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IBM BPM (Process), ODM (Rules & Events) and Mobile in Action
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“An estimated $5 billion is up for grabs for the health insurer who figures out how to make health insurance as simple as ordering a value meal from a local fast food joint.”
~ US Consumers Willing to Pay Five Percent More For Their Insurancehttp://www.thetruthaboutinsurance.com/u-s-consumers-willing-to-pay-five-percent-more-for-their-insurance/
Why shouldn’t filing and insurance claim or opening a bank account be as easy as buying a book online?
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What does it mean to be easy to do business with?
Insurance:Can I report an accident on my mobile device and automatically trigger a tow truck and taxi?
Healthcare:Can I shorten hospital stays by one or two days without compromising treatment quality?
Government:Can I speed up passport control at the border for pre-certified frequent travelers?
“Amazon, Apple and Netflix provide the customer satisfaction benchmarks to which [other business] must aspire”
~ Where is the ROI on Customer Experience?Systems & Technology Journal, 2012
Banking: Can I instantly add a family member to my credit card account?
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Your customers are no longer your customers
~ Global Consumer Banking Survey 2012,Ernst & Young
“The proportion of customers
planning to change banks has
grown by 70% since 2011”
Homeowners in the 18-34 range changed insurance carriers 2.5x more often than those 51 and older~ The Voice of the Personal Lines Consumer
Deloitte Research, 2012
“RETENTION IS THE NEW HOLY GRAIL”
~ Beyond Price: The Rise of Customer-Centric Marketing in Insurance, McKinsey & Company, 2012
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Effective business operations create superior customer experiences
Process today plays a critical role in driving customer experience initiatives…from companies looking to overhaul customer service processes to companies seeking to deliver more compelling experiences that incorporate big data analytics and real-time guidance.
The Forrester Wave: BPM Suites, Clay Richardson & Derek Miers, 2013
Customer experience is the #1 factor in both customer retention and acquisition:
“Customer-Centricity in Retail Banking”, Boston Consulting Group, 2012.
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The gap in business operations is widening
Time to open a new account in retail banking
5 minutes – best
76 minutes – worst
Availability of loan funds
2 days – best
37 days – worst
Time for conditional mortgage approval
15 minutes – best in class
4 hours - median
Source: Boston Consulting Group, The “New New Normal” in Retail Banking, 2012
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InstantAt Internet speed
47% of online bank account opening applicants don’t successfully complete the process and fund their accounts
InsightfulTargeted and relevant
47% say it frustrates them when companies don't use the information they have to make interactions and offers more relevant
InsightfulTargeted and relevant
47% say it frustrates them when companies don't use the information they have to make interactions and offers more relevant
SeamlessInterconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up from 21% in 2011
SeamlessInterconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up from 21% in 2011
What do you need from your processes in a customer-centric world?
Processes must be:
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New forces are disrupting how companies do business
Mobile requires process reinvention
Forrester forecasts that companies will spend about $900 million on
mobile process reinvention services in 2013 and up to $2.7 billion in 2014
$3.6B spend by
2014
Cloud deployments force companies to rethink their processes
Gartner ranks Business Process as a Service (BPaaS) as the fastest
growing cloud segment with 47% annual growth
47% growth in cloud
processes
Socially-enabled processes drive increased productivity
According to McKinsey, social technologies, when used within & across
enterprises, can raise productivity of high-skill knowledge workers by 20 to 25%
25% productivity
improvement
Big data drives insight into processes
McKinsey found government administration could save more than
€100 billion in operational efficiency improvements alone by using
big data
€100B
government savings
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Marie Wieck launched Smarter Process to 7,000 people at Impact
IBM’s approach for reinventing business operations
- to enable greater customer-centricity
- in the age of mobile, social, cloud and big data
- while driving efficiency and optimization into end-to-end processes
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IBM capabilities for Smarter Process
Enterprise Content Management
Business Intelligence
PredictiveAnalytics
Master Data Management
Service Oriented Architecture & Integration
Industry Solutionsand Accelerators
Industry and Functional Consulting Expertise
Managed Business Processes
GovernmentBanking EnergyHealthcare TelecomInsurance Transport
Case Management
Business Process Management
Operational Decision Management
Operational Intelligence
Mobile Social Cloud Big Data
Retail
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Go to http://SmarterProcessDemos.com for YouTube & Downloadable Demos!
