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Business process re-engineering for the commissions process

The client

An Australian corporation, which is among the top ten banking institutions and top five general insurers, has one of the highest cross-sell rates in the financial sector. The insurance activities of the company cover personal insurance, corporate coverage, and workers' compensation.

Business need

Alliances and intermediaries were key growth drivers in the long-term strategy of the client. In order to better manage the channel behavior and meet the organization's objectives, the ability to pay accurate and timely commissions was an important element. This was considered a critical competitive edge and a weak link in the client's back office capabilities.

Challenges and requirements

The following challenges were faced during implementation:

  • The existing operations comprised of manual processes using band aid systems which were high-cost and presented serious risks.
  • This organization paid about AUS$90 million per year in commissions, which was approximately 20 percent of its profits before goodwill and taxes. At the same time, it lost significant amount on overpayments and commission leakage.
Our role

Infosys studied the processes and identified improvement initiatives that would benefit the client. Infosys recommended a centralized commission management organization and articulated the desired business capabilities for a group commissions solution with the following objectives:

  • Coverage of
    • Multiple businesses – insurance, wealth management, banking
    • Multiple brands
    • Different distribution models – multiple intermediary types
    • Consolidation of several existing legacy systems
    • Integration with product (Hogan, Cogen), payment (PeopleSoft), and CRM (Enterprise) systems
    • Scalability – large number of intermediaries (>5000) across BUs and 400,000 transactions per month

Infosys assessed vendors in the enterprise incentive management space based on multiple criteria. The vendors included Callidus, Synygy, Centive, Trilogy, and Siebel. Infosys evaluated and selected a vendor as a recommended integrated commissions platform. At the same time, Infosys also built the business case for the investment as well the implementation plan for all initiatives.

Benefits

The benefits of the solution include:

  • Identification of the most suitable solution based on a list of quantifiable criteria (cost, project risk / ease of implementation timelines, functionality fit), and a complex evaluation process.
  • Creation and articulation to the executive team of the business benefits arising from various initiatives including implementation of an integrated commissions platform.

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