Orchestrating innovation, value and outcomes for your customers and business (PEX 2015)
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The deck is a talk that discusses how to have innovative projects, the importance of BPM, and best practices to support an innovative BPM.
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Orchestrating innovation, value and outcomes for your customers and business (PEX 2015)
- 1. © 2014 DST Systems, Inc. All rights reserved.©11 © Orchestrating innovation, value and outcomes for your customers and business Edmund Johnson, AVP, Architecture, Pacific Life
- 2. © 2014 DST Systems, Inc. All rights reserved.©22 The enclosed materials are highly sensitive, proprietary and confidential. Please use every effort to safeguard the confidentiality of these materials. Please do not copy, distribute, use, share or otherwise provide access to these materials to any person inside or outside DST Systems, Inc. without prior written approval. This proprietary, confidential presentation is for general informational purposes only and does not constitute an agreement. By making this presentation available to you, we are not granting any express or implied rights or licenses under any intellectual property right. If we permit your printing, copying or transmitting of content in this presentation, it is under a non-exclusive, non-transferable, limited license, and you must include or refer to the copyright notice contained in this document. You may not create derivative works of this presentation or its content without our prior written permission. Any reference in this presentation to another entity or its products or services is provided for convenience only and does not constitute an offer to sell, or the solicitation of an offer to buy, any products or services offered by such entity, nor does such reference constitute our endorsement, referral, or recommendation. Our trademarks and service marks and those of third parties used in this presentation are the property of their respective owners. Disclaimer The enclosed materials are highly sensitive, proprietary and confidential. Please use every effort to safeguard the confidentiality of these materials. Please do not copy, distribute, use, share or otherwise provide access to these materials to any person inside or outside DST Systems, Inc. without prior written approval. This proprietary, confidential presentation is for general informational purposes only and does not constitute an agreement. By making this presentation available to you, we are not granting any express or implied rights or licenses under any intellectual property right. If we permit your printing, copying or transmitting of content in this presentation, it is under a non-exclusive, non-transferable, limited license, and you must include or refer to the copyright notice contained in this document. You may not create derivative works of this presentation or its content without our prior written permission. Any reference in this presentation to another entity or its products or services is provided for convenience only and does not constitute an offer to sell, or the solicitation of an offer to buy, any products or services offered by such entity, nor does such reference constitute our endorsement, referral, or recommendation. Our trademarks and service marks and those of third parties used in this presentation are the property of their respective owners. Disclaimer ©
- 3. © 2014 DST Systems, Inc. All rights reserved.©33 Introduction - Agenda • Innovation Process • BPM & Innovation • Question and Answer
- 4. © 2014 DST Systems, Inc. All rights reserved.©44 Offering insurance since 1868, Pacific Life provides a wide range of insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans.
- 5. © 2014 DST Systems, Inc. All rights reserved.©55 We see this problem
- 6. © 2014 DST Systems, Inc. All rights reserved.©66 And we see this solution…..
- 7. © 2014 DST Systems, Inc. All rights reserved.©77 But we should have seen this …
- 8. © 2014 DST Systems, Inc. All rights reserved.©88 Innovation Process Problem Identification • What do we need to change? • What is the desired end state? Road Blocks • What are the things that need to be fixed? • What perceptions are you trying to overcome? • Is there a broader problem? Analyze • What things can we do to overcome the road blocks? • What does the intended audience expect in the solution? Prototype • Is the solution having the desired effect? • Where can we exceed expectations? • Can a technology shift improve the solution?
