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LeveragingCustomer Centricity in theFinancial Services Sector

Rich HarveyPaul Asobayire

Ray JonesMarie Oak

Bruce Shearer

Jim AndersonRick BardineKevin KnappBrian ScheldTed Strader

End-to-end Sell & Support Solutions for the Financial Services Sector

Describing Customer Loyalty, Online Financial Services, and Wealth Management

Targeted for use by Client Services & IGS Principals, and S&D Client Teams

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http://www.redbooks.ibm.com/


Leveraging Customer Centricity in the Financial Services Sector

June 2001

International Technical Support Organization

ZG24-6238-00

© Copyright International Business Machines Corporation 2001. All rights reserved.Note to U.S Government Users – Documentation related to restricted rights – Use, duplication or disclosure is subject torestrictions set forth in GSA ADP Schedule Contract with IBM Corp.

First Edition (June 2001)

Comments may be addressed to:IBM Corporation, International Technical Support OrganizationDept. HQ7B Building 678P.O. Box 12195Research Triangle Park, NC 27709-2195

When you send information to IBM, you grant IBM a non-exclusive right to use or distribute the information in any way it believes appropriate without incurring any obligation to you.

Take Note! Before using this information and the product it supports, be sure to read the general information in “Special notices” on page 273.

Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixThe team that wrote this redbook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixSpecial notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvIBM trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvComments welcome. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv

Chapter 1. Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chapter 2. Industry landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.1 Current Financial Services Sector landscape . . . . . . . . . . . . . . . . . . . . 8

2.1.1 Current global Financial Services Sector dynamics . . . . . . . . . . . . . . 92.1.2 Geographic idiosyncrasies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.2 e-business prevalent patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.2.1 General trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.2.2 Financial services sector best practices . . . . . . . . . . . . . . . . . . . . . . 14

2.3 Future e-business context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.4 Global financial services future industry dynamics . . . . . . . . . . . . . . . 18

Chapter 3. Big Play concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.1 Elements of customer centricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.2 End-to-end business architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263.3 Strategic intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283.4 Market Themes/Business Capabilities . . . . . . . . . . . . . . . . . . . . . . . . 303.5 Big Plays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

3.5.1 Customer Loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343.5.2 Online Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353.5.3 Wealth Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

3.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Chapter 4. Transition opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414.1 Definition of transition opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . 42

4.1.1 Complete customer view . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434.1.2 Consistent and personalized product and service delivery . . . . . . . . 444.1.3 Customer-facing processes aligned with customer and business wants

and needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454.1.4 e-enabled interaction at multiple customer touchpoints . . . . . . . . . . 464.1.5 Advice-based customer interaction . . . . . . . . . . . . . . . . . . . . . . . . . . 48

4.2 Transition opportunity frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.2.1 Customer Loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

© Copyright IBM Corp. 2001 iii

4.2.2 Online Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504.2.3 Wealth Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Chapter 5. Solution Offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Overview of Solution Offerings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545.1 Campaign Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595.2 Channel Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625.3 Contact Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645.4 Conversions and Data Rationalization . . . . . . . . . . . . . . . . . . . . . . . . 665.5 Data Mart Design and Implementation . . . . . . . . . . . . . . . . . . . . . . . . 695.6 Dynamic Personalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715.7 Global Infrastructure Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735.8 Interactive Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755.9 Package Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785.10 Product/Portfolio Planning and Pricing . . . . . . . . . . . . . . . . . . . . . . . 805.11 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815.12 Sales Force Automation (SFA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835.13 Sell & Support Strategy and Roadmap . . . . . . . . . . . . . . . . . . . . . . . 855.14 Web Enablement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88Customer-centric business architectures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Chapter 6. Solution Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93General overview of Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 946.1 Banking Data Warehouse (BDW) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1026.2 Becoming Customer Centric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1046.3 Branding Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1066.4 Business Case Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1086.5 Business Continuity and Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . 1106.6 Business Process Organizational Model. . . . . . . . . . . . . . . . . . . . . . 1126.7 ChannelPoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1136.8 Client Information Integration System (CIIS). . . . . . . . . . . . . . . . . . . 1156.9 Common Transactional Protocols and Formats . . . . . . . . . . . . . . . . 1176.10 Contact Center Assessment (CCA) . . . . . . . . . . . . . . . . . . . . . . . . 1186.11 Content Hosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1206.12 Customer File Design and Implementation . . . . . . . . . . . . . . . . . . . 1236.13 Customer Loyalty Suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

6.13.1 Customer-Centered Strategy and Roadmap. . . . . . . . . . . . . . . . . 1266.13.2 Customer-Focused Processes and Channels. . . . . . . . . . . . . . . . 1266.13.3 Customer Loyalty Management System . . . . . . . . . . . . . . . . . . . . 126

6.14 Customer Management Assessment (CMA/CMAT) . . . . . . . . . . . . 1276.15 Customer Prospect Optimizer (CPO) . . . . . . . . . . . . . . . . . . . . . . . 1306.16 Deep Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1326.17 e-business Management System . . . . . . . . . . . . . . . . . . . . . . . . . . 134

iv Leveraging Customer Centricity in the Financial Services Sector

6.17.1 e-business Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1346.17.2 e-governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

6.18 Enterprise Customer Analytics (ECA) . . . . . . . . . . . . . . . . . . . . . . . 1376.19 Enterprise Performance Suite (EPS) . . . . . . . . . . . . . . . . . . . . . . . 1396.20 Entity Profiling Management System (EPMS) . . . . . . . . . . . . . . . . . 1416.21 e-Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1426.22 ETI•EXTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1436.23 Evoke—CRM Integration and Product Offerings . . . . . . . . . . . . . . . 1456.24 EZ Mart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1476.25 Financial Fusion Consumer e-Finance Suite (CeFS 4.0) . . . . . . . . 1486.26 Financial Services Data Model (FSDM) . . . . . . . . . . . . . . . . . . . . . 1516.27 Financial Services Information Framework (IFW) . . . . . . . . . . . . . . 1536.28 Help Desk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1556.29 Hosting/Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1566.30 Insurance Application Architecture (IAA) . . . . . . . . . . . . . . . . . . . . 1586.31 Insurance Information Warehouse (IIW) . . . . . . . . . . . . . . . . . . . . . 1596.32 Integrated Voice and Data Networks . . . . . . . . . . . . . . . . . . . . . . . 1616.33 Integration Hub. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1626.34 Intelligent Miner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1646.35 Kana Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1666.36 Knowledge Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1686.37 Market Analysis and Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

6.37.1 Market Structure Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1736.37.2 Target Audience and Market Segmentation . . . . . . . . . . . . . . . . . 1746.37.3 Customer Satisfaction, Loyalty, and Retention . . . . . . . . . . . . . . . 1756.37.4 New Product and Services Innovation . . . . . . . . . . . . . . . . . . . . . 1766.37.5 Brand Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1786.37.6 Brand Building Architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1796.37.7 Predictive Modeling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1806.37.8 Financial and Econometric Modeling . . . . . . . . . . . . . . . . . . . . . . 181

6.38 MicroStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1826.39 MQSeries/MQSFSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1846.40 netCallCentre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1866.41 Onyx ASP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1896.42 Operations and Process Design for Interactive Transactions . . . . . 1916.43 Pervasive Computing—MeB. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1926.44 Program Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1936.45 S1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1946.46 SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1966.47 Security and Privacy Design and Implementation . . . . . . . . . . . . . . 1986.48 Segmentation and Scoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1996.49 Siebel ASP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016.50 Siebel Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Contents v

6.51 Siebel IBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2066.52 Skills Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2116.53 Third Party Data Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2126.54 Underwriting Profitability Analysis (UPA) . . . . . . . . . . . . . . . . . . . . 2136.55 Vality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2156.56 Web Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2176.57 Web Selling—Globalization Planning . . . . . . . . . . . . . . . . . . . . . . . 2186.58 Web Selling—Return on Web Investment (ROWI) . . . . . . . . . . . . . 2216.59 WebSphere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2236.60 WebSphere Business Components Composer . . . . . . . . . . . . . . . . 2256.61 Xchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226Customer-centric business architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228Component Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

Chapter 7. How to engage IBM Global Services to accelerate customer centricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

7.1 Why IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2417.1.1 IGS Value Proposition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2417.1.2 Competitive advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242

7.2 Case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2437.2.1 Value-based customer segmentation . . . . . . . . . . . . . . . . . . . . . . . 2437.2.2 Targeting products and services to value-based customer

segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2437.2.3 Calculating lifetime profitability by customer . . . . . . . . . . . . . . . . . . 2447.2.4 Transitioning to a customer-centric business model . . . . . . . . . . . . 2447.2.5 Expanding consumer access using customer value management . 2457.2.6 Implementing a new wealth bank . . . . . . . . . . . . . . . . . . . . . . . . . . 246

7.3 How to engage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2477.3.1 Business needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2477.3.2 Opportunity management process . . . . . . . . . . . . . . . . . . . . . . . . . 2487.3.3 Opportunity management rules and guidelines. . . . . . . . . . . . . . . . 249

Appendix A. Listing of consultant and practice information . . . . . . . . . 255

Appendix B. Business partners and solution developers. . . . . . . . . . . . 267

Related publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271Referenced Web sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271How to get IBM Redbooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271

IBM Redbooks collections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271

vi Leveraging Customer Centricity in the Financial Services Sector

Special notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275

Abbreviations and acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

Contents vii

viii Leveraging Customer Centricity in the Financial Services Sector

Preface

This IBM Redbook describes the Sell & Support Category Solutions within the Global Financial Services Sector. Specifically, it details the Banking, Insurance, and Financial Markets industries’ driving business issues, the IBM themes and Big Plays to respond to these business drivers, and the Solution Components and transition opportunities in support of our Big Plays.

This guide is intended to serve as an internal tool, targeted to Client Services principals, IGS principals, and S&D Client teams that want to learn about and position our Sell & Support Value Proposition and Solutions for their clients.

Note that this IBM Redbook is for internal use only. It is not intended to be given to customers.

The team that wrote this redbookThis redbook was produced by a team of specialists from around the world working at the International Technical Support Organization Raleigh Center.

Rich Harvey is the worldwide FSS executive for IBM’s Sell & Support Category. He has over 15 years of experience in applying BI solutions to assist clients in using data to make better business decisions. He has recently helped a large Property & Casualty insurance company in the US build one of the largest marketing data marts in North America, as well as aiding it in implementing its database marketing capabilities and in establishing its database marketing department. Rich holds a BA from Boston University and an MPH from the Yale University School of Medicine. He is a member of the IEEE and the ACM, and is based in Waltham, Massachusetts.

Jim Anderson is a Sell & Support executive consultant in the FSS Center of Competency. Jim has over 16 years of experience in providing BI consulting services to financial service, government, manufacturing, and telecommunications clients worldwide. Prior to joining IBM, Jim held various financial management positions with Proctor & Gamble. He holds an undergraduate degree in economics from the University of Wisconsin at Madison, and resides in San Francisco.

Paul Asobayire is a BIS e-business strategy and change consultant for FSS. Prior to joining IBM, he worked for two years as a consultant with a Boston-area strategy consulting boutique. Paul holds an MA in economics and an MBA from

© Copyright IBM Corp. 2001 ix

the Yale School of Management. He lives in New Jersey, and is a native of Ghana.

Rick Bardine is a Sell & Support executive consultant in the FSS Center of Competency. He has over 19 years of experience in the accounting, financial services, and financial planning industries. Prior to joining IBM, Rick held IT management positions for a major US insurer. He holds an undergraduate degree from the College of Wooster, a law degree from Ohio State University, and a master of laws in taxation from Boston University. Rick is based in Waltham, Massachusetts.

Ray Jones is a BIS senior consultant currently representing FSS within the IGS team supporting consulting methodology for customer loyalty engagements, and is its CRM subject matter expert. He has 29 years of consulting and business management experience, recently advising multiple financial services firms in the design of contact management solutions within an e-business context. Prior to joining IBM, Ray was president of a firm advising electronic commerce clients, and a vice president of information technology for a CRM systems manufacturer. Among his significant projects were managing a voice and Internet transaction center which processed 60% of all cable TV pay-per-view orders in the US, and designing the technical architecture and operational plans for the largest automated call center in the UK. Ray is certified in change management by the Center for Constructive Change of the New England Center for Continuing Education, and majored in public administration at the University of New Hampshire. He is based in Atlanta.

Kevin Knapp is a senior consultant in IBM's e-business Strategy and Change practice assigned to the FSS US Central Region. He has over 15 years experience in retail banking, having worked for Chase, Citibank, and National City Corporation. Most recently, he operated his own consulting practice, helping middle market companies in the publishing and software development industries to increase the sophistication of their marketing and CRM efforts. Kevin holds a bachelor's degree in finance from Western Illinois University and an MBA from the Keller Graduate School of Management. He is a licensed CPA in the state of Illinois and lives in Cleveland.

Marie Oak is an executive consultant in the Sell & Support Solutions category of the FSS Industry Center of Competency. Prior to joining IBM, she was marketing director for CRM development and for BIS (data warehousing and mining) at Nationwide Insurance. She has over 22 years of IT experience in insurance and telecommunications. For the past five years she worked for a consulting firm as an IT executive within the non-IT business units to translate business needs into technical opportunities, as well as to relate how technology can be leveraged to change business processes. She holds a BSBA from Ohio State University and an MBA from Ashland University. Marie lives in Columbus, Ohio.

x Leveraging Customer Centricity in the Financial Services Sector

Brian Scheld is an FSS BIS Managing Principal focused on the e-business Solutions (eBS) of Customer Loyalty, On-line Financial Services, and Wealth Management. He has over 22 years of IT experience, with the last 15 concentrated in Financial Services. He specializes in working with clients to define and operationalize customer-centric programs by converging techniques within IBM's Customer Relationship Management (CRM), Business Intelligence (BI), and e-business competencies. He has been featured in several publications—including Technology Decisions, Insurance & Technology, and Close to the Customer—and has made presentations to many customer forums. He holds a BS in Business Administration from the University of Scranton and an MBA in Computer Systems and Information Science from Pace University’s Lubin School of Business. In 1996, he was elected to IBM's Academy of Technology. He is based in Waltham, Massachusetts.

Bruce Shearer is a global solutions executive in the Global Financial Services Sector of IGS. He has over 32 years of experience in complex real-time systems. Bruce has held positions in development and delivery of space, avionics, and military command and control systems; development and operations management positions in manufacturing logistics and control systems; and most recently has managed definition and delivery of end-to-end insurance and FSS solutions. He holds a BS in electrical engineering from Lehigh University and resides in Charlotte.

Theodore Strader is an FSS senior BIS consultant specializing in customer loyalty. For the past five years, he has been helping clients in the financial services industry align their strategy, plan their execution, prioritize their initiatives, and improve their business processes. In addition to his consulting experience, Ted has more than 15 years of experience in the life insurance and financial services industries, most recently serving as VP of marketing for a life insurance company. He has significant experience in life insurance marketing, sales service, auditing, and financial analysis. Ted earned his MBA from Duke University's Fuqua School of Business and holds an undergraduate degree in business administration from California State University at San Bernardino. He lives in Raleigh.

Editorial staffBuck Stearns was managing editor. He is a Solution Development IT Specialist for IGS Business Development at ITSO’s Raleigh Center. Prior to joining ITSO, he worked two years as a mobile employee assigned to Tivoli Services, and previously logged over 25 years in the banking and insurance industries. He has extensive experience in IT management disciplines, and holds undergraduate and graduate degrees in English from the University of North Carolina at Chapel Hill.

Linda Robinson of ITSO’s Raleigh Center was graphics specialist.

Preface xi

Alfred Schwab of ITSO’s Poughkeepsie Center was executive editor.

Tom Feichtel was project executive. He is a certified project manager for Global Sell &Support/BIS-IGS based in West Chester, Pennsylvania.

Contributing writersCindy Adiano is an executive consultant with Global CRM/CVM/Loyalty Management responsibilities based in Austin.

Lynn Arthur is an FSS solutions e-strategy manager based in New York.

Margie Bachman is an FSS solution architect covering Wealth Management and is based in Charlotte.

Bruce Baumbush is a Business Intelligence data management specialist living in St. Thomas, US Virgin Islands.

Janet Beatty is a multi-industry business development consultant in Markham, Ontario.

Steve Bello is an STSM S&D Business Architecture and Navigator expert based in Austin.

Bryan Berent is a Sell & Support worldwide mid-market category executive in Southfield, Michigan.

Rob Berini is an FSS e-business Strategy & Change principal in Charlotte.

Kirk Boothe is a BI Solutions principal consultant based in Mobile, Alabama.

Charles Burden is an SOMT Sell & Support solution architect for BIS Asia Pacific in Wellington, New Zealand.

Ron Buszko is a delivery solutions architecture for the IGS Object Technology Group in Charlotte.

David Carrigan is BIS Sell & Support Emerging Markets manager in Markham, Ontario.

Andy Cash is an FSS Global Solutions mobile Internet executive in London.

Mark Chetwood is Global FSS director of Sell & Support Solutions and is based in the UK.

Adrene Clarke is a BIS insurance associate consultant in New York.

xii Leveraging Customer Centricity in the Financial Services Sector

Chris Commons is a Conversion Business Solution Services manager in New Orleans.

Oliver Dewgard is an FSS Strategy & Change e-business consultant based in Chicago.

Robert Dick is a National Practice B F & S executive consultant based in New York.

John Evans is a BIS Insurance CoC offerings executive for FSS in Boulder.

Mari Fleming is a BIS e-banking IT architect based in London and currently on assignment to B F & S, New York

Rick Gordon is an FSS Sell & Support on-line Financial Services and e-insurance executive consultant in Atlanta.

Joel Grosh is the Americas Innovation Executive and is based in Markham, Ontario.

Matt Hasan is an FSS Customer Loyalty and CRM leader for banking and capital markets in New York.

Kevin Jackson is worldwide practice leader for the Pervasive Computing Sell & Support Solution and is based in White Plains, New York.

Gordon Jager is an FSS executive BIS consultant for worldwide Sell &Support in Minneapolis.

Cathy Lone-Dawson is the worldwide program manager for Industry Based Templates and is based in Toronto.

Bob Maden is an Insurance National Practice principal in Hartford, Connecticut.

Michael McKnight is a Web-selling Services Global Solutions leader in Somers, New York.

Hammou Messatfa is a BI practice leader in Paris.

Stefan Pappe is a worldwide Sell & Support SOMT Architect in Heidelberg, Germany.

Maureen Romanchik is a market requirements specialist with IGS Managed e-business Services in Chicago.

Evan Salop is an FSS Sell & Support Category executive in Somers, New York.

Preface xiii

Mindy Schiller is the Global Offering manager for Enterprise Customer Analytics, and is based in Tampa.

Charlie Schott is the Entity Profiling Solutions development manager for IBM’s Business Intelligence Consulting & Services in Southbury, Connecticut.

Trevor Skeels is an FSS solution architect covering EMEA and based in Leeds in the UK.

Betsy Sleight is an FSS e-business Strategy & Change senior consultant based in Charlotte.

Scott Smith is a Global Knowledge & Content Management Services managing principal in Cambridge, Massachusetts.

Chris Sowa is a consultant engagement leader SME for ROWI and Globalization, and is based in San Francisco.

Jim Sposato is an FSS e-business Strategy & Change senior management consultant from Indianapolis.

Mads Toubro is an e-commerce Web-selling Services Global Offering executive in Somers, New York.

Thomas Turkot is a BIS Sell & Support alliance manager for Microstrategy, Acxiom, & Alphablox in Chicago.

Frances West is the FSS director of Global Solutions and is based in Waltham, Massachusetts.

Fred Winegust is an FSS wireless e-business solutions liaison executive in Toronto.

Robert Zabel is an FSS e-business Strategy & Change consultant in New York.

Alexander Zekulin is a Global Sell & Support BIC&S Alliances manager in Dallas.

Support staffMargaret Ticknor is the IT support specialist at ITSO’s Raleigh Center.

Rufus Credle is a veteran Solution Development IT Specialist for IGS Business Development at ITSO’s Raleigh Center. In addition to his regular duties with other projects, he provided pro bono technical and logistical assistance as needed in the creation of this redbook.

xiv Leveraging Customer Centricity in the Financial Services Sector

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Preface xv



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xvi Leveraging Customer Centricity in the Financial Services Sector

Chapter 1. Executive summary

This chapter provides an executive overview of the key content for leveraging customer centricity across the Financial Services Sector. Here we describe the key competitive issues facing FSS clients, customer centricity (including the themes and Big Plays), engagement types, and the IBM value proposition.

Customer centricity is best understood as a continuous-loop set of activities centered around translating customer needs and wants into repeatable business capabilities that drive value. These activities are those which the customer sees and relates to—also known as touchpoints or customer interactions.

Key competitive issues in the Financial Services SectorFinancial services institutions are facing an unprecedented set of challenges today. Changes in customer behavior, the competitive environment, regulations, and market expectations are occurring that threaten their very existence, while questioning their value propositions and sources of future profitability.

Financial services executives are faced with having to absorb mergers and then deliver savings resulting from them, stock price pressure fueling expense cuts, and the need to create revenues through new enterprises and better business processes. Structural changes forced by the euro, globalization of competitors, and reduced loyalty from ever-wiser and more knowledgeable customers add to the issues facing financial institutions.

1

© Copyright IBM Corp. 2001 1

A renewed and intense focus on customer centricity throughout the business is key to addressing these issues—whether in the insurance, banking, or financial markets industry. This focus drives the growing demand for IBM solutions available through FSS Sell & Support.

InsuranceCompetitive conditions are forcing insurance industry CEOs, CMOs, and LOBs to focus on customer retention, new distribution strategies, and further cost reductions. IBM delivers solutions that increase customer retention, improve profitability, leverage multichannel distribution, and redesign claims processes and systems to improve efficiencies and service levels. We do this through people with broad and deep industry knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our insurance industry customers.

BankingFor CEOs, CMOs, and LOBs of banks, customer loyalty and distribution have become as important as product development. IBM delivers solutions that will allow firms to offer bundled wealth management services and leverage multichannel distribution for selling and servicing to enhance customer loyalty. Furthermore, IBM delivers the infrastructure for enhanced operations—including continuous 24x7 processing—as well as multichannel, multi-currency, and multi-language support. We do this through people with broad and deep industry knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our banking industry customers.

Financial marketsTrading process automation and the Internet are the primary issues facing CEOs, CMOs, and LOBs of firms in the financial markets industry. IBM offers solutions that automate all trade and settlement processes for retail investment and securities firms—including both total replacement of core back office systems and the linking of existing front, middle, and back office systems. Furthermore, IBM delivers solutions which will allow firms to offer bundled wealth management services and leverage multichannel distribution for selling and servicing to enhance customer loyalty. We do this through people with broad and deep industry knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our financial market customers.

Leveraging customer centricity in the Financial Services SectorAll of these challenges are requiring our clients to become customer-centric. To succeed as “customer-centric specialists,” financial services institutions must:

� Deliver a consistent experience across multiple channels

2 Leveraging Customer Centricity in the Financial Services Sector

� Develop in-depth customer knowledge and then act on it

� Deliver value on the customer's terms to any access point (e.g. intermediary or portal)

� Respond rapidly to customer situations and market appetite

� Respond rapidly to deploy new delivery technologies

While many clients have implemented independent customer-centric projects, they are only now recognizing that these projects must be tied together—projects which might include call centers, online banking, online insurance, and/or electronic bill payment.

IBM can demonstrate leadership in integrating the customer-centric environment in the following ways:

� By delivering a comprehensive approach rather than simply individual e-business solutions, while providing the flexibility of multiple client entry points

� By bringing together cross-sector solutions, like Customer Loyalty, Wealth Management, and Mobile Internet with the industry-specific solutions of e-banking, e-insurance, and e-invest

� By providing the right infrastructure for the “heavy-lifting” of e-business, and then applying it to specific solutions for retail financial services

Themes and e-business solutionsIn order to accelerate our clients' transformation to more customer-centric behavior, we have focused our Solutions around the following (illustrated in Figure 1-1 on page 4):

Chapter 1. Executive summary 3

Figure 1-1 IBM’s Financial Services Sector Sell & Solutions Framework

Combining these themes with market demand, FSS at a global level is focusing on three key e-business solutions:

� Customer Loyalty

� Online Financial Services

– e-insurance

– e-banking

– Mobile Internet

– Branch Renewal

� Wealth Management

While the geographies can develop different approaches for a given solution depending on market demand, each e-business solution is at the same time both FSS-specific and supported by IBM Sell & Support competencies.

Sale

san

dSe

rvic

e

Adv

ice

and

Gui

danc

eMarket Themes/BusinessCapabilities

Know the customer

Offer the right product at the right time

Provide customer access anywhere andanytime—clicks & mortar

Provide advice—based on a broad rangeof offerings

Offer the right service for the customervalue

Organize around customer-centric processes

Aggregate the customer view—across thetotal portfolio

TransitionOpportunities

Completecustomerview

e-Enabledinteraction atmultiple customertouch-points

Advice-basedcustomerinteraction

Customer facingprocesses aligned withcustomer and businesswants and needs

Consistent andpersonalizedproduct andservice delivery

SolutionOfferings Solution

Components

CustomerLoyalty

WealthManagement

e-Bankinge-Insurance Branch Renewal

Mobile Internet

IBM Financial Services Sell & Support e-Business Solutionse-BusinessSolutions/Big Plays

Strategic Intent Leveraging Customer-Centricity in Financial Services


Figure 1-2 Financial Services e-business Solutions. At the highest level, this book describes a set of e-business Solutions/Big Plays that transcend defined cross-industry market capabilities in order to deliver client value.

Engaging clients with our e-business solutionsThe FSS approach to creating customer-centric behavior combines integrated, end-to-end solutions that provide our clients with the flexibility for multiple entry points:

� There are consultancy-led engagements that begin with the big customer issues:

– What should I do about attracting and retaining my most profitable customers?

– How should I reinvent my branch to drive more revenue and profits?

We have some well-structured offerings of this type, particularly in the Customer Loyalty space.

� There are engagements that call for prepared, ready-to go solutions:

– Build and launch a new wealth bank

– Implement an insurance marketplace

– Add more personalized sales content to my online banking site

BI

CRM

Web Selling

PervasiveComputing

InteractiveBranding& Design

IBM

Sell&SupportC

ompetencies

Financial Services Sector e-Business Solutions

CustomerLoyalty

Branch Renewal

e-banking e-insurance

WealthManagement

Mobile Internet

Chapter 1. Executive summary 5

A number of these replicable Solutions are available from IBM today, and we are working with our business partners to put more of these together.

� There are engagements that call for very specific competencies and Components:

– Can you help me implement a consolidated contact center (e.g., Siebel) with my legacy systems?

– Can you help me roll new technology (e.g., Web-based) into my branch network, and then manage it to control costs?

– Can you work with S1 to implement a wealth management portal for me?

– Can you make my channels infrastructure more integrated and more robust?

Extending the IBM value propositionAnother key FSS strategy is to leverage key ISV1 relationships. We have a number of global strategic business partners that are relevant to the Sell & Support category, such as Siebel, S1, ChannelPoint, Kana, Trilogy, Evoke, and Ericsson. Each geography can have different relationships based on geographic needs and the fit of each partner to the local infrastructure. We are building the needed competencies for them with BIS, and combining these as appropriate with other IBM assets such as WebSphere business Components, MQSFSE, CIIS, and IIW/BDW to solve specific customer problems.

In order to help our clients accelerate their transformation to becoming more customer-centric, we bring a well-integrated, end-to-end portfolio of solutions, aligned to key themes, that provide the flexibility of multiple entry points and leverage our IBM assets and key ISV relationships.

1 Independent software vendor (aka Solution Developer)


Chapter 2. Industry landscape

This chapter provides an overview of the Financial Services Sector. It discusses broad trends shaping that sector today, as well as IBM’s view of the future state of financial services in general. It also identifies the challenges and issues that senior management must address in order to remain competitive and position its enterprise for future success.

The Financial Services Sector comprises disparate lines of business that are impacted differently by various macro-level trends. In writing this chapter, we recognize that significant variations exist across geographies and LOBs. We attempt to call out important idiosyncratic trends by geography and LOB as necessary; but overall, we focus on the larger Financial Services Sector.

For the purposes of this book, we define the greater Financial Services Sector to include three broad categories:

Customer Loyalty: An enterprise’s activities to derive value through customer centricity

Online Financial Services: The application of online technologies, processes, organizational structures, and business models to improve efficiency and effective delivery of financial services—including e-insurance, the new wealth bank, and the mobile Internet

Wealth Management: The aggregation of financial services that are targeted to specific, valuable customer segments and delivered through appropriate channels to maximize value to the enterprise

2


2.1 Current Financial Services Sector landscapeFinancial services institutions are facing an unprecedented set of challenges today (see Figure 2-1). Changes are occurring in customer behavior, the competitive environment, regulations, and market expectations that threaten these organizations’ very existences—questioning their value propositions and sources of future profitability.

Figure 2-1 Several major forces are reshaping the global financial services marketplace.

Financial services executives are faced with having to absorb mergers and then deliver savings resulting from them. Stock price pressures are fueling expense cuts, and revenues must now be created through new enterprises and better business processes. Structural changes forced by the euro, globalization of competitors, and reduced loyalty from ever-wiser and more knowledgeable customers add to the issues facing financial institutions.

A renewed and intense focus on customer centricity throughout the business is key to addressing these issues—whether in the insurance, banking, or financial markets industry. This focus drives the growing demand for IBM Solutions available through FSS Sell &Support.

Business/Regulatory Drivers� Globalization

� Restructuring/Consolidation

� Regulation/De-regulation

� Compression of product lifecycles

� Non-traditional competition

� Disintermediation

Reinvention ofRetailing(B2C and B2B)

Structural Bypass

EnterpriseRealignment

CustomerExpectations

TechnologyChanges


2.1.1 Current global Financial Services Sector dynamicsGlobally, the Financial Services Sector is impacted by deregulation, globalization, and industry convergence. Changing customer demographics and exponentially increasing customer expectations add another dimension to current trends. Product maturity and subsequent business model reinvention fueled by e-business trends contribute to the current dynamics of the Sector.

� Increasing deregulation of financial markets, coupled with the availability of enabling technologies, is driving businesses to integrate their national and cross-border operations to achieve economies of scale and offer a seamless value proposition to their customers. This raises the need for large multi-national financial institutions to integrate their back-end technologies, streamline operational processes, and undergo significant organizational realignment.

� Industry maturity is evidenced by the lack of innovative products and services in the Sector, together with declining profit margins. Innovation and new growth opportunities come from emerging e-business models that are driving significant cost reductions through e-enabled processes, as well as top-line growth through enhanced value propositions.

� Compression of product life cycles results from rapid innovation occurring in e-business. Time to product maturity is shortened as products are bundled with technology-enabled services and reconfigured towards specific customer needs. Thus, pure product plays result in less value and quickly become commoditized compared to offerings that combine technology and services to address consumer needs.

� Business model reinvention, with special focus on customer centricity, is driven by the compressed product life cycles discussed above, as well as the superior potential returns of a customer-centric business model. Customer- centric organizations develop in-depth customer knowledge, enabling them to tailor their services to customer situations and market appetite. They differentiate themselves through premier customer service, using significant levels of alternative delivery technologies.

� Industry convergence began in Europe—particularly in the UK, where banks have been able to offer insurance products since 1987. The US is playing catch-up, with recent deregulation allowing commercial banks to offer brokerage and insurance services. As the financial sector converges through acquisitions and strategic alliances, there is a growing need for process realignment and integration of technologies across industry lines.

� Disintermediation of the value chain has emerged as a significant competitive threat to traditional players as nontraditional competitors attack various aspects of the value chain. Nontraditional players include sales intermediaries (e-insurance broker, e-finance broker, e-market/e-exchange),

Chapter 2. Industry landscape 9

functional specialists (e-claims, agency management support, trade matching), and event mediators (home buying, auto purchases, retirement, etc.). This challenges traditional players to update their processes and technologies to compete with the newcomers—unless they want to relegate their future roles in the value chain to commodity production.

� Spiraling customer expectations are influenced by customers’ experiences of best practice servicing—not just within the financial services industry, but also in others. With the emergence of e-business technologies, customers expect their financial institutions to be able to do business however the customer chooses and at that customer’s convenience. This is driving the need for customer-centric business models which require organizations to acquire capabilities that include:

– An enterprise-wide view of the customer

– Pervasive, consistent access across all channels

– Personalized services based on individual needs

� Demographic trends, especially the aging of the baby boomers and emergence of a new wealth segment, strongly impact the Financial Services Sector.

– By 2007, baby boomers will begin to be required to draw on their retirement savings. Most of them will continue to work while doing so, thereby requiring specialized financial services to meet their unique needs

– By 2030, 25% of Europe’s population and 20% of America’s will be above age 65. This relatively wealthy segment will require wealth transfer services, and their next-generation beneficiaries will require services for managing their new wealth.

� New wealth segments are emerging due to recent economic prosperity. These segments tend to be younger, have more information available to them, and have goals and behaviors that impact the financial sector differently than the traditional wealth segment. Characteristics of the new wealth segment include:

– A tendency to be younger, with wealth accumulation rather than maintenance as its primary goal

– Shorter horizons

– A growing information overload

– Greater sophistication, better education, and more self-reliance in investment decision-making, thus requiring a mixture of self-managed and advised accounts

– Employing a mixture of passive and active investment strategies, with an emphasis on the active


– A shift from managed products (e.g., mutual funds) towards lower-cost instruments such as index funds or individual securities

– A shift from bank deposits (CDs, GICs) towards equities and other fixed-income securities (e.g., Treasury bills or bonds)

– Requiring relationships and physical presence from their institutions

– Continuing to take more responsibility for their retirement income

� Rapid growth in the number of people online is driving financial services providers to compete for their share of this market. By 2003, 40% of France (24.1 million people), 50% of the UK (30 million), and 61% of the US and Canada (168 and 15 million respectively) will be online. Worldwide, estimates are that 40% of savings, 25% of new credit card issues, and 24% of new mutual fund business will originate online. Enterprises are beginning to offer best-practice, customer-centered online services to capture this growing segment.

� Device ubiquity is evidenced by the increasing use of wireless devices. In 2000, there were 9.63 million users of wireless financial services, projected to grow to 228 million in 2005. As devices become ubiquitous and usage costs continue to decline, financial service providers are looking to service customers and build lasting relationships through such wireless appliances as cell phones and PDAs.

2.1.2 Geographic idiosyncrasiesWhereas the global trends discussed so far impact financial services enterprises worldwide, specific regional idiosyncrasies are also at play and need to be recognized:

� Deregulation is a recent phenomena in the US, with the Glass-Stegal Act—which prevented commercial banks from engaging in investment banking activities—not being repealed until 1997. Prior to this, US banks had to contend with competition in particular from European “money center” banks, which did not face such restrictions. The repeal of Glass-Stegal has meant more frantic M&A activity with the US banking sector than its EMEA counterparts.

� Whereas “bank assurers” (banks that offer insurance services) have been the norm among major banks in the UK since 1987, the US is only now witnessing the convergence of these two sectors—thanks to recent deregulation. Thus, the need to realign business processes and technologies as banks acquire insurance capabilities, and vice versa, might become more eminent in the US.

� Privacy restrictions on how businesses can use and share customer data are generally more stringent in EMEA than in North America. This will affect the


type of customer-centered business models and the extent of collaboration across industry lines that occur in EMEA as opposed to North America. The Gramm-Leach-Bliley Act, which became effective in the US in December 1999, requires financial institutions to disclose annually to a customer all personal data they share with partner institutions each time that information is shared, and then offer that customer the option to pull out. This will effectively limit the level of enthusiasm for partnering, since required disclosures threaten the perception of the “trusted advisor” relationship with banks if customers do not believe their personal information is safe with those banks.

Around the globe, individual responsibility for the accumulation of wealth and the satisfaction of health care needs (life-cycle financial management) is highly responsive to the level of government involvement in and sponsorship of programs associated with retirement benefits, health care, and other subsidy programs. Correspondingly, corporations providing retirement savings programs and health care benefits are also more likely to offer those programs in geographies where individual responsibility for life-cycle financial management is high.

Looking globally at government involvement in and sponsorship of life-cycle financial management as a continuum from the highest to the lowest level, Singapore currently has the most government involvement, followed by the Nordic countries. France, Germany, and Japan fall in the mid-range of the continuum. Australia, the UK, and South Africa fall in the next lowest range of government involvement. The US is positioned at the pole position in this continuum, with the lowest level of government involvement in and sponsorship of life-cycle management.

2.2 e-business prevalent patterns

2.2.1 General trendsIBM has identified three waves of e-business maturity on the Internet:

� Wave I companies are typically traditional enterprises that use the Internet to improve performance of existing business processes and models, seeing it primarily as a new electronic channel to create efficiencies in supply chains and distribution systems.

Technology adoption has been tactical, mainly deployed to gain cost effectiveness in current operations. A study by IBM’s e-business institute reveals that Wave I financial institutions are less confident of having a well-defined e-business strategy and strong e-business leadership.


� Wave II companies are typically pure Internet plays. They build innovative e-business models on the Web, using network technology to offer new value propositions, streamline operations, and/or disintermediate traditional market structures. These new value propositions threaten the viability of traditional players.

Essentially, Wave II providers are successfully competing in context and capturing relationships with customers, thereby relegating traditional institutions to content-provider roles one step removed from customers.

Figure 2-2 IBM has identified three waves of e-business maturity on the Internet.

� Wave I/II hybrid enterprises are now being created, mainly by traditional players whose value proposition and viability are threatened by pure players. Wave I/II players combine the innovation of Wave II business models with the best aspects of the more traditional Wave I infrastructures, thereby achieving the cost efficiencies of Wave I and positioning themselves to compete with Wave II enhanced-value propositions. Best practices vary by industry sector.

Non-traditional competitors are using e-Business and relatedtechnologies to unleash three powerful forces which re-definethe financial services industry, producing business re-invention.

Internet-enabled structuralby-pass of the currentbusiness infrastructure

Reinvention of customerrelationship-based value capture

through best-of-breedaggregation, event mediation

and agency offerings

Dramatic reductions intraditional infrastructure and

process costs

Stru

ctur

alB

y-P

ass

Enterprise Realignment

Retailing

Reinvention


2.2.2 Financial services sector best practicesThe following comprise only a partial list:

� Full service brokerage firms are now beginning to compete on the Web, and the innovators are moving to wireless access.

� Leaders in online home lending are moving to provide the full breadth of services, surrounding the home buying life event with well-designed user interfaces. Online mortgage is moving toward near real-time approvals, vastly reduced cycle times, performance guarantees, and integration into the overall home buying process.

� Retail banking providers have focused primarily on developing online enabling tools, and there is very little differentiation among providers.

However, Wave I and Wave II banks have not yet created a value proposition compelling enough to move market share dramatically or create significant new revenues.

� Leading insurance retailers are exploring Wave I and Wave II models, but significantly trail other financial services retailers in their movement to the Web.1

Insurance retailers typically have transactional and/or self-service Web functions, whereas the long-term objective is to provide trusted advice.

� While online insurance sales have been low to date, many offline sales are being influenced by information available on the Web.

In the US, direct online sales of auto, home, and term insurance were only $400 million compared to Internet-influenced sales of $1.8 billion in 2000. These figures are projected to reach $4 billion and $7 billion respectively in 2003.2

� Although banks are holding their own in attracting traffic for basic banking activities, many other nontraditional players are winning the battle in other areas of financial services:

– In January 2000, wellsfargo.com had the highest online banking visitors, but getsmart.com got the most mortgage visitors, and paymybills.com received the most visitors for credit card processing and online payments.3

– Asked the main reason why customers use online financial services, “managing finances” was by far the predominant reason. This space is dominated by nontraditional competitors.4

1 IBM Consulting2 Inteco, Garner Group, 1999; Forester Research, 1999; Piper Jaffray, 20003 Top9.com (Web sites ranked by traffic)4 Cybercitizen, 1998 & 1999


In 1998-99, of the 40% Web users in this category, 33% used AOL Personal Finance, 14% used quicken.com, 11% used Yahoo finance, and 6% used Schwab.5

� Many of the nontraditional financial aggregators and advisors focus on providing superior tools, information, and advice, while relying on partnerships with external providers for execution capabilities.

� Strong competition is emerging from established, nontraditional competitors with well-established brands in their respective industries.

� Corporate Banks have used proprietary electronic systems since the early 1980s to exchange data with their clients, mainly for cash management/payment services and custody services. As a result, corporate banks were late in starting to use the Internet.

2.3 Future e-business contextDynamic e-business (DeB) is the next phase of B2B relationships. It is an extension of the current trend for enterprises to integrate supply chain and business processes with strategic partners to achieve:

� Speed� Cost savings� Extended delivery capabilities� Outsourced ancillary functions

Currently, strategic relationships tend to be long-term due to static enterprise value propositions and high costs associated with the formation and dissolution of partnerships. Over time, with available technology and as enterprises adopt flexible enterprise infrastructures, ad hoc partnerships will be formed rapidly in response to specific business opportunities, and then dissolved after executing their specific projects.

DeB uses the Internet to extend, automate, and bind business processes in the business relationship life cycle in order to increase speed and lower transaction costs. For example:

� To use electronic registries to make needs and capabilities known, and automated search to find business partners

� To negotiate terms and conditions by exchanging machine-readable content and capturing the results in the form of electronic contracts

� To transact business by coupling automated processes using each partner’s choice of technology, Web services, and commerce protocols

5 Cybercitizen, 1998 & 1999


With DeB, the Financial Services Sector will undergo a large, qualitative change in which business relationships are established dynamically and automatically—the “next big thing” in B2B.

Figure 2-3 B2B evolution

� Business processes will be represented electronically, allowing suppliers, users, and service providers to interact directly via the Internet—thereby evolving from proprietary, closed networks to widespread use of the public Internet

� Open standard interaction points will allow automated B2B relationships with partners, thus:

– Enabling many business applications to run fully or partially automated

– Reducing the extent and cost of human/manual intervention

� The process of looking for, negotiating with, and selecting a new trading partner, and setting up systems to conduct e-business will be:

Asynchronous connectivity, EDI messages, encapsulation

process interoperability, brokering, matching and reconciliation

Legally-binding semantics

dynamic configurations

1999 and prior

2000 and beyond

Enterprise Resource Planning, Customer Relationship Management, Supply Chain

business packages/business objects

ad hoc interoperability

business workflow

software contracts

virtualenterprises

Operating System and Database Building Blocks

Dynamic e-Business is the next phase

of B2B relationships


– Automated using electronic contracts with negotiable service level agreements

– Supported with tools, methodology, business process design/analysis services, etc.

� New trading partner relationships can be easily and dynamically established in response to:

– Better prices, terms, and conditions

– Changing market conditions or business models

Dynamic e-business will lead to significant cost efficiencies and organizational effectiveness through partnering and integrated processes. Competitive advantage will be gained by those enterprises that do the following:

� Establish the most effective relationships

� Integrate critical processes for seamless execution

� Maintain an open, modular, adaptable enterprise infrastructure to enhance configuration or re-configuration as needed

� Move rapidly in response to opportunities


2.4 Global financial services future industry dynamicsIBM postulates that over time the Financial Services Sector will converge, blurring the distinction between industry players as insurance companies, banks, and brokerage/securities firms engage more aggressively in each other’s traditional space.

Figure 2-4 The financial services firms that can successfully compete in customer value and relationship are predicted to achieve the highest profit margins in the future, but are likely to have the most difficult challenges along the way.

� The new integrated financial services enterprises will segment customers on the basis of purchase capacity by behavioral segment.

� Distribution channels will be optimized and tailored to specific segment needs.

� Financial service organizations will implement strategies that direct customer segments towards the channel that most effectively services their needs.

� As financial markets become increasingly global, the current predominance of domestic fund flows—featuring siloed, portfolio-based enterprises—will give way to a predominantly international flow of funds dominated by market makers and technology-enabled direct intermediaries.

