Behavioural Data Analytics for Predicting Insurance Outcomes
Predicting the Customer Experience: A Convergence of Business Process, Decision Making, and...
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Predicting the Customer Experience:
A Convergence of Business Process,
Decision Making, and Analytics
Chief Architect for some of Largest BPM Systems in the World, with Projects Exceeding $200 Million in Total Scope and Investment
Co-author of 12 books on BPM including the “BPMN 2.0 Handbook” and "Mastering the Unpredictable" which reached #2 on the Amazon.com Bestsellers List for IT
Was named #1 on the 2011‘Influencer 50’ list ranking the most influential people in the field of BPM
Executive Director of the Workflow Management Coalition, the definitive business process association since 1993
Has played active roles in relevant standards and consortia including OMG, OASIS and AIIM
The first recipient of the Laureate in Workflow award, a distinction held by select industry leaders worldwide
About Nathaniel Palmer
“. . .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.”
What is BPM?
Driving Compliance and Scalability by Automating Predefined Workflows
BPM Processes Are Deterministic, Where All Possible Paths Are Pre-Determined or Known in Advance, No Matter How Complex the Pathways May Be.
The Direction of the Process is Determined by the Pre-Defined Path and Current State; State is Determined by the Preceding Activity.
BPM enables a transactional thread from application-to-application, activity-to-activity.
Phase One of BPM. . .Cross-Application Integration
Managing Screen-Flows
Abstracting Business Logic
Enabling Business Control of Business Processes
Delivering a Transactional Thread Across Systems
BPM in the First Wave(Where Most Still Are Today)
The 2nd Major Revolution in IT Architecture
1970 20201995
40 Years of Application-centric Data Architectures
Extraction & Transformation
Client/Server Architecture
Transaction Processing
Data Synchronization
2013
Cloud Architecture
Predictive Analytics
Semantic Integration
Mobile, Social, Cloud
Process of Everything
The Relational Era
The Big Data Era
To Data-Driven Applications
Shift to “Intelligent BPM” and “Smart Processes” . . . Leveraging Rules / Policies, Goals and Intelligent Agents
More Agile Execution Models Allows for Adapting to Meet Goals, Rather Than Sticking Strictly to Predefined Paths
“Data-Driven” = Shift to Information-Intensive, Adaptable Processes Driven by Analytics, Context, and External Events
BPM Evolves to Address New Realities of Digital Business
BPM + ODM: Customer-centric Processes are Data-Driven and Unpredictable
A Library of Process Fragments Can Be Called on to Automate Mundane
Tasks or Regulated Processes
An Event Occurs Which Launches a
New Process / Case
The Case is Completed
When Criteria is Met
Analytics Help Define How the
Case is Processed
“Intelligent Capture”Information is Captured and Added to the Case
Prepare Document Process Application
Business Rules, Policies and Processes Are Run
Against Case Data
Ensuring continuity across multiple channels, including mobile devices
with inconsistent connectivity
BusinessValue
TimeData
LatencyAnalysisLatency
DecisionLatency
Infrastructure Latency
Business-relevant Event Occurs
Event Data Captured
Analysis Delivered
Action Taken
Value Available Through Earlier
Notification
Value Available From Faster Decisions
Adapted from Hackathorn, R. (2002); zur Muehlen, M (2010)
Why you want to act sooner, not just faster.
BusinessValue
Time
Move to the point of action to here. . .
…from here.
Leverage BPM and ODM to shift the point to which business events become actionable.
Why you want to act sooner not just faster.
Capturing Context & Meaning From Events
Event Processing
Event Detection
& Correlation
Knowledgebase
Event Log & Patterns
Reporting
Dashboards
Alerts and Actions
Predictive Analytics
Simulation
Data mining
Event Tagging
Event Cloud
Legacy New Apps
Transactional Systems
Document Capture & Content Management
SOA Middleware as Event Delivery Pipe
Social Media/Networks Mobile Devices
Actionable Analytics Framework
Intimacy
Expediency
Now
Then
Whether or Not You have a Strategy
Does Change Your Customers’ Expectations.
Meet Your Customersfor the Next 20 Years
Are you ready?
