How a single customer view delivers real business results

© 2011 IBM Corporation

Information Management

Bill Harte – MDM Sales Europe

How a single customer view delivers real business resultsHow a single customer view delivers real business results

© 2011 IBM Corporation2


Understanding our customers

How well do you understand your customers ?

Well enough to keep the profitable ones - and lose the others ?

.



Silos of Customer Information

Problems Fragmented view of a customer Unable to understand depth of business relationship with

their customers Uncoordinated customer contact Missed selling opportunities Unknown campaign effectiveness

Other….Other….

Cust ID:Cust ID: ABC1232ABC1232Name:Name: Jane Jane

SmithSmithAddress: Address: 12 Low 12 Low

StreetStreetBristolBristolBS1 9SDBS1 9SD

Email:Email:[email protected]@bt.com

……… ……… n n Sources Sources of data of data

We have the data – so what’s the problem ?

CRMCRM

Cust ID:Cust ID: 1234512345Name:Name: Jane SmithJane SmithAddress: Address: 12 Low Street12 Low Street

BristolBristolBS1 9SDBS1 9SD

LifeLife

Policy No:Policy No: 3333333333333333Name: Name: Jane May Jane May

SmithSmithType: Type: Whole of Whole of

LifeLifeAddress: Address: 12 Low St12 Low St

BRISTOLBRISTOLPremium:Premium: £50pm £50pm

PensionPension

Policy No:Policy No: 44444444444444Name:Name: Jane Jane

smithsmithType:Type: SIPPSIPPAddress: Address: 12 Lowe 12 Lowe


Premium:Premium: £300pm £300pm

Cust ID:Cust ID: 1234512345Name:Name: Jane Jane

SmithSmithMiddle:Middle: MayMayAddress: Address: 12 Low Street12 Low Street

BRISTOLBRISTOLBS1 BS1

9SD9SD



LifeLifeAddress: Address: 12 Low 12 Low

StreetStreetBRISTOLBRISTOLBS1 9SDBS1 9SD



SmithSmithType:Type: SIPPSIPPAddress: Address: 12 Low 12 Low





So what ??

Revenue Enhancement – More intelligent cross-sell & up-sell via complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities

Consistent Customer Treatment – For Example Blending channels to deliver common customer interactions /experiences across all touch points

Choose how to deal with customers – understanding customer enables appropriate decision making.

Operational Savings & Efficiencies – “Once & done” enterprise-wide services for key customer processes such as account changes (name, address)

Privacy & Regulatory Compliance – Central location for consistent rules of visibility & entitlements

M&A Infrastructure – Shortening M&A customer, desktop, & billing integration timeframes

IT Rationalisation and Simplification – Cost savings from simplification and retirement of legacy systems



5

Business drivers

Revenue Identify cross-sell, up-sell

opportunities

Customize product offerings and bundles

Introduce new products quickly

Identify high value customers

Improve customer retention

Revenue Identify cross-sell, up-sell

opportunities

Customize product offerings and bundles

Introduce new products quickly

Identify high value customers

Improve customer retention

Cost Automate manual business

processes

Reduce data errors

Eliminate excess mailings

Identify risk (credit)

Support system consolidation initiatives

Cost Automate manual business

processes

Reduce data errors

Eliminate excess mailings

Identify risk (credit)

Support system consolidation initiatives

Agility/Strategic Initiative Consolidate data from

silos/Integrate new systems quickly (M&A)

Meet demands of new business channels

Grow with the business

Identify key relationships and hierarchies

Agility/Strategic Initiative Consolidate data from

silos/Integrate new systems quickly (M&A)

Meet demands of new business channels

Grow with the business

Identify key relationships and hierarchies

Compliance Reduce risk

Control access to data

Adhere to government and corporate regulations

Manage customer privacy preferences

Compliance Reduce risk

Control access to data

Adhere to government and corporate regulations

Manage customer privacy preferences



ID Last First Street Attribute N…

CRM123 Jones B. 35 West 15th …

ERP789 Jones William 35 West 15th …

SYS456 Jones Billie 36 West 15th …

6

What is Master Data? Why is it important?