� To succeed in the emerging financial services environment, major players will need to develop extensive networked capabilities that enable them to offer products and services across the whole financial services spectrum. This will

� In-depth knowledge ofcustomers

� Ability to tailor to customersituations & market appetite

� Premier levels of customerservice

� Significant alternative deliverytechnologies

� Increasingly dynamic platform

� Instantaneous customization

� Bundling

� Information management

� Transaction processing

source ofhighest margins

in the future

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Specialist

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be achieved through strategic partnerships, acquisitions, and other types of alliances.

� The predominant dimensions of competitive advantage in the networked financial services environment will include:

– Product features and price

– Innovation through technology

– Sophistication of market and customer segmentation

– Low-cost, convenient delivery channels

– Customer relationship-based selling propositions

– Strategic alliances

– Any combination of the above

� New business models will evolve among financial services organizations as they position themselves for success in the emerging market environment. Possible business models include:

– Market-centric

– Fulfillment/enablement-centric

– Production/manufacturing-centric

– Customer-centric


Chapter 3. Big Play concepts

This chapter defines the FSS Sell & Support strategic intents, as well as the e-business Solutions/Big Plays that support them. Each e-business Solution/Big Play supports one or more of the strategic intents and is supported by a subset of the Sell & Support market themes or business capabilities.

Figure 3-1 IBM’s Big Plays are focused on critical themes in the market—the business capabilities required by clients.

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3.1 Elements of customer centricityCustomer centricity is a continuous-loop set of activities centered around translating customer needs and wants into repeatable business capabilities that drive value. These are the activities the customer sees and relates to, also known as touchpoints or customer interactions.

Continuous loop pertains to the relationship between process and data. Each customer interaction is recorded and analyzed so that the experience and lessons learned from past interactions can influence the presentation and offerings in future ones.

This closed-loop method (see Figure 3.2) is also known as a treatment and response model. Each and every customer contact is considered a treatment, and the result of this contact is recorded as a response. The relationship of treatments to responses is critical in building sales propensity models for up-sell and cross-sell opportunity—as well as in retention prediction to identify the situations that might indicate a warning for potential lapse, surrender, or liquidation of an account, policy, or perhaps the entire business relationship itself. While many of our clients often see the flaws in data capture and flow as the best opportunity to start building the continuous loop, they also need to pay close attention to the process aspects of how business functions are enabled and presented—which can either address customers’ wants and needs, or frustrate them enough to place their business elsewhere.


Figure 3-2 The closed-loop method

Customer Value Management provides the customer context in order to begin with a clear understanding of what the customer values. This then drives the essential process capabilities and enablers required toward the contact points through which the customer interacts.

Contact Management is the process by which there is a targeted customer experience with a high degree of consistency across all physical contact points (e.g., Internet, IVR, intermediary) and all contact management types (e.g., marketing, sales, service, and advice).

Response Management is about the vigilant capture of customer responses to each and every customer contact or interaction. Critical to customer centricity is the discipline of testing approaches and methods, presentation content, and collateral material, as well interaction style. How successful a firm is at customer centricity will ultimately depend on how effective it is at capturing and analyzing contact response.

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Chapter 3. Big Play concepts 23

Customer Information Management involves the flow of operational (a.k.a. transaction) data driven out of the contact and response interaction into an information state through which internal and external customer data can be brought together for analysis. This analysis should entail some form of validation to assure that needs have been effectively satisfied from the perspective of the customer (e.g., customer satisfaction and repeat purchase analysis) as well as from that of the financial services firm (e.g., household/account profitability, retention, and product density analysis).

IBM has considerable experience in helping companies determine a customer-centric view of what customers value—from basic requirements (“must haves” dictating whether customers leave) to those that will lead to true customer loyalty (“attractors”). Through a structured Customer Value Management (CVM) model—where IBM holds several patents for supporting tools—those customer needs and attractors are identified, and the capabilities required to satisfy them are assessed. In addition, the infrastructure and enablers that will support those capabilities are identified, and a plan is developed to help the company improve its infrastructure, enablers, and capabilities in order to deliver customer-defined needs and values. Many companies have found the CVM model to be particularly powerful because it uses an “outside-in” view from the customer, rather than an internal view of what the company thinks customers value.

IBM’s Sell & Support competencies focus on creating value through service standards, process capabilities, and enabling technologies, while its e-business solutions focus on the capabilities that businesses must provide in order to keep existing customers and continue to secure new ones. For example, some of the characteristics of a robust solution could include:

� Marketing

– Learn what customers want.

– Target the right customers.

– Position products and services.

� Sales

– Attract more customers.

– Create repeat business.

– Maximize product profit.

� Service

– Assure customer satisfaction.

– Retain profitable customers.

– Allocate service costs by customer profitability.


� Advice

– Provide periodic and on-demand portfolio performance valuation.

– Provide unbiased, timely, and personalized guidance designed to help customers achieve their goals.

Achieving customer centricity is an integrated approach to managing the full customer life cycle from customer selection, customer acquisition, and customer development through customer retention. In today’s business environment, the value chain spans the marketing, sales, and service functions of an enterprise. At every point of interaction—whether marketing, selling, or servicing a customer—knowledge of the customer’s wants, needs, and values must be leveraged into opportunities to establish and maintain customer loyalty in order to increase retention and profitability. This requires integrating solutions across the value chain, a critical success factor in delivering value to customers and differentiating an enterprise in an increasingly competitive marketplace.

Figure 3-3 Leveraging customer centricity can be described in a set of business processes focused on acquiring, developing, and retaining customer relationships in a targeted and selective manner.

Service

Leveraging Customer-CentricityLeveraging Customer-Centricity

CustomerCustomerSelectionSelection

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A true customer-centric solution must focus on the customer-facing processes and leverage all interactions with the customers. Key components of this solution should include:

� Personalized service (reactive and proactive)

� Multiple choices for access/service

� Consistency across points of access

� Ability to leverage existing systems/data

� Modular, scalable, and flexible systems

Long-term retention of customers results in increased profitability and competitive advantage. The longer customers remain customers, the more profitable they become. Through increased purchases and referrals, customer loyalty contributes significantly to the bottom line.

Customer loyalty solutions touch all aspects of the business, and as such are complex in nature. The impacts of transforming a company to a customer-centric business involve changes in:

� People: an organization that supports long-term, high-value relationships with customers, suppliers, and employees

� Process: an integrated, enterprise-wide process for selecting, acquiring, developing, and retaining customers

� Technology: that enables personalization, consistency, and choice

3.2 End-to-end business architectureWithin the financial services industry, end-to-end business architecture is achieved by building a comprehensive end-to-end solution enabled by tightly integrated processes and infrastructure. This business architecture has three main components:

� Collaboration

� Business operations

� Analysis

Each component facilitates specific functional processes that support the business transactions serving the needs of the end customer.


Figure 3-4 Customer-centric business architecture—a comprehensive end-to-end environment enabled by tightly-integrated processes and infrastructure.

� Collaboration is the interaction between the customer and the physical access points being tightly managed by a Contact Management system or systems that provide business context for all touchpoints between the customer and the enterprise. The types of touchpoints facilitated by Contact Management are:

– Marketing– Sales– Inbound and outbound service – Advice/guidance

The Service component is the widest in functionality, covering all post-sales activity from name and address changes to fund/asset allocation changes to billing and payments to general questions and answers.

Two additional components within the collaboration space are:

– Personalization: the mechanism by which Contact Management functions can be delivered in such a way that they appeal to the unique wants and needs of the individual customer through any touchpoint.

Business Operations AnalysisCollaboration

AssistedCall CenterProducer(Agent)Branch

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Activity AnalysisSegmentationMarket Mgt.ProfitabilityCampaign DevtCampaign Assessment

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ServiceCustomer CareCase Mgt.Bus. Txn. enablement

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Data Analysis & Reporting

Data MiningMgt. ReportingPredictive modelling

& ODSEnterprise Client File

Data Transformation and Integration

Version 1.7 © IBM 2001


– Enterprise client file: the mechanism by which the Contact Management functions can be fully knowledgeable of all customer product and contact instances across all channels, LOBs, and products.

� Business operations is the core business processing done by the financial institution. These are the basic fundamental processes, functions, and activities that are often imbedded in heritage/legacy processing systems. These were often the first functions codified and thus the most difficult to integrate from a CRM perspective. It is not uncommon that these legacy systems number in the twenties or thirties for a specific LOB within a given company.

� Analysis is the process by which pertinent customer data is pulled from the core business and contact management systems into a framework suitable for dimensional reporting and ad hoc querying. Some examples of such point analysis are customer profitability, marketing campaign assessment, and market management.

In order to address customer centricity, many financial services firms have focused on introducing new customer interaction models and physical access points with an emphasis on specific contact management processes such as marketing, sales, service, and advice. Data is often a pragmatic place to begin this implementation journey.

3.3 Strategic intentWhy do financial services firms care about customer centricity? Why is there a great exodus from being product focused to catering to the needs of the customer and channel?

At the most simplistic level, achieving customer centricity is about increasing profitable revenue growth by focusing on those customers most likely to become and remain the most valuable customers. It is thus grounded in one or more of the following business drivers or strategic intent:

� Target products and services to value-based customer segments.

– Implement a value-based business model.

� Increase loyalty of the intermediaries (distribution channels) via targeted service offerings.

– Accelerate the implementation of the online business channels.

� Increase the profitability of the product and service portfolio.

� Increase sales to customers.

� Increase customer retention and product density (wallet share).


� Reduce costs of acquiring and servicing customers.

� Leverage brand value, optimize time to market, and improve risk management.

In the ultimate reach for customer centricity, targeting products and services to value-based customer segments is the method by which the customer wants, needs, and potential are clearly understood, making it possible to tailor offerings to be more readily accepted by the customer. Implementing a value-based business model concerns the need for the firm to reinvent itself around the value proposition of the customer and thus make every function performed and every interaction facilitated focused on attracting and retaining the highly-valued customers of the firm.

Increasing the loyalty of intermediaries through targeted service channels focuses the institution on its key contact points with end customers, assuring retention of existing customers and a continuing stream of new sales. Accelerating the implementation of the online business channels assists in that effort by focusing on extending the firm's reach to the customer any time and anywhere, thus giving customers more choices in how they do business with the firm.

The firm can increase the profitability of the product and service portfolio in two ways:

� Refreshing what is offered to the customer is more likely to result in up-sell and cross-sell opportunities.

� Sourcing these new products through affinity partnerships is more likely to open up more prospects.

Increasing sales, retention, and wallet share or density are measures of a firm's effectiveness and focus on maximizing the profitability of the household/account to the firm. Reducing costs of acquiring and servicing customers at the household or account level is a measure of the firm's efficiency.

Finally, in the online business model, it is especially important to focus on leveraging brand value, optimize time to market, and improve risk management, thought of as leveraging the reputation of the firm through the most effective and expedient interaction methods while addressing the exposures inherent in an electronic business model.

Thus customer centricity focuses the firm's efforts on its key drivers and forms the basis of IBM's Big Plays.


3.4 Market Themes/Business CapabilitiesThese provide a linkage of the strategic intent into a context that can be addressed by Sell & Support Solutions. Whether a financial institution’s business model is focused on a sell/service or an advice/guidance customer orientation, there are specific business capabilities that provide emphasis for enterprise direction and infrastructure investment.

It is important to note that there is no right or wrong model. For example, the Sales and Service orientation might be very appropriate for a personal lines P&C (property and casualty) insurer, while a multiline bank or investment firm would most likely want to pursue the Advice and Guidance orientation. Each firm needs to build specific business capabilities that are appropriate to the customer orientation they are trying to achieve. The emphasis is on appropriate customer orientation.

Figure 3-5 The link between Market Themes/Business Capabilities and Strategic Intent

There are several Market Themes/Business Capabilities that have been created to give focus to the Strategic Intent:

Know the customer: Understanding your customers and their needs entails optimizing customer contact management, requiring a dialog between the customer and the company. The goal is to learn everything you can about the customer, then leverage that knowledge to provide the kinds of products and services customers want at any given time—establishing a continuous closed-loop process with customers in which the information received from them drives improvements in products and services that they in turn receive from you.

Offer the right product at the right time: An in-depth understanding of customers and their various relationships extends beyond simple demographics to pin-point life events, asset acquisitions, employment, investment strategies and buying behaviors, thereby helping identify what customers value. The key is to use that information in delivering value to your customers, leading to personalized service regardless of how the customer contacts you or you contact the customer—whether via an agent, phone, mail, kiosk, or the Internet.

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Offer the right service for the customer value: As clients become more sophisticated with Customer Loyalty, customer analytics enable them to differentiate service based on the value of the customer to the company. This capability empowers firms to address both operational efficiencies and profitable growth by executing tiered service programs. The drawback of some of these programs is that most firms do not measure the potential value of a customer or household.

Aggregate the customer view—across the total portfolio: Viewed from the customer perspective, wealth management is about the need for getting one’s financial life in order and keeping it that way—while viewed from the financial institution’s perspective, it is about creating long-term, highly consolidated, “primary financial services” relationships with its customers. Imperative to satisfying either viewpoint is the aggregation of the customer portfolio—as much as the customer is willing to share.

Provide advice—based on a broad range of offerings: Historically, wealth management has been the purview of private banking, targeted to wealthy individuals in the top 1-7% of the income bracket. The emergence of other wealth classes—including the wealthy young, with significant portfolios looking for wealth management services—has created an opportunity to extend services beyond the traditional target market. By designing around the total portfolio needs of the customer, there is more attention on the aggregation of several services delivered conveniently to the customer. The advent of e-business technologies has also reduced unit servicing costs and made it possible to extend traditional wealth management services to other customer segments, as well as expanding the portfolio of services offered.

Provide customer access anywhere and anytime—clicks & mortar: The focus on ubiquitous access will continue to be the theme for financial services contact management. Access is all about providing customers with choices in how they want to interact with financial services firms in the marketing, sales, service, and advice processes. Nontraditional, Internet-based competitors—including portals, destination sites, Internet-based lenders, brokers, and banks—are attacking the traditional value chain. They combine services with information and technology-enabled customer-centric processes to create an attractive value proposition. This challenges traditional players to offer their own compelling value propositions on the Internet, or else risk losing a significant customer segment to new competitors.


Organize around customer-centric processes: Developing and implementing a continuous-loop customer-centric capability is not just about technology. There are key process and organizational capabilities that will need to be introduced to achieve the benefits. Key to organizing around customer-centric processes is helping financial services organizations through the cultural changes necessary to fully appreciate household/account-based benefits, focusing on the aspects of governance, measurements/metrics, and overall program management.

3.5 Big PlaysIn order to help our clients focus on specific aspects of enabling customer centricity, IBM’s Financial Services Sector has developed several e-business solutions that provide actionable consulting, services, and solutions delivered in an end-to-end approach. While these Big Plays are grounded in the Market Themes/Business Capabilities, they can be viewed as a collection or set that provides context for action:

� Customer Loyalty

� Online Financial Services

– e-insurance

– e-banking

– Branch Renewal

– Mobile Internet

� Wealth Management

These e-business solutions leverage the solutions and consulting within the IBM Sell & Support competencies of Customer Relationship Management (CRM), Business Intelligence (BI), Web Selling, Interactive Branding & Design, and Pervasive Computing. Many industry-leading companies view CRM and BI as fundamental and thus critical to the survival of their businesses.


Figure 3-6 IBM’s Big Plays cut across and share specific Market Themes/Business Capabilities in order to provide structure and leverage.

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3.5.1 Customer LoyaltyCustomer Loyalty is a multi-industry phenomenon driven by the enterprise’s need to align its value propositions and organize internal processes to better meet customer needs and expectations. This must be based on an understanding of the customer’s point of view, otherwise known as becoming customer centric.

Customer Loyalty can be described in a set of business processes focused on acquiring, developing, and retaining targeted customer relationships.

Figure 3-7 Customer Loyalty focuses on acquiring, developing, and retaining targeted customer relationships.

Industry dynamicsTrends in the financial services industry from the Customer Loyalty perspective include:

� Customer expectations driven by customer experiences beyond the typical boundaries of the financial services industry

� The availability of enabling technology and analytical tools—making it increasingly possible for leading firms to customize products and services

Knowyour

customer

Make theright offer...At the right

time


Offer the right servicefor the customer value


very specifically to the needs of their most valuable customers in order to increase wallet share

� An increasingly global market view as investors look to international markets for portfolio diversification

This positions traditional players with a global presence at an advantage, but they must act quickly to exploit this advantage before new competitors develop global capabilities.

� Strategic alliances among financial services providers to broaden their product scope service delivery capabilities, resulting in a growing need for integrating IT services and streamlining processes across LOBs

3.5.2 Online Financial ServicesOnline Financial Services covers a broad spectrum of brand/channel e-enablement focusing on e-insurance, e-banking, branch renewal, and mobile Internet. This set of e-business solutions is driven by the need to provide customers access to the brand/channel in whatever ways they feel are effective for them and economical for a financial services firm.

Figure 3-8 Online Financial Services focuses on the enablement of the customer access and distribution channels.

Make theright offer ...At the right

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Provide customer accessanywhere and anytime ...

clicks & mortar

Offer the rightservice for thecustomer value


Industry dynamicsTrends in the Financial Services Sector from the Online Financial Services perspective include:

� Growth in Internet usage will fuel worldwide e-commerce revenues. B2B will account for the majority of these e-commerce revenues.

� As device ubiquity and entrenchment of wireless financial services grow—and as associated unit costs decline—users will exceed 75 million in Western Europe in 2005. In 2000, there were 9.63 million users of wireless financial services, projected to increase to 22.8 million in 2005.1

� Alternative Internet access devices such as Smart phones and iDTV will increasingly be used by US households to surf the Web. Net-enabled mobile phones will see the biggest increase, thanks to faster and cheaper access speed. The uptake of these technologies will be considerably slower than in Europe, where PC penetration is much lower.2

� With the introduction of high-speed GPRS technologies in 2002, net-enabled phones will increasingly be used to access the Internet. Thanks to improved technologies and the widespread use of location-based services, by 2005 there will be nearly 33 million users of net-enabled phones.3

� By 2003 it is estimated that:

– Over 602 million people will be online around the world. Although North America has dominated usage to date, Europe and Asia are quickly catching up.4

– Over 168 million people, or 61% of the American population, will be online. Of that number, 45.6 million will use the Internet for online banking and brokerage (25.2 and 20.4 million, respectively).5

– Over 15 million people—61% of the Canadian population—with be online.6

– Over 30 million people, or 50% of the UK’s population, with be online. Of that number, 12.7 million will use the Internet for online banking and brokerage (10 and 2.7 million, respectively).7

– In the UK, a significant portion of new business will be originated via the Internet. Notably, 40% of savings, 25% of new credit cards, and 24% of new mutual fund business will be originated on the Web.8

1 Tower Group2 Forrester Research 20003 Forrester Research 20004 IDC5 eMarketer, Industry Standard6 Datamonitor, IDC, Jupiter and JP Morgan7 Datamonitor, IDC, Jupiter and JP Morgan8 JP Morgan Estimates 2000


– In France, over 24.1 million people—40% of the French population—will be online. Of that number, 12 million will use the Internet for online banking and brokerage (9.5 and 2.5 million, respectively).9

3.5.3 Wealth ManagementWealth Management began as a customer play on the highly affluent and has emerged as a set of customer disciplines that address the total financial servicing wants and needs as they cut across enterprise boundaries. The needs of high net-worth individuals are fairly complex and require a certain product, services, and processing savvy that is difficult to achieve.

Wealth Management is centered on customer wants and needs, but also masters the added complexity of channel enablement—often through a combination of self-service, broker/advisors, and affinity portals.

Figure 3-9 Wealth Management focuses on transitioning the institution’s business from a sales-based to an advisor-based model.

9 Datamonitor, IDC, Jupiter and JP Morgan

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Industry dynamicsTrends in the financial services industry from the Wealth Management perspective include:

� Customer expectations are driving a change in business models from transaction enablement towards a trusted advisor model.

� High growth rates (30% CAGR 1999-2003) in online wealth management services have created significant opportunities for early entrants. By 2003, 25 million investors are expected to manage $1.9 trillion online, generating approximately $20 billion in industry revenues.

� Demographics indicate that by 2030, 20% of the US population and 25% of Europe’s will be over 65. There is a growing need for wealth management services and succession planning as the aging population prepares for retirement.

� The following attributes affect investor behavior in the wealth management industry:

– Information overload

– A demonstrated requirement for relationships and physical presence from their institutions

– An increasing focus on short-term gains (but day trading will decline)

– A mixture of active and passive investment strategies, with an emphasis on active management

– Higher sophistication, better education, and more self-reliance for investment decision-making, using a mixture of self-managed and advised accounts

– A shift from managed products (e.g. mutual funds) towards lower-cost instruments such as index funds or individual securities

– A shift from bank deposits CDs, GICs) towards equities and other fixed-income securities (e.g. Treasury bills and bonds)

– More responsible behavior toward retirement income

� The following attributes impact investment firm behavior in the wealth management industry:

– A drive toward larger asset bases

– The tendency to buy as opposed to building LOBs they do not have

– The realization that it is imperative to establish a strong brand identity on the Web to differentiate themselves and capture wallet share


3.6 SummaryIBM's Financial Services Sector has created several e-business solutions—also known as Big Plays—to help our clients better implement business capabilities. These extend from Customer Loyalty (focused on a sales and service model) to Online Financial Services (focused on the e-enablement of the customer access and distribution channel) to Wealth Management (focused on an advice and guidance model). These e-business solutions are not meant to indicate “right” or “wrong” business models, nor are they intended to indicate a progression or maturity level in IBM's Sell & Support competencies (BI, CRM, Web Selling, Interactive Branding & Design, and Pervasive Computing).

FSS e-business solutions are positioned to help our clients define and execute a roadmap to achieve a specific set of market themes or business capabilities. There are five key transition opportunities, described in Chapter 4, “Transition opportunities” on page 41, that relate to specific e-business solutions.

Figure 3-10 IBM’s Big Plays cut across defined cross-industry market capabilities.

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Chapter 4. Transition opportunities

This chapter discusses transition opportunities as they relate to e-business Solutions/Big Plays and Market Themes.

Figure 4-1 Transition opportunities are key building blocks in the client’s journey from current state to desired end-state.

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4.1 Definition of transition opportunitiesChapter 3 identified the e-business Solutions/Big Plays that collectively capture our clients’ strategic objectives in the area of customer centricity. In this chapter, we begin to drill down into the many ways in which IBM can help them define and then realize these objectives. Only IBM offers the full complement of hardware, software, and services that clients need to transition from first thoughts to end-state implementation. Therein lies our key competitive advantage.

The migration from current state to customer-centric end-state is a journey most of our clients have already begun in some fashion. We refer to this journey as a transition.customer centricity involves five such transitions:

1. Complete customer view

2. Consistent and personalized product and service delivery

3. Customer-facing processes aligned with customer and business wants and needs

4. e-enabled interaction at multiple customer touchpoints

5. Advice-based customer interaction

Whether pursued by an individual LOB or the enterprise as a whole, each transition represents significant changes in people, processes, and technology, posing considerable challenges and risks for our clients. Within these challenges, we see an opportunity for IBM to play a leading role. The transition opportunity has strategic, organizational, and technological implications which will be unique for each client. Most will prefer to migrate to new end-states over time, and the pace will vary by client. To reflect this relative pacing and inherent budgeting constraints, transitions must often be parsed into several smaller project Components. We can help in all phases—including articulation of the desired end-state, development of a time-based implementation roadmap, and integration of legacy systems.

Each transition opportunity is comprised of a series of Solutions which, in turn, is made up of one or more Components. A Solution is a collection of hardware, software, and services that we can sell to a client. It might include e-business consulting, project management, software integration, and hardware installation. These are its individual Components. Since no two clients will need an identical mix of Solutions and Components to realize their desired end-states, our entry point can be anywhere between those two extremes.


4.1.1 Complete customer view

DescriptionRegardless of industry, most businesses today remain organized around a product-centric business model. In such a model, each LOB enjoys near-autonomy and is largely judged on unit rather than enterprise-wide performance. With little incentive to collaborate, marketing activities are not well-coordinated across business lines, products are priced without consideration for the total customer relationship, and service quality across the enterprise is inconsistent.

A primary impediment to improving these functions is the inability to aggregate all product, transaction, service, and demographic data surrounding each customer into a single repository. Often this data is housed in disparate product or call center systems, with little ability to quickly cross-reference between applications. Such application silos hinder the aggregation of all relevant customer information into a single, complete “view.” Absent this view, product offerings, marketing communications, and service interactions do not reflect the level of intimacy that customers demand.

Creating a complete customer view goes beyond the difficult act of aggregating all relevant customer information in a common repository. Institutions must develop an understanding of both prospective and existing customers through analytical techniques optimized for marketing analysis. Customers can then be segmented into profile groups for targeted marketing efforts in support of the strategic LOB plan.

Key capabilitiesIBM offers an end-to-end capability or series of Solutions to design and develop a complete customer view for its clients:

� Data repository design and development

� Data extraction, cleansing, house-holding, and propagation software

� Business process re-engineering

� Hardware installation, including client and Web server architectures

� Segmentation and modeling, including data mining and multi-dimensional profitability quantification

� Technical and analytical skill requirements, staff assessment, and gap analysis

� Governance systems for data quality, security, and usage

Chapter 4. Transition opportunities 43

4.1.2 Consistent and personalized product and service delivery

DescriptionCustomer demand for highly personalized products and services has been increasingly shaped by experiences outside the Financial Services Sector. Financial institutions find themselves pressured to provide a consistent and personalized quality of service right down to the micro-segment level. Achieving this state translates into increased profitability through gains in wallet share and customer lifetime duration. Understanding and projecting customer behavior within these micro-segments—built on a firm foundation of campaign management and analysis—are the key distinguishing characteristics of this transition opportunity.

Key capabilitiesClients must have the ability to triage their customers by profitability—i.e., to project which ones:

� Are optimally profitable today

� Can become more profitable through increased loyalty programs

� Can never be made profitable

A business’s ability to understand market trends and recognize opportunities must be supported by an infrastructure of process, organization, and technology that enables quick response.

IBM offers a series of Solutions collectively designed to help companies provide personalized product and service delivery:

� Micro segmentation-based customer behavior analysis

� Business intelligence—including segmentation, scoring, data mining, and multi-dimensional profitability quantification

� Customer profitability and risk analysis

� Product line reconfiguration based on personalized cost/price/feature- appropriate products and services

� Campaign management—including design, execution, and performance measurement in support of generally-accepted closed-loop marketing concepts




� Hardware installation—including client and Web server architectures



4.1.3 Customer-facing processes aligned with customer and business wants and needs

DescriptionCustomers expect their financial institutions to understand their basic wants and needs and to manufacture products and deliver services in support of them. In short, they are looking for the right product offered at the optimal time and delivered at an affordable price through the preferred channel. For financial institutions, this presents a significant dilemma. Historically, most businesses have been organized around a product-centric business model. In this model, each LOB enjoys near-autonomy and is judged on unit rather than enterprise-wide performance.

Since there is little incentive to collaborate across lines of business, customers of one LOB (e.g., Retail Banking) might not be recognized and treated as a customer by another (e.g., Trust Services). This disparate approach does not engender the level of intimacy that customers demand, as evidenced by their willingness to transfer their business to competitors. The most successful institutions this decade will be those that organize around customer segments rather than products. In this new customer-centric business model, institutions will deliver a quality of service commensurate with the level of value generated by each customer. This requires that each customer-facing process be re-engineered in support of both business and customer needs.

Two examples of this new customer-centric approach are that:

1. Marketing messages should be crafted to appeal to the demands of a unique customer or segment, rather than continuing to push products irrespective of need.

2. Conflicts in message, market positioning, or product development should be resolved with consideration for the complete customer relationship. Matching a company’s business model to the customer to provide the appropriate product offerings and service treatments requires knowledge of customer profitability relative to enterprise value. These elements are essential to the business processes required to become a customer-centric organization.

Key capabilitiesIBM offers a series of Solutions collectively designed to help companies migrate to a customer-centric business model:


� Marketplace analysis and assessment of strengths, weaknesses, and available opportunities in comparison to those offered by key competitors

� Business intelligence, including segmentation, scoring, data mining, and multi-dimensional profitability quantification

� Customer Loyalty strategy and implementation roadmap—providing a vision, overall business case, and prioritized business plan for achieving a customer-centric business model

� Product line reconfiguration, based on marketplace analysis of competitive advantages

� Campaign management—including design, execution, and performance measurement in support of generally-accepted closed-loop marketing concepts

� e-business strategy, Web site design and development, digital branding, and linkage to the customer’s data repository

� Governance systems for contact, customer value, e-business, data quality, security and usage, and change management




� Hardware installation, including client and Web server architectures


4.1.4 e-enabled interaction at multiple customer touchpoints

DescriptionAccess and communications are fundamental to the business climate surrounding IBM’s financial institution clients today. Consumers expect access to their information and supplier community by whatever means most convenient to them. Convenience is impacted by such factors as type of interaction, consumer location, and time of day. Consumers expect that their financial services suppliers know everything about their relationships, including any prior contacts (see 4.1.1, “Complete customer view” on page 43).

From the consumers’ standpoint, touchpoints exist in many channels. Individual consumers might utilize a specific touchpoint exclusive of all others. However, almost all consumers will use a mixture of touchpoints, depending on the type of interaction—e.g., a recurring transaction, a life event, or physical characteristics such as time of day.


Touchpoints include:

� Employee desktops reached through a walk-up contact or telephone connection

� Telephony direct to client branches, contact center personnel, or voice response units

� Internet self-service, direct-to-client information and services, such as:

– Kiosk or ATM

– Wireless

– e-mail

� Partner interactions (B2B) using walk-up, telephone, or Internet self-service, such as:

– Agents for insurance products and services

– Brokers for financial and investment products and services

– Branch officers for banking products and services

Optimal touchpoint interaction is a significant opportunity for Online Financial Services. The challenge is to identify, qualify, and engage the right recipe for each unique client opportunity.

Key capabilitiesIBM offers a series of Solutions collectively designed to help client’s Web-enable interaction at customer touchpoints:

� Consumer access to any product or service through any channel a client firm supports

� Marketing capability to determine what segments to serve, what products and services those selected segments want or need, and what touchpoint mechanisms they want or need

� The ability to offer selected products and services using Internet, intranet, and extranet technology

� The ability to offer selected products and services through voice/telephony technology

� The ability to offer selected products and services through kiosk or walk-up (in-person) desktops

� The ability to offer all products and services across any channel to support any selected variation of customer, product, and access-channel combination


4.1.5 Advice-based customer interaction

DescriptionHistorically, financial institutions have focused on the delivery of transaction-based services to a broad spectrum of customers. These services have become increasingly commoditized by competition and technology, thus reducing both the institution’s market share and its transaction-processing profitability. Customers with a commoditized provider relationship tend to move readily to other institutions. Advice-based customer interaction reduces this threat by:

� Transitioning the institution’s operational model from that of a transaction processor to that of a provider of quality, high-value, customized service providing trusted advice to the customer on an ongoing basis

� Converting the pricing model from “transaction-based” to “value-based”

� Cementing the relationship of the customer to the financial institution

The implementation of advice-based customer interaction requires that the institution enable unique key business process, organizational role, and technology capabilities in support of the new interaction model.

Key capabilitiesIBM offers a series of Solutions aimed at designing and developing wealth management capabilities for its customers:

� Advisory service planning and pricing

� Channel management targeted at advisory services

� Operational process targeted at providing customers advisory services on an ongoing basis

� Intra- and inter-enterprise knowledge management for capturing, cataloging, and delivering knowledge to advisors, customer service representatives, and other intermediaries

� Segmentation and modeling aimed at the institution’s highly-valued customers


� Governance systems for compliance and regulatory processes


4.2 Transition opportunity frameworks

4.2.1 Customer Loyalty

Figure 4-2 The Customer Loyalty Transition Opportunity Framework focuses on transitioning the institution from a product-centric to a customer-centric enterprise.

Market Themes/ Business

Capabilities

Transition Opportunities

Complete Customer View

Customer-Facing Processes Aligned with Customer and

Business Wants and Needs

Consistent and Personalized Product and

Service Delivery

Customer LoyaltyTransition Opportunity Framework

Offer the right service for the right customer value


Know the customer

Organize around customer centric processes


4.2.2 Online Financial Services

Figure 4-3 The Online Financial Services Transition Opportunity Framework focuses on transitioning the institution from selling and servicing through discrete time-bound and non-integrated traditional channels to selling and servicing in an integrated, always available online fashion.


Capabilities

Online Financial ServicesTransition Opportunity Framework

Offer the right service for the right customer value



Provide cutomers access anywhere and any time...clicks and bricks






Service Delivery

e-Enabled Interaction at

Multiple Customer Touch Points


4.2.3 Wealth Management

Figure 4-4 The Wealth Management Transition Opportunity Framework focuses on transitioning the institution from a transition-bound, single-institution source of products and services to an advisor-based, multi-institution, integrated portfolio of products and services.

Wealth ManagementTransition Opportunity Framework






Service Delivery

Advice-Based Customer Interaction


CapabilitiesProvide advice...based upon a range of offerings


Provide customers access anywhere and any time...clicks and bricks

Aggregate the customer view...across the total portfolio


Chapter 5. Solution Offerings

This chapter introduces the Solutions that support each transition opportunity. Several engagements can be mapped to the same opportunity. The chapter provides the context and background required to shape tactical responses to client issues into Solutions through repeatable engagement frameworks.

.

Figure 5-1 Many Solutions apply to more than one transition opportunity and Big Play.

5

SolutionOfferings

Sale

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Know the customer













CustomerLoyalty

WealthManagement


Mobile Internet




Overview of Solution OfferingsEach Solution Offering is created from the working experience of several engagements, with some amount of forethought for work product organization going forward. A Solution Offering is all of the following:

� A comprehensive response to a client’s business need

� An integrated collection of things IBM can deliver to a client:

– Strategic consulting

– Project management

– Software, application, and package integration

– Hardware procurement and installation

– Outsourcing/hosting

� A repeatable, highly scalable Offering, which is:

– Nationally quality-assured

– Compliant with GS Methods

Each Solution Offering is comprised of one or more Solution Components. Chapter 6 describes over 60 such Components. These Components can be combined in almost any fashion to create customized Offerings for IBM clients. There are more Solution Offerings than Components—much in the same way that there are more mutual funds than underlying stocks.

Table 5-1 on page 55 relates these Solutions to their Business Architectures and Transition Opportunities.


Table 5-1 Solution Offering-applicable Business Architectures and Transition Opportunities

Business Architecture Solution

Transition Opportunity

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Strategy & Planning

Campaign Management X

Channel Management X

Contact Management X

Global Infrastructure Strategy X

Interactive Branding X

Sell & Support Strategy and Roadmap X X X X X

Channel Enablement

Customer Value-add Process

Personalization


Channel Management X


Data Mart Design and Implementation X

Dynamic Personalization X X X

Package Integration X X

Sales Force Automation X X

Web Enablement X X

Chapter 5. Solution Offerings 55

Enterprise Client File







Web Enablement X X

Core BusinessProcessing Package Integration X



Com

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per

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se

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Cus

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Adv

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tera

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Data Warehouse

Data Marts







Product/Portfolio Planning and Pricing X X

Risk Management X X


Web Enablement X X



Com

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te c

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om

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Con

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per

son

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se

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Cus

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wan

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d in

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Adv

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This redbook introduces the 14 Solution Offerings believed to most highly resonate with IBM clients in the current competitive and economic environment:

1. Campaign Management

2. Channel Management

3. Contact Management

4. Conversions and Data Rationalization

5. Data Mart Design and Implementation

6. Dynamic Personalization

Data Transformation & Integration




Conversions and Data Rationalization X


Global Infrastructure Strategy X



Web Enablement X X



Com

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te c

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om

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Con

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7. Global Infrastructure Strategy

8. Interactive Branding

9. Package Integration

10.Product/Portfolio Planning and Pricing

11.Risk Management

12.Sales Force Automation (SFA)

13.Sell & Support Strategy and Roadmap

14.Web-Enablement

Each is discussed in detail on the following pages.

The objective of this chapter is to provide context and background to shape tactical responses to client issues. For each Offering, we have provided the following information:

� Overview—describes the Offering

� Example—postulates a hypothetical client example detailing the broadest possible application of the Offering

� Relevant components—lists the primary Solution Components most often associated with this Offering.

5.1 Campaign Management

Transition OpportunitiesComplete client view

Consistent and personalized product and servicedeliveryCustomer facing processes aligned with customer andbusiness wants and needsWeb-enabled interaction at customer touchpoints

Advice based customer interaction

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OverviewThis embodies the strategies, methodologies, and processes by which companies proactively communicate with their current or prospective customers. The objectives of such campaigns can include new customer acquisition, product cross-sell, customer retention, customer service, or even company positioning. A Campaign Management Solution generally involves the development of repeatable, end-to-end business processes targeted towards actionable customer segments.

At the center of such processes is a closed-loop data flow of customer information which serves to improve financial results as campaigns are repeated over time. These very methodical campaigns target explicit audiences with explicit messages. They can have durations of a few days to a few years, with many marketing activities (i.e., programs) occurring in each. Generally, campaigns are initially executed in pilot (aka test) form. If results meet financial expectations, they are then rolled out enterprise-wide.

Underlying any good campaign management system is software that analyzes and manipulates data in a robust enterprise warehouse or marketing data mart. When combined with well-conceived business processes, these tools enable sophisticated management of marketing activities and customer relationships.

ExampleA client wishes to increase the effectiveness of its marketing activities. Like most such engagements, this one begins with a documented vision of the client’s desired end-state, followed by an assessment of current marketing capabilities. Identified gaps in skill sets, processes, and technology then become the foundation for a customized campaign management roadmap.

� Aggregating relevant customer information into a single data repository is the first priority. Where possible, such data is extracted, cleansed, householded, and propagated in this repository on a recurring, scheduled basis.

� Analytical software is then used to define/refine customer segments and predict the future behavior of each individual customer. These predictions, in the form of numeric scores, are written to the repository to become yet other dimensions on which campaigns can be delineated.

� Specialized campaign management software then produces lists of qualified customers for each marketing activity, based upon stated selection criteria. Duplicate list entries are removed based on predetermined survivorship rules, and a unique campaign code is written to the repository for each surviving record.

� Surviving customers then receive the marketing messages in accordance with the strategic plan. These messages—delivered via one or more touchpoints such as call center, e-mail, or direct mail—communicate a


call-to-action for the desired customer behavior (e.g., product purchase, renewal, or upgrade).

� Immediately after these messages are communicated, customer responses are captured and written to the repository. Analytical software is again used to profile the average responder and determine the rate at which each segment favorably responded to the marketing message.

� The economic cost of generating these desired behaviors is then calculated and compared to that forecasted in the plan.

� Results are then summarized and published via e-mail or the Web. All things learned—from process enhancements to responsiveness by segment to profitability by individual customer—become inputs into the execution of each campaign in the future, thus closing the information loop.

Relevant components� Banking Data Warehouse (BDW)

� Business Case Development

� Client Information Integration System (CIIS)

� Customer File Design and Implementation

� Customer Management Assessment (CMA/CMAT)

� Customer Prospect Optimizer (CPO)

� Enterprise Customer Analytics (ECA)

� Insurance Application Architecture (IAA)

� Insurance Information Warehouse (IIW)

� Intelligent Miner

� Kana Customization

� MicroStrategy

� Program Management

� SAS

� Security and Privacy Design and Implementation

� Segmentation and Scoring

� Siebel Customization

� Siebel IBT

� Skills Management

� Third Party Data Integration

� Vality


� Web Analytics

� Xchange

5.2 Channel Management

OverviewWith the advent of the Internet, another channel has been added to the marketing mix. Consumers now have an additional choice when deciding how to access, communicate, and transact with their existing and potential suppliers. To meet this challenge, financial services firms must manage their channel strategy. That is, they must identify, define, implement, and measure each channel for selected market segments. A firm’s channel management effectiveness has a significant impact upon its financial performance, since the costs to develop, deploy, execute, and support each channel are very different.

ExampleA client is losing market share to a competitor that has invested heavily in the Internet channel. IBM has been asked to help craft a channel strategy and lead its implementation.

� The engagement begins with proprietary research into which channels the targeted customer segments desire to use, and for which types of interaction. At issue is whether or not the desired functionality can be delivered via the desired channels in an economically viable manner.




Key Dimensions

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A Booz-Allen, Hamilton study of banking customer interaction cost by channel found that the branch cost per interaction was $1.08, the telephone $0.54, the PC online $0.26, and the Internet, $0.13. A Datamonitor study found similar results in the insurance industry.


� Once known, the desired channel functionality is compared to current channel capabilities. Infrastructure gaps are identified, and an implementation roadmap developed.

� Next, relevant product and servicing systems are integrated to ensure a common customer experience, regardless of channel.

� These systems are then enabled to provide access via the wired and wireless Internet.

� Using cost-based accounting methods, the financial impact of providing each transaction type via each channel is calculated. Working with the client, IBM then creates a detailed pricing strategy, balancing the value of each customer segment against the costs of providing these services.

� Targeted marketing campaigns then communicate the new channel services to targeted segments and attempt to steer behavior in a way that delivers value to both customer and financial institution.

Relevant components� Business Case Development

� Business Continuity and Recovery

� ChannelPoint

� e-Start

� Financial Fusion Consumer e-Finance Suite (CeFS 4.0)

� Help Desk

� Integrated Voice and Data Networks

� Pervasive Computing—MeB


� S1

� Web Selling—Globalization Planning

� Web Selling—Return on Web Investment (ROWI)


5.3 Contact Management

OverviewIf customer contact is an important differentiator in today’s business environment, then companies must understand how their customer interactions measure up, be able to identify where they need to improve, and measure their results. This engagement begins with an assessment of the organization’s current processes, identifies areas to improve, and implements appropriate Solutions to improve and measure those areas. Customer contacts occur throughout an organization across multiple channels. The engagement can be focused on a single channel (e.g., call center or Web site) or could include multiple contact areas.

ExampleA client is concerned that it does not fully comprehend when and why customers choose one channel or another. Nor does it really know the quality of service they deliver. This engagement begins with a contact assessment to provide an understanding of the reasons and level of service provided for each contact.

� Processes are reviewed to reach an understanding of how to attain higher levels of service and to identify the areas upon which to focus.

� These findings determine whether a contact management package will be installed to capture each contact and allow future measurement. Process improvements are identified and a plan to implement changes is developed.

� Integration between the self-service Web site and the call center is required to raise the level of service provided. IBM assists the client with contact management package selection and completes the infrastructure design to integrate the Web site and call center.

� Upon completion of this application integration, Web site, and infrastructure design, IBM consultants and architects work with the client staff to implement the Solution and begin measuring the results.




Key DimensionsS

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� Contact Center Assessment (CCA)


� Customer Prospect Optimizer (CPO)



� Integration Hub



� MQSeries/MQSFSE

� netCallCentre

� Onyx ASP

� Operations and Process Design for Interactive Transactions




� Siebel ASP


� Siebel IBT

� Vality

� Web Analytics

� WebSphere

� WebSphere Business Components Composer

� Xchange


5.4 Conversions and Data Rationalization

OverviewWhen a financial institution has merged or is installing a new application, data conversion can lead to additional business. This Offering allows a customer to quickly merge application systems or replace an old system with a new one in a very short period of time. This results in large savings for the client by reducing duplicated effort and project risk.

Conversions and Data Rationalization is a fixed-price Offering completed in 16 to 20 weeks. It is fully supported by a dedicated team of professionals and a proven conversion methodology. A bid can be submitted to a client in five days, and work started two weeks after the SOW has been signed.




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Figure 5-2 ACM high-level view

ExampleA client installs an application which replaces its existing call center operations software package. It wishes to assure that existing information on customer interactions is mapped appropriately to its new application and history of contact is maintained. IBM uses a “facts”-based process to convert system data files.

� Data analysis of the source files

– The process begins with a gathering of all the source system data files for conversion.

– This data is analyzed and all products on the file then documented.