Customer-centricity requires a cross-functional approach
The new triumvirate: Operations, IT and Line of Business
and business unit leaders
and technology leadersand cross- functional
business leaders
PresidentSVP/GM of Operations
Chief Transformation OfficerChief Innovation OfficerChief Customer Officer
Chief Risk Officer…
VP of Claims ProcessingVP of Retail Lending
VP of Commercial LoansVP of Outpatient Services
VP of Power Delivery Services
Chief Technology OfficerVP of Software DevelopmentEnterprise ArchitectIT Architect
Successfully attracting and retaining customers requires companies to think and act cross functionally.
~ Adam Klaber, Managing Partner Emerging Markets,
IBM GBS
At HCF we have found that delivering a superior customer experience requires tight partnership between operations, IT and the various lines of business.
~ Stephen Nugent, General Manager of Operations,
Hospitals Contribution Fund
“
”
“
”
Strategic Leadership: Chief Executive OfficerChief Financial Officer
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Credit card processors make updates to credit authorization and settlement rules based on business conditions and regulations
Customs officers make updates to import fees based on new tariff schedules
Insurance underwriters update insurance coverage rules based on changing risk conditions
Loan officers make updates to new loan requirements based on regulatory changes
Business experts can directly make changes to business rules
Business users can make changes to the rules that represent business practices, policies and
regulations
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90%improvement
Lincoln Trust realized a 90% reduction in customer complaints caused by process delays
Eliminated paper & lost documents; Estimated $3M in annual savings
Business process management yields significant benefits
3000Average users
per day
3000Average users
per day
Banco Espirito Santo has 200 simple processes in production with 80,000 process instances in 6 months
3000 average users per day running on the processes
300%ROI
Horizon Blue Cross Blue Shield generated an average of 300% ROI on each internal process improvement project
Reduced processing time for claims by 20-30 minutes each
$594Million in savings
NYS Tax generates $594 million in cumulative savings over 5-year period, with ROI of 1,461% over same period
$117M in annual revenue; $1.45M in annual cost savings
AccountAdministration
InvoiceReconciliation
Teams
ExecutiveManagement
Finance & Ops
ExecutiveMgmt
Risk Management
Teams
CustomerService
Finance and Ops
Rules
Rules Rules
Account
Admin
Improve business efficiency for innovation with Smarter Process
Inefficient working environment
Incomplete or inaccurate data flow
Inconsistent prioritization
Lack of control over the process
Poor visibility into process performance
Automate workflow & decision making
Reduce errors and improve consistency
Leverage existing systems and data
Streamline processes and initiate actions
Real-time visibility and process control
Typical process problems Bring order to the chaos
Billing
ERP
Imaging
CRM
CustomerService
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Simple and intuitive process discovery and design
Browser based interface empowers everyone to participate in the discovery and documentation of business processes
Easily visualize and model each process to help understand bigger picture
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Collaborate on process design & execution through social interaction
Work together on the same tasks via real-time interactions; reach out to experts to help complete tasks; monitor and perform ad-hoc actions through activity streams
Collaborate with experts that are currently logged on, or create notes for view upon return for timely completion of tasks
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At a glance visibility into team work
Manage work and team performance
Review work across teams
Manage work across teams
Drill down into individual team member view
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Optimize your process with visibility and analytics
Visibility into work-in-progress providing the ability to take corrective action when necessary
Detect bottlenecks and performance thresholds and display them visually
View into process performance
Analyze process performance to uncover areas for improvement
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130 milliseconds
per transaction
MasterCard processes each payment transaction within 130 milliseconds per request
43,000 transactions per minute; Responds to fraud threats within hours
Operational decision management yields significant benefits
96%straight-through
processing
96%straight-through
processing
Swiss Customs achieves 96.5% straight-through processing to validate electronic customs declarations
200,000 declarations daily; Over 700 business rules
8000transactions per second
Visa Europe handles up to 8000 credit card payment authorizations per second across Europe
60 rule changes in 13 months; Over 30,000 business rules
300%improvement
WorkSafe Victoria sees 300% improvement in payment times to workers compensation treatment providers
85% straight-through processing; Over 2,000 complex rules
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Externalizing decisions from applications into business rules Manage decision logic independently from applications
Business RulesBusiness Rules
Application Application
Decision logic
Natural language rules can be easily read
Externalized rules are easy to change
