XCHANGING: PROVIDER OF ENABLED BUSINESS PROCESSING. Xchanging Investor Seminar

Transcription

1 XCHANGING: PROVIDER OF TECHNOLOGY- ENABLED BUSINESS PROCESSING SERVICES Xchanging Investor Seminar 15 November 2013

2 AGENDA 1 9:00 Strategic direction: Trends in the industry; why technology-enablement? Ken Lever 2 9:15 MM4 Stephen Trainor 3 9:40 Netsett, X-presso; technology for insurance Jim Sadler 4 10:05 Emerging Technologies: Big Communities Murali Nadarajah 10:30 Q&A 10:50 BREAK 5 11:10 Xuber Adrian Morgan 6 11:35 Unlocking Growth Stephen Scott 7 12:00 Business Model & Change Programme David Bauernfeind 12:25 Q&A 8 12:45 Roundup comments Ken Lever 13:35 LUNCH 9 Speaker Biographies

3 INTRODUCTION AND STRATEGIC CONTEXT Ken Lever

4 THE TIME LINE - MAKING IT HAPPEN Stop the bleeding Get fit again Compete to win Going for Gold Stepping up the pace TODAY 4 XCHANGING INVESTOR SEMINAR 2013

5 MAJOR TRENDS BUSINESS PROCESSING MARKET Customer expectations Supply Industry & Customer Insight Service Platform Technology Impact Our strategy Technology Enabled Business Processing Innovation Capabilities 5 XCHANGING INVESTOR SEMINAR 2013

6 CAPABILITIES c PEOPLE TECHNOLOGY SERVICES LLOYD S & LONDON MARKET COMPETENCY CENTRES XCHANGING ITALY 6 XCHANGING INVESTOR SEMINAR 2013

7 7 XCHANGING INVESTOR SEMINAR 2013

8 AGENDA MM4 Stephen Trainor Managing Director, EMEA, Procurement Netsett, X-presso: Technology for insurance Jim Sadler Chief Information Officer Emerging g Technologies: Big Communities Murali Nadarajah CEO, Xchanging Malaysia 8 XCHANGING INVESTOR SEMINAR 2013

9 AGENDA Xuber Adrian Morgan Head of Xuber Focusing our service offering Stephen Scott Executive Director, Sales & Marketing Business Model & Change Programme David Bauernfeind Chief Financial Officer Roundup Comments Ken Lever Chief Executive 9 XCHANGING INVESTOR SEMINAR 2013

10 MARKETMAKER4: BROADENING OUR PROCUREMENT OFFERINGS Stephen Trainor

11 XCHANGING PROCUREMENT SERVICES ADDS MM4 SaaS based e-sourcing technology expands existing Procurement offering Accelerates Procurement technology strategy Creates synergies, benefitting both MM4 and Xchanging Well differentiated: t d easier to use; market intelligence; supplier vetting; dedicated di d online support Builds presence in significant US market 11 XCHANGING INVESTOR SEMINAR 2013

12 XCHANGING PROCUREMENT SERVICES Full S2P service capability High specialist category management capability Strong brand awareness No3 Procurement Service provider globally Everest ranking improvement (October 2013) 12 XCHANGING INVESTOR SEMINAR 2013

13 MARKETMAKER4 ACQUISITION Acquired 20 September 2013 e-sourcing Software-as-a-Service provider Headquartered in Chicago Subscription fee model e-sourcing market estimated at US$1.4bn p.a. globally Three founding shareholding directors remain with the business Bolt-on technology acquisition in line with Group strategy International customer base of c.35 on acquisition and 8 new customers added since then 13 XCHANGING INVESTOR SEMINAR 2013

14 INDUSTRY AGNOSTIC 14 XCHANGING INVESTOR SEMINAR 2013

15 GETTING STARTED - MM4 DASHBOARD Marketmaking 24/7 online support e-sourcing Suite Company Intelligence Market Insights 15 XCHANGING INVESTOR SEMINAR 2013

