Managing Manulife’s Innovation and Transformation Agenda

Harry PickettSVP and Chief Technology Officer Global Information Services January 31, 2011

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AGENDA

Manulife “Who are we?” Service Delivery Complexity Global Information Services Strategy Overview Role of Global IS Governance Business Value Creation through Enterprise

Architecture Information Technology Landscape Changes and

Drivers Three Current Case Challenges Underway Q&A

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Manulife is a leading Canadian-based Global Financial Services Group

Established in 1887 A Federated Business Model that operates in Canada

and Asia through Manulife Financial and in the United States primarily through John Hancock

Serving millions of customers in 22 countries and territories around the world

More than 20,000 employees and thousands of distribution partners

Receiver of numerous awards and recognition for our customer service, our products, our innovation and people

Check us out at www.manulife.com

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We deliver our services through a complex global service delivery model

1. Manulife’s Infrastructure and Operations data centre services are managed by over 900 employees in 6 major centers

2. …with services delivered by 5 major vendors from 10 core centers

3. Manulife’s Applications Services are managed by 1,865 employees in 6 major centers

4. …with development and support services delivered by over 11 vendors in 12 centers

5. …with voice and data services delivered by 4 strategic telecommunications carriers

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Our goal is to deliver an exceptional client experience at the lowest possible cost

= Manulife I/O Sites

= Vendor I/O Sites

= Manulife Applications Centres

= Vendor Application Centres

= Voice & Data Services

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Understanding the business strategy is the key enabler for delivery of successful business processes, applications and infrastructure and to set the innovation and transformation agenda

Technology / Infrastructure

Business Processes

Applications

Globally integrated workforce Highly collaborative workplace Maximize value of information Continual pursuit of Operational Process Excellence

Global application services delivery model “State of the art “ standard tools & methods across all divisions Leverage competencies from across the company Examples of world class applications in production Tight alignment of operations and application management

Global infrastructure service delivery model Highly robust and secure Multi-vendor delivery of “utility-like” services Seamless end user connectivity Consistent Service Management discipline across the enterprise

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We use our Global IS Governance Structure to set the priorities, execute the staff work and sanction decisions

Global Information Services Executive Committee (GISEC)

(Meets Monthly)

Global Information Services Leadership Committee (GISLC)

(Meets Every Four Months)

4 Global Information Services Governance Councils(Meets Monthly)

12 Standing Working Groups(Meets Bi-Weekly)

Task Forces(Meets as Required)

Architecture Review Board(Meets Monthly)

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We run the Gauntlet in most aspects of our innovation and transformation journey

Driving the necessary changes has not been easy due to the Federated nature of our organization

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Requirements need to be articulated in language the business understands to secure the necessary funding

Common standards

& processes

Governance

Shared

services

Efficiency &

Risk

Management

Enterprise Architecture

OutcomesAgility and Faster Time to Market

Faster time to market, business agility, better preparedness for acquisitions & mergers integration, better visibility through business process optimization for critical applications

Increased IT Operational Excellence Obtain efficiencies, reduce complexity, cost reduction, consolidation, rationalization and intelligent

integration. Optimization of technology and applications architecture. architect holistic business and technology solutions, leverage shared services, reuse common interfaces and processes.

Predictable Risk and Business Change Management Reducing the risk of making business application and IT infrastructure changes, by adopting best

practices, standards and building a map of application dependencies

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We take complex projects/programs and translate them into business value explanations

Projects/ProgramsBusiness Value

Agility OPS Excellence Risk/Change Management

Active Directory (ID & Access Management) Reduces Complexity Reduces Audit

Exposure

Global International Network GNO Easy to Expand Asset Optimization

Network Redundancy & Improved DR

Desktop Virtualization Faster Provisioning Enhanced DR/BCP & Security

IT Service Maturity Program Obtain Efficiencies in IT Operations

Best Practices Adoption

Global Data Center Strategy (Project Owl + Phoenix + Workday)

M & A Enabler Technology Optimization

Adoption of Standards

Enterprise Storage Strategy +

Rationalizations

Improved Access to Data & Information

Decrease Cost of Ownership

Reduce Compliance Problems

Enterprise Messaging & Collaboration

Standardized Email Environment

Improved User Productivity

Best Practices & Standards

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Technology is changing at a rapid pace, how we embrace and harmonize the impacts is key to our innovation and transformation agenda

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• Internet• Web 2.0• Social Networking

“Flat World”

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Understanding what is driving these shifts helps us jointly prioritize our technology agenda to support the business

Business Drivers

Cultural Drivers

Technology Drivers

• economic downturn• reductions in IT budgets• need for efficiency, effectiveness

• retirement risk• undocumented legacy knowledge• transition from Gen X to Gen Y

• rich mobile devices• cloud computing• advancements in architectures and associated development languages

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How familiar does this look in your respective organization?