Centralized rules enable reuse and consistency
Rules written in software code cannot be read by business people
Hard coded rules are difficult to change
Rules intertwined within applications cannot be reused by other systems
Without Decision Management With Decision Management
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Rules represent business practices, policies and regulations
Business Practices:
Fundamental operational tactics in daily business
Example:
Healthcare Fraud Detection
Policies:
Mandatory instructions for organizational safeguards
Example:
Insurance Risk Assessment
Regulations:
Externally imposed laws that must be complied with
Example:
Sales Tax Collection
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Business users can easily read and make updates to rules
Natural language syntax
Automatic completion
Rule authoring made simple with natural language syntax
Capture complex rule conditions in a Decision Table
Equivalent action rule Equivalent action rule
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Business users can easily collaborate on business rules
Automatic notification
Social communication post
The Activity Stream enables easy collaboration in the context of the activity
Overview of the main changes that occurred between 2 snapshots
Side-by-side comparison of project snapshots to visualize changes
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Input Data
Expected Results
RulsetTests
Simulate & Test rules for what-if scenarios
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Abucreate a
Snapshot
John Create a
Snapshot
A BaselineIs automatically
created
JohnRun a
Simulation
AdamDeploy
On prod2
Abu Run
UAT scenarios
Joe CreateComprehensiveBase Premium
John CreateRoadside
Base Premium
Abu DeployFor UAT
Williams & Averellapprove
the release
Bea updateComprehensive
Discount
John CreateRoadsideDiscount
Release is Complete
Release is In Progress
AdamDeploy
on prod 1
PaulCreate aRelease
Release objectives are documented
To complete, a Release must be reviewed and approved
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Release has status
Rule management activities occur in the context of a release
4
Release has an owner
Changes and deployments related to a specific release
Decision governance framework
Leverage IBM Worklight adapter sample to develop, test and deploy business rules applications for mobile devices.
Client device invocation enables end users to leverage decision services taking advantage of mobile specific features like geo-location and device information
Decision Server now provides a Representational State Transfer (REST) application programming
interface (API) for ruleset execution
Decisions on the goRESTful API and IBM Worklight Adapter for mobile invocation of business rules
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Top 20 Smarter Process Use Cases: From #1 to #10
A large US bank achieves faster loan origination with 85% straight-through processing
HCF reduces claims processing times by 93% and increases market share by 56%
Jet Airways reduced reporting errors and regulatory errors by 80%
Castilla y Leon regional government improves the speed and accuracy of social services payments
MasterCard speeds up creating new fraud rules from days to hours
Regulation & Compliance Management Fraud & Risk Management
Claims Processing Eligibility Determination
Tata Sky on-boards 1M customers on its satellite TV network in 1 year
Hiscox reduced development effort by 70% to create a dynamic website for real-time insurance quotes
Visa Europe handles up to 8,000 payment transactions per second
Customer Care & Insight Payment Processing
The Ottawa Hospital speeds up patient flow through the hospital improving quality of care
Underwriting Healthcare Process Management
ASE speeds up unemployment benefit calculations from 15 minutes to 10 seconds
Credit & Loan Processing Pension & Benefits Management
Top 20 1-10
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Reliance Life’s self service portal reduced costs by 30%, enabling policies for low income households
BNP Paribas targeted the right customer with the right product and increased customer satisfaction
MVV Energie enables customers to automatically optimize consumption to minimize their power costs
Hanson Cements created a single view of the current training status of all team members
The City of Madrid reduced emergency response times by 25%
Power Grid Management Citizen Safety & Security
Cross-sell & Up-sell Training & Certification Management
University Hospitals Birmingham reduced recruitment cycles by 30%
NY State Tax saved the state more than $889 million, while allowing it to process refunds faster
Yansha department store reduced order lead time from 2.5 days to 4.5 hours
Customer & Employee Onboarding Order Management
Odyssey Logistics & Technology increased the productivity of its for logistics operations by 300%
Tax Collection Transportation Management
Accovia enabled travel booking engines create real-time dynamic packaging of vacation activities
Customer Self Service Dynamic Pricing & Bundling
Top 20 Smarter Process Use Cases: From #11 to #20
Top 20 11-20
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Go to http://SmarterProcessDemos.com for YouTube & Downloadable Demos!
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Smarter Process has received strong support from analysts
“With Smarter Process, IBM is the first megavendor to introduce an integrated collection of hardware, software and services offerings designed to facilitate intelligent business operations.”