– This is followed by a process to determine the data, product, and functional gaps that exist when compared to the target system. By identifying these gaps, the project plan and customer communications can be customized accordingly.

– Further tasks to be performed are defined, and a milestone schedule is provided and agreed upon.

AUTOMATED CONVERSIONMETHODOLOGY

Institutions $ 50MM and Up

DataIntegrity

&ProductMappingReport

ProductMapping

With'Facts'

DataMapping

&Program'Specs'

ExtractProgram

AndTesting

LoadFiles

Automated Audit Trail

Full Balancing Of Each Application

Strategicplatforms

Sourcesystems


� Data mapping of the source to the target

– Documentation of the movement and translation of the data from the fields and files in the source systems into those in the target system is presented in a specifications document.

– After client sign-off on the conversion specifications, conversion code is created.

� Conversion programming and unit testing

– The conversion code is created.

– The code is unit tested, and the conversion files are created.

– System testing:

• The target files are then created and validated prior to release to the client.

• The client loads to the test system and tests the data in the test system.

� Integration and user acceptance testing (UAT)—These target files are then loaded so that the client can perform user acceptance testing.

� Dress rehearsal/final conversion—A dress rehearsal and real conversion are conducted.

� Post conversion and evaluation—Upon completion of the final conversion, IBM works with the client staff to assess the overall project against stated goals.

Relevant components� Integration Hub

� MQSeries/MQSFSE



� WebSphere



5.5 Data Mart Design and Implementation

OverviewAn information data mart is a process, not a product. In its basic form, the data mart is a subset of the enterprise data warehouse, though the development sequence of each depends upon the needs of the individual client. It can be designed to support any function, such as marketing or customer service. As a specific, distributed set of operational data, a data mart is a technique to properly assemble, manage, and store data from relevant source systems, allowing for ad hoc discovery and drill-down analysis to answer previously unknown or unanswerable business questions. It is a single, integrated repository of data which becomes the infrastructure foundation on which analytical and campaign management software applications run.

The process of turning raw data into information will allow the business user to make more informed strategic and tactical decisions, better understand customer behavior, and capitalize on market opportunities.

ExampleA client has decided to focus its marketing activities (and budget) on specific customer segments. To do so requires the ability to aggregate, analyze, and act upon relevant customer information.

� The assignment begins with an assessment of data quality and accessibility by source system. Each data element is reviewed for relevance to the marketing objectives, and a decision made as to whether to propagate it in the data mart.

� A propagation plan is then documented, featuring the rules and schedules for propagation for each element.

� Requisite data is then extracted from source systems, cleansed, householded, and propagated into the data mart. An integration hub is employed to enable programmed repeatability of this onerous task.




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� Security and privacy policies are documented, and necessary business users granted access.

� Analytical software applications are installed, users are trained, and analysis commences.



� Common Transactional Protocols and Formats

� Content Hosting


� ETI•EXTRACT®

� Evoke—CRM Integration and Product Offerings

� EZ Mart

� Financial Services Data Model (FSDM)

� Financial Services Information Framework (IFW)



� Integration Hub


� MicroStrategy

� MQSeries/MQSFSE


� SAS




� Vality

� WebSphere



5.6 Dynamic Personalization

OverviewOnce a novelty, the Web has become a dynamic source of information and time saver for businesses and consumers alike. To ensure that these interactions are as relevant for each individual as possible, businesses personalize Web sites based upon customer preferences. These can range from GUI personalization at sites such as Yahoo, to content personalization at sites such as Morningstar.

The Dynamic Personalization Solution Offering seeks to tailor content to client wants, needs, and interests in order to effect a more efficient and worthwhile experience across a broad array of touchpoints—including the Web, mobile wireless, print, and CDs. Personalized content can either be pulled by the customer or pushed by the publisher.

Dynamic Personalization is applicable to multiple media types and communication channels, and consists of:

� Content creation, editing, and electronic management

� Keyword tagging for cross-reference to individual customer profiles

� Repurposing—i.e., the extraction and recompilation of existing content for publication to a wide variety of audiences

ExampleA financial services company wants to increase its level of intimacy with customers in the high-value segment. It knows that these customers constantly receive educational literature, invitations to private seminars, and special offers from both local and national competitors. Fearful that some of these “best” customers might be inclined to move their business to competing providers, the company retains IBM to extend the scope of existing CRM initiatives to include personalization for selected customers via the e-mail and Internet channels.




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� IBM first assesses the breadth, depth, and quality of data available for each customer. Where necessary, recommendations are made to supplement this data, either by extracting additional data elements from product and servicing systems or by incorporating demographic and other data from third-party compilers.

� Once incorporated, detailed demographic and psychographic profiles are generated for each customer. Using analytical software, statistical models are developed that predict future behaviors. Such behaviors are then codified and written to the marketing data mart.

� Outbound e-mail generation and submission software then builds customized e-mail messages, matching the behavior prediction codes with pre-written text copy alternatives. For example, a customer likely to refinance a mortgage would receive a different salutation, body copy (with relevant Web links), and time-limited offer than a potential customer for an annuity.

� IBM might also modify the client’s Web site by requiring user registration and then planting a cookie on the customers’ PC.

– Using the cookie, specialized Web analysis software would record all future visits to the site, including date and time, forwarding URL (i.e., from what site if any the customer arrived), the individual pages viewed during the session, and any banner or other ads clicked on.

– This data would then be added to the existing customer profile and customer interests then projected.

– At each future visit, Web personalization software would match those interests with existing, electronically-stored content, and then serve the content and hyperlinks believed to be of highest value to the visitor.

The object of these activities is to proactively supply the information needed by each client, thereby diminishing the risk of customer defection.





� Enterprise Customer Analytics (ECA)




� MicroStrategy






� Siebel IBT

� Web Analytics

5.7 Global Infrastructure Strategy

OverviewThis is a consulting engagement intended to help companies identify the issues associated with a global infrastructure and to develop an approach to deal with them. The client might be planning to extend its existing single-nation infrastructure beyond its current boundaries, or be planning to integrate its existing multi-national infrastructures. IBM can bring extensive experience, knowledge, and research to help it achieve a successful transition.

This engagement will document the business plans and objectives, assess the current infrastructures, describe the technical environment and relevant issues for each nation, and develop a roadmap to outline a general approach for implementation. The description of technical environments and associated relevant issues will help educate the client in addressing a broad range of issues—including security and privacy, network infrastructure, language, currency, legal systems, business continuity, and data exchange. This Solution provides a context for the business and IT organizations to define and implement projects.

The Global Infrastructure Strategy Solution should contain the following:




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� An assessment of the current infrastructures, the end-states and transitional states of the technical infrastructures, and those high-level business processes likely to be impacted

� An identification of key business objectives, drivers, and time frames

� A discussion of alternative approaches

� The identification of key issues and the proposed resolutions, including cultural norms and language differences

� An assessment of threats and risks to achieving the desired global infrastructure

� A phased approach to technology implementation that bundles the business and technical items in timed-release packages

ExampleA large multi-national financial services company with geographically dispersed subsidiaries and a wide ranging portfolio asked IBM to help review its existing IT infrastructure and develop a plan to improve operational efficiency. After discussing and developing an understanding of goals and objectives, IBM conducted an assessment of the existing infrastructures and developed several alternative Solutions for review with the client. Alternatives included the standardization of technologies and platforms for call centers and Internet access to support potential future initiatives related to global Web-selling, customer-centered strategy, and the consolidation of some of the contact centers. Each Solution included an assessment of threats and risks and identified the gaps within the current infrastructure. Specific IT and business issues associated with each Solution were documented and discussed, and a business case developed to support the selected alternative. This business case was based on a phased implementation to minimize project risks and align with the business objective timetables.



� Business Continuity and Recovery

� Content Hosting


� e-business Management System

� e-Start

� ETI•EXTRACT®



� EZ Mart


� Financial Services Data Model (FSDM)

� Financial Services Information Framework (IFW)

� Hosting/Outsourcing



� Integration Hub

� MQSeries/MQSFSE



� Web Selling—Globalization Planning

� WebSphere


5.8 Interactive Branding




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OverviewBranding is one of the most effective ways a company can differentiate and build customer loyalty in today’s overcrowded marketplace. A well-developed brand can communicate its superiority through the images, messages, emotions, information, products, and opinions it represents. A challenge for most clients is managing, protecting, and consistently leveraging its brand. As brands become more global and encompass more and more elements—such as new products, mergers, sub-brands, and additional brands—these challenges increase.

The digital world has created a new dimension for brands. Unlike more traditional mediums, the Internet provides a unique experience to people who use it—interaction. Brands must engage their users on a different, more dynamic level. Currently, most financial services Web sites have little differentiation. Absent the logo, it’s difficult to attribute a site to any specific institution. Helping address this issue is an excellent opportunity for IBM.

Interactive branding is the process by which an institution’s vision, culture, and business is translated into a powerful online presence that embodies and enhances the traditional brand for the interactive realm. It includes where the brand is today and where is wants to go in the future. A compelling, well-positioned, and communicated e-brand will build customer loyalty, preference among prospects, and a sense of common purpose within an organization. In the digital space, the brand moves from a focus of customer awareness to one of total customer experience. A compelling and commanding e-brand must be customer-driven, competitively differentiating, and include a common and consistent branding experience across navigation, design, customer experience, and overall look and feel.

ExampleThe client has recently developed a new corporate branding strategy and associated advertising campaign for its newly merged corporation. This strategy does not incorporate the uniqueness of the interactive environment. IBM has helped the client recognize that there is no differentiation in the branding of its site relative to its key competitors—take the logos away and it is difficult to tell whose site it is. As a result, IBM has been asked to help build an interactive branding strategy and visualization.

� The engagement begins by understanding the current branding strategy in order to facilitate translation of the current brand into the digital space.

� Next, IBM reviews existing research to incorporate current thinking into the strategy, then assesses and analyzes competitive brands to ensure a differentiated approach.


� Using home interviews, focus groups, and/or quantitative research, a detailed understanding of the customer is developed—including how customers perceive this institution, its peer institutions, and the digital space.

� IBM then develops an understanding of the key customer differentiators and conducts workshops with key stakeholders to:

– Share client and competitive research findings

– Validate brand attributes

– Develop an understanding of the translation from offline to online

– Ensure client buy-in

The e-branding strategy is then created and delivered to the client, including:

Relevant components� Branding Solutions

� Knowledge Management

� Market Analysis and Strategy

� Market Structure Analysis

� Target Audience and Market Segmentation

� Positioning concept (customer view) and statement (internal view)—the message the brand communicates about itself to its customers

� Attributes—the customer brand characteristics that embody the essence of the brand

� Brand architecture—the high-level framework for understanding the role of the brand and the linkage of co-brands or alliance brands to the corporate brand

� Online/offline model—the linkage between the traditional and the digital brand, as well as the uniqueness of the digital brand identity

� Research analysis—the competitive and customer research conclusions to ensure the results are customer-driven

� e-branding brief—a creative process guide that helps bridge the gap between strategy and execution

� Thin layer visualization—a depiction of the digital strategy

� Recommended linkages—to other areas of the institution

� Tools and techniques—that adopt the strategy for execution

� e-brand management systems—to ensure operationalization of the strategy across initiatives and business processes


� Customer Satisfaction, Loyalty, and Retention

� New Product and Services Innovation

� Brand Valuation

� Brand Building Architecture

� Predictive Modeling

� Financial and Econometric Modeling

5.9 Package Integration

OverviewMany Solutions require the implementation of software developed by IBM or independent software vendors (ISVs)1 to enable specific business functions. These packages must be integrated within the existing business architecture and environment of the financial services firm. The process by which these products are customized and integrated into the client’s business, application, data, and technical architectures is known as Package Integration.

There are two distinct pieces of Package Integration, each starting with business requirements and macro-design, customization, and integration. Customization involves modifying the ISV product to fit the client’s specific business processing needs, while integration entails fitting the ISV product into the application, data, and technical architecture in a seamless way.




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1 also known as Solution Developers


ExampleA client determines that a contact management package is necessary in order to facilitate distribution of leads for marketing campaigns, and for tracking the interactions of sales representatives with prospective customers based on those marketing campaigns. The client then determines that a leading contact management system could with some customization enable the required business functions. IBM consultants work with the client’s business and IT representatives to:

� Assess and document business needs

� Define package evaluation criteria

� Participate in package evaluation

� Assess modification needs

� Develop modifications

� Make unit and user acceptance test modifications

� Integration-test the modified package

� Assist in training and package deployment

Relevant components� Client Information Integration System (CIIS)

� Contact Center Assessment (CCA)


� ETI•EXTRACT®



� Integration Hub


� MQSeries/MQSFSE

� netCallCentre




� Siebel IBT

� Web Analytics

� WebSphere



5.10 Product/Portfolio Planning and Pricing

OverviewFinancial Services firms must develop a portfolio of products and services which provide a compelling value to their end-customers in order to be competitive in today's business environment. This requirement is found in nearly all financial sector firms, ranging in focus from the development of the features and functions of an individual product from a single manufacturer to the development and pricing of a complete portfolio of products and services to meet the needs of the firm’s highly-valued customers.

Product/Portfolio Planning and Pricing is a consulting Solution Offering aimed at product development, servicing, and marketing professionals in financial services firms. It involves development of a menu of the products and services required by the institution and its marketing strategists to place those products with its targeted prospects and customers. Customer-segment needs drive product and portfolio development. Product and portfolio pricing is based on market and competitor positioning and customer feedback.

ExampleA client has asked for assistance in analyzing its customer base so that it can understand which customers are most highly valued, develop a portfolio of products and services which is most appropriate for those customers, and provide those products and services consistently wherever and whenever a customer interacts with the firm.

� The engagement begins with the identification of customer segments and the products and services needed by customers in those segments.




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� Although the engagement is initially limited to products manufactured by its firm, the client recognizes that it must reach out to other product manufacturers to provide an overall portfolio which appeals to the targeted customer group. An assessment of the customer’s current touchpoints and architecture required to support changes to these in order to support new needs is also required. The client staff works with IBM consultants to develop these business requirements and a roadmap.

� Solutions to infrastructure needs are then developed.

� IBM then assists the client’s staff with the development, testing, and deployment of the infrastructure required to meet the needs of its highly-valued customers.

Relevant components� Customer Loyalty Management System


� Entity Profiling Management System (EPMS)



� New Product and Services Innovation

� MicroStrategy


� SAS


5.11 Risk Management




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OverviewRisk Management is a consulting Solution aimed at CEO, CIO, COO, finance, actuarial, risk management, and product development professionals within the financial industry. This Solution has two scenarios under which it might apply, depending on the transition opportunity.

Corporate risk management is appropriate for all transition opportunities and involves educating institutional clients as to the risks surrounding business activities in which they are engaged, developing an infrastructure to address those risks, and implementing an infrastructure to address the business needs and minimize the risks within the relevant channels. As institutional clients develop business capabilities— especially e-business capabilities—the level and type of risk to which they are subject is changing. They need to understand this and address it from a risk management and product point of view. Key Components of this Solution include assessment and use of risk management tools as well as access to data.

A second Risk Management Solution is specific to advisory-based Wealth Management transition opportunities. This broad Solution can include the ability to calculate various risks and then apply those calculations to customer product portfolios and behaviors. This Solution can be extended to pervasive computing ploys designed to initiate customer alerts and trigger responses.

ExampleA client has elected to provide its customers with access to retirement plan statements via the Internet. Information on these accounts is found in an existing administrative system. Access to this system is currently limited to plan administrators who are associated with plan sponsors. The client needs to understand the security and risk issues associated with providing access to data from its existing administrative system to a broader audience.

� The engagement begins with the identification of system users and different access rules required to provide privacy and to limit corporate risk attendant on data availability.

� Privacy concerns are identified and infrastructure needs developed.

� IBM then assists the client staff with the development, testing, and deployment of the infrastructure to meet the needs of its highly-valued customers.

Relevant components� Contact Center Assessment (CCA)


� Deep Green


� Integration Hub

� MicroStrategy

� MQSeries/MQSFSE

� netCallCentre



� SAS


� Underwriting Profitability Analysis (UPA)

� WebSphere


5.12 Sales Force Automation (SFA)

OverviewThis is a collection of integrated applications that provide sales representatives with the ability to do sales forecasting, proposals, presentations, scheduling, sales analysis, and e-mail. SFA is most effective when the sales processes of a business are closely aligned with the application of information technology. The most effective systems are those that help sales representative in the actual selling process, thereby enhancing their effectiveness. SFA includes lead/account management, contact management, quote management, forecasting, and sales administration. Implementation of an SFA Solution involves key infrastructure requirements, including mobile synchronization and integrated product configuration.

The benefits of using SFA include:




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� Increased sales productivity

� Lower sales cost as a percentage of gross profit margin

� Improved sales cycle management

� Improved management and closure of trade show leads

� Improved management and closure of marketing effort

� Increased teamwork and team selling

� Higher efficiency

� Higher profitability

� Reduction in order process errors

� More time for representatives to sell

ExampleIn an attempt to increase efficiency and effectiveness, a client has decided to pursue Sales Force Automation.

� After a review of the current processes and automation level, IBM recommends a Solution that includes a package providing several sales and tracking tools.

� Working with IBM, the client selects a package and designs the required infrastructure enhancements. Sales force training on the new tools and technology is integrated into the implementation plan.

� The Solution is initially focused on automation of existing processes, but considers future integration with other sales processes such as Campaign Management which could require several additional components—e.g., data warehouse, data marts, target audience, and market segmentation.

� IBM then assists the client staff with the development, testing, and deployment of the new SFA package and its integration with previously-existing applications.

Relevant components� Business Case Development





� Integration Hub

� MicroStrategy


� MQSeries/MQSFSE

� netCallCentre

� Onyx ASP

� Pervasive Computing—MeB


� SAS

� Siebel ASP


� Siebel IBT

� Vality

� WebSphere


5.13 Sell & Support Strategy and Roadmap

OverviewCustomer demands and increased competition from both traditional and new mono-line and channel entrants have made it imperative that financial services firms transition to a customer-centric business model. The objective of such a model is to more efficiently acquire, grow, and retain customers in desired segments. The impacts are widespread, potentially redefining a company’s go-to-market, product development, channel management, marketing, and customer service strategies, and financial reporting measurements. Sell & Support Strategy and Roadmap is a Solution Offering specifically designed to help clients refine their unique visions of what it means to be customer-centric. This engagement will answer such questions as:




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� Which customer segments are the most profitable today? What are the drivers of segment profitability? Are the segments of sufficient size and can they be adequately penetrated to support the business?

� What products do these segments want and need? Are these products manufactured today? If not, what are the costs in people, processes, and technology to manufacture them? Is outsourcing or partnering an economically viable option?

� Through which channels (i.e., touchpoints) do these segments want products delivered? Are these channels operational today? If not, what is the cost to make them operational, and by what date? How will these changes impact (or complement) the existing enterprise IT strategy?

� What level of service quality do these segments expect? How does this compare to the level of service delivered today? What are the associated cultural, personnel, process, technological, and financial impacts associated with transitioning to the desired end-state?

� How will new product, channel, and servicing capabilities be communicated to customers? What is the quality of the data warehouse that will become the engine for such communications?

� How are competitors expected to respond? Does such response validate or jeopardize this new business model?

The output from this engagement includes well-documented business and customer strategies and a roadmap that articulates how to transition from current state to desired end-state. The roadmap results from a series of assessments of strategy, people (i.e., skill sets), business processes, and technology. This engagement is a critical first step in all three Big Plays.

ExampleA client asks for help in transitioning from a product-centric to a customer-centric enterprise.

� The engagement begins with a high-level review of business direction, strategy, and objectives in order to scope the desired company end-state.

� This end-state will then be compared to both the current and hypothesized end-states for each key competitor, and an assessment made as to the achievability and economic viability of the client’s desired end-state.

� Next, the required technological infrastructure is hypothesized and overlaid on the present one, with particular attention paid to data availability, quality, warehousing, and delivery channel functionality.

� Estimates of transition cost and turn-time are then formulated.


� Similar assessments are made on the relevance of existing business processes and the presence of required skill sets needed in the future.

� The collective gap analyses derived from each assessment will be the foundation of a roadmap to operationalize the desired end-state.

Relevant Components� Becoming Customer Centric


� Business Process Organizational Model


� Customer Loyalty Suite

� Customer-Centered Strategy and Roadmap

� Customer Focused Processes and Channels

� Customer Loyalty Management System

� Customer Management Assessment (CMA/CMAT)

� Enterprise Performance Suite (EPS)





� Market Structure Analysis

� Target Audience and Market Segmentation



� Skills Management



5.14 Web Enablement

OverviewWeb Enablement opens clients’ back-end legacy application systems to e-business (Internet, intranet, and extranet) integration. These applications have both business logic and the data needed to support client initiatives—e.g., consumer self-service and touchpoint integration. In many situations, the established core applications will be entirely home-grown. In other cases, they will have been acquired from current-day (or predecessor) ISVs. Sometimes the back-end application might need to be replaced to provide the desired business capabilities.

The scope of business functions to be Web-enabled and the degree of required back-end integration can also vary dramatically. This could range from a simple online form filled out by the customer and integrated with the back-end application on a daily basis, to a series of complex forms providing immediate responses and completion of the business function online. The Web enablement can be to support marketing, online sales, customer service, or other key business functions.

Regardless of the technology, applications, or scope of the engagement, clients will face significant issues during planning and deployment—e.g., skill shortages, cost considerations, and business functionality.

ExampleA client has asked for assistance to Web-enable its customer service functions to help reduce call volumes to its service center.

� The engagement begins with the identification of the key business objectives and time frames, an assessment of the current infrastructure and applications, and discussion of alternative approaches.




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� Although the engagement is initially limited to Web-enabling multiple existing back-end applications, the client is educated about the need for a complete customer-centric business architecture and the gaps that currently exist (e.g., security, high availability, Web site integration with the call center, and customer information).

� With the scope of the initial engagement agreed upon, Web site application and infrastructure planning and design begin.

� The client staff works with the IBM consultants to learn the new technologies and products.

� The infrastructure requires an integration hub to manage messages to multiple back-end applications, new application development tools are introduced and the client staff trained, and the Web site and its integration with the back-end applications is designed.

� IBM then assists the client staff with the development, testing, and deployment of the site.

Relevant components� Business Continuity and Recovery

� ChannelPoint


� Common Transactional Protocols and Formats



� e-Start




� Integration Hub


� MQSeries/MQSFSE

� netCallCentre

� Onyx ASP





� Siebel ASP


� Siebel IBT

� WebSphere


Table 5-2 on page 91 relates Solutions to customer-centric business architectures.


Customer-centric business architecturesTable 5-2 Solution Offering-applicable customer-centric Business Architectures

Solution Str

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Campaign Management X X X X X X X X X X

Channel Management X X

Contact Management X X X X X X X X

Conversion and Data Rationalization X

Data Mart Design and Implementation X X X X X X X

Dynamic Personalization X X X X X X X

Global Infrastructure Strategy X X X

Interactive Branding X

Package Integration X X X X X X X X X

Product/Portfolio Planning and Pricing X X

Risk Management X

Sales Force Automation X X X X X X X

Sell & Support Strategy and Road Map X X X

Web Enablement X X X X X X X X


Chapter 6. Solution Components

This chapter provides a brief description of the business consulting and I/T Service Components that make up the Sell and Support Solutions.

Each Component has a short summary in the format of:

� Overview

� Customer value proposition

� Customer profile (when available or if it can be made public)

Since this list contains products, ISVs1, and consulting services that will continue to change, it is not meant to be viewed as an exhaustive list. Additions, revisions, and other updates are expected to recur.

Additional information can be found on the IBM Home Web site, IGS Solutions Web site, or the Intellectual Capital Web site.

6

1 Independent software vendors (aka Solution Developers)


Figure 6-1 Solutions leverage tools and assets, and engagements can begin anywhere in the continuum.

General overview of ComponentsChapter 5’s Solutions are each comprised of one or more Components. This chapter now describes those Components, which are listed alphabetically.

First, however, Table 6-1 on page 95 relates these Components to their Business Architectures and Transition Opportunities.

Sale

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Know the customer














Components

CustomerLoyalty

WealthManagement


Mobile Internet




Table 6-1 Solution Component-applicable Business Architectures and Transition Opportunities


Component Transition Opportunity

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Strategy &Planning

Becoming Customer Centric X

Branding Solutions X X

Business Case Development X X X X X

Business Process Organizational Model X X

Contact Center Assessment X

Customer Loyalty Suite X X X X X

Customer Management Assessment X

e-business Management System X X

Insurance Application Architecture (IAA) X

Knowledge Management X

Market Analysis and Strategy X

Predictive Modeling X

Security and Privacy X X

Skills Management X X

Target Audience and Market Segmentation X

Chapter 6. Solution Components 95

Web Selling—Globalization Planning X

Web Selling—ROWI X X

Channel Enablement

Customer Value-Add Process

Personalization

Branding Solutions X X

ChannelPoint X

Contact Center Assessment X

Customer Prospect Optimizer X

Deep Green X X

Enterprise Customer Analytics X

Financial Fusion X

Integrated Voice and Data Networks X

Kana Customization X


MicroStrategy X

netCallCentre X

Onyx ASP



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Operations and Process Design for Interactive Transactions X

Pervasive Computing—MeB X

S1 X X

Siebel ASP X

Siebel Customization X

Siebel IBT X

Third Party Data Integration X

Xchange X

Enterprise Client File

Client Information Integration Systems X

Customer File Design and Implementation X

ETI-Extract X

Evoke X

Third Party Data Integration X

Vality X



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Out Tasking Business Continuity and Recovery X

Content Hosting X X

Help Desk X

Hosting/Outsourcing X

netCallCentre X

Onyx ASP X

Program Management X X X X X

Siebel ASP X

Core Business Process

Business Process Organizational Model X X


Operations and Process Design for Interactive Transactions X



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Data Warehouse

Data Marts


Banking Data Warehouse (BDW) X

Deep Green X X


Enterprise Customer Analytics X

Enterprise Performance Suite X X

Entity Profiling Management System X

ETI-Extract X

Evoke X

EZ Mart X

Financial Services Data Model X

Financial Services Information Framework X

Insurance Information Warehouse X

Intelligent Miner X

MicroStrategy X

SAS X

Segmentation and Scoring X



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Third Party Data Integration X X

Underwriting Profitability Analysis X

Vality X

Web Analytics X

Xchange X

Data Transformation & Integration


Common Transactional Protocols & Formats X

Customer File Design and Implementation X

Entity Profiling Management Systems (EPS) X

e-Start X X

ETI-Extract X

Evoke X

EZ Mart X X

Integrated Voice and Data Networks X

Integration Hub X X



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MQ Series/MQSFSE X X


Vality X

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Websphere BCC X X



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6.1 Banking Data Warehouse (BDW)

OverviewBDW enables financial institutions to rapidly build data warehouse Solutions to suit their specific needs. It allows the creation of a wide range of data warehouse Solutions—from departmental data marts to enterprise-wide data warehouses—and includes all of the key Components required for the core of a data warehousing Solution.

BDW consists of a series of more than 40 pre-defined business Solution templates. These logical templates make possible the rapid definition, scoping, and implementation of such commonly-required data warehouse applications as customer profitability, wallet share analysis, customer attrition analysis, and liquidity analysis. The main Components of BDW include:

� The Banking Data Warehouse Model—a model that provides pre-defined data warehouse structures for financial institutions.

� Pre-defined Solution templates—specific data mart structures for a number of pre-defined business Solution areas.

� Financial Services Data Model—Financial Services Data Model AB Level is an enterprise-wide data model and the communication device used to link the pre-defined business Solutions to BDW and the financial institution’s data.

� Banking Data Warehouse Database—the physical DB2 database that contains all of the BDWM’s business coverage.

This database is forward-engineered from the BDWM.

� Data Mart Data Structures—the set of data structures used to store data for specific groups of users.

These data structures can be generated from the pre-defined business templates.




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� Business Solutions—an application or environment that addresses a particular business function.

The BDW’s end result is a set of business Solutions that is customized to meet the specific needs of the financial institution’s various users. These Solutions can include spreadsheet-based reports, screens that are based on data warehouse reporting tools, and specific applications in areas such as Campaign Management, Customer Profiling, Profitability, and Risk.

Customer value propositionBDW provides a fast start for implementing a Solution to provide data quickly and in a format that greatly improves the decision-making process. Using pre-defined templates, it allows financial institutions to exploit the full potential of information previously locked in legacy systems. Its data warehouse holds business data that can be used as the basis for a detailed analysis of those areas of most concern to today’s decision makers.

� Financial Services Object Model (FSOM)—can be used directly to guide the business Component of object-oriented (OO) development.

In addition, FSOM’s linkage to the other IFW business models can assist OO co-existence with legacy systems and the migration toward an OO environment.

� Financial Services Data Model (FSDM)—a layered, enterprise data model containing at least 80% of the institution’s overall business data.

BDW is comprised of a proven, flexible, and scalable warehouse technical infrastructure. It enables a financial institution to rapidly implement a comprehensive data warehouse Solution. This Solution makes possible the rapid delivery of business value without compromising the need for a sound, scalable technical data warehouse infrastructure.


6.2 Becoming Customer Centric

OverviewThis is an introductory, cross-industry, non-technical offering delivered to a client in a one- to two-day workshop as either an education session or an executive workshop. It is geared toward a business executive audience and introduces CRM-related concepts. Participants view educational material as well as video clips of case studies and work toward the creation of a “Relationship Map” and a prioritized action plan.

The content of Becoming Customer Centric is formatted into these seven modules plus an optional Maturity Model Survey:

1. Owning your Customer’s Total Experience

2. Defining CRM

3. Going Beyond the Transaction

4. Customer Segmentation and Relationship Mapping

5. Using Customer Intelligence

6. The Evolution of Customer Relationships in an e-marketplace

7. Becoming Customer Centric—The Reality

The Maturity Model Survey is an assessment process that uses over 50 audit points to measure the organization’s customer centricity level based on four high-level CRM Survey points—vision, intelligence, access, and information.




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Customer value propositionThis offering is designed to build IBM credibility with business executives. It provides a means of testing and building commitment to CRM within an enterprise, serves as an excellent qualifier for future sales investments in the customer, and allows IBM to present and sell CRM strategy early in the selling cycle to better facilitate a well-executed CRM strategy.


6.3 Branding Solutions

OverviewThe IBM Centers for e-business Innovation and e-branding Solutions provide the brand guidance and execution support to create brand-consistent and effective, interactive e-business Solutions. The Interactive Branding and Design Solution assists a brand in building its online presence with the support of the following capabilities:

� Brand research

� Brand positioning

� Brand attribute definition

� Brand to Customer Value Proposition

� Brand identity development

� Competitive brand analysis

� Brand channel analysis

� Brand-to-customer-connection definition

� e-channel customer pathways definition

� Integrated Solution design and development

� Interactive/strategy affiliate marketing

� Online promotional e-branding Solutions

Customer value propositionIBM’s Interactive Branding and Design Solution will support clients in improving their marketing, sales, and customer service capabilities by:

� Assisting clients in establishing a competitive and unique brand strategy/ positioning for implementing e-channels across their organizations




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� Assisting clients to develop and deliver a compelling and interactive brand experience across multiple channels consistent with their corporate, product, or channel “brand” strategy

� Integrating the strengths and services of several practices


6.4 Business Case Development

OverviewFour iterations for the business case can be developed for a Customer Loyalty engagement:

1. In the exploratory phase—to assist the client in obtaining funding for the strategy engagement

2. While developing the Customer Loyalty strategy—to validate assumptions and begin partnering with the client

3. After strategic initiatives have been recommended—to develop the first detailed case to determine the estimated benefits and required investments

4. While finalizing the business case—after prioritizing initiatives with the client to understand net present value

Customer value propositionIBM has developed models and techniques for demonstrating the benefits of a Customer Loyalty improvement program in the Financial Services Sector. Practitioners can utilize supporting materials to guide them in tailoring their use of the ROI model for each specific engagement. These supporting materials include task descriptions, technique papers, workbook templates, and examples.

� Pre-engagement Marketing Task

� Define Business Case

� Update Business Case

� Finalize Business Case

� Technique—Using the business case tool

� Technique—Populating the business case—Iteration 1





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� ROI Model Iteration 1-2

� ROI Model Iteration 3-4

� ROI Model Iteration 1 Example





6.5 Business Continuity and Recovery

OverviewA client’s data center is performing flawlessly, the network is up, and the call center is operating normally. But over the last 24 hours, that company lost millions of dollars in market capitalization. A degradation in the performance of a Web server coupled with staff shortages has led to a complete outage of the client’s online business. Could this disaster have been prevented?

Until recently, classic recovery planning focused on how to restore centralized data centers in the event of a natural or man-made catastrophe. It did not address the need for continuous operation of key business processes. While traditional measures remain important, they are far from adequate for distributed computing environments. The requirements for continuous operation in today’s e-business setting are even more complex and challenging.

Customer value propositionThe goal for today’s companies is to achieve a state of business continuity where critical systems and networks are available 24x7x365. To attain and sustain this level, companies must engineer availability, security, and reliability into every process from the outset. Listed below are some of the key success factors to keep in mind when evaluating a service provider’s ability to deliver true business continuity Solutions:

� The ability to understand the integration of IT with business strategy, and to define the risks and impacts of a disruption to critical IT infrastructures

� An understanding of e-business dependencies and business-critical requirements

� Support for multi-vendor, multi-platform IT environments

� A significant investment in state-of-the-art facilities and tools, and the financial wherewithal to continue investing




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� Integrated Solutions to assure availability of non-data center resources—including networks, end-user work space, and call centers

� Skills and resources to manage complex continuity programs in a rapidly changing, networked IT environment

� Access to the latest technology, constantly refreshed to reflect the needs of the market

To assure survival, companies must adopt proven strategies to protect both business processes and vital information, while implementing corporate-wide programs for continuity and recovery management.


6.6 Business Process Organizational Model

OverviewOne of the major issues encountered by companies seeking to achieve higher levels of customer centricity and greater integration of Web channels in their businesses is the inability of legacy organizational models to effectively execute new customer-centric processes. IBM brings design tools and methodology to build more effective organizational models and to help the client manage the transition of implementation.

Customer value propositionIBM constructs organizational models and related management roles and responsibilities which enable the execution of processes designed to enhance customer centricity. IBM also uses Business Process Re-engineering and Change Management methodologies to construct an approach and action plan for implementation. The new organizational model will usually reflect a matrixed approach to enable effective process execution across functional organizational units and/or LOBs. This model delivers the organizational enablement for the client to cost-effectively identify customers and manage customer interactions for desired results.




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6.7 ChannelPoint

OverviewChannelPoint and IBM have formed a world-wide strategic alliance designed to jointly deliver next-generation e-marketplace Solutions to the insurance and financial services industries.

ChannelPoint's software applications and professional services offerings are designed to meet the evolving needs of insurance carriers, distributors, and buyers. Its technologies leverage the power of the Internet to streamline and automate the insurance distribution process in order to facilitate end-to-end transaction processing.

The combined technologies of IBM and ChannelPoint provide insurance and financial services companies with the architecture and technology required to deploy state-of-the-art B2B and B2C e-commerce applications and services. The combination of IBM’s hardware platforms, middleware, and services with ChannelPoint’s insurance-specific software, technology, and services create powerful and unmatched B2B e-enterprise and e-marketplace Solutions to drive significant, measurable business results.

IBM/ChannelPoint Solutions include:

� Application software—ChannelPoint’s Life, Property & Casualty, and Health Suites of software and Insurance Technology Framework

� Middleware—IBM’s WebSphere, MQSeries, DB2, Data Models/IAA, and Tivoli Application Services:

– IBM and ChannelPoint offer installation, training, and maintenance solution integration

– IBM and ChannelPoint provide services to help integrate this Solution into the company’s existing structure




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� System integration—IBM provide’s hardware and software system integration services

� Consulting—IBM and ChannelPoint provide e-business consulting

� Hosting services—IBM provides hosting services to provide full ASP capability

� Hardware platform—IBM provides RS/6000 and Netfinity hardware platforms.

Customer value propositionIBM/ChannelPoint Solutions for insurance distribution and servicing e-business are designed to drive significant, measurable business results, such as:

1. Substantial cost reduction

– Up to 66% decrease in sales cycle time

– 10% to 15% decrease in Sales and Marketing expense for life insurance

– Up to a 50% decrease in issue admin expense

– Up to 66% decrease in underwriting expense

2. Reduction of duplicate infrastructures

3. Significant revenue growth with improved sales and marketing time

4. Superior customer service

ChannelPoint has developed an insurance technology architecture which makes possible the creation of dynamic electronic marketplaces (e-markets) that bring together buyers and sellers of insurance products. ChannelPoint's technology electronically links insurance carriers with distribution channels—ranging from traditional brokers that sell the majority of insurance today to banks, financial brokerage firms, and other emerging distribution channels such as Internet portals. Using ChannelPoint's technology, individual carriers or groups of carriers can create e-markets that are customized to their particular distribution strategies. Carriers and distributors can significantly decrease costs, increase revenue, and improve service levels by using ChannelPoint's applications and Exchange Platform technology to conduct e-insurance transactions.


6.8 Client Information Integration System (CIIS)

OverviewCIIS offers insurance and banking providers a practical way of consolidating active customer information into a single, enterprise-wide view, and makes this information broadly available across all customer contact points and for follow-up analysis and decision-making.

CIIS is an operational client management system that works independently from while in parallel to an existing provider’s operational systems. It draws customer data from many customer contacts, other external data sources, and legacy systems, consolidating it into a single repository. This repository can then be used as a source for data warehousing, data mining, and other customer-management activities.

It also is possible to use CIIS’s client information as a data source for decision-making with the Components of IBM’s DecisionEdge, a suite of CRM business intelligence Solutions. Acting as a crucial source of customer information, CIIS is the real-time transactional database that provides DecisionEdge relationship management.

Customer value propositionWith CIIS, providers can significantly shorten customer sales and service developments cycles and dramatically reduce the costs associated with building a client management system from scratch.

CIIS allows providers to:

� Improve the profitability and satisfaction of customer relationships by managing customer contacts more effectively

� Increase cross-selling to existing clients by using detailed customer and product data more efficiently




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� Enhance the scope of their products and services to respond more quickly to new opportunities and changing market conditions

� Sharpen market segments by storing and accessing information that allows them to target high-value relationships

� Tailor their offerings more closely to the needs of each client

� Raise service quality across all company access points by providing appropriate, quick, and effective responses to client needs and opportunities


6.9 Common Transactional Protocols and Formats

OverviewOne of the major issues encountered by companies seeking to achieve higher levels of customer centricity and greater integration of Web channels in their businesses is the diverse communications/processing requirements of their legacy systems. IBM brings assets and systems integration features that can enable a client to deploy market strategies more quickly than legacy systems can be re-engineered.

Customer value propositionIBM uses process models and application adapters to define and implement common protocols and formats for a given transaction, irrespective of the data stores that must be updated or the legacy processes that still use those stores. MQSFSE (see MQSeries/MQSFSE definitions in section 6.39) is an asset which enhances the timely deployment of these standards by creating a messaging hub between various systems and the database engine, and providing tools to convert and implement this change—an invaluable capability in application/ system integration and legacy reuse.




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6.10 Contact Center Assessment (CCA)

OverviewCCA’s purpose is to examine and report on the current state of a client’s contact center strategy, capabilities, enablers, and operations. Its scope includes a review of all access channels for sales and service operations. This assessment is based on a structured process and categorization of the components and activities within the contact center.

Customer value propositionThe value to the customer is in the deliverables from14 areas or “points” addressed in this assessment:

1. Vision, mission, objectives, and strategy (VMOS)—assessment of the corporate direction of the business, and alignment of this strategy for CRM

2. Customer management—assessment of the client’s Customer Value Management, Customer Satisfaction, and Customer Loyalty strategies

3. Channel management—assessment of assisted and unassisted enterprise access points

4. Contact management—assessment of the contact interaction flows, essentials processed, and message delivery of the contact center

5. Staff management—assessment of the skills profiles, hiring, compensation, staffing, and scheduling practices of the contact center

6. Education and training—assessment of career development, formal training, and mentoring programs available to contact center staff

7. Data, information, and decisions—assessment of data sources, quality, mining and storage, and application of information for contact enrichment

8. Performance management—assessment of the enterprise and departmental relationship agreements and metrics for capacity, throughput, quality, people, and processes




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9. Communication infrastructure—assessment of the voice and data infrastructure and networks inside the contact center

10.e-enablement—assessment of organization, processes, and technology to support both assisted and unassisted online sales and service

11.Applications and databases—assessment of legacy application interfaces, desktops, user tools, and physical infrastructure supporting the contact center

12.Delivery options—assessment of capabilities for outsourcing as well as in-sourcing contact center components

13.Facilities and business recovery—assessment of contact center locations, design, and physical components, as well as the labor pool, business continuity plans, and backup procedures

14.investments—assessment of the client’s strategy compared to accumulated data on established norms in other contact centers as based on market share and satisfaction value


6.11 Content Hosting

OverviewWeb hosting today is a major, rapidly expanding, and highly lucrative market segment. For our traditional large enterprise customers—as well as new dot-com and mid-market companies—Web hosting can be the best and fastest way to bring business-critical Web-based solutions online.

To better serve these customers, IBM is rapidly expanding its managed e-business services portfolio to offer the full continuum of Web hosting services—from basic co-location (space, bandwidth, and power) and flexible a la carte services to fully-managed outsourced hosting environments. We also offer segment-specific solutions for such rapidly-growing sectors as B2B e-marketplaces and application service providers (ASPs)—along with enabling solutions such as e-commerce services. Plus, we’re extending this continuum to the edge of the network to provide storage utilities, streaming media services, and industry-based trading network solutions. To enable this blended strategy, IBM continues to forge major strategic alliances with data center facilities providers, world-class carriers, and leading-edge Internet technology companies.

Different companies have distinct needs in managing their e-business environments. While some want to retain substantial control, others welcome extensive expert assistance. Regardless of the approach, the primary importance is the agility to readily shift priorities as business changes.

Co-location servicesIBM e-business Hosting Centers and Management Services allows the client to retain operational responsibility over the hosting infrastructure while taking advantage of IBM’s superior data center operations and high-speed Internet access. IBM offers flexible, cost-effective solutions that can provide a protected, fail-safe environment and help reduce downtime for Internet operations.




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The standard co-location packages includes floor space, power, Internet bandwidth, basic monitoring, and customer support. Optionally, the client can bring its own servers (IBM or non-IBM), select the software, and decide how much assistance it wants in managing its Web environment.

A high-level summary of services includes:

� Rack/cage/suite—project management, 24x7 network monitoring, URL monitoring, and reboot service with rack and DNS setup

� Network bandwidth—dedicated and burstable back-end connectivity

� Network caching—cache setup and content distribution

� Provisioning—IBM or OEM

� Load balancing—cross-site, multi-path inside the center

� Backup/recovery—planning and implementation

� Security services—intrusion detection, vulnerability analysis, and managed firewall

� Managed monitoring—CPU, disk space, swap space, and memory utilization

� Systems administration and server management—NOS administration, general logical/physical management, configuration management, operations, physical database administration, and script writing

� Application services—hardware maintenance, capacity planning and performance management, stress testing, systems management consulting, business recovery services, Web traffic analysis, application development, groupware management, and systems integration

Fully-managed servicesWhen your customer’s e-business demands mission-critical applications delivered with high performance, security, and availability, an IBM fully-managed solution might be the right choice.

Some of the most heavily-trafficked sites on the Web already rely on IBM for complete management of their hosting efforts. In fact, IBM fully manages more than 73,000 servers from multiple hardware vendors in 133 data centers worldwide. IBM fully-managed hosting means just that. Our e-business hosting services encompass far more than simply the security, scalability, and basic monitoring features that other providers call “full-service management.” Our solutions can be customized to include content creation, integrated commerce, back-end connectivity, and complex systems integration.


We are able to deliver such a complete continuum of services in large part because of the uniformity and industry-leading standards of our global data centers.