16 EXPANDED SERVICE OFFERING Xchanging Procurement Services pre-mm4 acquisition MANAGING INDIRECT SPEND MM4 MANAGING DIRECT AND INDIRECT SPEND Food retailer Car mechanic Cosmetics manufacturer 16 XCHANGING INVESTOR SEMINAR 2013

17 DIFFERENTIATION CUSTOMER NEEDS SUPPLIER BIDS Market intelligence and supplier vetting Supplier identification Event management Evaluation/decision 17 XCHANGING INVESTOR SEMINAR 2013

18 ENHANCED VALUE BUSINESS INTELLIGENCE MARKET INSIGHTS MARKETMAKING E SOURCING TOOLS 18 XCHANGING INVESTOR SEMINAR 2013

19 MAKING CONTACT SETTING UP Client engages MM4 through the multi-lingual marketmaking/ snap-engage feature Kristina: Hi, I m your online assistant. How can I help you? Me: Hi, I would like to run an event on transportation. Can you please help me? Kristina: Hi! I d be more than happy to assist you with that. Can I give you a call so that we can discuss all of the details? 19 XCHANGING INVESTOR SEMINAR 2013

20 RESEARCHING INDICES Client researches commodity oil prices using market insights module Client may also utilise MM4 s customised market insight reports for more detailed information on trends, current conditions, and cross-country comparisons 20 XCHANGING INVESTOR SEMINAR 2013

21 GATHERING SUPPLIER INTELLIGENCE Initiate a search on the supply base for transport services through the company intelligence section 21 XCHANGING INVESTOR SEMINAR 2013

22 SYNERGIES Supplier Contract t Relationship Management Management Service Spend & Savings Management e-sourcing 22 XCHANGING INVESTOR SEMINAR 2013

23 GROWTH OPPORTUNITY...MM4 is easier to use 23 XCHANGING INVESTOR SEMINAR 2013

24 GO TO MARKET STRATEGY Enhance MM4 penetration through Xchanging marketing & sales investment MM4 drives sales of existing procurement offering Cross sell to entire existing Xchanging customer base Upselling from MM4 to new customers MM4 low cost entry to new markets, e.g. Australia, Singapore, China, M. East and Latin America 24 XCHANGING INVESTOR SEMINAR 2013

25 ACCELERATING TECHNOLOGY STRATEGY Spend Analytics esourcing eprocurement & Marketplace Contract Life Management Spend and Savings Management Supplier Relationship Management Integration & workflow Customer Relationship Management Big Data, benchmarking, MI, BI Procurement Portal Internal portal - Springboard Vertical Category Managed Services 25 XCHANGING INVESTOR SEMINAR 2013

26 ADDING MM4 DRIVES NEW BUSINESS OPPORTUNITIES Xchanging Full S2P service capability High specialist category management capability Strong brand awareness No3 Procurement Service MM4 esourcing software Market making capability Business intelligence and market data E delivery solution provider globally Accelerated savings delivery for existing customers Drives S2P technology integration Significant retained knowledge bank 26 XCHANGING INVESTOR SEMINAR 2013

27 ADDING MM4 DRIVES NEW BUSINESS OPPORTUNITIES Expands procurement offering and drives growth Creates upselling opportunity Builds stickiness between Xchanging and the customer Builds US presence 27 XCHANGING INVESTOR SEMINAR 2013

28 NETSETT, X-PRESSO; TECHNOLOGY FOR INSURANCE Jim Sadler

29 OUR INSURANCE MARKET TECHNOLOGY SOLUTIONS Disrupting Our innovation and technology has, over 10 years, been disrupting and modernising the London Insurance Market. Our London market platforms are the most sophisticated of their kind in the world. Global We are expanding and growing our business by taking what we do well in London to other insurance markets around the world. Communities All our market technology solutions are built around community sales. This makes them very sticky once a critical mass is established which drives down the threat of competition. We are building new solutions and communities enabled by the latest mobile computing 29 XCHANGING INVESTOR SEMINAR 2013

