Post on 29-Mar-2015
Driving Business Value with Service Orientation
IBM Corporation
Breaking New Ground
IBM SOA for Line of Business Customer References
Driving Business Value with Service Orientation
IBM Corporation
w3.ibm.com/software/xl/soa
SOA for LOB – Client References
TABLE OF CONTENTS
Financial Markets Front / Back office integration
Trade and order management
Transform back office delivery
Government eForms & records management
Public safety (aka "Rapid Response")
Healthcare & Life Sciences Claims transformation
Healthcare enterprise portal
WBI for Healthcare Collaborative Network
(SCORE) Solution for Compliance in a Regulated Environment
Aerospace & Defense PLM supplier collaboration
Automotive Dealer collaboration
Manufacturing productivity
Visibility across PDM systems
Banking Core banking transformation (inc. NEFS)
Multichannel transformation (formerly Bank Branch Renewal)
SWIFT net support (inc. WBI-FN)
Wholesale payments integration
Electronics Multichannel management
Product information management
Supply chain integration and RosettaNet
Driving Business Value with Service Orientation
IBM Corporation
w3.ibm.com/software/xl/soa
SOA for LOB – Client References
TABLE OF CONTENTS (cont.)
Insurance Channel management
Claims management
(Life) Policy administration
Retail Master data management
Next generation e-commerce
Open POS
Telecommunications BSS/OSS integration
Next generation services platform
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Aerospace & Defense
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
PLM supplier collaboration
6 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Able to efficiently handle spare parts, consolidating purchasing and supply chain processes
Reduced travel investment through new collaborative development environment
Efficiently handle spare parts, consolidating purchasing and supply chain processes
Bombardier Aerospace: Supply Chain IntegrationOptimizing the purchasing processes
Business challenge: Management of inventory processes
across numerous systems
Objectives: An efficient way to get visibility into parts
supply and demand to reduce inventory costs
Enable inventory process to span multiple suppliers across multiple manufacturing lines
Actions: Used IBM software and a service orientation
approach to standardize the disparate inventory data and automatically load it into SAP R/3 and Business Intelligence Warehouse (BW)
7 Driving Business Value with Service Orientation
IBM Corporation
Dassault Aviation: Supplier CollaborationDesigning a new aircraft
Business challenge:Faced with twin competitive pressures to build
a high-performance executive aircraft and to gain market share, Dassault Aviation needed to accelerate its development time for the new plane from ten years to five.
Objectives:A collaborative, online design process to
manage an average of 20,000 parts updates a week with business partners.
Actions: Working together with IBM and Dassault
Systemes, an IBM Business Partner, created a Product Lifecycle Management platform using a service orientation approach that allows Dassault to design the new aircraft in a virtual, parallel environment with its suppliers.
Outcomes
Business value:
Reduced time-to-market plan by approximately 30 percent
Reduced travel investment through new collaborative development environment
Increase in productivity with electronic updates to the database
Elimination of physical prototypes
Over 50% reduction in assembly time and 66% reduction in tooling costs
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Automotive
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Dealer collaboration
10 Driving Business Value with Service Orientation
IBM Corporation
Vehicle manufacturer: Dealer collaborationImprove access to information by dealers
Business challenge: To provide accurate inventory and timely
delivery information to dealers based on accurate manufacturing information
Objectives:
Provide reconciliation of parts data with dealer shipments and order forecasts
Visibility to demand and market analysis
information by dealers Actions: Implemented service oriented approach for
application integration and data warehouse to improve the sales tracking, order and inventory management processes.
Outcomes
Business value:
Dealers have insight into vehicle fit and local demand when ordering parts and accessories
Visibility to margins and category performance
Reduced staff days because of reuse of services across production applications and enterprise data warehouse
11 Driving Business Value with Service Orientation
IBM Corporation
RouteOne: Auto credit application Fast secure business transactions
Business challenge: Lower the auto credit application process
time for dealers and their customers while increasing the financing options
Objectives: Link 22,000 auto dealerships to financing
sources
Faster and more secure loan process with field-level encryption and digital signatures
Actions: Implemented a new trading network using a
service orientation approach that is always available and highly secure and able to support a volume of loan applications projected to reach 40 million per year
Outcomes:
Business value:
(DataPower) outperformed nearest competitor by a factor of 15
IBM service orientation helped RouteOne redefine and improve the credit application process for its automobile dealers and their customers
“DataPower XS40 delivers the performance required for comprehensive XML security functions, meaning that we will not have to sacrifice performance for protection.”
– Joel Gruber, CIO, RouteOne
12 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
77% increase in dealer satisfaction for whole-goods ordering processes
Thousands of dollars saved for call center
Solution launched on time and under budget
CNH (New Holland and Kobelco): Dealer collaborationImprove ordering processes for dealers
Business challenge :
Provide better service to dealers by enabling them to place and manage orders faster and more efficiently than a fax/phone process
Objectives:
Improve ordering processesReuse existing IT assets that can be treated
as flexible servicesReduce the inefficiencies of fax and
telephone ordering system
Actions: Using a service oriented approach, provided
direct access to CNH’s host applications, creating a more efficient ordering process. Worked with IBM and Beaver Creek Solutions, an IBM Business Partner, with IBM software and software services.
Extended implementation with a composite application approach for dealer, supplier and employee portal
13 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Increased chances of keeping existing good customers
Improved productivity for analyzing customer information, enabling prioritization on top customers
Increased sales leads from existing customer base
Vehicle manufacturer: Dealer collaborationProactively retain existing customers
Business challenge: Efficiently and proactively contact customers
to propose new financing agreements
Objectives:
Simply and quickly analyze whether to propose value added services and better rates
Consolidate multiple business applications into a single view to provide better service for customers with expiring accounts
Actions:
Implemented service oriented approach with IBM to more effectively retain existing customers based on contract maturity
14 Driving Business Value with Service Orientation
IBM Corporation
DaimlerChrysler: Drive to flexibility and responsivenessProactive infrastructure
Business challenge: Enable a more nimble and responsive business
where the environment for deploying and running application supports sharing projects
Objectives: An ability to create and reuse services, such as:
get shipment dates within dealer collaboration to check inventory within manufacturing to get BOM level within PLM
An integrated infrastructure with built-in means to respond dynamically, requiring flexible systems and integrated processes
Standardize to made the company’s processes faster and more efficient
Actions: Engaged IBM to design and build a
standardized environment for delivering solutions within a service orientation approach
Outcomes
Business value:
Nearly 50% reduction in installation costs for applications deployed via the new application development platform
Nearly 30% reduction in ongoing operations costs (Gartner Group)
Reduction in overall application lifecycle costs and average application development cycle time
“The solution … has established the foundation for us to become a nimbler more responsive company.”
