Driving and Transforming the Business
Suren Gupta Executive Vice President
Technology and Operations
The CIO Event Chicago October 15, 2014
Allstate Corporation At A Glance
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What do the Board and the CEO Want?
Business growth
World-class IT efficiency
24/7 cybersecurity
Value creation through digital Innovation
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A moment of opportunity for the CIO
CIOs are at the table
Pace of tech growth
Rising consumer demand
Explosion in data
Speed of market creation
Severity of cyber attacks
CEOs are bringing CIOs to the table 41% of CIOs report to the CEO
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CEOs say who is most responsible for digital innovation
Source: Gartner April 2014 survey of CEOs
1. Chief Information Officer
2. Chief Marketing Officer
3. Business Unit Leader
4. Chief Operating Officer
5. Chief Digital Officer
6. Chief Strategy Officer
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Predictive selling Context based engagement More accurate consumer demand
Five forces that will change the pace of growth
Big Data
Public Cloud Computing
Social, Local, Mobile
Cognitive Computing
Internet of Things
Reduce cost of operations Paperless processing Always available, anywhere
Social context marketing Localized context relevant information Mobile based instant access to information
Artificial intelligence based engines Call center assistants Real time risk and advice
Universally connected Connected home, car, communities Enable real time analytics
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Rising
consumer
demand
for digital
Explosion in Data Every Minute of the Day
Receives over 4 million search inquiries
Users share 2.5 million pieces of content
Users tweet 277,000 times
Users upload 72 hours of new video
Users post 26,380 reviews
8 Source: Domo, “Data Never Sleeps 2.0”
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30 years to develop a market 100 years ago
20 years to develop a market 50 years ago
<5 years to develop a market today
SPEED OF MARKET CREATION
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Severity of cyber attacks is back on the rise
157
321
446
656
498
662
419 470
614 579 (YTD)
67 19
128
36
223
16 23 18
92 77* (YTD)
0
50
100
150
200
250
0
100
200
300
400
500
600
700
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Data Breaches Records Exposed (millions)YTD
# of Breaches
Records Exposed (millions)
*JP Morgan has yet to report the number of individual records exposed in its 2014 breach, only households impacted (76 million). That number may more than double the YTD count of 77 million records exposed.
Source: Identity Theft Resource Center 10
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21% of Americans have "a lot of trust" in companies to keep their personal information secure
Source: Gallup
Consumer trust needs improvement
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The CIO’s path forward
The CIO’s roadmap for driving business value
Execute at a world-class level
Organize to drive growth
in the businesses
Drive value with
digital innovation
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Protect customer data
and the company
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Protect customer data and the company
Elevate cybersecurity to a board-level matter
Upgrade Security Operations and processes
Hire outside security consultants
Increase information security staff
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GLOBALIZE OPERATIONS
SIMPLIFY SYSTEMS & PROCESSES
AUTOMATE PROCESSES
Execute at a world-class level
Business Unit Business Unit Business Unit
Organize IT to drive growth in the business
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Group CIO
Group CIO
Group CIO
Group CIO
Testing and Quality
Infrastructure Services
Information Security
Delivery and Risk Management
Architecture
Etc…
Business Unit
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Data Analysis Delivery
Robust Infrastructure
Analytics
Seamless Customer Experience
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Drive value with digital innovation
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FORMALIZE INNOVATION
1*
1.7 Product/service launches
10 Product/service ideas budgeted
300 Formalized product/service ideas
3,000 Ideas for new products/services
125 Ideas in small experimentation
*Source: The Wall Street Journal, 8/28/2013 “How an Endangered Google Policy Got Results” profitable product/service
Companies with formal innovation programs report better outcomes
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more likely to define their innovation strategy
as delivering a competitive advantage 50% more likely to say they will transform their business in the next 3-5 years with innovation 100% more likely to indicate their organization’s strategy is
dependent on innovation for its long term success 138%
more likely to indicate that they are typically
first to market with new products or services 20%
Source: Accenture 2013 survey, “Why Low-Risk Innovation is Costly”
Compared to companies without formal, enterprise-wide innovation programs, companies that have them are …
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How we’re driving innovation at Allstate
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Mobile Auto Insurance Claims
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1st major insurer to market with a
mobile smartphone telematics app in support of
families and teen driver safety
DRIVEWISE MOBILE & STAR DRIVER APPS
Teen Safety
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Esurance Web app predicts local fuel prices
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Driving and Transforming the Business
Suren Gupta Executive Vice President
Technology and Operations
The CIO Event Chicago October 15, 2014