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BI_SAS

VIEWS: 273 PAGES: 16

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									CHANGE PRESENTS OPPORTUNITIES AT BB&T

     SAS®automates sales leads, identifies cross-sell opportunities



With a history of expansion that dates back to 1872, BB&T is one of the fastest-growing financial
holding companies in the United States. Indeed, the profitable company has acquired 58
community banks, 70 insurance agencies and 23 non-bank financial services companies in the
last 15 years alone.

As BB&T continues to aim for growth, however, it needs a more powerful way to generate sales
leads and cross-sell opportunities for its growing list of customers. With SAS/IntrNet software,
analysts in the company's marketing division are meeting that need with an online reporting
solution that tailors customer intelligence for each of BB&T's 1,400 branch offices.

"We've been using the intranet for a long time," explains Ronnie Rowton, senior analyst at BB&T,
"but not like this." Before Rowton spearheaded the SAS solution at BB&T, sales coordinators
could download Excel spreadsheets containing regional customer data and also make ad hoc
requests to Rowton and his colleagues for additional data. Now, everything – from customer lead
lists and household win/loss reports to executive dashboards and administrative reports – is
available from the same Web interface. The system receives more than 1,000 daily hits and
produces an average of 600 unique reports every day.

"It's interactive and dynamic," says Rowton, "and the information that we've made available with
SAS is vast." Indeed, just as BB&T's customers enjoy one-stop shopping for all of their financial
needs, BB&T's sales force – nearly 14,000 strong – now receives its customer intelligence on
demand from a single application.

                                         Product managers, corporate executives and regional sales
                                         coordinators use the same interface for executive-level
                                         decision making. The user-friendly application allows
                                         employees to access information on everything from
                                         revolving credit to household-level retention rates and the
                                         network structure of the bank.

                                    Quality, branch-level sales leads
Bill McCoy, Senior Analyst; Dwight  Each month, SAS analyzes a combination of household data
Mouton, Manager of Client Analytics;and product ownership variables, and then supplies every
Ronnie Rowton, Senior Analyst; Steve
                                    branch with a list of customers most likely to show an interest
Hubbard, Manager of Reporting and Lead
Management.                         in BB&T's cross-sell opportunities. Customers who have a
                                    direct-deposit account and a credit card through BB&T might
receive debit card promotions, for example, and loyal customers with both a BB&T checking
account and mortgage are likely to be offered a home equity line of credit.

After consulting with the company's regional sales coordinators, BB&T's senior analysts
developed dynamic, interactive lead lists for the 12 products most often sold at the branch level,
including deposit-related products, business loans and equity loans. Designed to fulfill 80 percent
of all information requests from the branch sales teams, these reports – which BB&T analysts call
the Suite of 12 – replace thousands of monthly ad hoc requests.
"SAS provides us with a fast and efficient method of creating the Suite of 12 reports in real time,"
explains Bill McCoy, senior analyst and lead developer on the project. In the past, this useful
information was available only at the regional level. Today, powerful analysis from SAS makes it
easy to generate lead lists for each branch.

"We couldn't do this without SAS," says Dwight Mouton, manager of Client Analytics at BB&T.
"We would have to manually create 12 unique lead reports for 1,400 individual branches. You just
can't do that without the power and automation of SAS."

According to Rowton, the time savings that SAS provides on this project alone will total more than
140 days every year. "We were spending more than two weeks every month on these reports,"
he says, "and now we spend less than one day a month. That's a big time savings and true
opportunity gained."

Automating household-level sales leads saves millions
Another valuable project that SAS has automated for BB&T is a series of household profile
sheets, which inventory all sales leads for each of BB&T's existing customers at the household
level.

"The profile sheets are a combination of leads that come from all the product areas, all put
together into one report for each household," explains Steve Hubbard, BB&T's manager of
reporting and lead management. "When we have three product areas that have offers for the
same household, we put them all into one report and distribute them out to the branch sales
network, so they can approach that household with one phone call instead of three."

                                     Traditionally, these reports were delivered to each branch in
                                     paper format three times a year – a monumental effort that
                                     produced more than 15 boxes of reports. "Now we're using
                                     SAS to deliver these reports electronically," says Hubbard.
                                     "Employees at each branch can go to the intranet, enter their
                                     center number, and SAS brings up their leads electronically."

                                     Automating this project with SAS offers huge savings for
                                     BB&T. "We simply did not have the resources to do this
                                     before," says Hubbard, "so we were using vendors to
generate the profile sheets and mail them out. Now that we can automate that entire process,
we'll be saving about $1 million a year."

Versatile, executive-level business intelligence
In addition to the many sales-related reports now available online, BB&T's analysts are providing
high-level intelligence that executives can explore at many levels. Popular executive reports
include sales penetration rates, detailed deposit reporting and response models that describe
results for various sales and marketing campaigns. Regional bank officers can access this
information from an executive dashboard that presents relevant and up-to-date information about
their region in scorecard format.

According to Hubbard, SAS not only automates reporting, it also provides more versatility and
accuracy than other analytic products. "With SAS, I can write a program that does anything I
need it to do, and everything is automated, totaled and arranged the way I need it to be. Within
minutes, the end user can pull out information in hundreds of different ways. We never would
have been able to do any of this without SAS."
ACHIEVING A CORPORATE DATA WAREHOUSE

                                                                                                  ®
    Export Development Canada develops information management strategy with SAS



Trade finance and risk management services provided by Export Development Canada (EDC)
connect Canadian entrepreneurs to the world by opening doors to new opportunities. As the
country’s only financial institution devoted exclusively to supporting Canadian exporters and
investors, EDC is guided by a federal mandate to support and develop the country’s trade and
international business opportunities.

