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Reinventing Business Operations with
Smarter Process
David MacDonaldIBM – Director, Smarter Process
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Source: IBM Global CIO Study 2011
Process reinvention is a top priority
Based on interviews with over 3,000 CIOs
of CIOs with mandates to transform the business
are looking to drive
better processes
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McKinsey Annual Survey
McKinsey December 2011 Technology Survey of 927 IT and non-IT Executives, December 2011
https://www.mckinseyquarterly.com/High_Tech/Strategy_Analysis/A_rising_role_for_IT_McKinsey_Global_Survey_results_2900
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New forces are disrupting how companies do business
Mobile requires process reinvention
Forrester forecasts that companies will spend about $900 million on
mobile process reinvention services in 2013 and up to $2.7 billion in
2014
$3.6B spend by
2014
Cloud deployments force companies to
rethink their processes
Gartner ranks Business Process as a Service (BPaaS) as the fastest
growing cloud segment with 47% annual growth
47% growth in cloud
processes
Socially-enabled processes drive increased productivity
According to McKinsey, social technologies, when used within and across
enterprises, can raise productivity of high-skill knowledge workers by 20 to 25%
25% productivity
improvement
Big data drives insight into processes
McKinsey found government administration could save more than €100
billion in operational efficiency improvements alone by using big data
€100B government
savings
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Process efficiency alone is no longer sufficient to ensure success
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Customer-centric business operations drive top line growth
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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 intoend-to-end processes
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 intoend-to-end processes
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InstantAt Internet speed
47% of online bank account opening applicants don’t successfully complete the process and fund their accounts
InsightfulTargeted and relevant
47% say it frustrates them when companies don't use the information they have to make interactions and offers more relevant
InsightfulTargeted and relevant
47% say it frustrates them when companies don't use the information they have to make interactions and offers more relevant
SeamlessInterconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up from 21% in 2011
SeamlessInterconnected & ubiquitous
In the US, mobile banking jumped to 32% of customers in 2012 up from 21% in 2011
What do you need from your processes in a customer-centric world?
Processes must be:
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Reinvention can happen in many areas of the businessTypical entry points for Smarter Process
Banking
� Loan Origination
� Fraud Management & Compliance
� Customer Care & Insight
Energy & Utilities
� Power Grid Management
� Energy Consumption Management
Insurance
� Claims Processing
� Policy & Benefits Management
� Customer Self Service
Travel & Transportation
� Online Ticketing & Reservations
� Travel & Hotel Pricing Management
Healthcare
� Claims Management
� Care Process Management
� Regulation & Compliance Management
Government
� Citizen Eligibility
� Safety & Security
� Countering Waste, Fraud & Abuse
Telecom
� Pricing and Bundling
� Product and Feature Management
Retail
� Retail Distribution Supply Chain Automation
� Customer Loyalty Programs
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The gap in business operations is widening
Time to open a new account in retail banking
5 minutes – best
76 minutes – worst
Availability of loan funds
2 days – best
37 days – worst
Time for conditional mortgage approval
15 minutes – best in class
4 hours - median
Source: Boston Consulting Group, The “New New Normal” in Retail Banking, 2012
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Banco Espirito Santo improves the banking customer experience
Challenges
� Achieve strategic goal to improve customer satisfaction; open a new bank account in less than 20 minutes
� Roll out new processes faster, so new products can be offered sooner
“If you seek to be customer centric, customer focused, it
requires you to be a very efficient provider, a very flexible
provider, on the back end in terms of your processes.”
~ Miguel Rio-Tinto, CIO, Banco Espirito Santo
Business users built and deployed over 850 processes
Benefits
� Instant: Business users built and deployed over 850 processes to production
� Seamless: Created 80,000 process instances with over 3,000 users per day over a 12 month period
� Insightful: Applied KPI metrics to improve SLAs across processes
Solution
� BPM solution to quickly deploy new products and services
� Business users directly manage the changes to the business process
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University Hospital of Antwerp expedites diagnosis of rare diseases
Challenge
� Needed the ability to treat rare diseases – those that affect fewer than 5 people in 10,000
� Many rare diseases are not encountered by most physicians making their diagnosis and treatment difficult
Solution
� Platform built with expertise from GBS allows for earlier, quicker and more accurate diagnosis by integrating medical expertise and data mining tools
� Using Business Rules and Predictive Analytics, diagnoses are generated more quickly and accurately through a predictive model based on known patient data
Improving the care and prognosis of patients with rare diseases using rules and analytics
"The improvement in the quick diagnosis and treatment of rare
diseases can mean the difference in the lives of patients.”
~Geert Smits
CIO, University Hospital of Antwerp
Benefits
� Instant: Improves the quick diagnosis and treatment of rare diseases
� Seamless: Solution can serve as a comprehensive, intelligent and dynamic knowledge base on rare diseases
� Insightful: A combination of rules and data mining tools provides both higher sensitivity and more specificity to the rare disease diagnosis
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UK Border Agency detects threats earlier
Challenges
� Threats to border security are growing while passenger traffic increases, driving need for early detection of risks
� Passenger risk assessment involves data and processes across Carriers, Port Authorities, Immigration, Police, Customs
“IBM has enabled us to identify threats earlier so that we can more effectively deploy resources at the border, and in
some cases prevent travel altogether.”
~ Director, Border Agency
Secure over 120 million passengers per year
Benefits
� IBM Global Business Services designed and deployed solution that enables data sharing and process automation between various agencies
� System handles over 120 million passenger cross-border movements per year
Solution
� Enables the agency to identify threats sooner so they can focus attention on high-risk situations
� A near-real-time risk assessment provides enhanced security and speeds up processing
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Customer-centricity requires a cross-functional approach
The new triumvirate: Operations, IT and Line of Business
and business unit leaders
and technology leadersand cross- functional
business leaders
President
SVP/GM of OperationsChief Transformation Officer
Chief Innovation OfficerChief Customer Officer
Chief Risk Officer
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VP of Claims ProcessingVP of Retail Lending
VP of Commercial LoansVP of Outpatient Services
VP of Power Delivery Services
Chief Technology Officer
VP of Software Development
Enterprise ArchitectIT Architect
Successfully attracting and retaining customers requires companies to think and act cross functionally.
~ Adam Klaber, Managing
Partner Emerging Markets, IBM
GBS
At HCF we have found that delivering a superior customer experience requires tight partnership between operations, IT and the various lines of business.
~ Stephen Nugent, General
Manager of Operations,
Hospitals Contribution Fund
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Strategic Leadership: Chief Executive OfficerChief Financial Officer
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Key IBM capabilities for Smarter Process
Enterprise Content
Management
Enterprise Content
ManagementBusiness
Intelligence
Business
IntelligencePredictive
Analytics
Predictive
AnalyticsMaster Data
Management
Master Data
Management
Service Oriented Architecture & IntegrationService Oriented Architecture & Integration
Industry Solutionsand Accelerators
Industry Solutionsand Accelerators
Industry and Functional Consulting Expertise
Industry and Functional Consulting Expertise
Managed Business Processes
Managed Business Processes
GovernmentBanking EnergyHealthcare TelecomInsurance Transport
Case
Management
Case
ManagementBusiness Process
Management
Business Process
ManagementOperational Decision
Management
Operational Decision
Management
Operational IntelligenceOperational Intelligence
Mobile Social Cloud Big Data
Retail
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Thank YouMerci
Grazie
Gracias
Obrigado
Danke
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