Customer Centric Organisations(1)


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Customer Centric Organisations(1)

  1. 1. Delivering the Customer-Centric Organization Table of Contents and OverviewCustomer-centric organizations are concerned about shrinking volumes ofbusiness, stiffer competition and ever more demanding consumer expecta-tions which have increased pressure on the bottom line.The ability to successfully manage the customer value chain across the lifecycle of a customer is the key to the survival of any company today. Busi-ness processes must react to changing and diverse customer needs and in-teractions to ensure efficient and effective outcomes.This important book looks at the shifting nature of consumers and theworkplace, and how BPM and associated emergent technologies will play apart in shaping the companies of the future.BPM’s promises are real, but the path to success is littered with pitfalls andshortcuts to failure. Best practices can help you avoid them. If you are justembarking on using its methods and tools, these authors have a wealth ofexperience to learn from and build on.Whether you are a business manager or an Information Technology practi-tioner, this special focus on Customer-Centricity will provide valuable infor-mation about what BPM can do for you—and how to apply it. Table of ContentsFOREWORD: TRANSFORM BUSINESS PROCESSES THROUGH BUSINESS ANALYTICSClay Richardson, Forrester Research, USAIf you’re reading this, odds are you’re either knee-deep implementing an en-terprise-wide BPM program, or you’re exploring the potential impact andvalue of standing up a BPM program for your organization. If neither of theseapply, then maybe you’re just bored and figured, why not learn about a newand exciting topic. Regardless which bucket you fall into, at some pointyou’ll come face-to-face with BPM’s multiple-personality disorder. Although“analytics” is the new term du jour in the business technology world, it reallyhas become the glue that ties the different BPM perspectives together.Section 1: White Papers:Customer-Centricity and InnovationSTAYING AHEAD OF THE CURVE WITH DECISION-CENTRIC BUSINESS INTELLIGENCESheila DonohueCustomer-related decision points which impact a financial services firm’sperformance are spread across the customer lifecycle, from acquisitionthrough portfolio management and collections. These decision points whichinvolve risk taking have traditionally been focused on credit risk manage-ment, while, as more recently seen from the financial crisis, are taking a [Type text]
  2. 2. TABLE OF CONTENTSmore holistic view considering also operational risk requirements which em-phasize the importance of more control and to quickly respond to marketevents and compliance demands. Having more information easily at yourfingertips to monitor, measure and analyze performance in business proc-esses which manage these points of risk taking decisions is essential to re-sponding quickly and deftly to competitive and regulatory pressures.BPM, SOCIAL TECHNOLOGY, COLLABORATION AND THE WORKPLACE OF THE FUTUREJohn FlynnFor many customer-centric organizations, the last three years have beentough. Shrinking volumes of business, stiffer competition and ever more de-manding consumer expectations have increased pressure on the bottom line.Companies have responded by reducing headcount, cutting back on unnec-essary spending and ‘making do’ with existing IT systems and infrastructure.While these reactions have stabilized corporate finances and brought sighs ofrelief from shareholders, a siege mentality in the long term will not alloworganizations to take advantage of the predicted ‘better times ahead.’EVIDENCE-BASED SERVICE; LISTENING TO CUSTOMERS TO IMPROVE CUSTOMER-SERVICEPROCESSESVikas Nehru and Ajay KhannaEvery customer interaction, including sales and service, must reflect a com-pany’s brand. However, it is quite a challenge to measure the effect whichcustomer service has on a company’s brand. It is required that the customerservice processes are aligned with the brand to ensure that the customersreceive service which meets the expectations generated by the brand.The company must possess the ability to measure the effect of each serviceinteraction on brand perception and customer service KPIs. Some of theseKPIs are easy to identify as they are based on interactions within the organi-zation’s self-service or agent assisted service processes. But the interactionsthat are happening out in the social media world can also tell a lot about thecompany and how it is perceived by the consumer. Companies today need tobe able to establish KPIs related to social media or social-assisted service inorder to remain a competitive brand in today’s economy.PREDICTIVE BPMDr. Setrag KhoshafianMost businesses today engage in “predictions.” Will a customer agree to up-grade a purchase based on an array of offers? What is the likelihood that acustomer within a cluster of similar customers will default on a loan? Howmuch more effective will a targeted marketing campaign be, compared to arandom sampling? How can the churn rate of subscribers be improved?What is the likelihood that a particular financial transaction is fraudulent?These are some questions that could utilize prediction with concrete andtangible business benefits.A “business” is a collection of policies and procedures. Almost every businesspolicy or procedure has some aspect of prediction in it. Most of the time,policy and procedure requirements are based on intuition, best guesses, orbusiness experience. Too frequently, no one in the organization can remem-ber why certain policies were ever created in the first place. 5
