Red Book - Customer Centricity in Financial Services

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Leveraging Customer Centricity in the Financial Services Sector

End-to-end Sell & Support Solutions for the Financial Services Sector Describing Customer Loyalty, Online Financial Services, and Wealth Management Targeted for use by Client Services & IGS Principals, and S&D Client Teams
Rich Harvey Paul Asobayire Ray Jones Marie Oak Bruce Shearer
Jim Anderson Rick Bardine Kevin Knapp Brian Scheld Ted Strader
ibm.com/redbooks
International Technical Support Organization Leveraging Customer Centricity in the Financial Services Sector June 2001
ZG24-6238-00
Take Note! Before using this information and the product it supports, be sure to read the general information in Special notices on page 273.
First Edition (June 2001) Comments may be addressed to: IBM Corporation, International Technical Support Organization Dept. HQ7B Building 678 P.O. Box 12195 Research Triangle Park, NC 27709-2195 When you send information to IBM, you grant IBM a non-exclusive right to use or distribute the information in any way it believes appropriate without incurring any obligation to you.
Copyright International Business Machines Corporation 2001. All rights reserved. Note to U.S Government Users Documentation related to restricted rights Use, duplication or disclosure is subject to restrictions set forth in GSA ADP Schedule Contract with IBM Corp.
Contents
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix The team that wrote this redbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Special notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv IBM trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv Comments welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv Chapter 1. Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 2. Industry landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.1 Current Financial Services Sector landscape . . . . . . . . . . . . . . . . . . . . 8 2.1.1 Current global Financial Services Sector dynamics . . . . . . . . . . . . . . 9 2.1.2 Geographic idiosyncrasies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.2 e-business prevalent patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2.2.1 General trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2.2.2 Financial services sector best practices . . . . . . . . . . . . . . . . . . . . . . 14 2.3 Future e-business context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.4 Global financial services future industry dynamics . . . . . . . . . . . . . . . 18 Chapter 3. Big Play concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.1 Elements of customer centricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.2 End-to-end business architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3.3 Strategic intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.4 Market Themes/Business Capabilities . . . . . . . . . . . . . . . . . . . . . . . . 30 3.5 Big Plays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.5.1 Customer Loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.5.2 Online Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 3.5.3 Wealth Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Chapter 4. Transition opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4.1 Definition of transition opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . 42 4.1.1 Complete customer view . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 4.1.2 Consistent and personalized product and service delivery . . . . . . . . 44 4.1.3 Customer-facing processes aligned with customer and business wants and needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 4.1.4 e-enabled interaction at multiple customer touchpoints . . . . . . . . . . 46 4.1.5 Advice-based customer interaction . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4.2 Transition opportunity frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4.2.1 Customer Loyalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Copyright IBM Corp. 2001
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4.2.2 Online Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.2.3 Wealth Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Chapter 5. Solution Offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Overview of Solution Offerings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 5.1 Campaign Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 5.2 Channel Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 5.3 Contact Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 5.4 Conversions and Data Rationalization . . . . . . . . . . . . . . . . . . . . . . . . 66 5.5 Data Mart Design and Implementation . . . . . . . . . . . . . . . . . . . . . . . . 69 5.6 Dynamic Personalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 5.7 Global Infrastructure Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 5.8 Interactive Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 5.9 Package Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 5.10 Product/Portfolio Planning and Pricing . . . . . . . . . . . . . . . . . . . . . . . 80 5.11 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 5.12 Sales Force Automation (SFA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 5.13 Sell & Support Strategy and Roadmap . . . . . . . . . . . . . . . . . . . . . . . 85 5.14 Web Enablement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Customer-centric business architectures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Chapter 6. Solution Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 General overview of Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 6.1 Banking Data Warehouse (BDW) . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 6.2 Becoming Customer Centric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 6.3 Branding Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 6.4 Business Case Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 6.5 Business Continuity and Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . 110 6.6 Business Process Organizational Model. . . . . . . . . . . . . . . . . . . . . . 112 6.7 ChannelPoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 6.8 Client Information Integration System (CIIS). . . . . . . . . . . . . . . . . . . 115 6.9 Common Transactional Protocols and Formats . . . . . . . . . . . . . . . . 117 6.10 Contact Center Assessment (CCA) . . . . . . . . . . . . . . . . . . . . . . . . 118 6.11 Content Hosting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 6.12 Customer File Design and Implementation . . . . . . . . . . . . . . . . . . . 123 6.13 Customer Loyalty Suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 6.13.1 Customer-Centered Strategy and Roadmap. . . . . . . . . . . . . . . . . 126 6.13.2 Customer-Focused Processes and Channels. . . . . . . . . . . . . . . . 126 6.13.3 Customer Loyalty Management System . . . . . . . . . . . . . . . . . . . . 126 6.14 Customer Management Assessment (CMA/CMAT) . . . . . . . . . . . . 127 6.15 Customer Prospect Optimizer (CPO) . . . . . . . . . . . . . . . . . . . . . . . 130 6.16 Deep Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 6.17 e-business Management System . . . . . . . . . . . . . . . . . . . . . . . . . . 134
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6.17.1 e-business Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 6.17.2 e-governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 6.18 Enterprise Customer Analytics (ECA) . . . . . . . . . . . . . . . . . . . . . . . 137 6.19 Enterprise Performance Suite (EPS) . . . . . . . . . . . . . . . . . . . . . . . 139 6.20 Entity Profiling Management System (EPMS) . . . . . . . . . . . . . . . . . 141 6.21 e-Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 6.22 ETIEXTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 6.23 EvokeCRM Integration and Product Offerings . . . . . . . . . . . . . . . 145 6.24 EZ Mart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 6.25 Financial Fusion Consumer e-Finance Suite (CeFS 4.0) . . . . . . . . 148 6.26 Financial Services Data Model (FSDM) . . . . . . . . . . . . . . . . . . . . . 151 6.27 Financial Services Information Framework (IFW) . . . . . . . . . . . . . . 153 6.28 Help Desk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 6.29 Hosting/Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 6.30 Insurance Application Architecture (IAA) . . . . . . . . . . . . . . . . . . . . 158 6.31 Insurance Information Warehouse (IIW) . . . . . . . . . . . . . . . . . . . . . 159 6.32 Integrated Voice and Data Networks . . . . . . . . . . . . . . . . . . . . . . . 161 6.33 Integration Hub. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 6.34 Intelligent Miner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 6.35 Kana Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 6.36 Knowledge Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 6.37 Market Analysis and Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 6.37.1 Market Structure Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 6.37.2 Target Audience and Market Segmentation . . . . . . . . . . . . . . . . . 174 6.37.3 Customer Satisfaction, Loyalty, and Retention . . . . . . . . . . . . . . . 175 6.37.4 New Product and Services Innovation . . . . . . . . . . . . . . . . . . . . . 176 6.37.5 Brand Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 6.37.6 Brand Building Architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 6.37.7 Predictive Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 6.37.8 Financial and Econometric Modeling . . . . . . . . . . . . . . . . . . . . . . 181 6.38 MicroStrategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 6.39 MQSeries/MQSFSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 6.40 netCallCentre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 6.41 Onyx ASP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 6.42 Operations and Process Design for Interactive Transactions . . . . . 191 6.43 Pervasive ComputingMeB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 6.44 Program Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 6.45 S1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 6.46 SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 6.47 Security and Privacy Design and Implementation . . . . . . . . . . . . . . 198 6.48 Segmentation and Scoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 6.49 Siebel ASP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 6.50 Siebel Customization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
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6.51 Siebel IBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 6.52 Skills Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 6.53 Third Party Data Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 6.54 Underwriting Profitability Analysis (UPA) . . . . . . . . . . . . . . . . . . . . 213 6.55 Vality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 6.56 Web Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 6.57 Web Selling Globalization Planning . . . . . . . . . . . . . . . . . . . . . . . 218 6.58 Web Selling Return on Web Investment (ROWI) . . . . . . . . . . . . . 221 6.59 WebSphere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 6.60 WebSphere Business Components Composer . . . . . . . . . . . . . . . . 225 6.61 Xchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 Customer-centric business architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 Component Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Chapter 7. How to engage IBM Global Services to accelerate customer centricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 7.1 Why IBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 7.1.1 IGS Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 7.1.2 Competitive advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 7.2 Case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 7.2.1 Value-based customer segmentation . . . . . . . . . . . . . . . . . . . . . . . 243 7.2.2 Targeting products and services to value-based customer segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 7.2.3 Calculating lifetime profitability by customer . . . . . . . . . . . . . . . . . . 244 7.2.4 Transitioning to a customer-centric business model . . . . . . . . . . . . 244 7.2.5 Expanding consumer access using customer value management . 245 7.2.6 Implementing a new wealth bank . . . . . . . . . . . . . . . . . . . . . . . . . . 246 7.3 How to engage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 7.3.1 Business needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 7.3.2 Opportunity management process . . . . . . . . . . . . . . . . . . . . . . . . . 248 7.3.3 Opportunity management rules and guidelines. . . . . . . . . . . . . . . . 249 Appendix A. Listing of consultant and practice information . . . . . . . . . 255 Appendix B. Business partners and solution developers . . . . . . . . . . . . 267 Related publications . . . . . . . . . . . . . . . . . . . . . . Referenced Web sites . . . . . . . . . . . . . . . . . . . . . . How to get IBM Redbooks . . . . . . . . . . . . . . . . . . . IBM Redbooks collections . . . . . . . . . . . . . . . . . ...... ...... ...... ...... ....... ....... ....... ....... ...... ...... ...... ...... . . . . 271 271 271 271
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Special notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Abbreviations and acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Contents
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Preface
This IBM Redbook describes the Sell & Support Category Solutions within the Global Financial Services Sector. Specifically, it details the Banking, Insurance, and Financial Markets industries driving business issues, the IBM themes and Big Plays to respond to these business drivers, and the Solution Components and transition opportunities in support of our Big Plays. This guide is intended to serve as an internal tool, targeted to Client Services principals, IGS principals, and S&D Client teams that want to learn about and position our Sell & Support Value Proposition and Solutions for their clients. Note that this IBM Redbook is for internal use only. It is not intended to be given to customers.
The team that wrote this redbook

This redbook was produced by a team of specialists from around the world working at the International Technical Support Organization Raleigh Center. Rich Harvey is the worldwide FSS executive for IBMs Sell & Support Category. He has over 15 years of experience in applying BI solutions to assist clients in using data to make better business decisions. He has recently helped a large Property & Casualty insurance company in the US build one of the largest marketing data marts in North America, as well as aiding it in implementing its database marketing capabilities and in establishing its database marketing department. Rich holds a BA from Boston University and an MPH from the Yale University School of Medicine. He is a member of the IEEE and the ACM, and is based in Waltham, Massachusetts. Jim Anderson is a Sell & Support executive consultant in the FSS Center of Competency. Jim has over 16 years of experience in providing BI consulting services to financial service, government, manufacturing, and telecommunications clients worldwide. Prior to joining IBM, Jim held various financial management positions with Proctor & Gamble. He holds an undergraduate degree in economics from the University of Wisconsin at Madison, and resides in San Francisco. Paul Asobayire is a BIS e-business strategy and change consultant for FSS. Prior to joining IBM, he worked for two years as a consultant with a Boston-area strategy consulting boutique. Paul holds an MA in economics and an MBA from
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the Yale School of Management. He lives in New Jersey, and is a native of Ghana. Rick Bardine is a Sell & Support executive consultant in the FSS Center of Competency. He has over 19 years of experience in the accounting, financial services, and financial planning industries. Prior to joining IBM, Rick held IT management positions for a major US insurer. He holds an undergraduate degree from the College of Wooster, a law degree from Ohio State University, and a master of laws in taxation from Boston University. Rick is based in Waltham, Massachusetts. Ray Jones is a BIS senior consultant currently representing FSS within the IGS team supporting consulting methodology for customer loyalty engagements, and is its CRM subject matter expert. He has 29 years of consulting and business management experience, recently advising multiple financial services firms in the design of contact management solutions within an e-business context. Prior to joining IBM, Ray was president of a firm advising electronic commerce clients, and a vice president of information technology for a CRM systems manufacturer. Among his significant projects were managing a voice and Internet transaction center which processed 60% of all cable TV pay-per-view orders in the US, and designing the technical architecture and operational plans for the largest automated call center in the UK. Ray is certified in change management by the Center for Constructive Change of the New England Center for Continuing Education, and majored in public administration at the University of New Hampshire. He is based in Atlanta. Kevin Knapp is a senior consultant in IBM's e-business Strategy and Change practice assigned to the FSS US Central Region. He has over 15 years experience in retail banking, having worked for Chase, Citibank, and National City Corporation. Most recently, he operated his own consulting practice, helping middle market companies in the publishing and software development industries to increase the sophistication of their marketing and CRM efforts. Kevin holds a bachelor's degree in finance from Western Illinois University and an MBA from the Keller Graduate School of Management. He is a licensed CPA in the state of Illinois and lives in Cleveland. Marie Oak is an executive consultant in the Sell & Support Solutions category of the FSS Industry Center of Competency. Prior to joining IBM, she was marketing director for CRM development and for BIS (data warehousing and mining) at Nationwide Insurance. She has over 22 years of IT experience in insurance and telecommunications. For the past five years she worked for a consulting firm as an IT executive within the non-IT business units to translate business needs into technical opportunities, as well as to relate how technology can be leveraged to change business processes. She holds a BSBA from Ohio State University and an MBA from Ashland University. Marie lives in Columbus, Ohio.
Brian Scheld is an FSS BIS Managing Principal focused on the e-business Solutions (eBS) of Customer Loyalty, On-line Financial Services, and Wealth Management. He has over 22 years of IT experience, with the last 15 concentrated in Financial Services. He specializes in working with clients to define and operationalize customer-centric programs by converging techniques within IBM's Customer Relationship Management (CRM), Business Intelligence (BI), and e-business competencies. He has been featured in several publicationsincluding Technology Decisions, Insurance & Technology, and Close to the Customerand has made presentations to many customer forums. He holds a BS in Business Administration from the University of Scranton and an MBA in Computer Systems and Information Science from Pace Universitys Lubin School of Business. In 1996, he was elected to IBM's Academy of Technology. He is based in Waltham, Massachusetts. Bruce Shearer is a global solutions executive in the Global Financial Services Sector of IGS. He has over 32 years of experience in complex real-time systems. Bruce has held positions in development and delivery of space, avionics, and military command and control systems; development and operations management positions in manufacturing logistics and control systems; and most recently has managed definition and delivery of end-to-end insurance and FSS solutions. He holds a BS in electrical engineering from Lehigh University and resides in Charlotte. Theodore Strader is an FSS senior BIS consultant specializing in customer loyalty. For the past five years, he has been helping clients in the financial services industry align their strategy, plan their execution, prioritize their initiatives, and improve their business processes. In addition to his consulting experience, Ted has more than 15 years of experience in the life insurance and financial services industries, most recently serving as VP of marketing for a life insurance company. He has significant experience in life insurance marketing, sales service, auditing, and financial analysis. Ted earned his MBA from Duke University's Fuqua School of Business and holds an undergraduate degree in business administration from California State University at San Bernardino. He lives in Raleigh.
Editorial staff
Buck Stearns was managing editor. He is a Solution Development IT Specialist for IGS Business Development at ITSOs Raleigh Center. Prior to joining ITSO, he worked two years as a mobile employee assigned to Tivoli Services, and previously logged over 25 years in the banking and insurance industries. He has extensive experience in IT management disciplines, and holds undergraduate and graduate degrees in English from the University of North Carolina at Chapel Hill. Linda Robinson of ITSOs Raleigh Center was graphics specialist.
Preface
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Alfred Schwab of ITSOs Poughkeepsie Center was executive editor. Tom Feichtel was project executive. He is a certified project manager for Global Sell &Support/BIS-IGS based in West Chester, Pennsylvania.
Contributing writers
Cindy Adiano is an executive consultant with Global CRM/CVM/Loyalty Management responsibilities based in Austin. Lynn Arthur is an FSS solutions e-strategy manager based in New York. Margie Bachman is an FSS solution architect covering Wealth Management and is based in Charlotte. Bruce Baumbush is a Business Intelligence data management specialist living in St. Thomas, US Virgin Islands. Janet Beatty is a multi-industry business development consultant in Markham, Ontario. Steve Bello is an STSM S&D Business Architecture and Navigator expert based in Austin. Bryan Berent is a Sell & Support worldwide mid-market category executive in Southfield, Michigan. Rob Berini is an FSS e-business Strategy & Change principal in Charlotte. Kirk Boothe is a BI Solutions principal consultant based in Mobile, Alabama. Charles Burden is an SOMT Sell & Support solution architect for BIS Asia Pacific in Wellington, New Zealand. Ron Buszko is a delivery solutions architecture for the IGS Object Technology Group in Charlotte. David Carrigan is BIS Sell & Support Emerging Markets manager in Markham, Ontario. Andy Cash is an FSS Global Solutions mobile Internet executive in London. Mark Chetwood is Global FSS director of Sell & Support Solutions and is based in the UK. Adrene Clarke is a BIS insurance associate consultant in New York.
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Chris Commons is a Conversion Business Solution Services manager in New Orleans. Oliver Dewgard is an FSS Strategy & Change e-business consultant based in Chicago. Robert Dick is a National Practice B F & S executive consultant based in New York. John Evans is a BIS Insurance CoC offerings executive for FSS in Boulder. Mari Fleming is a BIS e-banking IT architect based in London and currently on assignment to B F & S, New York Rick Gordon is an FSS Sell & Support on-line Financial Services and e-insurance executive consultant in Atlanta. Joel Grosh is the Americas Innovation Executive and is based in Markham, Ontario. Matt Hasan is an FSS Customer Loyalty and CRM leader for banking and capital markets in New York. Kevin Jackson is worldwide practice leader for the Pervasive Computing Sell & Support Solution and is based in White Plains, New York. Gordon Jager is an FSS executive BIS consultant for worldwide Sell &Support in Minneapolis. Cathy Lone-Dawson is the worldwide program manager for Industry Based Templates and is based in Toronto. Bob Maden is an Insurance National Practice principal in Hartford, Connecticut. Michael McKnight is a Web-selling Services Global Solutions leader in Somers, New York. Hammou Messatfa is a BI practice leader in Paris. Stefan Pappe is a worldwide Sell & Support SOMT Architect in Heidelberg, Germany. Maureen Romanchik is a market requirements specialist with IGS Managed e-business Services in Chicago. Evan Salop is an FSS Sell & Support Category executive in Somers, New York.
Preface
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Mindy Schiller is the Global Offering manager for Enterprise Customer Analytics, and is based in Tampa. Charlie Schott is the Entity Profiling Solutions development manager for IBMs Business Intelligence Consulting & Services in Southbury, Connecticut. Trevor Skeels is an FSS solution architect covering EMEA and based in Leeds in the UK. Betsy Sleight is an FSS e-business Strategy & Change senior consultant based in Charlotte. Scott Smith is a Global Knowledge & Content Management Services managing principal in Cambridge, Massachusetts. Chris Sowa is a consultant engagement leader SME for ROWI and Globalization, and is based in San Francisco. Jim Sposato is an FSS e-business Strategy & Change senior management consultant from Indianapolis. Mads Toubro is an e-commerce Web-selling Services Global Offering executive in Somers, New York. Thomas Turkot is a BIS Sell & Support alliance manager for Microstrategy, Acxiom, & Alphablox in Chicago. Frances West is the FSS director of Global Solutions and is based in Waltham, Massachusetts. Fred Winegust is an FSS wireless e-business solutions liaison executive in Toronto. Robert Zabel is an FSS e-business Strategy & Change consultant in New York. Alexander Zekulin is a Global Sell & Support BIC&S Alliances manager in Dallas.
Support staff
Margaret Ticknor is the IT support specialist at ITSOs Raleigh Center. Rufus Credle is a veteran Solution Development IT Specialist for IGS Business Development at ITSOs Raleigh Center. In addition to his regular duties with other projects, he provided pro bono technical and logistical assistance as needed in the creation of this redbook.
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The information in this publication is not intended as the specification of any programming interfaces provided by any product mentioned in this document.
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Preface
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Chapter 1.
Executive summary
This chapter provides an executive overview of the key content for leveraging customer centricity across the Financial Services Sector. Here we describe the key competitive issues facing FSS clients, customer centricity (including the themes and Big Plays), engagement types, and the IBM value proposition. Customer centricity is best understood as a continuous-loop set of activities centered around translating customer needs and wants into repeatable business capabilities that drive value. These activities are those which the customer sees and relates toalso known as touchpoints or customer interactions.
Key competitive issues in the Financial Services Sector

Financial services institutions are facing an unprecedented set of challenges today. Changes in customer behavior, the competitive environment, regulations, and market expectations are occurring that threaten their very existence, while questioning their value propositions and sources of future profitability. Financial services executives are faced with having to absorb mergers and then deliver savings resulting from them, stock price pressure fueling expense cuts, and the need to create revenues through new enterprises and better business processes. Structural changes forced by the euro, globalization of competitors, and reduced loyalty from ever-wiser and more knowledgeable customers add to the issues facing financial institutions.
A renewed and intense focus on customer centricity throughout the business is key to addressing these issueswhether in the insurance, banking, or financial markets industry. This focus drives the growing demand for IBM solutions available through FSS Sell & Support.
Insurance
Competitive conditions are forcing insurance industry CEOs, CMOs, and LOBs to focus on customer retention, new distribution strategies, and further cost reductions. IBM delivers solutions that increase customer retention, improve profitability, leverage multichannel distribution, and redesign claims processes and systems to improve efficiencies and service levels. We do this through
people with broad and deep industry knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our insurance industry customers. Banking
For CEOs, CMOs, and LOBs of banks, customer loyalty and distribution have become as important as product development. IBM delivers solutions that will allow firms to offer bundled wealth management services and leverage multichannel distribution for selling and servicing to enhance customer loyalty. Furthermore, IBM delivers the infrastructure for enhanced operationsincluding continuous 24x7 processing as well as multichannel, multi-currency, and multi-language support. We do this through people with broad and deep industry
knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our banking industry customers. Financial markets
Trading process automation and the Internet are the primary issues facing CEOs, CMOs, and LOBs of firms in the financial markets industry. IBM offers solutions that automate all trade and settlement processes for retail investment and securities firmsincluding both total replacement of core back office systems and the linking of existing front, middle, and back office systems. Furthermore, IBM delivers solutions which will allow firms to offer bundled wealth management services and leverage multichannel distribution for selling and servicing to enhance customer loyalty. We do this through people with broad and
deep industry knowledge, global end-to-end capabilities, ISV application knowledge, and broad experience in integrating multi-ISV applications for our financial market customers. Leveraging customer centricity in the Financial Services Sector
All of these challenges are requiring our clients to become customer-centric. To succeed as customer-centric specialists, financial services institutions must: Deliver a consistent experience across multiple channels
Develop in-depth customer knowledge and then act on it Deliver value on the customer's terms to any access point (e.g. intermediary or portal) Respond rapidly to customer situations and market appetite Respond rapidly to deploy new delivery technologies While many clients have implemented independent customer-centric projects, they are only now recognizing that these projects must be tied togetherprojects which might include call centers, online banking, online insurance, and/or electronic bill payment. IBM can demonstrate leadership in integrating the customer-centric environment in the following ways:
By delivering a comprehensive approach rather than simply individual

e-business solutions, while providing the flexibility of multiple client entry points
By bringing together cross-sector solutions, like Customer Loyalty, Wealth

Management, and Mobile Internet with the industry-specific solutions of e-banking, e-insurance, and e-invest
By providing the right infrastructure for the heavy-lifting of e-business,

and then applying it to specific solutions for retail financial services
Themes and e-business solutions

In order to accelerate our clients' transformation to more customer-centric behavior, we have focused our Solutions around the following (illustrated in Figure 1-1 on page 4):
Chapter 1. Executive summary
Strategic Intent Market Themes/ Business Capabilities

Sales and Service
Leveraging Customer-Centricity in Financial Services

Advice and Guidance
Advicebased customer interaction Know the customer Offer the right product at the right time Provide customer access anywhere and anytimeclicks & mortar Aggregate the customer viewacross the total portfolio Provide advicebased on a broad range of offerings Offer the right service for the customer value
Organize around customer-centric processes
e-Business Solutions/ Big Plays Transition Opportunities
IBM Financial Services Sell & Support e-Business Solutions Customer Loyalty
Complete customer view
e-Banking e-Insurance
Consistent and personalized product and service delivery
Mobile Internet Branch Renewal

e-Enabled interaction at multiple customer touch-points
Wealth Management
Customer facing processes aligned with customer and business wants and needs
Solution Offerings
Solution Components
Figure 1-1 IBMs Financial Services Sector Sell & Solutions Framework
Combining these themes with market demand, FSS at a global level is focusing on three key e-business solutions:
Customer Loyalty Online Financial Services e-insurance e-banking Mobile Internet Branch Renewal Wealth Management
While the geographies can develop different approaches for a given solution depending on market demand, each e-business solution is at the same time both FSS-specific and supported by IBM Sell & Support competencies.
Financial Services Sector e-Business Solutions Wealth Management BI CRM e-banking Customer Loyalty e-insurance Web Selling Interactive Branding & Design Mobile Internet Pervasive Computing
IBM Sell & Support Competencies
Branch Renewal
Figure 1-2 Financial Services e-business Solutions. At the highest level, this book describes a set of e-business Solutions/Big Plays that transcend defined cross-industry market capabilities in order to deliver client value.
Engaging clients with our e-business solutions

The FSS approach to creating customer-centric behavior combines integrated, end-to-end solutions that provide our clients with the flexibility for multiple entry points: There are consultancy-led engagements that begin with the big customer issues: What should I do about attracting and retaining my most profitable customers? How should I reinvent my branch to drive more revenue and profits? We have some well-structured offerings of this type, particularly in the Customer Loyalty space. There are engagements that call for prepared, ready-to go solutions: Build and launch a new wealth bank Implement an insurance marketplace Add more personalized sales content to my online banking site
Chapter 1. Executive summary
A number of these replicable Solutions are available from IBM today, and we are working with our business partners to put more of these together. There are engagements that call for very specific competencies and Components: Can you help me implement a consolidated contact center (e.g., Siebel) with my legacy systems? Can you help me roll new technology (e.g., Web-based) into my branch network, and then manage it to control costs? Can you work with S1 to implement a wealth management portal for me? Can you make my channels infrastructure more integrated and more robust?
Extending the IBM value proposition

Another key FSS strategy is to leverage key ISV1 relationships. We have a number of global strategic business partners that are relevant to the Sell & Support category, such as Siebel, S1, ChannelPoint, Kana, Trilogy, Evoke, and Ericsson. Each geography can have different relationships based on geographic needs and the fit of each partner to the local infrastructure. We are building the needed competencies for them with BIS, and combining these as appropriate with other IBM assets such as WebSphere business Components, MQSFSE, CIIS, and IIW/BDW to solve specific customer problems. In order to help our clients accelerate their transformation to becoming more customer-centric, we bring a well-integrated, end-to-end portfolio of solutions, aligned to key themes, that provide the flexibility of multiple entry points and leverage our IBM assets and key ISV relationships.
Independent software vendor (aka Solution Developer)
Chapter 2.
Industry landscape
This chapter provides an overview of the Financial Services Sector. It discusses broad trends shaping that sector today, as well as IBMs view of the future state of financial services in general. It also identifies the challenges and issues that senior management must address in order to remain competitive and position its enterprise for future success. The Financial Services Sector comprises disparate lines of business that are impacted differently by various macro-level trends. In writing this chapter, we recognize that significant variations exist across geographies and LOBs. We attempt to call out important idiosyncratic trends by geography and LOB as necessary; but overall, we focus on the larger Financial Services Sector. For the purposes of this book, we define the greater Financial Services Sector to include three broad categories:
Customer Loyalty: An enterprises activities to derive value through customer

centricity
Online Financial Services: The application of online technologies,

processes, organizational structures, and business models to improve efficiency and effective delivery of financial servicesincluding e-insurance, the new wealth bank, and the mobile Internet
Wealth Management: The aggregation of financial services that are targeted

to specific, valuable customer segments and delivered through appropriate channels to maximize value to the enterprise
2.1 Current Financial Services Sector landscape

Financial services institutions are facing an unprecedented set of challenges today (see Figure 2-1). Changes are occurring in customer behavior, the competitive environment, regulations, and market expectations that threaten these organizations very existencesquestioning their value propositions and sources of future profitability.
Customer Expectations Reinvention of Retailing (B2C and B2B) Structural Bypass Enterprise Realignment
Technology Changes Business/Regulatory Drivers

Globalization Restructuring/Consolidation Regulation/De-regulation Compression of product lifecycles Non-traditional competition Disintermediation
Figure 2-1 Several major forces are reshaping the global financial services marketplace.
Financial services executives are faced with having to absorb mergers and then deliver savings resulting from them. Stock price pressures are fueling expense cuts, and revenues must now be created through new enterprises and better business processes. Structural changes forced by the euro, globalization of competitors, and reduced loyalty from ever-wiser and more knowledgeable customers add to the issues facing financial institutions. A renewed and intense focus on customer centricity throughout the business is key to addressing these issueswhether in the insurance, banking, or financial markets industry. This focus drives the growing demand for IBM Solutions available through FSS Sell &Support.
2.1.1 Current global Financial Services Sector dynamics

Globally, the Financial Services Sector is impacted by deregulation, globalization, and industry convergence. Changing customer demographics and exponentially increasing customer expectations add another dimension to current trends. Product maturity and subsequent business model reinvention fueled by e-business trends contribute to the current dynamics of the Sector.
Increasing deregulation of financial markets, coupled with the availability of enabling technologies, is driving businesses to integrate their national and cross-border operations to achieve economies of scale and offer a seamless value proposition to their customers. This raises the need for large multi-national financial institutions to integrate their back-end technologies, streamline operational processes, and undergo significant organizational realignment. Industry maturity is evidenced by the lack of innovative products and services in the Sector, together with declining profit margins. Innovation and new growth opportunities come from emerging e-business models that are driving significant cost reductions through e-enabled processes, as well as top-line growth through enhanced value propositions. Compression of product life cycles results from rapid innovation occurring in e-business. Time to product maturity is shortened as products are bundled with technology-enabled services and reconfigured towards specific customer needs. Thus, pure product plays result in less value and quickly become commoditized compared to offerings that combine technology and services to address consumer needs. Business model reinvention, with special focus on customer centricity, is driven by the compressed product life cycles discussed above, as well as the superior potential returns of a customer-centric business model. Customercentric organizations develop in-depth customer knowledge, enabling them to tailor their services to customer situations and market appetite. They differentiate themselves through premier customer service, using significant levels of alternative delivery technologies. Industry convergence began in Europeparticularly in the UK, where banks
have been able to offer insurance products since 1987. The US is playing catch-up, with recent deregulation allowing commercial banks to offer brokerage and insurance services. As the financial sector converges through acquisitions and strategic alliances, there is a growing need for process realignment and integration of technologies across industry lines.
Disintermediation of the value chain has emerged as a significant

competitive threat to traditional players as nontraditional competitors attack various aspects of the value chain. Nontraditional players include sales intermediaries (e-insurance broker, e-finance broker, e-market/e-exchange),
Chapter 2. Industry landscape
functional specialists (e-claims, agency management support, trade matching), and event mediators (home buying, auto purchases, retirement, etc.). This challenges traditional players to update their processes and technologies to compete with the newcomersunless they want to relegate their future roles in the value chain to commodity production.
Spiraling customer expectations are influenced by customers experiences of

best practice servicingnot just within the financial services industry, but also in others. With the emergence of e-business technologies, customers expect their financial institutions to be able to do business however the customer chooses and at that customers convenience. This is driving the need for customer-centric business models which require organizations to acquire capabilities that include: An enterprise-wide view of the customer Pervasive, consistent access across all channels Personalized services based on individual needs
Demographic trends, especially the aging of the baby boomers and

emergence of a new wealth segment, strongly impact the Financial Services Sector. By 2007, baby boomers will begin to be required to draw on their retirement savings. Most of them will continue to work while doing so, thereby requiring specialized financial services to meet their unique needs By 2030, 25% of Europes population and 20% of Americas will be above age 65. This relatively wealthy segment will require wealth transfer services, and their next-generation beneficiaries will require services for managing their new wealth.
New wealth segments are emerging due to recent economic prosperity.

These segments tend to be younger, have more information available to them, and have goals and behaviors that impact the financial sector differently than the traditional wealth segment. Characteristics of the new wealth segment include: A tendency to be younger, with wealth accumulation rather than maintenance as its primary goal Shorter horizons A growing information overload Greater sophistication, better education, and more self-reliance in investment decision-making, thus requiring a mixture of self-managed and advised accounts Employing a mixture of passive and active investment strategies, with an emphasis on the active
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A shift from managed products (e.g., mutual funds) towards lower-cost instruments such as index funds or individual securities A shift from bank deposits (CDs, GICs) towards equities and other fixed-income securities (e.g., Treasury bills or bonds) Requiring relationships and physical presence from their institutions Continuing to take more responsibility for their retirement income
Rapid growth in the number of people online is driving financial services

providers to compete for their share of this market. By 2003, 40% of France (24.1 million people), 50% of the UK (30 million), and 61% of the US and Canada (168 and 15 million respectively) will be online. Worldwide, estimates are that 40% of savings, 25% of new credit card issues, and 24% of new mutual fund business will originate online. Enterprises are beginning to offer best-practice, customer-centered online services to capture this growing segment.
Device ubiquity is evidenced by the increasing use of wireless devices. In

2000, there were 9.63 million users of wireless financial services, projected to grow to 228 million in 2005. As devices become ubiquitous and usage costs continue to decline, financial service providers are looking to service customers and build lasting relationships through such wireless appliances as cell phones and PDAs.
2.1.2 Geographic idiosyncrasies

Whereas the global trends discussed so far impact financial services enterprises worldwide, specific regional idiosyncrasies are also at play and need to be recognized: Deregulation is a recent phenomena in the US, with the Glass-Stegal Actwhich prevented commercial banks from engaging in investment banking activitiesnot being repealed until 1997. Prior to this, US banks had to contend with competition in particular from European money center banks, which did not face such restrictions. The repeal of Glass-Stegal has meant more frantic M&A activity with the US banking sector than its EMEA counterparts. Whereas bank assurers (banks that offer insurance services) have been the norm among major banks in the UK since 1987, the US is only now witnessing the convergence of these two sectorsthanks to recent deregulation. Thus, the need to realign business processes and technologies as banks acquire insurance capabilities, and vice versa, might become more eminent in the US. Privacy restrictions on how businesses can use and share customer data are generally more stringent in EMEA than in North America. This will affect the
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type of customer-centered business models and the extent of collaboration across industry lines that occur in EMEA as opposed to North America. The Gramm-Leach-Bliley Act, which became effective in the US in December 1999, requires financial institutions to disclose annually to a customer all personal data they share with partner institutions each time that information is shared, and then offer that customer the option to pull out. This will effectively limit the level of enthusiasm for partnering, since required disclosures threaten the perception of the trusted advisor relationship with banks if customers do not believe their personal information is safe with those banks. Around the globe, individual responsibility for the accumulation of wealth and the satisfaction of health care needs (life-cycle financial management) is highly responsive to the level of government involvement in and sponsorship of programs associated with retirement benefits, health care, and other subsidy programs. Correspondingly, corporations providing retirement savings programs and health care benefits are also more likely to offer those programs in geographies where individual responsibility for life-cycle financial management is high. Looking globally at government involvement in and sponsorship of life-cycle financial management as a continuum from the highest to the lowest level, Singapore currently has the most government involvement, followed by the Nordic countries. France, Germany, and Japan fall in the mid-range of the continuum. Australia, the UK, and South Africa fall in the next lowest range of government involvement. The US is positioned at the pole position in this continuum, with the lowest level of government involvement in and sponsorship of life-cycle management.
2.2 e-business prevalent patterns

2.2.1 General trends
IBM has identified three waves of e-business maturity on the Internet:
Wave I companies are typically traditional enterprises that use the Internet to improve performance of existing business processes and models, seeing it primarily as a new electronic channel to create efficiencies in supply chains and distribution systems.
Technology adoption has been tactical, mainly deployed to gain cost effectiveness in current operations. A study by IBMs e-business institute reveals that Wave I financial institutions are less confident of having a well-defined e-business strategy and strong e-business leadership.
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Wave II companies are typically pure Internet plays. They build innovative
e-business models on the Web, using network technology to offer new value propositions, streamline operations, and/or disintermediate traditional market structures. These new value propositions threaten the viability of traditional players. Essentially, Wave II providers are successfully competing in context and capturing relationships with customers, thereby relegating traditional institutions to content-provider roles one step removed from customers.
Non-traditional competitors are using e-Business and related technologies to unleash three powerful forces which re-define the financial services industry, producing business re-invention.
Internet-enabled structural by-pass of the current business infrastructure
al B
y-P
as s
Reinvention of customer relationship-based value capture through best-of-breed aggregation, event mediation and agency offerings
g lin ta i Re
e inv Re
S tr uc
tur
Enterprise Realignment
Dramatic reductions in traditional infrastructure and process costs
Figure 2-2 IBM has identified three waves of e-business maturity on the Internet.
Wave I/II hybrid enterprises are now being created, mainly by traditional players whose value proposition and viability are threatened by pure players. Wave I/II players combine the innovation of Wave II business models with the best aspects of the more traditional Wave I infrastructures, thereby achieving the cost efficiencies of Wave I and positioning themselves to compete with Wave II enhanced-value propositions. Best practices vary by industry sector.
o nti
n
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2.2.2 Financial services sector best practices

The following comprise only a partial list: Full service brokerage firms are now beginning to compete on the Web, and the innovators are moving to wireless access. Leaders in online home lending are moving to provide the full breadth of services, surrounding the home buying life event with well-designed user interfaces. Online mortgage is moving toward near real-time approvals, vastly reduced cycle times, performance guarantees, and integration into the overall home buying process. Retail banking providers have focused primarily on developing online enabling tools, and there is very little differentiation among providers. However, Wave I and Wave II banks have not yet created a value proposition compelling enough to move market share dramatically or create significant new revenues. Leading insurance retailers are exploring Wave I and Wave II models, but significantly trail other financial services retailers in their movement to the Web.1 Insurance retailers typically have transactional and/or self-service Web functions, whereas the long-term objective is to provide trusted advice. While online insurance sales have been low to date, many offline sales are being influenced by information available on the Web. In the US, direct online sales of auto, home, and term insurance were only $400 million compared to Internet-influenced sales of $1.8 billion in 2000. These figures are projected to reach $4 billion and $7 billion respectively in 2003.2 Although banks are holding their own in attracting traffic for basic banking activities, many other nontraditional players are winning the battle in other areas of financial services: In January 2000, wellsfargo.com had the highest online banking visitors, but getsmart.com got the most mortgage visitors, and paymybills.com received the most visitors for credit card processing and online payments.3 Asked the main reason why customers use online financial services, managing finances was by far the predominant reason. This space is dominated by nontraditional competitors.4
1 2 3 4
IBM Consulting Inteco, Garner Group, 1999; Forester Research, 1999; Piper Jaffray, 2000 Top9.com (Web sites ranked by traffic) Cybercitizen, 1998 & 1999
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In 1998-99, of the 40% Web users in this category, 33% used AOL Personal Finance, 14% used quicken.com, 11% used Yahoo finance, and 6% used Schwab.5 Many of the nontraditional financial aggregators and advisors focus on providing superior tools, information, and advice, while relying on partnerships with external providers for execution capabilities. Strong competition is emerging from established, nontraditional competitors with well-established brands in their respective industries. Corporate Banks have used proprietary electronic systems since the early 1980s to exchange data with their clients, mainly for cash management/payment services and custody services. As a result, corporate banks were late in starting to use the Internet.
2.3 Future e-business context

Dynamic e-business (DeB) is the next phase of B2B relationships. It is an extension of the current trend for enterprises to integrate supply chain and business processes with strategic partners to achieve: Speed Cost savings Extended delivery capabilities Outsourced ancillary functions Currently, strategic relationships tend to be long-term due to static enterprise value propositions and high costs associated with the formation and dissolution of partnerships. Over time, with available technology and as enterprises adopt flexible enterprise infrastructures, ad hoc partnerships will be formed rapidly in response to specific business opportunities, and then dissolved after executing their specific projects. DeB uses the Internet to extend, automate, and bind business processes in the business relationship life cycle in order to increase speed and lower transaction costs. For example: To use electronic registries to make needs and capabilities known, and automated search to find business partners To negotiate terms and conditions by exchanging machine-readable content and capturing the results in the form of electronic contracts To transact business by coupling automated processes using each partners choice of technology, Web services, and commerce protocols
5
Cybercitizen, 1998 & 1999
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With DeB, the Financial Services Sector will undergo a large, qualitative change in which business relationships are established dynamically and automaticallythe next big thing in B2B.
virtual enterprises
2000 and beyond
dynamic configurations
software contracts
Legally-binding semantics
Dynamic e-Business is the next phase of B2B relationships
business workflow
1999 and prior
process interoperability, brokering, matching and reconciliation
ad hoc interoperability
Asynchronous connectivity, EDI messages, encapsulation
business packages/business objects

Enterprise Resource Planning, Customer Relationship Management, Supply Chain
Operating System and Database Building Blocks

Figure 2-3 B2B evolution
Business processes will be represented electronically, allowing suppliers, users, and service providers to interact directly via the Internetthereby evolving from proprietary, closed networks to widespread use of the public Internet Open standard interaction points will allow automated B2B relationships with partners, thus: Enabling many business applications to run fully or partially automated Reducing the extent and cost of human/manual intervention The process of looking for, negotiating with, and selecting a new trading partner, and setting up systems to conduct e-business will be:
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Automated using electronic contracts with negotiable service level agreements Supported with tools, methodology, business process design/analysis services, etc. New trading partner relationships can be easily and dynamically established in response to: Better prices, terms, and conditions Changing market conditions or business models Dynamic e-business will lead to significant cost efficiencies and organizational effectiveness through partnering and integrated processes. Competitive advantage will be gained by those enterprises that do the following: Establish the most effective relationships Integrate critical processes for seamless execution Maintain an open, modular, adaptable enterprise infrastructure to enhance configuration or re-configuration as needed Move rapidly in response to opportunities
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2.4 Global financial services future industry dynamics

IBM postulates that over time the Financial Services Sector will converge, blurring the distinction between industry players as insurance companies, banks, and brokerage/securities firms engage more aggressively in each others traditional space.
Customer Centric Specialist

source of highest margins in the future
In-depth knowledge of customers Ability to tailor to customer situations & market appetite Premier levels of customer service Significant alternative delivery technologies Increasingly dynamic platform Instantaneous customization Bundling
Traditional Financial Services
Product Manufacture Specialist
Information/ Transaction/ Infrastructure
Information management Transaction processing
1980s
2005
Figure 2-4 The financial services firms that can successfully compete in customer value and relationship are predicted to achieve the highest profit margins in the future, but are likely to have the most difficult challenges along the way.
The new integrated financial services enterprises will segment customers on the basis of purchase capacity by behavioral segment. Distribution channels will be optimized and tailored to specific segment needs. Financial service organizations will implement strategies that direct customer segments towards the channel that most effectively services their needs. As financial markets become increasingly global, the current predominance of domestic fund flowsfeaturing siloed, portfolio-based enterpriseswill give way to a predominantly international flow of funds dominated by market makers and technology-enabled direct intermediaries. To succeed in the emerging financial services environment, major players will need to develop extensive networked capabilities that enable them to offer products and services across the whole financial services spectrum. This will
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be achieved through strategic partnerships, acquisitions, and other types of alliances. The predominant dimensions of competitive advantage in the networked financial services environment will include: Product features and price Innovation through technology Sophistication of market and customer segmentation Low-cost, convenient delivery channels Customer relationship-based selling propositions Strategic alliances Any combination of the above New business models will evolve among financial services organizations as they position themselves for success in the emerging market environment. Possible business models include: Market-centric Fulfillment/enablement-centric Production/manufacturing-centric Customer-centric
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Chapter 3.
Big Play concepts

This chapter defines the FSS Sell & Support strategic intents, as well as the e-business Solutions/Big Plays that support them. Each e-business Solution/Big Play supports one or more of the strategic intents and is supported by a subset of the Sell & Support market themes or business capabilities.

