UNIVERSITE LIBRE DE BRUXELLES Solvay Business School SEMINAIRE

UNIVERSITE LIBRE DE BRUXELLES Solvay Business School SEMINAIRE DE TECHNOLOGIES DE L’INFORMATION ET DE LA COMMUNICATION GEST 116 e. Business - Introduction Pascale Vande Velde

Content of e. Business course Technologies de l’information et de La communication Introduction – Part II Payments & security Supply chain management V. 1. 0 Solvay Business School 2

Agenda Technologies de l’information et de La communication Technical enablers Case 1 : a newspaper site (information) Case 2 : web banking site (transaction) Case 3 : life insurance site (servicing) V. 1. 0 Solvay Business School 3

Technologies de l’information et de La communication V. 1. 0 A complex topic… Solvay Business School 4

Technical enablers Technologies de l’information et de La communication V. 1. 0 n Internet n Architecture developments n Linux OS n Java Solvay Business School 5

Internet history Technologies de l’information et de La communication n n n n V. 1. 0 The Internet is a publicly available worldwide system of interconnected computer networks that transmit data by packet switching using a standardized Internet Protocol (IP) The core networks forming the internet started out in 1969 as the ARPAnet, created by the US Department of Defence Advanced Research Projects Agency (ARPA) The objective of the ARPAnet was to connect different computers and networks designed by different vendors into a network of networks. The Department of Defence found out that their computers could not communicate between each other ARPAnet used a protocol called NCP (Network Control Protocol). ARPAnet moved to the TCP/IP protocol in 1983 Under ARPAnet several major innovations occurred: email (or electronic mail), the ability to send simple messages to another person across the network (1971); telnet, a remote connection service for controlling a computer (1972); and file transfer protocol (FTP), which allows information to be sent from one computer to another in bulk (1973) Another important step in the development of the internet was National Science Foundation building of a university backbone, the NSFnet, in 1986 Internet Protocol software was soon being placed on every type of computer, and universities and research groups also began using in-house networks known as Local Area Networks or LAN's. These in-house networks then started using Internet Protocol software so one LAN could connect with other LAN's The internet became widly used as from ’ 90 s. In 1989, Tim Berners-Lee created HTML, HTTP, and the first web pages at CERN. In 1993, Mosaic, the first web browser, was released. Solvay Business School 6

TCP/IP Technologies de l’information et de La communication n n TCP/IP is a protocol making the communication between different networks feasible TCP/IP is composed of 3 layers : – IP (Internet Protocol) : responsible for moving packets of data from node to node. IP forwards each packet based on a four byte destination address (the IP number). The internet authorities assign ranges of numbers to different organizations. The organizations assign groups of their numbers to departments. IP operates on gateway machines that move data from department to organization to region and then around the world – TCP (Transmission Control Protocol) : is responsible for verifying the correct delivery of data from client to server. Data can be lost in the intermediate network. TCP adds support to detect errors or lost data and to trigger retransmission until the data is correctly and completely received – Sockets : is a name given to the package of subroutines that provide access to TCP/IP on most systems n Addresses – TCP assigns a unique number to every workstation in the world. This IP number is a four byte value that, by convention, is expressed by converting each byte into a decimal number (0 to 255) and separating the bytes with a period. – For instance, a workstation as as IP number 130. 132. 59. 234 and all workstations in the organization have an IP number structured as follows : 130. 132. *. * V. 1. 0 Solvay Business School 7

TCP/IP (cont’d) Technologies de l’information et de La communication n A end user can install TCP/IP on a personal computer without any knowledge of either the corporate or the regional network. Three pieces of information are required : – The IP address assigned to the personal computer – The part of the IP address (the subnet mask) that distinguishes other machines on the same LAN (messages can be sent to them directly) from machines in other departments or elsewhere in the world – The IP address of the router machine that connects this LAN to the rest of the world n For instance : – IP address : 130. 132. 59. 234 – Subnet mask : 255. 0 – Default router : 130. 132. 59. 1 n V. 1. 0 The subnet mask tells the server that any other machine with an IP address beginning 130. 132. 59. * is on the same department LAN. All messages sent from a machine beginning 130. 132. 59. * will be sent directly to the LAN. All other messages will be sent to the default router Solvay Business School 8

