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AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 1 Flexibility brings Complexity Simplicity brings Flexibility AG Insurance The iFlex.

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Presentation on theme: "AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 1 Flexibility brings Complexity Simplicity brings Flexibility AG Insurance The iFlex."— Presentation transcript:

1 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 1 Flexibility brings Complexity Simplicity brings Flexibility AG Insurance The iFlex – ELIA Case Study Capita Selecta Software Engineering

2 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 2 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Master complexity before implementing flexibility Flexibility in AG Insurance

3 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 3 AG Insurance

4 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 4 IS AG Insurance in a Nutshell Key Strengths: Flexible systems support product differentiation on a competitive and mature market Highly Integrated systems supporting Non Life products for both brokers and bank channels All externally exposed front-ends are Web Based and considered as Market References Very short time to market Mass Customization through an integrated business rules engine Straight Trough Processing from offer to contract realization and from claims notification to settlement Record Time to any Market, any Distribution iFlex is a major bank channel re-engineering project aiming for a better product flexibility, shorter time to market, lower cost and better customer services (Cross -Channel), facilitate also convergence with broker channel iFlex program is moving from a bank channel platform to a multi-channel platform. From even more Products & Services Innovation to Record Time to any Market Clients Tailored Products and Services through Products flexibility management Model of business concepts and engines For new Cafetaria et Unit linked products : a full web based systems allowing external & very user- friendly access Self–Servicing abilities for the clients (employers & employees) to allow STP Excellence in clients tailored Products and services Common Insurance services to support all business lines Expertise centres to reinforce productivity and quality on Software development (e.g. front-end development) Interfaces with I&O Flexible services supporting lines efficiency Flexible to support Multi Channels & Multi Businesses Fully Integrated with BNP Paribas Branch Systems and Broker Office System Multi–tier service oriented architecture IS Insurance IS Non Life IS Life IS Employee Benefits (incl. Health Care) IS General Systems & Expertise Centers

5 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 5 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Master complexity before implementing flexibility Flexibility in AG Insurance

6 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 6 No flexibility challenge The most flexible system is no system at all A blank page/screen allows everything and anything to be built An architecture once defined restricts the flexibility in some directions Solo programming Anyone can imagine a flexible application and develop it on its own Developing a flexible system from scratch on your own In real life, this is NOT the challenge

7 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 7 The real flexibility challenge Developing A flexible system Time to market Cost efficient Multi-Channel … Integrated with existing systems client databases financial applications accounting systems … With a group of (typically) developers collaboration different teams make a big application in little time take into account the average programmer Using market standard development language/tools risk related (continuity): use proven & supported technology if 6000 people use your application daily (.NET – COBOL – DB2) That works for at least the next 20 years return on investment: development is expensive Developing with a big team a robust application that is flexible and runs for the next 20 years In AG Insurance, this is the REAL challenge

8 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 8 Develop with 50 developers several 100s of modules/routines/components 50? 1500? How can we guarantee Flexibility at this scale?

9 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 9 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Master complexity before implementing flexibility Flexibility in AG Insurance

10 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 10 Case study: iFlex program Business pushes to Xtreme flexibility Modernisation program for distribution of life insurance contracts Goal is to have a very flexible system to easily define new life insurance products Time to market for new product definition is key Give the product definitions entirely in hands of the business

11 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 11 Business drilled down from end- 2-end business process to automatable business rules. Modelling of the process done with Provision Output: set of rules. Figures - Illustration Sous Process Sous Process Activity Task Business IT Business Rules Business Rules Business Rules Business Rules 1:1 E2E Process E2E Process IT took the challenge to build an engine to interprete and execute those rules. Transform rules in automatable and interpretable rules for the engine Build the engine Transfer the offer to the legacy system once contract is signed iFlex flexibility Business requirements will be delivered in form of rules

12 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 12 iFlex engine Once the engine built, business is master of the application Generalized rule concept Very granular Different functions Workflow rules Business logic rules Data rules Front-end behaviour also defined by rules Rule Examples: Controleren Aanvrager.IsInLeven {D} Afleiden Procesaanvraag.KantoorNaam {H} Ophalen Aanvrager.KlantID Large amount of Rules: currently Number of rules: Figures - Illustration Variable location (DB) defined in rules

13 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 13 LISA External Systems RC Rules (IM/BL/OM) Data Rules (RD/SD) LISA DBs: Finalized Contracts Presentation Rules (IM/OM) Horizontal System Services DOC1 Business Rules (IM/BL/OM) Temp DBs: Working Data Rules Front End (NFE) IT Architecture IT put in place a technical architecture around rule engine

14 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 14 iFlex project progress – end years of development of business and IT Engine is in place Testing phase is running Push to delivery in production – deployment in bank agencies foreseen for 1st quarter 2009 Investments until then: approx mandays ~ 10Mio Only a small step to delivery of Xtremely flexible iFlex application

15 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 15 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Master complexity before implementing flexibility Flexibility in AG Insurance

