A Solution to Services Oriented Modernization for ...hexaware.com/casestudies/legacy_mod_wbr.pdf · Modernization for Insurance CarriersModernization for Insurance Carriers ... •

A Solution to Services Oriented Modernization for Insurance CarriersModernization for Insurance Carriers

J i W bi b H T h l i & O l M d i i S l iJoint Webinar by Hexaware Technologies & Oracle Modernization Solutions 10 August 2009

Hexaware Overview

15th

Largest Software Exporter178

Active Clients Served W ld id (D ’08)

5200Employees Globally (Dec’08)

(NASSCOM) Worldwide (Dec’08)p y y ( )

56 Million-Dollar Clients

66Fortune / Global 500 Corporations

262 USD mn Revenues in CY ’08

(Dec’08) as Clients (Dec’08)

Founded in1990 – Nearly 2 decades of continued value creation

2© Hexaware Technologies & Oracle Corp. All rights reserved.

y

Team ProfilesTom 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 TechnologiesDurgesh 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 g gy y

Bombay

Ghanshyam Upadhyay, Project Director – Hexaware Technologies O 18 i h d th BI&A d li t t H M b i &• 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

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 , pp p , p genormity 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 theinitiatives for its customers – each having its own unique challenges and the diverse approaches used to achieve similar objectives


“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

ki S ' t i t ti th "working. So, we're trying to retire those."

Benjamin MorelandDirector of Foundation Services, The Hartford

August 10, 2009 Copyright Oracle CorporationCopyright Oracle Corporation 55 10 August 2009

Business Climate is Changing Focus is on Business TransformationFocus is on Business Transformation

PACE OF BUSINESSI i t ti f

INNOVATIONC i dIncreasing expectations from

customers and partners to provide answers sooner

Companies are under pressure to bring products and services to market faster

GLOBALIZATIONCustomers, supply chain, and competition have all become global

REDUCE COSTSRelentless pressures to drive additional efficiencies…do more with less

global

"In a time of accelerating turbulence, the g ,valuation of a company will be strongly affected

by how it executes change."

August 10, 2009 Copyright Oracle CorporationCopyright Oracle Corporation 6

Typical Legacy EnvironmentsHardware Platforms

• IBM mainframes (13,000 +)• IBM AS/400 (300,000 +)• Bull GCOS• Dec Alpha

Databases• Sybase• VSAM, ISAM• IMS/DB• DMSII• Dec Alpha

• Unisys

Operating Systems• MVS, OS/390, z/OS

• ADABAS• DATACOMM• IDMS

Programming Languages• TPF, z/TPF • VSE, VM, z/VM • VAX/VMS

TP M it

Programming Languages• COBOL • Assembler• PL/1• NATURALTP Monitors

• CICS• IMS

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.”


Modernization Payback

7080

Stay on

506070 Stay on

mainframe

Re-host to lower

legacy

Modernize

3040

Re host to lowercost platform Cumulative

Savings

Modernize

01020

Project Investment

Break-Even Point

0Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10


Legacy Realities and Consequences

Intense Pressure to Minimize IT Costs and Increase Agility

• Maintenance for 1000

Legacy Skills are Diminishing

• Loss of business process knowledge as

of Business-Critical Applications are on

66%

MIPS legacy environment runs $3M-$5M/yr

• Lock-in and high cost limits funds for new i iti ti

p gpeople retire

• Increased risk to supporting, enhancing core

li ti

ppLegacy Platforms

initiatives• High integration cost and

time-to-market delays impact front-end agility

applications • IT cannot react quickly

to emerging business requirements

“Gartner predicts1 by 2008

of IT Budget60-80% 35M LOC

Gartner predicts1, 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 andof IT Budget

Consumed by Maintenance Cost

(Apps and Systems)

Maintained in Legacy Apps at an Average Fortune

100 Company

portfolio due to a decline in skills and knowledge of these systems (0.7

probability).”


1Dale Vecchio, Gartner, “Leverage Your Mainframe Applications With SOA,” 25 October 2005.