HTML/XML Technologies de l’information et de La communication n n n HTML (Hyper. Text Markup Language), defined in 1991, is a markup language designed for the creation of web pages and other information viewable in a browser. The focus of HTML is on presentation (paragraphs, fonts, tables, graphs, etc. . . ) There are four types of markup elements : – Structural markup that describes the purpose of text. For example <h 1>Golf/h 1> will cause the browser to render “Golf” as a first level heading – Presentational markup that describes the visual appearance of text, regardless of its function. For example, <b>boldface</b> will render “boldface” in bold text – Hypertext markup which links parts of the document to other documents – Widget elements that create objects such as buttons and lists There were several versions of HTML (HTML 1. 0, 2. 0, 3. 0, 4. 0) The successor of HTML is XML (e. Xtensible Markup Language). It was defined in 1998. HTML uses a set of known tags that handle common formatting tasks. XML allows you to create any tag you want (is thus extensible) and then describe these tags in a meta language known as DTD (Document type definition). A common feature of any markup language is that they intermix thet text of a document with markup instructions in the same datastream or file XML is also widely use as format for document storage Example of markup language : <h 1> Anatidae </h 1> <p> The family <i>Anatidae</i> includes ducks, geese, and swans, but <em>not</em> the closely-related screamers. </p> V. 1. 0 Solvay Business School 9

Technologies de l’information et de La communication Architecture Background “In the old days, there was no need for technical architectures” ü Actually, vendors brought architecture de facto with the mainframe (e. g. IBM with CICS and IMS) ü Business was seeking automation of manual processes primarily requesting “standalone” applications ü There was no PAST – (no legacy systems to integrate) Today, the IT world is much more complex and diverse ü Solutions are networked / distributed ü We have to deal with the past : legacy integration and legacy maintenance while developing the future (web, wireless, B 2 B) Architecture has evolved through generations (# tiers) V. 1. 0 Solvay Business School 10

Historical Reminder 1 -tier architecture (80 ies) Technologies de l’information et de La communication Batch V. 1. 0 On-Line MF Solvay Business School Presentation Data Business Logic Presentation Business Logic Data Mainframe Data Presentation A mainframe execution architecture is 1 -tier : processing is done on the central server. Issue : No separation of concern between presentation, business logic and data logical layers. Desktop Computing 11

Historical Reminder 2 -tier architecture (early 90 ies) Technologies de l’information et de La communication Client/server supports an execution style where processes on different machines communicate through messages: the « client » makes requests to the server through service interfaces and the server responds. Historical push : MS Windows and its Graphical User Interface Rationale : C/S will reduce IT costs communication V. 1. 0 Business Logic server Communication Solvay Business School Business Logic Data Presentation client 12

Technologies de l’information et de La communication Historical Reminder 3 -tier architecture (late 90 ies) A Netcentric architecture allows to share transactional data and information between users and applications. Those applications allow « publishing, interacting or transacting » . Netcentric is nothing else than an evolution of client / server, enabling the connection of employees, clients and business partners through internet. Rationale : The web requires a specific front end server to handle thousands to potentially millions of connections. V. 1. 0 Solvay Business School 13

Multi channel platform – technical view Technologies de l’information et de La communication Presentation Tier Channel Management Tier Cross Channel Applications Tier External CRM system Business intelligence systems field Internet Session Business Logic Bloc 1 Reference data systems HR/Payroll systems Invoicing, billing and collection system External party system Regulatory reporting system Information delivery system Business Logic Bloc 3 Intranet Content Web Browser Marketing data Security Package Firewall Client Services & Operations Data Users Integration Layer App. Server Firewall Web Browser Page Business logic Business Logic Bloc 2 Wireless Browser (WAP, J 2 ME) dynamic field Application Server Accounting system Product Call Centre LDAP Web Browser Platform Product Voice Response Unit Phone Voice Response Server CRM Voice V. 1. 0 Other Products Voice Logger Solvay Business School 15

