E-Banking Summit 2012
Invisible Banks, Invisible Client, E-Banking
Business Process Outsourcing 2.0
Budapest, 2012. Március 6
AGENDA
Business
Outsourcing
Retos yProcess
Objetivos
Retos y Objetivos
Challenges & Objectives for Banks in the E-Banking Era
Retos y Objetivos
BPO 2.0 - Operating Model in the e-Banking Era
Retos y Objetivos
Success Stories
Retos y Objetivos
2
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Business Process Outsourcing
Challenges & Objectives for Banks in the E-Banking Era
BPO 2.0 - Operating Model in the e-Banking Era
Success stories
3
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Business Process Outsourcing
What is BPO?
The delegation of business processes to
an external provider that, in turn,
administrates and manages the selected
processes based on defined and
measurable performance metrics. Some
examples of business processes includes
finance and accounting, logistics,
procurement, HR, CRM, or other
administrative or customer-facing business
functions
The worldwide business process
outsourcing (BPO) market is forecast to
grow > 4% yearly in the next three years.
4
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
BPO & HP Business Services Portfolio
BPO SERVICES
Customer
Relationship
Management
INDUSTRY SOLUTIONS
Finance &
Administration
Health and
Life
Sciences
Services
Financial
Services
5 billions of
1500
0,8 millions
credit cards
millions
8 mortgages
million
1.5checks
billion
transactions
contactless
managed
cheques
managed
managed
Payment
cards
45 millions
2.5 millions
credit cards
consumer
More than accounts
25,000 professionals
are dedicated
loans
specificallymanaged
to helping clientsmanaged
in the financial
HRO & Payroll
Transportation
Services
Document
Processing
Communications,
Media &
Entertain.
Services
Government
Services
#2 Multi-services
Global BPO
Provider
NelsonHall 2011
#2 US Healthcare
Payer BPO
Provider
NelsonHall 2010
Leader
Everest 2011 FAO
Annual Report
Major Player
IDC 2010 Contact
Center Services
MarketScape
services industry improve performance and
Thousands
of professionals manage our
increase profitability
customers’ business processes in the
Financial Services Industry, helping them to
improve their performance and increase
their profit.
SIGNIFICANT PRESENCE
5
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
HP a leader in Business Process Outsourcing
•
$2.7B in revenue
•
Over 300 clients in 26 countries
•
Thousands of service professionals
•
30+ years experience in BPO
•
65 shared centers.
•
More than 48 languages supported.
•
Technology Platform based on our industry standards.
•
Different delivery alternatives: On-, near-, and off-shore, with flexibility for
workforce balance across different centers.
•
Work teams with broad knowledge in Financial sector.
Global Governance Model
Maturity in talent and resource
management
Integrated and consistent model
Best-Shore
Bangalore (2), Chennai (2), Pune (2), Mumbai*, Costa Rica, Wroclaw
Local Centers
Des Moines, Ocala, Guadalajara, Barcelona, Bucharest, Budapest, Singapore, Dalian, Mitterteich, Sao Paulo, Buenos Aires, Australia, New Jersey*, London*
6
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Business Process Outsourcing
Challenges & Objectives for Banks in the E-Banking Era
BPO 2.0 - Operating Model in the e-Banking Era
Success stories
7
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Challenges & Objectives for Banks in the E-Banking
Era
Main objectives of the Banks:
• Operating cost reduction.
• Service quality improvement.
• Service scalability and flexibility.
• Increase knowledge about the final customer.
HP Strengths:
• Technology leader.
• BPO leader in the
Financial Market.
• Demonstrated capability
in BPO Services (Front
and Back Office) with
locations On, Near and
Off shore.
• End-to-end capability
(ITO, Apps and BPO).
“Partner” Relation
HP Solution:
• Establishment of a trusting
• Highly consolidated
locations to run BPO
Financial Services On, Near
and Off shore.
• Service transfer with
minimum risk and without
detriment to quality or
effectiveness.
• Use of proven
methodologies and best
practices.
• Use of technologies and
tools specifically designed
for BPO services.
• People transition.
8
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
long-term strategic relation
allow to collaborate on:
 Reducing operating costs
associated with these
services ,estimated in
some cases in up to 30%.
 Minimizing the impact of
project start-up costs by
anticipating efficiencies.
• Our price-oriented approach
will have a cost aligned with
the business development.
