Customer analytics and business optimization drive higher customer satisfaction, revenue  profits
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  • Challenges For each challenge, provide an impactful and short statement that defines IBM’s approach to address this client’s goals and the benefits a client will gain with this approach. Change “Challenge 1” and so on to meaningful headings.
  • You can see that the top four challenges are data explosion, social media, growth of channel and device choices, and shifting consumer demographics. It’s easy to see why CMOs are facing a “complexity gap,” because all of these challenges make marketing much more complicated today that it has every been before. And it’s only going to get more complicated in the future.
  • So what is a smarter back-office able to do? It enables the kind of cross-organizational insight that translates into product innovation for competitive advantage It simplifies the payments infrastructure to save time and cost while removing risk. It maximizes transparency and security through risk-systems integration It is lean: non-differentiating generic functions are moved outside the bank to realize dramatic productivity improvements and cost reductions It exploits resource-saving solutions like virtualization and green technology, through IT renovation And, finally, it drives deeper and more accurate business and financial reporting across the enterprise.
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Customer analytics and business optimization drive higher customer satisfaction, revenue  profits Customer analytics and business optimization drive higher customer satisfaction, revenue profits Presentation Transcript

  • Customer Analytics and BusinessOptimizationDrive Higher Customer Satisfaction, Revenue & Profits © 2012 IBM Corporation
  • Agenda Current market or industry situation Our understanding of your goals How the solution addresses needs and challenges Solution description Why IBM? How to get started?2 © 2012 IBM Corporation
  • Current market or industry situation  Financial Institutions are focused on profitable growth by selling more products and services to the existing customer base to generate higher revenues.  Banks and Financial Markets firms also want to bring new products, services and bundles to market faster.  As the economy recovers, banks will need to improve their industry’s health and identify new business niches, customized services and innovative strategies to foster long-term growth. This will involve finding new, sustainable sources of revenue, while raising operational efficiency and developing a more astute risk strategy.  Banks must focus on raising capital, improving asset quality, and increasing profits. Banks will look to find new ways to grow revenue, while managing risk:  Redefining their business models via long-term savings initiatives in IT, shared services and front office/back office integration in order to enable lower cost structures  Specializing in areas in which they are strong, whether it be products, distribution channels or specific markets; and partnering with other banks to reach new markets  Segmenting clients by what they value and marketing to their unique needs  Reforming the risk management culture by replacing siloed implementations with an integrated, enterprise-wide risk management framework3 © 2012 IBM Corporation
  • Our understanding of your goals We understand the critical challenges in the financial markets today: LOB Pains:  Inability to maintain a single customer, account and product view across all channels  Inability to support customer-centric initiatives & consistent customer experience  Inability to integrate customer or product information across business units (M&A) or product lines (bundles)  Inability to gain insight to effectively market relevant offers to clients IT Pains  Inability to provide ‘single view’ of master data to business and applications and do so quickly  Inflexible systems, lack of trusted information and poor analytical tools and reports hamper IT’s ability to respond to business requests  Inability to showcase ‘SOA’ solutions and prove value to business users4 © 2012 IBM Corporation
  • How the solution addresses needs and challenges Customer Analytics & Service Optimization solution is focused on addressing these needs to drive higher customer satisfaction, revenue & profits. Provide timely, accurate Address changing Deliver results quickly and complete business requirements and efficiently information  Integrate quality data with  Start with the capabilities  Create custom-built domains Cognos for more in-depth they need now and grow for industry or company information over time i.e. Fast Track specific data models  Incorporate Master Data in  Streamline deployment  Integrate with a broad business analytics to capabilities spectrum of business generate greater insight  Provide an intuitive and processes for greater impact extensible user interface5 © 2012 IBM Corporation
  • Banking CMOs are eager to deploy tools and technologies to address growing the volume, velocityand variety of data. Banking Plans to increase the use of technology Percent of CMOs selecting technologies 50% Global Customer analytics 86% 81% Mobile applications 86% 80% CRM 82% 81% Social media 80% 82% Single view of customer 80% 70% Content management 77% 73% Tablet applications 77% 72% Predictive analytics 77% 66% Collaboration tools 70% 68% Campaign management 67% 61% Reputation management 67% 63% Search engine optimization 62% 62% E-mail marketing 58% 46% Source: IBM Institute for Business Value “From Stretched to Strengthened; Insights from the Global Chief Marketing Study” © 2012 IBM Corporation