– Dr. Seshu Bhagavathula, Director for Technology Strategy, DaimlerChrysler
15 Driving Business Value with Service Orientation
IBM Corporation
Business challenge: Large Truck Manufacturer needed an
integration platform to support the company's dealer portal, extending legacy systems, enterprise applications and other business critical data to their website
Objectives: Integrate data from its existing legacy
infrastructure and provide a seamless flow of information to dealers
Optimize the order-to-delivery process
Actions: Implemented IBM WebSphere software with a
service oriented approach to present a seamless flow of information on its dealer portal with real time interaction between dealers and production steps
Outcomes
Business value:
Provided real-time visibility of orders
Provider and order change capability, and improved ability to manage high margin truck options
Reduced order to delivery span
Vehicle manufacturer: Dealer collaborationOptimizing the sales processes
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Manufacturing productivity
17 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
100% consistency between orders and factory manufacturing
Increased BOM consistency from 88 to 94%
Reduced component lead time from 26 to 17 days
Shortened shipping lead time from 7 weeks to 4 weeks
Reused existing applications
Vehicle manufacturer: Manufacturing productivity Improved product order and bill of material handling processes
Business challenge: Despite multiple systems as the result of
acquisitions, this manufacturer needed to create efficient sales and purchase order processes with various plants and dealers across legacy systems
Objectives: Develop faster, integrated way to check
availability, order status and shipping information Keep factory manufacturing consistency with order Use across various plants, integrating diverse
technologies and leveraging existing applications Keep customer data updated at its global sites
Actions: Worked with IBM on a service oriented approach
using IBM WebSphere to provide application integration with SAP software and other applications
18 Driving Business Value with Service Orientation
IBM Corporation
Volkswagen: Manufacturing productivityImproving procurement productivity
Business challenge:
To make its procurement employees more productive to outpace competition, VW needed to integrate its supply-chain and procurement information and processes to become more responsive to a rapidly changing supplier environment
Objectives:
Connect employees and suppliers to information and applications and enable an automated, data-enriched workflow environment
Speed decision making
Increase responsiveness to suppliers
Actions: Implemented a process driven portal using a
service oriented approach with reusable service components serving discrete business functions to provide purchasing economies through more unified supply chain view
Outcomes:
Business value:
20% increase in staff productivity
Significant decrease in supplier and inventory costs
Expect 100% payback within a year
Reuse portal platform for every kind of portal
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Visibility across PDM systems
20 Driving Business Value with Service Orientation
IBM Corporation
Customer case: Supplier collaboration Reduced development time and cost
Business challenge: Capture significant new share of the European
auto market in five years. Reduce the designers, engineers and suppliers reliance on manual information distribution, in order to speed the development process and reduce error.
Objectives: A collaboration platform that centralizes
document management for designers, engineers and suppliers.
With automated version control, development teams and suppliers can now access one interface to communicate design changes.
Actions: Built collaborative supplier collaboration
solution using a service orientation approach
Outcomes
Business value:
35% projected reduction in the design/engineering cycle
Estimated development cost savings of 25%
Automated, real time distribution of production documents to address changes and reduce errors
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Banking
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Core banking transformation
23 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:Enabled new service to internal and external
clients for exchanging securities trading data and payments over SWIFTNet
More efficient, effective adoption of new, integrated business applications.
Increased adaptability to new market requirements
Growing the top line while increasing efficiency Commerzbank AG
Business challenge:
Business areas organized in silos with dedicated applications. No common communication or integration vehicle for applications like payments
Objectives:Adopt a new component-based business model
where some components can be handled by external partners
Move to this new model progressively within a service oriented architecture to increase business flexibility
Create new services in a flexible and cost-effective way.
Actions:
The firm implemented a reliable message-based infrastructure to support faster speed to market of new, integrated business functions.
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Multichannel transformation
25 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Electronic service:
Mortgage application process reduced from days to minutes
Increased customer retention and mortgage pull-through
Reduction of mail, courier, paper costs
Service orientation:
Quickly adaptable to other business areas
Re-usability of client profile information for signature verification and opening of other loan accounts
On-line lender: Electronic delivery and approval service Disclosure documents and beyond Business challenge:
Need to streamline the disclosure delivery and approval process for mortgages to reduce delay and customer fallout
Objectives:
Establish an electronic business service for disclosure delivery, signature, verification.
Establish “process” signature to create a legally enforceable end to end transaction while maintaining ease of use for the borrower
Replicate the service to other portions of the mortgage process, such as closing, and other loan products.
Actions:
The lender employed electronic delivery, signature with a service oriented approach.
26 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Higher adaptability to change.
Less business logic to change or build for new products, services, and policies to be implemented in support of multiple delivery channels.
Reduction in maintenance cost.
