Beyond Warehousing - SAP HANA Strategy Munich Re September 9, 2014 Dr. Rainer Janßen
Agenda Munich Re central global SAP Microsoft IT Strategy SAP HA NA BW traditional Beyond Warehousing 2
Munich Re
Munich Re (Group) Added value within the group Diversified structure More security Munich Re (Group)* Reinsurance Munich Health Primary insurance Corporate Insurance Partner Great Lakes Reinsurance (UK) PLC KA Köln.Assekuranz Agentur GmbH MSF Pritchard Syndicate 318 Temple Insurance Company Watkins Syndicate Belgium Asset Management * This listing is incomplete and provides no precise indication of shareholdings. 09/09/2014 4
Munich Re's areas of professional competence What sets us apart from others Tailor-made solutions and efficiency Service and know-how Security and reliability We assume new and complex risks, extending the boundaries of insurability, developing innovative coverage concepts. We offer first-class modelling and tailored solutions, efficient reinsurance of standard risks, high capacity per risk exposure. We provide risk-oriented services such as underwriting tools like Nathan and MIRA, knowledge transfer in client seminars, efficient cooperation via connect.munichre.com. We support product developments. We facilitate attractive capital management: transfer of risks to the capital markets risk management for investments (ALM) capital relief Solvency II consulting 09/09/2014 5
Munich Re Reinsurance 12,000 Employees 28bn Premium Income Solutions and Products for more than 4,000 clients on 5 continents 1 Message: NOT IF, BUT HOW 09/09/2014 6
Reinsurance Present in all markets n Amelia n Atlanta n Chicago n Columbus n n Montreal Hartford n n n Philadelphia New York n San Princeton Francisco n n Toronto Vancouver n Munich n London n Madrid n Malta n Milan n Moscow n Paris n Zurich n Beijing n Calcutta n Dubai n Hong Kong n Kuala Lumpur n Mumbai n Seoul n Shanghai n Singapore n Taipei n Tokyo n Bogotá n Buenos Aires n Caracas n Mexico n Santiago de Chile n São Paulo n Accra n Cape Town n Johannesburg n Nairobi n Port Louis n Auckland n Melbourne n Sydney 09/09/2014 7
IT Strategy
Global IT Organisation Munich Re Munich Re IT supports Reinsurance and Munich Health Munich Re (Group) Reinsurance Munich Health Primary Insurance Responsibility of Munich Re IT * Operation of Infrastructure Asset Management * 09/09/2014 9
From individual Solutions to Global Standards 1997 2014 Client system Statistics forecast GIDIAL Forecasts Statistics PC RAIS (Non - life) SICS PC, RDIAL SICS MROC clients Non - Life incl. Healthcare UWPF (Fac/Treaty) + SAP-FS-RI/RM- NL/ FS-CD + GPS + GRP Fac and treaty systems ERIS 95 ERB T ERB A ERB Sach ERB L ERB Comp. Treaty ERIS 95 RAIS (Non - life) Treaty Treaty ERIS 95 X01 SICS SICS MROC Fac MROC Treaty Life Non - technical Accounting Actuarial Tools + SAP-FS-RI/msg.LRM/FS- CD + GPS SAP Global Template Claims system Technical accounting Non - tech. accounting Text email HUK claims RESY SAP/R3 M/Text M/Mail RAIS (Non - life) SUN package WP Compuserve SICS HUK claims SICS SQL. COMM M/Text M/Mail Data info M/Text Exchange SUN package WP, MS Word Exchange Infrastructure & Techn. Platform Windows,.net, LINUX, SAP, SAP-BW, ORACLE Corporate Network, MRWeb, MS Exchange, MS Office Standard SAP Global Microsoft IT Governance Multi-Sourcing 09/09/2014 10
The implementation of fundamental processes, structures and applications are the basis for today s & tomorrow s success Hub/Service Center, Governance, Shared Services AD Global IT organisation Consolidation in Americas and EMEA Near-/offshoring (Data centres, shared services, India) Service structure AD / Multisourcing Consolidation of infrastructure Sourcing Service based AD UWPF,GLORIA, OMNI, Global Template, ECON etc. Service structure Infrastr. / selective outsourcing helpdesk Global network, Email, Security Microsoft, SAP, ORACLE, EssUP, PMBok ITIL based infrastructure Basic infrastructure Consolidation of global applications IT standardisation/ Technology Roadmap / Methodology 1997 2000 2002 2006 2009 2015 11
Global IT Organization of Munich Re Overall IT Strategy Aligned with Key Business Drivers Business Drivers Global risk management Global steering RI business Innovation Cost reductions IT Strategy Application Service & Sourcing Standards Rollout of global IT applications Retirement of local IT applications Global shared services Outsourcing Multi-sourcing Methodology Employees Technologies Employee Strategy - Service management - SW engineering expertise - Expert knowledge RI - Globalization 12 12
