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Information Management Strategyfrom Business and IT Viewpoints

Marina KerbelPrincipal Architect / Director of Information Architecture

Mike MyhromDirector, Research, Analysis and Consulting

Thrivent Financial

The Twin Cities Business Architecture Forum (TCBAF)May 15, 2012

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Most Organizations With Formal BA And IA Practices Link Their Architectures

November 2011 “Integrated BA And IA Artifacts Are Valuable — And Hard To Find”

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Business Goal: Grow Membership thru Movie Viewers Satisfaction

Bus Arch: Define Movie Watching Capability & Roadmap

Info. Arch: Define Movie Catalog for Movie Subject Area and where and how viewers can access it

Tech. Arch: Define tech. components that enable Wi-Fi TV streaming

Without a movie catalog a viewer who wanted to see 5-stars Romantic Comedy may instead get 2-stars Horror Movie

Architecture for Business Results

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About Thrivent Financial …

• Faith-based, not-for-profit financial services

• Nearly 2.5 million members strong

• Fortune 500 organization, >$73 billion in assets under management

• Largest fraternal benefit society in the U.S.

• Full complement of financial products and services

• Mission: strengthen Christian communities by helping members be wise with money and inspiring them to live generously

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Information Management Strategy is focused on maturing key business capabilities

Cross-sell to Existing Customers

Initiative/Campaign ROI Calculation

New Customer Acquisition

High-Value Customer Retention

Agent Recruiting

High-Value Agent Retention

Underwriting

Pricing

Etc.

Example ofselecting

key capabilities

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1. Business + IT partnership. (Early and throughout.)

2. Executive support based on ROI + expanded capabilities.

3. Constant focus on supporting key business strategies.

4. A framework that’s holistic, simple, iterative.

5. Common language.

Five Rulesguide our work

partnership support focus framework language

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Business, Technology, Datagrowing complexity, diversity and volume

partnership support focus framework language

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Can’t find data. Don’t trust it.

Can’t access it.

Keep making more and not

sharing it.

Can’t leverage what’s there.

Complex, redundant,

costly.

Find data. Trust it,

access it.

Connect, share, draw

insights.

Leverage what’s there.

Easier, more efficient,

minimizing cost.

Business Strategy

Business Capabilities

Enterprise Information

Management(EIM)

partnership support focus framework language

From Business to Databringing order to complexity

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Subject Areas large groupings of data (such as Customer, Contract, Employee)

Capabilities large groupings of functions (such as Business Intelligence, Data Warehouse, Data Services, Master Data Management / Customer Data Integration, ECM, Data Governance)

partnership support focus framework language

The EIM Strategy Building Blocks:subject areas & capabilities

Building Blocks

EIM ensuresavailable for the right

people at the right time.clean, secure, unified, sharable data

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The EIM Building Blocks:subject areas

Each subject area consists of one or more sub-areas.

partnership support focus framework language

Used to:• Provide common framework and language across business and IT.• Establish clear boundary of data ownership and stewardship.• Identify common data needs across projects.• Provide basis for designing, managing and documenting data.

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EIM ensures

IT

BUSINESS

available for the right people at the right time.

Data Warehouse & Data Marts

Business Intelligence

Master Data Management (MDM) / Customer Data Integration (CDI)

Data Governance: Metadata ,Quality, Security

Enterprise Content Management (ECM)

EIM Capabilities

The EIM Building Blocks:capabilities

partnership support focus framework language

clean, secure, unified, sharable data

Data Integration / Data Services

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All data is classified into Subject Areas to logically divide it into manageable pieces.

Each subject area has Data Owner/Stewards assigned as a critical part of the Data Governance program.

Data is sourced from the System of Record or Certified Copy to ensure integrity and known quality.

Each system that maintains sharable data provides Standard Interface to this data to support common data definitions and data reuse.

Data Reusability Approach is used to identify common data needs across all projects so optimal enterprise solutions can be developed.

Information Management Strategy that defines and promotes key principles is maintained and all projects adhere to it.