Wachovia: Common business services Harnessing the value of shared services across channels Business challenge:
Need to support multiple delivery channels for retail banking, including account opening services, in a consistent fashion
Reduce cost of maintaining duplicate business logic
Objectives:
Provide a single set of business and foundational services to support existing and future delivery channels
Reduce cost by leveraging common services
Actions:
Wachovia employed a service oriented approach and IBM SOA foundation products to provide a common set of re-usable business services in support of it’s delivery channels
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Electronics
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Supply chain integration and RosettaNet
29 Driving Business Value with Service Orientation
IBM Corporation
Xerox: Integrated multichannel processSupplier and channel collaboration
Business challenge:
To centralize these programming efforts and bring costs under control by using more efficient methods of application development and integration
Objectives:
Add systems as required without developing point to point code
Integrate and reuse development efforts
Maximize uptime of all business systems that rely on core data
Actions:
Xerox employed a service oriented approach that integrated multiple applications to enable dramatically faster attachment of applications and processes without recoding
Outcomes
Business value:
100% payback in 24 months
Reduced annual deployment costs by $720,000
Decreased system implementation time by 25%
“With IBM’s help we can move forward with a service oriented architecture that helps us respond to today’s challenges and gives us a flexible architecture to respond to future challenges." -Ram Sunkara
30 Driving Business Value with Service Orientation
IBM Corporation
JK-Holding: Trading partner integrationSupplier and channel collaboration
Business challenge:
Providing a real time collaboration system for the dealer network, field service and distributors
Objectives:
Integrate data from multiple ERP systems
Eliminate manual tasks
Reduce reliance on manual tracking and order entry techniques
Actions:
JK-Holding employed a service oriented approach that integrated multiple ERP procurement applications along with portal technology to enable dramatically faster commitment of product data to customers, distributors and field service technicians
Outcomes
Business value:
Decreased phone and fax orders by 30%
Increased staff efficiency
Decreased order reaction time
Lowered overall IT costs by 7%
Increased Productivity with 350 partners
Improved customer satisfaction
31 Driving Business Value with Service Orientation
IBM Corporation
Skanska AB: Integrated partner portalSupplier and channel collaboration
Business challenge:
Componentize real time access to product, price and promotion detail to all supply chain partners
Objectives:
Integrate data from multiple partner systems
Eliminate manual tasks
Reduce time to manage and react to orders and inquiries
Actions:
Skanska employed a service oriented approach that integrated multiple partner applications to enable dramatically faster commitment of product data to customers and suppliers
Outcomes
Business value:
Slashed data handling time by days
Increased reaction time to customer orders
Decreased volume of manual procedures
Provide business partners real time information
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA For LOB References
Financial Markets
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Trade and order management
34 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Business flexibility and interoperability leveraging the Schwab Enterprise Bus
Ability to scale dynamically driven by business needs
Improved resilience
Growing the top line while increasing efficiency Charles Schwab
Business challenge:
Requirement to be more responsive to changes in business conditions
Need to pursue new areas of revenue beyond brokerage
Objectives:
Increase efficiency in connecting and exchanging messages on trades, settlement, instruments
Update financial messaging Infrastructure to meet industry standards
Provide a logical transition between legacy and new business systems
Actions:
Created a service oriented approach to ease migration to new, changing business functions
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Government
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
eForms & records management
37 Driving Business Value with Service Orientation
IBM Corporation
Modernizing for speed and improved accessibility County of Santa Clara, Criminal Justice Information Services
Business challenge: Users of the CJIS system were replacing older
systems with pre-built, off-the-shelf software packages due to the slow, screen-by-screen fashion of the current system. If steps were not taken to make it easier and more efficient for users to access the data they needed (arrests, bookings, custody time and probation), the group risked losing its relevance, as users looked elsewhere for the data.
Objectives:
Provide a modern, flexible, easy to use facelift for the CJIS transaction service, evolving them as web services
Actions: Santa Clara implemented a service-oriented
approach enabling its critical data easily accessible for all of its users.
Outcomes
Business value:
Users and 40 agencies can track and access data on defendants and cases from throughout the criminal justice process
CJIC has been able to modernize the application-programming interface (API) in its system
Other agencies can now use, access and receive data from the CJIC system
The county was able to significantly reduce costs because the solution allowed it to leverage existing skills and technology investments
38 Driving Business Value with Service Orientation
IBM Corporation
Integrating agencies & providers while empowering clientState of Utah Department of Human Services
Business challenge: Integrate service delivery into a model of
holistic case management Provide a single location for citizens to access
government and non-profit service program information
Replace outdated, siloed legacy system Objectives:
Flexible, cost-effective and citizen-focused eligibility solution for workforce services and health and human services
24x7 access to community resources More accurate, consistent, and faster eligibility
determination Faster, more accurate eligibility decisions
Actions: Utah’s Department of Human Services
employed a service oriented approach that significantly improved service delivery and case management and fostered inter-agency collaboration.
Outcomes
Business value:
Established an enterprise foundation for service delivery that provides flexibility to update and add programs
Supports holistic case management for all programs
Fostering inter-agency collaboration with significantly improved service delivery
Simplified policies; support holistic case management and integration of programs and services
More accurate, timely and consistent eligibility determination
39 Driving Business Value with Service Orientation
IBM Corporation
Breaking down the silos Miami-Dade County
Business challenge: Be more responsive to its constituents by
building an online experience tailored to their needs – one that breaks down silos providing a seamless e-Government
Objectives:
e-government solution to redefine the way services were offered to constituents
More convenient access to County services
Break down siloed barriers
Actions: Miami-Dade County employed a service
oriented approach that significantly improved service delivery and greater access to information regarding services.
OutcomesBusiness value:
Number of overall visitors to the portal increased by more than 50 percent in the last year to nearly 10 million
Expects to reduce the costs of managing the system by more than 25%
County processed 60,000 electronic payments totaling more than $4 million in revenue
Greater IT flexibility:
• Improved availability and diagnostic capabilities with server consolidation
• More streamlined publishing workflow, getting information out to citizens faster
“Our citizens are truly thrilled with the level of service we’ve been able to provide”
– Judi ZitoCIO, Miami-Dade County
40 Driving Business Value with Service Orientation
IBM Corporation
Business flexibility and external partner integration IRS e-Filing application
Business challenge:
Government agency mandated to make 80% of its transactions “electronic” by 2007
Objectives:
Robust, scalable service-oriented system linking external trading partners with new applications
Must deliver new services using existing assets
Actions:
The IRS employed a service-oriented approach to build and deliver an electronic document filing service to speed processing, reduce errors and support new approaches to deliver new services
Outcomes
Business value:
Enabled delivery of new services to citizens faster, while reducing operating costs and providing improved flexibility
Error rates associated with manual adjustments to transmitted data were reduced from 25% to 6%
Employee productivity increased through online availability of submission data
Client complied with government mandate and completed ahead of schedule
IBM Internal Use Only
41 Driving Business Value with Service Orientation
IBM Corporation
Transforming business processes with integrated solutions U.S. Army
Business challenge: The Army had a forms-based business process
that was largely a manual one requiring an online integrated forms management solution
Objectives: Be able to handle the speed and flexibility that is
required in the field
Increase productivity & decrease costs for the Army’s use of forms-based business processes
Confidential and critical data must be captured and transferred securely
Actions: The U.S. Army employed a service-oriented
approach through greater IT flexibility that allowed it to re-engineer its forms-based business processes with an integrated forms management solution
Outcomes Business value:
Saved 1/3 of time required to fill out forms when the system is fully automated
Improved security of information and provision of auditable records
Reduction of system redundancies and common user errors
Total savings of $1.3 billion annually in administrative processing costs
Regulatory compliance
42 Driving Business Value with Service Orientation
IBM Corporation
Reliability using Web servicesMinistry of Justice Austria
Business challenge: Ministry of Justice Austria had multiple existing
application solutions used in electronic exchange with partners and government agencies. These were once easy to use and efficient means to access information. Because of technical advances and new requirements, the solutions needed to be upgraded. However, the data formats were rigid and costly to maintain by the MoJ and by the users utilizing proprietary technology.
