Empowering Your Client Relationship Managers with a Single View of Your Customer. Anand Raisinghani, Industry Solutions, IBM India/ISA

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1 Empowering Your Client Relationship Managers with a Single View of Your Customer Anand Raisinghani, Industry Solutions, IBM India/ISA

2 New ways of working to optimize decisions and actions Traditional Approach New Approach Predict and act Volume Lack of Insight Velocity Inefficient Access Sense and respond Instinct and intuition Skilled analytics experts Real-time, fact-driven Everyone Inability to Predict Variety Back office Automated Point of impact Optimized

3 Leveraging information for business optimization Information-Led Transformation Plan an information agenda Information Agenda Business Analytics & Optimization Strategy Services Establish a flexible information platform Apply business analytics to optimize decisions IOD Software & Solutions Information Infrastructure BI/Performance Management Advanced Analytic & Optimization Services Industry over-performers are 8 times more likely to pursue information-led transformation than under-performers* *Source: IBM Institute for Business Value

4 Getting started with an information-led transformation Information-Led Transformation Plan an information agenda Analyze and use information at the point of industry-specific business impact Optimize processes, manage business performance, and anticipate opportunities and threats Establish a flexible information platform Apply business analytics to optimize decisions Create a single, trusted view of information across the organization managed over a strategic period Ensure cost effective information availability, security, retention and compliance for all types of workloads

5 Getting started with an information-led transformation Information-Led Transformation Create Value Plan an information agenda Establish a flexible information platform Apply business analytics to optimize decisions Lower Costs

6 Banking Business Optimization Map Customer Care Understand Total Customer Relationship & Profitability Product Mgmt & Profitability Financial Risk Mgmt Regulatory & Legal Compliance Consistent Customer Experience Fraud Detection & Mitigation Channel Management Operational Synergies Account Onboarding Paperless Enterprise

7 Effective Use of Information is Key for Bankers Improve Customer Care and Insight Manage Governance, Risk and Compliance Increase Operational Efficiency 1. Derive customer insight to improve & drive organic growth. 2. Create a single view of the customer to enhance banking experience 3. Put trusted information in the hands of frontline employees 1. Deliver accurate enterprise information to risk processes. 2. Use information to accurately prevent, identify and mitigate fraud 3. Safely leverage information with governance programs 1. Deliver trusted information to improve enhance existing process via automation 2. Create trusted enterprise insight and analytics to drive business optimization

8 The Untapped Potential of Banking Information Functional Area Branch Operations Lending ERP & Financials Marketing Campaigns Automation Optimization Opportunity Branch Profitability Manage profitability throughout the branch network at the individual customer and product level Straight Through, Risk-Based Processing Improved profitability through process optimization with riskadjusted decision making Financial Risk Insight Use of real-time information to better assess and forecast risk for improved capital management Personalized Multi-Channel Event Driven Promotions Deliver real time customer insight across channels and business units based on opportunistic customer activity Optimization

9 How does one achieve information oriented results? Provide the business with confidence in the information that is relied on to drive performance Ensure the information is trusted by business Increase relevance and business ownership of information

10 To manage the tidal wave of Information and outperform competition banks need Insight, Expertise and Proven Approach Industry Solutions & Accelerators Information Agenda Business Analytics & Optimization Smart SOA Business Intelligence Trusted Information Business Performance Mgmt Industry Assets and Models Maturity Models Business Solutions Information Infrastructure Content and Collaboration Business Process Management Enabling Technologies

11 About TIAA-CREF For over 90 years, TIAA-CREF has been helping those in the academic, medical, cultural and research fields plan for and live in retirement. Deploy an array of financial products and services to help members live to and through retirement and invest for life's other goals along the way. Keeping with their strong nonprofit heritage, they offer low fees,* a long-term approach to investing, and a full line of financial products and services provided by consultants who never receive commissions. Instead, they are compensated primarily on how well they serve. TIAA-CREF s Mission, Vision and Values To aid and strengthen academic, medical, cultural and research institutions by seeking to provide financial security suited to the needs of institutions, their employees and their families, on the best terms practicable, consistent with our nonprofit heritage.

