insurance Claim Processor Architecture and Benefits (In progress) Improved response time Cache hits provide sub-second response time Clients Improved scalability The data grid will scale linearly with increased demand As more members migrate to this platform, new application servers are easily added Improved availability Linear scalability protects against unexpected shutdowns from sudden spikes in volume If the mainframe goes down, the middle tier can still service transactions against cached data Reduced mainframe costs Plan to eliminate millions in annual mainframe costs Oracle WebLogic Oracle Coherence Data Grid Mainframe IMS/DB Database August 10, 2009 Copyright Oracle Corporation 16

17 Re-Hosting Batch Same SI Environment 3270 JES ISAM/VSAM COBOL 3270 COBOL DB2 ISAM/VSAM Oracle Tuxedo Oracle RAC August 10, 2009 Copyright Oracle Corporation 17

18 Tuxedo as a rehost platform Other Applications and Services ESB Messaging Web Svcs. EJB/RMI JMS MQ FTP SMTP Web Services Intranet/Internet Clients POJO JSP/Servlet.Net J2EE Web Application Server Servlets implementing 3270 UI Oracle Jolt Portable Java Client WTC WebLogic-Tuxedo Connector Session Services CICS Transactions (COBOL) CICS or IMS Emulation Application and Transaction Services Oracle Tuxedo Tuxedo Services and App Monitor WebLogic Tuxedo Connector tn3270 Oracle Database Grid Oracle Confidential and Proprietary

19 Re-hosting Case Study Groupama Legacy Environment World's 3 rd largest property and casualty mutual, 2 nd biggest multi-line insurer and the leading mutual insurer in France Annual revenue of 14.2B and assets close to 79B. 1.3M insurance contracts Expensive mainframe costs (hardware, maintenance) Legacy application base of 1,600 programs Concerns about IT agility, skill sets in a fast-moving, competitive environment Modernization Project Migration of mainframe life insurance portfolio management system and Back Office applications & data to open system HP-UX environment Three migration projects carried out in parallel Powered by Oracle s high perform. re-hosting architecture using Tuxedo and Oracle DB Migration Partner: Results Strong ROI with 2 year breakeven on the project Launched new initiatives in banking, auto insurance and financing, agriculture insurance, health & provident insurance Leading to 544M in net profit (+34%) and ROE of 14.4% (+2.9%) Cost savings boosted margins and enabled Groupama s stock market flotation Our mainframe environment was not durable. We chose an automatic migration method that has given us control of our applications, with a breakeven time of around 2 years. Lydie Assouline, GROUPAMA Information Systems Manager August 10, 2009 Copyright Oracle Corporation 19

20 Case Study Walkthrough Large EU based Leasing Company

21 Overview of Hexaware Modernization Stack Involved in modernization projects since 1998 Large pool of Enterprise Architects SOA expertise on IBM, Oracle and Microsoft platform Tools & Frameworks to reduce modernization efforts Hexaware Technologies & Oracle Corp. All rights reserved. 21

22 Customer Background Customer Profile Largest manufacturer-independent leasing company in Germany Turnover of over 5.4 B Euro With more than 40 years of existence, employees & about customers Need for Legacy Modernization With multiple systems and no single view into a customer, customer experience ratings were low Rollout of new products and cross selling takes a huge time Enhancements to Legacy applications was very difficult due to the enormous complexity built into the app Hexaware Technologies & Oracle Corp. All rights reserved. 22