Technologies de l’information et de La communication n-tier architectures aim at solving business issues N-tier architectures provide a solution : Main business drivers are : – Globalisation of financial markets (mergers & acquisitions) – Increased competition – Changing client expectations – Spread of technonolgy-enabled « e. Business » To Mid-tier issues because : – They allow better re-usability of business logic layer (made from components) Resulting business needs : – Capability concentration, IT integration & cost reductions – Scalability – New product types – Short time-to-market for new product – Flexibility (IT and salesforce) – Multi-channel – High system availability & security V. 1. 0 To Front-end Issues because : – They provide cross-channel coherence from a client point of view – They allow the integration of information usually spread over multiple systems – They allow single maintenance of functionality offered on multiple channels – They reduce the cost of adding an additional channel To Back-end integration issues because : – They help integrate legacy systems – They enable B 2 B integration Solvay Business School 16

Linux Technologies de l’information et de La communication n n n n V. 1. 0 Linux is an open and free OS (downloadable from internet). It is mainly used in office applications, game softwares, mobile phones, video recorders and PDAs. Linux became the most widespread OS for internet servers. Linux, being free, is also installed on many low cost computers, a. o. In developing countries. Linux was developed by a Finner, Linus Torvalds, in 1991 at Helsinki University. Linus Torvalds is the owner of the Linux trademark. The Linux Mark Institute manages and grants Linux licences. Most of the code (71%) was written in C; other parts were written in C++, Lisp, Perl, Fortran. . Linux is a very secure OS (“virus proof”). Sales of Linux OS grow steadily. Based on IDC, 25% of all servers and 2, 8% of desktops were running on Linux in 2002. You need an emulator to run Windows applications without Linux equivalent on Linux. VMware enables it with more CPU (run a client OS on a host OS). In the beginning, it was difficult to install Linux on desktops; so Linux adaption was quite slow. Nowadays, more and more computers can be bought with a Linux OS instead of a Windows OS. In addition, the installation packs are currently easier to install. They are often available on CD. Technical support is provided by Linux suppliers and users groups. Solvay Business School 17

Linux - Applications Technologies de l’information et de La communication Zona Research “The New Religion: Linux and Open Source” Octobre 2000 V. 1. 0 Solvay Business School 18

Linux - Applications Technologies de l’information et de La communication n n Linux systems are mainly used for back office servers. They are mainly used as web servers, file servers, print servers, DNS servers, and mail servers etc. Linux systems focus on these domains for the following reasons: – – – n V. 1. 0 They are very reliable and robust The source code is accessible to fix any problems Problems can be quickly fixed and are shared with the Community Linux systems are very similar to Unix systems; it facilitates knowledge transfer Acquisition costs are limited Highly secure (“virus proof”) Most servers suppliers (IBM, HP, Sun, etc…. ) support Linux on most of their servers, including mainframes. They categorise Linux as a Tier 1 OS. All main applications are now Linux portable. Solvay Business School 19

Java Technologies de l’information et de La communication n n Java is an object oriented language developed by James Gosling and Sun Microsystems colleagues. In the beginning, this language was named Oak (1991). Java was commercialized in 1994. It is a language derived from C++, but more intuitive than C++. Java is independent from the platform on which it runs; therefore its success as internet application. It has been designed to support network applications : – The look and feel of a java GUI is independent of the hardware/OS – A java program can be launched on any OS/Hardware; thanks to a compilor and a virtual machine (VM) : • The compilor transforms the java language in a code half way to the machine code • This code is processed by a virtual machine (program written in native code on the hardware platform) that translates the java generic code in a code which can be used by the hardware n V. 1. 0 Sun created the company Java. Soft, in charge for the design and the distribution of the java language. The license granted by Sun requests that all implementations are compatible. Solvay Business School 20

Java Technologies de l’information et de La communication n n Java is not an open source program in spite of requests by several vendors (eg IBM). There are Java APIs, to integrate a java program in a program environment. Some companies can influence the APIs design but Sun keeps ownership and control on APIs. Security –java program must be reliable and secure since they are used in a distributed/open environment, thanks to numerous controls upstream and during the code execution – The java virtual machine applies a hierarchy of security controls on the machine on which the java code will be executed – The java compilor also applies many controls on the source code n n Easy interaction with TCP/IP protocol thanks to a library of routines. It makes the set up of network connections much easier than with a program written in C++ Frequent use of java : – – – – V. 1. 0 Web browsers Intranet/internet applications Web user interface (java beans call other programs, eg in C++) Mobile phones Smart cards TV set boxes Interfacing programs Solvay Business School 21

