1 / 30

IT Strategy Implementation in BaoMinh

Vietnam ICT in Finance 2006. IT Strategy Implementation in BaoMinh. Nguyen Kha Nhan General Manager IT Division - BaoMinh Insurance Corporation. 30-31 August, 2006. Agenda. Background Information SAP R/3 FI-CO Implementation Near Future Plan. Background Information Corporation Profile

madison
Download Presentation

IT Strategy Implementation in BaoMinh

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Vietnam ICT in Finance 2006 IT Strategy Implementation in BaoMinh Nguyen Kha NhanGeneral Manager IT Division - BaoMinh Insurance Corporation 30-31 August, 2006

  2. Agenda • Background Information • SAP R/3 FI-CO Implementation • Near Future Plan "When You Think Insurance, Think BaoMinh"

  3. Background Information • Corporation Profile • Implementation of IT strategic plan as a key corporate strategy • SAP R/3 FI-CO Implementation • Near Future Plan "When You Think Insurance, Think BaoMinh"

  4. Corporation Profile • Business Operations: • Registered Name: Bao Minh Insurance Corporation • Trading Name: BAOMINH • Starting date: October 1st 2004 • Charter Capital: VND 1,100 Billions • Total Assets 2004: VND 1,400 Billions • Shareholders: • State’s shares: 63%; • 10 Main Shareholders: 25% (Mostly 90-91 State-Owned Corporations); • Other Shareholders: 12% (including Foreign Entities and Individuals) "When You Think Insurance, Think BaoMinh"

  5. Corporation Profile • Business Operations: • Head Office in HoChiMinh City • Corporation Network: 58 Member-companies in 55 provinces; and a Training Center • Total Number of Staff: 1,500 • Total Number of Agents: > 5,000 • Insurance JV Companies: BAOMINHCMG; UIC • Invested Companies: PTI, … "When You Think Insurance, Think BaoMinh"

  6. Corporation Profile • Scope of Business: • Insurance business activities including direct insurance and reinsurance; Related services such as survey, lost adjustment, survey/ claim handling agent; Capital investment • Product Lines: >100 products, grouped in lines as • Automobile Insurance • Personal Insurance • Marine Insurance: Marine Cargo, Hull and P&I • Property & Engineering and Misc. Insurance: Property, Engineering &Liability • Aviation Insurance • Reinsurance: Outwards, Inwards "When You Think Insurance, Think BaoMinh"

  7. Corporation Profile • FY 2005 • Premium Income: VND 1,209 Billions • Non-life Insurance Market Share: 21.76% (Vietnamese Market) • First Half of FY 2006: • Premium Income: VND 780 Billions • Non-life Insurance Market Share: 22% "When You Think Insurance, Think BaoMinh"

  8. Corporation Profile • Vision Statement: “To turn BaoMinh into the first class Joint-stock Insurance Corporation in Vietnam which operates in various financial areas with reputation and major insurance market share” CEO, Dr. Tran Vinh Duc "When You Think Insurance, Think BaoMinh"

  9. High-level of IT Strategy • Implementation of IT strategic plan as a key corporate strategy • Using IT as a strategic tool to support Bao Minh ‘s business strategy. • Leveraging IT as a competitive advantage in the market place. • Provide business information on an enterprise-wide scale utilising IT. This will be a cost-saving measure for Bao Minh in the long run. • Increase the efficiency of internal management. • Improve client service. • Automation of business processes when possible "When You Think Insurance, Think BaoMinh"

  10. Background Information • SAP R/3 FI-CO Implementation • Brief of Project • Key learning lessons • Near Future Plan "When You Think Insurance, Think BaoMinh"

  11. SAP R/3 FI-CO Implementation • First local company’s sucessful implementation SAP R/3 solution for financial information system • Brief of Project: • First step of IT strategic plan implementation • Implemented Modules: FI, CO; with integration with legacy systems (statistics, reinsurance) • Project Kick-off: March 2003 • System Go-live: April 2004 • Implementation methodology: ASAP • Rolling-out for HeadOffice and 38 member companies "When You Think Insurance, Think BaoMinh"

  12. Steering CommitteeBan Giám Đốc Bảo Minh Project SponsorPhạm Xuân Phong - BM PwC Lead Partner Project Director Hoàng Đức Trung – PwCNguyễn Khả Nhân – BM Quality Assurance Nguyễn Thanh Quang – PwCNguyễn Phú Thủy – BM Experts / Consultants SAP PhilippinesPwC India Hardware Vendor Service Provider Project Manager Trần Duy Khánh – PwCHoàng Minh Triết – BM Functional Team Quy trình - Cấu hình SAP -Testing PwC VietnamPwC IndiaP. Tài chính Kế toán BM Technical Team Phát triển - Hạ tầng cơ sở - An ninh hệ thống PwC VietnamPwC IndiaP. Công nghệ Thông tin BM Change Management Team Thông tin tuyên truyền -Huấn luyện PwC VietnamP. Tổ chức Nhân sựP. Công nghệ Thông tin BM SAP R/3 FI-CO Implementation • Project Organisation Chart: "When You Think Insurance, Think BaoMinh"

  13. SAP R/3 FI-CO Implementation • Project Resources: • 10 – 20 technical & functional staffs (internal resources & consultants / experts) • Consultancy: PriceWaterhouseCoopers (PwC) • TCO: ~ USD 600K, including: • Software licenses: ~15% • Hardware & infrastructure: ~17% • Consultancy: ~60% • Misc.: ~8% "When You Think Insurance, Think BaoMinh"

