Enterprises have started adopting a triple-bottom-line approach, which encompasses people, planet, and profit in business strategies. The role of enabling technology for sustainability and responsible business models is fast evolving, with emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), predictive analytics, and blockchain underpinning the sustainability services market.
While, currently, the focus is more on the planet aspect of sustainability, with providers designing net-zero strategies, providing climate risk assessment and auditing, and enabling sustainable product life cycles for their clients, the pandemic has put the social aspect of sustainability into the spotlight. Service providers have proactively started enhancing their people-led solution portfolios to help clients with accessibility, Diversity, Equity, Inclusion, and Belonging (DEIB), and Environment, Health, and Safety (EHS) services, along with planet-focused offerings.
An assessment of 14 leading sustainability enablement technology service providers on Everest Group’s Services PEAK Matrix® evaluation framework
Characteristics of Leaders, Major Contenders, and Aspirants in the sustainability enablement technology services market
Strengths and limitations of the sustainability enablement technology service providers examined
In this inaugural Everest Group research, we present detailed assessments of 14 IT service providers featured on Everest Group’s Sustainability Enablement Technology Services PEAK Matrix® 2022 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings across the people, planet, and profit aspects of sustainability services.
The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.
With increased competition and cost pressure in the property and casualty industry, insurers are rapidly modernizing technology and moving to the cloud. Top SaaS vendors like Guidewire and Duck Creek are playing increasingly important roles in insurers’ modernization journeys. Getting the correct licensing for your enterprise needs is critical to the success of these strategic partnerships. Read on to learn the key aspects that go into Guidewire pricing to negotiate smarter and make more informed purchasing decisions.
How does Guidewire charge for its platforms?
The most common Guidewire products we see clients use are InsuranceSuite and InsuranceNow. For both platforms, Guidewire’s annual fees are charged as a percentage of the annual Direct Written Premium (DWP) of the procuring enterprise.
An incremental license fee applies to all DWP increases once the enterprise exceeds the DWP baseline contracted during the term period. The incremental fee is typically staggered in nature and decreases as a percentage with increased DWP.
Negotiating the right fees for the platform remains a key stepping-stone to realizing commercial success and increased ROI for the platform. Some of the key negotiating levers in SaaS vendor management scenarios are:
Five factors to focus on beyond fees
While subscription fees remain the most important aspect of the commercial agreement, the following factors play a key role during negotiations:
The number of non-production environments (NPEs) included in the subscription is an important parameter to consider.
Similarly, Guidewire provides additional credits that can be redeemed to provision NPEs. These NPEs are typically used to provision dev, test, pre-production environments and come in multiple sizes from Guidewire – Standard, Enhanced, Performance, etc. Since these environments are chargeable (post credit redemption), it becomes extremely important to internally calibrate enterprise requirements for NPEs and understand if the provided credits will suffice now and in the future.
Price hikes during contract renewals are one of the most dreaded conversations for an enterprise, especially for a niche vendor like Guidewire. Negotiating favorable terms around price renewals is critical. Typically, we observe enterprises pushing for renewal prices to be capped at a mutually agreeable percentage.
Guidewire typically provides multiple add-ons like Predictive Analytics, DataHub, etc., at additional costs. While these may not be immediate enterprise requirements, they may later become necessities. In certain scenarios, Guidewire offers price holds for some of these products.
We recommend price lock-ins at the time of contracting for add-ons that may become requirements in the future and also advise that customers take these two additional steps:
Be sure the price lock-in term is longer to take into consideration the implementation period
Negotiate a broad price lock-in that includes all add-ons that may become future requirements
In addition to the core product, Guidewire significantly cross-sells its services. It typically offers service credits that come with conditions. Using service credits is restricted up to a certain percentage of the invoice value (thereby allowing Guidewire to bill for the remaining invoice amount) and the credits expire.
Both of these conditions are geared towards allowing Guidewire’s professional services arm to make inroads into the client environment. Based on our benchmarking engagements, some of the key negotiation points for clients remain around service credits adequacy and the validity period, and the increased usability of each invoice.
Support costs are an often-overlooked aspect of the agreement. As is the case with most top SaaS vendors, platform support remains with the product vendor, and the cost is baked into Guidewire’s licensing fees. However, Guidewire charges a certain percentage of the subscription fee for extended support if the enterprise is currently on an earlier product version.