Last year, EDC fulfilled that mandate, in part, by helping Canadian businesses conclude (CDN)
$51.9 billion in export and domestic sales and investments – up 13 percent from the previous
year. As EDC continues to expand its portfolio and its customer base, however, it also creates
large internal demands for more and more information.

Using SAS data warehousing and business intelligence technologies, EDC managers are
meeting that demand with a complete strategy for information management. According to Arthur
Pelletier, director of Client Services at EDC, the solution, which is supported by SAS software,
facilitates customer self-service, provides quick access to last-business-day information and acts
as a single, trusted source for enterprise-wide information.

"Managing business in an increasingly complex and evolving world demands better management
of and better access to corporate information," says Pelletier. "With SAS, we’ve replaced many
disconnected sources of data – application extracts, personal spreadsheets, MS Access
databases – with an integrated structure that supports reliable and robust tools, processes and
procedures."

Data as an organizational asset
As Pelletier worked with James Dorrance, his data warehouse project manager, to begin building
the new SAS infrastructure, both men agreed that deriving measurable business benefits from the
warehouse was the key to gaining momentum and support at all levels of the agency.

"One of the issues we faced early on was how to spread this notion that data is an asset to the
organization," explains Pelletier. "If we can put a dollar value around this asset and express the
value of this data in a tangible way that goes a long way toward resolving the inevitable data
quality issues."

Dorrance agrees: "We hoped to foster corporate awareness and dialogue about information
quality by illustrating a real-life situation where quality issues are effectively addressed by
applying this technology," says Dorrance.

A complete, accurate picture of risk
So Pelletier and Dorrance decided the first business use of the warehouse would be to implement
a new, monthly risk management report that analyzes commercial obligor credit exposure. As
part of a three-report package distributed monthly to the board of directors, this information goes
to the heart of EDC’s mission – delivering financial and insurance services that other lenders
often deem too risky.
But to maximize EDC’s risk capacity for its customers and still remain profitable, EDC must be
able to quickly and accurately calculate critical risk measures – such as portfolio concentrations
and changes, probability of default, exposure at risk, and credit migration – for each of its
commercial clients. And those calculations cannot be performed without access to complete,
reliable credit data in the form of risk ratings, risk limits, board-approved limits and many other
variables.

Before using the data warehouse and SAS software, the process for generating this crucial report
comprised 257 sub-processes, including steps for data retrieval, data manipulation, data
verification and rework. With SAS data warehousing, two-thirds of those processes have been
eliminated, and 95 percent of the remaining steps have been automated.

According to Dorrance, the reduced workload frees up an equivalent of one full-time employee to
do more analytical and value-added work, and it reduces the potential for error by eliminating
points at which the data is touched and manipulated.

"Continued tracking of errors indicates an 80 percent reduction in errors and an expectation that
the error rate will continue to decline," says Dorrance. This translates into a higher quality of
information delivered to managers and executives, and a clearer picture of the company’s overall
risk exposure.

The final report, which used to be delivered in a paper-based format, is now available online via
SAS Enterprise Guide, which provides self-sufficient and easy access to enterprise data sources
for business analysts and executives.

A complete return on investment
According to Pelletier, EDC has already realized a full return on its investment in this application.
Now, as the warehousing team moves forward with more data quality and business intelligence
efforts, they’ll continue to build on that value.

"Moving forward, the SAS data warehouse will be the main vehicle for disseminating corporate
information," says Dorrance. His team’s data warehousing strategy includes a layer for extracting
and transforming data from throughout the enterprise and delivering that information to smaller,
subject-oriented data marts.

Warehouse management features in SAS – such as centralized metadata, common enterprise
data management and custom library definitions – provide the tools and processes for a
consistent approach for warehouse evolution.

Among other initiatives, Dorrance and Pelletier have created an operational reporting facility to
support treasury operations; they have also developed unique data marts for aggregating
business exposure and supporting detailed reports on EDC’s insurance portfolio. And by
delivering a data mart that provides the basis for the corporation’s balanced scorecard and
employee incentives program, employees can view daily scorecard updates instead of waiting
more than 10 days for results as they did in the past.

"With the data warehouse initiative, technology is the easy part," says Dorrance, "but
communicating the strategy can be challenging. Once we were able to show how quickly we
could deliver value back to the business, however, the message was easy to communicate."
Now, EDC executives have a growing interested in leveraging their data warehousing investment
to support business intelligence that provides returns above and beyond simple efficiency
improvements. With that strong corporate alignment around the data warehousing strategy, EDC
can continue to count on SAS for obtaining accurate, timely and comprehensive information.
SAS®9 EMPOWERS CODAN, A LEADING SCANDINAVIAN INSURER, TO CUT COSTS AND
IMPROVE PROFITABILITY

SAS software provides Codan with fast access to up-to-date business, customer and market
intelligence – and is helping to improve service and reduce costs in a competitive marketplace.

                                        Codan is one of Scandinavia's most successful insurance
                                        companies, with annual revenues of approximately DKK 19.3
                                        billion (€2.6 billion, US$3.3 billion). Denmark's third-largest
              Check out this video to   insurer, it is a publicly listed company with 72 percent of its
              learn more about Codan
              Group and its successes
                                        shares owned by the UK's Royal & SunAlliance. With the sale
              with SAS.                 of its life and pensions business in 2004, the business is now
                                        firmly focused on general insurance products such as auto,
 View Video
  Windows Media Player                  household and accident coverage. Codan scores high in
  Real Player                           customer satisfaction and loyalty; understandably, the group
 (Runtime: 4 min. 2 sec)
                                        wants to maintain this reputation while also controlling costs.