Objectives:
A complete renewal of their automation of judicial proceedings
Actions: The Ministry of Justice Austria employed a service-
oriented approach that assembled a solid foundation on which to base this and future eGovernment initiatives
Outcomes
Business Value:
Efficient and up-to-date online support for the public
Provide relevant online information for all lawyers and attorneys in the Austrian juridical system
Able to monitor increased operational efficiency, functionality and customer service
Reduced integration implementation more than 60%
43 Driving Business Value with Service Orientation
IBM Corporation
e-government integration framework KDVZ
Business challenge: Connect local agencies for greater public
convenience accessible 24x7
Objectives:
24x7, online business network enabling agencies to access each other’s data in real-time
Needed a high-level integration infrastructure that would enable them to share resources with one another on the fly
Actions:
KDVZ employed a service-oriented approach which provided a low cost, easily accessible, integrated infrastructure that provides an online business network enabling local agencies to share resources
Outcomes
Business value:
Potential savings of more than $1 million in business registration process
Low cost solution frees up resources for new e-government applications
99.999 percent availability for greater resilience
Significant cost savings over point-to-point integrations
Established in 1973, this organization is a full-service provider of IT services for approximately 50 counties and local governments in a European country, representing three million citizens.
44 Driving Business Value with Service Orientation
IBM Corporation
Sharing a single view of data for disease analysisDepartment for Environment, Food and Rural Affairs
Business challenge: DEFRA had siloed information and independent
business processes; the organization found decision making to be complex and time-consuming. Before it could use data, DEFRA had to thoroughly check and cleanse it, a process that required massive effort and inhibited progress.
Objectives: Share a single view of data with users throughout the
organization and test the new system with data where DEFRA employees would be able to closely monitor animal movements and calculate the likelihood and impact of infection
Provide ad-hoc business intelligence tools
Actions: DEFRA implemented a service-oriented approach to
share a single view of data to provide an environment for deploying applications, such as those used for disease analysis and livestock movement registration services.
Outcomes
Business value:
After deploying the POC project, DEFRA recognized the benefits of the change to a service oriented approach. For the first time, users and stakeholders could view all information regarding where animals were currently held, and its prior locations.
Should an animal be carrying a disease, the system can calculate the location of the most probable infection risk area
Provide visual map information of the geographical area affected and can calculate the severity of the event.
Business intelligence tools to support the business scenario
45 Driving Business Value with Service Orientation
IBM Corporation
Business integration Dubai Municipality
Business challenge: Dubai municipality was challenged with
internal bureaucracies and single channel customer service facing processes
Objectives: Be the best e-government program in Dubai
Remove Internal bureaucracies and improve its customer facing processes and be more responsive
Demonstrate savings internally and externally to customers
Increase publicity of the Municipality
Actions:
Dubai Municipality employed a service-oriented approach which provided a low-cost, responsive and convenient online service that reduced time in processing paperwork and provided multi-touch customer service
Outcomes
Business value:Provided multi-channel access
integrating people, processes and information
Reduced cost in terms of paperwork
Reduction in time (i.e. customer service, transaction processing)
Reduction in the number of visits to government offices
46 Driving Business Value with Service Orientation
IBM Corporation
Enabling effective integration and data exchangeSerbian Ministry of Finance
Business challenge: Critical business functions were at risk in the
customs administration of the Serbian Ministry of Finance due to inadequate IT infrastructure performance
Objectives: Simplify business procedures while maintaining
stability and reliability of the production system
Integrate with other agencies systems within the ministry of finance (tax administration and treasury administration)
Actions: The Customs Administration in Serbia upgraded
its Information Systems of Customs Serbia infrastructure using advanced open technologies to build a service-oriented approach that supports software development and data
exchange
Outcomes
Business value:
Customs Administration is now able to easily exchange data with the Tax Administration and the Treasury Administration to improve its services
Since implementing the solution, the Customs Administration has improved the response times of its border-crossing applications by up to 50 percent
The new IT infrastructure is more flexible and enables effective integration and data exchange with the IT systems of other organizations
47 Driving Business Value with Service Orientation
IBM Corporation
Flexibility, openness to the futureTransit New Zealand
Business challenge: TNZ wanted to provide better access to
information to the public, contractors and government agencies but the lack of integrated information stood in the way.
Objectives: Simplify increasing complexity of managing
siloed information while providing more accurate, reliable information to multiple constituents
Streamline and optimize business processes
Actions: TNZ employed a service-oriented approach to
connect the public, contractors and government agencies by creating an enterprise content management system with a single portal interface and enterprise-wide search engine
Outcomes
Business value:
Greater ability to control costs and manage the growth in information management responsibilities
Reduced administrative workload
Improved quality of information, leading to higher user confidence in timeliness and accuracy of information
Better management of information delivery processes
“Our service oriented architecture is based on a single development paradigm that leverages reusable parts of the existing solution. We can add new functionality very easily and present data in a number of ways, adding value to the services we provide to our constituents.” - Geoff Yeats, Chief Information Officer
48 Driving Business Value with Service Orientation
IBM Corporation
Improving services while also winning new business Department of Human Services: Centrelink
Business challenge: All Australian government departments and
agencies are under increased pressure to improve efficiencies, deliver better services to constituents and provide alternate channels of service delivery.
Objectives: Provide more choices in how customers can
access services Automate routine work Enhance existing systems and develop new
capabilities to support the delivery of services via the phone, Internet and emerging technologies
Actions: Centrelink employed an underlying service-
oriented approach that integrated existing internal systems and can easily accommodate new business applications and simplify future process changes
Outcomes
Business value: Integration: Integrate existing internal systems
with external business associates through a single software stack
Access: Provide more choices for Centrelink's customers, improving access to information
Automation: Automate routine administration work so that staff can concentrate on providing customers with more complex tasks a higher level of service.
Security: Ensure the highest levels of security access and authentication controls to safeguard customer records
49 Driving Business Value with Service Orientation
IBM Corporation
Reducing complexity while improving return on investment Shandong Province Local Taxation Bureau
Business challenge: The bureau collects taxes 90.79 million residents, as
well as industrial and agricultural enterprises. With multiple offices and over 200 databases in the province, the agency required a unified and integrated view of provincial tax data and city and county tax data.
Objectives: Process information centrally for general and
provincial bureaus
Handle all kinds of taxes, work links and national and local tax bureaus, and connect with related departments
Actions: The Bureau employed a three-phased service-
oriented approach that integrated its 200 databases and made it available from a single interface to provide real-time access to its data by users, enterprises and other bureaus.