Agenda Technologies de l’information et de La communication Technical enablers Case 1 : a newspaper site (information) Case 2 : web banking site (transaction) Case 3 : life insurance site (servicing) V. 1. 0 Solvay Business School 22

Steps to set up an ebusiness Technologies de l’information et de La communication Define the strategy, business model Define products and services Define future processes, functionalities required Define sourcing Define technical architecture V. 1. 0 Solvay Business School 23

Business model Technologies de l’information et de La communication n Provide general and financial information to Belgian upper and middle class – Daily Belgian and international news – Financial and economic news – Leisure information n Provide information-based value added services – Archives – Personalization n Information provided based on – Own information sources – Third party information n Revenues model – Advertising – Subscription to value added services V. 1. 0 Solvay Business School 24

Products and services Technologies de l’information et de La communication n Products – – – – n Services – – V. 1. 0 Belgian news Financial and economic news Stock rates (2 minutes delay) Investment advice Leisure information Newsletter Investors’ guide Registration My portfolio My archives Call centre Solvay Business School 25

Possible sourcing Technologies de l’information et de La communication • Manages multi channel distribution • Personalization • Contribution to content • Location of content • Workflow (contribution process) n Broadvision n Eportal server Possible solutions : • A portal solution including a content and portal functionality • A portal solution combined with a content management solution • Mix of portal, content solutions and custom development IBM n Abaxx n ATG Dynamo n… Customer Relationship Management Portal Capabilities Authorization Personalization Customer services Community Process Integration Security Data extraction tool Content Management n Vignette n Documentum n Interwoven - IBM EAI V. 1. 0 Solvay Business School 26

Typical technical architecture Technologies de l’information et de La communication Call Centre/ emails Via Call Centre Operators • No necessary integration with back end systems of newspaper company • Information feeds integrated with content management tool • Information extraction can require specific extraction tools • CRM tool can be added to portal functionality Call Centre Workstation Information requests Customer Firewall Application Server Portal DB Server Portal Customer DB Internet Web Server External Systems V. 1. 0 Application Server Content Market Data Feeds DB Server Content Research Solvay Business School News Archives 27

Information feeds Technologies de l’information et de La communication n Feeding techniques depend on frequency of updates and volumes of data Archives Market Data Feeds Research News Batch process, DB replication several times a day File sent or automatic interface Archives Market Data Feeds • Depending on frequency of updates in case of real time information, back up solutions are necessary (second direct data transmission line) • Push technique : files sent • Pull technique : connection to information provider server Research File for updates Files sent several times a day News External Systems V. 1. 0 Solvay Business School 28

Agenda Technologies de l’information et de La communication Technical enablers Case 1 : a newspaper site (information) Case 2 : web banking site (transaction) Case 3 : life insurance site (servicing) V. 1. 0 Solvay Business School 29

Business model Technologies de l’information et de La communication n Provide the bank’s retail clients the functionality to carry out most of their banking operations – – n Deposits Account management Loans Credit cards Provide the bank’s retail clients the functionality to carry out most of their equity and mutual funds transactions – Bonds, options, derivatives excluded – Some exotic markets excluded n Build CRM tools to leverage on client information n Revenues model – Annual fees – Brokerage fees – Advertising V. 1. 0 Solvay Business School 30

Products and services Technologies de l’information et de La communication n Consultation – – n Accounts maintenance (status and operations) Portfolios maintenance (status and operations)/transaction services Loan maintenance Credit cards maintenance Management services – Relationship management (CRM) – Personnalization – … n Product support – – V. 1. 0 Deposits Loans Credit cards Brokerage Solvay Business School 31