Gartner : Michele Cantara & Teresa JonesIBM Smarter Process Expands to Transform Business Operations
“Smarter process seems to be more about raising the top line, leveraging continuous engagement with the customer in the age of mobile, social, cloud, and big data… Smarter Process is an interesting story, and one that IBM can tell better than anyone else.”
Bruce Silver AssociatesIBM Impact Makes Way for Smarter Process
“BPM in some form has been a significant feature of the previous two IMPACT events, and this year its position was elevated even further – although IBM is now using a different term to describe it… Partly the shift to ‘Smarter Process’ is a result of IBM being a victim of its own success regarding its use of the term BPM.”
Neil Ward-DuttonMoving IBM's $100 Billion Needle with Smarter Process
“Big Data, cloud, social and mobile is driving change in the Smarter Process portfolio. In particular it means that process efficiency is no longer enough to guarantee success – you need processes that are effective also.”
James TaylorSmarter Process and Decision Management Updates
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Gartner defines 10 core components of an iBPMSIBM Smarter Process is 10 for 10!
Source: Gartner Magic Quadrant for Intelligent Business Process Management Suites, 27 September 2012
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Install base of over 5,000+ active implemented customers and 800+ business partnersInstall base of over 5,000+ active implemented customers and 800+ business partners
Leader in Gartner’s Magic Quadrant for Intelligent Business Process Management Suites and leader in the Forrester Waves for BPM Suites and Dynamic Case Management
Leader in Gartner’s Magic Quadrant for Intelligent Business Process Management Suites and leader in the Forrester Waves for BPM Suites and Dynamic Case Management
#1 market share in Business Process Management (BPM) and Business Rule Management Systems (BRMS) according to Gartner and IDC
#1 market share in Business Process Management (BPM) and Business Rule Management Systems (BRMS) according to Gartner and IDC
Global Business Services and ISSW established the Smarter Process Center of Competency (CoC) to provide deep expertise and create repeatable Smarter Process assets
Global Business Services and ISSW established the Smarter Process Center of Competency (CoC) to provide deep expertise and create repeatable Smarter Process assets
Why IBM for Smarter Process?
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YouTube & Downloadable Demos SmarterProcessDemos.com
Trial IBM Blueworks Live
Attend a Proof-of-Technology Lab
Hold a Discovery Workshop
Plan a Quick Win Project
ibm.com/bpm
Get started today!
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Merci
Grazie
Gracias
ObrigadoDanke
Japanese
French
Russian
German
Italian
Spanish
Brazilian Portuguese
Arabic
Traditional Chinese
Simplified Chinese
Thai
Korean
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A leading US bank brings customer-centricity to loan origination
Challenges
Onboarding new customers took several days for the average loan
Inconsistent customer experiences as employees interpreted written policies differently
“Our existing loan origination process became a potential obstacle to unifying operations. Now, the customer experience is consistent and we can onboard new customer faster.”
~ IT Architect, A leading US Bank
Faster loan origination with 85% straight-through processing
Solution
Automate loan processing operations and increase straight-through processing prioritizing human interactions for exception flows
Combine 17 different legacy systems together with IBM BPM, IBM ODM and IBM ECM
Benefits
Instant: Faster customer onboarding and a more consistent customer experience
Seamless: Consolidated the operations of a new acquisition and created a single process flow for all loan processing centers
Insightful: Automated decision making in 85% of the loan approval process
Back to Top 20
US bank
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Hospitals Contribution Fund achieves same day claims payments
Challenges
Settle medical and hospital claims on the same day
Pay ancillary claims in real-time
Move to a paperless claims management system
“At HCF we have found that delivering a superior customer experience requires tight partnership between operations, IT and the various lines of business.”