  • Customer Experience and Analytics Customer-focused enterprises deliver a superior customer experience through global solutions while lowering operational expenses Organize Information Owned Media & Point of Sale Interaction Channels Capture Analyzeand Notice Web Branch and Derive Interaction Paid Optimization Earned Social Kiosk Media Media Media Media Marketing Brand Optimization Analytics Optimization Apps SMS Customer Data & Optimize Email Chat Gain ContentInteraction Insight Marketing Performance Optimization Voice Application IntegrationCapturing every customer moment of truth Marketing and selling based on customer eventsIn real-time across both staffed and automated channels, Progress from mass marketing to precise, event-basedand trigger appropriate actions marketing with customer information and predictive analyticsProviding consistent, cross-channel experience Engaging customers in insightful conversations7 © 2012 IBM Corporation
  • Leading enterprises place the Continuous feedback to recognize customer AND financial advisor new opportunities and trends in data, at the center of the business. information and analytics. Information sharing that Data and analytics that drive growth synchronizes the organization with by targeting and extending consistent messaging, relevant the value you provide. offers, and impactful service. client client Customers Insight that improves collaboration Financial Advisors Insight-rich processes that and visibility for your customers, Business Directors maximizes the effectiveness of each financial advisors, and partners. Customer Analysts customer interaction. Enterprise Alignment & Adoption CLIENT ADVISOR MARKET 17 3 1 Business Insight 2 2.5 16 3 2 15 1.5 4 1 0.5 Client Market Insight 14 5 Advisor 0 Insight to Planning, Insight for for Targeting and 13 6 Distribution Relationship New Business Optimization 12 7 Development Opportunities 11 8 10 9 Information & Analytics Foundation Current Analytics Enablement Target Analytics Enablement Solid Information Management Data, Information and Analytics Maturity Assessment Blueprint and Roadmap for Deploying the as an Enterprise Foundation Based on Business Consumption Most Impactful Data First IBM has a keen understanding of the analytics challenges faced by complex Financial Services companies – and how to solve them And we focus on how information is organized, consumed by the business, and delivered to customers at the front-line.8 © 2012 IBM Corporation
  • Client is looking to overcome embark on the planned growth strategy Current State Challenges Implications for Client Client is facing regulatory scrutiny and data integrity A comprehensive data environment that supports financial Regulatory concerns of reporting integrated data across aging legacy reporting across multiple dimensions for compliance and pressures systems analytic capabilities for a host of regulatory needs Business Need for robust business controls to ensure integrity of A comprehensive finance infrastructure to collect high value controls financial process subsidiaries and affiliates to a single financial system to ensure proper business controls Financial Need for reconciliation of multiple and complex data supply An single supply chain for financial data integrated across all reporting chains at various levels of financial detail. More than 7000 the source systems including subsidiaries with multi- reconciliation balance sheet reconciliation of nearly than 3000 are manual dimensional financial aggregates Accounting logic embedded in each of the 97 source Consolidated accounting logic in a central rules engine enabling Distributed systems resulting in inflexibility and high cost of ensuring flexibility and efficiency to manage changing financial reporting accounting logic consistency of accounting rules and meeting changing needs reporting requirements Opaque financial date environment precludes traceability, Integrated instrument level data repository providing drill down diminishing value of financial processes and key metric from summary level financial results to granular instrument level Traceability insights balances creating true financial transparency Lack of accurate customer and product level profitability Leverage high quality financial data to customer and product Profitability analysis to enable decision making for improving market profitability analysis increasing confidence and accelerated analysis share and book of business decision making, while at the same time reducing data gathering and analysis cost9 © 2012 IBM Corporation
  • BAO Methodology and AcceleratorsA smart financial institution is built around an optimized and integrated back officeone that leverages advancements in technology, global integration opportunities and acontinuous flow of data to cut costs, drive speed and further innovation. OUTSOURCING GENERIC FUNCTIONS PRODUCT INNOVATION ARCHITECTURE RENEWAL AND IT RENOVATION PAYMENT CONSOLIDATION BUSINESSS AND FINANCIAL REPORTING RISK SYSTEMS INTEGRATION10 © 2012 IBM Corporation
