Business IntelligenceBusiness Intelligencein thein the

Insurance IndustryInsurance Industry

Tom Chesbrough, President & CEOTom Chesbrough, President & CEO

Kapstone Systems, Inc.Kapstone Systems, Inc. Emerging Technologies &Emerging Technologies &Data Management SeminarData Management Seminar

April 23rd & 24thApril 23rd & 24th

……management management in action.in action.DATADATA

INFORMATIONINFORMATION

KNOWLEDGEKNOWLEDGE

INSIGHTINSIGHT

What is Business Intelligence?What is Business Intelligence?

Business Intelligence is a process of Business Intelligence is a process of assembling disparate data, transforming it assembling disparate data, transforming it to a consistent state for business decision to a consistent state for business decision making, and empowering users by making, and empowering users by providing them with access to this providing them with access to this information in multiple views.information in multiple views.

Why is it Important?Why is it Important?

• Data overloadData overload

• Competition from all sidesCompetition from all sides

• A need to “know your customer”A need to “know your customer”

• Immediate reaction to marketplace shiftsImmediate reaction to marketplace shifts

Harness the PowerHarness the PowerWithin ComplexityWithin Complexity

• PricingPricing• Risk AnalysisRisk Analysis• RetentionRetention• New Business New Business

AcquisitionAcquisition

ComplexityComplexity

ofof

InformationInformation

Billing

Reporting

Claim

Policy

Billing

Claim

A/P

Policy

Policy

The Business Benefits of Data WarehousingThe Business Benefits of Data Warehousing

Better Qualityof Data35%

Better Understandingof the Business

20%

More TimelyDecisions30%

Exploit New MarketOpportunities15%

Meta Group Survey of 300 Companies Implementing Warehouses

Six Key Steps to a SuccessfulSix Key Steps to a SuccessfulBusiness Intelligence (BI) ImplementationBusiness Intelligence (BI) Implementation

• Step 1:Step 1: Define business issues and related Define business issues and related information requirements.information requirements.

• Step 2:Step 2: Develop logical and physical Develop logical and physical architectural models, determine appropriate architectural models, determine appropriate sources for the required data, and validate sources for the required data, and validate accuracy and consistency of data.accuracy and consistency of data.

• Step 3:Step 3: Assemble the relevant data Assemble the relevant data identified in step two above.identified in step two above.

Thazar Thazar ArchitectureArchitecture

DATAMART BUILDERTM

INSURANCE WAREHOUSETM

WAREHOUSE BUILDERTM

Z-ALERTTM

Z-WEBTM

Z-QUERYTM

ZALERT

A N A L Y T I C A L D A T A M A R T S

OLAP (On-Line Analytical Processing)

Z-CATTM

O P E R A T I O N A L D A T A B A S E SOLTP (On-Line Transaction Processing)

Thazar Thazar Warehouse Warehouse

BuilderBuilder

INSURANCE WAREHOUSETM

Multiple DatabasesMultiple Databases

Lack of Legacy StandardsLack of Legacy Standards

FILE 1

FILE 2

FILE 3

Unlimited:•formats•structures•attributes•code setsall within fieldswith the samemeta labels!

Data Surprises in Individual FieldsData Surprises in Individual Fields

Meta

ActualDataValues

Meta data -- “What you wish you had in your data values” - Ken Orr

External DataExternal Data

Key Steps of a SuccessfulKey Steps of a SuccessfulBI ImplementationBI Implementation

• Step 4:Step 4: Transform data to a user-focused Transform data to a user-focused view.view.

• Step 5:Step 5: Distribute data where it is needed Distribute data where it is needed in the organization.in the organization.

Desktop User/ManagersDesktop User/Managers

Multiple Multiple DatamartsDatamarts

Thazar Thazar Datamart Datamart BuilderBuilder

INSURANCE WAREHOUSETM

Heterogeneous Products in Heterogeneous Products in InsuranceInsurance

•Multiple Custom Schemas:

Auto Coverage dimenAuto Coverage dimen

Customer dimensionCustomer dimension

Status dimensionStatus dimension

Month dimensionMonth dimension

Agent dimensionAgent dimension

Policy dimensionPolicy dimension

Month_key

Auto_Coverage_key

Agent_key

Customer_key

Policy_key

Status_key

Written_Premium

Earned_Premium

Num_Transactions

Auto_Limits

Auto_Deductibles

Other_Auto_Facts

Month_key

Auto_Coverage_key

Agent_key

Customer_key

Policy_key

Status_key

Written_Premium

Earned_Premium

Num_Transactions

Auto_Limits

Auto_Deductibles

Other_Auto_Facts

Key Steps to a SuccessfulKey Steps to a SuccessfulBI ImplementationBI Implementation

Step 6: Step 6: Provide users access to data for Provide users access to data for intelligent queries and business decision intelligent queries and business decision

making.making.

Software AgentSoftware Routine that waits in the background and performs an action when a specified event occurs.

Multiple Multiple DatamartsDatamarts

Active Software AgentActive Software Agent

User/Manager User/Manager Desktop PCsDesktop PCs

THAZAR Z-WEBTHAZAR Z-WEBInternet/Intranet Decision SupportInternet/Intranet Decision Support

• Affordability and Rapid DevelopmentAffordability and Rapid Development

• ScalabilityScalability

• MaintainabilityMaintainability

• ReliabilityReliability

• SecuritySecurity

Internet Decision Support Internet Decision Support EnvironmentEnvironment

Decision Support Client/Browser

Decision Support Server Data Warehouse Server

WebServer

Z-WEB

For more information onFor more information onbusiness intelligence for the business intelligence for the

insurance industry,insurance industry,please contact:please contact:

Tom Chesbrough or Dennis LynchTom Chesbrough or Dennis Lynch

888-KAPSTONE -or- 816-760-5000888-KAPSTONE -or- 816-760-5000

marketing@kapstone.commarketing@kapstone.com