A new company enters the market in late 2008, LGM Wealth Management, who have found a new way of spinning existing solutions and technologies to provide it with capabilities an order of magnitude better than anyone else. . Time to Revenue < 5 days . Cost to Serve < ½ industry average . New Product Introduction < 5 days . Infinite customization How do you react?

1. Extreme competition
Peter Evans-Greenwood
Chief Technology Officer

2. Some context
U.S. software sales in billions of dollars
Source: INPUT
The Past Yesterday Now
WS-*
OASIS SOA Reference Model
OASIS SOA Blueprints
SAP Netweaver
WS-I founded Oracle Fusion
SAP WS JAX-WS
J2ME Web Services MS Indigo
ESB
BPEL BizTalk 2004
Apache Axis Oracle BPEL
JAX-RPC WBI-SF
Apache SOAP Oracle WS WS-Policy and WS-Security
MS SOAP Sun WS
IBM Web Services
WS (J2EE & .NET)
WS-* starts exploding
SOAP 1.0
1999 2000 2001 2002 2003 2004 2005
A standards development timeline
© 2009 Unico – All rights reserved 1

3. Imagine…
A new company enters the market in late
2008, LGM Wealth Management, who have
found a new way of spinning existing
solutions and technologies to provide it with
capabilities an order of magnitude better
than anyone else
• Time to Revenue < 5 days
• Cost to Serve < ½ industry average
• New Product Introduction < 5 days
• Infinite customisation
How do you react?
© 2009 Unico – All rights reserved 2

4. Phase 1
• Time to Revenue
• Cost to Serve
© 2009 Unico – All rights reserved 3

5. The challenge: insurance case work today
Client works with an
Client Advisor to select &
customise a policy Advisor submits the
Advisor policy for approval
Case
Client visits a
3. Doctor for a
health check & 6.
tests
Team The back office ask
Doctor
4. questions, clarifies
issues, requests
Doctor posts the follow-ups, and
test results to the approves the case
back office (or not).
© 2009 Unico – All rights reserved 4

6. The challenge: insurance case work today
Knowledge fragmented What is a case file?
Client works with an
and buried in channels & Paper? Database?
Client Advisor to select &
silos Records? Reports? Email?
customise a policy Advisor submits the
Advisor policy for approval
No means of
capturing tacit Case
Client is not a knowledge
integral part of
Client visits a
the process 3. Doctor for a
Processes No holistic view
health check &
fragmented 6.
of the problem
tests across silos and
manual activities Processes
Team The
trapped in
back office ask
Doctor application silos
4. questions, clarifies
issues, requests
Doctor posts the follow-ups, and
test results to the Participants
approves the case
tied to locations
back office (or not).
© 2009 Unico – All rights reserved 5

7. A few interesting ideas
Rich User Experience
Providing a desktop
experience from a web-
Spaces, Not Applications based application
Tools to solve specific • Flash & Shockwave
problems, integrated with • Silverlight
Utility Computing
other tools, rather stand- • AJAX
alone applications Using the web as a platform
Mash-Ups* to deliver applications over
• Wikis: shared blackboards
A web page or the internet from a
• Blogs: online diaries
application combining centralized or distributed
• Folksonomies: shared tags
data from two or more data centre
external sources • GMail
• Chicago Crime DB • SaleForce.com
http://www.chicagocrime.org/
• QuickBooks Online Edition
• Ski Bonk
http://www.skibonk.com/
* Examples taken from www.programmableweb.com
© 2009 Unico – All rights reserved 6

8. A space for insurance case management
Client Name Address
12 sad asldrk aslkdja lsdkj al skdjas
Duisautemveleumiriuredolor in hendrerit in
vulputatevelitessemolestieconsequat, vel
Test Results Status
Basldjk 8 asd 8 asd 8
asd 8 asd 8 asd 8
asd 8 asd 8 asd 8
Risk Management Status
Loremipsumdolor sit amet, consectetueradipiscingelit,
seddiamnonummynibheuismodtinciduntutlaoreetdolore magna
aliquam
Policy Details Status comment
Basldjk 8 asd Asldkjalsjasldjasldasl
Aklsdaksdhkashd
Asd 8 asd
Date, Time, Posted by BLAH
Tags, tags, tags, … Add
© 2009 Unico – All rights reserved 7

