Using Web 2.0 to reinvent the enterprise

Business Mashups,or Mashup Business?Peter Evans-GreenwoodCTO (Australia)

© 2006 Capgemini - All rights reservedBusiness Mashups, or Mashup business? Peter Evans-Greenwood

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| Technology Services

Imagine…

A new company enters the market inlate 2007, LGM Wealth Management,who have found a new way of spinningexisting solutions and technologies toprovide it with capabilities an order ofmagnitude better than anyone else

Time to Revenue < 5 daysCost to Serve < ½ industry averageNew Product Introduction < 5 daysInfinite customisation

How do you react?

Phase 1Time to RevenueCost to Serve


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The challenge: insurance case work today

Case

Client

Advisor1.

Client works with anAdvisor to select &customise a policy

2.

Advisor submits thepolicy for approval

3. Client visits aDoctor for ahealth check &tests

Doctor4.

Doctor posts thetest results to theback office

Team5.

The back office askquestions, clarifiesissues, requestsfollow-ups, andapproves the case(or not).

6.6.


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The challenge: insurance case work today

Case

Client

Advisor1.

Client works with anAdvisor to select &customise a policy

2.

Advisor submits thepolicy for approval

3. Client visits aDoctor for ahealth check &tests

Doctor4.

Doctor posts thetest results to theback office

Team5.

The back office askquestions, clarifiesissues, requestsfollow-ups, andapproves the case(or not).

6.6.

What is a case file? Paper?Database? Records?

Reports? Email?

No means ofcapturing tacit

knowledge

Processestrapped in

application silos

Participants tiedto locations

Knowledgefragmented and

buried inchannels & silos

No holistic viewof the problem

Client is not aintegral part of

the process

Processesfragmented

across silos andmanual activities


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A few interesting ideas

Rich User ExperienceProviding a desktopexperience from a web-based application

Flash & ShockwaveSilverlightAJAX

Mash-Ups*A web page orapplication combiningdata from two or moreexternal sources

Chicago Crime DBhttp://www.chicagocrime.org/Ski Bonkhttp://www.skibonk.com/

More than a portal—an application in it‘sown right!

Spaces, NotApplicationsTools to solve specificproblems, integratedwith other tools, ratherstand-alone applications

Wikis: sharedblackboardsBlogs: online diariesFolksonomies: sharedtags

Utility ComputingUsing the web as aplatform to deliverapplications over theinternet from acentralized or distributeddata centre

GMailSaleForce.comQuickBooks Online Edition

* Examples taken from www.programmableweb.com

http://www.chicagocrime.org/

http://www.skibonk.com/

http://www.programmableweb.com/


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A space for insurance case management

RSSfeed on

case

Status commentAsldkjalsj asldj asldas lAklsd aksdh kashdDate, Time, Posted by BLAH

Client Name

Test Results

Risk ManagementLorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diamnonummy nibh euismod tincidunt ut laoreet dolore magna aliquamerat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci

Tags, tags, tags, …

Duis autem vel eum iriure dolor in hendrerit invulputate velit esse molestie consequat, velillum dolore eu feugiat nulla facilisis at

Policy Details

Add

8asd8asd8asd

8asd8asd8asd

8asd8asd8Basldjk

Client detailsfrom CRM

Test results fromprovider’s

system

Case workcomments in a

blog

Risk report inwiki

Medicalimage fromprovider’s

system

Markup a laMojito

Address12 sad asldrk aslkdja lsdkj al skdjas

Tags for semanticsearch

Status

Status

Workflowstatus

Click through toconnected spaces

ProductInformation

asd8Asd

asd8Basldjk


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Insurance case work tomorrow

Client1.

Client uses a self serviceweb site to create apolicy tailored to theirneeds, scheduling anytests required

3.

Client visits aDoctor for ahealth check& tests

Doctor

Doctor submits testresults directly

4.

2.

Case

Advisor

An advisor can be called in(Skype, IM, …) to provideassistance where required

5.

Team The back officeapproves the case(or not).


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Insurance case work tomorrow

Client1.

Client uses a self serviceweb site to create apolicy tailored to theirneeds, scheduling anytests required

3.

Client visits aDoctor for ahealth check& tests

Doctor

Doctor submits testresults directly

4.

2.

Case

Advisor

An advisor can be called in(Skype, IM, …) to provideassistance where required

5.

Team The back officeapproves the case(or not).

