BPM in Financial Services, Second Edition [2]

Table of contents :
Table of Contents
FOREWORD
Michael Heffner, Appian
INTRODUCTION AND OVERVIEW 9
Layna Fischer, Future Strategies Inc.
Banking and Financial Services Overview
THE ART OF BPM SUCCESS 17
Nathaniel Palmer, BPM, Inc. (BPMI), USA
BENEFITS OF POLICY AND RULES DRIVEN PROCESSES IN LATAM RETAIL BANKING
AUTOMATION 45
Kay Winkler, Negocios y Soluciones Informáticas, Ricardo Ungo, Panama
Canal Authority, Panama
LINKING ARCHITECTURES FOR BUSINESS RESULTS 60
Jude Chagas Pereira, IYCON
ADAPTIVE CASE MANAGEMENT AND THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FACTA) 71
Kay Winkler, NSI Soluciones, Panama
Learn from Award-Winning Case Studies
AFRICAN REINSURANCE, AFRICA 88
Nominated by Newgen Software Technologies Ltd, India
AGFIRST FARM CREDIT BANK, USA 98
Nominated by Bizagi, United Kingdom
AXLE GROUP HOLDINGS LTD., UK 106
Nominated by EmergeAdapt, United Kingdom
BANK DHOFAR 120
Loan Origination
Nominated by Newgen Software Technologies Limited, India
CNP ASFALISTIKI LTD., CYPRUS 132
Nominated by Newgen Software Technologies
COLPENSIONES, COLOMBIA 142
Nominated by Bizagi
CRAWFORD & COMPANY, UNITED STATES 147
Nominated by Appian Corporation, United States
DELTA LLOYD, THE NETHERLANDS 154
Nominated by You-Get, the NetherlandsTABLE OF CONTENTS
6
EATON VANCE INVESTMENT MANAGERS, USA 167
Nominated by EMC Corporation, USA
FLEET ONE, USA 172
Nominated by 4Spires, USA
FREEDOM MORTGAGE, USA 134
Nominated by Freedom Mortgage
GENERALI CEE HOLDING B.V. 185
Nominated by Bizagi, United Kingdom
HCL IBS, UNITED KINGDOM 196
Back Office Optimization
Nominated by Corporate Modelling, UK
HML, UK 208
Finalist: Financial Services, Nominated by IBM, UK
INFOSYS MCCAMISH SYSTEMS, USA 216
Nominated by PegaSystems, USA
NEW MILLENNIA GROUP PLC, UK 230
Nominated by AuraPortal USA
PENSCO TRUST COMPANY, USA 240
Nominated by PENSCO Trust Company, USA
PERSHING LLC, 249
a BNY Mellon Company, USA, Nominated by Pershing LLC, a BNY Mellon
Company, USA
PSCU, UNITED STATES 261
Service Request
Management Nominated by OpenText, Canada
TIAA-CREF, USA 268
Nominated by IBM, USA
UBS BANK, WORLDWIDE 279
Nominated by Whitestein Technologies
Section 3: Appendix
WFMC STRUCTURE AND MEMBERSHIP INFORMATION 209
FURTHER READING: BPM AND RESEARCH

Citation preview

Free Book Offer Welcome to “BPM in Financial Services Second Edition” If you missed the first edition of BPM in Financial Services (Retail $25.00. 263 pages in 9mb PDF), you are invited to download it now for FREE. Use discount code FINANCE on check out and download immediately at no charge.

Download now (263 pages, 9MB) http://bpm-books.com/products/ebook-series-financial-services This book presents the collection of best and most important chapters on this specific topic recently published in our various publications. BPM’s promises are real, but the path to success is often littered with pitfalls and shortcuts to failure. Best practices can help you avoid them. If you are just embarking on using its methods and tools, these authors have a wealth of experience for you to learn from and build on. Whether you are a business manager or an Information Technology practitioner, this special collection of papers will provide valuable information about what BPM can do for you—and how to apply it.

WfMC Annual Awards for Excellence in BPM and Workflow The case studies featured in this book are all recipients of the annual prestigious awards for Excellence in BPM and Workflow. If you’d like YOUR case study to be considered for publication, submit it to the annual BPM awards at http://BPMF.org. Award-winning entries are guaranteed publication.

Business Process Management

in Financial Services Methods, Concepts, Case Studies and Standards in Business Process Management and Workflow This book series contains important chapters previously published in the annual BPM and Workflow Handbook series, the Excellence in Practice series and our other publications and are assembled here with permission.

Excellence in Practice Series Published in association with

23 Years of Thought-Process Leadership

Future Strategies Inc., Book Division Lighthouse Point, Florida

Business Process Management in Financial Services Copyright © 2016 by Future Strategies Inc. All brand names and product names mentioned in this book are trademarks or service marks of their respective companies. Any omission or misuse should not be regarded as intent to infringe on the property of others. The Publisher recognizes and respects all marks used by companies, manufacturers and developers as a means to distinguish their products. The “WfMC” logo and “Workflow Management Coalition” are service marks of the Workflow Management Coalition, www.wfmc.org. Neither the editor, Workflow Management Coalition, nor Future Strategies Inc., accept any responsibility or liability for loss or damage occasioned to any person or property through using the material, instructions, methods, or ideas contained herein, or acting or refraining from acting as a result of such use. The authors and the publisher expressly disclaim all implied warrantees, including merchantability or fitness for any particular purpose. There will be no duty on the authors or Publisher to correct any errors or defects in the software.

Published by Future Strategies Inc., Book Division 3640-B3 North Federal Highway Lighthouse Point FL 33064 USA 954.782.3376 fax 954.719.3746 www.FutStrat.com; www.BPM-Books.com; [email protected] All rights reserved. Manufactured in the United States of America. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, or information storage and retrieval systems—without written permission of the publisher, except in the case of brief quotations embodied in critical articles and reviews.

Keywords 1. Adaptive Case Management, 2. Intelligent Systems, 3. Knowledge Work, 4. Business Intelligence, 5. Business Process Technology, 6. Production Case Management, 7. Big Data, 8. Predictive Analytics, 9. Business Process Innovation, 10. Internet of Things 11. Business Process Management 12. Financial Services

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Foreword Klaus Schwab, founder and executive chairman of the World Economic Forum, famously said, “In the new world, it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish.” This is what digital transformation is all about; using technology to make change more agile, faster, while creating better customer outcomes. If you’re reading this book you’re likely somewhere along the path of driving change in your Financial Services business. This book delivers a vital collection of use cases providing practical insight to those focused on digital transformation. It couldn’t come at a better time. The Financial Services industry is in the middle of a major transition to become more customer value focused, more compliant, and better-adjusted to new normal cost structures. That’s the story behind the story of evolving modern digital technologies including FinTech, Cognitive, Machine Learning, Automation, Robotics, IoT, BlockChain, and other new and interesting opportunities. The challenges for successful digital transformation are plentiful. There is a fundamental shift in expectations around ‘Speed,’ expressed as ever-more-rapid response to opportunities and competitive threats. It’s not about doing old things faster; it’s about finding new ways to do more by extending existing business architecture to include new technologies and new methods (such as ‘citizen development’). It’s all central to one key transformative theme: create and deliver faster. Easier said than done in our complex world where few firms have the latitude to start ‘greenfield’ business. Rather, most firms are dealing with decades of investment in entire arrays of complex, and often limited, legacy business architectures. These are the battleships of business architectures. By definition, they cannot easily pivot. They are the source of the proliferation of data silos that all compound to increase complexity. Oceans of stand-alone apps, one-off answers to latest most critical fire-drill. Banking is a great example where much of business is still aligned by product silos rather than the customer. This is where strategies that adopt modern technology to create ‘digital overlays’ are so critically important. Being able to quickly adapt and create value-adding and compliant answers to business challenges without having to retool legacy is the way to go. It’s critical that the thrust of digital transformation seeks to not only move siloed objectives. It really is possible to have it all by focusing on a portfolio of critical change mandates that include driving new value for customers that is compliant and delivers opportunities to improve overall process effectiveness. Often the results are doing more with existing capacity by minimizing non-value added activities by moving to processes that are more integrated, controlled, and less fragmented. We are seeing lots of examples where effective monitoring and controlling of process is helping across a spectrum of topics including providing more holistic ways of managing compliance and risk globally under regulations like FATCA and the evolving nature of KYC (aka Know-your customer; Know-your-customer’s customer, Know-your-counterparty, etc.). This is the space where BPM, Case Management, Low-Code, and Digital Platforms can play an important role as enablers of innovation. These technologies provide

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FOREWORD the glue to integrate FinTech and other modern technologies into the existing landscape. The result is the ability to compete at “digital speed” – and it’s all being enabled by the next level of transformation in the Financial Services sector. My belief is that our Financial Services industry is in a profound period of transformation; although, to be fair ,at times it’s difficult to tell if transformation is real vs just new collections of buzz words. I think it is real and I’m basing that on real market signals such as the increased importance of consumer choice, expectations of value and emergence of new technologies that can aid a major transformative shift. My sense is that this current transition is profound in scope and impact – not just in terms of retail banking (aka payment platforms, etc.) but across the full spectrum of Financial Services including commercial, wealth, asset management, data providers, exchanges, etc. I expect the future will hold more modern, new, innovative ideas with higher value and better outcomes for most. For that reason, I could not be more optimistic about where Financial Services is headed. Not all will win in this new way of working; but those who adapt will garner the benefits and ultimately move the dial on making banking and capital markets a more effective, transformed, and accountable industry. I am humbled by the great honor of being asked to write this foreword and share my perspectives that are founded in two decades of experience as a Financial Services operations and transformation leader. Also in my capacity as Appian’s FS lead I have had the privilege of working closely with many of the leaders in our industry seeking new ways of working. This book is a great resource for those seeking better ways of working. It outlines the path forward by providing tangible use case examples that will help guide change agents in their thinking about how modern BPM technologies can support the shift to future business models and value-adding business outcomes. Speed may indeed be King, but scale, reuse and consistency all matter more than ever. Collaboration, mobility, mature cloud/on-premise architectures – these are increasingly table-stakes, not in and of themselves differentiators. The right combinations of thought-leading, envelope-pushing technologies are here, ready to be assembled to meet 21st-Century challenges. I wish you great success in your digital transformation journey. Enjoy reading this book, because it will provide invaluable help. Michael (Mike) Heffner Appian’s Global Banking and Capital Markets Industry Lead [email protected]

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Table of Contents FOREWORD Michael Heffner, Appian

INTRODUCTION AND OVERVIEW

9

Layna Fischer, Future Strategies Inc.

Banking and Financial Services Overview THE ART OF BPM SUCCESS

17

Nathaniel Palmer, BPM, Inc. (BPMI), USA

BENEFITS OF POLICY AND RULES DRIVEN PROCESSES IN LATAM RETAIL BANKING AUTOMATION

45

Kay Winkler, Negocios y Soluciones Informáticas, Ricardo Ungo, Panama Canal Authority, Panama

LINKING ARCHITECTURES FOR BUSINESS RESULTS

60

Jude Chagas Pereira, IYCON

ADAPTIVE CASE MANAGEMENT AND THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FACTA) 71 Kay Winkler, NSI Soluciones, Panama

Learn from Award-Winning Case Studies AFRICAN REINSURANCE, AFRICA

88

Nominated by Newgen Software Technologies Ltd, India

AGFIRST FARM CREDIT BANK, USA

98

Nominated by Bizagi, United Kingdom

AXLE GROUP HOLDINGS LTD., UK

106

Nominated by EmergeAdapt, United Kingdom

BANK DHOFAR

120

Loan Origination Nominated by Newgen Software Technologies Limited, India

CNP ASFALISTIKI LTD., CYPRUS

132

Nominated by Newgen Software Technologies

COLPENSIONES, COLOMBIA

142

Nominated by Bizagi

CRAWFORD & COMPANY, UNITED STATES

147

Nominated by Appian Corporation, United States

DELTA LLOYD, THE NETHERLANDS

154

Nominated by You-Get, the Netherlands

5

TABLE OF CONTENTS EATON VANCE INVESTMENT MANAGERS, USA

167

Nominated by EMC Corporation, USA

FLEET ONE, USA

172

Nominated by 4Spires, USA

FREEDOM MORTGAGE, USA

134

Nominated by Freedom Mortgage

GENERALI CEE HOLDING B.V.

185

Nominated by Bizagi, United Kingdom

HCL IBS, UNITED KINGDOM

196

Back Office Optimization Nominated by Corporate Modelling, UK

HML, UK

208

Finalist: Financial Services, Nominated by IBM, UK

INFOSYS MCCAMISH SYSTEMS, USA

216

Nominated by PegaSystems, USA

NEW MILLENNIA GROUP PLC, UK

230

Nominated by AuraPortal USA

PENSCO TRUST COMPANY, USA

240

Nominated by PENSCO Trust Company, USA

PERSHING LLC,

249

a BNY Mellon Company, USA, Nominated by Pershing LLC, a BNY Mellon Company, USA

PSCU, UNITED STATES

261

Service Request Management Nominated by OpenText, Canada

TIAA-CREF, USA

268

Nominated by IBM, USA

UBS BANK, WORLDWIDE

279

Nominated by Whitestein Technologies

Section 3: Appendix WFMC STRUCTURE AND MEMBERSHIP INFORMATION FURTHER READING: BPM AND RESEARCH

6

209 221

Introduction and Overview BPM in Financial Services Layna Fischer, Future Strategies Inc. This new eBook presents the collection of best and most important chapters on healthcare recently published in the annual BPM Handbook and Excellence in Practice series and other publications. BPM’s promises are real, but the path to success is littered with pitfalls and shortcuts to failure. This book is going to appeal to those getting into BPM in Financial Services and struggling to engage colleagues into the journey. It provides realistic and pragmatic guidance on how to approach BPM initiatives, along with a wide range of modern case studies developed by those who have undertaken real BPM programs. For those setting out on the BPM journey, you'll find the direct guidance on business case development and ROI calculation examples particularly useful. Perhaps more importantly, the case study authors also share their real-world best practices and pitfalls to avoid.

Section One: Overview THE HEART OF BPM Nathaniel Palmer, BPM, Inc., USA The impact of new technologies, the mandate for greater transparency, and the ongoing aftershocks of globalization have collectively removed nearly any trace of predictability within the business environment. As a result, sustainable competitive advantage no longer comes from scale and efficiency but adaptability – the ability to process streams of information flows, make sense of these, and rapidly translate these into effective responses designed for precision rather repeatability.

BENEFITS OF POLICY AND RULES DRIVEN PROCESSES IN LATAM RETAIL BANKING AUTOMATION Kay Winkler, Negocios y Soluciones Informá-ticas, Ricardo Ungo, Panama Canal Authority, Panama The following analysis and reflections represent the gathered experiences our team members at NSI (Negocios y Soluciones Informáticas, S.A.) have made during the last eight years, implementing more than 150 BPM solutions in several countries but mainly in Latin America (LatAm), in the financial industry. Being the results and conclusions of a broadly experienced, vertically specialized but only a single organization, this paper is complemented by our correspondent peers to serve as a practical guideline for applied and proven business process implementation methodologies and ROI metrics, allowing for continued improvements.

LINKING ARCHITECTURES FOR BUSINESS RESULTS Jude Chagas Pereira, IYCON Organizations today have adopted business process management as a must-have initiative to further their success. This is driven by many factors, the need to rationalize cost, the allure of promised results, and also the mounting peer pressure where “everyone is implementing BPM.”

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INTRODUCTION AND OVERVIEW Irrespective of the motive that started an organization onto the BPM journey, every organization today finds itself in a juncture, where they have to measure the cost of the BPM initiative, and quantify the benefits to the stakeholders.

ADAPTIVE CASE MANAGEMENT AND THE FOREIGN ACCOUNT TAX COMPLIANCE ACT Kay Winkler, NSI Soluciones, Panama There are staggering amounts of new regulatory requirements each year that threaten the very operability of many businesses. The question of how to turn these challenges into real business opportunities becomes ever more existential for companies in a globalized and fiercely competitive market. That is where successful companies increase their reliance on modern technologies and where, in practice, Adaptive Case Management (ACM) stands out. The financial industry, typically being among the most mature verticals when it comes to business process management disciplines, has faced, since 2013, an especially pressing compliance requirement which in many instances not only required banks, wealth management organizations and insurance companies to completely revamp their current “Know Your Customer” (KYC) approach but to also envision a thoroughly new way to conduct customer management and origination.

Section Two: Proof of Success AFRICAN REINSURANCE, AFRICA Nominated by Newgen Software Technologies Ltd, India African Reinsurance Corporation is a leading player in the reinsurance sector in African region. At present the client has the membership from African Development Bank, 41 member countries of the African union, 107 African insurance and reinsurance companies and four non-African Development Finance Institutions. The client has spread its operations across seven regions including the Head Office at Lagos, Nigeria.

AGFIRST FARM CREDIT BANK, USA Nominated by Bizagi, United Kingdom AgFirst is part of the national Farm Credit System, the largest agricultural lending organization in the United States. With assets of more than $27 billion, AgFirst provides funding and financial services to 19 farmer-owned financial cooperatives in 15 eastern states and Puerto Rico. These cooperatives, operating as Farm Credit and AgCredit agricultural credit associations (ACAs), offer real estate and production financing to more than 80,000 farmers, agribusinesses and rural homeowners.

AXLE GROUP HOLDINGS LTD., UK Nominated by EmergeAdapt, United Kingdom In January 2012, Axle Group Holding, one of the UK's largest multi-channel tyre retailers, replaced four eCommerce systems along with a back-office platform to provide case workers with a tool to deliver customer service and post-order treatment. EmergeAdapt built the eCommerce systems and a new back-office case management platform, integrated to all four sites, and to a branch and warehouse system written in DataFlex. All systems were launched in December 2012.

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INTRODUCTION AND OVERVIEW BANK DHOFAR Loan Origination Nominated by Newgen Software Technologies Limited, India Established in January 1990, Bank Dhofar commenced operations with two branches, in Muscat and Salalah. Today it is one of the fastest growing Banks in the Sultanate of Oman, with a strong presence in Corporate Banking, Consumer Banking, Treasury Banking and Project Finance. The bank realized that to facilitate and manage the growth of its retail assets, it needed to enhance its operational capacity, productivity, and ability to scale-up operations. Automation of key business processes was identified as a key imperative. The bank decided to automate two of its key business processes, Retail Loan Origination (covering Home Loan & Personal Loan), and Credit Card Processing.

CNP ASFALISTIKI LTD., CYPRUS Nominated by Newgen Software Technologies CNP Asfalistiki Ltd has the largest market share of General Business within the Cyprus Insurance Industry and has branches all over Cyprus. The CNP Asfalistiki Ltd., Company was incorporated in 1981 as a subsidiary of Cyprus Popular Bank Public Co Ltd (CNP Asfalistiki Ltd Bank). Since January 2009 there has been a Strategic Partnership’ between Cyprus Popular Bank Pub-lic Co Ltd (CNP Asfalistiki Ltd Bank) and the French Insurance Group CNP Assurance. The strategic partnership aims to consolidate its leading position in the Cyprus Insurance Market and to further improve the quality of services, utilizing the dynamics and experience of CNP Assurances.

COLPENSIONES, COLOMBIA Nominated by Bizagi Since 2007, as part of the reform of the Colombian social security system, the government has been working on the modernization and improvement in efficiency and service of the pension system. This was previously under the management of an entity with innumerable problems of information management, quality of service, out dated technologies and slow processes.

CRAWFORD & COMPANY, UNITED STATES Nominated by Appian Corporation, United States With 700 offices in more than 70 countries, Crawford & Company provides claims management services used by the largest insurance providers in the world. A core part of Crawford's business is Global Disaster Response for incidents such as hurricanes in the U.S or tsunamis in Japan. Crawford must deploy small armies of claims adjusters to the world's most devastated regions so life – and business – can begin to return to normal in the quickest time possible. These adjusters are not Crawford employees; they are contractors who are un-schooled in Crawford business processes.

DELTA LLOYD, THE NETHERLANDS Nominated by You-Get, the Netherlands Delta Lloyd Group is an expert, reliable and accessible financial services provider. We have a single goal: to offer security to our customers, now and in the future. We operate under three strong brands: Delta Lloyd, OHRA and ABN AMRO Insurance.

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INTRODUCTION AND OVERVIEW Our product and service offering covers the areas of insurance, pensions, in-vesting and banking. And we do not only service consumers, but small and large companies, multinationals and pension funds as well.

EATON VANCE INVESTMENT MANAGERS, USA Nominated by EMC Corporation, USA Founded in 1924 and one of the oldest investment management firms in the United States, Eaton Vance offers individuals and institutions a broad array of investment strategies and wealth management solutions. Eaton Vance has a long-standing reputation as a leading developer of creative strategies with strong investment merit. The ability to anticipate the evolving needs of investors and meet them with timely innovations continues to be a hallmark of the organization.

FLEET ONE, USA Nominated by 4Spires, USA WEX Fleet One is a midsized company that provides fuel cards and other financial services to private and governmental organizations with fleets of vehicles. The 9person marketing department was struggling with managing their workload. They receive numerous requests from company management and colleagues in other departments for preparing marketing collateral, advertisements, exhibits at trade shows, marketing programs, etc. On an ongoing basis the department is typically working on 20 or more requests at a time.

FREEDOM MORTGAGE, USA Retail Title Track Rewrite Process. Title Ordering and Review are key components of the mortgage financing process. Title ordering and the title search process reveal the financial obligations that could potentially impact the sale of the property, including such actions such as lawsuits, liens, legal claims, etc. The mortgage lender holds responsibility for the title review process.

GENERALI CEE HOLDING B.V., Nominated by Bizagi, United Kingdom Generali CEE Holding (Generali) is a leading insurance group in Central and Eastern Europe with total assets under management of €14.8 billion and more than 11 million clients. In 2011-2014, we embarked on “Project Puccini,” a large-scale initiative to significantly boost process visibility, productivity and efficiency in the area of Corporate Risks underwriting for 10 countries throughout Central and East-ern Europe.

HCL IBS, UNITED KINGDOM Back Office Optimization, Nominated by Corporate Modelling, UK HCL IBS is an outsourcer carrying out policy administration and affiliated services in the UK closed book Life Assurance and Pensions market place. We deliver those services to demanding commercial SLAs, cheaper than the insurance companies with whom we contract and we have to make a profit!

12

INTRODUCTION AND OVERVIEW HML, UK Nominated by IBM, UK HML responds faster to customer communications, streamlining workflows for incoming correspondence with IBM Business Process Manager. When your business depends on your clients' trust, you need to make sure that you meet their expectations, not just most of the time, but all the time. As a leading provider of outsourced mortgage, savings and loan administration services for the financial services sector, HML understands this better than most.

INFOSYS MCCAMISH SYSTEMS, USA Nominated by PegaSystems, USA The life insurance industry is complex – multitudes of products, different markets, each with their own unique set of processing rules, many policy owners holding multiple policies, spread across broad geographic regions – and each expecting the same customer care they experience when interacting with companies such as Apple, Amazon, etc. As a service provider, supporting call center and back office operations for 36 insurance carriers, this complexity increases exponentially. Call center and operational processes were carrier specific and the outdated/legacy system limitations acted as a bottle neck to consolidate and unify these processes.

NEW MILLENNIA GROUP PLC, UK Nominated by AuraPortal USA New Millennia Group PLC’s (NMG) business model operates within the £22 billion per annum United Kingdom temporary recruitment industry. Providing invoice funding, credit insurance, payroll and administration facilities to recruitment agencies operating nationwide. NMG have been working within this industry since 2000 and hold both trade body and government licenses in order to operate. Their administration processes and government compliance issues are very complex and are susceptible to several major changes in any one year. NMG have a workflow cycle of seven days.

PENSCO TRUST COMPANY, USA Nominated by PENSCO Trust Company, USA Many individual investors would love to use their retirement savings to purchase non-publicly traded, alternative assets in today’s economic environment, but the complexity of administering these assets has caused many financial institutions to opt out of offering them as part of their investment platform. As a regulated banking company since 1989, PENSCO Trust has been one of a relatively small number of leading retirement account custodians that permit financially savvy, self-directed individual retirement account (IRA) owners to invest in alternative assets.

PERSHING LLC, a BNY Mellon Company, USA, Nominated by Pershing LLC, a BNY Mellon company, USA Prior to implementing its Task Management solution for onboarding new clients to Pershing LLC, a BNY Mellon company, the Client Transition (conversion) team relied on a highly manual, paper-intensive project planning system to track the conversion process and manage multiple tasks. This required frequent in-person meetings, e-mails and phone calls among departments. Administration was difficult and time consuming as project plans had to be 13

INTRODUCTION AND OVERVIEW printed and shared prior to each meeting and updates were restricted to a single team member from each department.

PSCU, UNITED STATES Service Request Management Nominated by OpenText, Canada PSCU is one of the largest credit union services organizations in the U.S., representing close to 700 credit unions. PSCU implemented OpenText Assure in 90 days, enabling them to realize significant cost savings, improve customer service and satisfaction, and increase efficiencies, The Assure application factory provides out-ofbox, industry best practice components to ensure a quick time-to-value and continuous process improvement. PSCU Customer Service Agents use the Assure Work Center to manage requests and resolve issues very quickly. The PSCU customers at the credit unions use the self-service portal to log requests and monitor the status of requests in real-time.

TIAA-CREF, USA Nominated by IBM, USA TIAA was the vision of the philanthropist Andrew Carnegie and founded in 1918 (nearly 100 years ago) through his Carnegie Corporation of New York and the Carnegie Foundation with the goal of supporting the financial well-being of college teachers through a pioneering system of annuities and low-cost life insurance. CREF was established in 1952.

UBS BANK, WORLDWIDE Nominated by Whitestein Technologies Our submission is based on the successful adoption of Adaptive Case Management by UBS Wealth, a division of UBS Bank. UBS is enhancing their global operations with client-centric collaboration, operational visibility, adaptive process improvement, through the 'PM1' portfolio management suite built with the Living System's Process Suite (LSPS). LSPS is designed for cases in which adaptive changes to data state are made by a goal-oriented software controller. This ensures that cases evolve in coordination with events and situational change in order to adapt in real-time to a goal-focused execution path.

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Section 1 Banking and Financial Services Overview

15

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The Art of BPM Success Nathaniel Palmer, BPM, Inc. (BPMI), USA 1. INTRODUCTION Business Process Management (BPM) is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries. This is the first consensus-led definition of BPM to emerge since BPM developed as an identifiable software segment more than a decade ago. Yet it goes to the heart of what is driving interest in BPM today – the ability to improve and automate how we manage both our business processes and the information that supports them. The impact of new technologies, the mandate for greater transparency, and the ongoing aftershocks of globalization have collectively removed nearly any trace of predictability within the business environment. As a result, sustainable competitive advantage no longer comes from scale and efficiency but adaptability – the ability to process streams of information flows, make sense of these, and rapidly translate these into effective responses designed for precision rather repeatability. Today we are in what many see as the third phase of BPM, marked by Intelligent BPM Systems or iBPMS, which builds upon the previous two generations, yet extends into directions previously out of reach. “Intelligent?” you may ask, “as opposed to Dumb BPM?” No, not dumb, per se, but blind. Whereas previous generations of BPM offered limited ability to make sense of business activity flows, iBPMS is distinguished foremost by a “sense and respond” orientation. This notion frames the Phase Three of BPM in terms of the synergistic combination of three groups of capabilities: 

Phase One – separating systems (application logic) from the processes (business logic) which they support;



Phase Two – presenting a flexible architecture that supports adaptable, goal-driven process models by maintaining the intelligence for how to access information and application resources without having the bind this into a rigid process model; and



Phase Three – building on the first two sets of capabilities while delivering visibility and feedback which shows what is going on within a process, as well as what will likely occur in the near future. The first two phases of BPM have set a solid foundation for enabling adaptable systems, allowing BPM adopters to respond with far greater agility than ever before – moving away from the command-and-control structure which has defined management systems for the last 30 years. For the first several years of the BPM market, these sorts of applications dominated. This also limited the potential market for BPM software, however, because for most firms the exception is the rule. The vast majority of business processes are dynamic, not standardized, and thus require the business systems (e.g., deployed software) that support them to adapt quickly to changes within the business envi-

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THE ART OF BPM SUCCESS ronment. As a business technology, the greatest value of process management software is delivered not through automation and integration alone, but by introducing a layer between users and existing IT infrastructure to allow business systems to adapt and keep pace with the constant found in most business environments. Fully realizing the ability offered through orchestration, however, requires the ‘situational awareness’ necessary to adapt business systems to a changing business environment – the ability to sense and respond. By taking the lid off the black box of automation, the Phase Three of BPM offers a framework for continuously validating and refining an understanding of business performance drivers, and adapting business systems accordingly. This will require a new level of transparency of processes and operations that is sure to present cultural and human factors challenges. But this is nothing new for BPM. At the end of the day BPM is only slightly about technology. It is, instead, mostly about the business and the people. What is indeed new, however, and at the center of the Phase Three opportunity, is the ability now to adapt systems continuously to match the ever-changing business environment. The model most frequently referenced throughout this chapter, this continuous loop of visibility and adaptability offers one of the first real leverage points for transforming business through adaptability.

2. THE EVOLUTION OF INTELLIGENT BPM To understand the opportunities offered by Intelligent Business Process Management, it’s helpful to consider the phases of maturation solutions have gone through over the last decade. During technology expansion of the mid- to late-1990s, the management of business processes was typically limited to the repetitive sequencing of activities, with rigid, ”hard-wired” application-specific processes such as those within ERP systems. Any more sophisticated degree of workflow management generally imposed a significant integration burden, frequently accounting for 6080% of the project cost with little opportunity for reuse. Still, integration was typically limited to retrieval of data or documents, similarly hard-wired with one-to-one connection points. These early process management initiatives often focused on integrating and automating repetitive processes, generally within standardized environments. Whether focused on Straight-Through Processing transactions or a discrete process such as Account Activation, these are applications where the flow and sequence of activities is predetermined and immutable. The role of exception handling here is to allow human intervention to quickly resolve or correct a break in the flow of an otherwise standard process. By the end of the 1990s, however, BPM had emerged as an identifiable software segment, a superset of workflow management distinguished in part by allowing process management independent of any single application. This was enabled by managing application execution instructions separate from process flows, so processes could be defined without limitation to single application, as well as through support for variable versus hard-wired process flow paths. The first wave of BPM deployments were typically aimed at bridging the island of automation described above, such as closing gaps in existing ERP deployments. Early BPM solutions were differentiated by integration-centric functionality, such as application adapters, data transformation capabilities and product-specific process definitions (e.g., an order-to-cash process). Eventually, the introduction of standards such as Web Services and advances in the development tools within BPM suites lowered the cost and complexity of data integration. This began to shift

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THE ART OF BPM SUCCESS the fundamental value proposition of BPM from discrete capabilities to enabling the management of business logic by business process managers, without threatening the integrity of the application logic (the infrastructure that is rightfully managed and protected by IT personnel). The availability of standards-based protocols significantly lowered the burden on BPM adopters for building and maintaining integration infrastructure, freeing time and resources to focus on the process and business performance, rather than being consumed with plumbing issues. Over time this facilitated a refocus of process management software from that of automation and integration to orchestration and coordination, bringing BPM into the realm of business optimization. Business environments are dynamic, requiring the business systems that support them to be so as well. This means that systems must be able to easily adapt to changing business circumstances. Phase Two of the BPM opportunity was presented through making orchestration a reality – the ability to connect abstracted application capabilities across orchestrated business processes, thereby transforming existing automation infrastructure into reusable business assets. What separates orchestration from automation is presented by a fundamental shift in perspective, from thinking of processes as a flow of discrete steps, to understanding processes in terms of goals and milestones.

3. BEYOND INTEGRATION TO ORCHESTRATION Orchestration allows systems to mirror the behavior of the rest of the business environment (one defined in terms of objectives rather than scripts). Over the last decade, orchestration has introduced a visible shift in the axis of business computing. As firms realize the opportunities presented by orchestration, it offers (arguably mandates) a wholesale rethinking of the role of applications and information systems. Orchestration has already had a visible impact on the direction of the BPM market, enabled by standards protocols (notably XML and the core Web Services stack of SOAP, UDDI, and WSDL), the emergence of Service-Oriented Architectures (SOA) has provided a new level flexibility and simplicity in resolving integration issues. In fact it has to such an extent that it almost seems redundant to discuss in the context of forward-looking perspective of modern BPM. Now we can nearly take for granted that the underlying systems of record are decoupled from how we access them – that access is enabled through a services layer rather than a programmatic interface that requires integration at the code level (i.e., “tightly-coupled”). What SOA provides for BPM and other software environments is a common means for communicating between applications, such that connections do not need to be programmed in advance. As long as the BPM environment knows where to find information and how to access it. This is critical to dynamic processes where the specific information, activities and roles involved with a process may not be predetermined but identified as the process progresses. Of course this does require, however, that the information and infrastructure sought to be accessed is exposed as services. For example, core system capabilities can be exposed as containerized Web services with a WSDL description, able to be invoked by any Web services compliant application, or increasingly with a RESTful interface allowing integration points and data variables to be defined at design time, but resolved at run-time, eliminating the inherent problems of hard-wired integration.

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THE ART OF BPM SUCCESS 4. LEVERAGING CONTENT AS A SERVICE: INTEGRATING UNSTRUCTURED INFORMATION While the evolution of Service-Oriented Architecture has dramatically improved the accessibly of structured information through standardized interfaces, access to unstructured information can be far more challenging. Consider for a moment where customers reside in your firm. The answer is most likely "everywhere" – records, transactions, profiles, project data, recent news, and other sources of structured and "semi-structured" information (such as correspondence and other documents without uniform representation). For many firms it would take years to rationalize all the places where customer data might be found. But by instead knowing where to find it and how it is described, it can be left intact yet used for multiple purposes. Following the same strategy as is presented by SOA for accessing structured information, a relatively new standard called “Content Management Interoperability Services” or more commonly “CMIS” enables a services approach to “content middleware” by exposing information stored within CMIS-compliant content repositories, both internally and externally managed sources. As content is captured or otherwise introduced to a process, it can be automatically categorized and indexed based on process state and predefined rules and policies. This presents a virtual repository of both content and meta-data that describes how and where content is managed at various stages of its lifecycle. Meta-data is exposed to the system and process nodes, but invisible to users who instead are presented with the appropriate content and format based on their identity the current state of the process.

5. SHIFTING FROM EVENT-DRIVEN TO GOAL-DRIVEN The notion of orchestration has changed the role of BPM from that of a transit system designed to shuttle data from one point to another over predefined routes, to that of a virtual power user that “knows” how to locate, access and initiate application services and information sources. In contrast with more easily automated system-to-system processes and activities, “knowledge worker” processes characteristic of manual work involve a series of people-based activities that may individually occur in many possible sequences. This transition in computing orientation can be described as the shift from eventdriven where processes are defined in terms of a series of triggers, to goal-driven where processes are defined in terms of specific milestones and outcomes (goals) and constant cycles of adaptations required to achieve them. In event-driven computing, systems respond to a specific event – a request for information is received and the appropriate information is sent, or a process step is complete and so the results are recorded and the next step is initiated. In most cases, the nature of event-driven computing requires explicit scripting or programming of outcomes. Goal-driven processes, however, are far more complex. A process that has only 2030 unique activities, a relatively small number for most knowledge worker processes, may present over 1,000 possible permutations in the sequencing of activities. This of course presents too many scenarios to hard-code within linear process flows in advance, or to create a single process definition, which helps explain the difficulty traditionally faced in the automation of these types of goal-driven processes. Rather, this capability is enabled through the application of goals, policies and rules, while adjusting the flow of the process to accommodate outcomes not easily identifiable. Goal-Driven Scenarios In many cases each subsequent step in a process is determined only by the outcome and other circumstances of the preceding step. In addition, there may be

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THE ART OF BPM SUCCESS unanticipated parallel activities that occur without warning, and may also immediately impact the process and future (even previous) activities. For these reasons and the others described above, managing goal-driven processes requires the ability to define and manage complex policies and declarative business rules – the parameters and business requirements which determine the true “state” of a process. Goal-driven processes cannot be defined in terms of simple “flow logic” and “task logic” but must be able to represent intricate relationships between activities and information, based on policies, event outcomes, and dependencies (i.e, “context.”) Such a case is the admission of a patient for medical treatment. What is involved is in fact a process, yet the specific sequence and set of activities most does not follow a specific script, but rather is based on a diagnostic procedure which likely involves applying a combination of policies, procedures, other rules, and the judgment of healthcare workers. Information discovered in one step (e.g., the assessment a given condition) can drastically alter the next set of steps, and in the same way a change in ‘patient state’ (e.g., patient goes into heart failure) may completely alter the process flow in other ways. The patient admission scenario described earlier is an example of this. What is needed to successfully execute an admission process is a super user who knows both the medical protocols to make a successful diagnosis and the system protocols to know where and how to enter and access the appropriate information. Alternatively, BPM can exist as the virtual user layer, providing a single access point for the various roles involved, while assuming the burden of figuring out where and how access information. Yet what really differentiates this as a goal-driven system is the ability to determine the sequence of a process based on current context. For example, a BPM system can examine appropriate business rules and other defined policies against the current status of a process or activity to determine what step should occur next and what information is required. Facilitating Better Decisions vs Mandating Actions Often the flow and sequencing of a goal-driven process is determined largely by individual interpretation of business rules and policies. For example, a nurse who initiates a patient admitting process will evaluate both medical protocol and the policies of the facility where the healthcare services are administered. Similarly, an underwriter compiling a policy often makes decisions by referring to policy manuals or his own interpretation of rules and codes. As a result, what may be an otherwise 'standard' process will be distinguished by exceptions and pathways that cannot be determined in advance, but at each step each activity must nonetheless adhere to specific rules and policies.

6. PHASE THREE: INTELLIGENT BPM The first two phases of BPM laid a solid foundation for enabling adaptable business systems, by allowing business logic (processes, policies, rules, etc.) to be defined and managed within a separate environment, as well as using an open approach to communicating with other systems (Web Services). This has provided a level of adaptability that allows BPM adopters to respond to changes in the business environment with far greater agility than ever before. This shift towards goal-oriented computing has laid the path for Phase-Three BPM, which combines integration and orchestration with the ability to continuously validate and refine the business users’ understanding of business performance drivers, and allowing them to adapt business systems and process flows accordingly.

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THE ART OF BPM SUCCESS The effect of Phase Three BPM is to ‘take the lid off’ what has for years been a black box shrouding automation. With the third phase of BPM, visibility combines with integration and orchestration to enable business process owners and managers to discover the situation changes which require adaptation. Phase Three of BPM offers a framework for continuously validating and refining an understanding of business performance drivers, and adapting business systems accordingly. This should represent in a new and significantly greater level of interest and adoption of BPM software, by attracting firms seeking to optimize business performance, rather than integrating and automating systems and tasks. Part of the recent evolution towards iBPMS technology is inclusion of more sophisticated reporting capabilities within the BPM environment itself. This is both enabled and in many way necessitated by the greater flexibility of the architectures introduced with the BPM suites that define Phase Two. With these environments, the ability to support non-sequential, goal-driven models is greatly increased, requiring more feedback (reporting) to enable success execution of this type of less deterministic process models. With few exceptions, reporting on process events and business performance was previously done only after a process had executed, or otherwise within a separate environment disjointed from the process. This obviously prevented any opportunity to impact the direction or a process, but was based on a limitation of system and software architectures. Specifically with regard to BPM, process models were most commonly defined as proprietary structures, and in many cases compiled into software. Thus, changes either required bringing down and recompiling an application, or were otherwise limited to discrete points in the process (such as exceptions and yes/no decision points).

7. BPM AND SOCIAL MEDIA In an era when an aberrant Tweet can in a matter of minutes costs shareholders millions, it is the meta-context of business events across a spectrum of structured, unstructured, and semi-structured information that defines the larger perspective of business activity. The impact of mobile and social capabilities in enterprise systems, as well as external social networks is having a very real material impact on business. It has become critical (even if comparatively smaller but clearly growing) piece of the business event stream. Most workers have access to outside information, and already no doubt incorporate this to their existing work patterns. They do this because the information available through Google, Wikipedia, and specific blogs is no doubt more comprehensive, more current, and likely more accurate than internal sources when it comes to topics and events occurring outside of the organization, and in some cases even those happening on the inside. This is because these sources benefit from socialization – the continuous scrutiny, fact-checking and updating offered by the surrounding social network. Here trust and reputation represent the critical leverage points for the value of information, as there is no top-down governance nor authentication of information would otherwise be expected in a corporate setting. The information in question is only as valuable as the trust in and reputation of its authors – and typically not the originators but the network in place to vet. Trust and reputation hardly play any role at all in the command-and-control world of process automation. A control flow token travels down a predefined path from

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THE ART OF BPM SUCCESS one node and another, and with passes control without bias or prejudice. Often a manager sits above multiple running processes, detached from front lines, and may engage in 'load balancing' by shifting work items from one subordinates queue to another. Perhaps just as common an occurrence is circumstances where work performed on a given activity is preceded by the labor of someone else, with having no specific awareness nor concern of the others’ reputation, nor any opportunity to act on it if they did. The modeled processes that provide the foundation of BPMS environments today, rarely take into account either the existence or lack of trust and reputation in the design of routing logic. In social media, however, trust and reputation are key. It is these two factors that offer the crucial leverage point for the success of any social endeavor. Within a social network we pick and choose our partners not on firsthand experience typically, but rather on their respective positioning within a broader framework of familiar relationships. We make decisions about accepting links, becoming 'friends' and passing on information based who they know that who we know. It is highly unlikely anyone would respond favorably to a request from any individuals with whom there is no means to validate reputation or any other basis to establish trust. Can you believe everything you read on the Internet? No, of course not. Yet this is the very point of social media – that the network of ‘antibodies’ represented by the crowd of linked individuals, in many cases with no more association than their affinity or membership to that particular network, will systemically attack and expunge any infection of misinformation. Through this socialization, like a well-functioning immune system, only accurate details are spared, or otherwise the infected data is sufficiently discredited such that it is immediately obvious what is credible and what is not. The way that social computing can have the greatest impact on the execution of work is by applying the same social computing and social media concepts to business processes. Specifically, it is the ability to leverage the collective insight of a group, network or ‘crowd’ of individuals. In this way the network functions as an organizational immune system, not as controlled group, managed by top-down authority, but rather as a social community. The value and validation offered through this type of intra-organizational socialization can be grouped into one of three forms: 

Social Modeling -- leveraging social media conventions within process discovery and modeling to engage stakeholders or otherwise deliver better validated results than possible through traditional analysis.



Social Collaboration – leveraging internal social networks to form goaldriven, virtual teams who collaborate and ‘socialize’ around a given activity or set of activities.



Social Chatter – leveraging collections of events and event data from either or both internal and external networks to inform decisions or otherwise generate actionable information within a business process. Social Modeling is one of the first recognizable instances of leveraging enterprise social software within BPM, a practice that is has been for at least a decade prior to the emergence of contemporary social media. For example, the “Collaborative Distributed Scenario and Process Analyzer (ColD SPA)” was a research project launched over a decade ago, premised on the notion that involvement of key personnel during process modeling is necessary for both model accuracy and gaining stakeholder buy-in, yet despite this models are most commonly developed by small

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THE ART OF BPM SUCCESS teams due to inherent the complexity and difficulties involved in the modeling process. Specifically, both the methods behind process modeling and the tools used to support it impose an inevitable learning curve, which either leaves out key stakeholders or otherwise requires meditation by “modeling professionals” who must interpret and explain details, thereby both slowing the process and risking biasing the result. The ColD SPA prototype was developed to demonstrate how a web-based tool could be used to facilitate the engagement of stakeholders directly within the modeling and discovery process. The Cathedral and the Bazaar It is often said that process models have three states – the “as-is,” the “to-be,” and “the way it is really done.” When modeling is left to subject matter experts, only a limited view of potential improvements is presented. Worse yet, the reality-based view of how things actually work in practice is typically omitted, leaving only an idealized (and often naively ignorant) definition of the as-is state. Without an accurate baseline, the desired to-be state will be more difficult to win support for and likely difficult to realize in the practice. Simply adding to the mix a rarified group of chieftains (political stakeholders versus actual end users) to weigh-in with their opinions and observations may offer a better understanding of things, but falls short of true socialization. It is unlikely to provide for the serendipitous discovery of potential process improvements, or new processes, which arise from normal interaction (i.e., not as a part a formal discovery session) of workers within a social network. A model for this is presented in how Open Source Software (OSS) is developed, as described by Eric Raymond in his seminal work, “The Cathedral and The Bazaar.” Raymond distinguishes between the traditional model of The Cathedral, where software is managed by a formal governance model, where access between releases is limited to discrete group of anointed stakeholders, as the case with project-led modeling efforts; and The Bazaar where electronically connected, yet otherwise officially unacquainted users offer continuous scrutiny and, in the case of OSS development, add periodic improvements (patches, bug fixes, et al.) as a currency for encouraging other contribution. The result is a shift away from the centrally managed, command-economy model that governs traditional development practices, to a market-based approach where broader functionality and higher quality software is realized through many small contributions and improvements offered by the larger pool of software consumers. This is essentially the same concept pursued by the first wave of social-enabled BPM platforms, which provide not just a platform for collaborative modeling, which alone does little to transcend the cathedral model, yet also enable ‘the bazaar’ by connecting a much larger pool of users to connect through private and public communities. These platforms allow users to post events in a familiar Facebook Wall medium, which allow other users to comment on and otherwise identify either existing or proposed process models, post documents and other information, as well as to compose working models based on ‘snippets’ of prebuilt software functionality. Beyond the Virtual Water Cooler The term “Social Collaboration” may at first appear redundant. After all, what collaboration isn’t social? The answer is found, however, not in how collaboration is delivered, but how collaborating parties connect in the first place. It is in this regard that BPM offering Social Collaboration depart from other forms of Computer-Supported Collaboration (CSC) such as ‘chat’ and email, which require pathways to be

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THE ART OF BPM SUCCESS preordained and typically lack any business process context. Today’s more robust BPM environments provide the ability identify and connect with the relevant experts, not already integrated within the business process flow, but to do so within the work space of the BPMS (i.e., to enable ad hoc collaboration within the execution of a business process task.) A business user can leverage internal social networks as well as a ranked organization chart to enlist the help of individuals outside of the standard process flow to complete a given task. This may include creating a temporary collaboration space organize individuals and related information around the completion of a given task. Ideally, and an important distinction between BPM-enable Social Collaboration and generic white-boarding, what occurs within this space should remain as part of the permanent audit trail of the process instance, including even a virtual representation of the space itself and all accessed information saved in the form of a case folder. This latter ability is an example of how BPM enables Case Management, with regard to both the capture of process context and information, as well as the ability to invoke guidance at any given time in the process through the identification and engagement of outside experts. The ability to recall through the audit trail individuals proven helpful in similar circumstances (but not otherwise associated with a given process task) illustrates how trust and reputation can be leveraged in the completion of a business process managed within a BPMS environment. Ideally, individuals’ past performance and/or ranking by past collaboration partners is captured by the platform and represented as part of the social network hierarchy. Divining Business Process From Business Activity Streams A founding principal of business process management is that business activities must occur within the process itself to be manageable. This thinking originates in the Taylorist meme that you cannot improve what you cannot measure, and by extension you cannot measure what occurs within the ad hoc, unstructured realm outside of the process model. Yet it is a fact that much if not most of business activity occur in the white space outside the boundaries of a predefined process model. Streams of discrete activities or events collectively represent the “Social Chatter” that define backdrop of every business. Yet the ability to capture, filter, analyze and ultimately leverage collections of such events and/or associated event data to inform decisions and otherwise generate actionable information within a business process is a notable value point of BPM. This capability is premised on the “Wall” concept that was first popularized by Facebook and is now arguably the most recognized (and in demand) aspects of social computing. The event stream allows users to subscribe to events, which may be either manual (individually authored) or automated (machine generated) event entries, as well as to filter these by various categories corresponding to event tags. The event stream represents an efficient way to quickly communicate business data to business users, typically including the ability to deliver the same format to mobile devices. Leveraging social interaction within the BPM user interface extends the reach of BPM beyond the traditional worklist metaphor and desktop environments common to previous generations of business software, supporting real-time view into business activity. Why does this matter? Because a fundamental value point of all BPM is the ability to accelerate response time to business events. Early modality process improvement focused on the low hanging fruit of automatable activities. Yet most events

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THE ART OF BPM SUCCESS today occur outside of the realm of what can modeled in advance. The next wave of performance improvement will come from generating real-time analytics from business activity streams (both internal and external) and connecting these to the type of closed-loop environment offered by BPM. Although the exact metrics vary between specific events and individual organizations, in virtually every case the value realizable through response to event declines sharply as soon as the event occurs. The faster the response, the greater the realizable value. The total reaction time from the discovery of an event to the moment that that action is taken can grouped into three categories: 

Data Latency - delays capturing event from operations



Analysis Latency - delays translating events into analytics

 Decision Latency - delays acting on analytics Traditionally, the greatest loss of value occurs in the delay in capturing the event (such as recording the event in a transactional system.) Here significant value can be preserved by capturing the event in real-time, such as by using a Social Chatter capability as illustrated on the previous page. Reducing latency here offers the greatest historic benefit, however, value is also lost in the analysis and time elapsed before action is taken. In the context of BPM with social capabilities, an event can be actionable almost as soon as it occurs. This again involves tagging the event at the source, so that context is preserved, and as a result the need for additional analysis is diminished. The event appears within a stream on your handheld device, and with it context linked to either an individual or another point of origin that allows you to quickly assess the best response. From that event you may launch a corresponding process, or leverage Social Collaboration to enlist the support of experts within your network. Time-based Value of Business Event Response Regardless of the specific circumstances involved, the value of the response is greater closest to the moment of the complaint, diminishes over time and after a certain period in time, any response is going to be of little value. There is not a single set of hard metrics for all organizations, or all events, but in every case, there is predictable value gained from the ability to capture an event. It could be related to a sales opportunity, or field maintenance, or terrorist threat, in every case the faster the response the greater the value. It can be assumed that the ability to take action on a specific event will always involve some delay. Yet there is a similar inevitability that the value lost as a result of that delay will follow a utility curve, not a straight line. Thus, the greatest source of value will always come from faster notification and actionability, rather than faster decision-making. The value of faster decisions (automating the function of knowledge workers in the decision-making process) offers little value, particularly when compared to the cost of poor decisions made in haste. Because of the greater the delay in notification and actionability, there is greater pressure on making decisions sooner rather than losing further value. Yet the opportunity lies in reducing Infrastructure Latency. By getting actionable information into the hands of knowledge workers sooner, iBPMS systems offer a predictable source of business value and clear differentiation from passive systems (i.e., notification only, without the ability to facilitate a response.)

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THE ART OF BPM SUCCESS Yet clearly not all events by themselves alone are actionable. By using event filtering and associating metrics based on the relative trust and reputation of event originators, collections of events can be grouped into meaningful patterns which may in aggregate represent an actionable outcome not otherwise visible through the examination of events individually.

8. WHY BPM IS CRITICAL TO HOW WE MANAGE CONTENT Over the last decade most, small and medium, and certainly nearly all large enterprises have invested in some combination of Electronic Document Management (EDM), Web Content Management (WCM), and/or Enterprise Content Management (ECM). As these environments are increasingly converging, we will refer to them collectively as “ECM.” ECM offers a critical tool by helping organizations keep pace with the explosive growth of unstructured information; an ever-expanding volume of content that shows no signs of letting up. ECM has become a popular source for introducing workflow management to the organization. Typically this includes document routing and approval workflows, capturing the steps involved in creating a document, or automating a basic process such as a travel request or expense report. What ECM provides is governance and integrity of content and data. Outside of controlling access and authorization (i.e., who gets to see what), what ECM doesn’t provide is governance of work – managing how that content and data is used in the course of business. For this reason, if you’ve got ECM, then inevitably what you also have is a workflow management capability, but to optimally improve and automate how you manage content and your business processes, what you need is BPM. BPM provides the means for connecting the content from within ECM and other System of Records (SORs) to an underlying process where that content is both used and created. In this way, BPM provides a transactional thread for managing this information across processes that inevitably span different applications, and often organizational boundaries. It allows for control of not necessarily the content and information, but rather how it is used in business operations. For example, in common business processes such as “order to cash” and “procure to pay” there is a combination of SORs involved. Data and information (i.e., both structured and unstructured content) define the order in terms of financial details and customer, as well as other information likely stored within an ECM repository and other SORs. Yet none of these systems alone has the complete picture, end-toend across the process lifecycle. In contrast, what BPM provides is a consistent transactional “thread” enabling end-to-end management and visibility out of reach by any of the underlying systems. BPM in essence is the practice of managing business operations in terms of processes, which span application, departmental, and even organizational boundaries, and which are specifically managed within a “BPMS” or “Business Process Management System”. During earlier days of business computing and enterprise IT, it was recognized that the practice of managing data within the applications where it was used presented significant business risk. In particular, breaks in the continuity of data between applications, and the potential for corruption or lack of concurrency. For this reason is it was determined early in the history of IT that data should be managed separate from applications, as part of a common Database Management System or DBMS.

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THE ART OF BPM SUCCESS This notion has been fundamental to IT architecture for the last 40 years. Yet just as the notion of abstracting data from applications has defined traditional IT, modern Enterprise Information Management (EIM) understands the need to abstract processes and business logic in the same way with a BPMS layer. BPM systems offer an ideal platform for process automation, in particular with regard to repetitive processes involved with well-defined structured data, creating efficiency through automation and effectiveness through consistent performance. These types of processes are generally characterized as rarely changing, with their integration points well-established, and often associated with existing transactional systems. Combining BPM with existing application-specific workflow automation allows the combination of organized process structures with backend interfaces, creating a system of record for both business data entities and the content involved. From an information management point of view, the resulting fully auditable log includes the complete context and history of the evolving data flow. It is this same consolidation of elements – content, policies/rules, and information access – that distinguishes BPM from other information software systems and allows the representation of the entire process lifecycle. In this way, BPM provides the core platform through which various information sources and repositories can be integrated. As communications have become increasing digital (or digitized) and as interaction with customers are now more often taking place within an electronic media, ensuring consistency of communication across multiple application environments and back repositories (e.g. ERP, CRM, ECM, WCM, etc.) is critical. Again, it is not only likely you have ECM already but chances are there are multiple domain-specific SORs in place for specific business areas, such as Procurement, HR, regulatory filings, or discrete business areas. In addition it is likely there are departmental and even potentially redundant ECM repositories. Across all of these, BPM offers a consistent transactional thread for teams to collaborate transparently and securely through the organization of structured and unstructured business data and content – following the process lifecycle rather than sticking within the confines of application silos. This also means having a consistent user experience, following the same transactional thread and end-to-end process with a common user interface.

9. BPM AND CASE MANAGEMENT The ability to deliver a common user interface and user experience across multiple applications is a critical advantage of BPM over ECM and workflow. Further, the end-to-end process lifecycle is both information-intensive and inherently datadriven. It inevitably involves the capture of information that leads to actions being taken and decisions made that can be fully anticipated in advance. It requires a balance between that which can and should be predefined and automated. This approach is a reflection of the increasing complexity and unpredictability of knowledge work, which is what we increasingly referred to as “Case Management.” Although there is sometimes confusion of the use of this term, case management as a general notion and application type has been around for decades, however, in this case we are referring to the modern manifestation, typical called “Adaptive” or “Dynamic Case Management”, which today represents an essential capability of modern BPM platforms.

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THE ART OF BPM SUCCESS Where workflow automation and even the first generation of BPM systems follow specifically a pre-defined process route, a predefined path for each item – modern BPM supports the combination of workflow automation with facilitation of ad hoc or collaborative knowledge work (e.g., not predefined or structured) that has been out of reach to work management software. In this way BPM and Case Management enable great transparency into collaborative processes, as well as more effective prioritization of tasks when managing activities across multiple cases and workloads. BPM facilitates this by presenting a more unified interface across application silos, offering a single-access-point to information trapped within legacy systems, but needed by knowledge workers, or even customers, with modern “anywhere, any device” expectations. The key to successful automation is to provide a balance between relieving the burden of repetitive drudgery and “busy work” (e.g., to reduce this through automation) without being overly restrictive over the aspects of work that should otherwise allow for user control and input. BPM offers the combination of offloading repetitive and predictable tasks to automation, while allowing knowledge workers to make smart choices and apply best practices in their decision-making that is the essence of the value being created. BPM offers an opportunity for evolution and modernization in order to keep pace with rapid advances in mobile, social and cloud computing; an opportunity to build bridges between the current islands of automation by utilizing the case focus to combine isolated processes. It presents a realistic and practical “future-proofing” for enterprise IT. Below is a summary table which highlights some of the core differences between ECM and Workflow and BPM and Case Management, in particular with regard to how information is shared and capabilities are delivered. ECM and Workflow

BPM and Case Management

Scope

Single application, document or form; data and object model specific to application or document, not shared.

Common UI and transactional thread spanning multiple applications and process lifecycle; data structures based on process definition (process instance data) and separate from “payload” or applications where work is performed.

Security

Application-specific security, or authorization based on document-specific or form-specific processes.

Security bound to roles defined by process swim lanes and the activities they contain; role-based security applied to case folder, content, as well as fine-grain control of work items.

Analytics

Work item specific reporting, limited to a single document, repository, or application.

Advanced analytics enable identification and reuse of patterns and exceptions, operational visibility.

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THE ART OF BPM SUCCESS

Data Integration

Typically data is based on form fields (specific fields within and electronic form) or otherwise application-specific data fields. Data is typically entered or viewed via these forms and not accessible as a shared service or system-to-system resource.

Connectors are provided to integrate external data into the virtual case folder and case record; Data can be manipulated (extracted and transformed or “CRUD” operations) if data structures are defined in the process or as part of external services.

10. GETTING STARTED The starting point for any BPM initiative is typically the most critical event in determining the project’s success. It can also be one of the most challenging and frustrating periods as teams grapple with issues such as which process to target, what politics are involved, and often simply how and where to get started in the first place. Certainly no one plans to fail. Yet with any type of project, IT-oriented or otherwise, success is by no means a certainty, and in fact for BPM in particular, it occurs less than half the time. Last year BPM.com released market research which showed that BPM-related initiatives succeeded less than 50% of the time, which is consistent with other analysts’ cited failure rates. To be clear, this should in no way detract from the potential value of BPM, nor is this failure rate necessarily higher than other business and technology areas. This is particularly true with the introduction of technologies with similarly far-reaching impact on business operations, as seen with BPM. In all such cases, providing a specific plan for success in the form of a Project Charter and mutually understood success criteria is essential. For BPM specifically, however, the BPM.com research offers further guidance for getting it right when getting started, by avoiding the common pitfalls most commonly associated with failed projects. Listed in order of frequency of mention, these are: 1. Failure to Define Realistic Boundaries 2. Resistance by End Users and Stakeholders 3. Lost Executive Sponsorship Sponsorship can be lost through attrition or a significant change of assignment. Yet the fact is that executives have short attention spans, and if they’re not seeing the results they were looking for they will move on to something or someone else. Traditionally the most common issue dooming any new initiative is cultural resistance; stakeholders and end users don’t want to participate or feel they were left out of the process and they rebel. You built it, but they didn’t come. One of the critical factors for this is ensuring they are engaged from the outset. Yet the most common pitfall is found in failure to define realistic expectations and boundaries at the outset. Scope creep dooms any project. With BPM typically this is an overshoot for processes where the processes and associated rules are too far-reaching, too complex and it becomes politically intractable to reach agreement on how the process(es) should be defined and performed. When getting started with any new BPM initiative, avoiding these common pitfalls is not simply a matter of luck, but should be a deliberate strategy – there should be a well-defined and explicit plan for success. This success place should be part of a charter established at the outset. Whether a formal “Project Charter” or simply

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THE ART OF BPM SUCCESS written memo setting expectations with stakeholders and the project sponsor, the charter will set the direction and tone for the project, and should be documented in clear and specific terms, identifying how and why the project will succeed, as well as how and when success will be measured. In order to offer the best chances for success, there are seven best practices that should be followed when getting started with BPM. Practice #1: Select the Right Starting Point Selecting the right starting point is critical to project’s success. Yet this less about the process itself, but rather about the momentum created by demonstrating early proof-points and benefits. As a starting point, avoid processes that are already well-defined, are overly complex, or are politically-charged. Instead, seek out identify opportunities and processes that are characterized as paper-intensive, involving tasks done on a frequent basis (daily), lacking a rigid or controversial definition, and that offer an immediate and measurably positive impact on stakeholders and end users. Once you have the momentum, proof-points, and the wisdom of experience from initial success, then go back and tackle the more difficult process improvement opportunities. Your starting point is the solid platform on which everything that follows will rest; it needs to make perfect sense in terms of your project aims and goals, offer a basis for the value you’re looking for and (naturally) you need enough of the right resources to make it work. And as you’re unlikely to be doing this solo, don’t forget stakeholder engagement; the process you choose has to be compelling – if it doesn’t grab the interest, it won’t garner the support. Filter your options by asking yourself a few ‘reality’ questions: Is this process something that is so politically impractical that you couldn’t touch it? Is it something that you’re going to be able to use again? Is it visible and likely to make stakeholder’s lives better? Lastly, will successful transformation make heroes of those engaged in the process throughout the organization? Don’t underestimate the importance of the last point. The ideal starting point will generate excitement and momentum because stakeholders will understand what’s in it for them, and will work with your project team to help ensure your success. This is also why it is important to engage them in the prioritization process, as outlined below. Rank Process Targets with Stakeholders Work with stakeholders in a white-boarding session (or some other visual means) to identify and prioritize processes, ranking them in terms of both the impact and value they offer if addressed effectively, as well as the relative complexity involved in doing so. You’re striving for a target area that is likely to generate excitement and demonstrable value, yet is not so complex that it will otherwise set you up for failure. Consider the difficulty of each process option – but not in terms of the effort involved in performing the process, but rather how resistant people will be to changing it. Asking that will reveal aspects of how change will be implemented. Can you define the vision for how it will be different? Are there mutually agreeable metrics for improvement, such as cycle time reduction, quality improvement, greater capacity or lower resulting costs? Ultimately the goal is to strike a balance between demonstrability and achievability. It must be clearly visible and offer real value, yet do so within a time frame short enough to keep stakeholders engaged and on board.

