Chubb Fst It Wealth Management V1

IT Innovation & TransformationIT Innovation & TransformationPoised to strike deeper in a Changing EconomyPoised to strike deeper in a Changing Economy

Ian Cook – CIO & Senior Vice PresidentChubb Insurance Group of Companies

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Poised to Strike Deeper in a Changing EconomyPoised to Strike Deeper in a Changing Economy

Chubb vs S&P 500

Economic data with permission Roman Scott, Managing Director Calamander Group and economic spokesperson for British Chamber of Commerce, Singapore

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Certain ChangeCertain Change

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Uncertain ResultsUncertain Results

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Certain change, uncertain resultsCertain change, uncertain results

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But is thereBut is there

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LightLight

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at the end of at the end of

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The Tunnel?The Tunnel?

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……and thenand then

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Stock marketsStock markets

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Stock marketsStock markets

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Green shoots?Green shoots?

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CDO Premier LeagueCDO Premier League

Total $ USD 815 bnCDO Losses

Source Bloomberg Feb 09

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It ShrankIt Shrank

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OECD Leading IndicatorsOECD Leading Indicators

Source IMF & Calamander Group

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Optimism & DenialOptimism & Denial

Source IMF & Calamander Group

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Exports as % GDPExports as % GDP

185 %

94%

62 %

62 %

38 %

37 %

35 %

26 %

Asia is more – not less – dependent on exports today than it was a decade ago

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HoweverHowever

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Growth depends on peopleGrowth depends on people

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This is your timeThis is your time

BRIC

G7USD Trillion

“The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people”Craig Barrett, Intel 2004

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This is your timeThis is your time

BRIC

G7USD Trillion

“The world has arrived at a rare strategic inflection point where nearly half its populations – living in China, India and Russia – have been integrated into the global market economy, many of them highly educated. We’re talking about three billion people”Craig Barrett, Intel 2004

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2000 2010 2015 2020

Drivers of ChangeDrivers of Change

Business scalabilityIf eastern economies emerge stronger – from this recession

Markets open up, buying habits change, maturity improvesAt what point do we reach the “knee” of its growth trajectory?

How much will change will we experience in economic norms?

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HypothesisHypothesis

The Insurance value chain is composed of information and a series of information exchanges. An insurance business entity makes informed decisions based upon quality information arising from reliable data.

USA

19 OECDs incl. USA

Percentage of non-residential gross fixed capital formation for ICT as % of total economy

Source OECD.org0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1980 1990 2000

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Products

Distribution

Your traditional value Proposition may be based a product set through a single distribution channel

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Products

Channels x 2

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Products x n…

Channels x n…Prepare for adaptability in response to growing complexity

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Response to complexityResponse to complexity

Growing complexity in response to market opportunity:-Business infrastructure must quickly adapt vertically and horizontallyReduce time & cost to market for each new opportunity

Our goal should be to build a scalable and repeatable business model + the supporting infrastructure, processes and people

Simple Complex

Agile Cumbersome

Negative impact on expense and flexibility

Positive impact on expense and flexibility

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Operational excellence Operational excellence ISIS a strategy a strategy

Brand

Poor SERVICE Good

Low CO

ST High

Low CO

ST High

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Growth

Cumbersome - Adaptability - Agile

High Productivity Low

High Productivity Low


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Expense

High - Cost/Transaction - Low

High Transactions/Staff Low

High Transactions/Staff Low


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Becoming InformedBecoming Informed

Profitability

Poorly - Informed - Highly

High - Data Quality - Low

High - Data Quality - Low

IT LeadershipThe Road Less Traveled

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Credibility is a valuable currency in this cycle

Conduct Situational analysis

Define Strategic Choices &

Vision

Measure, Reward &

Refine

Execution

Learn

Focus

Execute

Adapt

Learning & Adaptive cultureLearning & Adaptive culture

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2008 ASEAN CIO Leadership Survey2008 ASEAN CIO Leadership Survey

Operational performance

Financial performance

Sustainability performance

Technology Architecture

Technology performance

ICT Skills

Strategic Capability

Employee Capability

Governance Capability

Permission

2008 ASEAN CIO Leadership StudyThe changing role of CIO:From Technology excellenceTo Business impact

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ASEAN quotients of CIO excellenceASEAN quotients of CIO excellence

Leadership Quotient LQ

Technology Quotient TQ

Performance Quotient PQ

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Leadership ChallengeLeadership Challenge

Oxymoron : “IT and Business Alignment”Where are the business decisions being made?It is a simple fact that :- One of the key differentiators between any two companies competing in the same space, is the extent to which the board recognises the strategic importance of technology to the agility of their business model and how this helps them to compete in any given market

http://www.mckinseyquarterly.com/managing_it_support_interview_with_CIO_of_NetApp_2154

Even in the tech-friendly realm of Silicon Valley, IT leaders struggle to inspire the most seniorexecutive group and their own IT people to :-Move beyond an order-taking mentality; by striving to : Genuinely understand the strategic needs of the business;and then : Proposing innovative solutions to solve strategic business problems.

