Success Story SAP BI for Insurance. Sales Controlling ERGO Austria International AG

Transcription

1 Success Story SAP BI for Insurance Sales Controlling ERGO Austria International AG

2 Editorial The target-oriented sales controlling in the insurance industry is one of the key success factors in the original insurance business. On closer inspection it becomes all too obvious that most insurance companies have vast untapped potentials for development in particular when it comes to data acquisition for sales controlling. Only few of them are already taking the challenge by developing integrated controlling systems for key figures, which are suitable for the strategic control of an insurance company and which lead to a higher efficiency in sales. We are very pleased that together with ERGO we created a solution that contributes significantly to a target-oriented sales controlling by providing high data transparency and automation. (Dominic Testrut, Partner of ConVista Consulting AG) The Customer ERGO Austria International AG (ERGO Austria) is one of the five largest insurance groups in Austria, with a market share of about 4 percent. In addition to its companies in Austria, ERGO Austria has other subsidiaries in Central and Eastern Europe. The operating insurance companies of the holding in Austria are ERGO Versicherung AG (EVA), the specialized companies Victoria-Volksbanken Pensionskasse/Vorsorgekasse that offer corporate provisions, and ERGO Direct. They have a long-standing sales partnership with the major banks Bank Austria/UniCredit Group and Volksbank. ERGO offers its products also via its own external sales team, agencies, and insurance brokers. The owner of ERGO Austria is the internationally active ERGO Versicherungsgruppe AG, headquartered in Düsseldorf, Germany. ERGO Austria brings in around 20% of the international premium volume of this insurance group. With a share of approximately 95% of the premium volume, life business is the main focus. 1) We are very pleased that we were able to provide our sales colleagues with an innovative reporting and control instrument. We have, so to speak, replaced the map and compass with a navigation device featuring head-up display. (Christoph Thiel) Christoph Thiel (CIO) Since January 2010, Christoph Thiel is a member of the Board of Management at ERGO Versicherung AG, Austria. Among his responsibilities in this position is the management of the entire IT landscape of ERGO Austria International AG and its contribution to implementing the market strategy. 1) Source: (December 31, 2012) ConVista Consulting AG

3 ERGO Austria International AG Sales Controlling with SAP Business Intelligence Successful Implementation of a Sales Controlling Application for Managing Reporting and Planning Processes Project Goal The project goal was to set up a new sales controlling solution for ERGO Austria, as well as the rollout of the solution in the sales of EVA, also particularly in the sales of Volksbanken sales partner with its more than 400 subsidiaries in Austria. In several projects over the last few years, an enterprise data warehouse (DWH) has been established for ERGO Austria, which is based on the software of SAP Business Intelligence (BI). It was planned that reporting with the new enterprise DWH would replace the evaluation tools used up to then. For the reporting and planning processes in sales controlling of EVA the newly created data basis proved insufficient with regard to data transfer and reporting dimensions. After a functional analysis of the required reporting and planning dimensions, the existing data basis was to be set up as an effective control instrument in the form of a web-based sales controlling application. The first step was to determine in the course of a feasibility study the extent to which the software components of the SAP Business Explorer Suite already in use were sufficient for modeling the required functions. As a result of this feasibility study, ConVista recommended using a new controlling application based on SAP BI not only for sales reporting proper but also for modeling planning processes. The prototype, implemented during the feasibility study, served as a model for the gradual setup and extension of the sales controlling solution in the four subsequent implementation stages. Feasibility study and implementation SC-Application Project Duration Start date End date Feasibility study 2.5 months September 8, 2011 November 24, 2011 Project phases (1-4) Setup of Sales Controlling 19 months January 31, 2012 August 31, 2013 ConVista Consulting AG