Sales and Service

Advice and Guidance
Know the customer Offer the right product at the right time Provide customer access anywhere and anytimeclicks & mortar Aggregate the customer viewacross the total portfolio Provide advice based on a broad range of offerings Offer the right service for the customer value
e-Business Solutions/ Big Plays
IBM Financial Services Sell & Support e-Business Solutions Customer Loyalty e-Banking e-Insurance Mobile Internet Branch Renewal Wealth Management
Figure 3-1 IBM s Big Plays are focused on critical themes in the marketthe business capabilities required by clients.
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3.1 Elements of customer centricity

Customer centricity is a continuous-loop set of activities centered around translating customer needs and wants into repeatable business capabilities that drive value. These are the activities the customer sees and relates to, also known as touchpoints or customer interactions. Continuous loop pertains to the relationship between process and data. Each
customer interaction is recorded and analyzed so that the experience and lessons learned from past interactions can influence the presentation and offerings in future ones. This closed-loop method (see Figure 3.2) is also known as a treatment and response model. Each and every customer contact is considered a treatment, and the result of this contact is recorded as a response. The relationship of treatments to responses is critical in building sales propensity models for up-sell and cross-sell opportunityas well as in retention prediction to identify the situations that might indicate a warning for potential lapse, surrender, or liquidation of an account, policy, or perhaps the entire business relationship itself. While many of our clients often see the flaws in data capture and flow as the best opportunity to start building the continuous loop, they also need to pay close attention to the process aspects of how business functions are enabled and presentedwhich can either address customers wants and needs, or frustrate them enough to place their business elsewhere.
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Contact Management
Response Management
Insurance
Marketing Sales Service Contact Advice
Banking Securities
Response Response Response Response
Points
Awareness
Ideal Value
Consideration
Discontinue or Repurchase
Essential Process Capabilities
Customers
Shopping
Enterprise Customer Data

Customer Data
Needs/Wants Demographics Loyalty Transactions etc.
Customer Information Managment
Enablers (Infrastructure/Support)
Validation
Service Buying
External Customer Data
Customer Value Management
Figure 3-2 The closed-loop method
Customer Value Management provides the customer context in order to begin with a clear understanding of what the customer values. This then drives the essential process capabilities and enablers required toward the contact points through which the customer interacts. Contact Management is the process by which there is a targeted customer
experience with a high degree of consistency across all physical contact points (e.g., Internet, IVR, intermediary) and all contact management types (e.g., marketing, sales, service, and advice).
Response Management is about the vigilant capture of customer responses to

each and every customer contact or interaction. Critical to customer centricity is the discipline of testing approaches and methods, presentation content, and collateral material, as well interaction style. How successful a firm is at customer centricity will ultimately depend on how effective it is at capturing and analyzing contact response.
Chapter 3. Big Play concepts
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Customer Information Management involves the flow of operational (a.k.a. transaction) data driven out of the contact and response interaction into an information state through which internal and external customer data can be brought together for analysis. This analysis should entail some form of validation to assure that needs have been effectively satisfied from the perspective of the customer (e.g., customer satisfaction and repeat purchase analysis) as well as from that of the financial services firm (e.g., household/account profitability, retention, and product density analysis).
IBM has considerable experience in helping companies determine a customer-centric view of what customers valuefrom basic requirements (must haves dictating whether customers leave) to those that will lead to true customer loyalty (attractors). Through a structured Customer Value Management (CVM) modelwhere IBM holds several patents for supporting toolsthose customer needs and attractors are identified, and the capabilities required to satisfy them are assessed. In addition, the infrastructure and enablers that will support those capabilities are identified, and a plan is developed to help the company improve its infrastructure, enablers, and capabilities in order to deliver customer-defined needs and values. Many companies have found the CVM model to be particularly powerful because it uses an outside-in view from the customer, rather than an internal view of what the company thinks customers value. IBMs Sell & Support competencies focus on creating value through service standards, process capabilities, and enabling technologies, while its e-business solutions focus on the capabilities that businesses must provide in order to keep existing customers and continue to secure new ones. For example, some of the characteristics of a robust solution could include:
Marketing
Learn what customers want. Target the right customers. Position products and services.
Sales
Attract more customers. Create repeat business. Maximize product profit.
Service
Assure customer satisfaction. Retain profitable customers. Allocate service costs by customer profitability.
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Advice
Provide periodic and on-demand portfolio performance valuation. Provide unbiased, timely, and personalized guidance designed to help customers achieve their goals. Achieving customer centricity is an integrated approach to managing the full customer life cycle from customer selection, customer acquisition, and customer development through customer retention. In todays business environment, the value chain spans the marketing, sales, and service functions of an enterprise. At every point of interactionwhether marketing, selling, or servicing a customerknowledge of the customers wants, needs, and values must be leveraged into opportunities to establish and maintain customer loyalty in order to increase retention and profitability. This requires integrating solutions across the value chain, a critical success factor in delivering value to customers and differentiating an enterprise in an increasingly competitive marketplace.
Marketing
Leveraging Leveraging Customer-Centricity Customer-Centricity
Aligned with product & services
Sales Sales
Customer Customer Selection Selection
Aligned with channels and partnerships
Customer Customer Acquisition

Prospecting
Customer Development
Customer Retention
Up-Selling, Cross-Selling, Wellness and Advice / Guidance
Service
Advice
Figure 3-3 Leveraging customer centricity can be described in a set of business processes focused on acquiring, developing, and retaining customer relationships in a targeted and selective manner.
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A true customer-centric solution must focus on the customer-facing processes and leverage all interactions with the customers. Key components of this solution should include: Personalized service (reactive and proactive) Multiple choices for access/service Consistency across points of access Ability to leverage existing systems/data Modular, scalable, and flexible systems Long-term retention of customers results in increased profitability and competitive advantage. The longer customers remain customers, the more profitable they become. Through increased purchases and referrals, customer loyalty contributes significantly to the bottom line. Customer loyalty solutions touch all aspects of the business, and as such are complex in nature. The impacts of transforming a company to a customer-centric business involve changes in:
People: an organization that supports long-term, high-value relationships with

customers, suppliers, and employees
Process: an integrated, enterprise-wide process for selecting, acquiring,

developing, and retaining customers
Technology: that enables personalization, consistency, and choice
3.2 End-to-end business architecture

Within the financial services industry, end-to-end business architecture is achieved by building a comprehensive end-to-end solution enabled by tightly integrated processes and infrastructure. This business architecture has three main components:
Collaboration Business operations Analysis

Each component facilitates specific functional processes that support the business transactions serving the needs of the end customer.
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Collaboration
Business Operations
Data Transformation and Integration
Analysis
Version 1.7 IBM 2001
Desktop
Assisted Call Center Producer (Agent) Branch FAX Mail
Customer Interaction Processing Marketing Prospecting Campaign Execution Campaign Mgt. Sales Cross Sell & Up Sell Needs Analysis Illustration Service Customer Care Case Mgt. Bus. Txn. enablement Advice & Guidance Aggregation
Telephony
Internet
Self Service Internet e-Mail Kiosk WAP ATM PDA
Wireless
eMail
Core Business Processing Banking Transaction svcs. Account mgt. Insurance Quotation Underwriting Policy Admin. Claim processing Securities Trade Execution Clearing & Settlement Cross Industry Credit & Cash mgt. Statement & Billing Accounting
Partner Business Processing
Data Warehouse Enterprise Extraprise
Data Marts Activity Analysis Segmentation Market Mgt. Profitability Campaign Devt Campaign Assessment
B2B Portal
B2B Partners Resellers Portals
Data Analysis & Reporting Personalization Enterprise Client File & ODS Data Mining Mgt. Reporting Predictive modelling
Channel Enablement
Enterprise Application Integration
Figure 3-4 Customer-centric business architecturea comprehensive end-to-end environment enabled by tightly-integrated processes and infrastructure.
Collaboration is the interaction between the customer and the physical

access points being tightly managed by a Contact Management system or systems that provide business context for all touchpoints between the customer and the enterprise. The types of touchpoints facilitated by Contact Management are: Marketing Sales Inbound and outbound service Advice/guidance
The Service component is the widest in functionality, covering all post-sales activity from name and address changes to fund/asset allocation changes to billing and payments to general questions and answers. Two additional components within the collaboration space are: Personalization: the mechanism by which Contact Management functions can be delivered in such a way that they appeal to the unique wants and needs of the individual customer through any touchpoint.
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Enterprise client file: the mechanism by which the Contact Management functions can be fully knowledgeable of all customer product and contact instances across all channels, LOBs, and products.
Business operations is the core business processing done by the financial

institution. These are the basic fundamental processes, functions, and activities that are often imbedded in heritage/legacy processing systems. These were often the first functions codified and thus the most difficult to integrate from a CRM perspective. It is not uncommon that these legacy systems number in the twenties or thirties for a specific LOB within a given company.
Analysis is the process by which pertinent customer data is pulled from the
core business and contact management systems into a framework suitable for dimensional reporting and ad hoc querying. Some examples of such point analysis are customer profitability, marketing campaign assessment, and market management. In order to address customer centricity, many financial services firms have focused on introducing new customer interaction models and physical access points with an emphasis on specific contact management processes such as marketing, sales, service, and advice. Data is often a pragmatic place to begin this implementation journey.
3.3 Strategic intent

Why do financial services firms care about customer centricity? Why is there a great exodus from being product focused to catering to the needs of the customer and channel? At the most simplistic level, achieving customer centricity is about increasing profitable revenue growth by focusing on those customers most likely to become and remain the most valuable customers. It is thus grounded in one or more of the following business drivers or strategic intent:
Target products and services to value-based customer segments.

Implement a value-based business model. Increase loyalty of the intermediaries (distribution channels) via targeted service offerings. Accelerate the implementation of the online business channels. Increase the profitability of the product and service portfolio. Increase sales to customers. Increase customer retention and product density (wallet share).
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Reduce costs of acquiring and servicing customers. Leverage brand value, optimize time to market, and improve risk management. In the ultimate reach for customer centricity, targeting products and services to value-based customer segments is the method by which the customer wants, needs, and potential are clearly understood, making it possible to tailor offerings to be more readily accepted by the customer. Implementing a value-based business model concerns the need for the firm to reinvent itself around the value proposition of the customer and thus make every function performed and every interaction facilitated focused on attracting and retaining the highly-valued customers of the firm. Increasing the loyalty of intermediaries through targeted service channels focuses the institution on its key contact points with end customers, assuring retention of existing customers and a continuing stream of new sales. Accelerating the implementation of the online business channels assists in that effort by focusing on extending the firm's reach to the customer any time and anywhere, thus giving customers more choices in how they do business with the firm. The firm can increase the profitability of the product and service portfolio in two ways: Refreshing what is offered to the customer is more likely to result in up-sell and cross-sell opportunities. Sourcing these new products through affinity partnerships is more likely to open up more prospects. Increasing sales, retention, and wallet share or density are measures of a firm's effectiveness and focus on maximizing the profitability of the household/account to the firm. Reducing costs of acquiring and servicing customers at the household or account level is a measure of the firm's efficiency. Finally, in the online business model, it is especially important to focus on leveraging brand value, optimize time to market, and improve risk management, thought of as leveraging the reputation of the firm through the most effective and expedient interaction methods while addressing the exposures inherent in an electronic business model. Thus customer centricity focuses the firm's efforts on its key drivers and forms the basis of IBM's Big Plays.
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3.4 Market Themes/Business Capabilities

These provide a linkage of the strategic intent into a context that can be addressed by Sell & Support Solutions. Whether a financial institutions business model is focused on a sell/service or an advice/guidance customer orientation, there are specific business capabilities that provide emphasis for enterprise direction and infrastructure investment. It is important to note that there is no right or wrong model. For example, the Sales and Service orientation might be very appropriate for a personal lines P&C (property and casualty) insurer, while a multiline bank or investment firm would most likely want to pursue the Advice and Guidance orientation. Each firm needs to build specific business capabilities that are appropriate to the customer orientation they are trying to achieve. The emphasis is on appropriate customer orientation.

Sales and Service

Advice and Guidance
Figure 3-5 The link between Market Themes/Business Capabilities and Strategic Intent
There are several Market Themes/Business Capabilities that have been created to give focus to the Strategic Intent:
Know the customer: Understanding your customers and their needs entails optimizing customer contact management, requiring a dialog between the customer and the company. The goal is to learn everything you can about the customer, then leverage that knowledge to provide the kinds of products and services customers want at any given timeestablishing a continuous closed-loop process with customers in which the information received from them drives improvements in products and services that they in turn receive from you. Offer the right product at the right time: An in-depth understanding of customers and their various relationships extends beyond simple demographics to pin-point life events, asset acquisitions, employment, investment strategies and buying behaviors, thereby helping identify what customers value. The key is to use that information in delivering value to your customers, leading to personalized service regardless of how the customer contacts you or you contact the customerwhether via an agent, phone, mail, kiosk, or the Internet.
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Offer the right service for the customer value: As clients become more sophisticated with Customer Loyalty, customer analytics enable them to differentiate service based on the value of the customer to the company. This capability empowers firms to address both operational efficiencies and profitable growth by executing tiered service programs. The drawback of some of these programs is that most firms do not measure the potential value of a customer or household. Aggregate the customer viewacross the total portfolio: Viewed from the
customer perspective, wealth management is about the need for getting ones financial life in order and keeping it that waywhile viewed from the financial institutions perspective, it is about creating long-term, highly consolidated, primary financial services relationships with its customers. Imperative to satisfying either viewpoint is the aggregation of the customer portfolioas much as the customer is willing to share.
Provide advicebased on a broad range of offerings: Historically, wealth

management has been the purview of private banking, targeted to wealthy individuals in the top 1-7% of the income bracket. The emergence of other wealth classesincluding the wealthy young, with significant portfolios looking for wealth management serviceshas created an opportunity to extend services beyond the traditional target market. By designing around the total portfolio needs of the customer, there is more attention on the aggregation of several services delivered conveniently to the customer. The advent of e-business technologies has also reduced unit servicing costs and made it possible to extend traditional wealth management services to other customer segments, as well as expanding the portfolio of services offered.
Provide customer access anywhere and anytimeclicks & mortar: The focus on ubiquitous access will continue to be the theme for financial services contact management. Access is all about providing customers with choices in how they want to interact with financial services firms in the marketing, sales, service, and advice processes. Nontraditional, Internet-based competitorsincluding portals, destination sites, Internet-based lenders, brokers, and banksare attacking the traditional value chain. They combine services with information and technology-enabled customer-centric processes to create an attractive value proposition. This challenges traditional players to offer their own compelling value propositions on the Internet, or else risk losing a significant customer segment to new competitors.
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Organize around customer-centric processes: Developing and implementing a

continuous-loop customer-centric capability is not just about technology. There are key process and organizational capabilities that will need to be introduced to achieve the benefits. Key to organizing around customer-centric processes is helping financial services organizations through the cultural changes necessary to fully appreciate household/account-based benefits, focusing on the aspects of governance, measurements/metrics, and overall program management.
3.5 Big Plays

In order to help our clients focus on specific aspects of enabling customer centricity, IBMs Financial Services Sector has developed several e-business solutions that provide actionable consulting, services, and solutions delivered in an end-to-end approach. While these Big Plays are grounded in the Market Themes/Business Capabilities, they can be viewed as a collection or set that provides context for action:
Customer Loyalty Online Financial Services e-insurance e-banking Branch Renewal Mobile Internet Wealth Management
These e-business solutions leverage the solutions and consulting within the IBM Sell & Support competencies of Customer Relationship Management (CRM), Business Intelligence (BI), Web Selling, Interactive Branding & Design, and Pervasive Computing. Many industry-leading companies view CRM and BI as fundamental and thus critical to the survival of their businesses.
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Sales and Service

Advice and Guidance
e-Business Solutions/ Big Plays
IBM Financial Services Sell & Support e-Business Solutions Customer Loyalty e-Banking e-Insurance Mobile Internet Branch Renewal Wealth Management
Figure 3-6 IBMs Big Plays cut across and share specific Market Themes/Business Capabilities in order to provide structure and leverage.
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3.5.1 Customer Loyalty

Customer Loyalty is a multi-industry phenomenon driven by the enterprises need to align its value propositions and organize internal processes to better meet customer needs and expectations. This must be based on an understanding of the customers point of view, otherwise known as becoming customer centric. Customer Loyalty can be described in a set of business processes focused on acquiring, developing, and retaining targeted customer relationships.
Know your customer
Make the right offer... At the right time
Offer the right service for the customer value

Figure 3-7 Customer Loyalty focuses on acquiring, developing, and retaining targeted customer relationships.
Industry dynamics
Trends in the financial services industry from the Customer Loyalty perspective include: Customer expectations driven by customer experiences beyond the typical boundaries of the financial services industry The availability of enabling technology and analytical toolsmaking it increasingly possible for leading firms to customize products and services
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very specifically to the needs of their most valuable customers in order to increase wallet share An increasingly global market view as investors look to international markets for portfolio diversification This positions traditional players with a global presence at an advantage, but they must act quickly to exploit this advantage before new competitors develop global capabilities. Strategic alliances among financial services providers to broaden their product scope service delivery capabilities, resulting in a growing need for integrating IT services and streamlining processes across LOBs
3.5.2 Online Financial Services

Online Financial Services covers a broad spectrum of brand/channel e-enablement focusing on e-insurance, e-banking, branch renewal, and mobile Internet. This set of e-business solutions is driven by the need to provide customers access to the brand/channel in whatever ways they feel are effective for them and economical for a financial services firm.
Make the right offer ... At the right time
Offer the right service for the customer value
Provide customer access anywhere and anytime ... clicks & mortar

Figure 3-8 Online Financial Services focuses on the enablement of the customer access and distribution channels.
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Industry dynamics
Trends in the Financial Services Sector from the Online Financial Services perspective include: Growth in Internet usage will fuel worldwide e-commerce revenues. B2B will account for the majority of these e-commerce revenues. As device ubiquity and entrenchment of wireless financial services growand as associated unit costs declineusers will exceed 75 million in Western Europe in 2005. In 2000, there were 9.63 million users of wireless financial services, projected to increase to 22.8 million in 2005.1 Alternative Internet access devices such as Smart phones and iDTV will increasingly be used by US households to surf the Web. Net-enabled mobile phones will see the biggest increase, thanks to faster and cheaper access speed. The uptake of these technologies will be considerably slower than in Europe, where PC penetration is much lower.2 With the introduction of high-speed GPRS technologies in 2002, net-enabled phones will increasingly be used to access the Internet. Thanks to improved technologies and the widespread use of location-based services, by 2005 there will be nearly 33 million users of net-enabled phones.3 By 2003 it is estimated that: Over 602 million people will be online around the world. Although North America has dominated usage to date, Europe and Asia are quickly catching up.4 Over 168 million people, or 61% of the American population, will be online. Of that number, 45.6 million will use the Internet for online banking and brokerage (25.2 and 20.4 million, respectively).5 Over 15 million people61% of the Canadian populationwith be online.6 Over 30 million people, or 50% of the UKs population, with be online. Of that number, 12.7 million will use the Internet for online banking and brokerage (10 and 2.7 million, respectively).7 In the UK, a significant portion of new business will be originated via the Internet. Notably, 40% of savings, 25% of new credit cards, and 24% of new mutual fund business will be originated on the Web.8
1 2 3 4 5 6 7 8
Tower Group Forrester Research 2000 Forrester Research 2000 IDC eMarketer, Industry Standard Datamonitor, IDC, Jupiter and JP Morgan Datamonitor, IDC, Jupiter and JP Morgan JP Morgan Estimates 2000
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In France, over 24.1 million people40% of the French populationwill be online. Of that number, 12 million will use the Internet for online banking and brokerage (9.5 and 2.5 million, respectively).9
3.5.3 Wealth Management

Wealth Management began as a customer play on the highly affluent and has emerged as a set of customer disciplines that address the total financial servicing wants and needs as they cut across enterprise boundaries. The needs of high net-worth individuals are fairly complex and require a certain product, services, and processing savvy that is difficult to achieve. Wealth Management is centered on customer wants and needs, but also masters the added complexity of channel enablementoften through a combination of self-service, broker/advisors, and affinity portals.
Aggregate the customer view ... across financial institutions
Provide advice ... based on a broad range of offerings
Provide customer access anywhere and anytime ... clicks & mortar

Figure 3-9 Wealth Management focuses on transitioning the institutions business from a sales-based to an advisor-based model.
Datamonitor, IDC, Jupiter and JP Morgan
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Industry dynamics
Trends in the financial services industry from the Wealth Management perspective include: Customer expectations are driving a change in business models from transaction enablement towards a trusted advisor model. High growth rates (30% CAGR 1999-2003) in online wealth management services have created significant opportunities for early entrants. By 2003, 25 million investors are expected to manage $1.9 trillion online, generating approximately $20 billion in industry revenues. Demographics indicate that by 2030, 20% of the US population and 25% of Europes will be over 65. There is a growing need for wealth management services and succession planning as the aging population prepares for retirement. The following attributes affect investor behavior in the wealth management industry: Information overload A demonstrated requirement for relationships and physical presence from their institutions An increasing focus on short-term gains (but day trading will decline) A mixture of active and passive investment strategies, with an emphasis on active management Higher sophistication, better education, and more self-reliance for investment decision-making, using a mixture of self-managed and advised accounts A shift from managed products (e.g. mutual funds) towards lower-cost instruments such as index funds or individual securities A shift from bank deposits CDs, GICs) towards equities and other fixed-income securities (e.g. Treasury bills and bonds) More responsible behavior toward retirement income The following attributes impact investment firm behavior in the wealth management industry: A drive toward larger asset bases The tendency to buy as opposed to building LOBs they do not have The realization that it is imperative to establish a strong brand identity on the Web to differentiate themselves and capture wallet share
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3.6 Summary
IBM's Financial Services Sector has created several e-business solutionsalso known as Big Playsto help our clients better implement business capabilities. These extend from Customer Loyalty (focused on a sales and service model) to Online Financial Services (focused on the e-enablement of the customer access and distribution channel) to Wealth Management (focused on an advice and guidance model). These e-business solutions are not meant to indicate right or wrong business models, nor are they intended to indicate a progression or maturity level in IBM's Sell & Support competencies (BI, CRM, Web Selling, Interactive Branding & Design, and Pervasive Computing). FSS e-business solutions are positioned to help our clients define and execute a roadmap to achieve a specific set of market themes or business capabilities. There are five key transition opportunities, described in Chapter 4, Transition opportunities on page 41, that relate to specific e-business solutions.
Financial Services Sector e-Business Solutions Wealth Management BI CRM e-banking Customer Loyalty e-insurance Web Selling Interactive Branding & Design Mobile Internet Pervasive Computing
IBM Sell & Support Competencies
Branch Renewal
Figure 3-10 IBMs Big Plays cut across defined cross-industry market capabilities.
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40
Chapter 4.
Transition opportunities
This chapter discusses transition opportunities as they relate to e-business Solutions/Big Plays and Market Themes.

Sales and Service

Advice and Guidance

Wealth Management
Figure 4-1 Transition opportunities are key building blocks in the clients journey from current state to desired end-state.
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4.1 Definition of transition opportunities

Chapter 3 identified the e-business Solutions/Big Plays that collectively capture our clients strategic objectives in the area of customer centricity. In this chapter, we begin to drill down into the many ways in which IBM can help them define and then realize these objectives. Only IBM offers the full complement of hardware, software, and services that clients need to transition from first thoughts to end-state implementation. Therein lies our key competitive advantage. The migration from current state to customer-centric end-state is a journey most of our clients have already begun in some fashion. We refer to this journey as a transition.customer centricity involves five such transitions:
1. Complete customer view 2. Consistent and personalized product and service delivery 3. Customer-facing processes aligned with customer and business wants and needs 4. e-enabled interaction at multiple customer touchpoints 5. Advice-based customer interaction
Whether pursued by an individual LOB or the enterprise as a whole, each transition represents significant changes in people, processes, and technology, posing considerable challenges and risks for our clients. Within these challenges, we see an opportunity for IBM to play a leading role. The transition opportunity has strategic, organizational, and technological implications which will be unique for each client. Most will prefer to migrate to new end-states over time, and the pace will vary by client. To reflect this relative pacing and inherent budgeting constraints, transitions must often be parsed into several smaller project Components. We can help in all phasesincluding articulation of the desired end-state, development of a time-based implementation roadmap, and integration of legacy systems. Each transition opportunity is comprised of a series of Solutions which, in turn, is made up of one or more Components. A Solution is a collection of hardware, software, and services that we can sell to a client. It might include e-business consulting, project management, software integration, and hardware installation. These are its individual Components. Since no two clients will need an identical mix of Solutions and Components to realize their desired end-states, our entry point can be anywhere between those two extremes.
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4.1.1 Complete customer view

Description
Regardless of industry, most businesses today remain organized around a product-centric business model. In such a model, each LOB enjoys near-autonomy and is largely judged on unit rather than enterprise-wide performance. With little incentive to collaborate, marketing activities are not well-coordinated across business lines, products are priced without consideration for the total customer relationship, and service quality across the enterprise is inconsistent. A primary impediment to improving these functions is the inability to aggregate all product, transaction, service, and demographic data surrounding each customer into a single repository. Often this data is housed in disparate product or call center systems, with little ability to quickly cross-reference between applications. Such application silos hinder the aggregation of all relevant customer information into a single, complete view. Absent this view, product offerings, marketing communications, and service interactions do not reflect the level of intimacy that customers demand. Creating a complete customer view goes beyond the difficult act of aggregating all relevant customer information in a common repository. Institutions must develop an understanding of both prospective and existing customers through analytical techniques optimized for marketing analysis. Customers can then be segmented into profile groups for targeted marketing efforts in support of the strategic LOB plan.
Key capabilities
IBM offers an end-to-end capability or series of Solutions to design and develop a complete customer view for its clients: Data repository design and development Data extraction, cleansing, house-holding, and propagation software Business process re-engineering Hardware installation, including client and Web server architectures Segmentation and modeling, including data mining and multi-dimensional profitability quantification Technical and analytical skill requirements, staff assessment, and gap analysis Governance systems for data quality, security, and usage
Chapter 4. Transition opportunities
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4.1.2 Consistent and personalized product and service delivery

Description
Customer demand for highly personalized products and services has been increasingly shaped by experiences outside the Financial Services Sector. Financial institutions find themselves pressured to provide a consistent and personalized quality of service right down to the micro-segment level. Achieving this state translates into increased profitability through gains in wallet share and customer lifetime duration. Understanding and projecting customer behavior within these micro-segmentsbuilt on a firm foundation of campaign management and analysisare the key distinguishing characteristics of this transition opportunity.
Key capabilities
Clients must have the ability to triage their customers by profitabilityi.e., to project which ones: Are optimally profitable today Can become more profitable through increased loyalty programs Can never be made profitable A businesss ability to understand market trends and recognize opportunities must be supported by an infrastructure of process, organization, and technology that enables quick response. IBM offers a series of Solutions collectively designed to help companies provide personalized product and service delivery: Micro segmentation-based customer behavior analysis Business intelligenceincluding segmentation, scoring, data mining, and multi-dimensional profitability quantification Customer profitability and risk analysis Product line reconfiguration based on personalized cost/price/featureappropriate products and services Campaign managementincluding design, execution, and performance measurement in support of generally-accepted closed-loop marketing concepts Data repository design and development Data extraction, cleansing, house-holding, and propagation software Business process re-engineering Hardware installationincluding client and Web server architectures
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Technical and analytical skill requirements, staff assessment, and gap analysis
4.1.3 Customer-facing processes aligned with customer and business wants and needs
Description
Customers expect their financial institutions to understand their basic wants and needs and to manufacture products and deliver services in support of them. In short, they are looking for the right product offered at the optimal time and delivered at an affordable price through the preferred channel. For financial institutions, this presents a significant dilemma. Historically, most businesses have been organized around a product-centric business model. In this model, each LOB enjoys near-autonomy and is judged on unit rather than enterprise-wide performance. Since there is little incentive to collaborate across lines of business, customers of one LOB (e.g., Retail Banking) might not be recognized and treated as a customer by another (e.g., Trust Services). This disparate approach does not engender the level of intimacy that customers demand, as evidenced by their willingness to transfer their business to competitors. The most successful institutions this decade will be those that organize around customer segments rather than products. In this new customer-centric business model, institutions will deliver a quality of service commensurate with the level of value generated by each customer. This requires that each customer-facing process be re-engineered in support of both business and customer needs. Two examples of this new customer-centric approach are that: 1. Marketing messages should be crafted to appeal to the demands of a unique customer or segment, rather than continuing to push products irrespective of need. 2. Conflicts in message, market positioning, or product development should be resolved with consideration for the complete customer relationship. Matching a companys business model to the customer to provide the appropriate product offerings and service treatments requires knowledge of customer profitability relative to enterprise value. These elements are essential to the business processes required to become a customer-centric organization.
Key capabilities
IBM offers a series of Solutions collectively designed to help companies migrate to a customer-centric business model:
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Marketplace analysis and assessment of strengths, weaknesses, and available opportunities in comparison to those offered by key competitors Business intelligence, including segmentation, scoring, data mining, and multi-dimensional profitability quantification Customer Loyalty strategy and implementation roadmap providing a vision, overall business case, and prioritized business plan for achieving a customer-centric business model Product line reconfiguration, based on marketplace analysis of competitive advantages Campaign managementincluding design, execution, and performance measurement in support of generally-accepted closed-loop marketing concepts e-business strategy, Web site design and development, digital branding, and linkage to the customers data repository Governance systems for contact, customer value, e-business, data quality, security and usage, and change management Data repository design and development Data extraction, cleansing, house-holding, and propagation software Business process re-engineering Hardware installation, including client and Web server architectures Technical and analytical skill requirements, staff assessment, and gap analysis
4.1.4 e-enabled interaction at multiple customer touchpoints

Description
Access and communications are fundamental to the business climate surrounding IBMs financial institution clients today. Consumers expect access to their information and supplier community by whatever means most convenient to them. Convenience is impacted by such factors as type of interaction, consumer location, and time of day. Consumers expect that their financial services suppliers know everything about their relationships, including any prior contacts (see 4.1.1, Complete customer view on page 43). From the consumers standpoint, touchpoints exist in many channels. Individual consumers might utilize a specific touchpoint exclusive of all others. However, almost all consumers will use a mixture of touchpoints, depending on the type of interactione.g., a recurring transaction, a life event, or physical characteristics such as time of day.
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Touchpoints include: Employee desktops reached through a walk-up contact or telephone connection Telephony direct to client branches, contact center personnel, or voice response units Internet self-service, direct-to-client information and services, such as: Kiosk or ATM Wireless e-mail Partner interactions (B2B) using walk-up, telephone, or Internet self-service, such as: Agents for insurance products and services Brokers for financial and investment products and services Branch officers for banking products and services Optimal touchpoint interaction is a significant opportunity for Online Financial Services. The challenge is to identify, qualify, and engage the right recipe for each unique client opportunity.
Key capabilities
IBM offers a series of Solutions collectively designed to help clients Web-enable interaction at customer touchpoints: Consumer access to any product or service through any channel a client firm supports Marketing capability to determine what segments to serve, what products and services those selected segments want or need, and what touchpoint mechanisms they want or need The ability to offer selected products and services using Internet, intranet, and extranet technology The ability to offer selected products and services through voice/telephony technology The ability to offer selected products and services through kiosk or walk-up (in-person) desktops The ability to offer all products and services across any channel to support any selected variation of customer, product, and access-channel combination
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4.1.5 Advice-based customer interaction

Description
Historically, financial institutions have focused on the delivery of transaction-based services to a broad spectrum of customers. These services have become increasingly commoditized by competition and technology, thus reducing both the institutions market share and its transaction-processing profitability. Customers with a commoditized provider relationship tend to move readily to other institutions. Advice-based customer interaction reduces this threat by: Transitioning the institutions operational model from that of a transaction processor to that of a provider of quality, high-value, customized service providing trusted advice to the customer on an ongoing basis Converting the pricing model from transaction-based to value-based Cementing the relationship of the customer to the financial institution The implementation of advice-based customer interaction requires that the institution enable unique key business process, organizational role, and technology capabilities in support of the new interaction model.
Key capabilities
IBM offers a series of Solutions aimed at designing and developing wealth management capabilities for its customers: Advisory service planning and pricing Channel management targeted at advisory services Operational process targeted at providing customers advisory services on an ongoing basis Intra- and inter-enterprise knowledge management for capturing, cataloging, and delivering knowledge to advisors, customer service representatives, and other intermediaries Segmentation and modeling aimed at the institutions highly-valued customers Technical and analytical skill requirements, staff assessment, and gap analysis Governance systems for compliance and regulatory processes
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4.2 Transition opportunity frameworks

4.2.1 Customer Loyalty
Customer Loyalty
Transition Opportunity Framework
Know the customer
Market Themes/ Business Capabilities
Offer the right product at the right time Offer the right service for the right customer value Organize around customer centric processes
Customer-Facing Processes Aligned with Customer and Business Wants and Needs
Transition Opportunities
Complete Customer View
Consistent and Personalized Product and Service Delivery
Figure 4-2 The Customer Loyalty Transition Opportunity Framework focuses on transitioning the institution from a product-centric to a customer-centric enterprise.
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4.2.2 Online Financial Services
Online Financial Services

Offer the right product at the right time
Provide cutomers access anywhere and any time... clicks and bricks Offer the right service for the right customer value Organize around customer-centric processes
e-Enabled Interaction at Multiple Customer Touch Points
Figure 4-3 The Online Financial Services Transition Opportunity Framework focuses on transitioning the institution from selling and servicing through discrete time-bound and non-integrated traditional channels to selling and servicing in an integrated, always available online fashion.
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4.2.3 Wealth Management
Wealth Management
Provide customers access anywhere and any time... clicks and bricks
Aggregate the customer view... across the total portfolio Provide advice...based upon a range of offerings Organize around customer-centric processes
Advice-Based Customer Interaction
Figure 4-4 The Wealth Management Transition Opportunity Framework focuses on transitioning the institution from a transition-bound, single-institution source of products and services to an advisor-based, multi-institution, integrated portfolio of products and services.
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Chapter 5.
Solution Offerings
This chapter introduces the Solutions that support each transition opportunity. Several engagements can be mapped to the same opportunity. The chapter provides the context and background required to shape tactical responses to client issues into Solutions through repeatable engagement frameworks.
. Strategic Intent

Advice and Guidance
Advicebased customer interaction Know the customer Aggregate the customer viewacross the total portfolio Provide advicebased on a broad range of offerings Offer the right service for the customer value
Sales and Service
Offer the right product at the right time Provide customer access anywhere and anytimeclicks & mortar
e-Business Solutions/ Big Plays Transition Opportunities Solution Offerings

Wealth Management
Figure 5-1 Many Solutions apply to more than one transition opportunity and Big Play.
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Overview of Solution Offerings

Each Solution Offering is created from the working experience of several engagements, with some amount of forethought for work product organization going forward. A Solution Offering is all of the following: A comprehensive response to a clients business need An integrated collection of things IBM can deliver to a client: Strategic consulting Project management Software, application, and package integration Hardware procurement and installation Outsourcing/hosting A repeatable, highly scalable Offering, which is: Nationally quality-assured Compliant with GS Methods Each Solution Offering is comprised of one or more Solution Components. Chapter 6 describes over 60 such Components. These Components can be combined in almost any fashion to create customized Offerings for IBM clients. There are more Solution Offerings than Componentsmuch in the same way that there are more mutual funds than underlying stocks. Table 5-1 on page 55 relates these Solutions to their Business Architectures and Transition Opportunities.
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Table 5-1 Solution Offering-applicable Business Architectures and Transition Opportunities Transition Opportunity Customer-facing processes aligned with customer and business wants & needs
Consistent & personalized product & service delivery
Business Architecture
Strategy & Planning
Solution
Campaign Management Channel Management Contact Management Global Infrastructure Strategy Interactive Branding Sell & Support Strategy and Roadmap
X X X X X X X X X X
Channel Enablement Customer Value-add Process Personalization
Campaign Management Channel Management Contact Management Data Mart Design and Implementation Dynamic Personalization Package Integration Sales Force Automation Web Enablement
X X X
X X X
X X X X
Chapter 5. Solution Offerings
Advice-based customer interaction X
e-enabled interaction at multiple customer touchpoints
55
Transition Opportunity Customer-facing processes aligned with customer and business wants & needs
Enterprise Client File
Solution
Campaign Management Contact Management Data Mart Design and Implementation Dynamic Personalization Package Integration Sales Force Automation Web Enablement
X X X X X X X X X X X X
Core Business Processing
Package Integration
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Advice-based customer interaction
Data Warehouse Data Marts Data Analysis & Reporting
Solution
Campaign Management Contact Management Data Mart Design and Implementation Dynamic Personalization Package Integration Product/Portfolio Planning and Pricing Risk Management Sales Force Automation Web Enablement
X X X X X X X X X X X X X X X X
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Data Transformation & Integration Enterprise Application Integration
Solution
Campaign Management Contact Management Conversions and Data Rationalization Data Mart Design and Implementation Global Infrastructure Strategy Package Integration Sales Force Automation Web Enablement
X X X X X X X X X X X
This redbook introduces the 14 Solution Offerings believed to most highly resonate with IBM clients in the current competitive and economic environment: 1. Campaign Management 2. Channel Management 3. Contact Management 4. Conversions and Data Rationalization 5. Data Mart Design and Implementation 6. Dynamic Personalization
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7. Global Infrastructure Strategy 8. Interactive Branding 9. Package Integration 10.Product/Portfolio Planning and Pricing 11.Risk Management 12.Sales Force Automation (SFA) 13.Sell & Support Strategy and Roadmap 14.Web-Enablement
Each is discussed in detail on the following pages. The objective of this chapter is to provide context and background to shape tactical responses to client issues. For each Offering, we have provided the following information:
Overviewdescribes the Offering Examplepostulates a hypothetical client example detailing the broadest possible application of the Offering Relevant componentslists the primary Solution Components most often associated with this Offering.
5.1 Campaign Management

Key Dimensions
Infrastructure
Complete client view Consistent and personalized product and service delivery Customer facing processes aligned with customer and business wants and needs Web-enabled interaction at customer touchpoints Advice based customer interaction Technology
Execution
Software
Planning
Services
Strategy
Process
People
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Overview
This embodies the strategies, methodologies, and processes by which companies proactively communicate with their current or prospective customers. The objectives of such campaigns can include new customer acquisition, product cross-sell, customer retention, customer service, or even company positioning. A Campaign Management Solution generally involves the development of repeatable, end-to-end business processes targeted towards actionable customer segments. At the center of such processes is a closed-loop data flow of customer information which serves to improve financial results as campaigns are repeated over time. These very methodical campaigns target explicit audiences with explicit messages. They can have durations of a few days to a few years, with many marketing activities (i.e., programs) occurring in each. Generally, campaigns are initially executed in pilot (aka test) form. If results meet financial expectations, they are then rolled out enterprise-wide. Underlying any good campaign management system is software that analyzes and manipulates data in a robust enterprise warehouse or marketing data mart. When combined with well-conceived business processes, these tools enable sophisticated management of marketing activities and customer relationships.
Example
A client wishes to increase the effectiveness of its marketing activities. Like most such engagements, this one begins with a documented vision of the clients desired end-state, followed by an assessment of current marketing capabilities. Identified gaps in skill sets, processes, and technology then become the foundation for a customized campaign management roadmap. Aggregating relevant customer information into a single data repository is the first priority. Where possible, such data is extracted, cleansed, householded, and propagated in this repository on a recurring, scheduled basis. Analytical software is then used to define/refine customer segments and predict the future behavior of each individual customer. These predictions, in the form of numeric scores, are written to the repository to become yet other dimensions on which campaigns can be delineated. Specialized campaign management software then produces lists of qualified customers for each marketing activity, based upon stated selection criteria. Duplicate list entries are removed based on predetermined survivorship rules, and a unique campaign code is written to the repository for each surviving record. Surviving customers then receive the marketing messages in accordance with the strategic plan. These messagesdelivered via one or more touchpoints such as call center, e-mail, or direct mailcommunicate a
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call-to-action for the desired customer behavior (e.g., product purchase, renewal, or upgrade). Immediately after these messages are communicated, customer responses are captured and written to the repository. Analytical software is again used to profile the average responder and determine the rate at which each segment favorably responded to the marketing message. The economic cost of generating these desired behaviors is then calculated and compared to that forecasted in the plan. Results are then summarized and published via e-mail or the Web. All things learnedfrom process enhancements to responsiveness by segment to profitability by individual customerbecome inputs into the execution of each campaign in the future, thus closing the information loop.
Relevant components
Banking Data Warehouse (BDW) Business Case Development Client Information Integration System (CIIS) Customer File Design and Implementation Customer Management Assessment (CMA/CMAT) Customer Prospect Optimizer (CPO) Enterprise Customer Analytics (ECA) Insurance Application Architecture (IAA) Insurance Information Warehouse (IIW) Intelligent Miner Kana Customization MicroStrategy Program Management SAS Security and Privacy Design and Implementation Segmentation and Scoring Siebel Customization Siebel IBT Skills Management Third Party Data Integration Vality
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Web Analytics Xchange
5.2 Channel Management

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
With the advent of the Internet, another channel has been added to the marketing mix. Consumers now have an additional choice when deciding how to access, communicate, and transact with their existing and potential suppliers. To meet this challenge, financial services firms must manage their channel strategy. That is, they must identify, define, implement, and measure each channel for selected market segments. A firms channel management effectiveness has a significant impact upon its financial performance, since the costs to develop, deploy, execute, and support each channel are very different. A Booz-Allen, Hamilton study of banking customer interaction cost by channel found that the branch cost per interaction was $1.08, the telephone $0.54, the PC online $0.26, and the Internet, $0.13. A Datamonitor study found similar results in the insurance industry.
Example
A client is losing market share to a competitor that has invested heavily in the Internet channel. IBM has been asked to help craft a channel strategy and lead its implementation. The engagement begins with proprietary research into which channels the targeted customer segments desire to use, and for which types of interaction. At issue is whether or not the desired functionality can be delivered via the desired channels in an economically viable manner.
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Process
People
Once known, the desired channel functionality is compared to current channel capabilities. Infrastructure gaps are identified, and an implementation roadmap developed. Next, relevant product and servicing systems are integrated to ensure a common customer experience, regardless of channel. These systems are then enabled to provide access via the wired and wireless Internet. Using cost-based accounting methods, the financial impact of providing each transaction type via each channel is calculated. Working with the client, IBM then creates a detailed pricing strategy, balancing the value of each customer segment against the costs of providing these services. Targeted marketing campaigns then communicate the new channel services to targeted segments and attempt to steer behavior in a way that delivers value to both customer and financial institution.
Relevant components
Business Case Development Business Continuity and Recovery ChannelPoint e-Start Financial Fusion Consumer e-Finance Suite (CeFS 4.0) Help Desk Integrated Voice and Data Networks Pervasive Computing MeB Program Management S1 Web SellingGlobalization Planning Web SellingReturn on Web Investment (ROWI)
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5.3 Contact Management

Key Dimensions
Infrastructure
Complete client view Consistent and personalized product and service delivery Customer facing processes aligned with customer and business wants and needs Web-enabled interaction at customer touchpoints Advice based customer interaction
Technology
Execution
Software
Planning
Services
Strategy
Overview
If customer contact is an important differentiator in todays business environment, then companies must understand how their customer interactions measure up, be able to identify where they need to improve, and measure their results. This engagement begins with an assessment of the organizations current processes, identifies areas to improve, and implements appropriate Solutions to improve and measure those areas. Customer contacts occur throughout an organization across multiple channels. The engagement can be focused on a single channel (e.g., call center or Web site) or could include multiple contact areas.
Example
A client is concerned that it does not fully comprehend when and why customers choose one channel or another. Nor does it really know the quality of service they deliver. This engagement begins with a contact assessment to provide an understanding of the reasons and level of service provided for each contact. Processes are reviewed to reach an understanding of how to attain higher levels of service and to identify the areas upon which to focus. These findings determine whether a contact management package will be installed to capture each contact and allow future measurement. Process improvements are identified and a plan to implement changes is developed. Integration between the self-service Web site and the call center is required to raise the level of service provided. IBM assists the client with contact management package selection and completes the infrastructure design to integrate the Web site and call center. Upon completion of this application integration, Web site, and infrastructure design, IBM consultants and architects work with the client staff to implement the Solution and begin measuring the results.
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Process
People
Relevant components
Banking Data Warehouse (BDW) Business Case Development Client Information Integration System (CIIS) Contact Center Assessment (CCA) Customer File Design and Implementation Customer Prospect Optimizer (CPO) Insurance Application Architecture (IAA) Integrated Voice and Data Networks Integration Hub Intelligent Miner Kana Customization MQSeries/MQSFSE netCallCentre Onyx ASP Operations and Process Design for Interactive Transactions Program Management Security and Privacy Design and Implementation Segmentation and Scoring Siebel ASP Siebel Customization Siebel IBT Vality Web Analytics WebSphere WebSphere Business Components Composer Xchange
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5.4 Conversions and Data Rationalization

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
When a financial institution has merged or is installing a new application, data conversion can lead to additional business. This Offering allows a customer to quickly merge application systems or replace an old system with a new one in a very short period of time. This results in large savings for the client by reducing duplicated effort and project risk. Conversions and Data Rationalization is a fixed-price Offering completed in 16 to 20 weeks. It is fully supported by a dedicated team of professionals and a proven conversion methodology. A bid can be submitted to a client in five days, and work started two weeks after the SOW has been signed.
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Process
People
AUTOMATED CONVERSION METHODOLOGY

Institutions $ 50MM and Up
Automated Audit Trail

Data Integrity & Product Mapping Report
Source systems
Product Mapping With 'Facts'
Data Mapping & Program 'Specs'
Extract Program And Testing
Load Files
Strategic platforms
Full Balancing Of Each Application

Figure 5-2 ACM high-level view
Example
A client installs an application which replaces its existing call center operations software package. It wishes to assure that existing information on customer interactions is mapped appropriately to its new application and history of contact is maintained. IBM uses a facts-based process to convert system data files.
Data analysis of the source files

