Enhancing Speed-to-Market

Enhancing speed-to-market
An Economist Intelligence Unit report sponsored by SAPPreface
Enhancing speed-to-market is an Economist Intelligence Unit report sponsored by SAP. The Economist Intelligence Unit bears sole responsibility for this report. The Economist Intelligence Unit's editorial team conducted the interviews and wrote the report. The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Dan Armstrong was the editor of the report. Richard Zoehrer was responsible for layout and design. Our thanks are due to the interviewees for their time and insights.
November 2007Enhancing speed-to-market
Enhancing speed-to-market
s English essayist Joseph Addison wrote, there is nothing more Intelligent use of software requisite in business than dispatch. But dispatch A now separates the speedy is frequently absent in the insurance industry, which is often plagued by delays in the complicated from the slowpokesprocess of bringing new products to market. Add in the time required for regulatory filings and it is understandable that insurers waiting months for in all phases of product creation. external approvals may feel little urgency about Intelligent use of software now addressing internal delays. separates the speedy from the However, nonchalance about speed-to-market slowpokes.is disappearing in the face of technology advances Successfully deploying such and intensified competition in a mature, low- technology can provide clear competitive growth market. differentiation. But there is an argument to be made for speed even without competitors. Speed drivers Research by Boston-based analyst firm Celent Technology capable of increasing speed-to-market has established a relationship between insurance has evolved in leaps and bounds. Today, rules-based, product freshness and product portfolio profitability. configurable product platforms, coupled with advances Fresher products tend to sell better because they in enterprise resource planning (ERP), content address a timely need that generic products do not. In a management and workflow and business process market where competition is intense, distributors want management (BPM) software are driving automation differentiated products that address the needs of today.
The case of Hartford Life
artford Life, a division of The Hartford Mr Hicks breaks the product development life cycle Financial Services, has been at the into in two stages:forefront of novel product offerings, l invention, which includes product idea generation pHarticularly in the annuity space. Efficiency in and designproducing those products begins with effective l implementation, the traditional project phase communication, according to Michael Hicks, the involving systemscompany's Vice President of Operations. Insurers have often focused on the latter because of
© The Economist Intelligence Unit 2007 3Enhancing speed-to-market
the business units have put a significant focus on The key principle involved in reforming more inclusive communications. the invention phase is recognising that "Having distribution, service and technology at the table ensures that the proposed products are communication is king. not 'actuarial masterpieces' that are not feasible to implement, and that the products chosen for development will be effectively marketed, implemented and serviced," Mr Hicks says. Hartford Life has worked to improve the implementation stage too. As part of a multi-year, enterprise-wide initiative, the carrier has created a systems development lifecycle process it calls The Framework, which focuses intensively on up-front work, such as requirements gathering, to avoid downstream problems. The carrier has also made a long-term commitment to its onerous technology challenges, says Mr Hicks. services-oriented architecture (SOA), which can serve That is a mistake, he argues, because "there is less as a more flexible means of integrating the systems opportunity to squeeze time in the implementation affected by the product development process, such as phase than in the invention phase." The key principle licensing, appointments and commission. "By having involved in reforming the invention phase is reusable services in place that we can expose via flexible recognising that "communication is king," he adds. interfaces, product implementa... [download for more]