IBM Business Process, Rules, Events and Mobile in Action
1
Why shouldn’t opening a bank account or
filing an insurance claim be as easy as
buying a book online?
“An estimated $5 billion is up for grabs for the health insurer who figures out how to make
health insurance as simple as ordering a value meal from a local fast food joint.”
~ US Consumers Willing to Pay Five Percent More For Their Insurance
2
http://www.thetruthaboutinsurance.com/u-s-consumers-willing-to-pay-five-percent-more-for-their-insurance/
What does it mean to be easy to do business with?
“Amazon, Apple and Netflix provide the customer satisfaction benchmarks to
which banks must aspire”
~ Where is the ROI on Customer Experience in the Banking Industry?
Bank Systems & Technology, 2012
Banking:
Can I instantly add a family member to my credit
card account?
Insurance:
Can I report an accident on my mobile device
and automatically trigger a tow truck and taxi?
Healthcare:
Can I shorten hospital stays by one or two days
without compromising treatment quality?
Government:
Can I speed up passport control at the border for
pre-certified frequent travelers?
3
Your customers are no longer your customers
“The proportion of customers
planning to change banks has
grown by
70% since 2011”
~ Global Consumer Banking Survey 2012,
Ernst & Young
Homeowners in the 18-34
range changed insurance
carriers 2.5x more often than
those 51 and older
~ The Voice of the Personal Lines Consumer
Deloitte Research, 2012
“RETENTION IS THE NEW HOLY GRAIL”
~ Beyond Price:
The Rise of Customer-Centric Marketing in Insurance, McKinsey & Company, 2012
4
Effective business operations create superior customer experiences
Process today plays a critical role in driving customer experience initiatives…from
companies looking to overhaul customer service processes to companies seeking to
deliver more compelling experiences that incorporate big data analytics and real-time
guidance.
The Forrester Wave: BPM Suites, Clay Richardson & Derek Miers, 2013
Customer experience is the #1 factor in both customer retention and acquisition:
“Customer-Centricity in Retail
Banking”, Boston Consulting
Group, 2012.
55
The gap in business operations is widening
Time to open a new account in retail banking
5 minutes – best
76 minutes – worst
Availability of loan funds
2 days – best
37 days – worst
Time for conditional mortgage approval
15 minutes – best in class
4 hours - median
Source: Boston Consulting Group, The “New New Normal” in Retail Banking, 2012
6
What do you need from your processes in a customer-centric world?
Processes must be:
Instant
At Internet speed
47% of online bank account opening applicants don’t successfully
complete the process and fund their accounts
Seamless
Interconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up
from 21% in 2011
Insightful
Targeted and relevant
47% say it frustrates them when companies don't use the
information they have to make interactions and offers more relevant
7
New forces are disrupting how companies do business
$3.6B
spend by
2014
25%
productivity
improvement
47%
growth in cloud
processes
88
Mobile requires process reinvention
Forrester forecasts that companies will spend about $900 million on
mobile process reinvention services in 2013 and up to $2.7 billion in
2014
Socially-enabled processes drive increased
productivity
According to McKinsey, social technologies, when used within & across
enterprises, can raise productivity of high-skill knowledge workers by 20 to 25%
Cloud deployments force companies to
rethink their processes
Gartner ranks Business Process as a Service (BPaaS) as the
fastest growing cloud segment with 47% annual growth
€100B
Big data drives insight into processes
government
savings
€100 billion in operational efficiency improvements alone by using
McKinsey found government administration could save more than
big data
Marie Wieck launched Smarter Process to 7,000 people at Impact
IBM’s approach for reinventing business operations
- to enable greater customer-centricity
- in the age of mobile, social, cloud and big data
- while driving efficiency and optimization into
end-to-end processes
9
IBM capabilities for Smarter Process
Banking
Insurance
Healthcare
Industry and Functional
Consulting Expertise
Government
Operational Decision
Management
Telecom
Managed
Business Processes
Social
Mobile
Transport
Energy
Industry Solutions
and Accelerators
Big Data
Cloud
Business Process
Management
Retail
Case
Management
Operational Intelligence
Business
Intelligence
Predictive
Analytics
Enterprise Content
Management
Service Oriented Architecture & Integration
10
Master Data
Management
11
Customer-centricity requires a cross-functional approach
Strategic Leadership:
Chief Executive Officer
Chief Financial Officer
“
Successfully attracting
and retaining customers
requires companies to
think and act cross
functionally.
and cross- functional
business leaders
President
SVP/GM of Operations
Chief Transformation Officer
Chief Innovation Officer
Chief Customer Officer
Chief Risk Officer
…
~ Adam Klaber, Managing
Partner Emerging Markets,
IBM GBS
Chief Technology Officer
VP of Software Development
Enterprise Architect
IT Architect
and business unit leaders
VP of Claims Processing
VP of Retail Lending
VP of Commercial Loans
VP of Outpatient Services
VP of Power Delivery Services
The new triumvirate:
Operations, IT and Line of Business
12
”
and technology leaders
“
At HCF we have found
that delivering a superior
customer experience
requires tight partnership
between operations, IT
and the various lines of
business.