12 Approach Partnered with IBM in late 2006/ early 2007 for a comprehensive analysis of the services frame work to review the current state. Deliverable included a Roadmap to provide an implementation approach to meet the data needs of the organization and provide the strategic direction for enterprise data management to improve the customer experience and position TIAA CREF to proactively service customers in a demanding business environment. The Data Framework Roadmap incorporated: Business drivers / high level requirements to meet the single view of customer (individual) data needs Channel and Client Services initiatives An organizational structure to provide enterprise guidance and governance required to deliver single view of customer Data quality issues in customer domain sources A recommended enterprise data management architecture to meet customer data needs

13 Findings Summary 111 Representative Customer Data Elements Channel Client View Client Services View % of income at retirement Do Not Call (T/C) Overall Retention Risk Age Do Not Participant Approximate Accumulation Employer Type PIN # Assigned Date Entity Type Preferred Name Book 1 Estimated Wallet Size Pri. Integrity Selling Behavior Book 2 Homeowner Indicator Primary Financial Concern Cell Phone Number Households Priority Code Child Age 0-7 Income Range PRIVACY Child Age Individual Segment Remote Flag Child Age 8-14 Institution Name Retail Investable Assets (IXI) Comments Interest/Hobby Retention Growth Indicator Contact Code IXI Retention Growth Indicator Retired Contract # Job Title Sec. Integrity Selling Behavior Coverage Team Life Stage Secondary Financial Concern Custodial Agreement Indicator Net Worth Association DNC Exemption Description No. of Children Dependent Parent Do Not Call (Federal & State) OPS Income Date Common Data Best Time to Call Home Best Time to Call Work City Employer Gender Last Name Marital Status Middle Name Occupation SSN State Suffix Address Date of Birth Do Not Mail Fax Number First Name Home Phone Number Retirement Date Work Phone Number Zip Code Account Type Code Contact Preference Contact Type Contract Issue Date Contract LOB Code Contract Number Date of Death Earliest Scheduled Retirement Date Federal Tax Bracket IRA Custodial Indicator Issue State Last Transaction Date Latest Scheduled Retirement Date Loan Balance Local Tax Bracket Other Number Outstanding Loan Balance Indicator Ownership Code Plan Number Quarterly Balance Residency Retirement Select Indicator Salary Spouse Date of Birth Spouse Employer Spouse First Name Spouse Last Name Spouse Middle Name Spouse Occupation Spouse Prefix Name Spouse Salary Spouse Suffix Name Status Code Sub plan Number Tax Filing Status Withdrawal Available Percentage Payee Code VIP Indicator ~ 30% of Client Services Elements in Common Data ~ 73 elements (including 22 common elements) provide profile ~ 31% of channel elements in Common Data ~ 60 elements (including 22 common elements) provide profile Client Services has marketing/ house-holding data not currently required by the Web

14 MDM Phase Based Approach

15 Level of Maturity/TCO Functional Maturity Enable security framework Build code tables repository Enable interaction history Enable suspect processing Initial data load Production Install Test Install DEV Install Infrastructure setup / software enablement Automate data governance and quality controls Enforce data governance penalties Centralized data security framework Centralized data quality Enable policies and procedures Align project data governance with TIAA Structure project data governance Data Governance and Quality Key for Proposed Scope Enable account access service Bi directional participant profile service Enable data provisioning with gold copy linkage Refactor customer data, account data and some product data services Provide access & linkage to enterprise data Provide single participant profile service (read-only) Party Data Services Enable automated advice Enable proactive relationship management Enable self-service transactions Automate Controls Centralize common services capabilities for FMBO Repurpose COR and NAD Provide transaction status service Participant read-only data services Cross-channel Process Orchestration Phase 1 Phase 2 Phase 3 Enable straight through processing (STP) Automate process orchestration Implement transaction interaction service Retire Legacy Data Services Centralize participant data service Reduce Total Cost of Ownership

16 MDM Phase Based Approach - Foundational Alignment Platform Enablement Party Domain Services Enable Enterprise Process Models Account Domain Services Business Rules Enablement Product Domain Services MDM EDW RK

