To compete in today’s competitive market it is imperative AIG creates a foundation to meet changing customer and market demands, while controlling costs. To achieve this strategy, a Center of Excellence (COE) is paramount. COEs allow strategic enterprises to operate a centralized BPM program, rather than just a series of isolated BPM projects; empowering carriers to build a customized mix of reusable business processes, expertise and skills that serves as a centralized internal consultancy and expertise to accelerate success. These slides were used as part of a live presentation. Watch the complete presentation (with full video) at: http://www.pega.com/resources/pw-2014-video-aig-leverages-their-center-of-excellence-as-a-strategic-advantage?utm_source=ss

1. © 2013, Confidential, Pegasystems Inc.
TM

2. © 2014, Confidential, Pegasystems Inc.
AIG: Leveraging Their
Center of Excellence as a
Strategic Advantage
Jeffrey Fisher - Manager of CoE, AIG
Michael Woodward - Sr. Information Officer, AIG

3. 33 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
• Who’s AIG?
• Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
• CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
• Pega Technology Powering AIG’s CoE
• AIG’s CoE Case Studies
• Lessons Learned

4. 44 © 2014, Confidential, Pegasystems Inc.
Who we are:
Michael
Woodward
Senior
Information
Officer
Jeffrey
Fisher
Manager
of CoE

5. 55 © 2014, Confidential, Pegasystems Inc.
About AIG
95years
64,000
Employees
$68.7 billion
AIG’s revenue in 2013
More than 98%
of Fortune 500 served
300,000+
Financial professionals
who make up the AIG
Life and Retirement
distribution organization
130+
Countries where AIG operates
58,300+
Loans modified,
helping families in the
U.S. keep their homes
88+ million
Clients worldwide
$7 million
Donations made by AIG’s
Matching Grants Program to
match employees’ gifts to
charitable organizations in 2013

6. 66 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
• Who’s AIG?
• Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
• CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
• Pega Technology Powering AIG’s CoE
• AIG’s CoE Case Studies
• Lessons Learned

7. 77 © 2014, Confidential, Pegasystems Inc.
AIG Pega CoE
Functions
Delivery
Assurance
Technology &
Architecture
Quality
Assurance
Resources &
Skills Devpt
Infrastructure
Industry Definition of a BPM CoE
A formally appointed and documented body
of knowledge and experience in business
process management methodologies and
technologies with goals of providing
expertise, managing governance practices,
and supporting BPM projects
FORRESTER RESEARCH

8. 88 © 2014, Confidential, Pegasystems Inc.
!
AIG’s Key Reason for Starting a Pega CoE
• No governing body for best practices & standards
• Multiple Pega Platforms to manage; spanning version 5.3 to 6.2
• Lack of direction on when to customize vs use OOTB features
• No guidance for sizing and estimating projects
- Define a standard method for Pega Implementations
• No Service repository for reuse across strategic projects
• Lack of business and IT collaboration
• No knowledge sharing and collaboration between
application development teams
• Lack of visibility across strategic partners
• No visibility into Pega product framework & licensing

9. 99 © 2014, Confidential, Pegasystems Inc.
AIG Pega CoE Mission:
1 2
3 4
Provide Thought Leadership Accelerate Projects
Mitigate Risks Act as Vendor Liaison
• Scale Pega projects to enterprise
competency
• Promote continuous improvement
• Provide education & training
• Assist with best practices & standards
• Guide to employ BPM appropriately
• Cultivate robust community of experts
• Establish an environment of reuse
• User interface & report adoption
• Promote Pega OOTB rules vs. Code
• Provide “What’s the Best Way” answers
• Provide repeatable delivery methodology
• Review project designs and code
• Provide cost effective BPM expertise & skills
• Provide proven templates, checklists and
approaches
• Performance monitoring of BPM apps
• Manage technical issues reported to Pega
• Arrange for Pega experts to deliver seminars
• Distribute product announcements
• Manage Pega software licenses &
Frameworks
• Manage strategic Pega implementation
project

10. 1010 © 2014, Confidential, Pegasystems Inc.
AIG Pega CoE Area of Focus
 Pega Applications within:
̶ AIG Property Casualty
̶ Underwriting Focus
• 12 Implementations supporting the
Underwriting process
• Covering Pre-quote all the
way to bind, to issuance
 Breadth: Global
P&C
UW
Workers
Comp.
Personal
Lines
Warranty
Ins. Engineering
Risk
Exp.
Quote – Bind – Issues

11. 1111 © 2014, Confidential, Pegasystems Inc.
AIG Application Spotlight - iSUITE
 ISUITE’s Central Objective is…
 “To get paper off the desk.”
The Purpose of iSUITE

12. 1212 © 2014, Confidential, Pegasystems Inc.
“INTAKE”
Submissions
“CHOREOGRAPHY”
Underwriting
“SERVICING”
SC Requests
HIGH VOLUME EFFICIENCIES
• Logical Centralization / Geographical Distribution
• Automatic Role-Based Work Assignments
• Business-Driven Prioritization
• Load Balancing
• Tracking & Reporting
Workflow Architecture of iSUITE
& Corresponding Benefits
HIGH COMPLEXITY EFFICIENCIES
• Real-Time Transfer
• Secure/Rights-based Environment
• Automatic History and Auditing
• Enforced Compliance
• User Preference-able & Flexible
• Real-Time Statuses
• Serial & Parallel Work-streams