23 Snapshot - Legacy Modernization Duration: 3.5 years Team Size: 400+resources Effort Estimated: Person Years Data Migration of over 100 GB of historical data covering - Assessment Extraction Cleansing Transformation ato Loading Integration to SAP system and 25+ other systems Development of batch and online interfaces that includes the following steps: Integration Need Assessment Architect & Design Implementation Interface Maintenance Extensive Custom & Legacy Integration Adapter & Connector Development Application Security Back up and Recovery Quality Assurance Infrastructure Consulting Other Services Services Re-engineering 80 legacy applications on mainframe, client-server and old web technologies Migrated 4300 legacy programs to 8M+ J2EE code Involved Code Mining, Reverse / Forward Engineering Evolutionary & Incremental approach Dedicated testing team for end-to-end testing of the entire landscape Unit / Module Testing Regression Testing System Integration Testing Performance Testing Design, Development & Implementation of Refinancing and Collections system Development of Batch Updates and Reports with Unix Shell script Maintenance of Legacy Mainframe systems Offer, Contract, Collections, Refinancing and Asset Management Single Largest IT Outsourcing Hexaware Engagement Technologies & Oracle by Corp. a German All rights reserved. Company to an Indian IT Vendor NASSCOM

28 Case Study Walkthrough Large EU based Insurance Company

29 Why Insurance Carriers Modernize Increase Business Agility Provide improved service to brokers, agents & customers Bring new products to market more quickly Better business intelligence for sales analysis, profit analysis Mitigate Legacy Risk g gy Minimize Reliance on Legacy Skill sets Make use of older technologies that are dying out Don t be the last one using a technology Reduce Total Cost of Ownership Reduce multiple environments resulting from mergers and acquisitions Consolidating the number of technologies and using packages where appropriate Hexaware Technologies & Oracle Corp. All rights reserved. 29

30 Customer Background Customer Profile Top 5 Insurer in Belgium in both life insurance and non-life Over 5 B Euro turnover and 30 B Euro in assets Need for LM Time to market for new products Need for rule-based based straight through processing for New Business, Claims and Underwriting Bring multiple LoBs (Bank & Insurance) under a single system Need for a Single customer view Hexaware Technologies & Oracle Corp. All rights reserved. 30

31 Strategy & Overall Roadmap 3 Year Plan Phase 1 Mine Business Rules from the existing application Identify the Insurance Product Definition rules Phase 2 Implement the Business Rules Engine in 3 rd Party product VPMS Implement Product Configurator & interface with existing legacy PAS Phase 3 SOAize all customer centric internet applications Common look and feel Single customer view Phase 4 Expose important legacy components as SOA services in a phased manner Overall Strategy: Focus on quick benefits while reusing existing Legacy Assets Hexaware Technologies & Oracle Corp. All rights reserved. 31

32 Hexaware Contribution Solution definition and selection of business rules engine Provision of consultancy services and help preparation of RFP for product selection Unraveling of the business rules from legacy systems Around 3300 business rules were extracted and documented in English and local languages Configuration and implementation of rules engine - VPMS Application changes in view of the business rules engine Modification of existing legacy applications to call rules engine Integration of applications with rules engine Bringing uniformity in applications across organization using SOA Development of middle (business) layer components using a modern J2EE based (spring like) framework Development of front-end layer using a presentation framework Integration of applications through common portal Benefits: Substantial reduction in time taken for new product roll-outs Saving of effort, time and money in maintenance of existing applications and development of new applications Hexaware Technologies & Oracle Corp. All rights reserved. 32

33 Hexaware Capabilities - Summary Hexaware Modernization Service Portfolio Application Portfolio Analysis Solution and roadmap for legacy modernization Rule Engine Implementations Core Insurance Solution Implementations Provision of non-core solutions BI, ERP, Testing Hexaware Contacts Kapil Mehta kapilm@hexaware.coma are Grant Keller grantk@hexaware.com Hexaware Technologies & Oracle Corp. All rights reserved. 33

34 Roadmap to Modernization Business Case Partner Ecosystem Modernization Discovery Discovery Modernization Roadmap Modernization Architecture Blueprint August 10, 2009 Copyright Oracle Corporation 34

35 Next Steps Initial conference call to understand your specific business drivers and requirements Customized Hexaware and Oracle Modernization Web Cast On site consultation Oracle Insight Two day business level modernization strategy session Contact Us Oracle Confidential and Proprietary

36 Resources External Modernization Resource Center OMA: Blog: Service Orientated Modernization on the WEB: ServerSide Article Oracle Confidential and Proprietary