ILOG Business Rules Solution Enabling Smarter …€¦ · BRMS - Relevancy Across ... Move decision-making ... Ease, transparency, consistency and governance in business rules and

© 2009 IBM Corporation

ILOG Business Rules SolutionEnabling Smarter Customer Offerings

Abe Cuevas

Senior Software Sales, ASEAN

WebSphere ILOG Business Rules Software

[email protected]

© 2009 IBM Corporation2

Start Demo

Emphasis on Relevancy Across Customer Management Lifecycle

Cha

lleng

es

Problem Resolution

Retain

�Capture customer feedback during interactions

� Implement root cause analyses of service issues

�Develop retention offers for valued customers

�Coordinate collections and recovery activities across FSI

Segment & Target

Extend Offer

�Consistent, focused marketing efforts everyday

�Customer/data analytics to drive prospecting in specific segments

�Multi-channel marketing strategy

�Compelling value proposition for targeted segments

Customer Acquisition

Open Account

Cross- Sell

�Broad discussion of other financial needs/existing relationships

�Capture future opportunities

�Capture customer interaction preferences

�Cross-sell and onboard as appropriate

Account Opening &

Onboarding

Retain Cross-Sell

� Increase share of wallet with cross-selling

�Develop compelling rewards programs by segment

�Provide appropriate customer service

�Monitor relationship profitability

�Prevent attrition by segment

Relationship Management

CustomerRetention

Source: TowerGroup

BRMS - Relevancy Across Customer Management Lifecycle


Start Demo

Emphasis on Relevancy Across Customer Management Lifecycle

Problem Resolution

RetainSegment & Target

Extend Offer

Customer Acquisition

Open Account

Cross- Sell

Account Opening &

Onboarding

Retain Cross-Sell

Relationship Management

CustomerRetention

Cha

lleng

es

�Capture customer feedback during interactions

� Implement root cause analyses of service issues

�Develop retention offers for valued customers

�Coordinate collections and recovery activities across FSI

�Consistent, focused marketing efforts everyday

�Customer/data analytics to drive prospecting in specific segments

�Multi-channel marketing strategy

�Compelling value proposition for targeted segments

�Broad discussion of other financial needs/existing relationships

�Capture future opportunities

�Capture customer interaction preferences

�Cross-sell and onboard as appropriate

� Increase share of wallet with cross-selling

�Develop compelling rewards programs by segment

�Provide appropriate customer service

�Monitor relationship profitability

�Prevent attrition by segment

Source: TowerGroup

BRMS - Relevancy Across Customer Management Lifecycle


Start Demo

The First – Significance of Event

��

��

��

� ��

� ��

��

� �� !��"

� ��

�� #��

� $%&&#&&&��

� '�� ( ��"��)�*&&+


Start Demo

� ��

�� !�"#$%��&

� ��"��"��,�� -

The Second – Relevance to the customer

� The customer feedback is clear:– It is not acceptable to communicate with all of us because you think only some of us

might be interested.– Only communicate when you know it is a good time - because something has changed.

– Right Time, Right Customer, Right Offer Else…

© 2009 IBM Corporation6 NCR Confidential

Start Demo

The Third – Timely Communication (Back to WBE)

��'��

��'��(��

)

*��+��,��-��.��

'��/

0��"#�#�01


Start Demo

��

��

��

"��2��'��

� ��

� ��(��

3��

� ��

� 1��2��4��

�� %��

� 5��

� 1��(��

��

Proactive Batch and Real Time Business Proposition

Action Taken and Monitor


Start Demo

Business agility and responsiveness

Shorten response time in actionable

situations

Improve process automation, flexibility

and efficiency

Business alignment, compliance and transparency

Maximize decisions for resources, risk

and value

Empower LOB users to manage and

improve decisions

Smarter personalization and self-service

Move decision-making to point of contact with

customers

Achieve finer-grain personalization in

customer interaction

Customers want Greater Decision Agility & EffectivenessAutomate, improve and govern high-volume, operational decisions


Start Demo

The missing link is a Centralized Decision EngineBRMS - Relevancy Across Customer Management Lifecycle


Start Demo

Key Technologies for Decision Agility & Effectiveness

� Business Event Processing improves situational awareness and response� Business Rule Management improves the quality of automated decisions � Business Process Management uses outputs within orchestrated processes� Analytics enables continuous decision improvement

Correlate business events and detect critical business

situations

Orchestrate business processes and human task applications

Automate high-volume operational decisions with business rules

Derive deep understanding of data with analytics

Monitor and report on data to provide real-time insight

data

data

data

data

Event

EventEvent

WebSphere Decision ServerCombined rules and events capabilities to power flexible decision management solutions


Start Demo

� A powerful, scalable, flexible event processing platform

� Business user oriented interfaces reducing time to value.