The process begins with a gathering of all the source system data files for conversion. This data is analyzed and all products on the file then documented. This is followed by a process to determine the data, product, and functional gaps that exist when compared to the target system. By identifying these gaps, the project plan and customer communications can be customized accordingly. Further tasks to be performed are defined, and a milestone schedule is provided and agreed upon.
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Data mapping of the source to the target

Documentation of the movement and translation of the data from the fields and files in the source systems into those in the target system is presented in a specifications document. After client sign-off on the conversion specifications, conversion code is created.
Conversion programming and unit testing

The conversion code is created. The code is unit tested, and the conversion files are created. System testing: The target files are then created and validated prior to release to the client. The client loads to the test system and tests the data in the test system.
Integration and user acceptance testing (UAT)These target files are then
loaded so that the client can perform user acceptance testing.
Dress rehearsal/final conversionA dress rehearsal and real conversion are

conducted.
Post conversion and evaluationUpon completion of the final conversion,

IBM works with the client staff to assess the overall project against stated goals.
Relevant components
Integration Hub MQSeries/MQSFSE Operations and Process Design for Interactive Transactions Program Management WebSphere WebSphere Business Components Composer
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5.5 Data Mart Design and Implementation

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
An information data mart is a process, not a product. In its basic form, the data mart is a subset of the enterprise data warehouse, though the development sequence of each depends upon the needs of the individual client. It can be designed to support any function, such as marketing or customer service. As a specific, distributed set of operational data, a data mart is a technique to properly assemble, manage, and store data from relevant source systems, allowing for ad hoc discovery and drill-down analysis to answer previously unknown or unanswerable business questions. It is a single, integrated repository of data which becomes the infrastructure foundation on which analytical and campaign management software applications run. The process of turning raw data into information will allow the business user to make more informed strategic and tactical decisions, better understand customer behavior, and capitalize on market opportunities.
Example
A client has decided to focus its marketing activities (and budget) on specific customer segments. To do so requires the ability to aggregate, analyze, and act upon relevant customer information. The assignment begins with an assessment of data quality and accessibility by source system. Each data element is reviewed for relevance to the marketing objectives, and a decision made as to whether to propagate it in the data mart. A propagation plan is then documented, featuring the rules and schedules for propagation for each element. Requisite data is then extracted from source systems, cleansed, householded, and propagated into the data mart. An integration hub is employed to enable programmed repeatability of this onerous task.
Process
People
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Security and privacy policies are documented, and necessary business users granted access. Analytical software applications are installed, users are trained, and analysis commences.
Relevant components
Banking Data Warehouse (BDW) Business Case Development Common Transactional Protocols and Formats Content Hosting Customer File Design and Implementation ETIEXTRACT EvokeCRM Integration and Product Offerings EZ Mart Financial Services Data Model (FSDM) Financial Services Information Framework (IFW) Insurance Application Architecture (IAA) Insurance Information Warehouse (IIW) Integration Hub Intelligent Miner MicroStrategy MQSeries/MQSFSE Program Management SAS Security and Privacy Design and Implementation Segmentation and Scoring Third Party Data Integration Vality WebSphere WebSphere Business Components Composer
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5.6 Dynamic Personalization

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Once a novelty, the Web has become a dynamic source of information and time saver for businesses and consumers alike. To ensure that these interactions are as relevant for each individual as possible, businesses personalize Web sites based upon customer preferences. These can range from GUI personalization at sites such as Yahoo, to content personalization at sites such as Morningstar. The Dynamic Personalization Solution Offering seeks to tailor content to client wants, needs, and interests in order to effect a more efficient and worthwhile experience across a broad array of touchpointsincluding the Web, mobile wireless, print, and CDs. Personalized content can either be pulled by the customer or pushed by the publisher. Dynamic Personalization is applicable to multiple media types and communication channels, and consists of: Content creation, editing, and electronic management Keyword tagging for cross-reference to individual customer profiles Repurposingi.e., the extraction and recompilation of existing content for publication to a wide variety of audiences
Example
A financial services company wants to increase its level of intimacy with customers in the high-value segment. It knows that these customers constantly receive educational literature, invitations to private seminars, and special offers from both local and national competitors. Fearful that some of these best customers might be inclined to move their business to competing providers, the company retains IBM to extend the scope of existing CRM initiatives to include personalization for selected customers via the e-mail and Internet channels.
Process
People
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IBM first assesses the breadth, depth, and quality of data available for each customer. Where necessary, recommendations are made to supplement this data, either by extracting additional data elements from product and servicing systems or by incorporating demographic and other data from third-party compilers. Once incorporated, detailed demographic and psychographic profiles are generated for each customer. Using analytical software, statistical models are developed that predict future behaviors. Such behaviors are then codified and written to the marketing data mart. Outbound e-mail generation and submission software then builds customized e-mail messages, matching the behavior prediction codes with pre-written text copy alternatives. For example, a customer likely to refinance a mortgage would receive a different salutation, body copy (with relevant Web links), and time-limited offer than a potential customer for an annuity. IBM might also modify the clients Web site by requiring user registration and then planting a cookie on the customers PC. Using the cookie, specialized Web analysis software would record all future visits to the site, including date and time, forwarding URL (i.e., from what site if any the customer arrived), the individual pages viewed during the session, and any banner or other ads clicked on. This data would then be added to the existing customer profile and customer interests then projected. At each future visit, Web personalization software would match those interests with existing, electronically-stored content, and then serve the content and hyperlinks believed to be of highest value to the visitor. The object of these activities is to proactively supply the information needed by each client, thereby diminishing the risk of customer defection.
Relevant components
Banking Data Warehouse (BDW) Business Case Development Client Information Integration System (CIIS) Customer File Design and Implementation Enterprise Customer Analytics (ECA) Insurance Application Architecture (IAA) Intelligent Miner Kana Customization MicroStrategy
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Program Management Security and Privacy Design and Implementation Segmentation and Scoring Siebel Customization Siebel IBT Web Analytics
5.7 Global Infrastructure Strategy

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a consulting engagement intended to help companies identify the issues associated with a global infrastructure and to develop an approach to deal with them. The client might be planning to extend its existing single-nation infrastructure beyond its current boundaries, or be planning to integrate its existing multi-national infrastructures. IBM can bring extensive experience, knowledge, and research to help it achieve a successful transition. This engagement will document the business plans and objectives, assess the current infrastructures, describe the technical environment and relevant issues for each nation, and develop a roadmap to outline a general approach for implementation. The description of technical environments and associated relevant issues will help educate the client in addressing a broad range of issuesincluding security and privacy, network infrastructure, language, currency, legal systems, business continuity, and data exchange. This Solution provides a context for the business and IT organizations to define and implement projects. The Global Infrastructure Strategy Solution should contain the following:
Process
People
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An assessment of the current infrastructures, the end-states and transitional states of the technical infrastructures, and those high-level business processes likely to be impacted An identification of key business objectives, drivers, and time frames A discussion of alternative approaches The identification of key issues and the proposed resolutions, including cultural norms and language differences An assessment of threats and risks to achieving the desired global infrastructure A phased approach to technology implementation that bundles the business and technical items in timed-release packages
Example
A large multi-national financial services company with geographically dispersed subsidiaries and a wide ranging portfolio asked IBM to help review its existing IT infrastructure and develop a plan to improve operational efficiency. After discussing and developing an understanding of goals and objectives, IBM conducted an assessment of the existing infrastructures and developed several alternative Solutions for review with the client. Alternatives included the standardization of technologies and platforms for call centers and Internet access to support potential future initiatives related to global Web-selling, customer-centered strategy, and the consolidation of some of the contact centers. Each Solution included an assessment of threats and risks and identified the gaps within the current infrastructure. Specific IT and business issues associated with each Solution were documented and discussed, and a business case developed to support the selected alternative. This business case was based on a phased implementation to minimize project risks and align with the business objective timetables.
Relevant components
Banking Data Warehouse (BDW) Business Case Development Business Continuity and Recovery Content Hosting Customer File Design and Implementation e-business Management System e-Start ETIEXTRACT
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EvokeCRM Integration and Product Offerings EZ Mart Financial Fusion Consumer e-Finance Suite (CeFS 4.0) Financial Services Data Model (FSDM) Financial Services Information Framework (IFW) Hosting/Outsourcing Insurance Information Warehouse (IIW) Integrated Voice and Data Networks Integration Hub MQSeries/MQSFSE Operations and Process Design for Interactive Transactions Program Management Web SellingGlobalization Planning WebSphere WebSphere Business Components Composer
5.8 Interactive Branding

Key Dimensions
Infrastructure
Complete client view Technology Consistent and personalized product and service delivery Customer facing processes aligned with customer and business wants and needs Web-enabled interaction at customer touchpoints Advice based customer interaction
Execution
Software
Planning
Services
Strategy
Process
People
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Overview
Branding is one of the most effective ways a company can differentiate and build customer loyalty in todays overcrowded marketplace. A well-developed brand can communicate its superiority through the images, messages, emotions, information, products, and opinions it represents. A challenge for most clients is managing, protecting, and consistently leveraging its brand. As brands become more global and encompass more and more elementssuch as new products, mergers, sub-brands, and additional brandsthese challenges increase. The digital world has created a new dimension for brands. Unlike more traditional mediums, the Internet provides a unique experience to people who use itinteraction. Brands must engage their users on a different, more dynamic level. Currently, most financial services Web sites have little differentiation. Absent the logo, its difficult to attribute a site to any specific institution. Helping address this issue is an excellent opportunity for IBM. Interactive branding is the process by which an institutions vision, culture, and business is translated into a powerful online presence that embodies and enhances the traditional brand for the interactive realm. It includes where the brand is today and where is wants to go in the future. A compelling, well-positioned, and communicated e-brand will build customer loyalty, preference among prospects, and a sense of common purpose within an organization. In the digital space, the brand moves from a focus of customer awareness to one of total customer experience. A compelling and commanding e-brand must be customer-driven, competitively differentiating, and include a common and consistent branding experience across navigation, design, customer experience, and overall look and feel.
Example
The client has recently developed a new corporate branding strategy and associated advertising campaign for its newly merged corporation. This strategy does not incorporate the uniqueness of the interactive environment. IBM has helped the client recognize that there is no differentiation in the branding of its site relative to its key competitorstake the logos away and it is difficult to tell whose site it is. As a result, IBM has been asked to help build an interactive branding strategy and visualization. The engagement begins by understanding the current branding strategy in order to facilitate translation of the current brand into the digital space. Next, IBM reviews existing research to incorporate current thinking into the strategy, then assesses and analyzes competitive brands to ensure a differentiated approach.
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Using home interviews, focus groups, and/or quantitative research, a detailed understanding of the customer is developedincluding how customers perceive this institution, its peer institutions, and the digital space. IBM then develops an understanding of the key customer differentiators and conducts workshops with key stakeholders to: Share client and competitive research findings Validate brand attributes Develop an understanding of the translation from offline to online Ensure client buy-in The e-branding strategy is then created and delivered to the client, including:
Positioning concept (customer view) and statement (internal view)the

message the brand communicates about itself to its customers
Attributesthe customer brand characteristics that embody the essence

of the brand
Brand architecturethe high-level framework for understanding the role of

the brand and the linkage of co-brands or alliance brands to the corporate brand
Online/offline modelthe linkage between the traditional and the digital

brand, as well as the uniqueness of the digital brand identity
Research analysisthe competitive and customer research conclusions to ensure the results are customer-driven e-branding briefa creative process guide that helps bridge the gap between strategy and execution Thin layer visualizationa depiction of the digital strategy Recommended linkagesto other areas of the institution Tools and techniquesthat adopt the strategy for execution e-brand management systemsto ensure operationalization of the strategy
across initiatives and business processes
Relevant components
Branding Solutions Knowledge Management Market Analysis and Strategy Market Structure Analysis Target Audience and Market Segmentation
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Customer Satisfaction, Loyalty, and Retention New Product and Services Innovation Brand Valuation Brand Building Architecture Predictive Modeling Financial and Econometric Modeling
5.9 Package Integration

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Many Solutions require the implementation of software developed by IBM or independent software vendors (ISVs)1 to enable specific business functions. These packages must be integrated within the existing business architecture and environment of the financial services firm. The process by which these products are customized and integrated into the clients business, application, data, and technical architectures is known as Package Integration. There are two distinct pieces of Package Integration, each starting with business requirements and macro-design, customization, and integration. Customization involves modifying the ISV product to fit the clients specific business processing needs, while integration entails fitting the ISV product into the application, data, and technical architecture in a seamless way.
also known as Solution Developers
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Process
People
Example
A client determines that a contact management package is necessary in order to facilitate distribution of leads for marketing campaigns, and for tracking the interactions of sales representatives with prospective customers based on those marketing campaigns. The client then determines that a leading contact management system could with some customization enable the required business functions. IBM consultants work with the clients business and IT representatives to: Assess and document business needs Define package evaluation criteria Participate in package evaluation Assess modification needs Develop modifications Make unit and user acceptance test modifications Integration-test the modified package Assist in training and package deployment
Relevant components
Client Information Integration System (CIIS) Contact Center Assessment (CCA) Customer File Design and Implementation ETIEXTRACT EvokeCRM Integration and Product Offerings Integrated Voice and Data Networks Integration Hub Kana Customization MQSeries/MQSFSE netCallCentre Operations and Process Design for Interactive Transactions Program Management Siebel Customization Siebel IBT Web Analytics WebSphere
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WebSphere Business Components Composer
5.10 Product/Portfolio Planning and Pricing

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Financial Services firms must develop a portfolio of products and services which provide a compelling value to their end-customers in order to be competitive in today's business environment. This requirement is found in nearly all financial sector firms, ranging in focus from the development of the features and functions of an individual product from a single manufacturer to the development and pricing of a complete portfolio of products and services to meet the needs of the firms highly-valued customers. Product/Portfolio Planning and Pricing is a consulting Solution Offering aimed at product development, servicing, and marketing professionals in financial services firms. It involves development of a menu of the products and services required by the institution and its marketing strategists to place those products with its targeted prospects and customers. Customer-segment needs drive product and portfolio development. Product and portfolio pricing is based on market and competitor positioning and customer feedback.
Example
A client has asked for assistance in analyzing its customer base so that it can understand which customers are most highly valued, develop a portfolio of products and services which is most appropriate for those customers, and provide those products and services consistently wherever and whenever a customer interacts with the firm. The engagement begins with the identification of customer segments and the products and services needed by customers in those segments.
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Process
People
Although the engagement is initially limited to products manufactured by its firm, the client recognizes that it must reach out to other product manufacturers to provide an overall portfolio which appeals to the targeted customer group. An assessment of the customers current touchpoints and architecture required to support changes to these in order to support new needs is also required. The client staff works with IBM consultants to develop these business requirements and a roadmap. Solutions to infrastructure needs are then developed. IBM then assists the clients staff with the development, testing, and deployment of the infrastructure required to meet the needs of its highly-valued customers.
Relevant components
Customer Loyalty Management System e-business Management System Entity Profiling Management System (EPMS) Knowledge Management Market Analysis and Strategy New Product and Services Innovation MicroStrategy Program Management SAS Segmentation and Scoring
5.11 Risk Management

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Process
People
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Overview
Risk Management is a consulting Solution aimed at CEO, CIO, COO, finance, actuarial, risk management, and product development professionals within the financial industry. This Solution has two scenarios under which it might apply, depending on the transition opportunity. Corporate risk management is appropriate for all transition opportunities and involves educating institutional clients as to the risks surrounding business activities in which they are engaged, developing an infrastructure to address those risks, and implementing an infrastructure to address the business needs and minimize the risks within the relevant channels. As institutional clients develop business capabilities especially e-business capabilitiesthe level and type of risk to which they are subject is changing. They need to understand this and address it from a risk management and product point of view. Key Components of this Solution include assessment and use of risk management tools as well as access to data. A second Risk Management Solution is specific to advisory-based Wealth Management transition opportunities. This broad Solution can include the ability to calculate various risks and then apply those calculations to customer product portfolios and behaviors. This Solution can be extended to pervasive computing ploys designed to initiate customer alerts and trigger responses.
Example
A client has elected to provide its customers with access to retirement plan statements via the Internet. Information on these accounts is found in an existing administrative system. Access to this system is currently limited to plan administrators who are associated with plan sponsors. The client needs to understand the security and risk issues associated with providing access to data from its existing administrative system to a broader audience. The engagement begins with the identification of system users and different access rules required to provide privacy and to limit corporate risk attendant on data availability. Privacy concerns are identified and infrastructure needs developed. IBM then assists the client staff with the development, testing, and deployment of the infrastructure to meet the needs of its highly-valued customers.
Relevant components
Contact Center Assessment (CCA) Customer File Design and Implementation Deep Green
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Integration Hub MicroStrategy MQSeries/MQSFSE netCallCentre Operations and Process Design for Interactive Transactions Program Management SAS Security and Privacy Design and Implementation Underwriting Profitability Analysis (UPA) WebSphere WebSphere Business Components Composer
5.12 Sales Force Automation (SFA)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a collection of integrated applications that provide sales representatives with the ability to do sales forecasting, proposals, presentations, scheduling, sales analysis, and e-mail. SFA is most effective when the sales processes of a business are closely aligned with the application of information technology. The most effective systems are those that help sales representative in the actual selling process, thereby enhancing their effectiveness. SFA includes lead/account management, contact management, quote management, forecasting, and sales administration. Implementation of an SFA Solution involves key infrastructure requirements, including mobile synchronization and integrated product configuration. The benefits of using SFA include:
Process
People
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Increased sales productivity Lower sales cost as a percentage of gross profit margin Improved sales cycle management Improved management and closure of trade show leads Improved management and closure of marketing effort Increased teamwork and team selling Higher efficiency Higher profitability Reduction in order process errors More time for representatives to sell
Example
In an attempt to increase efficiency and effectiveness, a client has decided to pursue Sales Force Automation. After a review of the current processes and automation level, IBM recommends a Solution that includes a package providing several sales and tracking tools. Working with IBM, the client selects a package and designs the required infrastructure enhancements. Sales force training on the new tools and technology is integrated into the implementation plan. The Solution is initially focused on automation of existing processes, but considers future integration with other sales processes such as Campaign Management which could require several additional componentse.g., data warehouse, data marts, target audience, and market segmentation. IBM then assists the client staff with the development, testing, and deployment of the new SFA package and its integration with previously-existing applications.
Relevant components
Business Case Development Client Information Integration System (CIIS) Customer File Design and Implementation Hosting/Outsourcing Integrated Voice and Data Networks Integration Hub MicroStrategy
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MQSeries/MQSFSE netCallCentre Onyx ASP Pervasive Computing MeB Program Management SAS Siebel ASP Siebel Customization Siebel IBT Vality WebSphere WebSphere Business Components Composer
5.13 Sell & Support Strategy and Roadmap

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Customer demands and increased competition from both traditional and new mono-line and channel entrants have made it imperative that financial services firms transition to a customer-centric business model. The objective of such a model is to more efficiently acquire, grow, and retain customers in desired segments. The impacts are widespread, potentially redefining a companys go-to-market, product development, channel management, marketing, and customer service strategies, and financial reporting measurements. Sell & Support Strategy and Roadmap is a Solution Offering specifically designed to help clients refine their unique visions of what it means to be customer-centric. This engagement will answer such questions as:
Process
People
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Which customer segments are the most profitable today? What are the drivers of segment profitability? Are the segments of sufficient size and can they be adequately penetrated to support the business? What products do these segments want and need? Are these products manufactured today? If not, what are the costs in people, processes, and technology to manufacture them? Is outsourcing or partnering an economically viable option? Through which channels (i.e., touchpoints) do these segments want products delivered? Are these channels operational today? If not, what is the cost to make them operational, and by what date? How will these changes impact (or complement) the existing enterprise IT strategy? What level of service quality do these segments expect? How does this compare to the level of service delivered today? What are the associated cultural, personnel, process, technological, and financial impacts associated with transitioning to the desired end-state? How will new product, channel, and servicing capabilities be communicated to customers? What is the quality of the data warehouse that will become the engine for such communications? How are competitors expected to respond? Does such response validate or jeopardize this new business model? The output from this engagement includes well-documented business and customer strategies and a roadmap that articulates how to transition from current state to desired end-state. The roadmap results from a series of assessments of strategy, people (i.e., skill sets), business processes, and technology. This engagement is a critical first step in all three Big Plays.
Example
A client asks for help in transitioning from a product-centric to a customer-centric enterprise. The engagement begins with a high-level review of business direction, strategy, and objectives in order to scope the desired company end-state. This end-state will then be compared to both the current and hypothesized end-states for each key competitor, and an assessment made as to the achievability and economic viability of the clients desired end-state. Next, the required technological infrastructure is hypothesized and overlaid on the present one, with particular attention paid to data availability, quality, warehousing, and delivery channel functionality. Estimates of transition cost and turn-time are then formulated.
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Similar assessments are made on the relevance of existing business processes and the presence of required skill sets needed in the future. The collective gap analyses derived from each assessment will be the foundation of a roadmap to operationalize the desired end-state.
Relevant Components
Becoming Customer Centric Business Case Development Business Process Organizational Model Customer File Design and Implementation Customer Loyalty Suite Customer-Centered Strategy and Roadmap Customer Focused Processes and Channels Customer Loyalty Management System Customer Management Assessment (CMA/CMAT) Enterprise Performance Suite (EPS) Intelligent Miner Kana Customization Knowledge Management Market Analysis and Strategy Market Structure Analysis Target Audience and Market Segmentation Security and Privacy Design and Implementation Segmentation and Scoring Skills Management Third Party Data Integration
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5.14 Web Enablement

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Web Enablement opens clients back-end legacy application systems to e-business (Internet, intranet, and extranet) integration. These applications have both business logic and the data needed to support client initiativese.g., consumer self-service and touchpoint integration. In many situations, the established core applications will be entirely home-grown. In other cases, they will have been acquired from current-day (or predecessor) ISVs. Sometimes the back-end application might need to be replaced to provide the desired business capabilities. The scope of business functions to be Web-enabled and the degree of required back-end integration can also vary dramatically. This could range from a simple online form filled out by the customer and integrated with the back-end application on a daily basis, to a series of complex forms providing immediate responses and completion of the business function online. The Web enablement can be to support marketing, online sales, customer service, or other key business functions. Regardless of the technology, applications, or scope of the engagement, clients will face significant issues during planning and deploymente.g., skill shortages, cost considerations, and business functionality.
Example
A client has asked for assistance to Web-enable its customer service functions to help reduce call volumes to its service center. The engagement begins with the identification of the key business objectives and time frames, an assessment of the current infrastructure and applications, and discussion of alternative approaches.
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Process
People
Although the engagement is initially limited to Web-enabling multiple existing back-end applications, the client is educated about the need for a complete customer-centric business architecture and the gaps that currently exist (e.g., security, high availability, Web site integration with the call center, and customer information). With the scope of the initial engagement agreed upon, Web site application and infrastructure planning and design begin. The client staff works with the IBM consultants to learn the new technologies and products. The infrastructure requires an integration hub to manage messages to multiple back-end applications, new application development tools are introduced and the client staff trained, and the Web site and its integration with the back-end applications is designed. IBM then assists the client staff with the development, testing, and deployment of the site.
Relevant components
Business Continuity and Recovery ChannelPoint Client Information Integration System (CIIS) Common Transactional Protocols and Formats Customer File Design and Implementation e-business Management System e-Start Financial Fusion Consumer e-Finance Suite (CeFS 4.0) Hosting/Outsourcing Integrated Voice and Data Networks Integration Hub Kana Customization MQSeries/MQSFSE netCallCentre Onyx ASP Operations and Process Design for Interactive Transactions Program Management Security and Privacy Design and Implementation
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Siebel ASP Siebel Customization Siebel IBT WebSphere WebSphere Business Components Composer
Table 5-2 on page 91 relates Solutions to customer-centric business architectures.
90
Customer-centric business architectures

Table 5-2 Solution Offering-applicable customer-centric Business Architectures Business Architecture Enterprise Application Integration Data Transformation & Integration Customer Interaction Processes
Data Analysis & Reporting
Core Business Processes
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
Solution
Campaign Management Channel Management Contact Management Conversion and Data Rationalization Data Mart Design and Implementation Dynamic Personalization Global Infrastructure Strategy Interactive Branding Package Integration Product/Portfolio Planning and Pricing Risk Management Sales Force Automation Sell & Support Strategy and Road Map Web Enablement
X X
X X X
X X
X X X X X X X X
X X
X X
X X
X X
X X
X X
X X X
X X X
X X
X X X
Out-tasking
Data Marts
Client File
91
92
Chapter 6.
Solution Components
This chapter provides a brief description of the business consulting and I/T Service Components that make up the Sell and Support Solutions. Each Component has a short summary in the format of: Overview Customer value proposition Customer profile (when available or if it can be made public) Since this list contains products, ISVs1, and consulting services that will continue to change, it is not meant to be viewed as an exhaustive list. Additions, revisions, and other updates are expected to recur. Additional information can be found on the IBM Home Web site, IGS Solutions Web site, or the Intellectual Capital Web site.
Independent software vendors (aka Solution Developers)
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Sales and Service

Advice and Guidance

Wealth Management
Solution Offerings
Solution Components
Figure 6-1 Solutions leverage tools and assets, and engagements can begin anywhere in the continuum.
General overview of Components

Chapter 5 s Solutions are each comprised of one or more Components. This chapter now describes those Components, which are listed alphabetically. First, however, Table 6-1 on page 95 relates these Components to their Business Architectures and Transition Opportunities.
94
Table 6-1 Solution Component-applicable Business Architectures and Transition Opportunities
Customer-facing processes aligned with customer and business wants & needs
Component
Transition Opportunity
Strategy & Planning
Becoming Customer Centric Branding Solutions Business Case Development Business Process Organizational Model Contact Center Assessment Customer Loyalty Suite Customer Management Assessment e-business Management System Insurance Application Architecture (IAA) Knowledge Management Market Analysis and Strategy Predictive Modeling Security and Privacy Skills Management Target Audience and Market Segmentation
X X X X X X X
X X
X X X
Chapter 6. Solution Components
95
Component
Web SellingGlobalization Planning Web SellingROWI

X
X X
Channel Enablement Customer Value-Add Process Personalization
Branding Solutions ChannelPoint Contact Center Assessment Customer Prospect Optimizer Deep Green Enterprise Customer Analytics Financial Fusion Integrated Voice and Data Networks Kana Customization Knowledge Management MicroStrategy netCallCentre Onyx ASP
X X X X X X X X X X
X X
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Component
Operations and Process Design for Interactive Transactions Pervasive Computing MeB S1 Siebel ASP Siebel Customization Siebel IBT Third Party Data Integration Xchange
X X X X X X X X X
Enterprise Client File
Client Information Integration Systems Customer File Design and Implementation ETI-Extract Evoke Third Party Data Integration Vality
X X X X X X
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Component
Out Tasking
Business Continuity and Recovery Content Hosting Help Desk Hosting/Outsourcing netCallCentre Onyx ASP Program Management Siebel ASP
X
Core Business Process
Business Process Organizational Model Knowledge Management Operations and Process Design for Interactive Transactions
X X
98
Component
Data Warehouse Data Marts Data Analysis & Reporting
Banking Data Warehouse (BDW) Deep Green e-business Management System Enterprise Customer Analytics Enterprise Performance Suite Entity Profiling Management System ETI-Extract Evoke EZ Mart Financial Services Data Model Financial Services Information Framework Insurance Information Warehouse Intelligent Miner MicroStrategy SAS Segmentation and Scoring
X X X X X X X X X X X X X X X X X X X
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Component
Third Party Data Integration Underwriting Profitability Analysis Vality Web Analytics Xchange
X X
X X X
Data Transformation & Integration Enterprise Application Integration
Common Transactional Protocols & Formats Customer File Design and Implementation Entity Profiling Management Systems (EPS) e-Start ETI-Extract Evoke EZ Mart Integrated Voice and Data Networks Integration Hub
X X X X
X X X
X X X X
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Vality
Websphere
X X X X X X X
Component
Websphere BCC
X X
MQ Series/MQSFSE
Complete customer view Consistent & personalized product & service delivery Customer-facing processes aligned with customer and business wants & needs e-enabled interaction at multiple customer touchpoints Advice-based customer interaction
Third Party Data Integration
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6.1 Banking Data Warehouse (BDW)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
BDW enables financial institutions to rapidly build data warehouse Solutions to suit their specific needs. It allows the creation of a wide range of data warehouse Solutionsfrom departmental data marts to enterprise-wide data warehousesand includes all of the key Components required for the core of a data warehousing Solution. BDW consists of a series of more than 40 pre-defined business Solution templates. These logical templates make possible the rapid definition, scoping, and implementation of such commonly-required data warehouse applications as customer profitability, wallet share analysis, customer attrition analysis, and liquidity analysis. The main Components of BDW include:
The Banking Data Warehouse Modela model that provides pre-defined

data warehouse structures for financial institutions.
Pre-defined Solution templatesspecific data mart structures for a number

of pre-defined business Solution areas.
Financial Services Data ModelFinancial Services Data Model AB Level is an enterprise-wide data model and the communication device used to link the pre-defined business Solutions to BDW and the financial institutions data. Banking Data Warehouse Databasethe physical DB2 database that
contains all of the BDWMs business coverage. This database is forward-engineered from the BDWM.
Data Mart Data Structuresthe set of data structures used to store data for
specific groups of users. These data structures can be generated from the pre-defined business templates.
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Process
People
Business Solutionsan application or environment that addresses a

particular business function. The BDW s end result is a set of business Solutions that is customized to meet the specific needs of the financial institutions various users. These Solutions can include spreadsheet-based reports, screens that are based on data warehouse reporting tools, and specific applications in areas such as Campaign Management, Customer Profiling, Profitability, and Risk.
Customer value proposition

BDW provides a fast start for implementing a Solution to provide data quickly and in a format that greatly improves the decision-making process. Using pre-defined templates, it allows financial institutions to exploit the full potential of information previously locked in legacy systems. Its data warehouse holds business data that can be used as the basis for a detailed analysis of those areas of most concern to todays decision makers.
Financial Services Object Model (FSOM)can be used directly to guide the business Component of object-oriented (OO) development.
In addition, FSOMs linkage to the other IFW business models can assist OO co-existence with legacy systems and the migration toward an OO environment.
Financial Services Data Model (FSDM)a layered, enterprise data model

containing at least 80% of the institutions overall business data. BDW is comprised of a proven, flexible, and scalable warehouse technical infrastructure. It enables a financial institution to rapidly implement a comprehensive data warehouse Solution. This Solution makes possible the rapid delivery of business value without compromising the need for a sound, scalable technical data warehouse infrastructure.
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6.2 Becoming Customer Centric

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is an introductory, cross-industry, non-technical offering delivered to a client in a one- to two-day workshop as either an education session or an executive workshop. It is geared toward a business executive audience and introduces CRM-related concepts. Participants view educational material as well as video clips of case studies and work toward the creation of a Relationship Map and a prioritized action plan. The content of Becoming Customer Centric is formatted into these seven modules plus an optional Maturity Model Survey: 1. Owning your Customers Total Experience 2. Defining CRM 3. Going Beyond the Transaction 4. Customer Segmentation and Relationship Mapping 5. Using Customer Intelligence 6. The Evolution of Customer Relationships in an e-marketplace 7. Becoming Customer CentricThe Reality The Maturity Model Survey is an assessment process that uses over 50 audit points to measure the organizations customer centricity level based on four high-level CRM Survey pointsvision, intelligence, access, and information.
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Process
People

This offering is designed to build IBM credibility with business executives. It provides a means of testing and building commitment to CRM within an enterprise, serves as an excellent qualifier for future sales investments in the customer, and allows IBM to present and sell CRM strategy early in the selling cycle to better facilitate a well-executed CRM strategy.
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6.3 Branding Solutions

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
The IBM Centers for e-business Innovation and e-branding Solutions provide the brand guidance and execution support to create brand-consistent and effective, interactive e-business Solutions. The Interactive Branding and Design Solution assists a brand in building its online presence with the support of the following capabilities: Brand research Brand positioning Brand attribute definition Brand to Customer Value Proposition Brand identity development Competitive brand analysis Brand channel analysis Brand-to-customer-connection definition e-channel customer pathways definition Integrated Solution design and development Interactive/strategy affiliate marketing Online promotional e-branding Solutions

IBMs Interactive Branding and Design Solution will support clients in improving their marketing, sales, and customer service capabilities by: Assisting clients in establishing a competitive and unique brand strategy/ positioning for implementing e-channels across their organizations
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Process
People
Assisting clients to develop and deliver a compelling and interactive brand experience across multiple channels consistent with their corporate, product, or channel brand strategy Integrating the strengths and services of several practices
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6.4 Business Case Development

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Four iterations for the business case can be developed for a Customer Loyalty engagement: 1. In the exploratory phaseto assist the client in obtaining funding for the strategy engagement 2. While developing the Customer Loyalty strategyto validate assumptions and begin partnering with the client 3. After strategic initiatives have been recommendedto develop the first detailed case to determine the estimated benefits and required investments 4. While finalizing the business caseafter prioritizing initiatives with the client to understand net present value

IBM has developed models and techniques for demonstrating the benefits of a Customer Loyalty improvement program in the Financial Services Sector. Practitioners can utilize supporting materials to guide them in tailoring their use of the ROI model for each specific engagement. These supporting materials include task descriptions, technique papers, workbook templates, and examples. Pre-engagement Marketing Task Define Business Case Update Business Case Finalize Business Case TechniqueUsing the business case tool TechniquePopulating the business caseIteration 1 TechniquePopulating the business caseIteration 2
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Process
People
TechniquePopulating the business caseIteration 3 TechniquePopulating the business caseIteration 4 ROI Model Iteration 1-2 ROI Model Iteration 3-4 ROI Model Iteration 1 Example ROI Model Iteration 2 Example ROI Model Iteration 3 Example ROI Model Iteration 4 Example
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6.5 Business Continuity and Recovery

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
A clients data center is performing flawlessly, the network is up, and the call center is operating normally. But over the last 24 hours, that company lost millions of dollars in market capitalization. A degradation in the performance of a Web server coupled with staff shortages has led to a complete outage of the clients online business. Could this disaster have been prevented? Until recently, classic recovery planning focused on how to restore centralized data centers in the event of a natural or man-made catastrophe. It did not address the need for continuous operation of key business processes. While traditional measures remain important, they are far from adequate for distributed computing environments. The requirements for continuous operation in todays e-business setting are even more complex and challenging.

The goal for todays companies is to achieve a state of business continuity where critical systems and networks are available 24x7x365. To attain and sustain this level, companies must engineer availability, security, and reliability into every process from the outset. Listed below are some of the key success factors to keep in mind when evaluating a service providers ability to deliver true business continuity Solutions: The ability to understand the integration of IT with business strategy, and to define the risks and impacts of a disruption to critical IT infrastructures An understanding of e-business dependencies and business-critical requirements Support for multi-vendor, multi-platform IT environments A significant investment in state-of-the-art facilities and tools, and the financial wherewithal to continue investing
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Process
People
Integrated Solutions to assure availability of non-data center resourcesincluding networks, end-user work space, and call centers Skills and resources to manage complex continuity programs in a rapidly changing, networked IT environment Access to the latest technology, constantly refreshed to reflect the needs of the market To assure survival, companies must adopt proven strategies to protect both business processes and vital information, while implementing corporate-wide programs for continuity and recovery management.
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6.6 Business Process Organizational Model

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
One of the major issues encountered by companies seeking to achieve higher levels of customer centricity and greater integration of Web channels in their businesses is the inability of legacy organizational models to effectively execute new customer-centric processes. IBM brings design tools and methodology to build more effective organizational models and to help the client manage the transition of implementation.

IBM constructs organizational models and related management roles and responsibilities which enable the execution of processes designed to enhance customer centricity. IBM also uses Business Process Re-engineering and Change Management methodologies to construct an approach and action plan for implementation. The new organizational model will usually reflect a matrixed approach to enable effective process execution across functional organizational units and/or LOBs. This model delivers the organizational enablement for the client to cost-effectively identify customers and manage customer interactions for desired results.
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Process
People
6.7 ChannelPoint
Key Dimensions
Infrastructure
Overview
ISV
ChannelPoint and IBM have formed a world-wide strategic alliance designed to jointly deliver next-generation e-marketplace Solutions to the insurance and financial services industries. ChannelPoint's software applications and professional services offerings are designed to meet the evolving needs of insurance carriers, distributors, and buyers. Its technologies leverage the power of the Internet to streamline and automate the insurance distribution process in order to facilitate end-to-end transaction processing. The combined technologies of IBM and ChannelPoint provide insurance and financial services companies with the architecture and technology required to deploy state-of-the-art B2B and B2C e-commerce applications and services. The combination of IBMs hardware platforms, middleware, and services with ChannelPoints insurance-specific software, technology, and services create powerful and unmatched B2B e-enterprise and e-marketplace Solutions to drive significant, measurable business results. IBM/ChannelPoint Solutions include:
Application softwareChannelPoints Life, Property & Casualty, and Health Suites of software and Insurance Technology Framework MiddlewareIBMs WebSphere, MQSeries, DB2, Data Models/IAA, and
Tivoli Application Services: IBM and ChannelPoint offer installation, training, and maintenance solution integration IBM and ChannelPoint provide services to help integrate this Solution into the companys existing structure
Technology
Execution
Software
Planning
Services
Strategy
Process
People
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System integrationIBM provides hardware and software system integration

services
ConsultingIBM and ChannelPoint provide e-business consulting Hosting servicesIBM provides hosting services to provide full ASP
capability
Hardware platformIBM provides RS/6000 and Netfinity hardware

platforms.

IBM/ChannelPoint Solutions for insurance distribution and servicing e-business are designed to drive significant, measurable business results, such as: 1. Substantial cost reduction Up to 66% decrease in sales cycle time 10% to 15% decrease in Sales and Marketing expense for life insurance Up to a 50% decrease in issue admin expense Up to 66% decrease in underwriting expense 2. Reduction of duplicate infrastructures 3. Significant revenue growth with improved sales and marketing time 4. Superior customer service ChannelPoint has developed an insurance technology architecture which makes possible the creation of dynamic electronic marketplaces (e-markets) that bring together buyers and sellers of insurance products. ChannelPoint's technology electronically links insurance carriers with distribution channelsranging from traditional brokers that sell the majority of insurance today to banks, financial brokerage firms, and other emerging distribution channels such as Internet portals. Using ChannelPoint's technology, individual carriers or groups of carriers can create e-markets that are customized to their particular distribution strategies. Carriers and distributors can significantly decrease costs, increase revenue, and improve service levels by using ChannelPoint's applications and Exchange Platform technology to conduct e-insurance transactions.
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6.8 Client Information Integration System (CIIS)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
CIIS offers insurance and banking providers a practical way of consolidating active customer information into a single, enterprise-wide view, and makes this information broadly available across all customer contact points and for follow-up analysis and decision-making. CIIS is an operational client management system that works independently from while in parallel to an existing providers operational systems. It draws customer data from many customer contacts, other external data sources, and legacy systems, consolidating it into a single repository. This repository can then be used as a source for data warehousing, data mining, and other customer-management activities. It also is possible to use CIISs client information as a data source for decision-making with the Components of IBMs DecisionEdge, a suite of CRM business intelligence Solutions. Acting as a crucial source of customer information, CIIS is the real-time transactional database that provides DecisionEdge relationship management.

With CIIS, providers can significantly shorten customer sales and service developments cycles and dramatically reduce the costs associated with building a client management system from scratch. CIIS allows providers to: Improve the profitability and satisfaction of customer relationships by managing customer contacts more effectively Increase cross-selling to existing clients by using detailed customer and product data more efficiently
Process
People
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Enhance the scope of their products and services to respond more quickly to new opportunities and changing market conditions Sharpen market segments by storing and accessing information that allows them to target high-value relationships Tailor their offerings more closely to the needs of each client Raise service quality across all company access points by providing appropriate, quick, and effective responses to client needs and opportunities
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6.9 Common Transactional Protocols and Formats

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
One of the major issues encountered by companies seeking to achieve higher levels of customer centricity and greater integration of Web channels in their businesses is the diverse communications/processing requirements of their legacy systems. IBM brings assets and systems integration features that can enable a client to deploy market strategies more quickly than legacy systems can be re-engineered.

IBM uses process models and application adapters to define and implement common protocols and formats for a given transaction, irrespective of the data stores that must be updated or the legacy processes that still use those stores. MQSFSE (see MQSeries/MQSFSE definitions in section 6.39) is an asset which enhances the timely deployment of these standards by creating a messaging hub between various systems and the database engine, and providing tools to convert and implement this changean invaluable capability in application/ system integration and legacy reuse.
Process
People
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6.10 Contact Center Assessment (CCA)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
CCAs purpose is to examine and report on the current state of a clients contact center strategy, capabilities, enablers, and operations. Its scope includes a review of all access channels for sales and service operations. This assessment is based on a structured process and categorization of the components and activities within the contact center.

The value to the customer is in the deliverables from14 areas or points addressed in this assessment: 1. Vision, mission, objectives, and strategy (VMOS)assessment of the corporate direction of the business, and alignment of this strategy for CRM 2. Customer managementassessment of the clients Customer Value Management, Customer Satisfaction, and Customer Loyalty strategies 3. Channel managementassessment of assisted and unassisted enterprise access points 4. Contact managementassessment of the contact interaction flows, essentials processed, and message delivery of the contact center 5. Staff managementassessment of the skills profiles, hiring, compensation, staffing, and scheduling practices of the contact center 6. Education and trainingassessment of career development, formal training, and mentoring programs available to contact center staff 7. Data, information, and decisionsassessment of data sources, quality, mining and storage, and application of information for contact enrichment 8. Performance managementassessment of the enterprise and departmental relationship agreements and metrics for capacity, throughput, quality, people, and processes
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Process
People
9. Communication infrastructureassessment of the voice and data infrastructure and networks inside the contact center 10. e-enablementassessment of organization, processes, and technology to support both assisted and unassisted online sales and service 11. Applications and databasesassessment of legacy application interfaces, desktops, user tools, and physical infrastructure supporting the contact center 12. Delivery optionsassessment of capabilities for outsourcing as well as in-sourcing contact center components 13. Facilities and business recoveryassessment of contact center locations, design, and physical components, as well as the labor pool, business continuity plans, and backup procedures 14. investmentsassessment of the clients strategy compared to accumulated data on established norms in other contact centers as based on market share and satisfaction value
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6.11 Content Hosting

Key Dimensions
Infrastructure
Technology
Execution
Software
Planning
Services
Strategy
Overview
Web hosting today is a major, rapidly expanding, and highly lucrative market segment. For our traditional large enterprise customersas well as new dot-com and mid-market companiesWeb hosting can be the best and fastest way to bring business-critical Web-based solutions online. To better serve these customers, IBM is rapidly expanding its managed e-business services portfolio to offer the full continuum of Web hosting servicesfrom basic co-location (space, bandwidth, and power) and flexible a la carte services to fully-managed outsourced hosting environments. We also offer segment-specific solutions for such rapidly-growing sectors as B2B e-marketplaces and application service providers (ASPs)along with enabling solutions such as e-commerce services. Plus, we re extending this continuum to the edge of the network to provide storage utilities, streaming media services, and industry-based trading network solutions. To enable this blended strategy, IBM continues to forge major strategic alliances with data center facilities providers, world-class carriers, and leading-edge Internet technology companies. Different companies have distinct needs in managing their e-business environments. While some want to retain substantial control, others welcome extensive expert assistance. Regardless of the approach, the primary importance is the agility to readily shift priorities as business changes.
Co-location services
IBM e-business Hosting Centers and Management Services allows the client to retain operational responsibility over the hosting infrastructure while taking advantage of IBMs superior data center operations and high-speed Internet access. IBM offers flexible, cost-effective solutions that can provide a protected, fail-safe environment and help reduce downtime for Internet operations.
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Process
People
The standard co-location packages includes floor space, power, Internet bandwidth, basic monitoring, and customer support. Optionally, the client can bring its own servers (IBM or non-IBM), select the software, and decide how much assistance it wants in managing its Web environment. A high-level summary of services includes:
Rack/cage/suiteproject management, 24x7 network monitoring, URL monitoring, and reboot service with rack and DNS setup Network bandwidthdedicated and burstable back-end connectivity Network cachingcache setup and content distribution ProvisioningIBM or OEM Load balancingcross-site, multi-path inside the center Backup/recoveryplanning and implementation Security servicesintrusion detection, vulnerability analysis, and managed
firewall
Managed monitoringCPU, disk space, swap space, and memory

utilization
Systems administration and server managementNOS administration, general logical/physical management, configuration management, operations, physical database administration, and script writing Application serviceshardware maintenance, capacity planning and
performance management, stress testing, systems management consulting, business recovery services, Web traffic analysis, application development, groupware management, and systems integration
Fully-managed services
When your customers e-business demands mission-critical applications delivered with high performance, security, and availability, an IBM fully-managed solution might be the right choice. Some of the most heavily-trafficked sites on the Web already rely on IBM for complete management of their hosting efforts. In fact, IBM fully manages more than 73,000 servers from multiple hardware vendors in 133 data centers worldwide. IBM fully-managed hosting means just that. Our e-business hosting services encompass far more than simply the security, scalability, and basic monitoring features that other providers call full-service management. Our solutions can be customized to include content creation, integrated commerce, back-end connectivity, and complex systems integration.
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We are able to deliver such a complete continuum of services in large part because of the uniformity and industry-leading standards of our global data centers.