This can be a tricky scenario since enterprises may choose not to upgrade due to various reasons – making this one of the most important aspects to benchmark and negotiate as part of your SaaS vendor management.
To learn more about how Everest Group can help your enterprise optimize and navigate through your Guidewire license procurement and SaaS vendor management, please reach out to [email protected].
Retail and CPG GBS Success: Reimagining Operating and Governance Models
May 19, 2022 |
8:30 am EDT | 6 pm IST
As you are likely experiencing first-hand, retail and consumer packaged goods (CPG) Global Business Services (GBS) organizations have evolved from internal providers to strategic partners to the enterprise, driving operational and technological advancements.
What’s next? How can you ensure your GBS continues to be successful?
The next wave of evolution will hinge on key outcomes, such as delivering value beyond arbitrage, growing your enterprise’s top-line, and reducing barriers inhibiting GBS-enterprise collaboration. To meet these objectives, GBS organizations such as yours will need to make critical adjustments to their operating and governance models.
Join our exclusive GBS Leadership Exchange virtual roundtable, “Retail and CPG GBS Success: Reimagining Operating and Governance Models,” onThursday, May 19, 2022, 8:30-10 am EDT / 6-7:30 pm IST.
What you will take away
In this collaborative session, you’ll come away with new insights from our experts and your peers as you exchange perspectives on key priorities for retail and CPG GBS organizations, including:
The 2022 vision for retail and CPG GBS organizations
Key areas and enablers for future value creation
Futuristic operating and governance models
Success driving actions for retail and CPG GBS leaders
Success stories from best-in-class peers
Who should attend?
GBS strategy leaders
GBS site leaders
Virtual Roundtable Guidelines
This event is available to our GBS Leadership Exchange members only. The only price of admission is participation. Attendees should be prepared to share their experiences and be willing to engage in discourse.
Participation is limited to enterprises (no service providers), and Everest Group must approve each attendance request to ensure an appropriate size and mix of participants. The sessions are 90 minutes in duration and include introductions, a short presentation, and a facilitated discussion.
Most IT technology in organizations focuses on helping to improve the efficiency of the organization. However, as digital transformation takes hold, we can now see that a significant portion of these new IT investments focus on building technology platforms that allow organizations to compete for customers. These new “growth-focused” investments behave differently than their efficiency-focused cousins. They create a more dynamic relationship between technology and the business and evolve at a faster rate, often in less predictable ways. This new relationship between the business and technology increasingly calls for a different governance, investment, and management philosophy.
9:30 AM CDT | 10:30 AM EDT | 3:30 PM BST | 8 PM IST
Our Conversations with Leaders LinkedIn Live series, a part of Everest Group’s GBS Leadership Exchange, features GBS executives who have shown significant leadership and innovation in GBS.
Join to learn from and interact in the peer-to-peer discussions on the transformative journeys – including the challenges and rewards — renowned leaders are undertaking in the GBS space.
Episode 1 | A conversation with Serge De Vos, Founder, Interaxis AI an Anheuser-Busch InBev Venture.
Rohitashwa Aggarwal, Vice President, GBS Research and Advisory, at Everest Group, will lead a conversation live on LinkedIn with the inspirational leader, Serge de Vos of Anheuser-Busch InBev as they talk about his journey of taking their GCC from a low-cost service delivery center to a truly strategic partner for Ab InBev, delivering approx. 5 times impact than cost arbitrage provided by the GCC.
Join the conversation to ask questions and dive into the transformation Serge and his team initiated including how they measure impact, key changes they implemented in the GCC’s operating model, and the biggest challenges they faced along the way.
Business agility has emerged among leading Global Business Services trends as a key driver for growth, innovation, and business excellence. Attaining business agility requires new ways of thinking and working. To learn more about the 4Cs (commitment, collaboration, competence, and construct) that can help GBS organizations rapidly respond to market changes and emerging opportunities, read on.
Looking at the latest Global Business Services trends, business agility is a key lever driving cost optimization, improved operational efficiency, accelerated digital transformation, higher revenue impact, improved customer experience, and other positive business impacts. Mature GBS organizations are increasingly reaping the benefits of agility, often reacting, and adapting to changes and challenging situations faster than ever before.