Business Process Outsourcing
Challenges & Objectives for Banks in the E-Banking Era
BPO 2.0 - Operating Model in the e-Banking Era
Success stories
9
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
BPO 2.0 – Operating Model Evolution
90s
80s
2000s
2010s
RISK AND COMPLEXITY LEVEL
E-Banking development
Service oriented to
business (BPO 2.0)
Service oriented to
process
Service oriented to
tasks
• Customer systems
• Specialized suppliers
• FTE invoice model
• Invoice model variable
for operation
• Platform oriented to
service management by
product
• Invoice model by
product
Centralization
•Operations
Centralization
in Head Office
Creation of the
Operations areas
•Creation of the
Operations areas
• First initiatives of
process automation
Advanced
Outsourcing
Basic Outsourcing
Process Control
Centre
• New services
•Outsourcing of
independent
processes
•Process Control by
supplier
•Industrialization
• Knowledge
outsourcing
• Lack of
Outsourcing model
• Control of the
shared process
RELATION LEVEL WITH PROVIDERS (internal / external)
PROPERTY
MODELS
10
Subsidiary /
Join Venture /
Own Company
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
Subsidiary /
Join Venture /
Own Company
06/03/2012
Technology Partner
Managing Partner
BPO 2.0 – Understanding the environment: Value
Map
Industrialization
E-Banking:
CRM Inbound
Call Reduction
Traditional
Back Office
Shared Services
Centers
VALUE
E-Banking:
CRM Inbound
E-Banking:
CRM Outbound
Document
Handling
V
Scanning
&
Printing
EFICIENCY
11
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
BPO 2.0 - Requirements and Challenges
12
Business Requirements
BPO Challenges
Increase Knowledge about final customers
Ability to use any contact to obtain relevant
information.
Respond to rapid changes in business
conditions
Ability to add new services and absorb activity
growth or reduction
Mitigate risk and ensure compliance
Quick introduction of Models and Technologies
BPO Services to support changes in business
needs
Predict, manage and reduce costs
Reduce complexity by standardizing and
automating processes.
Change to a model of BPO services
Improve the productivity of the
workforce
Create job security and flexibility, allowing teams
to work according to the demands of work and
priorities
Fast integration in mergers and acquisitions
Allocate adequate resources to quickly make a
safe transition and transform the services
according to current and future business needs
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
BPO 2.0 : Economic Model
Transformation
• Efficiency
achieved through
increased use of
BPO tools and
team organization
• Increased capacity
of service
Optimization
• Common
infrastructure,
rationalized
• Reduction by
operation
• Time to Market
(products and
features) - income
generation
potential
• Risk management
improvement
Operation
• Continuous
improvement
• Lower cost per
transaction
• Continuous
innovation
• New services /
products
Price (€)
Transition
• Costs aligned to
the volumes
• Service Transition
• Start the
transformation:
Investments
• SLA
• Efficiency from the
day 1
Period 1
13
Period 2
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
Period 3
Period 4 -10
06/03/2012
Total Initial
Cost
Price,
achieving
savings from
day 1 through
our funding
Price,
achieving
savings from
day 1
BPO 2.0 – Service Excellence + Industrialization
1
5
Banks Objectives:
Service
Excellence
2
• Cost vs. Quality
• Unification of Management
• Using Best Practices
• Maintaining Business Knowledge
• Benefit from the best technology
• Improve controls
• Increase flexibility and release
capital
• Increase transparency
HP
VALUE
4
3
1. OPERATION
• Business Process
Reengineering
• Quality
• Talent Management
• Security
• SLA / KPI / Metric
• Continuous
Improvement
• Risk Mitigation
14
2. SERVICE
MANAGEMENT.