Customer value propositionIBM e-business Hosting Centers and Universal Server Farm environments are equipped with fast, redundant fiber connections—with no single point of failure—for optimum network availability. IBM also offers high-speed Internet access with burstable bandwidth-on-demand, which enables the client’s site to effectively accommodate increasing numbers of hits up to the limits of its connection size. IBM can deliver industry-leading network service levels and support. We maintain numerous strategic partnerships and alliances with major telecommunications carriers and Internet service providers for bandwidth and network management—including AT&T, UUNet, and Qwest.

These offerings provide redundant, reliable networks with no single point of failure. They offer the flexible service and support options that most companies require. The client receives physical and data-transfer security features. These offerings allow for rapid deployment of Web presence and provide superior worldwide customer support.

Additional information is available at the MeB Website:

http://w3-1.ibm.com/services/so/e-business_hosting/index.html

IGS Cross-Selling Awareness Training has good overview information on all IGS LOBs including Managed e-business Services at:

http://w3-1.ibm.com/services/salesone/sales/awarenesstraining.html


6.12 Customer File Design and Implementation

OverviewThis Component provides a single, long-running, enterprise-wide customer relationship by providing employees access to full customer information such as complete product/service history and/or personal preferences. It consolidates the customer data across function, system, application, and sources into a single view.

Customer value propositionIBM has consulting, asset, ISV package, and systems integration features that help a client move from product and LOB silo approaches to data storage with a relational operational view of all customer information. This component expedites the creation process by leveraging experience, data knowledge, and format through extensive iterations.




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6.13 Customer Loyalty Suite

OverviewThis component assesses the client’s status against the appropriate CRM/CVM/ CLM/CVI best practices. This can be done at the enterprise level (Customer-Centered Strategy and Roadmap) or for specific processes or channels.

Process, organization, and technology initiatives are recommended to close identified gaps. The resulting alignment between business capabilities and client needs can then be maintained by a management system ensuring ongoing, profitable customer relationship and loyalty management.

The Customer Loyalty Suite consists of three offerings:

� Customer-Centered Strategy and Roadmap

� Customer-Focused Processes and Channels

� Customer Loyalty Management System

Customer value propositionIBM can design and implement a Customer Loyalty Management Solution for a single LOB or for an entire enterprise. Either way, the capabilities underlying the Solution are the same. The goal is to validate or adjust the fundamental customer loyalty strategy. Two categories of metrics are important—strategic and operational.




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Customer strategy of the CRM holistic vs. point solution approach:

Existing CRM approaches have resulted in point Solutions at a department level using an inside-out and/or single competency (i.e. Customer Relationship Management (CRM), Business Intelligence (BI), or Customer Value Management (CVM)) approaches. This must be cross-enterprise to be successful.

Customer Loyalty based upon profitable relationships:

The customer loyalty business problem is more than just identifying, capturing, and retaining loyal customers. For customer loyalty to have any significance for an organization, it must be based upon profitable relationships. Adding the profitability dimension to customer loyalty further changes the techniques and approaches around CRM processes.

A system to monitor and track profitable customer relationships:

Strategic metrics include:

� Marketplace penetration versus goals

� Customer-acquisition effectiveness, as measured by marketing cost per new product sold

� Relationship depth by segment versus goal as a means of gauging cross-sell effectiveness wallet share

Operational metrics include:

� Manufacturing costs per product sold—by segment, geography, or channel

� Distribution costs per product sold—by segment, geography, or channel

� Servicing costs per customer—by segment, geography, or channel

� Ratio of new customers acquired to number of employees—by segment or geography

� Ratio of customers served to number of employees—by segment, geography, or channel


Whether the client is trying to address the issues of customer churn through retention strategies, increase traffic through better identification and target marketing processes, or improve conversion rates through personalization techniques, customers have become one of the most important assets an organization has. As with other assets, this means that there should be a management system in place to manage, monitor and report on the value of this asset and its contribution to the organization's overall profitability.

6.13.1 Customer-Centered Strategy and Roadmap� Scopes and gathers (or develops) the data required to define a

customer-centered management strategy

� Using the collected data, defines a customer strategy that ideally aligns with and supports the business strategy

� Assesses client versus customer-centered strategy end-state and develops an operational roadmap

6.13.2 Customer-Focused Processes and ChannelsCreates a customer-defined process/channel vision and action plan

6.13.3 Customer Loyalty Management SystemDefines a Component of an ongoing customer management system and action plan consisting of:

� Customer Value Index (CVI)

� Customer Data Management

� Customer/Market Segmentation

� Customer and Business Capabilities Alignment


6.14 Customer Management Assessment (CMA/CMAT)

OverviewThis Component consists of a consulting engagement leveraging CMAT, a Customer Management Assessment Tool Database that houses customer benchmarking information. The goal of Customer Management Assessment (CMA) is to assess the client’s customer management capabilities in order to determine prime improvement areas and likely benefits. Key Components of the offering include:

� An independent assessment of the client’s customer management capabilities

� A prioritized list of areas for improvement and their likely impact on business as determined by the management team

� Benchmarking the client against brand leaders to display gap analysis against best practices

� Recommendations on how to address key focus areas

This assessment is based on the QCi Customer Management Model shown in Figure 6-2 on page 128.




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Figure 6-2 Customer Management Model—QCi Ltd (a CRM consulting firm)

Derived from experiences with both clients and academicians, this model outlines the best practices for excellence in customer management forming the eight modules that comprise the different sections of the assessment:

1. Analysis and planning

2. Proposition

3. Customer management activity

4. People and organization

5. Processes

6. Measuring the effect

7. Customer experience

8. Information and technology

Customer value propositionDocumentation detailing the results of the assessments identifies:


� Strengths and weaknesses within the client, along with a set of structured recommendations in each of the areas that make up the customer management model

� Objective scoring comparing the client to other companies in the CMAT—with its benchmarking customer information

The assessment also includes a wide range of action areas—such as cultural change, marketing techniques, and technology—that are presented to the client management team to:

� Achieve management alignment and buy-in to drive the project requirements

� Set action priorities and establish direction

� Assist organizations in assessing how good they are at managing their most important resource—their customers

� Enable customers to quickly identify those areas needing improvement within their CRM programs

� Provide a benchmark against brand leaders, thus highlighting gaps against best practice

� Provide a checkpoint within an already established CRM program—i.e., measure benefits of actions already underway and/or reassess program direction to enable necessary corrective actions


6.15 Customer Prospect Optimizer (CPO)

OverviewRapid changes driven by deregulation, paired with the global availability of new tools and technologies, are forcing insurance companies to compete as never before. To stay ahead, they must constantly generate new business—both by reaching new prospects and by cross-selling to the valuable customer base they already have.

Part of IBM’s DecisionEdge for Relationship Marketing solutions suite, CPO is a marketing and sales solution that gives agents precisely the targeted leads they need to produce more business faster. Developed in close collaboration with two major insurance carriers with large agency forces, CPO leverages advanced IBM data mining and Web technologies. This intelligent lead generation and management system delivers optimized prospect lists—customized to agents’ preferences—via the Web using secure Java technologies, thus helping the organization win and retain a loyal customer base.

Customer value propositionBoost productivity and build loyalty—simple and universally available, CPO uses a standard Web browser. This means that agents don’t have to buy, install, or learn any special hardware or software—they can use the system and Web browser they already have to get results right away. With a tool that’s this easy to use, and that generates leads this precise, agents can thus enjoy new levels of success and productivity.

Because it’s Internet-based, CPO is also highly scalable. No matter how many agents a customer has, and no matter where in the world they might be located, they will be able to take advantage of this sophisticated business-building tool. And it can rest assured that its valuable information is well-protected, because CPO is based on secure technology requiring authenticated access.




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CPO is a very attractive solution for companies with a far-flung agent force. The client can put it to work to gather feedback from agents on the types of responses they are getting from prospects—allowing it to track agent performance, measure campaign success, and refine its database even further. Furthermore, if it so chooses, it can use the same infrastructure to create other integrated, Web-based applications to strengthen ties between its agent force and the home office.


6.16 Deep Green

OverviewThis is an offering for Capital Markets Forecasting and Consulting. Its mission is to build decision support systems for portfolio managers, traders, regulators, and strategists. “Deep Computing” utilizes expert knowledge in exhaustive and rigorous testing to discover best models. The research team has employed machine learning, economics, signal processing, chess, parallel computing, experimental physics, quantitative portfolio management, and trading. They are currently developing stock selection tools for mutual funds. The market analysis is built on original research in pattern recognition, data filtering, market behavior, and volatility forecasting. The existing research and applications are adaptable to market forecasting stock portfolio management and trading, foreign exchange, commodity, and bond trading.

Customer value propositionThese models enable the following:

� Extreme behavior predictive models (i.e., forecast stocks likely to have returns very different from market returns)

� Recognizing patterns inherent in market dynamics leading a big rise or fall

� Several models with different time-scales (extreme up/down forecasts)

� Equity trading (generating short-term signals by emphasizing ticker data indicators)

� Foreign exchange (devaluation)

� Interest-bearing securities (large liquidity)

� Margin-loan portfolio management (forecast firm exposure and individual portfolio risk)




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� Settlement and clearing models of real stock inventory, money flow, and stock loan/shorting).


6.17 e-business Management System

6.17.1 e-business Strategy

OverviewThis Component provides the consulting services that enable clients to develop competitive strategies and facilitate the end-to-end e-business transformation process. Consultants with industry knowledge assist clients to understand the impact of e-business on their industries and current business models while helping them maximize market value and minimize risks.

Customer value propositionOur e-business strategy contains the following elements:

� Current business context—identifies focal areas, performs environmental analysis, develops value nets, and identifies value propositions and their organizational impact

� Strategic intent and priorities—identifies and develops strategic capabilities and initiatives, plans scenarios, and defines new business models and preliminary requirements

� Strategic roadmap and business architecture—assists the client to develop a comprehensive e-business model that emphasizes integration across all of the e-business Solution Components, including business objectives and the management and operational requirements needed to support e-business initiatives




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6.17.2 e-governance

OverviewThe e-business Management System helps clients answer two fundamental questions necessary to establish and run an effective e-business:

� Now that we have a strategy, how are we going to organize to manage our e-business efforts?

� What actions should we take to ensure that we are moving forward swiftly and effectively in creating an e-business environment?

Customer value propositionUsing this component, IBM analyzes, designs, and implements the seven other pieces necessary to create an effective e-business management system:

1. Charter—What is the client’s purpose and approach to nurturing and managing e-business within the enterprise?

Focus on the defined e-business strategy and corporate mission.

2. Organization—How should the resources be structured and linked with the enterprise?

Focus on structure, reporting relationships, and connections between/among the e-business resources and their counterparts in other areas of the enterprise.

3. Roles and responsibilities—Who should perform what responsibilities?

Focus on the definition of work requirements mapped to the groups and individuals who perform them.

4. Processes—What new processes are required, and what are the changes needed to the existing processes?

Focus on the predefined activity flow for the necessary e-business actions and creation of e-business outcomes.

5. Measures—What are the accountability mechanisms for e-business at the enterprise, operating, process, group, team, and individual levels?

Focus on metrics.

6. Policies—What are the necessary policies to ensure that the organization is protected from key risks?

Focus on predefined e-business decisions with associated boundaries, standards, and latitude.

7. Content model—What are the critical aspects of content that the client needs to manage?


Focus on the definition of consistency in content and its portrayal on Web sites and in data marts, so that decentralized execution of content management can be performed in a coordinated, well-planned manner.


6.18 Enterprise Customer Analytics (ECA)

OverviewThis is an end-to-end e-commerce offering that leverages Web Analytics and BI technologies to provide a clear view of the customer across multiple marketing channels. It executes deep data analytical data mining techniques and patented optimization algorithms on both historic and real-time data residing in data warehouses and operational data stores, optimizing customer encounters to benefit both the client and the customer. Clients receive precisely the information they need, when they need it, and how they need it. Businesses are able to monitor and manage relationships more effectively, efficiently, and profitably through all avenues of interaction.

ECA contains seven integrated capabilities:

1. Customer relationship strategy across channels

2. Marketing-driven technical infrastructure

3. Enhanced customer information for real-time data and analytical support

4. Web traffic pattern tracking to strengthen relationships and increase sales

5. Personalized customer experiences

6. Optimized marketing channels for customer satisfaction, loyalty, and profitability

7. Applied cross-channel campaign management to improve results

Customer value propositionECA provides the following:

� The ability to quickly optimize, anticipate, sense, interpret, decide, and respond to customer interactions in a highly personalized, consistent, and optimum manner—across multiple channels at each touchpoint




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� The ability to use metrics from all channels to execute more effective marketing campaigns and pinpoint significant new sales opportunities, enabling cross-selling and up-selling to existing and potential customers

� Real-time support for strategic and tactical marketing decisions at each contact point

� The ability to increase revenue by determining individual profitability metrics for both customers and campaigns, as well as predicting and/or monitoring Lifetime Customer Profitability

ECA can result in:

– Increased sales of higher-margin products

– Improvements in launching new product

– Justified premium pricing

– Channel optimization

� Puts the client ahead of the competition by providing the capability to be first to market with product and services it truly needs

� Enables businesses to influence choices and actions at the most pivotal moment once interactions are underway

� Creates content-rich repositories of continually-evolving customer profiles— which, in the case of Web-based transactions, can be updated dynamically

ECA creates a closed-loop customer relationship process that grows increasingly intelligent with each interaction. This applies to both B2B and B2C transactions.

� Fully integrates customer information systems

ECA is one of the main enablers of successful CRM strategies, providing the client an “accelerator” in the complex processes of system design, data management, and data analytics.

By linking e-commerce and traditional multichannel business intelligence practices, ECA meets the business challenge of how to meet short-term business goals while devising technological Solutions that enable forward-thinking companies to gain a competitive edge.


6.19 Enterprise Performance Suite (EPS)

OverviewEPS is an evolving suite of integrated Components designed to provide BI support for executives making marketing, sales, and operational decisions. The industry challenges of cost pressures, speed of change, competition, and planning demand that corporations maintain and improve customer satisfaction, market share, and higher returns. BI and CRM work together through EPS to improve the financial institution’s effectiveness and profitability. EPS allows management to identify, attract, and retain profitable customers, and to create and bundle the right products and services to meet customer needs.

The EPS suite’s custom-phased approach is based on the level of complexity of challenges presented for BI and CRM implementation. Some Solutions—for example, marketing, profitability, risk management, and asset and liability management—are implemented according to pre-defined measures and dimensions. EZ Mart is utilized as IBM’s complete end-to-end Solution for automating BI information stored in data warehouses, data marts, and decision support systems.

How EZ Mart fits into the EPS scheme is graphically depicted in Figure 6-3 on the following page.




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Figure 6-3 The EZ Mart end-to-end BI automation Solution

Customer value propositionEPS brings open, flexible, scalable, comprehensive, and proven end-to-end Solutions at a fraction of the cost available through other venues. It assists corporations meet their business challenges by enabling them to:

� Understand and achieve formulated or customized profitability

� Centralize data and create a single view of the customer in order to focus efforts and manage customer relationships

� Enable profiling customer and prospect groups to better meet product and service needs

� Enable the study and anticipation of customer behavior, regardless of channel

� Create the data hub which is central for a functional and effective CRM process

� Design and deliver the products and services required to meet customer and market needs


6.20 Entity Profiling Management System (EPMS)

OverviewThis is a generic, function-rich application architecture and framework for transforming, integrating, analyzing, and presenting data about any set of objects or entities. EPMS incorporates powerful profiling, import/export functions, interactive data visualization, and a fully customizable wizard for reporting from any relational database. It can be utilized as the presentation layer for ad hoc engagements, as an addition to a tool kit, and as the application infrastructure to transform a data mining application.

Customer value propositionEPMS is the foundation for several Solutions in Healthcare (BlueCross/ BlueShield plans, HMOs, and government programs) and Insurance (Health and P&C) currently implemented in the US and Brazil. FAMS is one such product.

IBM Fraud and Abuse Management System (FAMS)

The IBM Fraud and Abuse Management System (FAMS) has been implemented in insurance engagements. FAMS is a client server application designed to help investigators and auditors identify providers that might be submitting fraudulent or abusive insurance claims.




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6.21 e-Start

OverviewThis Component’s end-goal is facilitating creation of a working Web site. As opposed to an information-oriented site, e-Start is a consultation/rapid development offering that helps the client visualize a Solution to a business problem, launch a new e-business application, or gain consensus with a high degree of functionality on a common vision for a given application. This could be as simple as a Solution outline developed from a fail-safe approach, beginning with relatively complete documented requirements, or something much more complex. For example:

� A client requesting a working prototype in the form of a strategy report for internal selling or other demonstration purposes typically requires a four-week engagement for two or three consultants.

� Premiere offerings such as Digital Branding require 8 to 12 weeks for delivery of a report detailing an initial site design for extending the existing brand.

There are four phases to the engagement structure—discovery, vision, rapid iterative prototyping, and vision transition. Usually after this initial start, it star-bursts into several releases.

Customer value propositione-Start helps visualize, sell, and build a strategy for quick-starting application development, mitigating risks inherent in the development of large applications, and reducing time to market. This offering is particularly helpful in selling Digital Branding.




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6.22 ETI•EXTRACT

OverviewIBM has formed a business relationship with Evolutionary Technologies International, a vendor that provides tools such as ETI•EXTRACT to automate and exchange data enterprise-wide and beyond. ETI software enables an enterprise to seamlessly integrate, transform and deliver vital corporate information—from point A to point Anywhere. These tools can be used to move data between a wide range of systems—legacy databases, data warehouses, operational data stores, ERP applications, CRM systems, and Web sites.

The ETI•EXTRACT Tool Suite:

� Transforms complex data values

� Meets unique business requirements

� Captures and manages metadata

� Accesses a wide range of systems

� Interacts natively with systems

� Moves data in both batch and near real-time

Customer value propositionCompanies use ETI•EXTRACT to:

� Increase programmer productivity

� Increase project maintainability

� Maximize reuse of programmers' work across projects

� Lower project implementation costs

� Improve change management




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The more the customer uses ETI•EXTRACT, the greater its value—with respect to the range of systems it accesses, the range of logic it performs, and its ability to utilize work done in previous projects.

ETI•EXTRACT provides a long-term solution to the problem of data integration management, one that evolves with technology and rapidly changing business needs.

From their inception, the ETI•EXTRACT tools were developed with an extensible architecture that allows their platform to evolve with changing technology. This extensible architecture means that ETI•EXTRACT:

� Generates both legacy COBOL and IMS programs, as well as C programs for newer environments.

� Enables customers to move data in both batch and near real-time.

� Is customizable for unique business environments.

Customers can tailor the software's capabilities to support industry or company-specific business rules.

� Can access home-grown, proprietary systems by enabling customers to construct new interfaces that read and write to those systems.


6.23 Evoke—CRM Integration and Product Offerings

OverviewEvoke Software offers an innovative, unmatched Solution specifically designed to accelerate the integration, migration, and consolidation of corporate data for e-business.

� Evoke analyzes and profiles content and structure while qualifying data sources when producing normalized data models.

� It is used to discover critical information about the content, structure, and quality of corporate data, and to use that information to create source-to- target transformation maps aimed at newly-designed or existing databases and applications.

� The Evoke methodology is designed around and fully supported by information stored in the Evoke Repository, which captures and shares all knowledge developed using Evoke’s products. This can dramatically shorten project implementation times, while greatly reducing costs.

� This methodology includes comprehensive provisions for using the Evoke Axio product suite of tools that automate many of the most time-consuming analytical processes. The Axio suite is fully integrated with the Evoke Repository. Axio XML is used by organizations throughout the world to thoroughly understand the content, structure, and quality of their corporate systems’ actual source data. This analysis reveals hidden data quality issues, inconsistencies, and incompatibilities between source and target applications.

Customer value propositionA clear understanding of the data in corporate systems is critical to the success of any new development effort. Evoke Axio extends and improves technologies and automates the discovery of valuable information about corporate systems by identifying hidden data quality issues and inconsistencies between different systems. Evoke adds value by:




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� Rapidly and accurately defining a client’s complex corporate systems and then creating accurate specifications for using data from those systems

� Facilitating interactive analysis by data and business analysts, a process that takes the guesswork out of understanding complex corporate data sources

� Validating the client’s assumptions and discovering new facts and rules about how its corporate systems work

� Facilitating the development of new applications and integration processes to generate detailed specifications for integrating them with existing systems

Project Management uses Evoke's products to control the overall process of identifying and resolving data issues, capturing and communicating knowledge about source data, and tracking individual action items. Using Evoke’s Axio XML, users are able to:

� Interface with the Evoke Repository, thus allowing team collaboration throughout the mapping process

� Leverage the results of data profiling

� Produce complete transformation specifications for integration programmers


6.24 EZ Mart

OverviewThis is a component of Financial Services Information Framework (IFW) that works with and is based upon the Banking Data Warehouse (BDW). EZ Mart enables banks to rapidly deliver a scalable decision support Solution that responds to critical business needs.

Customer value propositionEZ Mart allows customers to quickly get return on their banking data warehouse investments by providing the pre-work necessary to create an analysis data mart.




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6.25 Financial Fusion Consumer e-Finance Suite (CeFS 4.0)

OverviewThis product suite provides a complete end-to-end Solution for retail e-banking. Also known as CeFS 4.0, it offers enterprise-class technology and is comprised of several Solutions listed below. CeFS 4.0 provides the retail market with customized “Financial Destinations” on the Web, a single integrated platform, and seamless connectivity on any Internet-enabled device. IBM and Financial Fusion jointly provide this Solution offering that is multi-currency and multi-lingual for strategic e-finance Solutions.

The CeFS 4.0 solution suite provides financial institutions with an end-to-end platform for building profitable and sustainable relationships with their customers on the Web. CeFS 4.0 integrates with IBM's MQSeries, AIX, DB2 Universal Database, WebSphere software platform, and planned support for the S/390 enterprise server platform. Components include:

� Financial Fusion Server

� Wireless Application Support

� Consumer Banking

� Consumer Bill Presentment and Payment

� Bill/Pay/Transfer Warehouse

� Loans

� Consumer Content Syndication

� Account Aggregation

� One-to-One Marketing

� Customer Care




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� Development Edition

Customer value propositionAs leading financial institutions embrace the Internet as a primary delivery channel, certain minimum Solution requirements emerge. Financial institutions require e-business Solutions that:

� Facilitate an end-to-end e-business Solution

� Build upon a highly flexible and scalable architecture

� Permit easy customization and development of e-business services

� Provide a highly personalized consumer experience

� Improve the ability to react in a timely fashion

Another Solution within the e-finance Suite is Enterprise Class Hosting, which provides an industrial-strength hosting facility with enterprise management and monitoring capabilities. Key features include:

� Universal server farm management and operations

� Network operations center and help desk support available 24x7x365

� SAS 70 standards

� Multiple redundant high bandwidth connections

� Disaster recovery

� Load balancing

� Consulting services

A third Solution is Micro Business Banking for Small Office/Home Office (SOHO) banking customers. It provides full-featured Web banking specifically for this growing market segment. Key features include:

� Banking

� Bill payment

� Bill presentment

� Advanced cash management tools

� Business news/financial advice

� Stringent security


The Financial Fusion Solution satisfies these requirements. It provides financial institutions with a complete object library of Web-based banking, bill payment, bill presentment, and messaging (e.g., e-mail) tools that can be assembled into completed products or distributed as individual objects throughout the financial institution’s Web site. This enables clients to use proven Components to quickly build end-to-end Web-based financial services.


6.26 Financial Services Data Model (FSDM)

OverviewFSDM is a layered, cross-enterprise data model that has proven to include at least 80% of common business data across the financial institutions. It can be customized and tailored to rapidly align this model to reflect an institution's particular needs.

The FSDM model was created by merging detailed data models and data requirements obtained from major banks around the world. It contains thousands of carefully constructed business definitions, reflecting nearly 100 “person-years” of analysis. This information is represented in two distinct layers:

� In the conceptual layer, the enterprise-wide business information is represented through a series of intuitive hierarchies and is primarily focused on business users.

� In the logical layer, the same business information is structured as an Entity Relationship Model (ERM) and is focused at information technologists.

FSDM’s major objective is to maximize enterprise reuse. It does not attempt to define the structure of every item within the core financial activities of a financial institution. Rather, it models those data items and structures that are likely to be re-used across more than one business Solution or application in a way that is independent of a particular application view.

Customer value propositionFSDM supplies a pre-defined repository of financial business knowledge that provides an enormous head start for any financial institution wishing to manage its data across the enterprise. It contains advanced information engineering and object-oriented features that enable explicit re-use of data assets, while providing a common platform for the development of traditional, fourth generation, or object-oriented systems. This includes:




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� MIS development

� Defining application data requirements


6.27 Financial Services Information Framework (IFW)

OverviewIBM, in partnership with leading financial institutions worldwide, has developed an enterprise Information Framework (IFW) that enables the effective management of information. IFW is a comprehensive methodology and structure that delivers an information architecture populated with business, technical, and Solution content models that are customized to meet the needs of Financial Institutions. It thus enables the client to completely manage and leverage its business information for competitive advantage in an organized, layered, top-down approach—from the conceptual level down to its physical implementation.

IFW currently comprises:

� Business Intelligence Suite

� Banking Data Warehouse (BDW)—a series of pre-defined business Solution templates that facilitate the rapid implementation of commonly-required data warehouse Solutions such as customer profitability

� EZ Mart—a data mart based upon BDW

This enables banks to rapidly deliver a scalable decision support Solution that responds to critical business needs.

� Business Processes Suite

� Critical Business Processes (CBPs)—predefined processes that are common to any financial institution

CBPs have been broken down into work flows showing their activities, triggers, and data flows.

� Financial Services Function Model (FSFM)—has up to 90% of the functions for any particular institution




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� Financial Services Workflow Model (FSWM)—provides a set of business process workflow Components that contain over 4,000 commonly identified activities

� LoanSuite—developed by Lotus and IBM as a services engagement that helps financial institutions gain efficiencies across the entire lending process

� Application Development Suite

IFW was developed in partnership with leading financial institutions worldwide. It is a proven tool that provides a set of pre-defined enterprise models for analyzing, structuring, and reusing information entities that bring a dramatic reduction in project time. It can be used to help structure information change and at the same time provide business flexibility. As much as 80% of requirements and design work for many projects is pre-defined. The deliverables from IFW are structured in a way that makes it easy to tailor them to meet the other 20% of requirements, thereby resulting in great improvements in productivity.


6.28 Help Desk

OverviewCompanies in today’s global e-business environment are transitioning from traditional problem-oriented help desks toward integrated customer service centers. A business-oriented help desk can give them a competitive advantage by delivering responsive, cost-effective IT support to their end users. This offering uses IBM's expertise, enhanced best-practices methodologies, process and knowledge guides, and training to help both enterprise and mid-market companies quickly assess, architect, and implement an IT infrastructure support Solution with an immediate ROI.

Customer value propositionA client’s e-business initiative will need a support organization that can work with the software used in its IT environment. IBM Help Desk Services can provide the following:

� Assessment—IBM reviews the environment, service options, and current help desk to offer Solutions that fit the client’s individual needs.

� Planning and design—IBM helps the client design a customized, scalable help desk Solution that balances people, process, and technology.

� Implementation—IBM provides rapid deployment of the right help desk Solution using industry-leading application software.

� Remote support—IBM incorporates traditional processes and technologies with Web-based support and self-service.

By taking advantage of Help Desk Services, the client can improve customer satisfaction, reduce service costs, and refine infrastructure resource management to better understand the impact of changes across the enterprise.




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6.29 Hosting/Outsourcing

OverviewThe Data Hosting/Outsourcing component lets a business off-load the operation of its IT systems, Internet-based applications, and processes so that it can focus on what it does best—providing financial services to its customers. The e-business revolution is impacting this component, transforming outsourcing from what was once just a cost-effective means of data center management into an integral part of business strategy.

Customer value propositionIBM industry experts work with clients to evaluate their business objectives and identify which IT operations can be outsourced for competitive advantage, thus freeing them from the cost of keeping up with rapidly changing technology, constant retraining, and recruitment in a marketplace where IT skills are in short supply. We are increasingly combining traditional outsourcing deals with major BIS consulting engagements—a winning combination that delivers high value to customers and big signings to IBM.

This component also includes our services in the growing market for e-business hosting. As companies migrate business processes to the Internet, IBM's Web hosting capabilities support their Internet-based applications, transactions, and storage requirements. Customers can choose a range of hosting options—from simple co-location to complex, integrated Web-hosting Solutions to application service provider platforms.

This component includes:

� Co-location facilities

� Management services

� Fully-managed services




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� e-marketplace hosting services

� Managed storage services

� ASP hosting services


6.30 Insurance Application Architecture (IAA)

OverviewIAA is a generalized business model for the insurance industry that was developed during engagements with more than forty insurers and eight ISVs worldwide.

By defining a standard model for representing and managing all information, IAA helps insurance companies create and maintain a single view—not only of their clients, but also of their entire enterprise.

Customer value propositionIAA provides a set of five proven Solution models, related modeling guides, and documentation. Together, they can be used to jump-start the development of consistent and flexible applications across the insurance enterprise. These models allow for the design of the business systems infrastructure that provides the flexibility required to react in a timely manner to market dynamics or to accommodate changes in corporate strategy.

IAA helps create a map of existing systems, facilitates the integration of legacy business applications with new e-business applications, and is an indispensable tool for creating common data management and customer-centric applications. It enables customers to streamline business processes, while cutting development time and costs.




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6.31 Insurance Information Warehouse (IIW)

OverviewIIW is both an infrastructure and a Solution suite designed to help insurance and financial services providers make the best use of the data that flows into and out of their dispersed systems.

IIW creates a data warehouse that works on two tiers by providing consistent information at both the enterprise and departmental levels. This ensures that people across functions and across the organization will have access to the same information, presented in the most appropriate way for each business use.

Using IIW, insurance and financial services providers can refine decision support in nine key business areas:

1. Campaign management

2. Segmentation management

3. Customer management

4. Customer retention

5. Product management

6. Profitability analysis

7. Risk pricing

8. Underwriting

9. Claims analysis

IIW supports the IBM DecisionEdge Relationship Marketing family of products, an integrated suite of IBM and Business Partner offerings that focuses on CRM. Developed specifically for insurance and financial service providers, these industry-focused offerings are available separately or as part of the IBM CRM Solution Suite. Based on IAA, these tools include:




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� The IIW infrastructure

� Campaign Management

� Quick Start, with Valex and IBM Intelligent Miner for Relationship Marketing

� Underwriting Profitability Analysis (UPA)

� Customer and Prospect Optimizer (CPO)

� Additional application demonstrators and analysis tools

� Associated data propagation tools and services

Customer value propositionIIW enables companies to gather, refine, and use information to serve customers better and to compete more effectively. With IIW, companies can progressively implement a timely, scalable, enterprise-wide data-management environment efficiently and cost-effectively with a set of integrated functions and tools that include:

� A stable, flexible architecture for building and managing a corporate data warehouse

� A “starter set” of comprehensive, industry-specific models and databases that address common insurance company activities

� The IAA data model

� Applications and samples for supporting business intelligence in specific business areas, including:

– Risk Pricing

– Campaign Management

– UPA

– CPO

� Associated mapping files for complete data traceability

� Substantial architectural, technical, and project route-map documentation

� Scalable hardware and software

� Worldwide IBM service and support


6.32 Integrated Voice and Data Networks

OverviewEffective customer contact management requires the integration of voice communications with the data transactions being processed—whether the voice originated through a telephone, interactive voice response system, or across a Web session. Efficiency requires integrating human resources across dispersed locations and business units.

Customer value propositionIBM with its business partners and ISVs can design, develop, and implement integrated networking architectures that are appropriate to the client’s business and customer strategies. Outsourcing is also available for network management. IBM brings assets and systems integration skills built around Computer Telephony Integration, Interactive Voice Response, and Contact Center Web Enablement to deliver these solutions.




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6.33 Integration Hub

OverviewAlso referred to as a “message broker,” this is a software hub that manages the exchange of information between applications that are either publishers (senders) or subscribers (receivers) of messages. The hub serves as an integration layer between the customer access channels and the back-end operational or legacy systems.

The important Integration Hub Components include:

� A messaging architecture that uses industry standards for participation and routing

� Message and transaction management that provide real-time as well as asynchronous flows

� A business rules engine allowing message processing based upon the unique requirements of the business

This rules engine can direct immediate and real-time transactional requests and responses or delayed (asynchronous) responses for process management (workflow) applications.

� A data transformation Component for developing application-specific adapters

These adapters convert the data formats and applications semantics from the sending application to the receiving application.

� Security that can integrate into the end-to-end security of the enterprise

� A robust set of tools that permit the system to be managed

� Configuration, problem isolation and recovery, and performance tools




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Customer value propositionAs customers rapidly create and deploy new e-business Solutions, the Integration Hub addresses the need to provide:

� A mechanism to automate new business processes by hooking applications together to provide integrated solutions

� A mechanism for leveraging existing applications in new ways—e.g. 24x7, interactive online selling, B2B, or B2C exchanges

� Isolating new front-end and back-end systems where the systems need not know about each other

� Platform independence that facilitates integration by translating between different systems

� A “packaged” framework that provides a “quick-start” for implementation

The Data Integration Hub Solution solves a score of significant client business and technology issues—e.g., merger and acquisition transitions, managed conversions from older legacy systems to new technology platforms, and integration of ISV packages into the existing IT environment.

IBM has designed, built, tested, and deployed data integration hub and adapter Solutions, both internally within IBM and externally in client’s infrastructure. Using our FSS Center of Competence, our Common Adapter Factory in Charlotte, and our Multi-Industry Center of Integration in Dallas, you can readily demonstrate to any client our experience, current asset base, professional skills, and framework.


6.34 Intelligent Miner

OverviewIBM DB2 Intelligent Miner Scoring Services, an option with DB2 Universal Database, is a data mining application that allows companies to rank customers according to a set of pre-determined criteria and makes it easier for businesses to develop targeted, personalized treatment for customers and suppliers.

Mining models can be updated dynamically, allowing continuous improvement in business results without disrupting production systems. Because Intelligent Miner eliminates the need for developers to program to low-level proprietary APIs or to understand arcane data formats, it is easier for them to recompile and re-link mining models to application programs. Built as a DB2 Extender, the new scoring services directly integrate data mining technology into the RDBMS for rapid application development/deployment and faster application performance.

Data mining is behind many IBM advancements, and Intelligent Miner can be utilized as a powerful tool to gain new business insights. It also positions companies to become better equipped to make insightful decisions through more precisely-developed targeted marketing campaigns, reduction of customer attrition, or increased e-commerce revenues.

Intelligent Miner offers a broad range of capabilities to meet new business challenges. Key product features include:

� Mining functions that address a wide range of business problems

� Discovery of unknown patterns and rules and a prediction of future behavior based on past performance

� Innovative graphical visualization of results, powered by DB2

� A single framework for data mining that iteratively prepares, analyzes, and mines data, with assimilated and disseminated results




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� Development of mining models deployed to operational applications

� Scaleable client/server architecture

� Proven implementation for large-scale and parallel data mining

� Core technology for data mining Solutions

� Open interfaces for customer, IBM, and partner Solutions and proponents of new data mining standards

Customer value propositionIntelligent Miner provides the following capabilities:

� Incorporating mining analytics into BI, e-commerce, and OLTP applications

� Serving business and consumer users alike to provide more informed recommendations, alter a process based on past behavior, and build more efficiencies into the online experience

� Adding breadth and depth to scoring functions for advanced mining models

� Enabling enterprise-wide access to cataloged results

� Vendor, Solution provider, and customer visualization through standard XML format

� Scalable Solutions, with the ability to score everything from the individual case to large amounts of data

� Interfaces with other IBM BI offerings

� An interoperability strategy, realized as vendors and customers alike adopt new industry standards for data mining objects and programmable interfaces


6.35 Kana Customization

OverviewIBM and Kana Communications have formed a global strategic alliance to integrate Kana’s Web-architected enterprise relationship management Solutions (eRM) with IBM’s e-business capabilities. Together, IBM and Kana deliver comprehensive e-business Solutions for managing interactions and relationships among customers, business partners, and the enterprise across communication channels.

This alliance offers Components from IBM’s Application Framework for e-business, initially including the following IBM hardware platforms

� Netfinity (NT)

� RS/6000 (AIX and client devices)

In addition, key IBM software products will include:

� DB2 Universal Database

� MQSeries

� WebSphere Commerce Suite

� WebSphere Application Server

� Selected voice systems products such as CallPath

The entire Kana suite of products will eventually be integrated into the IBM e-business infrastructure.




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Customer value propositionThis Solution combines Kana’s industry-leading Web-architected eRM application software with IBM’s industry-leading e-business Solutions—including its world-class server, database, middleware, and e-commerce technology. As a result, the customer is able to more rapidly deploy best-in-class, integrated application and technology Solutions, thus reducing overall costs and time-to-market.

Kana is part of a relatively new group of e-business software companies— including BroadVision, Vignette, and E.piphany—that have been very successful in addressing the unique interaction and relationship management requirements of companies now in the eBS economy. Kana is recognized as having the broadest and most flexible set of integrated Web-architected applications for managing relationships with customers and partners across interaction methods (self-, virtual-, and assisted-service) over communication channels such as e-mail, the Web, and wireless, as well as traditional channels like phone and in-person. Kana’s business applications include marketing, sales, and service. It has further solidified its leadership in this market through its Web-architected e-business.

Kana products include:

� Communication applications—Kana Response, Kana Connect, Kana Advisor, Kana Assist, Kana Chat, Kana I-Mail, Kana Voice, and Kana Phone

� e-business applications—Kana Service, Kana Commerce, Kana eBusiness Platform, and Kana Conduits

Kana has English, Japanese, German, Chinese, French, and Spanish language versions. The IBM/Kana connection is a global relationship, with joint selling and marketing activities worldwide. EMEA, the US, Japan, and Australia were initially covered, with support in other countries soon to follow.


6.36 Knowledge Management

OverviewIn today's emerging e-business economy, a firm's ability to identify, capture, and leverage its knowledge is key to gaining a competitive edge. Knowledge Management (KM) is the process of leveraging and utilizing the vast, untapped potential of both tacit and explicit knowledge to achieve optimal performance.

While tacit knowledge (insight that is implied and more difficult to represent) varies from explicit knowledge (represented in artifacts such as books, documents and techniques), both are equally important for improving organizational performance. Knowledge management enables individuals, teams, and communities to exchange and optimize their knowledge and experience.

IGS knowledge and content management consulting offers a portfolio of services and Solutions based on three discrete capabilities:

1. Content management—KM organizes and puts data into context, converting raw information into actionable knowledge.

2. Infrastructure—Software and systems are not a KM catch-all, but a vital Component enabling the sharing of knowledge and streamlining operations.

3. Culture and learning—KM means re-evaluating assumptions about the way a client does business.

These offerings enable organizations to develop knowledge strategies, identify KM opportunities, prioritize business goals, and deliver knowledge-based Solutions. The following are example offerings:

� Corporate Portals—IBM builds tailored, comprehensive, fully-functional corporate portals.




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� Customer Relationship Content Management—IBM increases customer service responsiveness with Customer Relationship Content Management.

� Community Based Services—IBM develops physical and virtual communities for problem solving, knowledge exchange, and knowledge creation.

� Institute for Knowledge Management (IKM)—IKM, of which IBM is a member institution, conducts action research in coordination with over 30 member organizations aimed at advancing the discipline of knowledge management.

� Community Knowledge Portal—IBM helps organizations improve the productivity of knowledge workers by providing one-stop, integrated access to enterprise information.

� Knowledge Strategy—IBM plans for KM include:

– Putting people first

– Building for scale

– Mixing the physical with the virtual

– Spreading the KM story

– Staying on target (i.e., winning)

� Human Capital Management—Knowledge is power, and power is in the people. IBM helps clients get a grip on this “new way” of approaching business.

� Intellectual Capital Management—Build a brain trust. IBM helps the client identify and retain the best people and ideas.

� Organizational Network Analysis—“Know what you know.” IBM offers the means to measure knowledge flow in an organization, root out inefficiencies, and build decision/innovation networks.

� Competitive Intelligence—Understand what the competition will do, and be able to assemble the right people for the right response. IBM offers the methods and tools to size up the competition.

� Knowledge Retention in Mergers and Acquisitions—IBM helps transform perceived added values into real knowledge boosters.

� Knowledge Disclosure through Storytelling—IBM gets the client talking, turning tacit knowledge into the explicit through storytelling.

� Knowledge Management Technical Services—IBM offers experienced technical services.


Customer value propositionPhysical assets alone no longer measure an organization’s strength. Today, experiences and insights are the most critical elements of a successful portfolio. This knowledge is not housed in the “organization,” because knowledge lives in people. KM focuses on ways of sharing and storing the knowledge of individuals as a means of improving the competency, speed, efficiency, and profitability of the larger whole. IGS KM Consulting offers the experience and resources for end-to-end knowledge and content management Solutions. Here IBM and Lotus hardware and software products provide the infrastructure to facilitate collaboration and maximize intellectual property.

As a critical initiative for effective global knowledge sharing, IGS KM provides:

� The means to gather, evaluate, structure, and distribute intellectual capital

� Networked communities of professionals with defined roles and responsibilities

� Technology that enables global sharing

� Incentives to encourage intellectual capital contribution and reuse

� Measurements for monitoring knowledge usage and its value to the organization


6.37 Market Analysis and Strategy

OverviewChoosing the right customer segments to pursue, developing value propositions, extending off-line brands to the online world, and identifying best practices for customer acquisition and retention encompass some of the most important strategic marketing issues facing businesses today.

The IBM Global Marketing Strategy Practice delivers practicable business solutions backed by data and research. IBM’s capabilities revolve around three main areas:

� Marketing strategy

� Business metrics and measurement

� Behavior prediction

With its unique hybrid of marketing strategy and research capabilities, IBM helps its clients craft a strategic marketing plan that is all about building market share, increasing profits, understanding customers, and sustaining a competitive advantage.

This is a new consulting offering at a business rather than IT level. The target audiences are client C-Officers and Senior Leadership, with capabilities outside IBM’s traditional core competencies. Nine Marketing Strategy offerings are listed below that provide IBM’s clients with powerful front-end capabilities to drive new business.

Customer value propositionThe Marketing Strategy Practice offers the following services to help clients understand and manage their businesses:

� Market structure analysis




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� Target audience and market segmentation

� Customer satisfaction, loyalty, and retention

� New product and service innovation

� Brand valuation

� Brand-building architecture

� Predictive modeling and market simulators

� Financial and econometric modeling

This practice uses advanced qualitative and quantitative tools to collect and analyze market data. All services are managed in-house to ensure the highest quality and complete confidentiality and reliability.

IBM’s Marketing Strategy uses the following types of qualitative research:

� Focus groups (consumer, business, expert delphi, diads, triads, and mini-groups)

� Executive and peer interviews

� One-on-one in-depth interviews

� Interactive consumer and business panels

� Interactive diagnostic evaluations

For quantitative research, this practice utilizes a wide variety of data collection methodologies—including the Internet, e-mail, telephone, and computer-aided. IBM also has a unique data collection technique called Rapid Analysis Measurement System (RAMS) to capture user response and instantly display results to the moderator and clients. In addition to instantaneous feedback, RAMS offers flexibility, eliminates bias, creates interactivity, and enables sophisticated analysis.

Once data is collected, IBM utilizes a variety of statistical techniques to analyze it, choosing the most effective based on research objectives and even building new statistical models to fit specific needs.

For more information contact Todd Gurley or Paul Hoagland (Marketing Strategy Practice Principals).


6.37.1 Market Structure AnalysisMarket Structure Analysis presents clients with an understanding of market dynamics—how the market functions, who the key competitors are, and when changes to that market might occur. It reviews the market from an objective third-party view, with short- and long-term perspective, and provides insight into a variety of factors, including:

� Customers

� Suppliers

� Distribution channels

� Regulatory environment

� Technology

� e-business activity

� Brand positions

� Product offerings

� Promotional activities

� Pricing strategies

� Financial review

Market Structure Analysis is fact-based and driven by data collected from multiple sources—in many cases, data IBM obtains that the client cannot.