- 9. © 2014 DST Systems, Inc. All rights reserved.©99 Challenges Opportunity Ideas Strategic Direction Surveys Customer Feedback Big Data Trends Trade Groups Conferences Identifying the Problem
- 10. © 2014 DST Systems, Inc. All rights reserved.©1010 Roadblocks • A topic that no one wants to discuss • Life insurance can be complicated • Everything is on paper • Fill out a really long application • Talk about your medical history • 4-6 weeks to underwrite • Mobile is Cool • The future of life insurance is being sold by someone new
- 11. © 2014 DST Systems, Inc. All rights reserved.©1111 Analyze • Expand into additional life insurance markets • New products • New financial advisers • New tools to perform business anywhere • Faster and more transparent processing of life insurance applications • Improved internet presence • Leverage technology back into the enterprise
- 12. © 2014 DST Systems, Inc. All rights reserved.©1212 Prototype • Build multiple prototypes • Iterate on functionality/process • Iterate on user experience • Iterate on the combined process/experience prototypes • Analyze versions of the prototype by • Letting your colleagues try it out • Run it by potential partners • Focus groups with target audience • Perform proof of concepts on new technologies being adopted Build Prototype Get Feedback Analyze Again
- 13. © 2014 DST Systems, Inc. All rights reserved.©1313 © 2014 DST Systems, Inc. All rights reserved. ©
- 14. © 2014 DST Systems, Inc. All rights reserved.©1414 BPM is at the Center of Innovation • BPM is at the center of all solution. • Integrates with every system • Provides a complete view of all transactions • BPM must be ready to support innovative projects • Improvements to your BPM capability drives down costs • To make BPM successful, there are some best practices that help innovation succeed BPM CRM Portal Image Acquisition Images Repository Admin Systems Correspondence Generation
- 15. © 2014 DST Systems, Inc. All rights reserved.©1515 Keep Users in BPM Definition Keep users inside of their line of business application so they are not switching between applications Traditional Method Users must navigate multiple applications to perform job duties. Second searches and double entry of data is often required. Challenges • Slows down productivity • Increased training costs • Increased need to quality review work Innovative Method Use API, iframes, and deep links to embed data and access applications Benefits • Simpler and better experience • Reduced processing errors CRM API Admin Accounting deep links iframe
- 16. © 2014 DST Systems, Inc. All rights reserved.©1616 Definition Gradual adoption of business workarounds into processes flow Traditional Method Identify all exceptions ahead of time and build them into the flow Challenges • Must find all exceptions upfront • Restrictions may prevent business workarounds for missed exceptions Innovative Method Build the most common and painful exception into the workflow after going live Benefits • Solution is delivered quicker • Flexibility to deal with unknown • Frequent exceptions that are formalized can be accurately reported. Formalization of Exceptions Correct Adjust Correct
- 17. © 2014 DST Systems, Inc. All rights reserved.©1717 Process Synchronization Definition The ability for process flows to react to and wait for other process status changes. Traditional Method People watch for work and manually synchronize process (trolling). Challenges • Labor intensive • Error Prone • Time spent is not easily measured Innovative Method Processes automatically advance to next step based upon changes to state of other processes. Benefits • Reduced processing times • Nothing gets lost • Reduced labor Parent Case Waiting for A Child Type A Child Type D Child Type A Child Type B Waiting for B Waiting for C
- 18. © 2014 DST Systems, Inc. All rights reserved.©1818 Business Events Definition Notifies other systems and people of changes in status of a piece of work Traditional Method Scan for changes in data store or use database triggers Challenges • Business intent is lost • IT must identify and maintain triggers Innovative Method Add events to business process to trigger an event Benefits • Intent is clear since event is in process model • Business can control location of event by modifying BPM • IT still maintain subscriptions. Publish Event Topic System A Text or Email Process Flow
- 19. © 2014 DST Systems, Inc. All rights reserved.©1919 Common Tools/Integration Definition Build tools and integrations that cross business areas Traditional Method Build custom tools for each business area. Each group get exactly what they want Challenges • Increased development and maintenance • Varying levels of functionality available to different groups Innovative Method Build tools and integrations that are configurable and common across all teams Benefits • Simplified support and reduced testing since there are less versions • All areas benefit when a new tool or integration is added. Search CRM Search Image Archives Business Events Data Export Rules Engine Transaction Sync Revisable Documents BPM
- 20. © 2014 DST Systems, Inc. All rights reserved.©2020 Cookbook Definition A set of methodologies for solving common BPM problems Traditional Method Each project goes through an analysis to figure out how to model process. Challenges • Lack of consistencies between process models • Increased training • Increased maintenance • Longer delivery of project Innovative Method Have a set of patterns to model different types of work for teams to choose from (not invent) Benefits • Solution is delivered quicker • Reporting teams have easier time building dashboards.