”
~ Stephen Nugent, General
Manager of Operations,
Hospitals Contribution Fund
Business experts can directly make changes to business rules
Credit card processors make
updates to credit authorization and
settlement rules based on business
conditions and regulations
Loan officers make updates to
new loan requirements based on
regulatory changes
Business users can make changes to the rules
that represent business practices, policies and
regulations
Insurance underwriters update
insurance coverage rules based on
changing risk conditions
13
Customs officers make updates
to import fees based on new tariff
schedules
Business process management yields significant benefits
90%
Lincoln Trust realized a 90% reduction in customer complaints
caused by process delays
improvement
Eliminated paper & lost documents; Estimated $3M in annual savings
300%
ROI
Reduced processing time for claims by 20-30 minutes each
3000
Banco Espirito Santo has 200 simple processes in production with
80,000 process instances in 6 months
Average users
per day
3000 average users per day running on the processes
$594
NYS Tax generates $594 million in cumulative savings over 5-year
period, with ROI of 1,461% over same period
Million in
savings
14
Horizon Blue Cross Blue Shield generated an average of 300%
ROI on each internal process improvement project
$117M in annual revenue; $1.45M in annual cost savings
Improve business efficiency for innovation with Smarter Process
Typical process problems
Account
Administration
Bring order to the chaos
Billing
Invoice
Reconciliation
Teams
ERP
Executive
Mgmt
Risk
Management
Teams
Customer
Service
Imaging
Account
Admin
Finance & Ops
Executive
Management
CRM
Rules
Rules
Customer
Service
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Rules
Finance
and Ops
 Inefficient working environment
 Automate workflow & decision making
 Incomplete or inaccurate data flow
 Reduce errors and improve consistency
 Inconsistent prioritization
 Leverage existing systems and data
 Lack of control over the process
 Streamline processes and initiate actions
 Poor visibility into process performance
 Real-time visibility and process control
Simple and intuitive process discovery and design
Browser based interface
empowers everyone to
participate in the discovery
and documentation of
business processes
Easily visualize and model
each process to help
understand bigger picture
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Collaborate on process design & execution through social interaction
Work together on the same
tasks via real-time
interactions; reach out to
experts to help complete
tasks; monitor and perform
ad-hoc actions through
activity streams
Collaborate with experts that
are currently logged on, or
create notes for view upon
return for timely completion
of tasks
17
Manage work and team performance
At a glance visibility into team work
Review work across teams
Manage work across teams
Drill down into individual team member
view
18
Optimize your process with visibility and analytics
Visibility into work-in-progress providing the
ability to take corrective action when necessary
Detect bottlenecks and performance
thresholds and display them visually
View into process performance
Analyze process performance to
uncover areas for improvement
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Operational decision management yields significant benefits
130
milliseconds
per transaction
43,000 transactions per minute; Responds to fraud threats within hours
8000
Visa Europe handles up to 8000 credit card payment
authorizations per second across Europe
transactions
per second
96%
60 rule changes in 13 months; Over 30,000 business rules
Swiss Customs achieves 96.5% straight-through processing
to validate electronic customs declarations
straight-through
processing
200,000 declarations daily; Over 700 business rules
300%
WorkSafe Victoria sees 300% improvement in payment times to
workers compensation treatment providers
improvement
20
MasterCard processes each payment transaction within 130
milliseconds per request
85% straight-through processing; Over 2,000 complex rules
Externalizing decisions from applications into business rules
Manage decision logic independently from applications
Without Decision Management
Application
Decision logic
 Rules written in software code cannot be
read by business people
 Hard coded rules are difficult to change
 Rules intertwined within applications
cannot be reused by other systems
21
With Decision Management
Application
Business Rules
 Natural language rules can be easily read
 Externalized rules are easy to change
 Centralized rules enable reuse and
consistency
Rules represent business practices, policies and regulations
Business Practices:
Fundamental operational tactics
in daily business
Example:
Healthcare Fraud Detection