Tips for Consultants—Be savvy. Asking the right questions is the key to demonstrating an understanding of marketing strategy. The following are a few questions you might want to ask.

� Who are your key competitors and how are they positioned in the market? What market positioning do they hold?

� What is the impact of this positioning on your brand?

� How do your end users consume your product, and what are the decision processes they go through?

� Describe how the market is changing in terms of product mix, distribution channels, and pricing strategies.

� What organizational changes have the dominant players made recently that might affect strategy?


6.37.2 Target Audience and Market SegmentationSegmentation’s value is that it places customers first in defining, designing, and refining products and services—thereby allowing clients to more quickly, accurately, and cost-effectively meet the needs of the marketplace. Target Audience and Market Segmentation reviews a client’s market segments and the potential each segment represents in terms of size, profitability, and loyalty. It offers both online and off-line companies valuable insight into present marketing strategies, identifies market sub-segment and niche opportunities, and serves as the foundation for defining the client’s optimal marketing communications mix.

Market structure analysis adds value—e-business created new market definitions with new players, positioning, brands, and market behaviors. It is critical to understand these new realities within the context of more traditional views.

Market structure analysis is fact-based and driven by data collected from multiple sources. It does not rely on instinct, speculation, or preferences of one group of stakeholders.

Tips for consultants—Ask good questions. The term segmentation carries a variety of meanings for marketing professionals and can be executed using several analytical approaches. To ensure an understanding of client expectations as well as current levels of segmentation, the following are a few questions you might want to ask.

� Can you define your target audience in terms of segments? What are those segments and how do they differ? Do you know more detail than simply demographic/firmographic information?

� How do your segments differ from those of your key competitors?

� What is the level of potential for each of your segments?

� How do you reach your target audience?

� Does your database include a segmentation scheme? When was the last time that segmentation information was updated?


6.37.3 Customer Satisfaction, Loyalty, and RetentionThe IBM process is designed to help clients understand how to move toward a closer match between the company’s performance and a customer’s expectations. Engagement results identify ways in which operational issues, offerings, pricing, and resource allocation can be addressed to improve retention of core business and reduce potential customer migration to competitors.

The customer is king—Just as understanding the market in which a company operates is important, so is understanding the customer. Market segmentation provides not only an analysis of the market segments that exist, but also the potential each segment represents in terms of size, profitability, and loyalty.

Segmentation provides valuable insight into present marketing strategies. By providing a systematic approach for controlled market coverage as opposed to the scattered approach of mass marketing, Segmentation serves as the foundation for developing cost-efficient and effective marketing communications with the optimal communication mix. Personal sales processes can be improved by providing account representatives with customer profiles that include appropriate sales materials and strategies.

Tips for consultants—Learn what is mission-critical. The pace of business evolution has placed increasing time pressures as well as penalties on businesses for not understanding customers. Asking the right questions is the key to demonstrating an understanding of customer satisfaction, value, loyalty, and retention. The following are a few questions you might want to ask:

� What are the drivers of satisfaction and loyalty for your organization?

� What is the importance of each driver or combination of drivers for each product and service?

� How do you measure and quantify internal and external performance levels?

� Describe how you identify the most important gaps between customer expectations and company performance.

� What investments are you making that are necessary to bring customer satisfaction to minimum threshold events?

� What incremental investments have you avoided that yield no benefits to customer satisfaction, loyalty, and retention?


6.37.4 New Product and Services InnovationAt IBM, our six-stage “gated” process for product and service evaluations reduces the risk involved with new product and service development and—ultimately—introduction. At each step throughout the process, clients are able to confirm and reconfirm the market’s response to a new product or service concept and gain insight into the customer’s intended behavior.

Know the customer’s customers—It is important to remember that achieving customer loyalty is not an “objective.” It is a way of doing business that ensures continued company growth and success in the future. Once maximum customer loyalty is achieved, it must be maintained. The purpose of a customer satisfaction, loyalty, and retention process is to continually provide the information needed to keep customer loyalty at the maximum potential level within an ever-changing competitive environment.

Many clients believe they know the level of customer satisfaction in their organizations, but you should challenge them to address why customers switch and to determine effective uses of resources to impact customer loyalty and retention. The IBM approach provides a competitive advantage by focusing resources, enhancing operations, and understanding switching behaviors.


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Tips for consultants—Reduce the risk. With the high failure rate of new products and services, clients want to ensure they make the right investments in launching new products. The following questions might help you determine if enough consideration has been given to a particular product or service.

� When is the last time your organization introduced a significant new product or service to the market?

� Are you keeping pace with the product/service innovations of your primary competitors?

� What is the market potential for the new product or service you are about to introduce?

� What are the product alternatives? How are they priced, and how are they positioned?

� What is the willingness to pay? How much? When?

� Does this service lend itself to a recurring revenue price structure, or to a one-time-fee price structure?

� Do customers perceive the services as being too complicated to use? If so, what can be done to simplify them? Is this a barrier to buying?

� What organizational changes have been made to support this product/service in terms of rollout and ongoing management?

A disciplined process creates value

� The successful development and market entry of any new product or service requires a disciplined approach. This will ensure that clients accurately identify and fully develop market-driven, customer-focused opportunities for profitable new products and services, rather than only those supported by key stakeholders.

� IBM clients benefit through training in the new product and service innovation process. Not only does this process achieve a single successful trial and rollout of a new service, but it also will establish a permanent disciplined process to enhance clients’ marketing strategies for all new products and services.


6.37.5 Brand ValuationThis allows a business to understand from a market perspective its current brand definition, its brand position relative to competitors, and the performance of its brand on key indicators. The process includes three major components—brand measurement, brand mapping, and trend analysis—and identifies the strengths and weaknesses of a brand as well as trends in the marketplace that have led to that current brand position.

Tips for consultants—Everyone has a brand. Whether it’s a dot-com, an industrial manufacturing company, or a not-for-profit firm, all clients have brands that must be managed. The following questions might prompt the client to look at the issues surrounding brand image:

� How do your most important customers view your brand? How is that view different from their view of your closest competitors? From your own view of your brand?

� What is the market’s perception of new competitors that have entered it?

� Do your online customers have the same expectations of you as your traditional customers?

� What permission does the market give you to provide new and different offerings under the same brand name?

Brand valuator adds value

� Many clients have very passionate ideas of who they are and what they can offer the market. Strategically, there is no substitute for validating or invalidating these ideas with a market perspective. If there is a large gulf between a client’s self-perception and its perception of the market, strategic initiatives must be altered in order to avoid severe opposition.

� A client’s brand does not exist in a vacuum. A brand has no meaning except as it exists relative to its competitors. The brand valuator process looks at the client’s brand in relative space and shows the distance of one brand from another. If the client’s impression of its brand is correct but five other brands occupy the same space, no competitive advantage results.

� The qualitative approach to the brand valuator process adds value by providing objective third-party and limited-market perspectives on the assumptions under which the client operates. However, the quantitative approach has the significant advantages of 1) allowing the client to understand the more subtle nuances among the brands in the market and 2) providing information that can be projected across the entire universe of customers, competitors, and other stakeholders.


6.37.6 Brand Building ArchitectureThis process helps clients determine how to build a brand strategy for the future. Using leading-edge research and brand strategy techniques to link concrete product/service attributes, distribution channel delivery methods, and marketing activities, this methodology determines the brand associations that make up the brand image. It also links competitive brands to the concrete components with which they are most associated. With this information, IBM helps the client identify the most desirable brand position available and develops strategies for molding the brand to reach that position.

Tips for consultants—Moving the brand. There are a number of questions you can ask to prompt a client to discuss what makes up its brand and the need for its brand to move.

� Why is your brand perceived as it is? What factors play into that perception?

� Is the current perception of your brand what you would ideally like it to be?

� How has your brand image changed in the past five years? In the past year?

� Does your brand image allow you to perform as you would like non-linearly?

� What impact does your brand have on the products/services it endorses?

A worthwhile process

� The Brand Building Architecture process provides something for which clients have only an intuitive sense—the components that lead to its brand image. Even when clients have a good understanding of their image, they often do not completely know why that image exists. The leading-edge technique developed by IBM provides that information and helps the client understand what it can do to alter its brand image.

� The closer a brand is tied to customer values, the stronger the brand position. Values do not change easily, so linkage to positive customer values is a sustainable competitive advantage. This approach identifies the connections between concrete attributes, brand associations, and related customer values.


6.37.7 Predictive ModelingPredictive Modeling and market simulators allow us to predict the impact that changes in product, price, promotional strategies, and other factors will have on specific customer segments. Predictive models help businesses understand the factors that influence their customers’ decisions to buy a product or service. Market simulators let the client see first-hand, through real-world situations, how changes in a product feature or characteristic can affect customer preference and loyalty. When carefully developed, simulators not only predict change for the client, but anticipate change in market share for both the client and its leading competitors.

Tips for consultants—Be prepared. Asking the right questions is the key to demonstrating an understanding of the value of predictive modeling to your clients. You might want to ask questions similar to these:

� What are your key customer segments, and how do you determine the segments in which new customers belong?

� What is the impact on market share if you alter the pricing strategy? The product? The distribution? The bundling of your services?

� How much data are you currently collecting on your customers? Do you have data overload?

� How important to your company is the ability to predict customer behavior, customer loyalty, and customer preferences?

The value of predictive models and simulators

� Although the ability to predict has been used throughout history, the advent of high-speed computers has made it possible to construct sophisticated statistical models. A variety of techniques are utilized, but the outcome is one that non-statisticians can appreciate—anticipated changes in market share for both clients and leading competitors.

� Through predictive modeling and simulators, clients are able to place customers in an overall market segmentation scheme. This allows clients to tailor customer communications and to more finely focus strategic marketing efforts on preferred customer segments.

� Updating the predictive model and simulator is a critical success factor. As changes to the marketplace occur at record speed, the model can be enhanced and predictability improved through continuous inputs of pertinent information.


6.37.8 Financial and Econometric ModelingThe IBM Financial And Econometric Modeling process provides clients with an acute understanding of the financial impact of their business decisions. This modeling is often used for clients interested in:

� Developing new products and services

� Evaluating “build or buy” options

� Assessing new markets of opportunity

� Determining the financial viability of current or new enterprises

� Creating business plans

� Measuring financial performance

� Establishing return on investment

Tips for consultants—Financial savvy. Clients who can’t answer these few questions should quickly see the value of financial modeling:

� What percentage of your potential customers will buy your product or service immediately? Within 30 days? Within 90 days?

� At what price point will you achieve maximum market penetration?

� What is the market opportunity for this new service? The market size? The market potential? The available market?

� How long will it take to recover your investment?

� How will a new competitor impact your revenue stream, now and future?

Valuing financial and econometric modeling

� Many clients make decisions without understanding the financial and economic impact of those decisions. IBM offers an approach to financial and econometric modeling which provides clients with an acute understanding of financial impact while encouraging decisions to be made in a timely fashion.

� Financial and econometric models produce quantitative results based on numerous financial performance metrics. Many of these metrics are readily available from the clients themselves or from secondary sources, significantly reducing the time necessary to perform the modeling and allowing for rapid go-to-market strategies.

� The market economics in today’s business environment are complicated by the introduction of e-business. Financial and econometric modeling incorporates tools that address the product or service life cycle from both traditional and e-business perspectives.


6.38 MicroStrategy

OverviewThis is an IBM Business Partner product that provides a robust Internet platform for online analytical process (OLAP) reporting, data mining, and information distribution. Working in tandem with a data warehouse as its source—usually IBM’s UBD/DB2—MicroStrategy enables multi-dimensional analysis and other BI Solutions by providing query/report access through Web browsers or Microsoft Windows clients. Besides query, data-mining, and reporting capabilities, MicroStrategy Components can add security, enhance performance, provide standards, generate proactive report delivery, and provide analytical CRM applications.

There are several products performing different services:

� MicroStrategy Web—the HTML interface

� DSS Agent—for power analysts performing complex mining, workflow, or application development

� Narrowcast Server—delivers personalized messages

� MS Transactor—message delivery via the Web, wireless, PDA, pager, or voice

� MS Intelligent Server—a server optimized for major relational database load distribution, prioritization, and system tuning for large-scale implementations

� MS Architect—for application development and modeling and for capturing business rules




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Customer value propositionMicroStrategy provides a robust, intelligent e-business platform for analyzing large amounts of data, mining this data to find answers to critical business questions and deliver them to the enterprise, a supply chain, and/or a consumer via the Web, wireless, or voice technologies.

Other capabilities include:

� Research distribution

� Trade floor reporting

� Wireless trading

� Sales analysis

� Customer life-cycle analysis

� Profitability

� Credit risk

� Marketing automation

� e-CRM

� Financial analysis

� Insurance analysis


6.39 MQSeries/MQSFSE

OverviewThese middleware products rapidly interconnect different systems—from front-end to legacy, front-end to front-end, or front-end to outside services. This allows the re-use of interfaces and avoids the time and expense to redesign and rebuild, bringing the flexibility required to respond effectively to rapidly-changing e-business conditions. MQSFSE (IBM MQSeries Financial Services Edition) is specifically built to support financial applications.

The MQSeries family comprises five key elements:

1. MQSeries—the core of the MQSeries family.

The base messaging servers and clients provide once-and-once-only message and queuing capabilities on over 35 platforms.

2. MQSeries Adapter Offering—provides a framework and tools that build and customize MQSeries adapters for existing and new, pre-packaged, or custom-developed applications.

3. MQSeries Everyplace—extends the capabilities of MQSeries base messaging to remote servers and to mobile workers using laptops, PDAs, and telephones.

This includes all the benefits of MQSeries messaging, including security.

4. MQSeries Integrator—combines a one-to-many connectivity model, plus transformation, intelligent routing, and information flow modeling.

It facilitates the development of new application services that comprise the functions of multiple, disparate, existing business systems.

5. MQSeries Workflow—a business process management system which facilitates the rapid development and management of the business processes that integrate services provided by the IT and organizational infrastructures of the company




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MQSFSE integrates business process applications within an enterprise, thereby enhancing customer loyalty, online selling, and back-office administration. It comes with a working, customizable model of key insurance business scenarios.

Customer value propositionThis Component solves the following problems through providing the customer with the means to integrate its systems for e-business:

� Redundant integration implementation for the same functionality

� The ripple effect when one application changes

� No single place administratively to view and manage integration points

� Maintenance complexity when new applications are added to the architecture


6.40 netCallCentre

OverviewThis is an ASP offering to outsource the development of call centers. netCallCentre makes it possible to incorporate advanced call center functionality without incurring large capital costs, saving up to 75% over the cost of a typical Solution the client might implement on-site. IBM offers a “pay-per-use” pricing structure, making it a more flexible and scalable outsourcing agreement. As campaigns are launched or seasonal requirements change, adjustment to the Solution can occur to ensure maximum value to businesses large and small.

Customer value propositionThe underlying netCallCentre technology is:

1. Scalable—This architecture proved its capability to scale by exceeding 110,000 Web hits per minute.

2. Flexible—The netCallCentre Solution can be customized by choosing from a range of basic or advanced call center functions. A client can “pay as they go” or request an equal billing plan if preferred to minimize monthly billing fluctuations.




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netCallCentre essential equipment and software resides at IBM’s Strategic Outsourcing Service Delivery centers. It is operated by skilled technicians having experience with many complex customers, including many of the large Canadian banks. Through capacity analysis, IBM can monitor system usage and add additional capacity to ensure that committed service levels are always met.


3. Reliable—IBM can provide 99.999% availability. All of the critical Solution Components are monitored by Tivoli and Netfinity. IBM operations personnel are immediately notified in the event of any Component hardware or software failure, and each critical Component has a hot backup. In the event of failure of any single IVR Component, a similarly-configured Component automatically takes over until the problem is corrected.

4. Open—A client can integrate a wide range of leading CRM Solutions with netCallCentre, including Siebel and Onyx Solutions. netCallCentre also supports multiple computing platforms, both IBM and OEM. In addition, it supports multiple application environments, including client/server and host-based. IBM provides full support for implementing and maintaining the application software as well as the entire hardware infrastructure.

5. Adaptable—A customer can make many changes to its netCallCentre Solution almost instantly.

The IBM netCallCentre Service is comprised of the following features, packages, and options:

� IBM netSelfServe Feature—This is for tenants wishing to provide automated self-help services to their customers.

The netCallCentre Infrastructure utilizes IBM’s DirectTalk for AIX as its VRU platform. All features are dependent upon that platform.

� Custom Voice Response Unit Package—The IBM netSelfServe Custom Voice Response Unit Package provides for the allocation of a set number of VRU ports as specified in the order. This package provides the capability to implement custom Solutions that run on the IBM netCallCentre Infrastructure in order to exploit supported functions of the packages and options purchased.

� Overflow VRU Package—The IBM netSelfServe Overflow VRU Package has the same capabilities as the Custom VRU Package, but is contracted for a one-year term to allow for exceptional circumstances. An example of an applicable overflow function would be a mechanism for gathering lists of callers that would otherwise wait in queue for agents during extremely busy periods.

� Faxback Option—The IBM netSelfServe Faxback Option requires the Custom VRU Package. This Option provides the capability for the client to implement Custom Solutions that enable faxing of electronic documents to customers at their request.

� IBM netCallCentre Feature—This provides Computer Telephony Integration (CTI) capabilities between the IBM netCallCentre Infrastructure, the IBM netCallCentre client software installed on Agent workstations, and the telephony switch providing service to Agents.


� Entry Package—The IBM netCallCentre Feature Entry Package provides core CTI functions for the client’s call centers, including:

– Client-customized DNIS2-based call routing, a client customized softphone application that provides typical telephone functions and screen pop-up data sent with a voice call

– A monitor application that allows the customer to view the status of calls, queues, and agents

– Statistical and summary reports accessible through a Web browser interface

� Advanced Package—The IBM netCallCentre Feature Advanced Package provides all the capabilities of the Entry Package plus support for skills-based routing.

� ProfileIVR Option—The IBM netCallCentre ProfileIVR Option requires either the Entry Package or the Advanced Package and provides for the allocation of a set number of VRU ports to the client, as specified in the client’s order. The ProfileIVR application can then use this information to route the call to a destination that the customer has defined, based on the caller’s response.

� Virtual Call Center Option—This requires either the Entry Package or the Advanced Package. When configured by IBM, this option provides the ability to share calls between customer call centers in different physical geographies such that the multiple locations work together in a single”virtual call center” for the purpose of call routing and load balancing.

� Callback Option—This requires the netSelfServe Feature Custom VRU Package and the netCallCentre Feature Advanced Package. This Option provides the customer with the capability to implement custom Solutions enabling callbacks as an alternative to waiting in a queue.

2 Dialed Number Identification Service


6.41 Onyx ASP

OverviewLike Siebel ASP, Onyx ASP is an IBM partnership for delivering packaged CRM applications more quickly, easily, and successfully. This offering results in a robust, scalable architecture permitting the customer to expand its CRM capabilities as its business needs change and grow without tying up major capital resources.

Onyx Application Service Providing (ASP) Solution includes:

� A comprehensive suite of Onyx CRM software

� High-availability IBM hardware

� Ongoing end-to-end IGS support

Customer value propositionThis Component provides an enterprise-wide, customer-centric e-business Solution that will enable the client to:

� Share information more effectively

� Obtain timely, accurate updates on business results

� Build greater customer loyalty

� Gain a competitive advantage through improved customer service

Everything is bundled together for a fast implementation, requiring minimal up-front investment. The client pays only for the services used. As its needs change and grow, services can quickly and easily be ramped up.




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Onyx 2000 strikes a fine balance between functionality, speed to market, and implementation costs. This rich comprehensive Solution can combine customer data from traditional business processes as well as nontraditional Internet and e-business processes. Onyx consolidates critical relationship information through three audience-specific, Web-base product lines:

� Onyx Employee Portal—provides CRM functionality integrated with direct links to relevant Internet sites and complementary third-party applications.

Users no longer have to open and close multiple applications to access the information they need.

� Onyx Customer Portal—delivers a wide range of e-marketing, e-commerce, and e-service capabilities—from online catalogues and surveys to order processing to Web self-help applications.

� Onyx Partner Portal—gives the client powerful capabilities for collaborating more effectively with partners.

Capabilities include collaborative selling, e-commerce, and customer service.

The Onyx ASP Solution will play in all sectors where Onyx 2000 fits. These include but are not limited to Finance, Public, Distribution, Telecommunications, and Industrial.


6.42 Operations and Process Design for Interactive Transactions

OverviewRe-engineering from batch updates of silo product files such as policy and account records to interactive updates and queries at multiple touchpoints requires a number of changes in a business. Both processes and technology must adapt to achieve this transformation. IBM can help the client with a coordinated approach across both business domains.

Customer value propositionResources drawn from a number of specialized IBM practices execute this Component. A large benefit to the customer is that we can bring together the interdisciplinary team required to perform such an engagement. IBM’s business transformation consultants take the client’s business and customer strategy statements and build new process models that reflect the desire for interactive transactions from multiple points. Process designers have a jump-start in that we already have process models for each major industry in the Financial Services Sector. Object modeling engineers translate core transactions into processing object models, and from these create the actual objects themselves in platform-independent code. Often we can bring in components that have already been developed for the industry. These objects can then be used as adapters for a messaging hub that we can create using MQSFSE. This allows front-end processing of transactions either without or before legacy applications are re-engineered.




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6.43 Pervasive Computing—MeB

OverviewThis is IBM’s MeB (Mobile e-business) consulting offering to help clients define visions which include seamless integration between devices, networks, and data to provide their customers with the ability to transact business from any location at any time. Seamless integration among devices, networks, and data allows for “Where I Am” or “Location-based” services, which are projected to become a key m-commerce driver.

Within this consultancy, a Component called Quickstart Engagement Solution is employed.

Customer value propositionOrganizations can leverage advances in mobile technology to help enhance current organizational performance, increase range and reach, and develop new business models where industry restructure occurs. Companies can significantly enhance existing business processes via the integration of mobile technology.

Implementation of m-business Solutions will:

� Reduce the cost of customer retention

� Improve customer satisfaction

� Enable the acquisition of new customers through different channels

� Provide information concerning which customers to acquire in the Sell and Support applications

Business opportunities such as mobile e-marketplaces have significant impact on certain industries. MeB provides tools to enable productivity, mobile workforce, customer service, and mobile enablement of e-purchasing across various industries.




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6.44 Program Management

OverviewThis is a structured method for efficiently managing projects and tasks from conception to end. By applying program management principles, the user will find it easier to sponsor or deliver assignments that are on time and within budget. This includes not only the organization and its processes, but also the capability to manage multiple projects, thereby saving time and money through repeatable and reusable processes.

Customer value propositionUsing this Component will allow the user to administer the following program stages:

� Initiating the planning process

� Gathering the requirements

� Creating a work breakdown structure

� Preparing a risk analysis

� Building an estimate

� Adding time and resource constraints

� Engaging, managing, and controlling

� Documenting, communicating, and closing out




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6.45 S1

OverviewS1 Corporation is an IBM business partner that provides global Internet-based Solutions for financial organizations (client banks, brokerage firms, and insurance companies). Financial institutions are increasingly looking to the Web as a way to do their banking in order to improve operational and cost efficiencies, and corporate bankers are looking to innovative Web technologies to address that need. S1 delivers Solutions that help financial service providers (FSPs) deliver more value, compete more effectively, and retain their customers’ valuable business. IBM/S1 comprehensive, end-to-end corporate banking Solutions combine S1 banking applications with IBM RS/6000 servers, MQSeries messaging software, and IBM consulting, customization, and implementation services.

Customer value propositionProviding financial services to customers in the way of an integrated and comprehensive e-finance experience poses numerous challenges. The Solution must keep pace with the rapid pace of technological innovation and leverage existing technology investments, while integrating new e-finance technologies and products. The client needs established relationships with leading e-finance companies in order to deliver the variety of products and services its customers want. S1's eFinance Experience provides a comprehensive Solution designed to meet these challenges. The S1 Consumer Suite is a comprehensive Internet Solution designed to meet these challenges, offering:

� Banking, brokerage, insurance, and bill presentment functionality

� One-to-one marketing capabilities and content

� Financial planning tools




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There is no real advantage in consumers having all of their financial accounts at one FSP if each relationship is treated independently. The S1 Consumer Suite provides the Solution to this problem by offering a consolidated financial services experience.

The S1 Consumer Suite offers the following features and functionality:

� Consolidated financial information provides customers with a complete, integrated picture of their financial position in one convenient, secure location—making financial information available with one log-in, any time, anywhere, through emerging technologies and multiple delivery channels.

� Value-added content provides a wide range of customer-driven content—including personal financial data, news and market information, helpful financial planning tools, and money management advice.

� Personalized products and services offer financial products and services that are tailored to customers' needs, integrated across their financial portfolios, and consolidated to provide a complete financial picture.

� Aggregation services allow customers to view account information stored on other Web sites.


6.46 SAS

OverviewSAS is a statistical application often used in Business Intelligence Solutions where data mining is required. It allows a customer to use highly sophisticated mathematical algorithms to determine statistical proofs and data variable relationships.

e-business intelligence Solutions from SAS and IBM encompass the full range of software, hardware, middleware, and services to help the customer:

� Increase the profitability of customer and supplier relationships

� Improve operational efficiency

� Reduce financial and operational risks

Solutions from SAS and IBM include:

� Customer Relationship Management (CRM)—allows companies to analyze data from all customer contact points, including e-commerce systems, and to turn that data into knowledge in order to understand and predict customer behavior, meet customer needs, and build more profitable one-to-one relationships with customers

� International Competency Center—As an ongoing global commitment to joint Solutions, SAS and IBM created the International Competency Center, located at SAS world headquarters in Cary, North Carolina. This team of e-business experts at the ICC provides customers and sales teams worldwide with assistance and resources for sizing, design and configuration, benchmark testing, and implementation of a host of SAS software Solutions. These Solutions for data mining, data warehousing, and other business intelligence functions run on leading IBM server platforms under DB2 to meet the unique demands of an e-business world.




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Customer value propositionA SAS Solution gives the client the power:

� To know its customers and increase revenue by:

– Compiling the customers’ entire buying history—Web, branch, telephone—everything

– Identifying the client’s most profitable customers

– Predicting future buying behaviors

– Targeting marketing dollars where the payoff is greatest

� To know its suppliers by:

– Lowering costs

– Consolidating suppliers

– Identifying vendors that can best meet the customer’s needs

– Leveraging its full purchasing power for significant savings


6.47 Security and Privacy Design and Implementation

OverviewCombined with the power of network computing and the legal risks to companies, the popularity of the Internet is driving companies to focus more on security and privacy. IBM security specialists can help clients better understand information technology and review their e-business security vulnerabilities.

Customer value propositionIBM security specialists work with clients to plan, design, construct, and operate security-rich environments for their online applications and transactions. We help clients assess their current security systems and then develop custom architecture to protect both them and their customers. A total security plan would include:

� Security and privacy assessments and planning

� Security and privacy architecture and design

� Security and privacy implementation

� Security and privacy management




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6.48 Segmentation and Scoring

OverviewSegmentation and scoring, which is commonly linked to the Campaign Management process, can be used to target and predict results for several different processes. It involves the collection of data to divide customers and prospects into meaningful, actionable, targeted segments, and is generally coupled with data mining to predict the most likely marketing results. The most common applications of segmentation and scoring are for sales and customer retention campaigns.

Customer value propositionThe Segmentation Component includes:

� Extraction of customer data from client legacy systems

� Matching of external demographic data to internally extracted data

� Organization of data into household units

� Categorization of customers and prospects into segments

� Identification of actionable targeted segments

� The application of scoring algorithms to identify the most likely outcomes:

– It could be used to predict the most likely sales prospects for a sales campaign, customers to discontinue buying its products, or customers who would provide the most profit.

– It could be used for churn analysis.

– It could drive sales campaigns for new customer prospects, cross-sell additional products to existing customers, or up-sell existing products to current customers.




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The basis of the scoring process can take a several different forms, based on the depth of the client data and the maturation process of scoring solutions:

� At the outset, the scoring algorithm is typically based on historical sales and demographic information about current customers and prospects purchased from external third-party data providers.

� As additional information is collected, it might be based more on their wants and needs.

� As sales response information is collected through the campaign process and more is known about the significant data attributes in place at the time of the decision-making process, it can be based more on their behavior.

� When profitability predictors are identified, they can be applied to customer and prospects so that it can be predict those that will be the most profitable to the company.

� Finally, when customer lifetime-value models are constructed, their algorithms can predict those customer and prospects having the greatest potential lifetime value.


6.49 Siebel ASP

OverviewThrough our global strategic alliance, IBM and Siebel deliver a winning combination of CRM skills and technologies. Now, IGS can make it easier and more affordable to take advantage of leading Siebel CRM applications. Siebel ASP bundles together everything needed for an end-to-end outsourced solution that can be quickly deployed. Siebel e-business applications are one of the industry's most comprehensive, functionally-rich CRM solutions.

Customer value propositionWith the IBM pay-as-you-go fee structure, upfront investment is minimal. As customer needs change and grow, service can be expanded. The objective is to help clients quickly build a world-class CRM infrastructure that significantly improves business. The end result is rich functionality, shorter time to market, and faster return on investment.

The following applications are available as part of the IBM/Siebel ASP solution:

� Siebel.com applications enable organizations to leverage the Internet in order to:

– Identify and acquire new customers

– Enhance individual customer relationships

– Develop customized product and service offerings

– Ensure optimum effectiveness and efficiency

� Siebel dynamic commerce applications provide the ability to leverage a variety of online auctions and pricing options—such as forward auctions, reverse auctions (procurement), auction networks, cross-auction portals, and exchanges—and improve the buying experience through cross-selling and other promotional opportunities.




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� Siebel field sales and Siebel field service applications provide market-leading field automation capabilities using comprehensive and scalable mobile field solutions.

� Siebel call center applications help transform call centers into next- generation contact centers encompassing advanced customer sales and service capabilities.

Capabilities include intelligent call management, sales and service automation, and legacy integration capabilities.

� Siebel channel applications comprise the industry's leading partner relationship management solution, which supports and automates the process of managing business partners over the Web by enabling them to work collaboratively to market to, sell to, service, and retain customers.

� Siebel industry applications deliver comprehensive, out-of-the-box functionality uniquely tailored to specific business practices across a broad range of industries, making it possible for organizations to manage, coordinate, and synchronize all customer touchpoints—including the Web, the call center, the field, retail, and distribution channels.

Customer profile: ISD/Solution Status—The Siebel ASP Solution has not yet been through the ISD process. We are in the process of defining the offering in Canada, and will be approaching SOMT in 2Q2001.


6.50 Siebel Customization

OverviewIBM provides customers with the ability to customize, implement, and integrate packaged Siebel CRM systems. IBM can provide service and support capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support for all software packages.

Siebel offers a comprehensive suite of e-business applications designed to help financial institutions become more customer-centric. Siebel Financial Services helps retail banking, institutional finance, brokerage, capital markets, and insurance companies to successfully manage customer relationships throughout the full customer life cycle—across all customer touchpoints. Many leading financial services companies have standardized on Siebel e-business applications, including Bank of America, Charles Schwab & Co., The Chase Manhattan Corporation, Deutsche Bank, Farmers Insurance Group of America, Fidelity Investments, Fleet Boston Financial Corporation, The Hartford Financial Services Group, Prudential PLC, and Zurich Insurance.

Customer value propositionIBM’s partnerships with Siebel and the customer help speed delivery and payback for CRM projects. With the experience and pre-configured work pieces, the planning and implementation goes faster and smoother. Most companies need to customized their applications to leverage and fit their current environment. IBM has the resources and experience to make this customization thorough and expeditious.

Siebel has over 140 specific applications to enable continuous-loop marketing, sales, and service across multiple touchpoints for financial services firms. IBM can make it easier to manage and implement these quickly into the customer’s site.




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� Understanding customers

Siebel Analytics measures business performance across customers, products, and divisions. This includes a pre-built e-business data warehouse and a suite of out-of the box analytic applications.

� Making the right offer at the right time

Siebel Marketing supports the entire marketing process with integrated analytic, campaign management, data quality, and personalization capabilities

� Leveraging the Internet as a platform for revenue generation

Siebel dot-com applications enable financial institutions to provide their customers with superior online self-service. For example, using Siebel eChannel, insurance companies can provide brokers with select customer, product, company, and sales information to help them achieve revenue objectives.

� Providing service across all channels of customer interaction

Using Siebel Call Center, financial services firms can transform their call centers into next-generation contact centers that manage, synchronize, and coordinate service, support, and sales interactions across a broad range of communication channels—including the telephone, Web, e-mail, fax, text-based chat, and voice-over IP.

� Enabling transition opportunities

Siebel e-business applications provide critical capabilities for customer centricity, supporting each of the five key transition opportunities across the financial services industry.

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Transition opportunity: Create a complete view of the customer

Siebel integrates the multiple channels of customer information into a common repository, giving all company agents—claims and call center representatives, branch personnel, relationship managers, and business partners—a single, consistent view of the customer.


Transition opportunity: Provide consistent and personalized product and service deliver

By providing one common respository, Siebel enables consistent and personalized service across sales, marketing, and service interactions and across all touchpoints. In addition, Siebel Personalization—the financial services industry’s first multichannel personalization engine—allows organizations to tailor the presentation of content, information, and business processes based on rich customer profiles.

Transition opportunity: Align the business to customer wants and needs

Using Siebel, marketing managers can design, execute, and evaluate multichannel marketing campaigns to acquire and develop customers.

Transition opportunity: Support all customer touchpoints

Siebel provides Sell & Support applications for telephone-based, face-to-face, and Web-based interactions. Siebel product architecture allows companies to configure once and deploy everywhere customizations that would operate automatically across deployment devices—from mobile, handheld, connected, and thin clients to wireless phones.

Transition opportunity: Enable advice-based customer interactions

Siebel eSmartScript uses customer intelligence and product information in the Siebel database to guide sales and service professionals through detailed, one-to-one customer consultations. Advanced branch scripting improves responses to customers and provides best practices to even the newest financial services employees.


6.51 Siebel IBT

OverviewSiebel IBT3 is an IBM offering that provides pre-configured, pre-packaged CRM financial processes and other business components, extending the Siebel package “out-of-the-box.”

Deploying a CRM package and changing business operations to take advantage of its capabilities is a difficult undertaking. This initiative addresses the complexity of structuring, closing, and delivering on expectations posed by CRM engagements—to deliver on time, within budget, and with high customer satisfaction based on value delivered. As a result of this initiative, IBM’s intellectual capital will thus be assembled for the Financial Industry with the materials required to make possible a strong IBM value proposition dialog—as opposed to simply discussing yet another generic application installation.

All IBM sales and delivery resources can now represent our value proposition clearly and with greater confidence of the eventual outcome. Sales cycles will be shorter, delivery will be smoother, costs will be lower, client value will be greater, customer satisfaction will be higher, and winning follow-on and starburst business will become the norm.

Launch templates incorporating design-flow depictions of the business process supported by the client purchasing the Siebel Solution will be used to assess fit gaps and deliver a Solution design. This design will be used to configure the application to the client environment in the second phase of the implementation. Each of the steps will use predesigned templates that leverage financial industry knowledge and engagement experience and reflect Siebel product functionality in order to move the client rapidly toward full implementation of the Solution.




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3 Industry Based Templates

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Each prepackaged Financial Services offering will assemble the appropriate features and functions in support of the best-practice business process. The Solution will focus on the CRM touchpoints across our client’s end-to-end enterprise while setting clear expectations of what our offering will and will not include.

The template contents include:

� High-level E2E diagrams

� Operational level processes (OLP)

� Business issues/business solutions (BIBS)

� Business process procedures (BPP)

� Siebel Baseline Configuration (SBC)

� Siebel Baseline Pre-Configured Client (Baseline Client)

Table 6-2 on page 208 depicts current functionality versus planned future enhancements.


Table 6-2 Siebel IBT functional availability

Siebel Banking

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Marketing Brand Recognition X X

Segmentation/Profiling X X

Portfolio Analysis X X

Marketing Strategy X X

Message Management X X

Campaign Management X X

Lead Management X X

Optimal Channel Mix X X

Value Management X X

New Product Development X X


Sales Opportunity Management X X

Channel Management X X

Territory Management X X

Sales Transaction X X

Product Catalog X X

Forecasting X X

Cross Sell/Up Selling X X

Sales Negotiation X X

e-marketing Selling X X

Derivative Pricing X X

Service Service Request Management X X

Billing X X

Payments X X

Credit Check/Approval X X

Contact History X X

Order Status X X

Complaint Management X X

Product Service (help desk, field service, dispatch) X X

Loyalty Program Management X X

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Customer value propositionThis offering creates a repeatable process that will standardize and accelerate Siebel implementations for IGS professionals worldwide. This approach will provide the structure and intellectual capital to leverage the full IBM sales force; to assure consistent delivery, value, and customer satisfaction; and to enable a management system to handle significant growth and high-volume delivery. The framework for this offering can be leveraged to develop similar accelerated implementation processes for other CRM packages.

The IBT offerings will include Finance Industry scoping and planning templates, thus reducing overall total cost, time to implement, risk, and failure.

If our client knows what CRM functionality it wants, our IBT will help it get there faster. If it does not know, then our IBT will lead the way

In summary, the value we bring to our clients with this IBT-based CRM offering is four-fold:

1. We will guide the deployment of the application so it is used as intended—out of the box—leveraging package functionality while taking advantage of its flexibility.

2. We have a preconfigured solution to enhance the out-of-the-box application to support industry best-practice screens, views, workflow, etc.

3. We have identified areas that require workarounds that traditionally create issues in an application deployment initiative.

4. We will link the application deployment to an end-to-end enterprise view, identify key integration areas, and ensure that the deployment is strategically aligned, thereby mitigating the risk of a reset or killed project.


6.52 Skills Management

OverviewThe search for the best and the brightest has become a constant and costly battle. To remain competitive, companies will need to bring a more dynamic approach to their hiring practices. In addition, they will have to work harder to retain the best and brightest employees. The objective of the Skills Management Component is to assist line managers and Human Resources in analyzing high-priority skill gaps, as well as to provide a method for developing a skill gap closure plan.

Customer value propositionA client’s Skill Management strategy should support the organization’s mission and goals, which include identifying the tasks the company must perform well in order to remain customer-centric and competitive. Therefore, an effective Skill Management strategy will start with the following questions as a way of focusing on the short-fall in high-priority skills. These are necessary to service customers at an acceptable level:

� What business are you in?

� What skills are critical to the success of your business?

� What are the job characteristics of these skills?

� What are your critical skill gaps, and what is causing them?

� What is your plan for closing the most important skill gaps?

� What is your proactive/reactive retention plan?

After answering these questions, the client will be able to create a plan of action that will support the company’s mission, as well as focus on the critical skills that are necessary to meet the financial and strategic goals of the organization.




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6.53 Third Party Data Integration

OverviewThis involves the acquisition of data that is external to the enterprise and the integration of that data with information from within the enterprise. The resulting information can be used to implement or improve customer-centric processes such as cross-sell, up-sell, and retention management.

Customer value propositionAs financial service enterprises move into Online Financial Services, customer-centric processes become paramount. These processes rely heavily on detailed customer information. However, many enterprises have limited information about their own customers and often no information about prospects.

Third-party data is a key source of information that can enhance existing customer information or provide initial information about prospects. Third-party data vendors provide a variety of information about or characteristics of the individual. If an enterprise can combine this external data with its own internal data, it can then enhance customer-centric processes such as cross-sell, up-sell, and retention management. IBM has a variety of professional services that are geared toward assisting the client in the integration of third-party data including:

� Third-party data vendor qualification and selection

� Data warehouse and data mart development for third-party data integration

� Data analysis—including data mining—to leverage integrated customer information




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6.54 Underwriting Profitability Analysis (UPA)

OverviewRisk management is at the very heart of insurance. To attract and retain business, enterprises need to price their products competitively while managing their risk and staying profitable. Underwriting Profitability Analysis (UPA)—part of the IBM DecisionEdge for Relationship Marketing solution—allows an organization to assess a product or customer’s risk exposure, define eligibility for the product, and then price the product accordingly.

UPA is truly unique because it harnesses the power of data mining to actually discover underwriting rules based on the enterprise’s book of business and customer data. This customized approach yields results that are far superior to traditional methods while taking a fraction of the time.

UPA is a solution that applies data mining to profitability analysis with outstanding results by sifting through voluminous amounts of data—including demographic data, policy data, historical claims data, and data purchased from external sources. IBM has tuned this mining capability specifically to handle property and casualty insurance data in order to better identify significant risk factors. This subsequently enables more accurate definitions of risk groups. Consequently, an organization can develop a more effective risk management strategy.

With UPA’s easy-to-use Web browser interface, underwriters, actuaries, and marketers can control the data mining study to gain insight into the customer base and perform interactive queries and “what-if” analysis. UPA can be applied to an existing book of business as well as to new product development, identifying high-risk/low-risk attributes to help develop the most competitive rules




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and rates. A valuable tool for marketers, UPA is ideal for evaluating prospects in a cross-sell campaign for profitability and risk, and can add a new dimension to retention analysis. With the Web browser interface, this solution can run across intranets and the Internet.

Customer value propositionWith UPA, an enterprise can bring products to market faster and improve profitability by enabling an organization to:

� Identify low-risk customers—then use this information to adjust premiums, win customer loyalty, and improve customer retention

� Gain market share and improve the overall risk of policy portfolio rates by determining the lowest possible—yet still profitable—premiums for low-risk customers

� Identify lower risk customers, offer a profitable price to them, and improve overall risk of policy portfolio

� Discover high-risk individuals “hiding” among a larger group of insured individuals and adjust their premiums to better reflect their risk profile

� Run its business more predictably by forming an accurate estimate of the total quarterly loss expenses for its policy portfolio

� Directly impact its bottom line by improving loss ratios and reducing claim expenses

� Streamline and simplify the underwriting and issue processes by reducing the number of required risk factors

� Pinpoint previously unrecognized micro-segments and offer products specifically suited to their needs

� Monitor its underwriting rules and profitability on an ongoing basis, thereby enabling swift response to market changes


6.55 Vality

OverviewVality Technology is the industry's leading supplier of data standardization and matching software and consulting services. Their flagship product, the INTEGRITY Data Re-engineering Environment, helps businesses control their data quality and get the most from business intelligence solutions such as data warehouses. IBM is an authorized INTEGRITY reseller.

Vality's INTEGRITY plays an important role in IBM business intelligence solutions by providing the data cleansing and re-engineering tools necessary for effective data analysis and data mining. As an IBM Tier One Business Partner in Business Intelligence, INTEGRITY works well with IBM business intelligence products such as Visual Warehouse and DB2 Universal Database, all of IBM's server platforms, and industry-specific solutions like DecisionEdge for Relationship Marketing.

The INTEGRITY Data Re-engineering Environment is used to investigate, standardize, transform, and integrate data from multiple operational systems and external sources. By re-engineering data prior to migration, INTEGRITY feeds the highest quality information to information systems critical to your client’s business.

INTEGRITY is a specialized, multi-purpose data tool that organizations apply on projects such as:

� Data audits

� Data warehouse and decision support systems

� Customer information files and house-holding applications




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� Client/server implementations such as SAP R/3, Oracle, and Hogan

� System consolidations following mergers

� Rewrites of existing operational systems

Customer value propositionData re-engineering provides an automated means to transform imperfect data from multiple legacy and external sources into an accurate, consolidated view of an enterprise’s business across systems, departments, and business lines. Through a low-level data investigation, data typing, and entity identification, data re-engineering:

� Attains the highest levels of data quality in information systems critical to the business

� Ensures the accuracy and validity of data values

� Attains critical entity or logical key integrity

Managers must drive decisions that directly influence results. Businesses that effectively use information to manage and impact decision making will have the greatest competitive edge. Accurate data is crucial to making those decisions.