~ Stephen Nugent, General Manager - Operations, Hospitals Contribution Fund
Reduces claims processing times by 93% and increases market share by 56%
Solution
Business Process Management and Business Rules streamline claims processing
Analytics enabled rapid identification of risk patterns and trends
Benefits
Instant: Reduced medical claims processing times by 93%, from 3 weeks to 1 day
Seamless: Interconnected claims payment systems that brings together providers and payers
Insightful: Early identification of high claiming members allows for preventative healthcare while reducing costs
Back to Top 20
Hospitals Contribution Fund
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Challenges
Comply with EU mandate to reduce carbon footprints through the Emissions Trading Scheme
Need to accurately measure carbon footprint and create reports for faster decision making with audit trails for transparency
Accurately calculate individual aircraft emissions for the entire fleet, using flight records and fuel usage data
Solution
Using IBM Case Manager, Jet Airways automated the calculations and analysis process to determine the best options for buying carbon credits and allowances
Benefits
Instant: Reduce time to compliance by 75%
Seamless: Compared flight records and fuel usage data contained in multiple systems ranging from internal aircraft systems to regional navigation data and flight records
Insightful: Instead of fleet-wide calculations, the solution analyzed credits to the aircraft level and can even exclude fuel used during maintenance activities
Jet Airways streamlines its compliance on carbon credit regulations
Reduced reporting errors and regulatory action by 80%
“Calculations and predictions enable the airline to plan ahead, allowing it to manage routes more efficiently, or to buy offsets and credits when necessary, to help ensure compliance with the EU ETS .”
~ Manish Dureja, Vice President of Marketing, Jet Airways India
Back to Top 20
Jet Airways
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Challenges
Tata Sky sought first-mover advantage by rapidly launching its satellite broadcast service in India
Meet ambitious growth and market penetration goals with excellent customer service
Solution
Using IBM BPM and Message Broker, ISSW and IBM Business Partner, TCS, built a customer onboarding system that enabled faster service installation & immediate activation
Benefits
Instant: Launched the direct-to-home satellite TV service within 6 months with over 1M activations in the first year
Seamless: Provided seamless integration of customer service across all channels including call centers, over-the-counter or via the web
Insightful: The system customized content for local markets to accommodate regional needs
Tata Sky onboards 1M customers on its satellite TV network in 1 year
Achieved the fastest growth rate in the world for satellite TV
"Tata Sky is the first direct-to-home satellite company across the globe to achieve the significant milestone of crossing one million connections in the first year of our operations and we are confident of achieving the eight million mark as well.”
~ Chakrapani Perangur, CIO, Tata Sky
Back to Top 20
Tata Sky
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Hiscox Insurance provides real-time online quotes
Challenges
Manage the business policies for eligibility, underwriting and rating to generate real-time, online insurance quotes
Bring insurance products to market across different channels
“The WebSphere solution gives us a single, comprehensive platform for rule-driven business process management. Over the long term, we plan to replace our legacy ratings systems with this unified solution and harness our service-oriented architecture to deliver even greater standardisation and control across all business units, products and channels.”
~ Chris Waters, Head of Architecture, Hiscox IT
70% less development effort to create and maintain a dynamic website for real-time insurance quotes
Benefits
Instant: Provide real-time online direct insurance quotes in multiple US states – giving it a head-start on the competition and triggering significant business growth
Seamless: Provide general liability, professional liability and business owners’ policies to companies in 50 industries across 24 U.S. states
Insightful: Dynamically generate the questions on the direct insurance quote website based on customer responses
Solution
Hiscox used IBM Operational Decision Manager to build a central repository for rules governing eligibility, underwriting and rating, which integrated with multiple web and call center systems
Back to Top 20
Hiscox Insurance
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ASE improves customer service delivering unemployment benefits
Challenges
Reduce turnaround time of the daily benefit entitlements process
Improve customer service as a differentiator in a market of similar products
Improve agility and auditability to combat changing regulations
“While working with IBM, it became apparent that the IBM offerings would support our goal of remaining the market-leading unemployment insurance provider in Denmark.”
~ Carsten Molgaard, Chief Operating Officer, ASE, Denmark
Return-on-Investment in 18 months
Solution
Implemented BPM and ODM through the Quick Win Pilot program
ODM automated the benefit calculation process, while BPM separated the benefit process from legacy applications
Benefits
Instant: Decreases time required to calculate entitlements from 15 minutes to 10 seconds
Seamless: Automated 80% of benefits calculations while allowing IT to meet business needs
Insightful: Reduce business risk by monitoring complex decisions run through thousands of rules
Back to Top 20
ASE
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Castilla y Leon regional government administers social programs
Challenges
Dramatic increase in number of new applicants for social services benefits under new Spanish law
New, social services introduced, with precisely defined, complex eligibility criteria
Consistently apply the same criteria to all citizens
“By combining the strengths of IBM Software and services, we are dramatically reducing the time to process benefits, allowing the staff to put more focus on handling exceptional cases.”
