SIZING GUIDE

Sizing SAP Claims Management

Released for SAP Customers and Partners

Document Version 1.2, August 2009

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TABLE OF CONTENTS

INTRODUCTION................................................................................................................................... 1 1.1 1.2 ARCHITECTURE OF SAP CLAIMS MANAGEMENT .................................................................................. 2 FACTORS THAT INFLUENCE THE PERFORMANCE ................................................................................... 3

2 3

SIZING FUNDAMENTALS AND TERMINOLOGY ........................................................................... 3 INITIAL SIZING FOR SAP CLAIMS MANAGEMENT ..................................................................... 4 3.1 USER-BASED SIZING (CPU AND MEMORY) .......................................................................................... 4 3.2 THROUGHPUT-BASED SIZING .............................................................................................................. 4 3.2.1 CPU .......................................................................................................................................... 4 3.2.2 Disk Sizing................................................................................................................................. 4 3.3 RULE OF THUMB ................................................................................................................................. 5 3.3.1 CPU .......................................................................................................................................... 5 3.3.2 Memory ..................................................................................................................................... 5 3.3.3 Disk capacity ............................................................................................................................. 5

COMMENTS AND FEEDBACK ........................................................................................................... 5

1 Introduction
The SAP Insurance solution enables fast and direct claims data entry, as soon as a customer reports a claim, regardless of which service point it comes from, whether a call center or agent. During the course of claim settlement, different parties work together. It may be the agent in charge of the customer, or a loss adjuster, or a repair shop. With SAP Insurance, participants can organize their work together simply and quickly, guaranteeing speedy settlement of the claim. The solution presents standard, comprehensive, and consistent information on customers or the process. Experts have the opportunity to settle claims at any time, anywhere, and through various channels. Claims can be settled quickly, for example, with replacement in kind ordered directly through an online catalog. Agents can be motivated by additional bonus systems to deal with these traditional back-office problems. There are cases in which the involved parties disagree on the settlement. To do so, the litigation cases process tracks offers and demands from all the involved parties, not only for normal claims but also in the case of subrogation litigation. Multi channel capability and a higher degree of integration of the solution allow insurance companies, along with their partners, to offer comprehensive services to their customers or third parties. Support of individual business rules allows a configuration of claims processing for several lines of business and to separate from competition. One single claims file enables an efficient claims processing. Process costs can be reduced, and customer satisfaction and retention can be increased. SAP Claims Management (FS-CM) is a solution for managing the complete claims process from first notification of loss and claims data capture to claims adjustment and financial reporting. It is integrated with other core functions of SAP for Insurance such as Consolidation System (FS-CS) or Collection and Disbursement (FS-CD). It supports proactive claims management and integration of third-parties, such as appraisers or repair shops and provides employees, customers, brokers, and agents with multiple points of access to the claims system. The figure below gives you an overview of the claims process.

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Sizing SAP Claims Management - SAP Customers and Partners

Graphic 1: Overview of the Claims Process

1.1

Architecture of SAP Claims Management

Claims Management is a highly integrated solution, which the following figure shows. The main components used in Claims Management are the SAP business partner, a Collection & Disbursement, and a Policy Management system.

Graphic 2: Architecture of SAP Claims Management

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Sizing SAP Claims Management - SAP Customers and Partners

The SAP Claims Management system is developed using the BDT in subscreen. Customers can enhance the application without modification, by adding subscreens and event function modules. The coding is mainly normal ABAP, with an increasing amount of ABAP OO. ALV Grids are used frequently instead of table controls. All application tables have shadow tables to track changes. Change documents are not used. Workflow is used to assign claim, subclaims and activities to a claim handler, and for approving payments.

1.2

Factors that influence the performance

The main access to the Policy Management system occurs when the claim is created. A snapshot of the policy data is stored within claims. Payments are normally processed by a disbursement system such as FS-CD. The Business Rule Framework (BRF) is used in over a 100 events. BRF is a Runtime and Maintenance Environment for the Processing, Implementation and Configuration of Technical and Business Rules.The runtime processing of rules is Event driven and the maintenance environment is used to build, configure and maintain these rules. A set of rules is associated with every Event and when this Event is raised at runtime, the associated rules are processed. Rules comprise of Expressions and Actions. All participants of a claim are stored in the SAP business partner. Claims can also be created and changed via direct input.