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THE ART OF BPM SUCCESS Practice #2: Set Process Boundaries to Control Scope Keeping in mind that the most commonly cited pitfall was the failure to set realistic boundaries, defining the end-points of the process is critical from the outset. This is important both for the likelihood of success, as well as for the ability to demonstrate that success. It is also possible that the original target process is later determined to be excessively complex. In this case, look for ways to separate out an addressable proportion of the larger process, work with that to demonstrate proofpoints for the benefits of BPM, and then use that as a leverage point to go after the other process equivalent. Practice #3: Starting With Words Before Pictures One of the common misperceptions of Case Management is that there is no upfront modeling involved. This is far from the truth; you will need to engage in a considerable amount of modeling of business rules, data models, and screenflows. There will also be modeled workflows, including both automated processes for structured, repetitive tasks, and conceptual process models that may not be explicitly scripted within the system but are nonetheless an important part of the requirements definition. Of course the same is true for BPM, where most of the system’s capabilities will be defined within process models. Yet when you’re trying to find the real starting point, you can’t begin by drawing diagrams with boxes and lines. The starting point to the starting point is a written understanding of the target process; a written narrative. When writing your narrative, you need to answer (among others) the following questions: What are the outcomes that this process provides? What are the data and the resources that are dry in these processes? What are the specific activities? What are the roles of those who will be involved? A written narrative keeps things clear as you move forward and add the details and additional information during the decision-making process. Identifying Goals, Outcomes, Resources, and Participants In order to narrow down the options, it’s time to break things down and draw up a list of what capabilities will be enabled by the solution as a business function. First, begin by specifying the “what” in terms of the expected outcomes and the required capabilities to achieve them. Second, establish the “why” and “how” of the system from the perspective of stakeholders and system interactions. Ask yourself the following key questions: Who’s performing it? What data did they create? What data did they need and what are they actually doing with it? What are the actions—the transformations, verbs, actual performers? Differentiating the “who’s” and the “what’s” of specific roles and specific individuals is a vital part of choosing the right process. Practice #4: Asking the Right Questions The sequence of the questions that you ask is as important as the questions themselves. “What?” questions give you the facts, the realities; answer those first and then it’s safe to move on to the “Why?” questions that can otherwise distract you with their baggage, drawing you towards political factors. “Why?” questions must be answered but not until you’ve gone into the measurable and quantifiable triggers and dependencies that the “What?” questions can give you first. Start With What’s and Who’s In the narrative, we identify the elements needed to create your own model. A crucial step is to identify the various “who’s,” their roles and the role details, then define and expand on those details. Once the first layer is clear, follow the trail to the next “who,” their role, and so on. There is always a path of triggers, clues, and rules to

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THE ART OF BPM SUCCESS be followed and it’s that path that will tell you what questions to ask and in what order. Then Ask the Why’s, When’s, and White Space After the “who’s” and the “what’s” have been detailed, it’s time to move on to the “why’s,” “when’s,” and white space. Filling in these fine detail gaps is an integral element to understanding the ins and outs of what is occurring within the process. Practice #5: Leverage User-Centered Design Technology is seductive and a common mistake (despite its apparent obviousness) made with BPM initiatives is to focus on the technology and its functionality as opposed to how it is used. Yet the focus on the “how” is critical to understanding the user’s perspective. For the user, it’s not about what the system does, it’s all about how to use it and – more importantly – why they should. Creating personas which represent not just use cases but specifically a “day in the life of” perspective of actual users, will result in a solution which faces far less user and cultural resistance, leading to fewer change management and training requirements and ultimately, significantly improved user adoption rates and productivity. Identification precedes engagement; first of all, identify the users and stakeholders for your BPM or Case Management project. There are four broad categories in any BPM project: builders, managers, participants, and customers (and in each of those groups there may exist subgroups). Of key importance is that you use this identification or mapping stage to create a unique user experience tailored to the needs of each group. The secret to keeping each group fully engaged is to present them with a ‘noise-free’ user experience which offers minimal distractions from their own concerns. Practice #6: Early Involvement Reduces Overall Risk One of the most promising approaches for introducing BPM is by leveraging the methods associated with Agile development. Agile emphasizes delivering demonstrable results quickly and in tight, measureable increments that engage business stakeholders. The emphasis on early and on-going validation allows much greater alignment with the business than is afforded with alternative approaches. In particular on critical matters such as prioritizing the order that capabilities are delivered, as well as the validation of assumptions made during discovery. Early involvement in the project also helps to increase user adoption, because involvement creates a sense of familiarity and shared ownership (and therefore responsibility for success). Another hallmark of Agile methods is the notion of continuous testing, and combined with stakeholder engagement, the result is to effectively conduct usability testing at each stage, allowing usability issues to be identified much earlier and be more easily resolved. This results in more successful outcomes, as well as more cost-effective effort – not because there is less work per se, but rather less re-work because the consistent validation ensures development is closely aligned with the business stakeholder’s goals and expectation. Whether your organization or project team formally embraces Agile, engage stakeholders early and often. Conduct a Regular Stakeholder Workshops While the notion of a “focus group” might sound clichéd, there is still no more efficient way to obtain agreement on the goals and success criteria than face-to-face discussion. Workshops should be held at regular intervals, and specifically from the outset of the initiative, to identify expectations, as well as validate findings during discovery and analysis.

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THE ART OF BPM SUCCESS Then, at the focus group, ask the stakeholders to describe to you the high level process; this will enable you to begin to map out the process. The focus group environment also can be used to explore the mission of the group that owns the process, who their customers are, what the inputs and outputs are, and – most importantly – you can begin to identify their goals and prioritize them. Practice #7: Measure from the Start As the old adage says: “You can’t improve what you can’t measure” so what better time to start measuring than the beginning? However, in order to begin to measure, you need clarity on the project specifications and the expected improvements. Put another way, you need to know how success is defined for your project. And there’s the link back to Practice #2, your identified stakeholders, users and sponsors are there to help identify and (importantly) agree to the measures. By keeping measurement in mind from the start, you ensure that you don’t begin your process improvement project with a missing target. Of course, it is equally important that your chosen yardstick correlates with the objectives of the project – the business goals that prompted it in the first place. Defining Performance Metrics and Success Criteria The defining feature of a good metric is its objective and consistent measurability coupled with an easy comprehension by even the least technically-minded stakeholder – improvements should not only be made but be visibly made. It should be simple, elegant and effective. In fact, the more obvious the metric is, the more it effectively becomes the business case. If, by the nature of the measurement, the improvement to stakeholders’ and users’ lives is self-evident, no more persuasion will be needed. Linking back to Practice #3, a key enabler in setting metrics and measurements is getting the narrative right. Part of the narrative exercise is developing a common vocabulary for all those involved in the project - a ‘controlled vocabulary’ or common lexicon. A single shared language is critical to project success and can give you a lateral route to consensus between different stakeholder factions. Focusing too heavily on achieving consensus on how things work can stymie the discovery process. Yet a common vocabulary lays the groundwork for agreement via the more neutral element of terminology. Along the way, as part of the discussions, you’ll also be establishing agreement on the parameters of the process, the metrics, measurement techniques, and ultimately, the whole project. Identify and Quantify Your Goals Goal definition drives the design activity. The first step in quantifying and analyzing project goals is to list the possible improvements that can be made. What are the goals, what was the priority that the team assigned to them, and what’s the current situation? Then, when you start to map out the new process, factor in the technologies available to you as well as what you can bring to bear to clean up the end user experience. Now you’re starting to list your potential proposed solutions. Do so in detail and try to establish a clear picture of the impact of each possibility. To continuously improve and simplify the process, be prepared to revisit your goals and flesh-out work that doesn’t not added any measurable value. An often underutilized but highly effective tool, simulation can be used as a means to sell improvements. Simulation can be an effective sales technique for convincing stakeholders of project benefits; making them visible, demonstrable and showing how the process would be improved. It is equally powerful in the discovery phase of the project; highlighting how the process will perform under different workloads, doing well-depth analysis with processes and establishing improvement targets that may

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THE ART OF BPM SUCCESS have, otherwise, been overlooked. Simulation is objective and moves the spotlight away from any particular user group or set of stakeholder requirements and effectively de-politicizes the project by focusing on design rather than individual bottleneck stages. By avoiding putting the focus on any one group of stakeholders, end users, subject-matter experts and so on, you encourage true collaboration because no one group has more to lose than the rest. Planning is ultimately the most critical success factor. As we said earlier, no one plans to fail but it is fair to note that many fail to plan well enough to succeed and the three main factors that trip them up are: failure to define the project; end user and stakeholder resistance; and a lack of executive sponsorship. You will inevitably have a project plan, yet beyond the standard Gantt chart and work breakout structure should be a specific plan for success. This includes having the stated (written) metrics for how and when success will be measured, agreed to and acknowledged by stakeholders and the project sponsor. As part of this plan, you should be prepared to demonstrate value within the first 90 days. Anything beyond this timeframe will be at risk of losing critical momentum, potentially even sponsorship. Your plan should involve the seven practices to counteract the common pitfalls of failing to define realistic boundaries, facing resistance by end users or stakeholders, and the loss of executive sponsorship.

11. THE 90-DAY ACTION PLAN FOR GETTING STARTED WITH BPM In the first 30 days, you will identify the starting point, the scope and boundaries, validate these collaboratively with stakeholders, and define the core goals, outcomes, resources, and participants. The critical outcome of this phase is establishing scope and boundaries. You may adjust the definition of some capabilities or expectations as you proceed, and may de-scope to some degree (e.g., postpone capabilities for a subsequent development cycle) but under no circumstances should you be expanding scope beyond this phase. Depending on the scope and goals of your initiative you may “go live” and deploy to production in 90 days, or you may be providing just the first major proof-point of a series of releases. The benefit of both BPM is that it is not a “once and done” proposition but an iterative process for rolling out a series of capabilities. Yet ensuring success for projects small or large requires identifying and sticking to what can be predictably achieved in the first 90 days. In the next 30 days, you will engage in more discovery to develop a complete narrative, expanding this through more stakeholder workshops to develop the “look and feel” of the solution, working from the users’ perspective consistent with usercentered design. During this phase you have the benefit of requirements and scope being fixed, and you now focus on realizing these within the solution. In the final 30 days, you will have the benefit of already having clearly defined expectations for what will be delivered, and focus is now on demonstrating the achievement of the defined goals and visible metrics. You will have defined when the demonstration of capability will take place and how success will be measured. Find the right process and always, always ask yourself the right honest questions. Keep your users and stakeholders at the center of the project and have involvement as your watchword; encourage them to own their input and their influence and watch the project succeed as they buy in. Measurement is key and the right metrics are worth their weight in project gold because they will convince (and keep on board) even the most troublesome stakeholders and sponsors. Knowing what success will look like before you even begin will help you achieve it.

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THE ART OF BPM SUCCESS 12. COMMON BPM PITFALLS TO AVOID 

Missing the Opportunity of Repeatability: although much if not all of the business case is calculated based on a single iteration or otherwise a discrete focus of the BPM initiative, the real value comes from developing a repeatable practice area or Center of Excellence; the first phase of the project should be proof-point for future opportunities.



Following the Path of Least Resistance: it is telling if a project lacks sponsors and more than likely it means more time needs to be spent on the business case. Sponsors who do not otherwise scrutinize an incomplete business case are merely setting the project up for failure.



Ignoring or Otherwise Neglecting Stakeholders When Validating Process Designs: one of the best and traditionally underutilized resources for validating the process are the stakeholders themselves, not just business process owners but end users.



Letting “Great” be the Enemy of “Good Enough” in the First Pass: do not fall into the trap of “analysis paralysis” in the first pass of the ‘current state’ process definition; get something ‘good enough’ out in front of the stakeholders who can tell you how it really works.



Selecting Cheap or Free BPM Technology Over the Ability to Leverage Existing Skill Sets: sometimes “free” BPM is the most expensive option; look for alignment with resources and objectives over price.



Assuming Sponsorship is There When its Not: too often wishful thinking takes over and project teams assume sponsorship is committed when it is not; do whatever is necessary to eliminate ambiguity surrounding budgets and ownership.

13. GAINING AND MAINTAINING PROJECT SPONSORSHIP After nearly a decade of market research on what drives BPM implementations, the answer for what prevents them is consistently “lack of sponsorship” by upper management. In other words, the single largest hurdle to BPM implementation is cited as finding someone (an executive or a department) to pay for it. Often departmental teams find the opportunity but not the resources to implement a BPM project, and are unable to win management support despite what may be to them an obvious need or potential benefit. There is no doubt that budget plays a role in whether or not sponsorship is found. Yet another factor is the perception of career endangerment. For many, any new project (particularly those which touch IT infrastructure) is seen at best as a distraction for core business, and worse as a potential career-killer. Who wants to take on another ERP project (and all the inherent risk it carries with it)? Too often, timidity and a lack of available attention span exceeds the spirit of innovation otherwise needed by senior management to spearhead BPM initiatives. Gaining sponsorship is about building and presenting a credible business case. If sponsorship is lacking, it is almost always so because a cogent business case has not been developed. A lack of sponsorship, even in the face of such compelling benefits as described above, can be a blessing for a prospective project, as it requires its promoters to more carefully scrutinize the business case and in doing so remove much of the potential risk and uncertainty.

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THE ART OF BPM SUCCESS In contrast, one of the worst ways to begin a project is by going with any sponsor willing to fund it, but not otherwise demanding a carefully scrutinized business case. Too often, the need for sponsorship and funding forces project leaders to compromise preferred approaches and target areas, leading the BPM initiative to be setup for failure. The right way to win sponsorship is by using short-term project wins to show proofpoints and build credibility, and then to leverage this into large projects areas (i.e., leverage the incremental and measurable qualities of BPM to achieve repeatable success).

14. DEVELOPING THE BUSINESS CASE BPM initiatives succeed or fail based on the business case. It is both the means for gaining and maintaining management support (e.g., sponsorship), and the first major test of the project’s success. While it is always possible that a project may not succeed regardless, it is nearly impossible to realize success without the exercise of developing a business case. Even with project sponsorship in place, at some point it will be necessary to present the forecasted benefit anticipated through your proposed BPM deployment. This requires an understanding of the business benefits and how they will be derived. What will you present? The answer is the business case. Developing a Return on Investment Model for BPM The Return on Investment (ROI) model quantifies all the benefits captured in Steps 1-4, correlates them with anticipated costs, and identifies the savings potential. The goal of the ROI model is to provide quantified assessment of the anticipated valueadded through the BPM deployment, specifically to estimate both the cost and net benefit expected. A secondary goal is to frame expectations for the planning and design of the BPM deployment initiative, in particular as it relates to procurement of BPM software. ROI in basic terms is Profit divided by Investment. For the purpose of the business case, it is the total value anticipated to be returned from the BPM initiative minus the anticipated investment required (i.e., “net return”) divided by the investment. For some firms Return on Equity (ROE) is of greater interest, as this captures the value realized from existing assets. For the purpose of the BPM business case, however, a new investment will be required and thus ROI is the more appropriate metric. A positive ROI (i.e., when net value exceeds the cost of the investment) is any percent calculated as greater than zero (0%). Because returns and investments are made over a period of time rather than a single year (typically the business case is based on a 3 to 5 year horizon) the calculation of ROI needs to be made in terms of Net Present Value (NPV) or a discounted cash flow stream – although it is worth noting that actual cash flow is likely only a fraction of the value measured and you should expect the majority of the business case to be presented in terms of noncash benefits. Calculating NPV requires an understanding or estimation of the firm’s cost of capital. The cost of capital is literally the cost of debt or equity required for obtaining funds and it is generally used as the minimum rate of return a firm requires for any single investment. In general it is the rate of return that is of most interest, since the BPM initiative alone is not likely to directly involve borrowing to pay for it. Organizations use the rate of the return as the hurdle rate for determining the lowest level of acceptable ROI.

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THE ART OF BPM SUCCESS For some firms the Weighted Average Cost of Capital (WACC) or the average of debt and equity cost is a known and valuable factor and can be used as the driving factor. For firms where this information is unavailable, however, a conservative cost of capital can be estimated (3% is used in the examples which follow). When building an ROI model, typically two scenarios are modeled – the first is labeled as “conservative” and includes minimal projections and easily verifiable data, and the second is labeled “aggressive” and outlines the potential for greater return factoring a wider range of potential benefits and incorporates more optimistic return forecasts. In both scenarios the cost basis is the same. The difference between the two is meant to illustrate the spread of reasonable expectations. As it would be impractical during the business case stage – that is pre-solution deployment – to analyze all possible BPM benefits, only a discrete number of project areas are factored into the analysis. These should be used to illustrate how BPM benefits can be derived, and should not be presented as the limit of potential value. It should be explained that the potential benefits of the BPM deployment can also be applicable to other project areas, as well as other benefits can be expected not otherwise identified or enumerated. When identifying quantifiable benefits, an important caveat is to avoid the temptation of simply aggregating lots of tiny time-savings, such as 10 minutes of every employee’s schedule every day. These sorts of micro productivity improvements are expected to be absorbed and of no real measurable benefit. What would you do with an extra 10 minutes a day? Probably not much compared to savings hours at a time. Instead, base ROI calculations where time-savings impact real transaction overhead, such as verifiable labor savings or reduced workload with actual redeployment of resources. Overall, benefits should be grouped into distinct categories, such as: 

Hard-Dollar Benefits: fewer dollars actually being spent, therefore allowing identified monies to be allocated elsewhere; direct and measurable cash flow reductions.



Soft Benefits: bottom line improvement where the impact may be challenging to quantify in dollars or to pinpoint in specific operations; improved revenue from existing operations and increased efficiency of information management functions.



Strategic or Operational Benefits: which are enhanced or enabled by the BPM deployment; these are kept out of the ROI calculation but are part of the business case.

15. THE REAL COST OF IMPLEMENTING BPM When presenting a business case to management, the first question is invariably “How much will this cost?” This is understandably a difficult question to answer during the early stages of a project – especially in the case of a first BPM initiative where a software solution has not yet been selected and there is no experience benchmark for estimating consulting services costs. However, in order to develop a business case, you must establish some estimate of cost. The fact that this will indeed be an estimate further supports the need for a structured yet fluid model, as cost is one of the key variables that will have to be continually refined during the discovery and due diligence process. Often, the greatest cost of BPM is not in the software license and maintenance fees but in the business resources or consulting services required.

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THE ART OF BPM SUCCESS The key to avoiding this is to establish strong communications between business users and IT staff early in the project. Process design environments offer a tool to facilitate this collaboration and they play a significant role in the success of BPM. A good graphical process design tool makes processes easier to understand and simplifies their definition, shortening the time taken to define a process while at the same time reducing the risk of misunderstandings and expensive re-work later on in the project. Business Process Management (BPM) is not new – it is an established, proven discipline that combines a focus on process with an integrated set of specialized software tools to deliver real business results. Organizations around the world and across industries have proven the value that BPM can deliver – greater efficiency, increased visibility, better control, enhanced operational agility, and measurable ROI in the range of 10-300%. You too can realize this success, but to do so requires focus. That focus starts with learning how to implement a repeatable framework for evaluating processes, defining distinct BPM projects, and building a business case to justify the investment of time, resources, and money. Developing the business case for the first BPM initiative will be the most time-consuming and the most important because it will include the evaluation, selection, and justification of a BPM software suite to support the implementation. It will also serve as the first proof-point for BPM in your organization. To ensure success, follow the steps outlined in this white paper and keep the tips and pitfalls in mind – the result will be a strong business case and a set of valuable metrics to monitor and measure results during the implementation. From that point on, you will have a repeatable approach, a solid technology foundation on which to build, and a set of benefits and benchmark ROI numbers to make justifying future BPM initiatives a breeze – putting you the fast path to realizing continuous process improvement and strategic business value from BPM.

16. CALCULATING BPM ROI: ENGINEERING SERVICES FIRM CASE STUDY To illustrate the type of details and calculations that should be include in the ROI model of the business case, we use an ROI assessment performed at an engineering services firm. The first example is that of a Soft Benefit calculation, where an identifiable qualitative benefit is developed into a quantitative cost savings. In this case, pipeline assessments are part of a fixed-price operations and management agreement, and thus represent a cost center. Because these involve a number of handoffs and data-checking activities, each cycle introduces redundant “rework” by expensive engineering resources. The ability to automate Steps and maintain greater continuity between handoffs represents a measurable cost-savings enable by the introduction of BPM. This opportunity was identified during Steps 2 to 4 as described earlier -- based on interviews of personnel it was identified that these handoffs represented a source of process inefficiency, on average costing around 6 out of 40 hours spent on pipeline evaluations. The details for each of these areas of savings are detailed in the table below.

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THE ART OF BPM SUCCESS Areas of Calculated and Anticipated Savings Pipeline Evaluations Number of Evaluations Per Year Per Team Man-Hours Per Job Rework Per Job Rework MH per Job Total Annual Rework Reduction Licensing Man-Hour Cost Cost Savings/Team Number of Team Cost-savings Per Year

Year 1 6 40 15% 6 36 $80 $2,880 8 $23,040

Year 2 6 40 15% 6 36 $80 $2,880 20 $57,600

Year 3 6 40 15% 6 36 $80 $2,880 50 $144,000

Other areas to examine where benefits can be measured are improvements on the existing metrics such as increasing inventory turnover by reducing order processing time and accelerating the order-to-cash cycle. Although, as described before, this may be ambitious for first BPM initiative, this is an area where there are many handoffs involved in the process from the time an order is received to when the product is delivered. The ability to improve inventory turnover has a direct and measurable impact on financial performance. Other performance metrics involved in order-to-cash include the order fulfillment rate or orders delivered to customers in full quantity at the specified time, and the cash collection rate or percent of cash collected within standard or otherwise contractual terms. Based on these assumptions as well the validation of specific metrics such as labor costs and job frequency, a realistic costs savings estimate can be developed. This is not meant as an exercise in re-engineering, and inevitably while improvements will be realized, more analysis and optimization will be required before, during, and after the implementation. Rather, this is part of the modeling exercise where metrics are defined for the business case and for measuring the success of the project as it evolves. In the business case, each calculated figure such as this should be broken out individually and explained in terms of assumptions and data sources. The same should be done for the cost side, as well as a single table should be developed so it can be view comprehensively at once. Although BPM does not impose anywhere near the ten-to-one services-to-software ratios imposed by other technologies, it is possible that you could spend $1.20 to $2.00 in services resources for every $1.00 spent on software. This is determined largely by your ability to leverage existing skill sets versus outsourcing to external parties or attempting to hire new skill sets in house. This is shaped largely by the ability to leverage existing skill sets, and BPM team made of programmers or analysts. Introducing a new discipline (BPM) new development model (Java, etc.) can doom both to failure, and it is a lot easier to teach or hire programming skills than business acumen. Look for solutions which leverage existing skill sets, and hire-out programmers before business experts. A model for the Total Projected Project Costs is presented in the table below.

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THE ART OF BPM SUCCESS Total Projected Project Costs Example Projected Cost Summary BPM Administration BPM Development & Customization Training External Professional Services BPM Process Consulting Application Development Integration Services BPM Software Software License Phase 1 (server license) Phase 2 (additional user licenses) Design Tools and Developer SDK Software Maintenance Hardware/Equipment Production Servers and Design Stations

Year 1 $75,000 $120,000 $50,000

Year 2 $75,000 $120,000

Year 3 $75,000 $80,000

$250,000 $308,800

$134,800 $150,000 $152,400

$50,000 $40,700 $30,000

$300,000 $75,000

Total Projected Annual Costs

$100,000 $32,000

$38,000

$16,000

$26,000

$1,251,800

$771,200

$38,000

$313,700

One of the biggest caveats of BPM cost estimates is that “free” BPM technology can easily be the most expensive option. BPM technology that comes free with other infrastructure can introduce a great deal of operational risk to the project, starting with miscommunication between business and IT. Another one of the (if not the) greatest potential points of failure is found in the transitions between business logic and application logic. Design-time environments play a significant role in the success of BPM, as difficult to understand process models lead to misunderstandings, erroneous assumptions and expensive re-work.

17. ROI CALCULATION When presenting the ROI model in the business case, each cost and benefit should be broken out so that the numbers are transparent and believable, then each number should be rolled up into a single table showing the comprehensive costs and benefits. ROI is calculated as 131% here, meaning that $1.31 is returned on top of the original investment for every dollar spent, or other $2.31 comes back for every $1.00 going out (keeping mind this is not cash-flow specific but value-added through both reduced transaction costs and revenue increases). One of the biggest sources of value in the model is Reduction of Current Project Transaction Costs, representing the BPM deployment’s impact on the productivity involved with performing existing project work. They are productivity-based, relating to how the BPM deployment can be leveraged to perform more work with the same resources or perform the same volume of work with greater efficiency. As such they are presented as Soft Benefits rather than Hard-Dollar savings or direct cash flow reductions. In each case specific dollar values are identified based on existing processes and validated costs and/or revenue amounts. In contrast, the Automation of Engineering Change Orders led to a significant redeployment of staff, resulting in measurable Hard-Dollar savings by redeploying staff and reducing a considerable amount of outside travel.

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THE ART OF BPM SUCCESS ROI Calculation Example: Aggressive Scenario Year 1

Year 2

Year 3

$21,600 $240,000 $51,840

$33,200 $336,000 $72,576

$49,500 $470,400 $101,606

$23,040

$57,600

$144,000

$330,000 $410,118 $82,000

$396,000 $706,738 $127,000

$475,200 $1,056,100 $324,000

Annual Totals of BPM-Provided Benefits

$1,158,598

$1,729,114

$2,620,806

Total Projected Annual Costs Annual Payback

$1,251,800 ($93,202)

$771,200 $957,914

$313,700 $2,307,106

Hard-Dollar Benefits Reduced Print & Distribution Costs Automation of Change Orders Elimination of Engineering Re-Work Soft Benefits Pipeline Evaluation Labor Savings Identified Productivity Gains Reduction of Current Project Transaction Revenue Improvement via Collaboration

Net Present Value of 3 Year Investment Dol3 Year Project Net Present Value 3 Year Project ROI Year in Which Breakeven Occurs

$2,296,481 $3,013,327 131% Year 2

ROI is calculated as 3 Year Project NPV / 3 Year Investment NPV Net Present Value (NPV) was calculated using a constant cost of capital of 3% and discounting each year's net benefit after Year 1. The discount factor is calculated as (1+ the cost of capital)Year-1 Thus, Year 2's net benefit is discounted by 3% or (1.0+0.03)1 and Year 3's is discounted by 6% or (1.0+0.03)2 The difference with the Conservative Scenario ROI model (see next page) is largely found in the Reduction of Current Project Transaction Costs, which is a Soft Benefit based largely on assumptions. Nothing changes in the Hard-Dollar Benefits or the Cost side of the equation, as both of these are developed from verified numbers. In this Conservative Scenario the initiative pays for itself in Year 3 and over the period three years it returns $1.39 in value for every $1.00 invested. This initiative is indeed “profitable” and earns more than 10% annually compared to an alternative investment, so even as a Conservative Scenario it should make a compelling business case. ROI Calculation Example: Conservative Scenario Year 1 Hard-Dollar Benefits Reduced Print & Distribution Costs Automation of Change Orders Elimination of Engineering Re-Work

$21,600 $240,000 $51,840

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Year 2 Year 3 $33,200 $336,000 $72,576

$49,500 $470,400 $101,606

THE ART OF BPM SUCCESS Soft Benefits Pipeline Evaluation Labor Savings Identified Productivity Gains Reduction of Current Project Transaction Revenue Improvement via Collaboration

$23,040 $110,000 $210,118 $82,000

Annual Totals of BPM-Provided Benefits

$738,598

$1,010,518 $1,550,476

$1,251,800 ($513,202)

$771,200 $313,700 $239,318 $1,236,776

Total Projected Annual Costs Annual Payback NPV of 3 Year Investment Dollars

$2,296,481

3 Year Project Net Present Value 3 Year Project ROI Year in Which Breakeven Occurs

$885,915 39% Year 3

$57,600 $132,000 $252,142 $127,000

$144,000 $158,400 $302,570 $324,000

18. THE REAL COST OF IMPLEMENTING BPM When presenting a business case to management, the first question is invariably “how much will this cost?” This is understandably a difficult question during the early stage of a project, before a software vendor has been selected and before a real assessment of consulting/services costs can be determined. Yet few organizations truly understand the actual cost of BPM initiatives, and are unwilling to share their expectations with prospective suppliers (presumably out of fear that if they overshoot, they will lose negotiating leverage). For the purpose of developing a business case, some estimate of cost has to be arrived at. This underscores the need for a structured yet fluid model, as costs are one of the key variables which need to be constantly refined during the discovery and due diligence process. Using estimated costs as a benchmark can help move the model along, and it is much more productive to find a starting point and develop this in a workable model than to try to get it 100% at the outset.

19. BPM AND THE MYTHICAL MAN MONTH “The Mythical Man-Month” is a book by Fred Brooks first published in 1975, which illustrates that adding manpower to a late engineering project only makes it later. Brooks first presented this analysis focused on software engineering, however, it has been shown to be true for other “knowledge work” requiring skilled individuals, such as claims processing or mortgage origination. This notion, commonly referred to as Brooks’ Law, holds that the productivity of any group is reduced by the number of participants in the process, and is negatively impacted by the introduction of new works. This is based on the need for “ramp up” and inefficiency of communication (thus the overhead of coordination) between individuals. This notion also presents a compelling case for the value of BPM, by leveraging the ability to streamline communication, facilitate handoffs, and embed instructions within work items. For example, when an insurance claim is transferred from a customer service rep to an adjuster, it typically requires further research and information gathering, and then is subject to the interpretation and assumptions of the individuals involved. By managing these handoffs within a BPM suite, much of the uncertainty and inconsistency in work quality can be eliminated through data validation and skills-

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THE ART OF BPM SUCCESS based routing. For this reason, Brooks’ Law presents an opportunity for uncovering and identifying existing soft dollar costs wherever handoffs between roles can be found.

20. CONCLUSION The opportunity for realizing business value from Business Process Management (BPM) initiatives is significant and unlike virtually any other area of software. This is due in part to the intimacy and interplay between BPM systems and core business activities within which they exist. When done right, successful BPM initiatives (herein referring to projects involving business process analysis and the implementation of business process management software) change the entire notion of applications, by allowing core systems to respond to process context, rather than driving processes around application limited. In this way BPM changes the nature of application management and the notion of “applications” altogether. BPM is Incremental: one of the core advantages of BPM is that it need not require boiling the ocean to deliver results. Rather projects can start small, yet still make a large impact. As management sage Peter Drucker observed in his seminal work Management Challenges for the 21st Century, “Continuous process improvements in any one area eventually transform the business. They lead to innovation. They lead to new processes. They lead to new business.” To paraphrase, it is less important to start with the perfect process candidate than it is to establish a leverage point from which to extend into other opportunities. BPM is Measurable: BPM is unique among technology-based initiatives in its ability to incorporate metrics and measurement parameters at the outset of the project. BPM presents the opportunity for an immediate and material impact on business performance and visibility. Ultimately, the real value of BPM is delivered through what you can gain when you have access to data you never had before and tools that enable you to change and adapt your business. BPM is Repeatable: BPM presents a compound benefit where the skill set and competencies gained from the first process optimized can be leveraged on multiple processes through the organization. BPM projects fail more often as a result of missed expectations than inadequate technology. Yet a greater number of BPM projects fail to launch at all due to the inability to be a credible business case. The value of BPM is realized through planning and measurement, and the business case needs to be developed with transparent success criteria and “real world” metrics. Yet any business case is only as good as the validity and trueness of the project’s architecture and assumptions. Prioritization and validation of assumptions is part process (methodology) and part tools (simulation and modeling). An iterative should be taken to enable closed-loop analysis or a “round-trip” approach for comprehensive modeling, validation, implementation and refinement or continuous process improvement. All successful BPM initiatives require executive sponsorship, based on realistic expectations. This should be clearly defined and measurable success criteria with incremental proof-points, and should begin with clearly understood prioritization of process targets (where to begin and where to go next). Using short-term project wins to build credibility, successful BPM initiatives start at manageable scope and are leveraged into larger projects areas, taking advantage of the incremental and measurable qualities of BPM to achieve repeatable success.

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Benefits of Policy and Rules Driven Processes in LatAm Retail Banking Automation Kay Winkler, Negocios y Soluciones Informáticas, Ricardo Ungo, Panama Canal Authority, Panama INTRODUCTION Viewpoint The following analysis and reflections represent the gathered experiences our team members at NSI (Negocios y Soluciones Informáticas, S.A.) have made during the last eight years, implementing more than 150 BPM solutions in several countries but mainly in Latin America (LatAm), in the financial industry. Being the results and conclusions of a broadly experienced, vertically specialized but only a single organization, this paper is complemented by our correspondent peers to serve as a practical guideline for applied and proven business process implementation methodologies and ROI metrics, allowing for continued improvements. Takeaways As the paragraphs “Cyclical Business Process Management vs. Linear Project Management” and “BPM Metrics” will show, there is a strong and recurring pattern of how BPM solutions have been implemented (in the region’s banking sector) and how its impact has been measured. A supporting study of 78 BPM implementations for banks summarizes the achieved results in order to highlight the described BPM implementation methodology as well as the BPM metrics as elements current and future process owners can apply and enhance for their BPM initiatives within the financial industry. Note: While there is some notion of importance from an ecological standpoint for paper usage/savings in business processes for regions like the US and Europe, it is of significant economic importance as a BPM ROI metric for LatAm and has been treated here as such for the impact analysis of BPM in retail banking processes. The banking vertical and BPM in LatAm John Christensen and Mark Hampton from the OECD Economist Intelligence Unit identified in 2005 around 72 countries that classify as “offshore financial centers”. (Murphy, 2005) Over 30% of these tax havens are of American origin, most of which are Caribbean and from Central America. As of 2013 there are 92 different banks in Panama alone. (Superintendencia de Bancos de Panamá, 2013)

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BPM IN LATIN AMERICA RETAIL BANKING

Figure 1 - Banks in Panama; Winkler 2013 Due to favorable laws attracting international investment for several decades, comparatively high political stability since 1990, the Colon Free Trade Zone (the second largest port of its kind worldwide and the largest in the Americas) that in turn is directly linked to the Panama Canal (the country’s most import source of revenue), are factors that have favored the development, operational maturity and sophistication of local banks and financial institutions. Having played an active role in the evolution of BPM as a methodology since 2004 in Panama, Central to South America and the Caribbean, most of our team members at NSI Soluciones (NSI) have had the unique opportunity of being able to observe and to even be part of most BPM implementations in the local and regional banking cluster. (Negocios y Soluciones Informáticas, S.A., 2013) After more than 150 process optimizations and implementations within about 8 years, we are now in a position to take a closer look at specific BPM verticals, our applied BPM methodology and measurable results achieved in these verticals as well as starting to relate to the contributing variables and their influences on the outcome of local and regional BPM initiatives. Surveying the underlying macro economical surroundings and the technological readiness of our observed territories, it becomes clear that BPM technologies have been successful in Latin America despite its relatively low “tech-preparedness” and mostly because of its thriving market growth rates (even amidst the crisis of ’08) and due to the above mentioned maturity of the financial markets, that – as the later study shows – turns out be the main representative within our LATAM BPM sample. In 10 Latin American countries our team members have been executing more than 140 process implementations between 2004 and 2011, an average of 2 processes per country per year. This significant volume of BPM implementations (by a single team from Panama alone) contrasts harshly with María Luisa Blázquez’s and Mónica García Ochoa Mayor’s study of “Technological Innovation Clusters in Latin America” (Hera & Mayor, 2009), where many of the observed countries with quite successful process automations obtain only low to mediocre scores on technological readiness. That economic growth doesn’t automatically and immediately translates into prime tech-preparedness shows the average annual GDP of these countries of around 4.9% at an average unemployment rate below 9%. Find summarized BPM market indicators for LatAm here: http://www.nsisoluciones.com/Market_Indicators.pdf

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BPM IN LATIN AMERICA RETAIL BANKING

Figure 2 - 4 Technological Readiness Clusters of LATAM; Hera & Mayor 2009 Trying to account for a high frequency of BPM implementations during periods of economic growth and stability in the region, despite a relative low technological preparedness begs the thus far unanswered question of why “BPM success” has been achieved in the first place or even how this success could be measured (and compared). Since only very little quantifiable and empirical data for BPM results exist (most data out there is of qualitative and ambiguous nature), the present investigation pretends to provide some inside to the effects and casual relations of BPM as a methodology in our regions banking vertical and as such serve as a stepping stone for other complementary and comparative exercises in the future.

BPM METHODOLOGY Even though there is no unified and single standard, superimposing on all activities, documents, process design (notations), integrations, implementations and so on, eventually leading to a concluded BPM initiative, there certainly are several proven and applicable practices, guidelines and procedures out there that are partially or entirely viable for BPM projects, among others the pioneering WfMC ( (Workflow Management Coalition, 2013) that has been developing dedicated process standards for over 20 years, such as the in LatAm widely-adopted XML Process Definition Language, XPDL. The here presented methodology for BPM implementations (for human centric process), that borrow many of its main components from standards such as the WfMC, ABPMP (Association of Business Process Management Professionals, 2013) CBOK, PMBOK (Project Management Institute, 2013) and Prince2 (Prince2, 2013) is only intended to be a rough outline of the general phases and activities our team goes through in order achieve successful BPM projects specifically in the financial and other industry verticals. As a first step, there has to be a clear separation of linear project management and cyclical process management: Cyclical Business Process Management vs. Linear Project Management When introducing new users to BPM as a methodology and BPMS as a technology, we often are stressing the importance to differentiate between project management

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BPM IN LATIN AMERICA RETAIL BANKING and business process management in order to achieve successful process implementations. There certainly seems to be a strong and positive correlation of having concluded a successful sales cycle, customer onboarding and the resulting user optimism reaching euphoric levels at times - of what that newly acquired “BPM Tool” is supposed to achieve. Both, a certain commercial hype and the users’ willingness to conquer the world, are necessary and welcomed, providing the required positive energy for the challenges ahead. This energy however, if not channeled adequately, can have disastrous effects. Here is the challenge: Despite the fact that a BPM platform, the applied methodology, measuring and improving continuously the process - all point to an integral mid to long term strategy a company will have to engage in, the user (especially but not limited to – “first timers”) almost always and instinctively will try to squeeze a long wish list of solutions to current problems and desired goals into a BPM implementation project, which always will be linear and comparatively short lived. A thing to keep in mind – for each project, also in the case of BPM implementations, the triple restriction applies: scope, time and resources within a rigid framework of desired quality. For a continued BPM success, successful BPM projects have to be achieved continuously. Each of these projects has a limited budget and timeframe (remember that even a time and material based budget has an upper limit and becomes fixed in the long run). So, “priorizations” of scopes and goals are absolutely crucial (and there are many methods of doing that), making sure that everybody involved understands that a current exclusion of a requirement doesn’t mean that it will be perpetually ignored – it just maybe a goal for one of the next BPM implementation projects. In fact, managing an accumulative inventory (through process knowledge workers) of implemented and still pending business process requirements is a very effective way to promote end-user driven process innovations. At the same time it helps to keep the implementation project in balance. (Winkler, BPM Leader, 2013) It has been helpful to visualize that cyclical BPM vs. lineal PM behavior to the process owners and BPM project participants in a macro to micro scale:

Figure 3 - Macro scale – continued corporate goals, Winkler 2013

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BPM IN LATIN AMERICA RETAIL BANKING

Figure 4 - Intermediate scale: continued goals on a (inter) departmental and process level, Winkler 2013

Figure 5 - Micro scale: continued goals with the processes and process parts (also including the form level), Winkler 2013 Vs.

Figure 6 - Linear BPM project life line (simplified), Winkler 2013 Once conceptualized the BPM initiative as a project per se, we typically face up to 7 different project phases, each with its individual set of deliverables, summarizing as follows: 1. Project Discovery Workshop (PDWS) During the PDWS we map out the broader macro process inventory (as-is), covering part of the end users operation or the whole process infrastructure.  Goals: o Identify the process situation “as-is” o Identify the user’s BPM readiness

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BPM IN LATIN AMERICA RETAIL BANKING Identify the users macro BPM expectations and limitations Identify a viable macro BPM mid and long term plan for the user  Identify a viable first step o Identify the approximate effort and limitations for that first BPM step  Deliverables: o Document summarizing the current process situation and goals o BPM (IT, Business and Operation) readiness matrix o Document of current BPM delimiters o BPM Blueprint Map – Macro visualization of current processes and their relation to each other in BPMN (2.0) o Document for a general mid to long term BPM strategy (which processes to prioritize) o Scope document and project plan (mpp) for the first BPM project to be executed  Key points : o Macro situation as-is for several processes o Macro roadmap to-be for several processes o Dynamic inventory of process and project limitations o Plan for the first project 2. Operational Analysis During this phase, now with a specific and a single process per project in mind (several parallel projects can be executed at the same time in case multiple processes have to be automated), a detailed operational analysis of the situation as-is and to-be is being executed.  Goals: o Identify current process activity sequences  Define activity matrix to-be o Identify current step times  Define times to-be (several scenarios) o Identify current documents that are being generated  Define documents to be digitalized and automated o Identify current external system and application interactions  Define integrations to-be o Identify current logical causal process scenarios  Define the logical and conditional process flows  Define the entire set of intervening macro and micro rules, policies and calculations o Identify current reports and measurements  Define variable and database structures  Define reports to be printed  Define (BAM) dashboards to be generated  Deliverables: o Operational design documentation o BPMN Process Design  Key Points: o Detailed descriptive and visual process description (as-is and to-be) o o

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BPM IN LATIN AMERICA RETAIL BANKING o Process activity matrix o Logical and conditional process flow 3. Technical Analysis This phase is dedicated to detail the previously documented operational aspects of the process to-be on a technical level.  Goals: o Create a re-usable form design, aligned to the users’ corporate brand book o Design of the individual forms (visual design and behavioral design) o Map identified process variables on a form level  Define type, lengths, naming convention o Design integrations  XML and XPDL schemas, stored procedures, web services, data bus interactions, error logs and handlings o Detailed table layout, content and relation design for all databases o Prepare in parallel the BPM project acceptance criteria and testing scenarios, using the defined operational and technical design documentation o Start preparing the BPM programming, testing, coaching and rollout logistics  Deliverables: o Technical design documentation o Testing matrixes o Initial logistics for programming, testing, coaching and roll out  Key Points: o Detailed technical BPM solution design o Early testing and acceptance criteria o Refined project plan (mpp) 4. Execution During the execution the BPM solution itself gets assembled, using the operational and technical design documentation as inputs and the test matrixes as pre-UAT quality control.  Goals: o Process implementation  Executing several SCRUM sprints (SRUM.ORG, 2013) o Pre-UAT quality assurance o Refine project plan for testing, coaching, roll out and improvements  Deliverables : o Assembled process o First test results o UAT schedule, production schedule, coaching schedule  Key points o Conclude process development o Refine project plan (mpp) 5. UAT and Coaching

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BPM IN LATIN AMERICA RETAIL BANKING The already existing and approved testing matrixes will now be executed by teams from the end user in typically 3 cycles - UAT, SIT and OAT.  Goals: o Certify and ready for production the assembled process  Covering operational, integration and technical testing o Coach in parallel the end user for the usage of the assembled process  Train the trainer  Differentiate between operational training, administrator training and technical (BPMS) training  While all training is important, only the operational training is in the critical path to project o Refine plan for roll out and improvements  Deliverables: o Process certification o Trained end users o Roll out and Improvements schedule  Key points o Conclude the process certification o Separate improvements from incidents o Refine project plan (mpp) 6. Roll Out This last phase for implementing the process solution usually consists of very few activities and typically does not take more than 5 work days.  Goals: o Process Go-Live and test run the entire process at least once in the production environment o Engage in stabilization and Q&A interactions with the end user  Stabilization o Initialize project evaluations for identified process enhancements (during prior phases) o Plan on sessions for process KPI measurements and process improvements (KPI’s have been identified in phase 1)  Deliverables: o Production certification  Key Points: o Go-Live o Stabilization 7. Continued Process Improvements Post go-live, usually on a monthly basis, the process indicators will be measured together with the process owners. As result of these indicators, the process will be continuously enhanced, adapting the process flow sequence, rules, policies or forms.  Goals: o Process enhancements  Deliverables: o Design document addenda  Key Points:

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BPM IN LATIN AMERICA RETAIL BANKING o

Align the process outcome to the users’ strategic and dynamic business goals

BPM METRICS General considerations The Association of Business Process Professional’s Business Process Management Book of Knowledge (ABPMP CBOK v2.0) lists the process performance measurement as fundamental element of the BPM practice (ABPMP, 2009). Depending on different possible viewpoints within and around the process environment, those measurements may form the foundation to justify a BPM engagement in the first place (project evaluation), identify the ROI of such an engagement – post project or to pursue continued improvements to existent processes. Establishing viable metrics can at times entail severe challenges. Trying to establish a robust framework of measurable variables that encompass the most crucial business process patterns without causing an excessive accumulation of sometimes redundant data points typically requires the design team and the process owners alike to critically boil down the most representative dependent and independent key variables to be measured throughout the company’s processes. This definition of measurement variables in turn should then occur ideally early in the process design phase and take into consideration challenges like confidential information (example: hourly costs of employees for human centric processes) that likely won´t be captured on the process level. One of the most common and also intuitive metrics that BPM users, analysts and providers refer to is the process cost measurement. In praxis however, especially in human centric processes, sometimes due to the confidentiality of resource cost information and sometimes because of its unavailability at design time (pointing to whole different set of additional challenges), process costs (ex-ante and ex-post BPM) often can’t be exactly and easily represented as monetary values (leading to sub-sequential and colorful ROI guesswork). An alternate and eventually more generalized approach to that dilemma maybe the declaration of “TIME” as the principal and dependent core variable for all economic process measurements, which of course will suffice only for service processes whose material inputs play a merely secondary role to its results. Different types of “TIME” can easily and natively be captured by most BPM platforms and later be analyzed, and compared within the same company (different processes and versions) and also be benchmarked among different corporations. Different economic scenarios, tactics and strategies can then afterwards provide monetary multipliers to the continuously measured “TIME” variable, delivering a dynamic business context to process owners and analysts, on demand - without being process costs an embedded BPM metric. The core challenge hereto would be the definition and the coherent measurement of different types of “TIME” variables. One can differentiate (among other types) between the task lifecycle time in a given process and the worked time of different individuals for a task during its lifetime. Drilling down further, one could argue to differentiate the overall task lifecycle time and only its workday lifecycle time (net lifecycle) and so forth. Having established “TIME” as a dependent core variable for process measurements and the possible formulation of behavioral hypotheses, result influential independent variables can now be included into the process metric framework.

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BPM IN LATIN AMERICA RETAIL BANKING As detailed later on we have found that for retail and corporate banking processes “net task lifecycle time” as a dependent variable and “quantity of process handoffs”, “quantity of monthly process transactions” and “quantity of fully automated core and legacy integrations” – all as independent variables – have shown a significant correlation to each other as a result of BPM engagements in the banking vertical for Panama and Central America. (Winkler, 2013) Dependent variable “Time” As summarized previously, there several possible definitions of time in a process that can be categorized as:  Process extension time: The sum of all configured extension times of a process’ steps. Typically, during process design time, the process owners define how much time each process step should take. This definition can be different from the task time and worked time. o Includes Step Extension Times

Start

Step 1 Extension Time

Step 2 Extension Time

Step 3 Extension Time

Step N Extension Time

Process extension time = Sum (Step 1..N extension time)

Figure 7 - Process Extension Time 

Process worked time: The sum of all configured worked times of a process’ steps. Typically, during process design time, the process owners define how much working time each process step should consume. This definition can be different from the task time and extension time. o Includes Step Worked Times

Figure 8 - Process Worked Time 

Task cycle time: The entire lifecycle of a given task within a process, summing up all cycle times (calendar time or only worked time) of that task within the different process steps until it comes to a cancelation or “natural” conclusion of that task. o The task time takes also into consideration task redundancy cycles due to errors or policy violations (reworking tasks in previous steps).

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BPM IN LATIN AMERICA RETAIL BANKING

Figure 9 - Task Cycle Time While “Process Time” is something (as shown in the BPM methodology section) that is defined during design time and is the rigid instruction of the process to-be (time wise enforcement of a worst case scenario that is ensured by a BPMS escalation and notification system), the “Task Cycle Time” would be its dynamic counterpart of the actual process time consumption during runtime. Hence “Process Time” could be classified as a designed metric and the “Task Cycle Time” as a measured metric. In relation to each other: “Process Extension Time” > “Process Worked Time” > “Task Cycle Time”. The here presented results correspond to the “Process Worked Times” (the pre-defined process times during its design phase). Measuring time is measuring the most important economical variable of human centric processes that then can be freely multiplied with whatever hourly rate and real life scenario that may apply. For all time types above, the final sum of each expresses a single process run (from “start” to “stop” of the process). For our investigation we measured the “Process Worked Times” and compared the results pre vs. post BPM implementation for the observed process. (Time Savings; Y1) Dependent variable “Paper” (consumption) The reasoning behind measuring the consumption of paper in a process before and after a BPM project in our exercise is twofold – on the one side the economic effect of printing and paper consumption, besides the process’ time consumption of course, is significant enough to not be ignored, but most importantly did we want to highlight the very innate ecological control and measurement aspect to BPM (which, in the long run, converts automatically back to even larger economic impacts than what’s initially measured and observed). Need for Green BPM? “The greatest shortcoming of the human race is the inability to understand the exponential function” (Bartlett, 2004) Economic shocks due to financial crises, caused in part by derivative speculations, have created strong additional arguments as to why BPM initiatives can be justified, aiming for leaner and more productive, flexible and efficient operations. Ever more complete BPMS’s allow for constantly improved process solutions, covering especially in human centric environments the even most complex challenges like dynamic rules and routing, process and workflow mapping according to industry standards, embedded data cubes and many more features. Could such a case be made for the ecological side of the BPM benefits coin? Natural disasters of late, that seemingly have an increasing frequency of occurrence and visibility, certainly seem to point into a direction were a stronger correlation

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BPM IN LATIN AMERICA RETAIL BANKING between ecological (in)balance and additional impacts to the already disaster ridden economy can be found. According to Forbes (www.forbes.com), Sandy’s price tag has been estimated at a very tangible USD +20 billion. Emergency funds dedicated to recovery from such disasters in the future (like the USD 50 billion budget towards recovery from Sandy, approved by the House of Representatives, the 15th of January this year), will surely find its long term sourcing back to the companies in the form of new or increased fiscal obligations. As is the case – a far more visible impact to each micro and macro economy – with the exponential increase in price and demand of energy, facing a steadily decreasing discovery and production of its current main source (see Colin Campbell’s depletion model). (Campbell, 2012) Resulting speculation, distribution restrictions and the shift to alternate energy sources will certainly find its funding basis on the back of the companies and consumers as well. Now, how can BPM help? It most likely partially does, already. A successful BPM implementation that covers a human centric process, which in turn is mission critical to a corporation, can produce perceivable ecological benefits in a significantly reduced carbon footprint as a result of reduced electric energy, paper and gasoline consumption for instance. These ecological savings - due to above mentioned trends - become more equalized with economical savings for the BPM engaging company. In that sense there seems to be a real potential for conscious process and BPM platform improvements that dynamically and pro-actively track those economical/ecological indicators, allowing for them to be achieved as well to be continuously improved. Laura Mooney with her e-booklet “Green BPM” summarizes the main benefits of such an initiative in 3 variables – paper reduction, fuel reduction and the efficiency increase of manufacturing and supply chain processes. (Mooney, 2009) In his paper “Green BPM: Processes with a Conscience”, Jim Sinur underlines the relation of the economic benefit to reduce the footprint that is influenced by the variables of paper consumption and physical movement. (Sinur, 2007) Monitoring the ecological variables of business processes as economic output influencers, as a native and integral part of coming gen BPMS’s, maybe a viable next step for future process enhancements. (Winkler, BPM Leader, 2013) For our investigation, we limited our measurements of paper (sheet) consumption that was specified during process design time, covering the quantity of documents to be printed (not differentiating between A4 or A6 format) per process. The results were compared pre vs. post BPM implementation for the observed process. The observed results are the best case scenario, since users easily can reprint documents and reports on demand. (Savings on Paper; Y2) Read more on independent variables here: http://www.nsisoluciones.com/Independent_Variables.pdf

INVESTIGATION Data source, investigation procedure & sample description NSI team members have been executing the previously described BPM methodology for over a decade and since then accumulated several hundreds of process design documents from which suitable cases and the detailed variables have been extracted to the sample summarized in the following points. The investigation covers 78 implemented retail banking processes, almost all of them in LatAm.

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BPM IN LATIN AMERICA RETAIL BANKING The data extraction during the investigation took place during the manual review of the partially narrative, partially tabular activity matrix information, individually for each process design document. All in that manner obtained values have then been mapped against the prior described variables (dependent variables at first for the present document). See all the data set and matrix related details here: http://www.nsisoluciones.com/Sample_Data_Set.pdf Results Worked Time (Time Savings, Y1) As described in the section “variables”, the measured time, dependent variable Y1, considers the “Process Worked Time” only, per observed process run (in hours; e.g. working hours or man-hours), during design time. As part of the investigation the “Process Worked Times” ex-ante and ex-post BPM project (until design time) were compared in order to identify quantifiable savings of time consumption during (human centric) process execution. It has been also assumed that process transaction volumes remain the same during the short observed time span of ex-ante to ex-post. On a simplified average level, ex-ante reflecting 172 consumed working hours per process and ex-post some 117 working hours, a 32% of savings per observed process has been achieved, resulting in 55 working hours per process. On an individual level, the time savings vary from some 30 working minutes to up to 395 working hours. Most processes (19 cases) had time savings of up to 9.9 working hours (average 4.5 hours) per process run. Due to the high concentration of cases in the financial industry, sales, and retail departments, and in Panama as the country of implementation within a relatively few observations (78), the sample size would have to be increased and diversified in order to identify relevant and statistical significant relations between vertical, departments, areas, statuses, years of implementation, corresponding country and increased or decreased of time savings. Paper Consumption (Savings on Paper, Y2) In the same way as for the measurements of Y1 (Time Savings), the paper consumption was being observed during design time for a sample of 78 processes. The observed paper consumption of the present investigation was limited to the designed quantity of documents to be printed per process (run), measured in paper sheets (not differentiating any formats). The investigation considered the best case scenario – only the quantities of documents allotted during process design are being printed (no re-print). Ex-ante and Ex-post situations were compared respectively. On average there have been savings on paper of about 8 sheets per process (44%) due to BPM within the observed sample. See all the detailed information and in-depth graphs of the investigation leading to these results here: http://www.nsisoluciones.com/Investigation.pdf

CONCLUSIONS The proposed BPM implementation methodology for retail banking in LatAm appears to hold true for achieving a positive ROI, judging by the suggested BPM metrics “Time” and “Paper*” savings (* may be not as relevant in your region). In a timespan from 2004 to 2010 the measured average savings for manual processes being optimized and automated with BPM for the first time have been 32%

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BPM IN LATIN AMERICA RETAIL BANKING (around 55 working hours) of the worked process time and 44% (8 sheets) on printed paper per process (run). The investigation also showed that on an individual case level however, the magnitude of the savings differ greatly from each other. There were high concentrations of observed cases around rather marginal savings on each paper and time. The largest such process groups were at an average of about 4.5 saved working hours and about 4 sheets of paper per process (run) ex-post. In conclusion, the applied methodology, measured by the results of our initial sample, seemed to have contributed positively to time savings and savings on paper for human centric processes, providing with both – the methodology and the metrics a possible BPM practice framework for retail banking process automation such as personal loan, credit card, car loan or mortgage sales processes. The here proposed method of time and paper savings (if relevant in your market) measurements for BPM implementations may furthermore provide the foundation for similar investigations of other industry verticals and future process enhancements, allowing for internal and external benchmarking, using empirical data. To advance the study and measure the result variations by vertical, department, area, process statuses, year of implementation and country of implementation as well as to measure the influence of independent variables on these results, it is suggested to extend the case matrix to allow for viable statistical significances.

REFERENCES AND CITATIONS Association of Business Process Management Professionals. (2013). Retrieved March 20, 2013, from http://www.abpmp.org/ Bartlett, D. A. (2004). Arithmetic, Population and Energy (transcript). Arithmetic, Population and Energy (p. 1). Global Public Media. Campbell, C. (2012). Peak Oil since 1956. Retrieved March 23, 2013, from http://www.trendlines.ca/free/peakoil/PeakOilSince1956/PeakOilSince1 956.htm#campbelldm Mooney, L. (2009). Green BPM. Retrieved March 23, 2013, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2 &ved=0CDkQFjAB&url=http%3A%2F%2Fsubscriber.emediausa.com%2F FM%2FGetFile.aspx%3Fid%3D16354&ei=8yj4UKzVOYm50QH9yYFo&us g=AFQjCNEM-5A8mMg2k9rM8sD9gYLL2tW4w&sig2=GQjKFdOLOCp7VXDgc5wKWw&bvm=bv.4101 Palmer, N. (2007). A Survey of Business Process Initiatives. BPTrends. Sinur, J. (2007, November). BPTrends. Retrieved March 23, 2013, from A Strategist’s Perspective: http://www.bptrends.com/publicationfiles/1107-COL-GreenBPM-Sinur-Final.pdf Winkler, K. (2013, February). BPM Leader. Retrieved March 22, 2013, from Viable Metrics to Justify a BPM Project: http://www.bpmleader.com/2013/02/11/viable-metrics-to-justify-abpm-project/ Winkler, K. (2013). BPM Leader. Retrieved March 23, 2013, from http://www.bpmleader.com/2013/01/30/need-for-green-bpm/ Winkler, K. (2013). BPM Leader. Retrieved March 23, 2013, from http://www.bpmleader.com/2013/03/06/cyclical-business-processmanagement-vs-linear-project-management/

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BPM IN LATIN AMERICA RETAIL BANKING Workflow Management Coalition. (2013). WfMC. Retrieved April 2013, from http://www.wfmc.org/

TABLE OF FIGURES Figure 1 - Banks in Panama; Winkler 2013 ........................................................................ 46  Figure 2 - 4 Technological Readiness Clusters of LATAM; Hera & Mayor 2009 ............................................................................................................................... 47  Figure 3 - Macro scale – continued corporate goals, Winkler 2013 .................................. 48  Figure 4 - Intermediate scale: continued goals on a (inter) departmental and process level, Winkler 2013 ............................................................................................ 49  Figure 5 - Micro scale: continued goals with the processes and process parts (also including the form level), Winkler 2013............................................................ 49  Figure 6 - Linear BPM project life line (simplified), Winkler 2013 .................................. 49  Figure 7 - Process Extension Time ........................................................................................ 54  Figure 8 - Process Worked Time............................................................................................ 54  Figure 9 - Task Cycle Time..................................................................................................... 55 

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Linking Architectures for Business Results Jude Chagas Pereira, IYCON INTRODUCTION Organizations today have adopted business process management as a must-have initiative to further their success. This is driven by many factors, the need to rationalize cost, the allure of promised results, and also the mounting peer pressure where “everyone is implementing BPM.” Irrespective of the motive that started an organization onto the BPM journey, every organization today finds itself in a juncture, where they have to measure the cost of the BPM initiative, and quantify the benefits to the stakeholders. As part of this journey, organizations find that they now own multiple initiatives which are based around the BPM banner, but not truly linked or aligned. In addition, business processes need to be linked with organizational strategy to ensure effective strategy execution. Ensuring that these multiple architectures are linked and removing redundant components of the same, is an issue that needs to be urgently addressed in a holistic manner.

SETTING OUT At the onset of the BPM journey it is important to understand the current landscape of the organization which is reflected in the business processes of the organization. In most cases, especially in mature businesses, such as banking, government, airlines etc. the core business processes are automated, with an ERP system such as Oracle or SAP, Core Banking System, or any suitable transaction system, depending on the industry. While automated transactions form the backbone of the core business processes of the organization, these in reality represent just over half the business processes in any organization. Let’s take an example of a bank (Figure 1). The core banking system will cover all the main business processes, from Retail & Consumer Banking (such as account opening, cash management, online banking etc.) to Wholesale Banking and Wealth Management. Additionally, other systems will be utilized for back office transactions such as HR, Finance, and Strategy. However, there are multiple functions of the bank which may be only partially automated (hybrid) or completely manual. As a result of this varied process landscape, there emerges a need to capture the entire set of organizational processes within a process repository. This is captured using a business process tool and helps the organization to understand the “as-is” process landscape of the organization. As part of this exercise, gaps in the existing process, or potential improvements will be noticed and documented. The output of the “as-is” process mapping, forms a baseline of the processes of the organization. The next step is to decide which processes need improvement based on the observations recorded during the “as-is” process mapping. This needs to be done based

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LINKING ARCHITECTURES FOR BUSINESS RESULTS on a cost-benefit analysis. In addition, this may also involve changing or updating technology.

Figure 1: Example of a Banking Process Landscape Here IT supports the business by modifying systems, or implementing new systems. However, managing the changes and understanding the impact on business process is a constant challenge. IT turns to frameworks such as Enterprise Architecture to enable them to document the enterprise landscape of the organization. In many cases, an Enterprise Architecture Tool, which is specifically built for this purpose is utilized. Multiple Stakeholders In some organizations, the business processes are owned by IT, under departments such as Enterprise Projects and Architecture. In other organizations, the business processes are owned by separate departments such as Organizational Development, or Process Improvement. In addition, there are other stakeholders of the business processes who drive changes to the same. These could be the Quality Department, the Internal Audit Department, and the Risk and Compliance Department, which rely on the business processes to effectively carry out their functions. Once of the biggest challenges faced, is that each of these stakeholders, utilize some dimensions of the business process, but not others. This creates a lack of ownership of the business process as a whole. In addition the department to which the business process belongs also has to deal with multiple stakeholder needs, and may maintain versions of the same process to satisfy the different stakeholder needs. Let’s take a look at the main stakeholders of a business process.