� Designed to expect change – supports incremental development and deployment

� Built-in Connectivity to the widest range of events.

WebSphere Decision Server - Business Events

The Convergence of Power and Ease of Use

“The real world is mostly event driven, and event-driven situations are best addressed by event-driven business applications”.

Roy Schulte, VP Gartner Research


Start Demo

WBE Puts Power in the Hands of the Business User…� Define actionable patterns of events and responses

� All tasks performed via intuitive GUI

Point and click from drop-down lists

Condition Block

Event Interaction Block

…Through Collaboration with IT� Defines available events and properties

� Provides connectivity to event sources

Event Definitions

Event Properties

IT Developer

Business User

WebSphere Decision Server - Business EventsRole-based User Interfaces Empower the Business


Start Demo

Message Bus

Events

RDBMSHTTPSMTPFTPFileJMS

SOAP

WebSphere Decision Server - Business EventsLeveraging the Existing Infrastructure -- Detecting and Responding to Actionable Situations

WBE Object Repository

Business Space

User Console

Event Flow

Detect Events and Patterns,

Generate ActionsApplications

SensorsPeople

Processes

Transactions

Infrastructure

Event Sources / Event Sinks

Extended Information Infrastructure

Event

Event

Action

Action

WBE

Action

Action

Event

Event


Start Demo

14 Copyright ©2006 by ILOG,

Spreadsheets

Databases

ManualProcesses

Mainframe

MonolithicApplications

Rule Repository

User Tools

Rule Engine

User Tools provideaccessibility and rule management

Rules are extractedand stored in a Rule Repository

The major elements of a Business Rule Management System (BRMS)

Rule Engine providesexecution anddeploymentthroughout the process

Websphere Decision Server - Business Rule Management System


Start Demo

15

Intuitive Rule Authoring Capability

Text editorText editor

Decision TablesDecision Tables

Decision TreesDecision Trees

Point & ClickPoint & Click

Policy Manager

Business Friendly Interface


Real Time Cross Selling

IBM ILOG Business Rule Management Systems


Start Demo

Example:

� Major North American Bank, 18 million customers in 46 countries

� Increased pre-qualified cross-sell offers from 13% to 40%

� Increased upsell/cross-sell offer acceptance from 3% to 30%

� Added over $14 million incremental revenue in 2.5 months

� Improved customer satisfaction

� Increased sales force satisfaction and effectiveness

BRMS applies compliance policies, profiles clients, ranks

products, determines risk, calculates distribution amount, determines eligibility & limits,

and ultimately generates offers of high interest to

customers.

Fast ROI through IBM ILOG BRMS-based upsell / cross-sellBRMS - Relevancy Across Customer Management Lifecycle


Start Demo

• Scoring (descriptive & predictive)

• Predictive models (e.g. buyer propensity)

• Risk Segmentation• Strategy

Recommendation

Bank’s Product Strategy

• Product strategy• Product best-fit• Promotion

management• Adjustments for

prior history• Champion /

Challenger

• User profile• Credit profile• Preferences• History• External

Databases• Etc.

Central Liabilities

• Credit qualification• Program

qualification• Bundling &

packaging• Product qualification• Customer-centric

pricing

User login Customized offering

DATA

RULES

PROCESSES

Marketing Campaign

Management

BRMS - DEMO Walk-Thru

Cross-sell / up-sell model


Start Demo


Start Demo


Start Demo


Start Demo

Customer Profile

Age: 35

Credit Grade: A

Relationship: Primary


Start Demo

Guided editor


Start Demo


Start Demo


Start Demo


Start Demo


Real Time Detection of Opportunityand Optimized Bundling and Precision Offering


Start Demo

2929

Scenario:Customer pre-mature withdrawal, event triggeredCheck rules engine for appropriate campaign and product eligibility

Rules Engines optimize product bundling eg. Housing/Car and Cashlines/Credit Cards based on the credit ratings of customers and collaterals

SMS to upsell bundle to Customer A via relationship manager

This is the capability for non-deterministic events compared to predictable reactive sales which most banks are already doing via batch logs for cold call leads. Tactical opportunities are lost everyday and funds are flowing out everyday without realizing.

A classic Behavior Driven Opportunity

Business Challenge: How do banks capture tactical opportunities, validate them and tailor a high hit rate solution to retain and upsell customer Real Time?