3.PERFORMANCE
MANAGEMENT
•
•
•
•
• Six Sigma Plus
• Talent management
• Regulatory Compliance
Multiple locations
Centralization
Multi-Languages
Business Continuity /
Disaster Recovery
• Talent Pool
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
4. CENTRES
5. TECHNOLOGY
• Facilities / Infrastructure
Sharing
• Equipment Operation
Support Resource
Management
• Resource allocation
according to needs /
efficiencies
• Technology / investments
amortized
• Intelligent Scan /
Workflow tools
• Specific tools for the
process
• IP technology
• Information and
Communications
Security
• Business Control
Center (CNN)
06/03/2012
From Contact to Knowledge Center in the e-Banking
Era
Customers
CONTACT CENTER = KNOWLEDGE CENTER
Multiple contact channels
Knowledge
Database
Virtual Assistant
COMPREHENSIVE
KNOWLEDGE
MANAGEMENT
Call
Mail
Chat
Socia
l net
VRU
Management
Improvement
proposals
Room in the
user’s Intranet
Quality
Contact Manager integrated with CTI
Telephony Platform
15
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Workflow
Manager
• Saving time and improving productivity and efficiency, through the automation of business
processes
• Improved process control through the standardization of working methods
• Process improvement, greater flexibility according to business needs
• Optimizing the flow of internal information with customers and suppliers
• Integration of business processes
Intelligent data
recognition
• Image cleaning: removing background color, auto orientation, automatic cropping, and
alignment ...
• Extract information from printed and handwritten text, bar codes and checkboxes marked
paper and electronic documents, structured (forms) or unstructured
• Allows separation and automatic classification of documents
• Online Learning: Training of data from the documents
Knowledge
Base
• Valuable organizational information is shared through the organization structure
• Reduced training time for new employees
• Retention of Intellectual Property of the work after the employee leaves the company
Workforce
Manager
BPO 2.0 – Back Office: Transformation Tools
•Optimize workforce allowing managers to make better decisions and take effective action
• Reduce staff costs
• Increase productivity
• Improve employee satisfaction
16
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
BPO 2.0 - Business Control Center (CCN)
The Business Control Center is the result of an
integrated vision control information:
• Defining alarms on defined PKI‘s for targets
tracking.
• Generating information tailored to different
levels of management.
• Combining data from different sources and
formats for analysis.
• Getting consolidated data that provides an
overview of the business.
• Establishing a graphical representation of
historical evolution.
CCN Objective:
Provide in real-time a comprehensive, clear
and quantitative view of the efficiency of the
operations, increasing the ability of business
managers to make decisions based on realtime information.
17
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Business Process Outsourcing
Challenges & Objectives for Banks in the E-Banking Era
BPO 2.0 - Operating Model in the e-Banking Era
Success stories
18
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Success Story #1
Initial Situation
• An internal consulting study of the Operations departments in Head Office concluded that those
departments received 146.000 calls per month about Financial operations from the office
network
• A pilot process done by HP in 50 branches stated that the total number of calls was around
74.000 per month
• Some users in the office network called directly to Head Office when they had doubts
Objective
•
•
•
•
Results
Target: Transformation of the Branch Support Service
+50% call
reduction
• Current number of calls: 35.000, -50% reduction in the number of calls
• Head Office was released from the CRM tasks (resolution of operations doubts)
• Control of the Service Level and Quality
• Typified Calls: Integrated ticketing system in the telephony solution that opens tickets for each
call and follow up and define their type
• Operating procedures updated
• Quality Control: Control system of formal and perceived quality of content
19
Know the real number of calls
Call reduction
Call tabulation
Centralization of the calls in the Branch Support Centre
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
Success Story #2
Initial Situation
•
•
•
•
•
•
Front office services in Head Quarters
Back office services decentralized in offices
Some services outsourced based on specialization of tasks (multi-vendor)
Knowledge leveraged in internal employees
Inability to predict operating costs
High cost of maintenance on the control of suppliers and knowledge management
Objective
•
•
•
•
•
•
Quantify and classify calls users and set reduction plan
Core activity in the office: Commercial
Unify back-office activities in processes, streamline, document and update
Reduce costs and make them variable
Create an information system for control and monitoring of service levels
Continuous improvement / technology investment
Result
Target: Back Office Centralization + Outsourcing = Cost Savings
Cost
Reduction
+20%
• Creation of Call Center operational offices
• Implementation of CRM tools, system of direct queries. (Faq's, Intranet), proactive systems
to reduce inputs
• Grouping of all back office processes and establishment of a plan of industrialization
• Implementation of a management tool for operational and business, both internally and at
suppliers
• Savings of more than 20% in all processes managed front and back
• The drop in revenue caused by reduced dynamism of economic activity, with the cost
variabilization has allowed costs to fall in proportion
20
© 2012 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
06/03/2012
KÖSZÖNÖM SZÉPEN
THANK YOU
GRACIAS