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LINKING ARCHITECTURES FOR BUSINESS RESULTS 

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Process Owner: This is the department whose business processes are documented. E.g. the Marketing Department or the Account Payable Department. They will raise change requests if the business process needs to be updated based on business requirements. Business Process Department: It is responsible for driving business process documentation, improvement and change management for the End to End business processes of the organization. They will raise change requests from the standpoint of business improvement or efficiency. Internal Audit Department: It uses the business process as a baseline to understand if documented processes are being followed and is tasked with uncovering fraud and other irregularities. They will raise change requests from the standpoint of plugging loopholes in the process. Quality Department: Owns the processes from a quality standpoint, and is responsible for ensuring compliance to a quality standard, such as ISO. They will raise change requests to ensure non-conformances observed in the process, or those related to the quality standard are addressed. Enterprise Architecture & IT: Tasked with supporting the Business Process Department and the Process Owners with appropriate technology that holistically integrates business processes, and enables an end to end business process, such as Order to Cash (O2C). Risk and Compliance Department: Looks at the business process from a regulatory standpoint. E.g. in a banking environment, the business processes need to comply with Central Bank regulations, or for listed organizations, the Sarbanes-Oxley Act (SOX). Human Resources Department: Looks at the resources who carry out these processes, and based on the process, define the competencies required for each resource.

PROCESS LAYERS As a result of these sometimes conflicting needs of the different stakeholders, the Process Owners begin to adopt a silo based approach to process management, and maintain the business processes (or versions) separately for each stakeholder. Let’s take an example of an Accounts Payable process and decompose the process into its different layers. Business Process Layer The first layer is the Business Process Layer. This layer represents the basic business process, the interactions and the decision points.

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Figure 2: Accounts Payable – Business Process Layer Compliance Layer The compliance layer will consist of the risks and control points, incorporating the needs of Internal Audit, Risk and Compliance and the Quality Department. The risk register will capture all risks related to the process as identified by the stakeholder departments.

Figure 3: Accounts Payable – Risk Register Extract The control points are also identified in relation to the risks. These are the areas which will be tested during the various process audits. This is maintained in the control register and appears on various audit checklists.

Figure 4: Accounts Payable – Control Register Extract In order to ensure that a proper relationship is maintained between the risks and controls, a Risk-Control Matrix is maintained. This clearly maps the risks with the related controls for each process level.

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Figure 5: Accounts Payable – Risk/Control Matrix Resources Layer The Resources Layer defines the people, material, equipment and other resources required to successfully carry out the business process. In the Business Process Layer above (Figure 2), we can explore the details of the Role “Purchasing Manager”.

Figure 6: Extract of Business Process (Role: Purchasing Manager) The role definition will include the process steps being carried out, along with their description, as well as the competencies required for the same. In addition a summary job description will also be included to enable the hiring process for the role.

Figure 7: Purchasing Manager Role Definition Technology Layer The Technology Layer reflects the underlying IT systems which enable this process and the system workflow required for the same. The details on this layer are highly technical in nature and usually follow the BPMN 2.0 notation for form and attributes.

Figure 8: Accounts Payable – Technology Layer

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LINKING ARCHITECTURES FOR BUSINESS RESULTS ALIGNMENT Alignment of these process layers is critical to provide a holistic view of the business process. Continuing the example above, we need to superimpose each of these layers onto the Business Process Layer as shown above. In order to do so, we need to represent each layer as a diagram. Resources Layer The Resources Layer is almost always built into the diagram as swim lanes or activity owners, making this the easiest layer to integrate. However, it is important to align the resources with activities and the Organization Hierarchy as shown in Figure 7 above, where the Purchasing Manager is shown reporting to the Purchasing Director, under the Purchasing Department. Having the job description linked to the organizational unit allows easy verification of whether the tasks being performed by the position described is adequately reflected in the job description in terms of dimensions, accountabilities and skill sets. Another detailed example of the competencies of an Assistant Manager, Events is shown in Figure 9 below.

Figure 9: Assistant Manager Events - Role Compliance Layer The Compliance Layer is the most critical layer to integrate into the business process, and this is the layer which is most often left running as a parallel system. This is done by adding the Risks and Controls along with their associations onto the Business Process Layer.

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Figure 10: Risks and Controls Superimposed on Business Process As we can see, all the compliance hierarchies, which were manually maintained, are now visualized onto the business process making the associations easy to communicate and manage. The business process with the Compliance and Resources Layer integrated (Figure 11), now has all relevant information for the following stakeholders:  Process Owner  Business Process Department  Internal Audit Department  Quality Department  Risk and Compliance Department  Human Resources Department

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Figure 11: Business Process integrated with Compliance and Resources Layers After consolidating the Business Processes with the Compliance and Resources Layers, the organization is now in a much better position to manage the business processes, and the changes to the same, while considering key stakeholder needs. This will provide a robust base for the organization to move forward on the roadmap towards delivering sustainable business results.

ALIGNING PROCESS WITH STRATEGY Strategy is the driving force for every business. It determines the direction of the business and defines the medium to long term goals. Strategy is executed through implementation of strategic initiatives and via the business processes of the organization. In many organizations, strategy and business process are owned by departments which do not report into the same structure (see Figure 1 above). This leads to disconnects in the execution of strategy, as the process improvements, and cost investments in the same, could have little or no impact on the desired strategic outcomes. Example: Process Alignment to deliver Customer Satisfaction Let’s take an example. A bank has a strategic objective to be the “Preferred Bank for Retail Customers”. The bank has selected “Customer Satisfaction” as one of its key measures. In order to benchmark their current ratings, the bank conducts a survey to understand the level of customer satisfaction and explore areas of improvement. The results of the survey show that the customers have a high level of dissatisfaction with the bank’s call center, which supports the internet banking process. This leads the bank to look closely at the call center process (Figure 12).

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Figure 12: Call Center process In order to monitor and improve the call center process, the bank defines the following Key Performance Indicators (KPI’s), or process metrics, to monitor the process performance. Each of these process metrics needs to be aligned to the relevant process step, in order to closely monitor the process performance.  Abandon rate of incoming phone calls – Linked to Step “Customer Calls”  Average speed to answer phone call – Linked to Step “Agent takes down complaint details”  Average talk time of phone calls - Linked to Step “Thank Customer & Close Call”  First-call resolution rate - Linked to Step “Ask if any other issues” The targets for these process KPI’s are driven by the need of the process to deliver the stated strategy of the bank, as well as the industry benchmarks for the process. If based on industry benchmarks, the average speed for banks to answer phone calls at a call center is seven seconds; then in order to perform better, the bank will set a target of five seconds or below to perform above industry average. This metric will be tracked over a period of time (Figure 13).

Figure 13: KPI - Average time to answer calls The bank will then look at a detailed view of all the KPI’s, and how, when consolidated, these measure the stated Objective “Customer Satisfaction with Call Center”. This process could be carried out by the process owner, in conjunction with the Strategy Department. However, the reporting of the KPI’s and the ultimate objective performance is still being viewed by the bank as a parallel silo on the reporting, whereby the Strategy Department would send a Process KPI to the process owner, and the process owner would continue to view the process flowcharts and look for improvements on the same.

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LINKING ARCHITECTURES FOR BUSINESS RESULTS Now consider a more complex process, or an end to end process, such as an Order to Cash (O2C) process or a Procure to Pay (P2P) process. In such a scenario, the process map would run into a large number of steps, with multiple paths. Similarly the number of KPI’s would be large, and related to different parts of the process. Therefore it becomes critical to visually integrate the KPI’s onto the Process itself (Figure 14). In this way the process owner can clearly see the process bottlenecks, in order to improve the process performance.

Figure 14: KPI’s integrated onto the process

ALIGNING PROCESS WITH UNDERLYING TECHNOLOGY As we have seen above, the Technology Layer is usually documented using BPMN 2.0 or other relevant notations. This helps to define the process flow as it should be carried out. In addition, we see that the Strategy provides indicators of where the process is performing below par. However, in order to truly understand where the process is failing we need to look “under the hood” and align the process with the reality of the transactions that are flowing through the process. We can achieve this by looking at the transaction logs of the ERP systems or workflow systems, using a technique called Process Mining. Process Mining (or Automated Business Process Discovery, ABPD) approaches process alignment from a completely new angle, the data. The traditional way a process is analyzed, is time consuming, resource intensive and vulnerable to human interpretation. Process mining brings transparency and delivers fact-based information, in a fraction of the time compared to the traditional approach. Unlike reporting and analytics solutions, process mining solutions use time stamps of the events read directly from the data. This enables automatic visualization of processes, delivering insight on processes and process specific KPIs. Process mining presents the big picture of how the business processes are executed and what is the real status of the processes. It enables drilling down to all process

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LINKING ARCHITECTURES FOR BUSINESS RESULTS variations and bottlenecks as well as benchmarking between any relevant dimensions such as factories or teams. Building the analysis based on event level data means that you are able to drill down to even individual process instances to see what is the root cause for poor performance. The following are the benefits of process mining:  Recreated Process Flowchart – an automatic visualization of the real endto-end process based on the ERP transaction logs  Duration Analysis - a visual analysis of the varying process lead times  Influence Analysis - an overview of root causes for variations or bottlenecks  Benchmarking - process comparisons per e.g. location, country, product depending on the dimensions of the data  Variation Analysis - all process variations in one view  Custom reports - information of process metrics specific to user needs on regular intervals  Animation – a dynamic presentation of the real case execution  Fact based – initiate process improvements based on real facts

CONCLUSIONS In conclusion, we see that there are multiple architectures, or layers which surround a business process. Ensuring that these architectures are linked together, visualized and presented in a unified manner, will ensure that the different stakeholders are firstly, reading from the same page, and secondly, provided the right information, to support better decision making. This approach delivers strategy aligned, efficient processes, which satisfy the needs of the majority of the process stakeholders.

REFERENCES IYCON PRISE© – A Roadmap to Strategy Execution – Process and Risk Integrated Strategy Execution. – www.iycon.com QPR Software Plc. – www.qpr.com

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Adaptive Case Management and the Foreign Account Tax Compliance Act Kay Winkler, NSI Soluciones, Panama There are staggering amounts of new regulatory requirements each year that threaten the very operability of many businesses. The question of how to turn these challenges into real business opportunities becomes ever more existential for companies in a globalized and fiercely competitive market. That is where successful companies increase their reliance on modern technologies and where, in practice, Adaptive Case Management (ACM) stands out. ACM carries on the principles that are well-known to BPM veterans by effectively combining technologies and management methodologies in order to provide business solutions. On one hand, these assure a maximum level of optimization and automation for standard scenarios but that at the same time allow for a guided frame of flexibility for businesses to harness the opportunities deriving from catering to the long-tail, recognizing diverging trends early on and to swiftly adapt to shifting market trends as a result. The financial industry, typically being among the most mature verticals when it comes to business process management disciplines, has faced, since 2013, an especially pressing compliance requirement which in many instances not only required banks, wealth management organizations and insurance companies to completely revamp their current “Know Your Customer” (KYC) approach but to also envision a thoroughly new way to conduct customer management and origination. The Foreign Account Tax Compliance Act (FATCA), a US federal law that entered into effect in March 2010 and being implemented by Foreign Financial Institutions (FFIs) since roughly 2013 all around the globe, requires all such FFIs to recognize a given set of indicators (indicia) within their records of current (customer bases) and new customers alike (onboarding) that help identify juridical and natural U.S. persons, their assets abroad and to report that information to the U.S. Department of the Treasury (Internal Revenue Service (IRS), 2016). Having to cope with the risk of becoming a highly disruptive procedure to the dayto-day business (in the end, only a fraction of customers fall into the “FATCA relevant” category) but also confronting the imperative of complying on-time, some financial businesses ingeniously recurred to their already existing set of iBPMS technologies and managed to evolve an already well-working BPM discipline into an ACM approach that prevented their compliance apparatus from becoming an obnoxious business inhibitor but instead growing it into an even stronger sales enabler – for both existing and new customers alike. The chief compliance officer from a major local bank stated during one of our FATCA conferences in Panama (Gómez, 2014), “We will use the FATCA requirement as a chance to become even more customer-friendly and competitive.” Thus the following chapter will exemplify how in practice Business Process Management (BPM), Enterprise Content Management (ECM), Business Rules Engines (BREs) and Business Intelligence (BI, including Big Data) technologies can be combined with management practices that pinnacle in an ACM discipline, leaving businesses more competitive than ever before. The following material is based upon successful FATCA implementations that FFIs have undertaken during the last three years and shows how ACM has helped them

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT to effectively combine existing technologies, incorporate new ones and to ultimately enhance their customer value proposition amid challenging regulatory frameworks and fierce market rivalry. We will also summarize some of the requirements put forth by the IRS and how these have been implemented under the umbrella of ACM, providing a guideline of converting market shocks into an actual business advantages. Takeaways:  FATCA and other complex compliance requirements can be suitable candidates for ACM solutions.  ACM initiatives can reutilize many of the often already implemented technologies.

1. WHAT IS ACM FOR FATCA? ACM for FATCA can best be visualized when referencing Max. J. Pucher’s functional definition of Adaptive Case Management:

Figure 1 - From CRM to FATCA; Pucher Max. J While a typical FATCA solution rests on the stable foundation of Business Process Management, Enterprise Content Management and Business Intelligence, it only comes to real fruition when it is realized within an ACM framework. There are two principal fronts to be considered when it comes to FATCA – the customer onboarding and the due diligence for existing customers (coined “pre-existing customers” in the FATCA jargon). Signing on a new customer is a pretty much straight-forward venture for banks already. It is only slightly altered by FATCA compliance. It does get more multifaceted for corporate onboarding, though. On the other hand, the FATCA treatment of existing customers is exponentially more complex and not something that can be accomplished by an iBPMS approach alone. Try to imagine an always shifting landscape that has to be kept track of in its entirety, all the time and that also consists of millions different data points, without impacting the day-to-day business. Each existing customer of a foreign bank (or any other type of financial institution, like insurance companies for instance) can become “FATCA – relevant” at any given moment. The conditions of becoming “relevant” in the first place are numerous and constantly evolving too. So, the FATCA framework has been subject to dozens of revisions and updates from the IRS since its original enactment back in 2010. A US individual may raise above the USD 50k threshold in foreign assets (Internal Revenue Services (IRS), 2016) or become the beneficiary of a money transfer from the US (making him eventually FATCA-relevant without even being a US citizen.

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT There may be changes in citizenships, places of residence, W-8 (BEN/BEN-E, ECI, EXP, and IMY) expiration dates and many other conditions that may solely or conjunctly trigger events that require an FFI to embark into compliance journeys with a multitude of its customers. The customer FATCA analysis from the vantage point of juridical entities adds new validation layers on top of all the criteria above. The individual customer now has to be validated in relationship not only to his personal assets abroad but also terms of his stakes and roles in other enterprises. The unpredictability of these data- and rules driven events motivated FFIs to combine key technologies under the umbrella of ACM in order to provide compliance officers with the right tools and information in an opportune manner:

Figure 2 - Technical elements for FATCA solution; Winkler, Kay The concept of ACM in case of FATCA compliance solutions covers technological elements that ensure highly configurable case detection, rigid and adaptive frameworks for rules, enterprise content and process management that cover defined and unknown scenarios. In addition, an ACM solution for FATCA also has to feature a dynamic front end portal for the actual interaction with the different cases that have been surfaced as FATCA-relevant. This case management front-end layer, above all, leverages the collaboration and provides access to all relevant information in a timely fashion. The overall framework furthermore collects and combines historical information for later pattern recognition as well as predictive analysis. FFIs typically split their FATCA compliance initiatives into two distinct project and implementation phases: a) The initial and simpler step focuses on cases and resulting processes from onboarding new customers (phase 1). b) The second and more complex phase affords more significance to the ACM approach itself. Immediate access to existing rules (through business rules engines – BREs), patterns (through business intelligence

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT solutions–BIs), processes (through BPMS) and also all relevant customer documents (through ECMs) has to be provided to officers engaged in resolving identified FATCA-relevant cases (using here too BIs and BREs over large sets of data in an FFI’s financial core system). This enables the users to resolve dynamic and often unforeseen incidents within the ever-changing confines of the IRS regulations. Takeaways:  ACM for FATCA requires rigid and adaptive processes and rules alike to cope with the changing nature of regulations.  FATCA projects usually are split into two phases: customer onboarding and pre-existing customers.  Technological key elements for an ACM FATCA approach are Web Forms, Core/CRMs, BPMS, BREs and BIs.

2. THE WORKING INNARDS From an operational perspective, FATCA can be simplified as an activity cycle focused on identifying FATCA-relevant individuals and transactions, weighting the associated risks within the given IRS rules framework and taking remediation actions as a result. This entails the dynamic mapping of required and existing documentation of the FFI’s existing and prospect customers, the execution (at least in theory) of resulting tax withholdings (still under ongoing review and discussion), the maintenance of rules and parameter as well as the creation of data driven visual output of KPI’s (for example FATCA-relevant case volumes, response and report times, flags and KYC indicators).

Figure 3 - Functional FATCA lifecycle; Winkler, Kay Behind the scenes however, FFIs orchestrate a finely-tuned ensemble of different technologies that enables its users to quickly engage in a whole umbrella of different cases. These types of cases can reach from newly-identified FATCA-relevant

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT prospects during onboarding, all the way to complex situations of recalcitrant individuals that have to be attended to in a highly individualized fashion. Most of the cases that we at NSI Soluciones (NSI) have encountered over the last three years, shared several technological key components that ultimately lead up to an adaptive case management model (Kay Winkler, 2015), as defined by experts like Larry Hawes, where technologies enable end-users and knowledge workers to simultaneously discover and execute dynamic tasks and processes (FORBES, 2014). The base layer of existing customer information is typically represented by Core Banking Systems (Core) which in some cases are complemented by surrounding CRMs. (1) The second technology layer is comprised of different legacy systems that have to be tailored into the ACM FATCA approach, such as anti-money laundering suites (AMLS), blacklist programs (example; Office of Foreign Assets Control) and transactional platforms (mainly ACH and SWIFT). (2) The component responsible for the smooth interaction of these different platforms is often denominated as “integration layer.” The careful design of the integration layer has shown to be pivotal for a viable ACM FATCA implementation. A scalable integration architecture allows “big data” to be read and interpreted from phase II onward. Some very small FFIs, such as specialized insurance providers abroad, have chosen to work with simple ad-hoc queries against filtered customer backup tables, instead of implementing large-scale Customer Information File (CIF) integrations. This is an approach that may suit small and mid-sized FFIs but that also harbors risks when it comes to real-time information access and later data growth (example: a FATCA requirement that is not limited to the US alone but that is also engulfing other regions such as the EU). (3) At the very heart of the FATCA ACM architecture there is a whole stack of technologies that leverages all three of the aforementioned layers. Most importantly and in direct conjunction of surfacing results from “big data” there is what the end users typically coin as the brain of a FATCA solution, the business rules engine (BRE). (4 - 1) The BRE hosts the most important tree diagrams for identifying and processing relevant cases. Taking into account different kinds of FFIs, multi-national operations, individual customers as well as corporations, there currently are over 5,000 different identified possible rules. Each of those rules can trigger an event for further system integrations or kicking off entire business processes. Opting for a BRE to encompass the sheer amount of entailed business logic that comes with FATCA is not optional and the most decisive factor of success or failure in such an endeavor. Another aspect to consider when evaluating options from different vendors is the capability for the BRE to be highly adaptive and adaptable. Bearing in mind the multi-national FATCAs to come (drying out international tax evasion is becoming a worldwide effort), unforeseen conditions for FACTA identification and the evolving legal framework, are all ingredients for a fluctuating rules landscape that requires an engine capable of being adjusted on the fly. That can happen either through graphical inputs and natural languages. A BRE should also be able to recognize trends, outliers and everything in-between to offer pathways for defined as well as undefined conditions. Feeding directly into the BRE, we have the process layer where FFIs provide established workflows for known circumstances as well as dynamic processes or

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT adaptive process features. Besides the adaptive rule sets in the BRE, adaptive BPMS features represent the second dynamic component of an ACM FATCA solution. All that is aiming at providing preparedness for evolving requirements (example: changing IRS W-8 and W-9 forms, definitions of offshore and shelf companies, enabling local tax institutions to act as information and fund collectors for the IRS). There are typically three pre-established core workflows around FATCA compliance, namely identification, remediation and periodic review as well as reporting processes. Each of those core workflows have several sub-processes branching out from them, depending on the (BRE identified) circumstances. (4 – 2) The data-triggered and process-driven FACTA cases are supported by a set of different document management systems. FFIs employ for this technology layer different kinds of solutions that stretch from simple file folders, portals, DMS to fullyfledged Enterprise Content Management Suites (ECMS). Knowledge workers are empowered, especially in case of undefined situations, by the immediate availability of customer documents (example: ID Cards, scanned tax exempt forms, Passports, documents corroborating physical and “virtual” addresses). (4 – 3) For later reporting purposes, especially with goal of predictive analysis in mind, all rules, process, document and activity information will be stored into a centralized and dedicated data repository (that often interacts with BI applications). Then, from these repositories FATCA-pertinent events are being read and specific business processes initiated (example: approaching the typical three months remediation deadline for identified FATCA cases). (4 – 4) For gathering initial data during on-boarding it has been a successful practice for FFIs to embed smart forms into all their existing channel applications. The rules attached to these dynamic forms will trigger compliance relevant activities only when it becomes absolutely necessary. In that fashion FACTA compliance is completely transparent for most of the customers and officers, for most of the time. (5) Simplified view of a typical, technical FATCA ACM Framework:

Figure 4 - FATCA ACM Framework; Winkler, Kay

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT Takeaways:  ACM for FATCA can be described as a functional cycle of identification, risk weighting and remediation.  There are five distinct technology layers for an ACM FATCA solution: Core/CRM, legacy, integrations, FATCA solution (containing BRE, BPM, ECM and DB), Front End (FE).  The integration layer is indispensable for the scalability of the solution that is typically required in phase II.  Using a BRE is not optional from phase II onward.

3. ADAPTIVE FATCA RULES, FORMS AND PROCESSES While the brains of the FATCA ACM approach are mostly concentrated in the BRE layer of the correspondent architecture (figure 4 - 4.1), the real potential of improving on existing AML, KYC and converting the FATCA requirements into commercial opportunities can be found within the process layer of the framework (figure 4 - 4.2). True to the chief compliance officer’s promise back in 2014 of using the FATCA initiative to sharpen the bank’s competitive edge, many FFIs indeed accomplished just that. Having to periodically parse through the entire CIF provides the financial institutions with ample opportunity and with a plausible foundation to proactively engage customers. Knowledge workers can use these contact points to keep customers’ sociodemographic information updated and to rank clients based upon behavior patterns as well as accumulative assets. That naturally facilitates a chance for FFIs to upsell, cross-sell and to provide a whole new line of asset management consultancy services. That is especially true when taking into account that FATCA relevance flags start to appear for an appealing target of customers comprising US citizens with accounts abroad worth over USD 50k. Leveraging these opportunities however, does require mature and adaptive underlying business processes that cover multiple possible contact channels. Banks, insurance companies and other financial services providers that have successfully implemented ACM-driven FATCA solutions and achieved sub-sequential growth, harnessed the benefits of adaptive case management suites from providers such as IBM, Newgen Software and Bizflow. An important part of this success has been covering all existing contact channels of an FFI with new adaptive processes and forms. This usually happens either through improvements to existing technologies or the implementation of completely new ones. In all cases, the adaptiveness involves both: the device independency for consuming FATCA applications virtually everywhere and the adaptive processes. The process form fields specifically can be dived into two sub-sets: fields that are driven by underlying pre-defined processes and business rules, as well as “flexible” form fields that allow for capturing data resulting from unpredicted settings. Leading iBPMS and ACM providers offer several ways of equipping users with tools to process those cases (some examples are shown in the section “Technology Examples.”

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Figure 5 – Adaptive FE for FATCA solutions; Winkler, Kay The logical base for the designing the FATCA ACM solution is the set of indicators the IRS defines as the “U.S. Indicia.” It is designed to firstly identify a US individual abroad and to secondly classify him depending on his assets in an FFI. Once the US FATCA coverage has reached sufficient institutions in a given country and also a denser international outreach, the rules sets will likely be extended to even evaluate cross-institutional accumulative assets. More recently for instance, the U.S. Indicia variables have been adapted to now also include none US citizens that are beneficiaries of US-originated transactions (Internal Revenue Agency (IRS), 2016). The basic “U.S. Indicia” structure defined by the IRS involves (Internal Revenue Service (IRS), 2016):  Identification (U.S. indicia),  Classification for pre-existing customers (individuals),  Classification examples for new entity (corporate) accounts,  Classification examples for pre-existing entity (corporate) accounts. There are very indicative rules (example: US passport and sole citizenship) but also rules that can only be suggestive of nature. These “soft rules” will have to be combined with supplementary information in order to enable a specific path within the FATCA framework.

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Figure 6 – U.S. Indicia rules; Winkler, Kay Example process for U.S. Indicia during On-boarding and for pre-existing cases (integrated processes):

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Figure 7 – BRE driven identification process applying U.S. Indicia rules; Winkler, Kay Once the identification phase has been surpassed there are three general core FACTA compliance processes for pre-existing individuals or entities. These processes are known as remediation processes. Here also applies a combination of known FATCA remediation scenarios as well as processes for unpredicted scenarios. Remediation processes (simplification):

Figure 8 – FATCA Remediation processes; Winkler, Kay In summary, the three defined (none adaptive) remediation processes are: c) Remediation initiation and correspondence process. This is where all new FATCA cases appear post BRE/FE processing for the first time to start the communication and follow up with the customer. d) The FATCA follow-up processes. Depending on the identified (or set) conditions during identification, there usually is the “normal FATCA follow-up process” that controls the checks of documents from the customer (like a W-8 form) and the recalcitrant remediation phase in case of document omissions and/or deadline violations. e) Finally, there is the remediation conclusion process that formalizes the outcome of the FATCA follow-up processes such as assigning a FACTA compliance status to the customer, setting up a communication to the IRS or applying the tax withholding (WHT), accordingly.

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT The scope of an ACM FATCA implementation becomes even more multi-faceted when not only taking into account the IRS rule sets for a single FFI but for multiple institutions – and even more interestingly – for FFIs of entire countries. Especially with that goal in mind, the IRS has put forth since 2012 multiple InterGovernmental Agreements (IGAs) for achieving implementation of the Foreign Account Tax Compliance Act on a global scale (U.S. Department Of The Treasury, 2012). As of March 2015 there have been already 112 signed IGAs in place (KPMG Switzerland, 2015). This also creates the need for reciprocal FATCA receptors on a governmental level of each country with a valid IGA in place. Governments then re-collect, interpret and communicate FATCA-related information to the IRS. Naturally, all participating countries will eventually put symmetrical and bilateral FACTA mechanisms in place. This implies that ACM solutions have to be robust and scalable enough to function on an international level over a relatively short period of time.

Figure 9 – FATCA reporting IGA - IRS; Winkler, Kay Takeaways:  Processes in an ACM solution can be adapted to achieve commercial benefits as a by-product of the FATCA compliance initiative.  Device independency, multi-channel coverage, process and rule adaptiveness are important success factors for a FATCA solution.  There are “soft” and “decisive” indicia rules for individuals and entities to be considered.  The rules complexity is highest for pre-existing corporate customers.  There are some three macro compliance and three macro remediation processes in addition to adaptive workflows.  ACM for FATCA has to be conceived as two-fold approach; validation and processing through FFIs (emission) and consolidation by local tax authorities (reception).  ACM technologies for FACTA have to scale on a cross-FFI and an international level.

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT 4. ACM FOR FATCA IN MOTION As detailed above, the different ACM components for a FATCA solution are tightly integrated into each other and mutually interdependent. If there is a new customer to be on-boarded or if there is a pre-existing customer identified as a high net-worth individual (HNI), the correspondent business processes are either invoked by frontend (FE) – BRE integrations or through database (DB) – BRE integrations. During the execution, all gears of the FATCA architecture start to move and work in unison:  The Frontend or Core kicks off integrations,  These communicate with the BRE,  Detailed or adaptive rules invoke defined or dynamic BPM instances,  The business processes “talk” vertically with the ECM platforms providing the knowledge worker with factual input,  The process outcomes then feed into data bases, BI platforms and reporting mechanisms (or sometimes even Customer Communication Suites).

Figure 10 – FATCA ACM in Motion – Identification and onboarding; Winkler, Kay The entire remediation portion of the FATCA compliance solution makes use of the very same technological elements that we have seen during the onboarding and identification activities. The reportable HNI or entity cases pass through the interconnected remediation processes (pre-defined and dynamic) that integrate into the BRE, ECM and databases (including Core) of the FFI, each step of the way. In that sense, ACM for FATCA, especially for phase two (pre-existing customers), sports the following routes and features:

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Figure 11 – FATCA ACM in Motion – Remediation; Winkler, Kay Takeaways:  ACM for FATCA dynamically combines and integrates Web front ends, BPMS, BREs, ECMs and databases.  The BRE decision engine will mainly be responsible for the sequence integrations.

5. TECHNOLOGY EXAMPLES In view of ACM for FATCA representing a mix of different technologies, the following examples represent only a small cross-section of many options available to the end users. For the adaptive process portion for instance, some BPM vendors offer very intuitive options that let users build automated solutions on the fly that branch out from rigid workflows (example: “Quick Process” from Bizflow). That way a compliance officer can quickly attend to a unique FATCA scenario within an otherwise predefined process, without losing track of any custom actions. Later, individual scenarios that have been handled this way can then be analyzed and checked for repeating patterns. If those are being detected, the core FATCA process can be complemented accordingly.

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Figure 12 – FATCA ACM in Motion – Remediation; Winkler, Kay With the possibility for quick processes to branch out from virtually any point of the main process, great flexibility is granted directly to the non-technical FATCA end user. There are characteristically only a few steps required to create such a process; setting the process description, activities, rules and notifications. From there the adaptive process branch is ready for execution. ACM providers, such as Newgen and IBM, provide a ready-made stack of technologies to face FATCA implementations, covering among other elements the core layers BRE, BPMS and ECM.

Figure 13 – IBM/NG ACM FATCA stack; Winkler, Kay In several of these cases the business rule engine (BRE) really shines. With these rules engines FFIs obtain an easy to use platform to create and quickly adapt complex FATCA rules. A graphical user interface, a sophisticated integrated rules repository and sometimes even a dedicated “decision server” assure the user’s preparedness for the ever evolving compliance landscape. The relevance of BREs for success with FATCA implementations mainly stems from the fact that they provide the necessary business flexibility and scalability to surface business opportunities from millions of different data points. Successful FATCA implementations also share that they effectively combine their BPM, Case Management, ECM and CCM applications under a unified methodological umbrella. In some cases even centers of excellence have been created that are specifically focused on FATCA compliance. As an alternative to all-encompassing ACM for FATCA platforms, end users can also opt for combining different technologies, providers and existing solutions with new ones. This has to be a conscious and strategic decision, though. The risks of skipping out on crucial elements such as the BRE and putting hard-coded applications in its place for example are tangible and can become very costly over time.

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT At NSI we have been able to appreciate that for almost all aforementioned FATCA tech components alternatives can be found. Sometimes, for very small outfits, entire layers of the FATCA solution can be omitted altogether, but one; the adaptive BRE. FATCA Components BPM ECM CCM BRE INTEGR. BUS DEDICATED HW

1 Included Included Included Included Included Included (all‐in‐1)

Alternatives N Alternatives Alternatives … Alternatives Included Alternatives Alternatives

Figure 14 – FATCA component combinations; Winkler, Kay Takeaways:  Several ACM providers offer pre-made and proven FATCA solution platforms that allow to shorten implementation times, learning curves and risks.  Many of the FATCA ACM components can be changed, adapted or even omitted with the exception of the BRE.

REFERENCES FORBES. (26 de June de 2014). Forbes/Tech. Accessed from Adaptive Case Management: http://www.forbes.com/sites/larryhawes/2014/06/26/adaptive-casemanagement-could-be-the-foundation-for-networkedbusiness/#6fff372a5d12 Gómez, J. H. (10 de March de 2014). Soluciones Fatca a la medida. Accessed from Capital Financiero: http://www.capital.com.pa/soluciones-fatca-lamedida/ Internal Revenue Agency (IRS). (3 de March de 2016). 2015 Instructions for Form 1042-S. Accessed from https://www.irs.gov/pub/irs-pdf/i1042s.pdf Internal Revenue Service (IRS). (29 de February de 2016). Foreign Account and Tax Compliances Act. Accessed from Internal Revenue Service: https://www.irs.gov/Businesses/Corporations/Foreign-Account-TaxCompliance-Act-FATCA Internal Revenue Service (IRS). (3 de March de 2016). REG-121647-10]. Accessed from https://www.irs.gov/pub/newsroom/reg-121647-10.pdf Internal Revenue Services (IRS). (29 de February de 2016). Internal Revenue Services. Accessed from FATCA Information for Individuals: https://www.irs.gov/Businesses/Corporations/FATCA-Information-forIndividuals Kay Winkler. (25 de May de 2015). NSI Soluciones. Accessed from FATCA: http://www.nsisoluciones.com/index.php/soluciones/fatca

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ACM AND FOREIGN ACCOUNT TAX COMPLIANCE ACT KPMG Switzerland. (25 de March de 2015). IGA status. Accessed from http://www.kpmg.com/ch/en/industry/banking/fatca-competencecenter/pages/iga-status.aspx U.S. Department Of The Treasury. (26 de July de 2012). Treasury Releases Model Intergovernmental Agreement for Implementing the Foreign Account Tax Compliance Act to Improve Offshore Tax Compliance and Reduce Burden. Accessed from https://www.treasury.gov/press-center/pressreleases/Pages/tg1653.aspx

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Section 2 Award-Winning Case Studies

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African Reinsurance, Africa Nominated by Newgen Software Technologies Ltd, India 1. EXECUTIVE SUMMARY / ABSTRACT African Reinsurance Corporation is a leading player in the reinsurance sector in African region. At present the client has the membership from African Development Bank, 41 member countries of the African union, 107 African insurance and reinsurance companies and four non-African Development Finance Institutions. The client has spread its operations across seven regions including the Head Office at Lagos, Nigeria. The Corporation intended to implement Electronics Document and Record Management System (EDRMS) and Business Process Management solution (BPM) based on Case Management Framework (CMF) for enhancing its strength in process definition, quick deployment cycle and flexibility. The client wanted to manage document archival, facilitate the identification and access to documents in real time and improve on the efficiency of the Corporation’s operating Services. They needed a platform to include digitization tools and provide statistical data on stocks, incoming and shredded documents. The deployed solution consists of an integrated filing system for both electronic as well as physical documents. The solution facilitates the business users in archiving documents and defining their categories. It also assists the business owners to capitalize on their domain knowledge and decide the storage schedules with respect to each document archived. The solution includes following major features: 1. The solution is user configurable and allows addition of metadata or introduction of a new business process (whenever required by the business users) into the solution. 2. The document category classification varies across department in the organization. Thus, the solution is adaptive towards capturing any change in the document category classification to each department 3. The document owners are provided with additional options to restrict the authorization and access to the document for other users. This decision is taken based on the vitality of the document 4. Digital signatures are being used to change the approval process from manual signatures to electronically signed approvals 5. The business owners have got different methods available in the system to share the documents with other users. This depends on the vitality of the document as well as how urgently the document is required by the other users 6. The business owners look at it as a central document repository for all other systems available in the organization. The solution can also be integrated with other systems as per the requirement

2. OVERVIEW The Client wanted to manage document archival by using various capturing and/or registration procedure at various stages of process. The main objective of client was to move to a paperless processing and storage using the Case Management Product Suite. The client was looking for a Standardized process for request and approval

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AFRICAN REINSURANCE, AFRICA of documents/records. The company also wanted to facilitate the identification of and access to documents in real time, ensuring, proper conservation of documents (in both hard and soft copies), safety and security, authenticity, reliability and integrity of same. In addition, they needed Management Information System (MIS) module and tools to support the decision making process with built–in standard reports. To improve on their efficiency of the Corporation’s Operating Services, they required a platform that would include digitization tools and provide statistical data on stocks, incoming and shredded documents. The solution combined BPM, ECM and has a Case Management functionality baked into it and hence each participant within the process flow was empowered as a Knowledge worker. The Users could easily take on ad-hoc developments on each document. Business Benefits achieved through the solution include:  Improved life-cycle management of documents.  All the confidential documents were stored and archived electronically, making retrieval easier and hassle free. Since documents do not have to be moved physically, the incidents of pilferage were greatly reduced  Allows the user to get a comprehensive list of documents related to a particular topic  Drastic reduction in Operational Costs  Risk mitigation associated reduction in legal compliance  Tracking and Monitoring  Streamlining the business functions  Access rights classification to maintain authenticity  Reduced Manual Intervention  Paperless office  Establishing a mechanism to access the documents electronically  Reduced Turn-Around-Time

3. BUSINESS CONTEXT Prior to implementing a case management solution, the client had no formal system in place to handle the documents/process electronically. All documents and processes were managed manually. Being a 37-year old organization they created huge volumes of physical files year on year. With ever-growing volume of document, Client felt the need for an EDRMS-based Case Management Solution. They were dissatisfied with their current manual process as they were unable to track the transaction in the process flow. Also when documents were moving from one step to another, pilferage also happened resulting in great losses to the organization, especially for the cases when the lost document was a legal compliance requirement. Legal penalties were high due to loss of confidential documents. All these reasons convinced them to implement a Case Management Solution. The documents were previously allocated based on a manual process and individualistic style, without having a clear picture of workload of each user within the organization and across the location. Since the system was based on a physical file movement, only one user could work at a time on the case. The confidential documents created over the years were fragmented and not available centrally for access to the entire user community. Coupled with the above issues, customers had no visibility about the status of their cases unless they knew

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AFRICAN REINSURANCE, AFRICA the individual executive personally. In our experience, the common pain areas across organizations include:  Managing highly distributed operations and maintaining document integrity  Secure archival of documents to reduce risk exposure  Addressing the geographical and business growth  Managing huge volumes of documents

4. THE KEY INNOVATIONS The project has resulted in drastic transformation in the way the client executes their business transactions. The organization itself changed business functioning. All transactions that were earlier handled manually are now automated. It is also a major change management process. Functionalities like Digital signatures and annotations using Signature Pads are also amongst some key innovations. The application has been designed to reduce the time and complexity of case-style process of the client. It is more decision-intensive, rather than content-centric.

5. BUSINESS Prior to implementing the solution, all customer processes were handled manually, but after process automation through the Case Management suite, customer experience has improved significantly and the results are reduced TAT for processes and real time view of their status.

6. CASE HANDLING Pre-Implementation Scenario Prior to implementing the case management solution, there was no Process Automation solution at the client side to digitize and streamline system-wide operations. The Client had to pay heavy penalties because of missing Confidential documents. There was no system to track or monitor the manual intervention. Post Implementation Scenario Numbers of steps were reduced by almost 50%. The unified platform brought all the system together on same platform and all the systems were linked in such a way that they could communicate with each other. Now, the entire process requires minimal manual intervention. All the physical documents are converted into digitized documents which traverse across departments and locations.

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Figure 1: Post Implementation Scenario Cases used: There were about nine case handled in the entire process. MS Outlook 

Case 1 - Multiple documents related to single topics can be archived together. All the documents can be uploaded together to provide maintain the uniqueness.  Case 2 - Classify Differently to Case to Case such as Email body, Embedded Images or Any Attachments OmniProcess  DMS

Case 3 – Priority base Notification to Approver

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Case 4 – Classify Users to different roles and also allows the users to take the multiple roles  Case 5 – Provision of applying Digital signatures on the documents in case of legally complied documents. Also, the option for signature pad based annotations is provided in the system. Record Management System 

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Case 6 – The ownership of the document changes from the concerned department to Archival department once the document is submitted by the departments to Archives. All the department users cannot access the documents that are archived in RMS. The Archives team has the rights to provide view rights to any of the department users. Case 7 – The review history for each record is being maintained which enables the reviewers for efficient decision making while reviewing the record 91

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before disposition. Case 8 -If any document is not reviewed then matter is escalated or highlighted Case 9 – No record from the archives can be deleted until the reviewer decision is to destroy the document. Considering the vitality of record preservation, this functionality allows the automated retention mechanism to be executed with a manual discretion.

System Architecture

Figure 2: System Architecture

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AFRICAN REINSURANCE, AFRICA Key role assignment and management Each department has a secretarial pool which freely manages the flow and filling of the documents. Space congestion in the various offices of the Head Office in Lagos (Nigeria) is between 15 and 20% of the total volume. The participating members and agencies in each processes are listed as below: Administrative Group There is a team of 4 IT professionals who is administering the entire Process in following departments:  HR Dept  Legal Dept  Finance Dept Some key processes involved are demonstrated below:

Figure 2: Document Archival Process

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Figure 3: Request Approval Process

7. ORGANIZATION & SOCIAL With the elimination of physical documents and several manual procedures, employees within the organizational structure were now diverted into high value tasks improving overall quality and work efficiency. The implementation implied a huge change in terms of improving the efficiency of the Corporation’s operating Services, and needed a platform that would include digitization tools and provide statistical data on stocks, incoming and shredded documents. The transition from a legacy manually-driven process to a completed automated procedure caused some resistance by workers across the framework. With the help of a consulting firm we set up a Centre of Excellence that helped members involved in the process effortlessly slide into this transition. We did an extensive handholding of the participants who were to operate the system on a regular basis. Change Management was critical to the success of this project and we had product

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AFRICAN REINSURANCE, AFRICA experts stationed onsite; up to six months in some instances.

8. HURDLES OVERCOME Management Although the solution solved all the major business concerns, initially the management was concerned about how the solution would align with their business strategy. However, at the time of UAT, the proposed solution to earned the trust of the management. Within a few months after going live, the management became confident that the solution was scalable and flexible enough to align with their larger business strategy. Business The following business challenges were addressed:  Implementation of high frequency of alerts and notification  Ad-hoc MIS generation, customizable dashboards  Implementation of Norms and Compliances (DOD) Organization Adoption At the organizational level, several critical challenges presented. To begin with, the penetration of computer literacy was low within the structural framework. So for most users on the face of it the system appeared to be complex. The common mindset was that to be able to use this technology most would have to go through some gruelling training. The changeover is a huge concern for most employees. The major risk of the project was the French Localization. Other than this several other challenges faced during organization wide adoption were:  Frequent requirement changes immobilized requirements for Solution Development.  Lack of cooperation from Client-side stakeholders during the Demo Sessions. Strategies and experience driving organizational adoption. The team adopted the following strategies/initiatives to make the transition and organizational adoption smooth and easy: 

Formation of a CoE to handle the Change Management

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Basic to advanced training on how to effectively leverage the system to end users. This also led to the formation of training centers.

9. BENEFITS 

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Cost Savings- While it not possible to disclose the monetary figures, the implementation has enabled 80% cost reduction in the entire process Time reductions- The through-put time for each approval process was brought down by 80-90% depending on the volume of the project Operational efficiency improved by 90-95% - Earlier there was a high frequency of manual interventions due to which the operational efficiency was very low. The processing time was improved by almost 20 times and operational efficiency was improved by 90-95% Centralized Repository for documents– A mechanism to store and access all the confidential document and files as needed by authorized employees. The module was built to centrally archive all documents in electronic format and provide anytime-anywhere access to these documents based on user rights Ensure tracking and monitoring of the projects – Client was facing a major challenge in tracking and monitoring activities running under multiple

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projects. As a part of the re-engineered process, a web-based platform was created as a separate route. In this route users could initiate a note/file and if required send it back to the person or forward it to other users, for processing and approval. The complete confidential documents are tracked live via the track sheet. Paperless Environment –The client was able to digitize and upload in a Centralized Repository. The proposed solution eradicated an exorbitant expenditure in photocopies incurred on printing and paper. This also led to an internal Green Initiative organization wide. Increased Revenues- The total business impact of the solution will be realized over a period of time. The revenues were increased considerably through the increased number cases processed per day.

10. QUALITY IMPROVEMENTS The reduced time taken to arrive at right decisions by stakeholders was the most apparent benefit. This enhanced the speed at which strategic Client decisions were cleared. Apart from this following quality improvements were also achieved:  All transactional data which was earlier not recorded is now properly indexed and maintained in DMS repository  Bulk emails are sent to the stakeholders as a batch process  Greater Visibility onto the work and transparency to the confidential documents  Tracking and monitoring of confidential documents  Reduced manual intervention  Classified the access rights to maintain authenticity  Streamlining the business functions  Access to the higher authority or the expert skills  Empowering the experts to get real time access to case documents Dashboard and everyday MIS for End to End tracking of cases Increased responsiveness via email notification to the stakeholders

11. BEST PRACTICES, LEARNING POINTS AND PITFALLS Best Practices, Learning Points and Pitfalls  Simplicity, flexibility and robustness should be the prime focus  Simple, lesser and similar interfaces across modules  Transparency to clients Pitfalls  Too flashy and complex looking interfaces can be distracting  The client had no clear picture about their requirement due to which the entire project was stretched

12. COMPETITIVE ADVANTAGES EDRMS based on a Case Management framework for an archiving system was proposed. The entire deployment was attempted in a domain where a lot of protocol had to be observed while ensuring that the best was extracted. The process aimed at elimination of paper from the entire process, which is our core strength. The unique benefits delivered through this implementation include:  Improved life-cycle management of documents  Allows the user to get a comprehensive list of documents related to a particular topic  Drastic reduction in Operational Costs

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AFRICAN REINSURANCE, AFRICA  Risk mitigation associated reduction in legal compliance  Tracking and Monitoring  Streamlining the business functions  Access rights classification to maintain authenticity  Reduced Manual Intervention  Paperless office  Establishing a mechanism to access the documents electronically  Reduced Turn-Around-Time All our implementations have few common cornerstones which demarcate the advantages derived by client. These include:  Faster Decision Making – They vastly improved the process times for circulation of relevant documents aiding faster approval and thereby faster time to arriving at the critical decision.  Compliance – There is a high premium attached to all forms of Compliance issues faced by the client. The solution provided extensive compliance coverage right from document storage to secured authentication and access to information.  Cost Benefits –The solution offered is cost effective, built on innovative technology. The client was also able to cut down drastically on handling physical paper thereby reducing costs associated with transportation, storage, retrieval and complete information management.  Different Approach to designing and running processes – The end to end workflow became a high level description of the phase associated with the work. Each phase then functioned as a component and users were able to adapt their processes in real time.  Improved Transparency – The solution supported the creation of skill based routing which lead to easy tracking of transactions at all stages and gave more transparency in system.

13. TECHNOLOGY The implementation at has an underlying Business Process Management suite and an Enterprise Content Management platform based on Case management framework. The solution has been so configured that it brings Case Management capabilities wherein ad-hoc incidents can be managed effortlessly. The BPM and ECM platform has been combined together to provide effective capture, indexing and creating storing conventions of the documents. We proposed EDRMS and Record Management System also requires an optimized solution for request and retrieval of documents. The following solutions were proposed to cater to the client requirements:  Document Management  Records Management System  Business Process Management system  Business Activity Monitoring

14. THE TECHNOLOGY AND SERVICE PROVIDERS This solution was built on Newgen Case Management framework. Our team proposed a solution to the client per market best practices. The system study, solution design and implementation were carried out by seasoned professionals. www.newgensoft.com

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AgFirst Farm Credit Bank, USA Nominated by Bizagi, United Kingdom 1. EXECUTIVE SUMMARY / ABSTRACT AgFirst is part of the national Farm Credit System, the largest agricultural lending organization in the United States. With assets of more than $27 billion, AgFirst provides funding and financial services to 19 farmer-owned financial cooperatives in 15 eastern states and Puerto Rico. These cooperatives, operating as Farm Credit and AgCredit agricultural credit associations (ACAs), offer real estate and production financing to more than 80,000 farmers, agribusinesses and rural homeowners. Every Association has independent governing processes and business rules, based on its respective product portfolio. So while much of the processes are similar, there are key differences in the data they collect, and the rules they follow. As the premier technology service provider for its affiliate Associations, the AgFirst technology division is often tasked with developing custom solutions to automate key business processes. Historically, the Microsoft InfoPath platform has been used to develop these solutions. Examples of these solutions include:  Loan transmittal  Loan treatments  Loan accounting  Task management and tickler systems However, in 2012, it was apparent that the InfoPath platform was no longer sufficient to handle the growing complexity of business processes. Additionally AgFirst’s challenge was not to build 19 different systems, but to deliver a solution based on the core business logic that could be quickly adapted to the needs of other Associations. As a result, AgFirst launched an effort to select an enterprise class platform to replace its legacy InfoPath solutions. After an in-depth selection process, that included onsite proof-of-concepts, AgFirst chose a BPM solution. BPMS delivered on this challenge, transforming AgFirst’s loan approval process in just 16 weeks. AgFirst’s impressive commitment to agile working methods enabled the project to progress quickly and get results fast, delivering subsequent processes in half the time. Whether making changes to the process flow or simply to the user interface, the ability to start small, scale fast and adapt quickly has been key to the success of the overall project. The move to BPM has transformed how the Loan Transmittal process is handled. AgFirst can now handle more loans, more accurately, whether it is from their desktop or from their mobile devices. Embedded business rules, tight integration and centralized documentation ensure that the process is regulated and streamlined. And for the first time, ACA management has the baseline metrics they need to monitor, measure and improve performance. In short, AgFirst has been able to use the BPM tool to create solutions quickly and be agile enough to customize it for their customers.

2. OVERVIEW “Our decision to choose BPM was a strategic move to deliver agility within changing market conditions. Above all we wanted to be able to create solutions in a short amount of time. ” Bala Sivankoil, Director of Application Development  

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AGFIRST FARM CREDIT BANK, USA In just 16 weeks, AgFirst defined, implemented and delivered a complete Loan Transmittal process. Careful selection of the pilot project has enabled the bank to deliver value and achieve benefits fast. Second processes were delivered in half the time, and subsequent processes in a matter of weeks. Processes are consistent and streamlined: double keying of data has been reduced considerably, Key Performance Indicators (KPIs) are embedded, and a full scale rollout is under way. This is backed by impressive dedication and strong sponsorship from AgFirst’s key stakeholders. Together, its staff, management and Project Team have steered its BPM initiative through large change in record time and overcome significant cultural challenges. Now, BPM is seen as a powerful way to automate business processes.

3. BUSINESS CONTEXT As the technology service provider for 19 different, but similar Associations, a key opportunity for AgFirst is to be able to share and reuse business solutions. For example, if an appraisal request program was created for one Association, it was very important to show others how the solution worked and to be able to quickly copy and modify the solution to meet the unique business needs of other Associations. However, it was very challenging to share and reuse best practices when developing business solutions. For example, a solution that automated the loan transmittal for loan officers and processors would require a great deal of business logic coded in InfoPath forms. In order to share these business processes, a manual effort was required to document them using Microsoft Visio. This created two significant challenges: 1. It was difficult to ensure that the Visio document accurately reflected how the code actually worked. 2. It was a completely manual effort to reuse a business solution. This would require the developer to copy and paste code. These challenges posed by the underlying technical platform were hampering AgFirst's ability to add value by sharing and reusing business solutions across its District Associations. Furthermore, AgFirst was unable to deliver these legacy solutions on mobile devices.

4. THE KEY INNOVATIONS 4.1 Business BPM has "changed the game" for the AgFirst services teams. Key innovations the platform has delivered include:  Improved business partner engagement. Using the BPM modeler, solution architects can collaborate with business users to design intuitive process models. These models have two significant benefits. First, they form the basis of a "self-documenting" system. The process model (the documentation) is what actually drives the system. Second, these models can easily be shared and reused when doing similar solutions for other District Associations (see figures a and b).  Rapid application development. Using the BPM development tools, complex solutions can be delivered in weeks.  State of the art integration platform. Since BPM tool is built on a Service Oriented Architecture, AgFirst has been able to integrate it with other back office solutions (see figure c).

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AGFIRST FARM CREDIT BANK, USA 

Mobile device access. The BPM platform features a responsive design and solutions can be delivered on mobile platforms (see figures d and e).

Figure a – Loan Transmittal Process

Figure b – Special Assets Management Process

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Figure c – BPM Integration with other backend systems Other innovations that the BPM platform has delivered include: Adaptable process model: The ability to make changes, even late in the process development, has been key to user acceptance. “Midway through the project, our customers came to us with suggestions to change the user interface substantially. In any other system we’ve used, the answer would’ve been a definite “no way”. But our solution allows us to make these changes quickly and cost-effectively.” Bala Sivankoil, Director of Application Development Ability to add more processes quickly: the system’s adaptability and reuse capabilities has enabled AgFirst to create new processes and roll them out fast. AgFirst added Assets Management, Loan Insurance Tracking and Asset Value estimation processes within the first eight weeks of implementing Loan Origination. Mobile solution: Enabling Loan Analysts to review and approve loan applications on the move has removed bottlenecks within the approval chain. AgFirst’s 75 users can now start to work more productively around the clock no matter where they are located.

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Figure d - Loan Transmittal Application using BPM Tool 4.2 Case Handling AgFirst asked the vendor to deliver a full working Proof of Concept, which they did in one week. The next step was to define the case template. Five key stakeholders from different business roles at the ACA came together in a process workshop where process owners were appointed to manage the requirements gathering and process design. 4.3 Organization & Social AgFirst’s ACA loan officers and analysts had no previous exposure to application development using BPM tools. However, the vendor’s free process modeler was critical as a medium of communication between them and the developers. Their input into the business process model and seeing it come alive in the modeler were important factors in getting their buy-in. “The important thing for our users is that they now have everything in one place and benefit from looking at the same version of the truth.” BPM has had a positive impact at management level too. “Committee Members are now notified when their sign off is needed and can now sign off Loan Approvals remotely either using a desktop or through their mobile devices – this gives them tremendous flexibility. And with more tech-savvy employees and customers, mobility is now a must to stay competitive.” Bala Sivankoil, Director of Application Development User and business acceptance has put in place the foundation for an IT Center of Excellence combining a mix of internal and outsourced staff. The vendor’s training services and quality documentation have significantly lessened the learning curve, enabling all involved to build familiarity with the system and implement change quickly.

5. HURDLES OVERCOME AgFirst’s move to BPM has not been without its challenges. The leap from their current methods to a regulated administration created a few challenges for both

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AGFIRST FARM CREDIT BANK, USA staff and management. Their previous solution, while not entirely streamlined, afforded users to make more subjective decisions. In order to create a BPM solution, all business rules had to be quantified and documented. These challenges have been addressed by the dedication of AgFirst’s BPM Project Team. Taking time to walk staff through the interfaces has paid off, as has getting the business involved in process discussions. 5.1 Management One of the concerns was that some of the users wore multiple hats while in some cases users within the same group worked slightly differently. This presented a challenge, which the BPMS addresses by providing a simple way to delineate roles and allowed for users to be in multiple roles. Management also saw that the process was self-documenting and enabled them to have a visual view of their Association’s business process. 5.2 Business One of the requirements in the process was to be able to measure various performance metrics that would give management an indication of how efficient the process was and how quickly the customer was being served. It was also important that such metrics would be used to improve the business process. 5.3 Organization Adoption Right from the beginning of the BPM project, AgFirst made all attempts to get buyin from key stakeholders at the ACAs. This helped immensely to convince all users that this was important for the whole organization to use this solution consistently.

6. BENEFITS At time of writing, AgFirst’s solution has been live for three months. The baseline metrics related to process performance are in place, and will be measured at frequent intervals. However, the specific goal of the project was not to save time or money. Instead, the focus was finding a cost-effective solution that could be delivered quickly and would increase data quality and reduce risk. Some key metrics are: 1. Average number of loan transmittals per month – 65 2. Average duration of closed cases is 12.5 days. This exceeded ACA’s expectation of 20 days 3. 97 percent of the loans were analyzed within expected durations in the last three months 4. 100 percent of the request for information from Loan Approvers was completed on time in the last 3 months. 6.1 Cost Savings / Time Reductions The goal of the solution was to create consistent processes, reduce the risk of errors and to be able to process more Loan Transmittals without increasing staffing. 6.2 Increased Revenues This is not a goal of the project and will not be measured. 6.3 Quality Improvements Automation using BPM has resulted in consistent process that reduces the risk of errors by reducing rekeying of data and bringing all information necessary to make decisions in one place.

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BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Appoint one of the vendor’s development team to work on-site during the development stages to speed up delivery time.  Involve stakeholders in the process discussion early and allow plenty of time for feedback  Prepare to overcome misconceptions about KPIs; explain the benefits of process measurement.  Ensure the solution supports single and multiple delineation of roles; this provides governance but also flexibility for employees. 7.2 Pitfalls  BPM technology alone cannot bring fast results. Process discussions with the right people are essential.  Don’t take the vendors’ word that they can do the job. A proof of concept is necessary.  Make time to walk stakeholders and users through the interface. A visual view of processes will hugely increase their acceptance.

8. COMPETITIVE ADVANTAGES AgFirst’s BPM solution has delivered immediate short-term advantage. In 16 weeks, the bank has transformed the quality of loan transmittals it offers to customers. The ability to define, deliver and adapt processes very quickly has allowed the momentum to continue: a third and fourth process have been deployed in 25 percent time of the first. Longer term, AgFirst plans to "ramp it up" across several additional associations within the next six months.

9. TECHNOLOGY 

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AgFirst Farm Credit Bank selected BPM platform to model and automate the business processes. They used BPM Process Modeler to design and document all aspects of the loan Approval process, BPM Studio for automating the processes and lastly BPM Engine to deploy them. The BPM Studio enables AgFirst to be agile and make changes fast to the unique processes of each Association. It also allows AgFirst to integrate their processes with four key IT systems including CRM, Document Management and a Credit Checking service, making full use of BPM system’s powerful Service Oriented Architecture (SOA) capabilities such as web services, data virtualization and replication. BPM tool is an integrated Suite which enabled AgFirst to manage the complete process cycles. It is agile enough to support changes in business and market conditions and it is robust and multifunctional to support mission critical operations and organizational growth. The unique benefits delivered as a result of BPM tool’s unique architecture enable AgFirst to process loans faster without having to increase headcount. In addition, the optimal mobility offered by BPM tool allows AgFirst Loan Officers to process loans on their mobile phones and tablets.

10. THE TECHNOLOGY AND SERVICE PROVIDERS AgFirst selected Bizagi BPM solution to model and automate their business processes. Because the Bizagi Modeler can be downloaded for free, users at AgFirst were able to learn the system prior to embarking on the project. The Bizagi website

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AGFIRST FARM CREDIT BANK, USA also offers a comprehensive self-service program that includes e-learning, training courses and videos, enabling the learning curve to be significantly shortened. Bizagi Modeler is an intuitive drag and drop application which can also be used to generate process documentation. AgFirst used Bizagi Studio to automate their processes, turning their process models into executable applications. With Bizagi it is very easy to move from process modeling to execution, without the need for technical knowledge, so the system is often used by Business Analyst and business line managers. Bizagi offers a complete solution which includes design and implementation of the process workflow and automation of processes. As Bizagi offers an integrated BPM Suite, AgFirst was able to manage the complete process life cycle without any other additional or external tools. The platform has the flexibility and capability of integrating and automating several processes at the same time, thereby creating a robust system that can be easily adapted to business growth as more and more processes are automated.

Figure e – Bizagi Platform Architecture Bizagi BPM solution is a modern business collaboration tool for faster process automation. Its built-in functions, ease of use and flexibility makes it the ideal BPM platform to deliver faster results. The tool has most of the common and reoccurring requirements in process automation pre-built. These include:  Control and visibility  Alarms and notifications  Performance analysis and reporting  Auditing and traceability  Workload routing and balancing  Mobility  Integration APIs Corporate features (multi-tenancy, BPMN process engine, multiple language support, time-zones, long lasting process transactions, enterprise data model, among others)

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Axle Group Holdings Ltd., UK Nominated by EmergeAdapt, United Kingdom 1. EXECUTIVE SUMMARY / ABSTRACT In January 2012, Axle Group Holding, one of the UK's largest multi-channel tyre retailers, replaced four eCommerce systems along with a back-office platform to provide case workers with a tool to deliver customer service and post-order treatment. EmergeAdapt built the eCommerce systems and a new back-office case management platform, integrated to all four sites, and to a branch and warehouse system written in DataFlex. All systems were launched in December 2012. Separately, and while engaged on the Axle project, EmergeAdapt was asked by a UK Claims Management Company to provide the same case management platform for the end-to-end management of circa one million claims. This solution allows 120 operators to manage case creation, through to customer contact and negotiation with the UK financial institutions defending the claims. The solution was launched in January 2013. Both organisations are supported in production on a single multi-tenanted cloud platform, configuring their own case templates in order to deliver their unique service proposition.

2. OVERVIEW EmergeAdapt had been looking for an opportunity to build an Adaptive Case Management platform in late 2011, with the aim of bringing enterprise process management to the mass, cloud market, while providing through abstraction, significant levels of end-user configurability. The company founders' experience in traditional on premise, customer-centric BPM led them to conclude that adaptive principles could provide longer-lived operational software solutions, with lower cost of ownership and higher degrees of end-user change. At Axle, case management delivers a single point of reference for all customer orders coming from four of its eCommerce websites. Further to that, Axle wanted a platform that could grow with them as their business changed, supporting internal process across all lines of business. Case Management offered the promise of not only managing repetitive activities, but also providing flexibility for future, unforeseen process. Meanwhile, CMC had been set up to industrialise claims processing, acting as a service provider to a range claim-book owners, or "work providers". CMC reconised the need for a case management tool which could evolve with the business. Claims processing had no precedent at CMC, and managing a process involving over 200 lending institutions with no industry standardisation would present multiple challenges. Being able to change the process under end-user control, without resorting to engineering was seen as desirable. The main project challenges encountered were: 

Requirements capture was difficult at both organisations, and for different reasons. At CMC, the end-to-end claim process was not known at the outset and at the time of writing is still evolving. Ensuring that the platform could get the process off the ground early, while adapting quickly to change was critical.

