© 2009 IBM Corporation
ILOG Business Rules SolutionEnabling Smarter Customer Offerings
Abe Cuevas
Senior Software Sales, ASEAN
WebSphere ILOG Business Rules Software
© 2009 IBM Corporation2
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Emphasis on Relevancy Across Customer Management Lifecycle
Cha
lleng
es
Problem Resolution
Retain
�Capture customer feedback during interactions
� Implement root cause analyses of service issues
�Develop retention offers for valued customers
�Coordinate collections and recovery activities across FSI
Segment & Target
Extend Offer
�Consistent, focused marketing efforts everyday
�Customer/data analytics to drive prospecting in specific segments
�Multi-channel marketing strategy
�Compelling value proposition for targeted segments
Customer Acquisition
Open Account
Cross- Sell
�Broad discussion of other financial needs/existing relationships
�Capture future opportunities
�Capture customer interaction preferences
�Cross-sell and onboard as appropriate
Account Opening &
Onboarding
Retain Cross-Sell
� Increase share of wallet with cross-selling
�Develop compelling rewards programs by segment
�Provide appropriate customer service
�Monitor relationship profitability
�Prevent attrition by segment
Relationship Management
CustomerRetention
Source: TowerGroup
BRMS - Relevancy Across Customer Management Lifecycle
© 2009 IBM Corporation3
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Emphasis on Relevancy Across Customer Management Lifecycle
Problem Resolution
RetainSegment & Target
Extend Offer
Customer Acquisition
Open Account
Cross- Sell
Account Opening &
Onboarding
Retain Cross-Sell
Relationship Management
CustomerRetention
Cha
lleng
es
�Capture customer feedback during interactions
� Implement root cause analyses of service issues
�Develop retention offers for valued customers
�Coordinate collections and recovery activities across FSI
�Consistent, focused marketing efforts everyday
�Customer/data analytics to drive prospecting in specific segments
�Multi-channel marketing strategy
�Compelling value proposition for targeted segments
�Broad discussion of other financial needs/existing relationships
�Capture future opportunities
�Capture customer interaction preferences
�Cross-sell and onboard as appropriate
� Increase share of wallet with cross-selling
�Develop compelling rewards programs by segment
�Provide appropriate customer service
�Monitor relationship profitability
�Prevent attrition by segment
Source: TowerGroup
BRMS - Relevancy Across Customer Management Lifecycle
© 2009 IBM Corporation
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The First – Significance of Event
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© 2009 IBM Corporation
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The Second – Relevance to the customer
� The customer feedback is clear:– It is not acceptable to communicate with all of us because you think only some of us
might be interested.– Only communicate when you know it is a good time - because something has changed.
– Right Time, Right Customer, Right Offer Else…
© 2009 IBM Corporation6 NCR Confidential
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The Third – Timely Communication (Back to WBE)
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Proactive Batch and Real Time Business Proposition
Action Taken and Monitor
© 2009 IBM Corporation8
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Business agility and responsiveness
Shorten response time in actionable
situations
Improve process automation, flexibility
and efficiency
Business alignment, compliance and transparency
Maximize decisions for resources, risk
and value
Empower LOB users to manage and
improve decisions
Smarter personalization and self-service
Move decision-making to point of contact with
customers
Achieve finer-grain personalization in
customer interaction
Customers want Greater Decision Agility & EffectivenessAutomate, improve and govern high-volume, operational decisions
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The missing link is a Centralized Decision EngineBRMS - Relevancy Across Customer Management Lifecycle
© 2009 IBM Corporation10
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Key Technologies for Decision Agility & Effectiveness
� Business Event Processing improves situational awareness and response� Business Rule Management improves the quality of automated decisions � Business Process Management uses outputs within orchestrated processes� Analytics enables continuous decision improvement
Correlate business events and detect critical business
situations
Orchestrate business processes and human task applications
Automate high-volume operational decisions with business rules
Derive deep understanding of data with analytics
Monitor and report on data to provide real-time insight
data
data
data
data
Event
EventEvent
WebSphere Decision ServerCombined rules and events capabilities to power flexible decision management solutions
© 2009 IBM Corporation11
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� A powerful, scalable, flexible event processing platform
� Business user oriented interfaces reducing time to value.
� Designed to expect change – supports incremental development and deployment
� Built-in Connectivity to the widest range of events.
