The NOVUM Challenge: How to transform the business model of an ISV in the insurance industry AWS Software Business Leader Forum Michael Kraus CEO / NOVUM 2016, Web Services, Inc. or its Affiliates. All rights reserved.
NOVUM at a Glance Company Figures NOVUM ISV for the insurance industry Founded 1993 Employee 150 Revenue 25 Mio. Locations: DACH Germany, Swiss, Austria CEE Slovenia Portfolio insurance core applications software development projects cloud services Zürich Köln Nürnberg Wien Salzburg Maribor www.novum-online.com www.novum-online.de www.novum-online.ch www.novum-online.at www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite 2
AGENDA How to transform the business model from an on-premise license and maintenance model into a cloud service model 1. Why? 2. How? 3. Experiences and Successes www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 S. 3
Why? Hard times for our customers www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 S. 4
Why? What CxO s need Customers are only interested in easy to use, fast and competitive pay-per-use services, not technology. www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 S. 5
Why? What CxO s need www.novum-online.de Produktstrategie Normen und Standards - BiPRO 15.06.16 S. 6
How? The Project Scope The project V ger Sky was organized as a default project in the NOVUM organization www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 S. 7
How? The Project Milestones preparation Part time 6 month Project Reparation Proof-of-Concept (POC) AWS introduction Project Start First Release of Deployment Processes V ger Sky Platform Implementation V ger Application project Full time 2,5 months Full time 1 month Going Live V ger Sky Finish all documentation End of Project V ger Sky 06.15 20.03.16 30.04.16 10.15 17.02.16 22.02.16 24.03.16 30.04.16 19.02.16 www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite 8
How? Shared Responsibilities Partner / Customer Identity & Access Management, Customer Data Responsible for access management to the cloud and data User administration, product customizing, etc. V ger Sky Applications (Warranty, Travel, Annex, P&C, Life, Claims, Claims Portal, DCS) Operating System, Network & Firewall Configuration Responsible for security in the cloud Encryption of data and connections Client-side Data Encryption & Data Integrity Authentication Server-side Encryption (File System and Data) Network Traffic Protection (Encryption / Integrity / Identity) Certified according international standards Compute Storage Database Networking Responsible for security of the cloud AWS Global Infrastructure Regions Availability Zones Edge Locations Certified according international standards www.novum-online.de ISV Business Leadership Forum 2016 Seite 9
How? AWS Services used by V gersky EC2 WorkSpaces Outlook Elastic Load Balancing AWS Directory Service VPN connection AWS KMS RDS PostgreSQL AWS Direct Connect Internet gateway AWS IAM virtual private cloud S3 Glacier AWS Lambda Cognito AWS Config AWS CloudFormation CloudWatch AWS CloudTrail SQS SNS API Gateway DynamoDB www.novum-online.de ISV Business Leadership Forum 2016 Seite 10
Experiences Experiences employees & customers Initial skepticism among employees: "Cloud is just a data center, only somewhere else Our core business is booming but why should we do now cloud "Our customers, the insurer will never go to the cloud Skepticism among potential customers: Data protection, IT Security and Compliance in the cloud possible? "Economic benefits tangible? but Cloud is a game changer - internally and externally! www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite S. 11 11
Experiences Experiences "Evangelization" by numerous appearances at industry meetings and trade products in industry media. Giving examples from the Financial Industry, e.g.: FINRA, Mapfre, Tulius Walden and of course the Talanx lighthouse project (Best in Cloud 2014) Employees must be party involved, not person concerned Management must fully behind the change and allow an error culture External pulse is good But innovation must be evolved and supported from the inside, so that it can be implemented in a short time and at acceptable costs. Setup of a baseline cloud infrastructure for Novum V ger Sky deployment in less than 1 hour and worldwide! -> new international customer option Extreme positive: industrial production of infrastructure and application following the infrastructure-asa-code approach www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite S. 12 12
Successes Experiences Measurable benefits: Increased awareness and awareness of NOVUM in existing market Translates into a significantly larger sales queue Insurers discuss seriously with NOVUM to accelerate digital projects Several deals of V'ger Sky solution currently with Insurer in Germany and Austria in advanced negotiation Status For comparison: be on-premise sales cycle of two years is very fast First requests from other European countries (unserved markets) www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite S. 13 13
Successes Experiences First Mover in the insurance market NOVUM is one of the first worldwide (Gartner analysts Insurance), which offers an complete insurance policy solution for an price per contract and year NOVUM has an additional revenue with plannable monthly income and long-term customer relationships First revenue 2016 Break-Even 2017 www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 Seite S. 14 14
Contact NOVUM GmbH Michael Kraus Geschäftsführer Nordostpark 51 D 90411 Nürnberg Telefon: +49 911 239900 Michael.Kraus@novum-online.de www.novum-online.de www.novum-online.de ISV Business Leadership Forum 2016 15.06.16 S. 15
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