4 Successful Feasibility Study The Business Intelligence team of ConVista examined in this study whether SAP BI was an appropriate software solution. The analysis included assessing the benefits anticipated by modeling the respective business- and process-relevant functions with the SAP BI components. The study examined in particular the following requirements: Creating a web-front-end for central access to reporting and planning functions Integrating the corporate design in evaluations/(web) interfaces Creating actual/target evaluations (production/in-force business) Mapping the EVA agent hierarchy and division hierarchy in the DWH, incl. automated update functions Integrating additional data as well as service and help functions (e.g. collaboration partner data, storing planning documents, authorizations) Sending mails of evaluations These functions were implemented in an exemplary manner in the course of the study by developing a prototype for a sales controlling application. This allowed also to verify the interaction between SAP BW and the existing EVA IT environment. Ensuring data quality for analyses and specifying the evaluation and planning dimensions were among the main challenges. In addition to exact key figure definitions for production and transaction statistics, the implementation of the newly defined EVA agent hierarchy including more than branches in the DWH was a key success factor. Together with a division hierarchy, the agent hierarchy provides the data basis for the top-down planning and most of the evaluation requirements. Entering planning figures along the customer s agent hierarchy (top-down/bottom-up) ConVista Consulting AG

5 The prototype successfully demonstrated that the customer requirements for sales were fully supported by the SAP BI software components and by using the SAP NetWeaver portal. The following components were used: ERGO Austria then opted for ConVista to set up and integrate the sales controlling application. The implementation was achieved with a multi-tiered rollout plan. SAP BW Integrated Planning SAP BW Business Explorer (BEx Analyzer, Web Application Designer) SAP BW Information Broadcaster SAP NetWeaver Portal Building on the implemented prototype and the solutions derived from discussing the central issues, the feasibility study pointed up the distinct advantages and benefits over alternative options for implementation (stand-alone custom development or Microsoft Excel). The early availability of the prototype, which was enhanced with colleagues from the functional department, has been key in making the project a success. Handling the look and feel at an early stage proved very useful for specifying implementation details later. (Dietlind Angebrandt, Project Manager at ERGO Austria) ConVista Consulting AG

6 The ConVista Solution At the beginning of the project, the business and technical evaluation dimensions and the required key fi gures were analyzed in workshops together with the customer. The long-standing expertise of the ConVista project team in key fi gure analysis and evaluation processes as well as many years of experience with the software components used (ALICE portfolio management system/sap BI) made it possible to quickly develop a strong foundation for the further implementation. The combined technical and functional expertise of the project team played a major role in identifying the required processes and making transparent the relevant factors for the technical realization. Then the data sources were clarifi ed and the top-down and bottom-up planning processes were analyzed. Since the EVA agent hierarchy in the operative source system was newly implemented for the insurance contract management (ALICE) at project start, transferring the planning processes to the new hierarchy posed a key challenge. Through close cooperation with the EVA sales controlling team during the project, we could compile a concept for the DWH extraction und processing of this hierarchy, which later on was used for the regular transfer of the hierarchy to the DWH. The results of the thorough detailed analysis and conception subsequently accelerated the project. They also helped the teams of the IT and the functional departments to gain a deep understanding of the data processing processes. The early availability of the prototype was a decisive factor in the fast extension of the sales controlling application. In close cooperation with the EVA sales controlling team the prototype was successively expanded. The early training and further coaching of the power users of sales controlling in the BW tools were vital to end-user acceptance of the solution. The application provides us with diverse options for analysis and control ad hoc and easy. The newly gained data transparency will allow for continuous, and above all sustainable, improvement of the data quality. (Bruno Schmid, Sales Controlling at ERGO Austria) Owing to our tried-and-true analysis method we specified the relevant reporting dimensions at an early stage. We have thus created a clear vision of the goal and scoping effort. (Alexander Makowski, Project Manager at ConVista) ConVista Consulting AG

7 Implementation Highlights The implemented functions form a high-performance solution that can be enhanced and easily extended to further application/sales areas. The data basis supports all daily evaluation requirements. Calculated key figures: Integrated weighting/conversion of key fi gures (e.g. converting premiums to single-premium contracts, conversions between piece/premium/commission). The following business views and processes were mapped: Key figures: Comparisons between production, commission, claim, overall (contract) portfolio and portfolio movements, and planning data. Sales partner data: Integration of contract data delivered by sales partners (portfolio, production). Planning processes: Performing top-down and bottom-up planning. Parameterizing and specifying planning steps can be done with a central process control customizing. Help functions: Upload and administration of help documentation using your own help menus. Context-dependent help. Hierarchies: Agent and division hierarchies as well as additional aggregation groups allow for creating fl exible views of and selections for transaction data. Life cycle of agent hierarchy: Different time snapshots of the hierarchy are stored in separate views. It is therefore possible e.g. to separate between planning hierarchy and current hierarchy. New top-down planning process at ERGO Versicherung AG region east own sales organization ERGO Versicherung AG Vbk 106 Vbk 105 SU Austria central agency broker internal sales SR 107 SR 114 region north Bank industry business SR 112 Campaign integration: Sales competitions, cross-selling evaluations, brand-dependent sales. SU Loosdorf PG Mayer AGNT Mayer PG Wagner PG Moser SU Herzogenberg ACNTR Mayer ConVista Consulting AG