9. A space for insurance case management
Client details
from CRM RSS feed
Client Name Address
on case
12 sad asldrk aslkdja lsdkj al skdjas
Workflow
Duisautemveleumiriuredolor in hendrerit in
vulputatevelitessemolestieconsequat, vel status
Test results from
Test Results Status
provider’s system
Basldjk 8 asd 8 asd 8 Medical image
asd 8 asd 8 asd 8 from provider’s
asd 8 asd 8 asd 8 system
Risk Management Status
Product
Loremipsumdolor sit amet, consectetueradipiscingelit,
Risk report in seddiamnonummynibheuismodtinciduntutlaoreetdolore magna
Information Markup a la
wiki aliquam Mojito
Policy Details Status comment
Basldjk 8 asd Asldkjalsjasldjasldasl
Aklsdaksdhkashd Case work
Asd 8 asd
Date, Time, Posted by BLAH
comments in a
Tags, tags, tags, … Add
blog
Click through to Tags for semantic
connected spaces search
© 2009 Unico – All rights reserved 8

10. Insurance case work tomorrow
Client uses a self service web
site to create a policy tailored
to their needs, scheduling any Advisor
Client
tests required
Case
An advisor can be called in
(Skype, IM, …) to provide
Client visits a
assistance where required
Doctor for a 3.
health check
& tests The back office
Team
approves the case
Doctor (or not).
Doctor submits test
results directly
© 2009 Unico – All rights reserved 9

11. Insurance case work tomorrow
Active Client uses a self service web knowledge
All
involvement captured in a
site to create a policy tailored
single consistent
to their needs, scheduling any Advisor
Client shared space
tests required
Users create
their own work
Case spaces
An advisor can be called in
(Skype, IM, …) to provide
Client visits a Content
assistance where required
Doctor for a 3. independent
Informed
healthand able to
check of channels
& testsparticipate The back office
Team
approves the case
Doctor (or not).
Integrated support for
Doctor submits test
structured and
results directly knowledge
unstructured
Virtual
teams
© 2009 Unico – All rights reserved 10

12. What we are trying to achieve
A more Drive cost
Productivity Operational Costs
supportive savings through
environment, • Time to revenue ▼66% more efficient
ensuring that all • Cost to serve ▼50% work practices
stakeholders are
involved and
able to
participate
t t
Future
Case Worker
Reduce the
Business Value
opportunity for
errors and
Capture tacit mistakes by
and structured capturing and
knowledge in a formalising
single informal
integrated Information Management t information and
environment Information Quality Work Quality processes
© 2009 Unico – All rights reserved 11

13. Delivered as a utility
Case Applications
Worker
standards based,
Client
RSS, Web Services,
Mash-Up
Light weight,
Web 2.0 Resource Management
integration
Content &
Search, …
Records
Management
Team
Case Mash-Up
Workers
File Stores
Client Reporting
Mash-Up
Advisor
Collaboration
Partner
Applications
Processes
Partner
Team Mash-Up
External
Search Sources
Mash-Up
Platform
Utility Existing Back-Office
© 2009 Unico – All rights reserved 12

14. Delivered as a utility
Case Applications
Worker Application silos
standards based,
Client
RSS, Web Services,
Mash-Up used as
Light weight,
Web 2.0 Resource Management
integration
User interfaces Content & information
Search, …
design to support Records appliances
specific roles Management
Team
Case Mash-Up
Workers
File Stores
Client Reporting
Mash-Up t
Advisor
Collaboration
Partner
Applications
Processes
Partner
Team Mash-Up
External
Utility maps between Search
Mash-Up Sources
Platform
applications and users,
Existing Back-Office
capturing tacit Utility
knowledge
© 2009 Unico – All rights reserved 13

15. Delivered as a utility
Case Applications
Worker Application silos
standards based,
Client
RSS, Web Services,
Mash-Up used as
Light weight,
Web 2.0 Resource Management
integration
User interfaces Content & information
Search, …
design to support Records appliances
specific roles Management
Team
Case Mash-Up
Workers
File Stores
Client Reporting
Mash-Up t
Advisor Implementation Effort Collaboration
Partner
Applications
Processes
Partner
Team Mash-Up
External
Utility maps between Search
Mash-Up Sources
Platform
applications and users,
Existing Back-Office
capturing tacit Utility
knowledge
© 2009 Unico – All rights reserved 14

16. Delivered as a utility
Case Applications
Worker Application silos
standards based,
Client
RSS, Web Services,
Mash-Up used as
Light weight,
Web 2.0 Resource Management
integration
User interfaces Content & information
Search, …
design to support Records appliances
specific roles Management
Team
Case Months
Workers
Mash-Up
File Stores
Client Weeks Reporting
Mash-Up t
Advisor Implementation Effort Time to Capability
Collaboration
Partner
Applications
Processes
Partner
Team Mash-Up
External
Utility maps between Search
Mash-Up Sources
Platform
applications and users,
Existing Back-Office
capturing tacit Utility
knowledge
© 2009 Unico – All rights reserved 15