30 THE LONDON INSURANCE MARKET Here s how it works % % % Premiums Claims Client Broker Insurer Insurer Insurer Insurer % % % Insurer =100% Insurer Annual transactions = [6 x #policies] + [6 x #claims] 30 XCHANGING INVESTOR SEMINAR 2013

31 1. DISRUPTING THROUGH INNOVATION Modernising the London market s back-office London Market Platform rket ission Mar Subm User Interface Message Management Workflow Ap pplication Policy Administration Settlement Claim Administration Document Management Data Operational Data Analytical Data 33million documents 31 XCHANGING INVESTOR SEMINAR million hits per day >8000 active users 54Bn per year

32 1. DISRUPTING THROUGH INNOVATION Modernising the London market s back-office ~270 Firms trading Claims paid 6 x faster 32 XCHANGING INVESTOR SEMINAR 2013

33 1. DISRUPTING THROUGH INNOVATION The London Insurance Market Platforms Market Submissio on User Interface Message Management Workflow Appl lication Policy Administration Settlement Claim Administration Document Management Data Operational Data Analytical Data Disrupting: Our innovation and technology has, over 10 years, been disrupting and modernising the London Insurance Market. Our London market platforms are the most sophisticated of their kind in the world. 33 XCHANGING INVESTOR SEMINAR 2013

34 2. TAKING LONDON GLOBAL n Market Submissio User Interface Message Management Workflow Applic cation Policy Administration Settlement Claim Administration Document Management Data Operational Data Analytical Data London Market Platform 34 XCHANGING INVESTOR SEMINAR 2013

35 2. TAKING LONDON GLOBAL 50% Efficiency Savings Zero Unmatched Cash/Balances 80% Capital Efficiency from Netting COO CFO / CRO Treasurer Operational Efficiency Reduced costs Improved quality Accelerated reconciliation process Straight Through Processing Enhanced process efficiency Transparency & Control Regulatory competence Transparency of contract and market performance Visibility ibilit and control of future payables/receivables Reduced Credit Risk 54Bn per year traded 11Bn per year moved Capital a Efficiency cy Enhanced Cash flow and liquidity management Reduced cost of capital /contingent t liquidity idit Better control, transparency cost & execution of FX Inter-connected t benefit case across Operations, Risk, Finance and Treasury 35 XCHANGING INVESTOR SEMINAR 2013

36 2. TAKING LONDON GLOBAL Broker Broker Settlement Insurer Insurer Broker Insurer Broker Insurer Broker Insurer 36 XCHANGING INVESTOR SEMINAR 2013

37 2. TAKING LONDON GLOBAL Broker Broker Insurer Insurer Broker Insurer Broker Insurer Broker Insurer 37 XCHANGING INVESTOR SEMINAR 2013

38 2. TAKING LONDON GLOBAL Broker Broker Insurer Insurer Broker Insurer Broker Insurer Broker Insurer 38 XCHANGING INVESTOR SEMINAR 2013 New

39 2. TAKING LONDON GLOBAL Global: We are expanding and growing our business by taking what we do well in London to other insurance markets around the world. 39 XCHANGING INVESTOR SEMINAR 2013

40 3. CREATING A NEW COMMUNITY 40 XCHANGING INVESTOR SEMINAR 2013

41 3. CREATING A NEW COMMUNITY 41 XCHANGING INVESTOR SEMINAR 2013

42 3. CREATING A NEW COMMUNITY 42 XCHANGING INVESTOR SEMINAR 2013

43 3. CREATING A NEW COMMUNITY 43 XCHANGING INVESTOR SEMINAR 2013

44 3. CREATING A NEW COMMUNITY 44 XCHANGING INVESTOR SEMINAR 2013

45 3. CREATING A NEW COMMUNITY 45 XCHANGING INVESTOR SEMINAR 2013

46 3. CREATING A NEW COMMUNITY Claims Agreement Aromo Communities: We are building new solutions and communities enabled by the latest mobile computing 46 XCHANGING INVESTOR SEMINAR 2013