Outcomes Business value:
Information can be extracted on an as-needed basis depending on the urgency of the business requirement
The agency has been able to develop new real-time applications, including standardized tax receipt management, rewards and incentive management
Administrators now have unified, up-to-date and accurate views of key metrics
ROI is excellent by leveraging existing systems investments
Data is now accessible and more accurate in real time
Users have direct, simultaneous access to dynamic business databases through a single window
50 Driving Business Value with Service Orientation
IBM Corporation
Simplifying access to Taiwan’s government servicesResearch, Development and Education Commission (RDEC)
Business challenge: RDEC’s highest priority lies in an ongoing
effort to modernize Taiwan’s government, but its infrastructure was incapable of supporting the rapid conversion of an increasing number of services
Objectives: Make it easier for citizens to find and access
government information and services
Transition government services to the web
Improve efficiency and let staff focus on mission-critical tasks
Actions: RDEC employed a service-oriented approach
built on scalable infrastructure that simplifies and standardizes their web-enabled government services
Outcomes
Business value:Cost-effective solution leads to greater
increase in citizen satisfaction
Government agencies and departments can quickly exchange data
Citizens can easily access the RDEC database to find forms and information
Improved employee productivity processing 30% more documents while reducing form-processing turnaround by 50%
Maintenance costs cut by 30%
51 Driving Business Value with Service Orientation
IBM Corporation
Reducing customer service response timeHousing Development Board (HDB) Singapore
Business challenge:
With nearly 90 percent of its applications hosted on aging mainframe servers, HDB lacked the scalability and flexibility to accommodate growth and changing requirements
Objectives: Solution must provide flexibility to meet
changing business environment
Improve customer service response time
Automate manual and paper-based processes
Actions: HDB employed a service-oriented approach
featuring a web-based portal centralizing lessee and tenant paperwork that streamlines processes and workflows
Outcomes
Business value: Reduced customer service response time
from more than a week to a few seconds
The business to customer (B2C) and business to employee (B2E) portal supports access for 3,500 HDB registered users, of whom approximately 600 are concurrent users
Users access 120,000 page views per month
Solution eliminates paper-based processes, captures 20,000 lessee and tenant documents per day and manages unstructured records, scanned images and reports
52 Driving Business Value with Service Orientation
IBM Corporation
Leveraging information for enhanced accuracyInstituto Nazionale Previdenza Sociale (INPS)
Business challenge: INPS is Italy’s primary social security insurer
verifying social security contributions and calculating pension and payment amounts. Different divisions in INPS needed to leverage this data in different formats for different functions; but due to siloed and customized applications used by each division, the data was not easily obtained and expensive to maintain.
Objectives: Implement a reliable and standardized method to
access and maintain information (data).
Actions: INPS employed a service-oriented approach
allowing different departments to leverage the same back-end data eliminating the need to maintain disparate systems leading to enhanced data accuracy with reduced human intervention.
Outcomes
Business value:Streamlined the collection and distribution
of pension funds
Modernized and standardized how each internal division and external office access data
INPS is working toward publishing its Web services into an internal registry so that departments and other companies that interface with INPS can leverage the already-developed technology
The solution leveraged their existing hardware environment
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Public safety (aka Rapid Response)
54 Driving Business Value with Service Orientation
IBM Corporation
First response integrated networkWashington, DC Capital Wireless Integrated Network
Business challenge: No ability to coordinate emergency
response activity between Maryland, Virginia and the District of Columbia
Incompatible systems preventing responders from sharing information
Objectives: A robust and searchable directory for public safety
and transportation agencies
Access to operational data and resources, including multiple state and federal law enforcement criminal databases
Actions: CAPWIN employed a service-oriented approach
that provides incident management and coordination across agencies, regions, and public safety and transportation disciplines
Outcomes
Cross-jurisdiction collaboration and communication across 41 federal, regional and local government agencies.
Secure, powerful system for police, firefighters, and other responders to communicate rapidly during crises
Significantly greater ability to respond to emergency and disaster situations
55 Driving Business Value with Service Orientation
IBM Corporation
Emergency response coordinationCity of San Francisco
Business challenge: Improve ability to plan and coordinate for real
property analysis and emergency services
Replace paper-heavy process and automatically center information from 911 calls and emergency services
Objectives: Better public safety coordination for
emergency services
Actions: The City of San Francisco employed a service-
oriented approach to leverage legacy data--without replacing or revamping existing systems and to provide visual access to data for pattern spotting and better decisions using up-to-date citywide geographic information
Outcomes
Federated spatial analysis
Federated enterprise system providing spatial visualization to 61 municipal departments
Enables more rigorous analysis of emergency events through dynamic mapping
Enhanced coordination of public safety services for disaster planning and homeland security
56 Driving Business Value with Service Orientation
IBM Corporation
Critical incident volunteers organize to go wirelessSt. Louis Area Regional Response System
Business challenge: STARRS needed help developing a rapid
response solution to coordinate and plan large-scale critical incidences in the bi-state metropolitan region
Objectives:
Solution must be On Demand
Link with medical community, EMS, fire, police, public health and government agencies
Must be multi-disciplinary and multi-jurisdictional
Actions: STARRS employed a service-oriented approach
that developed a platform to coordinate and collaborate with the region’s EMS, fire, police, public health and government organizations in the event of a large-scale incident.
Outcomes
Business value: Volunteer organizations involved in a
large-scale incident can coordinate and plan jointly
Wireless enablement allows for mobile access to applications and directories On Demand
Solution involved teaming with region’s first responders and business partners to enhance capabilities
57 Driving Business Value with Service Orientation
IBM Corporation
Network centric operations (NCO) and beyond Finnish Defense Forces
Business challenge:
Getting a clear and in real-time operational and tactical information picture for better and quicker decision making.
Objectives:
Transform to a network centric enterprise
Interoperability between branches of their defense forces
Actions:
The Finnish Defense Forces employed a service-oriented approach to create a common operational picture, leverage legacy systems and integrate COTS products for interoperability between branches of their defense forces
Outcomes
Business value:
Proof of concept demonstrated required scalability of SOA
Fully mobile, on or off-line mode at the Battalion and Brigade levels
Delivered synchronization and security – core capability requirements for this advanced Command and Control system
Will include the civilian side of NCO using incident/crisis management capabilities
IBM and the Finnish Defence Forces will set up an international Center of Excellence in Helsinki to concentrate on Network Centric Operations* solutions built on Service Oriented Architecture using open standards and generic Commercial Off the Shelf Software components
58 Driving Business Value with Service Orientation
IBM Corporation
Modernizing for speed and improved accessibility Israel Securities Authority (ISA)
Business challenge: The ISA required an easy-to-use, full-featured
solution that would provide employees with the right tools to efficiently process electronically
signed stock exchange reports.