17 MDM Phase 1: Foundation & Participant Services (2008) Focus on enhancing the customer experience and improving the delivery of customer information. Address customer data accuracy, consistency and timeliness issues while reducing complexity, risk & cost. Business Value Capabilities Phase 1 Enablement / Foundation Provide single participant profile service Improve participant access & linkage to enterprise data Drive channel parity (IVR, NCC, WEB) Improve customer experience Provide participant-centric view across TIAA-CREF Reduce errors and omissions Improve customer satisfaction Functional Maturity Each phase raises the level of maturity while reducing the total cost of ownership Enable security framework Build code tables repository Enable interaction history Enable suspect processing Initial data load Production Install Test Install DEV Install Infrastructure setup / software enablement Automate data governance and quality controls Enforce data governance penalties Centralized data security framework Centralized data quality Enable policies and procedures Align project data governance with TIAA Structure project data governance Data Governance and Quality Key for Proposed Scope Enable account access service Bi directional participant profile service Enable data provisioning with gold copy linkage Refactor DSV (WCC, OMNI ESF, FMBO Services) Provide access & linkage to enterprise data Provide single participant profile service (read-only) Party Data Services Enable automated advice Enable proactive relationship management Enable event detection services Enable self-service transactions Centralize common services capabilities for FMBO Implement transaction interaction service Provide transaction status service Participant read-only data services Cross-channel Process Orchestration Phase 1 Phase 2 Phase 3 Automate controls Automate process orchestration Repurpose COR Refactor DSV Centralize participant data service Reduce Total Cost of Ownership 2/23/

18 MDM Phase 2: Account Master & Process Integration (2009) Capabilities Our ability to retain, scale service and grow relationships require Business Process Management (BPM) that has value based information delivered to the right people at the right time within the appropriate interaction Phase 2 Service Refactoring Deploy additional data to support selfservice Data services for process orchestration Implement a central data framework for Contracts/Accounts and abstracted Product Business Value Expand self-service capabilities across channels Increase service capacity across channels Improved participant privacy and identity protections Reduce the cost of redundant data services

19 MDM Phase 3: Enable STP (and Business Rules Abstraction 2010+) Each business process and participant interaction requires business rules embedded within critical information / data to drive the optimal results. Business Value Capabilities Phase 3 Solution Optimization Service enable business rules Auto provision required business data Streamline data access Expand Product Domain Enable straight through processing Enable proactive relationship management Automate processes and controls Lower cost of ownership Participant (MDM) Compliance Controls Service Controls Relationship Growth KYC Suitability Fraud T: Process Guidelines Stratification New Business New Opportunity Marketing Need Contract/ Business Product Account Rules (MDM) (MDM) (ILOG)

20 Driving Synergies through an Information Agenda 20 Deployed trusted data assets as re- Taken customer data from our mortgage system, our bank account management system, We now our manage sales system our customer and our information life administration as an asset; system the and opportunities loaded all of for this innovation into our and optimization Customer are endless. Hub We can respond to the dynamics of our business twice as fast. Built real time integration links between the above systems and the Hub Unified After cross-sell/up-sell standardisation, we have removed Reduced over call 400,000 duplicate Providing customer enhanced records services analysis drives new centers and drives loyalty higher than We automatically match & merge duplicate customers at New Business growth opportunities website channels industry norms We have also loaded all of the connected to data 1 into our Business Intelligence Warehouse and we are using Predictive Analytics tools to identify trends & opportunities in our data. Until recently, our Managing Director had 7 customer records on the Bank systems and 5 This results in a range of campaigns. customer records on the Life system. We had already merged the 7 Bank customer records Numerous into 1 acquisitions Bank customer expand record services and we had merged the 5 Life customer Established records data into governance one Life & customer customer baserecord we have finally taken the big step of merging the competency two records into one. Strong One market of the share major position benefits drives of the above is that all of our data across the enterprise is now need integrated for new growth in real strategies time. Therefore, if customer data is changed in usable, any one shared system, services this change is immediately reflected across all of the other systems [this] is obviously driving customer Another significant benefits as element well as of organisational our implementation cost savings. this week It also is improves the introduction the quality of a and joined value up website of the where data in the our customer Business only Intelligence logs in once warehouse. and sees the full portfolio of these Multiple products Lines of Business one place (i.e. mortgage account, current account, Life policy, Pension, etc). Siloed Information Individual Projects Life Insurance Personal Banking Mortgage Banking Reduced duplicate, conflicting views of client base by 30%

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22 IBM delivers business value across the board Canada

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24 Information-Led Transformation Information Agenda Business Analytics and Optimization Strategy Services Plan an Information Agenda IOD Software & Solutions Information Infrastructure Establish a flexible information platform Apply business analytics to optimize decisions BI/Performance Management Advanced Analytic & Optimization Services Industry over-performers are 8 times more likely to pursue information-led transformation than under-performers* *Source: IBM Institute for Business Value

25 Getting Started 1 Briefing Introduction 2 Roadmap Workshop Begin developing your agenda 3 Solution Workshop Architect and plan your first project Involves both IT and line-of-business representatives to develop recommendations that can have an impact on the business and are aligned with the organization s strategic objectives 25