47 OUR INSURANCE TECHNOLOGY SOLUTIONS All our market technology solutions are built around community sales. This makes them very sticky once a critical mass is established which drives down the threat of competition. ~270 Firms trading TAKING LONDON GLOBAL We are expanding and growing our business by taking what we do well in London to other insurance markets around the world. DISRUPTING AND INNOVATING Our innovation and technology has, over 10 years, been disrupting and modernising the London Insurance Market. Our London market platforms are the most sophisticated of their kind in the world. NEW VIRTUAL COMMUNITY We are building new solutions and communities enabled by the latest mobile computing 47 XCHANGING INVESTOR SEMINAR 2013

48 EMERGING TECHNOLOGIES: BIG COMMUNITIES Murali Nadarajah

49 49 XCHANGING INVESTOR SEMINAR 2013 V

50 OVERVIEW LEARNING PLATFORM School in the Cloud Classroom of One TICKET PLATFORM First Cloud-based Platform Cost-offloading INTERNET OF THINGS Emerging Technology Sector Specific BIG COMMUNITY CLOUD BASED CROWD SOURCING CURATION RATING USER FEEDBACK 50 XCHANGING INVESTOR SEMINAR 2013

51 COMPETITIVE ENVIRONMENT LOW LEMENT ESS ENABL PROCE HIGH LOW HIGH TECHNOLOGY ENABLEMENT 51 XCHANGING INVESTOR SEMINAR 2013

52 LEARNING PLATFORM MOE School in the Cloud CLASSROOM VIRTUAL IMPLEMENTATION & MANAGED SERVICES INDUSTRIALIZED TEACHING ABILITY BASED LEARNING 52 XCHANGING INVESTOR SEMINAR 2013

53 LEARNING PLATFORM Curated Content BIG COMMUNITY FREE CONTENT CROWDSOURCED CURATION RATING USER FEEDBACK COST OFFLOADING Enable teachers to Empower students t to Parents can access create content rate the content and and contribute to provide feedback content + + Cost More parental engagement and monitoring offloading using content developed through crowdsourcing 53 XCHANGING INVESTOR SEMINAR 2013

54 LEARNING PLATFORM Competitive Landscape and USPs COMPETITORS XCHANGING USP Point solution providers Complete end-to-end Cloud Solution Proprietary high cost Open source software and free content Small implementations 1Bestarinet - World s largest project 54 XCHANGING INVESTOR SEMINAR 2013

55 LEARNING PLATFORM Market Opportunity: Focus on emerging economies India, SEA, Caribbean World-wide Market Opportunity size in US$ billio on USD b Market USD 73.8 b Source: Markets and Markets XCHANGING INVESTOR SEMINAR 2013

56 TICKETING PLATFORM Autofare Collection System MPOS WEB PORTAL MOBILE PORTAL SELF SERVICE KIOSK PASSENGER SERVICE MACHINE 56 XCHANGING INVESTOR SEMINAR 2013

57 TICKETING PLATFORM Competitive Landscape and USPs COMPETITORS XCHANGING USP In-station equipment Cloud-based virtual appliances Contactless tl cards (e.g. oyster card) and paper tickets Virtual tickets via phones Anonymous commuters Monetizable community 57 XCHANGING INVESTOR SEMINAR 2013

58 TICKETING PLATFORM Market Opportunity: Value-added Sales World-wide Market Opportunity Annual ridership in billio ons USD 47.2 b USD 60.2 b Source: Markets and Markets XCHANGING INVESTOR SEMINAR 2013

59 INTERNET OF THINGS SMART METERING CONNECTED CAR MACHINE TO MACHINE INTERACTION Diagnostic Statistics Remote Access Location Monitoring INTELLIGENT BUILDING 59 XCHANGING INVESTOR SEMINAR 2013