Front end applications Technologies de l’information et de La communication Integrated Applications Financial Management Functions S 1 Virtual Financial Manager (VFM) VBM Virtual Bank Manager VCCM Virtual Credit Card Manager Internet/ VRU VLM Virtual Loan Manager VIM Virtual Investment Manager • Retail Banking Products and Services • Credit Card Services • Loan Balance and Servicing • Brokerage Services V. 1. 0 Solvay Business School 32

Functional Overview Technologies de l’information et de La communication Delivery Channels ATM/POS/ CARDS Network Back-end Systems RELATIONSHIP MANAGEMENT Customers V. 1. 0 Products, Services and Operation Management MANAGEMENT AND CONTROL - New - Current Branch/Call Center SERVICE DELIVERY VBM VLM VCCM VIM INFORMATION DELIVERY S 1 Virtual Financial Manager (VFM) Adaptive Layer Internet/ VRU Front-end Systems 3 rd Party Processing: Securities Processing Clearing Solvay Business School 33

Technical Environment Technologies de l’information et de La communication • Internet user works on a local database which is a copy of the bank database (databases are replicated several times a day) • Database replication necessary • Real time (front end) versus batch systems (back end) • Security reasons • Back end could be outsourced to third party Back end Front end End User Client DB Server Comm. Server SSL DB Server Internet Firewall Internal Network App Server Internal Network Local Director 9000 H Comm. Server Workstation Bank core system 9000 H Firewall 9000 H App Server V. 1. 0 9000 H App Server Cash Dispensers and other EMP App Server Solvay Business School Terminals Telephone Banking 34

Technologies de l’information et de La communication ADAPTER V. 1. 0 The adaptive layer provides the linkage between the front-end and back-end systems • Internet Account Origination - New customer and account information. • Customer and Account Maintenance - Customer and account additions, modifications, and deletions. • Deposit Account - Details of deposit accounts • Deposit Transaction - Detail listing of deposit account transactions • Credit Account - Details of credit accounts • Credit Transaction - Detail listing of credit account transactions • Credit Card Payment Reconciliation - Performance of credit card account maintenance, payments and debits • Loan Account - Detail information of loan balances • Funds Transfer - Creation, execution of review of funds transfers • Payee - Maintenance and review of payee list • Payment - Creation, execution and review of payments transactions and receive automatic payment requests from payment service. • Payment Reconciliation - Perform customer and account maintenance Solvay Business School 35

Integration of front end to back end Technologies de l’information et de La communication SCM CRM Trading Partner e. AI Vendor Lab System Challenges SAP n Most legacy or client/server-based enterprise applications were not designed to inter-operate with external applications or browser-based; end-user clients n Multiple and disparate • Applications (custom, legacy, packaged) • Platforms • Databases • Transaction processors • Data entry points • Versions of the same data n Application systems that are built at different times by different groups operating independently of each other n Incompatible business data formats V. 1. 0 Legacy e. AI means Enterprise Integration n a 2 a: Integration of back-end systems (SAP R/3<->Legacy) n a 2 a: Integration of front-end to back-end systems (Siebel<-->SAP R/3) n b 2 c: Integration of web applications with front- and back-end systems (self- service, customer interactions, etc. ) n b 2 b: Integration of applications across corporate or organizational boundaries (integration of business processes among trading partners, suppliers, distributors, etc. ) Solvay Business School 36

Technologies de l’information et de La communication Traditional Integration Architecture n Traditional middleware solutions facilitate the integration of individual applications and discrete transactions between them Point-to-Point Custom Code Point-to-Point integration with multiple interfacing methods n Limited reusability Interfaces were typically built on an as-needed basis and were not built in a manner that allowed components to be reused Siebel SAP n Tight coupling of applications The interfaces were tightly coupled to the applications forcing changes to an application on one end of the interface to directly impact the other end of the interface Legacy n Invasive integration approach requiring modifications to source applications n Change to one application can affect all interfaces to/from that application n Limited scalability of architecture across the enterprise Internet People Soft n Significant custom coding n No centralized management or visibility of information flows and business rules V. 1. 0 Solvay Business School 37