Infrastructure Key Figures 2014 Q2 Number of Munich Re employees ~ 12.000 Workplace 5.026 mobile devices 1,817 virtual desktops 13,120 clients in total Messaging 22,580 (15000) Mailboxes 16,6 Mio incoming Emails per year 10,7 Mio outgoing Emails per year 16,8 Mio threat Emails blocked per year including 574,500 SPAM Emails Server 1,440 physical servers 3,223 physical CPUs 13,952 virtual CPUs 6,721 cores LINUX and WINDOWS global Applications 324 core systems.net and SAP 1986 applications on clients Security 140,000 damaging / vicious Data packages blocked Protection from Virus, Trojans, Spyware around 400,000 in circulation no virus attack Network - WAN 2,547,612 kbps in total 13,120 client => ~194kbps per user Storage 20.56 PB Data absolute ~ 40% Data growth per year 09/09/2014 13
BW traditional
Data Warehouse traditional LRM 3 Time zones BW-A SEM-BPS FSRI RM SEM-BCS SAP BW SAP GT Reserving UW Permanent Loads Complex Data Structures Redundant Data Storage Diverse Transformation Logic Future Requirements difficult and costly to implement 09/09/2014 15
Beyond Warehousing
Enterprise Data Warehouse and related Systems Target Architecture FS RI RM Life RM Non Life SEM BPS SEM BCS Data Services / SAP LT SAP Global Template UW EDWH Reserving 09/09/2014 17
SAP BW vs SAP HANA SAP BW old world Operational Reporting Management Reporting Data Enrichment Data Distribution SAP HANA new world Operational Reporting from Source System / Real-time Management Reporting Data Management, Calculation, Logic Simplification Additional Data Volume Performance One version of truth Innovation Predictive Analytics Simulation New Business Use Cases Big Data 09/09/2014 18
Beyond Warehouse Core Products SAP HANA HANA Studio BW on HANA HANA Live Business Objects Analysis for Office Design Studio Web Intelligence Lumira Data Management / ETL Data Services SAP LT Mobility SAP Fiori Reporting 09/09/2014 19
Processes Munich Re - Reinsurance HANA Usage scenarios Business units Reinsurance Strategy Product development Marketing Acquisition Distribution Client Management Underwriting Accounting/ Payment Claims Management Closing Planned: HANA / SuiteBUPA on HANA BUPA Central units Communication FS-RI, FS-CD Quelle: DPA Investment / Asset Mgmt Strategy & Planning Controlling General Accounting 3 Group Reporting HR IT Services CP Planned: HANA / Suite on HANA CO FI FI SEM HR MM CO, SD MM MM PS, PM Quelle: DPA Cross topics SAP LT fully supported by SAP appl. Data Services partly supported by SAP appl. Reporting Mobility Workflow non SAP appl. 09/09/2014 20
HANA-Transformation-Roadmap Realising of potentials until 2018 Phase I Phase 2 Phase 3 Project planning and preparation FS-RI on HANA & Roadmap 2.0 Define exact scope and setup Set-up infrastructure and define technical standards Upgrade of SAP-Portal Start first projects: Technical migration FS-RI (incl. PoC for upgrade FS-RI 7.0) Evaluation of quick-wins & business related innovation potential with HANA Implement core elements of target architecture Technical migration of SAP ERPand BW-Systems: FS-RI, Global Template, ECON, HR Operative Reporting for SAP- Systems with HANA Operative Reporting for non-sap- Systems with HANA Implementation of quick-wins Plan & Design selected innovation topics Realising further HANA value for Business and IT Implementation of innovation topics like Smart Financials, businesscritical simulations Preparation Implementation Innovation 2014 Start in Q 2 2015/2016 2017/2018 09/09/2014 21
Beyond Warehouse Steering of HANA Transformation Steering Committee Business Representatives Program Management Core Team Technology- and Domain Experts Portfolio Steering Project 1.1 Project 1.2 Project 1.n Project 2.1 Project 2.2 Project 2.n Project 3.1 Project 3.2 Project 3.n Tech.Architecture Infrastructure Line 1 Line 2 Line 3 09/09/2014 22
HANA means to us a strategic initiative with board support high investment to guarantee future proofness a long, complex endeavour that requires stringent steering new technology, new architecture, new operating models a challenge! SAP HANA will enhance our application- and reporting landscape significantly SAP HANA will be the enabler for innovation 09/09/2014 23
Dr. Rainer Janßen CIO Munich Re rjanssen@munichre.com +49 89 3891 2565 Thank you very much for your attention
Backup
Munich Re SAP System Lines Potential Target Scenario ERP Systems HANA A51 - FS-RI HANA AG1 GT A11 Archiv HANA A31 HR A21 - Staris ETL & Front End Systems new new new Axx SLT A1D Data Services A1R BO Reporting DWH Systems HANA new A61 EDWH HANA new UWPF Reporting A41 ECON Further Systems AS1 - SolMan AP1 - Portal? BPM 09/09/2014 26