6.56 Web Analytics

OverviewAs more client functions move to the Web, businesses must understand the new drivers for predicting future client behavior. Web Analytics spans the data capture, aggregation, and analysis of customer navigation data on the Internet. The resulting customer-specific profile becomes the foundation for Dynamic Content Personalization.

Customer value propositionThis component consists of the following capabilities:

� Click stream data capture (URL, time, date, etc.)

� Data aggregation by user (using cookies)

� Analysis and segmentation of Internet behavior, supplemented by other internal and external data

� Profile generation by user




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6.57 Web Selling—Globalization Planning

OverviewThis is a consulting offering to help companies identify and approach the varied and sometimes significant changes and considerations when taking an enterprise beyond national or international. When attempting to broaden market reach globally, IBM can bring distinct experience and research to making this transition more successful.

The Web Selling Globalization Planning offering, a Component of Web Selling, is a broad-based consulting engagement geared toward companies that have identified global e-commerce as an important Component of their corporate strategy and are in the early planning stages. Most of the Web Selling ROEs have indicated that their preference is to include this as part of a large engagement, although it can certainly be used as standalone.

Based on the Web Selling Solution Planning workshop, this offering is typically a 2 to 3 day planning session designed to help companies identify specific globalization issues in the following categories:

� Business issues and business process impact

� Applications functions and interfaces

� Infrastructure issues

� Organizational requirements

� Security and privacy

� Site and content management and site marketing

The primary method for helping customers through this workshop is to perform an analysis of a typical transaction workflow, which at the present time is geared toward the Distribution Sector. The typical steps include:




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1. Site entrance—including discussions concerning how customers find the site

2. Country selection—including various navigation issues

3. Product catalog

4. Order product

5. Checkout

6. Payment

7. Invoicing

8. Fulfillment and logistics

9. Shipment confirmation

10.Settlement

11.Returns handling

Through much of this starburst opportunity, IBM-learned globalization does not always stand on its own as a topic. It really must be incorporated into everything around it.

Customer value propositionIBM can bring research and experience to the table to help strategic planning and for reducing the risk factors that come into play when attempting to globalize an enterprise. Here are some such issues:

� From 1998 to 2003, e-commerce in the US will grow at a compound annual growth rate of 80%, while continuing to account for a diminishing piece of the worldwide e-commerce market. During this same time frame, the non-US portion of the market will nearly double, from 26% to 46%. As an example, Western Europe is projected to have a CAGR of 138%.

� A recent report by Forrester (“The Cost of Cross-Border Retail”—November 2000) estimates that cross-border retail is a necessity for survival in Europe because of the need to obtain a critical mass of customers. Discussions with IBM practices in AP have outlined similar issues. Essentially, globalization is assumed to be a part of every Internet engagement.

� Some countries such as Canada and Switzerland have more than one official language. Even working within the border of a country with a single official language can be impacted.

� Globalization goes far beyond the mere adoption or embracing of Internet-based technologies to compete in today's global marketplace. It potentially involves redefining business models, reinventing business processes, changing corporate cultures, and raising relationships with worldwide customers and suppliers to new levels of excellence.


� The Finance Sector has identified globalization as a business driver that is reshaping the global financial marketplace. This implies several areas of globalization that must be addressed in order to achieve success:

– An internationalized software base or a software base with internationalized capabilities (both IBM-developed and ISV-obtained)

– A consulting and implementation capability to help clients understand and address the various aspects of globalization that are required for a successful implementation

Internationalization is the process of determining what work, roles, or Components are required, regardless of country. The more reuse of base infrastructure that can be achieved, the more cost efficient the project.

Localization is the process of taking the internationalized Components and customizing them to be specific for each locale.

To date, a series of assets has been developed:

� Quality-assured SOW

� Overview presentation to help introduce the topic and outline the major categories

� A discussion guide that can be used to help drive dialogs with the client on various topics

This discussion guide is primarily organized around site workflow steps.

� Demo tools to show clients how companies around the world have chosen to deal with various globalization initiatives

� A series of reference links that point to intranet and Internet sites for various country, regional, or general-topic sites


6.58 Web Selling—Return on Web Investment (ROWI)

OverviewThis is a consultation offering that uses the ROWI methodology to quantify and measure the financial and strategic impact of e-business. As financial services companies invest in e-business, many want answers to the following questions:

� How and what should be done?

� What should be measured to determine revenue growth, cost reduction, and profitability?

Investors in financial services companies are now demanding tangible business returns from e-business investments before they approve new funding for e-business initiatives. This can be especially problematic since many times it is difficult to capture the full impact of e-business investments using traditional measures alone.

Return on Web Investment is a three-phased set of IBM consulting engagements developed specifically to help financial services clients in various stages of deploying e-business sell-side initiatives to navigate the complex issues surrounding profitability in this new multi-channel environment.

Phase I: Making the business caseIBM consultants will help the client build a strong “e-business case” by clarifying the client’s business objectives, then identifying ways to accurately assess the client ROI. The client will come away with answers to questions about impact, metrics, industry information, and business process change.

Phase II: Measuring success factorsIBM consultants help establish a sound measurement framework—from evaluating current strategies to defining critical success indicators right now to projecting future ROI based on those criteria.




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Phase III: Assessing successPhase III engagements complete the cycle by providing evidence of success —and learning points from failures—capturing results, measuring ROI, and comparing results to prior projections. All work is aimed at assessing how e-business has impacted profitability and identifying the risks and opportunities related to future implementations.

Customer value propositionHelping clients transform their businesses to e-business involves more than opening up new sales channels. It’s about employing the Web technologies to essentially transform the way companies do business. Streamlined processes, dramatic cost savings, and heightened efficiencies are just the beginning. The payoff comes in the shape of closer, more responsive relationships with customers, suppliers, partners, and employees. IBM has trained e-business strategy consultants to help companies determine their unique answers to these very tough questions. Based on the strategic advantage that e-business provides—and all of its yet-to-be-tapped potential—it comes down to using a sound financial expectation methodology to tie Web, IT, and business strategies together. The result of this consultation is a justifiable, executable e-business strategy linked to company objectives.

Since the ROWI method can be used to evaluate the impact of all sell-side Solutions, it can help drive all of the FSS Big Plays.


6.59 WebSphere

OverviewThis is a tightly-integrated series of products and services—a new, universal Internet software platform that can support any kind of e-business, large or small. Offering advanced, end-to-end, integrated e-commerce features that seamlessly link to existing systems, it can adapt as goals, strategies, and target markets change, providing the ideal base for building or expanding business on the Web. This framework allows the customer to “bolt on” other products easily. WebSphere has many built-in elements and can connect to any relational database having a JDBC driver. It is based on open, standards-based technologies that can scale from a pervasive device such as a WAP phone to the mainframe.

The IBM WebSphere Application Server series has three editions: Standard, Advanced, and Enterprise. The Standard Edition is the entry-level product that targets simple applications. One of its greatest assets is that since all editions are compatible, any application built at this level will continue to work as-is should the customer choose to upgrade.

The Advanced Edition is used primarily for medium to high-end e-business applications. It is the most demanded version, having all of the functionality of the Standard Edition plus support for Enterprise Java Beans as well as transactional requirements stored on relational databases. This edition’s deployment environment is also different in that it allows the customer to leverage multiple servers on varied hosts that interact as though they were a single powerful server. This adds scalability and tolerance to the platform on which the applications are running.




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The Enterprise Edition is meant for very high levels of distribution, messaging, heavy transaction activity, and complex applications. This has all of the benefits of the other editions plus the use of other components—including DCE, CICS, Encina, Component Broker, and MQSeries.

Customer value propositionA customer can build, test, and deploy Web applications seamlessly with the WebSphere Application Server, VisualAge for Java, and WebSphere Studio integrated bundle of products. You can build EJBs, JSPs, JavaBeans, and Servlets, testing and debugging locally or remotely with the VA Java IDE. A few simple clicks then deploys the tested code to the Application Server. WebSphere Extended Personalization Version 1.0 delivers personalized Web content, while WebSphere Commerce Suite Version 5.1 provides multicultural functionality to support unique geographic requirements. This includes:

� Translating into the customer's preferred language

� Adjusting content presentation based on cultural preferences

� Adapting to multiple taxation laws, fluctuating currency, logistics, and payment regulations

� Presenting and preserving inventory, transaction, and fulfillment information based on cultural preferences

� Enabling merchandising and marketing managers to create, update, and manage catalog data regardless of geographic location or cultural preference

So many packaged suites are already available that before engaging a prospect you would be well advised to review the WebSphere Web site and/or speak with an experienced practitioner.

� The Getting Started Bundle in WebSphere Studio and Application Server is one of the more popular of these packages.

� The Build and Run Bundle adds VisualAge for Java Enterprise Edition.

� The WebSphere on the Go Bundle includes WebSphere Transcoding Publisher, but does not contain VisualAge for Java.

� The WebSphere Extended Personalization Bundle adds WebSphere Personalization and Site Analyzer.

The customer list is extensive, including banks and large telecommunications companies spread throughout the world. Alphabetized customer listings with accompanying success stories can be found at the following Web sites:

http://www-4.ibm.com/cgi-bi http://www-4.ibm.com/software/webservers/news.html.


6.60 WebSphere Business Components Composer

OverviewWebSphere BCC is a lightweight business orchestration system for short-lived transaction connectivity. It is based on object-oriented message representation and provides dynamic data transformation and mapping to back-end systems. Running on WebSphere 3.5, it has a Java programming model and is available on multiple platforms, including S/390.

Like other WebSphere products, this is a tightly integrated series of products and services—a new, universal Internet software platform that can support any kind of e-business, large or small. It offers a presentation engine providing highly distributable front-end navigation and capable of enabling multiple touchpoints or channels from WAP to teller. Through its back-end integration logic and adapters, it facilitates dynamic transaction integration as well as short-lived transaction coordination.

Customer value propositionWebSphere BCC provides a customer with architecture for the complete lifecycle of component-based software systems. It allows for the integration of disparate programming models in a single uniform representation, communication, and distribution model. It exploits J2EE capabilities and XML as the basic infrastructure for system construction. WebSphere BCC supports true component-based development and is ideally positioned in the space where customer information will be aggregated for use by processes and application functions which must be shared across channels to enable customer-centric processing.




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6.61 Xchange

OverviewXchange was founded in 1995 in Boston as Exchange Applications, with a flagship product known as Valex. The company has since developed new technology and made some acquisitions to extend its offerings to seven products covering three major areas associated with marketing automation—Dialogue for Marketing (formerly Valex), Optimizer, and Real Time. Xchange brings market leadership in an area critical to the mutual success of IBM and its clients in Business Intelligence. Not only does Xchange bring a substantial list of name references, but also the technical resources and experience necessary to continue to deliver market leading capabilities to our IBM customers.

Components� Dialogue for Marketing—provides robust campaign-management

capabilities that automate and accelerate a closed-loop marketing process, enabling companies to plan, execute, and assess multiple targeted campaigns.

Xchange Dialogue for Marketing can be used on its own OE in an ASP host or internal product configuration OE, or used in combination with any number of Xchange products.

� Xchange Optimizer—predicts, measures, and interprets customer behaviors, allowing companies to understand the effectiveness of e-CRM efforts across both inbound and outbound channels.

This provides a set of e-CRM metrics that describe the state of the client’s customers across the enterprise. The software and its reports can be used by virtually anyone across the client’s organization. This packaged but extensible application is delivered with a set of industry-specific data models and reports




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for eight verticals, from banking and retail to dot-coms. Optimizer workflow processes and proven implementation methodologies ensure maximum value from the industry models, customer analysis, and actionable applications which integrate with it.

� Xchange Real Time—uses the broadest customer profile to make sound decisions in response to inbound customer requests and online behaviors.

A customer profile might consist of promotion history data, demographics, and interaction data from customer-facing systems.

Customer value proposition� Dialogue for Marketing

– Provides robust campaign-management capabilities that automate and accelerate a closed-loop marketing process.

– Captures direct and indirect responses across all channels to accurately assess campaign results.

– Provides companies with more time for the execution of planning and evaluating customer campaigns while taking less time to handle execution logistics.

Xchange Dialogue for Marketing forms a strong e-CRM Solution when used with other Xchange Products for Marketing.

� Xchange Optimizer

– Tightly integrates rich customer analysis with customer communications products to improve the effectiveness of marketing campaigns, Web personalization efforts, and interactive exchanges with individual customers and prospects.

– Allows companies to gain insight into customer trends and behaviors, and then take action on their discoveries.

� Xchange Real Time

– Coordinates and optimizes customer interactions across formerly disjointed channels.

– Utilizes an enterprise view of the customer, applies intelligence to recommend personalized offers for customers, and captures their responses—all in real time.

– Initiates and maintains meaningful, ongoing dialogue over the Internet.

Table 6-3 on page 228 relates Components to customer-centric business architecture.


Customer-centric business architectureTable 6-3 Solution Component-applicable customer-centric Business Architectures

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Banking Data Warehouse (BDW) X X X


Branding Solutions X X X

Business Case Development X

Business Continuity & Recovery X

Business Process Organizational Model X X X

ChannelPoint X X

Client Information Integration System (CIIS) X

Common Transactional Protocols and Formats X X

Contact Center Assessment (CCA) X X

Content Hosting X

Customer File Design and Implementation X X X

Customer Loyalty Suite X

___Customer-centered Strategy and Roadmap X


___Customer-focused Processes and Channels X

___Customer Loyalty Management System X X X X

Customer Management Assessment (CMA/CMAT) X

Customer Prospect Optimizer (CPO) X X

Deep Green X X


___e-business Strategy X X

___e-governance X X

Enterprise Customer Analytics (ECA) X X

Enterprise Performance Suite (EPS) X X

Entity Profiling Management System (EPMS) X

e-Start X X

ETI•EXTRACT X X X X

Evoke—CRM Integration and Product Offerings X X X X

EZ Mart X X

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Financial Fusion Consumer e-Finance Suite (CeFS 4.0) X X

Financial Services Data Model (FSDM) X X

Financial Services Information Framework (IFW) X X

Help Desk X

Hosting/Outsourcing X

Insurance Application Architecture (IAA) X

Insurance Information Warehouse (IIW) X X

Integrated Voice and Data Networks X X X

Integration Hub X X

Intelligent Miner X

Kana Customization X X

Knowledge Management X X X X

Market Analysis and Strategy X

___Market Structure Analysis X

___Target Audience and Market Segmentation X

___Customer Satisfaction, Loyalty, and Retention X

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___New Product and Services Innovation X

___Brand Valuation X

___Brand Building Architecture X

___Predictive Modeling X

___Financial and Econometric Modeling X

MicroStrategy X X X

MQSeries/MQSFSE X X

netCallCentre X X

Onyx ASP X X

Operations and Process Design for Interactive Transactions X X

Pervasive Computing—MeB X

Program Management X

S1 X X

SAS X X

Security and Privacy Design and Implementation X

Segmentation and Scoring X

Siebel ASP X X X

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Siebel Customization X X

Siebel IBT X X

Skills Management X

Third Party Data Integration X X X

Underwriting Profitability Analysis (UPA) X

Vality X X X X

Web Analytics X

Web Selling—Globalization Planning X

Web Selling—Return on Web Investment (ROWI) X

WebSphere X X

WebSphere Business Components Composer X X

Xchange X X X

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Table 6-4 on page 233 cross-references Components and Solutions.


Component SolutionsTable 6-4 Solution Component-applicable Solution Offerings

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Banking Data Warehouse (BDW) X X X X X


Branding Solutions X

Business Case Development X X X X X X X X

Business Continuity & Recovery X X X

Business Process Organizational Model X

ChannelPoint X X

Client Information Integration System (CIIS) X X X X X X

Common Transactional Protocols and Formats X X

Contact Center Assessment (CCA) X X X

Content Hosting X X

Customer File Design and Implementation X X X X X X X X X X


Customer Loyalty Suite X

___Customer-centered Strategy and Roadmap X

___Customer-focused Processes and Channels X

___Customer Loyalty Management System X X

Customer Management Assessment (CMA/CMAT) X X

Customer Prospect Optimizer (CPO) X X

Deep Green X

e-business Management System X X X

___e-business Strategy

___e-governance

Enterprise Customer Analytics (ECA) X X

Enterprise Performance Suite (EPS) X

Entity Profiling Management System (EPMS) X

e-Start X X X

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ETI•EXTRACT X X X

Evoke—CRM Integration and Product Offerings X X X

EZ Mart X X

Financial Fusion Consumer e-Finance Suite (CeFS 4.0) X X X

Financial Services Data Model (FSDM) X X

Financial Services Information Framework (IFW) X X

Help Desk X

Hosting/Outsourcing X X X

Insurance Application Architecture (IAA) X X X X

Insurance Information Warehouse (IIW) X X X

Integrated Voice and Data Networks X X X X X X

Integration Hub X X X X X X X X

Intelligent Miner X X X X X

Kana Customization X X X X X X

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Knowledge Management X X X

Market Analysis and Strategy X X X

___Market Structure Analysis X X

___Target Audience and Market Segmentation X X

___Customer Satisfaction, Loyalty, and Retention X

___New Product and Services Innovation X X

___Brand Valuation X

___Brand Building Architecture X

___Predictive Modeling X

___Financial and Econometric Modeling X

MicroStrategy X X X X X X

MQSeries/MQSFSE X X X X X X X X

netCallCentre X X X X X

Onyx ASP X X X

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Operations and Process Design for Interactive Transactions X X X X X X

Pervasive Computing—MeB X X

Program Management X X X X X X X X X X X X

S1 X

SAS X X X X X

Security and Privacy Design and Implementation X X X X X X X

Segmentation and Scoring X X X X X X

Siebel ASP X X X

Siebel Customization X X X X X X

Siebel IBT X X X X X X

Skills Management X X


Underwriting Profitability Analysis (UPA) X

Vality X X X X

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Web Analytics X X X X

Web Selling—Globalization Planning X X

Web Selling—Return on Web Investment (ROWI) X

WebSphere X X X X X X X X

WebSphere Business Components Composer X X X X X X X X

Xchange X X

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Chapter 7. How to engage IBM Global Services to accelerate customer centricity

This chapter defines the IBM value proposition, provides representative case studies, and describe how to engage BIS in the Financial Services Sector in order to help our clients leverage customer centricity.

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Figure 7-1 The Big Plays are focused on developing customer centricity.

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Components

CustomerLoyalty

WealthManagement


Mobile Internet




7.1 Why IBM

7.1.1 IGS Value PropositionWe have a compelling value proposition for helping our clients accelerate their transformation to a more customer-centric approach. Its three major components are:

1. We deliver a comprehensive approach rather than individual e-business Solutions, providing the flexibility for multiple client entry points.

2. We bring together cross-sector Solutions—like Customer Loyalty, Wealth Management, and Mobile Internet—with the industry-specific Solutions of e-banking, e-insurance, and e-invest (OFS).

3. We provide the right infrastructure for “heavy lifting” of e-business, and then applying it to specific Solutions for retail financial services.

In addition, Leveraging Customer Centricity is another example of IBM’s overall value proposition—unparalleled breadth and depth of products and services to provide Solutions to client issues.

Over the years, we have:

� Gained a solid understanding of e-business needs and priorities of the financial services industry through involvement in and leadership of a variety of technology projects, such as the 1999 insurance industry thought leadership study, “An Industry @ Risk”

� Hired individuals with deep knowledge of the financial services industry and trained them in the key technologies necessary to execute a long range e-business transitions

� Built flexible, end-to-end service capabilities to match client needs with an appropriate collection of strategy, planning, and execution Solutions

� Established partnerships and implementation capabilities with prominent financial services e-business Solution providers such as Siebel Systems, Kana Communications, and Castek

� Deployed financial services personnel through geographic and functional category delivery channels—e.g., consulting practices, centers of competency, and innovation centers

� Performed successful engagements for clients throughout the worldwide Financial Services Sector, covering a broad range of business and technology challenges and opportunities such as new media, regulatory, communications, and risk management

Chapter 7. How to engage IBM Global Services to accelerate customer centricity 241

7.1.2 Competitive advantagesAs a result of its experiences and capabilities, IGS offers its clients five key advantages:

1. Superior speed to market, with predictable business results:

– Using robust, tested methods and techniques

– Substantiated by client experience

2. End-to-end strategy, planning, and execution integration:

– From market analysis through sales and support services

– With application and data integration using MQSFSE

3. Experienced professionals in:

– Innovation centers

– Regional and national industry practices

– Specialized BIS practices and competency centers

– Vendor partnerships with application leaders

4. Technology and thought leadership represented by:

– Research centers focusing on new technologies and their application to business problems

– Industry studies that develop practical approaches to strategy, planning, and execution

– Leading pervasive, wireless, and micro form factor technologies

5. Risk reduction providing:

– Reuse of methodologies, frameworks, and engagement work products

– Peace of mind from knowing that your supplier will be your partner for the long haul


7.2 Case studies

7.2.1 Value-based customer segmentationTransition opportunity—Complete client view

Approach/result—One insurer IBM worked with wanted to enhance customer relationship management to develop long term profitable relationships. It was faced with many challenges—such as data that described contracts, not customers, and data that was not easily accessible by agents or the lines of business.

IBM helped the client extract data from multiple product systems, append external survey data, score on business interest areas, define new segments, and develop a targeted marketing campaign. As a result, the client identified new customer segments and achieved significantly higher response rates for new campaigns targeted to unassigned/orphan clients.

Solutions offerings—Customer Segmentation and Scoring

7.2.2 Targeting products and services to value-based customersegments

Transition opportunity—Consistent and personalized product and service delivery

Approach/result—A multi-line financial services firm with a large career agency force wanted IBM to help it increase sales across product lines within a book of business by helping agents target customers most likely to buy its products. IBM identified important customer information required for propensity scoring, used predictive modeling to rate the households which had the highest propensity to own the firms’ products, and segmented households with similar characteristics and needs whose buying habits and product Solutions were unique enough to be acted upon by an agent. This information was aggregated in a “marketing data warehouse” to provide segmentation and scoring in an automated way to the sales process.

A Web-based Lead Delivery system was developed to provide agents segmented and scored leads. The IBM Solution established a closed-loop feedback process that captured the results of the sales process and used that customer information to improve the scoring and segmentation models. Business intelligence enabled the client to help its agents make the right offer at the right time to up-sell and cross-sell its book of business, resulting in a significant


improvement in close ratios and lower cost of prospecting—from $24 per contact to $5 per contact.

Solutions offerings:

� Campaign Management

� Data Mart Design and Implementation


7.2.3 Calculating lifetime profitability by customerTransition opportunity—Customer facing processes aligned with customer and business wants and needs

Approach/result—IBM helped a financial services firm identify the overall strategy for lifetime value of households within its book of business. A household’s lifetime value is the expected profit it generates from its current policies across a fixed number of years, and can include future anticipated policies based on life-stage scenario development. Alternately, lifetime value can represent the net present value of the expected profit the company will lose if the household defects.

This strategy allowed the client to identify who its “best” customers were. The plan was to develop retention and customer care programs to keep these customers, and conduct targeted marketing campaigns to attract other customers with similar characteristics. An agent-only screen that mapped the customer’s propensity to buy against lifetime value was a Component of the plan to assist agents with their sales and service strategies.

Solution Offerings—Customer Value Management

7.2.4 Transitioning to a customer-centric business modelTransition opportunity—Customer facing processes aligned with customer and business wants and needs

Approach/result—A financial services firm wanted to increase customer satisfaction and improve the productivity of its customer service reps in its Customer Support Centers. IBM helped the client to reinvent its business model by:

� Eliminating vertical silos and creating customer-focused teams responsible for all support services

� Creating new customer-centric processes


� Identifying a supporting IT architecture—including applications, data management, and work management

� Establishing a new performance management process

The results experienced by the client increased customer satisfaction from 73% to 95%, tripled the number of customers supported with the same staff level, and reduced cycle times by 20% to 70%.

Solution offerings—Business Process Organizational Model

7.2.5 Expanding consumer access using customer value management

Transition opportunity—e-enabled interaction at multiple customer touchpoints

Approach/result—Old fashioned service, provided via the Web. A thriving auto, home, life, marine, and personal liability insurer built its success on a traditional foundation—giving its customers superior service. With the advent of e-business, it realized that it needed to expand its outreach channels to include the Web—but not at the expense of its customer-focused mission and reputation. One of the greatest fears voiced about our technological age is that the interactions can become cold and impersonal. IBM was challenged to assist this firm in its construction of an e-business strategy that was aligned with its internal business objectives and as well as consumers.

Pairing an industry consultant with an e-business architect, IBM quickly developed a roadmap for the firm’s infrastructure and external rollout. Facilitated internal workshops, coupled with executive interviews and a custom industry benchmark, helped the team create a plan, development, and release strategy.

The foundation of the first release was developed using Customer Value Management techniques to evaluate the firm’s current and planned market segmentation; capture, evaluate, and prioritize customer and prospect e-business needs; and complete a competitive review. These results fed the IBM Innovation Center design group. A design treatment was chosen and rapid development, using the IBM Method, began. The first release completed within six months of start, with two additional releases completed in the following twelve months—on time and within budget.

Business functions included:

� Company positioning and access information

� Product and services information

� Quotation facilities


� Policy inquiry

� Electronic bill presentment and payment

� Claim reporting

� Customer testimonials

� Feedback capabilities

� Industry information links

� Industry-leading privacy and award information

The firm achieved its goals—a new Web site that communicates its brand effectively to current and prospective customers. Site traffic, as well as completed transactions, have risen substantially—and the firm has earned numerous awards for its success.

As a result of this success with the external view of e-business, the firm has hired IBM to implement new back-end systems, as well as an office front end. Both initiatives are based on software Solutions from IBM business partners—Castek Systems and Siebel Systems.

Solution offerings:

� e-business Strategy and Design

� Customer Value Management

� Innovation centers design studies

� WebSphere and MQSeries

7.2.6 Implementing a new wealth bankTransition opportunity—Advice-based customer interaction

Approach/result—A financial services firm wanted to establish a greenfields “new wealth bank” targeted at its high net worth customers. This installation covered all aspects of the new bank—from front-end delivery systems through back-end core banking and brokerage systems. IBM helped the client to:

1. Evaluate the market for the offering and establish the segments most appropriate for the service from the existing customer base

2. Establish a roadmap to implement the services

3. Establish the business case and provide the ROI model for the firm

IBM’s system design was based around an extensive Customer Information File and included:


� Account management—both transaction and deposit accounts

� Various forms of short-term savings, such as time deposits

� Multicurrency support

� Brokerage to address this customer’s needs

Channels were restricted to the Internet, WAP phones, and pagers (for alert services)—with limited agent support delivered through a 24x7 call center, as well as some face-to-face contact.

Solution offerings:

� Sell & Support Strategy and Roadmap

� Channel Management

7.3 How to engageWe have many resources at our disposal for each significant financial services opportunity. The challenge is to identify, qualify, and engage the right recipe for any opportunity.

From an opportunity management perspective, the region industry executive's team—as the contract holding organization—is the decision point for determining whether or not to approach an opportunity.

From a tools perspective, OASIS is the tool that supports opportunity management in BIS.

7.3.1 Business needsFrom a client’s perspective, business customers acquire products and services to satisfy needs. There are multiple sources of needs, based on three domains of influence:

1. Strategic—Chief “x” officers (CxOs) shape strategy through environmental forces (economic, regulatory, and competitive)

2. Operational—Management policies implement strategy and objectives (revenue, profit, costs by product/segment/market, specific organization departments, or silos).

3. Functional—Specific areas interact to run the business (managing line operations, technology, products and features, service and support).

The IGS principal must match the client influence domain with the appropriate qualified IBM resource—e.g., industry marketing consultant or specific


technology SME. In this endeavor, the region industry principal is the gateway to all.

7.3.2 Opportunity management processDescribed below are the business rules for Opportunity Management (OM) that all IBM Global Services professionals must comply with. They reinforce the integration of SSM with opportunity management.

The rules apply to opportunity identifiers, opportunity owners, and Solution owners. A practitioner can fulfill one or more of these roles as he or she executes the OM process.

� The opportunity identifier is the person who discovers the opportunity. This can also include the S&D community.

� The opportunity owner is the industry principal who is the primary interface to the customer. Opportunity owners are responsible for:

– The development of the winning strategy

– Assignment of Solution owners

– Opportunity forecasting in OASIS

– Integration of multiple practice components

– The review and approval process

– The delivery of the proposal to the customer

� The Solution owner is a principal subject matter expert. Solution owners are responsible for:

– Scoping the Solution

– Building the proposal pursuit team

– Developing the proposed Solution content

– Pricing input

– Opportunity forecasting input to the opportunity owner

– Leveraging IBM intellectual capital

– Assisting in the review and approval process

– Delivering the Solution to the customer


7.3.3 Opportunity management rules and guidelines

RulesOpportunity identifier: Enter each new opportunity into OMNOTES/OASIS, ensuring that it does not duplicate an existing entry. Contracts cannot be opened through NSSO without an opportunity number.

When: Within 2 days of its identification

Rationale: Complete and non-redundant opportunity information is necessary to effectively manage our business. Clip levels reduce the workload by avoiding the data entry for very small opportunities.

Opportunity identifier: Ensure that an opportunity owner is assigned and identified in OMNOTES/OASIS.

When: As promptly as possible

Rationale: If no one has responsibility for ensuring that an opportunity owner is assigned, then the opportunity might be overlooked instead of getting to the attention of the right people needed to pursue it.

Opportunity owner: Record sell cycle changes in OMNOTES/OASIS according to SSM verifiable outcomes, definitions, and tools/sales aids.

When: Within 2 days

Rationale: Signature Selling Method (SSM) is our process for selling. The sell cycles recorded in OMNOTES/OASIS must be current for effective opportunity management.

Opportunity owner: Enter correct product category (i.e., offering codes) in opportunity “component detail” records.


Rationale: We need to track opportunities at the offering level to really be able to manage our business. The offering IDs in the GBT (Global Brand Table) will be used for this coding.

Opportunity owner: The opportunity owner responsibility can be transferred with mutual consent of the outgoing and incoming owners by updating OASIS accordingly.

When: Within 2 days of agreement

Rationale: There can be valid business reasons for changing the person in the Opportunity Owner field. This is permitted if there is mutual agreement between the current owner and the new owner.


Opportunity owner: For complex opportunities (opportunities that cross IGS LOBs), these rules should be followed:

Cross-IGS LOB contract signings tracking and credit:

• If an opportunity is less than $1M, then there is only one detailed record for services. The lead LOB is responsible for entering and updating the record.

• If an opportunity is over $1M, multiple detailed records can be created for each IGS LOB involved.

When: When determined

Rationale: Components will be reported as separate LOB line items. The offering and component IDs in the GBT will be used for this coding.

Opportunity owner: Ensure that all complex opportunities with multiple components have an agreed-to overall opportunity owner.


Rationale: This rule ensures that someone is in charge and is another case where duplicate opportunities will be avoided.

Opportunity owner: Report any opportunity with a revenue stream lasting more than one quarter with a “stream” flow code, in either monthly or quarterly increments, which reflect the expected billing over time.

When: When determined

Rationale: For projection and planning purposes, an opportunity's revenue stream needs to be spread over time.

Opportunity owner: Enter opportunities that close within two business days of being identified, as a “won” opportunity (within clip levels).

When: When won quickly

Rationale: Even opportunities with short sell cycles that close quickly need to be entered to spot trends and understand what is happening in the marketplace.

Opportunity owner: Ensure that all opportunities in OMNOTES/OASIS are marked for submission to the OMNOTES/OASIS bridge.

When: When entered or updated

Rationale: This is the only way that they will show up in Operational EDGE reports used to determine how our business is run.


GuidelinesOpportunity identifier, opportunity owner, and Solution owner: The SSM tools/sales aids are the first choice in determining status and managing an opportunity through the sales cycles. They are the way IGS will track an opportunity's progress.

Rationale: SSM provides a rich set of tools to execute world-class sales and opportunity management.

Solution owner: Look for available intellectual capital (ICAP) before creating unique material. ICAP includes forms, procedures, processes, service delivery methods, and client deliverable templates.

Rationale: ICAP enables higher quality deliverables and effective use of resources as well as enabling profitable value-based pricing options.

Opportunity owner and Solution owner: Use SSM sales aids and QA to improve opportunity decision-making while meeting the customer's needs and providing business value.

Rationale: There are a number of excellent tools available to the sales practitioner through SSM and QA. They are designed to support the opportunity decision-making process. It is important that we learn and use these tools for effective opportunity management.

Reference: SSM Sell Cycle SummarySell Cycle 2: Validated occurs and is reported when the “buying vision” is established between the prospect and IBM, and the prospect agrees to provide access to the Power Sponsor. SSM provides tools to determine the verifiable outcome as “validated.” Remember, discarding a bad opportunity early saves sales costs.

Sell Cycle 3: Qualified occurs and is reported when the IBM capabilities are articulated, the opportunity is qualified with the prospect, and it selected by IBM for proposal development. SSM provides tools to determine the verifiable outcome that the opportunity is “qualified.” Selection by IBM is easily verifiable. Eliminating opportunities at this point avoids IBM proposal development costs.

Sell Cycle 4: Proposed is achieved and reported when any proposal—including a Letter of Authorization (LOA), a Letter of Intent (LOI), or other preliminary agreement—is presented to the prospect. SSM provides tools to determine the verifiable outcome as “Proposed.”

Sell Cycle 5: Win/Implementing is achieved and reported when the overall (main) contract is signed. An LOA, LOI, or other preliminary agreement that generates billing before the overall contract is signed will be re-categorized as a


separate opportunity in OASIS and reported in Sell Code 5—Win/Implementing, leaving the remaining overall opportunity in Sell Code 4—Proposed.

IGS engagements can be governed by a Statement of Work, LOA, LOI, or other contract documents. In those cases where there is more than one signing date, the opportunity must be divided into separate opportunities and recorded as such in OASIS.

Sell Cycle 6: Won/Complete is achieved and reported when the service delivery is complete. This sell code triggers the customer satisfaction process.

Helpful sites for more information

IBM ContactsFrom an opportunity management perspective, the region industry executive’s team is the contract holding organization and, thus, the decision point in determining whether to approach an opportunity or not. OASIS is the tool that is used as the basis for opportunity management. There are several ways to get to the right region industry principal:

� If you know who to call for a particular opportunity, then call that person directly.

� If you don’t know who to call, you can:

– Contact the region industry principal for that client.

– Contact the Sector Category Team for that sector.

– Contact the National Multi-Industry Practice for that Solution.

Link to Financial Sector data bases:d02db024/02/a/ibm/I_dir\intelcap\insur.nsf

Link to IGS Financial Sector:http://w3-ibm.com/services/bis/secors/financial_services/financial_services.html

Link to Financial Services Solutions:http://w3-1.ibm.com/industries/financialservices/finsect.nsf

Link to IGS:http://w3.ibm.com/services/how_we_sell.html

Link to BIS:http://w3-1.ibm.com/services/bis/

Link to BIS Multi-Industry Sell & Support:http://w3-1.ibm.com/services/bis/multi_industry/multi_industry.html


– Contact the local Region Multi-Industry team.

Either way, you will arrive in the Identification and Qualification Phase in Opportunity Management.


Appendix A. Listing of consultant and practice information

We have introduced the new term Solution Category as a grouping of our former Offerings, Components, and features to a higher aggregation model, which reflects the change in customer buying patterns toward integrated Solutions. Our Solutions can naturally be grouped into five Categories aligned with the main customer buyer groups. The five Solution Categories and their associated codes are:

1. e-business Strategy and Change (6955-20A)

This category includes the business consulting part of our Solutions—i.e., e-business Strategy and Design, Organization Change Management, Operational Effectiveness, Mergers and Acquisitions, and our traditional Industry Consulting.

2. Buy and Supply (6955-21A)

This Category covers the buying side of business interactions. It includes our Solutions in SCM, e-procurement, and the rapidly emerging e-market activities.

3. Sell & Support (6955-22A)

This Category addresses the customer needs to extend to multiple channels, lower sales and marketing costs, and improve responsiveness and quality of

A


service. It includes our Solutions in Web Selling, CRM, and BI. New initiatives such as dot-coms are captured in this Category.

4. Enterprise Resources (6955-23A)

This category includes our Solutions in Enterprise Application Systems and Application Management Services. These systems are typically transaction- oriented around core production, delivery, and accounting processes. The Category also represents mature market industry Solutions with strong focus on after-market initiatives.

5. e-business Integration (6955-24A)

This category creates business value for our customers by transforming their business processes and IT infrastructure so that they are aligned to compete in today's e-business world. The solutions included are:

a. Security and Privacy

b. Knowledge and Content Management

c. Enterprise Application Development

d. Enterprise Application Integration

e. e-commerce

f. Microsoft technologies

Note that Custom Systems Integration (SI) (6950-27P) is not a Category. It represents “first-of-a-kind” custom development. This remains an important capability in certain parts of the world, but is being de-emphasized as customers move toward packaged solutions.

PracticesThe financial business model is highly dependent on building capacity with specific skills at specific levels of experience. The capacity is best described organizationally around practices. Practices enable a group of persons with the same primary skill to continually develop the skill and maintain current knowledge in order to be competitive in the market place.

As of this writing, there are 47 recognized practices that map uniquely to the categories. These practices are defined in detail at the end of this document. Each practitioner will be aligned with one primary practice. Based on the needs of the business, the practices might change over time as the services market evolves.


e-business Strategy and Change� e-business Strategy and Design (A1)

A consulting service that helps clients develop a competitive e-business strategy and facilitates the end-to-end e-business transformation process. Consultants with industry knowledge will assist clients to formulate an e-business strategy roadmap for clients' e-business initiatives by providing scenario-based planning, identification, and development of strategic capabilities and initiatives; definition of new business models, specification and preliminary requirements; and the development of a strategic roadmap for e-business initiatives. This service also assists clients to develop a comprehensive e-business design model that emphasizes integration across all of the e-business Solution Components. The Components include business, application, and technology architecture to support the e-business initiatives, as well as the definition and integration of business, management, and operational requirements.

The deliverable of an e-business Strategy and Design consulting practice includes a roadmap of strategic e-business initiatives, a framework for implementing these initiatives, requirements for implementing them, and an integrated development and implementation plan.

� Mergers and Acquisitions (A2)

The Mergers and Acquisitions Practice provides global cross-industry support to clients whose businesses are in the process of merging and who require targeted expertise and experienced resources to assist in the integration of existing resources in order to create a new merged company and technology structure.

� Organizational Change Management (A3)

A consulting service that leads clients in moving their organization to the enterprise's desired state by ensuring overall alignment of the organizational requirements with the process and technology requirements. The Organization Change Practice plans to provide global support for the development and delivery of solution-based organizational change offerings. Consultants with organizational change skills will lead clients to address organization infrastructure requirements (referred to as Organization Analysis and Design—OAD) including organization structure, performance measures, role/job definitions, rewards and incentives, and other tangible aspects that motivate actions needed under a new vision, business direction, or business design.

Consultants are further prepared to address the risks and productivity impacts of a particular implementation or change. These considerations are addressed through areas such as readiness assessments, transition management, change leadership, stakeholder participation, communications,

Appendix A. Listing of consultant and practice information 257

and education and training (referred to as Organization Change Management—OCM).

This consulting service incorporates solution-specific offerings such as e-business Management System (helping clients to manage the business aspects of e-business), e-culture (addressing the specific organizational and transformation issues for becoming an e-business), and Change Toolkit (the electronic toolkit developed through the alliance between IBM and Rosabeth Moss Kanter of Harvard Business School). It also integrates elements of OAD and OCM into solutions such as Enterprise Resources and CRM.

� Operational Effectiveness (A4)

A custom management consulting service that provides assessments and re-engineering solutions for clients. Consultants help clients deliver customer-perceived value through specific and measurable performance improvements in chosen, key processes aligned with their organization, analyze the processes in light of the overall corporate strategy and business objectives, assist in reinventing them, and leave behind an integrated set of new business processes organized around a set of business objectives.

Buy & Supply� Supply Chain Consulting (B1)

Primarily engages in management consulting with a focus on business performance process improvement, supply chain operations assessment, economic opportunity prioritization, and implementation of supply chain monitoring systems through a partnership with Gartner e-Metrics.

� Procurement Consulting (B2)

The Procurement Consulting practice provides the end-to-end continuum of services to address all of the needs of an enterprise to include management consulting, strategic sourcing, package implementation, and application hosting. This practice offers this full menu of offerings with the option of out-tasking all services or some portion of an enterprise's needs.

� Procurement Package Implementation—Ariba (B3)

This is the umbrella organization for package implementation work in the e-procurement area? Currently, the only package supported is Ariba; and the primary focus is on their Buyer product. This application suite enables clients to automate their procurement process on the Web; and in doing so integrate best practices, strategic sourcing, and other process improvements that reduce costs and improve efficiency. The e-procurement practice also has implementation skills for both the Ariba Marketplace and Dynamic Trade products. These consultants focus on the delivery of e-market projects with Ariba content. While Ariba is the only ISV currently in the practice portfolio,


other e-procurement software providers will be evaluated to address the broad range of market place.

� Supply Chain Planning—i2/Manugistics (B4)

Provides package implementation services for i2 Technologies, Manugistics, and SynQuest. IBM’s alliance with i2 makes it possible to partner more readily; and therefore maintain a high percentage of the engagements. By leading clients through i2 engagements, our consultants make possible better management of scarce resources while improving operational efficiencies and reducing costs.

� Enterprise Asset Management—Indus/PSDI (B5)

Does package implementation work for PSDI, Indus, and Mincom? These packages help customers operate and maintain critical capital assets in an efficient manner, reducing both downtime and costs for parts and supplies. Additionally, EAM applications have been adapted to drive Maintenance and Repair Operations in a variety of industries such as Utilities, Public Sector, and Transportation.

� Industry Solutions Buy and Supply (B6)

Provides resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices.

� Other Buy and Supply (B7)

Provides skills, skills expertise, processes, tools, and methodologies that cannot be associated with any of the defined Category Practices—e.g., implementation skills for ISV packages other than the ones addressed by specific practices, or consulting skills which do not fall into any of the other practices.

Enterprise Resources� SAP/PeopleSoft Package Implementation (C1)

Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages.

� Retek Package Implementation (C2)

Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis,


configuration support, customization, data conversion, and application upgrade support apply to all software packages.

� Oracle Package Implementation (C3)


� JD Edwards Package Implementation (C4)


� Baan Package Implementation (C5)


� Lawson Package Implementation (C6)


� Application Management Services (AMS) (C7)

Provides the skills, expertise, processes, tools, and methodologies needed to manage the customer’s ERP solution. These services offer the flexible and effective ongoing support for the customer’s ERP portfolio that is crucial for it to realize the return on its ERP investment. Our approach provides a stable ERP environment that performs according to defined service levels at a predictable cost.

� Package Enabled Business Transformation (PEBT) (C8)

Provides a full complement of IBM consulting skills, industry knowledge, and best practices expertise which allows the customer to complete the


transformation of processes, organization, and infrastructure with packaged software while minimizing disruption to business, customers, partners, and suppliers.

� IT Infrastructure Package Implementation (C9)

Provides an end-to-end service offering designed to facilitate rapid implementation of the architecture, planning, and implementation of a package-enabled infrastructure. The customer benefits from the maximization of implementation speed while business risks are minimized.

� Product Life Cycle Management (CATIA) (C0)

Provides global, high quality, end-to-end CATIA and ENOVIA application1 consulting and implementation skills to help our customers use product innovation as a competitive weapon by leveraging knowledge and innovation.

� European Monetary Union (EMU) Transformation (CA)

IGS helps with business impact consulting to consider previous and possible future markets, products, and customer relations. In addition, we provide assistance for each phase of the transition, based on clearly defined interfaces. This is achieved by a specific euro methodology called EuroPath. We offer industry consulting (analysis of the business and IT impact of EMU), business transformation consulting, IT consulting, and systems integration services, as well as education and training to educate customer staffs and their customers. We can assist in optimizing revisions to applications necessary to support the euro.