17. Challenges
Licensing
• How do I enforce
What capabilities
Security & SLAs?
do we put in the
Confidentiality • Do I need to pay?
box?
• Identity • Where do we use
Management wiki’s a blogs?
Where do we
• Sensitivity: getting • How do they
start?
users to put integrate with our
• No more four
information in the other information?
years and $50m!
right box • What about Zoho or
Google Apps?
© 2009 Unico – All rights reserved 16

18. The bigger picture
Unstructured Structured • Web Site Management example
An
• Ministerial Briefs • Customer Complaints
• Correspondence Management
from
• Research and Development
• Tendering and RFQ Management • MD Briefs Government
• Programme & Project Management • Project Reporting
Client • Strategy Development • Design Reporting
• HR record keeping • Post Implementation Reporting
• Policy and Advice • Standards and Specs
• Inspections and Audits • Community Consultations
• Policies and Procedures • Asset Information Management
• Business Planning • Contracts Management • Drawings and Plans Management
• Asset Planning • Community Consultation • FOI Request Handling
• Risk Management • Business Case Development • Accounts Payable invoice processing
• Incident Management • Operational Analysis • Legal Advice and Precedents
• Asset Creation • Periodic Reporting • Taxation Work Papers
• Asset Lifecycle Management • Specialist Studies • Audit Work Papers
• Procurement • Strategic Directions Reporting • Audit and Inspection Reporting
• Demand Management • Indicators Reporting • Major Environmental Assessments
• Compliance Reporting • Market Research • Minor Environmental Assessments
• Annual Reporting • Corporate Template Management • Environmental Management Plans
• Relationship Management – • Publications Management • Work Order Management
Government, Customers, Contractors, • Campaign Development • Recruitment Management
Partners • Customer Engagement • Contractor Management
• Performance Management • Lease License Management • Training and Human Performance
• Health and Safety Management • Title Management Mgmt
© 2009 Unico – All rights reserved 17

19. Phase 2
• New Product Introduction
• Improved Product Catalogue
© 2009 Unico – All rights reserved 18

20. Mashup business
Threadless KIVA Scion
Design arbitrage Demand-driven charity Endless customisation
• Paypal (payments) • Micro-credit • Pimp-my-ride
• Flicker (photos) • Paypal (payments) • Production line
• Polling (online votes) • Flicker (photos) • Dealers
• Outsourced production • Blog (journal) • Body shops
• Profitable in 1st year • Already a force in • Most successful
micro credit product launch for
Toyota ever
© 2009 Unico – All rights reserved 19

21. What might this look like for insurance
An Insurance Mash-Up
Yesterday Today Tomorrow
Bespoke development Mass production Endless customisation
• Harvest historical • Harvest historical & • Enabling customers to
information to create operational configure their own
actuarial tables information to create policy
• Hand craft policies actuarial tables • Connecting them
• Develop insurance directly with the market
factories to churn out
mass customized
policies
• Pass bundles of
policies onto the
market
© 2009 Unico – All rights reserved 20

22. Managing complex products
Few products Some products All possible products
A single product, Chaos, where each client has an
the Model T of our industry individually tailored product
Rather than being forced to the ends,
we want to put the slider where it
makes the most sense for the business.
© 2009 Unico – All rights reserved 21

23. How do we create a configurable policy?
Let’s steal an idea from flexible manufacturing
A bike consists of a Handlebars Seat
Frame
frame, two wheels,
handlebars, a seat,
drive train, and each Front Wheel Back Wheel
wheel has a tyre. We
also offer three types
of bike: mountain,
racing and hybrid
Drive Train
We can define our product as a suite of pluggable Lego-like
components and let customers mix-and-match
© 2009 Unico – All rights reserved 22

24. How do we create a configurable policy?
Let’s steal an idea from flexible manufacturing
Assumptions
• Simplifying our
AConcepts
bike consists of a Handlebars Seat
• Benefit understanding Frame
frame, two wheels,
• Defined benefit • Competitive forces
• Co-payment
handlebars, a seat,
• Restricted benefits Predictions
drive…
•
train, and each Front Wheel • Risks Back Wheel
• Policy
wheel has a tyre. We
• Exclusions & Inclusions Business Logic • Benefits
• Constraints • Constraints • Competitor
also …
• offer three types • Prices
• Recognising
• Event and/or risk
of bike: mountain, • Products
situations
• … • Events
racing and hybrid • Deciding on actions
• Exception (risk) • ...
management Drive Train
strategies
We can define our product as a suite of pluggable Lego-like
components and let customers mix-and-match
© 2009 Unico – All rights reserved 23

25. Allowing us too put the slider where we want it
Few products Some products All possible products
A single product, Chaos, where each client has an
the Model T of our industry individually tailored product
Handlebars Frame Seat
Front Wheel Back Wheel
Drive Train
The granularity of our model determines where
on the spectrum if falls
© 2009 Unico – All rights reserved 24

