Presentation Transcript

1. AXA IT Ambition

   European Working Council Paris, May 23rd 2013
2. Agenda 1 Strategic context 2 AXA IT Ambition 3 Next steps
3. Strategic context (1/3)Numerous external and internal pressures on the Business and IT The world is changing… Customer expectations: Real-time response, on time insurance, personalized customer services, rewards for loyalty Economic trends: New customers are emerging from developing economies and new competitors are active in developed countries with insurance increasingly becoming a commodity; Business model: Risk assessment and pricing models must evolve to a more individualized risk approach – linked first to the customer; instead of the product Technology trends: In the 1930’s, the cumulative codified knowledge base of the world doubled every 30 years, today it doubles every year 80 to 90% of data is unstructured, i.e. social media, sensors, video, texts, audio, game, email and documents Mastering data about customers is to know them and to better serve them Advances in soft- and hardware requires today an agile integration with legacy systems Cyber / Security threat has significantly increased in the past year AXA Ambition IT – Unions presentation
4. Strategic context (2/3)Numerous external and internal pressures on the Business and IT … so is AXA The challenging business environment has led us to launch in 2010 a robust, global transformation plan called Ambition AXA, focused on 5 themes : 2 Pillars Provide customers with targeted offerings and distinctive customer experience, using digital services and multi-access distribution Empower our people for sustainable outperformance, in a culture of trust and achievement 3 Priorities AXA has adjusted its business strategy by being selective in mature countries And focusing on growth in High Growth Market countries AXA has committed to reduce its expenses by 2015 (€1.7 billion Group savings) and to deliver: A 10% yearly growth of underlying earnings per share An adjusted Return on Equity of 15% by 2015 Group Operating Free Cash Flow of €24 billion in the next 5 years … and IT has its role to play AXA Ambition IT – Unions presentation
5. Strategic context (3/3)Numerous external and internal pressures on the Business and IT Interviews with Stakeholders has shown that they have clear expectations towards the entire IT community of the Group IT is not seen as a major issue today but stakeholders emphasized the importance of IT creating added value for the business IT within AXA is often not perceived as a strategic capability, and its existing Group strategy is not known and/or not understood IT is still maturing and is perceived as relatively costly for the value it provides. The most frequently mentioned improvement areas are project delivery, security levels, sharing and reuse of innovation, efficiency of the selective convergence Group IT is not perceived as adding sufficient value to the business. It is not ensuring the implementation of best practice principles; rather it is often seen as a cost cutting partner or an overhead At times, IT is seen as a bottleneck for the business: ‘we are always waiting for IT to deliver and it does not deliver what we need’ But there is still a high level of confidence and a desire to invest in an IT that will give AXA a long term, efficient and sustainable competitive advantage. AXA Ambition IT – Unions presentation
6. AXA IT Ambition Structured by 5 Pillars Our Ambition for IT is to be a true business differentiator for AXA Enable Business and become a strategic partner Become a real asset and enable long term value creation IT Strategy to have a concrete and positive impact Partnership Digital Agile IT Cost Efficiency Securing AXA 1 2 3 4 5 IT STRATEGY AXA Ambition IT – Unions presentation
7. AXA IT Ambition : First orientations Our main objectives Main orientations Develop consistent approaches towards our Business Partners Evolution of AXA Building Block Governance model based on trust with no overlap of activity People and culture: rely on blue culture to ease change Partnership model will enable trust within the IT community, and between IT and the Business to promote value creation Partnership 1 Deliver a Fast IT capability Build a new way of working with Business & IT teams together,harvesting reusable components Digital Customer centric business transformation with dedicated multi-disciplinary teams 2 Pragmatic Core IT modernization Fast IT & Core IT linked through an Enterprise Integration Platform Configurability through configurable rules-based enablers Treating Data as an asset Enforce simplicity Agile IT providing value added services to enable Fast IT through a modernized and flexible Core IT Agile IT 3 A key contributor to the Ambition AXA is Cost Efficiency and Investment Effectiveness, relying on transparent and variable cost structures Secure existing plans and initiatives: Entities, AXA Tech & AXA GS Apply commodity lifecycle leveraging capabilities of GroupIT and accelerating convergence of IT Building Blocks Enforce IT simplicity for improved efficiency Extend scope of pillar meetings to IT BAU for Entities and AXA GS Cost Efficiency 4 Setup appropriate level of security by fixing the basics Implement continuous security compliance for a complete protection Reduce risk of data leakage Implement end to end disaster recovery across the Group supporting business continuity Securing AXA Securing AXA systems and data to protect AXA customers and brand 5 AXA Ambition IT – Unions presentation
8. Next Steps May : presentation of the AXA IT Ambition to the EWC and the Working Councils of GIE, AGS and AXA Tech France Before summer : approval of the proposed strategy by the Management Committee From mid September : EWC and various working councils per country (France, Belgium, Germany, UK) AXA IT Strategy Potential organizational changes Launch of further organizational changes studies October : AXA IT Strategy Roadshows AXA Ambition IT – Unions presentation