The Role of IT Harmonization & Standardization in Management of International Organization

Transcription

1 Conf-IRM 2012 The Role of IT Harmonization & Standardization in Management of International Organization Ryszard Dyszkiewicz Head of Group IT Vienna Insurance Group

2 Global or international companies... global/international brands global market trends new life level mergers & acquisitions consolidation of capital new economy shared standards... create new standards 2

3 Why we need to standardize our world? Easier life Compatibility Reusability Easy migrations Common rules Fast communication Better quality Security 3

4 International standards examples of worldwide standards and organizations that create and assure them 4

5 Definitions Standardization Formulation, publication, and implementation of guidelines, rules, and specifications for common and repeated use, aimed at achieving optimum degree of order or uniformity in a given context, discipline, or field Harmonization Adjustment of differences and inconsistencies among different measurements, methods, procedures, schedules, specifications, or systems to make them uniform or mutually compatible (source businessdictionary.com) 5

6 Why companies need standards compatibility / compliance time / effort savings assurance of smooth communications internal benchmarking building brand awareness gaining competitive advantage corporate cultures / loyalty best practices 6

7 Reasons for IT standardization External reasons coming from outside: business requirements brand differentiation audits and compliance authorities reporting Internal reasons generated by IT: quality improvements risk mitigation savings IT landscape harmonization 7

8 Areas of IT standardizations for holdings Overall compliance with external standards (e.g. IFRS, Basel, Solvency II, FATCA, ISO) Data transfer networks (LAN, WAN, MPLS, VoIP) Support for Business Process harmonization Internal data exchange DWH, middleware solutions Reporting- and Management Information Systems Data storing / Data Center Project Management, Portfolio Management IT Asset Management (hardware, system, licenses) End-user support / help desk / support desk End-user computing IT Procurement / IT Controlling / IT Security 8

9 Advantages / disadvantages of IT standardization Advantages: all things mentioned before... Disadvantages: lower flexibility less local power decrease of motivation, resistance complicated processes especially difficult for small organizations over-head fear about transparency 9

10 How to standardize IT and win? Follow business strategy / business needs Standardize only fields that need standardization (clear requirements, business case analysis) IT standardization needs time As bigger organization as longer time is needed for change Step-wise approach Quick wins Permanent monitoring of the change Set borders of standardization Follow best practices Assure flexibility 10

11 When IT harmonization? Way of reaching standardization in heterogeneous environments Need for increase of collaboration between not-compatible entities Mergers / acquisitions Key success factors: transparent and visible goal change management and communication involvement of all stakeholders reached commitment, buy-in best practice 11

12 IT Standardization & Harmonization How we do it within Vienna Insurance Group?

13 The Vienna Insurance Group at one glance active in 25 countries of Europe listed on the stock exchange in Vienna and Prague operates about 50 insurance companies approx. 25,000 employees working for VIG groupwide Rating: A+ with a stable outlook (Standard and Poor's) Headquarters in Vienna, Austria EUR 8.9 billion premium income in

14 14

15 About 190 years in Austria and over 20 years in CEE Focus on Central and Eastern Europe / Foundation of the first insurer that is part of today's Group Germany, Czech Republic, Slovakia Hungary, Poland, Liechtenstein, Croatia, Italy Romania, Bulgaria, Serbia Belarus Slovenia, Ukraine Georgia, Russia Albania, Macedonia, Turkey Baltic States, Acquisition of Erste Group insurance operations Montenegro Bosnia and Herzegovina 15

16 Management principles The five cornerstones of corporate strategy 16

17 IT strategic approach of VIG Existing single systems and individually-developed solutions result in a significant costs demand! Therefore: Focus on standard software (out-of-the-box if possible) Unified software solutions for companies of VIG (standard) SAP as an international experienced partner Efficient solutions for countries and companies Create Standard following VIG Best Practices Implementation based on Master Principle 17

18 VIG IT Strategy Mission statement: to provide the best ICT solutions for international insurance group VIG Business Strategy Investment Plan VIG companies Compliance Performance Measurement Data Center IT Governance IT Procurement SAP Core SAP Smile Non-Smile implementations Other VIG standards (Intranet, Network IT Security Standardization Collaboration Transparency 18

19 Goals of VIG Master Principle Standardization of core insurance business processes and description of the Reference Processes Base insurance platform with a coverage of minimum 80 percent of the requirements necessary Creation of a central operational insurance system with the various components Possibility of a rapid and transparent integration of new companies by the amount of multilingual and multi-currency capabilities of the standard Support for VIG companies for business process harmonization and compliance with VIG Reference Model The independent analysis performed in 2010 and 2011 proofed saving potentials of about 42% of investments and about 47% for maintenance and running costs of the insurance platform. 19

20 VIG International Working Groups (IWGs) active involvement of IT specialists from local VIG companies into international IT standardization activities Full usage of international experience and best practices Assured know-how transfer Awareness of local exceptions / specific needs Buy-in of local resources by 20

21 Thank you for your attention! The documents consists on pictures that could be registered trademarks or logos of related companies and organizations. The pictures were used for information purposes only.