Policies:
Mandatory instructions for
organizational safeguards
Example:
Insurance Risk Assessment
Regulations:
Externally imposed laws that
must be complied with
Example:
Sales Tax Collection
22
Business users can easily read and make updates to rules
Natural language syntax
Rule authoring made
simple with natural
language syntax
Automatic
completion
Capture complex rule
conditions in a Decision
Table
Equivalent action rule
23
Business users can easily collaborate on business rules
Automatic notification
The Activity Stream
enables easy
collaboration in the
context of the activity
Social communication post
Overview of the main
changes that occurred
between 2 snapshots
Side-by-side comparison
of project snapshots to
visualize changes
24
Simulate & Test rules for what-if scenarios
Input Data
Expected
Results
Rulset
Tests
25
25
Decision governance framework
Changes and deployments related to a specific release
Paul
Create a
Release
Williams & Averell
approve
the release
Release is In Progress
Joe Create
Comprehensive
Base Premium
John Create
Roadside
Base Premium
Bea update
Comprehensive
Discount
John Create
Roadside
Discount
John
Run a
Simulation
Abu
Deploy
For UAT
Abu
Run
UAT scenarios
Release is Complete
John
Create a
Snapshot
Abu
create a
Snapshot
A Baseline
Is automatically
created
Adam
Deploy
on prod 1
Adam
Deploy
On prod2
Release objectives are
documented
4
Release has status
4
Release has an owner
Rule management
activities occur in the
context of a release
26
To complete, a Release must
be reviewed and approved
Decisions on the go
RESTful API and IBM Worklight Adapter for mobile invocation of business rules
Decision Server now provides a Representational
State Transfer (REST) application programming
interface (API) for ruleset execution
Leverage IBM Worklight adapter sample to
develop, test and deploy business rules
applications for mobile devices.
27
Client device invocation enables end users to
leverage decision services taking advantage of
mobile specific features like geo-location and
device information
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Top 20 Smarter Process Use Cases: From #1 to #10
Top 20 1-10
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Credit & Loan Processing
Pension & Benefits Management
 A large US bank achieves faster loan origination
with 85% straight-through processing
 ASE speeds up unemployment benefit calculations
from 15 minutes to 10 seconds
Claims Processing
Eligibility Determination
 HCF reduces claims processing times by 93%
and increases market share by 56%
 Castilla y Leon regional government improves the
speed and accuracy of social services payments
Regulation & Compliance Management
Fraud & Risk Management
 Jet Airways reduced reporting errors and regulatory
errors by 80%
 MasterCard speeds up creating new fraud rules
from days to hours
Customer Care & Insight
Payment Processing
 Tata Sky on-boards 1M customers on its satellite
TV network in 1 year
 Visa Europe handles up to 8,000 payment
transactions per second
Underwriting
Healthcare Process Management
 Hiscox reduced development effort by 70% to create
a dynamic website for real-time insurance quotes
 The Ottawa Hospital speeds up patient flow
through the hospital improving quality of care
Top 20 Smarter Process Use Cases: From #11 to #20
Top 20 11-20
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Customer Self Service
Dynamic Pricing & Bundling
 Reliance Life’s self service portal reduced costs by
30%, enabling policies for low income households
 Accovia enabled travel booking engines create realtime dynamic packaging of vacation activities
Cross-sell & Up-sell
Training & Certification Management
 BNP Paribas targeted the right customer with the
right product and increased customer satisfaction
 Hanson Cements created a single view of the
current training status of all team members
Power Grid Management
Citizen Safety & Security
 MVV Energie enables customers to automatically
optimize consumption to minimize their power costs
 The City of Madrid reduced emergency response
times by 25%
Customer & Employee Onboarding
Order Management
 University Hospitals Birmingham reduced
recruitment cycles by 30%
 Yansha department store reduced order lead time
from 2.5 days to 4.5 hours
Tax Collection
Transportation Management
 NY State Tax saved the state more than $889
million, while allowing it to process refunds faster
 Odyssey Logistics & Technology increased the
productivity of its for logistics operations by 300%
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Smarter Process has received strong support from analysts
“With Smarter Process, IBM is the first megavendor to introduce an integrated collection of hardware,
software and services offerings designed to facilitate intelligent business operations.”