� HRACCESS Package Implementation (CB)


� Other Enterprise Resources (CC)

Provides skills, skills expertise, processes, tools, and methodologies which cannot be associated with any of the defined Category Practices—e.g., implementation skills for ISV packages other than the ones addressed by specific practices or consulting skills which do not fall into any of the other practices.

� Industry Solutions Enterprise Resources (CD)

Provides resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices.

1 From Dassault Systemes


� Corebanking (CE)

Focuses on retail banking core systems amendments or replacements—e.g., current accounts, deposit accounts, mortgages, loans, general ledger, management information systems, and customer information systems based on the use of the following IBM and ISV assets: Corebank2, IFW, SIB400, Zeus, HPS, Fiserv, Sanchez, M&I Eastpoint, IRIS, and CRA.

� Capital Markets (CF)

Provides Global Financial Markets leads for application and business implementation projects within a defined set of customers comprising the international banks, securities companies, and financial institutions. It focuses on five key areas:

– Exchanges, clearing and depository institutions, and electronic crossing networks

– Trading and risk management

– Securities transaction processing

– Internet wealth management and brokering

– Payment systems

Sell & Support� Data Warehouse Consulting and Implementation (D1)

Business consulting and implementation services for touchpoint capture, data management, ETL, data modeling, industry models, business reporting, OLAP, and balanced scorecard.

� Data Mining and Analytics Consulting and Implementation (D2)

Consulting and implementation services for mathematical transformation analysis, customer segmentation, business modeling, optimal customer decisioning treatment 3, and campaign management.

� Siebel Package Implementation (D3)

Implementation and integration services for packaged Siebel CRM Solutions. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages.

� CRM Strategy Consulting (D4)

Consulting that results in the development of a CRM business strategy, design, and plan for implementation of a packaged CRM solution.

2 From CBS Integrated Solutions3 A tested method to determine the optimal targeted segments, types of campaigns, and selling opportunities to offer tocustomers with the highest propensity to be profitable.


Management consulting with a focus on business performance process improvement, CRM operations assessment, economic opportunity prioritization, and implementation of CRM systems that allow customers to identify, select, acquire, develop, and retain profitable customers.

� CRM Package Implementation (D5)

Implementation and integration services for industry-leading CRM e-business packaged solutions—including operational process, design and technology linkage, product evaluation and selection, infrastructure development, and integration with ERP and legacy applications. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support.

� Web Selling Strategy Consulting (D6)

Strategy, globalization, and planning services for implementation of packaged Web selling solutions. Provides a business with management consulting services built around the ability to implement a secure, scalable solution to reduce the costs of doing business while broadening market reach.

� Web Selling Package Implementation (D7)

Implementation and integration services for sell-off and auction, adaptive marketing, commerce site content management, e-commerce engines, e-market places and Web selling packaged solutions. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support.

� Mobile/Wireless CRM Application Services (D8)

Services to design, develop/customize and implement CRM applications for pervasive devices, which includes capture, data storage, mathematical analysis, and CRM treatment. Systems integration and infrastructure services for pervasive device activation up through sending a record for application purposes.

� Industry Solutions Sell & Support (D9)

Resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices.

� Interactive Branding and Design (D0)

Consulting services to design and implement consistent branding across all customer touchpoints.

� Other Sell & Support (DA)

Provides skills, skills expertise, processes, tools, and methodologies that cannot be associated with any of the defined Category Practices—e.g.,


implementation skills for ISV packages other than the ones addressed by specific practices, or consulting skills which do not fall into any of the other practices.

e-business Integration� Security and Privacy (E1)

Our goal is to deliver to our customers the services and Solutions necessary to build trusted electronic relationships between their customers, employees, business and trading partners, and shareholders. It is on this foundation that our clients can successfully leverage e-business to deliver their brand promise.

With decades of experience in safeguarding tens of thousands of customers and IBM internal systems and data centers, the IBM Security and Privacy Services team extends our experience by integrating security, privacy, and trust into e-business Solutions in the networked world. Our offerings are among the most comprehensive in the security services marketplace.

Reflecting these marketplace needs, IBM provides end-to-end solutions that include and integrate assessment, design, implementation, and out-tasking services. We have proven that these services can be delivered quickly and consistently on a global basis to meet industry-specific client requirements. Uniquely, our experience and knowledge are instantiated into Intellectual Capital and Methodologies, which are leveraged for training and delivery. They are constantly appraised and new best practices are integrated and communicated to our worldwide team of practitioners.

� Knowledge and Content Management (E2)

As e-business dramatically increases the flow of information within and across businesses, effective knowledge management leverages the information to fuel innovation and productivity growth. We help the customer understand, analyze, measure, and manage the organization's intellectual assets, turning corporate “wisdom” into market value. We help the customer scale these efforts through the effective use of collaborative, portal, and other Knowledge Management technologies. Of the “next-generation” management disciplines now emerging, knowledge management is an essential survival requirement.

� Enterprise Application Development (EAD) (E3)

Focuses on defining, architecting, developing, and implementing custom AD and SI solutions.


� Enterprise Application Integration (EAI) (E4)

The charter of the Practice is to integrate LOB applications within and across enterprise boundaries. This capability is a fundamental requirement for executing our integrated e-business industry solution go-to-market strategy.

Package Solutions, legacy applications, and custom developed business Solutions set the boundaries for EAI. EAI enables the system-to-system communication that end-to-end solutions require. The need for EAI crosses all sector and category boundaries. The technology used within EAI spans queuing, routing, data transformation, work flows, and business process management. Some of the technologies utilized within the practice are MQSeries, MQ Work Flow, MQSI, WebSphere, B2BI, Extricity, Web Methods, Vitria, CrossWorlds, and Tibco.

The EAI market space is rapidly maturing. Rather than using custom development, customers are now addressing integration using EAI packages and purchased application adapters to reduce implementation cycle time, support cost, and maintenance. The EAI practice specializes in the architecture, selection, and implementation of these EAI ISV packages.

� Enterprise Service for Microsoft Technology (ESMT) (E5)

The ESMT Practice focuses on providing Microsoft-based IT solutions for clients who choose these products as core components of their environments. It involves building deep skills in the Microsoft platforms, offerings that leverage Microsoft products as the core technology, and methods that are founded on the IBM SI Method but customized to incorporate Microsoft-based solutions.

Practice capabilities include architecture, design, and implementation of Microsoft-based network operating systems, mail and messaging systems, server-based computing (thin client) systems, e-commerce solutions, supply chain solutions, portals, mobile/wireless solutions, and various other Web-based solutions.

The strategic objective of this Practice is to ensure that IBM Global Services can demonstrate to prospective clients and industry analysts that we possess sufficient skill, capability, capacity, and experience in this segment of the IT services market—a segment where we are rarely considered a viable alternative.

� e-business Infrastructure and Performance (E6)

Not relevant for AP and EMEA.

� e-commerce Solutions (E6)

See Web Selling Strategy Consulting (D6) or Web Selling Package Implementation (D7).


� Pervasive Computing Infrastructure Services (E8)

The Pervasive (mobile e-business) Practice provides customers with the capability of taking their e-business to the next step—mobile e-business. This practice has capabilities, methodologies, and software assets that can extend our clients’ businesses to reach their customers, suppliers, and employees anywhere and any time using wireless technology.

Practice capabilities include building a wireless/mobile strategy with the customer, developing plans and pilots to extend its business to mobile e-business and the ability to do a full wireless implementation using the experience and assets from numerous IBM engagements. The pervasive practice covers—but is not limited to—such key e-business areas as finance and securities, retail, travel, CRM, supply chain, ERP, and wireless portals.

Custom SI� Custom SI (F0)

This code is to be applied to the practitioners that have no specific practice code but rather general custom SI skills.


Appendix B. Business partners and solution developers

This appendix lists Web sites for business partners, alliances, and solution developers (ISVs) referenced in this redbook:

� Ariba

http://www.ariba.com

� AT&T

http://www.att.com

� Baan

http://www.baan.com

� BroadVision

http://www.broadvision.com

� Castek Software Factory

http://www.castek.com

� CBS Integrated Solutions (Corebank)

http://www.cbs-solutions.com.au

B


� ChannelPoint

http://www.channelpoint.com/

� CrossWorlds Software

http://www.crossworlds.com/

� Dassault Systemes (CATIA, ENOVIA)

http://www.dsweb.com/

� E.piphany

http://www.epiphany.com/

� EDGE Software Services

http://www.edgeservices.com

� Entity Group Ltd

http://www.entity.co.uk

� Ericsson Telecom

http://www.ericsson.com/

� Evoke Software

http://www.evokesoft.com

� Evolutionary Technologies International (ETI)

http://www.eti.com

� Extricity

http://www.extricity.com

� Financial Fusion

http://www.financialfusion.com/

� Fiserv

http://WWW.FISERV.COM/

� Gartner e-Metrics

http://www4.gartner.com/Init

� HPS (HCL Perot Systems)

http://www.hclperot.com/

� i2 Technologies

http://www.i2.com

� Indus International

http://www.indusinternational.com


� JD Edwards

http://www.jdedwards.com

� IRIS Integrated Risk Management

http://www.iris.ch

� Kana Communications

http://www.kana.com

� Lawson Software

http://www.lawson.com

� M&I Eastpoint

http://www.eastpoint.com/

� Manugistics Inc

http://www.manugistics.com

� MicroStrategy

http://www.microstrategy.com/

� Mincom Ltd

http://www.mincom.com

� MRO Software (formerly PSDI)

http://www.mro.com

� Onyx Software

http://www.onyx.com

� Oracle

http://www.oracle.com/

� PeopleSoft

www.peoplesoft.com

� PSDI (now MRO Software)

http://www.mro.com

� Qwest Communications

www.qwest.net

� Retek

http://www.retek.com

� S1 Corporation

http://www.s1.com

Appendix B. Business partners and solution developers 269

� Sanchez Computer Associates

http://www.sanchez.com

� SAP AG

http://www.sap.com

� SAS Institute

http://www.sas.com

� Siebel Systems

http://www.siebel.com

� SynQuest

http://www.synquest.com

� Tibco Software

http://www.tibco.com

� Trilogy Development Group

http://www.trilogy.com

� UUNet Technologies

http://www.uu.net/

� Vality Technology

http://www.vality.com

� Vignette

http://www.vignette.com/

� Vitria Technology

http://www.vitria.com

� Xchange

http://www.xchange.com

� Zeus Technology

http://www.zeustech.net


Related publications

The material listed in this section is considered particularly suitable for a more detailed discussion of the topics covered in this redbook.

Referenced Web sitesThese Web sites are relevant as further information sources:

� Redbook home page:

http://w3.itso.ibm.com/

� Industry Roadmap Navigator:

http://w3-3.ibm.com/services/srm/html/mainnavigator.html

� FinNet (FSS home page):

http://w3-1.ibm.com/industries/financialservices/finsect.nsf

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272 Leveraging Customer Centricity in the Financial Services Sector272 Leveraging Customer Centricity in the Financial Services Sector

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Glossary

access point. The method by which people, employers, and service providers access computer systems. Can include branch offices, telephones, the Web, e-mail, and regular mail.

adaptable enterprise infrastructure domain. The workstream of solutions which enables the client to design, develop, deploy, and operate the technology required for performance of business process automation. New business models require that all technology infrastructure be adaptable to changing business needs.

Application Service Provider. A business organization that offers software application capabilities to its customers from centralized data centers via wide area networks (WANs), including the Internet. ASPs represent a form of outsourcing, in that their customers are not required to buy the software.

bank assurers. Banks that offer insurance services

business architecture. A high-level process view of the client’s enterprise. Generic for the industry unless specifically modified for this client.

business case. A financial model of the business value and costs associated with a client proposal.

business intelligence. Tools, processes, and data that provide business functions in areas such as policy analysis, management reporting, and data warehousing.

© Copyright IBM Corp. 2001

business issue. Something which is inhibiting the client form achieving its strategic intent or realizing a required business capability.

business process domain. The workstream of solutions which enables the client to design and implement improvements to business processes necessary to execute the customer strategy.

channel. A touchpoint (i.e., a method of accessing, communicating, and transacting with a company); examples are through the Internet, an agent, direct mail, and face-to-face

channel management. The process of managing the methods by which communications are made to people, employers, and service providers.

client value proposition. The cumulative effect of scope of value across the features proposed to this client.

COBOL. The first widely-used high-level programming language for business applications. Many payroll, accounting, and other business application programs written in COBOL over the past 35 years are still in use, and it is possible that there are more existing lines of programming code in COBOL than in any other programming language. While the language has been updated over the years, it is generally perceived as out of date, and COBOL programs are generally viewed as legacy applications.

275

cookie. Information that a Web site puts on your hard disk so that it can remember something about you at a later time. More technically, it is information for future use that is stored by the server on the client side of a client/server communication. Typically, a cookie records your preferences when using a particular site. Using the Web's Hypertext Transfer Protocol (HTTP), each request for a Web page is independent of all other requests. For this reason, the Web page server has no memory of what pages it has sent to a user previously or anything about your previous visits. A cookie is a mechanism that allows the server to store its own information about a user on the user's own computer.

current state. A characterization of the client’s business before any Customer Loyalty scenarios have been performed.

customer acquisition. Acquiring a customer you did not previously have. Programs designed to prospect for new customers. Programs can be based on more or less-refined customer segmentation criteria and targeted to specific or broad audiences.

customer development. Cross-selling and up-selling to a customer already in your book of business. Market research to identify distinct criteria which drive customer wants and needs, and data mining to segment customers into buyer groups based on how they relate to the organization’s value propositions. Segmentation criteria include demographics lifestyle, psycho graphics, etc.

customer lifetime value. Profiting from transactions over the life cycle of the relationship with the customer. Programs and services designed to increase wallet share of existing customers.

Customer Loyalty. An enterprise’s activities to derive value through customer centricity.

customer retention. Holding the customer you have in your book of business longer, with the first objective being a greater period of time to profit from its activity after amortization of acquisition costs. Programs and services designed to increase longevity of existing customer relationships. Requires knowledge of customer preferences and behaviors which drive long-term relationships with the organization. Process to identify real and perceived customer requirements. Wants and needs are classified into basic requirements, satisfiers, and differentiators.

customer strategy domain. The workstream of solutions which enables the client to develop the Customer Loyalty strategies required at each phase of strategic intent.

customer value proposition. IBM has models and techniques for estimating the value to the business of creating a set of customer-centric capabilities. These business models use industry- and client-specific data to model the effect of the fundamental value drivers.

data mart. A repository of data gathered from operational data and other sources that is designed to serve a particular community of knowledge workers. In scope, the data can derive from an enterprise-wide database or data warehouse, or be more specialized. The emphasis of a data mart is on meeting the specific demands of a particular group of knowledge users in terms of analysis, content, presentation, and ease-of-use. Users of a data mart can expect to have data presented in terms that are familiar.

In practice, the terms data mart and data warehouse each tend to imply the presence of the other in some form. However, most writers using the term seem to agree that the design


of a data mart tends to start from an analysis of user needs, and that a data warehouse tends to start from an analysis of what data already exists and how it can be collected in such a way that the data can later be used. A data warehouse is a central aggregation of data which can be distributed physically. A data mart is a data repository that can derive from a data warehouse or not, and that emphasizes ease of access and usability for a particular designed purpose. In general, a data warehouse tends to be a strategic but somewhat unfinished concept, whereas a data mart tends to be tactical and aimed at meeting an immediate need.

data mining. The analysis of data for relationships that have not previously been discovered. For example, the sales records for a particular brand of tennis racket might, if sufficiently analyzed and related to other market data, reveal a seasonal correlation with the purchase by the same parties of golf equipment.

Data mining results include:

� Associations, or when one event can be correlated to another event (beer purchasers buy peanuts a certain percentage of the time)

� Sequences, or one event leading to another later event (a rug purchase followed by a purchase of curtains)

� Classification, or the recognition of patterns and a resulting new organization of data (for example, profiles of customers who make purchases)

� Clustering, or finding and visualizing groups of facts not previously known

� Forecasting, or simply discovering patterns in the data that can lead to predictions about the future

The data warehouse concept is gaining acceptance in part because of the possibility of fruitful data mining.

data warehouse. See data mart.

deliverable. The concluding product of a feature. Described in the Statement of Work signed by the client. Should also be a GS Methods-compliant work product.

desired state. A characterization of the client’s business after all Customer Loyalty scenarios have been performed.

disintermediation. The decline of middlemen companies that today operate between the buyer and maker of goods. Pundits predict this will happen with the use of commerce on the Internet. For example: the insurance, mortgage, auto, news, delivery, and stock brokerage industries might change dramatically over the next few years. The Internet allows many industries such as these to do business directly with their customers.

e-business. The process of conducting business across the Web.

enabling transition opportunity. A phase of infrastructure development which can enable the required business capability.

enabling workstreams. A set of solutions across the phases of strategic intent which fit into a domain of enabling infrastructure. Similar practices or skill sets usually apply to the solutions in a domain and its workstream.

engagement model. The package of solutions and/or features a practice wishes to perform under one Statement of Work. Should have GS Methods-compliant methodology in its Intellectual Capital management system.

Glossary 277

enterprise resource planning. The business processes that are required to run a business. This is the name for the types of software packages that provide this function.

explicit knowledge. Leveraging knowledge through software to form collaberative solutions.

extranet. A private network that uses the Internet protocol and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. It has also been described as a “state of mind” in which the Internet is perceived as a way to do business with other companies as well as to sell products to customers. The same benefits that HTML, Hypertext Transfer Protocol (HTTP), Simple Mail Transfer Protocol (SMTP), and other Internet technologies have brought to the Internet and to corporate intranets now seem designed to accelerate business between businesses.

An extranet requires security and privacy. These require firewall server management, the issuance and use of digital certificate or similar means of user authentication, encryption of messages, and the use of virtual private networks (VPN) that tunnel through the public network.

Companies can use an extranet to:

� Exchange large volumes of data using Electronic Data Interchange (EDI)

� Share product catalogs exclusively with wholesalers or those “in the trade”

� Collaborate with other companies on joint development efforts

� Jointly develop and use training programs with other companies

� Provide or access services provided by one company to a group of other companies, such as an online banking application managed by one company on behalf of affiliated banks

� Share news of common interest exclusively with partner companies

feature. The smallest GS Methods-compliant element that IBM will sell; must have at least one deliverable, though more can be associated.

governance domain. The workstream of solutions which enables the client to manage the business and customer strategies associated with Customer Loyalty.

hot swap. The replacement of a hard drive, CD-ROM drive, power supply, or other device with a similar device while the computer system using it remains in operation. The replacement can be because of a device failure or, for storage devices, to substitute other data.

Hot swapping works by providing a rack or enclosure for the device that provides an appearance to the computer's bus or I/O controller that the device is still there while it's being removed and replaced with another device. A hot swap arrangement is sometimes provided where multiple devices are shared on a local area network. Hot swap arrangements are sold for both Small Computer System Interface (SCSI) and Integrated Drive Electronics (IDE) hard drives. Hot swap versions of a redundant array of independent devices are also available.

ISV strategy. Which ISVs that IBM recommends for automation of elements in the


business and technical architecture. Also how IBM positions these in a larger architecture.

kiosk. A small physical structure (often including a computer and a display screen) that displays information for people passing by. Kiosks are common near the entrances of shopping malls in North America where they provide shoppers with directions. Kiosks are also used at trade shows and professional conferences.

More sophisticated kiosks let users interact and include touch screens, sound, and motion video. A number of companies specialize in creating multimedia kiosks. A simple kiosk can be created using HTML pages and graphics, setting the typesize large enough to attract people from a short distance, and removing the Web browser's tool bar so that the display screen is effectively in “kiosk mode.” The presentation can be designed to simply loop through a series of pages or to allow user interaction and exploration.

knowledge networks/ICM. Provides the detailed methodology and engagement performance tools for each feature. Provides examples of work products and deliverables. Also contains proprietary information

legacy application. In information technology, legacy applications and data are those that have been inherited from languages, platforms, and techniques earlier than current technology. Most enterprises that use computers have legacy applications and databases that serve critical business needs. Typically, the challenge is to keep the legacy application running while converting it to newer, more efficient code that makes use of new technology and programmer skills. In the past, much programming has been written for specific manufacturers' operating systems. Currently, many companies are migrating their

legacy applications to new programming languages and operating systems that follow open or standard programming interfaces. Theoretically, this will make it easier in the future to update applications without having to rewrite them entirely and will allow a company to use its applications on any manufacturer's operating system.

In addition to moving to new languages, enterprises are redistributing the locations of applications and data. In general, legacy applications have to continue to run on the platforms they were developed for. Typically, new development environments account for the need to continue to support legacy applications and data. With many new tools, legacy databases can be accessed by newer programs.

m-commerce. Mobile commerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce—which is based on the Wireless Application Protocol (WAP)—has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States.

metadata. Standard Generalized Markup Language (SGML) defines rules for how a document can be described in terms of its logical structure (headings, paragraphs or idea units, etc.). SGML is often referred to as a metalanguage because it provides a “language for how to describe a language.” A specific use of SGML is called a document type definition (DTD). This spells out exactly what the allowable language is. A DTD is thus

Glossary 279

a metalanguage for a certain type of document. Hypertext Markup Language (HTML) is an example of a document type definition. HTML defines the set of HTML tags that any Web page can contain.

Extensible Markup Language (XML), which is comparable to SGML and modelled on it, describes how to describe a collection of data. It is sometimes referred to as metadata. A specific XML definition defines a set of tags for describing a Web channel.

In the case of SGML and XML, “meta” connotes “underlying definition” or set of rules.

metrics. In software development, a metric is the measurement of a particular characteristic of a program's performance or efficiency. In network routing, it is a measure used in calculating the next host to route a packet to. A metric is sometimes used directly and sometimes as an element in an algorithm. In programming, a benchmark includes metrics.

Navigator. An IBM tool that identifies client issues and presents solutions within transition opportunities that address those issues. Presents the features and their deliverables, which compose solutions. Provides sales collateral material for each opportunity. Used by both the initial proposal and roadmap teams.

object-oriented programming. A revolutionary concept that changed the rules in computer program development, object-oriented programming (OOP) is organized around “objects” rather than “actions”—data rather than logic. Historically, a program has been viewed as a logical procedure that takes input data, processes it, and produces output data. The programming challenge was seen as how to write the logic, not how to define the data. Object-oriented

programming takes the view that what we really care about are the objects we want to manipulate rather than the logic required to manipulate them.

C++ and Java are the most popular object- oriented languages today.

Online Financial Services. The application of online technologies, processes, organizational structures, and business models to improve efficiency and effective delivery of financial services—including e-insurance, the new wealth bank, and the mobile Internet.

organizational collaboration domain. The workstream of solutions which enables the client to adjust and improve the ability of its organization to collaborate in the execution of business processes.

PDA. Personal digital assistant, is a term for any small mobile hand-held device that provides computing and information storage and retrieval capabilities for personal or business use—often for keeping schedule calendars and address book information handy. The term handheld is a synonym. Many people use the name of one of the popular PDA products as a generic term, especially PalmPilot.

Most PDAs have a small keyboard. Some PDAs have an electronically sensitive pad on which handwriting can be received. Typical uses include schedule and address book storage and retrieval and note-entering. However, many applications have been written for PDAs. Increasingly, PDAs are combined with telephones and paging systems.

pervasive computing. The use of a computing infrastructure that supports information appliances from which users can access a broad range of network-based


services, including Internet-based e-commerce services. Pervasive computing thus provides users with the ability to conveniently access and take action on information.

phase. The progression of a solution feature performed to IBM Global Services methodology. These phases are:

– Design

– Develop

– Deploy

– Operate

portal. A term, generally synonymous with gateway for a World Wide Web site that is or proposes to be a major starting site for users when they get connected to the Web, or that users tend to visit as an anchor site. There are general portals and specialized or niche portals. Some major general portals include Yahoo, Excite, Netscape, Lycos, CNET, Microsoft Network, and America Online. Examples of niche portals include Fool.com (for investors) and SearchNT.com (for Windows NT administrators).

A number of large access providers offer portals to the Web for their own users. Most portals have adopted the Yahoo style of content categories with a text-intensive, faster loading page that visitors will find easy to use and return to. Companies with portal sites have attracted much stock market investor interest because portals are viewed as able to command large audiences and numbers of advertising viewers.

Typical services offered by portal sites include a directory of Web sites, a facility to search for other sites, news, weather information, e-mail, stock quotes, phone and map information, and sometimes a community forum. Excite is among the first portals to offer users the ability

to create a site that is personalized for individual interests.

The term portal space is used to mean the total number of major sites competing to be one of the portals.

proprietary system. In information technology, proprietary describes a technology or product that is owned exclusively by a single company that carefully guards knowledge about the technology or the product's inner workings. Some proprietary products can only function properly—if at all— when used with other products owned by the same company.

Redbook. Describes a Big Play and its transition opportunities for the sales team.

redundancy. In information technology, the term redundant has several usages:

1. Redundant describes computer or network system components—such as fans, hard disk drives, servers, operating systems, switches, and telecommunication links— that are installed to back up primary resources in case they fail. A well-known example of a redundant system is the redundant array of independent disks.

2. Redundant information is unneeded or duplicated information.

3. Redundant bits are extra binary digits that are generated and transferred along with a data transfer to ensure that no bits were lost during the data transfer.

Redundancy is the quality of a system, an item of information, or a bit that is redundant.

relational database. A collection of data items organized as a set of formally-described tables from which data can be accessed or

Glossary 281

reassembled in many different ways without having to reorganize the database tables.

The standard user and application program interface to a relational database is the structured query language (SQL). SQL statements are used both for interactive queries for information from a relational database and for gathering data for reports.

In addition to being relatively easy to create and access, a relational database has the important advantage of being easy to extend. After the original database creation, a new data category can be added without requiring that all existing applications be modified.

required business capability. The fundamental high-level capability the client must have to realize the strategic intent of this phase.

resource optimization. Managing the costs per transaction in sales and service to meet the needs of the customer in the most profitable manner. Contact Center Automation, Sales Force Automation, Channel Management, Skills Based Management, etc. Data mining to allocate organizational resources (people, processes, technology etc.) based on anticipated long-term profitability of finely-defined customer segments.

scope of value. The quantifiable business benefit which the client will derive from implementing a specific transition opportunity. The value statements which describe the benefits to the client from a transition opportunity. Should be structured for modeling in a business case.

server farm. A group of computers acting as common server and housed together in a single location. A server farm is sometimes

called a server cluster. A Web server farm is either:

1. A Web site that has more than one server

2. An Internet service provider (ISP) that provides Web hosting services using multiple servers.

In a business network, a server farm might perform such services as providing centralized access control, file access, printer sharing, and backup for workstation users. The servers might have individual operating systems or a shared operating system, and can also be set up to provide load balancing when there are many server requests. In a server farm, if one server fails, another can act as backup.

On the Internet, a Web server farm can refer to a Web site that uses two or more servers to handle user requests. Typically, serving user requests for the files (pages) of a Web site can be handled by a single server. However, larger Web sites can require multiple servers.

Web farm is a term that is also simply used to mean a business that performs Web site hosting on multiple servers. Some Web farms allow you to put your own server on their site, a service known as co-location.

Solution. One proposed element within an existing domain that is associated with a phase or required capability. IBM can perform this solution for the client.

Solution component. A feature, asset, or competency which is brought to bear as part of an engagement Solution.

stage. Refers to Customer Loyalty achievement at the level of strategic intent. If the term phase were used, the meaning would be identical. IBM will use the term phase in GS Methods documentation of the methodology for performance of a specific Solution feature.


strategic intent. The desired business results for the client at a phase of maturity towards the desired state. A business case can be associated with this.

streaming media. Streaming video is a sequence of moving images that are sent in compressed form over the Internet and displayed by the viewer as they arrive. Streaming media is streaming video with sound. With streaming video or streaming media, a Web user does not have to wait to download a large file before seeing the video or hearing the sound. Instead, the media is sent in a continuous stream and is played as it arrives. The user needs a player, which is a special program that uncompresses and sends video data to the display and audio data to speakers. A player can be either an integral part of a browser or downloaded from the software maker's Web site.

tacit knowledge. Passing on best practices and mentoring by recording personal business experiences.

technical architecture. A high-level view of the technology required to enable Customer Loyalty. Generic for the industry unless specifically modified for this client.

telephony. The technology associated with the electronic transmission of voice, fax, or other information between distant parties using systems historically associated with the telephone.

thin client. A low-cost, centrally-managed computer devoid of CD-ROM players, diskette drives, and expansion slots. The term derives from the fact that small computers in networks tend to be clients and not servers. Since the idea is to limit the capabilities of these computers to only essential applications, they tend to be purchased and remain “thin” in terms of the client applications they include.

The term thin client seems to be used as a synonym for both the NetPC and the network computer (NC), which are somewhat different concepts. The Net PC is based on Intel microprocessors and Windows software (Intel was a leader in defining the Net PC specification). The network computer (NC) is a concept backed by Oracle and Sun Microsystems that might or might not use Intel microprocessors and uses a Java-based operating system. The increased numbers of thin clients in today's workplace and educational facilities reflects a corporate and institutional need for low-cost computers dedicated to Internet use.

time & risk. Profiting from competitive time to market with desired solutions while minimizing enterprise risk during change.

transition opportunity. A business opportunity that describes the transition from a customer issue or concern to an IBM solution.

trusted adviser. “IBM’s customers tell us two important things that help me in deciding how to run my division. They know that e-business is changing the fundamentals in their world. But they also know that they must meet their customers’ expectations of a 24x7 environment. They want a rock-solid, 24x7 solution from a technology adviser they can trust. That’s the goal I set for myself—to be that trusted adviser.”—Linda Sanford, Sr VP & Group Executive, Storage Systems Group.

voice-over IP. A set of facilities for managing the delivery of voice information using the Internet Protocol (IP). In general, this means sending voice information in digital form in discrete packets rather than in the traditional circuit-committed protocols of the public switched telephone network (PSTN). A major advantage of VoIP and Internet telephony is

Glossary 283

that it avoids the tolls charged by ordinary telephone service.

In addition to IP, VoIP uses the real-time protocol (RTP) to help ensure that packets get delivered in a timely way. Using public networks, it is currently difficult to guarantee Quality of Service (QoS). Better service is possible with private networks managed by an enterprise or by an Internet telephony service provider (ITSP).

Using VoIP, an enterprise positions a “VoIP device” at a gateway. The gateway receives packetized voice transmissions from users within the company and then routes them to other parts of its intranet (local area or wide area network) or, using a T-carrier system or e-carrier interface, sends them over the public switched telephone network.

Wealth Management. The aggregation of financial services that are targeted to specific, valuable customer segments and delivered through appropriate channels to maximize value to the enterprise

work product. The conclusion of a task or set of tasks defined in GS Methods.


acronyms

AD Application development

AIX Advanced Interactive Executive (IBM’s implementation of the UNIX operating system)

AMS Application Management Services

AOL America Online

AP Asia-Pacific

API Application programming interface

ASP Application service provider

ATM Automated teller machine

B2B Business-to-business

B2C Business-to-consumer

BCC WebSphere Business Components Composer

BDW Banking Data Warehouse

BDWM Banking Data Warehouse Model

BI Business intelligence

BIBS Business issues/business solutions

BIS Business Innovation Services

BPP Business process procedures

BPR Business Processes Reengineering

CAGR Compound annual growth rate

CBP Critical business process

CCA Contact Center Assessment

CD Certificate of deposit

Abbreviations and


CeFS Financial Fusion Consumer e-Finance Suite

CEO Chief executive officer

CICS Customer Information Control system

CIIS Client Information Integration System

CLM Customer Loyalty Management

CMA Customer Management Assessment

CMAT Customer Management Assessment Tool

CMO Chief marketing officer

COBOL Common Business Oriented Language

CPO Customer Prospect Optimizer

CRM Customer relationship management

CTI Computer-telephony integration

CVI Customer value index

CVM Customer Value Management

CxOs Chief “x” officers

DB/DC Database/data communication

DB2 An IBM relational database management system

DCE Distributed computing environment

DeB Dynamic e-business

DNIS Dialed Number Identification Service

DSS Data Set Services

285

E2E Exchange-to-exchange (a form of B2B)

EAD Enterprise Application Development

EAI Enterprise Application Integration

EAM Enterprise Asset Management

eBS e-business

ECA Enterprise Customer Analytics

EJB Enterprise Java Bean

EMEA Europe, the Middle East, and Africa

EMU European Monetary Union

EPMS Entity Profiling Management System

EPS Enterprise Performance Suite

eRM Enterprise relationship management

ERM Entity Relationship Model

ERP Enterprise Resource Planning

ESMT Enterprise Service for Microsoft Technology

ETI Evolutionary Technologies International

FAMS IBM Fraud and Abuse Management System

FSDM Financial Services Data Model

FSFM Financial Services Function Model

FSOM Financial Services Object Model

FSP Financial service provider

FSS Financial Services Sector

FSWM Financial Services Workflow Model

GBT Global Brand Table

GIC Global information center

GPRS General packet radio switching

HPS HCL Perot Systems

HTML Hypertext Markup Language

IAA Insurance Application Architecture

ICAP Intellectual capital

ICC The SAS International Competency Center

IBT Industry based template

IDE Integrated data environment

iDTV Interactive digital TV

IFW Financial Services Information Framework

IGS IBM Global Services

IIW Insurance Information Warehouse

IKM Institute for Knowledge Management

IM Information management

IMS IBM’s Information Management System (IMS/VS—a mainframe DB/DC product)

IP Internet protocol

ISV Independent software vendor (aka Solution Developer)

IT Information technology

ITS Information Technology Services

ITSO International Technical Support Organization

IVR Interactive voice response (VRU)

J2EE Java 2 Enterprise Edition

JDBC Java Database Connectivity

JSP Java Server Page

KM Knowledge management

286 Leveraging Customer-Centricity in the Financial Services Sector

LAN Local area network

LOA Letter of authority

LOB Line of business

LOI Letter of intent

M&A Mergers and acquisitions

MeB Mobile e-business

MIS Management information system

MQFSE Message Queueing/Financial Services Edition (IBM MQSeries Financial Services Edition)

MS MicroStrategy

NCC netCallCentre

NOS Network operating system

NT Microsoft Windows NT

OAD Organization analysis and design

OCM Organization change management

OE Operating environment

OEM Original equipment manufacturer

OFS Online Financial Services

OFX ObjectFX

OLAP Online analytical process

OLP Operational level processes

OLTP Online transaction processing

OM Opportunity management

OO Object oriented

P&C Property and casualty

PDA Personal digital assistant

PEBT Package Enabled Business Transformation

PMI Project Management Institute

QA Quality Assurance

RAMS Rapid Analysis Measurement System

RDBMS Relational database management system

ROE Return on equity

ROI Return on investment

ROWI Return on Web investment

S/390 A family of IBM enterprise servers

S1 An IBM business partner providing global Internet solutions for financial organizations

SBC Siebel Baseline Configuration

SSM Supply chain management

SFA Sales Force Automation

SI Systems integration

SLA Service level agreement

SSM Signature Selling Method

SOHO Small office/home office

SOW Statement of Work

UDB Universal Data Base

UPA Underwriting Profitability Analysis

URL Uniform resource locator

VA Virtual address

VMOS Vision, mission, objectives, and strategy

VRU Voice response unit

WAN Wide area network

WAP Wireless application protocol

XML Extensible Markup Language

Abbreviations and acronyms 287

288 Leveraging Customer-Centricity in the Financial Services Sector

Index

Numerics24x7 2, 110, 121, 149, 163, 247

Aa la carte services 120access

channel 47, 118information 245point 3, 116, 118

accountaggregation 148information 195management 247records 191

accounting processes 256acquisitions 9, 19activity flow 135actuarial 82actuary 213ad hoc

discovery 69engagement 141partnership 15query 28

AD solutions 264adapter 163adaptive marketing 263advanced mining model 165advertising campaign 76advice and guidance 23, 27, 28, 30, 31, 39advice-based customer interaction 42, 48, 246advised account 10advisory service 48affinity portal 37after-market initiatives 256agency management 10agent performance 131agent support 247aggregation model 255aggregation services 195AIX 148, 166alert services 247align the business to customer wants and needs


205America 10, 36AMS 260An Industry @ Risk 241analysis data mart 147analytical

processes 145software 69, 70, 72tools 34

annuity 72AOL 15AP 219, 265API 164application

adapter 162, 265consulting 261data requirements 152demonstrators and analysis tools 160deployment 164development 121, 164, 182hosting 258integration 54, 64interfaces 218performance 164service provider 120, 156services 121software 155upgrade support 203, 259, 260, 261, 262, 263

Application Development Suite 154Application Framework for e-business 166Application Management Services 256, 260Ariba 258, 267

Buyer 258Dynamic Trade 258Marketplace 258

Asia 36ASP 186, 189, 226

hosting services 157asset

acquisition 30and liability management 139base 38, 163

assimilated results 164

289

asynchronous response 162AT&T 122, 267ATM 47auctions 201, 263

networks 201audit 141Australia 12, 167auto insurance 245auto purchases 10availability 110, 121, 187available market 181Axio 145

XML 145, 146

BB2B 15, 16, 36, 47, 113, 120, 138, 163B2BI 265B2C 113, 138, 163Baan 267

Package Implementation 260baby boomer 10back office 2

administration 185back-end

adapters 225application 88, 89connectivity 121integration 88, 225system 162, 163, 225, 246technologies 9

backup and recovery 121backup procedures 119balanced business scorecard 262bandwidth-on-demand 122bank assurers 11bank deposits 11, 38Bank of America 203banking 2, 8, 11, 14, 31, 115, 149, 194, 227

customer interaction 62products and services 47

Banking Data Warehouse 61, 65, 70, 72, 74, 102, 147, 153banks 9, 11, 14, 18, 31, 114, 147, 151, 153, 194, 224base infrastructure reuse 220Baseline Client 207BDW 6, 61, 65, 70, 72, 74, 102, 147, 153

Database 102

Model 102BDWM 102Becoming Customer Centric 34, 87, 104behavior prediction 72, 164, 171best models 132best practices 10, 11, 13, 124, 127, 128, 129, 171, 205, 207, 210, 258, 260, 264BI 32, 39, 125, 137, 139, 165, 182, 196, 256BIBS 207Big Play 1, 21, 29, 32, 39, 41, 86, 222bill pay/transfer warehouse 148bill payment 148, 149, 150, 246bill presentment 148, 149, 150, 194, 246billing 27

fluctuations 186BIS 6, 247

consulting engagements 156practices 242

BlueCross/BlueShield 141bonds 11, 38

trading 132book of business 213, 243, 244Booz-Allen, Hamilton 62Boston 226BPP 207branch 47, 197

network 6officer 47personnel 204renewal 4, 32, 35scripting 205

brandarchitecture 77associations 179attributes 77, 106channel analysis 106definition 178identity 38, 77, 106image 178, 179management 178mapping 178measurement 178name 178or channel 35performance 178position 106, 173, 178, 179research 106strategy 106, 107, 179to customer connection definition 106


to customer value proposition 106valuator 178value 29

Brand Building Architecture 78, 172, 179Brand Valuation 78, 172, 178Branding Solutions 77, 106branding strategy 76Brazil 141BroadVision 167, 267broker/advisor 37brokerage 9, 14, 18, 36, 37, 194, 203, 246, 247brokers 31, 47, 204budget 69build or buy options 181building for scale 169business

analyst 146capabilities 21, 39case 46, 108, 221, 246climate 46components 206consulting 262continuity 73, 110, 119definitions 151design 257direction 257drivers 28flexibility 154focus groups 172functionality 88goals 168impact 261information 151intelligence 32, 44, 46, 115, 125, 196, 215, 226, 243interest areas 243issues 207, 218metrics and measurement 171model 7, 9, 13, 17, 19, 39, 45, 86, 134, 219, 257

reinvention 244news 149objectives 156, 221, 245operations 26, 28opportunities 15partners 6, 15, 108, 159, 161, 165, 166, 167, 182, 189, 190, 194, 202, 204, 215, 222performance 204

process improvement 258, 263

plan 46, 181practice 202problems 164, 242processes 1, 8, 11, 12, 15, 16, 17, 34, 45, 48, 60, 74, 77, 86, 87, 111, 154, 156, 158, 163, 184, 190, 205, 206, 207, 219, 221, 256

impact 218management 265procedures 207re-engineering 43, 44, 46, 112

recovery services 121relationship life cycle 15reporting 262requirements 257retention 213risks 261rules 144, 164, 182

engine 162strategy 126, 156, 222system 184

infrastructure 158transformation consulting 261value 256

Business Case Development 61, 63, 65, 70, 72, 74, 84, 87, 108Business Continuity and Recovery 63, 74, 89, 110Business Intelligence Suite 153Business Process Organizational Model 87, 112, 245Business Processes Suite 153Business Solutions 103, 207business-oriented help desk 155Buy and Supply 255, 258buying

behaviors 30habits 243history 197

CC programs 144calculating lifetime profitability by customer 244call

center 3, 43, 60, 64, 67, 74, 89, 110, 111, 186, 202, 204, 247management 202routing 188volume 88

callbacks (as an alternative to waiting in a queue)

Index 291

188CallPath 166campaign

code 60process 200success 131

Campaign Management 44, 46, 59, 69, 84, 103, 137, 159, 160, 199, 204, 226, 227, 244, 262Canada 11, 36, 219Canadian banks 186capacity planning 118, 121capital assets 259Capital Markets 132, 203, 262career development 118cash management 15, 149Castek 241, 246, 267catalog data 224cataloged results 165CATIA 261, 268CBPs 153CBS Integrated Solutions 262, 267CCA 65, 79, 82, 118CD 11, 38CeFS 4.0 63, 75, 89, 148cell phones 11centers of competency 241change leadership 257Change Management 46, 112, 143, 255, 257Change Toolkit 258channel 6, 7, 10, 12, 18, 28

enablement 37optimization 138strategy 62, 124

Channel Management 48, 62, 85, 118, 247ChannelPoint 6, 63, 89, 113, 268Charles Schwab & Co 203Charlotte 163Chase Manhattan 203checkout 219chess 132chief "x" officers 247Chinese 167churn analysis 199CICS 224CIIS 6, 61, 65, 72, 79, 84, 89, 115claims 204

analysis 159expenses 214processes 2

reporting 246clearing and depository institutions 262click stream data capture 217client

behavior 217experience 242influence domain 247management system 115opportunity 47value 206

Client Information Integration System 61, 65, 72, 79, 84, 89, 115client server applications 141client server architecture 165CLM 124close ratios 244closed-loop

customer relationship process 138data flow 60feedback process 243marketing concepts 44, 46marketing process 226, 227method 22process 30

CMA 61, 87, 127CMAT 61, 87, 127, 129

Database 127COBOL 144C-officers 171cold and impersonal customer interactions 245collaboration 12, 26, 27

selling 190technologies 264

co-location facilities 156co-location services 120commerce site content management 263commercial banks 9, 11commodity production 10commodity trading 132Common Adapter Factory 163common customer experience 63common respository 205Common Transactional Protocols and Formats 70, 89, 117communication 257

challenges and opportunities 241channel 71, 166, 167, 204infrastructure 119model 225


Community Based Services 169Community Knowledge Portal 169company

information 204objectives 222performance 175positioning 60, 245

compensation 118competency centers 242competition 169competitive

advantage 19, 26, 42, 46, 171, 189brands 106, 179edge 168, 216forces 247pricing 213rules and rates 213

Competitive Intelligence 169complete

client view 243customer relationship 45customer view 42, 43financial picture 195

compliance 48Component Broker 224component-based development 225component-based software system 225Computer Telephony Integration 161, 187configuration

management 121support 203, 259, 260, 261, 262, 263tools 162

connected devices 205consistency 136consistent

and personalizedproduct and service delivery 42, 44, 243service 44, 205

branding 263consolidated financial information 195consulting practices 241consulting services 149, 215consumer

access 47banking 148content syndication 148focus groups 172location 46needs 9

contactcenter 6, 47, 74, 118, 119, 202, 204

strategy 118interaction flow 118point 23, 138response 23

Contact Center Assessment 65, 79, 82, 118Contact Center Web Enablement 161Contact Management 23, 27, 28, 30, 31, 46, 64, 79, 83, 118, 161content

creation 121distribution 121management 136, 168, 170, 218model 135, 153personalization 71presentation 205, 224provider 13