Users create theirown work spaces

Virtualteams

Integrated support forstructured and

unstructured knowledge

Informedand able toparticipate

Contentindependent of

channels

Activeinvolvement All knowledge

captured in asingle consistent

shared space


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What we are trying to achieve

Operational CostsProductivity

Work QualityInformation Quality

FutureInsurance

Case Worker

Information Management

Business Value

tt

t

Capture tacitand structuredknowledge in a

singleintegrated

environment

Reduce theopportunity forerrors andmistakes bycapturing andformalisingcurrentlyinformalinformation andprocesses

Drive costsavings throughmore efficientwork practices

Create a moresupportive

environment,ensuring that all

stakeholders areinvolved and

have accurateinformation to

base theirdecisions on

Time to revenue 66%Cost to serve 50%


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Delivered as a utility

Existing Back-Office

Applications

Content &Records

Management

ExternalSources

Reporting

File Stores

PartnerApplications

Utility

Web 2.0 R

esource Managem

ent

Light weight,

standards based,integration

RSS, W

eb Services,

Search, …

Collaboration

Search

Processes

Mash-UpPlatform

CaseWorker

Mash-Up

TeamMash-Up

ClientMash-Up

PartnerMash-Up

ClientClientClient

CaseWorker

CaseWorker

CaseWorker

PartnerPartnerPartner

TeamTeamTeam

Application silosused as

informationappliances

Userinterfacesdesign tosupport

specific roles

Utility mapsbetween

applications andusers, capturingtacit knowledge

t


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Applications

Content &Records

Management

ExternalSources

Reporting

File Stores

PartnerApplications

Utility

Web 2.0 R

esource Managem

ent

Light weight,


RSS, W

eb Services,

Search, …

Collaboration

Search

Processes

Mash-UpPlatform

CaseWorker

Mash-Up

TeamMash-Up

ClientMash-Up

PartnerMash-Up

ClientClientClient

CaseWorker

CaseWorker

CaseWorker


TeamTeamTeam




specific roles

Utility mapsbetween


t

Implementation Effort


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Applications

Content &Records

Management

ExternalSources

Reporting

File Stores

PartnerApplications

Utility

Web 2.0 R

esource Managem

ent

Light weight,


RSS, W

eb Services,

Search, …

Collaboration

Search

Processes

Mash-UpPlatform

CaseWorker

Mash-Up

TeamMash-Up

ClientMash-Up

PartnerMash-Up

ClientClientClient

CaseWorker

CaseWorker

CaseWorker


TeamTeamTeam




specific roles

Utility mapsbetween


t

Time to Capability

Months

Weeks

Implementation Effort


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Challenges

LicensingHow do I enforceSLAs?Do I need to pay?

Where do westart?

No more fouryears and $50m!

Security &Confidentiality

IdentityManagmeentSensativity: gettingusers to putinformation in theright box

What capabilities dowe put in the box?

Where do we usewiki’s a blogs?How do theyintegrate with ourother information?What about Zoho orGoogle Apps?


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The bigger picture

Business PlanningAsset PlanningRisk ManagementIncident ManagementAsset CreationAsset Lifecycle ManagementProcurementDemand ManagementCompliance ReportingAnnual ReportingRelationship Management –Government, Customers, Contractors,PartnersPerformance ManagementHealth and Safety Management

Ministerial BriefsCorrespondence ManagementTendering and RFQ ManagementProgramme & Project ManagementStrategy DevelopmentHR record keepingPolicy and AdviceInspections and AuditsPolicies and ProceduresContracts ManagementCommunity ConsultationBusiness Case DevelopmentOperational AnalysisPeriodic ReportingSpecialist StudiesStrategic Directions ReportingIndicators ReportingMarket ResearchCorporate Template ManagementPublications ManagementCampaign DevelopmentCustomer EngagementLease License ManagementTitle Management

Web Site ManagementCustomer ComplaintsResearch and DevelopmentMD BriefsProject ReportingDesign ReportingPost Implementation ReportingStandards and SpecsCommunity ConsultationsAsset Information ManagementDrawings and Plans ManagementFOI Request HandlingAccounts Payable invoice processingLegal Advice and PrecedentsTaxation Work PapersAudit Work PapersAudit and Inspection ReportingMajor Environmental AssessmentsMinor Environmental AssessmentsEnvironmental Management PlansWork Order ManagementRecruitment ManagementContractor ManagementTraining and Human PerformanceMgmt

CaseWorker

CaseWorker

CaseWorker

Unstructured Structured An examplefrom

Government

Phase 2New Product IntroductionProduct Catalogue


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Mashup business

Threadless

Design arbitragePaypal (payments)Flicker (photos)Polling (online votes)OutsourcedproductionProfitable in 1st year

KIVA

Demand-driven charityMicro-creditPaypal (payments)Flicker (photos)Blog (journal)Already a force to berecond with in microcredit

Scion

Endless customisationPimp-my-rideProduction lineDealersBodyshopsMost successfulproduct launch forToyota ever


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What might this look like for insurance

An Insurance Mash-Up

Yesterday Today Tomorrow

Bespoke developmentHarvest historicalinformation to createactuarial tablesHand craft policies

Mass productionHavest historical &operationalinformation to createactuarial tablesDevelop insurancefactories to churn outmass customizedpoliciesPass bundles ofpolicies onto themarket

Endless customisationEnabling customers toconfigure their ownpolicyConnecting themdirectly with the market


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Managing complex products

A single product,the Model T of our industry Chaos, where each client has

an individually tailored product

Few products All possible productsSome products

Rather than being forced to theends, we want to put the sliderwhere it makes the most sense forthe business.