8 Add Value with SAP BI The SAP BI software solution met the diverse business requirements very well. High levels of transparency in processing and of data were achieved by daily, automated data loading processes and check routines for data quality (e.g. when providing hierarchy data). Using standard SAP BI tools allowed for an early integration of the sales power users in developing the application further. Evaluations and web content can now be developed and maintained by the power users themselves. Technical features: Data basis: BW cubes and aggregates for the sales controlling application with their own data loading processes to ensure data availability. Easy extensibility: web views, evaluations, mailing functions etc. can be created or enhanced by the power users of the EVA sales controlling teams themselves. Self-service portal: agents and sales managers can access standardized evaluation templates and data using Excel or PDF export. Additional functions: comment functions, history management of planning values, Web Dynpro maintenance (division hierarchy), process control for planning processes. Group Data Warehouse for ERGO Austria Insurance Reporting under ONE Umbrella. Authorization concept: : a two-level concept allows for authorizations based on user roles and the customer s agent hierarchy (customizing by power user via Web Dynpro maintenance views). ConVista Consulting AG

9 The Benefit for ERGO Austria The application offers a comprehensive and flexible reporting of production, commission, overall (contract) portfolio and portfolio movements and claim statistics. The integrated view of target/ actual key figures in a central solution results in more efficient reporting processes in sales. One of the implementation highlights was performing the top-down planning process by analyzing a previously calculated new business target along the newly implemented hierarchy. This has highly simplified and qualitatively improved the planning and reporting processes of the EVA sales controlling. The new data and process transparency ensures the high data quality of the solution. The solution s high degree of automation, the consistent data basis that Central Management Cockpit and Planning Tool unifies different data sources, and the web-based reporting front end offer high efficiency as well as great potential for cutting costs. This is particularly clear when comparing now and then: today s use of the solution as self-service portal for Volksbank, a sales partner with more than 400 branches in Austria, contrasts starkly with the previous processes of data acquisition that were mainly performed manually. Coaching the power users of the EVA sales controlling team at an early stage was a crucial success factor. Firstly, most of the necessary adjustments and enhancements were carried out by the sales controlling team itself. Secondly, the related knowledge was shared effortlessly with other people. When ERGO Austria awarded the project, they underlined that they selected ConVista in particular because they combined business process expertise with long-standing SAP technology experience and were fully conversant with the software solutions in use. ConVista was thus in a position to offer ERGO Austria a customized solution for its processes in sales controlling, which was based on standard tools and precisely tailored to the requirements and wishes of the customer. ConVista Consulting AG

10 Expertise in processes, technology and

11 methodology. ConVista Consulting AG

12 ConVista Consulting AG ConVista Consulting AG provides support in the fields of processes, methods, and technology. By internationalization we understand a consistent process in which we accompany our customers even across borders so that we can optimally consult them. Innovative approaches, well-founded expertise, and an above-average comprehension of technology are the foundations of our success. Our employees possess substantial experience in the specialized mapping of business processes of SAP modules, as well as the conception and realization of complex SAP projects. Furthermore, ConVista offers its comprehensive expertise for optimally designing the architecture of an SAP installation in your company s mature, heterogeneous system landscape. As a Service Partner and Special Expertise Partner of SAP AG, ConVista Consulting AG is an internationally recognized partner for the organizational and technical integration of SAP software. Moreover, as an Independent Software Vendor (ISV) we also develop in cooperation with SAP additional solutions and add-ons that are tailored to the needs of our customers. YOUR CONTACT Alexander Makowski ConVista Consulting AG Im Zollhafen 15/ Cologne-Rheinauhafen Germany Phone: Mobil: Alexander.Makowski@ConVista.com