Kyobo Life Insurance
"The value innovation project was part of our effort to establish transparent management and efficiency. In addition to ensuring transparency in finance and administration, we implemented systems to manage four major outcomes including management planning and profit management, and simplified the complicated interfaces between IT systems, which had come to resemble spaghetti."
Insurance Information System Division
Business Advantage Key Benefits Sybase Technology Industry
Kyobo Life Insurance has quite a few accolades as an industry leader: ‘One of the Top 30 Admired Companies in Korea', winning the Customer Satisfaction Grand Prize awarded by KMAC for 5 years in a row, and the #1 insurance company in the KCSI (Korean Customer Satisfaction Index) 2004 survey.
These are the results of Kyobo Life's paradigm shift from volume to value. Relying on a solid customer base, Kyobo Life is striving to maximize customer value through qualitative growth. With a firmly established open and high-performance corporate culture, Kyobo Life will expand into foreign markets and it aims to become the ‘most-preferred brand in Northeast Asia' by the end of this decade.
Overview of Kyobo Life's data warehouse installation:
- Business tasks: In the former computing environment, limited statistical and analytical data was available only in certain areas such as insurance, credit, and accounting. To get more diverse data, users had to consult the Information System Office.
- Solution: Sybase IQ (which can quickly processes large amounts of data, has a unique way of storing data and is capable of compressed storage) was used to create the EDW and datamarts were implemented for 14 subject areas in 4 groups. Implementing Sybase IQ on IBM System p allowed Kyobo Life to efficiently allocate resources without any interruption in service.
- Outcome: The quality of analysis data was improved, and the availability of diverse information improves decision-making. In addition, because users can perform analysis and extract statistical data on their own, average data extraction time was reduced from 5 days to 1 day, improving user productivity and satisfaction.
EDW Provides Analysis-oriented Enterprise-wide Integrated Information
To realize these goals, Kyobo Life has recently finished a value innovation project which had three primary goals: to establish a responsible management system; to support strategic decision-making; and to integrate and accelerate financial data. The value innovation project illustrated the company's desire to become more competitive in the insurance industry through value management. For the past three years, an average of 2,839 people worked on the project each year – with the last 16 months as a hectic time for all involved. The project consisted of three parts: enterprise resource planning (ERP), enterprise data warehouse (EDW) and enterprise application integration (EAI). Mr. Lee Hae-Seok, head of the Information System Office explains, "The value innovation project was part of our effort to establish transparent management and efficiency. In addition to ensuring transparency in finance and administration, we implemented systems to manage four major outcomes including management planning and profit management, and simplified the complicated interfaces between IT systems, which had come to resemble spaghetti." The value innovation project was significant in two ways. An innovator in deployment acceleration, Kyobo Life employed a "big-bang" method in which both the EDW and ERP were built concurrently. The scale of the effort was also noteworthy, as the size of the EDW gained attention across Korea as well as abroad.
Aiming at Transparent Management and Improved Efficiency
Kyobo Life installed the EDW because the existing computing environment only provided statistical and analysis data in a few areas such as insurance, credit and accounting. To access more diverse data, users had to consult the Information System Office, which sometimes entailed long waiting periods. A company employee describes the process, "Although many statistical systems were available, they did not provide enough strategic information." To address this issue, Kyobo Life installed an information infrastructure to make it easier to create, manage, and use information. The company also decided to integrate its data and shift its computing focus from business processing to analysis. Under the guiding principle of ‘One Data, One Place', Kyobo set up and applied data standards to integrate enterprise-wide information, provide speedy and correct information related to profitability and the four major project focus areas, and developed an infrastructure that allowed the direct use of data. In this process Kyobo Life adopted Sybase IQ, which was different from other databases used in insurance, credit and stocks and bonds, and chose IBM Websphere DataStage as the ETL tool. To build and deploy the EDW, Kyobo Life worked closely with both Sybase and IBM. The combined software, hardware and services technical teams contributed unique skill sets to design data architecture, optimize user analysis, provide a data governance structure, and assure data integrity for the system.
Subject-based Datamarts Provide Information
Kyobo Life combined insurance, credit (host), stocks and bonds (SAPCFM), special accounting, personnel (SAP HR) into EAI to create a unified system that provides office data such as account closing management, bill management, funds management, tax management, budgeting, and financial accounting. The ETL tool is used to load data nightly into the EDW and make it available to the entire information system. Containing large amounts of data on customers, insurance contracts, products, and insurance premiums, the EDW's greatest advantage is its ease of use. Related data are divided into 4 major categories: customers/activities; contracts/financial transactions; commissions; and investment/finance/managerial accounting. The warehouse is set up with 14 subject areas including customers, activities, communication, contracts, products, fund setting, financial transactions, closing, organization, market, investment, and fixed assets/real estate. This data design makes it easy for users to analyze data. As a result, 700 employees use the EDW to obtain analysis data.
A spokesperson says, "After the system was installed, enterprise-wide standards were applied to business data from various channels and data was integrated through the ETL tool to improve the quality of analysis data. Diverse management information is available for quick decision-making. In addition, as users can directly extract analytical and statistical data, data extraction time was reduced from 5 days to less than a day, raising user productivity and satisfaction."
Increasing Flexibility, Scalability and Productivity
In addition to these benefits, Kyobo Life Insurance uses the enterprise-wide data offered by the EDW to conduct analysis from diverse viewpoints, thereby improving transactional processes and work efficiency. The EDW, a single channel that provides the information system with data, improved the flexibility and scalability of the system, and raised development productivity. The company shifted from providing task-related information to providing analytical enterprise-wide information, and is transforming into a "real-time corporation" by providing forecast data based on real-time analysis.
To this end, Kyobo Life now holds management performance reporting sessions using the management information system based on EDW data, while maintaining data quality by reinforcing the sense of data ownership of each department. Kyobo Life also uses the data in the information system's analysis and statistical work. To expand the user base, increase use, and improve competencies, the company provides convenient user tools, open training courses and a specialist license system. Kyobo Life trains instructors at each branch office, who will then give training courses for their respective branches.
Kyobo Life Insurance uses IBM Global Technical Services to install the risk management system to meet the Financial Supervisory Service's risk management criteria, and may install a mobile system which was postponed due to issues with wireless data transmission speed.