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AXLE GROUP HOLDINGS LTD., UK  

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At Axle, due to commercial sensitivity, access to internal resource was restricted until very late in the development cycle, placing particular focus on establishing the correct task-oriented end-user experience. Building a new case management platform as a re-usable, generic product was a key objective, otherwise the platform would not achieve its goal of becoming an open-market offering. Each requirement was translated from being specific, into a generic requirement plus configuration. Ensuring the case management platform could support a broad range of process scenarios within any organisation, while giving the operational manager meaningful levels of control through configuration. For example, how to define a method for integration to external systems, through case template configuration. System rollout at Axle required a big bang approach, launching multiple eCommerce components and the case management platform simultaneously. Management of this change was pressurised especially when the volume of work passing through was significant and business critical

3. BUSINESS CONTEXT Axle Group Holdings is the UK parent company of a number of brands: National Tyres and Autocare (with 220 high street branches plus internet presence), Tyre Shopper (internet), and Viking (wholesale). Axle also operates National Fleet, a service provider to company car fleet administrators. Axle came to the end of 2011 with a renewed strategy of investment in IT to better serve the growth needs of their business. Incumbent technology was nearing endof-life and Axle set a 12-month period for the complete replacement of key customer facing and operational systems, with new strategic platforms. CMC was new to the volume claims market in 2012, and was created from the ground up, with no incumbent resource, process or technology. CMC had signed contracts for the delivery of the service and needed to rapidly create a solution which would support operations.

4. THE KEY INNOVATIONS Innovations were made across a number of areas: 4.1. Case template definition Axle and CMC system administrators gain the ability to define and rollout their own case templates, abstracted to the level of the business analyst or operational manager - data model, states, tasks, relationships and permissions. Templating has encouraged business-led change and reduced reliance on technical resource to build and maintain. Schema configuration offers a YAML-model for entities and fields and allows configuration of entities, fields, calculated fields and external data sources:

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Figure 1: Case template definition - Schema At Axle, the schema contains the typical entities of an order including customer, order line items, fitting appointment (time and location), payment details. At CMC the claim (aka "matter") schema contains information such as the client, work provider, defendant, settlement and credit agreement information. Configuring case states enables the organisation to define key milestones for different case templates and allows the end-user to reflect real world abstraction directly into their operational system:

Figure 2: Case template definition - States of an eCommerce order Configuration of tasks allows manual or automation tasks to be defined. Manual tasks act as guidance for case workers and can be added at runtime into case instances without affecting the underlying template.

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AXLE GROUP HOLDINGS LTD., UK Automation tasks take advantage of a bespoke scripting language to perform actions such as calling an external service, or updating case data. The scripting language is aimed at a spreadsheet user familiar with formula manipulation. A document model within the case gives access to all case instance attributes within a script:

Figure 3: Case template definition - Tasks and scripting Both types of tasks are presented as a task list within each case instance, which also depicts the status of each task and the participants. This has allowed Axle to create a comprehensive suite of tasks which cover all possible order treatment processes, including submitting a newly created order to the in-house ERP system:

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Figure 4: A live case: data, tasks, and participants 4.2. Management of work Each case template is represented with a single work queue for cases, the 'All' queue. Every case instance appears in this queue. Through the use of permission-based "buckets", management can create virtual queues based on queries on the All queue. This allows Axle to create work folders for different stock types, risk issues, stock unavailability and exceptions generated from the fulfilment system. Being able to visualise orders across the full range of states and case behaviours has allowed Axle to improve their deployment of case workers. For example, during a recent failure by the online payment gateway Worldpay, eCommerce payments were not processed for new orders, resulting in customers thinking they hadn't bought any tyres, but Worldpay had actually taken payment. Management immediately setup buckets for these orders and created a team to investigate each payment before contacting the customer to ensure safe processing. Once the issue was cleared, the bucket and the team stood down. Using a similar approach, CMC can track all claims and their status. At the beginning of the claim process, the client must provide physical signed authorisation on a number of documents before CMC can act on their behalf. Understanding which of these "client packs" are awaiting return by post is key to ensuring process efficiency.

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Figure 5: Buckets: CMC's 'Matter' Case CMC management makes use of bucket alarms to react to build up of cases in a particular state. For every business critical case state, alarms are defined to reflect the different SLA's agreed with each work provider. These can be progressive and provide alerts to different management levels within the organisation. There are mandated periods once a claim is registered with the defendant, so making sure the business can react at both a volume and individual case level is fundamental to the service. For example, once a claim is registered with the lender, if no decision has been made within 8 weeks, the claimant, and CMC on their behalf, can lodge a complaint with the UK's Financial Ombudsman Service. That complaint process can also be administered by the case management platform and be associated with the relevant claim for future auditing. 4.3. Business CMC serves two customers – the work provider, and the claimant. On their behalf, CMC pursues the defendant, typically a financial services company. There is a range of participants in the end-to-end process:  

CMC management directing and governing, with full system privileges CMC case workers who can view and modify cases, but can't export or import data from the system  Agency-sourced case workers with 'view only' access to sections of the case data model and tasks  The work provider, providing of large volume of claim case work, aka the claim 'book'  The claim defendant While the defendant would not be permitted onto the system given the adversarial nature of the process, all other parties are brought together collaboratively inside each case instance. Each user is created and assigned to a team, or multiple teams, and each team is given a range of permissions within the case template -

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AXLE GROUP HOLDINGS LTD., UK ranging from full permissions to create, modify and import/export, down to viewonly privileges.

Figure 7: Teams & permissions In this way, CMC is able to extend system participation to its work providers - this level of transparency has led to increased trust and stronger business relationships, and frees up internal resource when the work provider wishes to investigate individual claims. Each work provider is prevented from seeing the other's claims through the same permissions mechanism. 4.4. Case handling At Axle, case work was previously supported by two separate systems, one for retail orders, and the other for wholesale orders. These were functional applications which required engineering to change. The new case management platform consolidated all order types onto a single platform. Axle's order case template was initially created during joint workshops between the delivery team and the client. This covered data, tasks, teams and permissions for the two mains teams who support the end-to-end process. The procurement team is responsible for treating order exceptions - the 'normal' route for an order is to be submitted straight through to the branch and warehouse systems by the platform. Reasons for exceptions include stock unavailability, risk or payment problems. The finance team is a second-line team responsible for processing any post-order financial transactions such as refunds and goodwill gestures. While front-line case workers are permitted to request a financial adjustment, they are not allowed to execute that task. The refund process itself is a manual task in the platform, and by a similar permission model, it is protected from misuse. By configuring a bucket alarm, an email alert informs the finance team whenever an order requiring processing appears.

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AXLE GROUP HOLDINGS LTD., UK At CMC, the case template was initially created with just the schema, some basic states and no tasks. This allowed claim books to be imported and the first step in the process of gaining the client's authorisation to begin. Over time, the CMC team learned more about the process from engagement with their work providers, the defendants and the regularity authorities. Changes to the case template were made incrementally at this stage. For example, the case state of "Acknowledgement Letter Received" was initially created to mark the point when CMC confirms it has received a letter from the claimant. It was discovered that this status wasn't sufficient because letters were being received which contained issues needing resolution. Management, at the request of the case workers, created an additional status of “Acknowledgement Letter Received - With Issue”. Additional manual tasks were then created around this new state to help track these claims. 4.5. Organisation and social For Axle, the case workers overall job description hasn’t altered significantly. However, management is now able to set up teams quickly to deal with individual exception types. This has changed the culture of case workers cherry picking 'easy' work, which was common with the previous system.

5. HURDLES OVERCOME The biggest technical challenge to conquer at Axle was complexity. Having to understand their requirements, to design and build a generic case management application, and then configure it for production, while building four eCommerce sites, with a simultaneous go-live ... this involved considerable effort from the entire team. 5.1. Management The management of the delivery team, which grew to 12 at the peak, was challenging. A Scrum model, based on 2-week iterations, with multiple product backlogs was adopted. This became difficult to manage and led to team frustration and demotivation - lack of clarity of purpose being cited as the main reason - team members were working across multiple backlogs and tracking individual activity and dependencies across tasks became error prone. Subsequently, the team adopted a Kanban-style model based on a single work stream, with features drawn from multiple areas. This has led to improved quality and team productivity. 5.2. Business At Axle, time with end-users was limited, so the delivery team took audio & video recordings of case workers using the existing systems. These proved invaluable for communicating to Axle management deficiencies in the current way of working, and as justification for approaching the solution from a process-led perspective. In one example a customer was phoned and taken through a 5-minute substitution sell process, only for the customer to inform the case worker at the end of the call that he had already been called and gone through this process one hour previously. This highlighted the need to present a clear view of case history easily accessible to the case worker and resulted in visual timeline which is intrinsic to all case instances, across all templates. 5.3. Organisation adoption At both organisations, management mandated end-user adoption.

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AXLE GROUP HOLDINGS LTD., UK It had been agreed with Axle up front that a 'minimum viable product' approach was acceptable given the hard deadline of 31 December 2012, and this did have an impact on the case worker. Not initially having all of the system features which had been built into the previous systems over a period of years was frustrating for them and required work-arounds and manual processing for a period of time. By a continual rollout of new features for three months after go-live, management and case worker confidence was regained and the benefits of the new system were found. This period was particularly challenging professionally and emotionally for both organisations, but the end result has now been warmly accepted. Platform features have also been adopted in ways different from expectation. For example, case tasks have a notes facility which allows case workers to capture comments about individual tasks. Also, each case has a conversations feature which has a similar purpose, but for the case as a whole. At Axle the conversations feature has been almost universally ignored in favour of task notes. While at CMC, case conversations have been preferred. In this way, the case management platform offers loosely coupled tools, in the confidence that the case worker will deploy which ones are best in any given scenario.

6. BENEFITS 6.1. Cost savings / time reductions For Axle, moving their existing operational platform to the cloud has resulted in savings attributable to circa US$100k annually in terms of application and hardware support, and resource. It is too early to quantify other operational efficiencies. For CMC, their cost savings translated into an investment in a new system. A percase fee was agreed, which constitutes approximately 0.3% of the average revenue generated on a claim. 6.2. Increased revenues The total solution for Axle has supported revenue at the same level as before, although the case management platform only manages orders that are generated from eCommerce sites outside of its control and subject to economic factors such as product pricing and search engine optimisation. US$4m of orders is processed every month by the platform. For CMC, the solution will allow them to process one million claims over a period of 18 months, from a zero base at the start of the project. 6.3. Quality improvements At Axle, they are able to identify training issues, by creating ad hoc buckets to represent orders in a particular state. For example the case worker can restructure the order by adding/removing line items, sourcing stock from 2nd line suppliers, and changing fitting appointments– and at this point a bucket can be created showing orders that have not been well formed, and alert managers to training needs. The automated timeline stream of case events shows all data changes, timings, status changes and collaboration from other case workers. In previous systems at Axle, much of this was captured in a notes area and relied upon the end-user to capture all key activities. By automating and presenting case events in a standard format, end users have one source of truth about the case. This has resulted in greater consistency in the way case workers interpret and follow up case work, reduced unnecessary dialog with the customer and improved internal communication.

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AXLE GROUP HOLDINGS LTD., UK At CMC, the platform provides accurate real-time summary information across all claims, correlated in multiple dimensions. For example, summarising the total financial value of all claim books reduces the manual effort in collating that information for internal management and work providers.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1. Best practices 

Change slowly – create a case template and trial among a small number of users, before extending to the rest of the community once it has matured.

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Add more case templates to extend the system function over time.

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Don't measure initially – stabilise the process first, then start to learn by using metrics and alarms on work queues.

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Assume that the first iteration of a feature in the solution will be improved, so form a process around capturing user feedback and feed back into the core platform – agile methods facilitate a rapid turnaround model.

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Understand the business change required to adopt a case management platform internally and support it with knowledge sharing.

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User-centric design can result in a more intuitive solution. Time spent with case workers will allow the designer to make strategic choices over interface design and navigation, rather than an engineering-led, functional approach.

Big bang rollouts should be avoided wherever possible. If there is no choice, then prepare the organisation for the worst case scenario and have a fall back plan should things go wrong. At Axle, because certain features were not fully functional immediately, the operational teams were put under significant pressure to continually come up with mitigation strategies. 7.1. Pitfalls 



Creating features which are better implemented outside the core platform or where more specialised solutions are readily available on the market, results in dilution in the cohesion of the core platform. Integrate uniqueness out to services or 3rd party applications to minimise the effect.



The platform provides different ways of solving the same problem – it is down to the ability of the configurator who will require knowledge of the operational process, steps, stages, business rules and team behaviour. Make sure that sufficient skill is present in the team performing the configuration otherwise task, and status proliferation will result in a bloated application



Re-engineering process or system features, even in a small way can have a big impact on case workers and influence adoption of the system as a whole. The journey should have everyone on board from the outset.

8. COMPETITIVE ADVANTAGES CMC has a case management platform which allows them to deliver against SLAs agreed with their work providers, and takes account of the governance process imposed by the UK Ministry of Justice and the UK Financial Ombudsman Service. Furthermore, the benefits of transparency offered by socialising case work with the work providers has further added to their reputation and rise in the market-

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AXLE GROUP HOLDINGS LTD., UK place. To the extent that in the specific sector they are operating, CMC is the largest service provider and will manage a number of claims 10x higher than their closest competitor. At Axle, the initial strategy of establishing the core platform has recently been completed. Competitive advantage will only be realised by further improvements in the next phase of the project. The ultimate aim is to improve profitability by reducing costs relating to systems and process, allowing them to become more price competitive in what is a commodity market. From the vendor's perspective, the case management platform created will allow them to compete on the global market place against established cloud case management suppliers.

9. TECHNOLOGY The case management platform's technology stack is MySQL, MongoDB, Ruby on Rails, ember.js, HTML5, CSS3. All components are hosted on Amazon Web Services & OpsWorks:

Figure 8: Vanilla Case Management Platform Architecture

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AXLE GROUP HOLDINGS LTD., UK Axle's deployment architecture is

Figure 9: Case Management Deployment for Axle CMC's deployment architecture is:

Figure 10: Case Management Deployment for CMC The benefits accruing from the technology infrastructure and features vary according to the end-user: (a) Technology benefits for Axle 

Building the case management platform as cloud application meant no on-premise hardware or dedicated support staff. This is estimated to save US$100k per annum in operating costs 117

AXLE GROUP HOLDINGS LTD., UK 

Time to configure and deploy a new case template such as a complaint is reduced to hours. This has allowed Axle to decommission a bespoke internal complaints system and allow them to relate a complaint directly to a customer order, which was performed manually in the past.  Incremental change to the process, such as changing the data model in a case template or changing the tasks or permissions, can be performed by the end-user.  The platform’s permissions feature allows Axle to target specific areas of case work, such as financial processes, at the appropriate internal team. This had not been possible in the previously.  Axle can quickly react to build-up of case work in different states, using alarms, for example if the bucket containing 'orders requiring stock' increases above ten over the period of an hour, then they can quickly allocate people to that work.  The calculation engine allows a case worker to immediately recalculate an order after any changes post initial submission, this reduces chance of human error (b) Technology benefits for CMC 

CMC is able to add users quickly and simply, and can include temporary agency staff with minimal privileges using permissions, e.g. not permitting them to export data from a bucket.  The platform’s API (case create / update / search) allows CMC to create custom applications which perform tasks too specialised for the case management platform. For example, preparing client packs for an external printing bureau and adding claimant credit search information to the case from a bulk HTML report  The API also allows an on-premise dialler to call into the platform with case updates, based on telephone dialogue with the claimant.  Performance and scalability is achieved using MySql in combination with MongoDB and Elasticsearch in the core platform. CMC has circa 750,000 separate claims cases under management in the platform and has allowed the user community to peak to over 100 users without additional infrastructure costs. (c) Technology benefits for EmergeAdapt   



The platform is multi-tenanted - built into the application's data model and not using virtualisation. On-boarding new clients is quick as a consequence. The platform's open source software stack makes it inexpensive to develop and support. The user interface has been designed for a cloud subscriber where learning time has to be minimal. By focussing on user-centric design, the platform is functionally less dense than traditional corporate applications, with each screen highly focussed on the task in hand. This has resulted in almost zero training time for new users Data export and import mapped onto case template schemas allows the end-user to move their key data into and out of the system easily. This makes the platform attractive to companies where data migration is important.

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AXLE GROUP HOLDINGS LTD., UK 10. THE TECHNOLOGY AND SERVICE PROVIDERS Vendor: EmergeAdapt was set up in 2011 with the strategy of building "CaseBlocks’" as a cloud/SaaS ACM platform. The product was built with Axle as the first tenant, and rolled out to CMC as the second tenant. EmergeAdapt built the product during 2012. Both solutions were launched in January 2013. All components in this case study were built by a multi-disciplinary team of eight people over a period of twelve months. CaseBlocks will be launched as a general purpose tool to the global subscriber market in Q4 2013. It is intended as an ACM product for general consumer or service provider markets, and contains no domain-specific features, instead, focusing on the provision of cloud-based tools for the definition of all end-user case logic. Contact: www.emergeadapt.com & www.caseblocks.com

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Bank Dhofar Nominated by Newgen Software Technologies Limited, India 1. OVERVIEW Established in January 1990, Bank Dhofar commenced operations with two branches, in Muscat and Salalah. Today it is one of the fastest growing Banks in the Sultanate of Oman, with a strong presence in Corporate Banking, Consumer Banking, Treasury Banking and Project Finance. The bank realized that to facilitate and manage the growth of its retail assets, it needed to enhance its operational capacity, productivity, and ability to scale-up operations. Automation of key business processes was identified as a key imperative. The bank decided to automate two of its key business processes, Retail Loan Origination (covering Home Loan & Personal Loan), and Credit Card Processing. The Loan Origination process is highly regulated and data-intensive, requiring input and feedback at multiple steps throughout the loan cycle. The bank realized that there was a strong need for a solution that could effectively digitize and handle the effective flow of the documents from across the process life-cycle. Further, to keep up with the demands of the ever-increasing customer-base, the bank needed a solution for end-to-end automation and centralization of its credit card processing and approval systems. After evaluating a host of solutions, Bank Dhofar decided to go with a solution comprising a proven Business Process Management (BPM) platform, an Enterprise Content Management (ECM) platform, and a Scanning and Digitization suite, for end-to-end automation of its Retail Loan Origination and Credit Card Approval processes. The solution offered enhanced business flexibility, better credit risk management, and rules-based processing, resulting in improved business performance for the bank. Below is a brief overview of the processes automated:  Loan Eligibility – Built on a proven BPM platform, the process performs loan calculations. When a new customer approaches a branch of the bank, to avail Housing/Personal Loan, the Loan Officer logs in to the Loan Origination system to initiate the Loan Eligibility process by entering the relevant customer details. The system performs some calculations based on the entered information and informs whether the customer is eligible for the required loan or not. Once eligibility is confirmed, the Loan Officer fills in the complete customer details and routes the application for necessary approvals. Upon necessary approvals the application is sent for creation of account (Operative account, Marginal account, Loan Account) and disbursal.  Credit Card – The Credit Card Process is designed based on the assumption that the person applying is an existing customer of the bank. Using the scanning tool the branch user scans the completed application form along with supporting documents, enters the CIF ID in the text field, maps the documents to the corresponding document type, and exports to the BPM solution. This automatically creates a work item in the BPM solution and all the document and data are

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BANK DHOFAR, SULTANATE OF OMAN made available to the system, which checks the application for eligibility. If the customer is eligible for the service, the branch user fetches the complete information of the customer from Core System and routes the work-item for approval. Once the application is approved, it is sent to the Card Operations team for Card Creation and Account Opening. The document digitization and scanning tool along with multiple image servers and a centralized document management system, made it possible to make all the business decisions on electronic documents available anytime-anywhere on the web. The electronic documents archived in the document management server are accessible to users as per their access rights. The BPM platform defined the entire process flow for the Retail Loan and Credit Card processes. It also defined the document image flow from the branch offices to the back-office (Central Processing Center) for all the processes. As a result of the implementation the turnaround time for Retail Loan Approval was reduced from 7days to 1 day (86% reduction). The turnaround time for Credit Card approval process was reduced from 5 days to 1 (80% reduction). Direct and indirect benefits accrued to the bank include:  Reduction in Operational Costs, Travel, and Communication Expenses,  Reduction in process turnaround times  Improved customer satisfaction as a result of faster loan disbursals and credit card approvals  Better performance monitoring using audit trails and ability to drill down to granular details  Reduced operational costs for document capture, retrieval, and processing  Parallel processing of loan application documents  Anytime anywhere rights-based access to necessary documents, enabling faster decision-making

1. BUSINESS CONTEXT Bank Dhofar was aggressively looking at expanding its business both vertically and horizontally. To facilitate its growth agenda the bank wanted to automate key retail processes and decrease the process cycle times, while enhancing operational efficiencies. Bank Dhofar wanted to develop a Central Processing Center (CPC) and several Regional Processing Centers (RPCs) for complete back-office process automation, which was an integral part of the bank’s growth strategy. The bank realized that to achieve all these objectives they needed a BPM platform to underpin their operations, which would not only bring complete automation and process visibility but also ensure adherence to regulatory compliances, enable continuous process improvement, and help improve quality of customer services. The bank decided to start with the automation of two key processes - Credit Card Process and Loan Eligibility Process. Before the implementation, all the physical documents were processed manually. Everything work-step from filling of the details, and processing of the request for approval, to opening of accounts, was manual. Even the eligibility for the loan was checked manually.

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BANK DHOFAR, SULTANATE OF OMAN Key issues that the bank was looking at resolving as a result of the implementation include: 

Providing visibility to employees for all work items pertaining to them, to help in streamlining their activities in an efficient way  Providing easy access from desktops to all documents and processing status of cases  Establishing best-in-class operations and productivity standards through analysis of time and motion data coming out of the workflow database, rather than using traditional averages that could be skewed by idle time, low skilled staff, and poor practices  Skill-based dynamic work allocation and tracking  Faster exception resolution  Higher process efficiency  Tracking the status of applications (at CPC/RPC)  All the documents were physically managed and transported to RPC/ CPC site from the branches pan-India for processing  Reducing turn-around-time  The bank did not have a comprehensive audit trailing facility  All the loan calculations were done manually. A loan calculator was provided to do the calculations  Manual hand-offs of documents made it difficult to track and manage the right versions of documents  Escalation and exception management process was manual and errorprone  Manual processing of all customer requests, received via multiple channels Post implementation all customer requests and work-items are processed in the central offices resulting in leaner branch offices. The branch offices capture the customer documents and some key customer details, using the Distributed Capture tool. The system performs a duplication and blacklist check, and then sends the customer requests to the centralized back-office for Loan Approval or Credit Card Approval. This allowed the branch staff to concentrate on customer-facing activities. Further, the simplicity of operations made it easier for the bank to roll out new branches in quick time.

2. THE KEY INNOVATIONS 3.1 Business The solution offered some innovative features and capabilities that helped the bank achieve operational efficiencies. Some of the innovative tools are detailed below: 

Loan Calculator – The Loan Calculator is an application within the Loan Eligibility process to perform loan calculations based on a customer’s credit history, income, and other details. A prospective customer submits a request for a new Housing/Personal Loan through Bank Dhofar’s designated branches. The Loan Officer logs into the Loan Eligibility process and enters the necessary customer details (Salary, D.OB etc) in the relevant fields. He then clicks the ‘Check Eligibility’ button to perform necessary calculations. The system carries out the calculations as per Bank Dhofar’s policies and the results are displayed to the Loan Officer.

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BANK DHOFAR, SULTANATE OF OMAN



Blacklist Check - Blacklist check is performed to check if a customer is blacklisted. To Perform Blacklist check, the user clicks on the Blacklist button on the form and the acknowledgement (Yes/No), is successfully populated in BPM system. Blacklist check can also be done for the Guarantor provided by the customer.  Fetch Customer Details - This operation is used to fetch the customer’s details from Finacle (Core Banking System). For fetching the customer’s details, user needs to press an action button - “Fetch Customer details”. At this work step, the system automatically checks existing customer database and updates CIF (Customer Information).  MIS - Below mentioned custom reports are made available in the Personal Loan process apart from the inbuilt product reports.  Branch Initiation Report: It is generated on daily basis and provides details about the total number of cases initiated by any branch. It also provides details on the loan ticket number associated with customers.

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BANK DHOFAR, SULTANATE OF OMAN 

Daily Loan Booked by Branches: It provides details about the Loan booked by branches on daily basis.  Summary Report for Approved Applications: It provides details about the Loan applications approved by branches on daily basis.  Summary Report for Rejected Application: It provides details about the Loan applications rejected by branches on daily basis including rejection code and reason for rejection.  Daily Summary Report For Pending Application: It provides details about pending applications such as at which stage the application is pending and since how many hours 3.2 Case Handling The design of the Loan Origination System process is based on the Pro-Agile Approach. It is a blend of both prototyping and agile methodology. It makes early visibility of functionality in less number of iterations without any scope creep. It is very simple to understand and use. The Pro-Agile approach follows the following workflow:

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BANK DHOFAR, SULTANATE OF OMAN

Architectural Diagram Components Used:  Business Process Management Tool  Enterprise Document Management System  Digitization and Automatic Data Capturing Tool  Business Activity Monitor- a graphics based process analysis tool for business processes. Bank Dhofar implemented the BPM-based solution to automate two key processes i.e. Credit Card Approval and Loan Processing. Credit Card ->Credit Card Process: The main objective of automating this process was to enable electronic flow and archival of the application form and documents submitted by the customers, and accelerate Credit Card application approval process.

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BANK DHOFAR, SULTANATE OF OMAN Brief Description:  Work introduction begins from the scanning engine where the completed Application Form and relevant documents of the customer are scanned and the work-item/application is introduced into the workflow  Once the work-item has been initiated in the workflow, the user starts with the processing of the work-item/application by referring to the scanned/attached documents  The Branch initiator enters the CIF ID in the Proposal form and automatically the details of the customer stored in Finacle are displayed in the proposal form in the relevant fields  The Branch Initiator performs the Blacklist Checks, CBO Caution list Check, and Customer Rejected Check  The Branch Initiator captures the details required for the system to calculate the DBR & proposed credit limit of the card based on the information provided by the customer  After the data entry fields are captured properly and documents are verified, the branch initiator takes one of the below mentioned decision:  Submit -- Will send the proposal form to the Branch Manager for approval  Discard -– If the application does not fulfill the Terms & Conditions  Finacle Exception –- If the application comes up with the Finacle Exception Retail Loan Origination Loan Eligibility Process -Data Entry users enter the data of the applicant i.e. Name, Date of Birth, Salary, and Type of loan i.e. Home Loan and Personal Loan. All the validations based on the bank policy are incorporated in this process based on the type of Loan (i.e. Housing Loan and Personal Loan). The validations can also be configured. Once eligibility criteria is cleared, completed loan application is then forwarded for further processing i.e. approval and Loan Account opening. Once the loan is approved the pre-printed template report is taken. The typical reports are bond reports, sanction order, etc. Loan Calculator- The Loan Calculator is an application within the Loan Eligibility process to perform loan calculations. A prospective customer submits a request for a new Housing/Personal Loan through Bank Dhofar’s designated branches. The Loan Officer logs into the Loan Eligibility process and enters the customer details (Salary, D.OB etc) in the relevant fields. He then clicks the ‘Check Eligibility’ button to perform necessary calculations. The system carries out the calculations as per Bank Dhofar’s policies and the results are displayed to the Loan Officer. Detailed Description of Loan Eligibility Process: If a customer comes to apply for a Personal Loan and he is also eligible for a Housing Loan, the system displays results for both the Housing Loan & Personal Loan while carrying out calculations. Once the filled customer application is approved by the Loan Eligibility process, it is routed to the respective processes i.e. Housing Loan or Personal Loan or both based on the Loan Type selected by the customer.  Scenario 1 - If customer agrees to loan: Loan officer clicks on the ‘Apply for Loan’ button if customer agrees

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BANK DHOFAR, SULTANATE OF OMAN to take the loan. A new tab is opened where the Loan officer captures the complete details of the customer. An option is provided to recalculate the Loan if there are any changes in the details given by the user at Loan calculation stage & actual details given while initiating the work item (as per the documents ). Another option is provided to the Loan officer to initiate the work item either in Housing Loan or Personal Loan or both the processes. Loan officer selects the appropriate option and clicks on the submit application button. Work items are created automatically in the corresponding processes (Housing Loan/ Personal Loan) depending on the option selected by the Loan Officer.  Scenario 2: If customer doesn’t agree to take loan Loan officer clicks on ‘Discard’ button, all details entered by the Loan officer are saved in the system and the work-item moves to exit queue. Records saved in the BPM database and can be used in future to generate leads.  Scenario 3: If customer agrees but doesn’t want to apply on same day In this case the Loan officer can click on the save button and details are saved in the system. When the customer comes to apply for the loan again (with actual documents), the Loan officer can search for the work item (based on CIFID or customer name) and initiate the work item in PL/HL process as per the customer’s request. Detailed Description of the Loan Approval Process (Home/Personal)  The Housing Loan/Personal Loan officer receives the cases from all the branches in a common pool  All the cases are then filtered branch-wise by applying the proper filter. These filters are configurable as per the bank’s requirement and can be changed in future.  The officer then assesses the cases submitted by all the branches and also reads the decision and comments of the branch manager and accordingly takes a decision.  When the officer takes and submits his decision the cases are forwarded to the CCU for further review.  If the Loan officer rejects any case, an auto email is triggered to the branch manager and the case is discarded from the system.  The officer can also send the case back to the initiating branch for rework if required. If he takes the decision to send back the cases for rework, they are sent to the Loan officer (initiating branch) from where the cases were initiated.  Loan summary sheet is generated and is automatically attached with the case in the predefined format shared by the bank  Once the Loan is approved by the approving authority, it is sent to the branch officer for generation of the offer letter which is signed by the customer and scanned and attached with the application, and sent to the CAD (Disbursement) department.  When the application is received by the CAD department, they perform below mentioned tasks through the BPM tool Open SB/OD Account, Loan Account

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BANK DHOFAR, SULTANATE OF OMAN  Update Insurance Details  Disbursement of the loan 3.3 Organization & Social  The end-to-end automation of the previously manual processes resulted improved employee productivity and satisfaction.  Elimination of manual hand-offs resulted in drastic reduction in calculation and other processing errors  Centralized processing of applications at the back-office resulted in freeing the branch staff to engage in business development and other customer-facing activities  Anytime-anywhere access rights-based access to relevant information helped in better and faster decision-making

3. HURDLES OVERCOME 4.1 Management Ever-changing requirements of the bank as the implementation progressed. 4.2 Business For the success of this project in-depth knowledge of Retail Banking operations and patience was the key. Understanding the requirement from the Business Users’ perspective and delivering a solution in such a short span was the key to success in this project. 4.3 Organization Adoption Acceptance of the new system by the bank staff required few training & information sessions to explain the need and benefits of the new system.

4. BENEFITS

The project was a landmark decision for Bank Dhofar, which facilitated its aggressive growth plans. The solution solved the business concerns of the bank and became a game changer for them as it brought about complete Business Transformation for the bank. All the processes were rolled out in 2 months across 63 branches. Some of the key benefits accrued to Bank Dhofar include:  Vertical and horizontal business growth  Easy audit and tracking  Report Generation  Faster process cycle times  Process and performance metrics for process visibility  Reduction in operational costs  Improved customer interaction resulted in higher customer satisfaction  Real-time exception handling between the branch offices and the Central office, such as invalid documents, documents not attached, credit card not issued, Loan Guarantor paper issues, etc.  No data redundancy  More flexibility in the business process as process route works automatically as per the type of work - debit card requests, internet banking request etc., and the amount associated  Total time taken for loan processing was reduced from 7 days to 1 day

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BANK DHOFAR, SULTANATE OF OMAN 

More accuracy while producing legal documents like Sanction Order, Bond etc.  Physical document movement was minimized  Reference to existing loan is made easier, as it can be referenced from the system rather than the physical documents The performance improvements of the bank were observed in the following areas: Improved Process Cycle Time The BPM platform significantly reduced the number of steps (Almost 50% reduction) involved in both the processes. Digitization made sure that there was no physical document movement across departments and locations. This contributed to achieving faster process cycle times and lower operational costs as there was no extra expense in courier or transportation cost. Since, all documents were digitized there was no chance of documents being misplaced or damaged in any process. Higher Process Efficiency All the external processes were seamlessly integrated and run automatically with existing banking processes. Now, the entire process requires minimal manual intervention. The system performs automatic data entry by using unique automatic data fill technique. The system automatically checks for duplicate customer entries and prevents user from doing so. The double data entry method also reduces data entry errors. All the physical documents are converted into digitized documents which transverse across departments and locations. The system also generates electronic data captured forms for the Loan Process and Credit Card Process, which includes KYC Process. The BPM solution supports automatic bulk upload of the general excel file to Flexcube. The process related data in XLS files are automatically uploaded in the core banking system without any manual intervention. Skill-based Dynamic Work Allocation and Tracking Work allocation and tracking of tasks had been a major challenge for the bank. The BPM solution provided a work distribution console that eliminated the bottlenecks in the job allocation process and ensured and equal distribution of tasks. Work is distributed as per the employee’s skill set and furthermore the solution supports complete audit trail of all the tasks and activities for monitoring purposes. Faster Exception Resolution The bank had an exception management process which was manual, timeconsuming, and error-prone. The BPM solution provided an exception management mechanism which requires minimal manual intervention. Whenever and wherever an exception occurs an alert message is sent to the employee as well as the concerned business manager. Different activities such as document validation, KYC verification, document re-scan, loan eligibility check, credit card limit, etc. are triggered automatically when an exception is raised. Parallel triggering of necessary activities helps resolve the exception and results in a faster exception resolution. Improved Customer Experience The mandated cropping is performed using the scanning tool. All customer signatures are cropped and archived separately with other necessary documents. The customer requests for credit card /home loan /personal loan are now processed

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BANK DHOFAR, SULTANATE OF OMAN automatically and the system ensures that the SLAs are maintained by giving automatic alerts or message to the users. The system automatically generates proposals for credit limit based on the rules and regulations of the bank. It sends automatic alert messages to the users once the credit limit or loan is approved, or rejected. The BPM platform supports auto-processing of e-Alerts, SMS alerts, customer queries, and other banking requests. Secure Banking Process to Prevent Fraudulent Activities The BPM solution automatically performs a blacklist check at the time of data entry and prompts users if the customer is blacklisted. The solution is seamlessly integrated with the credit scoring and KYC process to prevent forgery and fraudulent activities. Customer signatures are cropped and archived separately for future reference and online signature verification. 5.1 Cost Savings / Time Reductions Area Process Cycle Times / Customer Satisfaction

Benefits

Measure

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Faster Customer On-boarding Quick Customer Service Delivery

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Faster change management adaptability Lower time for new process roll-out

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Reduction from months to weeks / weeks to days

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SLA Adherence within departments

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Increased to 99%

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Customers audit-ability and adherence to regulations and compliance

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Increased to 100%

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Productivity

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Increase by 80%

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First Time Right

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Increase by 90%

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Process TAT

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Increase by 80%

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Resource Reduction; Reduced operational expenses

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Reduced by 50%

 

Agility & Responsiveness

Compliance & Quality

Operational Efficiencies Costs





Reduction of process TATs by 80% Improved Customer Satisfaction

5.2 Increased Revenues The implementation resulted in faster loan disbursals, allowing the bank to grow lending revenues and sustain profitability. 5.3 Quality Improvements  Better process monitoring and tracking  Better and more informed credit decisions  Improved customer service levels  Elimination of errors due to manual processing of applications  100% process visibility

5. BEST PRACTICES, LEARNING POINTS AND PITFALLS 6.1 Best Practices and Learning Points  Ensure representation from all relevant departments during process study and planning, including the bank’s IT department

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BANK DHOFAR, SULTANATE OF OMAN    

Integration requirements should be kept in mind during initial planning phase Use prototype approach to finalize specifications Involve business users in the process design phase not just management Follow a methodology to keep track of interim process change requests

6.2 Pitfalls 

Attempt to establish perfect specification of a process without prototyping

6. COMPETITIVE ADVANTAGES   

By implementing the solution, the bank provided a competitive advantage to its sales force allowing them to focus on customer facing revenue generating activities Ability to scale-up of operations facilitated the bank’s horizontal as well as vertical growth plans Enhanced process visibility, monitoring, and real-time tracking of applications ensured improved “First time Right” rates

7. TECHNOLOGY The solution comprised of a robust Business Process Management platform, an Enterprise Content Management platform, and a Distributed Scanning Engine. The BPM platform enabled end-to-end automation of the key processes, while ensuring real-time process monitoring and tracking. The Scanning tool enabled multi-channel distributed capture, to facilitate process initiation at branches and further processing at the Central back-office. The ECM platform helped in electronic archival, retrieval, and movement of documents, eliminating manual-handoffs, speeding-up the process, and eliminating human errors. The design of the Loan Origination System process is based on the Pro-Agile Approach. It is a blend of both prototyping and agile methodology. It makes early visibility of functionality in less number of iterations without any scope creep.

8. THE TECHNOLOGY AND SERVICE PROVIDERS Primary Vendor: Newgen Software Technologies Limited Trademarked Products from Newgen’s Portfolio: OmniDocs™, OmniFlow™, and OmniScan™

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CNP Asfalistiki Ltd., Cyprus Finalist, Europe Nominated by Newgen Software Technologies 1. EXECUTIVE SUMMARY / ABSTRACT CNP Asfalistiki Ltd has the largest market share of General Business within the Cyprus Insurance Industry and has branches all over Cyprus. The CNP Asfalistiki Ltd., Company was incorporated in 1981 as a subsidiary of Cyprus Popular Bank Public Co Ltd (CNP Asfalistiki Ltd Bank). Since January 2009 there has been a Strategic Partnership’ between Cyprus Popular Bank Public Co Ltd (CNP Asfalistiki Ltd Bank) and the French Insurance Group CNP Assurance. The strategic partnership aims to consolidate its leading position in the Cyprus Insurance Market and to further improve the quality of services, utilizing the dynamics and experience of CNP Assurances. An important factor in the success of the CNP Asfalistiki Ltd Insurance Company is the constant effort of the company to adopt the possibilities offered by modern technology and professionalism, education, knowledge of the staff and the excellent services it provides in conjunction with a wide network of partners-dealers across all cities in Cyprus. CNP Asfalistiki Ltd implemented Newgen’s BPM solution for claim system. The existing physical filing system was slow and it was very difficult to track the cases. The company wanted to centralize all its business operations to gain economies of scale. It also wanted to launch leaner branches for faster scalability and at the same time be able to monitor, measure and control its businesses across geographies from a single centralized location. The company opted for a comprehensive BPM and ECM solution platform for their Claim Process, Assessment Process and Follow up Process. The solution resulted in quick benefits such as:  Vertical and horizontal business growth  Flexibility to change business processes as per market requirements  Easy audit and tracking  Minimal manual intervention ensured “First Time Right” for all the operations  Faster process cycle time  Ability to create and maintain claims in bulk  Process and performance metrics for process visibility  Improved customer interactions resulted in higher customer satisfaction  Reduced operational costs  Real-time exception handling facility between the branch offices and the Central office like invalid documents, documents not attached etc.

2. OVERVIEW CNP Asfalistiki Ltd has its business interests spread across Cyprus and has multiple branches or Agents. All these agents were controlled from the local or central offices. Even identical processes across multiple branches were not connected or linked. All the processes were running in the branch offices and this was proving

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CNP ASFALISTIKI LTD., CYPRUS to be a hindrance to the company’s scalability goals. Only linear growth was possible (more headcounts for more business) for the company which meant more operational cost and marginal benefits. The service lines of the firm included Individuals & Businesses. They offered services like: Motor Insurance, Property, Liability, Marine Insurance, Health and Accident Insurance. In general, they offer all non-life range of insurances. Project Requirement CNP Asfalistiki Ltd wanted to centralize all their business operations to gain economies of scale. Through centralized business operations, the company wanted to get leaner branches for faster scalability and at the same time be able to monitor, measure and control its businesses across geographies from the same centralized location. Since the company had a common branding standard, they wanted to standardize all their business operations that ran across their 5 branches. The company has been using the core solution AS400 for all of their Lines of Business (LOBs). In order to make any changes in the business processes, a lot of change was required in the core system which also meant a lot of customization, coding and hence a lot of process downtime. CNP Asfalistiki Ltd was looking for a solution that would work as a layer on the core AS400 system and help them to make changes in the business process with no or minimal process downtime. Challenges The company had an aggressive expansion plan. But they were facing operational and IT hindrances which were preventing them from achieving their targets. Some of the key business concerns and challenges were as follows:  Lack of process visibility for measuring and monitoring  Inability to incorporate quick changes in the process as per changing market scenario  Physical document storage, tracking and management  All the critical insurance processes and systems worked in silos  Higher process cycle time due to manual processing of tasks  Customer satisfaction not up to the Company’s expectations  Standardization of processes  Manual handling of claims, underwriting documents The Solution To overcome these challenges, the company opted for Newgen’s solution. Newgen proposed its comprehensive BPM & ECM solution platform for their Claim Process, Assessment Process and Renewal Notice Process. The solution solved the business concerns of the company and proved to be a game changer as it ensured that all business operations and processes were rolled out from the head office. The solution brought together all the processes and external business systems which were related with each other but were working on silos. Digitization of documents made it possible to take important business decisions on electronic documents as documents were now available anytime-anywhere on the web. The BPM tool OmniFlowTM defined the workflow and the electronic document flow for every process. The electronic documents were archived in a centralized repository of OmniDocsTM and they were made accessible to the users as per the access rights given to them. The solution was designed as per the strategic initiative taken by the company. All the customer requests and works are now processed in the central office resulting in leaner branch offices. The branch offices capture the customer document and some of the key customer information by using Newgen’s distributed scanning tool OmniScanTM. After the initial check and Rescueline Feedback, the customer

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CNP ASFALISTIKI LTD., CYPRUS requests for claim processing are sent to the central office for further processing. This has effectively made the branch offices more efficient and customer-centric. Benefits The Newgen solution proved to be a shot-in-the-arm for the client. Earlier there was no electronic mechanism for handling claims and underwriting all the documents. As all the claims and documents resources were stored in their physical forms, making it very difficult and time consuming to store, retrieve and archive. The following benefits were accrued by the client:  Helped in achieving vertical and horizontal business growth  Flexibility to change business processes as per market requirements  Easy audit and tracking  Minimal manual intervention ensured “First Time Right” for all the operations  Faster process cycle time  Ability to create and maintain claims in bulk (up to 3000 claims can be created at a time) aligns with the company’s strategy of rapid market share ascendancy.  Process and performance metrics for process visibility  Improved customer interactions have resulted in higher customer satisfaction  Reduced operational costs  Real-time exception handling facility between the branch offices and the Central office for invalid documents, documents not attached etc.

3. BUSINESS CONTEXT The company was in pursuit of expanding its business both vertically and horizontally. The company wanted a solution to automate its branches and at the same time provide more products and services to its customers. They had an ambitious strategy of developing a common document processing Centre in Nicosia for all its branches. The company realized that to achieve all these objectives it needed a solution platform that would not only bring complete automation and process visibility but also ensure adherence to regulatory compliance, continuous process improvement and improved quality of customer services. Some of the key business problems for the company were:  Unable to streamline claim processing due to manual activities  All the processes were running in silos and hence there was an absence of standardization  Manual processing of all the customer requests was received via multiple channels  Manual hand-offs of document made it difficult to track and manage the right versions of the document  Managing all the physical documents and tracking of the same was a tedious and time consuming process  Managing customer communications via multiple channels  Various business processes worked independently and it resulted in data duplication and rework  Escalation and exception management process was manual and error prone  Tracking and audit facility was not comprehensive  Usage of physical documents across departments and branches led to higher operational costs and higher process cycle times

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CNP ASFALISTIKI LTD., CYPRUS 

The core system worked in silos

4. THE KEY INNOVATIONS The solution Newgen provided was built upon some innovative features and capabilities. Some of those out of the box features were:  Integrated 2 processes to work in parallel and share data- A new concept of integrated processing was introduced which was then enhanced to include parallel processing. The integration of two processes o Claims process and Assessment process led to the company achieving higher levels of process efficiency.  Integrated SMS with BPM – SMS integration helped the client to get closer to their customers and agents and provide better customer satisfaction.  Dynamic work routing based on the job type and its severity. Right person or the right group of people with relevant experience are assigned to specific tasks  Automatic de-dupe check to make the business data consistent and nonredundant  New Claim process structure was designed and implemented as per the process standardization  Design and implementation of best of breed IT network that connected customers, employees and other third parties. The network made all the necessary documents available from anytime-anywhere ensuring faster & simpler operations 4.1 Business The business benefits, accrued to the company, came from the changes brought by the BPM solution. It altered the way they approached and executed their strategies, structured their processes and enabled real-time tracking and monitoring. The implementation of Newgen’s BPM and ECM based solution leveraged the existing core application and resulted in efficient and speedy resolution of claims, enhanced document management and enabled seamless integration between the workflow solution, core insurance solution and other functional areas. 4.2 Process Pre-Implementation scenario: Prior to implementation, the Claim process, Assessment Process and Renewal Notice Process at CNP Asfalistiki Ltd were time consuming and required extensive manual intervention at various steps. Since the AS400 System and other systems were working independently; the process required multiple data entry which led to data redundancy. The manual intervention led to a slew of human errors which were difficult to trace and track. The process involved moving physical documents from one department to the other and many times from one branch to the other branches. Maintaining and tracking of all the physical documents was a major challenge. The company also suffered from a high level of dependency on third parties for data and claim credibility checking. Because the cropping and uploading of the document in the AS400 system was done manually, it was very difficult to track all the customer requests timely meeting the Internal set Service level Agreements (SLA’s). The branch offices were responsible for the processing of Claim Requests or any Customer Servicing Requests and therefore were overloaded with various day to day processing tasks. This meant that the branches were spending more time on resolving customer issues and less 135

CNP ASFALISTIKI LTD., CYPRUS time on revenue generation and value-added activities. Claim process - Post-Implementation scenario: The solution significantly reduced the number of steps required for Claim Process. The centralization of Claim processes made the branch offices leaner as they no longer needed to focus on processing tasks. They were required only to capture the customer documents and some key information about the claim. The distributed scanning tool digitized the physical documents and after verification sent across the documents to the central office for further processing. Thus the branch office needed only a scanning tool for their day to day operations. Post implementation of the solution, the branch offices began focusing on customers. The Turn-Around-Time (TAT) for customer interactions significantly reduced as they had to capture only some basic information from customers. This resulted in improvements in productivity and efficiency of employees with reduction in non – core activities, allowing branch executives to cross-sell other products. The implementation also resulted in improved customer satisfaction through quicker and better servicing, reduction in the requirement of physical forms and reduced customer response time. Solution Highlights:  Installed an automation system that automatically moved single pieces of work across various disjointed base systems so as to improve efficiency and provide a way to match operating capacity with employees  The solution provided visibility to employees for all work pertaining to a process. It helped in streamlining their activities in an efficient way.  Ensured easy access from desktops to all documents and processing status of the case. The previous actions taken were easily traceable from the extensive audit trails.  Best-in-class operations and productivity standards were established through analysis of time and motion data coming out of the workflow databases rather than using traditional averages that could be skewed by idle time, low skilled staff and poor practices

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2) Assessment Process - Post-Implementation scenario: Key highlights of the Assessment Process after implementing the BPM suite:  The operations are now centralized with a single Central Processing  Centre and it requires minimal manual intervention  Reduction in Process Cycle Time  Assessment process is done through a single interface i.e. OmniFlowTM , thus streamlining the entire process  Automatic e-mails are sent to different departments for Request Processing  Customer Request Management and tracking is easier  Automatic archival of customer documents in Central Repository, which can be used across products.  Reduced Process Cycle Time 3) Renewal Notice Process Key highlights of the Renewal Notice Process after implementing the BPM suite:  The Process was designed to improve Customer Satisfaction  Better Utilization of Resources  Automatic Fax or Emails are sent to Customers for the renewal of the policy or any changes as required by the Customers in their policy

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Service Oriented Architecture Framework The BPM solution was built on a strong SOA architecture which has the following capabilities:  OmniFlow has the capability of invoking any SOAP Compliant Web Service using Integration Step using Web services:  Integration workstep can be configured as ‘Web Service’ to invoke the methods of the remotely deployed Web services.  Both Synchronous and Asynchronous modes of invocation are supported  Connection through a proxy server can also be configured for calling to external web-methods.  Process Variables and Web-Method Parameters mapping need to be defined at the Integration work step  Different ways through which OmniFlow™ can communicate with the AS400 System  Invoking of web services from java based front end NGForm component of OmniFlow™.

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CNP ASFALISTIKI LTD., CYPRUS  

Using the Integration workstep feature of OmniFlow™ for invoking the required web services through its Web service invoker utility program. Java based auto utility program for executing the required user functionalities.

5. ORGANIZATION In the post implementation scenario, the centralization of the claim processes made the branch offices leaner as they had no longer needed to perform processing tasks. Post implementation, they are only required to capture the customer documents and some key information about the claim. The implementation has enhanced the efficiency of the employees, simplified their tasks and improved user friendliness.

6. HURDLES OVERCOME Following are the hurdles faced during the project:  Employees’ resistance towards the change: change in any organization is always difficult to manage.  On-time business resources availability  Third party coordination  Integration calls not on time  Change information not percolated to the lowest level  Cultural issues  ownership of the infrastructure belonged to the CNP Asfalistiki Ltd Bank  adhere to regulations set by the infrastructure provider  Many users feared the loss of jobs

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CNP ASFALISTIKI LTD., CYPRUS 7. BENEFITS Category

Pre- Implementation Scenario

Post- ImpleRemarks mentation Scenario

Compliance and Quality

65%

99%

• Each claim through BPM is audited by a checker • BPM also ensures that cases without proper documentation are tracked and completed. • Inbuilt Controls in BPM process prevent wrong data from being entered during the Claim Process.

Cost Saving by reduction in effort

Euro (-) 50 K /yr

• BPM has significantly improved resource utilization. • Expiry Report, Management Report etc are manually generated.

Document Handling

Euro(-)18K/yr Mandatory checklist & seamless integration with AS400 for endto-end automation.

-

6.2 Time Reductions Reduced time-to-market, cycle time etc. Process Claim Process

Pre-Implementation: Avg TAT 1 month

Post-Implementation: Avg. TAT 1 week

First Time Right (FTR)

65%

95%

6.3 Increased Revenues The process has been running for 3 months now. We expect more than 250% of ROI by the end of the year. As of now, the result is satisfactory. 6.4 Productivity Improvements  Processing capacity increased by over 80%  Completing the process first time right (FRT), improved by 95%.  Adherence to SLAs improved by 95%

8. BEST PRACTICES, LEARNING POINTS AND PITFALLS 8.1 Best Practices and Learning Points  Implementation carried out by both parties: CNP Asfalistiki Ltd and Newgen  Good relationship and teamwork between both parties ensures smooth execution of tasks, excellent collaboration and less conflict  Project implementation on time with good customer feedback because of good PMP practices 8.2 Pitfalls  User acceptance test should be done in parallel. It saves the implementation time and requires less iterations for modifications and easy change management  High level integrations should be done at the very last stage of the project

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CNP ASFALISTIKI LTD., CYPRUS 9. COMPETITIVE ADVANTAGES By implementing the solution, the company has provided a competitive advantage to its sales force as they are now equipped with more time and facilities to interact with more customers in a day.  Scaling up of operational activities has enabled the client to keep pace with business growth and demands  Compliance and audit with easy KYC process adjoined with the claim process  Enabled real-time movement of processing documents from all the branches to the central processing facility through OmniDocs™, while the workflow has enforced the process checks before the work item leaves the branch to ensure that it is processed “First time Right”.  Expanding the scope of the process to well beyond the Claim Process and that too in a span of only a few months has resulted in it being embedded into the organization’s “New” approach to working

10. TECHNOLOGY The solution was built on Newgen’s BPM tool- OmniFlow™, Underlying Document Management system- OmniDocs™ and distributed scanning tool- OmniScan™

11. THE TECHNOLOGY AND SERVICE PROVIDERS Primary Vendor: Newgen Software Technologies Limited.

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Colpensiones, Colombia Gold Award, South and Central America Nominated by Bizagi 1. EXECUTIVE SUMMARY Since 2007, as part of the reform of the Colombian social security system, the government has been working on the modernization and improvement in efficiency and service of the pension system. This was previously under the management of an entity with innumerable problems of information management, quality of service, out dated technologies and slow processes. The national government, therefore, took the decision to close the old pension system, known as the "Instituto de Seguros Sociales" (ISS) and create a new entity called Colpensiones, which would have efficient and secure information systems to improve user experience and become a financially viable entity. The challenge is huge, in record time, we have to take over the monthly payment of nearly one million pensioners and administer the contributions of 6.4 million affiliated workers, reliably, quickly and efficiently through agile and efficient process management Therefore, Colpensiones decided to implement a BPM project among the solutions used by the organization to achieve its goals. The project enables us to automate more than 115 business processes in the first stage and 200 at a second stage to support more than 800,000 cases and 4,000,000 transactions per month. It also enabled the reduction of costs, minimization of reprocessing and possible delays. This was achieved by generating alerts and providing standardized reports to strengthen the control of progress and facilitate timely decision making, not only to manage the direct attention to users but also for the senior management of Colpensiones.

2. OVERVIEW COLPENSIONES is an entity controlled by the state whose objective is to manage the Colombian pension system. The entity emerged as a mean to improve the services provided to its members, contributors and the general public and to solve problems arising from mishandling of information that led to a financial burden on the national budget. To respond to these requirements, a strategy was proposed based on the standardization of processes, business rules and procedures for the recognition and payment of cash benefits to members who are in the process of receiving or about to apply for benefit. This strategy supports the unification of information, the cleanup and reconciliation of job history data, the use of technologies for digitizing and transportation of documents, thus achieving the transparency and reliability in the relationship between pensioners and the management undertaken by Colpensiones. Among the results of the proposed strategy are the centralization of the decisionmaking process for senior management of Colpensiones, the management and control of business procedures and legal proceedings. Similarly it is expected to achieve integration of databases in parallel with continuing the clean-up and reconciliation of information, as well as the automation of all

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COLPENSIONES, COLOMBIA business processes, standardization of procedures for each application and the establishment of service level agreements. The aim of this is to progress customer requirements and especially the requests for recognition, not only to reduce the processing times but also to reduce the claims and legal demands for non-acceptance, incorrect settlements or retroactive payments due to the delayed approval process.

3. BUSINESS CONTEXT Before the transition to Colpensiones, the ISS had 60 databases which contained the job histories of its members, most of which were not digitized but filed manually. It was also faced with 84,000 lawsuits and nearly 100,000 complaints, resulting in high costs, demands and deficiency in the service. With the operating and management model of Colpensiones, supported by business solutions oriented towards BPM, it seeks to:  Offer services focused on attention to customers and the general public, based on transparency and visibility of all activities of the entity.  Give timely responses and commitment to established procedures.  Obtain financial results to facilitate fiscal sustainability of the system in the long-.  Supervision and control to ensure the delivery of a quality service, measured by indicators of efficiency and profitability.  Educate the community in understanding the attributes of the pension system, their rights, duties and in particular, to generate an awareness of savings to ensure their quality of life in the future.  Generate a savings mechanism that allows more than 9 million Colombians of low socioeconomic levels to have access to the financial benefits,  Cost reduction and efficiency through centralized processes that are monitored and controlled, measured by indicators of efficiency and profitability. Timely resolution of applications from the general public for the recognition of the economic benefits for disability, old age, death, restitution of contributions and funeral expenses, subject to verification of the established requirements of current regulations.

4. KEY INNOVATIONS 4.1 Business Automation of the support and business processes of the project substantially improved the communication and speed in carrying out procedures and processes. For Colpensiones, the impact on the project is reflected in the integration and centralization of information, representing a substantial reduction in the time and cost of the operation and a decrease in the amount of resources required to carry out the processes. The impact of the project for contributors and beneficiaries is reflected in the fact that their procedures that is carried out in less time, having their job history information up to date, which is evident in timely responses, less reprocessing and better service. The benefits for the entity and the internal and external users are evident with the support of the BPM solution and can be summarized as follows:  Services focused on attention to the customer and the general public with timely responses based on established procedures.

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COLPENSIONES, COLOMBIA 

Supervision and control to ensure service delivery and fiscal sustainability of the pension system in the long term  Service levels measured by indicators of efficiency and profitability.  Timely responses to applications for recognition of the economic benefits of pensioners after verification of compliance with requirements established in the standards.  Cost reduction and efficiency through centralized processes that are monitored and controlled and measured by indicators of efficiency and profitability. 4.2 Process

5. ORGANIZATION At the organizational level, the most important innovations are the automation of business processes as operational support and the standardization of business rules. In addition, the determination of levels of service and the ability to have timely information to achieve levels of efficiency and to facilitate decision-making based on accurate and timely information, supported by management and efficiency indicators. At this level, in an unprecedented implementation, Colpensiones is automating 115 processes at the first stage and 200 in the second marking a milestone in BPM at an organization. These benefits are obtained from processes that relate to service to the general public, such as: 1. Affiliations and Transfers 2. Income and Expenditure 3. Occupational health / disabilities 4. Payroll, financial benefits among others.

6. HURDLES OVERCOME Major obstacles were presented at the time of the definition and standardization of processes due to the number and diversity of areas and stakeholders involved. Additionally, it was based on a completely new design of the operating, administrative and technological entity in an environment where it was normal to have inefficiencies, delays and excessive costs. The solution addressed these problems and those of the transition from the existing pension schemes. These which were made gradually by implementing the BPM solution at different stages. There were several challenges, relating to the process that it was necessary to overcome, these included:  The lack of standardization of processes  Unavailability of technologies for digitizing and transportation of documents.  Minimal automation of the main processes.  The dispersed pension information

7. BENEFITS 7.1 Savings The implemented solution generate an important reduction in operating costs reflected in the number of staff required for the operation, falling from 3.000 to 1.300, the reduction in manual activities and the use of physical resources

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COLPENSIONES, COLOMBIA 7.2 Reduced time frames A reduction in the time frames of the processes and sub processes are evident following the transition of the pension systems, whereby deficiencies in customer service and the lack of centralized information generated constant delays. The effective integration of the BPM solution and the coordination between the areas and employees has resulted in agility and considerable reductions in time in carrying out the new processes. 7.3 Increased revenue The implementation carried out in the entity is not intended to increase revenue. It is motivated more on the side of centralization of information, streamlined processes, improved service level indicators and reduction in costs for reprocessing and legal actions. Therefore, revenue as a topic is not taken into account as a measurement of success. 7.4 Productivity improvements Improvements in productivity go hand in hand with the objectives to be met, such as reducing service times, centralization of information, eliminating reprocessing, recognition of pensions and a decrease in the charges to the national budget.

8. BEST PRACTICES AND LEARNING POINTS Best practices 

Involvement of the majority of the organization from the senior management down



Project developed in phases

 Fast implementation according to the requirements of the company. Things to avoid 

Avoid hurried and time restrictive practices

9. COMPETITIVE ADVANTAGES The key competitive advantage is service. The implementation of the BPM solution in Colpensiones has generated speed, agility and quality of service, aspects never before seen in the pension system. A new era has begun with a renovated institution, which will continue to fulfil the functions of the old ISS. It is expected to be more efficient and profitable. Procedures for pensioners and members remain unchanged; on the contrary, the expectation is for improvements in service level indicators.

10. TECHNOLOGY 10.1 Infrastructure BizAgi BPM Suite:  BPMN Engine  BAM and analysers  Data and Content Management  Security and Organization  Business Rules Engine  Integration Layer  Workload Management  Business Events  Cache Management

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COLPENSIONES, COLOMBIA 10.2 Service suppliers Colpensiones selected Bizagi BPM (http://www.bizagi.com) for the implementation of their first BPM initiative. Bizagi is a leading BPM solution capable of empowering businesses of all types and industries around the world, providing them with unprecedented adaptability to changing business and market conditions through optimal business process automation (execution) and continuous improvement.  Visibility and Control  Alerts and notifications  Performance analysis and reporting  Audit and traceability  Quality  Mobility  Sturdiness  Integration Corporate features (multi-tenancy, BPMN process engine, durable transactions, enterprise data model, etc.)

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Crawford & Company, United States Nominated by Appian Corporation, United States 1. EXECUTIVE SUMMARY / ABSTRACT With 700 offices in more than 70 countries, Crawford & Company provides claims management services used by the largest insurance providers in the world. A core part of Crawford's business is Global Disaster Response for incidents such as hurricanes in the U.S or tsunamis in Japan. Crawford must deploy small armies of claims adjusters to the world's most devastated regions so life – and business – can begin to return to normal in the quickest time possible. These adjusters are not Crawford employees, they are contractors who are un-schooled in Crawford business processes. Using a modern work platform, Crawford built a series of Business Process Management (BPM)-based mobile and social business applications to streamline the management and execution of Case Management across all catastrophe-related resources and claims, from the assignment of insurance adjusters to the management of claims and final claim resolution. Applications include Claim Portal, Global Claim Intake, Claim Assignment & Scheduling (CAT Connection), Contractor Extranet (repairStream), Automated Claim Report Review/Approval, GTS Large Loss Management, Customer Billing, Employee On-Boarding, and more, all via a single platform. Crawford calls this application set “Crawford Desktop + Mobile.” The integrated solutions optimize automation of rote Case activities, while providing the enterprise data access and easy collaboration needed to improve and accelerate the nonstructured aspects of Case Management. Using this modern BPM approach to Case Management, Crawford has achieved tangible business growth. On the front-end, claim uptake and initial processing has accelerated by as much as 80%. On the back-end, invoicing to Crawford’s major insurance carrier customers has accelerated by 70%. Crawford's legacy desktop system required 174 points of data entry per claim, while the new solution requires only 33 system touches per claim. This acceleration is crucial to Crawford’s competitive advantage. Major carriers choose Crawford as their claims outsourcer because of the speed with which Crawford can conduct business in devastated areas. In addition, the dramatic acceleration of invoicing speeds revenue by decreasing DSO (Days Sales Outstanding).

