Customer Process & Decision Transformations

Howard Webb Director, Advisory & Consulting Prolifics

Ryan Trollip Director, Decision Management Prolifics

Agenda

Financial Services Funds disbursement Personalized interactions Credit card fraud

Healthcare Group onboarding Special needs claims

Rights Management

2

Financial Services: Funds Disbursement The Scenario

The Company: A financial services firm with $4.6 trillion in assets under administration, including managed assets of $1.9 trillion, as of December 31, 2013.

The Challenges: Intensive manual processes involved in trading, funds disbursement,

and customer service requests: redemptions, liquidations, account close outs

Multiple legacy and disjointed systems No clear visibility of the business processes from senior management

perspective Complex and cumbersome manual processes

3

Financial Services: Funds Disbursement The Approach Reduce/remove human error through workflow automation Integrate disjointed legacy systems through workflow

orchestration Visualize business processes through process modeling and begin

monitoring process execution Identify key performance metrics Provide management dashboards

Reduce complexity by extracting business rules from processes Manage rules as separate business artifacts

Technology

IBM BPM IBM ODM

4

Financial Services: Funds Disbursement The Results Reduction in human errors Dramatic improvements in process throughput Improved customer satisfaction Greater flexibility in responding to customers needs due to

extracted business rules Better scalability & reduced cost of change

5

Financial Services: Personalized Interactions The Scenario

The Challenges:

Inconsistent customer interactions / messaging across channels Ineffective cross sell and campaign reach Duplication of campaign logic & inconsistency High cost of ownership Slow to capture trends or missing opportunities

6

Financial Services: Personalized Interactions The Approach Model decisions and process Centralize decisions and workflow Implement as SOA services across all channels Implement MDM and caching Capture data via an interaction hub (Big Data) Ingratiate with analytics models

Technology

IBM BPM IBM ODM IBM IIB (fka WMB)

7

Financial Services: Personalized Interactions The Results

Consistency across channels, better customer experience 600% better cross sell Better identification of at-risk customers Reduction in cost of ownership and agility

8

Financial Services: Credit Card Fraud The Scenario The Company: Multinational financial services, principal business

focuses on processing payments between banks and merchants for debit and credit cards.

The Challenges: Slow reaction time to international fraud events Many mistakes and unnecessary complexity Limited flexibility & modularity in product offering Duplication of rules, performance issues with 6000+ TPS

9

Financial Services: Credit Card Fraud The Approach Manage

Implemented governance processes for change Implement consistent modeling techniques COE standards and naming conventions

Re-Architect Upgrade platforms, significant customizations Re-Architect system to allow for better use of IBM ODM rules

automation Consolidate rule sets & centralize

Innovate & Optimize Implement improvements to decision metrics Implement & improve what if analysis

Technology IBM BPM IBM ODM

10

Financial Services: Credit Card Fraud The Results

Reduction in “fat finger” errors Decrease false detection rate Quicker turnaround for new strategies, Improved customer

satisfaction Quicker product creation Better performance Lower cost of ownership

11

Healthcare Payer: Group Onboarding The Scenario The Company: A healthcare payer with $29.1 billion in annual

revenues, 35,000 employees worldwide, and 75 million global customer relationships.

The Challenge: Outdated, inefficient, expensive process for onboarding clients Technology obsolete Redundant data generated without a clear system of record

12

Healthcare Payer: Group Onboarding The Approach Model current state client onboarding process end-to-end

Very large, enterprise wide process Many departments involved Cross-departmental facilitated modeling sessions Reach consensus on current state

Perform data analysis mapping legacy data to business process Identify single process owner Begin capturing ‘high-level’ business decisions Identify technology gaps, mapped to business process

Technology

IBM BlueWorks Live (Phase I) Phase II :

• IBM BPM • IBM ODM

13

Healthcare Payer: Group Onboarding The Results First phase focused on non-technology related process

improvements Clarify roles & responsibilities Procedural changes Checks and balances

Reduced process checkpoints from 45 to 9 Lack of trust in the process Lack of trust across departments

Developed clear, concise roadmap for new technology Identified definitive systems of record

Improved customer service issues by providing more timely, accurate status

14

Healthcare Payer: Special Needs Claims The Scenario

The Challenge: Partially manual processing of complex dual eligible claims Expensive vendor systems Restricted ability to scale

15

Healthcare Payer: Special Needs Claims The Approach

Develop comprehensive business architecture Focused on business processes, data (business entities), capabilities,

high-level current state technology Refine business strategy Prioritize efforts based on business strategy Decision management initiative to support:

Process simplification Agility needed to support changing market conditions & customer

demands Externalization of complex business decisions like distributions

Automate and orchestrate workflow

Technology IBM BPM IBM ODM IBM IIB - SOA Integration

16

Healthcare Payer: Special Needs Claims The Results The Results:

Business able to update the rules annually Easily change to new regulations and International Classification of

Diseases (ICD) codes Totally automated processing

17

Rights Management Firm The Scenario

The Company: A rights management firm overseeing more than 8.5 million musical works owned by more than 600,000 songwriters, composers, and music publishers.

The Challenge: Dramatic industry changes impacting business Customer demands and expectations Outdated business processes and supporting technology Alignment of technology initiatives and process improvements General lack of agility in innovation

18

Rights Management Firm The Approach Develop comprehensive business architecture

Focused on business processes, data (business entities), capabilities, high-level current state technology

Refine business strategy Prioritize efforts based on business strategy Decision management initiative to support:

Process simplification Agility needed to support changing market conditions & customer

demands Externalization of complex business decisions like distributions

Automate and orchestrate workflow

Technology IBM BPM IBM ODM IBM IIB - SOA Integration

19

Rights Management Firm The Results First customer self-service capabilities Process-orientation embraced across the enterprise Workflow automation beginning to provide business value Decisions extracted from processes and legacy systems into rules

management environment (IBM ODM)

20