Example of a Real Time Retention and Cross Selling scenario


Start Demo

� Susan Say– Segment: Treasures– Risk Tolerance: 4– Credit Rating: 3– Total Asset: 300K

� Susan withdraws SGD 30K funds from her Fixed Deposit account prematurely.

� On Monday, Susan visits the Ang Mo Kio branch and withdraws additional SGD 30K.

– Exceeds total amount threshold that has been set at SGD 50K

� To ensure that the bank retains her as a customer, her relationship manager, Casey is notified via SMS to offer her a new promotion

– 3 Years Free Membership for Credit Card with Spa Voucher– Overdraft Interest free for first 6 months

Proof Points

� Capture events from CICS directly and to up sell relevant product bundles if applicable.

� Ability to reference existing systems such as Oracle DB to retrieve customer profile information.

IF Customer’s premature withdrawal in 1 weekexceeds 60K, customer’s RM is notified


Start Demo

Event Processing Definition

Allows business users to define interaction patterns through a web based interface


Start Demo

Event Processing FilterAllows business users to modify the threshold condition of total deposits from 200K to 250K and republish changes.


Start Demo

WebSphere Optimizes Decisions and Delivers Precision Bundling Real Time – Who to contact, What to Offer, When to offer and how to reach out

WHO WHATCIN Name Expiry Date Amount

S6098543A Lim Tan Kheng 31/04/10 100,000 RulesPre-fetch file

CIN Name Expiry Date Amount FNA >3 21<Age< 65 Existing FD>100K Credit Rating SegmentS7930654A Tan Chin Hock 16/04/10 50,000 UT x x xS8055652B Lim Kim Seng 20/04/10 30,000 SD x xS7655843C Kwan Yook Tong 25/04/10 60,000 FCFD x x xS2512545B Greg Fong 29/04/10 10,000 Cards xS6098543A Lim Tan Kheng 31/04/10 100,000 Gifts x

Campaign Results is to offer a customer special Time Deposit of extra 1% for 3 mths based on same amount in UT investmentMininum Placement is 50K for each and maximum placement is 500K for eachPlacement above 100K each will receive free giftsAutomated Credit Card approval with 3 years Annual Fee Waiver

WHEN and HOW

BE When to send Which Channels

SMSKey Notes - FD expiring this XX/XX/XX. Renew with a 3 mth Time Deposit at extra 1 %pa when you invest in Shenton Income Fund for the same amount. For 100K each placement, you will receive an AMEX Black Card with Annual Fee waiver 3 years and a $100 Tru Spa Vouncher


Start Demo

Decision Tables

Promotion Notification messages that maps to promotion code

Identify Promotion Notification Code based on customer profile


Start Demo

Optimized Product Recommendation

� Precise Bundling offer based on Customer Behavior

� Ease, transparency, consistency and governance in business rules and policies

� Dynamic bundles and recommendations

� Reduce turn-around time in reaching out to customer changes

Excel-based Promotional Product Bundling Editor


Start Demo

Send Promotional SMS to Customer

Send promotional SMS to customer/RM to upsell appropriate product bundle based on customer profile


Start Demo

Real Time Dashboard on Blackberries and iPhones

� Business Metrics – Slice and Dice– % Conversion Rate

•By Customer Profile•By Product Category•By Region•By District•By RM•By Channel•By Amount

– Sales Turnaround Around Time•By Customer Profile•By Product Category•By Region•By District•By RM

� Target Audience– Product Manager– Program Manager– Business Owner– Sales Director

Proof Points� Demonstrate how business users can design and

customize business monitoring without involving IT, including enabling early detection and alerts to emerging business situations


Start Demo

Real Time BAM Dashboard

Tracks Campaign Closure rate at the individual branch level and updates this in real time.


Start Demo

Mobile Dashboard

Tracks the KPIs and alerts from an iPhone


Start Demo

Consistency

Speed to Market, Agility

Relevance

Risk Management

Retention

Lower Costs

Faster, Higher ROI

Launch new products or policies in hours to days, rather than weeks to months

Match offers to customers with precision and pre-qualification for higher acceptance

Ensure consistent communications across channels—branch, online, call center, etc.

Apply risk controls in real time for fraud detection & compliance

Satisfy customer needs better with more enjoyable interactions

Streamline processes, create drastically more efficient operations

Work with your existing CRM system; avoid ripping & replacing

Real Time Event Processing an Business Rules Management Benefits

BRMS – Business Benefits

Documents

ILOG Business Rules Solution Enabling Smarter …€¦ · BRMS - Relevancy Across ... Move decision-making ... Ease, transparency, consistency and governance in business rules and