• Cognizant 20-20 InsightsRedefining the Information ManagementLandscape for Competitive Advantage   Executive Summary    ...
Functionally Driven Tactics               Sales                 Service             Marketing                Partner      ...
experience. The e-tailer made its name by aligning   can achieve through business processes andits processes and culture a...
A Unified Data Set for All                                                            Plan to                             ...
Boosting the Productivity                             The company was experiencing process-relatedof Customer-Facing Emplo...
At the same time, the bank’s aging IT architecture   personnel across functional groups will use the               was pre...
Enhancing Customer Experience and Increasing Lifetime Value         Competitive                                           ...
About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process ...
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Redefining the Information Management Landscape for Competitive Advantage


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Forward-thinking companies are turning to business process management to build greater customer engagement — and, in turn, customer lifetime value.

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Redefining the Information Management Landscape for Competitive Advantage

  1. 1. • Cognizant 20-20 InsightsRedefining the Information ManagementLandscape for Competitive Advantage Executive Summary The rise of BPM technology reflects a growing view that processes are instrumental in driving For decades, companies have embraced technol- sustainable competitive differentiation. Distinc- ogy designed to aid them in strengthening their tive business processes make one company customer relationships. Traditionally, companies stand out from the pack of its competitors. Dif- interacted with customers and managed these ferentiated processes can create efficiencies and important relationships via customer relation- introduce speed and agility to help organizations ship management (CRM) systems. But because better adapt to the changing dynamics of the a plethora of systems used in other parts of the marketplace. business also contained important customer information, organizations began turning to Further, given the growth of the digital consumer, master data management (MDM) to provide it is critical to elevate the customer experience common definitions across these systems. Com- and reevaluate how we define customer lifetime panies also used business analytics and business value (CLV). This requires companies to transform intelligence tools to unearth actionable insights their disparate IT systems into one holistic system about customer behavior. that is process-led and merges the disciplines of CRM, MDM, business analytics and BPM. However, more often than not, all of these systems — CRM, MDM and business analytics (BA) — were Today, the vast majority of information about built and deployed in a non-integrated fashion, customers resides in unstructured formats (over each aligned with one functional area and not 70%, according to some estimates); hence, the working together in a seamless fashion. Another new landscape requires the incorporation of both weakness: These systems were not designed structured and unstructured data from a variety to interact fluidly with social media channels of platforms, such as social, mobile, Web and and mobile devices, which are now escalating in enterprise systems. This merged IT landscape influence and defining the future of work.1 Due enables superior customer experience, opera- to this fragmentation and proliferation of siloed tional effectiveness and business agility, driving systems, many companies turned to business competitive advantage and increased CLV. process management (BPM) to automate process flows and link these systems. cognizant 20-20 insights | march 2012
  2. 2. Functionally Driven Tactics Sales Service Marketing Partner • SFA • Call center •Campaign • Partner portals • Incentive • Contact center management • Partner sales compensation • Agent optimization •MCM management • Cross-sell • Service fulfillment •CCM • Partner campaign • Upsell • Social enablement •CLM • Partner enablement • Territory •MRM alignment •DAMFigure 1The New Information Landscape In recent years, companies have used business analytics and business intelligence tools to helpIn the past decade, the majority of companies segment and target customers. These appli-deployed CRM applications to further the goals cations helped organizations uncover — andof their sales, marketing and service organiza- capitalize upon — insights lurking in their data.tions. Each of these groups used CRM tactics andcampaigns, largely in a departmental manner, to All of these technologies were useful as far asfurther its view of the world (see Figure 1). For they went. But by using them in disjointed fashion,example, sales used sales force automation (SFA) companies were often missing the opportunity toto facilitate sales contact management, while generate the global benefit to the business thatthe service group relied on its contact center comes from focusing more broadly on processes.as its primary customer touchpoint. Marketing So, BPM came into play in recent years to driveemployed campaign management to support new business process efficiency and