WebSphere Decision Server - Business Events
The Convergence of Power and Ease of Use
“The real world is mostly event driven, and event-driven situations are best addressed by event-driven business applications”.
Roy Schulte, VP Gartner Research
© 2009 IBM Corporation12
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WBE Puts Power in the Hands of the Business User…� Define actionable patterns of events and responses
� All tasks performed via intuitive GUI
Point and click from drop-down lists
Condition Block
Event Interaction Block
…Through Collaboration with IT� Defines available events and properties
� Provides connectivity to event sources
Event Definitions
Event Properties
IT Developer
Business User
WebSphere Decision Server - Business EventsRole-based User Interfaces Empower the Business
© 2009 IBM Corporation13
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Message Bus
Events
RDBMSHTTPSMTPFTPFileJMS
SOAP
WebSphere Decision Server - Business EventsLeveraging the Existing Infrastructure -- Detecting and Responding to Actionable Situations
WBE Object Repository
Business Space
User Console
Event Flow
Detect Events and Patterns,
Generate ActionsApplications
SensorsPeople
Processes
Transactions
Infrastructure
Event Sources / Event Sinks
Extended Information Infrastructure
Event
Event
Action
Action
WBE
Action
Action
Event
Event
© 2009 IBM Corporation
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14 Copyright ©2006 by ILOG,
Spreadsheets
Databases
ManualProcesses
Mainframe
MonolithicApplications
Rule Repository
User Tools
Rule Engine
User Tools provideaccessibility and rule management
Rules are extractedand stored in a Rule Repository
The major elements of a Business Rule Management System (BRMS)
Rule Engine providesexecution anddeploymentthroughout the process
Websphere Decision Server - Business Rule Management System
© 2009 IBM Corporation
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15
Intuitive Rule Authoring Capability
Text editorText editor
Decision TablesDecision Tables
Decision TreesDecision Trees
Point & ClickPoint & Click
Policy Manager
Business Friendly Interface
© 2009 IBM Corporation17
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Example:
� Major North American Bank, 18 million customers in 46 countries
� Increased pre-qualified cross-sell offers from 13% to 40%
� Increased upsell/cross-sell offer acceptance from 3% to 30%
� Added over $14 million incremental revenue in 2.5 months
� Improved customer satisfaction
� Increased sales force satisfaction and effectiveness
BRMS applies compliance policies, profiles clients, ranks
products, determines risk, calculates distribution amount, determines eligibility & limits,
and ultimately generates offers of high interest to
customers.
Fast ROI through IBM ILOG BRMS-based upsell / cross-sellBRMS - Relevancy Across Customer Management Lifecycle
© 2009 IBM Corporation18
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• Scoring (descriptive & predictive)
• Predictive models (e.g. buyer propensity)
• Risk Segmentation• Strategy
Recommendation
Bank’s Product Strategy
• Product strategy• Product best-fit• Promotion
management• Adjustments for
prior history• Champion /
Challenger
• User profile• Credit profile• Preferences• History• External
Databases• Etc.
Central Liabilities
• Credit qualification• Program
qualification• Bundling &
packaging• Product qualification• Customer-centric
pricing
User login Customized offering
DATA
RULES
PROCESSES
Marketing Campaign
Management
BRMS - DEMO Walk-Thru
Cross-sell / up-sell model
© 2009 IBM Corporation
Real Time Detection of Opportunityand Optimized Bundling and Precision Offering
© 2009 IBM Corporation
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Scenario:Customer pre-mature withdrawal, event triggeredCheck rules engine for appropriate campaign and product eligibility
Rules Engines optimize product bundling eg. Housing/Car and Cashlines/Credit Cards based on the credit ratings of customers and collaterals
SMS to upsell bundle to Customer A via relationship manager
This is the capability for non-deterministic events compared to predictable reactive sales which most banks are already doing via batch logs for cold call leads. Tactical opportunities are lost everyday and funds are flowing out everyday without realizing.
A classic Behavior Driven Opportunity
Business Challenge: How do banks capture tactical opportunities, validate them and tailor a high hit rate solution to retain and upsell customer Real Time?