2. OVERVIEW Based in Atlanta, Georgia, Crawford & Company is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities. Major service lines include property and casualty claims management, integrated claims and medical management for workers' compensation, legal settlement administration, including class action and warranty inspections, and risk management information services. Appian was first introduced to Crawford during development efforts for repairNet, the company’s managed repair service in the U.K. The BPM Software solution, called repairStream, enabled a series of operational and financial process improvements that dramatically accelerated claims fulfillment and quality of work across

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CRAWFORD & COMPANY, UNITED STATES Crawford’s contractor network, ensuring that proper internal and customer reporting occurs at every stage. Based on that success, Crawford acquired a global Appian license across an 18 project roadmap. The next major initiative was the creation of “Crawford Desktop + Mobile,” a revolutionary set of applications combining BPM, enterprise data navigation, easy social collaboration and native mobility. The series of applications streamlines insurance claim Case Management across the spectrum of Crawford’s core business, from the assignment of insurance adjusters to the management of claims and final claim resolution. Crawford Desktop + Mobile includes the Catastrophe Unit Personnel Tracker (CAT PT) mobile application. CAT PT uses Geo-Location capabilities of adjusters’ mobile devices to allow Crawford to pinpoint the right adjuster to review a claim, based on location, capacity and a past performance scorecard. Adjusters then use the same mobile app to upload photos of a claim site, along with electronic claim forms directly from an iPad, iPhone, or Android device. The result is greater speed, participation and accuracy in Crawford’s core company mission. The next deployment, Customer Billing, removed friction and delay in the invoice process, while bringing Crawford’s carrier customers more deeply into the process for greater engagement and satisfaction. According to Brian Flynn, Crawford’s Global Chief Information Officer, “The Appian BPM Suite, with its mobile and social capabilities, has changed the way we work with our business partners and ultimately how we service our clients.”

3. BUSINESS CONTEXT Prior to the adoption of the innovative BPM Suite, Crawford managed all its global catastrophe response efforts through spreadsheets, phone calls, and manual note taking documentation. Crawford needed a faster way to get a hold of adjusters in disperse locations, deploy them to the correct sites, and allow them to initiate and upload claim cases. "The catastrophe team was using whiteboards to organize names and sticky notes to map who would go where to handle the claims. It was very chaotic," Flynn says. "As an IT team we said, 'Are you really doing this?' It was one of the deficiencies in IT. We don't get out as much as we should to see how things are working." In order to further its mission for stellar service, and to reduce cost and friction from the Repair Claims process, Crawford identified the need to re-vamp management systems of all repairs cases, including repair contractor selection, claims processing and reporting, and accounting and invoicing. Existing Lotus Notes systems lacked the efficiency, effective social collaboration, and analysis reporting required to improve overall performance and profitability. "An adjuster in the field doesn’t always have 10 to 15 minutes to fire up a laptop. We wanted to be flexible by developing something that would work across any smartphone or tablet, regardless of the platform—Android, iOS, whatever," Flynn says. Crawford realized that to continue to offer high quality customer service, improvements were needed to enhance the following:   

Claims management Claims Reporting internally and to the customer External Work Management controls

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CRAWFORD & COMPANY, UNITED STATES 4. THE KEY INNOVATIONS Mr. Flynn and his IT team decided a modern BPM platform could accelerate smarter decision-making and business action across all of its claim cases and subprocesses to improve business performance, increase customer satisfaction and enable continuous process improvement. Mr. Flynn believed BPM’s ability to support rapid delivery of new solutions integrating mobility, collaboration, enterprise data, and process management would allow Crawford IT to help shape new, more modern work patterns across the organization. After a rigorous vendor selection process, Mr. Flynn and his team selected Appian as Crawford’s global BPM and Case Management platform. Crawford IT wanted to be as self-sufficient as possible, so Flynn organized a global BPM Center of Excellence driven by corporate IT and Business leadership. The COE follows an Agile methodology of rapid, iterative release cycles across global regions, typically starting in the US and moving out. Leveraging the technology innovations integrated within the single platform has yielded dramatic business innovations for Crawford and Company. New modes of working have evolved that are fundamentally superior to the company’s previous work styles and processes. The initial claim uptake process is a prime example. Phone calls, spreadsheets and sticky notes have been eliminated. On-site adjusters no longer need to do duplicate work – initiating a claim on-site, then heading to an office to re-key claim forms, photos and other data. The new CAT Connection application uses device geo-location and historical adjuster profile information to pinpoint the closest and best adjuster for a given claim site. Crawford then sends the assignment to the identified adjuster, who accepts it using the CAT Connection Mobile app. Adjusters use the app to upload photos of a claim site, along with electronic claim forms directly from an iPad or iPhone device. Forms then go into claim processing, various stages of review and reporting, through final settlement, customer communication and invoicing – all a single platform. The system provides the process guidelines, data access and collaboration required for all stages of claims Case Management, intelligently enforcing policies and procedures so that even adjusters with no prior knowledge of Crawford business processes can work quickly and effectively. Snapshot of Crawford and Company Process Solutions: Crawford Desktop + Mobile:  mobile and social applications that streamlines all catastrophe-related resource management  Catastrophe Personnel Tracker (CAT PT)  Mobile claims assignment & scheduling w/Geo-Location  Allows creation of ad-hoc teams of adjusters during major catastrophes  Pinpoint the right adjuster based on location, capacity, past performance  Adjusters upload photos with forms via mobile device to accelerate claims  Tied to a virtual community for overall resource management repairStream: end-to-end claims fulfillment service Customer Billing: removes friction & moves customers into the process

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CRAWFORD & COMPANY, UNITED STATES

*Crawford claims management request form as it appears on mobile devices

5. HURDLES OVERCOME Crawford faced the common insurance industry pressures to modernize aging systems for great flexibility, mobility and social customer engagement, as well as the business process outsourcing pressures to reduce costs while delivering “personalized” processes to a global customer base. With an unpredictable need for a larger and dispersed workforce, Crawford needed a social solution—something that would allow them to onboard new employees

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CRAWFORD & COMPANY, UNITED STATES quickly and efficiently and also help them report on what they were seeing in the field during a disaster and stay in touch. While choosing a solution was easy, convincing his team—and the business—that this was the right decision, wasn't, according to Flynn. "This was very transformational for us—going from a waterfall to more agile development,” said Flynn. “We had to convince our employees that this was the best thing.” The business, too, had a difficult time grasping the project. "We thought this was something that they would have brought to us, and not us to them,” says Flynn. Technologists think differently than businesspeople, and that was a challenge. To get the business to believe in the project, Flynn says they reversed their approach and focused on helping them understand how their project matched their business and client needs.

6. BENEFITS In the areas of claims management to which the modern process solution has been applied, Crawford Desktop + Mobile has accelerated operations by as much as 80 percent. Legacy systems required 174 points of data entry per claim. The replacement solution requires only 33 system touches per claim. Crawford has also seen an acceleration of 70 percent in invoicing speed over its previous paper-based bill review process. For claims handled under Crawford’s old systems, the average time from claim site visit to when the client received a claim report was greater than 2 hours. With a modern work platform, that time has shrunk to an average of 43 minutes. Crawford clients are ecstatic about these accelerated service level. The business impact of smarter, faster decisions and actions was seen during the record-setting 2013 Canadian floods, during which Crawford was able to: • Rapidly deploy 350 adjusters to specific sites in the affected region • Handle 7,000 thousands claims from individuals • Allow 60 carrier customers to begin processing those claims in only 6 weeks For Hurricane Sandy in Jamaica, the Bahamas and the U.S., Crawford: • Deployed more than 560 adjusters in the field • Took over 44,000 calls • Managed more than 48,000 claims

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS Best Practice/Lessons Learned:  Modernize architecture and software to minimize Catastrophe unit risk from extended downtime periods  Utilize development tools that are well represented within the IT community in order to reduce delays in production support and enhancement  Develop a mobile first strategy for business that requires workers to be able to work from anywhere at anytime Pitfalls to Avoid:  Don’t fall into the trap of legacy IT systems; Embrace modern platforms that include mobile and social capabilities for workflow processing

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Avoid deploying one application at a time to improve process efficiency; Focus efforts that involve deploying a platform to address multiple process enhancements that is flexible to take on future challenges Modern business applications must include a mobile strategy; Without a mobile platform, an application is a legacy system from the moment it is rolled out to market

8. COMPETITIVE ADVANTAGES Appian continues to support and enable a series of operational and financial process changes at Crawford, as well as assisting in the interaction between all contractors, repairNet and Crawford UK. The result is that Crawford is changing how the insurance industry reacts to major crisis – allowing the industry to more quickly and accurately process the individual and business claim cases that must be resolved for life to return to normal.

9. TECHNOLOGY Crawford used the Appian BPM Suite to build the Crawford Desktop + Mobile, leveraging desktop, mobile and social business process applications with enterprise data access. This modern application platform helps drive better business decisions, actions and results. All the data, all the processes, all the documents and all the collaborations – in one environment, on any device, through a simple social interface. In particular, Crawford relied heavily on mobile BPM capabilities to improve existing processes and design modern applications for claims adjusters to do real work in any location. Native mobile applications allow for work to be done on the go and collaboration to take place via any leading mobile device. The Crawford Desktop + Mobile can be utilized on all modern mobile device platforms with a web browser for 24/7 access. The innovative work platform uniquely ties social business directly to the core enterprise systems on which Crawford’s business is run. The platform offers real business value by integrating social collaboration and native mobile apps with the processes and data that drive the business. It delivers a new, highly transparent and collaborative style of work that results in productivity and better decision-making while creating a more informed and engaged workforce. “The Appian BPM Suite, with its mobile and social capabilities, is truly an enabler that has changed the way we work with our partners, and how we service our clients.” -- Brian Flynn, Global CIO, Crawford & Company

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*Crawford Desktop application in Appian portal view

10. THE TECHNOLOGY AND SERVICE PROVIDERS As the market leader in modern BPM software, Appian delivers a Work Platform that unites users with all their data, processes, and collaborations – in one environment, on any mobile device, through a simple social interface. Appian’s Business Process Management (BPM) Suite seamlessly integrates work automation with native mobile and social capabilities. Appian is available on-premise and in the cloud, with complete portability. More than 3.5 million users, from Fortune 100 companies to the mid-market and small businesses worldwide, trust Appian to power their critical business processes. For more information, visit www.appian.com.

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Delta Lloyd, the Netherlands Nominated by You-Get, the Netherlands EXECUTIVE SUMMARY / ABSTRACT Delta Lloyd Group is an expert, reliable and accessible financial services provider. We have a single goal: to offer security to our customers, now and in the future. We operate under three strong brands: Delta Lloyd, OHRA and ABN AMRO Insurance. Our product and service offering covers the areas of insurance, pensions, investing and banking. And we do not only service consumers, but small and large companies, multinationals and pension funds as well. Reputation At Delta Lloyd Group, commercial success starts with sound entrepreneurship and integrity, financial solidity, a strong focus on long-term objectives and advanced risk management. In this way, we protect our good reputation and receive the trust of our customers. We aim to be transparent and ethical in all our activities, to take account of all dimensions of sustainable development and to make a responsible assessment, taking account of the interests of all stakeholders. About Delta Lloyd NV Delta Lloyd has been a trusted partner for insurance, pensions, investing and banking since 1807. It is our goal to offer financial security, now and in the future. We deliver clear, reliable and contemporary products and services that meet our customers' needs and create value for them, our shareholders and our employees. Our primary markets are the Netherlands and Belgium. In the Netherlands, we operate under the Delta Lloyd, OHRA and ABN AMRO Verzekeringen brands, while in Belgium we use the Delta Lloyd brand. We employ 5,135 permanent staff, of which 3,833 in the Netherlands, 1,115 in Belgium and 187 in Germany. In 2013, we achieved a premium income of € 4.7 billion and a net operational result of € 430 million. Our shareholders' funds amount to € 2.6 billion and we manage investments worth € 78 billion. Delta Lloyd is listed on Euronext Amsterdam and Brussels, and included in the AEX and Bel-20 indices. Over the past years a number of digitization initiatives have been started within ABN AMRO Verzekeringen (part of Delta Lloyd Group). To gain greater control of these initiatives, it has been decided to combine them in a program entitled “Digitaal Verzekeren” (Digital Insurance). By managing the digitization initiatives as a coherent program, potential inconsistencies have been largely prevented. In addition, process optimization, operational excellence, output management, time and location-independent working (as well as cost reduction) support the goals and targets of the program. In order to fulfill the strategic goals, Delta Lloyd implemented a Business Process Management (BPM). You-Get was selected as the implementation partner. Results: Private Persons – General Insurance Claims and Document Management processes of ABN AMRO Verzekeringen entered production successfully in early 2014. Costs savings and reduced throughput time, although not primary goals, are a positive indirect consequence:  100 percent paperless working; files and dossiers can no longer get lost.

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When the Go-Live of the A&B (Underwriting & Support) and SSC (Shared Services Center) departments have been completed, a total of 160,000 cases will be processed digitally (previously postal mail documents). This concerns approximately 50 FTEs in total; Reduction of four FTEs out of 80 (five percent); because of digitization and process management, the roles of mail delivery to the proper department, as well as workload balancer, have become obsolete after the first go-live and this reduction will grow in subsequent go-lives; Processing a claim treatment (filling out the first-time-fix form) at the shared services center has been reduced by 75 percent (from 2 minutes to 30 seconds); Time-independent working; this concerns over 50 FTEs in total; Location-independent working; this concerns over 50 FTEs in total.

1. OVERVIEW The Challenge Delta Lloyd is a financial service provider that offers products and services in the life insurance, general insurance and asset management markets, as well as banking products and services. Delta Lloyd offers its customers greater assurance by helping them look more critically at their financials. The core markets of Delta Lloyd Group are the Netherlands and Belgium. In the Netherlands it is operated mainly under the Delta Lloyd, OHRA and ABN AMRO Verzekeringen brands, and in Belgium under the Delta Lloyd brand. Delta Lloyd Group has over 5,300 employees and is traded on the NYSE Euronext stock exchange in Amsterdam and Brussels. ABN AMRO Verzekeringen is a joint venture between Delta Lloyd (51 percent) and ABN AMRO Bank (49 percent). Information is essential for Delta Lloyd. It is the fuel as well as the result of the business processes. The world of information is changing and developing rapidly, however. From a paper-dominated world we are seeing a progressive shift towards a digital world in which new means of communication and information-sharing make it possible to work independently of time and place. Delta Lloyd workplaces will become places at which the proper and necessary information is always available, regardless of time and place. Delta Lloyd therefore had the requirement to meet the strategic wish and the need to implement digitization in a structured way. The company increasingly operates digitally: customers, society, ABN AMRO Bank as well as the employees require a service provider and organization that can accompany these developments. The approach In order to fulfill the strategic goals, Delta Lloyd decided to implement Business Process Management (BPM). BPM excels as a management philosophy in providing extensive change management in business processes, leading to continuous improvement. BPM is intended to provide a secure and location-independent workplace, as well as offering improved communication, thus raising customer satisfaction. The efficiency and reliability of the operations processes can also be raised. The IBM BPM (BPMS) software solution enables the improved processes to be automated. Step 1 - Process Awareness The first step taken by Delta Lloyd is the creation of process awareness (inter-departmental). The business has explored and documented the current processes

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DELTA LLOYD, THE NETHERLANDS jointly with both internal and external consultants. No changes to the organization have yet been executed. In parallel with this activity the consultants have set up a process architecture jointly with the architects. The process awareness has been continuously put on the agenda by both management as well as the business. Step 2 – Search for the right BPMS In 2012 ABN AMRO Verzekeringen conducted a successful Proof of Concept with a BPM Suite for process management. The IT staff of Delta Lloyd stated that this scenario could potentially lead to a Delta Lloyd-wide implementation. Because Delta Lloyd (Life) already used IBM Websphere Process Server (WPS) as an STP integration platform, platform integration was specified as a precondition for the final selection of a BPM Suite as the process management platform. The technical feasibility of the integration possibilities between the BPM Suite and IBM WPS were investigated and proven. A technical design was set up to determine the costs of the scenario, and to make a global comparison with the IBM solution. A task force was set up with technology architects from both Delta Lloyd and ABN AMRO Verzekeringen to investigate the different scenarios. Finally, IBM BPM Suite was compared with the originally selected BPM Suite on the basis of criteria such as functionality, integration, support of the development and maintenance process and infrastructure. The conclusions of the investigation were: 1. Both BPM Suites are functionally capable of supporting the business of Delta Lloyd; 2. From a technical integration perspective IBM BPM is preferable; 3. From a development and support perspective IBM BPM is preferable; 4. From an availability and scalability perspective IBM BPM is preferable; 5. From a security and integration with web / mobile environments perspective IBM BPM is preferable. Step 3 – Search for the right BPMS implementation partner In early June 2013 Delta Lloyd issued an RfP to select the right implementation partner for IBM BPM. The potential implementation partners were qualified on a number of criteria, such as knowledge and experience with BPM and IBM BPM, scoping, references, implementation approach, securing and transferring knowledge, willingness to take risks and responsibility, as well as matching the culture and the maturity of the organizations. After a number of selection rounds You-Get was selected. Step 4 – Process Improvement Investments were made with the knowledge of experiencing the benefits of a process-oriented way of working and to show how this can be applied in practice. The employees became aware of the advantages and were able to successfully implement a process-oriented way of working. The organization was at that time sufficiently aware of the proactive process improvement potential and had the proper skills. To build up this knowledge, the consultants took lean certification training and the brown paper method was implemented. The employees learned that cooperation, clear roles and responsibilities are essential in their daily job. The foundation for a process-oriented way of thinking and working was established. You-Get supported Delta Lloyd with the process improvements. Process owners were selected in the organization. Workshops held jointly with the Business (vari-

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DELTA LLOYD, THE NETHERLANDS ous departments), consultants and architects led to the start of improvement cycles. The target was, and remains, to process as many customer questions as possible in the most efficient manner. By directly pinpointing firm improvement potential (based on workshops), the benefits of process-oriented working are visible right away. In order to ensure a 1-on-1 fit between the process automation preparation and the agreed technical scope, the user requirements within this scope, the possibilities within the process tool and the delivery of the required integrations from the “basis voorziening” subproject, intensive cooperation takes place (via workshops, reviews, joint project meetings and continuous control). In order to facilitate the implementation of BPM, Delta Lloyd decided to use the “best practices” BPM approach from You-Get. Delta Lloyd and You-Get joined forces to implement BPM, with You-Get taking the lead and gradually transferring knowledge and skills to Delta Lloyd. The best practices must take into account a number of dimensions from process discovery to process implementation: 1. Process: parallel start with process architecture, i.e. inventory of processes and interrelations. Additionally it is required to set up the right data model as a basis for development; 2. Strategy: the strategy consists of the mission and vision, which are starting points (critical success indicators) to set up organization targets and goals; 3. Culture: it was jointly decided and documented how process working would be communicated, so employees are prepared for the production phase of the new processes; 4. Organization: for the training of the different skills and areas, BPM-specific training of You-Get was deployed. You-Get uses a lot of on-the-job training, so the complete analysis, design and implementation of processes with IBM BPM (BPMS) can be carried out autonomously; 5. ICT/Systems: determining technical demands and the new landscape. The future landscape will be determined with the appropriate integration points and adapters and applicable You-Get solutions as accelerators; 6. BPM Organization & Governance: setting up of a BPM organization (project manager, program manager, steering group) and Center of Excellence base with a process team for the first process. Every dimension consists of a number of steps. Between the dimensions and the steps, as well as within and between the dimensions, there are dependencies (e.g. the relationship between the strategy and the process architecture). Subsequently the steps for each dimension and the applicable phasing are addressed in more detail. For every dimension it is important to achieve growth in maturity, which means growth in the area of business process management. A phasing is necessary to manage the steps within each dimension. In addition, each phase concludes with a benchmark and evaluation of achieved results. This way of working guarantees optimal growth in process maturity. A big advantage of this phased approach is that steps are executed in parallel. The implementation of the technical facilities as well as implementation will be achieved very efficiently and effectively. Step 5 – Process-focused The next step taken by Delta Lloyd was the step towards a process-focused organization. In this step the connection between business and IT is made through the implementation of BPMS. With the support of BPMS, process improvements and process automation could be rapidly deployed and the key targets (paperless work,

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DELTA LLOYD, THE NETHERLANDS time- and location-independent workplace) realized. With the support of training and workshops, the organization has now changed into a transparent organization led by a process-focused way of working. Step 6 - Process Implementation Delta Lloyd required a proven and suitable approach for the realization and implementation of processes with IBM BPM (BPMS), including clear phasing. With the implementation of IBM BPM (BPMS) a number of dependencies can be distinguished, and You-Get works on both a top-down and a bottom-up basis. This means the process architecture plays an important role in the set-up. In addition, the application and IT architecture of Delta Lloyd are important, having regard to the current landscape. Harmonization with the program plan (or any bigger picture) is essential in the execution of a project. The performed Quick Scan is an important measurement for the project and the program. The development projects are executed in a short cyclical and iterative way according to the Agile Scrum methodology. After the first process has gone live into production, the process can from then on be continuously improved on the basis of a number of optimization proposals. To facilitate this constant improvement cycle of the incumbent process, it was decided to combine You-Get’s BPM approach with the Agile / Scrum methodology, resulting in a BPM Scrum approach. The BPM Scrum approach describes the way of working whereby the current insurance processes are described in workshops and are analyzed, improved, automated and implemented jointly with the stakeholders of Delta Lloyd. These activities are executed by a BPM Scrum team consisting of the Product Owner (supported by consultants), a Scrum Master and a development team. From a content perspective the product owner has ultimate responsibility for the BPM product and provides the vision for this BPM product. The consultants are responsible for the process description and documentation of the improved processes and transfer these to user stories. The development team is responsible for development, testing and implementation of the BPM Software solution. The scrum master facilitates this entire process. A project leader outside this team manages the project at the receiving (business) end. The Delta Lloyd employees are trained and educated within the BPM Scrum team and supported by You-Get. In time the whole project will be executed by employees of Delta Lloyd. In this entire process, the emphasis is on continuous cooperation between the team itself, as well as with the Delta Lloyd organization, in order to ensure that the BPM implementation and the transition runs smoothly and without delay. Step 7 – Innovative Process The Private Persons – General Insurance Claims and Document Management processes of ABN AMRO Verzekeringen were taken into production successfully in early 2014. As a result of the implementation of these processes, ABN AMRO Verzekeringen is now much more flexible and efficient. All required information is constantly available in real time, allowing active management and control of these processes and enabling decisions to be taken and validated quickly. The next goal of ABN AMRO Verzekeringen is to optimize and extend the current processes even further.

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DELTA LLOYD, THE NETHERLANDS Conclusion The ultimate goal of Delta Lloyd is to transform into an Innovative Digital Insurance Company. The choice of full BPM implementation has led to the result that the targets within the "Digital Insurance” program have been more than achieved. In addition to the predefined targets, customers as well as management and end-users are experiencing a lot of positive effects. An extension to the next set of processes is therefore high on the list of priorities.

2. BUSINESS CONTEXT Customers require and expect the following from financial service providers:  To be reliable: they fulfil agreements and are transparent in terms of status, pricing and price structures;  To be able to communicate through mobile and digital channels;  To be able to respond swiftly, clearly and directly to requests and questions from customers;  To be able to offer personal and direct contact (including by telephone) for the provision of service;  To be able to offer customers the opportunity to be in control themselves: customers can acquire products or services themselves and report changes, when and how they want (preference channels);  To show in their communication with customers that they understand what is important for the customer, in their particular circumstances. Employees require and expect that the organization will offer facilities for working from home:  Working from home in a responsible way, i.e. no confidential documents out in the open  Working from home can be managed and monitored;  Working from home should be as convenient as working from the Delta Lloyd offices;  Expanding the attractiveness of Delta Lloyd Group as an employer for (new) employees;  Enabling paperless working;  Reducing the cost of office buildings for Delta Lloyd Group Regulatory bodies such as AFM (Dutch Financial Market Regulator) are making higher demands of financial services providers, such as:  Transparency (in terms of status and price structure);  Clarity and care towards customers (duty of care, customer-focused insurance hallmark, customer interest as a main goal)  Auditing of customer contacts. Delta Lloyd also wants to be a “trusted insurer”, because it can then demonstrate compliance with legislation and compliancy demands such as record-keeping. Delta Lloyd has the ambition to lead in the above-mentioned market developments, so as to guarantee continuity and stand out from the competition. A number of digitization initiatives have been started within Delta Lloyd in past years. To gain greater control of these initiatives, it has been decided to combine them for ABN AMRO Verzekeringen within a program entitled “Digitaal Verzekeren” (Digital Insurance). By managing the digitization initiatives as a coherent program, potential inconsistencies have largely been prevented. In addition, process optimization, operational excellence, output management, “Sterk Werk” (time and location-independent

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DELTA LLOYD, THE NETHERLANDS working as well as cost reduction), must support the goals and targets of the “Digitaal Verzekeren” program. Targets and Goals:  Paperless work: digitizing the ‘physical’ postal streams for reasons of sustainability, costs and efficient work;  Time- and location-independent working: to enable employees to work in a controlled manner;  Short processing time: putting the interests of the customer at the center with the processes, with fast and secure processing;  Transparency of the process to customers and others;  To strengthen control of the process (not only in individual cases, but also in the overall process).

3. THE KEY INNOVATIONS 3.1 Business The implementation of the BPM solution has advantages for the customer and the operational teams as well as staff teams. Digitizing the paper postal stream is part of the sustainability drivers. The implementation of the BPM solution makes it possible to work on a location-independent basis and to work in a paperless office. Working from home can be achieved smoothly and efficiently, with the employee being supported in performing the required administrative activities. This means the employee will view Delta Lloyd as a modern employer, preventing unnecessary travel and providing greater opportunity for employees to plan their individual working hours. BPM(S) places customer experience at the center of the processes, leading to proper and fast servicing of that customer. This means greater control of the process, and hence cost savings. On top of that, the implemented solution offers process transparency for both customers and other parties. 3.2 Case Handling Before the project Before the implementation of the BPM solution, case building was carried out to a minimal extent within ABN AMRO Verzekeringen. All dossiers were physically (paper-based) managed by one person. Some departments were using a basic workflow registration system (WSR) alongside the physical files and dossiers. This was not the case with the implemented processes using the BPM solution. After the project For the realization of the first two processes, ABN AMRO Verzekeringen defined a client-event model. Within this model an event (e.g. an accident) can trigger one or more cases in multiple products. Every case within the event is defined as “a set of documents, information and activities related to each other and therefore treated as a unit”. The client-event model is designed to support multiple cases in one event to run simultaneously and supports multiple running processes in one case as well. The result of one case can have an effect on all or one of the cases within the event and processes running in the case itself can have an effect on the other processes. The fact that documents belonging to one specific case do not always come in at the same time needs to be taken into account during classification and indexing.

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DELTA LLOYD, THE NETHERLANDS After the information has been updated, it will be checked and validated using the case identifier to determine whether or not the document belongs to an existing case / process, or whether a new process may need to be started. If a situation arises whereby a document comes in later and belongs to a closed case (e.g. a forgotten claim belonging to an old event), a new process will be started. Depending on the process, the employee will determine which steps need to be dealt with. A closed case can be reopened again because of the document but it could also be that because of the document the case can be closed. The closing of cases is done only after all relevant triggers have been fired at other applications and a confirmation letter to the customer is received from the automated document generation application. This way the case is always complete when closed. By using the “customer overview” screen, the employee gets into the customer screen. In this screen it is possible to look at all information related to running and closed events, cases and processes of the customer. All levels within the event: client, case, document, process, tasks etc. are visible to the employee. By using a number of selections and filters (comparable with Excel filters) in the screen, the results can be adapted. In this way the employee can easily look into one or more cases and is able to update multiple cases and can provide a customer with all relevant information in one glance, thus enabling the principle of “first time right”. Follow up actions can be chosen from this “customer overview” screen and new tasks, processes and cases can be created and assigned to all users of the BPM solution. In the current processes the choices are all pre-determined and not dynamic, but in next phases follow up actions will become more dynamic and ad-hoc. The targeted and designed end result will be a full dynamic case management solution. 3.3 Organization & Social The impact on the operational teams is substantial. They have to get used to working in a paperless way and to be able to plan their working hours themselves, as well as taking the opportunity to work at a different location. With the BPM solution they are better equipped to do their work, since they now have one system providing them with an overview. The employees are supported in the required administrative activities by the BPM solution. With the case file implementation, there is no longer any need to look for an actual physical file or dossier, nor any need to get connected to that one specific co-worker who currently has the physical file under his or her control. Delta Lloyd is working on setting up and securing the competence profiles. The BPM solution is a new application and is considered to be a knowledge extension (competence) on top of the existing roles and functions. Competence management ensures that knowledge and experience, as built up with BPM within the ABN AMRO Verzekeringen program, becomes transferable and reusable for other implementation projects in other business divisions of the Delta Lloyd Group. Developing BPM Competence management is a joint responsibility of all involved parties. A BPM manual has been compiled to support the BPM project. This contains a description of the agreements and the aforementioned best practices to be used when applying BPM within the Delta Lloyd Group, and contributing to the standardization of the approach and the way of working. The broader use of BPM within the Delta Lloyd organization is picking up now, and applying this model will facilitate this almost organic growth in a pragmatic fashion.

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DELTA LLOYD, THE NETHERLANDS The implementation of a BPM Center of Excellence is now ongoing on a number of levels. The establishment of a Center of Excellence is seen as a tremendous added value within Delta Lloyd.

4. HURDLES OVERCOME 4.1 Management The commitment and the daily involvement of the management of ABN AMRO Verzekeringen and Delta Lloyd have ensured the successful implementation of this project. The management was tenacious and maintained the necessary staying power, which it also conveyed to the operational teams on the shop floor. The management has been flexible and sufficiently open for advice. In addition, the project has been sponsored by the Board. 4.2 Business The business has at all times shown a lot of drive as well as carrying out the required daily activities. It has adapted well to the new processes. It has been a challenge for the business to critically assess what was really needed. This required the ability to let go of the "old pattern" as well as the former way of thinking. Moreover, this had to be done in a short timeframe. 4.3 Organization Adoption Adoption within the end-user community has been incredibly high. This is because they were involved from day one and because a phased go-live approach was adopted, providing users with enough time to get used to the new solution. The use of BPMS has not been forced upon them; the business has implemented it itself. The chosen steps were validated for all those involved (including stakeholders) in a vast number of playbacks. This ensured that no one was taken by surprise and changes could be implemented on time when required. The active attitude and commitment of the project team members and the management also contributed strongly to the high level of acceptance of the solution on all levels of the business organization.

5. BENEFITS Cost Savings / Time Reductions Optimization of the processes leads to clearer agreements and an acceleration of the entire process. BPM leads directly to faster communication with the customer. Agreements (lead time) made with the customer are now being achieved. Regulatory and policy values concerning the lead time of communication and feedback to the customer are being fulfilled. BPM will lead directly to a reduction of FTEs on the shop floor. Although this is not an objective in itself, it has a direct effect of increasing the profit margin. Previously the management was only capable of managing retrospectively, because the required information was also only provided retrospectively. With the implementation of BPM there is now direct control of standards that are at risk of being exceeded, and this is now leading directly to management of the ‘obstacles’ in order to be more successful. Cost savings and reduction of throughput time are not primary goals and targets of the project implementation, but they are a positive indirect consequence.  100 percent paperless working; files and dossiers can no longer get lost.  When the Go-Live of the A&B (Acceptance & Support) and SSC (Shared Services Center) departments has been completed, a total of 160,000

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DELTA LLOYD, THE NETHERLANDS cases will be processed digitally (previously postal mail documents). This concerns approximately 50 FTEs in total;  Reduction of four FTEs out of 80 (five percent); because of digitization and process management, the roles of mail delivery to the proper department, as well as workload balancer, have become obsolete after the first go-live and this reduction will grow in subsequent go-lives;  Processing a claim treatment (filling out the first-time-fix form) at the shared services center has been reduced by 75 percent (from two minutes to 30 seconds);  Time-independent working; this concerns over 50 FTEs in total;  Location-independent working; this concerns over 50 FTEs in total. An even bigger gain on throughput time will be achieved when an interface is established with a VTA (Insurance Technical Application). This is planned as part of the future scope. Increased Revenues The implementation of this project does not have a direct impact on an increase in revenue. The target of providing the most transparent possible overall view for the customer and an increased quality of service will nevertheless make a positive contribution in terms of an increase in the overall number of customers, leading to an increase in revenue. Quality Improvements The biggest quality improvement is the digital case file / dossier. Physical files are no longer required and therefore can no longer get lost. There is now uniformity in processing the processes, as well as firm control of the processes. On top of that there is a demonstrable quality improvement in terms of the throughput time that ABN AMRO Verzekeringen communicates to its customers. The real-time availability of management information also contributes to this.  Extension of management information, detailed information about a case, lead time and urgency. A file / dossier is no longer in the hands of one user, so if this person becomes inactive, the case can still continue;  Extended file / dossier compilation. ABN AMRO Verzekeringen can now document Input and Output, together with the process steps and choices made, in the case. The file is more complete now, greatly improving the audit trail;  Standard processes, which are better for the customer because the quality of services delivered remains the same regardless of the user.

1. BEST PRACTICES, LEARNING POINTS AND PITFALLS Best Practices and Learning Points  Take small steps;  Document the future vision clearly, share it and monitor it continuously;  Continue to involve more people from the business, do not go for only one or two "opinions";  Clearly define roles upfront: who is approving which activity or document, and who is also taking responsibility for that;  All involved people need to remain engaged in an active and short cyclical manner;  The purpose of the documentation must be unambiguous;  Set up a clear and transparent test plan, and stick to it.

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DELTA LLOYD, THE NETHERLANDS Pitfalls With the aforementioned best-practice approach there will be a continuous learning cycle for improvement. This can potentially lead to a number of pitfalls: Generic  Do not try to think for someone else;  Always validate the requirements with the proper responsible party; Governance  Make sure there is the right level of connection with other running projects;  Do not only set up requirements for the current situation, but also focus on and think about the future; Communication  The business is inclined to use the current process as a starting point;  Do not try to think about everything beforehand; Execution  It is not only about the implementation of BPM; it is the complete transition around it. This also requires proper attention;  Do not try to start implementing as fast as possible; Performance  Integration with other systems can be quite complex.

6. COMPETITIVE ADVANTAGES

Delta Lloyd considers BPM tooling important in supporting the increasing demands regarding;  Faster and first time right servicing of customers  Compliance with internal and external policies  Efficiency to reduce processing costs

7. TECHNOLOGY The following principles apply to the Delta Lloyd IT and Services organization:  Using existing standard services and technologies: reuse, before buy, before build. Delta Lloyd has a Technical Reference Architecture in which the standard infrastructure building blocks are defined;  There is a single integrated BPM development environment for the BPM competence center: standardization of development environment, standards, guidelines and cost savings;  Every business unit has its "own" logical BPM deployment environment: because of logical separation of runtime deployment environments, the workloads of different business units are separated and portable, and capacity and performance can be specifically allocated;  Authentication and authorization of BPM services is handled in the generic user access environment: all BPM workflow applications and STP services are protected and secured using generic user access management tooling;  The existing WPS services of Delta Lloyd Life are migrated to the new BPM 8.5 deployment environment: the WAS 8.5 BPM environment is the technological successor of the current WAS7 WPS environment. Maintaining old environments means extra costs (licenses, hardware, support);

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Integration of BPM with other business services is handled via Datapower: all WebServices that BPM exposes or consumes are configured in Datapower. Routing, load balancing / failover, security and logging are configured in Datapower, so continuity, security and controllability of the chain is guaranteed;  Security with external parties is configured in TAM on the basis of mutual SSL authentication: TAM Webseal is the standard building block for authentication. Delta Lloyd delivers the client authentication certificates for the other party;  All incoming messages are secured: securing ensures that no data is lost in the event of a technical error, and an audit trail is maintained for the source of delivered data;  Cross-platform file integration takes place through MQ FTE: MQ FTE is the standard file transfer technology within Delta Lloyd and delivers managed transfer (monitored);  Transport channels for data with integrity and confidentiality classifications of Extremely High Security with certificates (encryption and signing); http security through certificates and SSL encryption MQ AMS for Messaging. In addition to these principles, a number of new challenges have arisen for Delta Lloyd:  Multiple Process Server Runtime Deployment environments. The goal is multi-tenant (Business Unit hosting) in one generic BPM hosting environment;  One process center environment for multiple BPM development teams. The goal is to support the new BPM development team for life insurance;  Migration of Process Center Database to production DB2 hosting environment. The goal is to have performance optimization and meet "productionlike" service levels on the data and database level;  Multiple process integration patterns via Datapower. The goal is the exposure of BPM STP services to front-office systems and integration of DL VTA back-office systems;  Migration of WPS on WAS7 to new BPM Advanced WAS8.5 infrastructure. The goal is to migrate and integrate the current WPS (STP) services in the new BPM Advanced processes and infrastructure. The principles and challenges have resulted in the following overview of activities within the Delta Lloyd IT landscape:  Documents are scanned in the Kofax scan infrastructure;  Files / documents are offered to the BPM platform through IBM MQ FTE;  Documents are archived and saved in the IBM Content Manager (via the IMIS interface, which is the generic BPM application);  Cases are created in IMIS (BPM) with reference to documents in IBM Content Manager;  IMIS (BPM) determines which sub process needs to be started. An important guideline is that the existing infrastructure should be used for both user maintenance and support of the platform (Websphere). Another essential guideline concerns the split into different applications: one generic for the determination of metadata for each incoming document from different sources (scanned, mail, bank, web application). This initiates processes in other applications, where the business rules of that department reside.

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DELTA LLOYD, THE NETHERLANDS The overall advantage of BPM for the technology (IT&S) organization of Delta Lloyd:  Work can be picked up per role, so is automatically available to the right people;  Working online is possible, so no physical presence is required;  Monitoring of processes and process status is easier;  Location and time-independent working;  Digitization of input (scanning/email/internet);  Making work bins and information available digitally in the workflow application;  Optimization of workflow processes: securing processes digitally (monitoring) and configuring flexibly;  Automation of workflow processes: automating process tasks through integration with the Delta Lloyd application landscape.

8. THE TECHNOLOGY AND SERVICE PROVIDERS You-Get is the BPM partner for Delta Lloyd and ABN AMRO Verzekeringen. YouGet has advised and executed a BPM approach according to the 360˚ Business Services Approach™ developed in house. In this approach, a clear growth path is followed via different dimensions: process management, strategy, culture, organization, ICT and BPM Governance. This BPM approach is realized through iterations with support in the form of advice, training, tools, best practice methodology and project management and has been successfully applied by You-Get on numerous occasions. In the software track You-Get has implemented the IBM BPM software with success. IBM provided the BPMS software for the project implementation. After pre-defined blocks of the project went live, IBM was also involved in health checks of the full application, including toolkits. As part of the health checks, best-practice follow-up and generic architecture and set-up were checked. You-Get has taken the results of these health checks and incorporated them in the continuous cycle of process optimization and improvement.

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Eaton Vance Investment Managers, USA Nominated by EMC Corporation, USA 1. EXECUTIVE SUMMARY / ABSTRACT Founded in 1924 and one of the oldest investment management firms in the United States, Eaton Vance offers individuals and institutions a broad array of investment strategies and wealth management solutions. Eaton Vance has a long-standing reputation as a leading developer of creative strategies with strong investment merit. The ability to anticipate the evolving needs of investors and meet them with timely innovations continues to be a hallmark of the organization. Moreover, the respect for innovation that characterizes the Eaton Vance investment approach also applies to its internal operations. That’s why the company deployed an automated technology solution to streamline and accelerate its new account opening and account change processes. Spearheaded by the legal and investment operations groups, the solution aimed to increase efficiency, reduce costs, ensure compliance with industry regulations, and increase revenue.

2. OVERVIEW To automate the account opening and change processes, the Eaton Vance solution captures electronic and paper communications including e-mail, fax, and scanned documents, storing more than five million documents in a highly-secure, managed repository. The system consolidates the information in one place, providing investment operations specialists with everything they need to work more efficiently. For every new account, the system generates a case template that includes a checklist for each stage of processing. The checklists are specific to the type of account and to the step within the opening and approval workflows. Business admins maintain the checklists, eliminating the need for code changes when defining new financial products. These checklists assure that account opening processes meet regulatory requirements, which differ significantly based on investor qualifications and financial instrument types.  With the automated system, Eaton Vance performed approximately 20,000 account openings and other operational tasks in its first six months. Account openings have increased by 24 percent while the average time to open an account dropped by 26 percent.

3. BUSINESS CONTEXT “New account processing is extremely time sensitive,” notes Harsh Vahalia, senior Documentum analyst at Eaton Vance. “Whenever we get paperwork we are supposed to implement the account and process the trades on that same business day. If that doesn’t happen there are financial liabilities associated with that.” This solution replaced a legacy system mired in paper-based processes and manual workflows. When opening an account or requesting account changes, Eaton Vance broker-dealers submitted documents via fax, e-mail attachment, and hard copy. With more than 100 new account requests daily, each of which contained 10-20 pages of documentation, the investment operations groups responsible for account

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EATON VANCE INVESTMENT MANAGERS opening faced the task of processing and routing thousands of pages manually. The system offered no automation to streamline the tracking of in-progress applications or searching for account information. Document retention and archiving, application approval, audit, and quality control procedures were manual as well. The lack of automation and manual compliance requirements curtailed the firm’s ability to grow. “We needed the ability to search for account information and access up-to-the-minute versions of associated documents,” explains Vahalia. “This is important to support e-discovery for our legal department, and also to help the audit and quality control teams ensure that all checks and balances are in place.

4. THE KEY INNOVATIONS 4.1 Business The solution automates electronic document capture, management, workflow and archiving while enabling physical retention of documents. Moreover, it creates powerful efficiencies for end users and managers, helping the company meet regulatory and legal requirements. The system links seamlessly with all entry points for electronic and paper documents including e-mail, fax, and scanning, storing the documents in a highly secure, managed repository. At any time, more than 800 investment operations specialists, business administrators, and legal and internal audit team members use the system to capture, access, and manage stored documents, which number more than five million. By automating manual tasks and providing a clear audit trail, the system prevents trades from being delayed or jeopardized because of missing documents. “The system has quickly become the lifeline of our key business units,” notes Vahalia. “It also meets the needs of our legal and internal audit departments for an automated and accurate audit trail. In addition, it has shaved significant time off the legal discovery process.” 4.2 Case Handling The original manual process was resource intensive and typically required more than 1,000 pages of documents per account—on average 120 accounts were opened per day. In addition, there was no automated tracking mechanism for the paperwork.  The system organizes all account paperwork in one place. The system links seamlessly with all entry points for electronic and paper documents including email, fax, and scanning. It provides investment operations specialists with everything they need to work more efficiently including a modern, intuitive user experience that puts key information at their fingertips. In the first six months of use, Eaton Vance performed close to 20,000 new account openings and other operational tasks. The number of account openings has increased by 24 percent while the average time to open an account has decreased by 26 percent. The system generates a case template for every new account that includes a checklist for each stage of processing. The checklists are specific to the type of account and to the step within the opening and approval workflows. Business admins maintain the checklists, eliminating the need for code changes when defining new products. 

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EATON VANCE INVESTMENT MANAGERS Key roles in the new account process are:   Account Specialists  Quality Assurance  Trade Build  Management Oversight Roles are assigned and managed through Documentum groups. Individual users performing a specific role join the corresponding group. As account processing continues, group members receive tasks according to steps in the checklists. Each new account requires a large number of legal documents in order to proceed. Some initial steps can be accomplished with partial documentation; however, the system will prevent completion until all required documentation has been included in the case folder. The built-in checklists and reporting provide the Account Specialists with instantaneous status information of all new accounts in process. They are able to efficiently process multiple cases as documentation arrives. Furthermore, management has insight into all cases in process including automatic alerts to prevent any case from “falling through the cracks.”  The checklists included in the case template allow for adaptation by the case manager. Some items are mandatory, others optional, and some may be optional during certain steps of the processing. However, they become mandatory before a case closes out. These checklists are visible by all case managers and provide real-time visibility into how cases are processed. Business admins modify and update the checklists, continually improving the case processing. 4.3 Organization & Social The solution has 120 active users; line-of-business and managerial. They appreciate the solution’s ease of use, modern web interface, and that it requires no extensive training. Equally important, when business processes change, users can adapt the system to meet their needs without coding or IT support. Users can modify certain components of the interface via configuration without changing the basic application. The company and its solution partner spent considerable time involving users and getting their feedback at every stage of development. “We would mock-up elements of the solution and show them to users several times a week,” continues Vahalia. “We tweaked forms and workflows and really got them engaged with the application as it was being built.” The combination of rapid prototyping and the solution’s inherent flexibility generated tremendous buy-in from the end-user population and made a significant contribution to its overall success.

5. HURDLES OVERCOME There were very few hurdles to overcome. The organization was eager to move away from its manual way of doing business. The new system made everyone’s job easier and more efficient. Employees could not wait to begin using it. With staff on hand to answer questions and demonstrate processing steps, employees easily overcame the small learning curve during the first week of operation. One of the best strategies for encouraging organizational adoption is to deliver a system that makes users jobs easier. This new system provided so many advantages over the manual process that resistance to adoption never arose. 

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EATON VANCE INVESTMENT MANAGERS 6. BENEFITS With the ability to track new accounts and operational tasks easily and systematically, Eaton Vance managers quickly realized a distinct improvement in the productivity of their departments. They can accurately gauge and manage resource utilization and ensure that each step of the account opening or account change process receives the appropriate number of specialists. In addition, the solution delivered significant measurable results, which included: 6.1 Cost Savings / Time Reductions  

A 26-percent decrease in the average time to open account An average reduction of 1.5 days in time per account for regulatory and audit due diligence 6.2 Increased Revenues 

Twenty thousand new account openings and other operational tasks in the first six months  A 24-percent increase in account openings with no increase in the workforce 6.3 Quality Improvements  

A 28-percent reduction in errors that needed to be rectified by quality control. A 60-percent reduction in hours spent programming application customizations

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Involve the user population in the development process early and often  Engage subject matter experts throughout design and development  Provide a substantial tangible benefit to users to incent adoption   Build in flexibility—enable people to think and make decisions  Include auditing to encourage good decision-making  Pilot the system with a cross section of users; then incorporate learnings into the production build 7.2 Pitfalls  Don’t over complicate automated workflows—keep it simple and let case managers think   Expect to make updates and tweaks to the system post go-live

8. COMPETITIVE ADVANTAGES Financial services institutions (FSIs) have been opening new accounts for decades. Yet it remains a challenge for many. It should be fast and hassle-free for the institution and the customer, but often it’s not. Research suggests that institutions set the tone of customer relationships during new account enrollment. Streamlined account opening creates greater customer satisfaction while increasing the success of cross-sell and upsell efforts and boosting top-line revenue. The more products a customer has, the more profitable the relationship. When large enterprises compete, the margin for victory can be very narrow. The Eaton Vance account enrollment case management solution provides a measurable competitive advantage by automating and simplifying one of the most fundamental and important tasks facing FSIs.

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EATON VANCE INVESTMENT MANAGERS In the future, Eaton Vance plans to expand case management applications beyond account opening and processing.

9. TECHNOLOGY EMC Documentum xCP delivers an integrated development environment with all the necessary tools in one place. xCP is the foundation for the Eaton Vance application, which uses the following components:  • EMC Documentum xCP for case management including workflow • EMC Documentum content management repository for storing structured and unstructured data • EMC Documentum Retention Policy Services for document retention and management • EMC Captiva for document capture • A powerful workflow engine with an array of integration points • Modern intuitive interface

10. THE TECHNOLOGY AND SERVICE PROVIDERS Flatirons Solutions (formerly Beach Street Consulting) develops and implements content-focused business process automation solutions and provides consulting services that enable these solutions for its customers. Flatirons is an expert in working with the Documentum platform, specifically the xCP and Captiva Suites from EMC Corporation. Flatirons implements an internal methodology known as Streetwise™ where its architects put years of experience to use in defining, designing, developing, and deploying systems that meet its customers’ needs on time and within budget. http://www.flatironssolutions.com

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Fleet One, USA Nominated by 4Spires, USA 1. EXECUTIVE SUMMARY / ABSTRACT WEX Fleet One1 is a midsized company that provides fuel cards and other financial services to private and governmental organizations with fleets of vehicles. The 9-person marketing department was struggling with managing their workload. They receive numerous requests from company management and colleagues in other departments for preparing marketing collateral, advertisements, exhibits at trade shows, marketing programs, etc. On an ongoing basis the department is typically working on 20 or more requests at a time. Each request can be characterized as a “case” that requires coordinated and collaborative work from several knowledge workers in the department on a strict delivery deadline. For example, a relatively simple piece of promotional collateral requires interactive input and participation from copy-writer, layout, production, and distribution staff that must also collaborate with subject matter experts, product managers, corporate attorneys, accountants, and management reviewers. Each individual’s obligations to complete the project must be tracked on a strict deadline. Each knowledge worker in the department is working on multiple requests at a time on various schedules; and so oversight of the whole workload, both by person and across the department, is critical to managing personal and departmental resources. Flexibility is key; individual obligations are initially mapped out in the context of the final delivery, but it rarely turns out exactly according to plan. A high degree of communication and collaboration among the team is needed to juggle changing schedules across multiple projects. In October 2012, Fleet One installed an innovative knowledge worker system that enabled the department to improve their coordination, efficiency, visibility, and governance over the activities in the department. Over the first 4 months the group handled over 250 requests with the new system. The system is producing a new class of granular performance data that is providing new insights into individual and group performance.

2. OVERVIEW Due to the nature of the marketing department’s activities and the high degree of interactivity between knowledge workers, the fundamental challenge was to improve collaboration. The head of the department, the Director of Marketing, can be considered the “case manager”. In order to deliver each case on time she must ensure the successful coordination of work across several people in her department. The nature of these tasks requires a high degree of engagement and interactivity between knowledge workers which depends on an up-to-the-minute, shared understanding of “where do we stand” and “who’s got the ball for the next action”. This high degree of interactivity requires a balance between structure and flexibility. Each work request the Director makes spawns a work-delivery “conversation” between her and the performer. The conversation follows a specific workflow sequence of four stages: Negotiation, Delivery, Acknowledgement, and Closed. Negotiation Stage. The Director makes a specific request of an individual in her department (e.g. Can you get the ad developed by next Friday?). The request is

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Fleet One was acquired by Wright Express in 2012 and was rebranded to WEX Fleet One in 2013

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FLEET ONE, USA entered in the new system using a simple form that also captures contextual information like customer, project name, and proposed budget hours. Any associated documents can be attached to the request. Because various performers will be involved in completing the work, she shares/broadcasts the request to other “Observers” who can then follow the conversation and add comments for the record. The copy-writer/performer receives an email trigger that the request has been made, and a link in the email directs them to the system for entering a response. Once the performer has logged in to the system, the request shows up in the performer’s “Due From Me” list. Upon opening the request, the performer is presented with four specific response options: Agree, Decline, Counter-Offer, or Comment (e.g. ask for more information). The performer selects one of the four responses to the request (e.g. Counter-Offer: I can’t get it done by Friday, but I could by the following Tuesday. Will that be ok?). The two parties (requester and performer) conduct an explicit conversation, and the negotiation stage concludes with the performer making a clear agreement to deliver on an agreed date. This is a key differentiator from task and project management systems that “assign” work tasks without response or explicit commitment from the performer. Delivery Stage. In this stage the performer is engaged in following through on their delivery agreement. The system supports and encourages ongoing dialog between all the parties (requester, performer, and observers) by enabling specific follow-on actions. For example, the requester can ask for progress reports, add comments, or, if necessary cancel the agreement. Performers, on the other hand, may report progress or request to amend the agreement as new issues or problems emerge along the way. Performers are also obliged to keep the requester up to date on the status of their agreement by indicating one of three states: “commitment is on track” (green); “commitment is in jeopardy” (yellow); or “commitment can no longer be met” (red). In this way the requester, and other observers, can be alerted in real time as to when breakdowns are occurring and not spend time on needless follow up. This stage concludes when the performer takes the action to “Deliver”. Acknowledgement Stage. The system sends an email to the requester signaling that a delivery has been made. The task is not complete until the requester/case manager is satisfied with the final product. Otherwise they have the action to “Request rework” which sends the task back to the performer. When the requester takes the action to “accept” the final delivery, the conversation moves to the “Closed” stage. Closed Stage. Completed conversations are archived in a list view that enables sorting and retrieval according to a variety of criteria including requester, performer, due date, project, and customer. Each record includes a complete thread of the whole dialog from request through acceptance. This documentation enables granular review of who said what to whom and all the associated details and documents associated with the initial request. The commitment data enables new levels of governance and performance management insights. Archives can also be helpful in tracking compliance issues. Beyond just tracking the dialog between participants, the whole work-delivery conversation is also shared/broadcast to other concerned parties. The system enables the Marketing Director to designate her supervisor as an “observer” for all the cases in her domain, thus enabling, for the first time, the entire workload of her department to be presented to her superior. This has replaced writing progress and status reports and has enabled a more granular discussion of issues and performance metrics with

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FLEET ONE, USA her superior. The Director can also designate observers in other departments outside of her own who have interest in the progress of the case. The underlying technology enables all users of the system to be equally responsive through their mobile devices. All screens and features are available across the internet. All communications surrounding each case are unified. All inputs and updates made in the system are sent immediately to each participant’s email as well as their private group social media channel. Each action taken by every participant in the case is date-stamped and recorded in the case history along with associated commentary and supporting documents. The complete dialog thread is presented in the context of the case and archived for later review and analysis. The second challenge was enabling flexibility while at the same time maintaining rigor and accountability. Since flexibility requires order, the system assures rigor in two ways. First is the requirement that each request must go through all four stages (negotiation – delivery – acknowledgement - closed). Second is the requirement that each request can have any number of observers, but only one performer who is accountable for delivery of the agreed outcome. Complex cases involving several people are handled through the use of any number of “supporting” requests. An essential requirement of the system was the ability to link together supporting requests. Successful completion of a “parent” request may depend on the performance of one or more “supporting” requests, but each has a specific individual performer. Requestto-supporting-request dependencies can be added at any time by the performer. This enables the tracking and oversight of the whole network of interdependent requests by case, by due date, by performer, by account, etc. Beyond these two requirements (i.e., four-stage workflow and one accountable performer), the system must be extraordinarily flexible in terms of size, scope, and number of participants. Some requests last a couple days, while others last 3 months or more. Some involve one performer while others involve up to five supporting performers. While the same expertise is needed by each performer (e.g. copy-writer), each request is unique. Delivery dates are often extended, sometimes up to four or five times over the course of a case that took two months to close. The third challenge was providing access to case histories and archiving. All participants in a case (Marketing Director, performers, and all observers) have anytime/anywhere access to the full case record including supporting documents. Access to records is limited to those participants based on satisfying login credentials and strict authentication/permission requirements. Closing a case can only be accomplished by the requester after they have received and accepted the performer’s final delivery. Closed cases are archived and remain viewable by all participants in the case. Sort and retrieval capabilities are available across several criteria to enable contextual follow up, analysis, and compliance monitoring.

3. BUSINESS CONTEXT Before the new system was implemented the marketing department used Outlook Tasks to track their work. Tasks were identified and assigned with due dates to various people in the department. The group had been using Outlook for several years. The Marketing Director, however, was dissatisfied with this solution and had been looking for over two years for an alternative system that would better support collaboration among her team.

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FLEET ONE, USA 4. THE KEY INNOVATIONS 4.1 Case Handling Business The new system provided numerous innovations, but perhaps the most important was the ability to easily link requests to other requests. Supporting requests could be added onto “parent” requests at any time. Major requests are linked to a hierarchy of supporting requests. The manager can now see the entire project and all its dependencies in a single context. The manager can drill down the chain to view the details of any supporting request. A second innovation was the ability to attach files and documents that reside within the context of the work request. Third, any number of “observers” can be added to a request tracking conversation. This provides all interested parties with up-to-the-minute status on issues as they emerge. For the first time, the Marketing Director is able to provide a comprehensive view to her superior of all the activity going on in her department. Fourth, a series of dashboards enable users to quickly review and sort all requests “due from me” and “due from others.” Another dashboard shows all active requests where the user is requester, performer, observer, or parent requester. This view enables a comprehensive and interactive view of all the tasks each user is involved in. Once deliveries are made and accepted, the complete work conversation, including attachments, is saved in an easily accessible and sortable archive. Historical information and performance metrics can be mined from this data. 4.2 Business The new system has changed the way the Marketing Director and her department engage with their customers and stakeholders. First of all, the Director began the practice of making her superior executive an observer on all the work tasks underway in her department. For the first time, she was able to enable her superior to view and participate directly in all the activities in her group. This led to richer conversations about her goals and the performance of the group. The marketing group customers include colleagues in other departments across the company who request collateral, promotion, campaigns, etc. that the marketing department develops and delivers. In order to consolidate requests from these customers with the activities and responsibilities of the staff within her department, the Marketing Director began the practice of requiring that all requests of her department be composed, submitted, and negotiated with the same new system. Managers in other departments now make requests and negotiate clear delivery agreements with the Marketing Director who then, in turn, makes a series of linked, supporting requests to her staff in the same system. These customers can then monitor progress and participate directly in the work conversations. 4.3 Organization & Social Collaboration among team members has improved. The system enforces a “managed conversation” that has added precision to the work dialog. The “one-way” task assignment process that was used formerly has been replaced with a “two-way” negotiation that results in a clear agreement to deliver on a certain date. The performer is now more involved in establishing achievable outcomes. Commitments are clarified as to who is accountable for what and who has the ball for the next action. Each person in the group has a personal work list that shows tasks “due from me” and “due from others.” Each performer is also expected to maintain an up-to-date indication of the status of meeting their individual commitments using simple color-coded icons. Green indi-

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FLEET ONE, USA cates they are on track to meet the agreed target date. Yellow means their commitment is in jeopardy. Red indicates that there has been a breakdown that will prevent the performer from meeting their agreed due date. This simple reporting both cuts down on needless check ups by the requester, and enables early identification of problem areas. Often these breakdowns are identified much earlier than in the past. When a performer changes the status, amendments to the original agreement, or new agreements, are made explicitly. The integration of task and relationship management requires more direct communication and has tended to build trust. The new work management system is integrated with both the email and social media tools (Chatter in this case) everyone uses each day. Every entry, change, and update in the system is immediately sent to all participants in that work conversation (i.e. requesters, performers, observers, and parent requesters). Links in the emails bring the user directly to the relevant work request where the entire conversation thread is captured and presented in the context of the work request. The new system has become the “center” of all marketing tasks. Everyone in the department uses it to submit and execute work commitments. It is now a standard part of the work cycle on each project.

5. HURDLES OVERCOME Organization Adoption The cost to acquire and install the new system was minimal so there was no significant hurdle to get management approval. Adoption was virtually immediate. Except for a department meeting to discuss the change in business practices, the system required no training regarding the user interface or functionality. The new tool was “plugged into” their current work environment. Within two weeks, the entire marketing department was “100% committed” to using the new system. The benefits gained by the system were apparent to both the department head and the individual staff members.

6. BENEFITS 6.1 Cost Savings / Time Reductions The system has improved efficiency and reduced the amount of time the department spends on collaboration and execution. Handoffs are clearer. Visibility and reporting on work progress are much improved. The group has a better view of commitments and the various people involved in each commitment. Performance management and governance has improved. The group reports improvements in hitting their deadlines. With less time spent on coordination, the group reports more time is being spent on getting marketing results for the company. 6.2 Increased Revenues Though the effect to increase revenues is indirect, the improvements in the quality of reporting and viewing the marketing funnel certainly save time and lead to more time spent bringing in leads and branding the company. 6.3 Quality Improvements All users of the system (the Marketing Director, staff performers, her senior executive, and colleagues in other departments) have become more effective and efficient. Work agreements are explicit. Individual accountability is clear and visible to all. Dashboards enable better tracking of activities by performer, customer, account, etc. Coordination has improved which has resulted in time-savings. Over the initial fourmonth startup period, the marketing group has successfully handled over 250 differentiated, non-repeatable work tasks according to a standard process (request– agree-deliver–assess). Archives of completed tasks promote organization learning.

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FLEET ONE, USA Senior management has improved visibility into the department workload and performance issues. Work relationships are improving.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  New work norms should be discussed ahead of time. While the system appears to be just a simple work-tracking tool, its underlying behaviors and practices reflect significant changes in work norms.  The idea of allowing staff people to “negotiate” work assignments may be a radical notion in some organizations. Getting the group comfortable with the new approach takes some getting used to.  Yielding a level of “authority” over to staff people who are empowered to respond to work requests is the quid pro quo to achieving greater accountability and commitment to shared outcomes.  The new system may work best in high-trust organization where sharing details about individual work performance is a reasonably comfortable practice. 7.2 Pitfalls  The new practices and communication patterns encouraged by the system may be seen as incompatible with a command-and-control management style where assignments are more-or-less passed down as “orders”.  The success of the system will largely depend on the maturity and trust among members of the group. A certain level of trust is needed before individuals will feel comfortable exposing details of their individual work activities to others.

8. COMPETITIVE ADVANTAGES As mentioned above regarding increasing revenues, improvements to the company’s competitive advantage are indirect but some advantage can be inferred.

