DIGITAL SELLING: HOW ALFA-BANK TRANSFORMED SALES WITH PEGA SALES AUTOMATION. Darya Ruslanova Director of IT Sales, Alfa-bank

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1 DIGITAL SELLING: HOW ALFA-BANK TRANSFORMED SALES WITH PEGA SALES AUTOMATION Darya Ruslanova Director of IT Sales, Alfa-bank

2 About Alfa-Bank Founded in 1990, Alfa-Bank is a full-service bank operating in most sectors of the financial market, including retail and corporate lending, investment banking, leasing, factoring and trade finance. According to its IFRS Consolidated Financial Statements as of 31 December 2016, the Alfa Banking Group, which comprises ABH Financial, Joint Stock Company Alfa-Bank as well as its subsidiary financial companies, had total assets of $38.2 bn, gross loans of $23.9 bn, and total equity of $5.7 bn. Net profit for 2016 amounted to $527 mln. As of December 31, 2016 the Alfa Banking Group serves around 334,000 corporate and 14.3 mln retail customers, while the branch network consists of 733 offices across Russia and abroad, including a subsidiary bank in the Netherlands and financial subsidiaries in United Kingdom and Cyprus Releases per year 500 channels 3000 servers 1,1 bln Giga bytes data workstations 500 systems 3500 ATMs 750 branches 5 Data centers 2

3 The Progression of Economic Value Customization TRANS- FORMATIONS GUIDE Customization IMPRESSIONS STAGE Customization SERVICES DELIVER Commoditization GOODS Commoditization MAKE COMMODITIES Commoditization 2016 Strategic Horizons LLP

4 Business Model Evolution Balance Sheet-Centric Product-Centric Customer-Centric Relationship-Centric Business Driver ALM/Treasury Features/ Functionality Data/CRM Contact/Dialogue with Customer Understanding of Customer Behavior Captive/Indifferent Customer Needs Drive Purchases Historic Behavior Drives Current Interest Aspirations Drive Future Behavior Sales Approach Reactive Pricing/Bundles Push Marketing/ Cross-Sell/Up-Sell Holistic/Goal-Driven Source of Competitive Advantage Regulated/Non-Product Incentives Differentiated Products/Features Customer Knowledge Customer Experience/ Relationship Performance Measurement/ Metrics Financial, Balance Sheet Product Revenue, Product Profitability Customer Revenue, Customer Profitability, Retention Customer Lifetime Value, Loyalty, Relationship Strength 4

5 Customer Journey Map 5

6 Design New NEAREST FUTURE FIRST OPERATIONAL PROCESSES ALFA 3.0 CUSTOMER SERVICING ALFA 3.0 CUSTOMER RELATIONSHIP MANAGEMENT NEXT BEST ACTION LOANS FOR RETAIL PAYROLL Customer Servicing / Call Center for SME CRM for SME From Operational Efficiency SFA for Retail and SME FCM DevOps Pega factory Lead manager Dispute management for Retail/SME Smart offers delivery To business growing Real-Time Decision Management for - Customer Interactions Support - Offers SFA for Corporate Jump to customer growing 6

7 Goals SFA clients, partners and employee relationship management system with functionality for all stage lifetime cycle. 01 Strategic goals Increase number of active clients Improve efficiency Transform corporate culture Change business model to long lasting client relationship 02 Systems functions Workflow with prospects. Create manageable customer life cycle scenario Create effective processes at all sales pipeline stages Increase the efficiency of staff time use Provide mobile solution for sales representatives Provide real-time motivation tracking Formulate common standards for sales activities Create a synergy effect (combining customer vision between all business lines) Provide a tool for influencing the customer CLV Effective onboarding/re-boarding tools NBA integration 03 KPI Increase the number customers of target segments Provide Low cost customer servicing Increase of operating profit per employee Increase the number of active customers per employee Increase the level of staff engagement Increase the level of staff stability Reduce the number of detractors Increase the number of closed sales opportunities per active customer Increase the number of closed opportunities of product bundles Increase the lifetime of active customers 7

8 Scope SFA clients, partners and employee relationship management system with functionality for all stage lifetime cycle. Principles how to build our new system 1. The same interface for all users and possibility to get hints at all stages; 2. Minimum new windows, the more re-use the best we do; 3. All information in one place and easy way to get it; 4. Different settings of one functions for different group of users; 5. Minimum applications for access and self education for new users; 6. Omni-channel; 7. Process oriented sales and service. Users Systems elements Retail SME Corporate Invest HR IТ Cross business cooperation Client view 360 Client workflow Headers Managers Mobile Motivation Task managment Mobile managers Application Details 8