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 thereS t I t t• System Integrators

• 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• FREE architecture, planning, POC and jump start hands on technical resources• We have a partner eco-system to provide the means to get there


Oracle’s Architectural VisionIntegrated Solutions

Integrated business processesg pIntegrated business intelligence Integrated user interface

Standard components• Certified configurations• Synchronized releasesy• Easier to manage• Greater security• Higher reliability• Lowers cost of ownershipLowers cost of ownership


Multiple Modernization Approaches

COTS Replacement custom apps with COTS: Oracle Apps for HRMS, CRM, Financials, Procurement

COTS Replacement custom apps with COTS: Oracle Apps for HRMS, CRM, Financials, Procurement

OracleOracleRe-ArchitectBy uncovering business rules, Re-ArchitectBy uncovering business rules,

Service OrientatedService OrientatedOracle

ModernizationOracle Modernization

y g ,mining models and forward-engineering to re-useable services, BPM flows, and Business Rules.

y g ,mining models and forward-engineering to re-useable services, BPM flows, and Business Rules.

Orientated ModernizationLeave applications on MF, extend in place via adapters, WS, etc.

Orientated ModernizationLeave applications on MF, extend in place via adapters, WS, etc.

Re-HostMigrate to open systems with Re-HostMigrate to open systems with

Automatic MigrationAutomatic Migrationautomated process, preserving

code and data, SOA enable and integrate

automated process, preserving code and data, SOA enable and integrate

Mi lti l h b d d i ti l

MigrationConvert 4GLs to COBOL or Java, PL/I to C/C++, etc.

MigrationConvert 4GLs to COBOL or Java, PL/I to C/C++, etc.


Mix multiple approaches based on your modernization goals

Service Orientated

Batch

Orientated Modernization Oracle BPEL

CICS & IMSCICS & IMS

Portal

CICS & IMSCICS & IMS

3270

O l BI

Access

COBOL

Oracle BI

Oracle Data Integrator

E-LT MetadatE LT Agent

ISAM/VSAM/IMS/D t /

DB2 Oracle ESB

Metadata

E-LT Agent


/IMS/Datacom/IDMS

Oracle and Service Orientated Modernization

System

Enterprise Enterprise ManagerManager

GOVERNANCEREAL-TIMEVISIBILITY& Alerts

BAMBAM

Events

CEPCEP

Enterprise

BPA SuiteBPA Suite CICSIMS/TMVSAM

AdaptersAdapters

BPEL Process ManagerBPEL Process Manager

ORCHESTRATION GOVERNANCEy

Monitoring

Web Services Web Services ManagerManager

& PROCESSING Business Monitoring Data Streams

pModeling

BPM SuiteBPM Suite

VSAMIMS-DBTuxedo

Data IntegratorData IntegratorOracle Service BusOracle Service Bus

ROUTING & DATA SERVICESNativeBPEL

Business Rules

Human Workflow

WS PoliciesSecurity

EnterpriseEnterpriseJDeveloperJDeveloper

Business UserModeling Adabas

DB2IMS-DB

CDCCDC

NonStop

Routing Transform DataQuality

ETL &Replication

gg

Mediation

R i tR i t

SOA lifecyclegovernance

RepositoryRepositoryApplicationDevelopmentFramework

pp

Oracle CoherenceOracle Coherence

VSAMSQL ServerPartnersPartners

NonStopOpenVMSAS/400IDMSDatacomJ2EE Application ServerMessaging

UDDIRegistryRegistry

JRockit VM & RT

Java and .Net Caching

Oracle CoherenceOracle Coherence


DatacomJ2EE Application Server(Oracle AS, WebLogic, WebSphere, JBoss)

Service Orientated Modernization with Hartford

Legacy Target Facts

• Hartford Insurance

• COBOL based system

Legacy

• Services Oriented Architecture

• Reduced time to market by 75%

Target Facts

COBOL based system

• 4 - 6 month to deliver business changes

• 30 staff needed for

• BPEL

• Abstracted services from existing legacy

• Reduced TCO

• Created a plug in play environment for future 30 staff needed for

production implementation

applications changes

• Increase Business agility

• Can replace underlying services with open systems in future

http://searchsoa.techtarget.com/news/article/0,289142,sid26 gci1196464,00.html


p g , , _g ,

Large Insurance Claim Processor –Architecture and Benefits (In progress)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