9. TECHNOLOGY The new work management system was implemented on top of the Force.com technology platform. All system users were already licensed to use the Saleforce.com CRM tool. The work tracking system described in this case study was identified, selected, and installed directly from the Salesforce AppExchange by Fleet One’s system administrator without any assistance or support from the system vendor. The worktracking system was downloaded, installed, and distributed to users in less than 15 minutes. The new application integrated seamlessly into the pre-existing menu structure and matched the user interface style of the existing Salesforce application, and so there was no training required. Users were up and running within 30 minutes of the installation.

10. THE TECHNOLOGY AND SERVICE PROVIDERS The CommitKeeper (www.commitkeeper.com) work management/business execution system was provided by 4Spires (www.4spires.com). The product was installed directly from the Salesforce AppExchange without support from the vendor and automatically incorporated into each user’s Salesforce application. The cost is $9 per user per month ($972 per year for the whole 9-person department in this case). 4Spires also offers a generic cloud version of the CommitKeeper system that requires only internet access and a browser (i.e. no underlying technology platform license). Other versions under development include a SharePoint version, mobile version on the Android platform, and an API for enabling quick incorporation of the conversation-tracking system into other complementary systems.

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Freedom Mortgage, USA 1. EXECUTIVE SUMMARY / ABSTRACT This case study details the Retail Title Track Rewrite Process. Title Ordering and Review are key components of the mortgage financing process. Title ordering and the title search process reveal the financial obligations that could potentially impact the sale of the property, including such actions such as lawsuits, liens, legal claims, etc. The mortgage lender holds responsibility for the title review process. The change to this process impacted the Title department, closers, mortgage applicants, title providers, and FMCs management team. FMCs Title Process dramatically changed the once manually intensive title ordering/review process. The Retail Title Process Rewrite Project uses a BPM solution to modify the timing of the preliminary title review, indexes title documents to the EDMS(Electronic Document Management System), modifies the ownership of activities to make the Exception Reviewer the performer of all post-Exception Review tasks; and allows delivery of a title order cancellation event to the integrated Title Vendor terminating both the BPM and external systems' instances. Finally, the creation of a real-time dashboard provides management with a view into task metrics (such as title ordering). As a result of this project, the speed of the Title Process increased by 51 percent, with reduction employees needed to complete the title process 52 percent. However, the most important intangible benefit was the acceptance of the BPM team into the fabric of the organization; it is now easier for the BPM team to work with business units on initiatives since the Retail Title Track Rewrite Project was a visible, well-documented success.

2. OVERVIEW Definition of Mortgage Title and Mortgage Title Insurance Title is the legal term used to describe the conveyance of a bundle of rights in a piece of property. Title is necessary to convey ownership of the property and is an essential part of the home purchase process. Public records, such as recording of deeds, liens, easements, and other encumbrances, provide evidence of the property’s title history. A title insurance policy is a contract of indemnity that guarantees that the title is as reported. If the title is not as described, and the owner is “harmed” at a later date, the title policy covers the insured for loss up to the face amount of the policy. A title search and issuance of title insurance is required during the mortgage process. Title Insurance Companies issue title insurance which protects the potential home buyer against previous encumbrances not revealed through a thorough search of public records. Title Insurance insures prospective homeowners during the purchase process that they are acquiring marketable title to the property upon settlement of funds. In other words, title insurance provides insurance against title defects from past events. Title insurance provides coverage only for title problems that were in existence at the time the policy was issued. Issuing a title insurance policy is an exacting process. Title insurance companies work to eliminate risks by performing a painstaking search of the public records, laws, and court decisions pertaining to the property and the parties to the escrow are maintained.

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FREEDOM MORTGAGE CORPORATION Freedom Mortgage orders title insurance for buyers applying for mortgage financing for the property and reviews the titles. The “As-Is” State of the Title Process (Prior to BPM) The Retail Title process allows for the processing of title policy orders through the Retail Call Center Operations “Title Track” process; this process is either integrated or manual. Orders with preferred vendors are handled through integration with software that enables paperless mortgage preparation and ordering of the title policy documents. Manual orders are routed to a sub-process that allows for the follow-up and tracking required for obtaining the required title policy documents. The title documents were reviewed by the Freedom Mortgage Retail Center Operations team after the title provider renders a decision on the quality of the title.

3. BUSINESS CONTEXT Challenges for the Title Track team include work management for title orders from preferred vendors outside of their control and the need to create a sense of personal accountability for each loan acquired by the Title Track team member to motivate employees in a tedious task. There is a need for reporting to manage title orders. The business wanted to change the title process to move the review of the title document back to when it is first received instead of the current process timing when the decision is provided by the title provider. The decision has also been made to move to a pod-type concept where there is one Quality Assurance (QA) reviewer and a group of exception reviewers tied to each title from the time of the first review. The goals of the To-Be state add functionality to the existing Retail Title Process:       

Modify timing of preliminary title review. Modify ownership of activities so that the exception reviewer becomes the performer of all post-exception review tasks. Enhance task presentation in the dashboard view. Provide management team access to the task management module. Index documents to an electronic database system based upon specific elements in the inbound automated title request event. Allow delivery of an order cancellation event from Freedom Mortgage to the integrated title vendor, terminating both the Business Process Management (BPM) and their propriety title-order software instances. Enhance task presentation in the manual title process,

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Figure 1: To Be Title Process Design

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FREEDOM MORTGAGE CORPORATION 4. THE KEY INNOVATIONS Exception Review Handling for title defects is a key innovation of the process. The newly created tab allows the user to view comments from Freedom Mortgage’s proprietary Loan Origination System within the BPM, title provider review comments (if integrated) within the system, and a review checklist for the title.

Figure 2: Exception Review of Title Process with checklist Team Leader / Manager Question Handling allows the team lead and the manager to receive questions and review all comments/work performed on the title in one screen:

Figure 3: Team Lead Screen Dashboard creation for individuals, team leads, and management is a key innovation in this process. The Pipeline Summary shows all of the loans with their related title statuses. The dashboard displays links to the loans, tasks the user must complete, and the name of the active work step. Moreover, the dashboard shows My Unresolved Exceptions. When an Exception reviewer completes the Exception Review work step without marking the Clear to Close indicator as TRUE, the workflow moves to the Unresolved Exception work step, and the loan is displayed in the My Unresolved Exceptions widget. The columns shown within this widget include:  Loan Number  Loan Name

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FREEDOM MORTGAGE CORPORATION  Last Saved/Completed Timestamp  Instance Comment Loan Processor Monitoring (Integration with outside title vendors) shows all posted events for the Title product based upon the Loan Number and provider review checklist. Items needing to be addressed (or cleared to close) to issue a title are clearly indicated. Comment fields capture important information.

Figure 4: Event History Dashboards indicate success with external title vendors and provide Freedom Mortgage employees a window of understanding into external vendors' work in the title process performed on Freedom Mortgage’s behalf.

Figure 5: Integration Screen with External System Showing Error (Unsuccessful Title Request)

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FREEDOM MORTGAGE CORPORATION Clear to close issues marked as such by external vendors are clearly delineated, and the Freedom Mortgage employee can review those items and determine concurrence of the external vendor’s assessment of the title issues.

Figure 6: Clear to Close Review of External Vendor’s Assessment

4.1.

OBJECTIVE

4.3 Case Handling No case management used in this project. 4.4 Organization & Social The Retail Title Track Team is now staffed by 52 percent less employees since the implementation of this solution because of increased efficiency.

5. HURDLES OVERCOME Management was eager to adopt new business processes in the Retail Title Track. The business users felt empowered with the clear assignment of tasks and the ability to send questions to team leads within the system. Thorough training of end users allowed the users to feel comfortable with the new process. Quality documentation of the business process and creation of job aids and process flows greatly assisted implementation of the new process.

6. BENEFITS As a result of this project, the speed of the Title Process increased by 51 percent, with reduction employees needed to complete the title process 52 percent. 6.1 Cost Savings / Time Reductions As a result of this project, the speed of the Title Process increased by 51 percent. 6.2 Increased Revenues Reduction employees needed to complete the title process 52 percent. 6.3 Quality Improvements Improved exception handling to clear title exceptions and the creation of dashboards improve the title process. However, the most important intangible benefit was the acceptance of the BPM team into the fabric of the organization; it is now easier for the BPM team to work with business units on initiatives since the Retail Title Track Rewrite Project was a visible, well-documented success.

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FREEDOM MORTGAGE CORPORATION 7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Exception review handling for title best performed if the exception is made the default performer; Q_TitleExceptionReview o If the Preliminary Reviewer has indicated that a Subordination is required, the performer is set to Q_TitleExceptionReviewSUB o Once the task has been acquired the Performer is changed to the current user. o The Exception Reviewer also becomes the performer for any Event questions (Event 222’s) that are already in queue or received during the review period. o Any Event 222’s that are received after the review is complete are assigned to the default performer  Agile software development methodology allowed the business users to see the new system early in the process thereby enabling the development team to loop-in their feedback for subsequent revisions.  Robust Quality Assurance testing key to successful external/internal system integrations. 7.2 Pitfalls  Adapters to external sources require more time than planned.  Creating effective dashboards that meet business needs a highly iterative process.

8. COMPETITIVE ADVANTAGES The modified process provides dashboards for managers and employees offering real-time transparency into the title process. Integration with the vendor’s systems through BPM reduces errors and increases speed.

9. TECHNOLOGY The creation of BPM dashboards and routing of work within these dashboard queues enhanced the title rewrite process. The screens developed are streamlined and uncluttered, allowing for quick scanning of title issues, outstanding questions, and clear assignment of tasks.

10. THE TECHNOLOGY AND SERVICE PROVIDERS RealEC® Technologies, a division of Black Knight Financial Services, is Freedom Mortgage’s vendor for paperless mortgage solutions. Aurea’s Savvion BPM is one of Freedom Mortgage’s BPM automation solutions, and it is the solution used in the process described in this case study.

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Generali CEE Holding B.V. Nominated by Bizagi, United Kingdom 1. EXECUTIVE SUMMARY / ABSTRACT Generali CEE Holding1 (Generali) is a leading insurance group in Central and Eastern Europe with total assets under management of €14.8 billion and more than 11 million clients. In 2011-2014, we embarked on “Project Puccini,” a large-scale initiative to significantly boost process visibility, productivity and efficiency in the area of Corporate Risks underwriting2 for 10 countries throughout Central and Eastern Europe. We needed to support the most complex insurance processes in a multi-company, multi-language environment. Potential systems were assessed on their ability to deliver strong case management, analytics and workflow through the whole corporate insurance policies lifecycle. BPMS was chosen over in-house development and an Out of the Box Policy administration system for the costs saving, functionality and ease of integration. Following deployment and delivery, Project Puccini has come to life and matured into full policy administration; and today, BPM extends beyond Corporate Insurance. In March 2011, after three months of development, the first version of the company underwriting process was delivered in two member companies. Since then, its scope has widened significantly to include the whole lifecycle of insurance policy and far more complex deployments in our largest member country, Ceska Pojistovna in the Czech Republic. To date, 51 processes have been delivered in four countries in five languages. Our BPM solution has proven cost-effective, scalable & highly functional, delivering agility within our constantly-shifting regulatory environment.

2. OVERVIEW Generali provides know-how, professional and operational support for insurance companies in 10 countries – Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia. The Corporate Insurance departments of all Generali member insurance companies create on average 4,000 insurance offers (quotes) per month, which materialize into over 7,0003 policies per year. The work involved is complex, based on staff experience, with policies tailormade for specific clients’ needs. Large risks exposure is often covered by the insurance company in partnership with other co-insurers and re-insurers. Generali CEE Holding Corporate Risks Department initiated Project Puccini in order to provide member companies with a corporate insurance processes support

1

Generali CEE Holding is joint venture of Generali Group (holds 76 percent of the joint venture), the 6th biggest insurance company in the world with total assets under management of almost €480 billion and 65 million clients worldwide and CEE Group which is one of the largest investment and finance groups in Central and Eastern Europe.

2

Corporate insurance covers five Lines of Business (Property, Liability, Engineering, Marine, Special)

This figure includes only marine insurance cover policies. Marine insurance declarations (+10 000 pieces) are not counted as individual insurance policies in this figure.   3

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GENERALI CEE HOLDING system. The solution needed to support all the activities of Corporate Risks Department including: 

Underwriting and policy administration processes (including related coinsurance and re-insurance)  Sales activities planning (Pipeline management)  Other related areas (Loss Control, Re-insurance Specialists). Corporate Insurance policies form a specific subset of the overall insurance portfolio. On the one hand, these policies consist of complex insurance relationships, with very high level of risk exposure (sums insured) and complex policy administration processes; while on the other, there are relatively small number of policies per year (7000 of corporate policies compared to 2-3 million of annual retail policies in Generali CEE Holding). Therefore Generali CEE Holding was looking for an agile, robust and cost effective solution with the best value for money ratio. Major factors were considered in the solution selection, including: multi company and multi-language features, workflow process management, document management, the ability to create policy and print quote templates, and to provide reports with strong analytical capabilities. Integration with existing assets such as policy administration systems became high priority requirement in Ceska Pojistovna - the biggest Generali member company. All these factors had to be met within a modest budget4. The more detailed solution selection is discussed further in Section 9: Technology. All the above challenges have been addressed by the projects, as explained below. In addition, it enforces high standards and encourages best practice sharing across the business and with member companies5.

3. BUSINESS CONTEXT The corporate risks underwriting process is one of the most complex in the insurance industry. In some cases, we have one or more offers being prepared simultaneously or consecutively, which will end up incorporated into one insurance policy, or conversely, one offer can end up split between multiple insurance policies. In the area of corporate risk insurance, the insurer forms a group of experts with unique know-how to maintain a dedicated client approach. The process itself consists of detailed risk assessments, preparation of tailor made offers and negotiation with brokers, other insurers and re-insurers. Operations of the Corporate Risks department were mainly “paper-based” with underwriters spending a lot of time accessing policy administration systems internally, but lacking real-time access to the data once the case left the department. Duplicate data entry was also a known problem. In addition, question marks over productivity and quality were being raised, due to lack of process visibility. Initial business requirements were defined as follows: Workflow support  Enforce underwriting guidelines (offer & policy preparation, pricing)  Enable process flexibility and parallel quote preparation

4

Application development team consisted initially of 3 people and later was strengthened to 6.

Recently, a new business area of Life Insurance has been added in Generali Czech Republic with medical risks examination process developed and deployed to full production within 3 months. 5

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GENERALI CEE HOLDING Experience- and Facts-based Underwriting  Easy access to previous quotes, quotation history, templates, reports, questionnaires, historical policy data (e.g. loss history)  Deliver all relevant information from multiple systems from single queries Pipeline Management  Support planning and record keeping of the business opportunities  Provide queries and reports for management on several levels  Measure/graphically illustrate business performance of individual Brokers Duplicate Request Management  Effectively manage duplicate requests (duplicate request to quote for the same client) within each company and across all member companies It was necessary for the selected solution to offer multi-company and multi-language support as well as integrate with administration systems of other member companies, as the solution needed to be deployed across all member companies in 10 countries.

4. THE KEY INNOVATIONS Previous paper-based processes lacked visibility, structure and transparency which put underwriters at risk of not making the right decisions or failing to spot mistakes. Key innovations came with structured processes including case management, tailor-made business features and real time managerial reporting based on structured shared business entities/data model. Structured Underwriting process including Case Management:  Automated workflow across several member company departments as well as within Generali Corporate Risks department  Underwriter manages the underwriting case where he assigns the work, checks progress and obtains specific deliverables for quote preparation  Real time business context of the case available for all to view e.g. underwriting experience/observations, client, policy and quote documents Tailor-made business features:  Use of previous offers – copy quote functionality including copy from current policy administration system  Automated printouts of quotes, policies, authorization reports, surveys  Detailed historical policy data  Business relationship/offer histories with clients and brokers  Real time data queries providing data both from the new system and from other integrated systems, user’s data sets available to export for analysis. Managerial Reports and Queries  Process analytics real time and historical performance  Business analytics for Sales production, Underwriters production, Policy history, Loss history, Quotation history, Broker history 3.1 Business All three major groups of stakeholders i.e. shareholders, customers and regulators were impacted positively: Generali CEE Holding: Gained the ability to view the process in real time, and to better manage processes according to company standards. Business processes involved are specified on the following page.

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GENERALI CEE HOLDING Customers, Sales Force and Brokers: The ability to view, at a glance, all the opportunities in the sales pipeline and to initiate business directly from the process:  Easy to use, real-time reports  Integration with the brokers’ portal  Ability to see who has made the same request for the same client Supervision, audit and compliance:  Support for referrals’ activities from member companies to Generali CEE Holding Underwriters  BPMS provides detailed activity log making clear who made what, and when. Figure 1: Reports enable sales management to glance at all the opportunities in the sales pipeline and to initiate business action directly from the process Figure 2 – Quote process covers risk evaluation and quote preparation, authorization, issuing quote for the broker/client and finishes with issuing insurance policy The functions and steps covered by the Underwriting Process include: Register Request  

Search and define client & Check for duplicity Specify broker(s) and brokerage, Line of Business, working team

Prepare Quote  Specify coverage (Risks, limits, sum insured, premium, rates, PML…)  Outline insured items & define insured locations (address, territory)  Specify reinsurance and coinsurance structure (shares, fees, roles…)  Upload & generate XLS/PDF/RTF/HTML documents from templates  LCE/Risk management workflow: risk grading & reports, site visits, MFL  Pricing - import of calculations done by MS Excel based pricing tool Authorize Quote  Self-Authorization & Generali CEE Holding Authorization  Intra-company authorization according to authority level  Board of directors override Issue Quote  Issue official quotation to client; check delivery and acceptance  Adjust the quote according to broker/client feedback Issue Policy  Specify premium installments calendar

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GENERALI CEE HOLDING  Specify policy data such as dates, policy number, various attributes  Modify coverage (automatically transferred from quote) Process Architecture We used process design principles based on RIVA method6 with BPMN 2.0 as the implementation standard. The RIVA method identifies processes as lifecycles of essential business entities. Our Process Architecture consists of: Process Entity

Process (Entity life cycle)

Collaborative Processes

Coverage request

Manage Underwriting

Quote, Manage Opportunities, Manage Partner Account

Quote

Quote

Evaluate Quote, Quote, Issue Quote

Policy

Issue Policy

Quote, Finalize Policy

Insurance Partner

Manage Partner Account

Manage Underwriting, Quote, Finalize Policy

Insurance tunity

Manage Opportunities

Manage Underwriting, Manage Partner Account

Product

Prepare Product Quote

Quote

Document

Manage Documents and Communications

Manage Underwriting, Quote, Finalize Policy

Oppor-

Authorize

BPMN 2.0 allows business needs to be captured and processes to be executed according to desired behavior. The process/application design and implementation consisted of six definition/implementation steps:  Process maps (51 processes, 713 process elements implemented)  Data models (218 master entities, 209 parameterizations)  User interfaces (2300 user forms including sub forms)  Business Rules (6100 business rules and expressions)  Participants (21 business roles, 11 user skills, 28 user groups and 27 locations)  Integrations (12 interfaces) Maintaining the process lifecycle We use an agile approach to capture and implement user needs. This enables continuous process improvement and helps to close the user feedback loop. The automated deployment features are used for production deployments on a weekly basis. Process cloning During the course of the project we discovered that processes designed for one Generali member company were too complex to adopt for other members. By cloning these processes, reusing the shared data model and localizing the process, we were able to quickly develop tailor made processes that better suited different members. For example, the first bespoke quote preparation processes were produced within the first month of implementation. Run time adaptability Using BPMN features such as standalone sub processes triggered by events parallel to main process flow, we are able to provide users with high degree of runtime flexibility. The same applies for the Case Management features described below.

6

See e.g. the book Ould, Martyn A.: Business Process Management: A Rigorous Approach.

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GENERALI CEE HOLDING 3.2 Case Handling During implementation, it became obvious that some of the user requirements were hard to handle with a “fixed workflow” approach. These were requirements like:  Underwriters’ ad-hoc decisions to involve other participants in the case  Ability to assign several team members to the case and allowing them to work on the same activity at a time of their choice  Multi-level authorization (=supervising + approving) activities e.g. within an insurance company, within Generali CEE Holding Corporate Risks department, within teams dedicated to a particular insurance line of business The advantage of the selected BPMS is that it is fully data-centric7; business entities and their relationships are defined and stored in common Entity Relationship fashion (we work with MS SQL Server and Oracle). Within this environment, Case Management was implemented via standard BPMN building blocks, such as inclusive gates, signals and standalone sub processes (see figure 3). Cases handling: before and after Before the project, the underwriting process was mostly manual: MS Office/emailbased. These processes lacked visibility, structure and transparency. The organization now benefits from process automation, including offer & policy preparation, pricing and business rules (underwriting guidelines) enforcement. BPM captures most of the business logic including case management, which has impacted the following areas:  Processes connected across several departments and authorization levels: The underwriting process is managed through an automated case; items flow across several company departments within a particular member insurance company (Underwriters, Loss Control Engineers, Reinsurance Specialists, and Product Experts) as well as within Generali CEE Holding Corporate Risks department.  Support for parallel offer preparation: offers can now be prepared in parallel via multiple sub processes, each part being prepared by specialized underwriter. Once the quote preparation process is complete and the clients’ business requirements have been set up, one or more quotes can be merged into one or more insurance policies. Alternatively, offers can be split into multiple policies (i.e. “policies” sub processes) through automated procedures.  Broker portal integration: This capability is in production in Generali Hungary. Broker staff (1000+ insurance brokers) are able to prepare “Request for Insurance coverage” directly from a web portal integrated with Pipeline Management and Underwriting processes. A quote prepared by the underwriter is delivered directly into the broker’s case folder which can then be managed in a fully automated manner; a huge leap from the previous MS-Office/email “Case management”.

7 Data centricity is key feature enabling for case management. See figure 13-3 and its description in the book Swenson, Keith D.: Mastering the Unpredictable: How Adaptive Case Management Will Revolutionize the Way That Knowledge Workers Get Things Done

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Figure 3: Quote preparation Case Management process. Insurance products can be assigned to dedicated users. Senior underwriter – Case Owner decides to accept selected product quoting delivery and/or finish quoting, if required.

3.3 Organization & Social Operations The impact of moving from paper based systems to automated and efficient processes has made employees more involved and productive. Prior to implementing BPMS, individual member companies’ practices were mostly local. Now, this information is made available centrally, enabling business people in different countries to learn from each other and share know-how.

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GENERALI CEE HOLDING BPM Central Team To support reuse and best practice sharing, we formed a central BPM team consisting of six people. This team is responsible for project management, business analysis and application implementation and maintenance.

5. HURDLES OVERCOME 4.1 Management During the whole course of the project there has been strong management support and commitment.

4.2 Business The project was delivered alongside daily business activities. This required dedication from business people as in addition to their standard tasks, they also got involved in the project roll-out; creating time pressures on business staff involved. 4.3 Organization Adoption The project team has adopted an agile approach to get maximum use of business people engagement and to create the best feedback loop for progression.

6. BENEFITS 5.1 Cost Savings / Time Reductions BPMS has enabled Generali CEE Holding to completely transform manual processes resulting in significant operational risk reduction:  Workflow automation across company departments as well as within the Generali Underwriters Department.  Structured processes for pricing, policy preparation and decision making  Elimination of data entry and duplication into several applications  Quote/offer preparation time reduced by 30-40 percent in Generali Slovakia  The most complex policies (50+ coverages, 100+ insured locations) renewal required more than one day to enter all data. With full integration to the legacy system and with tailor made business logic support, the renewal time was cut to one to three hours in Ceska pojistovna.  Complex offers can now be prepared in parallel; merged and split; all of which improves customer response times  Real time check for Quote duplicity  Real time business portfolio snapshot available  Simple and well-structured business portfolio reporting  Brokers portal integration in Generali Hungary allows brokers to instigate new business Cost savings gained specifically as a result of choosing our BPM solution include:  Reuse, enabling cost effective deployments into member countries  Competitive pricing: chosen BPMS initial cost was 50 percent of competitive offerings; a figure likely to rise to 90 percent cost savings as more member companies use the platform. Savings within internal IT department The nature of the solution means there is far less burden on IT to spend time and money on system maintenance:  User requirements can be conveyed quickly & process changes made instantly

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Reusable elements mean that processes can be quickly adapted to fit the needs of other member groups, with minimal programming or IT involvement.

5.2 Increased Revenues Increasing revenue was not the primary goal. However increased revenues are expected to come from enabling underwriters to focus on more value added activities e.g. client support, risk assessment etc. which currently can’t be quantified.

5.3 Quality Improvements 

  





Increased productivity: Data duplication eliminated while automation enforced structured processes for pricing, policy preparation and decision making. Case Management: Implemented case management capabilities allow for business aligned automated process support, such as several levels of authorization. Compliance & audit: Documents are now tightly tied to the process, making them easy for employees to access and search. The process audit is now fully automated. Pipeline management: Is now fully integrated with the Underwriting process. In Generali Hungary, where 95 percent of corporate business is managed by brokers, the ability to view the pipeline from the online portal brings competitive advantage. Improved business insights: Business data is available in real time which gives more control to employees and allows for better process management and improvements, using the out-of-the-box reports and KPI metrics. Improved access to insurance "know how": A central knowledge repository provides real-time access to all insurance experience data, as well as a full log of the client/broker business relationship, enabling junior underwriters to benefit from their colleagues’ experience. There is also a centralized view of offers history.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 6.1 Best Practices and Learning Points     

Use BPMS & BPMN to capture business logic including Case Management Keep user forms manageable & simple, to avoid complex adjustments later Develop dedicated forms for each insurance product to increase user satisfaction Take the agile approach rather than Waterfall methodology Put the integrated data model at the heart of the process

6.2 Pitfalls    

Don’t underestimate the number of people you need to interact with e.g. to capture requirements and to perform user tests and training. Don’t invent new processes at the same time as building the application Don’t assume one process will fit all; the difference in business logic between our companies was only 10-20 percent, yet one process was too complex to manage. Consider building dedicated clones of the process while sharing the data model since this will significantly reduce the complexity and simplify management.

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GENERALI CEE HOLDING 8. COMPETITIVE ADVANTAGES The immediate competitive advantage comes from the automation of our highly sophisticated business processes. The level of process automation and flexibility we have achieved can’t be easily matched by any Out of the Box Insurance solution available. Our typical Time to Market is now below one month. Over time, the process design will evolve for collection and accumulation of underwriting experience within the system as well as developing more tailor made features (e.g. Offers and Policy printout templates) which will significantly help to share best practices among Generali CEE Holding member companies.

9. TECHNOLOGY We selected Bizagi BPMS to model, automate and execute our business processes. Infrastructure The solution is built upon Bizagi BPM Suite Enterprise.NET 9.1.8 running in virtualized cloud environment. The underlying infrastructure is formed by MS Windows 2008 R2 Server, IIS 7.0+.NET 2.0 and MS SQL Server 2008 R2. The layout of the production environment is two 8-core Windows + IIS application servers backed by one SQL server. Integrations Our solution is integrated with several other internal IT systems including existing policy administration systems within companies, registry of corporate entities, and database of country addresses. Our project makes use of BPMS integration capabilities including web services, data virtualization/replication, email support, LDAP, Component Library, just to name a few:  Replication and virtualization of data entities enables us to integrate historical insurance policies data into the application  The historical policies are fed from flat files via SFTP batch job into the source databases  Consuming various Web Services exposed via participating insurance companies’ ESBs  Java EE component running in JBoss AS 7.1 container connecting to Lotus Notes application via N-RPC/DIIOP interoperability protocol  Online connection to the national corporate entities registry in particular country via HTTP protocol and XML messages  Access to third party geocoding (addresses, flood zones) database Data-centric system Selected BPMS architecture delivers full data access across applications and processes. This allows us to retain our core business logic and quickly adapt it for the localized needs of member countries. In addition, we also make use of its data virtualization capabilities. Once the external data gets virtualized, that data can be handled as if it was local, meaning that users don’t need to become pre-occupied with physical data locations. This way data and the process are linked together. It is this data centricity that delivers business agility for the development and allows for case management.

10. THE TECHNOLOGY AND SERVICE PROVIDERS Selection process Potential options were assessed on their ability to deliver process support, analytics and workflow through the whole corporate insurance lifecycle. We did not initially pursue BPM as an option. We considered an Out of the Box solution but that did

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GENERALI CEE HOLDING not offer the integration capability, while the in-house solution was expensive to adopt for multi-company and multi-language. We downloaded Bizagi’s modeling and automation tools for free, and found them easy to use. In fact we were using it within the business in just two days. We asked Bizagi to deliver a proof of concept for an underwriting process, which they did in three weeks. Bizagi was half of the price of the other systems we evaluated. Business Process Management System Generali CEE Holding selected Bizagi (bizagi.com) for the implementation of the BPM initiative. In Bizagi, most of the common and re-occurring requirements in process automation have been pre-built. These refer to:  Control and visibility: graphical real-time monitoring (who, what, when, where)  Alarms and notifications: generated by exceptions to SLAs or non-compliance  Business data design: enterprise class modeling, reusable across applications and processes  Performance analysis and reporting: graphical reports with deep insights into operational performance by process and activity  Process versioning including sub-process: activity forms versions and support for process clone and copy  Auditing and traceability: who changed what and when  Workload routing & balancing: graphical editor to define work allocation rules  Business rules: graphical design of business vocabularies and policies  Web Portal: customizable, multiple languages and multiple time zones  Corporate features: .Net or Java, multi-tenancy, BPMN process engine, long lasting process transactions, enterprise data model, among others.

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HCL IBS, United Kingdom Banking and Financial Services, Back Office Optimization Nominated by Corporate Modelling, UK 1. EXECUTIVE SUMMARY / ABSTRACT HCL IBS is an outsourcer carrying out policy administration and affiliated services in the UK closed book Life Assurance and Pensions market place. We deliver those services to demanding commercial SLAs, cheaper than the insurance companies with whom we contract and we have to make a profit! Our client contracts are on a “per policy” basis so revenue from those contracts reduces year on year in line with the attrition of each book of business. HCL IBS also have to meet stringent and emerging UK regulatory requirements. In 2009, as a response to this challenge we began a journey to deliver immediate reductions in operations costs (c.30%) and ongoing ability to control costs whilst improving people productivity. The Operational Excellence (“OpEx”) project was initiated to design, build and implement a Transaction Management Solution. The design was to be owned by the business, supported by IT and relevant professionals. The overriding principle was to develop a model that embraced end to end transaction processing where work could move seamlessly through each process step from start to finish – a factory floor approach! Supported by philosophies of “one and done (where a single interaction completes all or part of a process), “no case ownership” and queue management. After a year’s hard work we created an environment enabling our business leaders, to manage throughput of work, assess and improve their team’s productivity and utilization, assess and remedy any skills shortages real time and manage their SLAs and KPIs in line with evolving client and regulatory demands. We have benefited from more than a 15% increase in the number of transactions processed per person (FTE). This has been a key enabler to delivering more for less. Within the first year, we also realized a progressive reduction in overall operating costs of c. 15%. These savings have enhanced our competitive standing and reputation allowing us to profile new opportunities to gain market share. In addition, upcoming releases and implementation of improved and additional workflow functionality will cause further savings putting us well on track for our targeted 30% reductions.

2. OVERVIEW HCL has more than 95000 employees providing integrated services covering BPO operations, software development, testing and infrastructure support services for more than 100 customers globally. The financial services vertical contributes more than 25% of HCL’s revenues and employs 13000 people. HCL IBS Ltd, a UK subsidiary of HCL and part of the financial services vertical, is a provider of outsourced life assurance, pensions and investment administration. We manage and service closed life and pensions books for leading financial organizations and are responsible for complete end-to-end processing and associated services. We are also directly regulated by the FCA. Our presence in the UK closed book life and pensions business is significant and we, in the main, adopt a platform based approach servicing over 1 million closed book policies with a diverse range of features and benefits.

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HCL IBS, UNITED KINGDOM Insurance companies outsource their policy administration (and other functions for three reasons – to achieve reduced and certain cost, to ensure improved productivity and to pass on operational risk. HCL IBS must meet these requirements whilst working in a heavily regulated environment and ensuring that our clients customers continue to receive a great service. Being a “closed book specialist”, our revenue (which is contracted with each client to be on a per policy basis) reduces in line with the reduction in numbers of policies in force. This reducing revenue streams has also been significantly impacted by customers’ financial awareness, volatile economic markets and the adoption of increased regulation. Together, these have increased operating costs which are borne by us, the outsourcer. HCL IBS were initially able to counteract the ongoing reduction in income on the aforementioned contracts through BPR, Six Sigma, KAIZEN and other initiatives. However, the benefit of these faded over time and this combined with varying levels of platform functionality, a reliance on manual workarounds and a vast range (c.4000) of different product types all reducing in number meant that we needed something more substantial that would change attitudes and behaviors across the breadth of our organization and enable the delivery of sustainable large scale change. It was felt that, especially given the ongoing changing face of UK regulation, that a robust and flexible solution owned by business users for the business would ensure a level of engagement most likely to refocus hearts and minds, creating a common goal and shared vision of the future. Nobody can change a culture, but we wanted to create an environment where the desired culture would emerge Our approach was to document the principles, philosophies and outcomes that we wanted in place and having done this we invited a number of workflow/MI suppliers to tender. The contract was awarded to Corporate Modeling a company already providing BPMN based modeling, process analysis and workflow technology to the market. They also understood our approach and our desire to put an in embracing Transaction Management Solution in place. To achieve the required model and to achieve the necessary increases in productivity, utilization and throughput, we had to start from the ground. We had to redefine people’s roles and align them to the new principles and philosophies. We had to ensure that performance management measured the correct behaviors and were also suitably aligned. Most importantly we had to design and build supporting workflow and MI tools that would allow us to run the “factory” the way we wanted. Identifying what we wanted led us to the following approach:  Enable straight through processing; analyzing and challenging existing breaks in each process (hand offs)  One and done; try to have one person at one interaction complete the work in a single step. Work allocated to the right person who is competent administering the same activities on a regular basis.  Encourage a more suitable culture; get everyone onboard with the concept of “QPP”:  Queue - processing by distinct queues to aid throughput.  People - skills and resource management.  Performance - qualitative, quantitative work ethic and recognition and reward scheme.  Create our own USP a roadmap built on a factory model. Fast, efficient, compliant and low cost.

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To create a more compelling new business model where OpEx encourages prospects to move to a seamless processing model and enables HCL to price competitively without necessarily being platform dependent.  MI delivered that is simple but critically relevant, accurate and timely.  Rapid deployment – targeted implementation in 4-6 months sitting alongside in place platforms therefore not necessitating migrations.  Empower our users through business ownership of initiation, development and implementation of process change and improvement through productive dialogue with other stakeholders (i.e. IT and compliance).  Measure everything; if you can’t measure it you can’t justify change The project highlighted a number of challenges. As soon as the OpEx principles and philosophies had been agreed, operations staff were empowered to draft a more detailed operating environment. The dialogue with both the chosen vendor and with internal stakeholders was critical to ensure that the solution and supporting technologies were aligned to what the business wanted – rather than being sold something that was off the shelf! We wrote a request for tender that stated the strategic goals as well as the underlying principles such as:  No impact or critical dependency on existing systems as this would slow delivery and take longer to test.  Minimal IT involvement after initial set up and configuration.  Needed no specialist training to operate.  Needed end-user reporting and analysis as soon as we knew what it was we needed.  Management sees health of business in minutes. A shortlist of vendors were given the opportunity to show us their BPMN based products but only one; Corporate Modeling, understood what we were trying to do and were willing to change and enhance their existing workflow and MI solution to meet our needs and to help crystallize our vision into a tangible solution that would reduce our costs and manage/mitigate key business risks. After a year’s hard work, we had created our vision of Operational Excellence. The resultant program delivered a new way of working, an opportunity to achieve a leaner more efficient workforce and the ability to analyze and continually improve our organization and we have not stopped there. We have turned into an organization which is continually learning and improving and works in partnership with IT to deliver change. We are, we believe, the epitome of the Agile Business Process Company.

3. BUSINESS CONTEXT HCL IBS is a mid-sized company providing business process outsourcing solutions. Operating out of four sites in two countries, we needed a new philosophy and approach designed by operational managers for operational managers. With the implementation of the OpEx platform we have evidenced a cultural and behavioral shift. OpEx has made it possible to deliver claims earlier, contribute to improved servicing and complaint resolution, streamline multiple touch points, reduce operating costs and increase client and customer satisfaction. The human element realized its potential through performance management. Our staff were provided new job profiles and with improved management information we were able to actively support personal development plans relevant to our business needs and reward-based outcomes. Clear learning tools, supporting controls

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HCL IBS, UNITED KINGDOM and governance help encourage a positive working environment and this makes a world of difference. A fully engaged workforce allowed us to deliver the project in a timely implementation period with positive responses pre and post launch enabling further benefits.

4. THE KEY INNOVATIONS Key innovations from the OpEx project included:  a whole new mechanism for defining business processes, allowing users to define processes as linear and removing the complexities of BPMN notation, replacing this with data-driven parameters that can be controlled by the team-leaders and the workforce users.  a new way of managing the team based workforce, using daily one-to-one meetings and a rigorous continuous daily assessment of productivity, utilization, time management, skills and competency, activities and work ethic - to do this we had to split processes away from case management therefore moving to an environment with no case ownership.  a unique fully integrated quality assurance toolkit as part of the core workflow architecture, providing open and closed QA, peer review, checklists across all our processes.  a new integrated complaint categorization toolkit including automated regulatory report generation.

Figure 1 – OpEx overview: About the people, the processes and the technology

4.1 Business OpEx provided HCL IBS with a new way to optimize its working practices, many of which were a legacy of manual processes, a plethora of product types and process steps that are abundant in the financial services. The project has resulted in a huge demonstrable increase in productivity, utilization and throughput, resulting in increased service quality for our clients and their customers at a lower cost to ourselves.

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HCL IBS, UNITED KINGDOM The solution is user friendly and easy to understand. In addition, the business now has a common platform capturing key business metrics necessary for achieving its service level agreements internally, to the clients and to the regulatory bodies. The platform delivered a multi-sited queue management capability, clear responsibility for task based processing, uniform metrics and clear benchmarking capabilities and is able to manage high-volume processing and continues to aid the elimination of inefficiencies and non value add, costly activities. Through data analysis, we are able to continually meet the changing regulatory and economic world, and most importantly grow our business. 4.2 Process The original HCL IBS model was heavily built on an organizational tree structure, hindered by client centric processes and a dependency on key persons. Our model was somewhat dictated by contractual obligation and grandfathered employee agreements. Our old administration system workflow was based on the ability to ‘choose’ cases to be processed from an ordered workflow queue and the user then being able to ‘own’ this case through to completion. It did not consider prioritization, effort, resource or competence, and required line leadership to manually collate and distribute work types. The concepts of get next, one and done and no case ownership did not exist. OpEx is intelligent and works in conjunction with our staff. It is built on the basis of FIFO (first in first out) processing requiring staff to select the next available price of work. With the introduction of business rules as evidenced in the slide below, the work is ordered into queue based structures built and owned within the operation.

Figure 2 - OpEx has data-driven filtering, ordering and skill definition in its work allocation

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HCL IBS, UNITED KINGDOM OpEx incorporates contractually agreed KPIs, skills and competencies of the person, product specifications and a host of other attributes. It actively uses this information when capturing a new work item to then push it to the workforce user who has skills to process the work. If for any reason they can’t perform the work, they can refer the case to their superior or a specialist process team all managed by data setup. The work is captured in queues and is grouped under owners who actively manage the clearance of their daily target. They are able to access all resource, managed capacity planning and update competence in real-time. The organization is defined in an organizational chart painter and then the processes’ and activities’ ownerships are assigned to one or more organizational chart department. Similarly, roles and responsibilities are also painted and used to define permissions, reporting authority, MIS templates and many other features.

Figure 3 - OpEx allows users to paint their operational organization and process allocations as well as change these real-time through simple “drag and drop” functionality. As stated above OpEx is based on a “get next” philosophy where the system knows what’s best for the workforce user and what’s best for the company. Team leaders can adjust priorities if needed based on emerging business requirements as well as who has access to which queues of work associated with the process activity. This ensures the right work is allocated to the right person all the time. Generally, the system works on a FIFO basis as this relates best to a queue driven process mentality. OpEx supports multiple role definitions, such as:  WFU: a workforce user  WFTL: a workforce team leader, who manages a team of WFUs  WFM: a workforce manager who manages a team of WFTLs All have real-time dashboards showing outstanding work, completed work and estimates for the resource required to complete the work governed by the prevailing service delivery model. Key business metrics include performance management reporting (average and actual handling times for an activity and class of case which are part of the continual improvement process), quality (right first time), straight-

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HCL IBS, UNITED KINGDOM through processing and customer satisfaction. OpEx statistics are used as part of the business case for changes in underlying systems, processes and procedures.  OpEx uses properties of the case payload as skill identifiers. In our case we hold:  Relevant platforms (our back-end systems)  Life or pension: a class of policy  Plan type: the type of policy  Investment type: how the insurance plan is dealing with assets  Issuing company: who issued the policy with the client group These are held against the payload, as well as against the workforce users who need to be skilled and authorized in these as well as authorized for the process and activity. Processes are developed with activity based steps to enable the delivery of an endto-end model. The process is built within a BPM tool and loaded to OpEx. This was delivered by the business and was built with a clear understanding of procedural requirements, business interactions and all touch points. OpEx simplifies the traditional BPMN models by using a data-driven approach while BPMN is used under the hood. The user-interface is primarily straightthrough linear process modeling.

OpEx reports and dashboards are user-aware and adjust to show the information on the processes, activities and WFU’s relevant to the individual’s role. OpEx reports support multiple formats including:  Calculation sheets: similar to a spreadsheet, these calculate using realtime data, driven by end-user defined parameters and formula  Quick reporting: end-user reporting wizard to extract key datasets for analysis  Advanced reporting: as above, but allows end-users to create traditional reports with headers, footers, charts etc.  Charting: a set of manager or MIS charts that can be created into dashboards by the end-users or administrators.

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Figure 4 - OpEx has real-time sophisticated end-user reporting

4.3 Organization & Social OpEx has been transformational. As we rolled out the new methodology and philosophy the whole company’s attitude to work and quality has been enhanced. Rather than having a few bespoke centers of excellence, we have succeeded in raising the bar across the board. OpEx was conceptualized by champions and built by staff at the grassroots of the business. The champions lived and breathed all aspects throughout the delivery phase and their passion is now evidenced though our posters, ongoing learning and development, and a passion for continuous improvement. The appetite for information to enhance our business model is limitless and through well-considered and controlled delivery, we continue to reap the benefits alongside our clients and their customers.

5. HURDLES OVERCOME 5.1 Management The main issues the management had to resolve were concerns from employees that the change was too radical. We were planning to replace archaic and embedded operating cultures and behaviors. This combined with the complexity of bringing together a multi-platform legacy system, sites and clients into our holistic OpEx vision did prove too much for some. We addressed employee concerns by introducing development days and feedback sessions that encouraged buy-in, generated enthusiasm and a willingness to change ensured the transformation was successful. We adopted an open environment and listened throughout the project. Values were addressed by gaining senior HCL management (C level) sponsorship to our vision.

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HCL IBS, UNITED KINGDOM Operations management were encouraged to invest time in the principles of our model and through new real-time information engaged staff each morning, held daily team huddles and shared regular targets achievements. All management displayed the right behaviors, lead by example and supported continued improvement in the operating model. OpEx was a defining moment in our leadership approach. The direct move away from management that was built on experience in process was replaced by inspirational leadership based on people, performance and targets. 5.2 Business The major challenge from a business perspective was gaining approval for the financial investment in the vision. It required a leap of faith by those approving the necessary expenditure as we were moving the operational element of the business to a completely different model and replacing one which had been in place for many years. However, once approval had been given the journey from OpEx conception to pilot in a year demonstrated how our business as a whole adopted the new work approach. Everyone involved in the project were passionate as understood the expected outcome, they had a clear vision and this dedication ensured we were able to overcome each issue and launch to production on time. The successful implementation has reduced our operating costs associated with policy administration, duplication and hand offs considerably within a twelve month period. That value continues to be evidenced through year on year cost savings therefore justifying the leap of faith! 5.3 Organization Adoption OpEx was trialed on one of our customer accounts. It was a success and we rolled the system out across all client portfolios within the operation. An unexpected outcome from OpEx highlighted internal dependencies which are now being added to the OpEx platform to ensure we have complete visibility of our universe – such functions include Compliance, Actuarial and Finance.

6. BENEFITS 6.1 Cost Savings / Time Reductions We have benefited from more than a 20% increase in the number of transactions processed per person (FTE). This has been a key enabler to delivering more for less. The improved throughput of work together with an increase in “right first time” processing means fewer delays - a major source of customer dissatisfaction and complaints. As a consequence, we have halved the number of complaints received, strengthening client relations and enhancing our position in the BPO market. Within the first 18 months, we realized a progressive reduction in overall operating costs of c.15%. These saving have enhanced our competitive standing and reputation allowing us to profile new opportunities to gain market share. 6.2 Increased Revenues As a business process outsourcer in the closed book marketplace our revenue on existing contracts reduces over time. As such, our revenue has not increased as a consequence of OpEx, however the cost reductions we have achieved have increased profitability and are now allowing us to compete more effectively for new business with market leading pricing models which we could not have previously done without both the system and the metrics to back up the complex bid processes we undertake.

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HCL IBS, UNITED KINGDOM 6.3 Quality Improvements OpEx is built to deliver quality assurance controls through various internal mechanisms. Peer review – developed and available to all required processes. It is dynamic within the linear model using competence and resource alignment to ensure correct allocation of work with no manual intervention. We capture peer review volumes, effort and outcomes each available to engage root cause and process improvement initiatives in addition to process and performance management. Key improvements include:  

reduction in offshore rework improved learning and development plans for staff that meet business priorities  OpEx’s trend analysis provides actual data for changed business cases. Checklists – defined “pop-up” screens within each process and activity. These capture user-agreed activities and approvals necessary to drive the straight through processing. We have developed these further to accommodate procedural and audit controls. Key improvements include:  reduction in internal and external audit findings  accountability enforcement  improved learning opportunities  less time to achieve competence on multi-platforms and products. Independent Quality Assurance built in the toolkit routes all activities to the quality system for open (captures right-first-time and potential customer detriment information) and closed QA (actual customer detriment) allowing in process QA to be carried out efficiently. Real-time error recording, action setting and closure is all managed between the administrator, assessor and line leader. The system flexibility is able to support all our clients’ demands, including QA capture by user, process and volume. M.I. is captured real-time, daily and month end. Key improvements include:  ability to capture and analyze a customer’s journey.  actions and outcomes traced and evidenced.  improved staff interaction with quality associates.  personal/unique staff development plans.  increased end to end handling times.  client satisfaction, including re-engineering control questions and a cyclic approach enforcing actions in month two and three.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Keep processes linear and track any hand-offs  Integrate all business functions to ensure accountability  Map internal and external key performance measures  Show everyone real-time data  Use peer statistics to motivate laggards  Use real team leaders as system set up and administrators  Assign users to busy teams daily from less busy teams

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HCL IBS, UNITED KINGDOM Capture business re-engineering opportunities in the project Do not be afraid to change the business model; allow it to evolve as this is more likely to deliver the most effective and efficient outcome  Business owns solution working collaboratively with other stakeholders. 7.2 Pitfalls  Don’t underestimate the true number of process steps (some may not be apparent in legacy world)  Don’t use existing or pre-built MIS. Ensure business requirements understood and develop accordingly  Don’t underestimate the size of the project.  

8. COMPETITIVE ADVANTAGES

HCL IBS has now become one of the most efficient companies in the marketplace at BPO for the insurance industry. We have stepped ahead of our competitors with our original advanced back-end administration systems augmented by the OpEx solution - so far ahead that we have cemented a commercial relationship with Corporate Modeling to actively support the marketing of OpEx to other life and pensions administration specialists whilst progressing further functional enhancements that will continue to push current boundaries, enhancing the value proposition.

9. TECHNOLOGY The OpEx solution has two “click once” deployed user interfaces - one for the administrators and one for the managers. Both interfaces have many applets that can be enabled or disabled by job–role - this is administrated by the operational managers. While the manager system is designed to look like a traditional application, the administrator screen is designed and implemented like a mobile phone.

Figure 5 - an OpEx manager interface with quick reports and administrator with a work item OpEx was developed with Microsoft.Net web services providing the application logic. The solution runs on an SQL Server Cluster providing high availability and disaster recover capability.

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Figure 6 - OpEx has high availability and disaster recovery A browser-based solution is in development and all servers are VMware virtual machines. The offshore clients use Citrix terminal server.

10. THE TECHNOLOGY AND SERVICE PROVIDERS OpEx was devised and implemented by HCL IBS and Corporate Modelling Services Ltd.

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HML, UK Nominated by IBM, UK 1. ABSTRACT HML responds faster to customer communications, streamlining workflows for incoming correspondence with IBM Business Process Manager. When your business depends on your clients' trust, you need to make sure that you meet their expectations, not just most of the time, but all the time. As a leading provider of outsourced mortgage, savings and loan administration services for the financial services sector, HML understands this better than most. To ensure that it is serving customers effectively, HML works to strict service level agreements (SLAs), which are agreed individually with each client. The company constantly looks to improve its performance in this area. HML receives up to 30,000 letters, 50,000 emails and 5,000 faxes from customers or a diverse range of third parties each month. Each item of correspondence will initiate one of 80 corresponding processes, depending on the type of request received. We wanted to automate as much of the correspondence handling process as possible. By helping our consultants spend less time on low-level admin and data entry, they can focus on the most important aspect of their job, which is providing first-class customer service. The need: To meet client requirements for its mortgage administration services, HML needs to process huge volumes of correspondence which can trigger a number of differing processes with a high level of content variation within strict SLAs which requires an agile approach to workflow management. Additional challenges to be overcome arise from managing multiple clients, multiple sites and legal jurisdictions. The solution: HML uses IBM® Business Process Manager to orchestrate an endto-end process for incoming correspondence and provide automation, workload management and performance monitoring. The benefit: Customer correspondence is now processed in an efficient manner allowing for improved response times. Saved £400,000 from reduced manual processing and £150,000 from consolidating processing onto a single platform. Flexible solution enables new functionality to be developed quickly, with no need to invest in additional software.

2. OVERVIEW Managing complex service level agreements To ensure that it is serving customers effectively, HML works to strict service level agreements (SLAs), which are agreed individually with each client. The company constantly looks to improve its performance in this area. Our ability to meet SLAs often depends on the efficiency of our internal workflows. A few years ago we adopted IBM Business Process Manager software to enhance efficiency in our collections management processes, and based on that success, we decided to extend the solution to support our incoming correspondence processes too.

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HML, UK Processing huge volumes of correspondence HML receives up to 30,000 letters, 50,000 emails and 5,000 faxes from customers or a diverse range of third parties each month. Each item of correspondence will initiate one of 80 corresponding processes, depending on the type of request received. We wanted to automate as much of the correspondence handling process as possible. If we could help our consultants spend less time on low-level admin and data entry, they would be able to focus on the most important aspect of their job, which is providing first-class customer service. Enhancing workflows Now, when a new item of correspondence arrives at HML, it is scanned and read by optical character recognition (OCR) software. The scanned image is automatically tagged with metadata such as the relevant account number and document type, and IBM Business Process Manager starts a corresponding workflow. The item is then automatically placed in the appropriate queue, and assigned to the next available consultant for processing. The new system allocates work to consultants fairly and makes sure every request is handled in a timely way. If a particular case is more complicated or difficult, consultants can escalate it to their supervisors for assistance – but one way or another, the job gets done. There’s no scope for ignoring difficult problems or putting them to the back of the queue. Improved management information The IBM Business Process Manager solution also improves the level of oversight for managers, by providing real-time analysis of workload and SLA performance. Previously, our managers had to count the number of items in each queue manually, several times a day, just to make sure that we were getting through the work within each SLA. Now, they get a dynamic scorecard that shows exactly how their team is performing on all their tasks – so if one queue is ahead of schedule and another is lagging behind, they can quickly divert resources to make sure that service levels are maintained. Simpler communication Communication within and between teams has also been streamlined. Instead of sending internal emails to each other to ask for information or help, they can now use a new workflow to add work requests to their colleagues’ job queues. This dramatically improves traceability, because once a request is in the system, it can be monitored and tracked through to completion. We have recently extended the work request process so that our clients can use it too. It’s a much safer and more controlled way of handling work requests. Once they’re in the system, we know they will be dealt with – whereas if they’re stuck in someone’s email inbox, it’s more difficult to guarantee appropriate action. Flexible SLA management Over the past 12 months, HML has migrated all of its clients over to the new correspondence management process, and has implemented all the individual SLAs to ensure that each client receives the right level of service. Using the new system HML can quickly and effectively board new clients taking into account their own post management SLA’s and also for specialised cases which are identified such as customer complaints.

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HML, UK IBM Business Process Manager is excellent for managing large numbers of SLAs, because it’s easy to build a core process and then add specific rules and variations for different clients. If requirements change – either for a single SLA or globally – we can update the system very quickly because we have a central point of control.

Business Context Post from customers was received and sorted into department order in HML’s mailroom. It was then scanned using Tower scanning software. From here the image was passed to operational teams via Staffware who would then indexed each item. To index the item the consultant would have to read the document to find the customer account number, search the database and check the customer and client details matched. The next step was to determine what type of post/request the customer was making by looking for key words, phrases and information. For example if the customer was asking for the title deeds to their property. The consultant would then save the item into the corresponding work tray i.e. ‘deeds requests’. The manager of the team would then ask consultants to work on work trays depending on number of items and date. The manager had to manually count work items to determine workloads, in some instances up to three times a day to report SLA’s. This would then be accessed by a consultant working the tray. There was no restriction as to which item could be worked and when and lead to come ‘cherry picking’. Once a work item was completed it was closed and a record was held against the customer account. Similarly requests taken over the phone from a customer were emailed into the Staffware queues and then had to follow the indexing process.

3. THE KEY INNOVATIONS 4.1 Business Strong collaboration between Operational and IT team members was absolutely key to ensuring a successful delivery. 4.2 Process Before: Post, Fax & Email Incoming post, Fax & Email from customers. Consultant scans post and fax and emails external emails to Staffware. The post, fax and email is then indexed by finding the customer account number, validating the client and determining what it is. The item is then routed to a queue waiting to be worked. Managers have to manually count and collate figures for reporting. Consultants manually record work completed.

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After: Post, Fax & Email  Post is scanned and passes through OCR which determines customer details, client and what the request is. The image is passed to the image store, a task is created in IBM BPM and a record is created on the customer account.  Managers have visibility of workloads and SLA’s and can set consultant work filters to direct them to the required task type. Consultants log into the BPM portal and click ‘get next task’ which presents work in priority order. Client reporting is automated as is consultant productivity. This system cannot exist as individual components but has to be integrated to provide a robust method of managing inbound correspondence.

Before Customer requests taken over the phone. Internally created requests. Consultant creates request and has to copy customer details onto email then sends email to Staffware. The email is then indexed as per post and sits in a queue waiting to be

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HML, UK worked. Managers have to manually count and collate figures for reporting. Consultants manually record work completed. After

Customer requests taken over the phone. Task created in BPM. Task is then worked alongside post, email & fax in line with SLA’s.

4.3 Organization  Management of work is simplified, controlled and automated where possible.  Managers now have full visibility of workloads using real time dashboard reporting which give an instant view of key data such as SLA reporting. Allocation of resources is easy and controlled. No work items are missed, consultants are accountable and the playing field has been levelled by removing the opportunity to cherry pick work.

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HML, UK 4. HURDLES OVERCOME Management We found that some areas of business management had become very comfortable with how they legacy system worked and often found themselves describing current system ‘features’ when specifying requirements for the new system. Always asking ‘why’ a certain process was completed, what is the problem, what were the benefits, does it ever fail and what would success look like. The challenges helped create and focus on the key goals and objectives. Agile tools and techniques helped massively along the way. Business A key hurdle was the perception that everything had to be done at once rather than a more staged approach. Encouraging the senior user group to embrace uncertainty and prioritize what needs to be done now and what can wait. Challenging requirements that were based on today’s limitations was also key to driving out an efficient process/system. Process mapping and demonstrations gave the user group visibility of the system all the way through. We got sign off to smaller portions as we went rather than a huge set of requirements. Organisation Adoption By promoting the success of previous projects with BPM at their heart we had a much easier path to organisational acceptance of the technology to be used. We did however have a legacy system that was 10 years old and very familiar to a lot of users.

5. BENEFITS 6.1 Cost Savings HML has realised benefits totalling £400,000 from the reduction in manual processing workload that has resulted from automating various aspects of the correspondence management process. In addition, HML has achieved annual savings of £150,000 by consolidating correspondence processing onto the IBM Business Process Manager platform.  All productivity savings were determined by analysing actual and projected volumes and time saved per item.  Process efficiencies derived from:  Reduction in manual indexing and routing of post items  Reduction in manual indexing of archive items  Elimination of indexing of internally generated email  Reduction in time spent creating internal email  Reduction in time spent indexing external emails and faxes  Auto populating customer details in the legacy system  Enhanced automated reporting  Scanning enhancements £150,000 saved by adding the correspondence component to existing BPM estate. Additionally the cost to run and maintain a separate infrastructure for correspondence is removed. 6.2 Time Reductions Post can be processed straight through from scan to user in a matter of minutes rather than hours. Having items quickly available has also assisted our contact centre handling calls from customers.

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HML, UK 6.3 Increased Revenues HML’s Clients benefit from a number of features:  Customer post, Fax and Emails can be dealt with quicker  Elimination of manual intervention ensures greater accuracy and compliance with client SLA’s  IBM BPM allows far greater flexibility to adapt to changing business requirements. One change can be applied to many clients. 6.4 Productivity Improvements The company has also seen an improvement in average response times to customer queries. The project has been a huge success in itself, and has also proved the value of our business process management strategy. When we first implemented IBM Business Process Manager, we invested significant effort in integrating the software with our core systems. Since the integration work had already been done, this current project was much quicker and easier to implement – and we expect future projects to be similarly straightforward. The ability to build sophisticated business processes with no major development effort and no further investment in software is a huge advantage for our business in terms of both cost-efficiency

6. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points              

 

      

Agile delivery Demonstrations Collaborative Process visibility Close integration with the operational and IT teams Top down buy in Staged migration from legacy systems Phased business roll out Take every opportunity to simplify Challenge the status quo Look for what can be delivered now and then evolve Incremental delivery is key Prioritise based on customer need Measure the baseline process o Speed – How long does the process take o Cost – What is the cost of the process o Experience – What value does the process bring Involve everyone the process touches Set Expectations o Speed – What time improvements are expected? o Cost – What cost reductions will be made? o Experience – How will the user experience change? Ownership is important for collaboration purposes Close partnership with your BPM provider and 3rd party resource providers. Transformation Changing the cultural aspects of how we work, e.g. Collaborative working and emphasis on face-to-face communication Cross-functional, co-located and empowered teams Making continuous improvement and learning a way of life

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HML, UK       

Learning to accept and embracing uncertainty and change Adoption Learning and Using new working practices, tools, techniques, e.g. Incremental and Iterative development, typically fortnightly cycles Visual Management and techniques such as Kanban Regular ‘customer’ demonstrations Removing variation in repetitive processes through automation

7.2 Pitfalls   

Don’t rush in to a build Don’t prioritise based on what you think is right, it has to be the team Know your baseline to enable clear measurement of improvements.

7. COMPETITIVE ADVANTAGES The correspondence system has allowed HML to showcase what can be achieved through close collaboration between business and IT functions to deliver a class leading product. HML can offer a streamlined correspondence processing solution that can be tailored to client needs. Regulatory requirements can be dealt with quickly and efficiently. HML have real time top down reporting capability for all correspondence, allowing far greater oversight.

8. TECHNOLOGY The key elements of the solution are;  IBM BPM. This has been used to automate the delivery of work items  HML’s Core System. This is the legacy system which maintains the customer account detail  Eflow OCR. This handles the scanning and recognition of post items

9. THE TECHNOLOGY AND SERVICE PROVIDERS HML uses IBM® Business Process Manager to orchestrate an end-to-end process for incoming correspondence and provide automation, workload management and performance monitoring.

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Infosys McCamish Systems, USA Nominated by PegaSystems, USA 1. EXECUTIVE SUMMARY / ABSTRACT The life insurance industry is complex – multitudes of products, different markets, each with their own unique set of processing rules, many policy owners holding multiple policies, spread across broad geographic regions – and each expecting the same customer care they experience when interacting with companies such as Apple, Amazon, etc. As a service provider, supporting call center and back office operations for 36 insurance carriers, this complexity increases exponentially. Call center and operational processes were carrier specific and the outdated/legacy system limitations acted as a bottle neck to consolidate and unify these processes. For every new client/carrier addition, we had to proportionately increase the team size to support the additional volume. Employee satisfaction and motivation levels were low since they had to refer to data from multiple systems to service a call. This was not a sustainable model. We established a customer service optimization strategy (case management and workflow solution) with the main objective of providing the highest level of service possible for each individual customer, while still maintaining the carrier specific processes. Case management and workflow solution developed by leveraging the technical capabilities of BPM software and proprietary insurance industry specific framework of our vendor with our insurance industry expertise in call center and back office operations integrates with any backend systems, thereby providing a unified desktop to our customer service and operational teams. This solution provided the customer service representatives and management with the right tool so they can deliver a customer experience on a highly efficient basis in a cost effective way.  The application presents a single, 360-degree view of the customer in the integrated end-to-end solution - Scan and Intake, Content Management, Policy Administration, Commissions and Agent Licensing, IVR, Claims and Print Management, among others, and combines the information into a single configurable User Interface.  The application keeps track of the execution of each automated process and maintains an audit trail of assigned tasks, the performance of the operators, and the performance of individual processes. Businesses can take any of their key performance indicators, drill down, apply and achieve immediate results.