- 21. © 2014 DST Systems, Inc. All rights reserved.©2121 Results By combining innovation with BPM best practices, Pacific Life has seen the following benefits: • Improved delivery time • Reduced maintenance • Improved processing productivity (time and accuracy) • Improved ability to measure and report on transactional performance BPM Innovation Common Tools Cookbook Formalized Exceptions Business Events Single UI Process Synchronization
- 22. © 2014 DST Systems, Inc. All rights reserved.©2222 Question and Answer
- 23. © 2014 DST Systems, Inc. All rights reserved.©2323 © Thank you! Edmund Johnson, Pacific Life | edmund.johnson@pacificlife.com
Editor's Notes
- Disclaimer slide is not to be removed. Requirement per DST Legal Department.
- Pacific Life is a financial service company. We are not a technology company. Our goal is not to create new technology. Our
- Road is curvy. See all the ruts in the picture. I’m sure its filled with pot holes and bumps. Everyone can easily recognize that it is bad and needs to be improved. No brainer to go fix it.
- So we pave it. Drive is quicker. Same path is paved, no ruts, experience is fantastic. Productivity improvements. Yipeee. We are on the path to success. Everyone is more productive. Now instead of taking 5 hours to drive the road it only takes 4. But did we take full advantage? Innovation is not just redoing what was already done with a slight improvement. Innovation is change. It is looking at the whole solution for a new way of running your business.
- If we had straighten the road, we could have driven the distance in 2 hours. Too often in IT, we do the minor improvement rather than really fixing the problem. This could be a result of budget or time. And sometimes, you won’t have the luxury of straightening the road. We don’t ask the hard questions. We don’t ask the why questions? How many of you have rewritten reports that no one uses? How many of you have had to ask why we still do a task? To get the best success out of the solution, you need to ask why? We recently spent some time going through this process.
- There are four key concepts to determine innovation. We will be looking at each of the 4 and talking about how Pacific Life went through the process and the things we learned. The first challenge is to find the problem. It sounds silly because sometimes it obvious. Other times, it is not. Roadblock are the things that are preventing you from succeeding from the challenge. Analyze is identifying solutions to the road blocks. Prototyping is proving the solution has the desired effect.
- I think this one of the most important steps of any innovation project. The biggest challenge is often trying to figure out what you are going to solve. Sometimes, its easy. Sometimes, its hard. But you have to identify the problem before starting on the solution. Otherwise, you might solve a different problem. And it might not be the one you are trying to solve. So to identify the problem, you take data from a wide variety of sources. It might be a customer survey, feedback from a single customer, identifying trends, presentations from trade groups or conferences. These are the things that provide the spark to help identify the problem. The problem can be stated in a variety of ways. They can be presented a challenge to a business condition. An opportunity for your business to expand market share. An idea of doing something different or more efficient. Or might be a new strategic direction for the company like entering a new market For us, it was looking at a new way to expand into a different segment of Life Insurance. We used a variety of sources from tends in data, to trade groups publications, and some customer surveys. The Prime project was born from it. The problem was to encourage Financial advisors who do not sell Life Insurance to begin selling Life Insurance. To make it easy for them. And push us into a new market.
- Roadblocks are the hurdles that must be solved before identifying solutions. For Pacific Life, we identified the road blocks for the Prime initiative. It revolved around improving the overall experience that a Financial Advisor goes through. If we delivered a better process. Maybe they would be more likely to submit Life Insurance. No one wants to talk about what will happen when they die. And no one thinks they will die. Life insurance products can be really complicated. They are many different types. Every companys’ policies are slightly different. Everything is on paper. And how many of you hate paper? The application process is really wrong. Have to talk about intimate details of your health Tablets/phones are the way people interact. I don’t usually carry a laptop unless I’m presenting. They are bulky and heavy and such a pain. Life Insurance is being sold by people who don’t sell it today because it is a pain.