                                        Codan has been using SAS to support its business for 20
                                        years; in 1987 it launched its first data warehouse and, in
 You have questions; our customers
 have answers. Check out this video
                                        2004, took its evolution to the next level with SAS®9. "We've
 Q&A.                                   got one of the best data warehouses in Denmark," says
                    Jan Parner
                                        Johan Agerman, Chief Information Officer, Codan. "Now with
                    Chief Analyst       SAS we are working on getting the information out to the real
                    Codan Group         decision makers. Our relationship with SAS is very good – we
                                        need a partner that comes up with good ideas, not just a
 View Video                             sales pitch."
  Windows Media Player
  Real Player
                                           To build profits, Agerman says Codan has to select the "right
                                           customers and the right risks and price them correctly." Prior
                                           to implementing SAS®9, the business relied on IT experts to
   (Requires Windows Media Player 6.4.7 or comb through 200 data sources to pull out information and
   higher or RealPlayer 6 or higher)
                                           deliver it to employees working on applications, pricing and
                                           claims. This could take up to two days but, as Agerman says,
the marketplace no longer tolerates such a time lag. "In Sweden, Internet sales and Internet claim
settlements are becoming more popular, and we are seeing the same development in Denmark.
It's key to have the right data at the right time. If we can give a customer an answer quicker, we
have a business advantage, a competitive advantage." In short, faster answers provided by SAS
mean better business for Codan.

Leading the way
Codan's SAS data warehouse supports a range of core activities. These include insurance
accounting, customer profitability analysis and scoring, campaign analysis, sales reporting,
product reporting and ad hoc analytics and reporting. In fact, the company uses SAP financial
management and human resource software complemented by a wide range of SAS solutions.
"SAP is a very strict system," explains Jørgen Falkesgaard, Project Manager in Codan's IT
Competence Department. "It ensures data is stored correctly and locked when users access it.
SAS is not so strict, and enables you to get a better overview. We combine data from the SAP
system with data from other sources. SAS enables us to enrich the SAP data with other
information – that's where the benefit lies." However, with demand rising within the business to
make analysis even more powerful and easy-to-use while also cutting costs, it was time to move
to the next level. Codan's requirements were strict, covering issues such as easy access for all
users, confidence in data integrity, archiving and backups, improved performance, results-
oriented reporting and, above all, security and stability.
Moving forward in partnership with SAS
Since Codan had been using SAS successfully for years, Falkesgaard and his team realized it
would be the best route to achieve enhanced data management, better data quality, more
powerful analytics and a host of other improvements. They were convinced the ideal solution was
an upgrade from SAS 8 to SAS®9. Indeed, Codan identified the benefits as including improved
stability and manageability of better-quality data, reduced development time for applications,
easier system maintenance and improved staff productivity. To enable this enhancement, a top-
down commitment from senior managers was critical. At this point, the SAS team became
involved, working closely with Codan to show how SAS ®9 could revolutionize data management,
and save money.

A process began in February 2003 to analyze the existing use of SAS solutions and to explore
the new capabilities SAS®9 could add. In July 2003, Codan became an early adopter. A full range
of SAS software was then installed on the NT servers: SAS Enterprise Guide joined SAS on PC
clients; SAS ETL Studio and Management Console replaced SAS Warehouse Administrator; and
analysis and applications were moved from MVS to the servers. By January 2004 the MVS
system was being upgraded to SAS®9 and user training had started. Testing also began on portal
and reporting products.

Throughout, SAS people focused on the vital task of communicating how Codan's capabilities
would be transformed once the transition was complete. Falkesgaard stresses how important this
communication was in winning management buy-in, summing up the core values that
characterized SAS' involvement as "truth, trust and teamwork." In July 2004 the new SAS
environment was up and running and the transition was smooth. "Technology-wise, we didn't
have any problems worth mentioning," says Falkesgaard, "and we didn't have any problems at all
with the SAS solutions." In just two years, the server environment will have recouped all costs
associated with the move in saved MIPS alone. For Codan, however, the business advantages
and cost savings provided by SAS®9 are the most important benefits.

The benefits are clear
With SAS®9, data and information became readily available on each employee's desktop. With
minimal training, people could become self-sufficient by leveraging information in their daily
decisions – analysts determining pricing and claims, for example – while insights for senior
executives supported strategic decision making. As Falkesgaard explains, "People soon
discovered that the changes we had made brought them benefits in their work through improved
analysis and reporting." SAS®9 interfaces were tailored to varying skill levels and usage patterns,
making it even easier for the widest range of employees to access and use essential information
to help them excel in their day-to-day business.

Falkesgaard adds, "Because SAS®9 is built on industry standards, we could integrate the
business intelligence environment with our production systems and insurance systems.
Customer-facing employees have access to all the information our analysts can retrieve from the
data warehouse, and we route that information directly back to our Web systems." The new
approach provides the basis for improved marketing and customer retention campaigns. "We're
very interested in customer profitability – 'customer scoring' – and that's the main type of
information we started routing back," says Falkesgaard. "We're now moving toward marketing
automation."

Business analytics in action
Like most businesses, Codan needs to understand where, when and how to deploy resources for
the best returns. But the insurance sector faces a unique set of challenges. For example, reduced
income from property portfolios and falling reserves have made it more difficult to cover losses
from fraud and rising claims. Companies must also fine-tune their profitability through better
cross- and up-selling, improved customer retention and more accurate pricing. A key success
factor is the ability to accurately segment the market and then price according to individual
customer risk, a practice known as "individual risk pricing". This enables Codan to get closer to its
customers by capturing all of their attributes that describe potential risk.

"We aim to reveal hidden customer information and then translate that into, for example, reduced
IT spending at an operational level," says Jan Parner, chief analyst in Codan's Personal
Insurance Division and head of its Business Intelligence Department. "We use all the tools in SAS
– it's an integrated part of what we do. If you want to run a campaign you use knowledge from us.
If you want to identify who in the sales force is going to address a particular customer segment,
you get the information from us. If you want to set prices, you use our knowledge. The insights we
provide control how the sales force is used, what type of customers we address - and it's all at a
micro level, almost down to individual customers. It's highly segmented and highly accurate. We
aim to inspire our people to turn their normal decision-making style into management by
knowledge."