2. OVERVIEW Growing from a handful of clients (insurance carriers) to 36 different insurance carriers with operations supported by different technology, we realized the need to enhance our service offering and technology and embarked on a customer service optimization strategy. It was directly linked to our overall business strategy of delivering enhanced customer experience and reducing the cost of operations by implementing a best in class customer service platform. Scope: Business: Customer servicing & Claims administration of Life, Annuity & Worksite Insurance business

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INFOSYS MCCAMISH SYSTEMS, USA Objectives:  Improve BPO operational efficiency  Facilitate business process optimization within BPO  Increase capabilities for reporting and management of client SLAs  Establish foundation for functionalized approach to BPO work items (vs client)  Improve scalability of BPO work activities for larger clients  Streamline the process of on boarding new clients  Modernize and Unify the customer service platform to deliver exceptional service, irrespective of Systems of Record  Improve SaaS revenue Team Organization: The key stakeholders of the project were internal to the organization – i.e. platform development, solutions design, marketing and the Business Process Outsourcing (BPO) unit. The BPO unit is responsible for customer service functions. Development Methodology: Early on we partnered with a best in class provider and initiated a Proof-of-Concept (POC) phase to evaluate BPM providers and identify the Return on Investment to be expected. During development of the core systems, agile development methodology was followed to ensure the stakeholders, especially those from BPO Unit, were onboard with the changes upfront in terms of system usage and processes. Changes were managed primarily in three phases:  Playback sessions during the product development phase  Initial soft launch, focusing mainly the “Super Users”  Product rollout in multiple waves. This raised the adoption rate significantly by providing adequate time for internal change and acceptance. Assistance was on the floor during the soft launch for immediate response to issues. There was no need for “big-bang” change communications across the organization due to this approach. Benefits Realized After the implementation, customer representatives were re-organized into functional so that: a) Each end customer experienced the same level of quality customer service across the entire organization and all of our clients; b) They created more opportunity to develop functional expertise to raise the service to the level of ‘trusted advisor’ to the customer.

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INFOSYS MCCAMISH SYSTEMS, USA 3. BUSINESS CONTEXT

Fig 1: Siloed Model – Split By Carrier Prior to the customer service optimization strategy – the organization was structured into client teams based on carrier. Each team had separate processing units due to the specific carrier, channel and product features. BPO Service Team  The team used dual screens for servicing business due to the lack of BPM automation.  Separate process guides were created for each clients.  The team was required to pull up processing guides for each client on the exact processing rules on how to handle the transaction.  Processing rules associated with documents, were integrated into the work flow.  The team could not easily see the entire work flow without accessing the processing guides.  The team could not easily see all the policies the client was associated with.  Workflow processing was segregated from the policy administration system and required the team to access multiple systems to process each transaction and to move the process forward.  Content Management was not integrated into the workflow.  Any process improvements were not automated and when identified, required updates to the workflow and the processing guide.

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Fig 2 – Multiple Touch Points The impact this processing model created:  Inefficient and Inconsistent manual processes  Call handling o High call waiting time, call abandonment o Low First call resolution, call backs and transfers o Inefficient complaint handling and incident reporting  Inconsistent multi-channel experience  Lack of 360 degree customer view  Limited one and done processes  Out-of-date self-service options  Absence of real-time performance measurement and SLA  Hard to compile metrics across channels  Limited Process Improvements  Pull method of handling work, which is less efficient  Processes spanning across disconnected systems  Decision by carrier, product lines, systems in “sticky notes”  Lost opportunity in Business Intelligence to carriers

4. THE KEY INNOVATIONS The objective of the project was to empower customer service representatives with the right tools so they can deliver best-in-class customer experience on a highly efficient basis.

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Fig 3—Customer Centric Service Model Benefits Gained:  Platform Consolidation - Creating an optimized front end which can be layered on top of both legacy and new platforms allowed us to provide our client insurers high level service across all end consumers through one single desktop.  Providing a customer-centric service model, allowing end consumer contact across all channels, with key focus on providing next best actions to our service reps in addition to optimized consumer interaction front end.  Improvement in Operational Efficiency. 4.1 Business Outcome:  20-30 percent Productivity Improvement in our operations  25 percent reduction in average call handle time  30 percent reduction in time to complete after call closure activities  Training / onboarding of new associates reduced from six weeks down to four days  20 percent reduction in re-work  Experience Indicates an ROI of 25 to 30 percent, based on the transactions processed during this period  Traditional, Predictive or Adaptive Models- Extensive and comprehensive support for adapting by continuously monitoring measurable business objectives.  Multi-Tenant Architecture allows for shared process, or client rules while maintaining the ability for product specific rules within the Policy Admin System. 4.2 Case Handling From a case handling perspective, the outcome allowed:  Guiding call center service representatives through transactions without having to reference multiple procedure sources during processing,  Facilitating service across all communication protocols (web, mobile, etc.), irrespective of distribution channel, insurance product or underlying Policy Administration Systems.

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INFOSYS MCCAMISH SYSTEMS, USA         

Individualizing screens to display information as needed, based on information pertinent to the caller (i.e., agent, advisor, owner, etc.), the product or the service request. Improvement in Average Call Handle Time Reduction in re-work Improve the percentage of first call resolutions Reduction in call abandon rate Reduce specialized training / onboarding time Improvement in employee job satisfaction Reduce effort to validate after-call closing /validation activities Interactive and efficient processing to the call center representative

Interaction Driver  Delivers personalized customer interactions  Improves FCR and reduces escalations  Eliminates manual activities Dialogue Management  Personalized experience for each customer  Consistent experience across all CSR’s  Adapt level of scripting to role and specialty Knowledge Management  Re-use knowledge sources from around the enterprise without replication or consolidation  Improve customer experience with personalized treatments Interaction Coaching  Improves CSR performance  Makes every CSR more like your Best CSR  Reduces training time  Improves service quality and consistency 360O View of the Customer  Leverages enterprise data sources without replication or consolidation  Improves CSR productivity and reduces training time Role Based Portals  A common system specialized by role, tasks and experience to manage a customer across the lifecycle  Increased productivity through guided interactions Additional benefits  Many more one and done transactions processed reducing significantly back office processing costs.  Customer satisfaction (More efficient processes, Better service levels, Client specific scripting, Adaptive analytics),  Easier adoption of delivery channels ((Web self service, Mobile, Social media),service orientation (Customer Centric – Easy assembly of data from multiple LOBs, Potential use of Cross-carrier analytics), 4.3 Organization & Social In developing the application we leveraged our service team’s extensive experience in BPO operations and Call Center allowing us to optimize each process for customer interaction. We formed a Center of Excellence:

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After the implementation, customer representatives were re-organized into functional groups so that: a) End customer experienced the same level of quality customer service across the organization for all of our clients. b) Created more opportunity to develop functional expertise to raise the service to the level of ‘trusted advisor’ to the customer “The CSRs feel their productivity has improved significantly with a reduction in after call work time. The updates to policy records and workflow creation are much easier and quicker to perform. For call handling, they like the streamlined access the 360 degree view provides to the most commonly accessed policy information and to validate callers.” -- Lisa Johnson, Head of Insurance & Annuity Operations

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5. HURDLES OVERCOME The project team adopted an agile approach to implement this solution, initially offering integrated workflow, system integration and responses to the questions asked most frequently by our call center clients. The second and subsequent phases consisted of enabling increasingly complex transaction processing and integration points such as the transition to a new document management system. This gradual implementation helped us to circumvent a number of common hurdles simultaneously. Being in a risk adverse industry, our clients are most concerned about data integrity and privacy, followed by customer experience. By implementing the solution using agile methodology, we were able to assure our clients that the strategic direction that our company was taking was not only a safe one, but the right one. This also worked to the benefit of our customer agents who were not required to relearn and execute on a new system from day one. Instead, they were able to easily settle in with the look and feel of the new interface from a very basic perspective, and were comfortable with the application, as more of the functionality and transaction processing was transitioned from our Base Administration System to our case management solution. Management Our Variable Product Administration System has been the backbone of the McCamish Systems, and Infosys McCamish’s service offering for over 20 years. That, coupled with the obvious investment required to implement a new fully integrated front end, workflow and policy servicing system comes with inherent risks and skepticism; however through the extensive due diligence conducted with our business partners, and the vision of our senior executives and system architects we were convinced from the onset that our case management solution, was our future and what would set us apart from our competition. Questions from management perspective are listed below. The project team was able to demonstrate the solution capabilities addressing these questions during pilot phase. :  Return on Investment : This program required a commitment of $5 $6 Million USD. Management was concerned about the ROI from this investment and also whether this is the right investment. The pilot

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INFOSYS MCCAMISH SYSTEMS, USA phase of this solution demonstrated a potential of 25% to 30% ROI and also offering new service models.  Market Differentiator : This solution is designed using insights gained from our vast experience in servicing customers in the insurance industry, combined with BPM capabilities of the vendor framework. Hence, the solution can be quickly implemented / adopted by other customer insurance organizations, differentiating us from competition  Risk of Execution: Developing this solution required resources with BPM skillset, a skillset that did not exist in the organization. The project team partnered with the vendor organization’s training division and put together a training program to train in-house resources and deploy them on this project.  Change Management : Resources in the organization (both operations and application development teams) have been using these legacy applications for more than 15 years. To drive this change, the project team worked closely with business users to implement this in agile methodology and scoping smaller releases instead of taking a BIG-BANG approach. Business As previously mentioned, the Insurance, Annuity, and Retirement marketplace is extremely risk adverse, and while not all consider the industry a commodity, customer experience is key to persistency. Most of our clients have been doing business for years on antiquated, legacy systems which provide stability but lack flexibility. Our policy administration system offered both stability and flexibility, offering short time to market for new products, resulting in a steady increase of policy volume and revenue. When presented with the alternative that our new case management system provided to a linear increase in customer service and administrative resources, the reduction in training and onboarding times, consistent delivery and metrics, coupled with our roadmap of end-to-end processing capabilities, our clients recognized that our case management solution was a better business solution.  Scope Management : Initiated a Six Sigma exercise to identify process improvements and eliminate unwanted operational processes from being replicated on the new solution.  Change Management : Business/Operational users have been using the legacy applications for more than 15 years. In its end state, the Case Management solution was significantly going to change the Operating Model. To minimize/eliminate disruption.  Implemented this solution using agile development methodology, with functionality deployed in small phases.  Bi-weekly play back sessions, so the users are well aware of the proposed solution and actively participate in the solution design. Organization Adoption Expectation Setting :  Managing the enthusiasm and excitement of sales and operational teams, regarding the implementation plan of this solution to our current and prospective clients.  For architecture and development teams to understand that the case management solution was not being developed to replace our existing

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INFOSYS MCCAMISH SYSTEMS, USA System of Records/Policy Administration System, but rather to enhance it through seamless integration.

6. BENEFITS 6.1 Cost Savings / Time Reductions We are applying a Six-Sigma methodology to determine what our actual realized savings and cost reductions are, although the results from our POC and pilot program were encouraging. For our POC we reviewed the current steady state processes that would be included with our initial and subsequent releases and the steps involved for each. We then compared the to-be process against that base line to predict the cost savings and time reductions. During our Pilot program, we used actual Call Volumes, Average Wait Times and Average Handle times from the current steady state and compared those to the time we were seeing post implementation of the case management system. The POC indicated a cost savings of 25 -30 percent. Based on our current experience with 50 percent of the overall project complete, we are realizing a cost savings of approximately 19 percent. Upon completion of the project we expect to see a cost savings of 30 percent. (Additional details can be provided upon request). Important factors contributing to cost savings are listed below:  Effort Reduction -- Information required to service a call is presented by a single application, instead of accessing multiple applications.  Reduction in Training Time -- Training time to enable new joinees reduced from six weeks down to four days.  Individual Productivity Improvement –  Case management solution guides through the next appropriate action, instead of Customer Service Representatives manually processing these activities by referring to process manuals  Reduction in re-work and increase in motivation levels On the development side, we have been able to cut down the development and testing effort significantly (by approx. 50 percent) using the “Wrap and Renew” approach and still deliver comparable benefits to our business partners. 6.2 Increased Revenues Since our case management solution is a stand-alone component capable of cross platform integration, we can now offer our clients SaaS, and Lift and Shift implementation and service models to open up new channels of revenue streams. Once again, the ‘Wrap and Renew’ architecture provides a cost savings as well, by reducing implementation costs and increasing margins. Our case management and workflow solution presents additional revenue options, both for organization as well as our clients (Insurance Carriers). This solution increases the revenue potential for our organization due to the following reasons:  New Service Model -- Using our case management and workflow solution, we are able to offer our services in a SaaS delivery model. In the past nine months, two new client wins has been attributed to this solution.  Stand-Alone Option – Our case management and workflow solution can be implemented as a “Stand Alone” application and can be readily integrated with the insurance carrier’s back end systems.

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INFOSYS MCCAMISH SYSTEMS, USA 

Alternative Option to Policy Data Conversion -- Traditionally, the majority of our new client acquisitions involves policy data conversion from clients’ platforms to our platform. This is time consuming and also involves risk. With the case management solution, we are able to offer our services in “Wrap and Renew” model, using which our clients will start realizing the benefits very quickly (three-to-six month period). For our clients, our case management solution presents  A 360-degree view of the customer, there by efficiently service the customer, resulting in improvement in customer satisfaction levels.  Additional upselling and cross selling opportunity by offering products that better suit customer needs. 6.3 Quality Improvements Complexity and touch-points have an inverse relationship to quality. Where our customer agents and analysts previously had to access multiple UIs to answer many of the client inquiries, our case management implementation has streamlined that process so that all policy information is easily accessible and available, regardless of which system the data is currently residing. This is more evident in a multi-client environment where each client has its own rules and processes. Our solution and workflow walks the processor through each process step by step by using our rules engine in the BMP framework to drive the flow, rather than leaving it up to a subjective decision process and duplication of processes.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Six Sigma exercise conducted before the start of the case management solution development phase helped us in identifying process improvements and refine the operational processes. This helped us in filtering out inefficient operational processes and avoiding them from being replicated on the new system.  Agile implementation allowed us to use the 80/20 rule to identify the processes that have the most impact on our customer agents and implement those in a timely manner.  Regular play-back sessions with business/end users of the application, so they understand and are aware of the changes. This helped in the users embracing the change in operational processes as a result of implementing the new system.  A multi-tenant environment provides a call center agent with the ability to handle multiple clients without having to learn multiple systems, or user interfaces.  A unified platform allows us to Engage, Simply, and Change rapidly to meet a clients’ market demands.  Once built, rules, workflows and scripts can be easily changed to accommodate individual clients without development overhead, allowing us to design once and deploy in many places.  Allows Infosys McCamish to provide new servicing options such as SaaS, Lift and Shift, Rebadging and Hybrid models, outside of the standard License, Conversion or BPO models by providing a Wrap and Renew approach.  Integrated Workflow and Metrics allows a team manager to make on the fly decisions based on real time analytics to improve operational efficiencies.

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INFOSYS MCCAMISH SYSTEMS, USA 7.2 Pitfalls  The capabilities and visions for our solution offers unprecedented options so it is important to carefully plan the roadmap and development process to develop a solution with fully functional features rather than just features that do not deliver to 100 percent of our expectations.  It is important to manage the clients to the projected roadmap.  A knowledgeable development and architecture team with skillset and understanding of BPM methodology must be established before we commit to roadmap timelines.  Not knowing to the full extent all of the underlying framework’s features, initially resulted in unnecessary custom code development while the functionality was already available as out-of-the-box functionality.

8. COMPETITIVE ADVANTAGES Our case management and workflow component is a game changer for Infosys McCamish both as a BPO and as a solution provider. End Customer Experience - Provide consistent, streamlined call center and back office administration services to our new and existing clients.  Complete metrics, real-time drill-down data and graphical reporting and predictive and adaptive analytic capabilities provides our manager and clients with a snap shot of the business at any point in time. Operational Efficiency  Improvement in operational efficiency of our customer service and back office operations group, since the case management solution supports these transactions end-to-end, instead of referring to multiple applications to do the same Alternate Service Models : Using this case management and workflow solution our services can be offered using any of the service models, that best fits the client needs:  Full or Partial BPO  Legacy Conversion  Lift & Shift  Wrap & Renew  Licensing  SaaS Unified Customer Service Layer  Can integrate with multiple administration systems to provide a true 360° customer view and multi-channel service  Leverage the client’s in-house expertise, a model in which client’s customer service representatives use this case management and workflow solution in a Wrap & Renew model

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Fig 4 – Solution Implementation View

9. TECHNOLOGY Layered software architecture  We architected our solution in a layered way, giving us the ability to encapsulate the most common industry practices and processes in the lowest layer. We built additional layers on top of these framework layers for relatively higher variability requirements such as unique carrier nuances. This layered concept helps us adopt a more agile and iterative cycle of development too.  The benefits are increased reusability and reduced cost, higher standardization of processes, quicker time to market, higher maintainability Configuration as opposed to customization  Unlike other web applications, the degree of configurability is much higher in our architecture, giving rise to less deviation from the standards, lower defects, higher maintainability of the overall solution Integration services  The details of dealing with different policy admin systems behind the scenes are encapsulated in a separate service layer. This helps our solution to focus on process automation and not the details of communicating with those systems in their language and protocols. Self-service capable  Taking advantage of the HTML 5 compliant user interface as well as security architecture gives us ability to enable self-service of select use cases using the same underlying infrastructure. The technology is also adaptable to delivery of the same services through mobile channel for end customer or customer representatives. Multi-geo capable  The technology and architecture used in our case management solution is capable of supporting multiple geographies with minimum configuration change.

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INFOSYS MCCAMISH SYSTEMS, USA 10. THE TECHNOLOGY AND SERVICE PROVIDERS Our case management solution was built on Pegasystems BPM platform www.pega.com. Training on the platform was provided by Pegasystems and our staff was initially augmented by Pegasystems consultants, who were phased out as our development team developed the skill set’s necessary to become self-sufficient.

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New Millennia Group PLC, UK Silver Award: Europe Nominated by AuraPortal USA 1. EXECUTIVE SUMMARY / ABSTRACT New Millennia Group PLC’s (NMG) business model operates within the £22 billion per annum United Kingdom temporary recruitment industry. Providing invoice funding, credit insurance, payroll and administration facilities to recruitment agencies operating nationwide. NMG have been working within this industry since 2000 and hold both trade body and government licences in order to operate. Their administration processes and government compliance issues are very complex and are susceptible to several major changes in any one year. NMG have a workflow cycle of seven days. It is imperative for NMG to complete their tasks within the allotted time as there is no margin for error or delays as the payments of the temporary workers depend on this.

2. OVERVIEW For a Temporary Recruitment Agency, one of the most important requirements is to ensure that the administrative processes are running smoothly. NMG understands that the temporary recruitment agencies must compete with large national companies, but in most cases they lack the resources (financial and technological) to do so on equal terms. NMG levels the playing field by providing payroll processing, invoicing, credit control, bad debt protection and a host of other services, allowing independent agencies to get on with the job of servicing their clients while being secure in the knowledge that the administrative functions are being taken care of in a professional manner. In order to facilitate this from 2000 to 2010 NMG were using several disparate software packages which were integrated via manual paper systems which produced many operational headaches such as the speed and security of operational processes, communication and (external) interaction between these processes and frequent changes due to legal modifications.

3. BUSINESS CONTEXT In 2010 NMG decided to implement an automated and centralized control of the services they were providing to their clients. We provide the following figures to give an idea of some weekly volumes. Recruitment Agencies

150 Nationwide offices

End Clients

1000

Temporary workers

10,000 (With seven different legal classifications)

Industry Sectors

24

Credit Checks

750

Terms of Business/Temp worker contracts

35 Different contracts dependant on the worker classification.

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NEW MILLENNIA GROUP PLC, UK To be able to handle all these complexities, it was imperative that a control could be integrated with their client’s applications and be highly effective to comply with the legal regulations and controls in the recruitment field; now more than ever the competition is fierce, and any poorly managed administration process could lead to the loss of clients, litigation, etc. All operational processes had to be treated with the maximum efficiency, confidentiality and urgency that their clients required, so NMG began an extensive investigation in search of a system capable of developing an effective control of a large number of administrative processes and of complying with the most demanding government regulations in the temporary recruitment field; and also capable of optimizing resources and minimizing costs. There were four main reasons that led NMG to acquire a BPM:  The ability to build any process, without the need for programming so that the in-house IT department could keep up with the demands of the ongoing EU and UK law changes. As an example one of the most recent changes was the Agency Workers Regulation, which came into effect on the 1st October 2011. More information on this directive can be found at:  http://www.bis.gov.uk/assets/biscore/employment-matters/docs/a/11949-agency-workers-regulations-guidance.pdf Another example would be Auto Enrolment which is a new pension legislation, The Pensions Act 2008, which states that from October 2012, phased over five years, eligible employee’s will be automatically enrolled into their employer’s workplace pension schemes.  To enable the agencies, temporary workers and end clients to work online through individual Portals and interact with the processes, thus creating a digital interface on a 100% web based platform.  Produce processes with a very high degree of security, capable of protecting all the highly confidential information (data, documents, and bank and personnel details) generated by NMG, agencies, end clients and temporary workers.  A need for a “Real Time” management information system, with audit trails and historical data.  Ability for mobile workflow connection and process interaction.

4. THE KEY INNOVATIONS 4.1 Business Previous disparate software packages created major communication problems within the supply chain between temporary workers, end clients, agencies and NMG. Now with the new BPM workflow the whole supply chain has the benefit of a centralised communication system utilising features such as portals and document libraries. 4.2 Process The old computer/manual model of the way NMG performed their business processes used more than five different software packages and a huge amount of manual paperwork. NMG were also using pigeon holes and paper folders to create a workflow to enable the storage of the agencies and end client’s information in different cages depending on the phase the process was up to. After having implemented the BPM system, it allowed NMG to integrate twenty six processes and one hundred and sixty sub processes, from large processes like the Insurance Credit Checks, involving our Accounts and business development team to simpler processes like maternity leave requests and telephone enquiries, which

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NEW MILLENNIA GROUP PLC, UK only involve the administrative personnel. Below you will find the structure and interaction of all our processes together. A good example of the interaction between many different processes is the payroll procedure. A simplified version of this procedure can be explained as follows:

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A recruitment agency can open the Agency Portal and submit a new assignment, where the temp, the end client, the work role and the start date of the assignment are provided. The information then gets sent to another process where it checks that the compliance criteria are met. If the assignment is not compliant, the result gets sent back to the New Assignment process where a notification is sent to the agency notifying that the assignment should not take place. When the assignment is compliant the result is also sent back to the New Assignment process, where a notification of the positive result is sent to the agency. There is also a deviation executed so that the “Online Timesheet Process” is prepared to launch an assignment sheet per end client every week the temp has worked. If applicable a “Timer” is set up. This will control the length of the assignment because some types of temps need to have an equal treatment in respect of pay and basic working conditions to a comparable worker with the end client once the twelve weeks have passed (ref. Agency Worker Regulations). Therefore three time events are placed, one of them will release the flow in order to send a ten week alert, one releases the flow after eleven weeks for another alert and after twelve weeks the timer will send a task where the agency needs to indicate if the temp has received an equal treatment in respect of pay and basic working conditions to a comparable worker in order to comply with the AWR.

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NEW MILLENNIA GROUP PLC, UK If an assignment ends the agency has to send an “End of Assignment request”. There, the temporary worker, end client and work role will be entered. The system will look for all the assignments meeting the correct criteria and then sends a task back to the agency. The desired assignment will end by introducing the end date. This will take the assignment out of the “Online Timesheet process” and the “AWR Timer” will also be cancelled. Every Sunday night, the system automatically generates the assignment sheets for the previous working week, taking into account only the ongoing assignments. The tasks will be sent to the corresponding workflow. There are many options and they all depend on the desires of the agency. When the agency is initially set up in the system they can indicate who is to fill out the timesheets, which template they want to use (Weekly hours and rates, daily hours and rates or different rates for each hour) and our business development department will assign a deadline for them to introduce this information. Depending on who needs to input the timesheet we have three scenarios:  The temporary worker inputs their hours: The first task will be sent to the temporary worker where they input the hours they worked and attaches a scanned PDF of their paper timesheet. Then the end client needs to digitally sign that they agree with the hours. After this, the agency fills in the pay and charge rates and digitally signs the whole online timesheet before submitting it to NMG.  The end client fills in the hours of each of his temps and attaches a scanned PDF of their paper timesheets. This information is then submitted to the agency which will include the pay and charge rates, digitally signs the online timesheet and submits it to NMG.  The agency fills in the hours, pay and charge rates and attaches a scanned PDF of the paper timesheets. Then the end client digitally signs the online timesheet and they then submit this to NMG. NMG will then check the information against the scanned PDF’s. This is now carried out on one screen. If any of the data is incorrect, the performer of the task will indicate this, and the process will send the information back to the previous external user to correct the data. If all of it is correct a .csv file containing the payroll data is imported into an HMRC (HM Revenues & Customs) accredited software using web services. This completes all the tax and national insurance deductions in order to create the temp’s payslip. At the same point, the BPM system automatically generates an invoice for the end client from the payroll data and matches it to the corresponding timesheet. After the payroll procedure has been completely finished all the data and PDF’s are added to a central document library making it available for each of the agencies, temps and end clients or NMG’s employees to view the complete payroll history.

5. ORGANIZATION The impact of the BPM project in NMG has been appreciated in each department. The administration and payroll department don’t have to leave their desk to pick up faxes, postal mail or printed documents as all the information is instantly available with the touch of a button. There is no longer the need to match invoices and timesheets or to resolve timesheet queries as this is now fully automated and notifications are sent for tasks with a deadline.

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NEW MILLENNIA GROUP PLC, UK 6. HURDLES OVERCOME 6.1 Management The main hurdle NMG encountered was for the operational management to adopt the use of a completely digital workflow for the first time in the company. NMG also found it difficult to fulfil the wish list of each department during process design. i.e. Some features were excellent on the accounts point of view but were not operationally viable and vice versa. NMG has been trading many years and at the moment of BPM implementation it was not a question of creating new processes and procedures. The challenge was to automate and digitalise the existing workflow in a manner that would satisfy each department of the company and to convince them to trust that the new system would perform its functions correctly. 6.3 Organization Adoption NMG are a Group of companies and the BPMS was implemented into one company at a time. Temporary worker, end client and agency portals were implemented during the last phase. At this point NMG had to adopt a switch-over and training plan for all parties involved. Using the portals, NMG was able to host links to documents and videos explaining how to use the system. This saved NMG a major amount of time and allowed NMG to transfer agencies onto the new system a lot faster. Due to this action plan, NMG limited the hurdles to a minimum for both internal and external users.

7. BENEFITS The benefits using a BPM system were obvious from the start for NMG. A company active in the administration area with computerised/manual processes can only see the benefits of a BPMS suite that automates all the processes and minimises most of the human errors that can occur. Also a real time audit trail document history is indispensable for the company. 7.1 Cost Savings Some of the cost savings that NMG have encountered are a 20% Staff reduction across the company, a 70% reduction in consumables and an 65% reduction in support services for external software systems. 7.2 Time Reductions By automating the NMG workflow, an overall 70% time reduction in the weekly administration processes has been achieved. NMG have reduced the time waiting for answers from the supply chain, for example; chasing unsigned timesheets and missing data which has reduced from weeks to days or even hours.

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7.3 Increased Revenues Increased revenues for example would fall in line with the cost saving benefits involved in the overall 70% time reduction. 7.4 Productivity Improvements Apart from the audit trails, NMG benefits a lot from the control points used in different parts of most of our processes. This allows NMG’s employees to view the phases or results from any request and procedure. Below are the control points of the AWR Timer, which allows the employee user to view a graph explaining exactly the result of the AWR compliance test.

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Also the graph below shows the phase of the payroll process. This information is available at management level offering an overview to determine if intervention is required, for example when deadlines are approaching.

1. BEST PRACTICES, LEARNING POINTS AND PITFALLS 8.1 Best Practices and Learning Points 

Establishing standards for implementing new BPM projects.

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A clear definition of the roles and responsibilities of everyone involved in the BPM processes

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Input from a departmental committees, draft on paper, design the process, simulate and put in practice

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NEW MILLENNIA GROUP PLC, UK  Establish security protocols (i.e. confidential information) 8.2 Pitfalls 

The lack of involvement from managers and employees could endanger a correct process design, so it was clear from the beginning that encouragement was needed to obtain all the necessary management and employee input.

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After receiving feedback from agencies, temporary workers and end clients at the first stage of implementation, it became clear that some of the processes were too heavily adapted to match NMG’s internal staff’s needs, whilst impeding the ease of use for external users. Therefore NMG have had to adapt these processes for all in involved in the supply chain.

8. COMPETITIVE ADVANTAGES For NMG the competitive advantages of having a BPM system are that NMG are able to design and or adapt any administrative process without the need to use any external consultants.

9. TECHNOLOGY 10.1 Infrastructure For the BPM Software NMG use two physical servers on which four virtual servers are implemented. Three of them are used to support the BPMS platform: //SRV01 for the production environment, //SRV02 for the test environment and //SRV03 for the SQL Server. Even though NMG can use the “simulation” option in their BPM suite, NMG opted for an extra test environment for performance testing etc.

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NEW MILLENNIA GROUP PLC, UK 10.2 Service Providers AuraPortal was the BPMS system which NMG used as the central hub. NMG’s consultants built and automated new and existing processes throughout the company in conjunction with AuraPortal. AURA is a global BPMS (Business Process Management Suite) provider delivering a solution that creates, without the need of IT programming, Business Process Workflow Execution Models. AuraPortal is 100% Web-based, and is complementary to existing ERP and CRM systems. AuraPortal is present in fifty countries with more than four hundred customers including, among others: Coca-Cola, PepsiCo, Frito-Lay, Toyota, Yamaha, Petroleos Mexicanos (PEMEX), ArcelorMittal, Eletrobras, Royal KPN, Bristol-Myers Squibb, Sodexo, etc., as well as many Government Agencies and Departments in several countries. AuraPortal Headquarters are located in North America (Boston) and Europe (Holland) whereas the software development facilities are located in Spain and India. More information: AuraPortal - www.auraportal.com NMG: www.nmgroup.co.uk or contact Bert Van den Eynde: [email protected]

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PENSCO Trust Company, USA Nominated by PENSCO Trust Company, USA 1. EXECUTIVE SUMMARY / ABSTRACT Many individual investors would love to use their retirement savings to purchase non-publicly traded, alternative assets in today’s economic environment, but the complexity of administering these assets has caused many financial institutions to opt out of offering them as part of their investment platform. As a regulated banking company since 1989, PENSCO Trust has been one of a relatively small number of leading retirement account custodians that permit financially savvy, self-directed individual retirement account (IRA) owners to invest in alternative assets. PENSCO is the leading alternative assets custodian, combining its knowledge of the alternative asset marketplace with the technological creativity required to welcome the demand created by recent laws that open up the world of alternative investing to a much broader audience. PENSCO took up the challenge to make this sector easier and safer to do business with and is experiencing great success as a result. In this case study, we will share the story of our production case management implementation of what is known at PENSCO as the Alternative Assets Deal Console, the foundation of a constellation of systems that work together to support the critical work of the Alternative Assets Deal Consultant. The Deal Console provides end to end visibility, measurement and automation, to make alternative investing not only administratively feasible, but profitable and customer friendly. The system was built to support the Deal Consultant with all of the required process and client data, as well as supporting imaged physical and electronic documents required to optimize the investment processes for an almost infinite number of investment types. Traditionally, an IRA investment (in private equity, real estate, notes, etc.) has been a manual, cumbersome offline process from opening the account, funding it and then making the investment. Through the enablement of the Deal Console and a set of integrated online capabilities, PENSCO has become the first in the industry to streamline, orchestrate, and automate this process allowing account establishment, funding, and investment online. Multiple investments are supported as a case on behalf of both sponsors and investors with internal tracking and external visibility for investors for all activities including important deadlines such as funding dates. We consider this case study a success not only because of what we’ve been able to achieve for the alternative asset business processes at PENSCO, but also for what we’ve been able to change about the process by enabling our clients and partners.

2. OVERVIEW The Deal Console is the product of a series of agile projects incrementally installing its various components. Each project took on different aspects of the group of processes owned by the Alternative Assets team: executing the purchase, sale, exchange and other activities in the value chain of alternative asset investing on behalf of the client. The first project in the series to create the Deal Console was to create the basic electronic workflow foundation for the processes. The immediate challenges in this

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS first project were fundamentally related to the number of and variation within the processes owned by the team and their document-centric nature. The goal of this first project was to provide basic, aggregate visibility into the process for communication to the investor as well as further study and improvement. Process discovery work showed that there were 22 processes conducted by the team. However, each of these processes may vary, or may not even be executed at all, based on the type of alternative asset involved in the request from the client. PENSCO allows their clients to invest in any asset permitted by the IRS using funds from their IRA. This includes a wide range of private asset types including (but not limited to) private equity, secured and unsecured notes to individuals and private companies, real estate, precious metals, crowdfunding, peer-to-peer lending, and more. Each variation in asset type varies the actions taken in the (up to) 22 processes that may occur in its lifecycle. Adding to the complexity is the fact that these assets were historically extremely document intensive, due primarily to regulatory requirements and the lack of electronic exchanges. Each investment would require a signed PENSCO investment authorization, but could also require up to 11 other documents from third party entities in order to make a purchase, depending on the transaction being performed and the asset type involved. Prior to implementation, this paper had been physically delivered to the team and archived in the company’s document management system after process work was complete, preventing any visibility outside of the team into the work in progress until after it was complete. However, process discovery also showed there was some repeatability and predictability that could be identified within groups of like assets. The set of processes that would occur for a group of assets, the legal documents required and the process activities that would occur for those assets were similar enough that they could share a workflow pattern. In all, 23 asset type groups were identified. Based on this knowledge, the team built a “data driven” process in the company’s BPMS and eliminated delivery of paper documents to the team through a document management solution integrated with the BPMS. In all, the solution managed 214 processes. The process was in production and being incrementally improved when a second project was initiated to address another level of complexity that was not being handled well in the BPMS, the asset-centric nature of the processes. Many alternative asset processes have a case-like nature of related investment processes and have an asset sponsor (or their intermediaries/representatives) as a key process stakeholder, especially as it relates to the emerging trend of equity crowdfunding. Some alternative asset processes involve multiple IRA account owners purchasing an asset administered by the same entity, such as a crowdfunding platform. Often funding and paperwork issued by the IRA account owner must be submitted by a deadline in order to invest in the asset and the asset sponsor/administrator needs visibility into the funding pool as a whole (the sum of the investments from multiple clients). The challenges here were that the team could only see each account owner/potential investor as a separate process instance in the BPMS and could not easily communicate the aggregate status of the account owners for the investment, a case centric view of the related process instances. Adding to the challenge was that often these types of investments required an onboarding process for investors who wanted to use IRA funds for the purchase, but currently held them at a firm that would not support such investments on their

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS platform. As such, the Deal Consultant would need the client to go through two related processes at PENSCO before the purchase could take place: the setup of a new account, and a transfer of funds from the current custodian to the new IRA at PENSCO. These process instances, managed in separate executable process models within the same BPMS, were integral to the view of the status of the investment as well. In addition to managing the process at the individual account owner level, the company needed an asset-centric approach to managing alternative asset processes. Another key trend since the original production release of the BPMS process for the Alternative Assets related processes was increasing regulatory permissiveness for account owner adoption of owner/third party scanned legal documents from account owners rather than requisite paper original documents. These opened key opportunities to reduce incoming paper traffic and overhead - as well as automation potential to manage all of the documents required to support alternative assets processes. In the second project, the Deal Console was created. Using the original BPMS process as the basis, each incoming process instance was added to a new data entity called a “deal” —a case based on the subject asset for each account owner involved in the investment. The console components allowed users to create the deal, add subsequent incoming processes to the deal, and manage each process instance on the same user interface as a group, rather than one-by-one as separate process instances. Also appearing on the Deal Console were any other related processes for the account owner, including the account set up and transfer of funds into the account. In separate concurrent projects, PENSCO also created multiple related web applications that send investment data and documents to the Deal:  Automated Onboarding - using a New Account Wizard, investors can electronically initiate a new account, transfer funds, and initiation the purchase of any type of alternative asset. This application integrates an e-signature product so that account owners can now legally e-sign PENSCO forms and have these automatically attached to the “deal” and the process instance that is tracking the work of the investment. Account owners can also upload scanned legal documents to support the requirements of the investment. The data and the documents of the wizard directly launch the required BPMS instances, with all required documents being attached to the appropriate process instance.  Crowdfunding Platform Integration - users of partner crowdfunding sites can use B2B integration features offered by PENSCO to electronically initiate the purchase of an alternative asset from the crowdfunding platform using IRA account funds.  Partners Platform - a site for sponsors of private placement offerings to initiate and upload legal documents for an alternative asset investment into which one or more PENSCO IRA account owners will be investing.  Document Upload - an online tool that provides clients the means to upload required documents after a process has been initiated.  Alternative Assets Marketplace - an online marketplace, a first-of-its kind network of providers, products and services for alternative asset investors.  Activity Center - an online client portal where all BPMS process activity is visible to clients. In real time, clients can view activity status and notes for all new investments and all other processes associated with their account.

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eNotes - electronic email notifications delivered to clients at key milestone activity events within the case. These components have digitized the alternative asset process inputs, moving the company away from the paper-based processes we began with, and co-existing in the same Deal Console so the Alternative Assets Consultant can see all of their work in the same process portal. The company continues to innovate rapidly by iteratively improving each of the systems involved, and further extending its platform to other partners. The operational foundation of all this is the deal and process instance level management of these 200+ processes in the BPMS, supported by the case management features of the Deal Console.

3. BUSINESS CONTEXT Prior to the implementation of the BPMS, there were several challenges facing the organization related to alternative assets processes. The processes were tracked in multiple spreadsheets and Access databases, which were also used to log the receipt of incoming physical documents. The bigger challenge was that, while these spreadsheets and databases provided some local visibility into the process, they were cumbersome for other process stakeholders to access, and completely inaccessible by account owners and other interested parties affiliated with accounts. The company had ambitious growth goals and knew that these tools would not scale or permit the innovation required to work directly with account owners and other business partners over the web.

4. THE KEY INNOVATIONS 4.1 Business The series of projects that created the Alternative Assets console and its partner applications makes PENSCO “easy to do business with” in an industry that is notorious for exactly the opposite. Gathering “clean” validated process data through web wizards and having a web application upload and index electronic documents eliminates a wide swath of data entry and classification tasks that are performed manually when paper documents have been submitted to initiate a process. Process discovery revealed a tremendous amount of non-value added work in contacting account owners to correct or add missing information to paper forms and to make sure that they provided the other required legal documents to support the transaction. This waste is all but eliminated when the customer is guided through the right submission of data and documents to initiate a process. Having clean process data and documents show up directly on the Deal Console after submission by the client reduces process cycle time dramatically from days to hours. 4.2 Case Handling Before the implementation of the Deal Console, there was no concept of case built into the BPMS implementation of the Alternative Assets processes. Users would have to run reports that aggregated process instances by asset and account to get a case view of the processes. The overall system architecture of the Deal Console is summarized in Figure 1 below. Key roles are the Deal Consultant, a Deal Acceptor, a Processor and a QC’er. These roles are assigned and managed within the BPMS.

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS Figure 1 - Deal Console System Architecture

The underlying process flow of process instances within a deal in which these roles participate are shown in Figure 2. Whether or not a process/work type will require each activity in the flow is driven by rules in the process database. The same database also contains rules that tell the BPMS which checklist to display, what activity SLA is applicable and which data elements should be displayed at each applicable process activity, based on the asset type and the work type of the instance. Figure 2 – Deal Flow

The case template is shown in Figure 3 below. Each case, or Deal, is related to an alternative asset. The information about the asset is stored in an asset repository. The Deal Consultant actively maintains current asset information by adding notes and documents that are pertinent to all deals for the asset. Each deal has a unique ID assigned and some Deal metadata, such as the deadline by which all processes must be executed. Finally, each deal has one or more processes associated with it. The processes include one or more investment related processes, which the Deal Consultant works on directly, but also new account and transfer process instances when applicable. The Deal Consultant does not work on the new account and transfer process instances directly but can monitor the progress of these related processes on the Deal Console.

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS Figure 3 – Deal Case Template

4.3 Organization & Social The biggest impact to the work of the Alternative Assets Consultants is the ability to focus more of their energy on a growing number of client relationships with account owners and other stakeholders like asset sponsors and their intermediaries. Previously, a great deal of these conversations were around gathering additional or corrected process inputs like corrected forms or additional documents. It is now possible to have higher value conversations about how the process works and answer questions about the regulatory requirements involved in the process. Time and multiple iterations of “Center of Excellence” approaches have shown us that this entity, as defined in BPM, does not suit a lean organization like PENSCO. Instead, PENSCO has focused on a customer experience program centered on the PENSCO “customer journey”. Lead by the Sales and Marketing team, every process in the company is continually evaluated through collaborative discussions to understand the value and the experience it creates for the customer and how it could be made better. From this knowledge, all areas of the company derive their goals. Human Resources breaks out of its traditional role and works as a strategic partner in the company. The team ensures that every employee has rigorous performance goals that are directly decomposed from the customer journey work and rewarded by bonuses. This direct link to strategy ensures that employees are incentivized in accordance with what really matters to the customer. They also facilitate regular cross training events so employees regularly hear from all other teams about what their role in the customer journey is and what the employees can do to support them.

5. HURDLES OVERCOME Management Coordinating multiple related technology integration projects being worked upon by different teams around the same processes (product) can be a challenge when using an agile software development methodology like Scrum (used at PENSCO). In a multiple team/same product environment, there are technical, cross-team dependencies that need to be managed daily but the teams don’t always share the agile ceremonies where these dependencies are driven out, planned and worked through. Simplistically speaking, not doing so creates waste when something breaks or is not optimally designed because one team didn’t know about something new coming from another team. To remedy this, we looked to frameworks for large scale agile projects (like LeSS and Scaled Agile). These frameworks are intended for very large multiple team/same product environments but can also be useful in

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS smaller companies with the same challenge to keep more than one agile team in sync while delivering as rapidly as possible. Business The first project to implement the foundational, data/rules driven BPMS process involved what amounted to over 20 distinct processes, which varied significantly based on the type of alternative asset involved. However, we needed to get a technology solution to the company as quickly as possible. As such, it was not practical to perform a traditional, BPM-style process analysis of each as it would have taken a tremendous amount of time and it may not have yielded the implementation insight that we would need. Instead, we performed a self-styled “meta-process analysis.” This involved inventorying and classifying all the subject processes and grouping them by the type of process pattern they followed through an analysis of process activities from a high-level flow perspective only. We then took a look at what was the same about processes within a given group and what was different to determine what type of rule-driven features would need to be built within the shared flow to accommodate the process variation in the group. Due to the document-centric nature of the processes, we also had to look at the document requirements of each process group and the variations therein to determine how much assistance we could provide an Alternative Asset Investment Consultant in managing that aspect of these processes. Organization Adoption The biggest challenge to organizational adoption was allocating the resources to it that were required. In a smaller, lean organization, many team members play multiple roles to deliver the product as quickly as possible. Supporting the organization’s adoption of the solutions has had to be spread across many and varying people through the projects. We do have key practices we’ve integrated to help this situation, however. We utilize frequent demonstrations of work in progress to stakeholders. To help prepare process owners for change, we make sure we’re always working with at least one process owner daily on the team and ask that owner to be a daily communication liaison to their leadership and peers. We make sure to provide written documentation about how to use new features in the process and offer regular training. We are working on establishing “application stewards” on the business teams that are the first tier of support when questions or issues arise.

6. BENEFITS 6.1 Cost Savings / Time Reductions With the enablement of PENSCO’s clients and PENSCO’s Deal Consultants the average time to establish an account, transfer funds, review all assets for acceptance on the PENSCO platform, and initiation of the purchase has gone from weeks to days. This a significant benchmark in the industry. 6.2 Increased Revenues PENSCO made the investment in the Deal Console’s case management capabilities to enable top-line strategic growth initiatives. PENSCO’s capabilities are unique in the industry and represent a significant competitive advantage. PENSCO is leveraging these capabilities to expand strategic relationships with institutions, crowdfunding and peer-to-peer investing platforms, in addition to making the process easy for individual investors. While PENSCO’s growth continues to be robust we do not yet have hard revenue figures for the Deal Console.

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS 6.3 Quality Improvements  

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Process input data quality is vastly improved with intelligent guided wizards and electronically signed documents. Document meta-data is improved due to web app upload features. Docs are dragged to zones on a page that assign the correct document indexes which direct the document attachment to the appropriate instances process instances related to the deal. Process SLAs are tracked and measured for the case ensuring all investment deadlines are met. Asset centric documents and process information available across all accounts ensuring consistency and proper notifications. B2B submissions online with crowd funding partners. Significantly improved client experience with transparency of process information online in real-time, and electronic notifications at process milestones. Significantly improved client experience in speed and accuracy on behalf of their investments with PENSCO.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Tailor the process analysis performed to the needs of the technology solution. Consider a “meta- process analysis”, pattern-based approach of your own that fits the analysis effort to the solution to be delivered.  Use an agile software development methodology to ensure that solutions are built based on customer feedback as early and often as possible.  A single, monolithic case management system may not be the answer to your company’s case-like processes needs. Consider the possibility that a palette of existing technologies may be leveraged to achieve the same goals. 7.2 Pitfalls  Don’t take shortcuts on the “soft stuff” like training employees on how to use the new tools, communicating to them about how the new tools being delivered will change their daily life and closely supporting them after deploying the technology. Investment in this pays off in subtle but powerful ways often underestimated when allocating resources to a delivery team.  Don’t forget the customer in the process. Case solutions can tend to become very inwardly focused because so many of the activities that are built occur within the walls of the company. Consider that transforming the customer’s experience can sometimes be the only way to substantially transform and add speed and efficiency the company’s process.

8. COMPETITIVE ADVANTAGES Many firms won’t take on the complex process work to hold Alternative Assets in their accounts on behalf of IRA account owners. Cumulative process and technology knowledge gained over time represent a unique source of competitive advantage to PENSCO, because it is the key insight required to effectively implement the right technology for these complex processes. Nearly all types of alternative assets lack a convenient electronic exchange, historically making the related investment processes confusing and cumbersome for investors. Traditionally an investment has been a manual offline process from opening the account, funding it and then making the investment. Through the enablement of the Deal Console and a set of integrated online capabilities PENSCO has

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PENSCO TRUST COMPANY: ALTERNATIVE ASSETS become the first in the industry to streamline and automate this process allowing account establishment, funding, and purchase initiation online with electronically signatures among multiple parties. Multiple investments are supported as a case on behalf of both sponsors and investors with internal tracking and external visibility for investors for all activities in the process. These capabilities are unique and have remained top strategic imperatives as PENSCO expands its partnerships with institutions, crowdfunding portals, and peer-to-peer lending platforms. These partners are highly automated, operating online, and investments made with IRA funds require seamless integration, and deal tracking, not offline manual processes.

9. TECHNOLOGY PENSCO did not use a separate vendor-based Case Management Suite when implementing the Deal Console. Rather, the underlying process infrastructure is implemented in the company’s BPMS. A special toolkit was used to build the Deal Console itself within the BPMS. The BPMS is integrated with the company’s document management system as well as several other internal and external MEAN stack applications as shown in Figure 1 above.

10. THE TECHNOLOGY AND SERVICE PROVIDERS The BPMS supporting the Deal Console is IBM Business Process Manager. http://www-03.ibm.com/software/products/en/business-process-manager-family The toolkit used to build the Deal Console into the BPMS is Apex Coach Views by APEX Process Consultants. http://www.apexbpm.com Online web based capabilities were developed using MEAN stack technology (MongoDB, Express engine, Anjular.js, Node.js). http://mean.io

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Pershing LLC, a BNY Mellon Company, USA Nominated by Pershing LLC, a BNY Mellon company, USA 1. EXECUTIVE SUMMARY / ABSTRACT Prior to implementing its Task Management solution for onboarding new clients to Pershing LLC, a BNY Mellon company, the Client Transition (conversion) team relied on a highly manual, paper-intensive project planning system to track the conversion process and manage multiple tasks. This required frequent in-person meetings, e-mails and phone calls among departments. Administration was difficult and time consuming as project plans had to be printed and shared prior to each meeting and updates were restricted to a single team member from each department. The new automated task management solution allows the conversion team to access and adapt up to 1,100 steps within the master conversion plan for the new client and distribute the plan to more than 150 impacted team members. It also allows all team members in real time to:  Access the project plan, carry out tasks and update status.  View an overview of status, including open items and the percentage of project completed.  Capture and archive documents with a built-in imaging system for audit and recordkeeping.  Receive alerts when tasks are added, coming due or past due.  Add comments to tasks or steps, improving both communication among team members and information retrieval. Since its implementation in 2013, the project has met its objectives with:  Improved access to information and documentation across the firm.  Easy project updates and administration across 43 groups in Pershing.  Enhanced project oversight and communication among diverse teams.  Time and resource savings on project planning.  Improved quality by using standard checklists for processes in adherence firm guidelines and regulatory requirements.  Reduction in project administration from days to minutes.

2. OVERVIEW The task management solution was designed to provide full transparency, accountability and insight into the new client onboarding process at Pershing, which engages up 43 internal departments, such as technology, trading, tax reporting, statements, new accounts and mutual funds, all while storing the documentation and history in one centralized location. Since every client that is onboarded at Pershing has a different set of requirements, the team required a task management system that could be tailored by the type of client and for individual client engagements, improving both project delivery and team communications across Pershing. The basic components of the task management solution include:  Tasks—Tasks consist of one simple step or may be more complex, involving multiple steps. 249

PERSHING LLC, USA  

Steps—Steps are a sub-step attached to the task. Checklists—Checklists are a group of related steps attached to a task that help create repeatable business processes. Timelines are then created for completion of the checklists.  Alerts—Users can receive alerts when tasks are added, coming due or past due, via e-mail, text, pop-up alert, blink in task bar, or view all alerts upon logging into the system. Each of the 43 departments creates the tasks, checklists and steps for the each of the five conversion types at Pershing: incoming (new clients), in-house (internal transfers), start-up (new broker-dealer businesses), deconversions (exiting clients) and managed investments. Each step in the checklist (see Figure 1) can be assigned to either a user group or individual. All task checklists for the particular conversion type (up to 1,100 steps) are embedded into a master conversion template, used to create the new project plan when a new client is onboarded. Since financial services is a heavily regulated industry, departments must create the checklists according to regulatory requirements and the guidelines listed in Pershing’s policies and procedures manual to ensure tasks are completed correctly. Certain departments, such as the Anti-Money Laundering team, may have concerns about confidentially, so have the option of designating checklists as public, private or shared. If private, only the team members assigned to that task can access and update the item. Checklists ensure that the tasks and, ultimately, the entire conversion, are performed consistently and correctly across a high volume of conversions, regardless of the project size or complexity. For each of the 500 checklists involved in a conversion, the individual responsible for the task is required to complete all of the checklist steps to close out the task. Figure 1

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PERSHING LLC, USA Once the conversion template has been created, an e-mail notification sent to all business areas kicks off the new client onboarding process. As soon as the team receives the e-mail, the team member assigned to a particular task “locks” it so only he or she can work on it. This ensures that multiple people from one team do not work on the same task. Once a task is locked, the team member begins working on it or can reach out to the conversion manager with any questions. If a task is not required for that particular conversion, it can be closed out immediately. To keep the project on track, the system accommodates for changes in staffing and assignments. If a team member is away, he or she (or an administrator) can unlock a particular task and send it back to the group for another team member to lock and complete. If an item becomes past due, reminders are sent to the individual concerned to complete the task. Team members receive alerts or notifications when a task they are assigned to, or have created and assigned to someone else, is added, coming due or past due, so that all members are aware of their project action items. To determine the status of a conversion, the conversion manager, or business area conversion liaison, can log onto the system at any stage to view open items and the percentage of the project complete (see Figure 2). This provides clear insight into who needs to be contacted for open tasks and enables the conversion manager to determine if any issues need to be resolved to keep the project on track. The solution allows users to add comments at the task or step level (see Figure 2). These notes become a permanent part of the project record, and can be helpful if an item needs to be researched at a later date. For instance, if a particular task is not required for a conversion, it can be marked “N/A” in the system so the item and the reason it is missing is recorded. If a document is missing, this can also be noted. Capturing documents and notes aids in both communication among the team members and provides overall transparency, including for audit purposes. Figure 2

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PERSHING LLC, USA Once the project is completed at 100 percent, it is automatically moved into an imaging warehouse (see Figure 3). All documentation, project history, team members, dates of completion, and other project details, are stored in compliance with books and records and external regulations, for three to five years, in one centralized location. Figure 3

3. BUSINESS CONTEXT Prior to implementing task management for client onboarding, the Client Transition team and up to 43 departments relied on a paper-intensive project plan to track the onboarding process and manage the approximately 500 tasks involved in each of the five conversions that typically take place in a week. This included frequent in-person meetings, e-mails and phone calls among team members and departments. Administration was time-consuming and difficult, as project plans were printed and could only be updated by a single team member from each department. If a team member assigned to a task was away or sick, the task could not be accessed or reassigned, causing delays in the onboarding process. The system relied on team members individually tracking progress on tasks and following up with each other for status. If a client requested a status of the conversion, it was a time-consuming, manual process involving phone calls and e-mails to the business areas. Since information was not centrally located, documentation and project information needed to be looked up on various systems and hard drives throughout the firm. This paper-based system was eventually migrated to a semi-automated system, Project and Portfolio Management (PPM), modeled on Microsoft Project. However, this was also heavily manual and time consuming to administer. Only one team member could be assigned to tasks in PPM, making it difficult to update items. It also did not provide an oversight function or the ability to attach documents, add comments or sign up for alerts.

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PERSHING LLC, USA 4. THE KEY INNOVATIONS A previous paper-based system that housed documents and related project information on various shared drives and hard drives throughout the firm was replaced with a centralized, transparent process that stores all documents, comments and project information in one place for up to five years. The new solution improves project delivery across the firm, as well as accountability, manager oversight, team communications and project timeliness. 4.1 Business Since this is an in-house solution, it primarily impacts the ways internal business teams interact with one another, including the Client Transition team responsible for leading conversions and 43 different business areas impacted by the conversion process. Instead of requiring representatives of the departments involved with a conversion to attend in-person meetings and manually update paper-based project plans, team members now access and update tasks in real time in a centralized location. This has delivered significant time savings for the Client Transition team that manages conversions and for the conversion liaison in each department. These time savings have resulted in ease of tracking projects, reduction of printed reports, and decrease in manually inputting of project data. Bottlenecks in task management have been improved. Instead of only one individual being assigned to a task per department (preventing progress if away), teams can now be assigned to tasks. Instead of individuals being responsible for remembering specific tasks and due dates for completion, features embedded into the system, such as checklists and alerts, provide this function. Transparency has also been improved as business users, client management and the conversions team can all view progress of each conversion, as well as tasks completed and in the queue for completion. Users can also view interdependencies so that they can work effectively with others responsible for tasks during the conversion. Reporting to clients has improved as clients can now receive real-time updates on the status of open items. Data can also be easily extracted into a Microsoft Excel or Adobe Acrobat file (this was previously a manual process) to provide clients with a status report or open items list. Otherwise, the transition to the new solution has been seamless for Pershing’s clients. The Product Management Group that developed the solution regularly interacts with both the Client Transition team and departments to obtain “voice of the customer” feedback for possible future enhancements. 4.2 Case Handling Prior to implementation of the task management solution, the previous paperbased system meant that there were more in-person meetings, e-mails and phone calls among the Client Transition team members and internal departments. Only a single person per department could access and update the project plan. If that person was away, progress would stall. Documents and information were stored on various shared drives and hard drives throughout the firm. With the new, automated system, e-mail notifications are sent to all groups as soon as the conversion template has been created. Progress begins immediately and managers benefit from full transparency, as they can easily log into the system to find out the overall percentage of project complete, open items and who has been assigned to tasks. When the project is complete, all documents, comments, task assignments and completion dates are stored in the system for up to five years.

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PERSHING LLC, USA Processes for onboarding had already been defined over a period of time to comply with business needs and regulatory requirements prior to implementation of the solution. Processes were moved into checklists and validated with all business areas and the conversion team to ensure they met business requirements. The overall system architecture. The task management solution was based on the “Getting Things Done” 1(GTD) methodology, which is based on two key objectives: 1. Capturing all the things that need to get done—now, later, someday, big, little, or in between—into a logical and trusted system outside of your head and off your mind; and 2. Disciplining yourself to make front-end decisions about all of the “inputs” you let into your life so that you will always have a plan for “next actions.”1 The task management solution is an automated, simplified system that requires each of the business areas to create step checklists for tasks. The system then sends notifications related to these checklists to all team members to ensure they are completed on time. It provides oversight by allowing anyone with access to hover over a task icon to see who is working on it and provides an overall status with the percentage of tasks complete. When the project is complete at 100 percent, any documents attached and the complete project history are stored for up to five years. The case templates for the five different conversion types performed at Pershing were defined based on the approximately 500 existing tasks and 1,100 related steps across 43 business areas required to complete a conversion. Since financial services is a heavily regulated industry, the tasks and steps were already in place and being tracked on a Microsoft Project Gantt chart. The key roles The key roles in the task management solution are conversion manager, conversion specialist, business area manager and individual user. These roles are assigned and managed as follows:  Conversion Manager—Manages the entire conversion process, serving as the liaison between the client and Pershing’s internal business areas.  Conversion Specialist—Coordinates data files for the conversion in collaboration with the client and Pershing’s technology team.  Business Area Manager— Serves as a liaison to the Client Transition team, as a representative from one of the 43 internal departments impacted by conversions. Manages the user group assigned to tasks.  Individual User—Performs tasks, updates tasks and closes out tasks. Access to the task management solution and permission to perform the functionalities available within it are managed by 30 different entitlements, such as creating and assigning tasks, adding or modifying checklists, establishing user groups, attaching documents and accessing the imaging system. The main business entities The main business users include 43 internal departments impacted by new client conversions, including technology, trading, tax reporting, statements, new accounts and mutual funds. These areas create task checklists, assign groups, update tasks, add documents and comments, and manage the overall completion of

1 1Getting

Things Done, Penguin Books, David Allen (2003)

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PERSHING LLC, USA tasks. Each business has a conversion liaison responsible for managing tasks and assignments for their team. The group most significantly impacted by the new task management solution is the 30-person Client Transition team, responsible for leading the onboarding of all new clients to the firm. The case template Based on the type of onboarding (new client, in-house transfer, start-up client, deconversion or managed investments) a different conversion template is used. The checklists and steps contained within these templates do not change per conversion, but are updated and subject to supervisory review periodically. This ensures consistency of results regardless of conversion size or complexity, or volume of conversions taking place. 4.3 Organization & Social Although all employees on the Client Transition team and departments reported significant time savings and greater ease in accessing the system and making updating, most impacted was the individual responsible for maintaining the system, loading tasks and communicating the kickoff to the business areas. Previously, more than 75 percent of this individual’s time was dedicated to managing the conversion process. With the new system, this percentage has decreased to below 50 percent. Instead of manually loading hundreds of tasks, the conversion template now stores these items. Instead of holding regular in-person meetings, the system now alerts users when items are added, coming due or past due. Finally, instead of distributing hard copies of project plans, team members now electronically access and update the plans. According to users, the solution is “more user friendly and easier to work with” than PPM, the previous Microsoft Project-based system. While PPM proved useful for IT project management, it was not particularly suited to different client conversion types, along with multiple tasks, checklists and steps. It did not have the capability to add documents and comments or house all of the components in a centralized location. While PPM automated some tasks, it still required hours of manual updates and was therefore an interim step between the one hundred percent manual, paper-based system and the fully automated and centralized task management system currently in use. “It previously took more time, sometimes 30-40 minutes or more to look up something related to a project. Now, with the new system, it’s 1, 2, 3. I just put my cursor on the icon and the information pops up,” said one user (see Figure 4). “It has drastically reduced the number of steps it takes to complete a task.” Figure 4

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PERSHING LLC, USA With task management, tasks can be added in one or two minutes and people can be added to groups as needed. Said another user, “It is a great enhancement, especially for tracking purposes.” A completely in-house solution, over 46 members of the Product Analyst Group at Pershing worked on implementation of the task management solution over a twoand-a-half year period, spending over 20,000 hours. With an open flow of communication, feedback was readily received from the business areas and the implementation team could add new functionalities to help evolve the solution to meet the complex business needs of the conversion team. At all stages, processes were checked and validated with senior management and users to ensure that they would meet business and operational needs. The implementation team also leveraged the Center of Excellence (CoE). The Center of Excellence supports BPM development projects across Pershing. The CoE monitors the results of program execution by capturing and reporting on Business Process Analytics. The BPM is transparent to business process owners and BPM initiatives are supported by the Executive Committee. Available metrics provide the CoE, process owners and the Executive Committee insight into the following KPIs:  Process adoption  Increased productivity The BPM CoE has a governance model and relies on partner groups, including Project Management, Business Analysis and Technical Architecture. All participants are aware of and support the Software Development Life Cycle (to allow for a defined, repeatable, approach in creating new process flows and enhancing existing ones). Each technical service in the BPM Solution space feeds information to the BPM CoE and has its own strong governance, including defined business and product ownership. With the practices in place, and the results of the BPM program as reported, the CoE has a profound impact on the entire organization. All team members, from project sponsor to developers, are encouraged to ensure that BPM practices are well represented.

