©2017 SE2, LLC. Proprietary and Confidential Information1
SE2 Update: Technology, Business Operations and Transformation
Kevin Paulson, COO and Vinod Kachroo, CIO
Digital Capability slides are confidential and proprietary to SE2. For additional interest please contact – Ashish Jha, [email protected]
©2017 SE2, LLC. Proprietary and Confidential Information2
Our Goals and Objectives
Through our transformation journey, our goals and objectives remain constant.
Scalability PredictabilityEnhanced Customer
Experience
©2017 SE2, LLC. Proprietary and Confidential Information3
Integration and Alignment
Business Operations & Services
Information Technology
End Customers Distribution Partners
Insurance Carrier Clients
©2017 SE2, LLC. Proprietary and Confidential Information4
©2017 SE2, LLC. Proprietary and Confidential Information5
2016, 2017 and Beyond: Our Transformation Journey
New CEO & CIO NTT partnership
extended to ITO and App Run partnership
Waterford location addition
Technology road map finalized and capital plan submitted to Board
New CMO, HR head NJ Office Addition Capital plan board approved Technology selections and detailed
capital execution plans finalized Delivery organizational
transformation with COEs and dedicated client teams implemented
Continued Organizational transformation and optimization
Complete Capital Program –Annuity, Life, Commissions, Correspondence, OnBase, etc.
Continued investments in Digital, Automation and Customer Experience
Ongoing optimization and continued implementation of target operating model
Alignment and integration of Business Operations and Technology teams across Delivery projects – client and capital
Go Live for platform Modernization – Major LifeCad modernization release, Digital Life. Additional releases planned across LifeCad, OnBase pilot, Correspondence, Security, Digital UX, etc.
Implementation of target operating model Dallas Office Addition Alignment and integration of Business Operations
and Technology teams across Run, Change & Release Go Live for platform Modernization – Spectrum,
PeopleSoft, UV Cloud, Automation Anywhere & Print Pilot
Progress with Digital road map with self service Dashboard implementations
DOL implementation across clients
New COO Operational target model and organizational
vision finalized Rebranding of SE2 Mphasis on-boarded as additional technology
partner Major infrastructure stabilization and capacity
upgrades across storage, computer, and network implemented
Many platform stability initiatives completed and modernization initiatives started
Completed major resource expansion plan
1st Half 2nd Half2 0 1 6 2 0 1 7
1st Half 2nd Half2 0 1 8
Onwards2 0 1 5
©2017 SE2, LLC. Proprietary and Confidential Information6
2016, 2017 and Beyond: Our Key Initiatives
Operations & Technology Alignment
Enhanced Quality
Organizational
Transformation
Productivity
Customer Experience Journey to
Digital
Capital Program &
Modernization
Agility
©2017 SE2, LLC. Proprietary and Confidential Information7
2016, 2017 and Beyond: Our Key Capital Investments
Foundation Strengthening and Building for the FutureCapital Spend : Category % Completion
Foundation & Infrastructure
Stabilize Platform
Modernize Platform
Digital Platform
80%
75%
40%
20%
Server, Storage, Network, Voice Infrastructure, Organizational Scale, Process Improvements
Batch Cycles, Admin Platforms, SOAs, System Availability, Security
Annuity & Life Admin, Operational Automation, Correspondence, Product Factory, Data & Integration Architecture
Direct to Consumer Insurance MarketplaceInnovation, Digital, STP, UX, EX, Data & Analytics
©2017 SE2, LLC. Proprietary and Confidential Information8
Business Operations and Services: Target Model Design
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Client focused Operational &
Servicing Teams
Vertical client focus
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Horizontal focus, expertise, and support from COO Management Office & Business Operational Shared Services
Coordination & optimization across foundational disciplines
Includes Inbound Contact and Call Centers; New Business & Post Issue Servicing, Performance & Operational Process Analysis, Research & Resolution; and Relationship/Account Management.
COO Management Office includes Planning, Analysis, & Reporting; Contracting; Customer Experience, Content Management, & Service Quality Excellence; Business Operational Analysis, Automation, & Model Office; Release & Incident Management; Business Continuity, Business Robotics Automation; and Strategic Optimization Initiatives.
Business Operational Shared Services includes Mail, Remittance, Print, & Fulfillment Operations; Financial Operations, Trading, Controls, & Reporting; Licensing, Commissions, & Distribution Support; Business Controls, Adjustments, and Regulatory Support; Death Claims; and Payouts.