26. Then we operationalise the model
Strategic Goals
Handlebars Frame Seat
Front Wheel Back Wheel
Drive Train
Information Technology
Consistent Product Business
Information
Bill Customer Configure
Product
Mountain Bike
Handle Bars
Register
Sales Finance
Order
Single Point
of Contact
Racing Bike Bike Seat Product Information Product Information
Configure
Service Product
Management
Wheel Service Status
Hybrid Bike
Product Information
Frame Provide Service
Customer
Tyre Operations
Partners & Suppliers
© 2009 Unico – All rights reserved 25

27. … delivering the lot as a utility
Client Mash-Up Applications
Content &
Records
Management
Case Mash-Up
Workers Content &
Records
Management
Client Risk Reporting
Mash-Up Management
Advisor
Mashup
Partner
Applications
Partner
Insurance
Mash-Up Mashup
Team
External
Sources
Business
Web Utility Utility Existing Back-Office
© 2009 Unico – All rights reserved 26

28. The impact of what we’ve done
Sales is empowered to adjust Provides Product Management with
a product to meet customer a palette for innovation and
requirements creating new offerings
Handlebars Frame Seat
Front Wheel Back Wheel
Drive Train
Allows Operations to plan and Used by Finance as a tool to
manage the delivery of the establish the cost, and
product profitability, of products
© 2009 Unico – All rights reserved 27

29. The impact of what we’ve done
How many products?
Sales is empowered to adjust Provides
One, or millions?
Product Management with
a product to meet customer a palette for innovation and
requirements creating new offerings
How will the Handlebars Frame Seat
What product options do
product be offered
we want to provide?
to the market
Front Wheel Back Wheel
What options do
I have when I react
to business exceptions?
How do I ground
How do we support risk management in fact?
the product?
Drive Train
Allows Operations to plan and Used by Finance as a tool to
manage the delivery of the How do I price? establish the cost, and
product profitability, of products
© 2009 Unico – All rights reserved 28

30. The impact of what we’ve done
How many products?
Sales is empowered to adjust Provides
One, or millions?
Product Management with
a product to meet customer a palette for innovation and
requirements creating new offerings
How will the Handlebars Frame Seat
What product options do
product Time to
be offered Capability Product Catalogue want to provide?
we
to the market
# of possible products
• New product • Product
Effort
Front Wheel
introduction variation Wheel
Back
What options do
I have when I react
to business exceptions?
How do I ground
How do we support
t risk managementt in fact?
the product?
Drive Train
Allows Operations to plan and Used by Finance as a tool to
manage the delivery of the How do I price? establish the cost, and
product profitability, of products
© 2009 Unico – All rights reserved 29

31. Conclusions & Lessons Learnt
© 2009 Unico – All rights reserved 30

32. We can use technology to create business agility
Reduce the cost Increase the
Business Inertia Value Harvested
of reacting to amount of value
Planning Granularity
Value
disruptions in harvested from
the market, the market by
converting out performing
disruptions to a competitors and
competitive leaving less
advantage money on the
t t table
Exception Management
Rate of Innovation
Move users Enable
from operational employees
cost control to connect to
roles into offline, the market and
creative value Process Improvement & Optimisation t harvest new
creating roles Redeploying Employees Dispursion of Innovation opportunities
© 2009 Unico – All rights reserved 31

33. Agility creates a competitive advantage
Ability to cope
Complexity of environment
with disruption
Agility Orientation
Corp. Harmony Corp.
Insight B B
Adaptability
Initiative Competitive
Uncertainty advantage
Incomplete
data
Corp. Corp.
Instability A Unpredictable A
events
Confusing information
Reaction Speed
© 2009 Unico – All rights reserved 32

34. We must manage continual change, not projects
Mastering the three worlds of IT
Executives need to stop looking at IT
projects as technology installations and start
looking at them as periods of organisational
change that they have the responsibility to
manage
Andrew McAfee
Harvard Business Review, November 2006
© 2009 Unico – All rights reserved 33

35. Imagine…
A new company enters the market in late
2008, LGM Wealth Management, who have
found a new way of spinning existing
solutions and technologies to provide it with
capabilities an order of magnitude better
than anyone else
• Time to Revenue < 5 days
• Cost to Serve < ½ industry average
• New Product Introduction < 5 days
• Infinite customisation
How do you react?
© 2009 Unico – All rights reserved 34

36. Questions or Comments
Further reading
Peter Evans-Greenwood,
Product Meta-Models
http://peter.evans-greenwood.com/articles/product-meta-models/
© 2009 Unico – All rights reserved 35

37. © 2009 Unico – All rights reserved