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Automating the warrantyclaims process


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Automating the warrantyclaims process

  1. 1. Software Group Solution Brief Automating the warranty claims process Using business rules to increase the number, speed and quality of your automated transactions Warranty claims represent a significant expense for manufacturers: for Highlights one global enterprise, approximately 1.7 million claims led to roughly one billion dollars in payouts for the year. The sheer volume of claims can ● Speed time-to-market and warranty also be a substantial drain on your organization’s resources, and inconsis- claims process with increased automation tencies in the warranty claims process can create further, unnecessary costs and damage customer relations. The increasing role warranties play ● Reduce costs by increasing the number in business demands a dynamic claims process—an inability to change to of automated claim payments such a system can limit your business prospects and future growth. ● Improve the customer experience with consistent interactions and enforced eligibility IBM® WebSphere® ILOG® JRules Business Rule Management System (BRMS) provides organizations with the means to make their warranty ● Gain a competitive edge with fast, claims process more dynamic, automated and efficient. By lifting the dynamic rule changes to the warranty claims process claims-process business rules out of an embedded, static, complex IT environment and moving into an open, flexible, external repository, ● Streamline compliance processes ILOG JRules BRMS enables organizations to increase the number of automated transactions, thereby freeing up resources, speeding time-to- market and reducing costs. JRules BRMS also gives business users the ability to make dynamic rule changes, so the warranty claims process can be rapidly altered and adjusted to meet the demands of an evolving marketplace.
  2. 2. Software Group Solution BriefRetain your customers with faster claims processed manually. By deploying ILOG JRules to automati-resolution cally process certain claims based on predefined rules, both timeAn organization’s ability to deliver services in a timely matter and manpower are conserved.can be a key differentiator in a competitive marketplace. If cus-tomers’ requests are processed within a timeframe that meets or The ILOG JRules BRMS allows you to manage business rulesexceeds their expectations, they will be more likely to reengage guiding the claims process in an external repository that iswith the process in the future. If, however, the process is slow accessible to both business and IT users, depending on theirand cumbersome—even with an involved, multi-step process needs. Simply by making the switch to a dynamic, BRMS, yoursuch as a warranty claim—the customer will be more likely to organization can reap a variety of benefits, including:disengage, or go elsewhere to seek similar services. ● Reduction of the time and resources required to changeA primary way for your organization to improve the entire war- decision logicranty claims process is by increasing the speed of transactions— ● Reduction of the IT workloadfor both the customer and the business itself. And though there ● Increased business involvement in the definition and ongoingwill always be a need for individualized, manual processing of maintenance of business rulescertain claims, the key to a more efficient, faster system is ● Improved business decisions due to precise, fine-grainedautomation. decision logicWebSphere ILOG JRules BRMS features a robust, high level With the improved decision logic and the external, flexibleof automation for a significant number of claims. Automated business-rules repository of a BRMS, even complex decisionsclaims processing is faster than manual processing, and based on a number of factors or conditions can be automated.allows people in your organization to focus on other duties. Decisions can be made on specific, situational contexts, withAutomation can save money by conserving labor, and it also inputs from multiple sources. Each individual order, customer,has the added benefit of actually improving customer relations: transaction or process is also contextualized within the BRMS,rapid, rules-based processing means customers get their war- allowing for highly customized decisions while also enforcingranty claims processed faster, which makes them happier. compliance—such as meeting a regulatory mandate or internal service level agreement—if required.Improve your ability to see and Finally, an externalized, highly automated BRMS such as ILOGcustomize operational decisions JRules is designed to improve the overall visibility and under-Automation can be applied to many areas of the claims process standing of where decision logic is used, who is implementingas well as to different types of claims—particularly, smaller, rule changes, and how it drives operational systems. Businesssimpler claims that consume valuable time and resources when rules are more easily accessible, allowing them to be imple- mented and reused across disparate systems. With increased 2
  3. 3. Software Group Solution Briefvisibility, organizations can better ensure accuracy, consistency submission, the customer will clearly become dissatisfied.and enforcement of policies, while also fostering a more in- The customer may even be required to repeat a questionnairedepth understanding of the warranty claims process among or interview about the claim, further increasing the level ofbusiness owners. dissatisfaction.Reduce the costs of high-touch manual ILOG JRules can be used to improve the overall customerprocessing experience by avoiding many of the pitfalls that disrupt the war-As alluded to earlier, the automation of warranty claims pro- ranty claims process. It begins with consistency. With a rules-cessing featured in ILOG JRules can reduce the number of based system in place, there is a direct path from the start of thepeople needed to process claims, which saves money. But process to the final decision about the claim. More consistentILOG can indirectly reduce costs in other ways, such as the customer