Empowering Your Client Relationship Managers with a Single View of Your

Customer

Anand Raisinghani, Industry Solutions, IBM India/ISA

New ways of working to optimize decisions and actions

Sense and respond

Instinct and intuition

Automated

Skilled analytics experts

Back office

Traditional ApproachPredict and act

Real-time, fact-driven

Optimized

Everyone

Point of impact

New Approach

Lack of Insight

Inability to Predict

Inefficient Access

Variety

Volume

Velocity

•IOD Software & Solutions

•Information Infrastructure

•BI/Performance Management

•Advanced Analytic & Optimization Services

•Information Agenda

•Business Analytics & Optimization Strategy Services

Information-Led Transformation

Industry over-performers are 8 times more likely to pursue information-led transformation than under-performers*

Leveraging information for business optimization

*Source: IBM Institute for Business Value

Apply business analytics to

optimize decisions

Establish a flexible

information platform

Plan an information

agenda

Getting started with an information-led transformation

Ensure cost effective information availability, security, retention and compliance for all types of workloads

Create a single, trusted view of information across the organization managed over a strategic period

Optimize processes, manage business performance, and anticipate opportunities and threats

Analyze and use information at the point of industry-specific business impactInformation-Led

Transformation

Apply business analytics to

optimize decisions

Establish a flexible

information platform

Plan an information

agenda

Apply business analytics to

optimize decisions

Establish a flexible

information platform

Plan an information

agenda

LowerCosts

Getting started with an information-led transformation

Create Value

Information-Led Transformation

Understand Total Customer Relationship & Profitability

Customer Care

Consistent Customer Experience

Product Mgmt & Profitability

Channel Management

Account Onboarding

Paperless Enterprise

Operational Synergies

Financial Risk Mgmt

Regulatory & Legal Compliance

Fraud Detection & Mitigation

Banking Business Optimization Map

1. Deliver trusted information to improve enhance existing process via automation

2. Create trusted enterprise insight and analytics to drive business optimization

1. Deliver accurate enterprise information to risk processes.

2. Use information to accurately prevent, identify and mitigate fraud

3. Safely leverage information with governance programs

1. Derive customer insight to improve & drive organic growth.

2. Create a single view of the customer to enhance banking experience

3. Put trusted information in the hands of frontline employees

Improve Customer Care and Insight

Manage Governance, Risk and Compliance

Increase Operational Efficiency

Effective Use of Information is Key for Bankers

Functional Area

Branch Operations

Lending

ERP & Financials

Marketing Campaigns

• Branch Profitability – Manage profitability throughout the branch network at the individual customer and product level

• Straight Through, Risk-Based Processing – Improved profitability through process optimization with risk-adjusted decision making

• Financial Risk Insight – Use of real-time information to better assess and forecast risk for improved capital management

• Personalized Multi-Channel Event Driven Promotions – Deliver real time customer insight across channels and business units based on opportunistic customer activity

11

22

33

44

Automation Optimization

Optimization Opportunity

The Untapped Potential of Banking Information

• Provide the business with confidence in the information that is relied on to drive performance

• Ensure the information is trusted by business

• Increase relevance and business ownership of information

How does one achieve information oriented results?

Enabling Technologies

Industry Solutions & Accelerators

Insight, Expertise and Proven Approach

Information AgendaBusiness Analytics & OptimizationSmart SOA

Business IntelligenceTrusted InformationBusiness Performance Mgmt

Industry Assets and ModelsMaturity ModelsBusiness Solutions

Information InfrastructureContent and CollaborationBusiness Process Management

To manage the tidal wave of Information and outperform competition banks need…

About TIAA-CREF

• For over 90 years, TIAA-CREF has been helping those in the academic, medical, cultural and research fields plan for and live in retirement.

• Deploy an array of financial products and services to help members live to and through retirement and invest for life's other goals along the way.

• Keeping with their strong nonprofit heritage, they offer low fees,* a long-term approach to investing, and a full line of financial products and services provided by consultants who never receive commissions. Instead, they are compensated primarily on how well they serve.

TIAA-CREF’s Mission, Vision and ValuesTo aid and strengthen academic, medical, cultural and research institutions by seeking to provide financial security suited to the needs of institutions, their employees and their families, on the best terms practicable, consistent with our nonprofit heritage.

Approach

• Partnered with IBM in late 2006/ early 2007 for a comprehensive analysis of the services frame work to review the current state.

• Deliverable included a Roadmap to provide an implementation approach to meet the data needs of the organization and provide the strategic direction for enterprise data management to improve the customer experience and position TIAA CREF to proactively service customers in a demanding business environment.

