Understand the full concept of Enterprise Content Management and how Union Bank is capitalizing on it.

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The Hidden Economics of Business Content –
A Revelation by Union Bank

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• This program will be recorded

3. Today’s speakers
Steuart Bruce -
Principal, Banking & Financial Services,
Pyramid Solutions
David Jenness -
Marketing Messaging Lead
IBM Enterprise Content Management

4. Human Resources Content
Resumes, business conduct
guidelines, account activation
training videos, certifications, etc.
What is Business Content?
4
Accounts Payable Content
Invoices, remittances, purchase
orders, expense reports, tax
forms, delivery documents, etc.
Social Content
Blogs, Twitter, Facebook,
Yelp,LinkedIn, collaboration,
sync & share, etc.
Legal Content
Contracts, leases, case files,
transcripts, video footage,
images, claims, regulatory
forms, affidavits, patents, etc.
Internal Business Content
Reports, records, emails, sales
orders, powerpoints, meeting
minutes, spreadsheets, financial
analyses, pricing, research,
design documents, quality
assessments, etc.
Customer-facing Content
Customer communications,
statements, sales orders,
correspondence, marketing
collateral, web copy, testimonial
videos, product images, rebates,
coupons, service tickets, etc.
Industry-specific Content
• Healthcare medical records, HIPAA forms
• Insurance claims, policies, onboarding
• Bank loan documents, statements, onboarding
• Government permits, licenses, tax forms

5. 5© 2015 IBM Corporation
Capture Protect Activate Analyze Engage
Smarter Content, Smarter People
Put business content to work to realize new value

6. 6© 2015 IBM Corporation
Capture documents at the
point of origin
Extract valuable business data
from content
Reduce cost of manual
document processing
Capture

7. 7© 2015 IBM Corporation
Paper-Based Loan Process
Paper adds time and expense
Customers
fill out loan
application
Loan officer
makes a
personal copy
of loan
documents
…submit
required
documents
at the branch
Courier
service
picks up
documents
Average cost
is $40 per
branch per day
Loan operations
Reviewer
completes
documentation
Fraud specialist
analyzes loan
Approver
reviews
financials
Manual data
entry
Exceptions
managed
Average loans
processed per
FTE per day=
.2

8. 8© 2015 IBM Corporation
Benefits of Paperless Branch and
Accelerated Loan Solutions
Customers
fill out loan
application
Loan officer at
branch scans
all documents
Loan operations
Encrypted
images and
data accessible
in real time via
ECM system
Approver
reviews
financials
Exceptions
managed
Automated
data entry
Analytics checks
for fraud and
confirms all
documents are in
good order
Average
loans
processed
per FTE per
day= 1.2
ECM
Result:
• Savings from eliminating couriers: $10,000 per
branch per year
• 600% improvement in loans processed per FTE

9. 9© 2015 IBM Corporation
Assess and understand content
you have
Manage risk by
securing data
Optimize content retained to
comply with regulations
Protect

10. 10© 2015 IBM Corporation
Apply content across business
processes
Increase speed of
decision-making with flexible
workflow
Eliminate silos between
departments
Activate

11. 11© 2015 IBM Corporation
Place Business Content in Context
The best search is no search at all

12. 12© 2015 IBM Corporation
Reveal new insight hidden
in content
Improve business decisions,
assure Next Best Action
Increase performance of
people and systems
Analyze

13. 13© 2015 IBM Corporation
Connect people, content,
analytics and process with
center of competency
Streamline collaboration with
hybrid cloud
Provide mobile access
to business content anywhere,
anytime
Engage

14. 14
Determining Business Value
© 2015 Forrester Research, Inc. Reproduction Prohibited

15. “Next level” business case justifications are increasingly vital for critical
investments.
15
33%,
Somewhat
important
4%,
Somewhat
unimportant
3%, Not at all
important
60%, Very
important
Base: 825 IT decision-makers at North American enterprises
Source: Forrester Research, Inc.
Investment Impact Categories TCO ROI TEI
IT Impact
IT costs   
IT cost savings   
Business
Impact
User efficiency  
Business
effectiveness
 
Risk and
Uncertainty
Risk mitigation 
Risk vs. reward 
Strategic
Impact
Scalability 
Flexibility 
Do I need a business case? What is an effective business case?
• Over 90% of IT decision-makers
find value in a business case
• Decision-makers will likely want
to apply standard criteria/factors
to investment opportunities
• TCO and ROI only tells the story of costs
and quantified benefits
• TEI adjusts for risks and factors the
flexibility of a product into the case study
© 2015 Forrester Research, Inc. Reproduction Prohibited

16. TEI Framework and Components
Total
Economic
Impact
RISK
Benefits
(Impact on Business)
Costs
(Impact on Budget)
Flexibility
(Options)
The TEI framework centers on quantifying benefits, capturing costs,
evaluating flexibility, and adjusting risk.