  3. 3. TABLE OF CONTENTSCUSTOMER EXPERIENCE TRANSFORMATION—A FRAMEWORK TO ACHIEVE MEASURABLERESULTSVinaykumar S MummigattiThe era of extreme competition is creating immense importance for customerexperience and how companies manage their customers’ expectations. Theability to successfully manage the customer value chain across the life cycleof a customer is the key to the survival of any company today. Most compa-nies realize this but are struggling to measure and influence the customerexperience. This paper is an attempt to look at various facets of customerexperience and how to transform customer experience to achieve measurablebusiness goals. Business Process Management and the convergence of tech-nologies (such as Portals, web 2.0, BI, Content Management) are two key ele-ments of this transformation and hence we will focus on how the conver-gence of various technologies led by BPM will help achieve the business goalsaround Customer Experience Transformation (CET).FINANCIAL CRISIS FRONT LINE: SNS BANKEric D. Schabell and Stijn HoppenbrouwersSNS Bank, Netherlands, has made a strategic decision to empower its cus-tomers on-line by fully automating its business processes. The ability to au-tomate these service channels is achieved by applying Business ProcessManagement (BPM) techniques to existing selling channels. Both the publiclyavailable and internal processes are being revamped into full scale StraightThrough Processing (STP) services. This extreme use of online STP is thetrigger in a shift that is of crucial importance to cost-effective banking in anever turbulent and changing financial world. The key elements used in im-plementing these goals continue to be Free Open Source Software (FOSS),Service oriented architecture (SOA), and BPM. In this paper we will presentan industrial application describing the efforts of the SNS Bank to make thechange from traditional banking services to a full scale STP and BPM drivenbank that can survive on the Financial Crisis front lines.INTELLIGENT, AUTOMATED PROCESSES: EMBEDDING ANALYTICS IN DECISIONSJames TaylorThe challenge of putting BI to work in business processes is that reports anddashboards only work in manual processes. If the process is automated, ifstraight through processing is called for, then the analytics required are dif-ferent. Embedding these analytics in rules-based decisions is the ideal wayto analytically enhance these processes and build intelligent, automatedprocesses. Building intelligent, automated processes requires that we under-stand the decisions in our processes. These decisions give us the points ofcontrol that we need and the places where insight might make a difference.Section 2: Case StudiesDelivering the Customer-Centric OrganizationACHIEVEMENT AWARDS GROUP (PTY) LTD.Adaptive Case Management (ACM) is imperative in enterprises where theexception to process becomes the process! ACM, a topic widely discussedand analyzed by academics, professionals and IT specialists, is what is need- 6
  4. 4. TABLE OF CONTENTSed whenever processes must react to changing and diverse customer or cli-ent needs and interactions to ensure efficient and effective outcomes. Thismeans that defined, rigid processes become responsive to circumstancesthat require fluid processes in order to address specific requirements.ABU DHABI COMMERCIAL BANKNewgen provided the bank with a BPM-enabled workflow platform, which notonly helped bank to automate its processes, but also allowed seamless inte-gration of the BPM solution with its existing applications.Abu Dhabi Commercial Bank (ADCB), with a strong presence in Consumerand Corporate is a leading provider of technology-enabled services. In itsobjective towards complete automation of processes, the bank was in urgentneed for a solution that would enable end-to-end automation of their keybusiness processes and also provide integration with its existing applica-tions. Newgen provided the bank with a BPM-enabled workflow platform,which not only helped bank to automate its processes, but also allowedseamless integration of the BPM solution with its existing applications.UNITED PARCEL SERVICE (UPS)Founded in 1907 as a messenger company in the United States, UPS hasgrown into a multi-billion-dollar corporation by clearly focusing on the goalof enabling commerce around the globe. Today, UPS is a global companywith one of the most recognized and admired brands in the world, managingthe flow of goods, funds, and information in more than 200 countries andterritories worldwide. As the global leader in its industry, UPS continues todevelop the