The team uses SAS to seek out opportunities buried in vast quantities of data and so support
decision making at all levels. This covers important areas such as customer behaviour and
profitability, as well as determining risk premiums and pricing levels. "Picking the right customers
is the difference between making and losing money," says Parner. "You need to understand
which customers to retain and which you can let go to competitors who are beating your price. If
you have good risk discrimination and therefore highly segmented pricing, you can go below your
competitors on price, if necessary, for the good segments. We're also constantly looking for
opportunities to cross- and up-sell."

By providing Codan with more powerful data management and analytical capabilities, SAS ®9 is
enabling the business to accurately assess and constantly update its customer intelligence,
transforming this into actionable knowledge. The ultimate outcome is a healthier bottom line.

Better business intelligence
"We have the right tools to dig into the real business issues," says Parner. "If we had problems
with the infrastructure – if we couldn't access data, if we didn't have SAS to bring our data to life –
it would be a major hassle. Instead, we can focus on the real intellectual problems and not worry
about the infrastructure." He says this solid SAS 9.1 architecture is what makes savings possible
at Codan, as it enables his team to effectively examine strategic business issues and drive
change at every level. "SAS gives us the ability to focus on the real issues – that's how it saves
us money."

He adds, "Typical management requests come as one-liners such as 'Can you predict the future
profitability of customers?', 'Can you improve risk pricing?' and 'Can you detect more fraud?'. We
sketch something out, sell the idea to executives and start developing things. Part of our job is to
sell the benefits of knowledge. We might say to a sales manager that we'd like to look at the
information in her line, using it to achieve an improved hit rate, to provide more business for
insurance agents and enable better profitability performance. A pilot proves the case and she's
convinced. It's all about being one step ahead, having more knowledge than your competitors.

"Customers benefit, too. If you speed up the process of revealing customer information, you can
focus on the insurance proposition instead of customer behaviour. If you can't perform analysis in
a reasonable time you'll never get to the customer proposition. Speeding up the entire process
with SAS means we can offer better products, improved service and a better proposition." Return
on investment generated by this business intelligence team has been so strong that Codan has
established a similar group in its commercial line.

More insights, delivered faster
Summarizing the strengths of SAS®9, Falkesgaard says: "With SAS 8 you solved one problem at
a time. Different technologies were used and various skills were needed in business intelligence.
With SAS®9 there is a very strong technological foundation – all the solutions are built on this
foundation and that makes a huge difference." With its move to SAS®9, Codan has streamlined
and boosted its analysis capabilities, with efficiency gains having a significant impact on the
bottom line. In short, SAS has enabled Codan to realize its twin strategic goals of reducing costs
and improving analytical capabilities. As Falkesgaard concludes, "We've had years of successful
experience with SAS and the new versions build upon this."

Jan Parner adds, "SAS is a partner for Codan, not just a company that sells us software. Over the
last two years I think we've been getting closer and closer. SAS helps us to solve the problems
we face – we like to think of it as a win-win partnership."

SAS®9 EMPOWERS CODAN, A LEADING SCANDINAVIAN INSURER, TO CUT COSTS AND
IMPROVE PROFITABILITY

SAS software provides Codan with fast access to up-to-date business, customer and market
intelligence – and is helping to improve service and reduce costs in a competitive marketplace.

                                        Codan is one of Scandinavia's most successful insurance
                                        companies, with annual revenues of approximately DKK 19.3
                                        billion (€2.6 billion, US$3.3 billion). Denmark's third-largest
              Check out this video to   insurer, it is a publicly listed company with 72 percent of its
              learn more about Codan
              Group and its successes
                                        shares owned by the UK's Royal & SunAlliance. With the sale
              with SAS.                 of its life and pensions business in 2004, the business is now
                                        firmly focused on general insurance products such as auto,
 View Video
  Windows Media Player                  household and accident coverage. Codan scores high in
  Real Player                           customer satisfaction and loyalty; understandably, the group
 (Runtime: 4 min. 2 sec)
                                        wants to maintain this reputation while also controlling costs.

                                        Codan has been using SAS to support its business for 20
                                        years; in 1987 it launched its first data warehouse and, in
 You have questions; our customers
 have answers. Check out this video
                                        2004, took its evolution to the next level with SAS®9. "We've
 Q&A.                                   got one of the best data warehouses in Denmark," says
                    Jan Parner
                                        Johan Agerman, Chief Information Officer, Codan. "Now with
                    Chief Analyst       SAS we are working on getting the information out to the real
                    Codan Group         decision makers. Our relationship with SAS is very good – we
                                        need a partner that comes up with good ideas, not just a
 View Video                             sales pitch."
  Windows Media Player
  Real Player
                                           To build profits, Agerman says Codan has to select the "right
                                           customers and the right risks and price them correctly." Prior
                                           to implementing SAS®9, the business relied on IT experts to
   (Requires Windows Media Player 6.4.7 or comb through 200 data sources to pull out information and
   higher or RealPlayer 6 or higher)
                                           deliver it to employees working on applications, pricing and
                                           claims. This could take up to two days but, as Agerman says,
the marketplace no longer tolerates such a time lag. "In Sweden, Internet sales and Internet claim
settlements are becoming more popular, and we are seeing the same development in Denmark.
It's key to have the right data at the right time. If we can give a customer an answer quicker, we
have a business advantage, a competitive advantage." In short, faster answers provided by SAS
mean better business for Codan.