17. Example
› Global
Logistics
Company
› Customs
Brokerage
Business
› Accounts
Payable
Capture “on
steroids”

18. 18© 2015 IBM Corporation
Global logistics company specs
 150,000 documents arriving every day from
mail, fax, email - and piling up rapidly as
company prepared customs paperwork for
shipments
 Customs has many requirements for
complete declaration at border crossing
 Deployed seven imaging applications enabling
faster order processing with fewer errors
 Process ~600,000 pages per day in U.S.
(~3,000 users) and expect to process ~4
million pages per day (~10,000 users) globally.
 Company is able to move more shipments
across borders with 30% less resources
 Reduced lost documents and data errors
 Improved cycle times and accuracy
Represents the state of the art for capture today:
capturing paper, fax and emails, distributed scanning
from many different sites, with many rules-driven
variations.

19. Financials
• Costs: Company invested $9.4 million over a three year period.
• Costs included: Datacap software costs, Datacap Implementation costs, Related software
and implementation costs, Hosting and storage costs.
• Internal support and optimization costs: The estimated internal labor costs for the Datacap
application have a three-year risk-adjusted PV of approximately $500,000.

20. ROI, Costs and Benefits realized by using IBM Datacap

21. 21© 2015 IBM Corporation
Forrester Total Economic Value: Capture
Application

22. Example
› Full service
financial
services
company
› 5 million
academic,
medical, and
scientific
professionals
› Customer
experience
with Case
Management

23. A large US financial institution that experienced several key challenges
23
Provide 360-degree view of each
customer to enable omni-channel
engagement and cross-sell
opportunities
Out-of-the box flexibility and
integration of content, BPM, and
case mgmt
Automate data collection,
reduce due diligence effort and
errors
© 2015 Forrester Research, Inc. Reproduction Prohibited
Source: Forrester Total Economic Impact of IBM Case Manager, a commissioned study conducted by Forrester Consulting on behalf of IBM, December 2014
Specifications
› Large US financial institution
› 6,000-7,000 cases each day
• Transaction cases: 60-90 min.
• Onboarding cases: 3-4 hrs.
› Each case requires data from
multiple systems
› Previous process relied on
knowledge workers manually
accessing and verifying data
› Pain points: efficiency/capacity,
accuracy, visibility into
consumer history
Objectives

24. Improving knowledge worker efficiency is the primary benefit that the
interviewed customer experienced
24
© 2015 Forrester Research, Inc. Reproduction Prohibited
Source: Forrester Total Economic Impact of IBM Case Manager, a commissioned study conducted by Forrester Consulting on behalf of IBM, December 2014
- Lead development manager, large US financial
institution
“With a strong foundation in BPM, the case
management tool allows us to validate information
prior to creating a work item so users don't have to
log in to 10 systems and spend 3 hours gathering
data. Instead, they can spend 3 minutes looking at
gathered data in one system.”

25. Improving knowledge worker efficiency is the primary benefit that the
interviewed customer experienced
25
Three-Year Risk-Adjusted Benefit
Knowledge Worker Efficiency
– Reduced transaction and onboarding
average processing times from 1 hr
and 3 hrs to 3 minutes
– Productivity conversion rate of 30%
applied
– High volume benefits
– Key metrics: Case volume, previous
case processing time
Metric Year 1 Year 2 Year 3 Total
Case volume (onboarding) 150 150 150
Case volume (transaction) 5,850 5,850 5,850
Previous case processing time 60-180 min 60-180 min 60-180 min
Improved case processing time 3 min 3 min 3 min
Productivity conversion 30% 30% 30%
Resource hourly wage $19.50 $20.09 $20.69
Total $7,328,880 $7,548,746 $7,775,209 $22,652,835
© 2015 Forrester Research, Inc. Reproduction Prohibited
Source: Forrester Total Economic Impact of IBM Case Manager, a commissioned study conducted by Forrester Consulting on behalf of IBM, December 2014