Gartner : Michele Cantara & Teresa Jones
IBM Smarter Process Expands to Transform Business Operations
“BPM in some form has been a significant feature of the previous two IMPACT events, and this year its
position was elevated even further – although IBM is now using a different term to describe it… Partly the shift
to ‘Smarter Process’ is a result of IBM being a victim of its own success regarding its use of the term BPM.”
Neil Ward-Dutton
Moving IBM's $100 Billion Needle with Smarter Process
“Big Data, cloud, social and mobile is driving change in the Smarter Process portfolio. In particular it
means that process efficiency is no longer enough to guarantee success – you need processes that
are effective also.”
James Taylor
Smarter Process and Decision Management Updates
“Smarter process seems to be more about raising the top line, leveraging continuous engagement with
the customer in the age of mobile, social, cloud, and big data… Smarter Process is an interesting
story, and one that IBM can tell better than anyone else.”
Bruce Silver Associates
IBM Impact Makes Way for Smarter Process
34
Gartner defines 10 core components of an iBPMS
IBM Smarter Process is 10 for 10!
Source: Gartner Magic Quadrant for Intelligent Business Process Management Suites, 27 September 2012
35
Why IBM for Smarter Process?
Install base of over 5,000+ active implemented customers and
800+ business partners
Leader in Gartner’s Magic Quadrant for Intelligent Business
Process Management Suites and leader in the Forrester Waves
for BPM Suites and Dynamic Case Management
#1 market share in Business Process Management (BPM) and
Business Rule Management Systems (BRMS) according to
Gartner and IDC
Global Business Services and ISSW established the Smarter
Process Center of Competency (CoC) to provide deep
expertise and create repeatable Smarter Process assets
36
Get started today!
 Trial IBM Blueworks Live
 Visit SmarterProcessDemos.com
 Attend a Proof-of-Technology Lab
 Hold a Discovery Workshop
 Plan a Quick Win Project
ibm.com/bpm
37
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Traditional Chinese
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Merci
French
Russian
Arabic
Obrigado
Danke
Brazilian Portuguese
German
Simplified Chinese
Japanese
38
Korean
A leading US bank brings customer-centricity to loan origination
Faster loan origination with 85% straight-through
US bank
processing
Challenges
 Onboarding new customers took several days for the
average loan
 Inconsistent customer experiences as employees
interpreted written policies differently
Solution
 Automate loan processing operations and increase
straight-through processing prioritizing human
interactions for exception flows
 Combine 17 different legacy systems together with IBM
BPM, IBM ODM and IBM ECM
Benefits
 Instant: Faster customer onboarding and a more
consistent customer experience
“Our existing loan origination process became a potential
obstacle to unifying operations. Now, the customer experience
is consistent and we can onboard new customer faster.”
~ IT Architect, A leading US Bank
39
 Seamless: Consolidated the operations of a new
acquisition and created a single process flow for all
loan processing centers
 Insightful: Automated decision making in 85% of the
loan approval process
Back to Top 20
Hospitals Contribution Fund achieves same day claims payments
Reduces claims processing times by 93% and
Hospitals
Contribution
Fund
increases
market share
by 56%
Challenges
 Settle medical and hospital claims on the same day
 Pay ancillary claims in real-time
 Move to a paperless claims management system
Solution
 Business Process Management and Business Rules
streamline claims processing
 Analytics enabled rapid identification of risk patterns
and trends
Benefits
 Instant: Reduced medical claims processing times by
93%, from 3 weeks to 1 day
“At HCF we have found that delivering a superior customer
experience requires tight partnership between operations, IT
and the various lines of business.”
~ Stephen Nugent, General Manager - Operations,
Hospitals Contribution Fund
40
 Seamless: Interconnected claims payment systems
that brings together providers and payers
 Insightful: Early identification of high claiming
members allows for preventative healthcare while
reducing costs
Back to Top 20
Jet Airways streamlines its compliance on carbon credit regulations
Reduced reporting errors and regulatory action by
80% Jet Airways
Challenges
 Comply with EU mandate to reduce carbon footprints
through the Emissions Trading Scheme
 Need to accurately measure carbon footprint and create
reports for faster decision making with audit trails for
transparency
 Accurately calculate individual aircraft emissions for the
entire fleet, using flight records and fuel usage data
Solution
 Using IBM Case Manager, Jet Airways automated the
calculations and analysis process to determine the best
options for buying carbon credits and allowances
Benefits
 Instant: Reduce time to compliance by 75%
“Calculations and predictions enable the airline to plan ahead,
allowing it to manage routes more efficiently, or to buy offsets
and credits when necessary, to help ensure compliance with
the EU ETS .”