Master data is the high-value, core information used to support critical business processes across the enterprise

Master Data is information about customers, suppliers, partners, products, materials, employees, accounts and more

Master Data is at the heart of every business transaction, application and decision

Master Data is not metadata or reference data

Prod ID ShortDescription

Prod Category

ProdClass

Unit of Measure

1234 Phillips Head Screwdriver

SD-01 PH-01 Each

1244 Slotted Head Screwdriver

SD-01 SH-01 Each

1254 Hex HeadScrewdriver

SD-01 HH-01 Each

Gender Code

English Spanish

0 Not Known

Desconocido

1 Male Hombre

2 Female Mujer

9 Not Applicable

No Aplica

Master Data

Reference Data

Metadata



7

Concept of Customer Master Data

CRMCRM

Cust ID:Cust ID: 1234512345Name:Name: Jane SmithJane SmithAddress: Address: 12 Low Street12 Low Street

BristolBristolBS1 9SDBS1 9SD

LifeLife



LifeLifeAddress: Address: 12 Low St12 Low St

BRISTOLBRISTOLPremium:Premium: £50pm £50pm

PensionPension


smithsmithType:Type: SIPPSIPPAddress: Address: 12 Lowe 12 Lowe



DWDW


SmithSmithValue:Value: SilverSilverLT Value:LT Value: A1A1

Master DataMaster Data

Party ID:Party ID:238213923129238213923129

Name: Name: Jane SmithJane SmithMiddle: Middle: MayMayAddress:Address: 12 Low 12 Low

StreetStreet BRISTOLBRISTOL BS1 9SDBS1 9SD

Life: Life: Whole of Whole of LifeLife

Policy No: Policy No: 3333333333333333Pension:Pension: SIPPSIPPPolicy No:Policy No: 44444444444444

Value:Value: SilverSilverLT Value:LT Value: A1A1

Cross Ref:Cross Ref: CRM 12345CRM 12345DW 98765DW 98765

Alerts:Alerts: Potential to ChurnPotential to Churn

Interaction History:Interaction History:Bond Valuation RequestedBond Valuation RequestedCustomer Complaint Customer Complaint


SmithSmithMiddle:Middle: MayMayAddress: Address: 12 Low Street12 Low Street

BRISTOLBRISTOLBS1 BS1

9SD9SD



LifeLifeAddress: Address: 12 Low 12 Low




SmithSmithType:Type: SIPPSIPPAddress: Address: 12 Low 12 Low



2. Load customer and policy based information from key sources

3. Cleanse, match, de-duplicate information to produce a single view

4. Support the capture of other new master data

5. Propagate the enriched information back to the key sources

1. Introduce a new application focused on master data

6. Regularly synchronise modified information between systems



Regulatory Compliance

Marketing/Sales Interactions

Billing

New Product Introduction

Financial Planning

Back office Systems

Fraud Avoidance

Customer Service/ CareCustomer

Self Service

MDM Produces Better Business OutcomesAll departments and business processes

Optimizing the business with right-time information

Ensuring all systems have consistent & complete information in real time

Maximizing customer satisfaction & revenue opportunities

Understanding the choices & planning with accurate information

Enrich

Security

SearchStewardship

Hierarchies

Tools

Operational

End to End Master Data ManagementAuthoring



9

Business Drivers Key Business Processes

IBM InfoSphere MDM is a Leader in Banking

Sales & Relationship Management

KYC/Account Opening

Product & Marketing Management

Regulatory & Compliance


KYC/Account Opening



Business Driver: Up-sell/cross-sell Offer history, improve customer service, understand household valuation.

Improve Compliance

Benefits: Marketing effectiveness/rewards program; Product & Account Penetration: Compliance & fraud prevention

Business Driver: Up-sell/cross-sell Offer history, improve customer service, understand household valuation.

Improve Compliance

Benefits: Marketing effectiveness/rewards program; Product & Account Penetration: Compliance & fraud prevention

Business Driver:

Calculating total customer exposure in a timely and accurate manner.

Consistent customer data delivered to assisted and self-service channels

• Standardize customer on-boarding in compliance with KYC/KYB Policies

Benefits: Consistent customer centric data (Unique-ID, Product/Account Associations, Preferences) delivered for Channel apps, Billing, Payments, Funds-Control, Compliance.

Business Driver:

Calculating total customer exposure in a timely and accurate manner.

Consistent customer data delivered to assisted and self-service channels

• Standardize customer on-boarding in compliance with KYC/KYB Policies

Benefits: Consistent customer centric data (Unique-ID, Product/Account Associations, Preferences) delivered for Channel apps, Billing, Payments, Funds-Control, Compliance.