~ José María Molina, Project Director, IT Department Social Services Management, Junta de Castilla y León
Serves over 50,000 people including the disabled and elderly; Provides child protection services
Solution
Business rules based decision service to score applications and assess eligibility
Centrally managed content repository to give all case managers access to the same information for timely service
Benefits
Instant: Automates the processing of the paperwork, allowing agency staff tofocus their time on exceptions
Seamless: Fair decisions are applied through consistent scoring and rules-based eligibility criteria across all agency canters
Insightful: Powerful, user-friendly interface allows case managers to review, validate and maintain cases directly to confirm compliance
Back to Top 20
Castilla y Leon regional government
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MasterCard combats fraud threats in hours rather than days
Challenges
Quickly detect the less than 0.1% of fraudulent payment transactions from over millions of payments
Change fraud rules dynamically to handle new emerging threats
“Every time we wanted to change or create rules, we had to perform a full development cycle, getting the requirements ready, testing them into regression. We had to find a way to do this a lot more quickly. You can’t tell a bank, ‘There’s a fraud attack and we’ll help you in a week from now.’”
~ Johann Gerber, Group Head, Global Network Products, MasterCard
43,000 payment transactions each minute and a total of more than 23 billion transactions each year
Solution
Business rules based approach to implement fraud detection using ODM
IIB and Message Broker forms the messaging backbone to carry high volume payment transactions
Benefits
Instant: Faster fraud rule creation and deployment, down from days to hours
Seamless: Extends fraud detection visibility to several business departments at member banks
Insightful: Enables checks and balances in the fraud management system, helping to mitigate risk
Back to Top 20
MasterCard
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Visa Europe unifies payments across 36 countries
Challenges Needed a scalable, automated payment authorization
and settlement system for payments across Europe
Regulatory requirement to unify payments for the complex European market with multiple currencies and 36 countries
“While we could have continued to use the global Visa Inc clearing and settlement platform, we saw the opportunity to create a far more capable solution and seized it”
~ Justin Snoxall, VP, Head of Development Services, Visa Europe
Adapt to regulatory changes 3X faster; handle up to 8,000 payment transactions per second
Benefits
Instant: 3x faster time-to-market to adapt to new regulatory changes
Seamless: Support over 500 different payment transaction types across 36 different countries
Insightful: Simplifies the handling of over 10,000 validation policies and 20,000 fee calculations
Solution
IBM Operational Decision Manager to simplify the creation and management of over 30,000 rules
Reduces the cost of maintaining business logic by over 25%
Back to Top 20
Visa Europe
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The Ottawa Hospital provides patient-centric care
Challenges
Needed patient focused processes to improve quality of care with better visibility
Need to improve key metrics: Patient wait times, Discharge rates, Instances of relapse
“What we are doing is putting process orchestration and process models in place, so that you can literally see the characteristics of the hospital system… and you can then influence that.”
~ Dale Potter, Senior VP and CIO, The Ottawa Hospital
Goal: Top 10% performer in Quality of Care and Patient Safety in North America
Benefits
Instant: Faster consults and treatment through the electronic closed-loop consult service
Seamless: Improvements in patient flow through the hospital and easy access to patient information
Insightful: Benchmarking process execution to use historic and real-time data to make better patient care decisions
Solution
BPM and Business Rules to create a ‘Circle of Care’ visual interface improves communication and collaboration within the care team
Back to Top 20
The Ottawa Hospital
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30% reduction in operating costs, enabling the distribution of low cost policies to rural, low-income households
Benefits
Instant: Accelerated new product launch by 75% and product development by 50%
Seamless: Evolve business model for broader market base for growth compared to competitors
Insightful: 30% reduction in operating costs, enabling the distribution of low cost policies to rural, low-income households
Solution
Reliance uses IBM BPM, MDM and WMQ to build a comprehensive self-service portal solution
Lifeline, Reliance’s self-service portal, has lowered operational costs by 30% while making the customer experience more streamlined and transparent
“While they were all completely thrilled with the concept, the only question in people’s minds was whether it could actually be executed, since nothing like it had yet been done in the Indian market.”
- C. Mohan, Chief Technology Officer, Reliance Life Insurance Company Limited
Reliance Life achieves 100% growth in new business
Challenges
A new entrant into India’s newly privatized life insurance market sought to transform the way insurance is sold to reach the masses.