Leading the way
Codan's SAS data warehouse supports a range of core activities. These include insurance
accounting, customer profitability analysis and scoring, campaign analysis, sales reporting,
product reporting and ad hoc analytics and reporting. In fact, the company uses SAP financial
management and human resource software complemented by a wide range of SAS solutions.
"SAP is a very strict system," explains Jørgen Falkesgaard, Project Manager in Codan's IT
Competence Department. "It ensures data is stored correctly and locked when users access it.
SAS is not so strict, and enables you to get a better overview. We combine data from the SAP
system with data from other sources. SAS enables us to enrich the SAP data with other
information – that's where the benefit lies." However, with demand rising within the business to
make analysis even more powerful and easy-to-use while also cutting costs, it was time to move
to the next level. Codan's requirements were strict, covering issues such as easy access for all
users, confidence in data integrity, archiving and backups, improved performance, results-
oriented reporting and, above all, security and stability.

Moving forward in partnership with SAS
Since Codan had been using SAS successfully for years, Falkesgaard and his team realized it
would be the best route to achieve enhanced data management, better data quality, more
powerful analytics and a host of other improvements. They were convinced the ideal solution was
an upgrade from SAS 8 to SAS®9. Indeed, Codan identified the benefits as including improved
stability and manageability of better-quality data, reduced development time for applications,
easier system maintenance and improved staff productivity. To enable this enhancement, a top-
down commitment from senior managers was critical. At this point, the SAS team became
involved, working closely with Codan to show how SAS ®9 could revolutionize data management,
and save money.

A process began in February 2003 to analyze the existing use of SAS solutions and to explore
the new capabilities SAS®9 could add. In July 2003, Codan became an early adopter. A full range
of SAS software was then installed on the NT servers: SAS Enterprise Guide joined SAS on PC
clients; SAS ETL Studio and Management Console replaced SAS Warehouse Administrator; and
analysis and applications were moved from MVS to the servers. By January 2004 the MVS
system was being upgraded to SAS®9 and user training had started. Testing also began on portal
and reporting products.

Throughout, SAS people focused on the vital task of communicating how Codan's capabilities
would be transformed once the transition was complete. Falkesgaard stresses how important this
communication was in winning management buy-in, summing up the core values that
characterized SAS' involvement as "truth, trust and teamwork." In July 2004 the new SAS
environment was up and running and the transition was smooth. "Technology-wise, we didn't
have any problems worth mentioning," says Falkesgaard, "and we didn't have any problems at all
with the SAS solutions." In just two years, the server environment will have recouped all costs
associated with the move in saved MIPS alone. For Codan, however, the business advantages
and cost savings provided by SAS®9 are the most important benefits.

The benefits are clear
With SAS®9, data and information became readily available on each employee's desktop. With
minimal training, people could become self-sufficient by leveraging information in their daily
decisions – analysts determining pricing and claims, for example – while insights for senior
executives supported strategic decision making. As Falkesgaard explains, "People soon
discovered that the changes we had made brought them benefits in their work through improved
analysis and reporting." SAS®9 interfaces were tailored to varying skill levels and usage patterns,
making it even easier for the widest range of employees to access and use essential information
to help them excel in their day-to-day business.

Falkesgaard adds, "Because SAS®9 is built on industry standards, we could integrate the
business intelligence environment with our production systems and insurance systems.
Customer-facing employees have access to all the information our analysts can retrieve from the
data warehouse, and we route that information directly back to our Web systems." The new
approach provides the basis for improved marketing and customer retention campaigns. "We're
very interested in customer profitability – 'customer scoring' – and that's the main type of
information we started routing back," says Falkesgaard. "We're now moving toward marketing
automation."

Business analytics in action
Like most businesses, Codan needs to understand where, when and how to deploy resources for
the best returns. But the insurance sector faces a unique set of challenges. For example, reduced
income from property portfolios and falling reserves have made it more difficult to cover losses
from fraud and rising claims. Companies must also fine-tune their profitability through better
cross- and up-selling, improved customer retention and more accurate pricing. A key success
factor is the ability to accurately segment the market and then price according to individual
customer risk, a practice known as "individual risk pricing". This enables Codan to get closer to its
customers by capturing all of their attributes that describe potential risk.

"We aim to reveal hidden customer information and then translate that into, for example, reduced
IT spending at an operational level," says Jan Parner, chief analyst in Codan's Personal
Insurance Division and head of its Business Intelligence Department. "We use all the tools in SAS
– it's an integrated part of what we do. If you want to run a campaign you use knowledge from us.
If you want to identify who in the sales force is going to address a particular customer segment,
you get the information from us. If you want to set prices, you use our knowledge. The insights we
provide control how the sales force is used, what type of customers we address - and it's all at a
micro level, almost down to individual customers. It's highly segmented and highly accurate. We
aim to inspire our people to turn their normal decision-making style into management by
knowledge."

The team uses SAS to seek out opportunities buried in vast quantities of data and so support
decision making at all levels. This covers important areas such as customer behaviour and
profitability, as well as determining risk premiums and pricing levels. "Picking the right customers
is the difference between making and losing money," says Parner. "You need to understand
which customers to retain and which you can let go to competitors who are beating your price. If
you have good risk discrimination and therefore highly segmented pricing, you can go below your
competitors on price, if necessary, for the good segments. We're also constantly looking for
opportunities to cross- and up-sell."

By providing Codan with more powerful data management and analytical capabilities, SAS ®9 is
enabling the business to accurately assess and constantly update its customer intelligence,
transforming this into actionable knowledge. The ultimate outcome is a healthier bottom line.

Better business intelligence
"We have the right tools to dig into the real business issues," says Parner. "If we had problems
with the infrastructure – if we couldn't access data, if we didn't have SAS to bring our data to life –
it would be a major hassle. Instead, we can focus on the real intellectual problems and not worry
about the infrastructure." He says this solid SAS 9.1 architecture is what makes savings possible
at Codan, as it enables his team to effectively examine strategic business issues and drive
change at every level. "SAS gives us the ability to focus on the real issues – that's how it saves
us money."