But business agility doesn’t prioritize speed over quality. Being agile doesn’t deteriorate quality, limit documentation, or micromanage. Business agility is an organization’s ability to rapidly adapt to the market and environmental changes productively and efficiently. Organizations who think lean and embrace agility or possess a Lean-Agile mindset are proving they can overcome challenges and seize emerging opportunities quicker than their competitors.
4Cs to successfully attain business agility in GBS organizations
Through our research with mature GBS organizations, Everest Group has identified 4Cs to attain business agility success as shown below:
Exhibit 1: Everest Group
GBS organizations need to possess the following characteristics to reach business agility:
Change the mindset and increase risk tolerance (over 50% of companies believe resistance to change impedes their progress towards achieving complete agility)
Evolve the organizational culture to scale the agile model
Focus on talent management by taking an empathy-based approach to leadership and hiring team players
Invest in roles for the future and nurture specialist talent
Leverage internal social tools to drive transparent collaboration across the organization
Ensure autonomy and evolve the operating model to avoid getting stuck in existing models and being unable to innovate and realize the true potential of agility
Establish open communication channels and/or build a bottom-up communication channel
A shift to agile work
With enterprise expectations evolving and GBS organizations becoming strategic business partners driving higher value and impact, adopting agile work methods has become an urgent need.
Traditional work ways have visibly shifted to an agile mindset. Let’s look at how the 4Cs translate to the new agile approaches as illustrated below:
Exhibit 2: Everest Group
Business agility – the path forward for GBS centers
With enterprises viewing GBS as the hubs for innovation, digital transformation, and change, integrating agile working methods will help GBS centers deliver value-based outcomes productively and efficiently. This also will enable different GBS centers to operate as a cohesive network, benefiting from each other’s best practices. In today’s rapidly changing times, business agility is the path forward for GBS organizations.
Leaders of cloud development at technology service providers are often seen as stars, leaving executives in charge of traditional segments feeling left out and unnoticed. The C-Suite needs to recognize the important contributions business units and their leaders play to the company’s overall growth and future success. Read on to learn the actions “non-cloud” business leaders should take to be sure they get the company investment, attention, and rewards they deserve.
What describes the current cloud landscape for business at technology service providers?
In our market observations, one aspect has become very common. Leaders at technology service providers who are driving cloud business development for their firms are witnessing much stronger professional growth in the organization than others.
Businesses always value and reward people who are part of fast-growing markets. Given that cloud business for technology service providers is growing two to five times more than overall company growth, it is the cynosure of discussions, investments, and leadership promotions. However, it is also creating challenges for C-level executives in terms of managing the morale of other “non-cloud” leaders.
As a result, we see some segments are now led by “lesser title” executives than in the past. Even if senior leaders run these businesses, they do not get the needed attention and investments from the C-suite. These units quickly become the cash cows that need to drive other high-growth business, such as cloud, which are subtle indications from top management around companies’ priorities.
What are non-cloud leaders doing?
Leaders driving traditional segments are partnering with cloud leaders to drive business. However, they also realize they need to play “second fiddle” in this partnership. Though the cloud business probably needs these segments more than vice versa, the cloud business becomes the fulcrum around which the partnership revolves.
This is forcing technology service providers to rethink the organizational structure of these segments. Some of them are or will embed these segments into different units instead of running them as standalone practices. Many leaders who were part of transformational offerings (e.g., modernization, platforms) have changed their roles now to align with cloud business units.
However, this is not enough, and the non-cloud leaders know it.
What should C-level leaders do?
Top management focuses on the overall growth of the firm. Cloud will continue to receive significant focus and investments from the C-suite because of the benefits of cloud technology to the business. However, the C-suite is failing to realize that the cloud business cannot be seen as an antagonist and other leaders should not feel excluded.
Although C-level executives have aligned non-cloud leaders’ incentives, growth, and influence areas based on capabilities, focus, and aspirations, they must design better models to engage them. They need to understand that cloud business development relies on the success of these other units that bring 50-80% of their top line.
While the cloud business at technology service providers acts as a “nodal agency,” it is unable to influence capability building across the organization. The key reason is because non-cloud leaders are unwilling to collaborate beyond the bare minimum because they see their personal growth being stifled even if they make the cloud business succeed.
We believe technology service providers who can solve this complex organizational structure problem will accelerate their overall business and cloud growth faster than their peers. As newer concepts of Metaverse, Digital Twins, Artificial Intelligence (AI), and composable businesses accelerate and large spend areas such as supply chain, networks, employee engagement, sustainability, and customer experience get disrupted by cloud, it will become even more important.
However, cloud will not be front and center before the strategy but an enabler for overall business outcome. Therefore, C-level leaders need to nurture their leadership outside of the immediate cloud business to prepare their organization for future success. Failing to do so may result in near-term growth for cloud business development but bring long-term challenges for the overall organization.
What should non-cloud leaders do?
Stake claim to the high table: Have the courage to speak up about the importance of your service line. Educate top management about how underinvestment in your business impacts the overall firm. Continue to collaborate with cloud leaders but build deep relationships where you are an equal partner instead of being in the back seat
Make your portfolio exciting: Leaders should make their management style and offering portfolio enticing. Unfortunately, most confuse their run the business innovation as exciting, which it is not. They should focus on revamping their offering portfolio, drive positive messages across team members about the impact they are creating, and create internal events for people to feel connected and motivated
Invest beyond run the business: Many leaders have almost given up on the hope of growth investing in their business. Some of it is a result of top management’s lack of interest, but in large part is due to the internalization the non-cloud leaders have of this apathy. These leaders need to build a stronger case for investments in their segments, link it to overall firm performance, and provide detailed insights into how their business is adding to cloud momentum
Quit: If the leaders continue to get short shrift in their organization, they should proactively look at opportunities outside their company. Smaller and niche companies are always seeking a growth-centric C-suite and will be happy to engage with them. In these companies, executives can create their charters and show the value add they can bring
As the workers’ compensation industry emerges from the pandemic, leveraging digital technologies to transform claims handling and taking a customer-centric approach will help carriers maintain profitability. By using automation, analytics, and digitalization, players can differentiate themselves. To learn about the key workers’ compensation trends to pay attention to, read on.
The workers’ compensation industry has remained profitable through the pandemic, with claims severity remaining consistent and frequency continuing to decrease. But reduced net written premium, low-interest rates, and the economic slowdown are creating top-line pressures. Moreover, the sustainability of profits is not guaranteed.
As COVID-19 subsides and most industries return to normal workways, the workers’ compensation industry could face difficulties in holding on to gains if it doesn’t chart a dedicated plan to improve productivity, employee experience, and employer mandates to create market differentiation.
Process standardization and simplification are the need of the hour. The workers’ compensation industry must move from the “repent and repair” model to “prevent and prepare” by leveraging business intelligence through an end-to-end real-time data flow across processes to enable a more customer-centric approach toward claims handling.
Currently, efficiency is impacted by the lack of information that results in back-and-forth requests on multiple claims touchpoints. By integrating processes, carriers can obtain real-time data to design standard workflow for Straight-through Processing (STP), exception handling capabilities, fraud detection and claim reserves calculation, and reduce overall claims function cycle time.
Challenges to overcome for claims transformation
In addition to concerns and uncertainty about the long-term effects of the pandemic, the workers’ compensation industry faces the challenge of outdated workflows with heritage issues such as:
Lack of information at each node in the claims management process that increases cycle time and leads to poor end-user experience
Paper-based processes that are roadblocks to enabling a virtual ecosystem consisting of digital payments, paperless documents, e-signature, e-inspection, and sundry processes
Cumbersome manual functions that should be automated
Lack of a framework for standardized processes and segregating functions, requiring customization such as objectionable and non-objectionable items having to follow the same workflow
Claims not being linked to risk assessment and reporting, which impacts new business and renewals and the mapping of profitable and loss-making segments
Inability to benchmark claims, assess claims performance, and understand market impact
To continue its growth, workers’ compensation industry players should look to implement digital transformation and optimize processes to reduce claims turnaround time. Carriers who focus on digital solutions and leverage data through automation and analytics will successfully pivot for the future.
Traditional claims versus digital claims
Exhibit 1: Everest Group
Three workers’ compensation industry trends to watch
1 – The role of automation
Workers’ compensation claims consist of workflows requiring minimal manual intervention where automation can work as an enabler providing numerous benefits such as:
Enhanced user experience through conversational Artificial Intelligence (AI) for First Report of Injury (FROI)
Improved data validation and elimination of human error, enabling early-fraud detection and reduction in leakages
Automated claims routing for risk assessment through SOPs for STP, exceptions, and large claims
Auto approval of bills based on claim and treatment parameters can shorten handling time
Better claims capacity, improved backlog on open claims, speed to adjudication, and faster return-to-work solutions
Digital intake can remove friction and deliver a captivating experience for all stakeholders. By focusing on automation, workers’ compensation carriers will not only improve operational efficiency but also reduce operational costs – resulting in bottom-line benefits.
2 – Advancement in analytics
By adopting enhanced analytical capabilities, workers’ compensation carriers can increase their focus on the end-user experience and take a more proactive, prevention-based approach. Here are some ways this can be done:
Predictive and prescriptive analytics for insights on safety parameters will help prevent accidents and injuries
Predicting risk upon claim intake will smoothen the claim cycle for all stakeholders
Auto assignment of claims to an adjuster with relevant experience for backend issues
Individual and aggregated claims-based rules with persona-specific dashboards for different injury types
Implementing Key Performance Indicators (KPI) for assessing analytical potential
Advancement in analytics with proper predictive modeling techniques will reduce claims cost and improve claims severity, which, in turn, will deliver enhanced profitability.
3- Digital ecosystem and a safe workplace
The evolution of workers’ compensation claims in the future will depend largely on the assessment of intake efficiency, moving away from redundant processes, and instituting digital and data-led workflows. Technology usage will not only depend on the number of datasets with a carrier but also on the value generated to create new models for transforming the entire claims solution.
The cornerstone for transformation should be prevention and preparedness. With many organizations choosing to operate in a hybrid working model post-pandemic, it is imperative to assess the long-term impact of such changes. Internet of Things (IoT) and telematics can help achieve this through initiatives such as:
Smart workplaces with sensors, cameras, and other intelligent devices for continuous supervision
Digital collaborations for safety training and mechanisms with loss controllers
Wearable devices for loss prevention and control
Creating digital safety communities
With the pandemic pushing workforces to stay at home, telemedicine has gained popularity providing employees with medical consultation and reducing the away-from-work time. It is offering immediate care and a faster inquiry process by having expert medical professionals available. Telemedicine also helped promote claims advocacy and assisted in intake and triage through digital authorizations and workflow development for assigning priority to claim categories.
In the end, employers want stability and predictability of final claim costs. Regardless of how these macro trends affect the Workers’ Compensation industry, the focus should be on creating a safe workplace and taking all measures to prevent injuries and hazards.
Accelerating Value, Sharing Capability: The Imperative to Build CoEs in GBS Organizations
April 7, 2022 |
10-11:30 am EDT / 7:30-9 pm IST
Building Centers of Excellence (CoEs) has become an imperative for global business service (GBS) organizations and is critical to develop distinctive high-value capabilities, enable cross-functional collaboration, and increase value delivered beyond labor arbitrage.
Join our exclusive GBS Leadership Exchange virtual roundtable, “Accelerating Value, Sharing Capability: The Imperative to Build CoEs in GBS Organizations,” onThursday, April 7, 2022, 10-11:30 am EDT / 7:30-9 pm IST.
What you will take away
Along with our analyst experts, you and your industry peers will share approaches that their GBS organizations are taking to develop successful CoEs. Together, we’ll discuss ideas and break down the components of an effective CoE, examining its role, focus areas, governance mechanisms, typical challenges, market success stories, and steps you need to take to build a successful CoE.
We’ll also share our playbook, which identifies the steps and framework necessary to build strategic CoEs in GBS organizations.
Who should attend?
This exclusive event is limited to:
Global business services heads
Global business services strategy leaders
Virtual Roundtable Guidelines
The only price of admission is participation. Attendees should come prepared to share their experiences.
Participation is limited to enterprise leaders (no service providers). Everest Group will approve each attendance request to ensure an appropriate group size and mix of participants. The sessions are 90 minutes in duration and include introductions, a short presentation, and a facilitated discussion.
Global business services (GBS) organizations remained resilient in the face of the pandemic; however, they now must confront a global talent shortage, particularly in digital and high-value skills, to continue delivering business value and fulfill heightened expectations of the enterprise.
As GBS organizations now look to rethink talent strategies and expand their reach in 2022, what do leaders need to know – and do – to tackle the talent challenge?
Join this webinar as our experts explore:
How long the talent crisis will last
What actions GBS leaders should take to manage the situation
What the best long-term approaches are to insulate GBS from this crisis
What other strategies GBS organizations have found to be successful