Enterprise data grows over 65% a year. Last year, non-productive information work—reformatting, data entry, and so on—consumed more than US$1.5 Trillion. Yet companies continue to pour billions into human-driven paper-to-digital processes.
The reason is simple: paper works. It’s simple, and it carries most of an organization’s data. Yet fast, correct extraction of data from paper is essential, particularly for heavily regulated industries such as insurance or government.
Captricity CEO Kuang Chen talks about New York Life’s work to better scale digitization across its forms while improving data quality and turnaround times.
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Unlocking the Data in Paper - Strata+Hadoop World 2015
1. Unlocking the Data in Paper
A Case Study of New York Life
O’Reilly Strata, February 18, 2015
2. A story in two acts
1. From Ugandan health clinics to the Fortune
100
• A story of reverse technology transfer
2. Lessons for organizations that serve everyone
• A case study of New York Life
3.
4.
5.
6.
7. Act 2
1. From Ugandan health clinics to the Fortune
100
• A story of reverse technology transfer
2. Lessons for organizations that serve everyone
• A case study of New York Life
8.
9. “Going paperless” considered harmful
• Paper often still the most
appropriate tool for the job
– Paper as transport, not storage
• Mission critical processes require
non-disruptive onramp
– Focus on data, not process change
12. For the largest insurance firms
• Manual data entry essential to
business process
– Will continue for the foreseeable future
– The main driver: mission-critical
transactional processes
• Challenges
– Poor data quality and turnaround times
hurt top and bottom line
– Millions of customer transactions on
paper each year $$$$
– Expecting slow “self-serve” adoption
14. First production workflow
• Automated manual entry for business reply cards
– Across hundreds of different templates / versions
– Accuracy to 99.5% (vs. low-90s% manual entry avg.)
– Turnaround-time to hours (vs. days)
– Significantly reduced cost
• Integration
– Custom format, SFTP, nightly batch sweep into mainframe
Data quality, Turnaround time, Cost
15. PLEASE PRINT OR TYPE APPROVED OMB-0938-1197 FORM 1500 (02-12)
Application Form Claim Form
Payment
Authorization
Expansion across the enterprise
Customer service efficiency, Analytics, Fraud detection
16. 27%
25%
48%
% Paper volume by transaction
Top 5 Transactions Next 10 Transactions
Other 240 Transactions
• Paper transactions drive dozens to hundreds of
backend applications
– How can internal IT scale to integrate?
• Each system’s business logic distributed across
– DDL, web-service code, paper form instructions,
workers’ heads
– How best to gather, curate and share business logic?
What about the next hundred workflows?
Data-variety & Time-to-value challenge
17. What about the next hundred workflows?
• Fail-safe vs. rip-replace
• Distributed vs. monolithic
• Standards + open source
Non-disruptive onramp vs. IT transformation
18. What about the next hundred workflows?
“Design the Future” contest playbook
1. Educate enterprise IT staff
2. Form cross-functional teams
3. Quick iteration
4. Engaged executive review board
5. Focus on culture-change +
communications
19. Data access still matters
“The best big data tools out there don’t matter if we can’t get to the
data in the first place.”
—Taha Kass Hout, Chief Health Information Officer, US Food and Drug Administration
@kuang | kuang@captricity.com | captricity.com/jobs
Editor's Notes
Thanks
Excited to be here at strata and share and important story about paper and data access with you…
A story in two parts
Part 1: Ugandan health clinics & reverse technology transfer
Part 2: Lesson for organizations that serve everyone & the NYL case study
A story about reverse technology transfer
Starting in 2008, I worked as a volunteer data analyst at an HIV/AIDS program in Tanzania
Where community health workers like these form the backbone of their health system
CHWs provide services like making sure children get vaccines
They use paper forms because it’s the most appropriate technology
It’s cheap, it doesn’t break or need batteries
The following year, I got to test this in Uganda, while set up CHW program
This is Dr Emma, Village doctor to a over 100,000 people
I siphoned data into Excel and taught him Pivot Tables
His new weekly reports triggered amazing action, with him asking questions about irregular infant mortality, and staff’s performance
Chart in his clinic… pic worth 100 words should tell you two things
Data like this chart helps them focus limited resources
It’s hard to get data out of paper forms
Look at the lengths they went through to have a bar chart
When I saw this I decided to dedicate my career to arming the Dr. Emmas of the world with data….