frontiers of logistics, supply chain management, and e-Commerce.To support efforts to improve operational efficiencies and drive customerservice excellence, the UPS Shared Services group identified that a pervasiveBPM platform for rapid application development and deployment would solvea laundry list of challenges. Utilizing BPM, UPS has improved workloadmanagement and resource planning, improved IT’s ability to measure andmanage SLA attainment, and optimized the cost-to-serve model, ultimatelydecreasing operating costs while increasing employee and customer satisfac-tion.BAA HEATHROWAt London’s Heathrow airport, a new case is created by a system feed, everytime an incoming plane is registered by air-traffic control, and closes whenthe plane is en route to its next destination. This event enabled case-management approach to aircraft turn-around has dramatically improvedthe overall efficiency of operations at Heathrow, including: • An increase in on-time departures from 68 percent to 83 percent, • A savings of 90 litres of fuel per flight, due to decreased time spent on the runway, yielding cost savings for airlines, and a positive environmental impact, • A projected increase in retail revenues, by allowing passengers on faster- boarding flights to spend more time in the terminal rather than seated in airplanes awaiting take off. 7
  5. 5. TABLE OF CONTENTSLOS ANGELES COUNTY DEPARTMENT OF PUBLIC SOCIAL SERVICES (DPSS)With over 10 million people, Los Angeles County is the largest county in theUnited States. The Los Angeles County Department of Public Social Services(DPSS) currently serves over two million participants each day and a case-load of over 1.6 million across its various public assistance programs—morethan any other jurisdiction except the states of California and New York.Even though the County has developed standardized processes and work-flow, the unpredictability of people and the sheer volume of cases in Los An-geles create an often overwhelmed situation. It is the goal of the Call Centerpersonnel, who are classified as Eligibility Workers, to determine individualbenefits eligibility.LINCOLN TRUST COMPANYThis paper describes the experiences of implementing an enterprise wideBPM program at Lincoln Trust Company. The program was constituted inearly 2007 with an initial goal of managing core processes related to physicalpaperwork and an ultimate goal of using BPM technology to manage all stra-tegic processes of the organization. When the program began the companywas receiving over 100,000 client documents each month with limited to nocontrol over these instructions. Initial, overwhelming success with an enter-prise wide implementation of BPM technology to workflow-enable documentcentric processes led to the strong desire of company management to movequickly to our next goals of understanding, improving, and automating otherstrategic processes. By doing so we’ve been able to open our back office pro-cess for collaboration with a strategic outsourcing partner, drive processes tothe web, reduce costs and risks, improve customer satisfaction, and com-pletely turn around a damaged relationship between IT and the business.NOKIA SIEMENS NETWORKSNokia Siemens Networks was created in 2007 through the merger ofthe former Networks Business Group of Nokia and the carrier-related busi-nesses of Siemens. Today, NSN is one of the world’s largest network commu-nications companies – with 60,000 employees, a leading position in all keymarkets across the world, and total sales of more than €15 billion a year.The Consulting and Systems Integration (CSI) unit within NSN is an organi-zation of 4,000 staff, with sales of over €500 million a year.CSI’s particular business is an unusual mixture of high-volume/low-revenueengagements (i.e., consulting projects) and low-volume/high-revenue pro-jects (i.e., major value-added service rollouts within large network implemen-tations). The “mish-mash” tools landscape resulting from the NSN mergerfundamentally did not meet the needs of CSI’s dynamic business require-ments. In addition, NSN’s formation from two companies with, in many re-spects, polar opposite corporate environments created friction in operationalexecution. CSI desperately needed to get an established set of processes inplace very quickly because without end-to-end visibility, fast and effectivedecision-making to drive the business was hampered, if not impossible. CSIlooked to BPM technology to drive quick, highly-configurable, higher-value/lower cost process solutions to meet its business goals. 8
