measuring the total economic impact of the ibm dba platform · abandoned loan applications account...

Automation 2019

Automation 2019Measuring the Total Economic Impact of the IBM DBA Platform

Brian Safron | Program Director, Digital Business Automation New York | June 6, 2019

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Forrester Study

The Total Economic Impact of the IBM Automation Platform for Digital Business

https://www.ibm.com/downloads/cas/O5A0BD4R

Forrester conducted a rigorous study on the economic impact of the IBM DBA platform− Independent analysis of business results

experienced by an IBM DBA customer

− Proprietary Forrester methodology quantified a complete set of economic considerations

− Starts with standard ROI calculation

− Adds additional economic factors (e.g., risk, business flexibility) not typically included in standard ROI calculation

© 2019 IBM Corporation Automation 20193

The Forrester study focuses on several use cases at a large US company− Customer characteristics:

− In the banking industry

− Provides both consumer and business banking services

− A large enterprise with over 50,000 employees

− Primary use cases considered:− Loan processing

− Employee onboarding

− Sales and marketing


The study factored in a full range of applicable costs and risks to measure total economic impact− Costs included in the calculation:

− Software

− Hardware

− Employee salaries

− Consulting & implementation services

− Risks included in the calculation:− Impact risk: What if the organization’s needs aren’t met?

− Implementation risk (aka scope creep): What if the implementation deviates from initial requirements?


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Business challenges

High loan processing costs

Too many abandoned loan applications

Errors & delays during employee onboarding

Proliferation of automation solutions

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Business challenge:

Loan processing costs were too high

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Business challenge: Loan processing costs were too high

Over two million loans processed each year

Some loan approval processes were taking four to 10 days, depending on the exceptions

Before loan processing automation:

• Every loan application required manual review, no matter how qualified the applicant

• 10 minute average human review time per loan

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Loan processing use case: Increase employee productivity 1


Focusing in: Increase employee productivity 1


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Total Economic Benefit of loan processing automation (increase employee productivity)

$10.1 million cost savings over three years

Additional benefits experienced by the customer:

• 80% of loans are now processed automatically

• Ability to provide better service in cases where human intervention is needed

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According to Forrester:

Loan reviewers aren’t wasting time reviewing obvious approvals, rather they can now focus on helping potential customers with more complex applications navigate the loan process.

1Customer quote:

“Some loan approval processes were taking days, sometimes four to 10 days depending on the exceptions. Now 80% of our loan applications flow straight through and are done in seconds.”

Loan processing costs were too high

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Business challenge:


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Business challenge: Too many abandoned loan applications

Account setup & loan funding often took so long that potential customers would abandon the bank for other loan providers

Before loan processing automation:

• Many borrowers would give up and go to another bank that could provide a faster response

• Resulted in significant lost revenue

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Loan processing use case: Reduce abandoned loans 2


Focusing in: Reduce abandoned loans 2


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Total Economic Benefit of loan processing automation (reduce abandoned loans)

Revenue increased by $13.2 million over three years

Additional benefitsexperienced by the customer:

• Fewer abandoned loan applications

• Faster, more convenient, and even enjoyable process for customers

• Improved customer satisfaction

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At least 1% more loans are closed due to faster review and automated approvals

Customer quote:

“If you get it approved in seconds, it won’t become an abandoned loan; but if it takes you two weeks, then it could.”


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Business challenge:


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Business challenge: Errors & delays during employee onboarding

10,000 new hires per year

New employees often started work without a badge, desk, laptop, or other necessary equipment

Before employee onboarding automation:

• 25% of new hires had delays in onboarding

• Onboarding delays averaged four days of wasted time

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Onboarding use case: Reduce onboarding errors & delays 3


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Total Economic Benefit of employee onboarding automation


Additional benefitsexperienced by the customer:

• Automation of all onboarding tasks, reminders and escalations

• Employees are now ready to work on day one

• Improved employee morale

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With the IBM automation platform, the bank estimates that 80% of these employee onboarding issues are eliminated

3Customer quote:

“It was all being done manually and when you do anything manually, it’s going to take time because there’s probably a lot more paper moving around and you’re going to make errors.”


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Business challenge:


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Business challenge: Proliferation of automation solutions

Before the bank standardized on the IBM platform, automating a specific departmental process was very daunting

Departments often chose solution-specific applications that often wouldn’t be as good a fit for other departments

Before standardizing on an automation platform:• Various departments were

looking at different automation solutions that all would require:• Request-for-proposal• Review• Proof-of-concept• Implementation• Integration• Skills transfer

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Standardization use case: Automation platform consistency 4


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Total Economic Benefit of automation platform standardization


Additional benefitsexperienced by the customer:• Avoided research and

implementation investment for each department

• Avoided need to integrate multiple disparate systems

• Greater consistency in automation applications

• Faster/easier creation and deployment of new automation solutions

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Standardization will open the door for even more automation, since business leaders can now extend the platform to their needs without having to start from scratch.

4Customer quote:

“Now that we have one standard platform we can always start building on that, versus every project having to figure out how we’re going to do things.”


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Summary of benefits

Job satisfaction: Forrester highlighted the improvement in employee satisfaction driven by automation

• Employees can focus their work where they can provide more value, instead of on repetitive tasks• Loan reviewers don’t have to spend their

time reviewing obvious approvals, but can focus on helping customers with more complex loans

• With better employee onboarding, new employees aren’t immediately faced with frustration and disappointment


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“Benefits of automation include improved job satisfaction, which can lead to reduced employee turnover and lower recruiting, hiring, and training costs.”

Forrester measured $23.9 million present value from these use cases


Forrester quantified a 675% ROI from automation

• 675% ROI*

• $20.8 million net present value*

• Payback less than sixmonths after solution deployment

*Three-year timeframe; benefits minus costs, adjusted for risk and time value of money


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Thank You

Automation 2019

Automation 2019Measuring the Total Economic Impact of the IBM DBA Platform

Brian Safron | Program Director, Digital Business Automation New York | June 6, 2019

measuring the total economic impact of the ibm dba platform · abandoned loan applications account...

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