e. AI Architecture Technologies de l’information et de La communication n e. AI solution is a set of technologies that enables the integration of end-to-end business processes and data (information) across disparate applications to increase the organization’s ability to respond adapt to change by providing the following services: business process management, application connectivity, translation and transformation, communication middleware and message routing. App. B Message Brokers App. C App. A Message Broker Chaining together of discrete transactions in the form of a business process App. D App. E n Hub/Spoke or bus messaging architecture reduces # of connections Network Centric App. B n Loose coupling of integrated applications App. C n Prebuilt adapters n Reusable data/message transformation/formatting functions n Near real-time and/or batch integration App. A n Interenterprise connections n Central control of multistep business processes across multiple applications V. 1. 0 Solvay Business School App. D App. E 38

e. AI evolution Technologies de l’information et de La communication n 1980 s: Legacy systems • Departmental focus, but centralized platform and data • Highly fragmented, after-the-fact view of the business Millions of $ Enterprise Application Integration Market 3. 000 $2. 544 2. 500 $2. 073 2. 000 n 1990 s: Client/Server, Packaged Applications, Netcentric • Enterprise focus • Partially integrated, after-the-fact view of the business • Replaced much of existing IT investment $1. 564 1. 500 $1. 199 $892 1. 000 500 $248 $468 0 1998 1999 2000 2001 2002 2003 2004 Source: Gartner Group n 2000+: Enterprise Application Integration (e. AI) • Extended enterprise focus (B 2 B, B 2 C, etc. ) • Fully integrated, up-to-the-second visibility and control of the business % Get new applications into production quickly 38% • Preservation of existing IT investment Move information beyond traditional confines 20% • Integrate packaged, custom, legacy, and web applications Expand supplier and customer relationships 18% Integrate a best-of-breed world 14% Mergers and acquisitions 10% • e. Business and B 2 B drive IT investments V. 1. 0 Main uses of e. AI Solvay Business School 39

Technologies de l’information et de La communication e. AI components An e. AI solution is composed of the following services: Business Process Management Application Connectivity Translation and Formatting Communications Middleware V. 1. 0 Business process level integration and management The Business Process Management layer is responsible for the definition and management of cross-application business processes across the enterprise and between enterprises. These services enable the communication not just of data, but also of the business process context of the data being sent to another application. Prebuilt adapters to packaged applications, technology and custom adapter development kits The Application Connectivity layer provides reusable, non-invasive connectivity with packaged software (e. g. , ERP, third-party best-ofbreed) and custom legacy systems enabled by reliable, eventdriven messaging. Message and data transformation and formatting The Transformation and Formatting layer is responsible for the conversion of data and message content and syntax to reconcile the differences between data from multiple heterogeneous systems and data sources. This layer is responsible for maintaining the information structure of the messages passed between systems and their meaning in a format that can be comprehended by another application. Communications middleware and message routing The Communications Middleware component provides the architecture that implements various messaging models and route messages according message content and context. These services provide the connection among disparate resources, as well as security, queuing, and the functionality to reconcile network protocol differences. Solvay Business School 40

Technologies de l’information et de La communication Inter-enterprise integration Convergence of e. AI and B 2 B n The business case for a new webapplication is greatly enhanced if the new application can be integrated into an overall distributed application architecture n e. Commerce integration involves establishing connectivity between an enterprise’s front-end, web-based sales engine and its back-office systems This kind of integration work is primarily intraenterprise n Inter-enterprise integration is externally focused and requires that an enterprise’s systems be connected with those of its business partners V. 1. 0 Solvay Business School 41

Technologies de l’information et de La communication Product Segmentation: Integration “Type” Each vendor initially focused on a specific integration area and has been expanding their capabilities into the other integration spaces EDI Application to Application (A 2 A) Business to Business (B 2 B) Business to Consumer (B 2 C) Cross. Worlds Extricity Initial Offering IBM Mercator NEON Evolved Capabilities Tibco See. Beyond Sterling Commerce Viewlocity Vitria web. Methods* *web. Methods acquired Active to round-out their B 2 B-only offering. Active’s focus was only on A 2 A. V. 1. 0 Solvay Business School 42