5. HURDLES OVERCOME Management Specific requirements for the solution were not provided, so the development team conducted significant research to determine how other systems that required repeatable tasks, such as Microsoft Outlook behaved. They also experimented with different process flows and communicated regularly with future users and senior management to validate whether the solution, at each stage of development, would ultimately meet their needs. Senior management appreciated the accountability and traceability the solution provided as well as the ability to scale it for both external clients and for internal business needs. Business Based on early demos to the business areas, feedback was shared on functionality that could help improve business processes. This resulted in several features and functions being added to each new release. These included assigning tasks to user groups, not just individuals; attaching and storing documents at the task and step level; making checklists confidential and capturing comments as part of the project. Organization Adoption The Client Transition team worked hard to train users on the new solution and ease the transition. This included overview training to groups and time spent at the desks of individual users. The intuitive nature of the automated system and its

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PERSHING LLC, USA user-friendliness has resulted in training time being drastically reduced with the new solution. Associates easily grasp how it works, reducing training time to a halfhour in most cases. The previous system required hours of training, with users relying on “cheat sheets” to perform certain functions. Ultimately, the task management solution has been very well received by both employees on the Client Transition team and the business areas. As one user put it, “The simplicity makes performing work much easier. With the new solution, tasks now appear automatically. It’s very self-explanatory.”

6. BENEFITS 6.1 Cost Savings / Time Reductions Task management has helped the team at Pershing standardize its onboarding process and improve productivity. The new tool and associated processes has meant that the team can handle new client transitions more efficiently and achieve better transparency into the numerous tasks involved in a conversion.  Project initiation happens in real time across 43 departments at Pershing, instead of taking days to set up and load tasks.  Training has been reduced from hours to 30 minutes as trainees easily grasp the new solution, whereas the old system took several hours to train and users relied on “cheat sheets” for certain tasks.  Users can now respond to client inquiries in real time by pulling up documents housed in the imaging system, whereas it previously took 30-40 minutes, or longer, to research items.  Loading a task or adding a new user only takes one or two minutes, as opposed the 15 minutes previously.  Time management for teams and individuals improved dramatically, enhancing the overall project efficiency and individual productivity.  Automation of projects helps groups and individuals manage time and business efficiency. 6.2 Increased Revenues Since implementation of the task management solution is an internal project, it does not have a direct impact on firm revenue. Task management has however, reduced business costs, including for personnel, training and paper use. Since it is an in-house system, the need to pay any licensing fees to external vendors has been eliminated. 6.3 Quality Improvements The move to the new task management solution has enabled the Client Transition team and business areas impacted by the conversion to realize quality improvements in various areas, including:  Consistency—By adding checklists that follow both regulatory requirements and Pershing’s policies and procedures, a consistent outcome is ensured with each project.  Centralization—Using a built-in imaging system, all documents, comments and history are recorded and archived for the time period required by books and records or external regulators.  Automation—The need for individuals to track specific tasks, remember what steps need to be performed in what sequence, and the length of time documents need to be stored for books and records is eliminated. These features are embedded into the system.

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PERSHING LLC, USA    

Transparency— Information, documentation and comments are easily accessed by all team members, providing accountability for up to 1,100 steps per conversion. Easy Updates—Individuals can easily update the status of tasks and close them. Confidentiality—Since checklists can be created as public, private or shared, this eliminates the risk of sharing sensitive or confidential information with the wrong individuals. Green—Paper use is essentially eliminated as tasks, steps and checklists are available electronically, removing the need to circulate copies. Audit and client inquiries are also responded to electronically. An estimated 5,200 sheets of paper have been saved each year.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points Based on the experience of the Product Analyst Group, Client Transition team, and 43 internal departments involved, several best practices and learning points were noted, such as:  Hold frequent demos with the impacted business areas during development to receive feedback and add functionalities to help meet business needs.  Track metrics such as efficiency, productivity and paper use at the beginning of the implementation and again at the end to show improvements.  Follow the rules of any external regulators and internal policy and procedure guidelines when creating the steps for task checklists.  Assign user groups, not just individuals, to tasks to ensure there is a Backup for completing tasks.  Add a comments field for tasks and checklists, which then becomes a permanent part of the project’s history.  Review checklists on a half yearly basis to ensure they still meet regulatory requirements and business needs.  Integrate with existing platforms to make it easier to view and track tasks and project deliverables.  Add “hover over” icons to view user groups, individuals assigned to complete tasks, comments, etc.  Integrate an imaging system to attach documents and store at the task or step level for the period required by books and records. 7.2 Pitfalls The project encountered few pitfalls as the new process represented a major improvement over the previous paper-based, semi-automated process, however, the following pitfalls were encountered:  Not creating checklists to follow firm guidelines and procedures could result in tasks not being completed successfully.  Making changes to checklists or tasks could result in inconsistent outcomes across projects.  Not providing an option to make checklists confidential could present a conflict for some business areas.  Allocation of additional storage space in the back-end system is needed if a large number of tasks are planned.

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PERSHING LLC, USA 8. COMPETITIVE ADVANTAGES Since the task management solution was developed in-house and on a flexible platform, it can be easily adapted as the business needs of the Client Transition team and internal departments evolve. The adaptability of the master conversion checklist and ability to modify and add steps in the conversion process, plus attach notes and documents to tasks and steps means that the processes can be adapted as business requirements and regulations change. This enables Pershing to be more nimble when onboarding new clients and helping clients onboard additional firms due to mergers and acquisitions. Going forward, the Product Management Group will interact regularly with the Client Transition team as well as the BPM Center of Excellence to ensure the solution continues to meet Pershing’s business needs.

9. TECHNOLOGY The development of the task management solution was based on the “Getting Things Done” (GTD) time management methodology, which is based on two key objectives: 1. Capturing all the things that need to get done—now, later, someday, big, little, or in between—into a logical and trusted system outside of your head and off your mind; and 2. Disciplining yourself to make front-end decisions about all of the “inputs” you let into your life so that you will always have a plan for “next actions.”1 Since there are many tasks, either simple or more complex, performed by the Client Transition team and departments involved in a conversion, the objective was to create a system to track these tasks and provide transparency, accountability and traceability, all while storing the documents and history in a centralized location. The front-end of the solution was implemented based on .Net 2.0, a Windows platform, which offers improved graphics and a richer user interface than web-based solutions. The back-end of the solution was created based on Pershing’s existing Oracle backend system, which the team felt offered enhanced system performance. Extra storage space was allocated due to the large number of tasks involved in client conversions. Based on feedback received from business areas during implementation, the following additional functionalities were incorporated:  Alerts—Alerts notify user groups or individuals about tasks that are added, coming due or past due, serving as useful reminders to complete tasks and keeping the overall conversions on track.  Comments—Adding comments at the step or task level means that team members no longer have to remember the details or dates associated with each task. If you need to look up an item several months later, it is easy to call up the project history. Everything is in one place.  Imaging—Attaching documents ensures that documents associated with a task or step stays with the task or step, and are stored in the imaging system for the time allocated by books and records.

10. THE TECHNOLOGY AND SERVICE PROVIDERS NetX360® Task Management helps users manage their time and business processes more efficiently by enabling them to create, organize, process and monitor

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PERSHING LLC, USA tasks. With NetX360 Task Management, users can collect, organize, process and monitor on a wide range of tasks, streamline daily processes by automating simple, one-step, or multi-step, complex tasks on a one off or recurring basis, assign tasks to a single user or a user group to minimize effort, and subscribe to task alerts so they are notified of tasks requiring attention. Users can also create and deploy standard checklists such as create a financial or project plan to ensure staff complies with policies, and procedures and customize them to business needs. Task Management is integrated with Pershing’s NetX360 solution so users can access all task management functions from a single platform and see all tasks in a single inbox. The tool is offered as a complementary addition to NetX360 for Pershing clients.  Albridge Document Management was used to implement the imaging system. Albridge Document Management stores vast quantities of web-accessible e-documents in easily searchable formats, a few keystrokes away. Incoming paper documents are scanned locally, quickly and easily. Albridge is an affiliate of Pershing LLC, a BNY Mellon company. We Are Pershing, a BNY Mellon company Pershing, a BNY Mellon company, and its affiliates provide global financial business solutions to advisors, asset managers, broker dealers, family offices, fund managers and registered investment advisory firms. A financial services market leader located in 23 offices worldwide, we are uniquely positioned to provide advisors and firms global insights into industry trends, regulatory changes and best practices, as well as shifts in investor sentiment and expectations. Pershing provides solutions−including innovative programs and business consulting−that help create a competitive advantage for our clients. Pershing LLC As the New Model Clearing FirmTM, Pershing LLC provides a broad suite of financial business solutions so advisors and broker dealers can drive their business forward in a dynamic industry and regulatory environment. We are the #1 clearing firm in the U.S.* and our clients range from full service, institutional and independent firms to self-directed and bank-affiliated broker-dealers and span the globe. With a keen eye on delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence, our solutions help advisors and firms manage their businesses efficiently and serve their clients effectively. * Based on number of broker-dealer clients, InvestmentNews August 2013 Important Legal Information—Please read the disclaimer before proceeding • Information and content presented in this document are not intended or construed as an offer, solicitation or a recommendation to purchase any security. Pershing LLC and its affiliates do not provide legal or tax advice. The information and tools herein are not intended nor written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. You should consult your own legal advisors and/or tax advisors to understand the legal and tax related consequences of any information or actions described herein. • The contents may not be comprehensive or up-to-date, and Pershing LLC will not be responsible for updating any information contained within this document. Pershing makes no representation as to the accuracy, completeness, timeliness, merchantability or fitness for a specific purpose of the information provided in this document. Pershing assumes no liability whatsoever for any action taken in reliance on the information contained in this document, or for direct or indirect damages resulting from use of this document. Any unauthorized use of material contained in this document is at the user’s own risk. Copyrights and Trademarks All information contained in this chapter may not be reproduced, transmitted, displayed, distributed, published or otherwise commercially exploited without the written consent of Pershing LLC.

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PSCU, United States Service Request Management Nominated by OpenText, Canada EXECUTIVE SUMMARY / ABSTRACT PSCU is one of the largest credit union services organizations in the U.S., representing close to 700 credit unions. PSCU implemented OpenText Assure in 90 days, enabling them to realize significant cost savings, improve customer service and satisfaction, and increase efficiencies, The Assure application factory provides out-ofbox, industry best practice components to ensure a quick time-to-value and continuous process improvement. PSCU Customer Service Agents use the Assure Work Center to manage requests and resolve issues very quickly. The PSCU customers at the credit unions use the self-service portal to log requests and monitor the status of requests in real-time. The BPM CoE team was instrumental in delivering a successful solution in such a short time frame. This team combined BPM and Six Sigma specialists to bridge the gap between IT and the business and build trust and collaboration, which was a huge advantage. After implementation, PSCU was able to increase customer satisfaction levels as was noted in recent customer surveys, and by using the out-ofthe-box reporting tools, they can now identify trends, predict issues, and proactively identify new service needs. PSCU now responds faster and more efficiently to customer requests, process double the amount of requests with the same amount of staff, and has eliminated 90% of the paper in the process, saving them over $300,000 annually. This is a competitive advantage that PSCU is able to offer freeof-charge to the credit unions. According to Dan Rosen, Director of the Center for Process Excellence, “This solution sets PSCU far ahead of the competition, and is very strategic to the entire organization.”

1. OVERVIEW Operating in a highly competitive industry, PSCU must deliver consistent, superior service to credit unions. PSCU’s Center of Process Excellence, a team consisting of process improvement and Business Process Management (BPM) technology expertise, identified several areas of service delivery where inefficient manual processes could be changed and automated to dramatically improve customer satisfaction and productivity. With OpenText Assure, PSCU has transformed its services into a leading differentiator for its business.

2. BUSINESS CONTEXT PSCU provides traditional and online financial services to credit unions and their customers, including industry-leading credit, debit, ATM, and pre-paid card servicing to more than 14 million card holders; innovative bill payment solutions to over one million online subscribers; and e-commerce solutions including mobile banking. Operating in a highly competitive industry, PSCU must deliver consistent, superior service to credit unions. Prior to implementing OpenText Assure, PSCU had a very manual, paper-based process for handling customer requests. Because of this manual process, customer service representatives had to do traditional “swivel seat” integration between their

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PSCU various systems. They lacked a single view of their customer due to these application silos, which led to inconsistent customer service and a failure to meet service level goals. PSCU also lacked visibility into a very fragmented customer service process. A customer service rep could not accurately tell the customer where their request was in the process or what the current status was. After conducting a customer service survey, PSCU realized that their customer service was in need of improvement and much homework was done to identify where the process broke down and how they could gather and report on additional customer service metrics. The project was sponsored and paid for by the business and business executives were heavily involved throughout the project lifecycle. The IT organization created a BPM CoE team and this team worked closely with a Six Sigma team throughout the project to make sure that they were capturing and measuring the right customer service metrics. From day one, the primary goal was to understand the customer or credit union that was contacting PSCU and guarantee that customer received a positive, intimate, personal experience.

3. THE KEY INNOVATIONS After assessing three major vendors based on expertise, product, and pricing, PSCU selected OpenText Assure which provides a portfolio of out-of-the-box best practice processes, including request management, incident management, and case management. This platform includes a work center to improve productivity, advanced reporting and analytics for business insight, and change tools for process improvement. Rosen explains, “We needed to be able to grow with a solution that was flexible, adaptable, and priced right. OpenText fit the bill perfectly.” Having conducted a complete assessment of existing systems and requirements, the PSCU team set an aggressive schedule to deploy the customer service solution, dubbed “TIMS” (Total Inquiry Management System). TIMS would serve both internal PSCU agents and external customers, and PSCU planned to launch the new system within 90 days. During the first phase of the project, the primary objective was to improve usability and request delivery through the automated inquiry and request routing capabilities. With the final phase deployed, credit unions can now log into a personalized customer portal to submit a request to PSCU. The solution’s smart routing procedures allow the request to be sent automatically to the proper team based on the request type. The internal team then works from their personalized agent portal to resolve the request. The automated tracking functionality ensures that each request is addressed and resolved on a timely basis. The credit unions are empowered through the self-service customer portal to view the status of their submitted requests, search for and export their current requests, and provide or request additional information on previously submitted ticket. PSCU and its customers now have complete visibility into credit union requests from creation to resolution. Rosen explains, “The credit unions now have immediate access to see the progress of inquiries and requests within our system. We have empowered our customers with a portal that was so easy to use, no training was required. The feedback from our customers since implementing TIMS has been overwhelmingly positive.”

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PSCU 3.1 Business In the past, PSCU’s process for handling service requests and issues from credit unions included numerous manual and paper-intensive steps. The manual nature of most of these steps made tracking of both the overall process as well as individual steps extremely difficult. This lack of visibility and inability to identify the responsible party at any one point within the process negatively impacted the overall service delivery. Credit unions submitted requests that routed to PSCU account management specialists; however, there was no single source of the truth for reporting on and identifying the status of these requests. PSCU knew that improving overall customer satisfaction would require a different approach that moved away from a manual, paper-based environment. It was clear that PSCU and the credit unions needed real-time visibility into the status of requests, as well as reporting capabilities. Reports on historical trends would provide valuable insight to improve the performance of overall operations. Daniel Rosen, Director of the Center for Process Excellence, summarizes the requirements; “We needed a solution that would provide more visibility, easier reporting, and faster response time to customer demands.” The decision was made to implement a customer service platform and portal for all credit union requests, which would allow PSCU to track requests, assign ownership, manage accountability and service-level agreements, and ensure proper resolution of each item. The deployment has dramatically increased PSCU’s ability to respond to and track incoming requests. “Last year, we responded to hundreds of thousands of requests from credit unions. This year, we’re on track to resolve more than double the request volumes without increasing head count. We are now able to tackle requests faster and more efficiently,” says Rosen. Feedback has been overwhelmingly positive, according to Danielle Hollis, PSCU BPM Developer. “All the PSCU service departments are impressed with how streamlined the OpenText Assure experience has been,” she says. “Now we have visibility to every request and inquiry electronically. We have eliminated 90 percent of the paper within the process and our service agents could not be happier.” Further, using the solution’s reporting tools, PSCU is now able to identify trends, predict potential issues, and proactively identify new service needs. “For example, the Assure solution enabled PSCU to see that 18 percent of customer requests were related to report generation. Since that finding, we’ve been able to automate responses to those requests and reduce our work queue by 30 percent,” Rosen adds. 3.2 Case Handling For PSCU, the next phase of implementation addressed a critical issue for credit unions and their customers—fraud management. Similar to the process of handling requests, the process of managing a case of suspected fraud on a credit card was a manual, paper-based effort that required—per month—more than 300 reams of paper, 15,000 folders, 12 ink cartridges, and shredding of 150,000 sheets of paper. Some of the most challenging cases could take up to 120 days to resolve. Using the case management tools, PSCU now offers a fraud management solution to its credit unions, with a comprehensive electronic repository for case documents and information, an automated fraud reporting process, and full visibility into the status of a case. When a fraud case is created via the portal’s fraud

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PSCU reporting function, a PSCU fraud agent sees it automatically on his or her todo list, with all the relevant background information. In addition, credit unions now have real-time access to the case and the related documentation without having to call PSCU or wait for records to be provided. The PSCU fraud team has happily embraced the new electronic system. After a few hours of training, the team was able to go live the next day without support. “It is so intuitive,” says Rosen. “We eliminated their need for paper—and 30 days after launching the solution, the file folders were gone.” With an expected 150,000 – 170,000 fraud cases in the next year, PSCU anticipates significant savings simply via the reduction of paper documents used to manage cases. As a side benefit, Assure has reduced the risks associated with relying on paper files physically stored on the premises. PSCU can now meet its Business Continuity Planning (BCP) requirements, with redundant copies of all fraud cases. With its Eastern U.S. operation located in Florida, hurricanes and severe weather make BCP-readiness a necessity.

PSCU BPM Architectural Diagram 3.3 Organization & Social A key factor in PSCU’s success has been the collaboration of its technical and business teams within its Center for Process Excellence. Recently, PSCU’s team of technical BPM developers joined the Process Innovation and Excellence group, a team

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PSCU of Six Sigma–certified productivity specialists. Combining the forces of these two teams has bridged the gap between IT and the business, building trust and collaboration. Rosen comments, “The benefit of combining BPM and Process Improvement teams delivers a huge advantage.” The CoE team was also instrumental in supporting the integration efforts with all of their back-end systems to eliminate that swivel chair approach to data entry. PSCU’s customers are extremely happy and are actively engaging with PSCU. At one time they were frustrated with the process, but now they ask to be involved in defining the process and contributing to the success of the roll-out. The simplicity of the system makes it a lot easier to do business with PSCU and now their customer service ratings are improving. PSCU employees are also very happy with the system due to its simplicity and the integration with back-end systems. They too were actively involved in defining the requirements and ensuring that the product met their needs. PSCU executives are also very happy with the implementation and they realize that Assure is strategically important to how they deliver services and make money. Continued evolution and deployment of customer-facing initiatives is their number one corporate priority and it is this team that is delivering on these priorities.

4. HURDLES OVERCOME 4.1 Management  Change Management and ability to keep pace with the agility and speed of BPM development  Ability to look outside the box when developing new solutions and avoid replicating poor processes  Commitment, empowerment and availability  Establishing communication channels  Changing organizational framework (changing stakeholder, etc.)  Building the right team 4.2 Business  Similar to management, ability to think openly and avoid replicating poor processes  Commitment, empowerment and availability  Managing distractions from competing projects and deliverables  Being adaptable to iterative development and deployment versus a waterfall approach to project management and development  Huge change management component due to culture 4.3 Organization Adoption  Adoption of process transparency  Integrating with existing change control process  Partnering with the business  Appointing process stewards  Initial resistance to change and question the “why”  Lack of incentive to change behavior and adopt to new processes

5. BENEFITS 5.1 Cost Savings / Time Reductions $300,000 in savings annually in the cost of paper and ink to support a manual fraud management process, 30% cycle time reduction and improved satisfaction score by almost 100% from 42% to 82%

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PSCU 5.2 Increased Revenues Capacity to increase revenue by 10% due to BPM automation/workflow 5.3 Quality Improvements Improved BCP readiness and mitigated risk exposure to the organization. Reduced potential defect rates by 15% and now has the ability to manage inventory and improve adherence to chargeback regulations.

6. BEST PRACTICES, LEARNING POINTS AND PITFALLS 6.1 Best Practices and Learning Points  Build the right team – build a team with the right skills and experience. Augment staff with vendor consultants where gaps exist.  Partner with your vendor  Development a BPM Roadmap  Engage the business early on in any process improvement initiative program  Plan to re-plan – have a plan but remain flexible  Build a quality business case  Identify small scope initiatives (quick wins) at first and build iteratively on those deliverables before moving to complex projects  Hold daily scrums to keep team and business on task – hold sprint status playback to demonstrate progress and elicit feedback early and often  Establish clear communication channels  Utilize best practices and established methodologies – Agile, Business Analysis, SDLC/Project Management, Six Sigma, BPM, Architecture, etc. 6.2 Pitfalls  BPM is extremely fast and flexible which drives the business to developing BPM solutions without understanding the business problem.  BPM is extremely fast and flexible which drives the business and IT to try to use BPM for solutions that aren’t true processes.  Managing Demand – without a solid governance and prioritization process the BPM backlog can get unmanageable.

7. COMPETITIVE ADVANTAGES PSCU has been able to improve customer service without increasing costs which is something their competitors have not been able to do. The executives at PSCU credit BPM for this competitive advantage and their improved market readiness, which is why all priority 1 projects are now being run by the BPM CoE group. Due to the success of this first project, Assure will be enabling approximately 70 – 80% of the projects moving forward. The team has been extremely successful on their ability to deliver on their promises from a time and scope perspective.

8. TECHNOLOGY OpenText Assure was the BPM and Case Management solution used by PSCU. Other internal applications with which TIMS application interacts: 1. SQL Server Reporting Service – develop and deploy web-based TIMS reports 2. Sharepoint: All ticket attachments are stored in a Sharepoint folder created for each ticket/request 3. Exchange: TIMS sends out various status emails at each ticket stage/action. TIMS also received inbound email to [email protected] and a. Associates it with an existing ticket and updates the ticket

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4.

5. 6. 7.

b. Appears in “Inbound Email” queue in Agent Portal for each Team’s action Lawson: Uses a custom employee view to a. Populate SECUR employee fields b. Facilitates a synchronization process where we automatically add/delete BPM users based on ACTIVE or TERMED status in Lawson PRIME: ETL feeds of various PRIME tables with Credit Union and Card Program Info are nightly ETL’ed to our MS SQL server. We use these to constrict our TIMS Accounts and Contacts tables, as well as do lookups. Oracle: Custom code in Fraud BPM process to decode Credit Card numbers Billing: Fraud BPM “pushes” records to Billing app for transaction charges

9. THE TECHNOLOGY AND SERVICE PROVIDERS OpenText™ Assure – www.opentext.com Implementation was done with the help of the OpenText Professional Services Organization.

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TIAA-CREF, USA Nominated by IBM, USA 1. EXECUTIVE SUMMARY / ABSTRACT TIAA was the vision of the philanthropist Andrew Carnegie and founded in 1918 (nearly 100 years ago) through his Carnegie Corporation of New York and the Carnegie Foundation with the goal of supporting the financial well-being of college teachers through a pioneering system of annuities and low-cost life insurance. CREF was established in 1952. The organization now employs 9,000 employees in more than 90 local offices with $564 billion assets under the management as of May 2014. TIAA-CREF is currently serving 4.8 million individuals overall. TIAA-CREF has diversified product portfolio offerings, including retirement, IRA, brokerage, insurance, mutual funds, management of 529 college savings plans, trust and banking services, which, by virtue of their complexity, require a great deal of synergy and collaboration within and across the business lines. TIAA-CREF has implemented solutions to their stakeholders across diversified businesses, empowering them to collaborate and achieve a highly efficient and lowcost business model, mitigating operational risks, adhering to regulatory controls and enhancing customer satisfaction and case worker competence. With the case management end-to-end solution, TIAA-CREF case processes can now be consistent across all channels (web, phone and paper), achieving and optimizing a 360-degree case view. The solution enables all correspondence from all channels to be stored within the case folder and available to all necessary parties. To provide a comprehensive granular view of the case, TIAA-CREF provides an extensive set of case assets, which includes, but is not limited to, documents, subject matter expert/real-time correspondence and email, voice footages, tasks, timelines and actions, unique case notes and in-line productivity views. TIAA-CREF leverages advanced analytics capabilities to provide adaptive and dynamic work queue management, providing case visibility to all stakeholders, and manages productivity to optimize case outcomes. The roll out of the case management solution has resulted in major benefits: speed to market, with a simple and shortened effort cycle; reduced costs, by extending this solution to new/additional related business processes with an incremental cost savings of 80%; increased revenues, due to shorter and error-free client servicing cycles, reducing operational dollars spent; and, quality improvements, with enhanced quality client servicing resulting in a reduction in the need for complaint handling.

2. OVERVIEW TIAA-CREF has implemented Advanced Case Management solutions across multiple business areas and product lines, such as Institutional Onboarding, Plan and Fund-lineup Management Services, Pension Distributions, Survivor Benefits Compliance Management Services, Brokerage Client Onboarding and Cash Management Services. One such project was scoped to automate Pension Distribution request processing. Clients (Participants) enrolled and contributing to pension plans administered by TIAA-CREF on behalf of their employers can request withdrawals/distributions out

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TIAA-CREF, USA of their accumulated contract balances based on various plan rules due to a personal hardship or required minimum distributions to fulfill their tax obligations. Clients have multiple choice options to take their withdrawal/distribution as a cash payment, external rollover, internal rollover or direct transfer to an alternate carrier of the plan. The business process was previously extremely complex involving eligibility determination and requiring wet-signed supplemental documents verification, plan sponsor approvals, term date verifications and random quality checks before making payments. Additionally, when requested, TIAA-CREF had to provide options to clients for setting up recurring payments for various payment frequencies and allowing modification of payment terms and conditions over the cycle of scheduled payments. We encountered various complex challenges in this initiative ranging from defining the target state case processing flow accommodating all of the business processing issues, blending the case management design into TIAA-CREF’s complex application topology and bringing about case management awareness among the identified case workers. Our efforts resulted in successful delivery of an end-to-end solution offering a gamut of benefits in the form of: a. Channel consistent Case Processing; b. Automation of feasible process activities; c. Implementation of process controls; d. Empowering cross team collaboration on human interactions; e. Audit trail of processed activities; and f. Optimal 360-degree case visibility to all stakeholders – clients, front, middle and back-office operational teams.

3. BUSINESS CONTEXT Following the implementation of the Advanced Case Management solution, the business process operations in the retirement business area: a. Are more automated and less manual intensive; b. Are more efficient, with quicker processing times; c. Have robust monitoring of regulatory controls; d. Mitigated exposure to operational risks; e. Include end-to-end visibility on the back-end processing to various stakeholders (clients, front, middle and back-office operations); f. Facilitate cross team collaboration on tasks requiring cross departmental interventions; g. Included an application/solution topology with a fewer multiple homegrown workflow and content management systems processing discretely.

4. THE KEY INNOVATIONS With the successful implementation of case processing solutions, our retirement business sponsors received a low cost and highly efficient operating case management solution for processing the pension distributions/withdrawals. 4.1 Business The solution delivered satisfied its stakeholders (clients, front, middle and backoffice operational teams) in terms of: 1. Speed and Efficiency in processing distributions/withdrawals with shorter turnaround times greatly enhanced our client experience;

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TIAA-CREF, USA 2. Cross department collaboration and visibility on the case assets for Case Workers increased their competency levels and empowered them to take quicker and better-informed decisions optimizing outcomes; 3. Implementation of process controls and audit trails satisfied our regulator y requirements; 4. 360-degree view and case analytics empowered our management to monitor for the optimized outcomes and identify cross/up-selling opportunities. 4.2 Case Handling Prior to implementation of the case processing solution, each request from the client was handled through a chain of independent tasks in a disparate workflow and content management solution with no provision for tethering them from end-toend visibility, controls, audit trail and cross team collaboration perspectives. Post implementation, a case folder was created for each request and a streamlined case execution was filed of all the case artifacts/assets fulfilled to ensure a satisfactory solution. We had defined a universal case template of reusable case artifacts such as: - Case Properties - Case & Task Types - Documents - Role(s) & Profile(s) - Caddy Widgets; packaged into ONE solution box and successfully deployed across a multitude of business processes in the payout/distribution business area. The following diagram showcases a skeleton view of the universal case processing solution rolled out to our payout/distributions business users.

Universal Payout & Distributions Case Template

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Channel Consistent Use Case Unique Case Handling Functions A short summary on some of the unique case handling functions implemented through Case Manager follows: 

Adaptive Processing – The solution implemented fulfilled adaptive case processing requirements with the following reusable artifacts:

Role(s) & Associated Human Tasks a. Processor Role – This is a universal role object designed and implemented for all of the middle/back-office processing solutions in Case Manager. The paradigm it follows is “Once a Processor, always a Processor”. Irrespective of the multiple organizational departments performing first level case processing on the various human tasks, the case workers are all mapped into a common “Processor” role, which enables standardization of role and queue configurations and work management among the workers. The tasks performed by the case workers belonging to this role are also designed in the solution based on the nature of processing functions such as: i. Request Capture Task – This is a universal task template for any case type involving “Paper” as a channel of entry into back-office and requires the case worker mapped to the Processor Role to perform data entry functions on the case. ii. QC Resolution Task – This is a collaborative task created on-demand by a case worker (QC Processor) as part of performing the Quality Check task processing. This is a universal task template for any case type wherein the case worker mapped to the Processor Role requires resolving the data entry errors identified as part of the quality check task processing.

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b.

c.

d.

iii. Omni Post Reject Task - This is a universal task template for any case type requiring the case worker mapped to the Processor Role to fix platform processing rejects by the system of records on a transaction processed within a case. QC Processor Role – This is a universal role object designed and implemented for all of the middle/back-office processing solutions in Case Manager. Irrespective of the multiple organizational departments performing oversight (Quality Check) processing on the various cases in-progress, the case workers are all mapped into a common “QC Processor” role, which enables standardization of role and queue configurations and work management among the workers. The tasks performed by the case workers belonging to this role are also designed in the solution based on nature of processing functions such as: i. Quality Check Task – This is a collaborative task created on-demand based on a business rule validation of a pre-defined QC criterion for a case worker (QC Processor) to perform an oversight process on the case data. Queue Manager Role – This is a universal role object designed and implemented for all of the middle/back-office processing solutions in Case Manager. This role is primarily assigned to process owners to perform queue management and work assign/re-assign functions among the various case workers in the context of their case processes. Solution Administrator Role – This is a universal role object designed and implemented for all of the middle/back-office processing solutions in Case Manager. This role is primarily assigned to solution administrators to perform administrative functions on the case solution and support the case workers in effective and efficient processing. Tracking System Activities/Events Performed in External Applica-

Tasks tions In order to provide a 360-degree view of the case processing status, the case solution required to track system activities and/or events performed in external applications (record keeping, partner institutions, CRM systems etc.), we have defined generic/universal tasks processing system steps exclusively to track and monitor such activities and events providing visibility to the case workers and other stakeholders reviewing a case and its status. Some of such common system activities/events performed by outside applications and yet tracked on the case view are: a. Awaiting Supplemental Forms – A universal system task template to track the event of waiting for secondary forms to be received from the client before releasing the transaction for processing in system of records. Upon receipt of the associated forms through the imaging business process, the case is systematically updated with the form images, and a dynamic human task is assigned to a case worker to review the form. The content of this task is adaptive to the type of form being received and is required to be reviewed by the case worker. b. OTP Verification – A universal system task template to track the event of waiting for clients to authenticate the OTP (One Time Passcode) issued as a security control before processing key case transactions with monetary involvement. c. Plan Sponsor Approval - A universal system task template to track the event of Plan Sponsor (Institution Partner) approving key Client (Institution Employee) case transactions with monetary involvement.

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

d. Awaiting Omni Post Run - A universal system task template to track the system activity performed in OMNI (TIAA-CREF Record Keeping Application) for case transactions released for final processing. Business Analytics & Metrics The following snapshot showcases a few of the analytics being retrieved from the case processing data:

Metrics and Analytics  Business Rules We have externalized all of our business rules into a Rules Engine to provide us channel consistent processing experience and quick/easy maintenance. 4.3 Organization & Social Prior to implementation of the case management solution, each request split into disparate workflow tasks and was processed by different departments, which often lacked awareness or knowledge of the status of the request once it left their boundaries. Collaboration was manual and teams lacked skillsets outside of their routine job duties. Post implementation, the teams got an opportunity to break their boundaries and get visibility on the end-to-end request through their association to all the case artifacts/assets from a single folder. This also presented them with an opportunity to enrich their awareness/competency levels on case processing activities performed beyond their team boundaries in order to successfully fulfill/deliver clients’ servicing requirements. Due to early identified success, retirement business sponsors have formed a Case Management Delivery team with primary responsibility to identify potential business process candidates requiring implementation of the Case Management solution leveraging all of the benefits realized so far. The following diagram showcases a comprehensive view of the organization’s Business Process Vision 2020 map for Case Management implementation.

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Operational Synergy in Motion through Case Management

5. CHALLENGES OVERCOME Management Challenges from a management perspective primarily were how to infuse confidence on making a final go decision on adopting the case management methodology and solution as the optimum model for achieving all of the business and technology goals laid out in the organization’s business and IT road map. We successfully overcame this challenge through conceptualization and presentation of a blueprint of the futuristic case map. We built a quick win proof of concept showcasing the tangible benefits of a full-blown operational-model solution. Business As part of the management approval, we were required to get a consensus from our business partners on the need for adopting Case Management solutions. We worked through this objective by conducting awareness sessions with key business stakeholders through concept presentations and building a small scale prototype solution for one of their key challenging business processes showcasing conceptual benefits when implemented on a large scale. The business was quick and adaptive to visualize the case management strategy and its benefits in the long run to meet all of their key business goals in TIAA-CREF Vision 2020. Organization Adoption Upon receiving the buy-in and commitment from our management and business stakeholders, our next project goal was to socialize the case management methodology and tools across the pilot project stakeholders of our organization – End Users (case workers) of the solution, IT partners, audit and compliance managers and others. This was fulfilled through IT Expo shows wherein we demonstrated the solution delivered for the Pilot Release. In addition, we organized scheduled demos to multiple groups of case workers, educating them on the tools, concepts and benefits to be reaped when effectively implemented.

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TIAA-CREF, USA 6. BENEFITS The successful rollout of the case management solution to our retirement business partners for automating the payout/distribution business processes has provided organizational benefits in the form of: a) Channel consistent case processing – Clients have a consistent and pleasant experience irrespective of any channels they choose to submit and get visibility on the case processing status; b) Automation of feasible process activities – A sizeable number of human centric activities performed on the withdrawal/distribution request in the middle-office were automated yet maintained case visibility; c) Flexible and ad-hoc tasks – Case workers have been empowered to create and assign on-demand tasks in the context of the case processing as needed; d) Empowering cross team collaboration on human interactions – Case workers can now cross collaborate with each other in the context of the case and share their knowledge or seek clarifications as needed to make well-informed case decisions; e) Audit trail of processed activities – A comprehensive case diary is filed, tracking and providing visibility into the process audit trail; f) Implementation of process controls – Key Process Controls like SLAs and Random Quality Checks have been implemented; g) Optimal 360-degree case visibility to all stakeholders – clients, front, middle and back-office operational teams; h) Metrics and analytics are being pulled out for case monitoring and cross/up-sell opportunities.

360-degree Case View – Collaboration, Ad-hoc tasks & Audit 6.1 Cost Savings / Time Reductions The design and roll-out of a universal case management solution across all of the varied payout/distribution transactions have resulted in the following benefits:

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Speed to Market – As more payout-related transactions are identified for automation, extending the case management solution to them has been a simple and shortened effort cycle. Reduced Costs – We have been successfully extending this solution to new/additional related business processes with an incremental cost, resulting in savings of 80% of what we would have spent otherwise.

6.2 Increased Revenues Our stakeholders (front, middle, back-office, regulatory and compliance teams) now have first-hand insight into case information in a single view tethered together endto-end, resulting in shorter and error-free client servicing cycles, thereby reducing the operational dollars spent. The solution delivered has optimal automation of human centric activities minimizing human touch points on a case, thereby allowing our case workers to focus on complex transactions exclusively. With the time and effort saved in their routine job duties, the case workers are now available to service other business transactions/additional volumes without any incremental operational costs. 6.3 Quality Improvements The automated case controls have greatly reduced have enhanced the quality of case processing, resulting in satisfied clients and regulators. The enhanced quality of our client servicing has benefitted us with a reduction in complaint handling.

7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Start with defining a target state case model encompassing the case assets required to be built as part of the solution template;  Organize the case artifacts with generic and reusable case and task skeletons to extend the solution to futuristic related transaction processing;  Define an organized document folder structure (inbound vs. outbound content) so to have an optimized federated lookup across the consumers;  Define Solution Role(s) by grouping by similar case functions performed rather than by departments;  Always take a back-up of the TOS – target object store and DOS – design object store before any solution deployments so as to allow easy and quick restoration to original state prior to deployment;  Always build your own wrapper services on top of the out-of-the-box provided Case/CMIS REST Services when there is a need to aggregate logical yet multiple functions fulfilled by individual services;  Create a global solution template housing the case properties and documents that are required to be used globally across multiple solution(s); and  In order to benefit from optimized case processing, avoid using content and human BPM for orchestrating the case tasks with external applications and instead leverage system BPM. Below is a conceptual view on leveraging heterogeneous BPM approach for Optimized Case Management benefits

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8. COMPETITIVE ADVANTAGES TIAA-CREF is the among the first financial services providers to begin implementing the Advanced Case Management across its enterprise, including multiple business areas in the retirement, IRA and brokerage services. We are also among the top organizations in the Industry to implement case management solutions leveraging system, content and human management process paradigms to automate business processes involving multiple application integrations. We have a core business and technology team in place to extend the case management footprint across all of the critical business processes in the organization’s Vision 2020 process map.

9. TECHNOLOGY The following diagram showcases a comprehensive view of the technology infrastructure leveraged from IBM’s FileNet & Advanced Case Management (IBM Case Manager) components used to implement case management solutions.

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10. THE TECHNOLOGY AND SERVICE PROVIDERS The primary solution software for this adaptive case management solution was provided by the IBM Enterprise Content Management (ECM) software division http://www-03.ibm.com/software/products/en/casemana. The software solution is known as the IBM Case Manager. It is a comprehensive advanced case management solution, which also integrates with a document management repository and capture components.

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UBS Bank, Worldwide Nominated by Whitestein Technologies 1. EXECUTIVE SUMMARY / ABSTRACT Our submission is based on the successful adoption of Adaptive Case Management by UBS Wealth, a division of UBS Bank. UBS is enhancing their global operations with client-centric collaboration, operational visibility, adaptive process improvement, through the 'PM1' portfolio management suite built with the Living System's Process Suite (LSPS). LSPS is designed for cases in which adaptive changes to data state are made by a goal-oriented software controller. This ensures that cases evolve in coordination with events and situational change in order to adapt in real-time to a goal-focused execution path. In partnership with Whitestein, PM1 was built by Expersoft Systems, a global vendor of Portfolio and Wealth Management applications for retail and private banks, independent wealth managers, and asset management providers. LSPS provided Expersoft with the ability to model a comprehensive set of goal-oriented processes that form the core of their portfolio management system. PM1 with LSPS integrates and extends UBS’ complex ecosystem of banking applications, supporting the achievement of transversal goals within a flexible, integrated, and intuitive environment for both the bank and their customers. Each case follows a goal-driven pathway defined by the customer’s specific objectives, while meeting both the unique local requirements that vary between regions, yet ensuring that each region complies with the bank’s global goals and policies.

2. OVERVIEW UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland. It provides investment banking, asset management and wealth management services for private, corporate and institutional clients worldwide, as well as retail clients in Switzerland. The name "UBS" was originally an abbreviation for the Union Bank of Switzerland, but it ceased to be a representational abbreviation after the bank's 1998 merger with Swiss Bank Corporation. The company traces its origins to 1856, when the earliest of its predecessor banks was founded. UBS is the largest bank in Switzerland, operating in more than 50 countries with about 63,500 employees globally as of 2012. It is considered the world's largest manager of private wealth assets, with over CHF2.2 trillion in invested assets, a leading provider of retail banking and commercial banking services in Switzerland. UBS is enhancing their global wealth management operations with client-centric collaboration, operational visibility, adaptive process improvement, through the 'PM1' portfolio management suite built with the Living System's Process Suite (LSPS). In partnership with Whitestein Technologies, PM1 was built by Expersoft Systems, a global vendor of Portfolio and Wealth Management applications for retail and private banks, independent wealth managers, and asset management providers. LSPS provided Expersoft with the ability to model a comprehensive set of goaloriented processes that form the core of their portfolio management system.

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UBS BANK, WORLDWIDE PM1 with LSPS integrates and extends UBS’ complex ecosystem of banking applications, supporting the achievement of transversal goals within a flexible, integrated, and intuitive environment for both the bank and their customers. Each case follows a goal-driven pathway defined by the customer’s specific objectives, while meeting both the unique local requirements that vary between regions, yet ensuring that each region complies with the bank’s global goals and policies.

3. BUSINESS CONTEXT As the global economy begins to emerge from several years of economic crisis, UBS is embarking on a strategy to establish, and in some cases re-establish, presence in multiple global emerging markets spanning Latin America, MENA, and APAC. A component of this is launching a single, modular, client-centric front office platform for wealth management that can be deployed and integrated rapidly with any existing application infrastructure. The initial state in each market is this either greenfield or brownfield with a mixture of applications to be either preserved or obsoleted. The emerging markets strategy demands software that is flexible and oriented toward managing clients as adaptive cases. Success of the emerging markets strategy will have an influence on the evolution of UBS strategy beyond emerging markets to established core markets.

4. THE KEY INNOVATIONS 4.1 Business Wealth management is by definition a client-centric business where the focus of all activities is on building valued and sustainable relationships with individuals of high net wealth. This new banking front- and middle- office solution is focused on automating the phases of client case management including prospecting (seeking new candidate clients), onboarding (transitioning a prospect into a bank client), and advisory (building an asset portfolio). This satisfies various needs including ensuring that the prospect/client is managed properly and efficiently, that staff tasking is focused on priority issues, and that regulatory and compliance issues are appropriately observed. However, the key impact on business is derived from the solution’s ability to optimize and govern the processing of client cases in terms of mandated and ad-hoc goals associated with prospect/client requirements, with local operational, performance, and compliance obligations (spanning multiple client cases), and with global corporate strategy. By actively combining these objective factors, differentiated market advantages are created which help UBS to attract key clients and establish long-lasting, sustainable relationships. 4.2 Case Handling Cases are handled primarily by local user resources. Generically, Client Advisors handle individual cases, report to a ‘Desk Head’ and are supported in administrative duties by Client Advisor Assistants. However, this structure is variable according to location. Client Advisors are responsible for the lifetime of individual cases from prospecting through off-boarding. Client Advisor Assistants support one or more Client Advisors in performing certain tasks according to their right of access to client data.

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UBS BANK, WORLDWIDE Before the solution common working modality spanned a range of paper-based activities with various disconnected user interfaces onto legacy applications. Significant efficiency gains and improved comfort of use is achieved with the new unified front-office system that is built on a modern Java-based technology stack with tiered delineation between data, logic, and Web-client presentation. Comprehensive integration is supported at all levels, and separation of concerns ensures that different databases can be supported reducing the need for large scale data migration for brownfield deployments. Managers at local, regional, and global offices have the ability to inspect ongoing cases according to their information security rights, and to influence the goals that drive case efficiency. For example, a regional manager can set a weighting factor on a goal to emphasize the necessity of accelerating onboarding cases for individuals of net wealth above a set threshold, with a specific domicile, and during a specific period of the year. This goal then directly influences case task distribution patterns, including optimizing task ordering to circumvent bottlenecks and increase work throughput. With regard to client interaction, the new user interface supports ad-hoc annotations to client case history, collaborative decision making on case state to progress a workflow, attachment of documents associated with a case, access control for edit vs. view rights on client data, and more. Real-time case reporting dashboards allow all stakeholders, including the client when appropriate, to monitor case progress and track all dependencies from a unified perspective. 4.3 Organization & Social For many markets into which the solution is being deployed, the impact is a radical step-change in usage modality from working with a complex mixture of paperbased activities with legacy infrastructure, to a unified front-office interface that directly supports collaborative work. Feedback from users is universally positive as they are able to now flexibly manage prospect/client accounts throughout their entire lifecycle, working in close collaboration with colleagues. In particular data annotations made by users allow client cases to automatically transition state or (shared) ownership, while ensuring that pertinent trace information is recorded for audit purposes. Moreover, the interface supports/case task delegation, escalation, and collaborative effort. The latter is assisted by integrated social chat widgets supporting dialog-based negotiation over how to resolve specific issues. Tasks are assignable to individuals or role groups; the latter of which is dynamic according to authoritative administration. Tasks may be shared, and automatically shifted between user work queues according to measurable performance goals. Each user has task lists from which they can pick work items. Priorities are indicated, as is ownership and status. Work obligations are clearly specified in terms of who bears final responsibility for task completion. Full email and mobile device support is integrated, including task completion via email when feasible and appropriate.

5. HURDLES OVERCOME A central hurdle overcome was the efficient translation of business requirements into solution features. This was amplified by the necessity to meet requirements sourced from the needs of different deployment locations when seeking to build a

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UBS BANK, WORLDWIDE unified, modular solution. Contributing to this was the identification of a common lexicon of business terminology and semantic mapping to regional differences. Another major hurdle was achieving consensus on the overall solution approach. Once management approval for the global initiative was agreed the selection of solution was driven by various factors including an older incumbent use case and the significant attraction of business to the adaptive case management focus of the client-centric approach taken. IT was particularly positive due to the strongly integration-focused architecture and usage of new technology, including model-driven application design. Lastly, a key challenge is presenting new technology, new user interfaces, and new collaborative work modalities, in such a way as to support the user in recognizing their own position as a stakeholder. This is a varying challenge across different cultures and strong local support is critical to achieving good results. User adoption is ongoing in many regions of the world, with response to the new solution being resoundingly positive.

6. BENEFITS 6.1 Cost Savings / Time Reductions The solution improves efficiency in the organization of internal staffing resources around the management of individual clients. In particular activity transitions are faster and more seamless with consequent reductions in time spent on collaboration and task execution. Decisions related to compliance suitability, restriction checks, product matching, and other topics including approvals are considerably accelerated, more accurate, and auditable. Transparency is improved. Performance control is now central to the evolution of cases which enforces time/cost constraints and more efficient governance. 6.2 Increased Revenues Creating a modular, adaptive, case-driven solution supports deployments that can be rapidly configured for specific regional requirements and variations such as those relating to regulatory compliance and language. This reduces capital investment in standing up new deployments, encourages reusability, and consequently provides a basis for improvement in operational margins. Moreover, goal-driven governance and optimization of case management within and between regional banks significantly improves cost saving potential by encouraging more efficient task distribution and resource management while offering a better client experience that competing banks. 6.3 Quality Improvements Users of the solution, e.g., client advisors and client advisor assistants, become more efficient in managing their client cases, in particular in terms of task distribution to balance workload and achieve improved prioritization, approval, and escalation management. Automatic auditing of all actions performed by users provided full accountability and decision tracing. This is critical for ensuring verifiable, non-repudiable regulatory compliance. Goal-driven governance provides measures and optimization control points not only related to the activities of individual cases, but across cases, and across offices spanning regions and global operations.

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UBS BANK, WORLDWIDE 7. BEST PRACTICES, LEARNING POINTS AND PITFALLS 7.1 Best Practices and Learning Points  Delivering a modular solution requires that a principled approach is taken to configuration and deployment; particularly that opportunities to extend functionality are properly preserved.  LSPS offers a modernization framework that allows the offset of legacy functionality with an efficient model-driven replacement value well in excess of 10:1. This incorporates the ability to manage logic at model level, rather than code level.  In deployments where the solution operates alongside existing systems, best practice is to utilize LSPS as an integration framework spanning all systems, e.g., a user interface can unify access to multiple applications via integrated tabs, portlets, specialized dashboard widgets, etc.  Non-standard functionality can, if required, be added ad-hoc onto individual cases, or groups of cases, using real-time transfer of model updates to execution contexts.  Users may be enthusiastic about adopting the solution, but nevertheless need to be provided sufficient opportunity to properly adapt their working modality toward sharing tasks according to priority, workload, and the attainment of goal metrics. 7.2 Pitfalls  Uptake must support both greenfield deployments, but most critically brownfield deployments where supporting migration from traditional work methods is critical to encourage a seamless transition.  The definition of goals must be undertaken judiciously in order to avoid competing and conflicting goals when possible, although resolution mechanisms are available.  The new solution encourages collaboration which implies the necessity of exposing work activities to co-workers. Any resistance to this change in modality must be offset through demonstration of efficiency gains and reduction in risk of error.

8. COMPETITIVE ADVANTAGES The global banking industry is seeking opportunities to reestablish credibility, with wealth divisions of banks competing to attract and retain high net wealth clients. A modern, client-centric approach to this is critical and the foundational principal driving the choice of LSPS built case management technology by UBS. By encoding operational and governance goals into the performance of cases and spanning multiple cases at regional and global level, LSPS technology is helping to realize the true potential of ACM by connecting action with objective. This approach is new, and powerful when used to coordinate action across multiple levels or organization from team, through department, to inter-organizational value chains. Sustaining established competitive advantage is achievable due to the solution design supporting rapid inclusion of new features, and (real-time) adaptation of current features, to meet the evolving needs of existing clients and new means to target and attract new clients, e.g., reaching out via new forms of communication media.

9. TECHNOLOGY The solution is built with the Living System's Process Suite (LSPS) from Whitestein Technologies. LSPS is explicitly designed to manage cases in which adaptive changes to data state drive collaborative work streams; these changes are managed

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UBS BANK, WORLDWIDE intelligently by a goal-oriented case controller. This mechanism ensures that cases evolve in coordination with events and situational change in order to adapt in realtime to a goal-focused execution path.

10. THE TECHNOLOGY AND SERVICE PROVIDERS In partnership with Whitestein, PM1 was built by Expersoft Systems, a global vendor of Portfolio and Wealth Management applications for retail and private banks, independent wealth managers, and asset management providers.

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Appendix

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WfMC Structure and Membership Information WHAT IS THE WORKFLOW MANAGEMENT COALITION? The Workflow Management Coalition (WfMC), founded in August 1993, is a nonprofit, international organization of BPM and workflow vendors, users, analysts and university/research groups. The Coalition’s mission is to promote and develop the use of collaborative technologies such as workflow, BPM and case management through the establishment of standards for software terminology, interoperability and connectivity among products and to publicize successful use cases.

WORKFLOW STANDARDS FRAMEWORK The Coalition has developed a framework for the establishment of workflow standards. This framework includes five categories of interoperability and communication standards that will allow multiple collaboration products to coexist and interoperate within a user’s environment. Technical details are included in the white paper entitled, “The Work of the Coalition,” available at www.wfmc.org.

ACHIEVEMENTS The initial work of the Coalition focused on publishing the Reference Model and Glossary, defining a common architecture and terminology for the industry. A major milestone was achieved with the publication of the first versions of the Workflow API (WAPI) specification, covering the Workflow Client Application Interface, and the Workflow Interoperability specification. In addition to a series of successful tutorials industry wide, the WfMC invested many person-years over the past 20 years helping to drive awareness, understanding and adoption of XPDL, now the standard means for business process definition in over 80 BPM products. As a result, it has been cited as the most deployed BPM standard by a number of industry analysts, and continues to receive a growing amount of media attention. Workflow Reference Model The Workflow Reference Model was published first in 1995 and still forms the basis of most BPM and workflow software systems in use today. It was developed from the generic workflow application structure by identifying the interfaces which enable products to interoperate at a variety of levels. All workflow systems contain a number of generic components which interact in a defined set of ways; different products will typically exhibit different levels of capability within each of these generic components. To achieve interoperability between workflow products a standardized set of interfaces and data interchange formats between such components is necessary. A number of distinct interoperability scenarios can then be constructed by reference to such interfaces, identifying different levels of functional conformance as appropriate to the range of products in the market.

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WFMC STRUCTURE AND MEMBERSHIP INFORMATION

WORKFLOW REFERENCE MODEL DIAGRAM XPDL (XML Process Definition Language) An XML based language for describing a process definition, developed by the WfMC. Version 1.0 was released in 2002. Version 2.0 was released in Oct 2005. The goal of XPDL is to store and exchange the process diagram, to allow one tool to model a process diagram, and another to read the diagram and edit, another to "run" the process model on an XPDL-compliant BPM engine, and so on. For this reason, XPDL is not an executable programming language like BPEL, but specifically a process design format that literally represents the "drawing" of the process definition. Thus it has ‘XY' or vector coordinates, including lines and points that define process flows. This allows an XPDL to store a one-to-one representation of a BPMN process diagram. For this reason, XPDL is effectively the file format or "serialization" of BPMN, as well as any non-BPMN design method or process model which use in their underlying definition the XPDL meta-model (there are presently about 60 tools which use XPDL for storing process models.) In spring 2012, the WfMC completed XPDL 2.2 as the fifth revision of this specification. XPDL 2.2 builds on version 2.1 by introducing support for the process modeling extensions added to BPMN 2.0. BPSim The Business Process Simulation (BPSim) framework is a standardized specification that allows business process models captured in either BPMN or XPDL to be augmented with information in support of rigorous methods of analysis. It defines the parameterization and interchange of process analysis data allowing structural and capacity analysis of process models. BPSim is meant to support both pre-execution and post-execution optimization of said process models. The BPSim specification consists of an underlying computer-interpretable representation (meta-

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WFMC STRUCTURE AND MEMBERSHIP INFORMATION model) and an accompanying electronic file format to ease the safeguard and transfer of this data between different tools (interchange format). Wf-XML Wf-XML is designed and implemented as an extension to the OASIS Asynchronous Service Access Protocol (ASAP). ASAP provides a standardized way that a program can start and monitor a program that might take a long time to complete. It provides the capability to monitor the running service, and be informed of changes in its status. Wf-XML extends this by providing additional standard web service operations that allow sending and retrieving the “program” or definition of the service which is provided. A process engine has this behavior of providing a service that lasts a long time, and also being programmable by being able to install process definitions.

AWARDS The Workflow Management Coalition sponsors three annual award programs. 1. The Global Awards for Excellence in BPM & Workflow1 recognizes organizations that have implemented particularly innovative workflow solutions. Every year between 10 and 15 BPM and workflow solutions are recognized in this manner. WfMC publishes the case studies in the annual Excellence in Practice series. 2. WfMC inaugurated a Global Awards program in 2011 for Excellence in Case Management2 case studies to recognize and focus upon successful use cases for coordinating unpredictable work patterns. Awards are given in the category of Production Case Management and in Adaptive Case Management which are both new technological approaches to supporting knowledge work in today's leading edge organizations. These awards are designed to highlight the best examples of technology to support knowledge workers. In 2013, WfMC updated the program to “WfMC Awards for Excellence in Case Management” to recognize the growing deployment of Production Case Management. 3. The Marvin L. Manheim Award For Significant Contributions in the Field of Workflow is given to one person every year in recognition of individual contributions to workflow and BPM standards. This award commemorates Marvin Manheim who played a key motivational role in the founding of the WfMC. The Workflow Management Coalition gives you the unique opportunity to participate in the creation of standards for the workflow industry as they are developing. Your contributions to our community ensure that progress continues in the adoption of royalty-free workflow and process standards.

THE SECRETARIAT Workflow Management Coalition (WfMC.org) Nathaniel Palmer, Executive Director

1

www.BPM-Awards.org

2

www.AdaptiveCaseManagement.org

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More Reading and Resources  e-Book Series

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Introduction to BPM and Workflow http://bpm-books.com/products/ebook-series-introduction-tobpm-and-workflow

Financial Services

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BPM in Healthcare Second Edition

http://bpm-books.com/products/bpm-in-healthcare-2nd-edition

Utilities and Telecommunications http://bpm-books.com/products/ebook-series-utilities-andtelecommunications

THRIVING ON ADAPTABILITY: Best practices for knowledge workers http://futstrat.com/books/ThrivingOnAdaptability.php ACM helps organizations focus on improving or optimizing the line of interaction where our people and systems come into direct contact with customers. It’s a whole different thing; a new way of doing business that enables organizations to literally become one living-breathing entity via collaboration and adaptive data-driven biological-like operating systems. ACM is not just another acronym or business fad. ACM is the process, strategy, framework, and set of tools that enables this evolution and maturity--Surendra Reddy.

BUSINESS AND DYNAMIC CHANGE The Arrival of Business Architecture http://bpm-books.com/products/business-and-dynamicchange These visionaries see the need for business leaders to define their organizations to be agile and robust in the face of external changes. This book will stimulate thinking about a more complete approach to business architecture. As such, it is imperative reading for executives, managers, business analysts, and IT professionals that require an understanding of the structural relationships of the components of an enterprise.

BPM EVERYWHERE Internet of Things, Process of Everything http://bpm-books.com/products/bpm-everywhere-print Critical issues currently face BPM adopters and practitioners, such as the key roles played by process mining uncovering engagement patterns and the need for process management platforms to coordinate interaction and control of smart devices. BPME represents the strategy for leveraging, not simply surviving but fully exploiting the wave of disruption facing every business over the next 5 years and beyond.

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FURTHER READING AND RESEARCH PASSPORTS TO SUCCESS IN BPM:

Real-World Theory and Applications http://futstrat.com/Passports.php Is your BPM project set up for success or failure? Knowing what BPM success will look like before you even begin will help you achieve it. So will knowing what are the most common causes of failure. BPM projects fail more often as a result of missed expectations than inadequate technology. Yet a greater number of BPM projects fail to launch at all due to the inability to be a credible business case. Discover why.

EMPOWERING KNOWLEDGE WORKERS: NEW WAYS TO LEVERAGE CASE MANAGEMENT futstrat.com/books/EmpoweringKnowledgeWorkers.php ACM allows work to follow the worker, providing cohesiveness of a single point of access. Case Management provides the longterm record of how work is done, as well as the guidance, rules, visibility and input that allow knowledge workers to be more productive. Adaptive Case Management is ultimately about allowing knowledge workers to work the way that they want to work and to provide them with the tools and information they need to do so effectively.

TAMING THE UNPREDICTABLE http://futstrat.com/books/eip11.php The core element of Adaptive Case Management (ACM) is the support for real-time decision-making by knowledge workers. Taming the Unpredictable presents the logical starting point for understanding how to take advantage of ACM. This book goes beyond talking about concepts, and delivers actionable advice for embarking on your own journey of ACM-driven transformation.

HOW KNOWLEDGE WORKERS GET THINGS DONE http://www.futstrat.com/books/HowKnowledgeWorkers.php How Knowledge Workers Get Things Done describes the work of managers, decision makers, executives, doctors, lawyers, campaign managers, emergency responders, strategist, and many others who have to think for a living. These are people who figure out what needs to be done, at the same time that they do it, and there is a new approach to support this presents the logical starting point for understanding how to take advantage of ACM.

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FURTHER READING AND RESEARCH DELIVERING BPM EXCELLENCE http://futstrat.com/books/Delivering_BPM.php Business Process Management in Practice The companies whose case studies are featured in this book have proven excellence in their creative and successful deployment of advanced BPM concepts. These companies focused on excelling in innovation, implementation and impact when installing BPM and workflow technologies. The positive impact includes increased revenues, more productive and satisfied employees, product enhancements, better customer service and quality improvements.

DELIVERING THE CUSTOMER-CENTRIC ORGANIZATION http://futstrat.com/books/Customer-Centric.php The ability to successfully manage the customer value chain across the life cycle of a customer is the key to the survival of any company today. Business processes must react to changing and diverse customer needs and interactions to ensure efficient and effective outcomes. This important book looks at the shifting nature of consumers and the workplace, and how BPM and associated emergent technologies will play a part in shaping the companies of the future.

BPMN 2.0 Handbook SECOND EDITION

(see two-BPM book bundle offer on website: get BPMN Reference Guide Free) http://futstrat.com/books/bpmnhandbook2.php Updated and expanded with exciting new content! Authored by members of WfMC, OMG and other key participants in the development of BPMN 2.0, the BPMN 2.0 Handbook brings together worldwide thought-leaders and experts in this space. Exclusive and unique contributions examine a variety of aspects that start with an introduction of what’s new in BPMN 2.0, and look closely at interchange, analytics, conformance, optimization, simulation and more.

BPMN MODELING AND REFERENCE GUIDE (see two-BPM book bundle offer on website: get BPMN Reference Guide Free) http://www.futstrat.com/books/BPMN-Guide.php Understanding and Using BPMN

How to develop rigorous yet understandable graphical representations of business processes. Business Process Modeling Notation (BPMN) is a standard, graphical modeling representation for business processes. It provides an easy to use, flow-charting notation that is independent of the implementation environment. See special 2-book offer online http://bpm-books.com/products/bpmn-best-books-bundle

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FURTHER READING AND RESEARCH IBPMS - INTELLIGENT BPM SYSTEMS http://bpm-books.com/products/ibpms-intelligent-bpm-systems-print "The need for Intelligent Business Operations (IBO) supported by intelligent processes is driving the need for a new convergence of process technologies lead by the iBPMS. The iBPMS changes the way processes help organizations keep up with business change," notes Gartner Emeritus Jim Sinur in his Foreword. The authors of this important book describe various aspects and approaches of iBPMS especially the impact and opportunity.

Social BPM

http://bpm-books.com/products/social-bpm-print-edition Work, Planning, and Collaboration Under the Impact of Social Technology Today we see the transformation of both the look and feel of BPM technologies along the lines of social media, as well as the increasing adoption of social tools and techniques democratizing process development and design. It is along these two trend lines; the evolution of system interfaces and the increased engagement of stakeholders in process improvement, that Social BPM has taken shape.

BEST PRACTICES FOR KNOWLEDGE WORKERS Innovation in Adaptive Case Management http://bpm-books.com/products/best-practices-to-supportknowledge-workers-print Best Practices for Knowledge Workers describes ACM in the current era of digitization, Internet of Things (IoT), Artificial Intelligence (AI), intelligent BPMS and BPM Everywhere. You will learn how support of adaptive, data-driven processes empowers knowledge workers to know in real-time what is happening at the edge points, and to take actions through the combination of rule-driven guidance and their own know-how.

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