~ Manish Dureja, Vice President of Marketing, Jet Airways India
41
 Seamless: Compared flight records and fuel usage data
contained in multiple systems ranging from internal aircraft
systems to regional navigation data and flight records
 Insightful: Instead of fleet-wide calculations, the solution
analyzed credits to the aircraft level and can even exclude
fuel used during maintenance activities
Back to Top 20
Tata Sky onboards 1M customers on its satellite TV network in 1 year
Achieved the fastest growth rate in the world for
Tata
satellite
TV Sky
Challenges
 Tata Sky sought first-mover advantage by rapidly
launching its satellite broadcast service in India
 Meet ambitious growth and market penetration goals
with excellent customer service
Solution
 Using IBM BPM and Message Broker, ISSW and IBM
Business Partner, TCS, built a customer onboarding system
that enabled faster service installation & immediate
activation
Benefits
 Instant: Launched the direct-to-home satellite TV service
within 6 months with over 1M activations in the first year
"Tata Sky is the first direct-to-home satellite company across
the globe to achieve the significant milestone of crossing one
million connections in the first year of our operations and we
are confident of achieving the eight million mark as well.”
~ Chakrapani Perangur, CIO, Tata Sky
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 Seamless: Provided seamless integration of customer
service across all channels including call centers, over-thecounter or via the web
 Insightful: The system customized content for local
markets to accommodate regional needs
Back to Top 20
Hiscox Insurance provides real-time online quotes
70% less development effort to create and maintain
Hiscox Insurance
a dynamic website for real-time insurance quotes
Challenges
 Manage the business policies for eligibility, underwriting
and rating to generate real-time, online insurance quotes
 Bring insurance products to market across different
channels
Solution
 Hiscox used IBM Operational Decision Manager to build a
central repository for rules governing eligibility,
underwriting and rating, which integrated with multiple
web and call center systems
Benefits
 Instant: Provide real-time online direct insurance quotes in
multiple US states – giving it a head-start on the
competition and triggering significant business growth
“The WebSphere solution gives us a single, comprehensive
platform for rule-driven business process management. Over the
long term, we plan to replace our legacy ratings systems with this
unified solution and harness our service-oriented architecture to
deliver even greater standardisation and control across all
business units, products and channels.”
~ Chris Waters, Head of Architecture, Hiscox IT
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 Seamless: Provide general liability, professional liability
and business owners’ policies to companies in 50 industries
across 24 U.S. states
 Insightful: Dynamically generate the questions on the
direct insurance quote website based on customer
responses
Back to Top 20
ASE improves customer service delivering unemployment benefits
Return-on-Investment
in 18 months
ASE
Challenges
 Reduce turnaround time of the daily benefit entitlements
process
 Improve customer service as a differentiator in a market of
similar products
 Improve agility and auditability to combat changing
regulations
Solution
 Implemented BPM and ODM through the Quick Win Pilot
program
 ODM automated the benefit calculation process, while BPM
separated the benefit process from legacy applications
Benefits
 Instant: Decreases time required to calculate
entitlements from 15 minutes to 10 seconds
“While working with IBM, it became apparent that the IBM
offerings would support our goal of remaining the marketleading unemployment insurance provider in Denmark.”
~ Carsten Molgaard, Chief Operating Officer, ASE, Denmark
44
 Seamless: Automated 80% of benefits calculations
while allowing IT to meet business needs
 Insightful: Reduce business risk by monitoring
complex decisions run through thousands of rules
Back to Top 20
Castilla y Leon regional government administers social programs
Challenges
Serves over 50,000 people including the disabled
Castilla
y Leon
regionalservices
government
and elderly;
Provides
child protection
 Dramatic increase in number of new applicants for social
services benefits under new Spanish law
 New, social services introduced, with precisely defined,
complex eligibility criteria
 Consistently apply the same criteria to all citizens
Solution
 Business rules based decision service to score applications
and assess eligibility
 Centrally managed content repository to give all case
managers access to the same information for timely service
Benefits
 Instant: Automates the processing of the paperwork,
allowing agency staff tofocus their time on exceptions
“By combining the strengths of IBM Software and services, we
are dramatically reducing the time to process benefits, allowing
the staff to put more focus on handling exceptional cases.”
