Allstate 2015 Annual Report Download - page 4

• Platforms integrate third parties into a company’s
business model.
• Platforms support a wide range of customer relationships
and interactions.
• They are scalable and additional growth generates high
incremental margins.
• Platforms become more valuable over time, as the
information and intelligence that is part of them grow and
create new learnings.
• Companies that control strategic platforms have higher
inherent valuations than product-based businesses.
At Allstate, we have several highly valuable product- focused
businesses, most notably our personal lines insurance
business. A product- focused approach serves us well today
but will not enable us to fully capture the opportunities in the
years ahead, so we are building a set of Allstate platforms.
Our strategy in the connected car space is an example
of improving current operations and potentially building
a valuable strategic platform. Today, technologically
sophisticated cars utilize computers, sensors and connectivity
to assist drivers in reducing the number and severity of
autoaccidents. Supporting these changes is consistent
with protecting our customers from life’s uncertainties, but
it puts downward pressure on auto insurance pricing. It
also puts upward pressure on pricing, since repairing these
vehicles is more expensive. This technology also creates
an opportunity to provide customers with pricing based
on actual driving experience, particularly if we can create
astrategic platform.
The Drivewise and DriveSense products are incorporated
into today’s Allstate and Esurance business models,
respectively, by connecting Allstate and our customers
through wireless devices. Today, we have over 1million
customers who benefit from this technology. We also
provide rewards for safe driving, such as discounts with
local retailers. In 2016, we will make available Allstate’s Good
Hands RescueSM technology, which enables customers to
track a tow truck’s arrival on the phone. Our next step will
be to enhance customers’ driving experiences by allowing
third parties to provide services to Allstate customers
through our technologies. As we do this, we expect the
number of customers to grow and the frequency of their
interactions through Allstate’s platform to increase.
This will enable us to create more value for them, and
ultimately shareholders.
STRONGER RELATIONSHIPS
The 22nd Century Corporation will redefine its relationships
with customers, employees and business partners. People
willdo business with companies because of “who they are”
not just “what they sell.”
• Customers will reward corporations that do more
thanprovide a product for cash. Customers want to be
respected and not to have to pay for every interaction
orbenefit. Products such as Drivewise and Good Hands
Rescue are designed with this in mind.
• The 22nd Century Corporation will shift from the “company
pays, and employee or business partner does” model for
many of its relationships. Allstate employees and agency
owners are “customers” to whom we sell jobopportunities
and they pay us with their talent, time and passion. One
example of our approach is the Energy for Life program
that helps each individual clarify his or her personal
purpose and then build a plan to achieve it. Todate, almost
20,000 Allstaters have been through this program and the
feedback has been outstanding!
Strategic Platforms
Capabilities
Assets
Platform Interfaces
Rules in Utilizing Platform
Allstate Businesses
Existing Extensions
Third-Parties
Enhancing
Allstate’s
Businesses
Leveraging
Platform
Shared Intelligence Among Users and Allstate
Information from Users and External Sources