Aviva Plc · LSE:AV.
Aviva — Investor Presentation (October 2004)
14 slides from Aviva's investor presentation, Oct 8, 2004
Slide 1: Achieving Operational Excellence
Mike Kirsch Operations Director Achieving Operational Excellence
Slide 2: 7,000 people in 9 locations
Our operational excellence ambition is focused on our customer service and technology business units 7,000 people in 9 Glasgow locations Newcastle York Sheffield Norwich Bristol Pune Stevenage Croydon
Slide 3: Achieving operational excellence: Old World
Achieving operational excellence: Old World • Historically strategic emphasis has been on rapid business growth and achieving our merger commitments • Improving service whilst building cost efficiency • Too complex and fragmented: Need to simplify • Customer demands have increased: Need to respond
Slide 4: New World: strategic imperatives to deliver operational excellence and cost efficiency
New World: We have a number of strategic imperatives to deliver operational excellence and cost efficiency • Multi-sourcing • Leveraging scale and improving productivity • Building excellence in process management • Improving service experience
Slide 5: NUL is driving towards efficient and effective performance
NUL is driving towards achieving both efficient and effective performance High 2007 Competitor A Efficiency Total expenses 2003 FUM Competitor B Competitor E Low 2002 Competitor C Competitor D Low High Effectiveness (IFA Service ratings)
Slide 6: We have made good progress
We have made good progress Customer Service Demand and Headcount 250 Comparison 2003-4 5400 200 Demand (Left Scale) 5200 5000 Life Operations 150 4800 Demand (activity hours) UK FTE 4600 100 4400 50 FTE (Right Scale) 4200 0 4000 Jan- Jun- Dec- Jun- 03 03 03 04 • Overall productivity increase of 40%
Slide 7: Our 2007 picture continues this progress
Our 2007 picture continues this progress across customer services and technology business units • Further operational cost savings of £55m by end 2007 • Further productivity increases of up to 50% • Improved service experience • Reduced UK headcount across customer service and technology business un
Slide 8: 2007 objectives will be achieved through core strategies
These 2007 objectives will be achieved through 3 core strategies • Multi-sourcing - Offshoring - Outsourcing • Process Excellence • eCommerce
Slide 9: Our customer service offshoring model builds capability and flexibility
Our customer service offshoring model builds capability and flexibility • Major captive operational site in Pune, India - Started November 2003 - 450 people already employed offshore, building to 1,300 by end 2005 predominantly back office • Effective development of customer service offshore capabil
Slide 10: Offshoring brings significant financial benefit for NUL
Offshoring brings significant financial benefit for NUL Why Offshore? UK staff India staff Facility / Technology VAT Annualised costs costs supplier Saving costs 40% Cost 100%
Slide 11: We are fundamentally transforming our technology and change functions
We are fundamentally transforming our technology and change functions • Redefined business model for technology and change - 50:50 in-house vs outsource model • Selected two global outsourcing partners, based in India - Tata Consultancy Services (TCS) and Wipro IT Services • UK transformation partne
Slide 12: Process Excellence enables us to standardise and simplify the business
Process Excellence enables us to standardise and simplify the business • Implementing a process excellence programme across customer services and more widely within NUL - Focus on customer needs - Simplify and standardise • LEAN and 6Sigma will deliver cost and quality benefits - Building significan
Slide 13: Our eCommerce offering has progressed well
Our eCommerce offering has progressed well and will enhance efficiency and the intermediary experience • Our eCommerce developments are focused on the intermediary • The proportion of eBusiness will continue to increase - 20% of new business today and expected to grow to 70%+ by 2007 - e-servicing w
Slide 14: Successful transformation will result in:
Successful transformation will result in: • Efficient and effective delivery - Further annualised cost savings of £55m from 2003 - Unit cost reductions in excess of 35% - Significant improvements in productivity, flexibility and quality • Recognised by customers and intermediaries for quality of ser