Business Driver: Reduce systems from 5 to 1 thus decreasing costs, gain 360 degree view, improve data quality

Benefits: Speed to Market and Initiative Costs improved by 30-50%; IT spend cost savings of >$50M

Business Driver: Reduce systems from 5 to 1 thus decreasing costs, gain 360 degree view, improve data quality

Benefits: Speed to Market and Initiative Costs improved by 30-50%; IT spend cost savings of >$50M

Maximize marketing efficiency

Streamline business operations and reduce cost

Comply w/ regulatory requirements & reduce risk

Win new customers and optimize sales channels

Ensure quote-order-invoice accuracy alignment

Maximize marketing efficiency

Streamline business operations and reduce cost

Comply w/ regulatory requirements & reduce risk

Win new customers and optimize sales channels

Ensure quote-order-invoice accuracy alignment



10


IBM InfoSphere MDM is a Leader in Insurance


KYC/Account Opening

Claims Processing




KYC/Account Opening

Claims Processing



Business Driver: Legacy systems are process centric (e.g., policy underwriting, claims, customer service, etc.), unable to get a single understanding of the customer

Benefits: Enable Broker cross and up-selling

and relationship management Establish new business in new

territories more quickly Improved business decision-

making (underwriting risk and pricing)

Business Driver: Legacy systems are process centric (e.g., policy underwriting, claims, customer service, etc.), unable to get a single understanding of the customer

Benefits: Enable Broker cross and up-selling

and relationship management Establish new business in new

territories more quickly Improved business decision-

making (underwriting risk and pricing)

Business Driver: Need for a single, integrated view of customers to ensure marketing campaigns didn’t encourage internal conflict between the brands and duplication of efforts

Benefits: Increased market share w/out

increasing marketing spend Saved approximately US$10 million

annually on integration costs Reduced direct mail and

operational costs by eliminating duplicate mailings

Business Driver: Need for a single, integrated view of customers to ensure marketing campaigns didn’t encourage internal conflict between the brands and duplication of efforts

Benefits: Increased market share w/out

increasing marketing spend Saved approximately US$10 million

annually on integration costs Reduced direct mail and

operational costs by eliminating duplicate mailings

Business Driver: Not able to effect customer-centric

decision-making in existing business processes

Existing systems were process-centric (policy, service)

Benefits: Reduced internal operating costs by

maintaining a single system of record Improved cross selling to the most

profitable clients and households Client retention of profitable clients

Business Driver: Not able to effect customer-centric

decision-making in existing business processes

Existing systems were process-centric (policy, service)



profitable clients and households Client retention of profitable clients

Increase ability to cross-sell/up-sell

Increase margins (# of products per customer)

Increase customer loyalty, lower claims

Improve quality of information to identify risk


Increase margins (# of products per customer)

Increase customer loyalty, lower claims

Improve quality of information to identify risk



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IBM InfoSphere MDM is a Leader in Retail

Introduce and manage products/services/bundles

Deliver targeted, personalized marketing offers

Optimize loyalty programs

Service customers consistently across channels and consistent with customer's preferences

Analyze/understand customer behavior & affinity

Introduce and manage products/services/bundles

Deliver targeted, personalized marketing offers

Optimize loyalty programs

Service customers consistently across channels and consistent with customer's preferences

Analyze/understand customer behavior & affinity

Business Driver: Needed to update information for approximately 10,000 products on its website.

Benefits: Creates a single, up-to-date

repository of product information Automates the publication of

product information on its website Increase client satisfaction by

giving them 100 details about a product

Updates require fewer human resources and help improve reactivity

Business Driver: Needed to update information for approximately 10,000 products on its website.

Benefits: Creates a single, up-to-date

repository of product information Automates the publication of

product information on its website Increase client satisfaction by

giving them 100 details about a product

Updates require fewer human resources and help improve reactivity

Business Driver: Need to streamline the buyer process to set up new items and increase vendor accountability to improve item data accuracy

Benefits: Elimination of manual item setup

processes Improved data quality Efficiently leveraging a single view

of “Item Data” across the enterprise

Business Driver: Need to streamline the buyer process to set up new items and increase vendor accountability to improve item data accuracy

Benefits: Elimination of manual item setup

processes Improved data quality Efficiently leveraging a single view

of “Item Data” across the enterprise

Business Driver: Need to manage multiple customer catalogs (websites), multiple derivatives of the same product

Benefits: Increased speed to market for new products, reduced occurrence of Out-of-Stocks, improved merchandising performance, reduced warehousing and distribution costs