differentiationproduct launches. (see Figure 2).Meanwhile, because of the wide variety of systems BPM enables organizations to make quick changesdeployed in different functional areas throughout to processes, in order to react to market needs. Forthe organization, it became necessary to manage example, if a pharmaceuticals company wanted todata and definitions at a higher level. MDM realign its territory due to organizational changesystems help provide a single and unified view of or needed to remap its sales representatives’various entities, such as “customer” and “sale.” territories, BPM would provide a quick and agileThis also enables a “single view of the customer,” way to make those changes.which has become the trusted gold standard for acustomer record. Another example is the online retailer Zappos, which is renowned for its superior customerUnder the BPM Umbrella Data Data 360-Degree Structured Internal Customer View External UnstructuredFigure 2 cognizant 20-20 insights 2
  3. 3. experience. The e-tailer made its name by aligning can achieve through business processes andits processes and culture around whatever will customer experience. Forward-thinking compa-make the customer happiest. A Zappos shopper nies are replacing their siloed systems with aknows she may not be getting the lowest price new, overarching system that combines theseavailable on the Web. But the whole experience capabilities with an emphasis on process-basedfrom start to finish — selection, whimsical inter- transformation to boost CLV and drive lastingaction with customer service reps, quick free competitive advantage.shipping, free return shipping, high-end packagingas well as quality merchandise — wins her loyalty. Combining these technologies drives additional benefits, both strategic and tactical:Zappos’ unique attitude and culture, embeddedin its processes, differentiates the company • Operational excellence, by reducing manual intervention through process automation.from other online retailers, and without theneed to offer deep discounts that quickly erode • Agility to adapt to business and marketprofit margins. Charmed by Zappos’ quirkiness changes.and superb service and product selection, the • Flexibility to rapidly innovate and create newcustomer will likely increase her spend at Zappos. product/service bundles.Ideally, the retail consumer’s incessant need tocompare prices online is offset by the enjoyment • Superior customer experience, through service/product differentiation.of the Zappos experience. The company undoubt-edly has work to do to restore consumer • Improved customer experience, by managingconfidence in the wake of its recent security cross-channel customer interactions.breaches, but its good will in the market may go How a Process-Led Architecture Worksfar in shoring up trust.2 Every organization has a number of key businessThe Process-Led Information processes that touch different functional areasTechnology Architecture within its extended enterprise. A process-led IT architecture overcomes the pitfalls of siloed CRM,Today’s focus on business processes is driving MDM, BI/BA and BPM, placing process above allforward-thinking companies to rewire their (see Figure 3). To see how this might work, let’soperations, implementing a process-led infor- consider the lead-to-closure process at a mid-sizemation technology architecture that combines insurance company. Before the new architec-CRM, MDM, BI/BA and BPM. The new architec- ture, the marketing group would plan a campaignture optimizes the differentiation that companies around a new product launch.The Process-Centric Approach Plan to Campaign Sentiment to Order to Insights Cash Lead to Inquiry to Closure Resolution Processes Differentiation Competitive Advantage Customers Consumers CommunitiesFigure 3 cognizant 20-20 insights 3
  4. 4. A Unified Data Set for All Plan to Campaign Sentiment to Order to Insights Cash Lead to Inquiry to Closure Resolution Process Sales Influence Service Influence Marketing Influence Data Data 360-Degree Structured Internal Customer View External Unstructured Customers Consumers Communities Figure 4 Leads generated by the campaign would be “customer” and “deal”). If anything changes stored in the company’s CRM system, which at any point during the process, the affected would funnel them accordingly, providing data employee can input the new requirements or for the marketing department to analyze. Then, changes — once — and code changes affecting any assuming that 10 solid leads were identified, the systems will cascade out through the other con- insurer’s sales system — a separate application stituents to the process. — comes into play. The sales manager assigns each lead to Revisiting the scenario above, after 10 leads were Under a process-led sales managers by territory. generated from the marketing campaign, the pro- architecture, the cess-led system would dynamically assign them Next, the sales representa- to the right salespeople, according to territory. Ifsales, marketing and tive receives the lead in his one of the reps was out of the office, the systemsupport elements of contact management system could be set up to automatically find the next the lead-to-closure (such as Salesforce.com) and appropriate person and send the lead to her. The starts selling to it. Finally, system would also link through social channels process are linked. there is a deal that closes the like Twitter