IBM e-business Hosting Centers and Universal Server Farm environments are equipped with fast, redundant fiber connectionswith no single point of failurefor optimum network availability. IBM also offers high-speed Internet access with burstable bandwidth-on-demand, which enables the clients site to effectively accommodate increasing numbers of hits up to the limits of its connection size. IBM can deliver industry-leading network service levels and support. We maintain numerous strategic partnerships and alliances with major telecommunications carriers and Internet service providers for bandwidth and network managementincluding AT&T, UUNet, and Qwest. These offerings provide redundant, reliable networks with no single point of failure. They offer the flexible service and support options that most companies require. The client receives physical and data-transfer security features. These offerings allow for rapid deployment of Web presence and provide superior worldwide customer support. Additional information is available at the MeB Website:
http://w3-1.ibm.com/services/so/e-business_hosting/index.html
IGS Cross-Selling Awareness Training has good overview information on all IGS LOBs including Managed e-business Services at:
http://w3-1.ibm.com/services/salesone/sales/awarenesstraining.html
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6.12 Customer File Design and Implementation

Key Dimensions
Infrastructure
Technology
Execution
Software
Planning
Services
Strategy
Overview
This Component provides a single, long-running, enterprise-wide customer relationship by providing employees access to full customer information such as complete product/service history and/or personal preferences. It consolidates the customer data across function, system, application, and sources into a single view.

IBM has consulting, asset, ISV package, and systems integration features that help a client move from product and LOB silo approaches to data storage with a relational operational view of all customer information. This component expedites the creation process by leveraging experience, data knowledge, and format through extensive iterations.
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6.13 Customer Loyalty Suite

Key Dimensions
Infrastructure
Technology
Execution
Software
Planning
Services
Strategy
Overview
This component assesses the clients status against the appropriate CRM/CVM/ CLM/CVI best practices. This can be done at the enterprise level (Customer-Centered Strategy and Roadmap) or for specific processes or channels. Process, organization, and technology initiatives are recommended to close identified gaps. The resulting alignment between business capabilities and client needs can then be maintained by a management system ensuring ongoing, profitable customer relationship and loyalty management. The Customer Loyalty Suite consists of three offerings:
Customer-Centered Strategy and Roadmap Customer-Focused Processes and Channels Customer Loyalty Management System

IBM can design and implement a Customer Loyalty Management Solution for a single LOB or for an entire enterprise. Either way, the capabilities underlying the Solution are the same. The goal is to validate or adjust the fundamental customer loyalty strategy. Two categories of metrics are importantstrategic and operational.
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Strategic metrics include:

Marketplace penetration versus goals Customer-acquisition effectiveness, as measured by marketing cost per new product sold Relationship depth by segment versus goal as a means of gauging cross-sell effectiveness wallet share
Operational metrics include:

Manufacturing costs per product soldby segment, geography, or channel Distribution costs per product soldby segment, geography, or channel Servicing costs per customerby segment, geography, or channel Ratio of new customers acquired to number of employeesby segment or geography Ratio of customers served to number of employeesby segment, geography, or channel
Customer strategy of the CRM holistic vs. point solution approach:

Existing CRM approaches have resulted in point Solutions at a department level using an inside-out and/or single competency (i.e. Customer Relationship Management (CRM), Business Intelligence (BI), or Customer Value Management (CVM)) approaches. This must be cross-enterprise to be successful.
Customer Loyalty based upon profitable relationships:

The customer loyalty business problem is more than just identifying, capturing, and retaining loyal customers. For customer loyalty to have any significance for an organization, it must be based upon profitable relationships. Adding the profitability dimension to customer loyalty further changes the techniques and approaches around CRM processes.
A system to monitor and track profitable customer relationships:
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Whether the client is trying to address the issues of customer churn through retention strategies, increase traffic through better identification and target marketing processes, or improve conversion rates through personalization techniques, customers have become one of the most important assets an organization has. As with other assets, this means that there should be a management system in place to manage, monitor and report on the value of this asset and its contribution to the organization's overall profitability.
6.13.1 Customer-Centered Strategy and Roadmap

Scopes and gathers (or develops) the data required to define a customer-centered management strategy Using the collected data, defines a customer strategy that ideally aligns with and supports the business strategy Assesses client versus customer-centered strategy end-state and develops an operational roadmap
6.13.2 Customer-Focused Processes and Channels

Creates a customer-defined process/channel vision and action plan
6.13.3 Customer Loyalty Management System

Defines a Component of an ongoing customer management system and action plan consisting of: Customer Value Index (CVI) Customer Data Management Customer/Market Segmentation Customer and Business Capabilities Alignment
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6.14 Customer Management Assessment (CMA/CMAT)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
This Component consists of a consulting engagement leveraging CMAT, a Customer Management Assessment Tool Database that houses customer benchmarking information. The goal of Customer Management Assessment (CMA) is to assess the clients customer management capabilities in order to determine prime improvement areas and likely benefits. Key Components of the offering include: An independent assessment of the clients customer management capabilities A prioritized list of areas for improvement and their likely impact on business as determined by the management team Benchmarking the client against brand leaders to display gap analysis against best practices Recommendations on how to address key focus areas This assessment is based on the QCi Customer Management Model shown in Figure 6-2 on page 128.
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Figure 6-2 Customer Management ModelQCi Ltd (a CRM consulting firm)
Derived from experiences with both clients and academicians, this model outlines the best practices for excellence in customer management forming the eight modules that comprise the different sections of the assessment: 1. Analysis and planning 2. Proposition 3. Customer management activity 4. People and organization 5. Processes 6. Measuring the effect 7. Customer experience 8. Information and technology

Documentation detailing the results of the assessments identifies:
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Strengths and weaknesses within the client, along with a set of structured recommendations in each of the areas that make up the customer management model Objective scoring comparing the client to other companies in the CMATwith its benchmarking customer information The assessment also includes a wide range of action areassuch as cultural change, marketing techniques, and technologythat are presented to the client management team to: Achieve management alignment and buy-in to drive the project requirements Set action priorities and establish direction Assist organizations in assessing how good they are at managing their most important resourcetheir customers Enable customers to quickly identify those areas needing improvement within their CRM programs Provide a benchmark against brand leaders, thus highlighting gaps against best practice Provide a checkpoint within an already established CRM programi.e., measure benefits of actions already underway and/or reassess program direction to enable necessary corrective actions
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6.15 Customer Prospect Optimizer (CPO)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Rapid changes driven by deregulation, paired with the global availability of new tools and technologies, are forcing insurance companies to compete as never before. To stay ahead, they must constantly generate new businessboth by reaching new prospects and by cross-selling to the valuable customer base they already have. Part of IBMs DecisionEdge for Relationship Marketing solutions suite, CPO is a marketing and sales solution that gives agents precisely the targeted leads they need to produce more business faster. Developed in close collaboration with two major insurance carriers with large agency forces, CPO leverages advanced IBM data mining and Web technologies. This intelligent lead generation and management system delivers optimized prospect listscustomized to agents preferencesvia the Web using secure Java technologies, thus helping the organization win and retain a loyal customer base.

Boost productivity and build loyaltysimple and universally available, CPO uses a standard Web browser. This means that agents dont have to buy, install, or learn any special hardware or softwarethey can use the system and Web browser they already have to get results right away. With a tool thats this easy to use, and that generates leads this precise, agents can thus enjoy new levels of success and productivity.
Because its Internet-based, CPO is also highly scalable. No matter how many agents a customer has, and no matter where in the world they might be located, they will be able to take advantage of this sophisticated business-building tool. And it can rest assured that its valuable information is well-protected, because CPO is based on secure technology requiring authenticated access.
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CPO is a very attractive solution for companies with a far-flung agent force. The client can put it to work to gather feedback from agents on the types of responses they are getting from prospectsallowing it to track agent performance, measure campaign success, and refine its database even further. Furthermore, if it so chooses, it can use the same infrastructure to create other integrated, Web-based applications to strengthen ties between its agent force and the home office.
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6.16 Deep Green

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is an offering for Capital Markets Forecasting and Consulting. Its mission is to build decision support systems for portfolio managers, traders, regulators, and strategists. Deep Computing utilizes expert knowledge in exhaustive and rigorous testing to discover best models. The research team has employed machine learning, economics, signal processing, chess, parallel computing, experimental physics, quantitative portfolio management, and trading. They are currently developing stock selection tools for mutual funds. The market analysis is built on original research in pattern recognition, data filtering, market behavior, and volatility forecasting. The existing research and applications are adaptable to market forecasting stock portfolio management and trading, foreign exchange, commodity, and bond trading.

These models enable the following: Extreme behavior predictive models (i.e., forecast stocks likely to have returns very different from market returns) Recognizing patterns inherent in market dynamics leading a big rise or fall Several models with different time-scales (extreme up/down forecasts) Equity trading (generating short-term signals by emphasizing ticker data indicators) Foreign exchange (devaluation) Interest-bearing securities (large liquidity) Margin-loan portfolio management (forecast firm exposure and individual portfolio risk)
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Settlement and clearing models of real stock inventory, money flow, and stock loan/shorting).
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6.17 e-business Management System

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
6.17.1 e-business Strategy

Overview
This Component provides the consulting services that enable clients to develop competitive strategies and facilitate the end-to-end e-business transformation process. Consultants with industry knowledge assist clients to understand the impact of e-business on their industries and current business models while helping them maximize market value and minimize risks.

Our e-business strategy contains the following elements:
Current business contextidentifies focal areas, performs environmental

analysis, develops value nets, and identifies value propositions and their organizational impact
Strategic intent and prioritiesidentifies and develops strategic capabilities

and initiatives, plans scenarios, and defines new business models and preliminary requirements
Strategic roadmap and business architectureassists the client to develop a

comprehensive e-business model that emphasizes integration across all of the e-business Solution Components, including business objectives and the management and operational requirements needed to support e-business initiatives
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6.17.2 e-governance
Overview
The e-business Management System helps clients answer two fundamental questions necessary to establish and run an effective e-business: Now that we have a strategy, how are we going to organize to manage our e-business efforts? What actions should we take to ensure that we are moving forward swiftly and effectively in creating an e-business environment?

Using this component, IBM analyzes, designs, and implements the seven other pieces necessary to create an effective e-business management system: 1. CharterWhat is the clients purpose and approach to nurturing and managing e-business within the enterprise?
Focus on the defined e-business strategy and corporate mission.

2. OrganizationHow should the resources be structured and linked with the enterprise?
Focus on structure, reporting relationships, and connections between/among the e-business resources and their counterparts in other areas of the enterprise.
3. Roles and responsibilitiesWho should perform what responsibilities?
Focus on the definition of work requirements mapped to the groups and individuals who perform them.
4. ProcessesWhat new processes are required, and what are the changes needed to the existing processes?
Focus on the predefined activity flow for the necessary e-business actions and creation of e-business outcomes.
5. MeasuresWhat are the accountability mechanisms for e-business at the enterprise, operating, process, group, team, and individual levels?
Focus on metrics.
6. PoliciesWhat are the necessary policies to ensure that the organization is protected from key risks?
Focus on predefined e-business decisions with associated boundaries, standards, and latitude.
7. Content modelWhat are the critical aspects of content that the client needs to manage?
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Focus on the definition of consistency in content and its portrayal on Web sites and in data marts, so that decentralized execution of content management can be performed in a coordinated, well-planned manner.
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6.18 Enterprise Customer Analytics (ECA)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is an end-to-end e-commerce offering that leverages Web Analytics and BI technologies to provide a clear view of the customer across multiple marketing channels. It executes deep data analytical data mining techniques and patented optimization algorithms on both historic and real-time data residing in data warehouses and operational data stores, optimizing customer encounters to benefit both the client and the customer. Clients receive precisely the information they need, when they need it, and how they need it. Businesses are able to monitor and manage relationships more effectively, efficiently, and profitably through all avenues of interaction. ECA contains seven integrated capabilities: 1. Customer relationship strategy across channels 2. Marketing-driven technical infrastructure 3. Enhanced customer information for real-time data and analytical support 4. Web traffic pattern tracking to strengthen relationships and increase sales 5. Personalized customer experiences 6. Optimized marketing channels for customer satisfaction, loyalty, and profitability 7. Applied cross-channel campaign management to improve results

ECA provides the following: The ability to quickly optimize, anticipate, sense, interpret, decide, and respond to customer interactions in a highly personalized, consistent, and optimum manneracross multiple channels at each touchpoint
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The ability to use metrics from all channels to execute more effective marketing campaigns and pinpoint significant new sales opportunities, enabling cross-selling and up-selling to existing and potential customers Real-time support for strategic and tactical marketing decisions at each contact point The ability to increase revenue by determining individual profitability metrics for both customers and campaigns, as well as predicting and/or monitoring Lifetime Customer Profitability ECA can result in: Increased sales of higher-margin products Improvements in launching new product Justified premium pricing Channel optimization Puts the client ahead of the competition by providing the capability to be first to market with product and services it truly needs Enables businesses to influence choices and actions at the most pivotal moment once interactions are underway Creates content-rich repositories of continually-evolving customer profiles which, in the case of Web-based transactions, can be updated dynamically ECA creates a closed-loop customer relationship process that grows increasingly intelligent with each interaction. This applies to both B2B and B2C transactions. Fully integrates customer information systems ECA is one of the main enablers of successful CRM strategies, providing the client an accelerator in the complex processes of system design, data management, and data analytics. By linking e-commerce and traditional multichannel business intelligence practices, ECA meets the business challenge of how to meet short-term business goals while devising technological Solutions that enable forward-thinking companies to gain a competitive edge.
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6.19 Enterprise Performance Suite (EPS)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
EPS is an evolving suite of integrated Components designed to provide BI support for executives making marketing, sales, and operational decisions. The industry challenges of cost pressures, speed of change, competition, and planning demand that corporations maintain and improve customer satisfaction, market share, and higher returns. BI and CRM work together through EPS to improve the financial institutions effectiveness and profitability. EPS allows management to identify, attract, and retain profitable customers, and to create and bundle the right products and services to meet customer needs. The EPS suites custom-phased approach is based on the level of complexity of challenges presented for BI and CRM implementation. Some Solutionsfor example, marketing, profitability, risk management, and asset and liability managementare implemented according to pre-defined measures and dimensions. EZ Mart is utilized as IBMs complete end-to-end Solution for automating BI information stored in data warehouses, data marts, and decision support systems. How EZ Mart fits into the EPS scheme is graphically depicted in Figure 6-3 on the following page.
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Figure 6-3 The EZ Mart end-to-end BI automation Solution

EPS brings open, flexible, scalable, comprehensive, and proven end-to-end Solutions at a fraction of the cost available through other venues. It assists corporations meet their business challenges by enabling them to: Understand and achieve formulated or customized profitability Centralize data and create a single view of the customer in order to focus efforts and manage customer relationships Enable profiling customer and prospect groups to better meet product and service needs Enable the study and anticipation of customer behavior, regardless of channel Create the data hub which is central for a functional and effective CRM process Design and deliver the products and services required to meet customer and market needs
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6.20 Entity Profiling Management System (EPMS)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a generic, function-rich application architecture and framework for transforming, integrating, analyzing, and presenting data about any set of objects or entities. EPMS incorporates powerful profiling, import/export functions, interactive data visualization, and a fully customizable wizard for reporting from any relational database. It can be utilized as the presentation layer for ad hoc engagements, as an addition to a tool kit, and as the application infrastructure to transform a data mining application.

EPMS is the foundation for several Solutions in Healthcare (BlueCross/ BlueShield plans, HMOs, and government programs) and Insurance (Health and P&C) currently implemented in the US and Brazil. FAMS is one such product.
IBM Fraud and Abuse Management System (FAMS)

The IBM Fraud and Abuse Management System (FAMS) has been implemented in insurance engagements. FAMS is a client server application designed to help investigators and auditors identify providers that might be submitting fraudulent or abusive insurance claims.
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6.21 e-Start
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This Components end-goal is facilitating creation of a working Web site. As opposed to an information-oriented site, e-Start is a consultation/rapid development offering that helps the client visualize a Solution to a business problem, launch a new e-business application, or gain consensus with a high degree of functionality on a common vision for a given application. This could be as simple as a Solution outline developed from a fail-safe approach, beginning with relatively complete documented requirements, or something much more complex. For example: A client requesting a working prototype in the form of a strategy report for internal selling or other demonstration purposes typically requires a four-week engagement for two or three consultants. Premiere offerings such as Digital Branding require 8 to 12 weeks for delivery of a report detailing an initial site design for extending the existing brand. There are four phases to the engagement structurediscovery, vision, rapid iterative prototyping, and vision transition. Usually after this initial start, it star-bursts into several releases.

e-Start helps visualize, sell, and build a strategy for quick-starting application development, mitigating risks inherent in the development of large applications, and reducing time to market. This offering is particularly helpful in selling Digital Branding.
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6.22 ETIEXTRACT
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
IBM has formed a business relationship with Evolutionary Technologies International, a vendor that provides tools such as ETIEXTRACT to automate and exchange data enterprise-wide and beyond. ETI software enables an enterprise to seamlessly integrate, transform and deliver vital corporate informationfrom point A to point Anywhere. These tools can be used to move data between a wide range of systemslegacy databases, data warehouses, operational data stores, ERP applications, CRM systems, and Web sites. The ETIEXTRACT Tool Suite: Transforms complex data values Meets unique business requirements Captures and manages metadata Accesses a wide range of systems Interacts natively with systems Moves data in both batch and near real-time

Companies use ETIEXTRACT to: Increase programmer productivity Increase project maintainability Maximize reuse of programmers' work across projects Lower project implementation costs Improve change management
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The more the customer uses ETIEXTRACT, the greater its valuewith respect to the range of systems it accesses, the range of logic it performs, and its ability to utilize work done in previous projects. ETIEXTRACT provides a long-term solution to the problem of data integration management, one that evolves with technology and rapidly changing business needs. From their inception, the ETIEXTRACT tools were developed with an extensible architecture that allows their platform to evolve with changing technology. This extensible architecture means that ETIEXTRACT: Generates both legacy COBOL and IMS programs, as well as C programs for newer environments. Enables customers to move data in both batch and near real-time. Is customizable for unique business environments. Customers can tailor the software's capabilities to support industry or company-specific business rules. Can access home-grown, proprietary systems by enabling customers to construct new interfaces that read and write to those systems.
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6.23 EvokeCRM Integration and Product Offerings

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
Evoke Software offers an innovative, unmatched Solution specifically designed to accelerate the integration, migration, and consolidation of corporate data for e-business. Evoke analyzes and profiles content and structure while qualifying data sources when producing normalized data models. It is used to discover critical information about the content, structure, and quality of corporate data, and to use that information to create source-totarget transformation maps aimed at newly-designed or existing databases and applications. The Evoke methodology is designed around and fully supported by information stored in the Evoke Repository, which captures and shares all knowledge developed using Evokes products. This can dramatically shorten project implementation times, while greatly reducing costs. This methodology includes comprehensive provisions for using the Evoke Axio product suite of tools that automate many of the most time-consuming analytical processes. The Axio suite is fully integrated with the Evoke Repository. Axio XML is used by organizations throughout the world to thoroughly understand the content, structure, and quality of their corporate systems actual source data. This analysis reveals hidden data quality issues, inconsistencies, and incompatibilities between source and target applications.

A clear understanding of the data in corporate systems is critical to the success of any new development effort. Evoke Axio extends and improves technologies and automates the discovery of valuable information about corporate systems by identifying hidden data quality issues and inconsistencies between different systems. Evoke adds value by:
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Rapidly and accurately defining a clients complex corporate systems and then creating accurate specifications for using data from those systems Facilitating interactive analysis by data and business analysts, a process that takes the guesswork out of understanding complex corporate data sources Validating the clients assumptions and discovering new facts and rules about how its corporate systems work Facilitating the development of new applications and integration processes to generate detailed specifications for integrating them with existing systems Project Management uses Evoke's products to control the overall process of identifying and resolving data issues, capturing and communicating knowledge about source data, and tracking individual action items. Using Evokes Axio XML, users are able to: Interface with the Evoke Repository, thus allowing team collaboration throughout the mapping process Leverage the results of data profiling Produce complete transformation specifications for integration programmers
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6.24 EZ Mart
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a component of Financial Services Information Framework (IFW) that works with and is based upon the Banking Data Warehouse (BDW). EZ Mart enables banks to rapidly deliver a scalable decision support Solution that responds to critical business needs.

EZ Mart allows customers to quickly get return on their banking data warehouse investments by providing the pre-work necessary to create an analysis data mart.
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6.25 Financial Fusion Consumer e-Finance Suite (CeFS 4.0)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
This product suite provides a complete end-to-end Solution for retail e-banking. Also known as CeFS 4.0, it offers enterprise-class technology and is comprised of several Solutions listed below. CeFS 4.0 provides the retail market with customized Financial Destinations on the Web, a single integrated platform, and seamless connectivity on any Internet-enabled device. IBM and Financial Fusion jointly provide this Solution offering that is multi-currency and multi-lingual for strategic e-finance Solutions. The CeFS 4.0 solution suite provides financial institutions with an end-to-end platform for building profitable and sustainable relationships with their customers on the Web. CeFS 4.0 integrates with IBM's MQSeries, AIX, DB2 Universal Database, WebSphere software platform, and planned support for the S/390 enterprise server platform. Components include: Financial Fusion Server Wireless Application Support Consumer Banking Consumer Bill Presentment and Payment Bill/Pay/Transfer Warehouse Loans Consumer Content Syndication Account Aggregation One-to-One Marketing Customer Care
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Development Edition
Another Solution within the e-finance Suite is Enterprise Class Hosting, which provides an industrial-strength hosting facility with enterprise management and monitoring capabilities. Key features include: Universal server farm management and operations Network operations center and help desk support available 24x7x365 SAS 70 standards Multiple redundant high bandwidth connections Disaster recovery Load balancing Consulting services
A third Solution is Micro Business Banking for Small Office/Home Office (SOHO) banking customers. It provides full-featured Web banking specifically for this growing market segment. Key features include: Banking Bill payment Bill presentment Advanced cash management tools Business news/financial advice Stringent security

As leading financial institutions embrace the Internet as a primary delivery channel, certain minimum Solution requirements emerge. Financial institutions require e-business Solutions that: Facilitate an end-to-end e-business Solution Build upon a highly flexible and scalable architecture Permit easy customization and development of e-business services Provide a highly personalized consumer experience Improve the ability to react in a timely fashion
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The Financial Fusion Solution satisfies these requirements. It provides financial institutions with a complete object library of Web-based banking, bill payment, bill presentment, and messaging (e.g., e-mail) tools that can be assembled into completed products or distributed as individual objects throughout the financial institutions Web site. This enables clients to use proven Components to quickly build end-to-end Web-based financial services.
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6.26 Financial Services Data Model (FSDM)

Key Dimensions
Infrastructure
Technology
Execution
Software
Planning
Services
Strategy
Overview
FSDM is a layered, cross-enterprise data model that has proven to include at least 80% of common business data across the financial institutions. It can be customized and tailored to rapidly align this model to reflect an institution's particular needs. The FSDM model was created by merging detailed data models and data requirements obtained from major banks around the world. It contains thousands of carefully constructed business definitions, reflecting nearly 100 person-years of analysis. This information is represented in two distinct layers: In the conceptual layer, the enterprise-wide business information is represented through a series of intuitive hierarchies and is primarily focused on business users. In the logical layer, the same business information is structured as an Entity Relationship Model (ERM) and is focused at information technologists. FSDMs major objective is to maximize enterprise reuse. It does not attempt to define the structure of every item within the core financial activities of a financial institution. Rather, it models those data items and structures that are likely to be re-used across more than one business Solution or application in a way that is independent of a particular application view.

FSDM supplies a pre-defined repository of financial business knowledge that provides an enormous head start for any financial institution wishing to manage its data across the enterprise. It contains advanced information engineering and object-oriented features that enable explicit re-use of data assets, while providing a common platform for the development of traditional, fourth generation, or object-oriented systems. This includes:
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MIS development Defining application data requirements
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6.27 Financial Services Information Framework (IFW)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
IBM, in partnership with leading financial institutions worldwide, has developed an enterprise Information Framework (IFW) that enables the effective management of information. IFW is a comprehensive methodology and structure that delivers an information architecture populated with business, technical, and Solution content models that are customized to meet the needs of Financial Institutions. It thus enables the client to completely manage and leverage its business information for competitive advantage in an organized, layered, top-down approachfrom the conceptual level down to its physical implementation. IFW currently comprises:
Business Intelligence Suite Banking Data Warehouse (BDW)a series of pre-defined business Solution
templates that facilitate the rapid implementation of commonly-required data warehouse Solutions such as customer profitability
EZ Marta data mart based upon BDW

This enables banks to rapidly deliver a scalable decision support Solution that responds to critical business needs.
Business Processes Suite Critical Business Processes (CBPs)predefined processes that are common
to any financial institution CBPs have been broken down into work flows showing their activities, triggers, and data flows.
Financial Services Function Model (FSFM)has up to 90% of the

functions for any particular institution
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Financial Services Workflow Model (FSWM)provides a set of business

process workflow Components that contain over 4,000 commonly identified activities
LoanSuitedeveloped by Lotus and IBM as a services engagement that helps financial institutions gain efficiencies across the entire lending process Application Development Suite
IFW was developed in partnership with leading financial institutions worldwide. It is a proven tool that provides a set of pre-defined enterprise models for analyzing, structuring, and reusing information entities that bring a dramatic reduction in project time. It can be used to help structure information change and at the same time provide business flexibility. As much as 80% of requirements and design work for many projects is pre-defined. The deliverables from IFW are structured in a way that makes it easy to tailor them to meet the other 20% of requirements, thereby resulting in great improvements in productivity.
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6.28 Help Desk

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Companies in todays global e-business environment are transitioning from traditional problem-oriented help desks toward integrated customer service centers. A business-oriented help desk can give them a competitive advantage by delivering responsive, cost-effective IT support to their end users. This offering uses IBM's expertise, enhanced best-practices methodologies, process and knowledge guides, and training to help both enterprise and mid-market companies quickly assess, architect, and implement an IT infrastructure support Solution with an immediate ROI.

A clients e-business initiative will need a support organization that can work with the software used in its IT environment. IBM Help Desk Services can provide the following:
AssessmentIBM reviews the environment, service options, and current help desk to offer Solutions that fit the clients individual needs. Planning and designIBM helps the client design a customized, scalable help desk Solution that balances people, process, and technology. ImplementationIBM provides rapid deployment of the right help desk Solution using industry-leading application software. Remote supportIBM incorporates traditional processes and technologies
with Web-based support and self-service. By taking advantage of Help Desk Services, the client can improve customer satisfaction, reduce service costs, and refine infrastructure resource management to better understand the impact of changes across the enterprise.
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6.29 Hosting/Outsourcing
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
The Data Hosting/Outsourcing component lets a business off-load the operation of its IT systems, Internet-based applications, and processes so that it can focus on what it does bestproviding financial services to its customers. The e-business revolution is impacting this component, transforming outsourcing from what was once just a cost-effective means of data center management into an integral part of business strategy.

IBM industry experts work with clients to evaluate their business objectives and identify which IT operations can be outsourced for competitive advantage, thus freeing them from the cost of keeping up with rapidly changing technology, constant retraining, and recruitment in a marketplace where IT skills are in short supply. We are increasingly combining traditional outsourcing deals with major BIS consulting engagementsa winning combination that delivers high value to customers and big signings to IBM. This component also includes our services in the growing market for e-business hosting. As companies migrate business processes to the Internet, IBM's Web hosting capabilities support their Internet-based applications, transactions, and storage requirements. Customers can choose a range of hosting optionsfrom simple co-location to complex, integrated Web-hosting Solutions to application service provider platforms. This component includes: Co-location facilities Management services Fully-managed services
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e-marketplace hosting services Managed storage services ASP hosting services
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6.30 Insurance Application Architecture (IAA)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
IAA is a generalized business model for the insurance industry that was developed during engagements with more than forty insurers and eight ISVs worldwide. By defining a standard model for representing and managing all information, IAA helps insurance companies create and maintain a single viewnot only of their clients, but also of their entire enterprise.

IAA provides a set of five proven Solution models, related modeling guides, and documentation. Together, they can be used to jump-start the development of consistent and flexible applications across the insurance enterprise. These models allow for the design of the business systems infrastructure that provides the flexibility required to react in a timely manner to market dynamics or to accommodate changes in corporate strategy. IAA helps create a map of existing systems, facilitates the integration of legacy business applications with new e-business applications, and is an indispensable tool for creating common data management and customer-centric applications. It enables customers to streamline business processes, while cutting development time and costs.
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6.31 Insurance Information Warehouse (IIW)

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Overview
IIW is both an infrastructure and a Solution suite designed to help insurance and financial services providers make the best use of the data that flows into and out of their dispersed systems. IIW creates a data warehouse that works on two tiers by providing consistent information at both the enterprise and departmental levels. This ensures that people across functions and across the organization will have access to the same information, presented in the most appropriate way for each business use. Using IIW, insurance and financial services providers can refine decision support in nine key business areas: 1. Campaign management 2. Segmentation management 3. Customer management 4. Customer retention 5. Product management 6. Profitability analysis 7. Risk pricing 8. Underwriting 9. Claims analysis IIW supports the IBM DecisionEdge Relationship Marketing family of products, an integrated suite of IBM and Business Partner offerings that focuses on CRM. Developed specifically for insurance and financial service providers, these industry-focused offerings are available separately or as part of the IBM CRM Solution Suite. Based on IAA, these tools include:
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The IIW infrastructure Campaign Management Quick Start, with Valex and IBM Intelligent Miner for Relationship Marketing Underwriting Profitability Analysis (UPA) Customer and Prospect Optimizer (CPO) Additional application demonstrators and analysis tools Associated data propagation tools and services

IIW enables companies to gather, refine, and use information to serve customers better and to compete more effectively. With IIW, companies can progressively implement a timely, scalable, enterprise-wide data-management environment efficiently and cost-effectively with a set of integrated functions and tools that include: A stable, flexible architecture for building and managing a corporate data warehouse A starter set of comprehensive, industry-specific models and databases that address common insurance company activities The IAA data model Applications and samples for supporting business intelligence in specific business areas, including: Risk Pricing Campaign Management UPA CPO Associated mapping files for complete data traceability Substantial architectural, technical, and project route-map documentation Scalable hardware and software Worldwide IBM service and support
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6.32 Integrated Voice and Data Networks

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Strategy
Overview
Effective customer contact management requires the integration of voice communications with the data transactions being processedwhether the voice originated through a telephone, interactive voice response system, or across a Web session. Efficiency requires integrating human resources across dispersed locations and business units.

IBM with its business partners and ISVs can design, develop, and implement integrated networking architectures that are appropriate to the clients business and customer strategies. Outsourcing is also available for network management. IBM brings assets and systems integration skills built around Computer Telephony Integration, Interactive Voice Response, and Contact Center Web Enablement to deliver these solutions.
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6.33 Integration Hub

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Overview
Also referred to as a message broker, this is a software hub that manages the exchange of information between applications that are either publishers (senders) or subscribers (receivers) of messages. The hub serves as an integration layer between the customer access channels and the back-end operational or legacy systems. The important Integration Hub Components include: A messaging architecture that uses industry standards for participation and routing Message and transaction management that provide real-time as well as asynchronous flows A business rules engine allowing message processing based upon the unique requirements of the business This rules engine can direct immediate and real-time transactional requests and responses or delayed (asynchronous) responses for process management (workflow) applications. A data transformation Component for developing application-specific adapters These adapters convert the data formats and applications semantics from the sending application to the receiving application. Security that can integrate into the end-to-end security of the enterprise A robust set of tools that permit the system to be managed Configuration, problem isolation and recovery, and performance tools
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As customers rapidly create and deploy new e-business Solutions, the Integration Hub addresses the need to provide: A mechanism to automate new business processes by hooking applications together to provide integrated solutions A mechanism for leveraging existing applications in new wayse.g. 24x7, interactive online selling, B2B, or B2C exchanges Isolating new front-end and back-end systems where the systems need not know about each other Platform independence that facilitates integration by translating between different systems A packaged framework that provides a quick-start for implementation The Data Integration Hub Solution solves a score of significant client business and technology issuese.g., merger and acquisition transitions, managed conversions from older legacy systems to new technology platforms, and integration of ISV packages into the existing IT environment. IBM has designed, built, tested, and deployed data integration hub and adapter Solutions, both internally within IBM and externally in clients infrastructure. Using our FSS Center of Competence, our Common Adapter Factory in Charlotte, and our Multi-Industry Center of Integration in Dallas, you can readily demonstrate to any client our experience, current asset base, professional skills, and framework.
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6.34 Intelligent Miner

Key Dimensions
Infrastructure
Overview
IBM DB2 Intelligent Miner Scoring Services, an option with DB2 Universal Database, is a data mining application that allows companies to rank customers according to a set of pre-determined criteria and makes it easier for businesses to develop targeted, personalized treatment for customers and suppliers. Mining models can be updated dynamically, allowing continuous improvement in business results without disrupting production systems. Because Intelligent Miner eliminates the need for developers to program to low-level proprietary APIs or to understand arcane data formats, it is easier for them to recompile and re-link mining models to application programs. Built as a DB2 Extender, the new scoring services directly integrate data mining technology into the RDBMS for rapid application development/deployment and faster application performance. Data mining is behind many IBM advancements, and Intelligent Miner can be utilized as a powerful tool to gain new business insights. It also positions companies to become better equipped to make insightful decisions through more precisely-developed targeted marketing campaigns, reduction of customer attrition, or increased e-commerce revenues. Intelligent Miner offers a broad range of capabilities to meet new business challenges. Key product features include: Mining functions that address a wide range of business problems Discovery of unknown patterns and rules and a prediction of future behavior based on past performance Innovative graphical visualization of results, powered by DB2 A single framework for data mining that iteratively prepares, analyzes, and mines data, with assimilated and disseminated results
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Development of mining models deployed to operational applications Scaleable client/server architecture Proven implementation for large-scale and parallel data mining Core technology for data mining Solutions Open interfaces for customer, IBM, and partner Solutions and proponents of new data mining standards

Intelligent Miner provides the following capabilities: Incorporating mining analytics into BI, e-commerce, and OLTP applications Serving business and consumer users alike to provide more informed recommendations, alter a process based on past behavior, and build more efficiencies into the online experience Adding breadth and depth to scoring functions for advanced mining models Enabling enterprise-wide access to cataloged results Vendor, Solution provider, and customer visualization through standard XML format Scalable Solutions, with the ability to score everything from the individual case to large amounts of data Interfaces with other IBM BI offerings An interoperability strategy, realized as vendors and customers alike adopt new industry standards for data mining objects and programmable interfaces
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6.35 Kana Customization

Key Dimensions
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Overview
ISV
IBM and Kana Communications have formed a global strategic alliance to integrate Kanas Web-architected enterprise relationship management Solutions (eRM) with IBMs e-business capabilities. Together, IBM and Kana deliver comprehensive e-business Solutions for managing interactions and relationships among customers, business partners, and the enterprise across communication channels. This alliance offers Components from IBMs Application Framework for e-business, initially including the following IBM hardware platforms Netfinity (NT) RS/6000 (AIX and client devices) In addition, key IBM software products will include: DB2 Universal Database MQSeries WebSphere Commerce Suite WebSphere Application Server Selected voice systems products such as CallPath The entire Kana suite of products will eventually be integrated into the IBM e-business infrastructure.
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This Solution combines Kanas industry-leading Web-architected eRM application software with IBMs industry-leading e-business Solutionsincluding its world-class server, database, middleware, and e-commerce technology. As a result, the customer is able to more rapidly deploy best-in-class, integrated application and technology Solutions, thus reducing overall costs and time-to-market. Kana is part of a relatively new group of e-business software companies including BroadVision, Vignette, and E.piphanythat have been very successful in addressing the unique interaction and relationship management requirements of companies now in the eBS economy. Kana is recognized as having the broadest and most flexible set of integrated Web-architected applications for managing relationships with customers and partners across interaction methods (self-, virtual-, and assisted-service) over communication channels such as e-mail, the Web, and wireless, as well as traditional channels like phone and in-person. Kanas business applications include marketing, sales, and service. It has further solidified its leadership in this market through its Web-architected e-business. Kana products include: Communication applicationsKana Response, Kana Connect, Kana Advisor, Kana Assist, Kana Chat, Kana I-Mail, Kana Voice, and Kana Phone e-business applicationsKana Service, Kana Commerce, Kana eBusiness Platform, and Kana Conduits Kana has English, Japanese, German, Chinese, French, and Spanish language versions. The IBM/Kana connection is a global relationship, with joint selling and marketing activities worldwide. EMEA, the US, Japan, and Australia were initially covered, with support in other countries soon to follow.
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6.36 Knowledge Management

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
In today's emerging e-business economy, a firm's ability to identify, capture, and leverage its knowledge is key to gaining a competitive edge. Knowledge Management (KM) is the process of leveraging and utilizing the vast, untapped potential of both tacit and explicit knowledge to achieve optimal performance. While tacit knowledge (insight that is implied and more difficult to represent) varies from explicit knowledge (represented in artifacts such as books, documents and techniques), both are equally important for improving organizational performance. Knowledge management enables individuals, teams, and communities to exchange and optimize their knowledge and experience. IGS knowledge and content management consulting offers a portfolio of services and Solutions based on three discrete capabilities: 1. Content managementKM organizes and puts data into context, converting raw information into actionable knowledge. 2. InfrastructureSoftware and systems are not a KM catch-all, but a vital Component enabling the sharing of knowledge and streamlining operations. 3. Culture and learningKM means re-evaluating assumptions about the way a client does business. These offerings enable organizations to develop knowledge strategies, identify KM opportunities, prioritize business goals, and deliver knowledge-based Solutions. The following are example offerings:
Corporate PortalsIBM builds tailored, comprehensive, fully-functional

corporate portals.
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Customer Relationship Content ManagementIBM increases customer

service responsiveness with Customer Relationship Content Management.
Community Based ServicesIBM develops physical and virtual communities

for problem solving, knowledge exchange, and knowledge creation.
Institute for Knowledge Management (IKM)IKM, of which IBM is a member institution, conducts action research in coordination with over 30 member organizations aimed at advancing the discipline of knowledge management. Community Knowledge PortalIBM helps organizations improve the productivity of knowledge workers by providing one-stop, integrated access to enterprise information. Knowledge StrategyIBM plans for KM include:
Putting people first Building for scale Mixing the physical with the virtual Spreading the KM story Staying on target (i.e., winning)
Human Capital ManagementKnowledge is power, and power is in the people. IBM helps clients get a grip on this new way of approaching business. Intellectual Capital ManagementBuild a brain trust. IBM helps the client identify and retain the best people and ideas. Organizational Network AnalysisKnow what you know. IBM offers the
means to measure knowledge flow in an organization, root out inefficiencies, and build decision/innovation networks.
Competitive IntelligenceUnderstand what the competition will do, and be

able to assemble the right people for the right response. IBM offers the methods and tools to size up the competition.
Knowledge Retention in Mergers and AcquisitionsIBM helps transform perceived added values into real knowledge boosters. Knowledge Disclosure through StorytellingIBM gets the client talking,
turning tacit knowledge into the explicit through storytelling.
Knowledge Management Technical ServicesIBM offers experienced

technical services.
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Physical assets alone no longer measure an organizations strength. Today, experiences and insights are the most critical elements of a successful portfolio. This knowledge is not housed in the organization, because knowledge lives in people. KM focuses on ways of sharing and storing the knowledge of individuals as a means of improving the competency, speed, efficiency, and profitability of the larger whole. IGS KM Consulting offers the experience and resources for end-to-end knowledge and content management Solutions. Here IBM and Lotus hardware and software products provide the infrastructure to facilitate collaboration and maximize intellectual property. As a critical initiative for effective global knowledge sharing, IGS KM provides: The means to gather, evaluate, structure, and distribute intellectual capital Networked communities of professionals with defined roles and responsibilities Technology that enables global sharing Incentives to encourage intellectual capital contribution and reuse Measurements for monitoring knowledge usage and its value to the organization
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6.37 Market Analysis and Strategy

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Strategy
Overview
Choosing the right customer segments to pursue, developing value propositions, extending off-line brands to the online world, and identifying best practices for customer acquisition and retention encompass some of the most important strategic marketing issues facing businesses today. The IBM Global Marketing Strategy Practice delivers practicable business solutions backed by data and research. IBMs capabilities revolve around three main areas:
Marketing strategy Business metrics and measurement Behavior prediction

With its unique hybrid of marketing strategy and research capabilities, IBM helps its clients craft a strategic marketing plan that is all about building market share, increasing profits, understanding customers, and sustaining a competitive advantage. This is a new consulting offering at a business rather than IT level. The target audiences are client C-Officers and Senior Leadership, with capabilities outside IBMs traditional core competencies. Nine Marketing Strategy offerings are listed below that provide IBMs clients with powerful front-end capabilities to drive new business.