~ José María Molina, Project Director, IT Department Social
Services Management, Junta de Castilla y León
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 Seamless: Fair decisions are applied through consistent
scoring and rules-based eligibility criteria across all
agency canters
 Insightful: Powerful, user-friendly interface allows case
managers to review, validate and maintain cases directly
to confirm compliance
Back to Top 20
MasterCard combats fraud threats in hours rather than days
43,000 payment transactions each minute and a
total MasterCard
of more than 23 billion transactions each year
Challenges
 Quickly detect the less than 0.1% of fraudulent payment
transactions from over millions of payments
 Change fraud rules dynamically to handle new emerging
threats
Solution
 Business rules based approach to implement fraud
detection using ODM
 IIB and Message Broker forms the messaging
backbone to carry high volume payment transactions
Benefits
 Instant: Faster fraud rule creation and deployment,
down from days to hours
“Every time we wanted to change or create rules, we had to
perform a full development cycle, getting the requirements ready,
testing them into regression. We had to find a way to do this a lot
more quickly. You can’t tell a bank, ‘There’s a fraud attack and we’ll
help you in a week from now.’”
 Seamless: Extends fraud detection visibility to several
business departments at member banks
 Insightful: Enables checks and balances in the fraud
management system, helping to mitigate risk
~ Johann Gerber, Group Head, Global Network Products, MasterCard
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Back to Top 20
Visa Europe unifies payments across 36 countries
Adapt to regulatory changes 3X faster; handle up to
Visa Europe
8,000 payment
transactions per second
Challenges
 Needed a scalable, automated payment authorization and
settlement system for payments across Europe
 Regulatory requirement to unify payments for the complex
European market with multiple currencies and 36
countries
Solution
 IBM Operational Decision Manager to simplify the creation
and management of over 30,000 rules
 Reduces the cost of maintaining business logic by over
25%
Benefits
 Instant: 3x faster time-to-market to adapt to new
regulatory changes
“While we could have continued to use the global Visa Inc
clearing and settlement platform, we saw the opportunity to
create a far more capable solution and seized it”
~ Justin Snoxall, VP, Head of Development Services, Visa Europe
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 Seamless: Support over 500 different payment
transaction types across 36 different countries
 Insightful: Simplifies the handling of over 10,000
validation policies and 20,000 fee calculations
Back to Top 20
The Ottawa Hospital provides patient-centric care
Goal: Top 10% performer in Quality of Care and
The
Ottawa
Hospital
Patient
Safety
in North America
Challenges
 Needed patient focused processes to improve quality of
care with better visibility
 Need to improve key metrics: Patient wait times,
Discharge rates, Instances of relapse
Solution
 BPM and Business Rules to create a ‘Circle of Care’
visual interface improves communication and
collaboration within the care team
Benefits
 Instant: Faster consults and treatment through the
electronic closed-loop consult service
“What we are doing is putting process orchestration and
process models in place, so that you can literally see the
characteristics of the hospital system… and you can then
influence that.”
~ Dale Potter, Senior VP and CIO, The Ottawa Hospital
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 Seamless: Improvements in patient flow through the
hospital and easy access to patient information
 Insightful: Benchmarking process execution to use
historic and real-time data to make better patient care
decisions
Back to Top 20
Reliance Life achieves 100% growth in new business
30% reduction in operating costs, enabling the
distribution
of low Life
cost policies to rural, lowReliance
income households
Challenges
A new entrant into India’s newly privatized life insurance
market sought to transform the way insurance is sold to
reach the masses.
Reach low income, rural customers
Solution
 Reliance uses IBM BPM, MDM and WMQ to build a
comprehensive self-service portal solution
 Lifeline, Reliance’s self-service portal, has lowered
operational costs by 30% while making the customer
experience more streamlined and transparent
Benefits
 Instant: Accelerated new product launch by 75% and
product development by 50%
“While they were all completely thrilled with the concept, the
only question in people’s minds was whether it could actually
be executed, since nothing like it had yet been done in the
Indian market.”
- C. Mohan, Chief Technology Officer, Reliance Life
Insurance Company Limited
49
 Seamless: Evolve business model for broader market
base for growth compared to competitors
 Insightful: 30% reduction in operating costs, enabling the
distribution of low cost policies to rural, low-income
households
Back to Top 20
BNP Paribas provides customers with personalized services
Targeting the right product to the right
BNP
Paribas
customer
to increase
customer satisfaction
Challenges
 Quickly construct grouped offers mapped to customer
requirements - providing home insurance with a mortgage
 Personalize fees based on the customer’s profile and
service channel - giving discounts to some clients
 Develop multi-brand customer loyalty offerings - waiving a
monthly fee for a specified period
Solution
 Business Rules define eligibility and target the right
product or offer to the right customer
 Master Data Management provides the single
repository of product and pricing information
Benefits
 Instant: Create new offers and make product changes in
near real-time.