• The Data Framework Roadmap incorporated:

– Business drivers / high level requirements to meet the single view of customer (individual) data needs Channel and Client Services initiatives

– An organizational structure to provide enterprise guidance and governance required to deliver single view of customer

– Data quality issues in customer domain sources

– A recommended enterprise data management architecture to meet customer data needs

Client Services ViewChannel Client View

Findings Summary

% of income at retirement Do Not Call (T/C) Overall Retention RiskAge Do Not Email Participant

Approximate Accumulation Employer Type PIN #Assigned Date Entity Type Preferred Name

Book 1 Estimated Wallet Size Pri. Integrity Selling BehaviorBook 2 Homeowner Indicator Primary Financial Concern

Cell Phone Number Households Priority CodeChild Age 0-7 Income Range PRIVACY

Child Age 15-21 Individual Segment Remote FlagChild Age 8-14 Institution Name Retail Investable Assets (IXI)

Comments Interest/Hobby Retention Growth IndicatorContact Code IXI Retention Growth Indicator Retired

Contract # Job Title Sec. Integrity Selling BehaviorCoverage Team Life Stage Secondary Financial Concern

Custodial Agreement Indicator Net Worth Association DNC Exemption Description No. of Children Dependent Parent

Do Not Call (Federal & State) OPS Income Date

Best Time to Call – HomeBest Time to Call – Work

CityEmail

EmployerGender

Last NameMarital StatusMiddle NameOccupation

SSNStateSuffix

AddressDate of BirthDo Not MailFax NumberFirst Name

Home Phone NumberRetirement Date

Work Phone NumberZip Code

Account Type Code Quarterly BalanceContact Preference Residency

Contact Type Retirement Select IndicatorContract Issue Date SalaryContract LOB Code Spouse Date of BirthContract Number Spouse Employer

Date of Death Spouse First NameEarliest Scheduled Retirement Date Spouse Last Name

Federal Tax Bracket Spouse Middle NameIRA Custodial Indicator Spouse Occupation

Issue State Spouse Prefix NameLast Transaction Date Spouse Salary

Latest Scheduled Retirement Date Spouse Suffix NameLoan Balance Status Code

Local Tax Bracket Sub plan NumberOther Number Tax Filing Status

Outstanding Loan Balance Indicator Withdrawal Available PercentageOwnership Code Payee Code

Plan Number VIP Indicator

Common Data

~ 30% of Client Services Elements in Common Data

~ 73 elements (including 22 common elements) provide profile

Client Services has marketing/ house-holding data not currently required by the Web

~ 31% of channel elements in Common Data

~ 60 elements (including 22 common elements) provide profile

111 Representative Customer Data Elements

MDM Phase Based Approach

Level of Maturity/TCO

Enable security framework

Enable automated advice

Build code tables repository

Automate data governance and quality controls

Enable account access service

Enable proactive relationship management

Enable interaction history

Enforce data governance penalties

Bi directional participant profile service

Enable self-service transactions

Enable suspect processing

Centralized data security framework

Enable data provisioning with gold copy linkage

Automate ControlsEnable straight through processing (STP)

Initial data load Centralized data quality

Refactor customer data, account data and some product data services

Centralize common services capabilities for FMBO

Automate process orchestration

Production InstallEnable policies and procedures

Provide access & linkage to enterprise data

Repurpose COR and NAD

Implement transaction interaction service

Test Install Align project data governance with TIAA

Provide transaction status service

Retire Legacy Data Services

DEV InstallStructure project data governance

Provide single participant profile service (read-only) Participant read-only

data servicesCentralize participant data service

Infrastructure setup / software

enablement

Data Governance and Quality

Party Data ServicesCross-channel Process

Orchestration Reduce Total Cost of

Ownership

Phase 1 Phase 2 Phase 3Key for Proposed Scope

Func

tion

al M

atur

ity

MDM Phase Based Approach - Foundational Alignment

•Platform Enablement•Party Domain Services

•Enable Enterprise Process Models•Account Domain Services

•Business Rules Enablement•Product Domain Services

MDM EDW RK

MDM Phase 1: Foundation & Participant Services (2008)

2/23/2007 23

Eac h phase r a ises t he l evel o f mat ur it y w hil e r educ ing t he t o t a l c o st o f o w ner ship

Reduce Total Cost of Ownership

Cross-channel Process

Orchestration Party Data ServicesData Governance

and Quality

Infrastructure setup / software

enablement

Centralize participant data service

Participant read-only data services

Provide single participant profile service (read-only)Structure project data

governanceDEV Install

Refactor DSVProvide transaction status service

Align project data governance with TIAA

Test Install

Repurpose COR

Implement transaction interaction service

Provide access & linkage to enterprise data

Enable policies and procedures

Production Install

Automate process orchestration

Centralize common services capabilities for FMBO

Refactor DSV (WCC, OMNI ESF, FMBO Services)