The Marketing Strategy Practice offers the following services to help clients understand and manage their businesses: Market structure analysis
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Target audience and market segmentation Customer satisfaction, loyalty, and retention New product and service innovation Brand valuation Brand-building architecture Predictive modeling and market simulators Financial and econometric modeling This practice uses advanced qualitative and quantitative tools to collect and analyze market data. All services are managed in-house to ensure the highest quality and complete confidentiality and reliability. IBMs Marketing Strategy uses the following types of qualitative research: Focus groups (consumer, business, expert delphi, diads, triads, and mini-groups) Executive and peer interviews One-on-one in-depth interviews Interactive consumer and business panels Interactive diagnostic evaluations For quantitative research, this practice utilizes a wide variety of data collection methodologiesincluding the Internet, e-mail, telephone, and computer-aided. IBM also has a unique data collection technique called Rapid Analysis Measurement System (RAMS) to capture user response and instantly display results to the moderator and clients. In addition to instantaneous feedback, RAMS offers flexibility, eliminates bias, creates interactivity, and enables sophisticated analysis. Once data is collected, IBM utilizes a variety of statistical techniques to analyze it, choosing the most effective based on research objectives and even building new statistical models to fit specific needs.
For more information contact Todd Gurley or Paul Hoagland (Marketing Strategy Practice Principals).
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6.37.1 Market Structure Analysis

Market Structure Analysis presents clients with an understanding of market dynamicshow the market functions, who the key competitors are, and when changes to that market might occur. It reviews the market from an objective third-party view, with short- and long-term perspective, and provides insight into a variety of factors, including: Customers Suppliers Distribution channels Regulatory environment Technology e-business activity Brand positions Product offerings Promotional activities Pricing strategies Financial review Market Structure Analysis is fact-based and driven by data collected from multiple sourcesin many cases, data IBM obtains that the client cannot.
Tips for ConsultantsBe savvy. Asking the right questions is the key to demonstrating an understanding of marketing strategy. The following are a few questions you might want to ask.
Who are your key competitors and how are they positioned in the market? What market positioning do they hold? What is the impact of this positioning on your brand? How do your end users consume your product, and what are the decision processes they go through? Describe how the market is changing in terms of product mix, distribution channels, and pricing strategies. What organizational changes have the dominant players made recently that might affect strategy?
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Market structure analysis adds valuee-business created new market

definitions with new players, positioning, brands, and market behaviors. It is critical to understand these new realities within the context of more traditional views. Market structure analysis is fact-based and driven by data collected from multiple sources. It does not rely on instinct, speculation, or preferences of one group of stakeholders.
6.37.2 Target Audience and Market Segmentation

Segmentations value is that it places customers first in defining, designing, and refining products and servicesthereby allowing clients to more quickly, accurately, and cost-effectively meet the needs of the marketplace. Target Audience and Market Segmentation reviews a clients market segments and the potential each segment represents in terms of size, profitability, and loyalty. It offers both online and off-line companies valuable insight into present marketing strategies, identifies market sub-segment and niche opportunities, and serves as the foundation for defining the clients optimal marketing communications mix.
Tips for consultantsAsk good questions. The term segmentation carries a

variety of meanings for marketing professionals and can be executed using several analytical approaches. To ensure an understanding of client expectations as well as current levels of segmentation, the following are a few questions you might want to ask. Can you define your target audience in terms of segments? What are those segments and how do they differ? Do you know more detail than simply demographic/firmographic information? How do your segments differ from those of your key competitors? What is the level of potential for each of your segments? How do you reach your target audience? Does your database include a segmentation scheme? When was the last time that segmentation information was updated?
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The customer is king Just as understanding the market in which a company

operates is important, so is understanding the customer. Market segmentation provides not only an analysis of the market segments that exist, but also the potential each segment represents in terms of size, profitability, and loyalty. Segmentation provides valuable insight into present marketing strategies. By providing a systematic approach for controlled market coverage as opposed to the scattered approach of mass marketing, Segmentation serves as the foundation for developing cost-efficient and effective marketing communications with the optimal communication mix. Personal sales processes can be improved by providing account representatives with customer profiles that include appropriate sales materials and strategies.
6.37.3 Customer Satisfaction, Loyalty, and Retention

The IBM process is designed to help clients understand how to move toward a closer match between the companys performance and a customers expectations. Engagement results identify ways in which operational issues, offerings, pricing, and resource allocation can be addressed to improve retention of core business and reduce potential customer migration to competitors.
Tips for consultantsLearn what is mission-critical. The pace of business evolution has placed increasing time pressures as well as penalties on businesses for not understanding customers. Asking the right questions is the key to demonstrating an understanding of customer satisfaction, value, loyalty, and retention. The following are a few questions you might want to ask:
What are the drivers of satisfaction and loyalty for your organization? What is the importance of each driver or combination of drivers for each product and service? How do you measure and quantify internal and external performance levels? Describe how you identify the most important gaps between customer expectations and company performance. What investments are you making that are necessary to bring customer satisfaction to minimum threshold events? What incremental investments have you avoided that yield no benefits to customer satisfaction, loyalty, and retention?
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Know the customers customersIt is important to remember that achieving customer loyalty is not an objective. It is a way of doing business that ensures continued company growth and success in the future. Once maximum customer loyalty is achieved, it must be maintained. The purpose of a customer satisfaction, loyalty, and retention process is to continually provide the information needed to keep customer loyalty at the maximum potential level within an ever-changing competitive environment.
Many clients believe they know the level of customer satisfaction in their organizations, but you should challenge them to address why customers switch and to determine effective uses of resources to impact customer loyalty and retention. The IBM approach provides a competitive advantage by focusing resources, enhancing operations, and understanding switching behaviors.
6.37.4 New Product and Services Innovation

At IBM, our six-stage gated process for product and service evaluations reduces the risk involved with new product and service development andultimatelyintroduction. At each step throughout the process, clients are able to confirm and reconfirm the markets response to a new product or service concept and gain insight into the customers intended behavior.
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Tips for consultantsReduce the risk. With the high failure rate of new
products and services, clients want to ensure they make the right investments in launching new products. The following questions might help you determine if enough consideration has been given to a particular product or service. When is the last time your organization introduced a significant new product or service to the market? Are you keeping pace with the product/service innovations of your primary competitors? What is the market potential for the new product or service you are about to introduce? What are the product alternatives? How are they priced, and how are they positioned? What is the willingness to pay? How much? When? Does this service lend itself to a recurring revenue price structure, or to a one-time-fee price structure? Do customers perceive the services as being too complicated to use? If so, what can be done to simplify them? Is this a barrier to buying? What organizational changes have been made to support this product/service in terms of rollout and ongoing management?
A disciplined process creates value

The successful development and market entry of any new product or service requires a disciplined approach. This will ensure that clients accurately identify and fully develop market-driven, customer-focused opportunities for profitable new products and services, rather than only those supported by key stakeholders. IBM clients benefit through training in the new product and service innovation process. Not only does this process achieve a single successful trial and rollout of a new service, but it also will establish a permanent disciplined process to enhance clients marketing strategies for all new products and services.
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6.37.5 Brand Valuation

This allows a business to understand from a market perspective its current brand definition, its brand position relative to competitors, and the performance of its brand on key indicators. The process includes three major componentsbrand measurement, brand mapping, and trend analysisand identifies the strengths and weaknesses of a brand as well as trends in the marketplace that have led to that current brand position.
Tips for consultantsEveryone has a brand. Whether its a dot-com, an industrial manufacturing company, or a not-for-profit firm, all clients have brands that must be managed. The following questions might prompt the client to look at the issues surrounding brand image:
How do your most important customers view your brand? How is that view different from their view of your closest competitors? From your own view of your brand? What is the markets perception of new competitors that have entered it? Do your online customers have the same expectations of you as your traditional customers? What permission does the market give you to provide new and different offerings under the same brand name?
Brand valuator adds value

Many clients have very passionate ideas of who they are and what they can offer the market. Strategically, there is no substitute for validating or invalidating these ideas with a market perspective. If there is a large gulf between a clients self-perception and its perception of the market, strategic initiatives must be altered in order to avoid severe opposition. A clients brand does not exist in a vacuum. A brand has no meaning except as it exists relative to its competitors. The brand valuator process looks at the clients brand in relative space and shows the distance of one brand from another. If the clients impression of its brand is correct but five other brands occupy the same space, no competitive advantage results. The qualitative approach to the brand valuator process adds value by providing objective third-party and limited-market perspectives on the assumptions under which the client operates. However, the quantitative approach has the significant advantages of 1) allowing the client to understand the more subtle nuances among the brands in the market and 2) providing information that can be projected across the entire universe of customers, competitors, and other stakeholders.
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6.37.6 Brand Building Architecture

This process helps clients determine how to build a brand strategy for the future. Using leading-edge research and brand strategy techniques to link concrete product/service attributes, distribution channel delivery methods, and marketing activities, this methodology determines the brand associations that make up the brand image. It also links competitive brands to the concrete components with which they are most associated. With this information, IBM helps the client identify the most desirable brand position available and develops strategies for molding the brand to reach that position.
Tips for consultantsMoving the brand. There are a number of questions you can ask to prompt a client to discuss what makes up its brand and the need for its brand to move.
Why is your brand perceived as it is? What factors play into that perception? Is the current perception of your brand what you would ideally like it to be? How has your brand image changed in the past five years? In the past year? Does your brand image allow you to perform as you would like non-linearly? What impact does your brand have on the products/services it endorses?
A worthwhile process
The Brand Building Architecture process provides something for which clients have only an intuitive sensethe components that lead to its brand image. Even when clients have a good understanding of their image, they often do not completely know why that image exists. The leading-edge technique developed by IBM provides that information and helps the client understand what it can do to alter its brand image. The closer a brand is tied to customer values, the stronger the brand position. Values do not change easily, so linkage to positive customer values is a sustainable competitive advantage. This approach identifies the connections between concrete attributes, brand associations, and related customer values.
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6.37.7 Predictive Modeling

Predictive Modeling and market simulators allow us to predict the impact that changes in product, price, promotional strategies, and other factors will have on specific customer segments. Predictive models help businesses understand the factors that influence their customers decisions to buy a product or service. Market simulators let the client see first-hand, through real-world situations, how changes in a product feature or characteristic can affect customer preference and loyalty. When carefully developed, simulators not only predict change for the client, but anticipate change in market share for both the client and its leading competitors.
Tips for consultantsBe prepared. Asking the right questions is the key to
demonstrating an understanding of the value of predictive modeling to your clients. You might want to ask questions similar to these: What are your key customer segments, and how do you determine the segments in which new customers belong? What is the impact on market share if you alter the pricing strategy? The product? The distribution? The bundling of your services? How much data are you currently collecting on your customers? Do you have data overload? How important to your company is the ability to predict customer behavior, customer loyalty, and customer preferences?
The value of predictive models and simulators

Although the ability to predict has been used throughout history, the advent of high-speed computers has made it possible to construct sophisticated statistical models. A variety of techniques are utilized, but the outcome is one that non-statisticians can appreciateanticipated changes in market share for both clients and leading competitors. Through predictive modeling and simulators, clients are able to place customers in an overall market segmentation scheme. This allows clients to tailor customer communications and to more finely focus strategic marketing efforts on preferred customer segments. Updating the predictive model and simulator is a critical success factor. As changes to the marketplace occur at record speed, the model can be enhanced and predictability improved through continuous inputs of pertinent information.
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6.37.8 Financial and Econometric Modeling

The IBM Financial And Econometric Modeling process provides clients with an acute understanding of the financial impact of their business decisions. This modeling is often used for clients interested in: Developing new products and services Evaluating build or buy options Assessing new markets of opportunity Determining the financial viability of current or new enterprises Creating business plans Measuring financial performance Establishing return on investment
Tips for consultantsFinancial savvy. Clients who cant answer these few questions should quickly see the value of financial modeling:
What percentage of your potential customers will buy your product or service immediately? Within 30 days? Within 90 days? At what price point will you achieve maximum market penetration? What is the market opportunity for this new service? The market size? The market potential? The available market? How long will it take to recover your investment? How will a new competitor impact your revenue stream, now and future?
Valuing financial and econometric modeling

Many clients make decisions without understanding the financial and economic impact of those decisions. IBM offers an approach to financial and econometric modeling which provides clients with an acute understanding of financial impact while encouraging decisions to be made in a timely fashion. Financial and econometric models produce quantitative results based on numerous financial performance metrics. Many of these metrics are readily available from the clients themselves or from secondary sources, significantly reducing the time necessary to perform the modeling and allowing for rapid go-to-market strategies. The market economics in todays business environment are complicated by the introduction of e-business. Financial and econometric modeling incorporates tools that address the product or service life cycle from both traditional and e-business perspectives.
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6.38 MicroStrategy
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
This is an IBM Business Partner product that provides a robust Internet platform for online analytical process (OLAP) reporting, data mining, and information distribution. Working in tandem with a data warehouse as its sourceusually IBMs UBD/DB2MicroStrategy enables multi-dimensional analysis and other BI Solutions by providing query/report access through Web browsers or Microsoft Windows clients. Besides query, data-mining, and reporting capabilities, MicroStrategy Components can add security, enhance performance, provide standards, generate proactive report delivery, and provide analytical CRM applications. There are several products performing different services:
MicroStrategy Web the HTML interface DSS Agentfor power analysts performing complex mining, workflow, or application development Narrowcast Serverdelivers personalized messages MS Transactormessage delivery via the Web, wireless, PDA, pager, or
voice
MS Intelligent Servera server optimized for major relational database load

distribution, prioritization, and system tuning for large-scale implementations
MS Architectfor application development and modeling and for capturing business rules
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MicroStrategy provides a robust, intelligent e-business platform for analyzing large amounts of data, mining this data to find answers to critical business questions and deliver them to the enterprise, a supply chain, and/or a consumer via the Web, wireless, or voice technologies.
Other capabilities include:

Research distribution Trade floor reporting Wireless trading Sales analysis Customer life-cycle analysis Profitability Credit risk Marketing automation e-CRM Financial analysis Insurance analysis
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6.39 MQSeries/MQSFSE
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
These middleware products rapidly interconnect different systemsfrom front-end to legacy, front-end to front-end, or front-end to outside services. This allows the re-use of interfaces and avoids the time and expense to redesign and rebuild, bringing the flexibility required to respond effectively to rapidly-changing e-business conditions. MQSFSE (IBM MQSeries Financial Services Edition) is specifically built to support financial applications. The MQSeries family comprises five key elements: 1. MQSeriesthe core of the MQSeries family. The base messaging servers and clients provide once-and-once-only message and queuing capabilities on over 35 platforms. 2. MQSeries Adapter Offeringprovides a framework and tools that build and customize MQSeries adapters for existing and new, pre-packaged, or custom-developed applications. 3. MQSeries Everyplaceextends the capabilities of MQSeries base messaging to remote servers and to mobile workers using laptops, PDAs, and telephones. This includes all the benefits of MQSeries messaging, including security. 4. MQSeries Integratorcombines a one-to-many connectivity model, plus transformation, intelligent routing, and information flow modeling. It facilitates the development of new application services that comprise the functions of multiple, disparate, existing business systems. 5. MQSeries Workflowa business process management system which facilitates the rapid development and management of the business processes that integrate services provided by the IT and organizational infrastructures of the company
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MQSFSE integrates business process applications within an enterprise, thereby enhancing customer loyalty, online selling, and back-office administration. It comes with a working, customizable model of key insurance business scenarios.

This Component solves the following problems through providing the customer with the means to integrate its systems for e-business: Redundant integration implementation for the same functionality The ripple effect when one application changes No single place administratively to view and manage integration points Maintenance complexity when new applications are added to the architecture
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6.40 netCallCentre
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is an ASP offering to outsource the development of call centers. netCallCentre makes it possible to incorporate advanced call center functionality without incurring large capital costs, saving up to 75% over the cost of a typical Solution the client might implement on-site. IBM offers a pay-per-use pricing structure, making it a more flexible and scalable outsourcing agreement. As campaigns are launched or seasonal requirements change, adjustment to the Solution can occur to ensure maximum value to businesses large and small.
netCallCentre essential equipment and software resides at IBMs Strategic Outsourcing Service Delivery centers. It is operated by skilled technicians having experience with many complex customers, including many of the large Canadian banks. Through capacity analysis, IBM can monitor system usage and add additional capacity to ensure that committed service levels are always met.

The underlying netCallCentre technology is: 1. ScalableThis architecture proved its capability to scale by exceeding 110,000 Web hits per minute. 2. FlexibleThe netCallCentre Solution can be customized by choosing from a range of basic or advanced call center functions. A client can pay as they go or request an equal billing plan if preferred to minimize monthly billing fluctuations.
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3. ReliableIBM can provide 99.999% availability. All of the critical Solution Components are monitored by Tivoli and Netfinity. IBM operations personnel are immediately notified in the event of any Component hardware or software failure, and each critical Component has a hot backup. In the event of failure of any single IVR Component, a similarly-configured Component automatically takes over until the problem is corrected. 4. OpenA client can integrate a wide range of leading CRM Solutions with netCallCentre, including Siebel and Onyx Solutions. netCallCentre also supports multiple computing platforms, both IBM and OEM. In addition, it supports multiple application environments, including client/server and host-based. IBM provides full support for implementing and maintaining the application software as well as the entire hardware infrastructure. 5. AdaptableA customer can make many changes to its netCallCentre Solution almost instantly. The IBM netCallCentre Service is comprised of the following features, packages, and options:
IBM netSelfServe FeatureThis is for tenants wishing to provide automated self-help services to their customers.
The netCallCentre Infrastructure utilizes IBMs DirectTalk for AIX as its VRU platform. All features are dependent upon that platform.
Custom Voice Response Unit PackageThe IBM netSelfServe Custom

Voice Response Unit Package provides for the allocation of a set number of VRU ports as specified in the order. This package provides the capability to implement custom Solutions that run on the IBM netCallCentre Infrastructure in order to exploit supported functions of the packages and options purchased.
Overflow VRU PackageThe IBM netSelfServe Overflow VRU Package has

the same capabilities as the Custom VRU Package, but is contracted for a one-year term to allow for exceptional circumstances. An example of an applicable overflow function would be a mechanism for gathering lists of callers that would otherwise wait in queue for agents during extremely busy periods.
Faxback OptionThe IBM netSelfServe Faxback Option requires the

Custom VRU Package. This Option provides the capability for the client to implement Custom Solutions that enable faxing of electronic documents to customers at their request.
IBM netCallCentre FeatureThis provides Computer Telephony Integration (CTI) capabilities between the IBM netCallCentre Infrastructure, the IBM netCallCentre client software installed on Agent workstations, and the telephony switch providing service to Agents.
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Entry PackageThe IBM netCallCentre Feature Entry Package provides core CTI functions for the clients call centers, including:
Client-customized DNIS2-based call routing, a client customized softphone application that provides typical telephone functions and screen pop-up data sent with a voice call A monitor application that allows the customer to view the status of calls, queues, and agents Statistical and summary reports accessible through a Web browser interface
Advanced PackageThe IBM netCallCentre Feature Advanced Package provides all the capabilities of the Entry Package plus support for skills-based routing. ProfileIVR OptionThe IBM netCallCentre ProfileIVR Option requires either
the Entry Package or the Advanced Package and provides for the allocation of a set number of VRU ports to the client, as specified in the clients order. The ProfileIVR application can then use this information to route the call to a destination that the customer has defined, based on the callers response.
Virtual Call Center OptionThis requires either the Entry Package or the Advanced Package. When configured by IBM, this option provides the ability to share calls between customer call centers in different physical geographies such that the multiple locations work together in a singlevirtual call center for the purpose of call routing and load balancing. Callback OptionThis requires the netSelfServe Feature Custom VRU Package and the netCallCentre Feature Advanced Package. This Option provides the customer with the capability to implement custom Solutions enabling callbacks as an alternative to waiting in a queue.
Dialed Number Identification Service
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6.41 Onyx ASP

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
Like Siebel ASP, Onyx ASP is an IBM partnership for delivering packaged CRM applications more quickly, easily, and successfully. This offering results in a robust, scalable architecture permitting the customer to expand its CRM capabilities as its business needs change and grow without tying up major capital resources. Onyx Application Service Providing (ASP) Solution includes: A comprehensive suite of Onyx CRM software High-availability IBM hardware Ongoing end-to-end IGS support

This Component provides an enterprise-wide, customer-centric e-business Solution that will enable the client to: Share information more effectively Obtain timely, accurate updates on business results Build greater customer loyalty Gain a competitive advantage through improved customer service Everything is bundled together for a fast implementation, requiring minimal up-front investment. The client pays only for the services used. As its needs change and grow, services can quickly and easily be ramped up.
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Onyx 2000 strikes a fine balance between functionality, speed to market, and implementation costs. This rich comprehensive Solution can combine customer data from traditional business processes as well as nontraditional Internet and e-business processes. Onyx consolidates critical relationship information through three audience-specific, Web-base product lines:
Onyx Employee Portalprovides CRM functionality integrated with direct

links to relevant Internet sites and complementary third-party applications. Users no longer have to open and close multiple applications to access the information they need.
Onyx Customer Portaldelivers a wide range of e-marketing, e-commerce, and e-service capabilitiesfrom online catalogues and surveys to order processing to Web self-help applications. Onyx Partner Portalgives the client powerful capabilities for collaborating
more effectively with partners. Capabilities include collaborative selling, e-commerce, and customer service. The Onyx ASP Solution will play in all sectors where Onyx 2000 fits. These include but are not limited to Finance, Public, Distribution, Telecommunications, and Industrial.
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6.42 Operations and Process Design for Interactive Transactions

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Re-engineering from batch updates of silo product files such as policy and account records to interactive updates and queries at multiple touchpoints requires a number of changes in a business. Both processes and technology must adapt to achieve this transformation. IBM can help the client with a coordinated approach across both business domains.

Resources drawn from a number of specialized IBM practices execute this Component. A large benefit to the customer is that we can bring together the interdisciplinary team required to perform such an engagement. IBMs business transformation consultants take the clients business and customer strategy statements and build new process models that reflect the desire for interactive transactions from multiple points. Process designers have a jump-start in that we already have process models for each major industry in the Financial Services Sector. Object modeling engineers translate core transactions into processing object models, and from these create the actual objects themselves in platform-independent code. Often we can bring in components that have already been developed for the industry. These objects can then be used as adapters for a messaging hub that we can create using MQSFSE. This allows front-end processing of transactions either without or before legacy applications are re-engineered.
Process
People
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6.43 Pervasive ComputingMeB

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is IBMs MeB (Mobile e-business) consulting offering to help clients define visions which include seamless integration between devices, networks, and data to provide their customers with the ability to transact business from any location at any time. Seamless integration among devices, networks, and data allows for Where I Am or Location-based services, which are projected to become a key m-commerce driver. Within this consultancy, a Component called Quickstart Engagement Solution is employed.

Organizations can leverage advances in mobile technology to help enhance current organizational performance, increase range and reach, and develop new business models where industry restructure occurs. Companies can significantly enhance existing business processes via the integration of mobile technology. Implementation of m-business Solutions will: Reduce the cost of customer retention Improve customer satisfaction Enable the acquisition of new customers through different channels Provide information concerning which customers to acquire in the Sell and Support applications Business opportunities such as mobile e-marketplaces have significant impact on certain industries. MeB provides tools to enable productivity, mobile workforce, customer service, and mobile enablement of e-purchasing across various industries.
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6.44 Program Management

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a structured method for efficiently managing projects and tasks from conception to end. By applying program management principles, the user will find it easier to sponsor or deliver assignments that are on time and within budget. This includes not only the organization and its processes, but also the capability to manage multiple projects, thereby saving time and money through repeatable and reusable processes.

Using this Component will allow the user to administer the following program stages: Initiating the planning process Gathering the requirements Creating a work breakdown structure Preparing a risk analysis Building an estimate Adding time and resource constraints Engaging, managing, and controlling Documenting, communicating, and closing out
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6.45 S1
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
S1 Corporation is an IBM business partner that provides global Internet-based Solutions for financial organizations (client banks, brokerage firms, and insurance companies). Financial institutions are increasingly looking to the Web as a way to do their banking in order to improve operational and cost efficiencies, and corporate bankers are looking to innovative Web technologies to address that need. S1 delivers Solutions that help financial service providers (FSPs) deliver more value, compete more effectively, and retain their customers valuable business. IBM/S1 comprehensive, end-to-end corporate banking Solutions combine S1 banking applications with IBM RS/6000 servers, MQSeries messaging software, and IBM consulting, customization, and implementation services.

Providing financial services to customers in the way of an integrated and comprehensive e-finance experience poses numerous challenges. The Solution must keep pace with the rapid pace of technological innovation and leverage existing technology investments, while integrating new e-finance technologies and products. The client needs established relationships with leading e-finance companies in order to deliver the variety of products and services its customers want. S1's eFinance Experience provides a comprehensive Solution designed to meet these challenges. The S1 Consumer Suite is a comprehensive Internet Solution designed to meet these challenges, offering: Banking, brokerage, insurance, and bill presentment functionality One-to-one marketing capabilities and content Financial planning tools
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Process
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There is no real advantage in consumers having all of their financial accounts at one FSP if each relationship is treated independently. The S1 Consumer Suite provides the Solution to this problem by offering a consolidated financial services experience. The S1 Consumer Suite offers the following features and functionality: Consolidated financial information provides customers with a complete, integrated picture of their financial position in one convenient, secure locationmaking financial information available with one log-in, any time, anywhere, through emerging technologies and multiple delivery channels. Value-added content provides a wide range of customer-driven contentincluding personal financial data, news and market information, helpful financial planning tools, and money management advice. Personalized products and services offer financial products and services that are tailored to customers' needs, integrated across their financial portfolios, and consolidated to provide a complete financial picture. Aggregation services allow customers to view account information stored on other Web sites.
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6.46 SAS
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
SAS is a statistical application often used in Business Intelligence Solutions where data mining is required. It allows a customer to use highly sophisticated mathematical algorithms to determine statistical proofs and data variable relationships. e-business intelligence Solutions from SAS and IBM encompass the full range of software, hardware, middleware, and services to help the customer: Increase the profitability of customer and supplier relationships Improve operational efficiency Reduce financial and operational risks Solutions from SAS and IBM include:
Customer Relationship Management (CRM)allows companies to analyze

data from all customer contact points, including e-commerce systems, and to turn that data into knowledge in order to understand and predict customer behavior, meet customer needs, and build more profitable one-to-one relationships with customers
International Competency CenterAs an ongoing global commitment to

joint Solutions, SAS and IBM created the International Competency Center, located at SAS world headquarters in Cary, North Carolina. This team of e-business experts at the ICC provides customers and sales teams worldwide with assistance and resources for sizing, design and configuration, benchmark testing, and implementation of a host of SAS software Solutions. These Solutions for data mining, data warehousing, and other business intelligence functions run on leading IBM server platforms under DB2 to meet the unique demands of an e-business world.
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A SAS Solution gives the client the power: To know its customers and increase revenue by: Compiling the customers entire buying historyWeb, branch, telephoneeverything Identifying the clients most profitable customers Predicting future buying behaviors Targeting marketing dollars where the payoff is greatest To know its suppliers by: Lowering costs Consolidating suppliers Identifying vendors that can best meet the customers needs Leveraging its full purchasing power for significant savings
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6.47 Security and Privacy Design and Implementation

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Combined with the power of network computing and the legal risks to companies, the popularity of the Internet is driving companies to focus more on security and privacy. IBM security specialists can help clients better understand information technology and review their e-business security vulnerabilities.

IBM security specialists work with clients to plan, design, construct, and operate security-rich environments for their online applications and transactions. We help clients assess their current security systems and then develop custom architecture to protect both them and their customers. A total security plan would include: Security and privacy assessments and planning Security and privacy architecture and design Security and privacy implementation Security and privacy management
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6.48 Segmentation and Scoring

Key Dimensions
Infrastructure
Complete client view Consistent and personalized product and service delivery Customer facing processes aligned with customer and business wants and needs Web-enabled interaction at customer touchpoints
Technology
Execution
Software
Planning
Services
Strategy
Process
People
Advice based customer interaction
Overview
Segmentation and scoring, which is commonly linked to the Campaign Management process, can be used to target and predict results for several different processes. It involves the collection of data to divide customers and prospects into meaningful, actionable, targeted segments, and is generally coupled with data mining to predict the most likely marketing results. The most common applications of segmentation and scoring are for sales and customer retention campaigns.

The Segmentation Component includes: Extraction of customer data from client legacy systems Matching of external demographic data to internally extracted data Organization of data into household units Categorization of customers and prospects into segments Identification of actionable targeted segments The application of scoring algorithms to identify the most likely outcomes: It could be used to predict the most likely sales prospects for a sales campaign, customers to discontinue buying its products, or customers who would provide the most profit. It could be used for churn analysis. It could drive sales campaigns for new customer prospects, cross-sell additional products to existing customers, or up-sell existing products to current customers.
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The basis of the scoring process can take a several different forms, based on the depth of the client data and the maturation process of scoring solutions: At the outset, the scoring algorithm is typically based on historical sales and demographic information about current customers and prospects purchased from external third-party data providers. As additional information is collected, it might be based more on their wants and needs. As sales response information is collected through the campaign process and more is known about the significant data attributes in place at the time of the decision-making process, it can be based more on their behavior. When profitability predictors are identified, they can be applied to customer and prospects so that it can be predict those that will be the most profitable to the company. Finally, when customer lifetime-value models are constructed, their algorithms can predict those customer and prospects having the greatest potential lifetime value.
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6.49 Siebel ASP

Key Dimensions
Infrastructure
Technology
Execution
Software
Planning
Services
Strategy
Overview
ISV
Through our global strategic alliance, IBM and Siebel deliver a winning combination of CRM skills and technologies. Now, IGS can make it easier and more affordable to take advantage of leading Siebel CRM applications. Siebel ASP bundles together everything needed for an end-to-end outsourced solution that can be quickly deployed. Siebel e-business applications are one of the industry's most comprehensive, functionally-rich CRM solutions.

With the IBM pay-as-you-go fee structure, upfront investment is minimal. As customer needs change and grow, service can be expanded. The objective is to help clients quickly build a world-class CRM infrastructure that significantly improves business. The end result is rich functionality, shorter time to market, and faster return on investment. The following applications are available as part of the IBM/Siebel ASP solution:
Siebel.com applications enable organizations to leverage the Internet in

order to: Identify and acquire new customers Enhance individual customer relationships Develop customized product and service offerings Ensure optimum effectiveness and efficiency
Siebel dynamic commerce applications provide the ability to leverage a variety of online auctions and pricing optionssuch as forward auctions, reverse auctions (procurement), auction networks, cross-auction portals, and exchangesand improve the buying experience through cross-selling and other promotional opportunities.
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Siebel field sales and Siebel field service applications provide market-leading field automation capabilities using comprehensive and scalable mobile field solutions. Siebel call center applications help transform call centers into nextgeneration contact centers encompassing advanced customer sales and service capabilities. Capabilities include intelligent call management, sales and service automation, and legacy integration capabilities.
Siebel channel applications comprise the industry's leading partner

relationship management solution, which supports and automates the process of managing business partners over the Web by enabling them to work collaboratively to market to, sell to, service, and retain customers.
Siebel industry applications deliver comprehensive, out-of-the-box

functionality uniquely tailored to specific business practices across a broad range of industries, making it possible for organizations to manage, coordinate, and synchronize all customer touchpointsincluding the Web, the call center, the field, retail, and distribution channels.
Customer profile: ISD/Solution StatusThe Siebel ASP Solution has not yet been through the ISD process. We are in the process of defining the offering in Canada, and will be approaching SOMT in 2Q2001.
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6.50 Siebel Customization

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
IBM provides customers with the ability to customize, implement, and integrate packaged Siebel CRM systems. IBM can provide service and support capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support for all software packages. Siebel offers a comprehensive suite of e-business applications designed to help financial institutions become more customer-centric. Siebel Financial Services helps retail banking, institutional finance, brokerage, capital markets, and insurance companies to successfully manage customer relationships throughout the full customer life cycleacross all customer touchpoints. Many leading financial services companies have standardized on Siebel e-business applications, including Bank of America, Charles Schwab & Co., The Chase Manhattan Corporation, Deutsche Bank, Farmers Insurance Group of America, Fidelity Investments, Fleet Boston Financial Corporation, The Hartford Financial Services Group, Prudential PLC, and Zurich Insurance.

IBMs partnerships with Siebel and the customer help speed delivery and payback for CRM projects. With the experience and pre-configured work pieces, the planning and implementation goes faster and smoother. Most companies need to customized their applications to leverage and fit their current environment. IBM has the resources and experience to make this customization thorough and expeditious. Siebel has over 140 specific applications to enable continuous-loop marketing, sales, and service across multiple touchpoints for financial services firms. IBM can make it easier to manage and implement these quickly into the customers site.
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Understanding customers
Siebel Analytics measures business performance across customers, products, and divisions. This includes a pre-built e-business data warehouse and a suite of out-of the box analytic applications.
Making the right offer at the right time

Siebel Marketing supports the entire marketing process with integrated analytic, campaign management, data quality, and personalization capabilities
Leveraging the Internet as a platform for revenue generation

Siebel dot-com applications enable financial institutions to provide their customers with superior online self-service. For example, using Siebel eChannel, insurance companies can provide brokers with select customer, product, company, and sales information to help them achieve revenue objectives.
Providing service across all channels of customer interaction

Using Siebel Call Center, financial services firms can transform their call centers into next-generation contact centers that manage, synchronize, and coordinate service, support, and sales interactions across a broad range of communication channelsincluding the telephone, Web, e-mail, fax, text-based chat, and voice-over IP.
Enabling transition opportunities

Siebel e-business applications provide critical capabilities for customer centricity, supporting each of the five key transition opportunities across the financial services industry. .
Transition opportunity: Create a complete view of the customer

Siebel integrates the multiple channels of customer information into a common repository, giving all company agentsclaims and call center representatives, branch personnel, relationship managers, and business partnersa single, consistent view of the customer.
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Transition opportunity: Provide consistent and personalized product and service deliver
By providing one common respository, Siebel enables consistent and personalized service across sales, marketing, and service interactions and across all touchpoints. In addition, Siebel Personalizationthe financial services industrys first multichannel personalization engineallows organizations to tailor the presentation of content, information, and business processes based on rich customer profiles.
Transition opportunity: Align the business to customer wants and needs

Using Siebel, marketing managers can design, execute, and evaluate multichannel marketing campaigns to acquire and develop customers.
Transition opportunity: Support all customer touchpoints

Siebel provides Sell & Support applications for telephone-based, face-to-face, and Web-based interactions. Siebel product architecture allows companies to configure once and deploy everywhere customizations that would operate automatically across deployment devicesfrom mobile, handheld, connected, and thin clients to wireless phones.
Transition opportunity: Enable advice-based customer interactions

Siebel eSmartScript uses customer intelligence and product information in the Siebel database to guide sales and service professionals through detailed, one-to-one customer consultations. Advanced branch scripting improves responses to customers and provides best practices to even the newest financial services employees.
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6.51 Siebel IBT

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
Siebel IBT3 is an IBM offering that provides pre-configured, pre-packaged CRM financial processes and other business components, extending the Siebel package out-of-the-box. Deploying a CRM package and changing business operations to take advantage of its capabilities is a difficult undertaking. This initiative addresses the complexity of structuring, closing, and delivering on expectations posed by CRM engagementsto deliver on time, within budget, and with high customer satisfaction based on value delivered. As a result of this initiative, IBMs intellectual capital will thus be assembled for the Financial Industry with the materials required to make possible a strong IBM value proposition dialogas opposed to simply discussing yet another generic application installation. All IBM sales and delivery resources can now represent our value proposition clearly and with greater confidence of the eventual outcome. Sales cycles will be shorter, delivery will be smoother, costs will be lower, client value will be greater, customer satisfaction will be higher, and winning follow-on and starburst business will become the norm. Launch templates incorporating design-flow depictions of the business process supported by the client purchasing the Siebel Solution will be used to assess fit gaps and deliver a Solution design. This design will be used to configure the application to the client environment in the second phase of the implementation. Each of the steps will use predesigned templates that leverage financial industry knowledge and engagement experience and reflect Siebel product functionality in order to move the client rapidly toward full implementation of the Solution.
Industry Based Templates
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Each prepackaged Financial Services offering will assemble the appropriate features and functions in support of the best-practice business process. The Solution will focus on the CRM touchpoints across our clients end-to-end enterprise while setting clear expectations of what our offering will and will not include. The template contents include: High-level E2E diagrams Operational level processes (OLP) Business issues/business solutions (BIBS) Business process procedures (BPP) Siebel Baseline Configuration (SBC) Siebel Baseline Pre-Configured Client (Baseline Client) Table 6-2 on page 208 depicts current functionality versus planned future enhancements.
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Table 6-2 Siebel IBT functional availability Siebel Banking Future enhancement Siebel Insurance Future enhancement
Available now
Marketing
Brand Recognition Segmentation/Profiling Portfolio Analysis Marketing Strategy Message Management Campaign Management Lead Management Optimal Channel Mix Value Management New Product Development
X X X X X X X X X X X X X X X X
Available now
X X X
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Siebel Banking Future enhancement
Siebel Insurance Future enhancement
Available now
Sales
Opportunity Management Channel Management Territory Management Sales Transaction Product Catalog Forecasting Cross Sell/Up Selling Sales Negotiation e-marketing Selling Derivative Pricing
X X X X X X X X X X
Available now X X X X X X X X X X X X X X
X X
X X
Service
Service Request Management Billing Payments Credit Check/Approval Contact History Order Status Complaint Management Product Service (help desk, field service, dispatch) Loyalty Program Management
X X X X X X X X X
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This offering creates a repeatable process that will standardize and accelerate Siebel implementations for IGS professionals worldwide. This approach will provide the structure and intellectual capital to leverage the full IBM sales force; to assure consistent delivery, value, and customer satisfaction; and to enable a management system to handle significant growth and high-volume delivery. The framework for this offering can be leveraged to develop similar accelerated implementation processes for other CRM packages. The IBT offerings will include Finance Industry scoping and planning templates, thus reducing overall total cost, time to implement, risk, and failure. If our client knows what CRM functionality it wants, our IBT will help it get there faster. If it does not know, then our IBT will lead the way In summary, the value we bring to our clients with this IBT-based CRM offering is four-fold: 1. We will guide the deployment of the application so it is used as intendedout of the boxleveraging package functionality while taking advantage of its flexibility. 2. We have a preconfigured solution to enhance the out-of-the-box application to support industry best-practice screens, views, workflow, etc. 3. We have identified areas that require workarounds that traditionally create issues in an application deployment initiative. 4. We will link the application deployment to an end-to-end enterprise view, identify key integration areas, and ensure that the deployment is strategically aligned, thereby mitigating the risk of a reset or killed project.
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6.52 Skills Management

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
The search for the best and the brightest has become a constant and costly battle. To remain competitive, companies will need to bring a more dynamic approach to their hiring practices. In addition, they will have to work harder to retain the best and brightest employees. The objective of the Skills Management Component is to assist line managers and Human Resources in analyzing high-priority skill gaps, as well as to provide a method for developing a skill gap closure plan.

A clients Skill Management strategy should support the organizations mission and goals, which include identifying the tasks the company must perform well in order to remain customer-centric and competitive. Therefore, an effective Skill Management strategy will start with the following questions as a way of focusing on the short-fall in high-priority skills. These are necessary to service customers at an acceptable level: What business are you in? What skills are critical to the success of your business? What are the job characteristics of these skills? What are your critical skill gaps, and what is causing them? What is your plan for closing the most important skill gaps? What is your proactive/reactive retention plan? After answering these questions, the client will be able to create a plan of action that will support the companys mission, as well as focus on the critical skills that are necessary to meet the financial and strategic goals of the organization.
Process
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6.53 Third Party Data Integration

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This involves the acquisition of data that is external to the enterprise and the integration of that data with information from within the enterprise. The resulting information can be used to implement or improve customer-centric processes such as cross-sell, up-sell, and retention management.

As financial service enterprises move into Online Financial Services, customer-centric processes become paramount. These processes rely heavily on detailed customer information. However, many enterprises have limited information about their own customers and often no information about prospects. Third-party data is a key source of information that can enhance existing customer information or provide initial information about prospects. Third-party data vendors provide a variety of information about or characteristics of the individual. If an enterprise can combine this external data with its own internal data, it can then enhance customer-centric processes such as cross-sell, up-sell, and retention management. IBM has a variety of professional services that are geared toward assisting the client in the integration of third-party data including: Third-party data vendor qualification and selection Data warehouse and data mart development for third-party data integration Data analysisincluding data miningto leverage integrated customer information
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6.54 Underwriting Profitability Analysis (UPA)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
Risk management is at the very heart of insurance. To attract and retain business, enterprises need to price their products competitively while managing their risk and staying profitable. Underwriting Profitability Analysis (UPA)part of the IBM DecisionEdge for Relationship Marketing solutionallows an organization to assess a product or customers risk exposure, define eligibility for the product, and then price the product accordingly. UPA is truly unique because it harnesses the power of data mining to actually discover underwriting rules based on the enterprises book of business and customer data. This customized approach yields results that are far superior to traditional methods while taking a fraction of the time. UPA is a solution that applies data mining to profitability analysis with outstanding results by sifting through voluminous amounts of data including demographic data, policy data, historical claims data, and data purchased from external sources. IBM has tuned this mining capability specifically to handle property and casualty insurance data in order to better identify significant risk factors. This subsequently enables more accurate definitions of risk groups. Consequently, an organization can develop a more effective risk management strategy. With UPAs easy-to-use Web browser interface, underwriters, actuaries, and marketers can control the data mining study to gain insight into the customer base and perform interactive queries and what-if analysis. UPA can be applied to an existing book of business as well as to new product development, identifying high-risk/low-risk attributes to help develop the most competitive rules
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and rates. A valuable tool for marketers, UPA is ideal for evaluating prospects in a cross-sell campaign for profitability and risk, and can add a new dimension to retention analysis. With the Web browser interface, this solution can run across intranets and the Internet.

With UPA, an enterprise can bring products to market faster and improve profitability by enabling an organization to: Identify low-risk customersthen use this information to adjust premiums, win customer loyalty, and improve customer retention Gain market share and improve the overall risk of policy portfolio rates by determining the lowest possibleyet still profitablepremiums for low-risk customers Identify lower risk customers, offer a profitable price to them, and improve overall risk of policy portfolio Discover high-risk individuals hiding among a larger group of insured individuals and adjust their premiums to better reflect their risk profile Run its business more predictably by forming an accurate estimate of the total quarterly loss expenses for its policy portfolio Directly impact its bottom line by improving loss ratios and reducing claim expenses Streamline and simplify the underwriting and issue processes by reducing the number of required risk factors Pinpoint previously unrecognized micro-segments and offer products specifically suited to their needs Monitor its underwriting rules and profitability on an ongoing basis, thereby enabling swift response to market changes
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6.55 Vality
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
Vality Technology is the industry's leading supplier of data standardization and matching software and consulting services. Their flagship product, the INTEGRITY Data Re-engineering Environment, helps businesses control their data quality and get the most from business intelligence solutions such as data warehouses. IBM is an authorized INTEGRITY reseller. Vality's INTEGRITY plays an important role in IBM business intelligence solutions by providing the data cleansing and re-engineering tools necessary for effective data analysis and data mining. As an IBM Tier One Business Partner in Business Intelligence, INTEGRITY works well with IBM business intelligence products such as Visual Warehouse and DB2 Universal Database, all of IBM's server platforms, and industry-specific solutions like DecisionEdge for Relationship Marketing. The INTEGRITY Data Re-engineering Environment is used to investigate, standardize, transform, and integrate data from multiple operational systems and external sources. By re-engineering data prior to migration, INTEGRITY feeds the highest quality information to information systems critical to your clients business. INTEGRITY is a specialized, multi-purpose data tool that organizations apply on projects such as: Data audits Data warehouse and decision support systems Customer information files and house-holding applications
Process
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Client/server implementations such as SAP R/3, Oracle, and Hogan System consolidations following mergers Rewrites of existing operational systems

Data re-engineering provides an automated means to transform imperfect data from multiple legacy and external sources into an accurate, consolidated view of an enterprises business across systems, departments, and business lines. Through a low-level data investigation, data typing, and entity identification, data re-engineering: Attains the highest levels of data quality in information systems critical to the business Ensures the accuracy and validity of data values Attains critical entity or logical key integrity Managers must drive decisions that directly influence results. Businesses that effectively use information to manage and impact decision making will have the greatest competitive edge. Accurate data is crucial to making those decisions.
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6.56 Web Analytics

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
As more client functions move to the Web, businesses must understand the new drivers for predicting future client behavior. Web Analytics spans the data capture, aggregation, and analysis of customer navigation data on the Internet. The resulting customer-specific profile becomes the foundation for Dynamic Content Personalization.

This component consists of the following capabilities: Click stream data capture (URL, time, date, etc.) Data aggregation by user (using cookies) Analysis and segmentation of Internet behavior, supplemented by other internal and external data Profile generation by user
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6.57 Web SellingGlobalization Planning

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a consulting offering to help companies identify and approach the varied and sometimes significant changes and considerations when taking an enterprise beyond national or international. When attempting to broaden market reach globally, IBM can bring distinct experience and research to making this transition more successful. The Web Selling Globalization Planning offering, a Component of Web Selling, is a broad-based consulting engagement geared toward companies that have identified global e-commerce as an important Component of their corporate strategy and are in the early planning stages. Most of the Web Selling ROEs have indicated that their preference is to include this as part of a large engagement, although it can certainly be used as standalone. Based on the Web Selling Solution Planning workshop, this offering is typically a 2 to 3 day planning session designed to help companies identify specific globalization issues in the following categories: Business issues and business process impact Applications functions and interfaces Infrastructure issues Organizational requirements Security and privacy Site and content management and site marketing The primary method for helping customers through this workshop is to perform an analysis of a typical transaction workflow, which at the present time is geared toward the Distribution Sector. The typical steps include:
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Process
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1. Site entranceincluding discussions concerning how customers find the site 2. Country selectionincluding various navigation issues 3. Product catalog 4. Order product 5. Checkout 6. Payment 7. Invoicing 8. Fulfillment and logistics 9. Shipment confirmation 10.Settlement 11.Returns handling Through much of this starburst opportunity, IBM-learned globalization does not always stand on its own as a topic. It really must be incorporated into everything around it.

IBM can bring research and experience to the table to help strategic planning and for reducing the risk factors that come into play when attempting to globalize an enterprise. Here are some such issues: From 1998 to 2003, e-commerce in the US will grow at a compound annual growth rate of 80%, while continuing to account for a diminishing piece of the worldwide e-commerce market. During this same time frame, the non-US portion of the market will nearly double, from 26% to 46%. As an example, Western Europe is projected to have a CAGR of 138%. A recent report by Forrester (The Cost of Cross-Border RetailNovember 2000) estimates that cross-border retail is a necessity for survival in Europe because of the need to obtain a critical mass of customers. Discussions with IBM practices in AP have outlined similar issues. Essentially, globalization is assumed to be a part of every Internet engagement. Some countries such as Canada and Switzerland have more than one official language. Even working within the border of a country with a single official language can be impacted. Globalization goes far beyond the mere adoption or embracing of Internet-based technologies to compete in today's global marketplace. It potentially involves redefining business models, reinventing business processes, changing corporate cultures, and raising relationships with worldwide customers and suppliers to new levels of excellence.
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The Finance Sector has identified globalization as a business driver that is reshaping the global financial marketplace. This implies several areas of globalization that must be addressed in order to achieve success: An internationalized software base or a software base with internationalized capabilities (both IBM-developed and ISV-obtained) A consulting and implementation capability to help clients understand and address the various aspects of globalization that are required for a successful implementation Internationalization is the process of determining what work, roles, or Components are required, regardless of country. The more reuse of base infrastructure that can be achieved, the more cost efficient the project. Localization is the process of taking the internationalized Components and customizing them to be specific for each locale. To date, a series of assets has been developed: Quality-assured SOW Overview presentation to help introduce the topic and outline the major categories A discussion guide that can be used to help drive dialogs with the client on various topics This discussion guide is primarily organized around site workflow steps. Demo tools to show clients how companies around the world have chosen to deal with various globalization initiatives A series of reference links that point to intranet and Internet sites for various country, regional, or general-topic sites
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6.58 Web SellingReturn on Web Investment (ROWI)

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a consultation offering that uses the ROWI methodology to quantify and measure the financial and strategic impact of e-business. As financial services companies invest in e-business, many want answers to the following questions: How and what should be done? What should be measured to determine revenue growth, cost reduction, and profitability? Investors in financial services companies are now demanding tangible business returns from e-business investments before they approve new funding for e-business initiatives. This can be especially problematic since many times it is difficult to capture the full impact of e-business investments using traditional measures alone. Return on Web Investment is a three-phased set of IBM consulting engagements developed specifically to help financial services clients in various stages of deploying e-business sell-side initiatives to navigate the complex issues surrounding profitability in this new multi-channel environment.
Phase I: Making the business case

IBM consultants will help the client build a strong e-business case by clarifying the clients business objectives, then identifying ways to accurately assess the client ROI. The client will come away with answers to questions about impact, metrics, industry information, and business process change.
Phase II: Measuring success factors

IBM consultants help establish a sound measurement frameworkfrom evaluating current strategies to defining critical success indicators right now to projecting future ROI based on those criteria.
Process
People
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Phase III: Assessing success

Phase III engagements complete the cycle by providing evidence of success and learning points from failurescapturing results, measuring ROI, and comparing results to prior projections. All work is aimed at assessing how e-business has impacted profitability and identifying the risks and opportunities related to future implementations.

