30% cost reduction benefits achieved through a Global Target Operating Model
BACKGROUND
Global Insurance achieved 30% cost reduction benefits through the implementation of an innovative global target operating model.
Following the acquisition of a new business through a merger & acquisition, the global insurer was left with very fragmented operations, finance, underwriting, and data management.
Silos functions and capabilities lacking cross-functionality of processes and resources triggered operational inefficiencies.
SOLUTION
The global insurer, with the help from ecosysBiz, decided to transform its organization by implementing an innovative global target operating model. 30% cost reduction benefits were achieved through the implementation of this innovative TOM.
ecosysBiz helped the client to define a target operating model or blueprint. The TOM provided the “architect’s sketch” and the detailed design of the future business for all stakeholders to view.
The TOM was aligned to the organization’s objectives for growth and cost reduction. An operating model maturity assessment, a capability model, and road map were among the artifacts we defined as part of the TOM transformation.
DELIVERABLES
- Governance Model. Definition of roles and responsibilities
- Capability Model. Consolidation and streamlining of capabilities
- Implementation of standardized processes that could be scaled up to other geographies
- Low-critical tasks were performed through a centralized shared service at a lower cost
An overall 30% cost reduction was achieved from its innovative TOM.
How Can I Help
Drawing on my experience, organizations must innovate their operating models to achieve growth and generate more revenue.
Organizations can only transform by defining of a target operating model for fast growth and innovation. The TOM could also even reap substantial cost savings or cost reduction benefits by embedding the right strategies.
A conventional operating model design won’t help organizations to adapt to volatile or uncertain markets, or successfully execute their strategies for achieving growth. For instance, silo-ed strategies, processes, technology, and data result in isolated, disconnected, and dysfunctional functions which makes it impossible to attract or retain clients.
My aim is to help organizations navigate disruption, embrace innovation and transformation to manage regulatory change, and integrate business and technology to transform performance and achieve long-term growth.
My approach is disruptive, unique, and cost-effective. I pride myself on my precision of execution and benefits realization.