Oracle WebLogic

Oracle Coherence DataImproved availability• Linear scalability protects against unexpected

shutdowns from sudden spikes in volume• If the mainframe goes down, the middle tier can still

Oracle Coherence Data Grid

service transactions against cached data

Reduced mainframe costs• Plan to eliminate millions in annual mainframe costs

MainframeMainframe

IMS/DB Database


• Plan to eliminate millions in annual mainframe costs

Re-Hosting

BatchSISame EnvironmentSame Environment

COBOL

ISAM/VSAM

3270COBOL

JES

COBOL

3270

Oracle RACISAM/VSAMDB2Oracle Tuxedo


Tuxedo as a rehost platform

Intranet/Internet ClientsPOJO ● JSP/Servlet

.Net ● J2EE

ESB MessagingWeb Svcs. ● EJB/RMI

JMS MQ ● FTP ● SMTP

Web Services

Other Applications and Services

Application and Transaction Services

Oracle TuxedoCICS

Web Application Server

Oracle JoltPortable Java

Client

CICS or IMS Emulation

CICS Transactions (COBOL)WTC

WebLogic-TuxedoConnector

Servlets implementing 3270 UI

Session Services

WebLogic Tuxedo Connector

Tuxedo Services and App Monitor

Oracle Database

Grid

tn3270

Oracle Confidential and Proprietary

Re-hosting Case Study – Groupama

• World's 3rd largest property and casualty mutual, 2nd biggest

Legacy Environment

• Migration of mainframe life insurance portfolio

• Strong ROI with 2 year break-even on the project

Modernization Project Results

y , ggmulti-line insurer and the leading mutual insurer in France

• Annual revenue of € 14.2B and l € 9B 1 3M

pmanagement system and Back Office applications & data to open system HP-UX environment

p j• Launched new initiatives in

banking, auto insurance and financing, agriculture insurance, health & provident

assets close to € 79B. 1.3M insurance contracts

• Expensive mainframe costs (hardware, maintenance) L li ti b f

• Three migration projects carried out in parallel

• Powered by Oracle’s high perform. re-hosting architecture using Tuxedo

insurance • Leading to €544M in net profit

(+34%) and ROE of 14.4% (+2.9%)

• Legacy application base of 1,600 programs

• Concerns about IT agility, skill sets in a fast-moving, competitive environment

architecture using Tuxedo and Oracle DB

• Migration Partner:

• Cost savings boosted margins and enabled Groupama’s stock market flotation

competitive environment

“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

Case Study WalkthroughLarge EU based Leasing Company

Overview of Hexaware Modernization Stack

• Involved in modernization projects since 1998• Large pool of Enterprise Architects• SOA expertise on IBM, Oracle and Microsoft platformSOA expertise on IBM, Oracle and Microsoft platform• Tools & Frameworks to reduce modernization efforts


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, 1200+ employees & y , p y

about 70000 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 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


Snapshot - Legacy ModernizationDuration: 3 5 years Team Size: 400+resources Effort Estimated: 5000+ Person Years

•Application Security•Back up and Recovery•Quality Assurance•Infrastructure Consulting• Data Migration of over 100 GB of • Dedicated testing team for end-to-end

Duration: 3.5 years Team Size: 400+resources Effort Estimated: 5000+ Person Years

Other Services

Infrastructure Consulting• Data Migration of over 100 GB of historical data covering -

AssessmentExtractionCleansingTransformation

Dedicated testing team for end to end testing of the entire landscape

• Unit / Module Testing• Regression Testing• System Integration Testing• Performance Testing

Services• Integration to SAP system and 25+ other systems

• Design, Development & Implementation of Refinancing and

a s o at oLoading

Re-engineering

and 25+ other systems• Development of batch and online

interfaces that includes the following steps:

