Business Analytics. enherent. Leveraging Analytic Applications. May Connecting the Dots.

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Brittany Shaw
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Connecting the Dots Business Analytics Leveraging Analytic

Data Explosion There is no bigger problem facing individuals and organizations today than the reality that they can t keep pace with the data explosion.

2 Data Explosion There is no bigger problem facing individuals and organizations today than the reality that they can t keep pace with the data explosion. Real time information is not being effectively managed 59% of managers miss information they should have used 85% of business intelligence is contained in unstructured data - Butler Group 80% of business is conducted on unstructured information - Gartner Group 47% of users don t have confidence in their information 42% of managers use wrong information at least once a week 2010 Corp. All rights reserved. 1

Focus A holistic approach to enabling business

advanced analytic technologies to enable

6 Business Analytics a blueprint for outcomes BUSINESS ANALYTICS enabling the right outcomes. ADVANCED ANALYTICS predicting possible outcomes. Domain Expertise Knowledge Data Mining Text Analytics Statistical Analysis Predictive Models Visual Analytics Prescriptive BUSINESS INTELLIGENCE describing and analyzing outcomes. Query Reporting Dashboards and Scorecards Visual Analytics Analytic Applications Portfolio 2010 Corp. All rights reserved. 5

7 Polaris TM - A Business Analytics Map Business Outcomes The drivers of analytic applications Analytic Applications Portfolio The combination of analytical methods to deliver specific business outcomes Reporting and Analysis Visual Analytics Methods for analyzing results Business Rules Statistical Analysis Text Analytics Predictive Models Methods for forward looking analysis Knowledge Management Data Mining Text Mining Methods for extracting insight Domain Experts Structured Data Unstructured Data Analytic sources 2010 Corp. All rights reserved. 6

Polaris TM Analytic Applications Analytic Applications Fraud Mitigation Subrogation & Recovery Claim Analytics Anti-money Laundering Quality & Safety Customer Acquisition & Retention

8 Polaris TM Analytic Applications Analytic Applications Fraud Mitigation Subrogation & Recovery Claim Analytics Anti-money Laundering Quality & Safety Customer Acquisition & Retention Call Center Optimization Reputation Management Innovation Employee Satisfaction E-Discovery Clinical Analysis M&A Due Diligence Regulatory Compliance Other 2010 Corp. All rights reserved. 7

10 Knowledge Applied through Dictionaries Represented by a word or combination of words that finds insight when applied to structured or unstructured data (text) Captured by software and applied to claims Deployed in two forms: base and compound Example Example Soft Tissue Injury Stress, Strain, Sprain, Swelling, Soft, Tissue, Injury Un-witnessed soft tissue injury where the Claimant: Had no health insurance and, Is unemployed and, Has a prior injury or medical history A base indicator is an idea A compound indicator is the combination of multiple ideas 2010 Corp. All rights reserved. 9

11 Analyzing for Suspicious Activity Claims Database Text Sources Internet Content Imaged Content All data is fused together Domain expertise, data and text mining are used to create LOB dictionaries and scoring models All claims are processed and scored Claims are assigned to 1 of 4 tiers Tier 1 Tier 2 No Suspicion Score Tier 3 Tier 4 High Suspicion Claims are reviewed and validated Intelligent Workflow 2010 Corp. All rights reserved. 10

12 Analytics Enabled Intelligent Workflow Appropriate Claim Examiner Insight Claims Administration Straight through processing Intelligent Workflow SIU Investigative action plan is shared with examiner who either approves or rejects action For approved claims, SIU Executes Investigative action plan SIU Recommends Claim Action Supervisor Other A focus on all data (structured and text) optimizes workflow intelligence 2010 Corp. All rights reserved. 11

Cash Flow Outcome Framework The outcome focus shifts to Cash Flow initiatives Managing cash balances and reserves is mission critical Investment strategies are dependent upon a realtime visibility to

14 Cash Flow Outcome Framework The outcome focus shifts to Cash Flow initiatives Managing cash balances and reserves is mission critical Investment strategies are dependent upon a realtime visibility to cash position Improved cash flow provides more opportunity for investment managers Outcome Framework Business Analytics Initiatives Identify Re-Insurance Recoverable Opportunities Identify Subrogation Opportunities Recover Third Party Deductibles Outcomes Optimized investment management Improved cash flow Business Metrics - Liquidity Ratio - Operating Cash Flow - Net Cash Flow Percentage - Working Capital Ratio 2010 Corp. All rights reserved. 13

Claim Analytics Outcome Framework Focus on Claim Analytics enables several business outcomes and shines light on: Claim frequency, severity, and duration Reserve accuracy Risk/price relationship

15 Claim Analytics Outcome Framework Focus on Claim Analytics enables several business outcomes and shines light on: Claim frequency, severity, and duration Reserve accuracy Risk/price relationship Other Outcome Framework Business Analytics Initiatives Expand Advanced Analytics Platform to include multiple use cases Leverage full power of multi-dimensional reporting capabilities Outcomes Improved risk/price relationship Improved decision quality Risk reduction Optimized loss reserves Increased profits Business Metrics - Combined ratio - Operating ratio - Loss ratio - Risk exposure index - Loss reserve surplus - Capital adequacy ratios 2010 Corp. All rights reserved. 14

Underwriting Outcome Framework Focus expands to include Underwriting - a critical area of differentiation Long underwriting cycle times translate to lost revenue Improvements in underwriting process