Centralized data qualityInitial data load

Automate controlsEnable self-service transactions

Enable data provisioning with gold copy linkage

Centralized data security framework

Enable suspect processing

Enable event detection services

Bi directional participant profile service

Enforce data governance penalties

Enable interaction history

Enable proactive relationship management

Enable account access service

Automate data governance and quality controls

Build code tables repository

Enable automated advice

Enable security framework

Phase 1 Phase 2 Phase 3Key for Proposed Scope

Func

tiona

l Mat

urity

•Drive channel parity (IVR, NCC, WEB)•Improve customer experience•Provide participant-centric view across

TIAA-CREF•Reduce errors and omissions•Improve customer satisfaction

•Provide single participant profile service•Improve participant access & linkage to

enterprise data

Busi

ness

Val

ueCa

pabi

litie

s

Focus on enhancing the customer experience and improving the delivery of customer information. Address customer data accuracy, consistency and timeliness issues while

reducing complexity, risk & cost.

Phase 1Enablement /

Foundation

MDM Phase 2: Account Master & Process Integration (2009)

Phase 2Service

Refactoring

• Expand self-service capabilities across channels

• Increase service capacity across channels

• Improved participant privacy and identity protections

• Reduce the cost of redundant data services

Busi

ness

Val

ue

• Deploy additional data to support self-service

• Data services for process orchestration

• Implement a central data framework for Contracts/Accounts and abstracted ProductCa

pabi

litie

s

Our ability to retain, scale service and grow relationships require Business Process Management (BPM) that has value based information delivered to the right people at the

right time within the appropriate interaction

MDM Phase 3: Enable STP (and Business Rules Abstraction 2010+)

• Enable straight through processing

• Enable proactive relationship management

• Automate processes and controls

• Lower cost of ownership

• Service enable business rules

• Auto provision required business data

• Streamline data access

• Expand Product Domain

Busi

ness

Val

ueCa

pabi

litie

s

Phase 3Solution

Optimization

Com

plia

nce

Cont

rols

Serv

ice

Cont

rols

Rela

tion

ship

Gro

wth

Participant

(MDM)

Product

(MDM)

Business

Rules

(ILOG)

KYC Suitability Fraud

T: Process Guidelines Stratification

New Business New Opportunity Marketing Need

Each business process and participant interaction requires business rules embedded within critical information / data to drive the optimal results.

Contract/

Account

(MDM)

20

“…We now manage our customer information as an asset; the opportunities for innovation and optimization are endless. We can respond to the dynamics of our business twice as fast.…”

Established data governance competency

Deployed trusted data assets as re-usable, shared services

Numerous acquisitions expand services & customer base

Strong market share position drives need for new growth strategies

LifeInsurance

PersonalBanking

MortgageBanking

Reduced duplicate, conflictingviews of client base by 30%

Reduced call centers and

website channels to 1…

Providing enhanced services drives loyalty higher than

industry norms…

Unified cross-sell/up-sell analysis drives new

growth opportunities…

Multiple Lines of Business…Siloed Information…Individual Projects…

• Taken customer data from our mortgage system, our bank account management system, our sales system and our life administration system and loaded all of this into our Customer Hub

• Built real time integration links between the above systems and the Hub• After standardisation, we have removed over 400,000 duplicate customer records• We automatically match & merge duplicate customers at New Business• We have also loaded all of the connected data into our Business Intelligence Warehouse

and we are using Predictive Analytics tools to identify trends & opportunities in our data. This results in a range of campaigns.

Until recently, our Managing Director had 7 customer records on the Bank systems and 5 customer records on the Life system. We had already merged the 7 Bank customer records into 1 Bank customer record and we had merged the 5 Life customer records into one Life customer record…we have finally taken the big step of merging the two records into one.One of the major benefits of the above is that all of our data across the enterprise is now integrated in real time. Therefore, if customer data is changed in any one system, thischange is immediately reflected across all of the other systems…[this] is obviously driving customer benefits as well as organisational cost savings. It also improves the quality and value of the data in our Business Intelligence warehouse.Another significant element of our implementation this week is the introduction of a joined up website where the customer only logs in once and sees the full portfolio of these products in one place (i.e. mortgage account, current account, Life policy, Pension, etc).

Driving Synergies through an Information Agenda

Canada

IBM delivers business value across the board

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Thank You

• IOD Software & Solutions• Information Infrastructure

• BI/Performance Management

• Advanced Analytic & Optimization Services

• Information Agenda

• Business Analytics and Optimization Strategy Services

Information-Led Transformation

Industry over-performers are 8 times more likely to pursue information-led transformation than under-performers*

Plan an Information

Agenda

Establish a flexibleinformation

platform

Apply business analytics to optimize

decisions

*Source: IBM Institute for Business Value

25

Introduction

Begin developing your agenda

Briefing12

3

Roadmap Workshop

Architect and plan your first projectSolution Workshop

Involves both IT and line-of-business representatives to develop recommendations that can have an impact on the business and are aligned with the organization’s strategic objectives

Getting Started