interactions with an improved, dynamic customerimproved alignment between business and IT. With a more questionnaire reduce the time customers must spend repeatingseamless, more automated claims process in place, business an interview due to missed key questions.units can focus on their core competencies while IT profession-als can turn their attention to other revenue-generating proj- Once a claim has been made and it has been determined that aects. Developers can more easily build and deploy rule-based payout will be made, it is imperative the customer receives theapplications that automate fine-grained, variable decisions used full entitlement of benefits. With a simplified, rules-basedby business systems, while reducing the time, effort and cost of process provided by ILOG JRules, eligibility is consistentlyapplication development and ongoing maintenance. enforced, which helps build customer loyalty and satisfaction. A more highly automated process can also reduce the numberA sound, efficient ILOG JRules BRMS can also result in of invalid claim submissions, which improves the turnaroundfewer errors during the warranty claims process, which further time to dealers for rejected claim notifications and further addsreduces expenses arising from penalties, redundancies and to the customer’s satisfaction.fines. A rules-based system is designed to maintain a high levelof precision and accuracy in the claims process. When regula- Prevent non-compliance and respondtory mandates or requirements are changed by an outside faster and better to regulatory changessource, developers need only update their BRMS to reflect the Compliance with external laws and regulations as well as inter-change—which can be done dynamically, without interrupting nal business and corporate guidelines is a regular and importantoperations. part of the warranty claims process. Proper compliance requires step-by-step thoroughness, and can become a time-consumingImprove your customer experience and task. Furthermore, failure to properly comply with governmentreduce invalid claim submissions regulations can lead to costly fines.When a customer files a warranty claim, that customer expectsa timely response with minimum hassle. When the process is A robust BRMS solution is ideally suited to streamline yourdelayed by an error, or voided entirely by an invalid claim compliance processes, whether they originate externally or internally. With a well designed interface, business owners 3
  4. 4. Software Group Solution Briefcan easily gain visibility into the business rules that are being changes promotes consistent eligibility for customers, reducesapplied to your compliance processes, and manage them errors and delivers in a timely manner—all of which help bothaccordingly. And, since compliance laws, rules and regulations the customer and the business.are constantly changing, businesses can quickly and efficientlyupdate the business rules to reflect these changes. In the end, Why IBM?compliance processes guided by BRMS can become faster, IBM is a leader in BRMS, with customers around the worldmore efficient and more accurate. and across major industries. Beyond its established presence, IBM extends its leadership position in BRMS through its strongImpacting your business case with BRMS organizational resources and focus. IBM provides more thanThe warranty claims process requires many steps along the just an industry-leading product set, including:path toward successful completion. Customers expect a processthat is seamless, easy to follow, compliant, and devoid of errors ● Worldwide consulting and support resources to assist cus-and complications. By shifting the business rules that guide the tomers with BRMS implementationclaims process from an embedded, hard-coded infrastructure ● Well-documented ISIS (IBM ILOG Systems Implementationand into the open, flexible, external repository of ILOG JRules Standard) methodology and best practices relating to buildingBRMS, business owners can make the changes and improve- and maintaining rules-based applicationsments that need to be made—in a timely, efficient, cost-saving ● A rich community support environment (available throughmanner. IBM developerWorks), allowing customers to learn both from IBM professionals and other customersAs global competition continues to intensify, organizations are ● A top-tier set of technology and services partners, ensuringseeking better ways to satisfy and retain their customer base that WebSphere ILOG BRMS works seamlessly withinwhile keeping costs down. Solutions that can also improve the enterprise architecturesoperational efficiencies of the business will only add to an orga-nization’s chances to outcompete the others. Organizations have a lot to gain with the deployment of IBM WebSphere ILOG JRules BRMS, as well as the resources,With IBM WebSphere ILOG JRules BRMS, your organization research and documented best practices that come with it.has an opportunity to improve processes across the board. With Simply put, the IBM BRMS solution provides the combinationsuch a customer-interactive process as a warranty claim, the of functionality, technological innovation and organizationalcase for BRMS becomes especially clear: dynamic business rules leadership to help ensure that its customers achieve the value they seek. 4
  5. 5. Notes
  6. 6. For more informationTo learn more about IBM WebSphere ILOG JRules BRMS,please contact your IBM marketing representative orIBM Business Partner, or visit the following © Copyright IBM Corporation 2011 Route 100Additionally, financing solutions from IBM Global Financing Somers, NY 10589can enable effective cash management, protection from obsolescence, improved total cost of ownership Produced in the United States of Americaand return on investment. Also, our Global Asset Recovery March 2011Services help address environmental concerns with new, All Rights Reservedmore energy-efficient solutions. For more information on IBM, the IBM logo,, ILOG, and WebSphere are trademarksIBM Global Financing, visit: of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at Other company, product or service names may be trademarks or service marks of others. Please Recycle WSS14118-USEN-00