Helping clients transform their businesses to e-business involves more than opening up new sales channels. Its about employing the Web technologies to essentially transform the way companies do business. Streamlined processes, dramatic cost savings, and heightened efficiencies are just the beginning. The payoff comes in the shape of closer, more responsive relationships with customers, suppliers, partners, and employees. IBM has trained e-business strategy consultants to help companies determine their unique answers to these very tough questions. Based on the strategic advantage that e-business providesand all of its yet-to-be-tapped potentialit comes down to using a sound financial expectation methodology to tie Web, IT, and business strategies together. The result of this consultation is a justifiable, executable e-business strategy linked to company objectives. Since the ROWI method can be used to evaluate the impact of all sell-side Solutions, it can help drive all of the FSS Big Plays.
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6.59 WebSphere
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
This is a tightly-integrated series of products and servicesa new, universal Internet software platform that can support any kind of e-business, large or small. Offering advanced, end-to-end, integrated e-commerce features that seamlessly link to existing systems, it can adapt as goals, strategies, and target markets change, providing the ideal base for building or expanding business on the Web. This framework allows the customer to bolt on other products easily. WebSphere has many built-in elements and can connect to any relational database having a JDBC driver. It is based on open, standards-based technologies that can scale from a pervasive device such as a WAP phone to the mainframe. The IBM WebSphere Application Server series has three editions: Standard, Advanced, and Enterprise. The Standard Edition is the entry-level product that targets simple applications. One of its greatest assets is that since all editions are compatible, any application built at this level will continue to work as-is should the customer choose to upgrade. The Advanced Edition is used primarily for medium to high-end e-business applications. It is the most demanded version, having all of the functionality of the Standard Edition plus support for Enterprise Java Beans as well as transactional requirements stored on relational databases. This editions deployment environment is also different in that it allows the customer to leverage multiple servers on varied hosts that interact as though they were a single powerful server. This adds scalability and tolerance to the platform on which the applications are running.
Process
People
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The Enterprise Edition is meant for very high levels of distribution, messaging, heavy transaction activity, and complex applications. This has all of the benefits of the other editions plus the use of other componentsincluding DCE, CICS, Encina, Component Broker, and MQSeries.

A customer can build, test, and deploy Web applications seamlessly with the WebSphere Application Server, VisualAge for Java, and WebSphere Studio integrated bundle of products. You can build EJBs, JSPs, JavaBeans, and Servlets, testing and debugging locally or remotely with the VA Java IDE. A few simple clicks then deploys the tested code to the Application Server. WebSphere Extended Personalization Version 1.0 delivers personalized Web content, while WebSphere Commerce Suite Version 5.1 provides multicultural functionality to support unique geographic requirements. This includes: Translating into the customer's preferred language Adjusting content presentation based on cultural preferences Adapting to multiple taxation laws, fluctuating currency, logistics, and payment regulations Presenting and preserving inventory, transaction, and fulfillment information based on cultural preferences Enabling merchandising and marketing managers to create, update, and manage catalog data regardless of geographic location or cultural preference So many packaged suites are already available that before engaging a prospect you would be well advised to review the WebSphere Web site and/or speak with an experienced practitioner. The Getting Started Bundle in WebSphere Studio and Application Server is one of the more popular of these packages. The Build and Run Bundle adds VisualAge for Java Enterprise Edition. The WebSphere on the Go Bundle includes WebSphere Transcoding Publisher, but does not contain VisualAge for Java. The WebSphere Extended Personalization Bundle adds WebSphere Personalization and Site Analyzer. The customer list is extensive, including banks and large telecommunications companies spread throughout the world. Alphabetized customer listings with accompanying success stories can be found at the following Web sites:
http://www-4.ibm.com/cgi-bi http://www-4.ibm.com/software/webservers/news.html.
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6.60 WebSphere Business Components Composer

Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
WebSphere BCC is a lightweight business orchestration system for short-lived transaction connectivity. It is based on object-oriented message representation and provides dynamic data transformation and mapping to back-end systems. Running on WebSphere 3.5, it has a Java programming model and is available on multiple platforms, including S/390. Like other WebSphere products, this is a tightly integrated series of products and servicesa new, universal Internet software platform that can support any kind of e-business, large or small. It offers a presentation engine providing highly distributable front-end navigation and capable of enabling multiple touchpoints or channels from WAP to teller. Through its back-end integration logic and adapters, it facilitates dynamic transaction integration as well as short-lived transaction coordination.

WebSphere BCC provides a customer with architecture for the complete lifecycle of component-based software systems. It allows for the integration of disparate programming models in a single uniform representation, communication, and distribution model. It exploits J2EE capabilities and XML as the basic infrastructure for system construction. WebSphere BCC supports true component-based development and is ideally positioned in the space where customer information will be aggregated for use by processes and application functions which must be shared across channels to enable customer-centric processing.
Process
People
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6.61 Xchange
Key Dimensions
Infrastructure
Execution
Software
Planning
Services
Strategy
Overview
ISV
Xchange was founded in 1995 in Boston as Exchange Applications, with a flagship product known as Valex. The company has since developed new technology and made some acquisitions to extend its offerings to seven products covering three major areas associated with marketing automationDialogue for Marketing (formerly Valex), Optimizer, and Real Time. Xchange brings market leadership in an area critical to the mutual success of IBM and its clients in Business Intelligence. Not only does Xchange bring a substantial list of name references, but also the technical resources and experience necessary to continue to deliver market leading capabilities to our IBM customers.
Components
Dialogue for Marketingprovides robust campaign-management
capabilities that automate and accelerate a closed-loop marketing process, enabling companies to plan, execute, and assess multiple targeted campaigns. Xchange Dialogue for Marketing can be used on its own OE in an ASP host or internal product configuration OE, or used in combination with any number of Xchange products.
Xchange Optimizerpredicts, measures, and interprets customer behaviors,

allowing companies to understand the effectiveness of e-CRM efforts across both inbound and outbound channels. This provides a set of e-CRM metrics that describe the state of the clients customers across the enterprise. The software and its reports can be used by virtually anyone across the clients organization. This packaged but extensible application is delivered with a set of industry-specific data models and reports
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Process
People
for eight verticals, from banking and retail to dot-coms. Optimizer workflow processes and proven implementation methodologies ensure maximum value from the industry models, customer analysis, and actionable applications which integrate with it.
Xchange Real Timeuses the broadest customer profile to make sound decisions in response to inbound customer requests and online behaviors.
A customer profile might consist of promotion history data, demographics, and interaction data from customer-facing systems.

Dialogue for Marketing
Provides robust campaign-management capabilities that automate and accelerate a closed-loop marketing process. Captures direct and indirect responses across all channels to accurately assess campaign results. Provides companies with more time for the execution of planning and evaluating customer campaigns while taking less time to handle execution logistics. Xchange Dialogue for Marketing forms a strong e-CRM Solution when used with other Xchange Products for Marketing.
Xchange Optimizer
Tightly integrates rich customer analysis with customer communications products to improve the effectiveness of marketing campaigns, Web personalization efforts, and interactive exchanges with individual customers and prospects. Allows companies to gain insight into customer trends and behaviors, and then take action on their discoveries.
Xchange Real Time

Coordinates and optimizes customer interactions across formerly disjointed channels. Utilizes an enterprise view of the customer, applies intelligence to recommend personalized offers for customers, and captures their responsesall in real time. Initiates and maintains meaningful, ongoing dialogue over the Internet.
Table 6-3 on page 228 relates Components to customer-centric business architecture.
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Customer-centric business architecture

Table 6-3 Solution Component-applicable customer-centric Business Architectures
Component
Customer Interaction Processes
Business Architecture Enterprise Application Integration X X Data Transformation & Integration
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
Banking Data Warehouse (BDW) Becoming Customer Centric Branding Solutions Business Case Development Business Continuity & Recovery Business Process Organizational Model ChannelPoint Client Information Integration System (CIIS) Common Transactional Protocols and Formats Contact Center Assessment (CCA) Content Hosting Customer File Design and Implementation Customer Loyalty Suite ___Customer-centered Strategy and Roadmap X X X X X X X X X X X X X X X X
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Out-tasking
X X
Data Marts
Client File
Component
Business Architecture Enterprise Application Integration X Data Transformation & Integration
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
___Customer-focused Processes and Channels ___Customer Loyalty Management System Customer Management Assessment (CMA/CMAT) Customer Prospect Optimizer (CPO) Deep Green e-business Management System ___e-business Strategy ___e-governance Enterprise Customer Analytics (ECA) Enterprise Performance Suite (EPS) Entity Profiling Management System (EPMS) e-Start ETIEXTRACT EvokeCRM Integration and Product Offerings EZ Mart
X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
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Out-tasking
Data Marts
Client File
Component
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
Financial Fusion Consumer e-Finance Suite (CeFS 4.0) Financial Services Data Model (FSDM) Financial Services Information Framework (IFW) Help Desk Hosting/Outsourcing Insurance Application Architecture (IAA) Insurance Information Warehouse (IIW) Integrated Voice and Data Networks Integration Hub Intelligent Miner Kana Customization Knowledge Management Market Analysis and Strategy ___Market Structure Analysis ___Target Audience and Market Segmentation ___Customer Satisfaction, Loyalty, and Retention X X X X X X
X X X X X X X
X X
X X X X
X X X
X X
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Out-tasking
Data Marts
Client File
Component
Business Architecture Enterprise Application Integration X X X X Data Transformation & Integration
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
___New Product and Services Innovation ___Brand Valuation ___Brand Building Architecture ___Predictive Modeling ___Financial and Econometric Modeling MicroStrategy MQSeries/MQSFSE netCallCentre Onyx ASP Operations and Process Design for Interactive Transactions Pervasive ComputingMeB Program Management S1 SAS Security and Privacy Design and Implementation Segmentation and Scoring Siebel ASP
X X X X X X X X X X X X X X X X X X X X X X X
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Out-tasking
Data Marts
Client File
Component
Channel Enablement
Strategy & Planning
Data Warehouse
Personalization
Siebel Customization Siebel IBT Skills Management Third Party Data Integration Underwriting Profitability Analysis (UPA) Vality Web Analytics Web SellingGlobalization Planning Web SellingReturn on Web Investment (ROWI) WebSphere WebSphere Business Components Composer Xchange X X X X
X X
X X
X X
X X
X X X X
Table 6-4 on page 233 cross-references Components and Solutions.
232
Out-tasking
Data Marts
Client File
Component Solutions
Table 6-4 Solution Component-applicable Solution Offerings
Component
Data Mart Design and implementation Conversion and Data Rationalization
Solution
Product/Portfolio Planning and Pricing Sell & Support Strategy and Roadmap
Sales Force Automation (SFA)
Global Infrastructure Strategy
Dynamic Personalization
Campaign Management
Channel Management
Contact Management
Interactive Branding
Package integration
Risk Management
Banking Data Warehouse (BDW)

Becoming Customer Centric Branding Solutions Business Case Development Business Continuity & Recovery Business Process Organizational Model ChannelPoint Client Information Integration System (CIIS) Common Transactional Protocols and Formats Contact Center Assessment (CCA) Content Hosting Customer File Design and Implementation
X X X X X
X X X X
X X X X
X X X X
X X X X X X X X X X X X X X X
X X X
X X X X
Web Enablement
X X X
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Component
Solution
Campaign Management
Channel Management
Contact Management
Package integration
Risk Management
Customer Loyalty Suite ___Customer-centered Strategy and Roadmap ___Customer-focused Processes and Channels ___Customer Loyalty Management System Customer Management Assessment (CMA/CMAT) Customer Prospect Optimizer (CPO) Deep Green e-business Management System ___e-business Strategy ___e-governance Enterprise Customer Analytics (ECA) Enterprise Performance Suite (EPS) Entity Profiling Management System (EPMS) e-Start
X X X X X X X X X X X X X
X X X X X X
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Web Enablement
Component
Solution
Campaign Management
Channel Management
Contact Management
Package integration
Risk Management
ETIEXTRACT EvokeCRM Integration and Product Offerings EZ Mart Financial Fusion Consumer e-Finance Suite (CeFS 4.0) Financial Services Data Model (FSDM) Financial Services Information Framework (IFW) Help Desk Hosting/Outsourcing Insurance Application Architecture (IAA) Insurance Information Warehouse (IIW) Integrated Voice and Data Networks Integration Hub Intelligent Miner Kana Customization
X X X X X X X
X X X X X X
X X
X X X X X X X X X X X X X X X X X X X X X X X X X
X X X X
X X
Web Enablement
X X
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Component
Solution
Campaign Management
Channel Management
Contact Management
Package integration
Risk Management
Knowledge Management Market Analysis and Strategy ___Market Structure Analysis ___Target Audience and Market Segmentation ___Customer Satisfaction, Loyalty, and Retention ___New Product and Services Innovation ___Brand Valuation ___Brand Building Architecture ___Predictive Modeling ___Financial and Econometric Modeling MicroStrategy MQSeries/MQSFSE netCallCentre Onyx ASP
X X X X X X X X X X X X X X X X X X X X X
X X
X X X X
X X X X X X X X X X X
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Web Enablement
Component
Solution
Campaign Management
Channel Management
Contact Management
Package integration
Risk Management
Operations and Process Design for Interactive Transactions Pervasive ComputingMeB Program Management S1 SAS Security and Privacy Design and Implementation Segmentation and Scoring Siebel ASP Siebel Customization Siebel IBT Skills Management Third Party Data Integration Underwriting Profitability Analysis (UPA) Vality
X X X X X X X X X X X X X X X X X X X X X X X X X X X X
X X
X X X
X X X X
X X X X X X X X X X X X X X X X X
X X X X X
Web Enablement
237
238
Xchange WebSphere Web Analytics Web SellingReturn on Web Investment (ROWI) WebSphere Business Components Composer Web SellingGlobalization Planning
Component
X X X X X X X X X X
X X
Campaign Management Channel Management Contact Management Conversion and Data Rationalization Data Mart Design and implementation
Solution
X X X X X
X X X X X
X X
Global Infrastructure Strategy Interactive Branding Package integration Product/Portfolio Planning and Pricing Risk Management Sales Force Automation (SFA) Sell & Support Strategy and Roadmap Web Enablement
Chapter 7.
How to engage IBM Global Services to accelerate customer centricity

This chapter defines the IBM value proposition, provides representative case studies, and describe how to engage BIS in the Financial Services Sector in order to help our clients leverage customer centricity.
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Sales and Service

Advice and Guidance
Advicebased customer interaction Know the customer Offer the right product at the right time Provide customer access anywhere and anytimeclicks & mortar Aggregate the customer viewacross the total portfolio Provide advice based on a broad range of offerings Offer the right service for the customer value

Wealth Management
Solution Offerings
Solution Components
Figure 7-1 The Big Plays are focused on developing customer centricity.
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7.1 Why IBM

7.1.1 IGS Value Proposition
We have a compelling value proposition for helping our clients accelerate their transformation to a more customer-centric approach. Its three major components are: 1. We deliver a comprehensive approach rather than individual e-business Solutions, providing the flexibility for multiple client entry points. 2. We bring together cross-sector Solutionslike Customer Loyalty, Wealth Management, and Mobile Internetwith the industry-specific Solutions of e-banking, e-insurance, and e-invest (OFS). 3. We provide the right infrastructure for heavy lifting of e-business, and then applying it to specific Solutions for retail financial services. In addition, Leveraging Customer Centricity is another example of IBMs overall value propositionunparalleled breadth and depth of products and services to provide Solutions to client issues. Over the years, we have: Gained a solid understanding of e-business needs and priorities of the financial services industry through involvement in and leadership of a variety of technology projects, such as the 1999 insurance industry thought leadership study, An Industry @ Risk Hired individuals with deep knowledge of the financial services industry and trained them in the key technologies necessary to execute a long range e-business transitions Built flexible, end-to-end service capabilities to match client needs with an appropriate collection of strategy, planning, and execution Solutions Established partnerships and implementation capabilities with prominent financial services e-business Solution providers such as Siebel Systems, Kana Communications, and Castek Deployed financial services personnel through geographic and functional category delivery channelse.g., consulting practices, centers of competency, and innovation centers Performed successful engagements for clients throughout the worldwide Financial Services Sector, covering a broad range of business and technology challenges and opportunities such as new media, regulatory, communications, and risk management
Chapter 7. How to engage IBM Global Services to accelerate customer centricity
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7.1.2 Competitive advantages

As a result of its experiences and capabilities, IGS offers its clients five key advantages: 1. Superior speed to market, with predictable business results: Using robust, tested methods and techniques Substantiated by client experience 2. End-to-end strategy, planning, and execution integration: From market analysis through sales and support services With application and data integration using MQSFSE 3. Experienced professionals in: Innovation centers Regional and national industry practices Specialized BIS practices and competency centers Vendor partnerships with application leaders 4. Technology and thought leadership represented by: Research centers focusing on new technologies and their application to business problems Industry studies that develop practical approaches to strategy, planning, and execution Leading pervasive, wireless, and micro form factor technologies 5. Risk reduction providing: Reuse of methodologies, frameworks, and engagement work products Peace of mind from knowing that your supplier will be your partner for the long haul
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7.2 Case studies

7.2.1 Value-based customer segmentation
Transition opportunityComplete client view Approach/resultOne insurer IBM worked with wanted to enhance customer relationship management to develop long term profitable relationships. It was faced with many challengessuch as data that described contracts, not customers, and data that was not easily accessible by agents or the lines of business.
IBM helped the client extract data from multiple product systems, append external survey data, score on business interest areas, define new segments, and develop a targeted marketing campaign. As a result, the client identified new customer segments and achieved significantly higher response rates for new campaigns targeted to unassigned/orphan clients.
Solutions offeringsCustomer Segmentation and Scoring
7.2.2 Targeting products and services to value-based customer segments

Transition opportunityConsistent and personalized product and service
delivery
Approach/resultA multi-line financial services firm with a large career agency

force wanted IBM to help it increase sales across product lines within a book of business by helping agents target customers most likely to buy its products. IBM identified important customer information required for propensity scoring, used predictive modeling to rate the households which had the highest propensity to own the firms products, and segmented households with similar characteristics and needs whose buying habits and product Solutions were unique enough to be acted upon by an agent. This information was aggregated in a marketing data warehouse to provide segmentation and scoring in an automated way to the sales process. A Web-based Lead Delivery system was developed to provide agents segmented and scored leads. The IBM Solution established a closed-loop feedback process that captured the results of the sales process and used that customer information to improve the scoring and segmentation models. Business intelligence enabled the client to help its agents make the right offer at the right time to up-sell and cross-sell its book of business, resulting in a significant
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improvement in close ratios and lower cost of prospectingfrom $24 per contact to $5 per contact.
Solutions offerings:
Campaign Management Data Mart Design and Implementation Segmentation and Scoring
7.2.3 Calculating lifetime profitability by customer

Transition opportunityCustomer facing processes aligned with customer and business wants and needs
Approach/resultIBM helped a financial services firm identify the overall

strategy for lifetime value of households within its book of business. A households lifetime value is the expected profit it generates from its current policies across a fixed number of years, and can include future anticipated policies based on life-stage scenario development. Alternately, lifetime value can represent the net present value of the expected profit the company will lose if the household defects. This strategy allowed the client to identify who its best customers were. The plan was to develop retention and customer care programs to keep these customers, and conduct targeted marketing campaigns to attract other customers with similar characteristics. An agent-only screen that mapped the customers propensity to buy against lifetime value was a Component of the plan to assist agents with their sales and service strategies.
Solution OfferingsCustomer Value Management
7.2.4 Transitioning to a customer-centric business model

Transition opportunityCustomer facing processes aligned with customer and
business wants and needs
Approach/resultA financial services firm wanted to increase customer

satisfaction and improve the productivity of its customer service reps in its Customer Support Centers. IBM helped the client to reinvent its business model by: Eliminating vertical silos and creating customer-focused teams responsible for all support services Creating new customer-centric processes
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Identifying a supporting IT architectureincluding applications, data management, and work management Establishing a new performance management process The results experienced by the client increased customer satisfaction from 73% to 95%, tripled the number of customers supported with the same staff level, and reduced cycle times by 20% to 70%. Solution offeringsBusiness Process Organizational Model
7.2.5 Expanding consumer access using customer value management

Transition opportunitye-enabled interaction at multiple customer touchpoints Approach/resultOld fashioned service, provided via the Web. A thriving auto,
home, life, marine, and personal liability insurer built its success on a traditional foundationgiving its customers superior service. With the advent of e-business, it realized that it needed to expand its outreach channels to include the Webbut not at the expense of its customer-focused mission and reputation. One of the greatest fears voiced about our technological age is that the interactions can become cold and impersonal. IBM was challenged to assist this firm in its construction of an e-business strategy that was aligned with its internal business objectives and as well as consumers. Pairing an industry consultant with an e-business architect, IBM quickly developed a roadmap for the firms infrastructure and external rollout. Facilitated internal workshops, coupled with executive interviews and a custom industry benchmark, helped the team create a plan, development, and release strategy. The foundation of the first release was developed using Customer Value Management techniques to evaluate the firms current and planned market segmentation; capture, evaluate, and prioritize customer and prospect e-business needs; and complete a competitive review. These results fed the IBM Innovation Center design group. A design treatment was chosen and rapid development, using the IBM Method, began. The first release completed within six months of start, with two additional releases completed in the following twelve monthson time and within budget. Business functions included: Company positioning and access information Product and services information Quotation facilities
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Policy inquiry Electronic bill presentment and payment Claim reporting Customer testimonials Feedback capabilities Industry information links Industry-leading privacy and award information The firm achieved its goalsa new Web site that communicates its brand effectively to current and prospective customers. Site traffic, as well as completed transactions, have risen substantiallyand the firm has earned numerous awards for its success. As a result of this success with the external view of e-business, the firm has hired IBM to implement new back-end systems, as well as an office front end. Both initiatives are based on software Solutions from IBM business partnersCastek Systems and Siebel Systems.
Solution offerings:
e-business Strategy and Design Customer Value Management Innovation centers design studies WebSphere and MQSeries
7.2.6 Implementing a new wealth bank

Transition opportunityAdvice-based customer interaction Approach/resultA financial services firm wanted to establish a greenfields
new wealth bank targeted at its high net worth customers. This installation covered all aspects of the new bankfrom front-end delivery systems through back-end core banking and brokerage systems. IBM helped the client to: 1. Evaluate the market for the offering and establish the segments most appropriate for the service from the existing customer base 2. Establish a roadmap to implement the services 3. Establish the business case and provide the ROI model for the firm IBMs system design was based around an extensive Customer Information File and included:
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Account managementboth transaction and deposit accounts Various forms of short-term savings, such as time deposits Multicurrency support Brokerage to address this customers needs Channels were restricted to the Internet, WAP phones, and pagers (for alert services)with limited agent support delivered through a 24x7 call center, as well as some face-to-face contact.
Solution offerings:
Sell & Support Strategy and Roadmap Channel Management
7.3 How to engage

We have many resources at our disposal for each significant financial services opportunity. The challenge is to identify, qualify, and engage the right recipe for any opportunity. From an opportunity management perspective, the region industry executive's teamas the contract holding organizationis the decision point for determining whether or not to approach an opportunity. From a tools perspective, OASIS is the tool that supports opportunity management in BIS.
7.3.1 Business needs

From a clients perspective, business customers acquire products and services to satisfy needs. There are multiple sources of needs, based on three domains of influence: 1. StrategicChief x officers (CxOs) shape strategy through environmental forces (economic, regulatory, and competitive) 2. OperationalManagement policies implement strategy and objectives (revenue, profit, costs by product/segment/market, specific organization departments, or silos). 3. FunctionalSpecific areas interact to run the business (managing line operations, technology, products and features, service and support). The IGS principal must match the client influence domain with the appropriate qualified IBM resourcee.g., industry marketing consultant or specific
247
technology SME. In this endeavor, the region industry principal is the gateway to all.
7.3.2 Opportunity management process

Described below are the business rules for Opportunity Management (OM) that all IBM Global Services professionals must comply with. They reinforce the integration of SSM with opportunity management. The rules apply to opportunity identifiers, opportunity owners, and Solution owners. A practitioner can fulfill one or more of these roles as he or she executes the OM process. The opportunity identifier is the person who discovers the opportunity. This can also include the S&D community. The opportunity owner is the industry principal who is the primary interface to the customer. Opportunity owners are responsible for: The development of the winning strategy Assignment of Solution owners Opportunity forecasting in OASIS Integration of multiple practice components The review and approval process The delivery of the proposal to the customer The Solution owner is a principal subject matter expert. Solution owners are responsible for: Scoping the Solution Building the proposal pursuit team Developing the proposed Solution content Pricing input Opportunity forecasting input to the opportunity owner Leveraging IBM intellectual capital Assisting in the review and approval process Delivering the Solution to the customer
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7.3.3 Opportunity management rules and guidelines

Rules
Opportunity identifier: Enter each new opportunity into OMNOTES/OASIS,
ensuring that it does not duplicate an existing entry. Contracts cannot be opened through NSSO without an opportunity number.
When: Within 2 days of its identification Rationale: Complete and non-redundant opportunity information is necessary to effectively manage our business. Clip levels reduce the workload by avoiding the data entry for very small opportunities. Opportunity identifier: Ensure that an opportunity owner is assigned and
identified in OMNOTES/OASIS.
When: As promptly as possible Rationale: If no one has responsibility for ensuring that an opportunity owner is assigned, then the opportunity might be overlooked instead of getting to the attention of the right people needed to pursue it. Opportunity owner: Record sell cycle changes in OMNOTES/OASIS according to SSM verifiable outcomes, definitions, and tools/sales aids. When: Within 2 days Rationale: Signature Selling Method (SSM) is our process for selling. The sell cycles recorded in OMNOTES/OASIS must be current for effective opportunity management. Opportunity owner: Enter correct product category (i.e., offering codes) in opportunity component detail records. When: As promptly as possible Rationale: We need to track opportunities at the offering level to really be able to manage our business. The offering IDs in the GBT (Global Brand Table) will be used for this coding. Opportunity owner: The opportunity owner responsibility can be transferred with mutual consent of the outgoing and incoming owners by updating OASIS accordingly. When: Within 2 days of agreement Rationale: There can be valid business reasons for changing the person in the Opportunity Owner field. This is permitted if there is mutual agreement between the current owner and the new owner.
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Opportunity owner: For complex opportunities (opportunities that cross IGS LOBs), these rules should be followed: Cross-IGS LOB contract signings tracking and credit:
If an opportunity is less than $1M, then there is only one detailed record for services. The lead LOB is responsible for entering and updating the record. If an opportunity is over $1M, multiple detailed records can be created for each IGS LOB involved.
When: When determined Rationale: Components will be reported as separate LOB line items. The offering and component IDs in the GBT will be used for this coding. Opportunity owner: Ensure that all complex opportunities with multiple components have an agreed-to overall opportunity owner. When: As promptly as possible Rationale: This rule ensures that someone is in charge and is another case where duplicate opportunities will be avoided. Opportunity owner: Report any opportunity with a revenue stream lasting more than one quarter with a stream flow code, in either monthly or quarterly increments, which reflect the expected billing over time. When: When determined Rationale: For projection and planning purposes, an opportunity's revenue stream needs to be spread over time. Opportunity owner: Enter opportunities that close within two business days of being identified, as a won opportunity (within clip levels). When: When won quickly Rationale: Even opportunities with short sell cycles that close quickly need to be entered to spot trends and understand what is happening in the marketplace. Opportunity owner: Ensure that all opportunities in OMNOTES/OASIS are marked for submission to the OMNOTES/OASIS bridge. When: When entered or updated Rationale: This is the only way that they will show up in Operational EDGE reports used to determine how our business is run.
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Guidelines
Opportunity identifier, opportunity owner, and Solution owner: The SSM tools/sales aids are the first choice in determining status and managing an opportunity through the sales cycles. They are the way IGS will track an opportunity's progress. Rationale: SSM provides a rich set of tools to execute world-class sales and opportunity management. Solution owner: Look for available intellectual capital (ICAP) before creating
unique material. ICAP includes forms, procedures, processes, service delivery methods, and client deliverable templates.
Rationale: ICAP enables higher quality deliverables and effective use of resources as well as enabling profitable value-based pricing options. Opportunity owner and Solution owner: Use SSM sales aids and QA to
improve opportunity decision-making while meeting the customer's needs and providing business value.
Rationale: There are a number of excellent tools available to the sales practitioner through SSM and QA. They are designed to support the opportunity decision-making process. It is important that we learn and use these tools for effective opportunity management.
Reference: SSM Sell Cycle Summary

Sell Cycle 2: Validated occurs and is reported when the buying vision is
established between the prospect and IBM, and the prospect agrees to provide access to the Power Sponsor. SSM provides tools to determine the verifiable outcome as validated. Remember, discarding a bad opportunity early saves sales costs.
Sell Cycle 3: Qualified occurs and is reported when the IBM capabilities are articulated, the opportunity is qualified with the prospect, and it selected by IBM for proposal development. SSM provides tools to determine the verifiable outcome that the opportunity is qualified. Selection by IBM is easily verifiable. Eliminating opportunities at this point avoids IBM proposal development costs. Sell Cycle 4: Proposed is achieved and reported when any proposalincluding a Letter of Authorization (LOA), a Letter of Intent (LOI), or other preliminary agreementis presented to the prospect. SSM provides tools to determine the verifiable outcome as Proposed. Sell Cycle 5: Win/Implementing is achieved and reported when the overall (main) contract is signed. An LOA, LOI, or other preliminary agreement that generates billing before the overall contract is signed will be re-categorized as a
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separate opportunity in OASIS and reported in Sell Code 5Win/Implementing , leaving the remaining overall opportunity in Sell Code 4Proposed. IGS engagements can be governed by a Statement of Work, LOA, LOI, or other contract documents. In those cases where there is more than one signing date, the opportunity must be divided into separate opportunities and recorded as such in OASIS.
Sell Cycle 6: Won/Complete is achieved and reported when the service delivery is complete. This sell code triggers the customer satisfaction process.
Helpful sites for more information

Link to Financial Sector data bases:
d02db024/02/a/ibm/I_dir\intelcap\insur.nsf
Link to IGS Financial Sector:

http://w3-ibm.com/services/bis/secors/financial_services/financial_servic es.html
Link to Financial Services Solutions:

http://w3-1.ibm.com/industries/financialservices/finsect.nsf
Link to IGS:
http://w3.ibm.com/services/how_we_sell.html
Link to BIS:
http://w3-1.ibm.com/services/bis/
Link to BIS Multi-Industry Sell & Support:

http://w3-1.ibm.com/services/bis/multi_industry/multi_industry.html
IBM Contacts
From an opportunity management perspective, the region industry executives team is the contract holding organization and, thus, the decision point in determining whether to approach an opportunity or not. OASIS is the tool that is used as the basis for opportunity management. There are several ways to get to the right region industry principal: If you know who to call for a particular opportunity, then call that person directly. If you dont know who to call, you can: Contact the region industry principal for that client. Contact the Sector Category Team for that sector. Contact the National Multi-Industry Practice for that Solution.
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Contact the local Region Multi-Industry team. Either way, you will arrive in the Identification and Qualification Phase in Opportunity Management.
253
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Appendix
A.
Listing of consultant and practice information

We have introduced the new term Solution Category as a grouping of our former Offerings, Components, and features to a higher aggregation model, which reflects the change in customer buying patterns toward integrated Solutions. Our Solutions can naturally be grouped into five Categories aligned with the main customer buyer groups. The five Solution Categories and their associated codes are: 1. e-business Strategy and Change (6955-20A) This category includes the business consulting part of our Solutionsi.e., e-business Strategy and Design, Organization Change Management, Operational Effectiveness, Mergers and Acquisitions, and our traditional Industry Consulting. 2. Buy and Supply (6955-21A) This Category covers the buying side of business interactions. It includes our Solutions in SCM, e-procurement, and the rapidly emerging e-market activities. 3. Sell & Support (6955-22A) This Category addresses the customer needs to extend to multiple channels, lower sales and marketing costs, and improve responsiveness and quality of
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service. It includes our Solutions in Web Selling, CRM, and BI. New initiatives such as dot-coms are captured in this Category. 4. Enterprise Resources (6955-23A) This category includes our Solutions in Enterprise Application Systems and Application Management Services. These systems are typically transactionoriented around core production, delivery, and accounting processes. The Category also represents mature market industry Solutions with strong focus on after-market initiatives. 5. e-business Integration (6955-24A) This category creates business value for our customers by transforming their business processes and IT infrastructure so that they are aligned to compete in today's e-business world. The solutions included are: a. Security and Privacy b. Knowledge and Content Management c. Enterprise Application Development d. Enterprise Application Integration e. e-commerce f. Microsoft technologies Note that Custom Systems Integration (SI) (6950-27P) is not a Category. It represents first-of-a-kind custom development. This remains an important capability in certain parts of the world, but is being de-emphasized as customers move toward packaged solutions.
Practices
The financial business model is highly dependent on building capacity with specific skills at specific levels of experience. The capacity is best described organizationally around practices. Practices enable a group of persons with the same primary skill to continually develop the skill and maintain current knowledge in order to be competitive in the market place. As of this writing, there are 47 recognized practices that map uniquely to the categories. These practices are defined in detail at the end of this document. Each practitioner will be aligned with one primary practice. Based on the needs of the business, the practices might change over time as the services market evolves.
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e-business Strategy and Change

e-business Strategy and Design (A1)
A consulting service that helps clients develop a competitive e-business strategy and facilitates the end-to-end e-business transformation process.
Consultants with industry knowledge will assist clients to formulate an e-business strategy roadmap for clients' e-business initiatives by providing scenario-based planning, identification, and development of strategic capabilities and initiatives; definition of new business models, specification and preliminary requirements; and the development of a strategic roadmap for e-business initiatives. This service also assists clients to develop a comprehensive e-business design model that emphasizes integration across all of the e-business Solution Components. The Components include business, application, and technology architecture to support the e-business initiatives, as well as the definition and integration of business, management, and operational requirements. The deliverable of an e-business Strategy and Design consulting practice includes a roadmap of strategic e-business initiatives, a framework for implementing these initiatives, requirements for implementing them, and an integrated development and implementation plan. Mergers and Acquisitions (A2) The Mergers and Acquisitions Practice provides global cross-industry support to clients whose businesses are in the process of merging and who require targeted expertise and experienced resources to assist in the integration of existing resources in order to create a new merged company and technology structure. Organizational Change Management (A3)
A consulting service that leads clients in moving their organization to the enterprise's desired state by ensuring overall alignment of the organizational requirements with the process and technology requirements. The
Organization Change Practice plans to provide global support for the development and delivery of solution-based organizational change offerings. Consultants with organizational change skills will lead clients to address organization infrastructure requirements (referred to as Organization Analysis and DesignOAD) including organization structure, performance measures, role/job definitions, rewards and incentives, and other tangible aspects that motivate actions needed under a new vision, business direction, or business design. Consultants are further prepared to address the risks and productivity impacts of a particular implementation or change. These considerations are addressed through areas such as readiness assessments, transition management, change leadership, stakeholder participation, communications,
Appendix A. Listing of consultant and practice information
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and education and training (referred to as Organization Change ManagementOCM). This consulting service incorporates solution-specific offerings such as e-business Management System (helping clients to manage the business aspects of e-business), e-culture (addressing the specific organizational and transformation issues for becoming an e-business), and Change Toolkit (the electronic toolkit developed through the alliance between IBM and Rosabeth Moss Kanter of Harvard Business School). It also integrates elements of OAD and OCM into solutions such as Enterprise Resources and CRM. Operational Effectiveness (A4)
A custom management consulting service that provides assessments and re-engineering solutions for clients. Consultants help clients deliver
customer-perceived value through specific and measurable performance improvements in chosen, key processes aligned with their organization, analyze the processes in light of the overall corporate strategy and business objectives, assist in reinventing them, and leave behind an integrated set of new business processes organized around a set of business objectives.
Buy & Supply

Supply Chain Consulting (B1) Primarily engages in management consulting with a focus on business performance process improvement, supply chain operations assessment, economic opportunity prioritization, and implementation of supply chain monitoring systems through a partnership with Gartner e-Metrics. Procurement Consulting (B2) The Procurement Consulting practice provides the end-to-end continuum of services to address all of the needs of an enterprise to include management consulting, strategic sourcing, package implementation, and application hosting. This practice offers this full menu of offerings with the option of out-tasking all services or some portion of an enterprise's needs. Procurement Package ImplementationAriba (B3) This is the umbrella organization for package implementation work in the e-procurement area? Currently, the only package supported is Ariba; and the primary focus is on their Buyer product. This application suite enables clients to automate their procurement process on the Web; and in doing so integrate best practices, strategic sourcing, and other process improvements that reduce costs and improve efficiency. The e-procurement practice also has implementation skills for both the Ariba Marketplace and Dynamic Trade products. These consultants focus on the delivery of e-market projects with Ariba content. While Ariba is the only ISV currently in the practice portfolio,
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other e-procurement software providers will be evaluated to address the broad range of market place. Supply Chain Planningi2/Manugistics (B4) Provides package implementation services for i2 Technologies, Manugistics, and SynQuest. IBMs alliance with i2 makes it possible to partner more readily; and therefore maintain a high percentage of the engagements. By leading clients through i2 engagements, our consultants make possible better management of scarce resources while improving operational efficiencies and reducing costs. Enterprise Asset ManagementIndus/PSDI (B5) Does package implementation work for PSDI, Indus, and Mincom? These packages help customers operate and maintain critical capital assets in an efficient manner, reducing both downtime and costs for parts and supplies. Additionally, EAM applications have been adapted to drive Maintenance and Repair Operations in a variety of industries such as Utilities, Public Sector, and Transportation. Industry Solutions Buy and Supply (B6) Provides resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices. Other Buy and Supply (B7) Provides skills, skills expertise, processes, tools, and methodologies that cannot be associated with any of the defined Category Practicese.g., implementation skills for ISV packages other than the ones addressed by specific practices, or consulting skills which do not fall into any of the other practices.
Enterprise Resources
SAP/PeopleSoft Package Implementation (C1) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. Retek Package Implementation (C2) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis,
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configuration support, customization, data conversion, and application upgrade support apply to all software packages. Oracle Package Implementation (C3) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. JD Edwards Package Implementation (C4) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. Baan Package Implementation (C5) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. Lawson Package Implementation (C6) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. Application Management Services (AMS) (C7) Provides the skills, expertise, processes, tools, and methodologies needed to manage the customers ERP solution. These services offer the flexible and effective ongoing support for the customers ERP portfolio that is crucial for it to realize the return on its ERP investment. Our approach provides a stable ERP environment that performs according to defined service levels at a predictable cost. Package Enabled Business Transformation (PEBT) (C8) Provides a full complement of IBM consulting skills, industry knowledge, and best practices expertise which allows the customer to complete the
260
transformation of processes, organization, and infrastructure with packaged software while minimizing disruption to business, customers, partners, and suppliers. IT Infrastructure Package Implementation (C9) Provides an end-to-end service offering designed to facilitate rapid implementation of the architecture, planning, and implementation of a package-enabled infrastructure. The customer benefits from the maximization of implementation speed while business risks are minimized. Product Life Cycle Management (CATIA) (C0) Provides global, high quality, end-to-end CATIA and ENOVIA application1 consulting and implementation skills to help our customers use product innovation as a competitive weapon by leveraging knowledge and innovation. European Monetary Union (EMU) Transformation (CA) IGS helps with business impact consulting to consider previous and possible future markets, products, and customer relations. In addition, we provide assistance for each phase of the transition, based on clearly defined interfaces. This is achieved by a specific euro methodology called EuroPath. We offer industry consulting (analysis of the business and IT impact of EMU), business transformation consulting, IT consulting, and systems integration services, as well as education and training to educate customer staffs and their customers. We can assist in optimizing revisions to applications necessary to support the euro. HRACCESS Package Implementation (CB) Provides services for leading ISV application packages encompassing functional consulting for financial management, materials management, distribution, manufacturing, and human resources. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. Other Enterprise Resources (CC) Provides skills, skills expertise, processes, tools, and methodologies which cannot be associated with any of the defined Category Practicese.g., implementation skills for ISV packages other than the ones addressed by specific practices or consulting skills which do not fall into any of the other practices. Industry Solutions Enterprise Resources (CD) Provides resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices.
1
From Dassault Systemes
261
Corebanking (CE) Focuses on retail banking core systems amendments or replacementse.g., current accounts, deposit accounts, mortgages, loans, general ledger, management information systems, and customer information systems based on the use of the following IBM and ISV assets: Corebank2, IFW, SIB400, Zeus, HPS, Fiserv, Sanchez, M&I Eastpoint, IRIS, and CRA. Capital Markets (CF) Provides Global Financial Markets leads for application and business implementation projects within a defined set of customers comprising the international banks, securities companies, and financial institutions. It focuses on five key areas: Exchanges, clearing and depository institutions, and electronic crossing networks Trading and risk management Securities transaction processing Internet wealth management and brokering Payment systems
Sell & Support

Data Warehouse Consulting and Implementation (D1) Business consulting and implementation services for touchpoint capture, data management, ETL, data modeling, industry models, business reporting, OLAP, and balanced scorecard. Data Mining and Analytics Consulting and Implementation (D2) Consulting and implementation services for mathematical transformation analysis, customer segmentation, business modeling, optimal customer decisioning treatment 3, and campaign management. Siebel Package Implementation (D3) Implementation and integration services for packaged Siebel CRM Solutions. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support apply to all software packages. CRM Strategy Consulting (D4) Consulting that results in the development of a CRM business strategy, design, and plan for implementation of a packaged CRM solution.
2 3
From CBS Integrated Solutions A tested method to determine the optimal targeted segments, types of campaigns, and selling opportunities to offer to customers with the highest propensity to be profitable.
262
Management consulting with a focus on business performance process improvement, CRM operations assessment, economic opportunity prioritization, and implementation of CRM systems that allow customers to identify, select, acquire, develop, and retain profitable customers. CRM Package Implementation (D5) Implementation and integration services for industry-leading CRM e-business packaged solutionsincluding operational process, design and technology linkage, product evaluation and selection, infrastructure development, and integration with ERP and legacy applications. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support. Web Selling Strategy Consulting (D6) Strategy, globalization, and planning services for implementation of packaged Web selling solutions. Provides a business with management consulting services built around the ability to implement a secure, scalable solution to reduce the costs of doing business while broadening market reach. Web Selling Package Implementation (D7) Implementation and integration services for sell-off and auction, adaptive marketing, commerce site content management, e-commerce engines, e-market places and Web selling packaged solutions. Service capabilities for project planning, integrated project management, prototyping, fit analysis, configuration support, customization, data conversion, and application upgrade support. Mobile/Wireless CRM Application Services (D8) Services to design, develop/customize and implement CRM applications for pervasive devices, which includes capture, data storage, mathematical analysis, and CRM treatment. Systems integration and infrastructure services for pervasive device activation up through sending a record for application purposes. Industry Solutions Sell & Support (D9) Resources dedicated to support the delivery of Category-based industry e-business solutions, and not aligned with other practices. Interactive Branding and Design (D0) Consulting services to design and implement consistent branding across all customer touchpoints. Other Sell & Support (DA) Provides skills, skills expertise, processes, tools, and methodologies that cannot be associated with any of the defined Category Practicese.g.,
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implementation skills for ISV packages other than the ones addressed by specific practices, or consulting skills which do not fall into any of the other practices.
e-business Integration
Security and Privacy (E1) Our goal is to deliver to our customers the services and Solutions necessary to build trusted electronic relationships between their customers, employees, business and trading partners, and shareholders. It is on this foundation that our clients can successfully leverage e-business to deliver their brand promise. With decades of experience in safeguarding tens of thousands of customers and IBM internal systems and data centers, the IBM Security and Privacy Services team extends our experience by integrating security, privacy, and trust into e-business Solutions in the networked world. Our offerings are among the most comprehensive in the security services marketplace. Reflecting these marketplace needs, IBM provides end-to-end solutions that include and integrate assessment, design, implementation, and out-tasking services. We have proven that these services can be delivered quickly and consistently on a global basis to meet industry-specific client requirements. Uniquely, our experience and knowledge are instantiated into Intellectual Capital and Methodologies, which are leveraged for training and delivery. They are constantly appraised and new best practices are integrated and communicated to our worldwide team of practitioners. Knowledge and Content Management (E2) As e-business dramatically increases the flow of information within and across businesses, effective knowledge management leverages the information to fuel innovation and productivity growth. We help the customer understand, analyze, measure, and manage the organization's intellectual assets, turning corporate wisdom into market value. We help the customer scale these efforts through the effective use of collaborative, portal, and other Knowledge Management technologies. Of the next-generation management disciplines now emerging, knowledge management is an essential survival requirement. Enterprise Application Development (EAD) (E3)
Focuses on defining, architecting, developing, and implementing custom AD and SI solutions.
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Enterprise Application Integration (EAI) (E4) The charter of the Practice is to integrate LOB applications within and across enterprise boundaries. This capability is a fundamental requirement for executing our integrated e-business industry solution go-to-market strategy. Package Solutions, legacy applications, and custom developed business Solutions set the boundaries for EAI. EAI enables the system-to-system communication that end-to-end solutions require. The need for EAI crosses all sector and category boundaries. The technology used within EAI spans queuing, routing, data transformation, work flows, and business process management. Some of the technologies utilized within the practice are MQSeries, MQ Work Flow, MQSI, WebSphere, B2BI, Extricity, Web Methods, Vitria, CrossWorlds, and Tibco. The EAI market space is rapidly maturing. Rather than using custom development, customers are now addressing integration using EAI packages and purchased application adapters to reduce implementation cycle time, support cost, and maintenance. The EAI practice specializes in the architecture, selection, and implementation of these EAI ISV packages. Enterprise Service for Microsoft Technology (ESMT) (E5) The ESMT Practice focuses on providing Microsoft-based IT solutions for clients who choose these products as core components of their environments. It involves building deep skills in the Microsoft platforms, offerings that leverage Microsoft products as the core technology, and methods that are founded on the IBM SI Method but customized to incorporate Microsoft-based solutions. Practice capabilities include architecture, design, and implementation of Microsoft-based network operating systems, mail and messaging systems, server-based computing (thin client) systems, e-commerce solutions, supply chain solutions, portals, mobile/wireless solutions, and various other Web-based solutions. The strategic objective of this Practice is to ensure that IBM Global Services can demonstrate to prospective clients and industry analysts that we possess sufficient skill, capability, capacity, and experience in this segment of the IT services marketa segment where we are rarely considered a viable alternative. e-business Infrastructure and Performance (E6) Not relevant for AP and EMEA. e-commerce Solutions (E6) See Web Selling Strategy Consulting (D6) or Web Selling Package Implementation (D7).
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Pervasive Computing Infrastructure Services (E8) The Pervasive (mobile e-business) Practice provides customers with the capability of taking their e-business to the next stepmobile e-business. This practice has capabilities, methodologies, and software assets that can extend our clients businesses to reach their customers, suppliers, and employees anywhere and any time using wireless technology. Practice capabilities include building a wireless/mobile strategy with the customer, developing plans and pilots to extend its business to mobile e-business and the ability to do a full wireless implementation using the experience and assets from numerous IBM engagements. The pervasive practice coversbut is not limited tosuch key e-business areas as finance and securities, retail, travel, CRM, supply chain, ERP, and wireless portals.
Custom SI
Custom SI (F0) This code is to be applied to the practitioners that have no specific practice code but rather general custom SI skills.
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Appendix B.
Business partners and solution developers

