Medibank ready to move new SAP platform out of hypercare

‘Business as usual’ platform in sight for health insurer, CEO says

Medibank is on track to move its SAP-based core policy management system — implemented in an initiative dubbed Project DelPHI by the health insurer — out of hypercare in the next three to six months.

Addressing a briefing on Medibank’s first half results, CEO Craig Drummond said that the health insurer had been working to strengthen relationships with its key technology suppliers to expedite outstanding remediation work.

“As a result we have seen a 48 per cent reduction in the number of open Project DelPHI issues as well as a 75 per cent reduction in the number of DelPHI high priority incidents since we went into hypercare mode in mid-2016,” the CEO said. “Both metrics indicate significant project towards a stable, business as usual platform.”

Drummond said that the improved stability of Medibank’s key technology platform has had a positive impact on customer experience, citing movement in the health insurer’s Net Promoter Score and complaints to the Private Health Insurance Ombudsman.

Project DelPHI has been part of a broader technology transformation at Medibank. The transition to the new platform was blamed for problems with issuing tax statements in 2016.

Drummond said today that a key focus of John Goodall — Medibank’s group executive for technology and operations, who joined the company late last year — has been strengthening the insurer’s technology governance framework.

“The objective being to make it easier for our teams to deliver against the most important projects that have the largest impact on our customers, regardless of technical complexity,” Drummond said.

Central to that has been launching a Priority Projects Office (PPO), the CEO said.

“The PPO is responsible for working with project teams to develop a transparent, aggregated schedule and resource plan across all top priority projects, as well as identify and resolve any resource contention.”

Medibank reported group net profit after tax of $231.9 million for the six months ending 31 December, up 1.9 per cent on the first half of FY16.

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