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How do we create a configurable policy?

SeatHandlebars Frame

Front Wheel Back Wheel

Drive Train

A bike consists ofa frame, twowheels,handlebars, aseat, drive train,and each wheelhas a tyre. Wealso offer threetypes of bike:mountain, racingand hybrid

Let’s steal an idea from flexible manufacturing

We can define our product as a suite of pluggable Lego-like components and let customers mix-and-match


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How do we create a configurable policy?



Drive Train

A bike consists ofa frame, twowheels,handlebars, aseat, drive train,and each wheelhas a tyre. Wealso offer threetypes of bike:mountain, racingand hybrid

Let’s steal an idea from flexible manufacturing

We can define our product as a suite of pluggable Lego-like components and let customers mix-and-match

AssumptionsSimplifying ourunderstandingCompetitive forces

Business LogicConstraintsRecognisingsituationsDeciding on actionsException (risk)managementstrategies

ConceptsBenefit

• Defined benefit• Co-payment• Restricted benefits• …

Policy• Exclusions &

Inclusions• Constraints• …

Event and/or risk…

PredictionsRisksBenefitsCompetitor

• Prices• Products

Events...


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Allowing us too put the slider where we want it



Drive Train

A single product,the Model T of our industry Chaos, where each client has

an individually tailored product

Few products All possible productsSome products

The granularity of our model determineswhere on the spectrum if falls


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Strategic Goals

Information Technology

Then we operationalise the model



Drive Train


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… delivering the lot as a utility


Applications

Content &Records

Management

ExternalSources

Reporting

PartnerApplications

Web Utility

Mash-Up

Mash-Up

ClientMash-Up

PartnerMash-Up

ClientClientClient

CaseWorker

CaseWorker

CaseWorker


TeamTeamTeam

BusinessUtility

InsuranceMashup

Content &Records

Management

RiskManagement

Mashup


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The impact of what we’ve done



Drive Train

Allows Operations to planand manage the delivery of

the product

Provides Product Managementwith a palette for innovation and

creating new offerings

Used by Finance as a tool toestablish the cost, andprofitability, of products

Sales is empowered toadjust a product to meetcustomer requirements

How do I price?

How do we supportthe product?

How will theproduct be offered

to the market What product options dowe want to provide?

How do I groundrisk management?

What options doI have when I react

to business exceptions?

How many products?One, or millions?


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The impact of what we’ve done



Drive Train

Allows Operations to planand manage the delivery of

the product

Provides Product Managementwith a palette for innovation and

creating new offerings

Used by Finance as a tool toestablish the cost, andprofitability, of products

Sales is empowered toadjust a product to meetcustomer requirements

How do I price?

How do we supportthe product?

How will theproduct be offered

to the market What product options dowe want to provide?

How do I groundrisk management?

What options doI have when I react

to business exceptions?

How many products?One, or millions?

Time to Capability

t

Effort

New productintroduction

Product Catalogue

t# of possible products

Productvariation

Conclusions and lessons learnt


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We can use technology to create business agility

Value HarvestedBusiness Inertia

Dispursion of InnovationRedeploying EmployeesProcess Improvement & Optimisation

Exception Managem

ent

t

Value

t

Planning Granularity

t

Rate of Innovation

Move usersfrom operational

cost controlroles into

offline, creativevalue creating

roles

Enableemployeesto focus oncommunicationand innovation,enabling themto connect tothe market andharvest newopportunities

Increase theamount of valueharvested fromthe market byout performingcompetitors andleaving lessmoney on thetable

Reduce the costof reacting todisruptions inthe market by

reducing thecost of planning

and acting,converting

disruptions to acompetitiveadvantage


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Agility creates a competitive advantage

Reaction Speed

Com

plexity of environment

Corp.BInsight Harmony

Agility

Initiative

Adaptability

Orientation

Corp.A

Confusing information

Incompletedata

Unpredictableevents

Instability

Uncertainty

Ability to copewith disruption

Corp.A

Corp.B

Competitiveadvantage


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We must manage continual change, not projects

Mastering the three worlds of ITExecutives need to stop looking at IT projectsas technology installations and start looking atthem as periods of organisational change thatthey have the responsibility to manage

Andrew McAfeeHarvard Business Review, November 2006


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Imagine…

A new company enters the market inlate 2007, LGM Wealth Management,who have found a new way of spinningexisting solutions and technologies toprovide it with capabilities an order ofmagnitude better than anyone else

Time to Revenue < 5 daysCost to Serve < ½ industry averageNew Product Introduction < 5 daysInfinite customisation

How did you react?


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Questions or Comments

Further readingPeter Evans-Greenwood,Product Meta-Models, Capgemini

www.capgemini.com

http://www.capgemini.com/

Using Web 2.0 to reinvent the enterprise

Business

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