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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 client's backoffice capabilities.

This organization paid about AUS$ 90 million per year in commissions which was approximately 20% of its profits before goodwill and taxes. At the same time, it lost significant amount on overpayments and commission leakage.

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 risk This organization paid about AUS$ 90 million per year in commissions, which was approximately 20% 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 1. 2. 3. 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, etc.), Payment (PeopleSoft) and CRM (Enterprise) systems Scalability - large number of intermediaries (>5000) across BUs and 400,000 transactions/ 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 and at the same time Infosys 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 the various initiatives including implementation of an integrated commissions platform