Building a World Class Distribution Platform at MassMutual

Transcription

1 Building a World Class Distribution Platform at MassMutual Rob Laughlin Director, US Insurance Group PMO Sam Jaberi Vice President, Information Systems Organization

2 Agenda Who is MassMutual? Our challenge Our solution Phase 1 implementation Lessons learned Our next steps Questions and Answers

3 MassMutual Financial Group A Mutually Owned Protection, Accumulation, and Income Management Company Founded 1851 Financial Highlights (YE2006) Assets Under Management Premiums and other deposits Worldwide Insurance in force Dividends to eligible participating policyholders $456 Billion $26.3 Billion $473 Billion $1.23 Billion 13 Million Clients Worldwide Headquartered in Springfield, Mass. Offices located around the world Products and Services Insurance Life, Disability Income, Long- Term Care Accumulation and Income Management Retirement Planning Products, Annuities, Mutual Funds Institutional & International Asset Management Major Subsidiaries Baring Asset Management Limited Babson Capital Management LLC OppenheimerFunds, Inc.

4 Our Challenge Primarily focused in Career Agency Sales Direct relationships within some of our product lines Infrastructure based on two-tier Career Agency hierarchy Evolving distribution with static infrastructure Restricted by legacy producer databases and systems

5 Our Challenge As a result: Relationships were no longer represented as they truly exist. An enterprise view of relationship data was unavailable. Service and training challenges were created, as well as pockets of Subject Matter Experts. Compensation calculations Done in 20+ admin systems Dependent on some level of relationship and producer data

6 Our Challenge In a nutshell. Our ability to understand our distribution force was extremely lacking. We had suspect distribution data imbedded all around the enterprise. The basis of all compensation was this data. Our ability to report on the productivity of our distribution force was challenged. Our ability to implement change was time consuming and expensive. We faced a daunting servicing challenge.

7 Our Solution Distribution Servicing Platform (DSP)

8 Our Solution DSP Objectives A fully-integrated distribution management system that meets future distribution servicing needs A technology and business solution that enables MassMutual to master field info, relationships, and compensation A single repository of the true distribution partners and relationships A single compensation calculation engine to calculate all forms of compensation due our distribution partners

9 Our Solution DSP Objectives The ability to capture, at the time of sale, all the partners and relationships that came together for that sale The ability to share that data wherever needed A cornerstone of strategic projects Sunsetting legacy New product offerings A tool to support our strategic objective to grow the Career Agency System (CAS) 4,100 producers and counting

10 Our Solution - Why SAP? Flexible relationship model was key SAP demonstrated ability to support this where other companies were limited by hierarchy structure Custom development of business package occurred to capture relationships for a piece of business (policy) Good relationship existed with SAP Other SAP modules (HR, FI, and BI) were already in use at MassMutual

11 Our Solution - DSP System Components SAP Business Partner & Relationships (BP & PD Org) SAP Compensation System (CS/ICM) Business Intelligence (BI) Remunerations (calcs) Reporting Data Feeds to downstream paymaster Comp accounting SAP Collections & Disbursements (CD) Corporate General Ledger (FI) Stock SAP Components

12 Our Solution - DSP System Components SAP Business Partner & Relationships (BP & PD Org) SAP Business Packages SAP Pre- Processor SAP Compensation System (CS/ICM) Business Intelligence (BI) Remunerations (calcs) Reporting Data Feeds to downstream paymaster Comp accounting SAP Collections & Disbursements (CD) Corporate General Ledger (FI) Stock SAP Components SAP Custom Development

13 New Producer New Business Services Our Solution - DSP System Components SAP Portal (Home Office Access) SAP Business Partner & Relationships (BP & PD Org) Legacy DBs FieldNet Field s online access to comp details SAP Business Packages SAP Pre- Procesor SAP Compensation System (CS/ICM) Business Intelligence (BI) Admin Feeds Remunerations (calcs) Credentials Reporting Data Feeds to downstream paymaster Legacy DBs Compensation Events (payment, surrender, lapse, etc) Comp accounting SAP Collections & Disbursements (CD) Corporate General Ledger (FI) Paymasters DTCC ACH Vouchers MM Legacy Systems Stock SAP Components SAP Custom Development

14 Phase 1 Implementation Go Live March 2007 Initial Incentive Compensation and Collections & Disbursements Modules installed Approximately 18 months elapsed time Retirement Services first line of business

15 Phase 1 Implementation Structured governance process Strict change control process Out-of-box guiding principal Partnered with SAP consulting for development Partnership with SAP OSS notes added to base Shallow knowledge base in US Environment management

16 Phase 1 Implementation Conversion Large data conversion 256,000 Business Partners converted 109,000 Relationships converted 6,000 Retirement Services Business Packages converted Lots of data scrubbing in legacy Full file testing & several dress rehearsals Tuning required to reduce run times

17 Phase 1 Implementation Testing Integrated Unit Testing with Interfaces Extensive Business Acceptance Testing Significant Performance Testing Each component separately End to end testing Readiness and Communication Approach Implementation Dress Rehearsal

18 Phase 1 Post Implementation Very few production defects Some bumps with business readiness Multi-year, multi-phased project so cost benefits not realized until later Support structure in IT business support area, not centralized SAP support area Dual landscapes required

19 Phase 1 Lessons Learned Put best people on the project Co-locate the project team Learn the system before analysis and design Don t underestimate the readiness and training effort Don t underestimate the conversion effort

20 Phase 1 Lessons Learned Strong governance structure & process Strong project management team Single point of ownership for delivery Project Management 101 Don t compromise on project management principles!

21 What s in the Future? Distribution Servicing Platform (DSP)

22 DSP Project Value / Future Phase 4 Phase 3 Remaining Life Products Annuity & DI Products BI Information Delivery Foundation Non-Variable Life Products Registration Management BI Information Delivery Life Additional Conversions Annuity & DI Ultimate Vision: All Calcs done in DSP All relationships captured in DSP Allow for sunsetting of legacy producer systems Remaining Functions Long Term Care Large Corporate Markets MMLISI Broker Dealer Secondary Compensation Recognition Paymaster Value Phase 2 Foundation Variable Life Products Appointments and Licenses Rules database and engine BI Information Delivery ERP2005 Upgrade Credentials Life - Variable Credentials Life Non-Variable Phase 1 Install foundation Retirement Services Product Line Implementation Timeline

23 SOA Architecture In Development Now Utilizing SAP XI / PI Make business functionalities available to both internal and external applications Reduces overall integration effort

24 SOA Architecture In Development Now New Business Systems Admin Systems Enterprise Applications New Business New Business New Business Web-Based Dist. Mgmt Analytics & Reporting Business Process Mgmt / Data & Info Mgmt / Identity Mgmt Enterprise SOA Appointment & Licensing Services (Third Party) DSP Business Partner PD Org BI Distribution Info Factory Credentialing ICM Pay Services FI/CO (G/L)

25 Questions & Answers Robert Laughlin Sam Jaberi

26 2007 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates.