Balanced

Scorecard

Management Accounting
Term V - PGPBM 2018-20
IIM Trichy (Chennai Chapter)

GROU 1803002 Muralidharan

1803008 Balagee

P- 1 1803010
1803026
1803029
Chandan Bharti
Rini Rafi
Senthil
Company
For this assignment on Balanced Scorecard, we have chosen an IT company specialising in Insurance Technology & Services. This company operates
in B2B model with customers being the large insurance carriers in US and UK. Company has two delivery centres (Chennai & Madurai) in India and all
the product development, implementations, change management and customer delivery happens from India. Specializing in Platform as a Service (or
PaaS) on Cloud, this company develops Application Programming Interfaces (or APIs) that enables the insurance carriers to do - Rating, Quote
Creation, Policy Issuance, Policy Document Generation, Endorsements, Cancellations, Invoice Generation and Processing Payments (through 3 rd party
payment gateways). Below we have provided a high-level view of the business model (using the Business Model Canvas) and designed the balanced
scorecard keeping the delivery activity stream as the focal point.

Business Model
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Oracle - provider of the cloud  Marketing, Product Demos, Roadshows  Agile Delivery - ability to produce Relationships maintained at both Insurance carriers
infrastructure for hosting applications and  Business Analysis, Product relevant APIs within 30 days from tactical and strategic levels. Dedicated specializing in Property
deploying PaaS solutions. Oracle manages Development, Consultation, the date of SWO - even if account managers (onsite & Casualty insurances in
all the production environments accessed by Implementation and Maintenance customizations are required representative) managing all aspects of US and UK markets.
all the existing customers.  Post-Production release services like  Managing the production operational & tactical matters. CEO,
support & maintenance environment through 24x7 365 CTO and Marketing Head, managing
Rackspace - provider of the cloud  Continuous learning & development service monitoring and production customer relationships at strategic
support processes, freeing up level. Program Managers (offshore)
infrastructure and data centre services;
customer resources from managing managing customer relationship from
including hosting, data backup, disaster
production environments project delivery standpoint.
recovery, deploying security patches, etc.
for all Non-Production environments like  Keeping the Rating Algorithms,
Key Resources Channels
Development, UAT and Pre-Production. Rules and Rates up-to-date and
 Human Capital - Sales & Marketing enabling them in production within 4
Prospects are drawn to the technology
professionals, Business Analysts, & services of the organization through
Universities - tied up with few hours of request from customers
Developers, Release, Production digital marketing and Insurance
universities in Tamil Nadu for recruiting  Archival and enabling reports on
Support engineers and other executives Technology conferences. ‘Sandbox’ -
engineering graduates to be part of the past data
in Finance & Accounting, HR and an environment where prospects and
workforce.  Standardized reports to facilitate existing customers could try their own
Administration
regulatory reporting in customer business configurations before opting
 Software, tools and in-house
regions for the service in the production setup.
infrastructure (like laptops & desktops)
 Product, Program and Project Managers

Cost Structure Revenue Structure

 Cloud hosting and data centre service-related fees  % of annual premium booked
 Human resources related costs (salaries, insurance, recruitment, training and rewards & recognition)  Time & Materials billing for all customized/bespoke development activities
 Offshore facilities rental, maintenance & other administrative expenses  Service based charges on Annual Maintenance Contracts and other customer specific services
 Cost of licenses for systems used for creating & managing projects, booking Time Sheets and (eg. report design and development for specific regulatory requirement)
managing HR related activities & processes, development tool kits, MS Office 365
 Procurement, maintenance & replenishments of internal hardware like laptops, desktops, telephones
Balanced Scorecard
Vision To be the fastest growing and trusted technology partner for leading P&C insurers in the US and UK markets
Mission The number one provider of ‘Platform as a Service’ to large insurance carriers across US and UK
Strategic Priorities Brand Awareness Technology Partnerships Customer Service
Strategic Results Generation of leads, lead to customer conversion rate increase Exclusive agreements with revenue sharing model High agility index, unique API offerings
Strategy Map - Delivery Stream Measures Targets Notes
Total premium booked (YoY increase %) 30% Revenue =
percentage of
Financial

Increase premium based revenue No. of hours billed (YoY increase %) 20% total
Cost reduction due to improved quality (YoY %) 15% premium
Reducing operating costs booked by
Increased billing hours > 90%
Billable resources utilization rate (in %) the insurer in
the system
Customer satisfaction score (1 - 5) >= 4.0 CSAT
Increase business revenue 1 = very
New LOBs implemented/customer (in nos.) >= 2
Customer

Increase CSAT score unsatisfied

Increase service offerings Service availability/System uptime (in %) >= 98% 5 = Very
satisfied
Reduction in production incidents (YoY %) >=20%
Reducing support costs Reducing service downtime Fast turnaround T - 1 delivery % against no. of implementations LOB = Line of
100%
(Delivery 1 day before committed date) business
Releases through automated scripts (% of total) >75% Focus on
Increase support capabilities Agile implementations automation
Reduction in no. of avoidable incidents (YoY %) >=25% to reduce
Internal

non-billing
Continuous integration Continuous delivery Automation as a % of total monitoring services >=60% hours
Reducing quality issues Bugs per kilo lines of code - quality assurance
Increased automation < 20
(as part of internal testing process)
No. of product managers identified at each Agile training
2
customer account level (every year) is for
Learning & Growth

Increasing technical skills Next level leaders Increase product managers

External certifications completed (no. of associates
10
associates - every year) that have
more than 3
External certifications Increasing business knowledge Completion % of internal mandatory trainings 100% years of
experience
Agile training completion rate 80%
Develop online training portals Mentor-Mentee program Number of new training modules included in
>= 5
the online training portal