ins analytics canada leveraging disruption - saporito - final
TRANSCRIPT
Leveraging Digital Disruption for Innovation
Pat Saporito, Sr. Director – BI, Global COE for Analytics, SAP
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Internal
Digital: 4th Wave of Info Technology
1850
Industrial
economy
2020
Digital
economy
1990
Internet
economy
IT
economy
1970
$0.36T
$12.10T
All figures are in Trillions; 1990 international dollars; Source: Department of Economics, UC Berkeley, BAIN 8 MacroTrends Brief.
$27.50T
$90.0T
Gross
world
product
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
Living in a digital economy
90%of the world’s data
has been generated. 1
72%of insurers are forming new distribution partnerships2
212 Billion“Things” will be connected 3
The need to
automate
analytics
Connect
millions of
partners
Transform IoT
data into ‘pay
as you behave’
products
The need to
digitize
1 ScienceDaily, May 22, 2015 | 2 Accenture Digital Innovation Survey 20143 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC
43%of insurers plan to or have
acquired innovators/startups
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
Digital transformation is disrupting everything
75%Of B2B buyers use social
media in purchasing decisions
3.7XGrowth in global cloud
data traffic by 2020
21BConnected devices by 2020 Largest accommodation
provider owns no real estate
Most popular media
owner creates no content
Most valuable retailer
has no inventory
Will you disrupt or be disrupted?
People Data
ThingsProcesses
“Gartner Symposium/ITxpo 2015”; “IDC Social Buying Whitepaper 2014”; Cisco® Global Cloud Index (2015-2020)
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
Insurance Industry Disrupters
Types
Peer to Peer Insurance
Usage Driven Insurance
Spot Insurance
Aggregators/Quote
Engines
Other…
More InsurTech Sources:
CB Insights InsureTech Blog
TechCrunch Insurance
4
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
Digitization is transforming all aspects of insurance
Wants to become the
world’s first peer-to-
peer property and
casualty insurance
provider
Offers a new type of
insurance to meet the
needs of those
affected by climate
change and adverse
weather conditions
Uses thousands of
analytic models to
classify and
underwrite risk, adjust
claims and help
improve member’s
health and wellness
Insurance Leaders need INSIGHTS to deliver on their vision and goals!
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Internal
Race to InnovatePartner – Acquire - Invest
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Internal
The Analytics Native
• Began as an analytics company; morphed into an insurer
• Acquired by Monsanto (seeds) for ~ $1 Bil.
• Bayer (insectide) recently made a $62 Bil. Bid for Monsanto!
200+ data scientists analyzing 50 terabytes of weather
data/day!
The Climate Corporation aims to help farmers around
the world protect and improve their farming operations
with uniquely powerful software and insurance products.
…proprietary technology platform combines hyper-local
weather monitoring, agronomic data modeling, and
high-resolution weather simulations to deliver
climate.com, a solution that helps farmers improve their
profits by making better informed operating and
financing decisions, and Total Weather Insurance, an
insurance offering that pays farmers automatically for
bad weather that may impact their profits.
Backed by Founders Fund, Khosla, Google
Ventures, NEA, Index Ventures and Atomico.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
The Innovator
!
Insurers are using
their venture capital
funds to invest in
innovation!
6
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Internal
World Class Data & Analytics: Rarely Achieved
What we hear vs. what we see!
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Internal
Data is the fuel and Analytics is the engine of Digital!In leading organizations, executives agree that…
Decision making is
distributed across
the organization
Decisions can be
mapped directly to
company strategies
Decisions are
data driven
Decisions are
made in real time
75% 78% 62% 62%
Source: “Leaders 2020 The Next-Generation Executive: How Strong Leadership Pays off in the Digital Economy,” Oxford Economics, 2016
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal
Unlocking business value
from data – big or small
Creating an information
driven culture
– inside and outside
Maximizing the ROI of
BI investments
100101011010
Use Analytics
Today
Need Analytics
by 202075%
10%
Key Challenges
Increasing & Enabling Analytics Use
Capabilities Needed: Trusted Data, Data Integration, Change Management
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal
Individual Customer Journey
13
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
Source: Accenture, “Everyday Bank”
Financial Services Digital Ecosystem
New Partners…. and Competitors!