This appendix lists Web sites for business partners, alliances, and solution developers (ISVs) referenced in this redbook:
Ariba
http://www.ariba.com
AT&T
http://www.att.com
Baan
http://www.baan.com
BroadVision
http://www.broadvision.com
Castek Software Factory

http://www.castek.com
CBS Integrated Solutions (Corebank)

http://www.cbs-solutions.com.au
267
ChannelPoint
http://www.channelpoint.com/
CrossWorlds Software
http://www.crossworlds.com/
Dassault Systemes (CATIA, ENOVIA)

http://www.dsweb.com/
E.piphany
http://www.epiphany.com/
EDGE Software Services

http://www.edgeservices.com
Entity Group Ltd

http://www.entity.co.uk
Ericsson Telecom
http://www.ericsson.com/
Evoke Software
http://www.evokesoft.com
Evolutionary Technologies International (ETI)

http://www.eti.com
Extricity
http://www.extricity.com
Financial Fusion
http://www.financialfusion.com/
Fiserv
http://WWW.FISERV.COM/
Gartner e-Metrics
http://www4.gartner.com/Init
HPS (HCL Perot Systems)

http://www.hclperot.com/
i2 Technologies
http://www.i2.com
Indus International
http://www.indusinternational.com
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JD Edwards
http://www.jdedwards.com
IRIS Integrated Risk Management

http://www.iris.ch
Kana Communications
http://www.kana.com
Lawson Software
http://www.lawson.com
M&I Eastpoint
http://www.eastpoint.com/
Manugistics Inc
http://www.manugistics.com
MicroStrategy
http://www.microstrategy.com/
Mincom Ltd
http://www.mincom.com
MRO Software (formerly PSDI)

http://www.mro.com
Onyx Software
http://www.onyx.com
Oracle
http://www.oracle.com/
PeopleSoft
www.peoplesoft.com
PSDI (now MRO Software)

http://www.mro.com
Qwest Communications
www.qwest.net
Retek
http://www.retek.com
S1 Corporation
http://www.s1.com
Appendix B. Business partners and solution developers
269
Sanchez Computer Associates

http://www.sanchez.com
SAP AG
http://www.sap.com
SAS Institute
http://www.sas.com
Siebel Systems
http://www.siebel.com
SynQuest
http://www.synquest.com
Tibco Software
http://www.tibco.com
Trilogy Development Group

http://www.trilogy.com
UUNet Technologies
http://www.uu.net/
Vality Technology
http://www.vality.com
Vignette
http://www.vignette.com/
Vitria Technology
http://www.vitria.com
Xchange
http://www.xchange.com
Zeus Technology
http://www.zeustech.net
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Related publications
The material listed in this section is considered particularly suitable for a more detailed discussion of the topics covered in this redbook.
Referenced Web sites

These Web sites are relevant as further information sources: Redbook home page:
http://w3.itso.ibm.com/
Industry Roadmap Navigator:

http://w3-3.ibm.com/services/srm/html/mainnavigator.html
FinNet (FSS home page):

http://w3-1.ibm.com/industries/financialservices/finsect.nsf
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Leveraging Customer Leveraging CustomerCentricity Centricity inin the the Financial Financial Services Services Sector Sector
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and Tivoli Enterprise are trademarks or registered trademarks of Tivoli Systems Inc., an IBM company, in the United States, other countries, or both. In Denmark, Tivoli is a trademark licensed from Kjbenhavns Sommer - Tivoli A/S. C-bus is a trademark of Corollary, Inc. in the United States and/or other countries. Java and all Java-based trademarks and logos are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and/or other countries. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States and/or other countries. PC Direct is a trademark of Ziff Communications Company in the United States and/or other countries and is used by IBM Corporation under license. ActionMedia, LANDesk, MMX, Pentium and ProShare are trademarks of Intel Corporation in the United States and/or other countries. UNIX is a registered trademark in the United States and other countries licensed exclusively through The Open Group. SET, SET Secure Electronic Transaction, and the SET Logo are trademarks owned by SET Secure Electronic Transaction LLC. Other company, product, and service names may be trademarks or service marks of others.
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Glossary
access point. The method by which people, employers, and service providers access computer systems. Can include branch offices, telephones, the Web, e-mail, and regular mail. adaptable enterprise infrastructure domain. The workstream of solutions which enables the client to design, develop, deploy, and operate the technology required for performance of business process automation. New business models require that all technology infrastructure be adaptable to changing business needs. Application Service Provider. A business organization that offers software application capabilities to its customers from centralized data centers via wide area networks (WANs), including the Internet. ASPs represent a form of outsourcing, in that their customers are not required to buy the software. bank assurers. Banks that offer insurance services business architecture. A high-level process view of the clients enterprise. Generic for the industry unless specifically modified for this client. business case. A financial model of the business value and costs associated with a client proposal. business intelligence. Tools, processes, and data that provide business functions in areas such as policy analysis, management reporting, and data warehousing. business issue. Something which is inhibiting the client form achieving its strategic intent or realizing a required business capability. business process domain. The workstream of solutions which enables the client to design and implement improvements to business processes necessary to execute the customer strategy. channel. A touchpoint (i.e., a method of accessing, communicating, and transacting with a company); examples are through the Internet, an agent, direct mail, and face-to-face channel management. The process of managing the methods by which communications are made to people, employers, and service providers. client value proposition. The cumulative effect of scope of value across the features proposed to this client. COBOL. The first widely-used high-level programming language for business applications. Many payroll, accounting, and other business application programs written in COBOL over the past 35 years are still in use, and it is possible that there are more existing lines of programming code in COBOL than in any other programming language. While the language has been updated over the years, it is generally perceived as out of date, and COBOL programs are generally viewed as legacy applications.
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cookie. Information that a Web site puts on your hard disk so that it can remember something about you at a later time. More technically, it is information for future use that is stored by the server on the client side of a client/server communication. Typically, a cookie records your preferences when using a particular site. Using the Web's Hypertext Transfer Protocol (HTTP), each request for a Web page is independent of all other requests. For this reason, the Web page server has no memory of what pages it has sent to a user previously or anything about your previous visits. A cookie is a mechanism that allows the server to store its own information about a user on the user's own computer. current state. A characterization of the clients business before any Customer Loyalty scenarios have been performed. customer acquisition. Acquiring a customer you did not previously have. Programs designed to prospect for new customers. Programs can be based on more or less-refined customer segmentation criteria and targeted to specific or broad audiences. customer development. Cross-selling and up-selling to a customer already in your book of business. Market research to identify distinct criteria which drive customer wants and needs, and data mining to segment customers into buyer groups based on how they relate to the organization s value propositions. Segmentation criteria include demographics lifestyle, psycho graphics, etc. customer lifetime value. Profiting from transactions over the life cycle of the relationship with the customer. Programs and services designed to increase wallet share of existing customers. Customer Loyalty. An enterprises activities to derive value through customer centricity.
customer retention. Holding the customer you have in your book of business longer, with the first objective being a greater period of time to profit from its activity after amortization of acquisition costs. Programs and services designed to increase longevity of existing customer relationships. Requires knowledge of customer preferences and behaviors which drive long-term relationships with the organization. Process to identify real and perceived customer requirements. Wants and needs are classified into basic requirements, satisfiers, and differentiators. customer strategy domain. The workstream of solutions which enables the client to develop the Customer Loyalty strategies required at each phase of strategic intent. customer value proposition. IBM has models and techniques for estimating the value to the business of creating a set of customer-centric capabilities. These business models use industry- and client-specific data to model the effect of the fundamental value drivers. data mart. A repository of data gathered from operational data and other sources that is designed to serve a particular community of knowledge workers. In scope, the data can derive from an enterprise-wide database or data warehouse, or be more specialized. The emphasis of a data mart is on meeting the specific demands of a particular group of knowledge users in terms of analysis, content, presentation, and ease-of-use. Users of a data mart can expect to have data presented in terms that are familiar. In practice, the terms data mart and data warehouse each tend to imply the presence of the other in some form. However, most writers using the term seem to agree that the design
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of a data mart tends to start from an analysis of user needs, and that a data warehouse tends to start from an analysis of what data already exists and how it can be collected in such a way that the data can later be used. A data warehouse is a central aggregation of data which can be distributed physically. A data mart is a data repository that can derive from a data warehouse or not, and that emphasizes ease of access and usability for a particular designed purpose. In general, a data warehouse tends to be a strategic but somewhat unfinished concept, whereas a data mart tends to be tactical and aimed at meeting an immediate need. data mining. The analysis of data for relationships that have not previously been discovered. For example, the sales records for a particular brand of tennis racket might, if sufficiently analyzed and related to other market data, reveal a seasonal correlation with the purchase by the same parties of golf equipment. Data mining results include:
The data warehouse concept is gaining acceptance in part because of the possibility of fruitful data mining. data warehouse. See data mart. deliverable. The concluding product of a feature. Described in the Statement of Work signed by the client. Should also be a GS Methods-compliant work product. desired state. A characterization of the clients business after all Customer Loyalty scenarios have been performed. disintermediation. The decline of middlemen companies that today operate between the buyer and maker of goods. Pundits predict this will happen with the use of commerce on the Internet. For example: the insurance, mortgage, auto, news, delivery, and stock brokerage industries might change dramatically over the next few years. The Internet allows many industries such as these to do business directly with their customers. e-business. The process of conducting business across the Web. enabling transition opportunity. A phase of infrastructure development which can enable the required business capability. enabling workstreams. A set of solutions across the phases of strategic intent which fit into a domain of enabling infrastructure. Similar practices or skill sets usually apply to the solutions in a domain and its workstream. engagement model. The package of solutions and/or features a practice wishes to perform under one Statement of Work. Should have GS Methods-compliant methodology in its Intellectual Capital management system.
Associations, or when one event can be

correlated to another event (beer purchasers buy peanuts a certain percentage of the time)
Sequences, or one event leading to another

later event (a rug purchase followed by a purchase of curtains)
Classification, or the recognition of

patterns and a resulting new organization of data (for example, profiles of customers who make purchases)
Clustering, or finding and visualizing

groups of facts not previously known
Forecasting, or simply discovering patterns

in the data that can lead to predictions about the future
Glossary
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enterprise resource planning. The business processes that are required to run a business. This is the name for the types of software packages that provide this function. explicit knowledge. Leveraging knowledge through software to form collaberative solutions. extranet. A private network that uses the Internet protocol and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. It has also been described as a state of mind in which the Internet is perceived as a way to do business with other companies as well as to sell products to customers. The same benefits that HTML, Hypertext Transfer Protocol (HTTP), Simple Mail Transfer Protocol (SMTP), and other Internet technologies have brought to the Internet and to corporate intranets now seem designed to accelerate business between businesses. An extranet requires security and privacy. These require firewall server management, the issuance and use of digital certificate or similar means of user authentication, encryption of messages, and the use of virtual private networks (VPN) that tunnel through the public network. Companies can use an extranet to: Exchange large volumes of data using Electronic Data Interchange (EDI) Share product catalogs exclusively with wholesalers or those in the trade Collaborate with other companies on joint development efforts
Jointly develop and use training programs with other companies Provide or access services provided by one company to a group of other companies, such as an online banking application managed by one company on behalf of affiliated banks Share news of common interest exclusively with partner companies feature. The smallest GS Methods-compliant element that IBM will sell; must have at least one deliverable, though more can be associated. governance domain. The workstream of solutions which enables the client to manage the business and customer strategies associated with Customer Loyalty. hot swap. The replacement of a hard drive, CD-ROM drive, power supply, or other device with a similar device while the computer system using it remains in operation. The replacement can be because of a device failure or, for storage devices, to substitute other data. Hot swapping works by providing a rack or enclosure for the device that provides an appearance to the computer's bus or I/O controller that the device is still there while it's being removed and replaced with another device. A hot swap arrangement is sometimes provided where multiple devices are shared on a local area network. Hot swap arrangements are sold for both Small Computer System Interface (SCSI) and Integrated Drive Electronics (IDE) hard drives. Hot swap versions of a redundant array of independent devices are also available. ISV strategy. Which ISVs that IBM recommends for automation of elements in the
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business and technical architecture. Also how IBM positions these in a larger architecture. kiosk. A small physical structure (often including a computer and a display screen) that displays information for people passing by. Kiosks are common near the entrances of shopping malls in North America where they provide shoppers with directions. Kiosks are also used at trade shows and professional conferences. More sophisticated kiosks let users interact and include touch screens, sound, and motion video. A number of companies specialize in creating multimedia kiosks. A simple kiosk can be created using HTML pages and graphics, setting the typesize large enough to attract people from a short distance, and removing the Web browser's tool bar so that the display screen is effectively in kiosk mode. The presentation can be designed to simply loop through a series of pages or to allow user interaction and exploration. knowledge networks/ICM. Provides the detailed methodology and engagement performance tools for each feature. Provides examples of work products and deliverables. Also contains proprietary information legacy application. In information technology, legacy applications and data are those that have been inherited from languages, platforms, and techniques earlier than current technology. Most enterprises that use computers have legacy applications and databases that serve critical business needs. Typically, the challenge is to keep the legacy application running while converting it to newer, more efficient code that makes use of new technology and programmer skills. In the past, much programming has been written for specific manufacturers' operating systems. Currently, many companies are migrating their
legacy applications to new programming languages and operating systems that follow open or standard programming interfaces. Theoretically, this will make it easier in the future to update applications without having to rewrite them entirely and will allow a company to use its applications on any manufacturer's operating system. In addition to moving to new languages, enterprises are redistributing the locations of applications and data. In general, legacy applications have to continue to run on the platforms they were developed for. Typically, new development environments account for the need to continue to support legacy applications and data. With many new tools, legacy databases can be accessed by newer programs. m-commerce. Mobile commerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commercewhich is based on the Wireless Application Protocol (WAP)has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States. metadata. Standard Generalized Markup Language (SGML) defines rules for how a document can be described in terms of its logical structure (headings, paragraphs or idea units, etc.). SGML is often referred to as a metalanguage because it provides a language for how to describe a language. A specific use of SGML is called a document type definition (DTD). This spells out exactly what the allowable language is. A DTD is thus
Glossary
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a metalanguage for a certain type of document. Hypertext Markup Language (HTML) is an example of a document type definition. HTML defines the set of HTML tags that any Web page can contain. Extensible Markup Language (XML), which is comparable to SGML and modelled on it, describes how to describe a collection of data. It is sometimes referred to as metadata. A specific XML definition defines a set of tags for describing a Web channel. In the case of SGML and XML, meta connotes underlying definition or set of rules. metrics. In software development, a metric is the measurement of a particular characteristic of a program's performance or efficiency. In network routing, it is a measure used in calculating the next host to route a packet to. A metric is sometimes used directly and sometimes as an element in an algorithm. In programming, a benchmark includes metrics. Navigator. An IBM tool that identifies client issues and presents solutions within transition opportunities that address those issues. Presents the features and their deliverables, which compose solutions. Provides sales collateral material for each opportunity. Used by both the initial proposal and roadmap teams. object-oriented programming. A revolutionary concept that changed the rules in computer program development, object-oriented programming (OOP) is organized around objects rather than actionsdata rather than logic. Historically, a program has been viewed as a logical procedure that takes input data, processes it, and produces output data. The programming challenge was seen as how to write the logic, not how to define the data. Object-oriented
programming takes the view that what we really care about are the objects we want to manipulate rather than the logic required to manipulate them. C++ and Java are the most popular objectoriented languages today. Online Financial Services. The application of online technologies, processes, organizational structures, and business models to improve efficiency and effective delivery of financial servicesincluding e-insurance, the new wealth bank, and the mobile Internet. organizational collaboration domain. The workstream of solutions which enables the client to adjust and improve the ability of its organization to collaborate in the execution of business processes. PDA. Personal digital assistant, is a term for any small mobile hand-held device that provides computing and information storage and retrieval capabilities for personal or business useoften for keeping schedule calendars and address book information handy. The term handheld is a synonym. Many people use the name of one of the popular PDA products as a generic term, especially PalmPilot. Most PDAs have a small keyboard. Some PDAs have an electronically sensitive pad on which handwriting can be received. Typical uses include schedule and address book storage and retrieval and note-entering. However, many applications have been written for PDAs. Increasingly, PDAs are combined with telephones and paging systems. pervasive computing. The use of a computing infrastructure that supports information appliances from which users can access a broad range of network-based
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services, including Internet-based e-commerce services. Pervasive computing thus provides users with the ability to conveniently access and take action on information. phase. The progression of a solution feature performed to IBM Global Services methodology. These phases are: Design Develop Deploy Operate portal. A term, generally synonymous with
to create a site that is personalized for individual interests. The term portal space is used to mean the total number of major sites competing to be one of the portals. proprietary system. In information technology, proprietary describes a technology or product that is owned exclusively by a single company that carefully guards knowledge about the technology or the product's inner workings. Some proprietary products can only function properlyif at all when used with other products owned by the same company. Redbook. Describes a Big Play and its transition opportunities for the sales team. redundancy. In information technology, the term redundant has several usages: 1. Redundant describes computer or network system componentssuch as fans, hard disk drives, servers, operating systems, switches, and telecommunication links that are installed to back up primary resources in case they fail. A well-known example of a redundant system is the redundant array of independent disks. 2. Redundant information is unneeded or duplicated information. 3. Redundant bits are extra binary digits that are generated and transferred along with a data transfer to ensure that no bits were lost during the data transfer.
gateway for a World Wide Web site that is or

proposes to be a major starting site for users when they get connected to the Web, or that users tend to visit as an anchor site. There are general portals and specialized or niche portals. Some major general portals include Yahoo, Excite, Netscape, Lycos, CNET, Microsoft Network, and America Online. Examples of niche portals include Fool.com (for investors) and SearchNT.com (for Windows NT administrators). A number of large access providers offer portals to the Web for their own users. Most portals have adopted the Yahoo style of content categories with a text-intensive, faster loading page that visitors will find easy to use and return to. Companies with portal sites have attracted much stock market investor interest because portals are viewed as able to command large audiences and numbers of advertising viewers. Typical services offered by portal sites include a directory of Web sites, a facility to search for other sites, news, weather information, e-mail, stock quotes, phone and map information, and sometimes a community forum. Excite is among the first portals to offer users the ability
Redundancy is the quality of a system, an item of information, or a bit that is redundant.

relational database. A collection of data items organized as a set of formally-described tables from which data can be accessed or
Glossary
281
reassembled in many different ways without having to reorganize the database tables. The standard user and application program interface to a relational database is the structured query language (SQL). SQL statements are used both for interactive queries for information from a relational database and for gathering data for reports. In addition to being relatively easy to create and access, a relational database has the important advantage of being easy to extend. After the original database creation, a new data category can be added without requiring that all existing applications be modified. required business capability. The fundamental high-level capability the client must have to realize the strategic intent of this phase. resource optimization. Managing the costs per transaction in sales and service to meet the needs of the customer in the most profitable manner. Contact Center Automation, Sales Force Automation, Channel Management, Skills Based Management, etc. Data mining to allocate organizational resources (people, processes, technology etc.) based on anticipated long-term profitability of finely-defined customer segments. scope of value. The quantifiable business benefit which the client will derive from implementing a specific transition opportunity. The value statements which describe the benefits to the client from a transition opportunity. Should be structured for modeling in a business case. server farm. A group of computers acting as common server and housed together in a single location. A server farm is sometimes
called a server cluster. A Web server farm is either: 1. A Web site that has more than one server 2. An Internet service provider (ISP) that provides Web hosting services using multiple servers. In a business network, a server farm might perform such services as providing centralized access control, file access, printer sharing, and backup for workstation users. The servers might have individual operating systems or a shared operating system, and can also be set up to provide load balancing when there are many server requests. In a server farm, if one server fails, another can act as backup. On the Internet, a Web server farm can refer to a Web site that uses two or more servers to handle user requests. Typically, serving user requests for the files (pages) of a Web site can be handled by a single server. However, larger Web sites can require multiple servers.
Web farm is a term that is also simply used to mean a business that performs Web site hosting on multiple servers. Some Web farms allow you to put your own server on their site, a service known as co-location.
Solution. One proposed element within an existing domain that is associated with a phase or required capability. IBM can perform this solution for the client. Solution component. A feature, asset, or competency which is brought to bear as part of an engagement Solution. stage. Refers to Customer Loyalty achievement at the level of strategic intent. If the term phase were used, the meaning would be identical. IBM will use the term phase in GS Methods documentation of the methodology for performance of a specific Solution feature.
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strategic intent. The desired business results for the client at a phase of maturity towards the desired state. A business case can be associated with this. streaming media. Streaming video is a sequence of moving images that are sent in compressed form over the Internet and displayed by the viewer as they arrive. Streaming media is streaming video with sound. With streaming video or streaming media, a Web user does not have to wait to download a large file before seeing the video or hearing the sound. Instead, the media is sent in a continuous stream and is played as it arrives. The user needs a player, which is a special program that uncompresses and sends video data to the display and audio data to speakers. A player can be either an integral part of a browser or downloaded from the software maker's Web site. tacit knowledge. Passing on best practices and mentoring by recording personal business experiences. technical architecture. A high-level view of the technology required to enable Customer Loyalty. Generic for the industry unless specifically modified for this client. telephony. The technology associated with the electronic transmission of voice, fax, or other information between distant parties using systems historically associated with the telephone. thin client. A low-cost, centrally-managed computer devoid of CD-ROM players, diskette drives, and expansion slots. The term derives from the fact that small computers in networks tend to be clients and not servers. Since the idea is to limit the capabilities of these computers to only essential applications, they tend to be purchased and remain thin in terms of the client applications they include.
The term thin client seems to be used as a synonym for both the NetPC and the network computer (NC), which are somewhat different concepts. The Net PC is based on Intel microprocessors and Windows software (Intel was a leader in defining the Net PC specification). The network computer (NC) is a concept backed by Oracle and Sun Microsystems that might or might not use Intel microprocessors and uses a Java-based operating system. The increased numbers of thin clients in today's workplace and educational facilities reflects a corporate and institutional need for low-cost computers dedicated to Internet use. time & risk. Profiting from competitive time to market with desired solutions while minimizing enterprise risk during change. transition opportunity. A business opportunity that describes the transition from a customer issue or concern to an IBM solution. trusted adviser. IBMs customers tell us two important things that help me in deciding how to run my division. They know that e-business is changing the fundamentals in their world. But they also know that they must meet their customers expectations of a 24x7 environment. They want a rock-solid, 24x7 solution from a technology adviser they can trust. Thats the goal I set for myselfto be that trusted adviser.Linda Sanford, Sr VP & Group Executive, Storage Systems Group. voice-over IP. A set of facilities for managing the delivery of voice information using the Internet Protocol (IP). In general, this means sending voice information in digital form in discrete packets rather than in the traditional circuit-committed protocols of the public switched telephone network (PSTN). A major advantage of VoIP and Internet telephony is
Glossary
283
that it avoids the tolls charged by ordinary telephone service. In addition to IP, VoIP uses the real-time protocol (RTP) to help ensure that packets get delivered in a timely way. Using public networks, it is currently difficult to guarantee Quality of Service (QoS). Better service is possible with private networks managed by an enterprise or by an Internet telephony service provider (ITSP). Using VoIP, an enterprise positions a VoIP device at a gateway. The gateway receives packetized voice transmissions from users within the company and then routes them to other parts of its intranet (local area or wide area network) or, using a T-carrier system or e-carrier interface, sends them over the public switched telephone network. Wealth Management. The aggregation of financial services that are targeted to specific, valuable customer segments and delivered through appropriate channels to maximize value to the enterprise work product. The conclusion of a task or set of tasks defined in GS Methods.
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Abbreviations and acronyms

