Transcript Opt - 1

Managing Information
as a Service
Ananda Bose
Industry Solutions Manager -Insurance and
Capital Markets
Happy customers have a significant impact on revenue
and profitability
Financial Impact
Products per
Customer
14%+
Underlying Contributors
Profitability of Products
Held (index)
21%+
2.17
Trust their
bank
83%
88.3
73.1
1.90
Responsiveness to
Offers
5x
17x
52%
17%
3%
Antagonists
Advocates
Antagonists Advocates
Antagonists Advocates
Antagonists Advocates
Source: 2006 IBM CFE Retail Banking Study, n=1615 customers: 1) Calculated average number of products held by consumer reported accounts held, 2) Weighted profitability index created for
each retail product based on industry product profitability IBM project experience, 3) Responsiveness is a combination of customers who strongly agreed with ‘bank understands my financial goals
and ‘bank provides relevant offers’, 4) Trust based on customers who strongly agreed with “I would trust my bank to manage my information on behalf of other companies’
However there is a wide gap between expectations and
reality
Customers expectations are
Brand promise and customer
expectations
Experience reality
not met:
• “Does service exist in today’s
banking?”
• “My bank bas been bought out 3
times in 33 years… just too lazy to
go elsewhere”
• “All banks are out for themselves,
not to help people”
• “They can’t get my savings account
corrected, but take $12 out every
month anyway”
• “This bank took over the previous
bank which I loved. A customer
was more than ‘just a number”
GAP
Source: 2006 IBM Customer Experience Research, Qualitative Consumer Research
-- Consumer Quotes from
IBM Market Research
Most firms do not really understand their
customers
A large majority of company decision makers have a generalized or superficial understanding of
their customers
Customer
Understanding
21%
Advanced
53%
Generalized
26%
Superficial
or Absent
Current IT landscape inhibits insight
Channels
Branches
ATMs
Customer
Call Centers
Internet
Relationship
Managers/
Agents
Business Units
Retail
Banking
Mortgage
Lending
Wealth
Management
Life
Insurance
General
Insurance
Data
Systems
DB
App
DW
CRM
DB
App
DB
App
DB
CRM
DB
App
DB
App
DW
CRM
DB
App
DB
App
DB
CRM
DB
App
DB
App
DW
CRM
DB
App
Core
Systems
CBS
Core
Systems
ODS
Core
Systems
CIF
Core
Systems
Partners
Core
Systems
How did we get here?
Silos of applications…
Each with its own stack of similar services
Business Logic
Business Logic
Business Logic
Business Logic
Business Logic
Issues:
User Interface
User Interface
User Interface
User Interface
User Interface
 80%
of effortProcess
goingMgmt
into basic
plumbing
high value
logic
Process
Mgmt
Process
Mgmt vs.Process
Mgmt business
Process Mgmt
 Difficult
Master
Data
to integrate,
maintain,
andMaster
inflexible
Master Datacostly to
Master
Data
Data
Master Data
 Integration
InconsistentInfo
performance,
scalability,
Info
Integration
Info Integration reliability
Info Integration
Info Integration
 Security
Inaccurate andSecurity
incomplete information
for decision-making
Security
Security
Security
Session Mgmt
Session Mgmt
Session Mgmt
Session Mgmt
Session Mgmt
Data &
Content
Data &
Content
Data &
Content
Data &
Content
Data &
Content
Billing
Inv Control
Accts Rcv
Sales
Other Apps
Information as a Service: Moving From a Project-Based to a
Flexible Architecture (SOA)
Insight
Tools & Applications
Processes
People
Insightful
Relationships
Standards-based
Data &
Content
e.g., XQuery, JSR170,
JDBC, Web Services...
Business
Context
Information as a Service
Optimize, Virtualize, Integrate, Accelerate
Master Data, Entity
Analytics, Decision
Portals, Executive
Dashboards,
Industry Data Models
Extracted or Real-time
Heterogeneous Applications & Information
and
more…
DB2
abc…
IBM
Content
Manager
xyz…
Oracle
What does Information as a Service deliver?
Information as a Service is a set of SOA
services that enables…
5… Information Integration
4… Master Data Services
3… Dynamic Warehousing
2… Integrated Content
1… Reusable Services
SOA makes it easier to access and use consistent information
With SOA, information is
consolidated from
multiple sources
Information
Integration
Without SOA, information
remains locked in its silos
Information as a Service
Optimize, Virtualize, Integrate, Accelerate
Heterogeneous Applications & Information
DB2
IBM
Content
Manager
xyz…
Oracle
Which approach do you think provides better information for decision making ?
SOA effectively manages master data in heterogeneous environments
Master Data
Management
With SOA, customer and
product data is available
to all channels
Web Site
Contact Center
Store
Without SOA, each business unit
maintains it’s own view of
master data
Web Site
Contact Center
Store
Customer-Centric Business Services
Profile: J.Smith
Home Phone
Address
Work Phone #
Address
Husband
Related Accounts
JSmith
@ibm.com
Mrs. J.Smith
Ph: 905 711 2369
Which approach do you think improves customer and supplier satisfaction ?