“Every bank provides packages to their customers… But we
can really target the right product to the right customer. If you
can provide the best product for each customer’s needs, the
customer will be satisfied and will reinforce loyalty with the
bank…”
- Vladimir Milojkovic, BNP Paribas
50
 Seamless: Customers receive personalized offers
through any service channel: credit card renewals
automatically detect eligibility for premium services
 Insightful: Target the right product to the right customer
to increase customer satisfaction
Back to Top 20
MVV Energie creates a smarter energy market
Responds to the German governments challenge of
MVV
Energie
building
an “Energy
System of the Future”
Challenges
 Create a marketplace for energy allowing customers to
choose from renewable and local sources of power
 Enable customers to sell power back to the grid from
individual power generation
Solution
 GBS designed processes to support new, flexible
relationships among generators, distributors and
consumers of power
 BPM simplified billing and metering and IIB was used to
integrate grid devices and power meters
 Business rules in ODM determine the best power utilization
patterns for individual customers
Benefits
 Instant: Provide real-time information to consumers on
the cost and options for power
“With IBM’s experience and technology, we’ve made a major stride
toward realizing our vision of a smarter grid. We see the solution
as an enabler of smart grid services, a virtual marketplace where
all the key elements needed to build a smart grid can be traded.”
~ Dr. Britta Buchholz, Head of grid and plant planning,
MVV Energie AG
51
 Seamless: Allows customers to buy their power from
distributed local sources reducing transmission losses
 Insightful: Enable ‘Distributed cooling storage’ to
automatically schedule industrial refrigeration power
consumption during the time of day with lowest costs
Back to Top 20
University Hospitals Birmingham speeds recruitment times
Reducing longest recruitment cycles by 30%, with
Hospitals
Birmingham Challenges
goal ofUniversity
reducing by over
50%
 Recruitment processes at UHB could take up to 26 weeks
and involve considerable paperwork
 Needed to streamline recruitment processes to reduce
administration time and cut agency staff costs
Solution
 Working with IBM Business Partner Axispoint, UHB
reengineered their processes using IBM BPM and built
a new system for staff recruitment
Benefits
 Instant: Cut the longest recruitment cycles by 30% (from
26 to 18 with), with an ultimate target of over 50% (down
to 12 weeks)
““From the HR department’s point of view, we have introduced
a ‘traffic light’ RAG rating system of key performance indicators
for each stage in the recruitment process, so we can see which
areas are improving and which need more attention.”
 Seamless: Consolidated the systems used for
recruitment, so processes from finance, job advertising
and interviews are integrated for simplicity
 Insightful: ‘Traffic light’ rating system to assess KPIs to
improve each stage of the recruitment process
~ Suzanne Hartshorne, Deputy Director of HR at UHB
52
Back to Top 20
New York State Tax collects taxes more effectively and efficiently
5 year ROI of 1,461% with a cumulative benefit of
New
York
State Tax
$594M
over the
period
Challenges
 Combat sophisticated tax evasion techniques that can
cost the state millions
 Reduce processing time for the refunds of honest
taxpayers
Solution
 IBM BPM, Monitor, MDM and Global Business Services
work together to increase the state's tax revenue by
identifying which tax returns should be audited and
investigated, which refunds should not be paid and how
best to collect unpaid back taxes
 The solution Improves customer service and increase staff
productivity
Benefits
 Instant: Saved the state more than $889 million, while
allowing it to process refunds faster
“The system allows us to process refunds faster, getting the
money to the citizens of New York quicker.”
~ Tim Gardinier, Manager, Data Warehousing Unit, New
York State Department of Taxation and Finance
53
 Seamless: Process over 24 million business and
personal tax returns each year, collecting more than $90B
in tax revenue
 Insightful: Maximize the amount of tax revenue collected
Back to Top 20
Accovia enables dynamic packaging and pricing of vacations
Adapts to changing customer vacation buying
Accovia
behavior
– from travel agents towards self-service
Challenges
 Consumers demand more options and travel choices;
dissatisfaction with pre-priced vacation packages
 Create custom vacation packages through self-service
booking engines
 Quickly add new vacation options
Solution
 Business rules solution to dynamically manage flights,
accommodations and on-site vacation options
 Two tier customization that allows seasonal vacation
development and tactical daily price variations
Benefits
 Instant: Reduced the time required to build new
vacation products from months to weeks
“To offer real-time dynamic packaging, we needed to build our
solution on a foundation that reacts quickly to the market.