EIM Principlesfor subject areas and capabilities

partnership support focus framework language

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EIM Principles:Each subject area has Data Owner/Stewards assigned as a critical part of the Data Governance program

partnership support focus framework language

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Data Requirement Matrix

Goal: Implement data solutions that are most beneficial for enterprise rather than a single project

Approach: look at data needs across programs (high priority business capabilities) and develop common data solutions, prioritized by how many programs need the same data

EIM Principle:Data Reusability Approach is used to identify common data needs across all projects

partnership support focus framework language

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2008 …….. 2012 +2007

EDW R20 – Contract Term Life

EDW R1– Customer Groups

EDW R100 – Campaigns

Compliance R2CRM R1

Compliance R1

Marketing R1 Fraternal R1 Self-Service R1

Build sharable data by subject areas

ROI due to reuse:•Cost to build for reuse = 2.5 X cost to build a silo•Positive return if 3+ consumers use the same solution

Fraternal R20Marketing R30

Roadmaps for Reuse(using EDW as Data Capability example)

Compliance R10 Marketing R40CRM R100

Consume data by Programs (Business Capabilities)

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Self Service• Leverage

MDM Customer, EDW Contracts

Enterprise Data Warehouse (EDW)

• Integrate sharable data

Policy Admin Systems

• Provide sharable Contract Data

Many Others…

Compliance• Leverage

EDW Customer, Contract, Agent data

30+ major initiatives participated in Data Reuse

CRM• Leverage sharable

MDM Customer & EDW Contract data

Marketing• Leverage

EDW Customer, Product, Agent data

Customer Data Integration (MDM)

• Provide sharable Customer data

Projects Implement Common Solutionsbased on Reuse roadmap

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1 Loyalty program rewards Members for Fraternal product ownership and engagement with organization

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Suitability analysis completed on new business contracts

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Marketing conducts analysis on customer information to identify members and prospects for offers and communications

Financial representative responds to lead sent to SalesForce, meets with member, sells new contract

Member logs on to company website to review points earned to date, updates personal preferences

Fraternal Self Service

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Marketing

CRMCompliance

Fraternal Tools

SalesForce.com

thrivent.com

Compliance Package

DW & Marts

Preferences

Sales

Segmentation

Benefit Points

Suitability

Policy Admin

Contracts

EIM Storybring order to data complexity, enable business results

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Business Use of Data:Some Examples

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1. Business + IT partnership. (Early and throughout.)

2. Executive support based on ROI + expanded capabilities.

3. Constant focus on supporting key business strategies.

4. A framework that’s holistic, simple, iterative.

5. Common language.

Five Rulesguided our work

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Information Management Strategy is focused on maturing key business capabilities

Cross-sell to Existing Customers

Initiative/Campaign ROI Calculation

New Customer Acquisition

High-Value Customer Retention

Agent Recruiting

High-Value Agent Retention

Underwriting

Pricing

Etc.

Example ofselecting

key capabilities

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Cross-Sell Model identifies each household’s likelihood to purchase each product

Each existing household assigned a probability of purchase

Households rank-ordered based on probability of purchase; placed in one of twenty groups based on rank

Lift for top group over 7x average

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Top 10%

Next 10%

Next 10%

Next 50%

Remaining 20%

4 stars

3 stars

2 stars1 star 0 stars

Household Assigned a Number of Starsfor each product based on its model group

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Household – Bob Jones – HHID: 12345

Variable Annuity

Term Life

Cash Value Life

Mutual Fund

Health

Model Output Delivered to Agentsvia salesforce for cross-sell success

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Scorecardautomatically calculates and displays ROI of each campaign / event / initiative

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Data: $80,000Model Development: $70,000Printing and Mailing Costs: $100,000Management and Agent Time: $200,000Total Expense: $450,000

Member Households Contacted: 100,000X

Projected Response Rate Range: 0.3% to 1%X

Average Value per Response: $1,800=

Total Revenue Range: $540k to $1.8M

Net Return Range: $90k to $1.35M

New Member Acquisition Model and Pilot Campaignin progress: an example of projected ROI

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1. Business+ IT partnership. (Early and throughout.)

2. Executive support based on ROI + expanded capabilities.

3. Constant focus on supporting key business strategies.

4. A framework that’s holistic, simple, iterative.

5. Common language.

Five Rulesguided our work