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Manulife Financial has adopted a transformation model to execute our application modernization and consolidation strategy

• New Product Development• Operations Efficiency / Straight-through Processing• Distribution• Accelerated Speed-to-Market

• Elimination of low-value applications• Reduced Application Support Costs• I&O Reductions• Software Licensing Savings

• Modern Environments for strategic applications• Upgrades / Platform Currency • Replatforming, Rehosting, Decommissioning• Leveraging Application architectures / tools

• Metrics• Infrastructure Outsourcing• Best-in-class processes (ITIL)• Global Resourcing

DevelopmentProduct & Process

Improvements

DevelopmentProduct & Process

Improvements

ApplicationModernization

ApplicationModernization

ApplicationConsolidation

ApplicationConsolidation

OperationalEffectiveness

OperationalEffectiveness

SavingsReinvested

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Business analytics and intelligence is a hot topic on our business and IS strategic agenda, tackling this issue is a complex task

Struggling to meet Business Information Needs

Various Levels of Data Management

Understanding

Mixed levels of business engagement in Data

Management

Inconsistent or Informal Data Management

Practices

Limited line of sight to Data

Asset Inventory Data Management Efficiency

Opportunities

Immature Data Governance

Establishment of the foundational pre-requisites is how we are approaching our data management efforts

Business Information Needs More formal understanding of the business strategic information needs is

required Need to help the business transition from Data Hunter to Information Consumer

Current Capabilities Business and IT are engaged and understand the need for better data management

practices Need to better understand their current capabilities (roles, responsibilities,

practices and disciplines)

Education and Communication General awareness of Data Management concepts and best practices Teams are looking for more education and awareness of DM efforts in the Business

and IT

Roles and Responsibilities Several efforts are aligned with industry best practices Need to be reinforced with sustainable data management capabilities

Leverage and Governance Many common challenges and opportunities to drive increase value and reduce costs Need formalized practices supported by a common data governance model

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The Digital Universe Is Growing Faster than Global IT Spending & Staffing

Source: IDC Digital Universe White Paper, May 2010

CAGR (2008 thru 2012)

DigitalUniverse

WW ITSpending

WW ITStaffing

51%

2% 1%

Source: IDC.

70% 85%

Of the digital universewill be created by individuals

Of the digital universe willbe the responsibility of organizations to manageand secure

Better management of our data growth and storage requirements is also a key focus area for us

Explosion of multiple new data streams

— Virtualization / Cloud / Social Media / Digital Everything

— Next Gen Business Intelligence and TNT – The Next Thing

Growth demands storing more for less

— Deduplication, compression and thin provisioning

— Converged connectivity and “acceleration”

“Blurring” of Memory and “Storage” uses

— Widening system and HDD performance gap — Flash memory for extended cache and high

performance storage tiers (solid state drives) — Smarter data placement – blocks and files

Storage as a Service – increased SLA demand

— Availability/Recoverability – always on Business agility for structured and unstructured data

— Security, Encryption, Compliance and Governance built in and leveraged where required

Can you afford petabyte scale… and beyond ?

Cost

of

Sto

rag

e

Not a long time

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We have adopted an Enterprise Storage Strategy to better manage our growth and contain cost

Centralize & consolidate to leveraged economies of scale SAN and NAS to leverage larger storage pools where appropriate Policy based automation to reduce operational efforts

Storage tiers to contain costs of growth Non-prod vs Prod split into mission critical vs non Align storage arrays to business SLA – enterprise vs mid-range Thin provisioning and data dedupe

Tier Data Protection to remove contention & enable future DR Archive to contain future growth – email & files Best of Breed while leveraging past investments as much as

possible Dual vendor strategy

Asset lifecycle strategy to reduce capital expenditures yet align procurement timeframes

The emerging challenge, collaboration and communication is now centered around people and is device agnostic

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Business DriverSeamless and secure access to the people and information you need, whenever and wherever you are.

Technology EnablersIntranet, Internet, Social Networks, Cloud Computing, Mobile Devices, Messaging, Web/Video Conferencing, Unified Communications ….

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Questions