- Growth!! Wanted to expand into new markets. We wanted more transactional business over the complex business that has been our sweet spot. We needed to make our products easier for people to understand. Not only easier for the insured but also easier for the financial advisor. We wanted to have products that a financial advisor who never sold life insurance would be comfortable using our application. And we wanted to make the processing of the life insurance to be much quicker and with better insight into the process. As a result, we rebuilt our entire workflow system to take advantage of automated underwriting and best practices in workflow with statuses integrated back into the portal. The site needed to support people doing business anywhere whether they are in their office using a computer or out at lunch using their tablet with the experience flowing between the two. We wanted the site to be something compelling for the users. It needed to catch their eyes and be the right platform for them to use. And after all that, we need to leverage this back into our existing business to drive the same benefits.
- Each phase of
- The enterprise revolves around BPM. It is at the center of the solution because it is tracking and managing everything. BPM is processing data from systems and providing updates to taking data from systems and pushing data to systems. If you have solution that doesn’t bypass workflow. You need to be rethinking the solution. Even if it is exception management. For the Prime Initiative to be successful, we focused on 6 key areas for BPM. These things may not seem that necessary, but these things are the basis for the growing success of BPM at Pacific Life.
- One of the key concepts that we like to talk about when designing BPM is to keep the user in their Primary App. This reduces the amount of application switching. We find users spend a significant amount of time switching to another system, logging in, and performing a search to find the work. If it is a task that happens over and over, the time spent is significant with no value. As a result, we look at 3 key ways to do this. API—bring the data into the app and save the data back out via an API. Our favorite is using REST Deep Links—Cheesiest way. A new window pops up and the user is taken to the window to make the changes in the native app. Quickest and most efficient to implement iFrame—Embed a ui directly into the app. The user does not realize where they are using another app.
- Another key concept that we talk about is Formalizing Exceptions. On my first workflow project, we were really concerned about covering all the exceptions in design. We were very careful to make sure that we found them all. And guess what, we were wrong on both sides. Some of the exceptions that we designed for never happened. And there were a lot of exceptions that we did not expect. So the lesson here is allow the flow to be flexible for exceptions when going live. After some runtime, start formalizing exceptions that are most common and have the biggest hit to efficiency. Another benefit of this approach is you also solve for the happy path. When an exception occurs, the goal is to get it back as quickly as possible on the happy path. More paths = greater complexity=greater maintenance=greater testing.
- Process synchronization is one of the places that yielded the most efficiency. The whole goal of workflow is to get the right work at the right time to the right person. If you have no way to signal between processes to make sure something is done before moving to the next step, then someone has to be watching and checking in on the progress on a regular basis. It takes a lot of time to do this. And worse yet, a human can make a mistake and miss a change in status.
- One of the major changes we made in the Prime Initiative is the concept of creating business events. In the past, these events were always detected by scanning for changes in the database. Really hard to move the location and worse yet, you have IT identifying when one of these events occurs. Not the business telling you. As a result, we let the business define these events in the workflow. The event are put into a queue where different systems can subscribe to them. We have subscribers that update our portal. We have subscribers that generate an email. We see this as a standard way to publish events for other systems to consume and is one of the key ways we integrate with systems outside of BPM.
- One of the goals that we have is to build common tools to solve some of our most common problems. They are tools like Searching image archives Creating and editng revisable documents like Word and Excel. Auto attaching documents Creating other transactions as a result of a status But all teams leverage these common services. And when we add a new one, we try to get all business areas to leverage it.
- Why solve everything twice? Why re-invent the process? At Pacific Life, we have a cookbook on how to implement solutions in BPM. We create consistencies between process flows and we speed up the design time. The cookbook has ways to organize work, ways to implement integrations, and ways to build process flows. The best part is that teams who build reports know how to look at the data.
- Prime spent a lot of time doing the four phases of innovation. During the period, we worked with a lot of partners to help shape the solution. But at the end of the day, BPM made all the innovation possible. We developed these 6 best practices into design methodology. We partnered with the operational leadership to help them understand that not only was this an investment for Prime. But theses practices were the future foundation of work and all teams using a BPM would benefit. This made them buy into the long term vision. We are now bringing the last business units onto the common platform. Each one is smoother and with each one, we add to the overall BPM solution. Those additions benefit all the teams that are already on the platform.