He adds, "Typical management requests come as one-liners such as 'Can you predict the future
profitability of customers?', 'Can you improve risk pricing?' and 'Can you detect more fraud?'. We
sketch something out, sell the idea to executives and start developing things. Part of our job is to
sell the benefits of knowledge. We might say to a sales manager that we'd like to look at the
information in her line, using it to achieve an improved hit rate, to provide more business for
insurance agents and enable better profitability performance. A pilot proves the case and she's
convinced. It's all about being one step ahead, having more knowledge than your competitors.
"Customers benefit, too. If you speed up the process of revealing customer information, you can
focus on the insurance proposition instead of customer behaviour. If you can't perform analysis in
a reasonable time you'll never get to the customer proposition. Speeding up the entire process
with SAS means we can offer better products, improved service and a better proposition." Return
on investment generated by this business intelligence team has been so strong that Codan has
established a similar group in its commercial line.

More insights, delivered faster
Summarizing the strengths of SAS®9, Falkesgaard says: "With SAS 8 you solved one problem at
a time. Different technologies were used and various skills were needed in business intelligence.
With SAS®9 there is a very strong technological foundation – all the solutions are built on this
foundation and that makes a huge difference." With its move to SAS®9, Codan has streamlined
and boosted its analysis capabilities, with efficiency gains having a significant impact on the
bottom line. In short, SAS has enabled Codan to realize its twin strategic goals of reducing costs
and improving analytical capabilities. As Falkesgaard concludes, "We've had years of successful
experience with SAS and the new versions build upon this."

Jan Parner adds, "SAS is a partner for Codan, not just a company that sells us software. Over the
last two years I think we've been getting closer and closer. SAS helps us to solve the problems
we face – we like to think of it as a win-win partnership."

SAS®9 EMPOWERS CODAN, A LEADING SCANDINAVIAN INSURER, TO CUT COSTS AND
IMPROVE PROFITABILITY

SAS software provides Codan with fast access to up-to-date business, customer and market
intelligence – and is helping to improve service and reduce costs in a competitive marketplace.

                                           Codan is one of Scandinavia's most successful insurance
                                           companies, with annual revenues of approximately DKK 19.3
                                           billion (€2.6 billion, US$3.3 billion). Denmark's third-largest
              Check out this video to      insurer, it is a publicly listed company with 72 percent of its
              learn more about Codan
              Group and its successes
                                           shares owned by the UK's Royal & SunAlliance. With the sale
              with SAS.                    of its life and pensions business in 2004, the business is now
                                           firmly focused on general insurance products such as auto,
 View Video
  Windows Media Player                     household and accident coverage. Codan scores high in
  Real Player                              customer satisfaction and loyalty; understandably, the group
 (Runtime: 4 min. 2 sec)
                                           wants to maintain this reputation while also controlling costs.

                                           Codan has been using SAS to support its business for 20
                                           years; in 1987 it launched its first data warehouse and, in
 You have questions; our customers
 have answers. Check out this video
                                           2004, took its evolution to the next level with SAS®9. "We've
 Q&A.                                      got one of the best data warehouses in Denmark," says
                    Jan Parner
                                           Johan Agerman, Chief Information Officer, Codan. "Now with
                    Chief Analyst          SAS we are working on getting the information out to the real
                    Codan Group            decision makers. Our relationship with SAS is very good – we
                                           need a partner that comes up with good ideas, not just a
 View Video                                sales pitch."
  Windows Media Player
  Real Player
                                           To build profits, Agerman says Codan has to select the "right
                                           customers and the right risks and price them correctly." Prior
                                           to implementing SAS®9, the business relied on IT experts to
 (Requires Windows Media Player 6.4.7 or   comb through 200 data sources to pull out information and
 higher or RealPlayer 6 or higher)
                                           deliver it to employees working on applications, pricing and
                                           claims. This could take up to two days but, as Agerman says,
the marketplace no longer tolerates such a time lag. "In Sweden, Internet sales and Internet claim
settlements are becoming more popular, and we are seeing the same development in Denmark.
It's key to have the right data at the right time. If we can give a customer an answer quicker, we
have a business advantage, a competitive advantage." In short, faster answers provided by SAS
mean better business for Codan.

Leading the way
Codan's SAS data warehouse supports a range of core activities. These include insurance
accounting, customer profitability analysis and scoring, campaign analysis, sales reporting,
product reporting and ad hoc analytics and reporting. In fact, the company uses SAP financial
management and human resource software complemented by a wide range of SAS solutions.
"SAP is a very strict system," explains Jørgen Falkesgaard, Project Manager in Codan's IT
Competence Department. "It ensures data is stored correctly and locked when users access it.
SAS is not so strict, and enables you to get a better overview. We combine data from the SAP
system with data from other sources. SAS enables us to enrich the SAP data with other
information – that's where the benefit lies." However, with demand rising within the business to
make analysis even more powerful and easy-to-use while also cutting costs, it was time to move
to the next level. Codan's requirements were strict, covering issues such as easy access for all
users, confidence in data integrity, archiving and backups, improved performance, results-
oriented reporting and, above all, security and stability.

Moving forward in partnership with SAS
Since Codan had been using SAS successfully for years, Falkesgaard and his team realized it
would be the best route to achieve enhanced data management, better data quality, more
powerful analytics and a host of other improvements. They were convinced the ideal solution was
an upgrade from SAS 8 to SAS®9. Indeed, Codan identified the benefits as including improved
stability and manageability of better-quality data, reduced development time for applications,
easier system maintenance and improved staff productivity. To enable this enhancement, a top-
down commitment from senior managers was critical. At this point, the SAS team became
involved, working closely with Codan to show how SAS ®9 could revolutionize data management,
and save money.