to alert the interested party that his sale. At this point, finance request was being attended to. The merged capa- and support get involved, possibly with their own bilities make the process more proactive and fluid, separate applications and individual view of the enabling a much improved customer experience. process. In this example, the leads get the attention they By contrast, under a process-led architecture, need early in the process, setting them up to the sales, marketing and support elements of the become satisfied customers later. The process- lead-to-closure process are linked (see Figure 4). led approach also keeps customers engaged Using the process-led system, the insurer creates through real-time status feeds. This company can the entire set of tasks that occur at each step of thus make a name for itself as the one insurer the way, from lead to closure. Every individual with which everything flows smoothly, from start involved in the process works off the same data to finish. The resultant agility drives competitive (and the same definitions for terms such as advantage for the insurer. cognizant 20-20 insights 4
  5. 5. Boosting the Productivity The company was experiencing process-relatedof Customer-Facing Employees roadblocks, including the fact that the sub-processes hidden in its siloed, verticallyCustomer-facing employees stand to benefit the stacked applications were rigid and difficult tomost from implementation of a process-centric change. Meanwhile, data was scattered across theapproach with merged CRM, MDM and BA/BI enterprise in multiple data stores, meaning therecapabilities. Here are some examples of processes was no single view of the customer. The lack ofto target first: data uniformity and accuracy gave rise to distrust in available information.• Processes featuring sequential execution of a series of tasks. These processes can To solve this, we designed a flexible new IT archi- be automated for the sake of efficiency and tecture, combining BPM with MDM capabilities accuracy without requiring the customer service based on a service-oriented architecture (SOA) representative to remember all of the steps in for scalability and extensibility. This new informa- sequence. Automating this type of process also tion landscape was driven by process, fueled by reduces the training burden and helps CSRs master data and ruled by data governance and come onboard faster, with more of their per- stewardship principles. The company is in the sonality intact. Process examples include “know process of implementing this architecture now. your customer” and customer surveys.• Processes requiring rules-based execution Beyond increased agility and improved customer and dynamic work flows. This process can incor- experience, the new architecture promises many porate complex rules through configuration, advantages: with the ability to change choices later, reducing • Processes grouped in domain-based classifica- order/application/case failures downstream. tions for ease of use. Process examples include customer onboarding, underwriting and order entry. • Related processes that communicate with ease.• Processes that require interaction with • Change treated as “normal” rather than disruptive. multiple applications. Much can be gained by automating processes that span multiple appli- • Data readily available in a consistent, uniform cations and human interventions in a transpar- and accurate format. ent and seamless manner. Process examples include billing inquiry in a contact center • Employees view all contacts with a customer in one place — the “360-degree view.” and telecom order provisioning with multiple product lines. • Data ownership based on domain, rather than system.• Automatic process triggers based on events and business activity. Here, a process is • Process and data dynamically linked, enabling triggered based on events occurring in a set business agility. of applications, either simultaneously or in Case Study: Financial Services Organization sequence, requiring an approval, verification We were also asked to help a retail bank that was or notification. Process examples include fraud struggling to transform itself into a more cus- detection, risk management and dynamic offer tomer-centric “relationship” institution. Surveys generation. indicated customers did not find the bank friendlyBusiness Process Centricity or helpful. The company had been unable to offerin the Real World customers the banking options they expected from a modern institution. Customer profilesCase Study: Healthcare Company varied, from users who desired the ability toWe recently entered into a large agreement to help perform more transactions on their mobilea major U.S.-based healthcare payer company devices on a real-time basis, to users who wantedtransform its monolithic IT architecture into a a single interface across the many banking instru-more agile one, based on optimized business ments. Given all this, it was not surprising thatprocesses. This company needed to drive com- the bank had experienced a high rate of customerpetitive differentiation and CLV. Business leaders defection. Management was very concernedwere frustrated that they could not respond about the future.more quickly to the ever-changing needs of thefast-paced healthcare market. cognizant 20-20 insights 5