16 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 16 iFlex Performance Response times are incredibly high General application performance -40 times slower than other existing applications rules executed with each user-interaction Symptom: Menu page takes 10 seconds to display a choice of 7 menu-items Lessons learned: - Flexibility generates overhead: designtime vs. runtime decisions - Flexible data interfaces: meta-data interpretation takes overhead - Flexible IO is killing data access performance

17 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 17 iFlex debugging Testing phase is never ending Symptoms: - Increasing stock of bugs - Increasing bug resolution time Facts: Upward trend in graph: backlog increasing no forecast for the end of the tunnel... Due to amount of Urgent + High and priority => little time to fix low+medium defects Heroes are bottlenecks in bugfixing Lessons learned: - Xtreme flexibility generates unlimited possibilities - Flexibility brings complexity - Xtreme flexibility brings Xtreme complexity - Tests are all or nothing: we cannot test subsystems

18 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 18 iFlex integration Assembly to full application fails Building the application only by knowing the very granular rules seems to be impossible Generic interfaces are generating major communication issues Not clear how to use it, what is expected Symptom: We dont succeed in the final integration phase Figures - Illustration T1T2 Lessons learned: - If you dont know the big picture it is extremely difficult to build it - Generic interfaces bring extra complexity

19 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 19 iFlex project progress – may ,5 years of development of business and IT iFlex program stopped All code has been eliminated Assessment of iFlex application failure Restart from scratch Using lessons learned and using best practices The ELIA program is born

20 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 20 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Master complexity before implementing flexibility Flexibility in AG Insurance

21 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 21 Master complexity before implementing flexibility The 4 basics of mastering complexity 1.Divide & Conquer Abstraction level Architecture vs. Design 2.Encapsulation 3.Flexible interfaces 4.Limit flexibility

22 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Divide and Conquer: Abstraction Levels

23 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 23 Mastering complexity : Abstraction Levels

24 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 24 Mastering complexity : Abstraction Levels

25 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Divide and Conquer: Architecture vs. Design Complexity reduced to a smaller scale (only combined with loose coupling this can result in flexibility)

26 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Divide and Conquer: ELIA program Simulation & Underwriting Process Modification Medical Acceptation Financial Referential Products& Pricing Unit & Fund Mgt Technical Support Portfolio Management Information Security Claims & Settlement Service & Information Delivery Core Business Non Core Business OutputsChannels ELIA application Plan Contract& Addendum Garantee &Risk Beneficiary Clauses Premium Plan Withdrawal Plan Party Credit

27 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Encapsulation Protect the different domains Write public services & interfaces Hide internal complexity of the domain Limit the number of entry points! Complexity hidden for service consumers

28 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Encapsulation: ELIA program Some example services of a domain CreateLifeInsuranceContract CalculateContractDuration ProposeContractDuration ProposeStartingDate ProcessContractBasicData CreateUpdateAddendum ProposeBeneficiaryRightsTransfer Portfolio

29 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Flexible interfaces Keep interfaces Strict Clean Small Simple Explicit is better than implicit Do not try to build generic interfaces it generates unnecessary complexity meta-knowledge generates overhead

30 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Flexible interfaces: ELIA program Public interfaces of services are explicitly defined with the least amount of business data needed. CreatePolicyHolder Language Name Firstname Birthdate Sex PersonType Riskprofile RequestorID …

31 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Limit flexibility Flexibility brings complexity Limit it to the domains where you really need it! How long before we master this very flexible tool?

32 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page Limit flexibility: ELIA program Simulation & Underwriting Process Modification Medical Acceptation Products& Pricing Unit & Fund Mgt Portfolio Claims & Settlement Core Business ELIA application In green you find the domains where we really need to implement flexibility

33 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 33 Agenda AG insurance The flexibility challenge Case study: iFlex program – Xtreme flexibility Xtreme consequences of Xtreme flexibility Mastering complexity before implementing flexibility Flexibility in AG Insurance

34 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 34 Flexibility in AG insurance Our best practice to implement flexibility Define the business entities that will pilot your flexibility Define the characteristics of these entities that will influence decisions Parametrize in function of the characteristics using Conditional logic Derivation tables Note: A recent market study done by AG Insurance for rule engine software learns that mature packages on the market currently not offer more than this! Simplicity brings Flexibility

35 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 35 Flexibility in the ELIA Program Parametrization itself is modeled in data model of 25 tables Eg. Product definition is parametrized by 250 characteristics Payment plan: unique premium / recurrent premium DurationType: fixed / until pension InvestmentType: branch21 / branch23 DistributionChannels: BNP Paribas Fortis / Brokers / Internet / … TaxRegime: deductible / non-deductible Commissions: % of commissions

36 AG Insurance | Case Study on Software Flexibility | 01/03/2010 | page 36 ELIA project progress – Today Success story 10 months since restart Intensive architecture follow-up new lines of code in core application Integration with more than 5 existing systems Used in production since last week (pilot bank agency)! Fully available in all BNP Paribas Fortis branches as of next week! 4 products developped 3 – 5 products will be released every 3 months Deployment in broker channel is being prepared ELIA is a flexible application!

37 AG Insurance | Case Study on Software Flexibility | 07/05/2009 | page 37 Questions? Come and build ELIA (or other applications) with us!


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