13. 1313 © 2014, Confidential, Pegasystems Inc.
“Approvals” and “Tasks” “External Requests” “Service Center Requests”“Workitem Reminders”
From
Service Center
Close
Underwriting Workitem
New Business
Renewals
Endorsements
1-step process, with infinite possibilities…

14. 1414 © 2014, Confidential, Pegasystems Inc.
BPM COE Operating Model – AIG
• Centralizing and managing Pega development
resources enables the COE to:
̶ Establish a stronger link between the COE and
Pega projects & applications
̶ Drive reuse
̶ Develop specialists to use across projects &
applications
̶ Standardize approaches
• Resulting in the following qualitative benefits:
consistency, higher quality, increased delivery
speed, and reduced cost.
Application 1
Project B
Project C
Project A
Application 2Application 3
AIG CoE:
Pool of Pega Development
Resources Specializing in:
– Pega Frameworks
– Integration
– Maintenance
– Refactoring
– Etc.

15. 1515 © 2014, Confidential, Pegasystems Inc.
CoE Operating Model – 10 Core Benefits
1. Drive efficiencies
̶ Scale resources/effort across projects
2. Enforce BPM standards
̶ Improve quality
̶ Streamline development
̶ Ensure stable applications
3. Standardize the estimating process
̶ Improve business expectations
̶ Streamline project resourcing
4. Drive reuse
̶ Reduce cost of development
̶ Reduce defects
̶ Speed time to market
5. Develop specialists
̶ Resident experts to quickly deploy
6. Drive use of an agile methodology
̶ Team are able to easily adapt to
requirement changes
̶ Reduce cost of development
7. Resourcing flexibility
̶ Greater transparency in project staffing
̶ Ability to adjust resourcing more easily
8. Education & training at pool level
̶ Reduction in overall training costs
9. Strengthen the BPM development
community
̶ Faster resolution to problems
10. Improve staff in the pool
̶ Increased exposure to other business areas
̶ Greater knowledge sharing
̶ No downtown

16. 1616 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
• Who’s AIG?
• Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
• CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
• Pega Technology Powering AIG’s CoE
• AIG’s CoE Case Studies
• Lessons Learned

17. 1717 © 2014, Confidential, Pegasystems Inc.
AIG COE & Project Team Structure
AIG CoE Team
CoE Manager
PRPC CoE Leadership
IT Exec Sponsor(s)
AIG Pega CoE
CoE LSA (2)
AIG Pega CoE – Extended Team
Engage Directly / Guidance
Test Lead Infrastructure Lead DBA Lead Deployment Manager Performance Lead
PM
Project Leadership
SI Delivery Partner
PM BA QALSA
Project Team(s)
BA QA
AIG Pega CoE Governance
Governance/GuidanceEngageDirectly
Enterprise Architect
Governance Manager
Process
Owner(s)
Pega LSA
CoE SA(s) Enterprise Architect
CoE Manager
Legend:
AIG Delivery
Partner
Pega
Biz Exec
Sponsor
Pega

18. 1818 © 2014, Confidential, Pegasystems Inc.
Typical AIG CoE Roles
CoE Leadership CoE Core Team Project Team
• Interacts with executive
leadership team and project
leadership
• Pega BPM project teams
have the executive support
to do the “right things”
• Executive governance
• Standardize Pega BPM
Delivery
• Perform value added
services and governance
• Own and improve best
practices and methodology
• Enablement of the project
team members (including
the business)
• Deliver R&D projects
• Participate in Program /
Project governance
• Manage / drive the project
• Manage day to day scope
and deliverables
• Use the current program
governance model
• Deliver projects according
to the initial set of best
practices and methodology

19. 1919 © 2014, Confidential, Pegasystems Inc.
AIG Pega CoE – Building Communities
LSA Community Forum – Recent Topics
• Adding custom validation rules in Pega to emphasize coding guidelines.
• Integrating a Pega Application with Google Maps.
• What is localization and how to implement it?
• Excel file creation with dynamic columns
• COE Code Review Process
• Automatic Agent Monitoring, Integration connections
Testing Portal, Production Health Check
• Document Uploader functionality
• Reviewing Log Files and fixing exceptions
• Security – Types of Authentication

20. 2020 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
 Who’s AIG?
 Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
 CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
 Pega Technology Powering AIG’s CoE
 AIG’s CoE Case Studies
 Lessons Learned

21. 2121 © 2014, Confidential, Pegasystems Inc.
AIG Pega CoE Leveraging the Pega Cloud
• Leverage as Strategic CoE development
sandbox (non-production use)
• Use cloud to test drive Pega frameworks
and PRPC versions
• Jump start development teams through
application and environment availability
Why The Pega Cloud?