  6. 6. At the same time, the bank’s aging IT architecture personnel across functional groups will use the was preventing it from delivering the features same customer information, speeding decision- that customers desired, without which the bank making and responsiveness. The new architec- could not remain competitive. Disparate sources ture positions the bank to regain its competi- of customer data and the lack of a unified view tive footing by reducing customer attrition and of customers across systems made it difficult for increasing CLV, which will signal engagement with customer service representatives and tellers to an increasingly savvy market. provide excellent service. Agents lacked real-time decision-making and marketing capabilities, Looking Ahead leading to customer frustration and missed upsell Companies are accustomed to deploying and cross-sell opportunities. The organization technology for the benefit of functions such as needed to improve its customer experience by sales, marketing and service. They have long enabling banking through smartphones, tablets used CRM, MDM and BA/BI to further departmen- and other mobile devices. tal goals, including campaign management and reduced cost of service. The advent of business The bank was stymied in its efforts to increase process management technology promises great its revenue per customer because there were no benefits by optimizing processes across technical segment-, product- or channel-specific views that and functional barriers. would have yielded actionable insights. In short, multiple proprietary IT systems, The new information landscape will be defined The architecture inflexible business processes and by processes, fueled by data and managed by combines CRM, data inconsistency were adding governance. It will also enable interaction and up to a perilous situation. engagement with consumers, communities and MDM and BPM for customers (see Figure 5).increased flexibility A new IT architecture, currently being implemented, features Combining CRM, MDM, business analytics and and customer optimized business processes BPM collects all the elements needed to drive responsiveness. and workflows in sales, marketing customer experience and, therefore, competitive and service. The architecture advantage (see Figure 6). This is an entirely new combines CRM, MDM and BPM for increased approach that creates innovation and transfor- flexibility and customer responsiveness. All mation. The New Information Landscape Engagement Process • Sales engagement • Business process • Service interactions management • Marketing influence Process • Process hubs Engagement Data Governance Governance Data • Process compliance • Master data • Information/ data stewardship • Structured BPM+CRM+MDM • Non-structured Figure 5 cognizant 20-20 insights 6
  7. 7. Enhancing Customer Experience and Increasing Lifetime Value Competitive Innovation and Advantage Transformation Business Benefits Business Business — Process IT Alignment Efficiency Cost and Cost Savings Operational Silo Applications BPM Integrating Process-Led Convergence Silo Applications of CRM, BPM, MDMFigure 6Systems such as CRM and MDM grew up in a collaborative systems will play a greater role asnon-process-centric, siloed world. Today, greater systems of engagement that delight the customerbusiness value can be gained by designing a new at key moments. Process-led solutions provide thesystem, with BPM capability supporting customer- platform upon which forward-thinking companiesfacing interactions. Business processes provide will build greater customer engagement — and, indifferentiation in the market, pointing the way turn, customer lifetime value.to competitive advantage. Over time, social andFootnotes1 In our view, the future of work consists of four forces — accelerating globalization, virtualization, demo- graphic change and cloud-powered, consumer-rooted technologies — and the systems of engagement that companies will need to enable more collaborative ways of working across their extended enterpris- es. For more information, please see Malcolm Frank and Geoffrey Moore, “The Future of Work: A New Approach to Productivity and Competitive Advantage,” Cognizant Technology Solutions, December 2010, http://www.cognizant.com/futureofwork/assets/whitepapers/FoW-New-Approach-TL.pdf.2 Steven Musil, “Zappos Customer Data Accessed in Security Breach,” CNet, Jan. 15, 2012, http://news.cnet.com/8301-1009_3-57359536-83/zappos-customer-data-accessed-in-security-breach.About the AuthorDileep Srinivasan is a Vice President within Cognizant’s Customer Solutions Practice. He specializes inhelping organizations across industries apply traditional and emerging social CRM, MDM and BPM toolsto generate long-term business value. He can be reached at Dileep.Srinivasan@cognizant.com. FollowDileep on Twitter @dileepsri. cognizant 20-20 insights 7
  8. 8. About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered inTeaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industryand business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50delivery centers worldwide and approximately 137,700 employees as of December 31, 2011, Cognizant is a member ofthe NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performingand fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com©­­ Copyright 2012, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein issubject to change without notice. All other trademarks mentioned herein are the property of their respective owners.