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Internal
Digital (R)EVOLUTION?
Extend the addressable market and
ecosystem
New digitally enabled
insurance products
Today Tomorrow
Core insurance business
New non-insurance offers
New digitally enabled
premium services
Core insurance business
Property & casualty insurance
Life insurance
Health insurance
Banking/Financial Services
Property & casualty insurance
Life insurance
Health insurance
Banking /Financial Services
Telematics e.g., Pay as you drive (PAYD); Pay as you live (PAYL)
Simple insurance
Context based offerings and next best offer (NBO)
Smart pricing
Micro/retargeting
Infotainment; gamification
More advanced digital sales support for brokers, agents & advisors
Vehicle road service; financial investment/coaching; health and
wellness management; home protection; et al.
Ecosystem/partner offers; auto tires/batteries; gym/health club;
home improvement; et al.
Use case examples
9
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Internal
End to End Enterprise Analytics
Integrated Data WarehousingEmbedded Analytics
Real-time Platform | Advanced Analytics | Smart Data Integration
Lead the CloudDeliver new analytics capabilities,
built natively on HCP
Interoperability and Support for
Hybrid Scenarios
Innovate the CoreModern, at scale on-premise
deployments
Mobile FirstStunning interactive experience
Pre
dic
tive
On-premise | Cloud
Act in the moment!
Transform the outcome!
Innovate without
constraint!
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Internal
Enterprise Analytics: Strategy to Execution
Execution
Feedback to
Strategy
Strategy
Link & AlignStrategy to Execution
Business Driven
Strategically Aligned
• Executive Business Sponsorship
• Analytics Governance
• Competency Center
• Information Architecture
• Technologies & Tools
• Sustained Funding
• Data Governance
• Trusted Data / Data Confidence
• User Training & Development Needs
• Increased User Adoption
• Increased Maturity
User Access & Usability
Improved Decisioning
Analytics
Strategy &
Roadmap
Corporate
Strategy
New Data /
Capabilities
Real Time
Analytics
Operational
Reporting
Exploration &
Visualization
Predictive
Analytics
Ad Hoc
Reporting
Corporate Data
Strategy &
Metrics
Performance
Management
Governance, Risk
& Compliance
Business Strategy
Analytics Strategy
Data Strategy
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Internal
SAP Data & Analytics Strategy Framework
ObjectivesBusiness
Needs
Business
BenefitTechnology Organization
Background and
Purpose
Current State and
History
Objectives and
Scope
Summary of
Needs
Envisioned To-Be
State
Priorities and
Alignment
Value Proposition of
Analytics
Expected Benefits –
Future State KPI
Business Case
Information
Categories
Architecture and
Standards
Tools &
Applications
Governance
Structure
Program
Management
Roadmap and
Milestones
Measurement
Education /
Training
Support
• Digital must be part of the overall business-driven data & analytics
strategy
• Strategy is operationalized by a Competency Center
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Internal
Digital Transformation Roadmap
• What does digital mean to
your organization? Your
customers? Your partners?
• How does digital relate to
your strategic
plans/initiatives?
• What are digital
Opportunities? Risks?
• Conduct pilot with existing /
new capabilities
• Test capabilities needed to
support pilot.
• Operationalize pilot
• Conduct next pilot
• Data management
• Analytics
• Data bases/ platform
• Business Processes
• Skills & Behaviors
• Agility
Define a Digital
Strategy
Review Digital
Capabilities &
Culture
Conduct a Pilot
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Internal
Merci/Thank You!
Available on Amazon
Pearson /FT Press &
other channels in print
and/or digitally
Download 1st chapter
(industry overview) free
Patricia SaporitoSr. Director, BI
Global COE for Analytics
SAP Labs, LLC
New York, NY
+1 (201) 681-9671
Blog: www.patsaporito.com
Digital/Innovation Resources:SAP Digitalist! Blog www.digitalistmag.com/
SAP Analytics Strategy Self Assessment Tool https://sap-bi-strategy-assessment.com/(includes links to Strategy and BICC Best Practices ebooks)
Hasso Plattner Institute for Design Thinking at Stanford Univ. http://dschool.stanfor.edu/