A process began in February 2003 to analyze the existing use of SAS solutions and to explore
the new capabilities SAS®9 could add. In July 2003, Codan became an early adopter. A full range
of SAS software was then installed on the NT servers: SAS Enterprise Guide joined SAS on PC
clients; SAS ETL Studio and Management Console replaced SAS Warehouse Administrator; and
analysis and applications were moved from MVS to the servers. By January 2004 the MVS
system was being upgraded to SAS®9 and user training had started. Testing also began on portal
and reporting products.

Throughout, SAS people focused on the vital task of communicating how Codan's capabilities
would be transformed once the transition was complete. Falkesgaard stresses how important this
communication was in winning management buy-in, summing up the core values that
characterized SAS' involvement as "truth, trust and teamwork." In July 2004 the new SAS
environment was up and running and the transition was smooth. "Technology-wise, we didn't
have any problems worth mentioning," says Falkesgaard, "and we didn't have any problems at all
with the SAS solutions." In just two years, the server environment will have recouped all costs
associated with the move in saved MIPS alone. For Codan, however, the business advantages
and cost savings provided by SAS®9 are the most important benefits.

The benefits are clear
With SAS®9, data and information became readily available on each employee's desktop. With
minimal training, people could become self-sufficient by leveraging information in their daily
decisions – analysts determining pricing and claims, for example – while insights for senior
executives supported strategic decision making. As Falkesgaard explains, "People soon
discovered that the changes we had made brought them benefits in their work through improved
analysis and reporting." SAS®9 interfaces were tailored to varying skill levels and usage patterns,
making it even easier for the widest range of employees to access and use essential information
to help them excel in their day-to-day business.

Falkesgaard adds, "Because SAS®9 is built on industry standards, we could integrate the
business intelligence environment with our production systems and insurance systems.
Customer-facing employees have access to all the information our analysts can retrieve from the
data warehouse, and we route that information directly back to our Web systems." The new
approach provides the basis for improved marketing and customer retention campaigns. "We're
very interested in customer profitability – 'customer scoring' – and that's the main type of
information we started routing back," says Falkesgaard. "We're now moving toward marketing
automation."

Business analytics in action
Like most businesses, Codan needs to understand where, when and how to deploy resources for
the best returns. But the insurance sector faces a unique set of challenges. For example, reduced
income from property portfolios and falling reserves have made it more difficult to cover losses
from fraud and rising claims. Companies must also fine-tune their profitability through better
cross- and up-selling, improved customer retention and more accurate pricing. A key success
factor is the ability to accurately segment the market and then price according to individual
customer risk, a practice known as "individual risk pricing". This enables Codan to get closer to its
customers by capturing all of their attributes that describe potential risk.

"We aim to reveal hidden customer information and then translate that into, for example, reduced
IT spending at an operational level," says Jan Parner, chief analyst in Codan's Personal
Insurance Division and head of its Business Intelligence Department. "We use all the tools in SAS
– it's an integrated part of what we do. If you want to run a campaign you use knowledge from us.
If you want to identify who in the sales force is going to address a particular customer segment,
you get the information from us. If you want to set prices, you use our knowledge. The insights we
provide control how the sales force is used, what type of customers we address - and it's all at a
micro level, almost down to individual customers. It's highly segmented and highly accurate. We
aim to inspire our people to turn their normal decision-making style into management by
knowledge."

The team uses SAS to seek out opportunities buried in vast quantities of data and so support
decision making at all levels. This covers important areas such as customer behaviour and
profitability, as well as determining risk premiums and pricing levels. "Picking the right customers
is the difference between making and losing money," says Parner. "You need to understand
which customers to retain and which you can let go to competitors who are beating your price. If
you have good risk discrimination and therefore highly segmented pricing, you can go below your
competitors on price, if necessary, for the good segments. We're also constantly looking for
opportunities to cross- and up-sell."

By providing Codan with more powerful data management and analytical capabilities, SAS ®9 is
enabling the business to accurately assess and constantly update its customer intelligence,
transforming this into actionable knowledge. The ultimate outcome is a healthier bottom line.

Better business intelligence
"We have the right tools to dig into the real business issues," says Parner. "If we had problems
with the infrastructure – if we couldn't access data, if we didn't have SAS to bring our data to life –
it would be a major hassle. Instead, we can focus on the real intellectual problems and not worry
about the infrastructure." He says this solid SAS 9.1 architecture is what makes savings possible
at Codan, as it enables his team to effectively examine strategic business issues and drive
change at every level. "SAS gives us the ability to focus on the real issues – that's how it saves
us money."

He adds, "Typical management requests come as one-liners such as 'Can you predict the future
profitability of customers?', 'Can you improve risk pricing?' and 'Can you detect more fraud?'. We
sketch something out, sell the idea to executives and start developing things. Part of our job is to
sell the benefits of knowledge. We might say to a sales manager that we'd like to look at the
information in her line, using it to achieve an improved hit rate, to provide more business for
insurance agents and enable better profitability performance. A pilot proves the case and she's
convinced. It's all about being one step ahead, having more knowledge than your competitors.

"Customers benefit, too. If you speed up the process of revealing customer information, you can
focus on the insurance proposition instead of customer behaviour. If you can't perform analysis in
a reasonable time you'll never get to the customer proposition. Speeding up the entire process
with SAS means we can offer better products, improved service and a better proposition." Return
on investment generated by this business intelligence team has been so strong that Codan has
established a similar group in its commercial line.

More insights, delivered faster
Summarizing the strengths of SAS®9, Falkesgaard says: "With SAS 8 you solved one problem at
a time. Different technologies were used and various skills were needed in business intelligence.
With SAS®9 there is a very strong technological foundation – all the solutions are built on this
foundation and that makes a huge difference." With its move to SAS®9, Codan has streamlined
and boosted its analysis capabilities, with efficiency gains having a significant impact on the
bottom line. In short, SAS has enabled Codan to realize its twin strategic goals of reducing costs
and improving analytical capabilities. As Falkesgaard concludes, "We've had years of successful
experience with SAS and the new versions build upon this."

