Managing Manulife’s Innovation and Transformation Agenda

1. Managing Manulife’s Innovation and Transformation Agenda Harry Pickett SVP and Chief Technology Officer Global Information Services January 31, 2011

2. AGENDA • Manulife “Who are we?” • Service Delivery Complexity • Global Information Services Strategy Overview • Role of Global IS Governance • Business Value Creation through Enterprise Architecture • Information Technology Landscape Changes and Drivers • Three Current Case Challenges Underway • Q&A

3. Manulife is a leading Canadian-based Global Financial Services Group • Established in 1887 • A Federated Business Model that operates in Canada and Asia through Manulife Financial and in the United States primarily through John Hancock • Serving millions of customers in 22 countries and territories around the world • More than 20,000 employees and thousands of distribution partners • Receiver of numerous awards and recognition for our customer service, our products, our innovation and people Check us out at www.manulife.com

4. We deliver our services through a complex global service delivery model • Manulife’s Infrastructure and Operations data centre services are managed by over 900 employees in 6 major centers • …with services delivered by 5 major vendors from 10 core centers • Manulife’s Applications Services are managed by 1,865 employees in 6 major centers • …with development and support services delivered by over 11 vendors in 12 centers • …with voice and data services delivered by 4 strategic telecommunications carriers

5. Our goal is to deliver an exceptional client experience at the lowest possible cost = Manulife I/O Sites = Vendor I/O Sites = Manulife Applications Centres = Vendor Application Centres = Voice & Data Services

6. Understanding the business strategy is the key enabler for delivery of successful business processes, applications and infrastructureand to set the innovation and transformation agenda Business Processes Applications Technology / Infrastructure • Globally integrated workforce • Highly collaborative workplace • Maximize value of information • Continual pursuit of Operational Process Excellence • Global application services delivery model • “State of the art “ standard tools & methods across all divisions • Leverage competencies from across the company • Examples of world class applications in production • Tight alignment of operations and application management • Global infrastructure service delivery model • Highly robust and secure • Multi-vendor delivery of “utility-like” services • Seamless end user connectivity • Consistent Service Management discipline across the enterprise

7. We use our Global IS Governance Structure to set the priorities, execute the staff work and sanction decisions Global Information Services Leadership Committee (GISLC) (Meets Every Four Months) Architecture Review Board (Meets Monthly) Global Information Services Executive Committee (GISEC) (Meets Monthly) 4 Global Information Services Governance Councils (Meets Monthly) 12 Standing Working Groups (Meets Bi-Weekly) Task Forces (Meets as Required)

8. We run the Gauntlet in most aspects of our innovation and transformation journey Driving the necessary changes has not been easy due to the Federated nature of our organization

9. Requirements need to be articulated in language the business understands to secure the necessary funding Enterprise Architecture Outcomes • Agility and Faster Time to Market • Faster time to market, business agility, better preparedness for acquisitions & mergers integration, better visibility through business process optimization for critical applications • Increased IT Operational Excellence • Obtain efficiencies, reduce complexity, cost reduction, consolidation, rationalization and intelligent integration. Optimization of technology and applications architecture. architect holistic business and technology solutions, leverage shared services, reuse common interfaces and processes. • Predictable Risk and Business Change Management • Reducing the risk of making business application and IT infrastructure changes, by adopting best practices, standards and building a map of application dependencies

10. We take complex projects/programs and translate them into business value explanations

11. Technology is changing at a rapid pace, how we embrace and harmonize the impacts is key to our innovation and transformation agenda 11

12. Understanding what is driving these shifts helps us jointly prioritize our technology agenda to support the business • economic downturn • reductions in IT budgets • need for efficiency, effectiveness • retirement risk • undocumented legacy knowledge • transition from Gen X to Gen Y • rich mobile devices • cloud computing • advancements in architectures and • associated development languages