Mrs. J.Smith
11 Winding Lane
Toronto
SOA delivers Dynamic Data Warehousing
With SOA, analytical insight
is provided from both the
data warehouse and
operational systems
Dynamic
Warehousing
Without SOA, you get to make a
decision based on either historical
or real-time information
Information as a Service
Optimize, Virtualize, Integrate, Accelerate
Operational
DB2
IBM
Content
Manager
xyz…
Targeted information for
dynamic and active insights
Data Warehouse
Oracle
Too much information ? Not know
what is important ?
Which approach do you think gives you a better basis for decision making ?
SOA actionable insight from unstructured information
Content
Services
With SOA, unstructured data
(eg: info from memos) can
be integrated with
operational data
Media
Without SOA, your emails and
notes get lost in the clutter
E-mail
Documents
Reports
Operational Data
Do you think regulatory compliance and risk management is easier if you have simultaneous access to
structured and unstructured content ?
SOA helps businesses agility
Reusable
Services
With SOA, manageable information
is made available to every process
in a standardized way
Without SOA, tight coupling of
data to workflow locks you in
How do I deliver
business
flexibility ?
Information Services
Which approach gives you more you get the flexibility to change
information sources and formats ?
Examples of Information Services
Data
Validation
Services
Data
Cleansing
Services
Data
Transformation
Services
Partner Data
Integration
Services
Validate records
against defined business
rules
Cleanse & match
inbound records to
existing data
Transform and
align data from
different sources
Electronic integration
with partners
SWIFT, EDI, HIPAA
Operational
Data Services
Unified access to data
in files, databases,
and applications
Analytical
Data Services
Unstructured
Data Services
Master
Data Services
Access to
analytical data for
closed-loop processes
Access to
unstructured information
alongside structured data
Access to and
integration of
master data
Projecting significant savings from storage requirements
Challenge
• Draw additional value from existing database and
storage investments
• Increase productivity of database administrators
• Implement a platform that manages risk and compliance
Solution
• Optimized data platform by upgrading to IBM DB2 9
data server
Business Benefits
• Expects an initial cost savings of
US$2 million with additional savings
of US$500,000 each year
• Took advantage of the deep compression capabilities of
DB2 9, as well as features that improve performance
• Reduces storage requirements by
increasing compression rate to 83
percent on the data warehouse tables
• Installed Label Based Access Control feature of DB2 9
to manage risk and compliance
• Improves system performance,
yielding faster query responses
• Protects data and nets additional
savings with improved security
Timely,accurate information delivered to officers at the scene helps fight crime
Challenge
• Derive insight from billions of records and reach
detectives within minutes, not days or weeks.
• Correlate arrests, complaints, summonses, homicides,
shootings, locations, 911 calls
Solution
• IBM and Business Partner Cognos created a Crime
Information Warehouse solution that provides the
technology needed to integrate departmental data
across different systems, resulting in a single source
for actionable information that better addresses
policing needs.
• NYPD can now analyze and integrate all information
assets across structured and unstructured data
sources in real-time
Business Benefits
• All forms of information delivered in a
timely fashion
• Insightful relationships revealed
through advanced analysis
• Timeliness means the difference
between life & death
• Information reaches detectives within
minutes, instead of days or weeks
Improving processing efficiencies and customer satisfaction
Challenge
Business Benefits
• Need to leverage IT investments and optimize
operational efficiencies and control across Europe,
Middle East and Africa
• Cost savings of around $5 million
• Need to be more responsive to customer credit
applications and improve customer satisfaction
• Centralized data delivers faster
response times & better customer
service
Solution
• FileNet provides Citigroup with a strategic platform for
managing content and business processes. Handling
up to 100,000 images, 1,000 COLD reports & more than
1.5 Gigabytes of data every day.
• Citicard application processing time
cut from over 2 weeks to just 2 days
• More efficient use of manpower
resources
• Clear ROI as all divisions can leverage
the ECM technology
• Centrally managed, enterprise-wide
solution delivers timely, accurate
information
Migrating to a complete services-oriented architecture
Challenge
• Multiple disparate legacy systems (30+)
• No customer view or integration over channels
• Long conversions to get customer information from
acquisition systems
Business Benefits
• Strategic decision made to move to a pure service
oriented architecture
• Policy issuance business process now
has a single view of the customer
Solution
• IBM WebSphere Customer Center acts as the customer
administration access layer within MetLife’s SOA,
complemented by IBM WebSphere Application Server
and IBM DB2 Database Server.
• IBM Websphere Customer Center’s XML interface
integrates with MetLife’s EAI layer.
• Phased roll-out to Group Life, Property & Casualty,
Brokerage and Banking
• IT costs are reduced as re-use of
application development is facilitated
through a SOA
• Faster time to market with new services
and offerings due to real-time availability
of key data
Facilitating cross-sell opportunities across business units
Challenge
• Consolidate, enable and share enterprise customer data
from their four Strategic Business Groups: Automation
and Control Solutions, Aerospace, Specialty Materials,
and Transportation.
• Facilitate cross-Honeywell activity resulting in new
revenue growth.
Solution
• IBM WebSphere Customer Center provides the
foundation for a business-wide common customer
database.
• Identification of master data and summary sales
information for all Strategic Business Groups.
• IBM software provides data stewardship, governance
and integration.
Business Benefits
• Business case shows $50M + revenue
growth opportunity by consolidating
cross Honeywell SBGs’ customer data
and creating a mechanism to share
customer information
Thank you