2 Sizing Fundamentals and Terminology

SAP provides general sizing information on the SAP Service Marketplace. For the purpose of this guide, we assume that you are familiar with sizing fundamentals. You can find more information at http://service.sap.com/sizing Sizing General Sizing Procedures. This section explains the most important sizing terms, as these terms are used extensively in this document.

Sizing
Sizing means determining the hardware requirements of an SAP application, such as the network bandwidth, physical memory, CPU processing power, and I/O capacity. The size of the hardware and database is influenced by both business aspects and technological aspects. This means that the number of users using the various application components and the data load they put on the server must be taken into account.

Benchmarking
Sizing information can be determined using SAP Standard Application Benchmarks and scalability tests (www.sap.com/benchmark). Released for technology partners, benchmarks provide basic sizing recommendations to customers by placing a substantial load upon a system during the testing of new hardware, system software components, and relational database management systems (RDBMS). All performance data relevant to the system, user, and business applications are monitored during a benchmark run and can be used to compare platforms.

SAPS
The SAP Application Performance Standard (SAPS) is a hardware-independent unit that describes the performance of a system configuration in the SAP environment. It is derived from the Sales and Distribution (SD) Benchmark, where 100 SAPS is defined as the computing power to handle 2,000 fully business processed order line items per hour. (For more information about SAPS, see http://www.sap.com/benchmark SAPS).

Initial Sizing
Initial sizing refers to the sizing approach that provides statements about platform-independent requirements of the hardware resources necessary for representative, standard delivery SAP

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Sizing SAP Claims Management - SAP Customers and Partners

applications. The initial sizing guidelines assume optimal system parameter settings, standard business scenarios, and so on.

Expert Sizing
This term refers to a sizing exercise where customer-specific data is being analyzed and used to put more detail on the sizing result. The main objective is to determine the resource consumption of customized content and applications (not SAP standard delivery) by comprehensive measurements. For more information, see http://service.sap.com/sizing Sizing Guidelines General Sizing Procedures Expert Sizing.

Configuration and System Landscaping

Hardware resource and optimal system configuration greatly depend on the requirements of the customer-specific project. This includes the implementation of distribution, security, and high availability solutions by different approaches using various third-party tools. In the case of high availability through redundant resources, for example, the final resource requirements must be adjusted accordingly. There are some "best practices" which may be valid for a specific combination of operating system and database. To provide guidance, SAP created the NetWeaver configuration guides (http://service.sap.com/instguides SAP NetWeaver).

3 Initial Sizing for SAP Claims Management

For sizing you can use the Quick Sizer (www.service.sap.com/quicksizing) by mapping the processes to component Sales and Distribution (SD). We distinguish whether claims are processed by users or through direct input.

3.1

User-based Sizing (CPU and Memory)

To size the users, take component SD and apply the following rule to map SAP Claims Management users to SD: 1 CM user = 4 SD users

3.2
3.2.1

Throughput-based Sizing
CPU

Users If claims are entered by users, take line SD-SLS and apply a factor of 20 on the number of objects per year. Every claim item is counted as one item in the respective column. For example: 1,000,000 claims per year, each with an average of 2 items, would be entered as follows in the Quick Sizer: Sizing element SD-SLS: 20,000,000 objects, 2 line items and the retention period. If every claim is changed, enter 100 in % display. If every other claim is changed, enter 50 in the respective column. Direct input To reflect claims that are created using reports or interfaces, apply a factor of 5 and proceed as above.

3.2.2

Disk Sizing

There is a small formula to calculate disk space consumption of claims. n * (25KB + m * 3KB) With nnumber of claims mnumber of claim items in a claim Example: 500,000 claims per year, each with 50 items will consume roughly 30 GB.

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Sizing SAP Claims Management - SAP Customers and Partners

3.3

Rule of thumb

We experienced that a user-based sizing might overestimate, whereas a throughput-sizing is more realistic. As a rule of thumb you can also use the following estimates based on the processing of 100.000 claims per year.

3.3.1

CPU

100-200 SAPS per 100,000 claims

3.3.2

Memory

20 MB per user. 64 Bit machines with enough memory (> 4GB) are recommended.

3.3.3

Disk capacity

Roughly 1 MB per claim or 100 GB per 100,000 claims. This includes non claims tables, for instance workflow, FS-CD,

4 Comments and Feedback

Comments and feedback on this document are highly appreciated. Please direct them to Klaus Kollmar (klaus.kollmar@sap.com).

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Sizing SAP Claims Management - SAP Customers and Partners