  6. 6. TABLE OF CONTENTSSWISSCARD AECSThe liberalization of the credit card market in Switzerland in 1997 paved theway for American Express and Credit Suisse AG to establish the joint ven-ture company Swisscard AECS AG and to merge their credit card activities.Swisscard ideally combines the complementary strengths of the foundingcompanies, with American Express being the global leader in card manage-ment and Credit Suisse providing strong national sales channels. On behalfof Credit Suisse, Swisscard offers the world-famous American Express cardwithin Switzerland. It is thus the sole issuer in Switzerland with all threemajor brands (American Express, MasterCard and Visa) in its product port-folio.UVIT–FINANCIAL SERVICESThe Univé-VGZ-IZA-Trias group (UVIT) is a Netherlands-based insurancecompany. During recent years, the people of UVIT have been facing in-creased challenges from Internet insurance competitors. Because of this, amain objective was to automate outdated processes that were primarily pa-per-based. To do this, UVIT chose EMC Documentum xCP for the creation ofa case management application to process claims. The xCP platform is seam-lessly integrated with the UVIT capture platform to digitize all incoming mail,especially the vast quantity of doctor and hospital bills customers forwardfor payment. The system is used by UVIT service, field, and insuranceagents, while in the office, at home, and on the road.With the new xCP system, UVIT staff now has instant access to customerdocumentation, which has helped improve customer response rates as wellas overall processing efficiency. The amount of case documents they are nowable to process is also huge– about three million in 2010, and they expectthat figure to reach 50 million in the near future. 9
  7. 7. TABLE OF CONTENTSAbout the Global Awards for Excellence in BPM and WorkflowMany of the case studies profiled in this book are winners in the prestigiousannual Global Awards for Excellence in BPM and Workflow. These win-ners are companies that successfully used BPM in gaining competitive ad-vantage within their industries.The awards are highly coveted by organizations that seek recognition fortheir achievements. Now evolved into their 19th year, originally starting with,and moving through, imaging, documentation, knowledge management andmore, as our industry moved forward, these awards not only provide a spot-light for companies that truly deserve recognition, but also provide tremen-dous insights for organizations wishing to emulate the winners’ successes.CRITERIAThe criteria for submitting an entry are fairly simple: the project should havebeen operational for six months prior to nomination, and have been installedwithin the past two years. The submission guidelines, however, are moredetailed. To be recognized as winners, companies must address three criticalareas: excellence in innovation, excellence in implementation and excellencein strategic impact to the organization. Details at encompasses the innovative use of technology for strategic busi-ness objectives; the complexity of the underlying business process and ITarchitecture; the creative and successful deployment of advanced workflowand imaging concepts; and process innovations through business processreengineering and/or continuous improvements. • Innovative use of BPM technology to solve unique problems • Creative and successful implementation of advanced BPM concepts • Level of integration with other technologies and legacy systems • Degree of complexity in the business process and underlying IT architectureImplementationHallmarks of a successful implementation include extensive user and linemanagement involvement in the project while successfully managing changeduring the implementation process. Factors impacting the level of difficultyin achieving a successful implementation include the system complexity;integration with other advanced technologies; and the scope and scale of theimplementation (e.g. size, geography, inter-company processes). • Successful BPM and/or workflow implementation methodology • Size, scope and quality of change management process • Scope and scale of the implementation (e.g. size, geography, inter-and intra-company processes)ImpactImpact is the bottom line, answering the question, “What benefit does BPMdeliver to my business? Why should I care?” • Extent and quantifiable impact of productivity improvements 10
  8. 8. TABLE OF CONTENTS • Significance of cost savings • Level of increased revenues, product enhancements, customer service or quality improvements • Impact of the system on competitive positioning in the marketplace • Proven strategic importance to the organizations mission • Degree to which the system enabled a culture change within the organization and methodology for achieving that changeUsing BPM for Competitive AdvantageExamples of potential benefits include: productivity improvements; cost sav-ings; increased revenues; product enhancements; improved customer ser-vice; improved quality; strategic impact to the organization’s mission; ena-bling culture change; and—most importantly—changing the company’s com-petitive position in the market. The visionary focus is now toward strategicbenefits, in contrast to marginal cost savings and productivity enhance-ments.While successes in these categories are prerequisites for winning a GlobalExcellence Award, it would reward all companies to focus on excelling ininnovation, implementation and impact when installing BPM and workflowtechnologies. Companies must recognize that implementing innovative tech-nology is useless unless the organization has a successful approach thatdelivers—and even surpasses—the anticipated benefits. 11