16 Underwriting Outcome Framework Focus expands to include Underwriting - a critical area of differentiation Long underwriting cycle times translate to lost revenue Improvements in underwriting process have significant bottom line impact Improved expense and loss ratios enable pricing flexibility and customer acquisition Outcome Framework Business Analytics Initiatives Automate and streamline underwriting processes Improve decision quality with multidimensional reporting capabilities Outcomes Improves service levels Improved customer satisfaction Retained customers Improved decision quality Cost reduction Increased profits Business Metrics - Customer retention percentage - Average speed of underwriting - Customer satisfaction score - Service support score - Underwriting ratio - Expense ratio - Loss ratio 2010 Corp. All rights reserved. 15

Customer Outcome Framework Customer focus completes the framework Outcome Framework Business Analytics Initiatives: Analyze reputation risk Drive support traffic to self-service options Automate

product innovation Outcomes Optimized call centers Improved customer satisfaction Retained customers Acquired customers Increased share of wallet Risk Reduction Cost reduction Increased revenue

17 Customer Outcome Framework Customer focus completes the framework Outcome Framework Business Analytics Initiatives: Analyze reputation risk Drive support traffic to self-service options Automate response Capture customer issues and resolutions Improve Sales & Marketing effectiveness Design new campaigns for most profitable customers Improve success of marketing campaigns Identify new product innovation Outcomes Optimized call centers Improved customer satisfaction Retained customers Acquired customers Increased share of wallet Risk Reduction Cost reduction Increased revenue Increased profits Business Metrics - Risk Exposure Index - Customer satisfaction score - Customer retention percentage - New Product/service in market - Modified product/services - Customer acquisition percentage - Promotion campaign ROI - Marketing spend - New Revenue percentage - Revenue growth percentage - Expense ratio - Combined ratio - Operating ratio 2010 Corp. All rights reserved. 16

19 A Holistic Approach Businesses have faced the obstacle that the majority of relevant information is found in text, outside an organizations databases Text provides far more insight than transactional information Feedback Surveys s Interviews Call Center Transcripts Call notes Service requests Complaints IM logs Internal Information Warranty Claims Warranty notes Customer comments Structured Data Call Center Database Warranty Database HR Database Other Blogs Forum postings Social media News and articles Online reviews Internet Dialog 2010 Corp. All rights reserved. 18

20 VoC Related Use Cases Industry Use Case Business Objective Solution Methods Insurance Employee Satisfaction Accelerate the employee survey review process and enable more surveys annually Analyze employee verbatims and categorize employee sentiment Pharmaceutical Market Analysis Improve marketing effectiveness by targeting key opinion leaders Identify key opinion leaders by analyzing Internet news articles and Blogs High Tech Call Center Optimization Increase Call Center productivity by enhancing the knowledge available to Call Center Representatives Analyze call center records and capture product issues by category. Develop a knowledge repository to expedite issue resolution Healthcare Product Innovation Identify new value added service ideas Analyze customer surveys and categorize idea related responses Consumer Electronics Quality and Safety Reduce the number and cost of product recalls Analyze warranty repair notes to proactively manage emerging issues Telecommunications Customer acquisition, growth and retention Retain loyal customers by identifying new programs Analyze customer data from multiple channels including text Financial Services Customer acquisition, growth and retention Retain customers by establishing proactive programs Analyze customer sentiment, requests and issues in , web forms and service notes 2010 Corp. All rights reserved. 19

21 Business Benefits Derived from VoC Innovation: analyze customer surveys, , call center notes, Internet Dialog, etc. to generate new product and enhancement ideas Accelerate new product introductions Establish and maintain competitive advantage Reputation management: analyze Internet dialog to assess brand impact Proactively manage Brand risk Identify areas where damage control is required Market analysis: analyze data from all customer channels to improve marketing effectiveness Assess the impact of new product introductions and refine messaging early in the product launch Assess the effectiveness of marketing campaigns Evaluate offering strategies for market segments 2010 Corp. All rights reserved. 20

22 Business Benefits Derived from VoC Customer acquisition, growth and retention: analyze call center notes to identify product issues and capture their resolution Improve customer responsiveness and service levels Improve customer satisfaction Call center optimization: Automate the process of receiving, interpreting, sorting, routing, and responding to all incoming s. Reduce cost, improve response time, and increase productivity Quality and Safety: analyze customer and repair notes to get early warning on quality and safety issues Eliminate expensive recalls Reduce cost of recalls with early detection 2010 Corp. All rights reserved. 21

23 Platform Versus Application A platform approach views VoC initiatives holistically. The right platform is deployed and each application is delivered via the platform An application approach looks for the best solution for each use case Platform Feedback Surveys s Interviews Call Center Transcripts Call notes Service requests Complaints IM logs Internal Information Warranty Claims Warranty notes Customer comments Structured Data Call Center Database Warranty Database HR Database Other Blogs Forum postings Social media News and articles Online reviews Internet Dialog Applications: Survey analysis analysis Call center notes analysis Warranty claims analysis Social media analysis etc Corp. All rights reserved. 22

24 Deployment and Delivery Options Delivery Options Hosted option customer owns the Polaris TM software licenses and delivers hosting and operation support services On-Premise customer owns the Polaris TM software licenses and deploys behind their firewall Software as a Service (SaaS) Polaris TM is delivered as a service. The customer does not own the software licenses 2010 Corp. All rights reserved. 23

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