Objectives:
Solution that would allow ISA to process and store electronically signed reports
Accessibility by 200 internal users and public traders
Actions:
ISA employed a service-oriented approach to gain a full-featured, flexible and reliable system for processing electronically signed stock exchange reports
Outcomes
Business value: Implementation of an electronic
submission system
Create a reliable, high-performance groupware and messaging environment providing user awareness for colleague collaboration
Stock report processing took several weeks, now it is down to days
Compliance with a 2001 Israeli law permitting the use of electronically signed stock exchange reports
59 Driving Business Value with Service Orientation
IBM Corporation
Uniting the people of business, industry and educationCámara de Comercio de Bogotá (CCB)
Business challenge: CCB’s existing business and development processes
lacked flexibility delaying the institutions ability to develop and deliver new products
Objectives:
Streamline end-to-end business development processes to respond to changing needs of the business
Actions:
The institution decided to implement a service-oriented approach to integrate its business through repeatable business tasks and services in order to offer an advanced portfolio of services to its customers, respond more quickly to market demands and make more effective use of the Internet in offering its applications to its members as well as the general public
Outcomes
Business value: Dramatically improve business processes
Enhance and expand new business and development processes
New tools will reduce time and costs to bring services to market
Products and services are now available via the Internet
Manageability of web content is easy and positioned well for future expansion
60 Driving Business Value with Service Orientation
IBM Corporation
Job information self-helpAustralia Department of Employment and Workplace Relations
Business challenge:
Beginning in 1995 the Department had deployed kiosks nationwide that provided self service job information – linking job seekers with employment opportunities in real time.
Objectives: Since kiosks were hardwired into the network
– relocation to address changing demands was a difficult task
In 2003, a “wireless” kiosks system deployed to provide greater flexibility in managing the job information program
Actions:Australia’s Department of Employment and
Workplace Relations employed a service- oriented approach that provided wireless kiosks linking job seekers to employment opportunities in real time.
Outcomes
Business value: Wireless kiosks provides better response
to the changing needs of their constituents by relocating kiosks to areas in greatest need
Allows the Department employees to focus on their core mission
Reduced the administrative issues associated with the hardwired system.
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Healthcare & Life Sciences
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Claims transformation
63 Driving Business Value with Service Orientation
IBM Corporation
HCSC: Modernize claims processing Achieving record high auto-adjudication rates
Business challenge:
Optimize auto-adjudication to achieve improvements that increase revenues, reduce costs and increase membership.
Objectives:
Re-evaluate its auto-adjudication processes to find ways to make them more efficient.
Predict the outcome of redesigned processes.
Implement a flexible solution oriented architecture (SOA) that would enable it to simulate process changes and assess their effectiveness.
Actions:
IBM’s service oriented solution helped HCSC pinpoint inefficiencies so it could refine processes to optimize throughput and thus decrease costs and increase revenues.
Outcomes
Business value:
Increases auto-adjudication of claims by 25 percent.
Accelerated time to market for new products
Increased large groups enrolled per full-time equivalent employee by 22 percent
Reduced application maintenance costs
Reduced administrative costs
Improved member satisfaction
64 Driving Business Value with Service Orientation
IBM Corporation
Sistema de Protección Médica: Modernize core system Innovation for claims processing
Business challenge:
Legacy systems impeded the integration of new business applications, making it difficult for SPM to sustain customer satisfaction and competitiveness.
Objectives:
Increase customer satisfaction by accelerating the rollout of new and improved services.
Improve employee productivity and enable greater responsiveness by speeding internal processing.
Extended existing investments by integrating old and new assets.
Actions:
Build an integrated, open-standards-based service-oriented architecture (SOA) solution that enables SPM to reengineer its applications.
Outcomes
Business value:
Increased productivity of administrative staff.
Significantly improved attractiveness to customers.
Increased ability to attract and retain members and employers.
Ability to release and support new products in much less time.
Added value is helping achieve record cost improvement benchmarks.
65 Driving Business Value with Service Orientation
IBM Corporation
Independence Blue Cross: Modernizing member services Convenient access to information
Business challenge:
Respond to customer demands for real-time access to claims and benefits information.
Objectives:
Provide self service capability to members to review their benefits, account information and competed claims in one secure, convenient location.
Provide ability to re-use common infrastructure components.
Actions:
IBM’s service oriented solutions provide members secure and convenient self service access to benefits, account and claims information.
Outcomes
Business value:
Accelerated time to market for new products.
Speeded and simplified access to information assets.
Reduced application maintenance costs.
Reduced administrative costs.
Improved member satisfaction.
“We realized we needed a single integration platform that would allow all our applications to access and share information.”
– Mildre Wampler, Chief Architect, IBC Enterprise Systems
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IBM Corporation
Aetna: Improved business flexibility Core systems modernization
Business challenge:
Become more competitive by respond to market changes and simplify doing business among constituents
Objectives:
Improve business responsiveness with end-to-end integration across and beyond the enterprise
Build, deploy and run applications in a proven, secure and flexible environment
Leverage legacy applications and information in new business processes
Actions:
Expose and deploy business services for reuse by customers with a service-oriented architecture.
Outcomes
Business value:
Flexible, responsive infrastructure to increase business effectiveness and improve customer satisfaction
Faster response to market changes and customers.
Major savings in payback of health management costs.
Ability to release and support new products in much less time
67 Driving Business Value with Service Orientation
IBM Corporation
The Regence Group: Innovation for claims Innovation for claims processing
Business challenge:
Become more competitive by responding to increased consumer demands and lowering administrative costs.
Objectives:
Flexible real-time claims system.
Shorter time to market for new products.
Reduced cost and time per claim.
Streamlined integration with providers and financial partners.
Integrate data from multiple disparate legacy systems.
Actions:
IBM’s service oriented claims modernization solution improves processes, claims cycle time, ease to do business with and competitive edge.
Outcomes
Business value:
Significantly improved attractiveness to customers.
Increased ability to attract and retain members and employers.
Ability to release and support new products in much less time.
Added value is helping achieve record cost improvement benchmarks.
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Healthcare enterprise portal
69 Driving Business Value with Service Orientation
IBM Corporation
Ball Memorial Hospital: Improving clinical care Driving clinical collaboration and agility
Business challenge:
Improve clinician access to critical decision making information while reducing access time.
Objectives:
Easy, secure, single sign-on access for clinicians any place, any time.
Consolidated information resources in a unified and personalized work environment.
Messaging and team workplaces allowing clinicians to quickly collaborate for better decision making.
Actions:
IBM’s healthcare enterprise portal solution was used to provide clinicians a service oriented customized view of critical patient information and collaboration capabilities.
Outcomes
Business value:
Enabled delivery of services to clinicians faster, while reducing operating costs and providing improved flexibility.
100% payback of investment costs in 5.8 months totaling $720,000 in annual savings.
Streamlined information access for clinicians improves medical decisions.