13. How familiar does this look in your respective organization?

14. Manulife Financial has adopted a transformation model to execute our application modernization and consolidation strategy SavingsReinvested DevelopmentProduct & Process Improvements • New Product Development • Operations Efficiency / Straight-through Processing • Distribution • Accelerated Speed-to-Market Application Modernization • Modern Environments for strategic applications • Upgrades / Platform Currency • Replatforming, Rehosting, Decommissioning • Leveraging Application architectures / tools Application Consolidation • Elimination of low-value applications • Reduced Application Support Costs • I&O Reductions • Software Licensing Savings Operational Effectiveness • Metrics • Infrastructure Outsourcing • Best-in-class processes (ITIL) • Global Resourcing

15. Business analytics and intelligence is a hot topic on our business and IS strategic agenda, tackling this issue is a complex task • Immature Data Governance • Struggling to meet Business Information Needs • Mixed levels of business engagement in Data Management • Limited line of sight to Data Asset Inventory • Data Management Efficiency Opportunities • Various Levels of Data Management Understanding • Inconsistent or Informal Data Management Practices

16. Establishment of the foundational pre-requisites is how we are approaching our data management efforts • Business Information Needs • More formal understanding of the business strategic information needs is required • Need to help the business transition from Data Hunter to Information Consumer • Current Capabilities • Business and IT are engaged and understand the need for better data management practices • Need to better understand their current capabilities (roles, responsibilities, practices and disciplines) • Education and Communication • General awareness of Data Management concepts and best practices • Teams are looking for more education and awareness of DM efforts in the Business and IT • Roles and Responsibilities • Several efforts are aligned with industry best practices • Need to be reinforced with sustainable data management capabilities • Leverage and Governance • Many common challenges and opportunities to drive increase value and reduce costs • Need formalized practices supported by a common data governance model 16

17. The Digital Universe Is Growing Faster than Global IT Spending & Staffing CAGR (2008 thru 2012) 51% 70% 85% 2% 1% Of the digital universe will be created by individuals Of the digital universe willbe the responsibility of organizations to manageand secure DigitalUniverse WW ITSpending WW ITStaffing Source: IDC Digital Universe White Paper, May 2010 Source: IDC.

18. Better management of our data growth and storage requirements is also a key focus area for us Can you afford petabyte scale … and beyond ? Cost of Storage • Explosion of multiple new data streams • Virtualization / Cloud / Social Media / Digital Everything • Next Gen Business Intelligence and TNT – The Next Thing • Growth demands storing more for less • Deduplication, compression and thin provisioning • Converged connectivity and “acceleration” • “Blurring” of Memory and “Storage” uses • Widening system and HDD performance gap • Flash memory for extended cache and high performance storage tiers (solid state drives) • Smarter data placement – blocks and files • Storage as a Service – increased SLA demand • Availability/Recoverability – always on Business agility for structured and unstructured data • Security, Encryption, Compliance and Governance built in and leveraged where required Not a long time 18

19. We have adopted an Enterprise Storage Strategy to better manage our growth and contain cost • Centralize & consolidate to leveraged economies of scale • SAN and NAS to leverage larger storage pools where appropriate • Policy based automation to reduce operational efforts • Storage tiers to contain costs of growth • Non-prod vs Prod split into mission critical vs non • Align storage arrays to business SLA – enterprise vs mid-range • Thin provisioning and data dedupe • Tier Data Protection to remove contention & enable future DR • Archive to contain future growth – email & files • Best of Breed while leveraging past investments as much as possible • Dual vendor strategy • Asset lifecycle strategy to reduce capital expenditures yet align procurement timeframes

20. The emerging challenge, collaboration and communication is now centered around people and is device agnostic • Business Driver • Seamless and secure access to the people and information you need, whenever and wherever you are. • Technology Enablers • Intranet, Internet, Social Networks, Cloud Computing, Mobile Devices, Messaging, Web/Video Conferencing, Unified Communications …. 20

21. Questions