  • IBM will apply our key tenets to successful implementation Key Tenet Client Alignment Benefit to Client Flexible Integration SOR layer Staging layer Integration Access ICDW will be implemented on a Flexible Integration Architecture Architecture that will allow each LOB to build their layer layer System of Teradata Semantic Record Platform Model Extract Views operational and analytical capabilities without impacting Customer SOR files Subject Area Staging Load Ready Staging Application & Process Specific Views Global/LOB Views Clean Staging Landing Pad 1:1 Base Views Secured Views Data Classification ICDW other LOB data structures or containers, but still ensuring Default File Quality Business Lookup, COC, ICDW Validation Integrated SOR Check Transformations [………] Key Load files @ Generation @ Data Extract # @ Warehouse […] […] […] […] […] […] adherence to a single Logical Model and designate key Credit Risk SOR files #–Informatica Teradata Parallel @–Informatica Pushdown Optimization Technology architecture guiding principles Transporter Technology (Supported by Subject Area Common Components) Agile Development All ICDW initiatives will adopt a very rapid Agile and Business driven IT driven Business owned Program office/Project management Project initiation/ UAT planning/Deployment planning User Acceptance Test requirements (UAT)/Deploy Methodology Design Test planning Test prototyping methodology that will deliver smaller but faster functionality to business through a very iterative process Build Process (SCRUM) Sprint Review & Sprint Planning Sprint Burn Daily Standup Retrospective Meeting down Meeting Spr int Blocks Product Sprint Goal Shippable Product Bac klog List Back log Layer Public Area Discovery Area Supporting Tools Common Re-Usable Application BI, Data Access & Query Tools Interim Data Repository Individual Sandbox A common set of re-usable components or tools will be Components created that will assist each LOB leverage some of the key Application & Process Specific Views Extract Views Access Shared Dimensions and Metrics IDR_ RISK USERS (PRSN) TABLES E095823 1:1 Views of Integrated Tables VIEWS E983456 core functionality like audit log, controls etc thereby WORK E345678 In volved Party Locatio n Event IDR_MKT Arrangement Classificati on Resource I tem Integration Integrated Consumer Banking Data Model TABLES (INTG) VIEWS Load Ready Tables reducing duplication of effort WORK Subject Area Interfaces Staging Source System Representation of Data (ACQN) File System Landing Pad SOR System Of Record Data Support Services Some of the key functions will be performed by a central Types of Engagement/Services Line Of Business Card Services Student & Auto CBB Mortgage Bank Digital Marketing •Demand Management  Reporting & Analytics Developm ent  Business Requirements •Requirements •Priorities organization to ensure adherence to proper design  Exploratory Prototyping  Service Level Agreements Line Of Business IT • Semantic Development Car d Services Student & Auto CBB M ortgage Bank • LOB Data Mart  Reporting & Analytic Development  Framework & Universes principles and operational process (i.e. Architecture, Project  Demand & Program Management  UAT & Training Centralized ICDW Team •Develop Common  Architecture & Model  Development (Common Components & Semantic) Functions •Model Design & Management, Release Management, Infrastructure &  CDM Demand Mgmt.  Integration & Regression QA and Release Review Management •Cross LOB Initiatives Line Of Business IT •New Data Sources Car d Services Student & Auto CBB M ortgage Bank •Additional Integration  Development (SOR, Integration)  Functional /Unit Test •Functional/Unit Test Operations & Infrastructure Support  Infrastructure  Backup & Recovery  Network  Production Oper ations Operation Services)  Performance Test  Performance & Capacity Plan Parallel Factory-Based Gather information Extract process File validation TDQ checks Load tables The projects will be delivered through a Factory (breaking Delivery Model SOR layer System of Record Staging layer Teradata Platform Integration layer Access layer Semantic Model down a process into small manageable chunks into independent and cost effective manner) based delivery Extract Views Customer SOR files Subject Area Staging Load Ready Staging Application & Process Specific Views Global/LOB Views Clean Staging Landing Pad 1:1 Base Views Secured Views Da ta Classification ICDW model that will enable multiple projects to run in parallel with Default File Q uality Busi ness Lookup, COC, ICDW Validation Integrated SOR Check Transfor mations [………] Key Load files Data @ Generation @ Extract # @ Warehouse […] […] […] […] […] […] Credit Risk very limited interdependencies SOR files #–Informatica Teradata Parallel @–Informatica Pushdown Optimization Technology Transporter Technology (Supported by Subject Area Common Components)11 © 2012 IBM Corporation
  • Why IBM? Broad and integrated portfolio of information and analytics capabilities  Largest investment in analytics software and solutions with over $16B in acquisitions since 2005  Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation  Analytic Capabilities that scale from personal to enterprise to next generation systems that reason and learn  Decision management solutions that embed predictive analytics into business processes Proven experience accelerating time-to-value and delivering breakaway results  Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe  Proven solutions & use cases across industries and functions, from 1000’s of client engagements  Thought leadership and practical insights from the IBM Institute for Business Value  Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started  World’s number 1 IT captive financier. (IBM Global Financing) Comprehensive delivery options to compliment capabilities and lower TCO Broad range of implementation models, including:  System Integration, Consultancy, Transformation  Application Management Services  Appliance, Hardware, Cloud, Mobile Advanced technology and expertise applying innovation to real world problems  First-of-its-kind breakthrough innovations, including IBM Watson  World’s largest math department in private industry since 1960  Nearly 600 analytics patents per year and first in patent ranking12 © 2012 IBM Corporation