Reach low income, rural customers
Back to Top 20
Reliance Life
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BNP Paribas provides customers with personalized services
Challenges
Quickly construct grouped offers mapped to customer requirements - providing home insurance with a mortgage
Personalize fees based on the customer’s profile and service channel - giving discounts to some clients
Develop multi-brand customer loyalty offerings - waiving a monthly fee for a specified period
Targeting the right product to the right customer to increase customer satisfaction
Benefits
Instant: Create new offers and make product changes in near real-time.
Seamless: Customers receive personalized offers through any service channel: credit card renewals automatically detect eligibility for premium services
Insightful: Target the right product to the right customer to increase customer satisfaction
Solution
Business Rules define eligibility and target the right product or offer to the right customer
Master Data Management provides the single repository of product and pricing information
“Every bank provides packages to their customers… But we can really target the right product to the right customer. If you can provide the best product for each customer’s needs, the customer will be satisfied and will reinforce loyalty with the bank…”
- Vladimir Milojkovic, BNP Paribas
Back to Top 20
BNP Paribas
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MVV Energie creates a smarter energy market
Challenges
Create a marketplace for energy allowing customers to choose from renewable and local sources of power
Enable customers to sell power back to the grid from individual power generation
“With IBM’s experience and technology, we’ve made a major stride toward realizing our vision of a smarter grid. We see the solution as an enabler of smart grid services, a virtual marketplace where all the key elements needed to build a smart grid can be traded.”
~ Dr. Britta Buchholz, Head of grid and plant planning, MVV Energie AG
Responds to the German governments challenge of building an “Energy System of the Future”
Solution
GBS designed processes to support new, flexible relationships among generators, distributors and consumers of power
BPM simplified billing and metering and IIB was used to integrate grid devices and power meters
Business rules in ODM determine the best power utilization patterns for individual customers
Benefits
Instant: Provide real-time information to consumers on the cost and options for power
Seamless: Allows customers to buy their power from distributed local sources reducing transmission losses
Insightful: Enable ‘Distributed cooling storage’ to automatically schedule industrial refrigeration power consumption during the time of day with lowest costs
Back to Top 20
MVV Energie
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University Hospitals Birmingham speeds recruitment times
Challenges Recruitment processes at UHB could take up to 26 weeks
and involve considerable paperwork
Needed to streamline recruitment processes to reduce administration time and cut agency staff costs
““From the HR department’s point of view, we have introduced a ‘traffic light’ RAG rating system of key performance indicators for each stage in the recruitment process, so we can see which areas are improving and which need more attention.”
~ Suzanne Hartshorne, Deputy Director of HR at UHB
Reducing longest recruitment cycles by 30%, with goal of reducing by over 50%
Benefits
Instant: Cut the longest recruitment cycles by 30% (from 26 to 18 with), with an ultimate target of over 50% (down to 12 weeks)
Seamless: Consolidated the systems used for recruitment, so processes from finance, job advertising and interviews are integrated for simplicity
Insightful: ‘Traffic light’ rating system to assess KPIs to improve each stage of the recruitment process
Solution
Working with IBM Business Partner Axispoint, UHB reengineered their processes using IBM BPM and built a new system for staff recruitment
Back to Top 20
University Hospitals Birmingham
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New York State Tax collects taxes more effectively and efficiently
Challenges Combat sophisticated tax evasion techniques that can
cost the state millions
Reduce processing time for the refunds of honest taxpayers
5 year ROI of 1,461% with a cumulative benefit of $594M over the period
Benefits
Instant: Saved the state more than $889 million, while allowing it to process refunds faster
Seamless: Process over 24 million business and personal tax returns each year, collecting more than $90B in tax revenue
Insightful: Maximize the amount of tax revenue collected
Solution IBM BPM, Monitor, MDM and Global Business Services
work together to increase the state's tax revenue by identifying which tax returns should be audited and investigated, which refunds should not be paid and how best to collect unpaid back taxes
The solution Improves customer service and increase staff productivity
“The system allows us to process refunds faster, getting the money to the citizens of New York quicker.”
~ Tim Gardinier, Manager, Data Warehousing Unit, New York State Department of Taxation and Finance
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New York State Tax
54
Accovia enables dynamic packaging and pricing of vacations
Challenges
Consumers demand more options and travel choices; dissatisfaction with pre-priced vacation packages
Create custom vacation packages through self-service booking engines
Quickly add new vacation options
“To offer real-time dynamic packaging, we needed to build our solution on a foundation that reacts quickly to the market. ILOG BRMS offers functionality that allows users to manage their own rules using the routines of their web application.”
