JAVA-based Ariba e-procurement system

for Prairie Four Square (PFS) Insurance

Group-11
A Nava Krishna (1810008)
Joseph Thomas Kurisunkal (1810025)
Peddinti Laxmikant (1810033)
Sahil (1810043)
Saurabh Garg (1810044)
 PFS Evolution and Future Trends

-One of the Leading provider of
insurance in the US.
- PFS maintains extensive and
mission critical IT systems
- Relies on an amalgam of IT
technologies ( mainframes for
batch processing, office
computers for online analyses,
and network systems)
Infosys
Insurance Industry
-Strong capabilities and
- Future evolution in IT
competencies in all aspects
technologies in the industry
required for an end-to-end e-
requires major players like PFS to
procurement solution
upgrade to latest IT systems
-20 % of revenues coming
- e-procurement , ERP, CRM and
from end to end solutions
financial analysis systems
(valuable partner across
-Average cost to process an industries to create more
order at the PFS is $78 value)
compared to industry average
-Java based Ariba e-
of $45 per order, gives direct hit
procurement will reduce
to the margins
costs for PFS

Infosys is proven partner in creating more value for PFS in the past and will continue it
with customized end to end solutions
 Our Capabilities

-Consistently high performance

•-We share an old and -Customer commitment and
strong relationship with delivery of value
PFS. •-Infosyshas gone beyond
just offshoring to -Resource rationalization
•-Known worldwide as a increased efficiencies -Removal of process
trusted IT service provider and effectiveness and inefficiencies
in the IT maintenance improved productivity
service area. -End to end solutions
• -Saved about $13million
•-Have exceeded the -People and process strength in
in Re-engineering project
quality expectations by Technologies(Java)
assignments for PFS
delivering excellent -Multicultural teams,Global and
performance every year expert workforce
 Infosys Evolution

-Classical offshore outsourcing

Phase 1-1980s model
-labor arbitrage

Current
Phase 2-Early 1990s IT Maintenance Contracts relationship with
PFS

-End to end solutions

-Consultative services such as Value
Phase 3-late 1990’s design, customization, business Addition
process reengineering, and
installation

-Highly customized solutions-by

leveraging on its high level
domain knowledge
Future
Phase 4-Current phase relationship
insurance, healthcare, and
Retailing with Ariba
 Infosys Ariba e- Procurement system

 Infosys has initiated three end-to-end Ariba e-procurement system

projects within the year.
 Two of them are for the retailers
 One for a healthcare organization.
 Multinational Clients-
One retailer and the healthcare organization are located in the US while
the other retailer is in Europe
 Savings-The company has already been able to save $ 100,000 per
year in the healthcare organization by switching the company’s
change order procedures.
 1.Re Engineering Project Assignments
 Five major maintenance projects for PFS were redesigned
 Advantage in terms of improved efficiencies and enhanced
productivity
 Total quantifiable cost savings over previous years $12,960,000

Cost
Savings
 2.Data Corruption Prevention Subroutine
 Ability to diagnose problems and write subroutines to correct
them
 Cost savings through reduction in down time
 Total cost savings $ 518,060.40

Cost
Savings
 3.Record Comparison Algorithm

 Process re-engineering

 Avoidance of Penalty

 Total cost savings - $3,600 per month or $43,200 per annum

4.Reduction in Disability Claims Reserves

Cost  Reduction in cash reserves
Savings  Timely submission and release of end-of-month CPU time

 Process improvement and fine-tuning

 Assume cost of capital at 10 per cent, the reduction of $14,000,000 in

reserves could create a saving of $1,400,000

Total Savings to PFS is $ 14,921,260.4

Benefits of Sole Sourcing

 No knowledge transfer time

 Five programmers around 12 weeks (3 months) to
master an Ariba e-procurement system that another
vendor had installed and customized
 FTE costs would be $8,000 per month
 Total cost Savings - $ 120,000 USD
 During maintenance phase
 Additional savings –Infosys would be in far better
position to quickly track down the source of any
software problems
 Project Timelines

First step
Since we have already handled multiple PFS projects we have
an advantage in terms of time it will take for knowledge
gathering. Along with analysis it will take 4-5 weeks time.

Second step
We need to create design for
Fourth step customization using Ariba
Post implementation software. Given our
support will take experience on Ariba
approximately 4 weeks. although in different
Maintenance is an industries, it will take
ongoing activity approximately 2-3 weeks to
design the system.

Third step
Once the prior steps are completed, it will take
approximately 7-8 weeks for development and 10
implementation.
  Ariba e- procurement system - $2,000,000 USD
 Purchasing processing Redesign
 Vendor selection and training
 Package customizations
 Integration with PFS enterprise requirement planning
(ERP) system

End to End  Installation

 Maintenance - estimated price $400,000 USD per year
Solution
(Price)  PFS Future requirement and Infosys capabilities
 As per industry evolution (Market Reports suggest that
players in the insurance industry need to move to
complete IT system)
 ERP, customer relationship management (CRM) and
financial analysis systems
 Leading provider of latest IT systems solution in US,EU
 We recruit only
We evaluate our
highly qualified
work on three
employees to
dimensions- Quality,
ensure great quality
Timeliness and
of services out of
Reliability.
them.

Core
Strengths We have
redesigned project
Our team always
ensured better than
assignments so that expected results for
fewer personnel every time services
were required over were asked for in
the years starting past instances
from year 2 of the keeping average of
project. 99%+
 RAHUL(Engagement Manager)
- an American-Indian former Excalibur consulting employee with work-ex of
10 years.
- B.S from university of Berkeley and MBA (finance) from Stanford university.

JASPAL(Account Manager)
- B.E (electrical and communications
Our Team -has high expertise in value creation marketing with work ex of 10+ years.
- Specially working on international assignments In USA
Heads

LALITHA KRISHNAN(Delivery manager)

- IIT-Kanpur grad, MBA from IIM-Bangalore.
- experience in software implementation and working with us from a decade
Team

 10 experienced MBA’s for this project, each from top tier B-

schools specifically chosen for this project.
 A well blended mix of 5 Indians and 5 Americans to ensure
cultural fit with best work value in mind.
 Even in past years, we had employed 250 in India and 75 in
America to complete our projects with you. Which we
increased provide timely, quality service.
 In our 4-5th year with you, we used 100 of our employees in
Bangalore and transferred remaining 150 to other PFS projects
at no extra charge.

We create superior Value for our clients while building long term
partnerships and strong relations
Tech Support Team

 All of our employees are engineers, hand picked from the

best engineering colleges of India such as IITs and NITs
 We have world class development and training center in
Bangalore to keep our employees highly skilled .
 We are training a chosen team in java enabled softwares in
our java training sessions.
 In case, more staff is required during our engagement, high
skilled team will be happy to serve you at NO EXTRA COST.
Thank you
Q&A