AD AIX Application development Advanced Interactive Executive (IBM s implementation of the UNIX operating system) Application Management Services America Online Asia-Pacific Application programming interface Application service provider Automated teller machine Business-to-business Business-to-consumer WebSphere Business Components Composer Banking Data Warehouse Banking Data Warehouse Model Business intelligence Business issues/business solutions Business Innovation Services Business process procedures Business Processes Reengineering Compound annual growth rate Critical business process Contact Center Assessment Certificate of deposit DSS CMO COBOL CPO CRM CTI CVI CVM CxOs DB/DC DB2 DCE DeB DNIS CMA CMAT CeFS CEO CICS CIIS CLM Financial Fusion Consumer e-Finance Suite Chief executive officer Customer Information Control system Client Information Integration System Customer Loyalty Management Customer Management Assessment Customer Management Assessment Tool Chief marketing officer Common Business Oriented Language Customer Prospect Optimizer Customer relationship management Computer-telephony integration Customer value index Customer Value Management Chief x officers Database/data communication An IBM relational database management system Distributed computing environment Dynamic e-business Dialed Number Identification Service Data Set Services
AMS AOL AP API ASP ATM B2B B2C BCC BDW BDWM BI BIBS BIS BPP BPR CAGR CBP CCA CD
285
E2E EAD EAI EAM eBS ECA EJB EMEA EMU EPMS EPS eRM ERM ERP ESMT ETI FAMS FSDM FSFM FSOM FSP FSS FSWM GBT
Exchange-to-exchange (a form of B2B) Enterprise Application Development Enterprise Application Integration Enterprise Asset Management e-business Enterprise Customer Analytics Enterprise Java Bean Europe, the Middle East, and Africa European Monetary Union Entity Profiling Management System Enterprise Performance Suite Enterprise relationship management Entity Relationship Model Enterprise Resource Planning Enterprise Service for Microsoft Technology Evolutionary Technologies International IBM Fraud and Abuse Management System Financial Services Data Model Financial Services Function Model Financial Services Object Model Financial service provider Financial Services Sector Financial Services Workflow Model Global Brand Table
GIC GPRS HPS HTML IAA ICAP ICC IBT IDE iDTV IFW IGS IIW IKM IM IMS
Global information center General packet radio switching HCL Perot Systems Hypertext Markup Language Insurance Application Architecture Intellectual capital The SAS International Competency Center Industry based template Integrated data environment Interactive digital TV Financial Services Information Framework IBM Global Services Insurance Information Warehouse Institute for Knowledge Management Information management IBMs Information Management System (IMS/VSa mainframe DB/DC product) Internet protocol Independent software vendor (aka Solution Developer) Information technology Information Technology Services International Technical Support Organization Interactive voice response (VRU) Java 2 Enterprise Edition Java Database Connectivity Java Server Page Knowledge management
IP ISV IT ITS ITSO IVR J2EE JDBC JSP KM
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Leveraging Customer-Centricity in the Financial Services Sector
LAN LOA LOB LOI M&A MeB MIS MQFSE
Local area network Letter of authority Line of business Letter of intent Mergers and acquisitions Mobile e-business Management information system Message Queueing/Financial Services Edition (IBM MQSeries Financial Services Edition) MicroStrategy netCallCentre Network operating system Microsoft Windows NT Organization analysis and design Organization change management Operating environment Original equipment manufacturer Online Financial Services ObjectFX Online analytical process Operational level processes Online transaction processing Opportunity management Object oriented Property and casualty Personal digital assistant Package Enabled Business Transformation Project Management Institute Quality Assurance Rapid Analysis Measurement System
RDBMS ROE ROI ROWI S/390 S1
Relational database management system Return on equity Return on investment Return on Web investment A family of IBM enterprise servers An IBM business partner providing global Internet solutions for financial organizations Siebel Baseline Configuration Supply chain management Sales Force Automation Systems integration Service level agreement Signature Selling Method Small office/home office Statement of Work Universal Data Base Underwriting Profitability Analysis Uniform resource locator Virtual address Vision, mission, objectives, and strategy Voice response unit Wide area network Wireless application protocol Extensible Markup Language
SBC SSM SFA SI SLA SSM SOHO SOW UDB UPA URL VA VMOS VRU WAN WAP XML
MS NCC NOS NT OAD OCM OE OEM OFS OFX OLAP OLP OLTP OM OO P&C PDA PEBT PMI QA RAMS
Abbreviations and acronyms
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Leveraging Customer-Centricity in the Financial Services Sector
Index
Numerics
24x7 2, 110, 121, 149, 163, 247 205 America 10, 36 AMS 260 An Industry @ Risk 241 analysis data mart 147 analytical processes 145 software 69, 70, 72 tools 34 annuity 72 AOL 15 AP 219, 265 API 164 application adapter 162, 265 consulting 261 data requirements 152 demonstrators and analysis tools 160 deployment 164 development 121, 164, 182 hosting 258 integration 54, 64 interfaces 218 performance 164 service provider 120, 156 services 121 software 155 upgrade support 203, 259, 260, 261, 262 , 263 Application Development Suite 154 Application Framework for e-business 166 Application Management Services 256, 260 Ariba 258, 267 Buyer 258 Dynamic Trade 258 Marketplace 258 Asia 36 ASP 186, 189, 226 hosting services 157 asset acquisition 30 and liability management 139 base 38, 163 assimilated results 164
A
a la carte services 120 access channel 47, 118 information 245 point 3, 116, 118 account aggregation 148 information 195 management 247 records 191 accounting processes 256 acquisitions 9, 19 activity flow 135 actuarial 82 actuary 213 ad hoc discovery 69 engagement 141 partnership 15 query 28 AD solutions 264 adapter 163 adaptive marketing 263 advanced mining model 165 advertising campaign 76 advice and guidance 23, 27, 28, 30, 31, 39 advice-based customer interaction 42, 48, 246 advised account 10 advisory service 48 affinity portal 37 after-market initiatives 256 agency management 10 agent performance 131 agent support 247 aggregation model 255 aggregation services 195 AIX 148, 166 alert services 247 align the business to customer wants and needs
289
asynchronous response 162 AT&T 122, 267 ATM 47 auctions 201, 263 networks 201 audit 141 Australia 12, 167 auto insurance 245 auto purchases 10 availability 110, 121, 187 available market 181 Axio 145 XML 145, 146
B2B 15, 16, 36, 47, 113, 120, 138, 163 B2BI 265 B2C 113, 138, 163 Baan 267 Package Implementation 260 baby boomer 10 back office 2 administration 185 back-end adapters 225 application 88, 89 connectivity 121 integration 88, 225 system 162, 163, 225, 246 technologies 9 backup and recovery 121 backup procedures 119 balanced business scorecard 262 bandwidth-on-demand 122 bank assurers 11 bank deposits 11, 38 Bank of America 203 banking 2, 8, 11 , 14, 31, 115, 149, 194, 227 customer interaction 62 products and services 47 Banking Data Warehouse 61, 65, 70, 72, 74, 102, 147, 153 banks 9, 11, 14 , 18, 31, 114, 147, 151, 153, 194, 224 base infrastructure reuse 220 Baseline Client 207 BDW 6, 61, 65, 70, 72, 74, 102 , 147, 153 Database 102
Model 102 BDWM 102 Becoming Customer Centric 34, 87, 104 behavior prediction 72, 164, 171 best models 132 best practices 10, 11, 13, 124, 127, 128, 129, 171, 205, 207, 210, 258, 260, 264 BI 32, 39, 125, 137, 139, 165, 182, 196, 256 BIBS 207 Big Play 1, 21, 29, 32, 39, 41, 86, 222 bill pay/transfer warehouse 148 bill payment 148, 149, 150, 246 bill presentment 148, 149, 150, 194, 246 billing 27 fluctuations 186 BIS 6, 247 consulting engagements 156 practices 242 BlueCross/BlueShield 141 bonds 11, 38 trading 132 book of business 213, 243, 244 Booz-Allen, Hamilton 62 Boston 226 BPP 207 branch 47, 197 network 6 officer 47 personnel 204 renewal 4, 32, 35 scripting 205 brand architecture 77 associations 179 attributes 77 , 106 channel analysis 106 definition 178 identity 38, 77, 106 image 178, 179 management 178 mapping 178 measurement 178 name 178 or channel 35 performance 178 position 106, 173, 178, 179 research 106 strategy 106 , 107, 179 to customer connection definition 106
290
to customer value proposition 106 valuator 178 value 29 Brand Building Architecture 78, 172, 179 Brand Valuation 78, 172, 178 Branding Solutions 77, 106 branding strategy 76 Brazil 141 BroadVision 167, 267 broker/advisor 37 brokerage 9, 14, 18, 36, 37, 194, 203, 246, 247 brokers 31, 47, 204 budget 69 build or buy options 181 building for scale 169 business analyst 146 capabilities 21, 39 case 46, 108, 221, 246 climate 46 components 206 consulting 262 continuity 73, 110, 119 definitions 151 design 257 direction 257 drivers 28 flexibility 154 focus groups 172 functionality 88 goals 168 impact 261 information 151 intelligence 32, 44, 46, 115, 125, 196, 215, 226, 243 interest areas 243 issues 207, 218 metrics and measurement 171 model 7, 9, 13, 17, 19, 39, 45, 86, 134, 219, 257 reinvention 244 news 149 objectives 156, 221, 245 operations 26, 28 opportunities 15 partners 6, 15, 108, 159, 161, 165, 166, 167, 182, 189, 190, 194, 202, 204, 215, 222 performance 204 process improvement 258, 263
plan 46, 181 practice 202 problems 164, 242 processes 1, 8, 11, 12, 15, 16, 17, 34, 45, 48, 60, 74, 77, 86, 87, 111, 154, 156, 158, 163, 184, 190, 205, 206, 207, 219, 221, 256 impact 218 management 265 procedures 207 re-engineering 43, 44, 46, 112 recovery services 121 relationship life cycle 15 reporting 262 requirements 257 retention 213 risks 261 rules 144, 164, 182 engine 162 strategy 126 , 156, 222 system 184 infrastructure 158 transformation consulting 261 value 256 Business Case Development 61, 63, 65, 70, 72, 74, 84, 87, 108 Business Continuity and Recovery 63, 74, 89, 110 Business Intelligence Suite 153 Business Process Organizational Model 87, 112, 245 Business Processes Suite 153 Business Solutions 103, 207 business-oriented help desk 155 Buy and Supply 255, 258 buying behaviors 30 habits 243 history 197
C
C programs 144 calculating lifetime profitability by customer 244 call center 3, 43, 60, 64, 67, 74, 89, 110, 111, 186, 202, 204, 247 management 202 routing 188 volume 88 callbacks (as an alternative to waiting in a queue)
Index
291
188 CallPath 166 campaign code 60 process 200 success 131 Campaign Management 44, 46, 59, 69, 84, 103, 137, 159, 160, 199, 204, 226, 227, 244, 262 Canada 11, 36, 219 Canadian banks 186 capacity planning 118, 121 capital assets 259 Capital Markets 132, 203, 262 career development 118 cash management 15, 149 Castek 241, 246, 267 catalog data 224 cataloged results 165 CATIA 261, 268 CBPs 153 CBS Integrated Solutions 262, 267 CCA 65, 79, 82, 118 CD 11, 38 CeFS 4.0 63, 75, 89, 148 cell phones 11 centers of competency 241 change leadership 257 Change Management 46, 112, 143, 255, 257 Change Toolkit 258 channel 6, 7, 10 , 12, 18, 28 enablement 37 optimization 138 strategy 62, 124 Channel Management 48, 62, 85, 118, 247 ChannelPoint 6, 63, 89, 113, 268 Charles Schwab & Co 203 Charlotte 163 Chase Manhattan 203 checkout 219 chess 132 chief "x" officers 247 Chinese 167 churn analysis 199 CICS 224 CIIS 6, 61, 65, 72, 79, 84, 89, 115 claims 204 analysis 159 expenses 214 processes 2
reporting 246 clearing and depository institutions 262 click stream data capture 217 client behavior 217 experience 242 influence domain 247 management system 115 opportunity 47 value 206 Client Information Integration System 61, 65, 72, 79, 84, 89, 115 client server applications 141 client server architecture 165 CLM 124 close ratios 244 closed-loop customer relationship process 138 data flow 60 feedback process 243 marketing concepts 44, 46 marketing process 226, 227 method 22 process 30 CMA 61, 87, 127 CMAT 61, 87, 127, 129 Database 127 COBOL 144 C-officers 171 cold and impersonal customer interactions 245 collaboration 12, 26, 27 selling 190 technologies 264 co-location facilities 156 co-location services 120 commerce site content management 263 commercial banks 9, 11 commodity production 10 commodity trading 132 Common Adapter Factory 163 common customer experience 63 common respository 205 Common Transactional Protocols and Formats 70, 89, 117 communication 257 challenges and opportunities 241 channel 71, 166, 167, 204 infrastructure 119 model 225
292
Community Based Services 169 Community Knowledge Portal 169 company information 204 objectives 222 performance 175 positioning 60, 245 compensation 118 competency centers 242 competition 169 competitive advantage 19, 26, 42, 46, 171, 189 brands 106, 179 edge 168, 216 forces 247 pricing 213 rules and rates 213 Competitive Intelligence 169 complete client view 243 customer relationship 45 customer view 42, 43 financial picture 195 compliance 48 Component Broker 224 component-based development 225 component-based software system 225 Computer Telephony Integration 161, 187 configuration management 121 support 203, 259, 260, 261, 262, 263 tools 162 connected devices 205 consistency 136 consistent and personalized product and service delivery 42, 44, 243 service 44, 205 branding 263 consolidated financial information 195 consulting practices 241 consulting services 149, 215 consumer access 47 banking 148 content syndication 148 focus groups 172 location 46 needs 9
contact center 6, 47, 74, 118, 119, 202, 204 strategy 118 interaction flow 118 point 23, 138 response 23 Contact Center Assessment 65, 79, 82, 118 Contact Center Web Enablement 161 Contact Management 23, 27, 28, 30, 31, 46, 64, 79, 83, 118, 161 content creation 121 distribution 121 management 136, 168, 170, 218 model 135, 153 personalization 71 presentation 205, 224 provider 13 Content Hosting 70, 74, 120 continuity and recovery management 111 continuous-loop activities 1, 22 capability 32 marketing, sales, and service 203 relationship 22 Conversions and Data Rationalization 66 cookie 72, 217 core banking 246 core business retention 175 Corebank 262, 267 Corebanking 262 corporate banking 15, 194 culture 219 data 145 mission 135 portal 168 risk 82 strategy 158 wisdom 264 cost 247 considerations 88 efficiencies 13, 17 reduction 2, 9, 221, 258 savings 15, 222 CPO 61, 65, 130 , 131, 160 CRA 262 create a complete view of the customer 204 credit cards 11, 14, 36
Index
293
credit risk 183 critical IT infrastructures 110 skills 211 gaps 211 systems 110 Critical Business Processes 153 CRM 28, 32, 39, 71, 104, 105, 115, 118, 124, 125, 129, 138, 139, 140, 143, 159, 182, 187, 189, 190, 196, 201, 203, 206, 210, 256, 258, 262, 266 applications 201 e-business packaged solutions 263 holistic approach 125 implementation 263 infrastructure 201 operations assessment 263 point solution approach 125 projects 203 skills and technologies 201 touchpoint 207 treatment 263 CRM Package Implementation 263 CRM Solution Suite 159 CRM Strategy Consulting 262 cross-auction portals 201 cross-border retail 219 cross-IGS LOB contract signings 250 crossing networks 262 cross-sell 22, 29, 60, 115, 125, 138, 199, 201, 212, 214, 243 Cross-Selling Awareness Training 122 CrossWorlds 265, 268 CTI 187, 188 cultural change 129 cultural preferences 224 current accounts 262 brand position 178 business context 134 state 42 custody services 15 custom developed business solutions 265 Custom SI 266 Custom Systems Integration 256 Custom VRU Package 187 customer access and distribution channel 39, 162 acquisition 25, 125, 171, 192, 205, 244 analysis 227
analytics 31 and business capabilities alignment 126 attrition 164 analysis 102 awareness 76 base 130, 213, 246 behavior 8, 44, 61, 69, 140, 176, 180, 226, 227 benchmarking 127, 129 buyer group 255 buying patterns 255 campaign 227 care 148, 244 centricity 1, 2, 7, 8, 9, 22, 23, 25, 28, 29, 32, 42, 104, 112, 117, 204 communications 180 product 227 consultation 205 contact 64 point 115, 196 data 11, 123, 213 defined process/channel vision and action plan 126 demographics 9 development 25, 205 eligibility 213 expectations 9, 10, 175 experience 76 feedback 80 information 115, 123, 137, 204, 212, 215, 243, 246 management 24, 43, 60, 69, 89 system 138, 262 intelligence 104, 205 interaction 1, 22, 28, 64, 166, 227 knowledge 3, 9 life cycle 25, 203 analysis 183 lifetime 44 value model 200 management 115, 118, 159 capability 127 model 129 market segmentation 126 migration 175 navigation data 217 needs 9 orientation 30 portfolio 31 preference 71, 180
294
profiling 71, 72, 93, 103, 138, 175, 205, 217, 227 profitability 24, 28, 44, 45, 102, 153, 174, 175, 196, 197 prospect 199 ranking 164 relations 261 relationship strategy across channels 137 relationship-based selling propositions 19 responses 227 retention 2, 25, 28, 60, 159, 171, 172, 175, 192, 202, 214 campaign 199 sales 202 satisfaction 24, 118, 137, 139, 155, 172, 175, 176, 192, 206, 244, 245 segment 45, 60, 69, 104, 171, 180, 199, 262 selection 25 service 9, 48, 60, 69, 88, 106, 114, 189, 190, 192, 202 rep productivity 244 strategy 85 strategy 126, 161 statement 191 support 121, 122 center 244 switching behavior 176 testimonials 246 touchpoints 202, 203, 205, 263 trends 227 value 175 index 126 values 179 view 77 visualization 165 Customer Data Management 126 Customer File Design and Implementation 61, 65, 70, 72, 74, 79, 82, 84, 87, 89, 123 Customer Focused Processes and Channels 87 Customer Loyalty 2, 3, 4, 5, 7, 24, 25, 26, 31, 32, 34, 39, 46, 76, 108, 125, 137, 172, 174, 175, 176, 180, 185, 189, 214, 241 improvement program 108 strategy 108, 118, 124 Customer Loyalty Management 81, 87, 124, 126 Customer Loyalty Suite 87, 124 Customer Management Assessment 61, 87, 127 Customer Prospect Optimizer 61, 65, 130, 160 Customer Relationship Management 32, 34, 60,
123, 125, 148, 166, 167, 169, 196, 243 Customer Satisfaction, Loyalty, and Retention 78, 175 Customer Segmentation and Scoring 243 Customer Value Management 23, 24, 46, 118, 125, 244, 245, 246 customer-centered business model 12 management strategy 126 online services 11 strategy 74 Customer-Centered Strategy and Roadmap 87, 124, 126 customer-centric application 158 approach 45 behavior 5 business 26 architecture 89, 91 model 9, 10, 19, 45, 46, 85 capability 32 client 2, 6 end-state 42 enterprise 86 financial institution 203 in order to remain 211 organization 9, 45 process 31, 32, 112, 212, 225, 244 project 3 solution 26 specialist 2 view 24 vision 85 customer-driven content 195 customer-facing process 26, 45 processes aligned with customer and business wants and needs 42, 45, 244 system 227 customer-focused mission 245 opportunity 177 teams 244 Customer-Focused Processes and Channels 124, 126 customization 203, 259, 260, 261, 262, 263 customized service 48 CVI 124, 126 CVM 24, 124, 125
Index
295
CxOs 247 cycle times 245
D
Dallas 163 Dassault 261, 268 data accuracy 216 acquisition 212 aggregation 217, 243 analysis 212, 215, 217 analyst 146 analytics 138 audit 215 availability 86 capture 217, 263 center 110, 121 facilities providers 120 management 156 operations 120 cleansing 43, 44, 46, 215 conversion 66, 203, 259, 260, 261, 262, 263 exchange 73 extraction 43, 44, 46, 243 filtering 132 format 162, 164 hub 140 integration 212 hub 163 management 144 investigation 216 management 138, 158, 160, 245, 262 mapping 225 mart 60, 72, 84, 102, 136, 139, 153, 212 mining 43, 44, 46, 115, 118, 130, 137, 141, 164, 165, 182, 183, 196, 199, 212, 213, 215 analytics 165 standards 165 model 103, 151, 182, 262 overload 180 patterns 164 profiling 146 propagation tools and services 160 purchased from external sources 213 quality 43, 46, 86, 118, 145, 204, 215, 216 query 182 re-engineering 215, 216 repository design and development 43, 44, 46,
60 requirements 151 scoring 164, 165 source 118, 146 standardization and matching software 215 storage 118, 123, 263 stores 137, 143 traceability 160 transformation 162, 225, 265 typing 216 validity 216 variable relationships 196 warehouse 60, 69, 84, 86, 102, 103, 115, 137, 139, 143, 153, 159, 160, 182, 196, 204, 212, 215, 243 Data Hosting/Outsourcing 156 Data Mart Data Structures 102 Data Mart Design and Implementation 69, 244 Data Mining and Analytics Consulting and Implementation 262 Data Warehouse Consulting and Implementation 262 database administration 121 Datamonitor 62 day trading 38 DB2 102, 113, 164, 182, 196 Intelligent Miner Scoring Services 164 Universal Database 148, 164, 166, 215 DCE 224 DeB 15, 16 decision innovation network 169 making 216 support 132, 139, 153, 215 DecisionEdge 115, 130 for Relationship Marketing 159, 213, 215 declining profit margins 9 Deep Computing 132 Deep Green 82, 132 define business case 108 defining new segments 243 definition of business, management, and operational requirements 257 delayed response 162 delivery 206 capabilities 15 channel 19, 86, 195 , 241 options 119 processes 256
296
technologies 3, 9 demographic data 174, 199, 213, 227 profile 72 trends 10 deposit accounts 247, 262 deregulation 9, 11, 130 design and technology linkage 263 desired behavior 61 desired end-state 86, 87 destination site 31 Deutsche Bank 203 devaluation 132 development costs 158 strategy 245 time 158 device ubiquity 11, 36 diads 172 Dialed Number Identification Service 188 Digital Branding 46, 142 digital strategy 77 dimensional reporting 28 DirectTalk for AIX 187 direct-to-client information and services 47 disaster recovery 110, 119, 149 disclosures 12 disintermediation 9 disjointed channels 227 disk space 121 disseminated results 164 distributed computing environment 110 distributed objects 150 distribution 180, 259, 260, 261 channels 18, 28, 114, 173, 179, 202 costs 125 model 225 strategies 2, 114 system 12 DNIS 188 dot-com 120, 178, 204, 227, 256 drill-down analysis 69 DSS Agent 182 duplicate opportunities 250 dynamic data transformation and mapping 225 Dynamic Personalization 71, 217 dynamic transaction integration 225
E
E.piphany 167, 268 E2E 207 EAD 264 EAI 265 EAM 259 e-banking 3, 4, 32, 35, 148, 241 e-branding 76, 77 eBS 167 e-business 3, 9, 10, 12, 13, 15, 16, 17, 21, 24, 31, 32, 35, 39 , 41, 42, 46, 82, 88, 106, 110, 114, 120, 121, 134, 142, 145, 149, 155, 156, 163, 166, 167, 168, 173, 174, 181, 183, 184, 189, 190, 196, 201, 221, 222, 223, 225, 241, 245, 246, 256, 264, 265 application 158, 203, 204, 223 architect 245 case 221 consulting 114 data warehouse 204 dependencies 110 design model 257 hosting 121, 122, 156 Hosting Centers and Management Services 120 infrastructure 166 Infrastructure and Performance 265 initiatives 134, 221, 257 Integration 256, 264 investment 221 Management System 74, 81, 89, 134, 258 model 134 needs and priorities 241 security 198 sell-side initiative 221 services 149 portfolio 120 software 167 Strategy 134, 222, 245 and Change 255, 257 and Design 246, 255, 257 strategy consultants 222 strategy roadmap 257 transformation process 257 transitions 241 ECA 61, 72, 137 e-channel customer pathways definition 106 e-channel implementation 106 e-claims 10 e-commerce 36, 113, 137, 138, 165, 167, 190,
Index
297
196, 218, 219, 223, 256 engines 263 revenue 164 services 120 Solutions 265 econometric modeling 172, 181 economics 132 forces 247 opportunity prioritization 258, 263 e-CRM 183, 226, 227 metrics 226 e-culture 258 EDGE reports 250 EDGE Software Services 268 education and training 118, 258 e-enable 9, 35, 39, 119 e-enabled interaction at multiple customer touchpoints 42, 46, 245 e-enterprise 113 e-exchange 9 efficiency 258 e-finance 9, 148, 194 eFinance Experience 194 e-Governance 135 e-insurance 3, 4, 7, 9, 32, 35, 114, 241 e-invest 3, 241 EJB 224 electronic bill payment 3, 246 bill presentment 246 business model 29 contract 15, 17 crossing networks 262 registries 15 e-mail 47, 60, 72, 83, 167, 172, 204 tools 150 e-market 9, 114, 255, 263 projects 258 e-marketing 190 e-marketplace 104, 113, 120 hosting services 157 EMEA 11, 12, 167, 265 employee retention 211 employment 30 EMU 261 enable advice-based customer interactions 205 enabling technology 9, 24, 34 enabling transition opportunities 204 Encina 224
end-state 42, 60, 126 end-to-end business architecture 26 capability 43 e-business Solution 149 e-business transformation 134 security 162 service capabilities 241 transaction processing 113 Web-based financial services 150 engagement type 1 engagement work product reuse 242 English 167 ENOVIA 261, 268 enterprise asset management 259 client file 28 information 169 model 154 relationship management 166 reuse 151 value 45 view 227 Enterprise Application Development 256, 264 Integration 256, 265 Systems 256 Enterprise Class Hosting 149 Enterprise Customer Analytics 61, 72, 137 Enterprise Java Beans 223 Enterprise Performance Suite 87, 139 Enterprise Resources 256, 258, 259 Enterprise Service for Microsoft Technology 265 Entity Group Ltd 268 entity identification 216 entity integrity 216 Entity Profiling Management System 81, 141 Entity Relationship Model 151 entry point 42 environmental analysis 134 environmental forces 247 EPMS 81, 141 e-procurement 255, 258 software 259 EPS 87, 139 e-purchasing 192 equal billing plan 186 equities 38 trading 132
298
Ericsson 6, 268 ERM 151 eRM 166, 167 ERP 266 applications 143 environment 260 integration 263 investment 260 portfolio 260 solution 260 e-service 190 eSmartScript 205 ESMT 265 e-Start 63, 74, 89, 142 ETI 143, 268 ETIEXTRACT 70, 74, 79, 143 ETL 262 euro 1, 8, 261 EuroPath 261 Europe 9, 10, 11, 36, 38, 219 European Monetary Union Transformation 261 event mediator 10 Evoke 6, 70, 75, 145 Axio product suite 145 CRM Integration and Product Offerings 79 Repository 145, 146 Software 145, 268 Evolutionary Technologies International 143, 268 Exchange Applications 226 Exchange Platform technology 114 exchanges 201, 262 execution logistics 227 expanding consumer access using customer value management 245 experience 170 experimental physics 132 expert delphi 172 expert knowledge 132 explicit knowledge 168, 169 extranet 47, 88 extreme behavior predictive models 132 extreme up/down forecasts 132 Extricity 265, 268 EZ Mart 70, 75, 139, 147, 153
F
face-to-face contact 247 face-to-face interactions 205
FAMS 141 Farmers Insurance Group of America 203 fax 204 Faxback 187 feedback capabilities 246 Fidelity Investments 203 finalize business case 108 finance and securities 266 financial advice 149 analysis 183 and investment products and services 47 and strategic goals 211 brokerage firms 114 business knowledge 151 expectation methodology 222 impact 221 institutions 262 management 259, 260, 261 markets 2, 8, 9, 18 modeling 172 news 195 performance 181 planning tools 194, 195 reporting 85 review 173 risk 196 service provider 159, 194 services companies 113 firms 203, 204 industry 113 provider 159 Financial and Econometric Modeling 78, 181 Financial Fusion 148, 268 Consumer e-Finance Suite 63, 75, 89, 148 Server 148 Financial Services Data Model 70, 75, 102, 103, 151 Function Model 153 Information Framework 70, 75, 147, 153 Object Model 103 Workflow Model 154 firmographic information 174 first-of-a-kind custom development 256 Fiserv 262, 268 fit analysis 203, 259, 260, 261, 262, 263 fit gaps 206 fixed-income securities 11, 38
Index
299
Fleet Boston Financial Corporation 203 fluctuating currency 224 forecast firm exposure 132 forecasting 83 foreign exchange 132 forward auctions 201 framework reuse 242 France 11, 12, 37 French 37, 167 front-end system 163, 184 delivery 246 FSDM 70, 75, 103, 151 FSFM 153 FSOM 103 FSP 194, 195 FSS Center of Competence 163 FSWM 154 fulfillment and logistics 219 enablement-centric business model 19 information 224 full-service management 121 fully-managed services 121, 156 functional specialist 9 funds 18 asset allocation 27 flow 18 future anticipated policies 244 future buying behavior 197
marketplace 219 sharing 170 strategic alliances 201 strategic business partners 6 Global Brand Table 249 Global Infrastructure Strategy 73 globalization 1, 8, 9, 155, 218, 219, 220 go-to-market strategy 85, 181, 265 governance 32, 43, 46, 48 government involvement 12 government program 141 GPRS 36 Gramm-Leach-Bliley Act 12 graphical visualization 164 greenfields new wealth bank 246 groupware management 121 GS Methods 54 GUI personalization 71
H
handheld devices 205 hardware failure 187 installation 42, 43, 44, 46, 54 maintenance 121 platform 166 Hartford 203 Harvard Business School 258 HCL Perot Systems 268 health care 12, 141 Help Desk 63, 149, 155 high availability 89 high net worth customers 246 highly-valued customer 29, 48, 80, 82, 116, 244, 246 high-priority skills 211 high-risk individuals 214 high-speed Internet access 122 high-value segment 71 hiring 118 practices 211 historical claims data 213 historical sales and demographic information 200 HMO 141 Hogan 216 home buying 10, 14 home-grown system 144 homeowners insurance 245
G
gap analysis 43, 45, 46, 48, 87, 127, 129 Gartner 268 e-Metrics 258 GBT 249, 250 general ledger 262 geographic location 224 German 167 Germany 12 getsmart.com 14 GIC 11, 38 Glass-Stegal Act 11 global data centers 122 e-commerce 218 financial marketplace 220 knowledge sharing 170 market view 35
300
hosting 54 Hosting/Outsourcing 75, 84, 89, 156 hot backup 187 household/account profitability 24 house-holding 43, 44, 46 applications 215 households 199, 243, 244 how to engage 247 HPS 262, 268 HRACCESS Package Implementation 261 HTML 182 Human Capital Management 169 human resources 161, 211, 259, 260, 261
i2 Technologies 259, 268 IAA 61, 65, 70, 72, 113, 158, 159 data model 160 IBM Center for e-Branding Solutions 106 Fraud and Abuse Management System 141 Global Marketing Strategy Practice 171 Innovation Center 245 Intelligent Miner 160 netCallCentre Feature 187 netSelfServe 187 Security and Privacy Services team 264 SI Method 265 Strategic Outsourcing Service Delivery center 186 ICAP 251 ICC 196 iDTV 36 IFW 70, 75, 103, 147, 153, 262 IGS KM Consulting 170 knowledge and content management consulting 168 IIW 6, 61, 70, 75, 159 IKM 169 imperfect data 216 implementation and integration services 262, 263 cycle time 265 methodology 227 quick-start 163 roadmap 42, 63 services 262
skills 259 implementing a new wealth bank 246 import/export functions 141 IMS 144 inbound and outbound service 27 channel 226 customer request 227 increasing profits 171 index funds 11, 38 individual portfolio risk 132 Indus 268 industry benchmark 245 consultants 245 consulting 255 convergence 9 information 221 links 246 maturity 9 models 227, 262 Industry Solutions Buy and Supply 259 Enterprise Resources 261 Sell & Support 263 information architecture 153 distribution 182 engineering 151 flow modeling 184 overload 10, 38 technologist 151 infrastructure design and planning 64, 89 development 263 issues 218 innovation 9, 19, 264 centers 241, 242 design studies 246 insight 170 Institute for Knowledge Management 169 institutional finance 203 insurance 2, 8, 9, 11, 14, 18, 47, 62, 113, 114, 130, 141, 158, 160, 194, 203, 204, 213 analysis 183 broker 114 business scenarios 185 carrier 114 claims 141
Index
301
data 213 distribution and servicing 114 process 113 marketplace 5 provider 115, 159 Insurance Application Architecture 61, 65, 70, 72, 158 Insurance Information Warehouse 61, 70, 75, 159 integrated branding solution design and development 106 commerce 121 customer service center 155 networking architecture 161 processes 17 product configuration 83 solution 163 Integrated Voice and Data Networks 63, 65, 75, 79, 84, 89, 161 integration of business, management, and operational requirements 257 of IT with business strategy 110 point 185 processes 146 Integration Hub 65, 68, 69, 70, 75, 79, 83, 84, 89, 162 INTEGRITY 215 intellectual capital 170, 206, 210 Intellectual Capital and Methodologies 264 Intellectual Capital Management 169 intellectual property 170 intelligent lead generation and management system 130 Intelligent Miner 61, 65, 70, 72, 87, 164 intelligent routing 184 interaction 76 interactive analysis 146 data visualization 141 exchange 227 online selling 163 queries 191, 213 strategy affiliate marketing 106 updates 191 Interactive Branding 32, 39 , 75, 106, 263 Interactive Voice Response 161 interest-bearing securities 132 intermediary 3, 9, 18, 23, 28, 29, 48
internal selling 142 internal view 77 international banks 262 International Competency Center 196 international markets 35 internationalization 220 internationalized software base 220 Internet 2, 12, 13, 14, 15, 16, 23, 30, 31, 36, 37, 47, 62, 63, 71, 74, 82, 88, 113, 120, 130, 148, 149, 156, 172, 182, 190, 198, 201, 214, 217, 219, 220, 227, 247 behavior 217 portal 31, 114 self-service 47 service providers 122 software platform 223, 225 technology 120 wealth management and brokering 262 Internet-based applications 156 Internet-based technology 219 intranet 47, 88, 214, 220 intrusion detection 121 inventory 224 investment banking 11 investment decision-making 10 investments 175 recovery 181 strategies 10, 30, 38 investors 221 invoicing 219 IRIS 262, 269 issue admin expense 114 issue process 214 ISV 2, 6, 78, 88, 123, 158 , 161, 163, 220, 258 application packages 259, 260, 261 packages 259, 264, 265 IT architecture 245 consulting 261 infrastructure 256 services 35 strategy 222 IT Infrastructure Package Implementation 261 IVR 23, 187
J
J2EE 225 Japan 12, 167
302
Japanese 167 Java 130, 224, 225 Servlet 224 JavaBeans 223, 224 JD Edwards 269 Package Implementation 260 JDBC 223 JSP 224
K
Kana 166, 167 Advisor 167 Assist 167 Chat 167 Commerce 167 Communications 166, 241, 269 Conduits 167 Connect 167 Customization 6, 61, 65, 72, 79, 87, 89, 166 eBusiness Platform 167 I-Mail 167 Phone 167 Response 167 Service 167 Voice 167 Kanter, Rosabeth Moss 258 key business objectives 88 business processes 110 competitor 173, 174 focus areas 127 kiosk 30, 47 KM 168, 169, 170 knowledge creation 169 exchange 169 flow 169 strategy 168, 169 usage 170 Knowledge and Content Management 256, 264 Knowledge Disclosure through Storytelling 169 Knowledge Management 48, 77, 81, 87, 168, 264 Technical Services 169 Knowledge Retention in Mergers and Acquisitions 169
laptops 184 Lawson 269 Package Implementation 260 leads 243 account management 83 delivery system 243 legacy applications 191, 263, 265 business application 158 integration 202 organizational model 112 system 6, 28, 42, 88, 103 , 115, 117, 119, 143, 144, 162, 163, 184, 199, 216 lenders 31 lending process 154 Letter of Authorization 251 Letter of Intent 251 leveraging the Internet as a platform for revenue generation 204 life insurance 114, 245 life-cycle financial management 12 life-stage scenario development 244 Lifetime Customer Profitability 138 lifetime value 244 line operations 247 liquidation 22 liquidity analysis 102 LOA 251, 252 load balancing 121, 149, 188 load distribution 182 loans 148, 262 LoanSuite 154 LOB 2, 7, 28, 35, 38, 42, 43, 45, 112, 123, 124, 250 localization 220 location-based services 192 logical key integrity 216 LOI 251, 252 loss estimates 214 loss ratio 214 Lotus 154, 170 low-risk customer 214
M
M&A activity 11 M&I Eastpoint 262, 269 machine learning 132 mainframe 223
L
labor pool 119
Index
303
maintenance 265 making the right offer at the right time 204 managed conversion 163 e-business services 122 firewall 121 monitoring 121 storage services 157 management consulting 258, 263 information systems 262 policies 247 requirements 257 services 156 managing business partners 202 finances 14 products and features 247 service and support 247 technology 247 manufacturing 178, 259, 260, 261 costs 125 Manugistics 259, 269 mapping 160 margin-loan portfolio management 132 marine insurance 245 market analysis 132 and competitor positioning 80 behavior 132, 174 capitalization 110 conditions 17 coverage 175 data 172 definition 174 demand 4 dynamics 132, 158 economics 181 environment 19 expectations 1, 8 forecasting 132 information 195 leadership 226 management 28 opportunity 69, 181 penetration 181 perspective 178 position 45, 173, 174 potential 181
reach 218, 263 returns 132 segment 62, 84, 116, 120, 172, 174, 175, 180, 245 share 14, 48, 119, 139, 171, 180, 214 simulation 172, 180 size 181 strategy 117 structure 13 sub-segment 174 theme 21, 39, 41 trends 44 value 134 Market Analysis and Strategy 77, 81, 87, 171 Market Structure Analysis 77, 87, 171, 173, 174 market-centric business model 19 market-driven opportunity 177 marketer 213 marketing 23, 24, 25, 27, 28, 31, 43, 69, 80, 85, 88, 106, 139, 167, 203, 204 activity 60, 69, 179 automation 183 campaign 28, 63, 79, 138, 205, 227 capability 47, 60 channel 137 data warehouse 243 decisions 139 effort 84 interactions 205 manager 205, 224 mass 175 message 45, 60, 61 mix 62 objective 69 processes 126 research 171 results 199 strategy 171 , 173, 174, 175, 177 marketing-driven technical infrastructure 137 marketplace analysis 43, 46 marketplace penetration 125 materials management 259, 260 , 261 mathematical analysis 263 transformation 262 Maturity Model Survey 104 m-business 192 m-commerce 192 measurement 171 MeB 63, 85, 122, 192
304
memory utilization 121 mentoring program 118 merchandising 224 Mergers and Acquisitions 1, 8, 163, 169, 216, 255, 257 message and transaction management 162 broker 162 processing 162 publisher 162 receiver 162 routing 162 sender 162 subscriber 162 messaging 150 architecture 162 hub 117 adapters 191 metadata 143 methodology reuse 242 metrics 32, 118, 124, 135 , 138 , 171 , 181 , 221, 226 Micro Business Banking 149 micro form factor technologies 242 Microsoft server-based computing systems 265 technologies 256 Windows client 182 Microsoft-based IT solutions 265 mail and messaging systems 265 network operating systems 265 MicroStrategy 61, 70, 72, 81, 83, 84, 182, 269 Web 182 Mincom 259, 269 mini-groups 172 MIS 152 mobile devices 205 e-business 192, 266 e-marketplaces 192 field solutions 202 phone 36 synchronization 83 wireless 71 solutions 265 workers 184 workforce 192 Mobile Internet 3, 4, 7, 32, 35, 241 Mobile/Wireless CRM Application Services 263
modeling guide 158 money center 11 flow 133 management advice 195 Morningstar 71 mortgages 14, 72, 262 MQ Work Flow 265 MQSeries Adapter Offering 184 base messaging 184 Everyplace 184 Integrator 184 messaging 184 Workflow 184 MQSeries/MQSFSE 6, 65, 68, 70, 75, 79, 83, 85, 89, 113, 117, 148, 166, 184, 191, 194, 224, 242, 246, 265 MQSI 265 MRO Software 269 MS Architect 182 Intelligent Server 182 Transactor 182 multichannel business intelligence practices 138 distribution 2 marketing campaigns 205 personalization engine 205 multicultural functionality 224 multicurrency support 247 multi-dimensional analysis 182 multi-dimensional profitability quantification 43, 44, 46 Multi-Industry Center of Integration 163 multi-line financial services 243 multiple channels 2, 204 client entry points 3, 5, 6, 241 touchpoints 191, 203, 225 multi-vendor, multi-platform IT environments 110 mutual funds 11, 36, 38, 132
N
Narrowcast Server 182 national industry practices 242 National Multi-Industry Practice 252 net present value 244
Index
305
netCallCentre 65, 79, 83, 85, 89, 186 net-enabled phones 36 Netfinity 114, 166, 187 network 111, 119, 121 availability 122 communities 170 computing 198 management 122, 161 monitoring 121 operations 149 service level 122 technology 13 new growth opportunities 9 media challenges and opportunities 241 product 177 service 177 wealth bank 5, 7, 246 wealth segment 10 New Product and Services Innovation 78, 81, 176 next-generation contact centers 202 niche opportunity 174 Nordic countries 12 North America 11, 12, 36 NOS administration 121 not-for-profit firm 178 NSSO 249 NT 166
O
OAD 257, 258 OASIS 247, 248, 249, 250, 252 object modeling 191 object-oriented development 103 message representation 225 system 151 technology 151 OCM 258 OEM 187 official language 219 off-line brand 171 OFS 241 OLAP 182, 262 OLP 207 OLTP application 165 OM 248 OMNOTES 249, 250
one-to-one marketing 148 capability 194 online analytical process 182 auctions 201 banking 3, 5, 14, 36, 37 behaviors 227 business channel 28, 29 catalogue 190 customer 178 enabling tools 14 home lending 14 insurance 3, 14 mortgage 14 offline model 77 payment 14 promotional e-branding solutions 106 sales 14, 88 and service 119 self-service 204 selling 185 surveys 190 technologies 7 Online Financial Services 4, 7, 14, 32, 35, 36, 39, 47, 212 Onyx 187, 269 2000 190 ASP 65, 85, 89, 189 Portal Customer 190 Employee 190 Partner 190 operational decisions 139 efficiency 196, 259 metrics 125 model 48 processes 9, 48, 263 requirements 257 risk 196 roadmap 126 Operational EDGE reports 250 Operational Effectiveness 255, 258 operational-level processes 207 Operations and Process Design for Interactive Transactions 65, 68, 75, 79, 83, 89, 191 opportunity decision-making 251 identifier 248, 249, 251
306
management 247, 248, 249 rules and guidelines 249 owner 248, 249, 250, 251 optimal customer decisioning treatment 262 optimal marketing communications mix 174, 175 optimization algorithms 137 optimized marketing channels 137 optimized prospect list 130 Oracle 216, 269 Package Implementation 260 order processing 84, 190 ordering 219 organization analysis and design 257 Organization Change Practice 257 organization structure 257 organizational effectiveness 17 mission and goals 211 performance 168 realignment 9 role 48 Organizational Change Management 257, 258 Organizational Network Analysis 169 Other Buy and Supply 259 Enterprise Resources 261 Sell & Support 263 outage 110 outbound channel 226 outreach channels 245 outsourcing 15 , 54, 119, 120, 156, 161, 186 out-tasking 258, 264 Overflow VRU Package 187
P
P&C 30, 141 Package Enabled Business Transformation 260 package evaluation 79 package implementation 258, 259 Package Integration 54, 78 packaged framework 163 packaged solutions 256, 265 package-enabled infrastructure 261 pagers 182, 247 parallel computing 132 partner relationship management 202 partnering 12, 15, 17, 47 pattern recognition 132
pay-as-you-go fee structure 201 payment process 219 regulations 224 services 15, 27 systems 262 paymybills.com 14 pay-per-use pricing structure 186 PDA 11, 182, 184 PEBT 260 people 26, 118 PeopleSoft 259, 269 performance guarantees 14 improvements 258, 263 management 118, 121, 245 measurement 46, 257 tools 162 Perot Systems 268 personal financial data 195 personal liability insurance 245 personalization 26, 27, 71 capabilities 204 engine 205 personalized customer experiences 137 messages 182 product and service delivery 44 service 10, 26 Web content 224 Pervasive Computing 10, 32, 39, 63, 82, 85, 192, 242 Infrastructure Services 266 pervasive devices 223, 263 activation 263 phased implementation 74 phone 167 physical access point 28 plan administrator 82 development and release strategy 245 sponsor 82 platform independence 163 platform-independent code 191 point analysis 28 point solutions 125 policies 135 data 213 inquiry 246
Index
307
portfolio rates 214 portfolio risk 214 records 191 populating the business case 108 portals 3, 265 technologies 264 portfolio development 80 diversification 35 managers 132 performance valuation 25 portfolio-based enterprise 18 positioning concept and statement 77 potential lifetime value 200 practice portfolio 258 predictable business results 242 Predictive Modeling 78, 172, 180, 243 pre-engagement marketing task 108 preferred channel 45 preferred customer segment 180 premiums 214 adjustment 214 pricing 138 presentations 83 pricing 48, 63, 80 options 201 strategy 173, 180 privacy 11, 73, 82, 198, 218, 264 and award information 246 proactive report delivery 182 problem isolation and recovery 162 problem solving 169 process 24, 26, 61, 135, 138 improvement 258 management 162 model 191 realignment 9 processing object model 191 Procurement Consulting 258 Procurement Package Implementation 258 procurement process 258 procurement system 201 product and services information 245 catalog 219 density 24, 28 development 45, 80, 82, 85, 213 evaluation and selection 263 features 19
information 204, 205 innovation 172 life cycle 9, 181 line reconfiguration 44, 46 management 159 maturity 9 mix 173 portfolio 82 service history 123 solutions 243 Product Life Cycle Management 261 Product/Portfolio Planning and Pricing 80 product-centric business model 43, 45 production processes 256 production/manufacturing-centric business model 19 production/manufacturing-centric enterprise 86 productivity 154, 264 profile generation 217 profile group 43 ProfileIVR Option 188 profiling 141 profit 247 profitability 2, 25, 44, 61, 139, 183, 221, 222 analysis 103, 159, 213 predictor 200 profitable relationships 243 Program Management 32, 61, 63, 65, 68, 70, 73, 75, 79, 81, 83, 85, 89, 193 programmer productivity 143 project design 154 implementation costs 143 maintainability 143 management 42, 54, 121, 146, 203, 259, 260, 261, 262, 263 planning 203, 259, 260, 261, 262, 263 time 154 promotion history data 227 promotional activities 173 opportunities 201 strategy 180 propagation plan 69 propagation software 43, 44, 46 propensity scoring 243 propensity to buy 244 Property & Casualty 30, 113, 213 proposals 83, 248
308
proprietary system 144 prospect evaluation 214 prospect information 212 prospecting costs 244 prospective customer 79 prospects 212 prototyping 142, 203, 259, 260, 261, 262, 263 provide consistent and personalized product and service deliver 205 provider 48 providing service across all channels of customer interaction 204 provisioning 121 Prudential PLC 203 PSDI 259, 269 psychographic profile 72
Q
QA 251 QCi Customer Management Model 127 quality of service 64 quantitative portfolio management 132 quantitative research 172 queuing 265 Quick Start 160 quicken.com 15 Quickstart Engagement Solution 192 quotation facilities 245 quote management 83 Qwest 122, 269
R
rack and DNS setup 121 RAMS 172 Rapid Analysis Measurement System 172 rapid iterative prototyping 142 RDBMS 164 readiness assessment 257 real-time approval 14 reboot 121 receiving application 162 recommended linkages 77 recruitment 156 Redbooks Web site 271 Contact us xv reduced cycle times 14 redundant fiber connection 122
integration 185 network 122 Region Multi-Industry team 253 regional industry practices 242 regulations 8 regulators 132 regulatory challenges and opportunities 241 environment 173 forces 247 process 48 relational database 141, 182, 223 relational view 123 relationship depth 125 manager 204 marketing 160 release strategy 245 reliability 110 remote support 155 repeat business 24 repeat purchase analysis 24 reporting relationships 135 representation model 225 repurposing 71 reputation 245 research analysis 77 centers 242 distribution 183 resource management 155 response management 23 responsiveness 61 retail 227, 266 banking 14, 45, 148 , 203, 262 channels 202 financial services 241 investment 2 retailer 14 Retek 269 Package Implementation 259 retention 24, 25, 26, 29 analysis 214 management 212 plan 211 prediction 22 program 244 retirement 10, 38 benefits 12
Index
309
income 11, 38 plan 82 savings 10, 12 retraining 156 Return on Web Investment 221 returns handling 219 revenue 8, 14, 247 growth 221 objectives 204 stream 181, 250 reverse auctions 201 review and approval process 248 rewards and incentives 257 ripple effect 185 risk 135 analysis 44, 103 and opportunities 222 exposure 213 factors 213, 214 , 219 groups 213 improvement 214 management strategy 213 pricing 159, 160 profile 214 reduction 242 Risk Management 29, 81, 139, 213, 241, 262 ROI 108, 221, 222 model 109, 246 role/job definitions 257 routing 265 ROWI 63, 221, 222 RS/6000 114, 166, 194 rules and rates 213 rules engine 162
S
S&D 248 S/390 225 enterprise server 148 S1 6, 63, 194, 269 Consumer Suite 194, 195 eFinance Experience 194 sales 23, 24, 25, 27, 28, 29, 31, 106, 167, 203 administration 83 analysis 83, 183 and marketing expense 114 and service strategies 244 automation 202
campaign 199, 214 channel 222 cost 84 cycle management 84 cycle time 114, 206 decisions 139 forecasting 83 information 204 interactions 205 process 243 productivity 84 propensity model 22 prospect 199 representative 79, 83 response information 200 strategy 175 Sales Force Automation 83 Sanchez 262, 270 SAP 270 Peoplesoft Package Implementation 259 R/3 216 SAS 61, 70, 81, 83, 85, 149, 196, 270 savings 11, 36, 247 SBC 207 scenario-based planning 257 scenarios 134 scheduling 83, 118 Schwab 15, 203 SCM 255 scoping and planning templates 210 scoring 44, 46 algorithms 199, 200 models 243 script writing 121 Sector Category Team 252 securities 2, 11, 18, 38 companies 262 transaction processing 262 security 43, 46, 73, 82, 89, 110, 121, 122, 162, 182, 184, 198, 218, 264 and privacy architecture and design 198 assessments and planning 198 implementation 198 management 198 policies 70 specialist 198 Security and Privacy 256, 264 Design and Implementation 61, 65, 70, 73, 83,
310
87, 89, 198 segmentation 44, 46 and modeling 43, 48 management 159 models 243 Segmentation and Scoring 61, 65, 70, 73, 81, 87, 199, 243, 244 segmented and scored leads 243 self-service 14, 37, 155 Sell & Support 255, 262 Strategy and Roadmap 85, 247 sell cycle 249, 250, 251 sell-off 263 sell-side solution 222 sending application 162 server management 121 service 23, 24, 25, 28, 31, 167, 203 automation 202 center 88 channel 29 costs 155 innovation 172 interactions 205 life cycle 181 quality 86, 116 standards 24 service level agreements 17, 118 servicing 80 costs 125 settlement 219 and clearing models 133 SFA 83 shipment confirmation 219 short-term gain 38 short-term signals 132 SI 256 solutions 264 SIB400 262 Siebel 6, 187, 270 Analytics 204 ASP 65, 85, 90, 189, 201 Baseline Configuration 207 Baseline Pre-Configured Client 207 Call Center 204 applications 202 channel applications 202 Customization 61, 65, 73, 79, 85, 90, 203 database 205 dot-com applications 201, 204
dynamic commerce applications 201 e-business applications 204 eChannel 204 eSmartScript 205 field sales applications 202 field service applications 202 IBT 61, 65, 73, 79, 85, 90, 206 industry applications 202 Marketing 204 Package Implementation 262 Personalization 205 Systems 241, 246 signal processing 132 Signature Selling Method 249 significant data attributes 200 silo 18, 43, 123, 191, 244, 247 Singapore 12 single consistent view of the customer 204 point of failure 122 view 123 site and content management 218 entrance 219 marketing 218 traffic 246 skills 156, 211 gap 211 closure plan 211 profile 118 shortage 88 Skills Management 61, 87, 211 skills-based routing 188 smart phones 36 softphone 188 software base 220 failure 187 hub 162 integration 42, 54 packages 203, 259, 260, 261, 262 SOHO 149 Solution Offering 58 Solution owner 248, 251 source data 146 source-to-target transformation map 145 South Africa 12 Spanish 167 speed to market 190, 242
Index
311
SSM 248, 249, 251 sales aids 251 tools/sales aids 251 staff assessment 43, 45, 46, 48 level 245 management 118 shortages 110 staffing 118 stakeholder participation 257 standards 135 starburst business 206 Statement of Work 252 statistical model 72, 180 statistical proofs 196 stock inventory 133 loan/shorting 133 portfolio management 132 price 1, 8 selection tools 132 storage requirements 156 storage utilities 120 strategic alliance 9, 19, 35 capabilities and initiatives 134, 257 consulting 54 goals 211 impact 221 intent 21, 28, 134 LOB plan 43 marketing efforts 180 issues 171 plan 171 metrics 125 objective 42 partnership 19 plan 60 planning 219 relationships 15 roadmap and business architecture 134 sourcing 258 strategists 132 strategy and implementation roadmap 46 strategy planning and execution 241 , 242 streaming media services 120 streamlined processes 222 stress testing 121
submission software 72 subsidy programs 12 suppliers 173, 197, 219, 242 relationships 196 supply chain 12, 15, 183 , 266 monitoring systems 258 operations assessment 258 planning 259 solutions 265 Supply Chain Consulting 258 support all customer touchpoints 205 cost 265 services 244 survey data 243 sustaining a competitive advantage 171 swap space 121 Switzerland 219 SynQuest 259, 270 system administration 121 consolidations 216 construction 225 infrastructure services 263 integration 117, 121 , 123, 161, 261, 263 management 121 manager 162 rewrites 216 tuning 182
T
tacit knowledge 168, 169 target audience 84, 172, 174 Target Audience and Market Segmentation 77, 87, 174 target market 31, 223 targeted campaign 226 customer group 81 lead 130 marketing campaign 164, 243, 244 segment 199 targeting products and services to value-based customer segments 243 taxation laws 224 team selling 84 technical and analytical skill requirements 43, 45, 46, 48
312
technology changes 26 technology leadership 242 technology-enabled services 9 telecommunications carriers 122 telephone 161, 172, 184, 188, 197, 204 telephone-based interactions 205 telephony 47, 187 teller 225 text-based chat 204 The Hartford Financial Services Group 203 thin client 205, 265 thin layer visualization 77 Third Party Data Integration 61, 70, 87, 212 third-party data 212 provider 200 vendor qualification and selection 212 vendors 212 thought leadership 242 throughput 118 Tibco 265, 270 ticker data indicators 132 tiered service program 31 time deposits 247 time to market 29, 142, 167, 201 Tivoli 113, 187 tools and techniques 77 touchpoint 1, 22, 27, 46 , 47, 60, 71, 81, 86, 88, 137, 205, 207 capture 262 trade floor reporting 183 matching 10 shows 84 traders 132 trading 132 and risk management 262 partner 16, 17 transaction coordination 225 costs 15 enablement 38 information 224 processor 48 workflow 218 transaction-based business model 48 transaction-based services 48 transition 42 cost 86 management 257
opportunity 39, 41, 42, 44, 53, 82 transitioning to a customer-centric business model 244 travel 266 Treasury bills 11, 38 treatment and response model 22 trend analysis 178 triads 172 Trilogy 6, 270 Trust Services 45 trusted advice 14, 48 trusted advisor 12, 38 turn-time 86
U
UBD 182 ubiquitous access 31 UK 9, 11, 12, 36 unassigned/orphan clients 243 understanding customers 171, 175, 204 underwriter 213 underwriting 159, 214 expense 114 rules 213 and profitability 214 Underwriting Profitability Analysis 83, 160, 213 unit servicing costs 31 universal server farm 122, 149 UPA 83, 160, 213 update business case 108 up-sell 22, 29, 138, 199, 212, 243 URL monitoring 121, 217 US 9, 11, 12, 14, 38, 141, 167 , 219 usage 43 using the business case tool 108 UUNet 122, 270
Valex 160, 226 Vality 61, 65, 70, 85, 215, 270 valuable customer segments 7 value chain 9, 10, 25, 31 nets 134 proposition 1, 6, 8, 9, 13, 14, 15, 29, 31, 34, 134, 171, 206, 239, 241 value-added content 195 value-based
Index
313
business model 28, 29, 48 customer segmentation 243 customer segments 28, 29 pricing option 251 vendors 197 partnerships 242 Vignette 167, 270 virtual call center 188 vision transition 142 vision, mission, objectives, and strategy 118 Visual Warehouse 215 VisualAge for Java 224 Vitria 265, 270 VMOS 118 voice 182, 183, 188 and data infrastructure 119 communications 161 response units 47 systems 166 telephony technology 47 voice-over IP 204 volatility forecasting 132 VRU 187, 188 vulnerability analysis 121
W
walk-up 47 wallet share 28, 29, 35, 38, 44, 125 analysis 102 WAP 225 phones 223, 247 Wave I 12, 13, 14 Wave I/II hybrid enterprises 13 Wave II 13, 14 wealth accumulation 10 Wealth Management 2, 3, 4, 6, 7, 31, 32, 37, 38, 39, 48, 82, 241 wealth transfer services 10 Web 6, 13, 14, 15, 36, 38, 61, 71, 121, 122, 130, 148, 161, 167, 182, 183, 194, 197, 202, 204, 217, 223, 243, 245, 258 analysis 72 application 224 architecture 166, 167 banking 149 browser 130, 182, 188, 213, 214 channel 112, 117 content 224
enable 47, 88, 89 hits 186 hosting 120, 156 links 72 personalization 72, 227 self-help application 190 selling packaged solutions 263 selling strategy 74 server 110 architecture 43, 44, 46 site 64, 71, 72, 76, 89, 136, 142, 143, 150, 195, 246 design and development 46 integration 89 strategy 222 technology 130, 194, 222 traffic analysis 121 traffic pattern tracking 137 Web Analytics 62, 65, 73, 79, 137, 217 Web Enablement 88 Web Methods 265 Web Selling 32, 39, 218, 256 Globalization Planning 63, 75, 218 Package Implementation 263, 265 Return on Web Investment 63, 221 Solution Planning workshop 218 Strategy Consulting 263, 265 Web-architected application 167 Web-architected e-business 167 Web-based application 131 banking 150 interactions 205 solutions 120, 265 support 155 transactions 138 WebSphere 6, 65, 68, 70, 75, 79, 83, 85, 90, 113, 148, 223, 246, 265 Application Server 166, 223 , 224 Business Components Composer 65, 68, 70, 75, 80, 83, 85, 90, 225 Commerce Suite 166, 224 Extended Personalization 224 on the Go 224 Personalization and Site Analyzer 224 Studio 224 Transcoding Publisher 224 wellsfargo.com 14 Western Europe 36, 219
314
what-if analysis 213 wireless 11, 14, 36, 47, 167, 182, 183, 242 mobile strategy 266 phones 205 portals 266 technology 266 trading 183 work management 245 workflow 265 applications 162 development 182 process 227 worldwide customers 219
Xchange 62, 65, 226, 270 Dialogue for Marketing 226, 227 Optimizer 226, 227 Real Time 226, 227 XML 145, 146, 165, 225
Y
Yahoo 15, 71
Zeus 262, 270 Zurich Insurance 203
Index
315
316
(0.5 spine) 0.475<->0.875 250 <-> 459 pages
Back cover
Acrobat bookmark

End-to-end Sell & Support Solutions for the Financial Services Sector Describing Customer Loyalty, Online Financial Services, and Wealth Management Targeted for use by Client Services & IGS Principals, and S&D Client Teams
This IBM Redbook describes the Sell & Support Category Solutions within the Global Financial Services Sector. Specifically, it details the Banking, Insurance, and Financial Markets industries driving business issues, the IBM themes and Big Plays to respond to these business drivers, and the Solution Components and transition opportunities in support of our Big Plays. This guide is intended to serve as an internal tool, targeted to Client Services principals, IGS principals, and S&D Client teams that want to learn about and position our Sell & Support Value Proposition and Solutions for their clients. This redbook is for internal use only. It is not intended to be given to customers.
INTERNATIONAL TECHNICAL SUPPORT ORGANIZATION
Leveraging Customer Centricity in the Financial Services Sector IBM Redbooks are developed by the IBM International Technical Support Organization. Experts from IBM, Customers and Partners from around the world create timely technical information based on realistic scenarios. Specific recommendations are provided to help you implement IT solutions more effectively in your environment.
ZG24-6238-00
For more information: ibm.com/redbooks

Red Book - Customer Centricity in Financial Services

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Front cover

Leveraging Customer Centricity in the Financial Services Sector

Copyright IBM Corp. 2001

Leveraging Customer Centricity in the Financial Services Sector

Leveraging Customer Centricity in the Financial Services Sector

Leveraging Customer Centricity in the Financial Services Sector

The team that wrote this redbook

Copyright IBM Corp. 2001

Leveraging Customer Centricity in the Financial Services Sector

Leveraging Customer Centricity in the Financial Services Sector

Leveraging Customer Centricity in the Financial Services Sector

Send your comments in an Internet note to:

Mail your comments to the address on page ii.

Leveraging Customer Centricity in the Financial Services Sector

Key competitive issues in the Financial Services Sector

Copyright IBM Corp. 2001

Leveraging Customer Centricity in the Financial Services Sector

By delivering a comprehensive approach rather than simply individual

By bringing together cross-sector solutions, like Customer Loyalty, Wealth

By providing the right infrastructure for the heavy-lifting of e-business,

Themes and e-business solutions

Chapter 1. Executive summary

Strategic Intent Market Themes/ Business Capabilities

Leveraging Customer-Centricity in Financial Services

Organize around customer-centric processes

e-Business Solutions/ Big Plays Transition Opportunities

Mobile Internet Branch Renewal

Leveraging Customer Centricity in the Financial Services Sector

IBM Sell & Support Competencies

Engaging clients with our e-business solutions

Chapter 1. Executive summary

Extending the IBM value proposition

Independent software vendor (aka Solution Developer)

Leveraging Customer Centricity in the Financial Services Sector

Customer Loyalty: An enterprises activities to derive value through customer

Online Financial Services: The application of online technologies,

Wealth Management: The aggregation of financial services that are targeted

Copyright IBM Corp. 2001

2.1 Current Financial Services Sector landscape

Technology Changes Business/Regulatory Drivers

Leveraging Customer Centricity in the Financial Services Sector

2.1.1 Current global Financial Services Sector dynamics

Disintermediation of the value chain has emerged as a significant

Chapter 2. Industry landscape

Spiraling customer expectations are influenced by customers experiences of

Demographic trends, especially the aging of the baby boomers and

New wealth segments are emerging due to recent economic prosperity.

Leveraging Customer Centricity in the Financial Services Sector

Rapid growth in the number of people online is driving financial services

Device ubiquity is evidenced by the increasing use of wireless devices. In

2.1.2 Geographic idiosyncrasies

Chapter 2. Industry landscape

2.2 e-business prevalent patterns

Leveraging Customer Centricity in the Financial Services Sector

Internet-enabled structural by-pass of the current business infrastructure

2.2.2 Financial services sector best practices

Leveraging Customer Centricity in the Financial Services Sector

2.3 Future e-business context

Cybercitizen, 1998 & 1999

Chapter 2. Industry landscape

2000 and beyond

Dynamic e-Business is the next phase of B2B relationships

1999 and prior