  •  Services professionals in 170 countries  worldwide access to skills Scalable, global delivery capability to fulfill any-size IT/business requirement and access IBM best practices seamlessly, no matter where banking operations reside State-of-the art, web-enabled access to IBM’s reporting and intelligence capabilities Flexible sourcing and delivery alternatives, customizable to fit each client’s unique business objectives Research focused on developing real-world, innovative business solutions for industry- specific needs The industry’s largest number of infrastructure experts13 © 2012 IBM Corporation
  • Appendix14 © 2012 IBM Corporation
  • Real-World Basel II SolutionsCase Study $110 billion domestic US Bank, South Eastern US footprint with business model sweet spot in mortgage and commercial lending Project Response ImpactEnterprise Basel II Credit Risk Project Centralized Basel II / Credit Risk  Project in implementation– source Goal: Transform legacy decentralized Management supporting systems lined up for 2006/7 migration bank consortium in enabled advanced Information Management solution  In addition to Basel II compliance, the credit risk management institution IBM brings solution will be used by multiple Accelerate transformation using IBM’s  Banking Data Warehouse Model functional and lines of business as Banking Data Warehouse and an and Leading Practice accelerators the system of record as well as the integrated reporting and analytics repository for LOB specific data  Business knowledge capability requirements  Practical Basel II implementation  Will be a source of reliable Requirement: Ability to provision data experience from an enterprise perspective but information for management and  DB2 regulatory reporting, portfolio support business model from a decentralized management perspective  BDWM management and front-line business users across the Commercial and Challenge: Legacy LOB data  Ascential DataStage Retail Banks management; across multiple legal entities, lines of business, functions and geographies 15 © 2012 IBM Corporation
  • Client ‘s Financial Systems High Level Target Architecture Platform Administration (Maintenance & Security) Reference Data (Internal & External) Source Interfaces Financial Reporting Systems Applications Data Integration Expense Operational Layer Sub Ledgers Reporting (DIL: IT container for (AP / FA)+ below business controls) Exec Financial Reporting Accounting General SEC / Regulatory Rules Ledger (GL) Extracts & Engine Reporting (ARE: Chart of Account Profitability & Assignment & Financial Data Store LOB DR/CR Creation) * (FDS: Financial Reporting Integration Environment & Instrument Level Repository) Reporting Financial Other Data Analytics Transform Detailed Calculation Engines Engines Integrated Risk (Instrument & (DCE: Funds Transfer Pricing / and Financial Other Attributes) Allocations / Other Detailed Financial & Risk Functions) Reporting Processing Control Functions (Reconciliation / Error Handling / Adjustments / Processing Monitor) * Initial instance is a Mapper of existing finance data to new chart of accounts. + Use of ERP software for PO, T&E, A/R and Project Costing (PC) to be determined.16 BB&T and IBM CONFIDENTIAL 16 © 2012 IBM Corporation
  • Business Analytics Factory Model IBM’s Global Delivery Model Project Resourcing Deliverables DI/Analytics Architects Project Mgt.Technical Leadership Reporting Analysts/Designers Requirements Reporting Architects Designs (Conceptual, Macro, Micro) Reporting Developers Onshore  Data integration Analytics Analysts/Designers  Data delivery (reporting) Data Integration Analysts/Designers  Data analytics Client Project Management  Data Repository Partnership On-Shore Coordinators Off-Shore Coordinators Analytics Developers Offshore Completed Source Code Reporting Developers Reports Data Integration Developers Maintained Applications Testers On-Going Support Maintenance Developers Application DBA’s A critical measure of success for every engagement is how we interact with the client on adherence to our joint standards, and how we transferintellectual capital. At the beginning of every engagement we work with and gain agreement on a joint project/program interaction model on how, who, and when we interact in the systems development lifecycle.17 © 2012 IBM Corporation
  • The findings in IBV’s paper builds on the themes from our earlier research To become client centric, banks will develop sophisticated insight to  Innovate their pricing models to be more closely aligned with client segments  Optimize their channels to maximize satisfaction while balancing services and prices  Leverage their vast reserve of information to reduce risk IBM Institute For Business Value IBV Banking Banking Thought Leadership Paper Sophistication and Simplification Globalization Specialization Insight18 © 2012 IBM Corporation
  • 19 © 2012 IBM Corporation
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