Data Managements Dirty Little Secret by ghkgkyyt

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									Data Management’s
Dirty Little Secret
Business Intelligence Woes
Leave Insurers Poorly
Positioned to Compete

T
     he scene: The boardroom of            with the source data itself, in          the organization including
     a major insurance company.            addition to the way that data is         call centers, Web portals and
     The situation: New sales              processed, analyzed and reported to      the underwriting desk.”
                                           management.”                               Solving business intelligence
are flat. The latest product
                                                                                    problems takes more than
launch was disappointing, and              Reliable, Relevant Data                  just an investment in a new
producers are complaining that                Armed with good business              tool. In fact, many companies
competitors already have an                intelligence, insurance companies        are deluged with tools, often
edge on the Web.                           can do a better job of introducing       using different ones for
   The chief marketing officer says he     products that appeal to the              various lines of business.
needs better customer and producer         market, and they can fine-tune
data to offer more segmented               those products based on customer,        Crossing
products targeted to the right             producer and competitor analytics.       Organizational
distribution channels. The problem         Business intelligence also supports      Boundaries
is the company uses a variety of data      the automation of key processes               CIOs typically must work
management tools that source data          such as underwriting decisions, and         with multiple business units and
from a variety of heterogeneous            it improves management’s ability to         vendors to build a true master data
systems, and getting a consolidated        monitor business performance.               management system.
view is no easy task.                         “The key to successful business            “The CIO can’t do it alone, and
   All eyes turn to the                                                                      business unit managers are
CIO. Sound familiar?                                                                         often reluctant to move to a
Scenes like this are                                   “Many corporations are                new analytical environment
playing out in the                                     facing a data quality crisis.         that crosses organizational
boardrooms of large                                    It’s a dirty little secret            boundaries,” Boltin noted.
corporations around                                    that nobody wants to talk             “It’s essential to have a good
the globe. And in most                                 about.”                               change management plan
situations, companies                                             Jerry Boltin,              to demonstrate the benefits
are confronting the                                               Business Intelligence      of the new program. The
fact that they lack the                                           Practice Director,         days of ‘my data’ and ‘your
business intelligence                                             CSC                        data’ are gone. Companies
needed for an overall                                                                        must rethink their basic
view of their enterprise.                  intelligence initiatives is getting governance structure to ensure
   “Many corporations are facing a         reliable, relevant data in a someone is always accountable for
data quality crisis. It’s a dirty little   configurable format to the people data management at the enterprise
secret that nobody wants to talk           who need it on the frequency that level.”
about,” said Jerry Boltin, director of     they need it – from real-time to              Data management is especially
CSC’s Business Intelligence Practice.      established cycles depending upon challenging for insurance companies.
“Making business decisions without         the decision context and use,” Boltin Data sources are typically siloed like
accurate data can cause massive            added. “It takes the IT department the organization itself. Departmental
disruptions, and the issue for many        out of the critical path and allows tactics on data warehousing over the
companies begins with a problem            for real-time decisioning throughout years have left the organizational
                                                                                                        ADVERTORIAL



                                           About CSC
                                           About CSC
                                           CSC, one of the world’s leading IT services companies,
                                           provides master data management services to a wide range of
                                           organizations. Unlike other consulting firms, however, CSC has
                                           more than three decades of experience in the life and annuities
                                           and property and casualty markets. An estimated 70 million
                                           U.S. policies run on CSC’s systems, giving CSC deep insight into
                                           insurance data requirements from both line-of-business and
                                           enterprise perspectives.




                                        at the enterprise level and create a     campaigns. Distribution metrics help
                                        roadmap for implementing change.         tailor campaigns based on specific
                                        A shared services approach can           channel performance variables.
                                        help pool resources and tools               • Develop a dashboard of
                                        and ensure data management               corporate performance metrics.
                                        processes are standardized across        The CEOs of mid-tier companies and
                                        the organization. Companies can          presidents of market segments of
                                        unlock data currently stored in          larger carriers will be better positioned
                                        multiple silos and get a more cost-      to make more productive capital
                                        effective approach to technology         allocation decisions with an easy-
                                        consolidation and modernization.         to-read dashboard consolidating
                                           • Cleanse and reconcile data          data related to new business, sales
                                        from multiple sources. A recent          backlogs, investments, claims
data fragmented, built with differing   report by the Data Warehousing           and other liabilities and operating
standards and overly focused on         Institute found that 83 percent of       expenses.
narrow requirements.                    organizations suffer from bad data          “Insurers are facing tremendous
   “Large-scale business intelligence   because of inaccurate reporting,         pressure to grow top-line revenues,
programs require specialized skills     internal disagreements over              and they need more than business
most companies don’t have in house,     which data to use and incorrect          instincts — they need balanced,
and building up that competency         definitions that render the data         factual insight based on reliable
can be time-consuming and               unusable. In addition to reconciling     analytics and data,” added CSC’s
expensive,” Boltin said. “Not only      these differences, companies             Boltin. “A growing number of
do they need to know where to put       should integrate data sources such       senior executives are centralizing
their investments but also the right    as ERP, legacy and specialized           the analytics function to take full
metrics to gather. Underlying this      applications. The coordinated use        advantage of their available data —
is the need for better data security,   of data warehouses, data marts,          and improve their ability to compete
which is becoming increasingly          operational data stores and master       in the marketplace.”
complex to manage.”                     data repositories will ensure reliable
                                        and consistent data definitions, no
The Master Data                         matter what the source.                  For more information about
Management Approach                        • Gain greater insight into           CSC’s business intelligence
  W o n d e r i n g i f master data     customer and distribution                and master data management
management is right for your            trends. The right set of metrics         services, call 800.345.7672 or
company? Bert Lasley, director of       can equip insurers with better           visit www.csc.com/insuranceBI.
CSC’s Data Transformation Practice,     information for finding the
offers the following advice to          right customer, determining the
insurers:                               customer’s propensity to buy or
  • Create a shared services            simply identifying customer segment
framework. Organizations must           characteristics that would best
define who’s responsible for data       respond to specific products and

								
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