“We’re seeing that the IBM portal platform is flexible and practical, with tremendous potential for helping improve our staff’s productivity by providing them with responsive, personalized online work environments.”
–Christina Fogle, Manager of eSystem Support, Cardinal Health Systems, Inc.
70 Driving Business Value with Service Orientation
IBM Corporation
UNC Healthcare: Improved care delivery Transforming medical decision making
Business challenge: Improving quality of care, clinician satisfaction
and medical decision making capabilities across entire seven-hospital healthcare system.
Objectives: Enable rapid connection and integration of
disparate systems.
Deploy medical rules engine for selected user actions including triggers for potentially hazardous medication orders.
Provide electronic medical record for complete and accurate patient information, anyplace at anytime.
Actions: IBM’s service oriented solution integrated care
delivery systems and processes in order to improve clinician productivity and reduce medical errors.
Outcomes
Business value: Replaced the paper chart for almost one
million patients. Secure, single sign-on to access multiple
applications. Synchronizes all patient information from
both the hospitals and ambulatory care areas.
Dramatic improvement in patient safety and clinical efficiency.
Real time electronic transmission of prescriptions to participating pharmacies.
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IBM Corporation
AO Foundation Global clinical education and collaboration
Business challenge: Information overload was making it increasingly
difficult for surgeons to quickly identify and access relevant knowledge.
Objectives: Deliver relevant articles, videos, lectures, images
and instructions to surgeons at their workplaces
Enable researchers to collaborate with each other any place, any time.
Connect global staff with the latest AO-approved instruction materials to promote standardized, controlled certification.
Deliver cost savings through automation of manual processes
Actions: AO Foundation employed a service oriented
approach for clinical best practices
Outcomes
Business value:
Global Online Collaboration and access to best practices formation.
Effective, real-time method providing relevant materials and training to surgeons located anywhere, anytime.
Innovative way for field researchers to collaborate.
“We’ve made a significant step in the direction of improving medical treatment.”
– Michael Redies, head of knowledge services, AO Foundation
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
WBI for Healthcare Collaborative Network
73 Driving Business Value with Service Orientation
IBM Corporation
Canadian CRTI Bio-surveillance Real-time response readiness network
Business challenge:
The Canadian CBRN Research Technology Initiative (CRTI) needed a real-time bio-surveillance and response readiness network for the City of Winnipeg, Manitoba.
Objectives:
Provide a demonstration of real-time bio-surveillance and response readiness using an interconnected electronic infrastructure.
Quickly respond to biological events.
Actions:
IBM’s service oriented Healthcare Collaborative Network (HCN) solution was used to collect pertinent clinical data from hospitals, clinics, pharmacies, and labs, and route them to Canadian public health agencies for analysis and action.
Outcomes
Business value:
Facilitates rapid response to bio-terrorist events.
Provides real-time data collection and integration required to assess extent and progression of the biological event.
Provides a foundation for a potential country-wide bio-surveillance network.
Helps to improve hospital quality of care.
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
No alignment with priority projects
75 Driving Business Value with Service Orientation
IBM Corporation
Large pharma company: Driving innovation cycle time Improving clinician productivity
Business challenge: Needed a way to improve clinician access to
critical decision making information while reducing access time.
Objectives: Ability to transform and integrate messages
between its internal manufacturing and enterprise resource planning (ERP) systems.
A way of rationalizing duplicate and common functions across systems.
Ability to deliver reusable new services using existing assets.
Reduce maintenance costs across its information technology projects.
Actions: IBM’s service oriented solution provides
clinicians faster access to information and reduces operating costs.
Outcomes
Business value:Streamlined information access for
clinicians improves ability to improve quality of care.
Clinicians easily access critical information; productivity and decision making improves.
Use of common services across the corporation.
Integration of disparate applications.
76 Driving Business Value with Service Orientation
IBM Corporation
Aventis Developing new and innovative products
Business challenge: Complexity and cost of securing new drug
approval, involving simulations and coordinated execution of dozens of data collection studies by teams around the globe over many months.
Objectives: Improve time to market, drug approval cycle,
increase revenues and decrease costs. Allow users to upload research data files into a
central repository through a simple, browser-based graphic application.
Secure role-based real-time data validation and access to ensure that all data complies.
Ad hoc reporting of all test data for new products.
Actions: Employed a service oriented approach for
developing and bringing to market new drugs quickly.
Outcomes
Business value:
New drugs to market two months faster.
Additional US$3.6 million in incremental revenue per year.
Massively expanded the group's capacity to test and approve many more drugs.
Reduced drug approval time.
77 Driving Business Value with Service Orientation
IBM Corporation
Hoag Memorial Hospital – Sarbanes-Oxley compliance Solution for Compliance in a Regulated Environment
Business challenge: Hoag did not have any tools in place for
Sarbanes-Oxley Act (SOX) compliance, nor did it have the ability to audit its compliance with the act.
Objectives: Needed one easy-to-use solution to manage,
assess and improve business processes, controls and reporting.
Establish and maintain adequate internal control structures
Assess the effectiveness of those internal controls for financial reporting.
Actions: Deploy a turnkey compliance portal with flexible,
automated and powerful reporting capabilities to provide a service oriented foundation for the company's current and future business control needs.
Outcomes
Business value:
SOX compliance.
Centralized information can be accessed by Hoag's internal staff, auditors, external legal counsel and others as required.
Positioned to re-use SCORE services for:
- State and federal licensing
- JCAHO accreditation
- Treatment protocols
- Clinical trial management
78 Driving Business Value with Service Orientation
IBM Corporation
Schering: Collaborating with research partnersDriving innovation cycle time
Business challenge: Costly and time-consuming process to
pursue new and promising research programs.
Integrating acquired systems and research partners with Schering’s systems to facilitate data sharing and collaboration.
Objectives: Reusable integration components to provide
ability to adapt quickly to evolving research efforts.
Open standards infrastructure ready for business applications and partners to “plug in” —regardless of their platform.
Actions: Schering employed a service oriented
approach that integrated applications to enable dramatically faster implementation of new services
Outcomes
Business value:
Shorter drug development processes, faster time-to-market.
Agility to pursue research that promises competitive advantage.
Simplified integration yields IT cost savings used to reinvest in R&D.
Innovative way for researchers to collaborate instantaneously.
“Introducing IBM portal technology substantially eased global distribution of information and use of Web-based applications.”