e. AI Vendors’ Capabilities Technologies de l’information et de La communication Mapping of e. AI vendors’ according to their capabilities Clients should typically consider vendors in this area Challengers most feature-rich, capable technologies Leaders Market Share % 14 IBM Ability To Execute 12 Mercator Microsoft Tibco Vitria Software AG 12 NEON web Methods See. Beyond BEA SAGA GEIS Cross. Worlds Sopra Sun Healthcare. com Vignette Sungard Oracle Level 8 Fujitsu-Siemens Viewlocity Extricity Sterling Com. Candle Eclipsys/MSI Optio Sept, 2000 Niche Players Visionaries 7 5 5 Others Completeness of Vision 45 Source: Gartner Group Strategic Analysis Report, September 2000 – R-11 -5113 V. 1. 0 Solvay Business School 43

Agenda Technologies de l’information et de La communication Technical enablers Case 1 : a newspaper site (information) Case 2 : web banking site (transaction) Case 3 : life insurance site (servicing) V. 1. 0 Solvay Business School 44

Business model Technologies de l’information et de La communication Universal Level B 2 B Extranet n New virtual life insurance company, part of Royal Nederland (Allianz Group) n Virtual company concept: – Very few people working for the entity – All back offices activities have been outsourced to Accenture Insurance Services (ACIS): HRM, policy administration, finance, IT. . . – Brokers and banks are representing the distribution network n Key assets : – B 2 B extranet to larger Brokerage organizations – ACIS is available to other companies for outsourcing of their back office – Full STP (Straight-Through processing) V. 1. 0 Solvay Business School 45

Services Technologies de l’information et de La communication Insurance Administration Financial administration • Process application • Debtor management • Fund alterations • Acceptance & policy printing • Creditor management • Primary process • Alterations • In-/Excasso • Obliged reports: • Termination • Consolidation - Tax • Prolongation & investment • Chart of accounts mgt. - Yearly reports • Commission calculation Support V. 1. 0 Reporting - Actuarial reports General New Business • Service management • Management • New products • IT operations • Human Resources • New services • IT applications mgt. • Office management • Legal changes Solvay Business School 46

Technical Architecture Technologies de l’information et de La communication To speed up the interaction between ACIS and the intermediary parties, internet initiatives are being developed. In addition to the capability to access workflow management (CIA) and to deliver policy applications electronically (Policy Express), the brokers are given the opportunity to acquire policy quotations on-line. Web Policyholder Web CIA Broker V. 1. 0 F I R E W A LL Client relation database Case Management Reporting database Policy Express Solvay Business School Unipas C/S Interface Exact C/S 47

Technologies de l’information et de La communication Life insurance application process One of the key process characteristics of the application handling at ACIS, is the fact that standard applications in compliance with the UL medical criteria can be processed without interference from the UL Medical Acceptance department. This considerably speeds up the processing procedures. Case Management INSURANCE Applic. Process Standard Acceptance • Initial check • Work Preparation Follow-up open items Process Checklist Medical Acc. Collect Confirmation & final docs. Process Medical Acceptance Requirements Medical Acceptance Report Renew Policy Quotation Process & Issue Policy Rejection Process Medical Advice UL / EXTERNALS Medical Examination Universal Leven Medical Acceptance (Royal) Intermediary Progress Notice Case Management V. 1. 0 Solvay Business School 48

Workflow Management Technologies de l’information et de La communication The Case Management system helps to keep track of the application status application, dealing with the parties involved in the process. In order to monitor the progress, it produces reports that measure the status against the agreed Service Level. C. M. : Application Applicant Info: • Client data from Uni. Pas Policy Application Status: • Pipeline • Passing • Actual • Alteration • Rejected New Quotation Info: • Mark-up percentage • Restrictions • Date new quotation • Date client approval C. M. : Medical Acceptance Application Milestone Dates: • Application received • Progress notice • Letter of covering • Mortgage passing • Last document received • Issuing policy • Service Level benchmark V. 1. 0 Medical Milestone Dates: • Medical checklist • Medical examination • Authorization • Medical report • Medical adviser Solvay Business School 49