Jan Parner adds, "SAS is a partner for Codan, not just a company that sells us software. Over the
last two years I think we've been getting closer and closer. SAS helps us to solve the problems
we face – we like to think of it as a win-win partnership."

A BLUEPRINT FOR SUCCESSFUL MARKETING

    HFC Bank, SAS team up to streamline data mart development



Effective marketing campaigns depend on high-quality analytics and having the right customer
data at your disposal. But companies often have to invest a lot of effort to get that data out of
operational warehouses and into an intelligence architecture specifically designed for analysis
and investigation. By working with SAS to create a new development and configuration
environment, HFC Bank has demonstrated how the process can be automated, allowing the time
and effort of both analysts and their information support staff to be spent more usefully.

HFC Bank helps people to organize their short- and medium-term credit needs so that they can
buy the things they want. The company provides this service to more than 3 million people
throughout the United Kingdom, making it one of the UK's largest pure consumer finance
businesses. Its products and services are available through two nationwide networks of branches
(Household Bank and Beneficial Finance), the Hamilton Direct Bank and a range of brands that
have become household names. It also provides finance through leading retailers such as Courts,
Currys, Dixons, Halfords, Furniture Village and PC World.
In 1994 HFC Bank entered the UK credit card market with the successful launch of The GM Card
from Vauxhall. Today it has more than 1.5 million card holders and 100 card programs, with the
latest being the Internet-enabled marbles™ card. In this challenging multi-channel environment,
effective and consistent marketing is a vitally important ingredient in the company's business
strategy.

SAS advanced analytics are central to the success of these operations. HFC Bank has been
using SAS for the analysis of credit risk since 1994 while the parent company, Household
International Inc., has been a SAS customer since 1982. But over the past four years, HFC Bank
has extended its use of SAS to embrace business activities such as database marketing, credit
policy, management reporting and analysis and information support.

In June 2001 HFC Bank created an Information Infrastructure team to support the company's
marketing department. "We work closely with the IT department, but we are specifically focused
on meeting the business needs of our marketing analysts," says team leader Nikkie Windsor.
"Our job involves looking at the activities of the analysts across the board to find ways to improve
their access to data, increase their efficiency and educate them to optimize their use of SAS. We
have standardized on SAS as our analytic platform, tripling our number of user licenses over the
past two years; so this is the focus of our support activity."

However, this rapid increase in the use of SAS analytics created some short-term pressures and
challenges for Windsor's team. They felt they needed a formalized intelligence architecture to
meet the demands of the analysts. In 2001 the team had invested in SAS/Warehouse
Administrator to manage data extraction, transformation and load (ETL) procedures for the
creation of data marts. "We wanted to structure and accelerate these processes so that we could
support the analysts with very rapid delivery of customized data marts," says Windsor. "So we
called in SAS, and we agreed to work as a development partner to achieve a configuration
management solution within the framework of the Intelligence Architecture Blueprint (IAB)."

Leigh Bates, who led the project for SAS, explains: "IAB is a complete framework for a data
warehouse development environment that combines interlocking software automation tools and
components, best practice methodologies and consulting services. The idea is to get customers
up to speed to maximum effect with the best possible infrastructure to support SAS applications,
based on SAS' unrivalled expertise in data warehousing."

The main objectives of the project were to establish a clear distinction between the development
(Windows) and production (UNIX) environments, minimize manual intervention, automate batch
submission of jobs, automate the production of audit trails and documentation, including job
statistics, and establish a highly robust environment for standardizing and validating data.

The decision to create this new intelligence architecture with IAB was taken at the end of 2002,
though the project did not begin until April 2003, after the delivery of a new development and pre-
production servers. The first phase of the project involved the installation of the IAB infrastructure
and the porting of the first (Prospect) data mart into the new environment. Leigh Bates comments,
"With the implementation of IAB, Nikkie's team had formal development, test and production
environments, full change control and audit trails, and a point-and-click interface to all metadata.
All of the Prospect data mart data and processes were captured in metadata."

"IAB enables us to take a much more structured approach to development, following common
procedures," says Windsor. "This means we can exploit the strengths of SAS/Warehouse
Administrator far more effectively." The creation of new data marts has been significantly
accelerated through the elimination of manual intervention such as recoding and checking, and
automated creation of tables and directories. The solution provides full concurrent access, so
more than one person can work on the same metadata store. Windsor says this is a big plus on
urgent projects.

"Previously you had to change code when moving software between the development and
production environments. The new configuration management solution means that when you
want to promote software you just click a button, and all the migration is taken care of
automatically, eliminating the risk of user errors," says Windsor. "Now, changes and updates can
be made without impacting in any way on the production application."

The Prospect data mart had to be delivered within an extremely tight two-week deadline to enable
the analysts to work on a campaign that had already been scheduled. "SAS pulled out all the
stops, and we met our objectives," says Windsor. Since then, the work on configuring and
promoting new data marts has become progressively easier and can be handled entirely in-
house. Looking forward, Windsor says the next stage will be to develop common utilities that can
be used across all of the data marts, for example to merge the records of customers for more
than one product.

The IAB solution implemented by HFC Bank was the first of its kind in the United Kingdom. IAB
also prefigures features of ETL Studio, part of SAS®9. "We're looking forward to this new version,
and the work we have already done will assist with a smooth transition soon after its release,"
says Windsor.

In the end, though, it is the business benefits that led HFC Bank to IAB. "SAS is the platform of
choice at HFC Bank because of its analytic power. IAB will significantly increase the return on
investment we get from SAS because it enables us to put data marts in place quickly and reliably
to support effective marketing analytics."

								
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