Promoting excellence in social security The Digital Transformation of the Mexican Social Security Institute Igor Rosette Valencia IMSS CIO PRELIMINARY VERSION

Promoting excellence in social security Mexican Healthcare System 2 Private sector and IMSS workers Government workers Tripartite: Federal Government, employers and workers Federal government and workers IMSS ISSSTE, PEMEX, ISSFAM Uninsured population Federal Government, Local Governments, and individual fee depending on payment ability Local Govern- ment Health Services IMSS ISSSTE, PEMEX, SEDENA, SEMAR Seguro Popular Target Population Management Operated by Funding

Promoting excellence in social security Mexican Social Security Institute (IMSS) 3 IMSS is the largest social security institution in Latin America. We provide services and care to 70 million Mexicans. IMSS can be conceptualized around three lines of service: as a tax collector of employers´ contributions, insurer and services provider. 1/ / The resources of this insurance are administered by the Administrators of Retirement Funds (AFORES). 1 Illness and Maternity Insurance Work Risk Insurance Life and Disability Insurance Day Care and Social Insurance Benefits Insurer Retirement and unemployment insurance Family Health Insurance Mandatory Regime Voluntary Regime Tax Collector Medical services Day Care Centers Resorts, Sport Centers and Funeral Parlours Theaters and Training Centers Services provider Annual Collection 2.7% of GDP

Promoting excellence in social security IMSS General Data 4

Promoting excellence in social security Goals and Challenges for IMSS Improve the quality of services Assure IMSS’s financial sustainability 5 The challenge is: How to increase quality and coverage in the services provided in a cost-efficient model? S C A L A B I L I T Y Institutional Goals

Promoting excellence in social security “IMSS Digital” Strategy 6 “IMSS Digital” is a sustained effort on reducing the IMSS’ complexity to its users. “IMSS Digital” creates digital citizens services to expand the offer and quality of services in a cost-effectiveness model. “IMSS Digital” is a citizen centric approach to meet the needs of society, beneficiaries and employers.

Promoting excellence in social security IT Institutional Architecture 7 Face to face services IT procurement in-house based. Bricks and MortarIMSS Digital 1.Digital Citizen Services. 2.IT procurement on-demand.

Promoting excellence in social security million digital events: 7.3 million through Call Center and 18.2 million through Internet. 33 digital citizen services: 20 for beneficiaries 13 for employers (million) Q1 Q2 Q3 Q4 Q1 Q2 8 “IMSS Digital” Outcomes Simplified and Digitalized Services Call Center

Promoting excellence in social security Assign or Track Social Security Number After Before 183 thousand monthly on-site 4 hours 400 thousand monthly on web 10 minutes Employers Fees Electronic Payment (SIPARE) 642 thousand employers 13.6 millon worker – employer fees payment transactions “IMSS Digital” Outcomes

Promoting excellence in social security 10 First Steps a)Web Site transformation. b)Identity unification c)Interoperability improvement. d)Telecommunication network. e)IMSS Cloud.

Promoting excellence in social security Visits First Semester EMPLOYERS 11 a) Web Site Transformation

Promoting excellence in social security 12 b) Identity Unification An unprecedented effort has been made in the homologation and unification of more than 1,200 databases with 33 billion records of employers’, workers’, beneficiaries’ and pensioners’ identities. c) Interoperability Improvement Open value chain with external actors, such as the Tax Administration Service (SAT, or Servicio de Administración Tributaria), the National Population Register (RENAPO, or Registro Nacional de Población), retirement funds managers, banks, among others.

Promoting excellence in social security d) Telecommunication Network Hybrid network, one of a kind, with multiple vendors and technologies. 12 times faster and 82% cheaper per byte.

Promoting excellence in social security e) IMSS Cloud Outsourced Data Center and Disaster Recovery Plan with top-of-the-notch facilities. IT procurement on-demand.

Promoting excellence in social security Key Success Factor 15 The results are significant, however, there is still a long way to go. The digital transformation in such a large and complex institution was not easy. Therefore, it was essential to: Focus IT towards citizens in order to persuaded, involve and be sponsored by the Senior Management and the Institute’s Governance Bodies. Analyze the budget and align it to Digital IMSS objectives in order to relocate inertial expenditures towards and redistribute spending. Move away from self-generated technology consumption to an on-demand service consumption model.

Promoting excellence in social security 16 Thank