60 CONCLUSION ECONOMIES OF SCALE 1 THROUGH SHARED RESOURCES 2 COST-OFFLOADING FROM CROWD-SOURCING HIGH 3 IMPROVED QUALITY THROUGH CURATION PROCES SS ENABLEMEN NT 4 5 CREATING ADDITIONAL REVENUE STREAMS FOR OUR CUSTOMERS GENERATING INTELLECTUAL PROPERTY LOW LOW HIGH TECHNOLOGY ENABLEMENT 60 XCHANGING INVESTOR SEMINAR 2013

61 XUBER Adrian Morgan

62

63 Xuber Headlines Xuber is based on a firm foundation Unique, new technology, global offering. The market is replacing legacy it s the right time for Xuber Limited competition today Xuber underpins an organisations business Global capability and partner ecosystem

64 The Insurance Industry Xuber provides core processing software to Non-Life Commercial Segment Life Non-Life Commercial Insurance Personal Insurance

65 Future Potential from a Solid Foundation Solid global customer base and successful existing products Pre-2012 Existing Software Products New Componentised Software Solutions Component Opportunities 130 Customers Genius Elgar Iris 40 Countries Xuber For Brokers Xuber for MGA s Policy Claims Policy Billing Brokasure Xuber for Reinsurers Xuber for Insurers Xuber Launch 16 th October 2012

66 Xuber Suites and Components Full lifecycle processing for Brokers, Insurers and Reinsurers Insurance Insurance Broking Insurance Underwriting Policy Administration Claims Administration Billing Ceding Policy Claims Billing Placement Underwrite Administration i ti Processing Premium & Claims Ceding Reinsurance Reinsurance Contract Claims Billing Retro-ceding Broking Underwriting Administration Administration Reinsurance

67 Xuber Suites and Components Full lifecycle processing for Brokers, Insurers and Reinsurers Analytics and Insurance/Reinsurance Processing End User Experience Design Studio Insurance Product Design and Deployment e.g. Aviation, Marine

68 The Opportunity the market is shifting Existing monolithic legacy systems are holding organisations back. Limited Local Market Legacy systems Agile Multiple Market Modern systems The right time for Xuber

69 The Opportunity to replace Legacy Systems What the industry analysts are saying Core systems investments continue to be critical in improving time to market and product flexibility. Novarica Source: Business and Technology Trends: Commercial Lines, a Business and Technology Trends Report, Novarica, September More than one-third of insurers are replacing core policy administration systems and about a quarter are replacing claims systems, billing, rating and underwriting Novarica The Gartner 2012 CIO Survey (with 85 insurance CIOs from life and P&C Insurers around the globe) showed that insurance CIOs legacy modernisation their second most important technology priority for the next three years. Gartner Gartner 2012 CIO Survey Source: US Insurer IT Budgets and Projects 2014, Novarica Research Council Report September 2013.

70 The Opportunity for Xuber Core software spend approximately 2bn per annum Non-Life Commercial packaged software spend (2012)* US & UK account for 65% of market *Source: PA Consulting, Ovum, Sigma, ABI

71 Xuber Competitive Landscape Still legacy or single market/component providers Company Approx Size - People (1) Insurance Software Locations New Technolog y Products (2) Broker Solutio ns Insurer Solutio ns Reinsure r Solution s London Market Support US Admitted / Workers Comp Support Complex Commercial Lines SME Person al Lines Modules Key Strengths Xchanging (Xuber) 8000 (370) US, UK, Europe, APAC 2014 Policy Claims Billing Ceding Broking Global, single instance multicurrency, complex commercial and Small Commercial Insurance and reinsurance. London Market. Guidewire 1100 US, UK, Europe, APAC partial Growing Policy Claims Billing US Personal and Small Commercial Insurance. Very strong in Claims and growing in Policy and Billing. Accenture (DuckCreek) (600) Policy US, UK Growing Claims Billing US Personal and Small Commercial Insurance. Core strength rating/pricing Fineos 350 US, UK Claims Focused on Claims including London Market Total Objects 150 UK Broking Ceding Focused on London Market CSC (NA) US, Europe, APAC Policy Claims Billing Ceding Complex commercial and Small Commercial Insurance and reinsurance. Sequel Business Solutions 150 UK Policy Claims Billing Ceding Commercial Insurance and reinsurance. London Market NIIT (Room) 4500 (200) UK Policy Claims Billing Ceding London Market Reinsurance.