©2017 SE2, LLC. Proprietary and Confidential Information9
Business Operations and Services: Target Model Enablement
• Focus, specialization, and expertise
- Across all core processes and disciplines
- Aligned structure and role clarity
• Key enabler – our Associates
• Leverage to execute on our strategic objectives
• Align with ever changing market conditions
• Continual process improvement and refinements
• Aspirational > ‘Change is a constant…’
Developing & Scaling Subject Matter Experts
Dual Career Path Progression
PEOPLE MANAGERS
INDIVIDUAL CONTRIBUTOR
SME’S
Associate Recruiting, Onboarding, Readiness, & Career Ladder Progression
Transformation to Target Operating Model
©2017 SE2, LLC. Proprietary and Confidential Information10
Business Operations and Services: Target Model Design
Mail & Remittance Operations
Death Claims & Payouts
Financial Operations, Trading, Controls, Reporting, & Project Implementations
Business Controls, Tax, Adjustments, & Regulatory Support
Licensing, Commissions, & Distribution Support
Life Policy Administration
Print & Fulfillment Operations
Planning, Communications, Analysis, & Reporting
NTT DATA Strategic Optimization & Business Robotics Process Automation (RPA) Program
Business Continuity
Release & Incident Management
Customer Experience, Content Management, & Service Quality Excellence
Client Contracting
Business Operational Analysis, Automation, & Model Office
Strategic Initiatives
Research & Resolution, Special Case Handling
New BusinessServices
Post Issue Services
Inbound Contact & Call Centers
Relationship & Account Management
New Business <> Post IssueOperations <> Operations
Performance Training & Performance Quality Analysts
Kevin Paulson – Chief Operating Officer
COO Management OfficeClient Operational and Servicing Teams
Business Operational Shared Services
Business Operational Core Process Analysts
©2017 SE2, LLC. Proprietary and Confidential Information11
2016, 2017 and Beyond: Continue to Scale our Global Footprint
North America:
Topeka, KS:Arrowhead (Headquarters) 6th Avenue
Kansas City, MO:Business Continuity
Omaha, NE:Disaster Recovery
Lincoln, NE:Business Operations & Services
Bridgewater, NJ:Technology & Innovation
Edison, NJ:FAST Dedicated Team
Dallas, TX:Business Operations & Services
Ireland:
Waterford:Business Operations & ServicesTechnology
India:
Gurgaon (NTT Data):Business Operations & Services
Chennai (NTT):Technology Staff Augmentation
Bangalore (NTT Data):Technology Staff AugmentationBPO Disaster Recovery
Current locations
Pune (Mphasis)IT Staff Augmentation
Hyderabad (Deloitte)Product & Integration Factory
Mumbai (Accenture)Dedicated Team
• Our newest site location• Business Operations and Services• Space buildout completed in Q2• Initial Associate recruiting and operational
readiness training in late Q2• Began operational servicing in early Q3• Continued expansion and integration…
Dallas, TX Location
©2017 SE2, LLC. Proprietary and Confidential Information12
2016, 2017 and Beyond: Our Core Goals and Objectives
Continually increased value provided to and felt by our clients, and their clients
Dependability & reliability
Speed, accuracy, & quality
Efficiency & effectiveness
Proactive & coordinated relationship management
Valued as key contributor & advisor
Enhanced customer experience
Scalability & sustainability
©2017 SE2, LLC. Proprietary and Confidential Information13
SE2 Digital Transformation Journey
Scalability
Predictability
Enhanced Customer Experience
SE2 Aurum, Technology Platform for the Digital Insurer
Client focused BPO Operational & Servicing Teams
Business Goals
Guiding Principles
Use Co-Innovation as a business
driver
People, Process and then
technology
Map the ‘moments of truth’ within the
processing lifecycle across channels
FutureProof and Future Ready technology
Digital Transformation
©2017 SE2, LLC. Proprietary and Confidential Information14
SE2 AURUM: Technology Capabilities Supporting ‘End to End Touchpoints’
14
Variable Product ServicesPricing & Trading
Group Trading Platform
Analytics ServicesCustomer InsightsPortfolio Insights