22. 2222 © 2014, Confidential, Pegasystems Inc.
Pega Service Repository Becomes the Engine for Reuse
• AIG Core Framework is Built on Top of Pega Base Products.
AIG Core Framework Situational Layer Cake
AIG Core Framework
CASL
GES KX
eStart
CMS Excel Utilities SFTP API
AIG Pega Core
Guardrails
AIG Skins, UI,
Logos
CoE / MW Audit Portal
Foundational Data
Model
Core Work Processes,
Flows, Rules
Technical Integration Technical: Non-Integration Functional
• Case Management
• User Interface
• Correspondence
• Business Rules
• Process Management
• Integration Services
Pega BPM Base Product
Pega Underwriting for Insurance
Insurance Industry Foundation (IIF)
CPM for Warranty
Customer Process Manager (CPM)
Business Intelligence Exchange (BIX)
Internet Application Composer (IAC)
Pega Mobile
Salesforce Extender
Test Management Framework
Project Mgmt. Framework
PRPC Frameworks (Optional)

23. 2323 © 2014, Confidential, Pegasystems Inc.
AIG CoE Deployment Strategy Powered by Pega
Situational Layer Cake
GES Framework
GES Implementation
AIG Core Framework
Pega/PRPC Base
Product
GES Users
MNP Framework
MNP Implementation
AIG Core Framework
Insurance Industry FW
MNP Users
Pega/PRPC Base
Product
IAC
SalesForce Extender
WIN Framework
WIN Implementation
AIG Core Framework
CPM for Warranty
Service Net Users
Pega/PRPC Base
Product
Warranty FW
CPM FW
GRASP Framework
GRASP US
Imp
AIG Core Framework
GRASP US Users
Pega/PRPC Base Product
GRASP APAC
Imp
GRASP UK Users
iSuite Framework
iSuite Implementation
AIG Core Framework
Pega/PRPC Base
Product
iSuite Users

24. 2424 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
• Who’s AIG?
• Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
• CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
• Pega Technology Powering AIG’s CoE
• AIG’s CoE Case Studies
• Lessons Learned

25. 2525 © 2014, Confidential, Pegasystems Inc.
 The Multi-National Project entails building a new Pega application that integrates with a number of applications and
services within AIG.
 Some of these integration points are already developed by other Pega applications within Underwriting.
Case Study: Project Starter Kit – New Development
Challenge
 No re-usable asset framework or a starter kit for new Pega Applications to accelerate development.
 Resulting in duplication of development efforts across development silos.
Solution – AIG Core Framework
 Provide reusable framework & assets for integration and application components to be leveraged in existing &
upcoming Pega applications.
 Store, manage and publish reusable assets from AIG’s CoE Service Repository
 15 – 20% reduction in development effort.
 Faster time to market
Solution – Benefit

26. 2626 © 2014, Confidential, Pegasystems Inc.
• Two of our Pega underwriting applications need to implement SFTP functionality. Pega provides FTP functionality
out of the box requiring AIG to make use of java api’s and create utilities and activities.
Case Study – Reuse for Identical Business Requirements
Situation
• No placeholder for the application teams to share their code.
• Identical development activities were being done in silos, with no visibility into either project teams.
Approach and Solution – AIG Core Framework
• Provide a framework/skeleton for the application teams to share new functionality
• Empower Application Teams to communicate with the COE regarding the requirements.
• CoE Reuse program ensured “Build Once, Use Anywhere” paradigm
• 80% reduction in development effort
Solution – Benefit

27. 2727 © 2014, Confidential, Pegasystems Inc.
• A common integration used by many Pega applications within underwriting is upgrading its services.
• Without reuse all applications would need to make individual changes
Case Study – Common Integration Service
Situation
• Duplication of development efforts on maintenance activities.
Approach and Solution – AIG Core Framework
• Build a reusable framework that would be the repository of all Integrations and reusable components
• Implement a development & deployment strategy by versioning the AIG core framework.
• Empower multiple teams to collaborate and contribute in the creation of reusable assets
Solution – Benefit
• Reuse across 12 Application
• Projected to reduce development efforts by a factor of 11
•

28. 2828 © 2014, Confidential, Pegasystems Inc.
Discussion Topics
• Who’s AIG?
• Center of Excellence (CoE)
̶ What is a CoE?
̶ AIG Pega CoE Mission
̶ AIG Pega CoE Areas of Focus
̶ AIG iSUITE
̶ AIG Pega CoE Operating Model
• CoE Structure & Roles
̶ AIG Pega CoE Model
̶ Team Structure and Roles
̶ Educating the Enterprise
• Pega Technology Powering AIG’s CoE
• AIG’s CoE Case Studies
• Lessons Learned

29. 2929 © 2014, Confidential, Pegasystems Inc.
Lessons Learned & Challenges to Consider
• Funding: Corporate vs Project level
• Pega Expertise to build guardrail
compliant BPM apps
• Alignment with Enterprise Architecture
• Central repository and structure
• Management support

30. © 2014, Confidential, Pegasystems Inc.
QUESTIONS & ANSWERS