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

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

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

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

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 And we deliver these services from major centres around the world … in this case our infrastructure service teams total nearly thousand located in 5 centres … 5

Technology / Infrastructure Understanding the business strategy is the key enabler for delivery of successful business processes, applications and infrastructure and to set the innovation and transformation agenda Globally integrated workforce Highly collaborative workplace Maximize value of information Continual pursuit of Operational Process Excellence Business Processes 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 Applications From my perspective I start by looking at the Information Service business from 3 platforms …. First there is the infrastructure …. (comment on driving towards a utility model) Then there is the application space … MAXIMIZE our spend in AD and minimize the spend in AS And finally there are the actual business processes … this is the only reason why IS exists within an FI … to enable business processes .. 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 Technology / Infrastructure

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

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

Requirements need to be articulated in language the business understands to secure the necessary funding Common standards & processes Governance Shared services Efficiency & Risk Management 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 A more efficient IT operation: Lower software development, support, and maintenance costs Increased portability of applications & reuse Improved interoperability and easier system and network management Improved ability to address critical enterprise-wide issues like security Easier upgrade and exchange of system components Better return on existing investment, reduced risk for future investment: Reduced complexity in IT infrastructure Maximum return on investment in existing IT infrastructure The flexibility to make, buy, or out-source IT solutions Reduced risk overall in new investment, and the costs of IT ownership Faster, simpler, and cheaper procurement: Buying decisions are simpler, because the information governing procurement is readily available in a coherent plan. The procurement process is faster - maximizing procurement speed and flexibility without sacrificing architectural coherence. The ability to procure heterogeneous, multi-vendor open systems. 9

Risk/Change Management We take complex projects/programs and translate them into business value explanations Projects/Programs Business Value Agility OPS Excellence Risk/Change Management Active Directory (ID & Access Management) Reduces Complexity Reduces Audit Exposure Global International Network GNO Easy to Expand Asset Optimization Network Redundancy & Improved DR Desktop Virtualization Faster Provisioning Enhanced DR/BCP & Security IT Service Maturity Program Obtain Efficiencies in IT Operations Best Practices Adoption Global Data Center Strategy (Project Owl + Phoenix + Workday) M & A Enabler Technology Optimization Adoption of Standards Enterprise Storage Strategy + Rationalizations Improved Access to Data & Information Decrease Cost of Ownership Reduce Compliance Problems Enterprise Messaging & Collaboration Standardized Email Environment Improved User Productivity Best Practices & Standards 10

Technology is changing at a rapid pace, how we embrace and harmonize the impacts is key to our innovation and transformation agenda “Flat World” Internet Web 2.0 Social Networking Business Evolution Empowered Users Commoditization of IT Ops-IT Convergence Technology Shifts Mobile Technology Cloud Computing Virtualization 11

reductions in IT budgets need for efficiency, effectiveness Understanding what is driving these shifts helps us jointly prioritize our technology agenda to support the business Business Drivers Cultural Drivers Technology Drivers 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

How familiar does this look in your respective organization? 13

Development Product & Process Manulife Financial has adopted a transformation model to execute our application modernization and consolidation strategy New Product Development Operations Efficiency / Straight-through Processing Distribution Accelerated Speed-to-Market Elimination of low-value applications Reduced Application Support Costs I&O Reductions Software Licensing Savings Modern Environments for strategic applications Upgrades / Platform Currency Replatforming, Rehosting, Decommissioning Leveraging Application architectures / tools Metrics Infrastructure Outsourcing Best-in-class processes (ITIL) Global Resourcing Development Product & Process Improvements Application Modernization Consolidation Operational Effectiveness Savings Reinvested Structure of documents: Business Overview Current View Application Environment Financials Workforce Demographics Strategic Initiatives for 2010 – 2012 Future State Key Metrics Workforce Mix Focus was on Application approaches (ie. Replace, Consolidation, Modernization, Outsourcing) required to support the Business MTO and the use of Outsourced resources to facilitate the delivery of the I.S. Strategy. Need to be updated by NOV 15th – Need to Align with MTO’s 14 14

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

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 Use examples – Business Information Needs, Architecture practices, Data Quality Practices, Data Governance 16 16

Title Month Year The Digital Universe Is Growing Faster than Global IT Spending & Staffing Source: IDC. 70% 85% Of the digital universe will be created by individuals Of the digital universe will be the responsibility of organizations to manage and secure CAGR (2008 thru 2012) Digital Universe WW IT Spending WW IT Staffing 51% 2% 1% But over the same time period, the next four years, while the digital universe grows by a factor of five, total IT spending worldwide will only grow by a factor of 1.2, and IT staffing by a factor of 1.1. Source: IDC Digital Universe White Paper, May 2010 17

Better management of our data growth and storage requirements is also a key focus area for us 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 Can you afford petabyte scale … and beyond ? Cost of Storage Not a long time Big Data Explosion – very large digital assets (i.e. large files, traditional office worker files growing, video, etc) – fyi - TNT – “The Next Thing” –the next unknown Exponential – don’t underestimate what exponential growth really means --- need to store more for less with compression, deduplicating backup AND live data so only unique data is stored….thin provisioning such that only used storage is consumed (no more allocation inefficiencies!) Instant Access to larger and smaller Data sets – business users now expect rapid access to information contained in very large data sets, i.e. BI and DW. Example being marketing users expecting instant reporting from a BI database containing a new marketing program with larger disk drives, the access to data density ratio worsens – drives aren’t getting faster with increase capacity (can still only do <200iops per spindle), yet many applications i/o intense such that spindle performance becoming an issue --- SSD or Flash provides 100x performance 100k iops --- so system design is evolving to larger L3 cache and bringing performance storage to Flash/SSD as Tier 0 S torage as a Service – aligned with IT as a Service, business users will expect to directly consume storage assets in a self-provisioned manner with little to no involvement from IT and they will expect these resources to be: -high performance -on demand and elastic (grow and shrink) -inexpensive -always on -ubiquitous access 18 18

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 19

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. Use examples – Business Information Needs, Architecture practices, Data Quality Practices, Data Governance Technology Enablers Intranet, Internet, Social Networks, Cloud Computing, Mobile Devices, Messaging, Web/Video Conferencing, Unified Communications …. 20 20

Questions