ILOG BRMS offers functionality that allows users to manage
their own rules using the routines of their web application.”
 Seamless: Increased customer satisfaction by enabling
booking engines to meet traveller demand for real-time
dynamic packaging
 Insightful: Increased competitive and pricing agility
~ Jean Marie Grange, Director of Architecture, Accovia
54
Back to Top 20
Hanson introduces an intuitive training management process
Simplifies cement manufacturer’s compliance to
Hanson
regulation
and improves safety procedures
Challenges
 Needed an intuitive process for requesting, managing and
budgeting employee training courses
 Easily distinguish between mandatory training for health
and safety and developmental training
 Needed the ability to schedule unplanned training requests
Solution
 Applied BPM to model, deploy and monitor new training
processes by orchestrating services from multiple
existing IT systems
 IBM business partner Axispoint worked with the HR
stakeholders to create the new training processes
Benefits
 Instant: Enables unplanned training requests to be
scheduled quickly and with more flexibility
“It is much better than the old training management system - The
whole process is at least twice as quick as before. If you are a
manager who has a large team reporting to you, you can now see
everyone’s training status in seconds, so it’s a huge improvement.”
 Seamless: Standardizes training requirements across the
company compared to a more departmental approach
 Insightful: Helps managers easily identify new training
that helps employee development
~ Gareth Price, Technical Director, Hanson Cements
55
Back to Top 20
City of Madrid responds to emergency situations faster
Reduces emergency response time by 25%
City of Madrid
Challenges
 Create an advanced emergency command center for the
city of Madrid
 Organize a unified response to incidents across all
emergency first responders
 Adaptable system that meets fast-changing needs without
disruption to vital services
Solution
 Emergency response processes are built and managed
using IBM BPM
 WebSphere MQ is used as the messaging backbone
that connects all responders together
Benefits
 Instant: Reduces emergency response time by 25%
“Commanders are now able to understand how complex and/or
multiple incidents affect the entire region. We have more flexibility
to innovate in our day-to-day operations, but we are also better
equipped for any major challenges the future may have in store.”
~ Fernanco Garcia Ruiz, Head of innovation and development,
Department of Security, City of Madrid
56
 Seamless: Enables end-to-end coordination of
emergency and municipal assets
 Insightful: Commanders can understand how complex
or multiple incidents affect the entire region
Back to Top 20
Yansha department store improves order management
Achieved an ROI of 9 months and reduced order
error Yansha
rates from 9% to 1%
Challenges
 Increase competitiveness against local retailers and new
foreign competitors
 Provide real-time visibility into operations with KPIs such
as order acceptance rate and on-time delivery rate
 Provides suppliers with information on customer buying
behaviour and sales trends
Solution
 GBS transformed order management processes with
over 1,800 suppliers
 BPM created workflows for purchase orders, shipping
notification, invoicing, payment and return of goods
Benefits
 Instant: Reduced order lead time from 2.5 days to 4.5
hours
“Exchanging our data and interacting closely will enable us to
respond to the market appropriately.”
~ Mr. Ai Jie Ma, Director of
Yansha Technical and Information Department
57
 Seamless: Connects 1,800 suppliers into a single
supply chain network
 Insightful: Created a value-based supplier pricing
model that uses new supplier performance metrics
such as profitability, selling trends and level of activity.
Back to Top 20
Odyssey Logistics provides end-to-end transportation solutions
300% increase in productivity for logistics
Odyssey Logistics
operations
Challenges
 Choose the best transportation options given each
customer’s unique needs across the globe
 Implement customized logistics processes to provide full
service to customers expanding globally
Solution
 Pre-constructed processes based on sets of common
activities that can be quickly customized for local needs
 Business rules reduce complexity by managing rate
structures, routing guides and carrier information
Benefits
 Instant: Exceed customer KPIs in areas of on-time
deliveries, invoice turnaround and error-free shipping
“Process innovation allows an organization like OL&T to go in
to a customer and figure out how to work with them versus
trying to overlay a very specific rigid model on our customers.”
~ Russell Marky, Senior Vice President, Global Business
Technology, OL&T
58
 Seamless: Provide clients with a unified logistics
experience regardless of local country conditions
 Insightful: 300% increase in productivity for logistics
operations and reduce errors by more than 10%
Back to Top 20