What is Workflow ? Technologies de l’information et de La communication Workflow can be broken down into 3 concepts: § Workflow describes how work moves through an organisation, i. e. workflows are an organisation’s business processes and the rules that drive and control the processes. § Workflow Automation is the electronic modelling of these business processes, i. e. mapping process flows and capturing rules and business logic. § Workflow Management is the ability to maintain and manage work in an operational environment, i. e. monitor, revise, balance, re-route work. In summary: § “The action of electronically modelling business processes so that resources and tasks can be coordinated, monitored and revised to improve productivity” V. 1. 0 Solvay Business School 50

Technologies de l’information et de La communication n The Role of Workflow Automation Definition: The action of electronically modeling an entire business process, which can then be coordinated, monitored, and revised to improve productivity n “Workflow” can be: • Routed Paper • The Business Flows of Corporation X A Systems Architecture Component/Service A Function of a Package Solution (e. g. ERP) A Workflow Management System • • • n V. 1. 0 Process Management Functions 1] Route Building routes work items to the next required activity 2] Rules Building provides the intelligence for determining process paths for a work item, based on the process state and the outcome of previous tasks Functions: 3] Roles Management • Offer a tool set through which to MODEL entire business processes • Provide application services which automatically COORDINATE manual and automated process functions • Maintain extensive statistics from which to MONITOR process performance • Provide a flexible framework for management to dynamically REVISE business processes Solvay Business School defines a user or a workgroup’s responsibilities and tasks in the process 4] Queue Management provides access and control of work queues or “in-baskets” 5] Monitor / Reporting 51

Technologies de l’information et de La communication High Level Rules for Workflow n Workflow Technology is Value Added when The Enterprise Has: • • n Well defined (modelable) business processes n Static business processes n Few (or consistent) exceptions n Delays occur due to process transfer time n Delays due to business process steps being separated by physical distance n n n V. 1. 0 Automated audit trail Improved accountability Exception handling Faster communication Faster decision making Monitors task and process costs Increased Flexibility • • n Reduced manual effort Reduced administrative effort Improved resource utilization Reduced transfer time between activities Increased Control • • • n Workers focus on value-adding activities Directs users to high priority work Automates routing of work Concurrent access capabilities Reduced Costs • • Tracking or auditing of work in progress is a priority …and can result in: Increased Productivity Improved information access Maximize decision making capability at point of decision Single point of process modification Dynamic reprioritization and redistribution of work Powerful Statistics Solvay Business School 52

Conceptual Workflow Architecture Technologies de l’information et de La communication Human Resources Marketing Customer Service Finance / Accting Order Entry Customer Services Human Resources Marketing Manufacturing Finance / Accting Worklist Handler Message Box Desktop Apps. Process Review Order Entry RDBMS Application Workflow Services Process Initiation Customer Service Manufacturing Business Applications User Workflow Services Human Resources Finance / Accting Order Entry Manufacturing Marketing Batch Processes Asynch Processes Process Initiation Workflow Process Owner Services Work Item Reassignment Resource Scheduling Management Reporting Workflow APIs ILLUSTRATIVE Workflow Engine Process Statistics Database Event Manager Workflow Participant Management Instance Management Queue Management Alert Management Queue Data Rule & Route Management Workflow Procedures Database Process Instance Data Performance Support (Online Help) Workflow Systems Administration Process Mapping V. 1. 0 Resource Maintenance Process Rule Maintenance Process Definitions Activity Definitions Rule Definitions Solvay Business School Milestone Definitions Resource Definitions 53

What components make up a Workflow Solution? Technologies de l’information et de La communication Workflow solutions are made up of several basic components necessary to design, build and execute workflow management systems: 1. Process Design Methodology 2. 3. 4. 5. – a workflow system should be designed with the process flow as the focal-point – typically, an organisation would use their own standards/methodology Process Mapping Tool – draws a map representing process flows – vendors typically offer a graphical mapping tool to “visualise” the process flow Rules Builder – defines routing procedures, security, priority, alert notifications, etc. – usually integrated with the process mapping tool Workflow Engine • manages the process flow between client applications, server applications, users, data stores. • moves work items along the process maps • central point of coordination and management Workflow Administrator Utility – run-time component which gathers workflow statistics and generates reports, e. g. processing times, queue volumes, workgroup volumes, alert notifications etc. . V. 1. 0 Solvay Business School 54