Meet Your Customersfor the Next 20 Years
“60% of smartphone or tablet owners who switched primary banks in the fourth quarter said that mobile banking capabilities were an “important” or “extremely important” component in their decision to switch, versus only 48% surveyed 6 months earlier.”
Source: Mobile Financial Services Tracking Study,” AlixPartners, March 2014
“60% of smartphone or tablet owners who switched primary banks in the fourth quarter said that mobile banking capabilities were an “important” or “extremely important” component in their decision to switch, versus only 48% surveyed 6 months earlier.”
Source: Mobile Financial Services Tracking Study,” AlixPartners, March 2014
But Does Your
Mobile Strategy
Look Like This?
The App is Not Your
Mobile Strategy,
it is the Process!
What’s Next?
What’s Next?
The home office receives the application electronically, underwrites the policy and electronically issues and sends the policy to FA.
“Intelligent Capture”Questions answered, the application is completed and signed electronically on the tablet. The client writes a check to bind the application and the FA uses the tablet to take a picture of the check to bind the application.
A Financial Advisor (FA) conducts client annual review – determines client needs additional life insurance.
The FA can choose to print the policy or send an electronic copy securely to the client.
14
The FA hits the “Mayday” button and spawns a live video chat with an underwriter.
5
6
6
Leveraging BPM and ODM for an Optimal Customer Experience and Real-Time
Response: Financial Advisor Scenario
3
2
FA brings up an insurance application on tablet and fills out with the client.
How Will You Deliver a
Predictable (and Optimal)
Customer Experience in the post-
relational, post-PC, Internet of
Everything digital marketplace?
Don’t Do Radio on TV: Process Should Drive Your Mobile Strategy and Your Customer Engagement Strategy
Meaningful Transparency of Business Operations Requires Gaining Visibility Beyond Core Business Systems, Into the Edge-points of Customer Interaction
Focus on the Ability to Measure Performance and Progress in Holistically, Across the Entire Customer Experience Lifecycle
BPM and ODM Going Forward: Strategy Take-Aways
Industry Shift From Efficiency to Effectiveness
It’s No Longer (just) About Saving Money, TodayIt’s About Making Money
Focus on Response Time and Customer Experience
Success Metrics and Performance Objectives are Increasingly Revenue-Focused not Cost-Driven
The App is Not Your Mobile Strategy, it is the Process!
BPM and ODM Going Forward: The Next 12 Months and Beyond
Your Strategy. . . Develop a “Metrics Culture” Across Your Organization (not just your own team)
• Know When and How Success Will be Measured
• Show Results Frequently and On Time
• Formalize Your Own Customer Experience Maturity Model (pick one, define one, but use it)
Your Strategy. . . Sell Your Program on Growth vs Cost
• Know Your Metrics and Make Them Visible
• Target Growth Areas With Momentum
• Engage Customers Throughout – Directly and Through Stakeholders
Your Strategy. . . Scale Your Team With the Program
• Start With Cross-Functional Team / Skillset
• Release Often – Results < 90 Days
• Create a Feedback Look for: Target -> Results -> Review -> Redeploy
•Get Started!
As a starting point, avoid processes that:
√ are already well-defined,
√ are overly complex, or
√ are politically charged.
Look for opportunities and processes that are characterized as:
√ paper-intensive, involving tasks done on a frequent basis (daily),
√ lacking a rigid or controversial definition, and
√ having an immediate and measurably positive impact on customers, stakeholders and/or end users.
Getting Started With BPM:Picking the Right Targets
Com
plex
Tactical StrategicAlignment With Business Goals
Sim
ple
Deg
ree
of D
iffic
ulty
Limited Value,Low Visibility
Likely Target Area
High Value,High Risk
Getting Started With BPM:Picking the Right Targets
How Will This Improve The Customer’s Experience?
Who Benefits From The New Process or System?
What Metrics Provide the Best Measurement of Success?
Are the Terms (Vocabulary) Consistent and Mutually Understood?
Will the Users of the Process Measure Success the Same as Other Stakeholders and/or Sponsors?
How Do We Engage Our Customers’ Perspective in the Understanding and Definition of the Business Process?
Getting Started With BPM:Picking the Right Targets
Contact Info:
Nathaniel Palmer
+1 (781) 534-3868 mobile
twitter.com/nathanielpalmer
www.linkedin.com/in/bigdatasmartprocess/