• Integration Need Assessment• Architect & Design

Implementation of Refinancing and Collections system

• Development of Batch Updatesand Reports with Unix Shell script

• Maintenance of Legacy Mainframe systems – Offer, Contract,

• 80 legacy applications on mainframe, client-server and old web technologies

• Migrated 4300 legacy programs to 8M+ J2EE code

• Involved Code Mining, Reverse /

g• Implementation• Interface Maintenance• Extensive Custom & Legacy

Integration• Adapter & Connector

D l t

yCollections, Refinancing and Asset Management


Forward Engineering• Evolutionary & Incremental approach

Development

Single Largest IT Outsourcing Engagement by a German Company to an Indian IT VendorNASSCOM 2002

The Process Roadmap – To reduce TCO


Application Landscape - THEN


Application Landscape - NOW

Functional Landscape

Technical Landscape


Transition of Integration Landscape


Case Study WalkthroughLarge EU based Insurance Company

Why Insurance Carriers Modernize

• Provide improved service to brokers, agents & customers

• Bring new products to market more quickly

• Provide improved service to brokers, agents & customers

• Bring new products to market more quicklyIncrease Business Bring new products to market more quickly

• Better business intelligence for sales analysis, profit analysis

Bring new products to market more quickly• Better business intelligence for sales analysis, profit

analysis

Business Agility

• Minimize Reliance on Legacy Skill sets• Make use of older technologies that are dying out• Don’t be the last one using a technology

• Minimize Reliance on Legacy Skill sets• Make use of older technologies that are dying out• Don’t be the last one using a technology

Mitigate Legacy Risk g gyg gy

• Reduce multiple environments resulting from mergers• Reduce multiple environments resulting from mergersReduce • Reduce multiple environments resulting from mergers and acquisitions

• Consolidating the number of technologies and using packages where appropriate

• Reduce multiple environments resulting from mergers and acquisitions

• Consolidating the number of technologies and using packages where appropriate

Reduce Total Cost of Ownership


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

N d f LMNeed for LM• Time to market for new products• Need for “rule based” straight through processing for New• Need for rule-based straight through processing for New

Business, Claims and Underwriting • Bring multiple LoBs (Bank & Insurance) under a single g ( ) g

system• Need for a Single customer view


Strategy & Overall Roadmap – 3 Year Plan

Phase 1• Mine Business

Phase 2• Implement the

Phase 3• SOAize all

Phase 4• Expose

Rules from the existing application

• Identify the Ins rance Prod ct

Business Rules Engine in 3rd

Party product –VPMS

customer centric internet applications Common look

important legacy components as SOA servicesInsurance Product

Definition rulesVPMS

• Implement Product Configurator &

• Common look and feel

• Single customer view

SOA services in a phased manner

ginterface with existing legacy PAS

customer view


Overall Strategy: Focus on quick benefits while reusing existing Legacy Assets

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 engineModification 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)

frameworkframework– Development of front-end layer using a presentation framework– Integration of applications through common portal

Benefits: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 Capabilities - Summary

• Hexaware Modernization Service Portfolio– Application Portfolio Analysispp y– Solution and roadmap for legacy modernization– Rule Engine Implementations– Core Insurance Solution Implementations– Provision of non-core solutions – BI, ERP, Testing

• Hexaware ContactsKapil Mehta kapilm@he a are com– Kapil Mehta – [email protected]

– Grant Keller – [email protected]


Roadmap to Modernization

Business Case

Partner Ecosystem

Modernization Discovery

Modernization

Discovery

Modernization Roadmap

Modernization Architecture Blueprint


Next Steps

• Initial conference call to understand your specific business drivers and requirementsCustomized Hexaware and Oracle Modernization• Customized Hexaware and Oracle Modernization Web Cast

• On – site consultation • Oracle Insight

• Two day business level modernization strategy sessionsession

• Contact Us• [email protected] 603-502-7635• [email protected]


Resources•External Modernization Resource CenterOMA: www.oracle.com/goto/OMABlog: http://blogs.oracle.com/jblogService Orientated Modernization on the WEB: ServerSide Article


Thank YouThank You


www.hexaware.com

Documents

A Solution to Services Oriented Modernization for ...hexaware.com/casestudies/legacy_mod_wbr.pdf · Modernization for Insurance CarriersModernization for Insurance Carriers ... •