Business Driver: Need to manage multiple customer catalogs (websites), multiple derivatives of the same product

Benefits: Increased speed to market for new products, reduced occurrence of Out-of-Stocks, improved merchandising performance, reduced warehousing and distribution costs

Increase revenue

Improve customer service and retention

Improve operational efficiencies / reduce costs

Speed to market new products and promotions

Improve credit management

Increase revenue

Improve customer service and retention

Improve operational efficiencies / reduce costs

Speed to market new products and promotions

Improve credit management



12


IBM InfoSphere MDM is a Leader in Telco

Customer experience (loyalty) mgmt

New customer acquisition

Customer self service

New product introduction

Campaign & advertising optimization

Bandwidth planning & optimization

Customer experience (loyalty) mgmt

New customer acquisition

Customer self service

New product introduction

Campaign & advertising optimization

Bandwidth planning & optimization

Business Driver: Inefficient service call handling Low net revenue per call Manually calculated bundles resulting in

inaccurate order information Mismatch of quotes to bills and resulting

subscriber satisfaction and employee churn

Benefits: Reduced subscriber and employee

churn Quicker order throughput Less service calls due to higher order

accuracy Higher revenue per call

Business Driver: Inefficient service call handling Low net revenue per call Manually calculated bundles resulting in

inaccurate order information Mismatch of quotes to bills and resulting

subscriber satisfaction and employee churn

Benefits: Reduced subscriber and employee

churn Quicker order throughput Less service calls due to higher order

accuracy Higher revenue per call

Business Driver: No single customer view across LOBs

(Wireline/Wireless, SatTV, Broadband) CSRs treated the same subscriber

differently depending on individual LOB’s value assessment

Inability to effectively market to subscribers for cross-sell



profitable clients and households across all BUs

Client retention of profitable clients

Business Driver: No single customer view across LOBs

(Wireline/Wireless, SatTV, Broadband) CSRs treated the same subscriber

differently depending on individual LOB’s value assessment

Inability to effectively market to subscribers for cross-sell



profitable clients and households across all BUs

Client retention of profitable clients

Business Driver: Customers have to contact various

LOBs for personal information changes Lack of connection between Cellular

and Phone line customers. Silo’d customer information leading to: Lack of consistent information amongst

systems resulting in high errors occurring between applications.

Benefits: Moving to customer-centric model. Enhanced Customer Experience. Improvement in Self-serve initiatives. 360o view of the customer supported. Increase in customer satisfaction. Improve data quality.

Business Driver: Customers have to contact various

LOBs for personal information changes Lack of connection between Cellular

and Phone line customers. Silo’d customer information leading to: Lack of consistent information amongst

systems resulting in high errors occurring between applications.

Benefits: Moving to customer-centric model. Enhanced Customer Experience. Improvement in Self-serve initiatives. 360o view of the customer supported. Increase in customer satisfaction. Improve data quality.


Optimize marketing campaign effectiveness

Increase customer service and self-service

Introduce products more quickly

Maximize customer value


Optimize marketing campaign effectiveness

Increase customer service and self-service

Introduce products more quickly

Maximize customer value



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IBM InfoSphere MDM is a Leader in Government

Eligibility verification

Threat detection – Law Enforcement / Intel

Claims & account fraud

Data sharing

Regulatory and privacy requirements

Eligibility verification

Threat detection – Law Enforcement / Intel

Claims & account fraud

Data sharing

Regulatory and privacy requirements

Business Driver: Improve the efficiency and competence of its caseworkers. Reduce need to access several independent subsystems to gather all of a citizen’s pertinent information,

Benefits: Equips caseworkers with increased visibility

into all of a citizen’s records, enabling them to better identify all pertinent support programs

Routinely analyzes information to better project future service demands and drive efficiencies among programs

Improves services to citizens by improving collaboration among agency offices and helping cut processing times for aid requests

Business Driver: Improve the efficiency and competence of its caseworkers. Reduce need to access several independent subsystems to gather all of a citizen’s pertinent information,

Benefits: Equips caseworkers with increased visibility

into all of a citizen’s records, enabling them to better identify all pertinent support programs

Routinely analyzes information to better project future service demands and drive efficiencies among programs

Improves services to citizens by improving collaboration among agency offices and helping cut processing times for aid requests

Business Driver: Needed to consolidate and update customer information to improve services and prevent fraud.

Benefits: Reduced administrative costs Minimized benefit fraud Improved customer service

Business Driver: Needed to consolidate and update customer information to improve services and prevent fraud.