9 Scope: Client View 360 А Our new advantages Customer s assignment for sales team Entire client profile Product portfolio management Client relationship Communication history Build Long-term Relationships with Customers 9

10 Scope: Task Management А Our new advantages Online prioritization tasks Client portfolio management Client orientation analytics and reports All campaigns and marketing Improve Employee Productivity 10

11 Scope: Client and Sales Workflow А Our new advantages Systems and process diagnostic Sales methodology Integration with back-ends Cross platform solution Grow the Number of Active Clients 11

12 Scope: Mobile А Our new advantages Motivation dashboard on mobile Omni-channel Geo tracking of sales activity 12

13 Scope: Cross-Business Cooperation А Our new advantages Lead generation between business lines Lead assignment between sales team Build Long-term Relationships with Customers 13

14 SFA and Customer Lifetime Journey (example) Person: Graduate First work Wedding Children Retired SFA New client Open account CAR Car loan House Deposit Saving product for education, insurance Business Online seminar for starting business PFM Promotions from Partners Mortgage Family Tariffs Package for startup Onboarding Financial seminar Promotion from Partners for Wedding NBA Up sell 14

15 CLASSIC APPROACH: TYPICAL ISSUES KNOWN TOOLS LOW TEAM INVOLVEMENT FEAR OF RESPONSIBILITY BUSINESS DO NOT KNOW THAT IS POSSIBLE RIGHT NOW THE MARKET IS OVERSATURATED WITH HIGHLY SPECIALIZED SOLUTIONS THERE IS ALWAYS SOMEONE WHO WILL MAKE IT CHEAPER

16 Value Generating Features +200% OMNI CHANNELS +150% BUSINESS MODEL +5% ROBOTICS +30% AI WORKFLOW +5% STP +85%

17 DevOps

18 Speaking the Same Language Removed bureaucracy: BRD, FSD, etc. Removed intermediates between Business and IT Business and Development team are using same environment and models

19 Problems We Solved Long manual regression testing Test scenarios are not formalized (all knowledge in one head) Long wait for installation of changes on test environments Many nuances in the installation of functional (requires 1-2 days of an experienced developer) Long time of unavailability on the production environment for the release time (approximately 1 hour)

20 What We ve Done Automatic functional testing by developers Auto-Deployment (DEV, QA, PRODUCTION environments) Pipeline from Development to Production environment Product deployment DevQA Functional Testing DevQA Product Deployment QA Functional Testing QA Deployment Prelive Deployment Production Usual project metrics Features Scenarios = 382 Automatic tested steps = % Automatic testing 7% Manual testing 3% on production

21 Automatic Functional Testing

22 Achievements Implementation of the functional 1 hour from the development to production environment (instead of 8 days) Coverage by test scenarios - 90% Automatic delivery to the environment (~ 10 minutes) Delivery to production environment each sprint (every 2 weeks) Minimizing the crater of defects (most defects are caught by auto-tests on the development environment) Assembling delivery package is no longer the prerogative of the "elite" team members Most deliveries installed without unavailability and participation in functional support Business also writes automated testing scenarios (Acceptance Criteria Automation)

23 Dev Team Efforts Before DevOPS EFFECTIVE EFFORT DEPLOYMENT PREPARATION DEPLOYMENT EXECUTION MANUAL REGRESSION TESTING EFFICIENCY REFACTORING ON FEEDBACK AFTER IMPLEMENTATION ~45% CORRECTION OF DEFECTS

24 Dev Team Efforts with DevOPS EFFECTIVE EFFORT DEPLOYMENT PREPARATION/EXECUTION AUTOTESTS PREPARATION/ACTUALIZATION MANUAL TESTING REFACTORING ON FEEDBACK AFTER IMPLEMENTATION CORRECTION OF DEFECTS EFFICIENCY ~80% This is not a limit To be continued

25 Pega FACTORY

26 Why We Created Our Own Pega School Large continuous demand For Pega specialists Investments in vendor s expertise Vendors usually rotate resources

27 Why We Created Our Own Pega School +13 Pega SAs Passed practical exam ROI = 800% 64 training hours