~ Jean Marie Grange, Director of Architecture, Accovia
Adapts to changing customer vacation buying behavior – from travel agents towards self-service
Solution
Business rules solution to dynamically manage flights, accommodations and on-site vacation options
Two tier customization that allows seasonal vacation development and tactical daily price variations
Benefits
Instant: Reduced the time required to build new vacation products from months to weeks
Seamless: Increased customer satisfaction by enabling booking engines to meet traveller demand for real-time dynamic packaging
Insightful: Increased competitive and pricing agility
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Accovia
55
Hanson introduces an intuitive training management process
Challenges
Needed an intuitive process for requesting, managing and budgeting employee training courses
Easily distinguish between mandatory training for health and safety and developmental training
Needed the ability to schedule unplanned training requests
“It is much better than the old training management system - The whole process is at least twice as quick as before. If you are a manager who has a large team reporting to you, you can now see everyone’s training status in seconds, so it’s a huge improvement.”
~ Gareth Price, Technical Director, Hanson Cements
Simplifies cement manufacturer’s compliance to regulation and improves safety procedures
Solution
Applied BPM to model, deploy and monitor new training processes by orchestrating services from multiple existing IT systems
IBM business partner Axispoint worked with the HR stakeholders to create the new training processes
Benefits
Instant: Enables unplanned training requests to be scheduled quickly and with more flexibility
Seamless: Standardizes training requirements across the company compared to a more departmental approach
Insightful: Helps managers easily identify new training that helps employee development
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Hanson
56
City of Madrid responds to emergency situations faster
Challenges
Create an advanced emergency command center for the city of Madrid
Organize a unified response to incidents across all emergency first responders
Adaptable system that meets fast-changing needs without disruption to vital services
“Commanders are now able to understand how complex and/or multiple incidents affect the entire region. We have more flexibility to innovate in our day-to-day operations, but we are also better equipped for any major challenges the future may have in store.”
~ Fernanco Garcia Ruiz, Head of innovation and development, Department of Security, City of Madrid
Reduces emergency response time by 25%
Solution
Emergency response processes are built and managed using IBM BPM
WebSphere MQ is used as the messaging backbone that connects all responders together
Benefits
Instant: Reduces emergency response time by 25%
Seamless: Enables end-to-end coordination of emergency and municipal assets
Insightful: Commanders can understand how complex or multiple incidents affect the entire region
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City of Madrid
57
Yansha department store improves order management
Challenges
Increase competitiveness against local retailers and new foreign competitors
Provide real-time visibility into operations with KPIs such as order acceptance rate and on-time delivery rate
Provides suppliers with information on customer buying behaviour and sales trends
“Exchanging our data and interacting closely will enable us to respond to the market appropriately.”
~ Mr. Ai Jie Ma, Director of Yansha Technical and Information Department
Achieved an ROI of 9 months and reduced order error rates from 9% to 1%
Solution
GBS transformed order management processes with over 1,800 suppliers
BPM created workflows for purchase orders, shipping notification, invoicing, payment and return of goods
Benefits
Instant: Reduced order lead time from 2.5 days to 4.5 hours
Seamless: Connects 1,800 suppliers into a single supply chain network
Insightful: Created a value-based supplier pricing model that uses new supplier performance metrics such as profitability, selling trends and level of activity.
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Yansha
58
Odyssey Logistics provides end-to-end transportation solutions
Challenges
Choose the best transportation options given each customer’s unique needs across the globe
Implement customized logistics processes to provide full service to customers expanding globally
“Process innovation allows an organization like OL&T to go in to a customer and figure out how to work with them versus trying to overlay a very specific rigid model on our customers.”
~ Russell Marky, Senior Vice President, Global Business Technology, OL&T
300% increase in productivity for logistics operations
Benefits
Instant: Exceed customer KPIs in areas of on-time deliveries, invoice turnaround and error-free shipping
Seamless: Provide clients with a unified logistics experience regardless of local country conditions
Insightful: 300% increase in productivity for logistics operations and reduce errors by more than 10%
Solution
Pre-constructed processes based on sets of common activities that can be quickly customized for local needs
Business rules reduce complexity by managing rate structures, routing guides and carrier information
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Odyssey Logistics