And here is act two…
Slum in an African Village? No, this is the US VA
This is the infamous image of the VA backlog of benefits claims.
Peak of 617K cases in 2013
That’s 600k data driven decisions unmade
Here, It’s easy to forget about these situations
What happened?
It’s actually because they tried to go paperless, again and again
New systems are not designed for all possible users
Throwing out legacy processes often results in project failure
Lots of valuable data remains on paper
Emphasis on paper often best tool for the job
----- Meeting Notes (2/16/15 16:34) -----
Remove the top bullet, use the 2nd level
Once i lifted my head from the my dissertation… i realized there are so many orgs that serve everyone
When this happen there is usually a paper form in play and somebody needs to address these problems
…
Not showing you these logos to impress you... well maybe I am
But... what these orgs share in common is that they have laws/legal mandates/missions charitable or otherwise to make sure everyone is served
Once i lifted my head from the my dissertation… i realized there are so many orgs that serve everyone
When this happen there is usually a paper form in play and somebody needs to address these problems
…
Not showing you these logos to impress you... well maybe I am
But... what these orgs share in common is that they have laws/legal mandates/missions charitable or otherwise to make sure everyone is served
Data entry is essential and not likely to change quickly because …
Each organizations receives a minimum of 30M+ “transactions” / yr. requiring data entry
These organizations traditionally move more slowly than in other industries and those looking to innovate are just starting to do so now
Paper remains the primary driver because:
An average of 50% of these transactions are submitted by paper
Insurers continue to serve EVERYONE … including those who don’t have ondemand access to internet connections and smartphones
The results of manual data entry aren’t meeting the needs of insurers because:
Baseline accuracy rates produced by manual data entry is between 80%-95%
Turnaround time for a standard customer form ranges between 3 – 14 days
Budget for manual data entry services range from $10-35M / yr.
Scaling the costs of legacy solutions is costly and creates risk for insurers
Increase data accuracy
More leads = more revenue
Mainframe integration = point of pride
Orgs… rely on vendor flexible to meet them where they are
Our success led to rapid expansion to highest volume forms
Application form. Daughter.
90+% of applications are still paper, aging broker population
These forms are not going away
Better turnaround time to match rising customer UX expectations
Payment auth:
Mission critical form: accuracy+TAT
Multi channel approach
Claims:
Submitted with supplemental documents, signature
Underwriting group more data to work with
Detect fraud, and keep costs down
So after the 1st 5, or 10 top transactions 50% of vol
What about the next hundred?
Very long tail of transactions that need backend integration
Burning question: How can IT scale to integrate?
How do you curate and gather BL
That’s the important question
One way is to bus in the IT transformation consultants
18mon as-is, and 36 mon impl is too long to wait and too costly to scale
NYL wasn’t going to settle for trad. IT transformation
They wanted:
Fail-safe: cap means non-disruptive onramp focused on data, not process change
Distributed: allow line-of-business to curate business logic + self-serve their own integration
Standards based: efforts can be reused across enterprise and sector (ACORD)
NYL created a special internal program to help identify new areas within the business that Captricity can help
1500 enterprise IT staff
6 teams
4 week sprints
BIO, Chief Architect and SVPs sat in
I would have never thought 170 old org could be so agile
These days, we’re all worried about the data deluge
But if there’s one thing to take away… is that data access still matters
But for organizations that serve everyone,
it’s not so much about big data tools, but access to data they need, when they need it
At Cap, our vision is to democratize data access