Content Hosting 70, 74, 120continuity and recovery management 111continuous-loop

activities 1, 22capability 32marketing, sales, and service 203relationship 22

Conversions and Data Rationalization 66cookie 72, 217core banking 246core business retention 175Corebank 262, 267Corebanking 262corporate

banking 15, 194culture 219data 145mission 135portal 168risk 82strategy 158wisdom 264

cost 247considerations 88efficiencies 13, 17reduction 2, 9, 221, 258savings 15, 222

CPO 61, 65, 130, 131, 160CRA 262create a complete view of the customer 204credit cards 11, 14, 36

Index 293

credit risk 183critical

IT infrastructures 110skills 211

gaps 211systems 110

Critical Business Processes 153CRM 28, 32, 39, 71, 104, 105, 115, 118, 124, 125, 129, 138, 139, 140, 143, 159, 182, 187, 189, 190, 196, 201, 203, 206, 210, 256, 258, 262, 266

applications 201e-business packaged solutions 263holistic approach 125implementation 263infrastructure 201operations assessment 263point solution approach 125projects 203skills and technologies 201touchpoint 207treatment 263

CRM Package Implementation 263CRM Solution Suite 159CRM Strategy Consulting 262cross-auction portals 201cross-border retail 219cross-IGS LOB contract signings 250crossing networks 262cross-sell 22, 29, 60, 115, 125, 138, 199, 201, 212, 214, 243Cross-Selling Awareness Training 122CrossWorlds 265, 268CTI 187, 188cultural change 129cultural preferences 224current

accounts 262brand position 178business context 134state 42

custody services 15custom developed business solutions 265Custom SI 266Custom Systems Integration 256Custom VRU Package 187customer

access and distribution channel 39, 162acquisition 25, 125, 171, 192, 205, 244analysis 227

analytics 31and business capabilities alignment 126attrition 164

analysis 102awareness 76base 130, 213, 246behavior 8, 44, 61, 69, 140, 176, 180, 226, 227benchmarking 127, 129buyer group 255buying patterns 255campaign 227care 148, 244centricity 1, 2, 7, 8, 9, 22, 23, 25, 28, 29, 32, 42, 104, 112, 117, 204communications 180

product 227consultation 205contact 64

point 115, 196data 11, 123, 213defined process/channel vision and action plan 126demographics 9development 25, 205eligibility 213expectations 9, 10, 175experience 76feedback 80information 115, 123, 137, 204, 212, 215, 243, 246

management 24, 43, 60, 69, 89system 138, 262

intelligence 104, 205interaction 1, 22, 28, 64, 166, 227knowledge 3, 9life cycle 25, 203

analysis 183lifetime 44

value model 200management 115, 118, 159

capability 127model 129

market segmentation 126migration 175navigation data 217needs 9orientation 30portfolio 31preference 71, 180


profiling 71, 72, 93, 103, 138, 175, 205, 217, 227profitability 24, 28, 44, 45, 102, 153, 174, 175, 196, 197prospect 199ranking 164relations 261relationship strategy across channels 137relationship-based selling propositions 19responses 227retention 2, 25, 28, 60, 159, 171, 172, 175, 192, 202, 214

campaign 199sales 202satisfaction 24, 118, 137, 139, 155, 172, 175, 176, 192, 206, 244, 245segment 45, 60, 69, 104, 171, 180, 199, 262selection 25service 9, 48, 60, 69, 88, 106, 114, 189, 190, 192, 202

rep productivity 244strategy 85

strategy 126, 161statement 191

support 121, 122center 244

switching behavior 176testimonials 246touchpoints 202, 203, 205, 263trends 227value 175

index 126values 179view 77visualization 165

Customer Data Management 126Customer File Design and Implementation 61, 65, 70, 72, 74, 79, 82, 84, 87, 89, 123Customer Focused Processes and Channels 87Customer Loyalty 2, 3, 4, 5, 7, 24, 25, 26, 31, 32, 34, 39, 46, 76, 108, 125, 137, 172, 174, 175, 176, 180, 185, 189, 214, 241

improvement program 108strategy 108, 118, 124

Customer Loyalty Management 81, 87, 124, 126Customer Loyalty Suite 87, 124Customer Management Assessment 61, 87, 127Customer Prospect Optimizer 61, 65, 130, 160Customer Relationship Management 32, 34, 60,

123, 125, 148, 166, 167, 169, 196, 243Customer Satisfaction, Loyalty, and Retention 78, 175Customer Segmentation and Scoring 243Customer Value Management 23, 24, 46, 118, 125, 244, 245, 246customer-centered

business model 12management strategy 126online services 11strategy 74

Customer-Centered Strategy and Roadmap 87, 124, 126customer-centric

application 158approach 45behavior 5business 26

architecture 89, 91model 9, 10, 19, 45, 46, 85

capability 32client 2, 6end-state 42enterprise 86financial institution 203in order to remain 211organization 9, 45process 31, 32, 112, 212, 225, 244project 3solution 26specialist 2view 24vision 85

customer-driven content 195customer-facing

process 26, 45processes aligned with customer and business wants and needs 42, 45, 244system 227

customer-focusedmission 245opportunity 177teams 244

Customer-Focused Processes and Channels 124, 126customization 203, 259, 260, 261, 262, 263customized service 48CVI 124, 126CVM 24, 124, 125

Index 295

CxOs 247cycle times 245

DDallas 163Dassault 261, 268data

accuracy 216acquisition 212aggregation 217, 243analysis 212, 215, 217analyst 146analytics 138audit 215availability 86capture 217, 263center 110, 121

facilities providers 120management 156operations 120

cleansing 43, 44, 46, 215conversion 66, 203, 259, 260, 261, 262, 263exchange 73extraction 43, 44, 46, 243filtering 132format 162, 164hub 140integration 212

hub 163management 144

investigation 216management 138, 158, 160, 245, 262mapping 225mart 60, 72, 84, 102, 136, 139, 153, 212mining 43, 44, 46, 115, 118, 130, 137, 141, 164, 165, 182, 183, 196, 199, 212, 213, 215

analytics 165standards 165

model 103, 151, 182, 262overload 180patterns 164profiling 146propagation tools and services 160purchased from external sources 213quality 43, 46, 86, 118, 145, 204, 215, 216query 182re-engineering 215, 216repository design and development 43, 44, 46,

60requirements 151scoring 164, 165source 118, 146standardization and matching software 215storage 118, 123, 263stores 137, 143traceability 160transformation 162, 225, 265typing 216validity 216variable relationships 196warehouse 60, 69, 84, 86, 102, 103, 115, 137, 139, 143, 153, 159, 160, 182, 196, 204, 212, 215, 243

Data Hosting/Outsourcing 156Data Mart Data Structures 102Data Mart Design and Implementation 69, 244Data Mining and Analytics Consulting and Imple-mentation 262Data Warehouse Consulting and Implementation 262database administration 121Datamonitor 62day trading 38DB2 102, 113, 164, 182, 196

Intelligent Miner Scoring Services 164Universal Database 148, 164, 166, 215

DCE 224DeB 15, 16decision

innovation network 169making 216support 132, 139, 153, 215

DecisionEdge 115, 130for Relationship Marketing 159, 213, 215

declining profit margins 9Deep Computing 132Deep Green 82, 132define business case 108defining new segments 243definition of business, management, and operation-al requirements 257delayed response 162delivery 206

capabilities 15channel 19, 86, 195, 241options 119processes 256


technologies 3, 9demographic

data 174, 199, 213, 227profile 72trends 10

deposit accounts 247, 262deregulation 9, 11, 130design and technology linkage 263desired behavior 61desired end-state 86, 87destination site 31Deutsche Bank 203devaluation 132development

costs 158strategy 245time 158

device ubiquity 11, 36diads 172Dialed Number Identification Service 188Digital Branding 46, 142digital strategy 77dimensional reporting 28DirectTalk for AIX 187direct-to-client information and services 47disaster recovery 110, 119, 149disclosures 12disintermediation 9disjointed channels 227disk space 121disseminated results 164distributed computing environment 110distributed objects 150distribution 180, 259, 260, 261

channels 18, 28, 114, 173, 179, 202costs 125model 225strategies 2, 114system 12

DNIS 188dot-com 120, 178, 204, 227, 256drill-down analysis 69DSS Agent 182duplicate opportunities 250dynamic data transformation and mapping 225Dynamic Personalization 71, 217dynamic transaction integration 225

EE.piphany 167, 268E2E 207EAD 264EAI 265EAM 259e-banking 3, 4, 32, 35, 148, 241e-branding 76, 77eBS 167e-business 3, 9, 10, 12, 13, 15, 16, 17, 21, 24, 31, 32, 35, 39, 41, 42, 46, 82, 88, 106, 110, 114, 120, 121, 134, 142, 145, 149, 155, 156, 163, 166, 167, 168, 173, 174, 181, 183, 184, 189, 190, 196, 201, 221, 222, 223, 225, 241, 245, 246, 256, 264, 265

application 158, 203, 204, 223architect 245case 221consulting 114data warehouse 204dependencies 110design model 257hosting 121, 122, 156Hosting Centers and Management Services 120infrastructure 166Infrastructure and Performance 265initiatives 134, 221, 257Integration 256, 264investment 221Management System 74, 81, 89, 134, 258model 134needs and priorities 241security 198sell-side initiative 221services 149

portfolio 120software 167Strategy 134, 222, 245

and Change 255, 257and Design 246, 255, 257

strategy consultants 222strategy roadmap 257transformation process 257transitions 241

ECA 61, 72, 137e-channel customer pathways definition 106e-channel implementation 106e-claims 10e-commerce 36, 113, 137, 138, 165, 167, 190,

Index 297

196, 218, 219, 223, 256engines 263revenue 164services 120Solutions 265

econometric modeling 172, 181economics 132

forces 247opportunity prioritization 258, 263

e-CRM 183, 226, 227metrics 226

e-culture 258EDGE reports 250EDGE Software Services 268education and training 118, 258e-enable 9, 35, 39, 119e-enabled interaction at multiple customer touch-points 42, 46, 245e-enterprise 113e-exchange 9efficiency 258e-finance 9, 148, 194eFinance Experience 194e-Governance 135e-insurance 3, 4, 7, 9, 32, 35, 114, 241e-invest 3, 241EJB 224electronic

bill payment 3, 246bill presentment 246business model 29contract 15, 17crossing networks 262registries 15

e-mail 47, 60, 72, 83, 167, 172, 204tools 150

e-market 9, 114, 255, 263projects 258

e-marketing 190e-marketplace 104, 113, 120

hosting services 157EMEA 11, 12, 167, 265employee retention 211employment 30EMU 261enable advice-based customer interactions 205enabling technology 9, 24, 34enabling transition opportunities 204Encina 224

end-state 42, 60, 126end-to-end

business architecture 26capability 43e-business Solution 149e-business transformation 134security 162service capabilities 241transaction processing 113Web-based financial services 150

engagement type 1engagement work product reuse 242English 167ENOVIA 261, 268enterprise

asset management 259client file 28information 169model 154relationship management 166reuse 151value 45view 227

Enterprise ApplicationDevelopment 256, 264Integration 256, 265Systems 256

Enterprise Class Hosting 149Enterprise Customer Analytics 61, 72, 137Enterprise Java Beans 223Enterprise Performance Suite 87, 139Enterprise Resources 256, 258, 259Enterprise Service for Microsoft Technology 265Entity Group Ltd 268entity identification 216entity integrity 216Entity Profiling Management System 81, 141Entity Relationship Model 151entry point 42environmental analysis 134environmental forces 247EPMS 81, 141e-procurement 255, 258

software 259EPS 87, 139e-purchasing 192equal billing plan 186equities 38

trading 132


Ericsson 6, 268ERM 151eRM 166, 167ERP 266

applications 143environment 260integration 263investment 260portfolio 260solution 260

e-service 190eSmartScript 205ESMT 265e-Start 63, 74, 89, 142ETI 143, 268ETI•EXTRACT® 70, 74, 79, 143ETL 262euro 1, 8, 261EuroPath 261Europe 9, 10, 11, 36, 38, 219European Monetary Union Transformation 261event mediator 10Evoke 6, 70, 75, 145

Axio product suite 145CRM Integration and Product Offerings 79Repository 145, 146Software 145, 268

Evolutionary Technologies International 143, 268Exchange Applications 226Exchange Platform technology 114exchanges 201, 262execution logistics 227expanding consumer access using customer value management 245experience 170experimental physics 132expert delphi 172expert knowledge 132explicit knowledge 168, 169extranet 47, 88extreme behavior predictive models 132extreme up/down forecasts 132Extricity 265, 268EZ Mart 70, 75, 139, 147, 153

Fface-to-face contact 247face-to-face interactions 205

FAMS 141Farmers Insurance Group of America 203fax 204Faxback 187feedback capabilities 246Fidelity Investments 203finalize business case 108finance and securities 266financial

advice 149analysis 183and investment products and services 47and strategic goals 211brokerage firms 114business knowledge 151expectation methodology 222impact 221institutions 262management 259, 260, 261markets 2, 8, 9, 18modeling 172news 195performance 181planning tools 194, 195reporting 85review 173risk 196service provider 159, 194services

companies 113firms 203, 204industry 113provider 159

Financial and Econometric Modeling 78, 181Financial Fusion 148, 268

Consumer e-Finance Suite 63, 75, 89, 148Server 148

Financial ServicesData Model 70, 75, 102, 103, 151Function Model 153Information Framework 70, 75, 147, 153Object Model 103Workflow Model 154

firmographic information 174first-of-a-kind custom development 256Fiserv 262, 268fit analysis 203, 259, 260, 261, 262, 263fit gaps 206fixed-income securities 11, 38

Index 299

Fleet Boston Financial Corporation 203fluctuating currency 224forecast firm exposure 132forecasting 83foreign exchange 132forward auctions 201framework reuse 242France 11, 12, 37French 37, 167front-end system 163, 184

delivery 246FSDM 70, 75, 103, 151FSFM 153FSOM 103FSP 194, 195FSS Center of Competence 163FSWM 154fulfillment

and logistics 219enablement-centric business model 19information 224

full-service management 121fully-managed services 121, 156functional specialist 9funds 18

asset allocation 27flow 18

future anticipated policies 244future buying behavior 197

Ggap analysis 43, 45, 46, 48, 87, 127, 129Gartner 268

e-Metrics 258GBT 249, 250general ledger 262geographic location 224German 167Germany 12getsmart.com 14GIC 11, 38Glass-Stegal Act 11global

data centers 122e-commerce 218financial marketplace 220knowledge sharing 170market view 35

marketplace 219sharing 170strategic alliances 201strategic business partners 6

Global Brand Table 249Global Infrastructure Strategy 73globalization 1, 8, 9, 155, 218, 219, 220go-to-market strategy 85, 181, 265governance 32, 43, 46, 48government involvement 12government program 141GPRS 36Gramm-Leach-Bliley Act 12graphical visualization 164greenfields new wealth bank 246groupware management 121GS Methods 54GUI personalization 71

Hhandheld devices 205hardware

failure 187installation 42, 43, 44, 46, 54maintenance 121platform 166

Hartford 203Harvard Business School 258HCL Perot Systems 268health care 12, 141Help Desk 63, 149, 155high availability 89high net worth customers 246highly-valued customer 29, 48, 80, 82, 116, 244, 246high-priority skills 211high-risk individuals 214high-speed Internet access 122high-value segment 71hiring 118

practices 211historical claims data 213historical sales and demographic information 200HMO 141Hogan 216home buying 10, 14home-grown system 144homeowners insurance 245


hosting 54Hosting/Outsourcing 75, 84, 89, 156hot backup 187household/account profitability 24house-holding 43, 44, 46

applications 215households 199, 243, 244how to engage 247HPS 262, 268HRACCESS Package Implementation 261HTML 182Human Capital Management 169human resources 161, 211, 259, 260, 261

Ii2 Technologies 259, 268IAA 61, 65, 70, 72, 113, 158, 159

data model 160IBM

Center for e-Branding Solutions 106Fraud and Abuse Management System 141Global Marketing Strategy Practice 171Innovation Center 245Intelligent Miner 160netCallCentre™ Feature 187netSelfServe 187Security and Privacy Services team 264SI Method 265Strategic Outsourcing Service Delivery center 186

ICAP 251ICC 196iDTV 36IFW 70, 75, 103, 147, 153, 262IGS

KM Consulting 170knowledge and content management consulting 168

IIW 6, 61, 70, 75, 159IKM 169imperfect data 216implementation

and integration services 262, 263cycle time 265methodology 227quick-start 163roadmap 42, 63services 262

skills 259implementing a new wealth bank 246import/export functions 141IMS 144inbound

and outbound service 27channel 226customer request 227

increasing profits 171index funds 11, 38individual portfolio risk 132Indus 268industry

benchmark 245consultants 245consulting 255convergence 9information 221

links 246maturity 9models 227, 262

Industry SolutionsBuy and Supply 259Enterprise Resources 261Sell & Support 263

informationarchitecture 153distribution 182engineering 151flow modeling 184overload 10, 38technologist 151

infrastructuredesign and planning 64, 89development 263issues 218

innovation 9, 19, 264centers 241, 242

design studies 246insight 170Institute for Knowledge Management 169institutional finance 203insurance 2, 8, 9, 11, 14, 18, 47, 62, 113, 114, 130, 141, 158, 160, 194, 203, 204, 213

analysis 183broker 114business scenarios 185carrier 114claims 141

Index 301

data 213distribution

and servicing 114process 113

marketplace 5provider 115, 159

Insurance Application Architecture 61, 65, 70, 72, 158Insurance Information Warehouse 61, 70, 75, 159integrated

branding solution design and development 106commerce 121customer service center 155networking architecture 161processes 17product configuration 83solution 163

Integrated Voice and Data Networks 63, 65, 75, 79, 84, 89, 161integration

of business, management, and operational re-quirements 257of IT with business strategy 110point 185processes 146

Integration Hub 65, 68, 69, 70, 75, 79, 83, 84, 89, 162INTEGRITY 215intellectual capital 170, 206, 210Intellectual Capital and Methodologies 264Intellectual Capital Management 169intellectual property 170intelligent lead generation and management system 130Intelligent Miner 61, 65, 70, 72, 87, 164intelligent routing 184interaction 76interactive

analysis 146data visualization 141exchange 227online selling 163queries 191, 213strategy affiliate marketing 106updates 191

Interactive Branding 32, 39, 75, 106, 263Interactive Voice Response 161interest-bearing securities 132intermediary 3, 9, 18, 23, 28, 29, 48

internal selling 142internal view 77international banks 262International Competency Center 196international markets 35internationalization 220internationalized software base 220Internet 2, 12, 13, 14, 15, 16, 23, 30, 31, 36, 37, 47, 62, 63, 71, 74, 82, 88, 113, 120, 130, 148, 149, 156, 172, 182, 190, 198, 201, 214, 217, 219, 220, 227, 247

behavior 217portal 31, 114self-service 47service providers 122software platform 223, 225technology 120wealth management and brokering 262

Internet-based applications 156Internet-based technology 219intranet 47, 88, 214, 220intrusion detection 121inventory 224investment banking 11investment decision-making 10investments 175

recovery 181strategies 10, 30, 38

investors 221invoicing 219IRIS 262, 269issue admin expense 114issue process 214ISV 2, 6, 78, 88, 123, 158, 161, 163, 220, 258

application packages 259, 260, 261packages 259, 264, 265

ITarchitecture 245consulting 261infrastructure 256services 35strategy 222

IT Infrastructure Package Implementation 261IVR 23, 187

JJ2EE 225Japan 12, 167


Japanese 167Java 130, 224, 225

Servlet 224JavaBeans 223, 224JD Edwards 269

Package Implementation 260JDBC 223JSP 224

KKana 166, 167

Advisor 167Assist 167Chat 167Commerce 167Communications 166, 241, 269Conduits 167Connect 167Customization 6, 61, 65, 72, 79, 87, 89, 166eBusiness Platform 167I-Mail 167Phone 167Response 167Service 167Voice 167

Kanter, Rosabeth Moss 258key

business objectives 88business processes 110competitor 173, 174focus areas 127

kiosk 30, 47KM 168, 169, 170knowledge

creation 169exchange 169flow 169strategy 168, 169usage 170

Knowledge and Content Management 256, 264Knowledge Disclosure through Storytelling 169Knowledge Management 48, 77, 81, 87, 168, 264

Technical Services 169Knowledge Retention in Mergers and Acquisitions 169

Llabor pool 119

laptops 184Lawson 269

Package Implementation 260leads 243

account management 83delivery system 243

legacyapplications 191, 263, 265business application 158integration 202organizational model 112system 6, 28, 42, 88, 103, 115, 117, 119, 143, 144, 162, 163, 184, 199, 216

lenders 31lending process 154Letter of Authorization 251Letter of Intent 251leveraging the Internet as a platform for revenue generation 204life insurance 114, 245life-cycle financial management 12life-stage scenario development 244Lifetime Customer Profitability 138lifetime value 244line operations 247liquidation 22liquidity analysis 102LOA 251, 252load balancing 121, 149, 188load distribution 182loans 148, 262LoanSuite 154LOB 2, 7, 28, 35, 38, 42, 43, 45, 112, 123, 124, 250localization 220location-based services 192logical key integrity 216LOI 251, 252loss estimates 214loss ratio 214Lotus 154, 170low-risk customer 214

MM&A activity 11M&I Eastpoint 262, 269machine learning 132mainframe 223

Index 303

maintenance 265making the right offer at the right time 204managed

conversion 163e-business services 122firewall 121monitoring 121storage services 157

managementconsulting 258, 263information systems 262policies 247requirements 257services 156

managingbusiness partners 202finances 14products and features 247service and support 247technology 247

manufacturing 178, 259, 260, 261costs 125

Manugistics 259, 269mapping 160margin-loan portfolio management 132marine insurance 245market

analysis 132and competitor positioning 80behavior 132, 174capitalization 110conditions 17coverage 175data 172definition 174demand 4dynamics 132, 158economics 181environment 19expectations 1, 8forecasting 132information 195leadership 226management 28opportunity 69, 181penetration 181perspective 178position 45, 173, 174potential 181

reach 218, 263returns 132segment 62, 84, 116, 120, 172, 174, 175, 180, 245share 14, 48, 119, 139, 171, 180, 214simulation 172, 180size 181strategy 117structure 13sub-segment 174theme 21, 39, 41trends 44value 134

Market Analysis and Strategy 77, 81, 87, 171Market Structure Analysis 77, 87, 171, 173, 174market-centric business model 19market-driven opportunity 177marketer 213marketing 23, 24, 25, 27, 28, 31, 43, 69, 80, 85, 88, 106, 139, 167, 203, 204

activity 60, 69, 179automation 183campaign 28, 63, 79, 138, 205, 227capability 47, 60channel 137data warehouse 243decisions 139effort 84interactions 205manager 205, 224mass 175message 45, 60, 61mix 62objective 69processes 126research 171results 199strategy 171, 173, 174, 175, 177

marketing-driven technical infrastructure 137marketplace analysis 43, 46marketplace penetration 125materials management 259, 260, 261mathematical analysis 263

transformation 262Maturity Model Survey 104m-business 192m-commerce 192measurement 171MeB 63, 85, 122, 192


memory utilization 121mentoring program 118merchandising 224Mergers and Acquisitions 1, 8, 163, 169, 216, 255, 257message

and transaction management 162broker 162processing 162publisher 162receiver 162routing 162sender 162subscriber 162

messaging 150architecture 162hub 117

adapters 191metadata 143methodology reuse 242metrics 32, 118, 124, 135, 138, 171, 181, 221, 226Micro Business Banking 149micro form factor technologies 242Microsoft

server-based computing systems 265technologies 256Windows client 182

Microsoft-basedIT solutions 265mail and messaging systems 265network operating systems 265

MicroStrategy 61, 70, 72, 81, 83, 84, 182, 269Web 182

Mincom 259, 269mini-groups 172MIS 152mobile

devices 205e-business 192, 266e-marketplaces 192field solutions 202phone 36synchronization 83wireless 71

solutions 265workers 184workforce 192

Mobile Internet 3, 4, 7, 32, 35, 241Mobile/Wireless CRM Application Services 263

modeling guide 158money

center 11flow 133management advice 195

Morningstar 71mortgages 14, 72, 262MQ Work Flow 265MQSeries

Adapter Offering 184base messaging 184Everyplace 184Integrator 184messaging 184Workflow 184

MQSeries/MQSFSE 6, 65, 68, 70, 75, 79, 83, 85, 89, 113, 117, 148, 166, 184, 191, 194, 224, 242, 246, 265MQSI 265MRO Software 269MS

Architect 182Intelligent Server 182Transactor 182

multichannelbusiness intelligence practices 138distribution 2marketing campaigns 205personalization engine 205

multicultural functionality 224multicurrency support 247multi-dimensional analysis 182multi-dimensional profitability quantification 43, 44, 46Multi-Industry Center of Integration 163multi-line financial services 243multiple

channels 2, 204client entry points 3, 5, 6, 241touchpoints 191, 203, 225

multi-vendor, multi-platform IT environments 110mutual funds 11, 36, 38, 132

NNarrowcast Server 182national industry practices 242National Multi-Industry Practice 252net present value 244

Index 305

netCallCentre 65, 79, 83, 85, 89, 186net-enabled phones 36Netfinity 114, 166, 187network 111, 119, 121

availability 122communities 170computing 198management 122, 161monitoring 121operations 149service level 122technology 13

newgrowth opportunities 9media challenges and opportunities 241product 177service 177wealth bank 5, 7, 246wealth segment 10

New Product and Services Innovation 78, 81, 176next-generation contact centers 202niche opportunity 174Nordic countries 12North America 11, 12, 36NOS administration 121not-for-profit firm 178NSSO 249NT 166

OOAD 257, 258OASIS 247, 248, 249, 250, 252object modeling 191object-oriented

development 103message representation 225system 151technology 151

OCM 258OEM 187official language 219off-line brand 171OFS 241OLAP 182, 262OLP 207OLTP application 165OM 248OMNOTES 249, 250

one-to-one marketing 148capability 194

onlineanalytical process 182auctions 201banking 3, 5, 14, 36, 37behaviors 227business channel 28, 29catalogue 190customer 178enabling tools 14home lending 14insurance 3, 14mortgage 14offline model 77payment 14promotional e-branding solutions 106sales 14, 88

and service 119self-service 204selling 185surveys 190technologies 7

Online Financial Services 4, 7, 14, 32, 35, 36, 39, 47, 212Onyx 187, 269

2000 190ASP 65, 85, 89, 189Portal

Customer 190Employee 190Partner 190

operationaldecisions 139efficiency 196, 259metrics 125model 48processes 9, 48, 263requirements 257risk 196roadmap 126

Operational EDGE reports 250Operational Effectiveness 255, 258operational-level processes 207Operations and Process Design for Interactive Transactions 65, 68, 75, 79, 83, 89, 191opportunity

decision-making 251identifier 248, 249, 251


management 247, 248, 249rules and guidelines 249

owner 248, 249, 250, 251optimal customer decisioning treatment 262optimal marketing communications mix 174, 175optimization algorithms 137optimized marketing channels 137optimized prospect list 130Oracle 216, 269

Package Implementation 260order processing 84, 190ordering 219organization analysis and design 257Organization Change Practice 257organization structure 257organizational

effectiveness 17mission and goals 211performance 168realignment 9role 48

Organizational Change Management 257, 258Organizational Network Analysis 169Other

Buy and Supply 259Enterprise Resources 261Sell & Support 263

outage 110outbound channel 226outreach channels 245outsourcing 15, 54, 119, 120, 156, 161, 186out-tasking 258, 264Overflow VRU Package 187

PP&C 30, 141Package Enabled Business Transformation 260package evaluation 79package implementation 258, 259Package Integration 54, 78packaged framework 163packaged solutions 256, 265package-enabled infrastructure 261pagers 182, 247parallel computing 132partner relationship management 202partnering 12, 15, 17, 47pattern recognition 132

pay-as-you-go fee structure 201payment

process 219regulations 224services 15, 27systems 262

paymybills.com 14pay-per-use pricing structure 186PDA 11, 182, 184PEBT 260people 26, 118PeopleSoft 259, 269performance

guarantees 14improvements 258, 263management 118, 121, 245measurement 46, 257tools 162

Perot Systems 268personal financial data 195personal liability insurance 245personalization 26, 27, 71

capabilities 204engine 205

personalizedcustomer experiences 137messages 182product and service delivery 44service 10, 26Web content 224

Pervasive Computing 10, 32, 39, 63, 82, 85, 192, 242

Infrastructure Services 266pervasive devices 223, 263

activation 263phased implementation 74phone 167physical access point 28plan

administrator 82development and release strategy 245sponsor 82

platform independence 163platform-independent code 191point analysis 28point solutions 125policies 135

data 213inquiry 246

Index 307

portfolio rates 214portfolio risk 214records 191

populating the business case 108portals 3, 265

technologies 264portfolio

development 80diversification 35managers 132performance valuation 25

portfolio-based enterprise 18positioning concept and statement 77potential lifetime value 200practice portfolio 258predictable business results 242Predictive Modeling 78, 172, 180, 243pre-engagement marketing task 108preferred channel 45preferred customer segment 180premiums 214

adjustment 214pricing 138

presentations 83pricing 48, 63, 80

options 201strategy 173, 180

privacy 11, 73, 82, 198, 218, 264and award information 246

proactive report delivery 182problem isolation and recovery 162problem solving 169process 24, 26, 61, 135, 138

improvement 258management 162model 191realignment 9

processing object model 191Procurement Consulting 258Procurement Package Implementation 258procurement process 258procurement system 201product

and services information 245catalog 219density 24, 28development 45, 80, 82, 85, 213evaluation and selection 263features 19

information 204, 205innovation 172life cycle 9, 181line reconfiguration 44, 46management 159maturity 9mix 173portfolio 82service history 123solutions 243

Product Life Cycle Management 261Product/Portfolio Planning and Pricing 80product-centric business model 43, 45production processes 256production/manufacturing-centric business model 19production/manufacturing-centric enterprise 86productivity 154, 264profile generation 217profile group 43ProfileIVR Option 188profiling 141profit 247profitability 2, 25, 44, 61, 139, 183, 221, 222

analysis 103, 159, 213predictor 200

profitable relationships 243Program Management 32, 61, 63, 65, 68, 70, 73, 75, 79, 81, 83, 85, 89, 193programmer productivity 143project

design 154implementation costs 143maintainability 143management 42, 54, 121, 146, 203, 259, 260, 261, 262, 263planning 203, 259, 260, 261, 262, 263time 154

promotion history data 227promotional

activities 173opportunities 201strategy 180

propagation plan 69propagation software 43, 44, 46propensity scoring 243propensity to buy 244Property & Casualty 30, 113, 213proposals 83, 248


proprietary system 144prospect evaluation 214prospect information 212prospecting costs 244prospective customer 79prospects 212prototyping 142, 203, 259, 260, 261, 262, 263provide consistent and personalized product and service deliver 205provider 48providing service across all channels of customer in-teraction 204provisioning 121Prudential PLC 203PSDI 259, 269psychographic profile 72

QQA 251QCi Customer Management Model 127quality of service 64quantitative portfolio management 132quantitative research 172queuing 265Quick Start 160quicken.com 15Quickstart Engagement Solution 192quotation facilities 245quote management 83Qwest 122, 269

Rrack and DNS setup 121RAMS 172Rapid Analysis Measurement System 172rapid iterative prototyping 142RDBMS 164readiness assessment 257real-time approval 14reboot 121receiving application 162recommended linkages 77recruitment 156Redbooks Web site 271

Contact us xvreduced cycle times 14redundant

fiber connection 122

integration 185network 122

Region Multi-Industry team 253regional industry practices 242regulations 8regulators 132regulatory

challenges and opportunities 241environment 173forces 247process 48

relational database 141, 182, 223relational view 123relationship

depth 125manager 204marketing 160

release strategy 245reliability 110remote support 155repeat business 24repeat purchase analysis 24reporting relationships 135representation model 225repurposing 71reputation 245research

analysis 77centers 242distribution 183

resource management 155response management 23responsiveness 61retail 227, 266

banking 14, 45, 148, 203, 262channels 202financial services 241investment 2

retailer 14Retek 269

Package Implementation 259retention 24, 25, 26, 29

analysis 214management 212plan 211prediction 22program 244

retirement 10, 38benefits 12

Index 309

income 11, 38plan 82savings 10, 12

retraining 156Return on Web Investment 221returns handling 219revenue 8, 14, 247

growth 221objectives 204stream 181, 250

reverse auctions 201review and approval process 248rewards and incentives 257ripple effect 185risk 135

analysis 44, 103and opportunities 222exposure 213factors 213, 214, 219groups 213improvement 214management strategy 213pricing 159, 160profile 214reduction 242

Risk Management 29, 81, 139, 213, 241, 262ROI 108, 221, 222

model 109, 246role/job definitions 257routing 265ROWI 63, 221, 222RS/6000 114, 166, 194rules and rates 213rules engine 162

SS&D 248S/390 225

enterprise server 148S1 6, 63, 194, 269

Consumer Suite 194, 195eFinance Experience 194

sales 23, 24, 25, 27, 28, 29, 31, 106, 167, 203administration 83analysis 83, 183and marketing expense 114and service strategies 244automation 202

campaign 199, 214channel 222cost 84cycle management 84cycle time 114, 206decisions 139forecasting 83information 204interactions 205process 243productivity 84propensity model 22prospect 199representative 79, 83response information 200strategy 175

Sales Force Automation 83Sanchez 262, 270SAP 270

Peoplesoft Package Implementation 259R/3 216

SAS 61, 70, 81, 83, 85, 149, 196, 270savings 11, 36, 247SBC 207scenario-based planning 257scenarios 134scheduling 83, 118Schwab 15, 203SCM 255scoping and planning templates 210scoring 44, 46

algorithms 199, 200models 243

script writing 121Sector Category Team 252securities 2, 11, 18, 38

companies 262transaction processing 262

security 43, 46, 73, 82, 89, 110, 121, 122, 162, 182, 184, 198, 218, 264

and privacyarchitecture and design 198assessments and planning 198implementation 198management 198policies 70

specialist 198Security and Privacy 256, 264

Design and Implementation 61, 65, 70, 73, 83,


87, 89, 198segmentation 44, 46

and modeling 43, 48management 159models 243

Segmentation and Scoring 61, 65, 70, 73, 81, 87, 199, 243, 244segmented and scored leads 243self-service 14, 37, 155Sell & Support 255, 262

Strategy and Roadmap 85, 247sell cycle 249, 250, 251sell-off 263sell-side solution 222sending application 162server management 121service 23, 24, 25, 28, 31, 167, 203

automation 202center 88channel 29costs 155innovation 172interactions 205life cycle 181quality 86, 116standards 24

service level agreements 17, 118servicing 80

costs 125settlement 219

and clearing models 133SFA 83shipment confirmation 219short-term gain 38short-term signals 132SI 256

solutions 264SIB400 262Siebel 6, 187, 270

Analytics 204ASP 65, 85, 90, 189, 201Baseline Configuration 207Baseline Pre-Configured Client 207Call Center 204

applications 202channel applications 202Customization 61, 65, 73, 79, 85, 90, 203database 205dot-com applications 201, 204

dynamic commerce applications 201e-business applications 204eChannel 204eSmartScript 205field sales applications 202field service applications 202IBT 61, 65, 73, 79, 85, 90, 206industry applications 202Marketing 204Package Implementation 262Personalization 205Systems 241, 246

signal processing 132Signature Selling Method 249significant data attributes 200silo 18, 43, 123, 191, 244, 247Singapore 12single

consistent view of the customer 204point of failure 122view 123

siteand content management 218entrance 219marketing 218traffic 246

skills 156, 211gap 211

closure plan 211profile 118shortage 88

Skills Management 61, 87, 211skills-based routing 188smart phones 36softphone 188software

base 220failure 187hub 162integration 42, 54packages 203, 259, 260, 261, 262

SOHO 149Solution Offering 58Solution owner 248, 251source data 146source-to-target transformation map 145South Africa 12Spanish 167speed to market 190, 242

Index 311

SSM 248, 249, 251sales aids 251tools/sales aids 251

staffassessment 43, 45, 46, 48level 245management 118shortages 110

staffing 118stakeholder participation 257standards 135starburst business 206Statement of Work 252statistical model 72, 180statistical proofs 196stock

inventory 133loan/shorting 133portfolio management 132price 1, 8selection tools 132

storage requirements 156storage utilities 120strategic

alliance 9, 19, 35capabilities and initiatives 134, 257consulting 54goals 211impact 221intent 21, 28, 134LOB plan 43marketing

efforts 180issues 171plan 171

metrics 125objective 42partnership 19plan 60planning 219relationships 15roadmap and business architecture 134sourcing 258

strategists 132strategy and implementation roadmap 46strategy planning and execution 241, 242streaming media services 120streamlined processes 222stress testing 121

submission software 72subsidy programs 12suppliers 173, 197, 219, 242

relationships 196supply chain 12, 15, 183, 266

monitoring systems 258operations assessment 258planning 259solutions 265

Supply Chain Consulting 258support

all customer touchpoints 205cost 265services 244

survey data 243sustaining a competitive advantage 171swap space 121Switzerland 219SynQuest 259, 270system

administration 121consolidations 216construction 225infrastructure services 263integration 117, 121, 123, 161, 261, 263management 121manager 162rewrites 216tuning 182

Ttacit knowledge 168, 169target audience 84, 172, 174Target Audience and Market Segmentation 77, 87, 174target market 31, 223targeted

campaign 226customer group 81lead 130marketing campaign 164, 243, 244segment 199

targeting products and services to value-based cus-tomer segments 243taxation laws 224team selling 84technical and analytical skill requirements 43, 45, 46, 48


technology changes 26technology leadership 242technology-enabled services 9telecommunications carriers 122telephone 161, 172, 184, 188, 197, 204telephone-based interactions 205telephony 47, 187teller 225text-based chat 204The Hartford Financial Services Group 203thin client 205, 265thin layer visualization 77Third Party Data Integration 61, 70, 87, 212third-party data 212

provider 200vendor qualification and selection 212vendors 212

thought leadership 242throughput 118Tibco 265, 270ticker data indicators 132tiered service program 31time deposits 247time to market 29, 142, 167, 201Tivoli 113, 187tools and techniques 77touchpoint 1, 22, 27, 46, 47, 60, 71, 81, 86, 88, 137, 205, 207

capture 262trade

floor reporting 183matching 10shows 84

traders 132trading 132

and risk management 262partner 16, 17

transactioncoordination 225costs 15enablement 38information 224processor 48workflow 218

transaction-based business model 48transaction-based services 48transition 42

cost 86management 257

opportunity 39, 41, 42, 44, 53, 82transitioning to a customer-centric business model 244travel 266Treasury bills 11, 38treatment and response model 22trend analysis 178triads 172Trilogy 6, 270Trust Services 45trusted advice 14, 48trusted advisor 12, 38turn-time 86

UUBD 182ubiquitous access 31UK 9, 11, 12, 36unassigned/orphan clients 243understanding customers 171, 175, 204underwriter 213underwriting 159, 214

expense 114rules 213

and profitability 214Underwriting Profitability Analysis 83, 160, 213unit servicing costs 31universal server farm 122, 149UPA 83, 160, 213update business case 108up-sell 22, 29, 138, 199, 212, 243URL monitoring 121, 217US 9, 11, 12, 14, 38, 141, 167, 219usage 43using the business case tool 108UUNet 122, 270

VValex 160, 226Vality 61, 65, 70, 85, 215, 270valuable customer segments 7value

chain 9, 10, 25, 31nets 134proposition 1, 6, 8, 9, 13, 14, 15, 29, 31, 34, 134, 171, 206, 239, 241

value-added content 195value-based

Index 313

business model 28, 29, 48customer segmentation 243customer segments 28, 29pricing option 251

vendors 197partnerships 242

Vignette 167, 270virtual call center 188vision transition 142vision, mission, objectives, and strategy 118Visual Warehouse 215VisualAge for Java 224Vitria 265, 270VMOS 118voice 182, 183, 188

and data infrastructure 119communications 161response units 47systems 166telephony technology 47

voice-over IP 204volatility forecasting 132VRU 187, 188vulnerability analysis 121

Wwalk-up 47wallet share 28, 29, 35, 38, 44, 125

analysis 102WAP 225

phones 223, 247Wave I 12, 13, 14Wave I/II hybrid enterprises 13Wave II 13, 14wealth accumulation 10Wealth Management 2, 3, 4, 6, 7, 31, 32, 37, 38, 39, 48, 82, 241wealth transfer services 10Web 6, 13, 14, 15, 36, 38, 61, 71, 121, 122, 130, 148, 161, 167, 182, 183, 194, 197, 202, 204, 217, 223, 243, 245, 258

analysis 72application 224architecture 166, 167banking 149browser 130, 182, 188, 213, 214channel 112, 117content 224

enable 47, 88, 89hits 186hosting 120, 156links 72personalization 72, 227self-help application 190selling packaged solutions 263selling strategy 74server 110

architecture 43, 44, 46site 64, 71, 72, 76, 89, 136, 142, 143, 150, 195, 246

design and development 46integration 89

strategy 222technology 130, 194, 222traffic analysis 121traffic pattern tracking 137

Web Analytics 62, 65, 73, 79, 137, 217Web Enablement 88Web Methods 265Web Selling 32, 39, 218, 256

Globalization Planning 63, 75, 218Package Implementation 263, 265Return on Web Investment 63, 221Solution Planning workshop 218Strategy Consulting 263, 265

Web-architected application 167Web-architected e-business 167Web-based

application 131banking 150interactions 205solutions 120, 265support 155transactions 138

WebSphere 6, 65, 68, 70, 75, 79, 83, 85, 90, 113, 148, 223, 246, 265

Application Server 166, 223, 224Business Components Composer 65, 68, 70, 75, 80, 83, 85, 90, 225Commerce Suite 166, 224Extended Personalization 224on the Go 224Personalization and Site Analyzer 224Studio 224Transcoding Publisher 224

wellsfargo.com 14Western Europe 36, 219


what-if analysis 213wireless 11, 14, 36, 47, 167, 182, 183, 242

mobile strategy 266phones 205portals 266technology 266trading 183

work management 245workflow 265

applications 162development 182process 227

worldwide customers 219

XXchange 62, 65, 226, 270

Dialogue for Marketing 226, 227Optimizer 226, 227Real Time 226, 227

XML 145, 146, 165, 225

YYahoo 15, 71

ZZeus 262, 270Zurich Insurance 203

Index 315

(0.5” spine)0.475”<

->0.875”250 <

-> 459 pages

Leveraging Customer Centricity in the Financial Services Sector

®

ZG24-6238-00

INTERNATIONAL TECHNICALSUPPORTORGANIZATION

Leveraging Customer Centricity in theFinancial Services Sector

IBM Redbooks are developed by the IBM International Technical Support Organization. Experts from IBM, Customers and Partners from around the world create timely technical information based on realistic scenarios. Specific recommendations are provided to help you implement IT solutions more effectively in your environment.

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LeveragingCustomer Centricity in theFinancial Services Sector

End-to-end Sell & Support Solutions for the Financial Services Sector

Describing Customer Loyalty, Online Financial Services, and Wealth Management

Targeted for use by Client Services & IGS Principals, and S&D Client Teams

This IBM Redbook describes the Sell & Support Category Solutions within the Global Financial Services Sector. Specifically, it details the Banking, Insurance, and Financial Markets industries’ driving business issues, the IBM themes and Big Plays to respond to these business drivers, and the Solution Components and transition opportunities in support of our Big Plays.

This guide is intended to serve as an internal tool, targeted to Client Services principals, IGS principals, and S&D Client teams that want to learn about and position our Sell & Support Value Proposition and Solutions for their clients.

This redbook is for internal use only. It is not intended to be given to customers.

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