72 Key Competitors Key Competitors Key competitors moving from single market personal insurance

73 Xuber Go to Market Focused go to market approach 1. Upsell to 130 existing Xuber software customers and to other Xh Xchanging Insurance customers 2. Targeted UK, US and APAC London Market Insurer and Reinsurer Campaigns for (Broking and MGA campaigns to follow) Assumed Reinsurance US Non Admitted 3. Upgrade Studio technology to support the migration from Xuber and non Xuber solutions Upgrade Studio 4. Implementation Partners support global deployment of Xuber Software.

74 Xuber software deployment options Xchanging can offer Xuber software in several ways: 1. Software On Premise 2. Software as a Service (SaaS) 3. Business Processing as a Service (BPaaS)

75 Future Potential from a Component start Full lifecycle solutions enable full legacy system replacement 2013 New Software Components 2014 New Full Lifecycle Software Solutions Component Opportunities New Signing 7 th Nov Full system replacement opportunities London Market Assumed Reinsurance US Non-Admitted Policy Policy Ceding

76 Xuber What next? Existing Products - Genius - Iris - Elgar - Brokasure 4 New Solutions - Xuber for Insurers - Xuber for Reinsurers - Xuber for Brokers - Xuber for MGA s 3 New Components Components & Full Lifecycle - London Market - US Non- Admitted - Assumed Reinsurance New Markets - US Admitted - Workers Compensation - Broking

77 xubersocial xuber.com

78 UNLOCKING VALUE Stephen Scott

79 BUSINESS MODEL & CHANGE PROGRAMME David Bauernfeind

80 XCHANGING S BUSINESS BUSINESS PROCESSING TECHNOLOGY PROCUREMENT Xchanging is a provider of technology-enabled Business Processing, Technology and Procurement services 80 XCHANGING INVESTOR SEMINAR 2013

81 BUSINESS PROCESSING SERVICES BPS Well-established, lower risk With a significant annuity element Cash generative In markets growing at rates c. 5-10% Frequently we own the technology platform and the IP 81 XCHANGING INVESTOR SEMINAR 2013

82 TECHNOLOGY Based on a variety of types and lengths of contract In markets growing at 5-10% Frequently we own IP Requiring investment at this stage Potential ti for higher h growth Technology BPS 82 XCHANGING INVESTOR SEMINAR 2013

83 PROCUREMENT Technology Procurement In process of stepping down size of typical contract In markets growing at >10% Expertise based services Requiring investment to enter new markets Market leading position Building/acquiring IT components BPS 83 XCHANGING INVESTOR SEMINAR 2013

84 TECHNOLOGY ENABLEMENT Technology Procurement Emerging Technologies: Big Community Xuber MM4 BPS Netsett, X-presso; technology for insurance 84 XCHANGING INVESTOR SEMINAR 2013

85 BUSINESS MODEL Visibility Growth potential Margin potential Business Processing Services H M Technology L H Procurement M H 85 XCHANGING INVESTOR SEMINAR 2013

86 CHANGE PROGRAMME COST HR IT PRODUCTIVITY 86 XCHANGING INVESTOR SEMINAR 2013

87 ROUND UP COMMENTS Ken Lever

88 TECHNOLOGY-ENABLEMENT Industry & Service Customer Insight Platform Technology Enabled Business Processing Innovation Capabilities 88 XCHANGING INVESTOR SEMINAR 2013