  14. SAP R/3 FI-CO Implementation • Challenges: • GAPs: • Business processes could be adapted by SAP but not best practices • Critical functionalities but not completely supported by SAP • Data input from other legacy systems • Infrastructure is underdeveloped, not completely meet production environment requirements (Internet, WAN, …) • Change capability: • Change as evolution or revolution ? • Resistance of being change: rule 20-60-20 "When You Think Insurance, Think BaoMinh"

  15. SAP R/3 FI-CO Implementation • Critical Success Factors: • Communicate, Communicate, Communicate • Top Management Support • Assign the best people • Develop a clear business case and expectation • Request regular progress reports and act on it "When You Think Insurance, Think BaoMinh"

  16. SAP R/3 FI-CO Implementation • Critical Success Factors: • Develop organization discipline • Sustain standardized processes and data • Understand that standardization is key to flexibility • Create the capability to change • Quick and decisive desicion making process • Ongoing training - forever - on the system, process, and business • Cataloging and continual analysis of business processes • Process accountability structures • Metrics that specify process outcomes and performance targets "When You Think Insurance, Think BaoMinh"

  17. SAP R/3 FI-CO Implementation • Experience in working with consultant: • It takes a long time to build the required trust between client and consultant • Consultant will be ineffective if client cannot share information: bad or good, positive or negative • A good solution is a solution that is incubated, designed, and implemented by BOTH consultant and client • No consultant can do its job alone • Consultants can only be as good as the client can manage them "When You Think Insurance, Think BaoMinh"

  18. SAP R/3 FI-CO Implementation • Benefits from new system: • Ensure the consistent application of the company’s policy over member-companies. • Support automatic foreign exchange difference calculation • Support automatic inter-company transaction to minimize the reconciliation process between member-companies and Head Office. • Support the credit management at the company level. • Support many ad-hoc and online reports for decision making purposes • Tight control on closing procedures to meet report deadline • Tight control on authorization to ensure data integrity. • Centralize database for the ease of consolidation purposes. "When You Think Insurance, Think BaoMinh"

  19. Background Information • SAP FI-CO Implementation • Near Future Plan • Core Business Systems "When You Think Insurance, Think BaoMinh"

  20. B2B B2C B2E Security Authentication Authorization Encryption Directory Mgmt Password Mgmt Back Office Core Business Applications Customer Relationship Mgt. Financials Underwriting General Ledger AssetManagement Customer Information Call Center Quotation/ Proposal Policy Endorse & Renew Cancel Terminate/ Surrender Accounts Payable Budget Accounts Receivable Cash Management Reinsurance & Co-insurance Sales Force Automation E-Mail Proportional Treaty Non-Proportional Treaty Facultative Annual Statement Personalization Click Stream Analysis Investment Claims Intimate Register Validate Estimate Settle Human Resources Campaign Management Customer Analytics Human Resources Payroll Product design Knowledge Management Collaboration Data Anal & Rep. tool Content Mgt. Search Engine Online training Business Inteligent Decision Tree Agent Support Technology Infrastructure & Support Applications Workflow Web Session & Service Mgmt Web Metrics Operations Management Web Presentation Database Mgmt Operating Systems Reporting Systems Management Content & Document Mgmt Ideal IS Model "When You Think Insurance, Think BaoMinh"

  21. Core Business Systems • Next step of implementing corporate IT strategic plan • Focus on core business processes management • Replace “data silos” and technical backward information systems "When You Think Insurance, Think BaoMinh"

  22. Core Business Systems • Business Drivers: • Customer Services Issues: • Lack of customer visibility; • Loss of customer information; • Delay in resolving claims; • Difficult for customers to reach customer care; … "When You Think Insurance, Think BaoMinh"

  23. Core Business Systems • Business Drivers: • Business Operations Issues: • Poor control while rapid growth; • Poor adherence to standards and guidelines issued by the headoffice; • Inability to closely monitor member companies; • Limited information on claims paid, claims history mostly maintained at member company level; • Lack of accurate data for reinsurance; … "When You Think Insurance, Think BaoMinh"

  24. Core Business Systems • Technical Drivers • Most core business processes are manually or partially supported by technology • Fragmented islands of key business data • Key business data is captured by technologically backward system • No / minimal integration • Closed-loop processes not automated "When You Think Insurance, Think BaoMinh"

  25. Core Business Systems • Objectives: • Implement standardized business processes and systems to support corporate business strategy • Implement the new system which will replace the outdated “data silos” systems such as statistics system, re-insurance system; interface with SAP R/3 Finance System • Management decision support; • Effective risk management "When You Think Insurance, Think BaoMinh"

  26. Core Business Systems • Scope: • Underwriting and policy administration, • Sales, • Claims management, • Reinsurance mangement, • Product development (non-life) "When You Think Insurance, Think BaoMinh"

  27. Core Business Systems • Principles: • Standardizing application systems • Apply software package solutions as much as possible instead of custom build in house • Balance business process redesign and software customization • Centralized application and data • Updated technology & comprehensive functionality • Overall planning, implementing separate on project basis, achieving the target quickly • Balance resources needed in each phase "When You Think Insurance, Think BaoMinh"

  28. System Implementation & Roll out OnGoing Support Consultancy Selection Software Selection Jan 2007 Dec 2007 We are here Core Business Systems • Approach & Methodology • 2 stages: Software Selection & Implementation "When You Think Insurance, Think BaoMinh"

  29. Core Business Systems • Software Selection • Research and Planning • Requirements Identification & Proposal Preparation • Supplier Evaluation • Supplier Selection • Implementation • Preparation • Business Blueprint • Realization • Final Preparation • GoLive & Support "When You Think Insurance, Think BaoMinh"

  30. Vietnam ICT in Finance 2006 Thanks for Your Attention Nguyen Kha Nhan General Manager IT Division – Bao Minh Insurance Corporation Email: nknhan@baominh.com.vn 30-31 August, 2006

More Related