Benefits: Reduced administrative costs Minimized benefit fraud Improved customer service

Business Driver: Improve data sharing and improve efficiencies to avoid duplication so as to maximize client services

Benefits: Realized an ongoing return on

investment Reduced the creation of duplicate

records Improved eligibility management

and cross-program enrollment

Business Driver: Improve data sharing and improve efficiencies to avoid duplication so as to maximize client services

Benefits: Realized an ongoing return on

investment Reduced the creation of duplicate

records Improved eligibility management

and cross-program enrollment

NYHHS State of ND


Enhance customer / citizen service

Reduce instances of fraud

Increase self-service opportunities

Reduce costs / increase revenue

Achieve compliance

Enhance customer / citizen service

Reduce instances of fraud

Increase self-service opportunities

Reduce costs / increase revenue

Achieve compliance



14

IBM InfoSphere MDM is a Leader in Health Plans

Member Centricity

Claims Management

Member Loyalty & Personalization


Provider Centricity

Member Centricity

Claims Management

Member Loyalty & Personalization


Provider Centricity

Business Driver: Increase customer loyalty and avoid costly compliance penalties

Benefits:Improved member retention and customer satisfaction scoresReduced exposure to regulatory compliance penalties by overall improvements in data management

Business Driver: Increase customer loyalty and avoid costly compliance penalties

Benefits:Improved member retention and customer satisfaction scoresReduced exposure to regulatory compliance penalties by overall improvements in data management

Business Driver: Move from a system centric view to a member centric view to reduce redundancy and save money

Benefits:Reduced duplicate mailings to same member, resulting in $756K savings per yearImproved reliable delivery of EOB to correct person, preventing potential compliancy fines of $1.5M per infraction

Business Driver: Move from a system centric view to a member centric view to reduce redundancy and save money

Benefits:Reduced duplicate mailings to same member, resulting in $756K savings per yearImproved reliable delivery of EOB to correct person, preventing potential compliancy fines of $1.5M per infraction

Business Driver: Increase efficiency and automatic claims adjudication

Benefits:50% reduction in manual claims reviewAnnual automatic claims increase: 372,000Reduced manual claims resolution staff by 75%

Business Driver: Increase efficiency and automatic claims adjudication

Benefits:50% reduction in manual claims reviewAnnual automatic claims increase: 372,000Reduced manual claims resolution staff by 75%


Improve member and provider satisfaction and retention

Improve outcomes and lower costs

Target high value customers with customized benefits

Quickly respond to new compliance requirements

Improve member and provider satisfaction and retention

Improve outcomes and lower costs

Target high value customers with customized benefits

Quickly respond to new compliance requirements



Lessons Learned – from over 600 implementations…..

Successful MDM projects have been done incrementally – don’t try to boil the ocean

Identify low hanging fruit - find a compelling business reason and start with a point solution

Deliver real business value quickly – 4 to 6 months

Though MDM is a strategic programme ROI on First project is critical

Time to implement is critical - you need small successes quickly

Plan to promote successes internally - build interest, support and momentum

Risk for building from scratch is proven to be extremely high

Establish an enterprise governance committee - since really no one line of business "owns" the customer

It is extremely important that you consider existing infrastructure when you start - surround - leverage existing investments - not a full replacement out of the gate



Summary

MDM is a journey – it’s essential to pick the right partner for that journey …..



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IBM is the leading MDM vendor…

#1 market share

600+ customers across a variety of different industries

Clients with 10+ years in production

Recognized MDM leader in – Banking– Insurance– Healthcare– Government

A single unified offering across – All domains– All use cases– All implementation styles– All industries



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IBM is #1 in Market Share for MDM(Source: Gartner, Sep 2011)

Overall MDM

Share (%) 2010

MDM of Customer Data

Share (%) 2010

MDM of Product Data

Share (%) 2010

IBM 20.1 40.3 11.2

Oracle 12.2 20.7 11.1

SAP 11.6 8.5 13.6

Informatica 4.4 11.6 -

Hybris 3.0 - 8.5

Stibo 2.0 - 5.6

Others 46.6 18.9 50.0



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Gartner Magic Quadrants 2010MDM for Customer & MDM for Product, Oct 2010

MDM for Customer DataMDM for Customer Data MDM for Product DataMDM for Product Data



Bill Harte

MDM sales Europe

[email protected]

+353 86 3805585

Thank you ….Thank you ….

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How a single customer view delivers real business results