Example of a Real Time Retention and Cross Selling scenario
© 2009 IBM Corporation30
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� Susan Say– Segment: Treasures– Risk Tolerance: 4– Credit Rating: 3– Total Asset: 300K
� Susan withdraws SGD 30K funds from her Fixed Deposit account prematurely.
� On Monday, Susan visits the Ang Mo Kio branch and withdraws additional SGD 30K.
– Exceeds total amount threshold that has been set at SGD 50K
� To ensure that the bank retains her as a customer, her relationship manager, Casey is notified via SMS to offer her a new promotion
– 3 Years Free Membership for Credit Card with Spa Voucher– Overdraft Interest free for first 6 months
Proof Points
� Capture events from CICS directly and to up sell relevant product bundles if applicable.
� Ability to reference existing systems such as Oracle DB to retrieve customer profile information.
IF Customer’s premature withdrawal in 1 weekexceeds 60K, customer’s RM is notified
© 2009 IBM Corporation31
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Event Processing Definition
Allows business users to define interaction patterns through a web based interface
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Event Processing FilterAllows business users to modify the threshold condition of total deposits from 200K to 250K and republish changes.
© 2009 IBM Corporation33
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WebSphere Optimizes Decisions and Delivers Precision Bundling Real Time – Who to contact, What to Offer, When to offer and how to reach out
WHO WHATCIN Name Expiry Date Amount
S6098543A Lim Tan Kheng 31/04/10 100,000 RulesPre-fetch file
CIN Name Expiry Date Amount FNA >3 21<Age< 65 Existing FD>100K Credit Rating SegmentS7930654A Tan Chin Hock 16/04/10 50,000 UT x x xS8055652B Lim Kim Seng 20/04/10 30,000 SD x xS7655843C Kwan Yook Tong 25/04/10 60,000 FCFD x x xS2512545B Greg Fong 29/04/10 10,000 Cards xS6098543A Lim Tan Kheng 31/04/10 100,000 Gifts x
Campaign Results is to offer a customer special Time Deposit of extra 1% for 3 mths based on same amount in UT investmentMininum Placement is 50K for each and maximum placement is 500K for eachPlacement above 100K each will receive free giftsAutomated Credit Card approval with 3 years Annual Fee Waiver
WHEN and HOW
BE When to send Which Channels
SMSKey Notes - FD expiring this XX/XX/XX. Renew with a 3 mth Time Deposit at extra 1 %pa when you invest in Shenton Income Fund for the same amount. For 100K each placement, you will receive an AMEX Black Card with Annual Fee waiver 3 years and a $100 Tru Spa Vouncher
© 2009 IBM Corporation34
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Decision Tables
Promotion Notification messages that maps to promotion code
Identify Promotion Notification Code based on customer profile
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Optimized Product Recommendation
� Precise Bundling offer based on Customer Behavior
� Ease, transparency, consistency and governance in business rules and policies
� Dynamic bundles and recommendations
� Reduce turn-around time in reaching out to customer changes
Excel-based Promotional Product Bundling Editor
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Send Promotional SMS to Customer
Send promotional SMS to customer/RM to upsell appropriate product bundle based on customer profile
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Real Time Dashboard on Blackberries and iPhones
� Business Metrics – Slice and Dice– % Conversion Rate
•By Customer Profile•By Product Category•By Region•By District•By RM•By Channel•By Amount
– Sales Turnaround Around Time•By Customer Profile•By Product Category•By Region•By District•By RM
� Target Audience– Product Manager– Program Manager– Business Owner– Sales Director
Proof Points� Demonstrate how business users can design and
customize business monitoring without involving IT, including enabling early detection and alerts to emerging business situations
© 2009 IBM Corporation38
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Real Time BAM Dashboard
Tracks Campaign Closure rate at the individual branch level and updates this in real time.
© 2009 IBM Corporation40
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Consistency
Speed to Market, Agility
Relevance
Risk Management
Retention
Lower Costs
Faster, Higher ROI
Launch new products or policies in hours to days, rather than weeks to months
Match offers to customers with precision and pre-qualification for higher acceptance
Ensure consistent communications across channels—branch, online, call center, etc.
Apply risk controls in real time for fraud detection & compliance
Satisfy customer needs better with more enjoyable interactions
Streamline processes, create drastically more efficient operations
Work with your existing CRM system; avoid ripping & replacing
Real Time Event Processing an Business Rules Management Benefits
BRMS – Business Benefits