26. Leveraging linked systems and better visibility into each case resulted
in a longer term impact on revenue opportunities and customer
experience.
26
© 2015 Forrester Research, Inc. Reproduction Prohibited
Source: Forrester Total Economic Impact of IBM Case Manager, a commissioned study conducted by Forrester Consulting on behalf of IBM, December 2014
- Lead development manager, large US financial
institution
“We are able to accurately target customers for
specific investment products based on their
withdrawal frequency and trends. This allows us to
retain instead of lose. . . . cross-sell opportunities
have ranges from $25 million to $50 million each
year.”

27. The three-year risk-adjusted cash flow for IBM shows a positive ROI
(238%), a NPV of $13,413,496, and a payback period of less than 1
month.
27
Three-Year Risk-Adjusted Cash Flow
Initial Year 1 Year 2 Year 3 PV
Costs ($261,360) ($2,142,720) ($2,158,402) ($2,174,554) ($5,626,865)
Benefits $0 $7,443,068 $7,668,643 $7,901,101 $19,040,360
Net Benefits ($261,360) $5,300,348 $5,510,242 $5,726,547 $13,413,496
ROI 238%
Payback Period <1 month
($261,360) ($2,142,720)
($2,158,402) ($2,174,554)
$0
$7,443,068 $7,668,643 $7,901,101
($4,000,000)
($2,000,000)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Initial Year 1 Year 2 Year 3
Costs
Benefits
Payback
© 2015 Forrester Research, Inc. Reproduction Prohibited
Source: Forrester Total Economic Impact of IBM Case Manager, a commissioned study conducted by Forrester Consulting on behalf of IBM, December 2014

28. 28© 2015 IBM Corporation
Forrester Total Economic Impact: Case Application
28
40%
Decrease cost per customer
through rules and workflow.
$25M-$50M
Volume of funds that are
retained by the customer due to
cross-selling instead of being
directly withdrawn.
238%
Return on
Investment
< 1 Month
Payback
$12.4M
Net Present
Value

29. Example
› A full-service
$13.5B bank
with offices
across the
United States.
› 400+ branches
› Japanese
multinational
bank
› Corporate goal
to be a Top 10
US Bank

30. Improving Customer Service & Knowledge Worker Efficiency
Simultaneously
30
- Sr Vice President, MUFG Union Bank, N.A.
“Change of Address used to take us days to process
those requests from a customer, now it takes us
minutes.”

31. With basic document capture, Union
Bank realized a 70 % ROI within 18
months of implementation
– Shipping
– Copying
– Printing
70%savings
Branch Automation . Check processing.
Elimination of couriers

32. Process. People. Information
$500,000
• Images became accessible within the
context of a business activity.
• Transformed from archive.
• 15 full-time employees needed to
receive, review and approve - full-
time equivalent head count went
down to one-half.

33. 33
Workflow & Content as a
Enterprise Program
Cost Benefit Analysis - Part of Program
– Each initiative went through a
rigorous cost-benefit analysis
before funding. Once deployed,
the bank measured actual results
against projected efficiencies to
verify gains.
– Samples:
• New Employee unproductive
time reduced from 30 to 15
• FTE reduction of 28 – 9 month
ROI
• 20-30% efficiencies Gains

34. Enterprise program pays increased dividends as it rolls out
across the worldwide organization
34
- ECM Development Lead, Large US Financial Institution
“Solution over Solution we saw 30-40%
reduction in time in delivering the second
solution over the first leveraging the Case
Management technologies.

35. Download Full Union Bank Case Study @
ecm.pyramidsolutions.com
Steuart Bruce at sbruce@pyramidsolutions.com
“Fastest turn around
in bank history!”

36. 36© 2015 IBM Corporation
How can your employees engage with Business
Content in smarter ways?
Back Office:
HR, AP, Contracts, Contact Center
Front Office:
New customer onboarding
Claims Processing
Investigations
Complex Loan Processing
Policy Underwriting
Incident Management
Knowledge Management
36

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