Marina Levinson – CIO NetApp

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Leadership challengeLeadership challenge

Ray Kurzweil – on the pace of progress “In the 19th century, we saw more progress (in technology) than in the nine centuries preceding it.In the first 20 years of the 20th century we saw more advancement than in all of the 19th century.And we won’t experience 100 years of progress in the 21st century – it will be more like 20,000 yearsof progress at the current rate” .

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Why is it…Why is it…

… that so many senior business executives in our industry, plainly do not welcome discussions around technology?

Is I.T. perceived as a cost or a strategic imperative?Is it fear?

Strategy

Managing capital

Business model

Markets

Product & distribution

Human capital

Technology

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Step 1Step 1

Keep the shop front open and ready to do businessDrive sustainable profitable growth

Be clear on our Job Definition :-

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Not “Wrong”but not “Right” either

Where is the mindset in your organisation?Where is the mindset in your organisation?

“A CIO’s biggest challenge?... Cost Control.”Ian Campbell, CIO, British Energy, FT, 19th September 2007

We Need to change mindsets at every level in our organisationFrom a cost perspective to a VALUE perspectiveFor the CIO, it’s the question that never goes away: Can value methodologies really prove IT’s worth to the business?

CIO, April 15th 2007

Typically, IT value methodologies do not adequately measure, much less prove, technology’s value to the business.John Boochever

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Step 2Step 2

No business person – worth his or her job – is going to want to talk to you until you can unequivocally prove the value that has been achieved from an investment in technology

Demonstrate credibility :-

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Language barriersLanguage barriers

For example :- Rather than talking about “Architecture” let us discuss how technology can support “An adaptive and learning organisation”Every CIO, IT department manager, analyst, programmer, tester, help desk, IT operations staff, etc. etc. must adopt the language of business in order to describe and understand the true context of their endeavors

Business Domain

StrategyGrowthMarketDistributionCapacityProduct

ServiceProductivityExpenseProfitabilityBusiness ModelCustomers

IT Organisation

InfrastructureMachinesArchitectureSecuritySOABPM

Web2

SLA’sBandwidthBIProject deliveryProcesses

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Leadership challengeLeadership challenge

If, as we suspect… Technology is not yet viewed for its strategic significance in the organisation, there is a good chance that IT is not engaged early enough in the development of business strategy and thought leadership

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Step 3Step 3

Which Table?Have your “earned” your seat at that table?Talking the language of business

Getting “A seat at the table” :-

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Step 4Step 4

If we are :-1 Talking the same language2 Presenting credible data on the value generated from technology investments

There is a good chance that we can bring our unique skills and experience to bear in providing technology solutions to strategic business problems

Provide something meaningful :-

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Credibility ProfileCredibility Profile

Accepted Colleague

Critical Resource

Trusted Advisor

BudgetsEscalation path

Cost PerceptionIT “Up-Time”

AutomationService CatalogueSourcing Options

ROI

Solution AvailabilityPerformance Metrics

Policies

Scenario PlanningPredictive Analysis

Portfolio ManagementSourcing Strategy

ROABusiness Agility

DashboardCompliance

Impact on Business

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Step 5Step 5

All decisions about the various coures of action required to support a strategy must be owned by the board – or at least in the most senior executive group that we have in our organisationThis clearly includes decisions around technology investments

Move Technology Investment Decisions outside of IT :-

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““Order Taking”Order Taking”

!! * @@ * @

# !!! *** !!

@ !!!!!

Bla bla bla bla bla bla



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Step 6Step 6

I.T. and Business….

It’s ALL about People

Destroy the order taking mentality

Develop your people :– Almost everyone in your IT organisation will need some degree of leadership competency

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““Today and tomorrow’s CIO Today and tomorrow’s CIO must lead like a CEO, analyse must lead like a CEO, analyse like a CFO and execute like a like a CFO and execute like a COO. It’s the hardest job in any COO. It’s the hardest job in any large organisation”large organisation”John Ruggero, a Vice-President of Gartner John Ruggero, a Vice-President of Gartner EXPEXP

Today’s CIO

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