Distributor ServicesAgent License & Commissions
Broker Communications
Administration ServicesPolicy Administration
Billing, PayoutsFinancials
Communication ServicesCorrespondence
Web/IVR, Image/Workflow
Client ServicesIllustrations, Intake, Interfaces,
Reporting, Compliance
New Business UnderwritingCarrier
Consumer
Agent
Consumer
Agent
Carrier
SE2 Digital Direct Life, Orion, Image & Workflow,
Distributor DashboardSPECTRUM/ETP (for External
Integration), MCS(Agent CRM, L&A, Commission)
Carrier
ASR, CSR
IVR, Web, Orion, SPECTRUM, UVCloud, Eagle,
Carrier Dashboard, Payouts, Chatbots*, Alexa*,
Group Trading Platform (GTP),
Interfaces, PeopleSoft
Orion, Image & Workflow,Web, Robotics, SE2 Billing,
Policy Admin, Broker Communication ASR
ASR, CSR
ConsumerB2B
SE2 Aurum, Technology Platform for the Digital Insurer
BU
SIN
ESS
SER
VIC
ES
©2017 SE2, LLC. Proprietary and Confidential Information15
SE2 AURUM: Simplified, Scalable End to End Digital Architecture
• Omni Channel Experience
• Superior Customer Service & Support
• Lower Operations Cost
• Speed to Market
• Simplify compliance with Regulations
• Harness Innovation
• Partner Ecosystem
Digital Enterprise Architecture
©2017 SE2, LLC. Proprietary and Confidential Information16
Them
es
Digital Customer Experience• Omni channel
• Real time
• Self service
• Services / APIs
Robotics & Automation• No / Low Touch
• Straight Through Processing
• Process & IT Automations
Future-Proof Capabilities• Analytics & Business Insights
• DOL/Regulatory Compliance
• RoboAdvisors, ChatBots, Artificial Intelligence/Machine Learning, Blockchain
Enab
lers
Additional Digital Tools & Technologies
Robotics Rules Engine ETL & DWHEnterprise Service Bus
Partner Ecosystem*
Application & Infrastructure Upgrades
Imaging , Workflow, ECM
Business Activity Monitoring
Enterprise Monitoring#
Analytics#Artificial Intelligence / ML#
Portal#
…….SE2 Web
Par
tner
s
* In discussions with FinTech & Technology Innovators to further enhance the digital customer engagement and experience# Selection in Progress
SE2 AURUM: Driving Relentless Improvements with System Investment
©2017 SE2, LLC. Proprietary and Confidential Information17
SE2 Innovation: Driving Business Value with 4E Approach
Explore
Evaluate
Enable
Evangelize
100 in the
Watch list
10 Prototypes
4in Beta
2 in Mainstream
Source: Forrester Research Inc., Source: Industry Watch list- SE2 Internal Research
Explore ideas (steaming from business problems, hackathons), trends, disruptors & have a watch list
Conduct PoCs, Prototypes and evaluate the shortlisted idea’s applicability for SE2
Work with CoEs, Delivery Executives (DE), Operation Executives (OEs) on the Beta implementation/rollout
Support DE/OE in evangelizing the solution among clients along with CoEs
Dashboards
SPECTRUM, RPA
©2017 SE2, LLC. Proprietary and Confidential Information18
Manufacture product *
Implement in systems & launch
Sales & marketing *
OnboardLicense &
appointmentsCompensation
Application & underwriting
Issue policyManage Inforce
activitiesCustomer
serviceManage benefits
& claims
* Client managed
Legend
Digital customer experience
Robotics & automation
Futureproof capabilities
Stability & scale Available
Near term (3-12 m)
Long term (12+ m)
Illustrations
Carrierdashboard
Straight through processing
Cognitive computing services
Robotics ProcessAutomation
Digital consumer engagement
Service enabled modernized annuity
platform
Fund & rate change automation
Configurable Correspondence &
ePresentment enablement
Analytics & BI
API/Service enabled configurable
platforms
Straight through processing
Digital consumer engagement
Digital life platform (NB & UW)
Analytics & BI
API/Service enabled configurable
platforms
Robotics Process Automation
Service enabled L&A/commissions
platform
Analytics & BI
RoboAdvisors
Distributor dashboard
Increased configurability
to setup products (life & annuity)
Digital consumer engagement
Analytics & BI
Blockchain
Blockchain
Blockchain
New Product Development Distribution Management New Business & Underwriting Inforce Servicing
SE2 Innovation: Differentiating with Digital Roadmap across Business Domains