– Dr. Walter Beck, Global Head of Medical Data Sciences
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Insurance
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Channel management
81 Driving Business Value with Service Orientation
IBM Corporation
Improved distribution channels Standard Life Insurance
Outcomes
Simpler business channels with increased customer satisfaction
Reuse of 51% of services, resulting in savings of over £3 million in development costs
Increased transaction rate by 900% without increasing operations staff; improved responsiveness to market change and customer needs
Improved quality and manageability of business applications
Business challenge:
To maintain its competitive edge, Standard Life wanted to simply the process of doing business with multiple channels
Objectives:
To make internal systems directly available to their distribution channels
Actions:
Expose and deploy business services for reuse by business partners with a service oriented architecture approach
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Claims management
83 Driving Business Value with Service Orientation
IBM Corporation
Business challenge:
To maintain its competitive edge, Delta Lloyd wanted to reduce the time and cost of processing claims pay outs
Objectives:
A faster process with better access to information vital to decision making
Actions:
Implement a new claims system based on IBM’s business integration software and FINEOS’ claims administration system
Outcomes
Business value:
One percent annual reduction in total damages paid out
2 to 2.5 million euros a year improved risk assumption and pricing
Less staff turnover, leading to increased productivity and reduced hiring and training costs
Reduction in maintenance costs
Delta Lloyd: Tackling claims handling process Lowering claims payout
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Retail
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Master data management
86 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Improvement in sales and customer satisfaction levels due to improved customer interactions
Increase proactive selling by allowing sales associates to look up information on family names, birthdays, anniversaries, and purchase history and tendencies customer in real time
Store associates can look up a customer's past purchase history in real time while that customer is actually in the store browsing merchandise
Helzberg Diamonds: Master customer data Proactive, personalized marketing programs
Business challenge:
Real-time access to centralized master customer data
Objectives:
Institutionalize and automate the high-touch marketing habits of top salespeople
Create a complete and accurate view of customer interactions
Optimize the effectiveness of its marketing programs by targeting as precisely as possible
Actions:
HBC employed a service oriented approach to develop a new process and system that utilizes near-real-time data to reduce fraudulent returns and clerical errors
87 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Reduced time to introduce new products by 80%
Improved overall product data quality and established a single enterprise wide repository for product information
Leveraged product information templates to reduce implementation time
West Marine: Product information managementGetting products introduced faster
Business challenge:
Increase reuse and bring product to market faster by leveraging information provided by vendors
Objectives:
Reduce costs by eliminating duplicate data entry
Reduce implementation time with pre-defined workflows
Improve product data quality
Actions:
West Marine employed a service oriented approach to allow merchandising managers to share information with vendors and reduce the time it takes to introduce new products
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Next generation e-commerce
89 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
A single gift registry solution across multiple channels and touch points
The same catalog and transaction platform as the single “system of record” across channels
Customers receive the most up-to-date information no matter which channel they were shopping
6,000 gift lists and thousands of new customers in the first 8 weeks
REI: Multichannel gift registryFlexible, cost-effective and customer focused
Business challenge:
Maximize revenue across store and Internet channels and provide customers with a more rewarding shopping experience
Objectives:
Accessible across multiple channels and touch points
Consistent catalog and transaction data
Timely information in each channel
Actions:
REI employed a service oriented approach that integrated catalog and transaction systems into a single “system of record” across channels
90 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Increased availability and scalability of the website to handle increased traffic
New sales channel driving increased revenue, higher customer satisfaction and increased customer conversion rates
IKEA: Next generation e-commerce Multichannel integration
Business challenge:
Web site was not capable of supporting a move from catalog-based to Web-based retailing
Objectives:
Increase availability and performance of website
Drive customers to its website rather than shipping catalog to reduce expense
Integrate seamlessly with other business for easier management and upgrades
Actions:
IKEA employed a service oriented approach to open up a new sales channel, and is already seeing increased revenue, customer satisfaction and web conversion rates
91 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Opened an additional sales channel and maintained competitive edge
Realized additional revenue through other channels
Capitalized on other marketing opportunities like online coupons & promotions
S. Oliver: New on-line sales channelsMaintaining competitive advantage
Business challenge:
Company risked losing business to other online textile shops if it did not revamp its Web site
Objectives:
Maintain competitive advantage
Increase revenue by opening up new sales channels
Add new customer centric functionality to their website
Actions:
S. Oliver employed a service oriented approach to allow customers to use online coupons, create wish lists and receive recommendations based upon past purchases
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Open POS
93 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:A single product information
solution for 3 million products
Accessible by 3,000 users and 10,000 suppliers as the single “system of record”
Integrates cross-sell, up-sell and services across channels to help drive multi-channel commerce
Home improvement: Master data managementCentralize product information
Business challenge:
Centralize product information into a single repository and collaborate across merchandising, store and suppliers
Objectives:
Create workflow for new product introductions
Speed time to market for price changes and new products
Create cross-sell, up-sell and service/SKU relationships
Actions:
Employed a service oriented approach to share information and integrate activities inside and outside the organization
94 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Employees can serve customers from a single workstation whether the customer is in the store or the service bay
Employees can scan receipts for greater speed and efficiency in the returns process
Flexibility to quickly enhance and make changes without disrupting critical systems
Pep Boys: Comprehensive store solution Service, inventory and point of sale
Business challenge:
Implement a comprehensive store system that combines auto service management, inventory management and traditional point of sale (POS)
Objectives:
Faster checkout and increased responsiveness to customer needs
Enhanced employee productivity and efficiency
Flexibility to incorporate new technology
Actions:
Pep Boys employed a service oriented approach that integrated different store systems to create a faster, more efficient customer-centric store operation
95 Driving Business Value with Service Orientation
IBM Corporation
Outcomes
Business value:
Virtually eliminated incorrect and fraudulent returns while actually improving customer service
$1.6M in documented savings from the new system within seven months of rollout
Clerks at any store can validate a return item with the original transaction in real time, even if the purchase was made at a different store just 10 minutes earlier
Hudson’s Bay Company: Point of sale solution Protection from fraud
Business challenge:
Protect its stores from professional thieves who return goods multiple times
Objectives:
Streamline its returns process by moving from nightly batch process to a near-real-time solution
Integrate store data with the central enterprise
Create a better balance between loss prevention and customer satisfaction
Actions:
HBC employed a service oriented approach to develop a new process and system that utilizes near-real-time data to reduce fraudulent returns and clerical errors
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Telecommunications
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
BSS/OSS integration
98 Driving Business Value with Service Orientation
IBM Corporation
Verizon Business: Provisioning and activation Integrated order provisioning
Business challenge:
Speed the provisioning of products to its customers and improve employee productivity
Objectives:
Speed implementation of new services
Deliver cost savings through automation of manual processes
Integrate data from multiple disparate legacy systems
Actions
Verizon Business employed a service oriented approach that integrated six different provisioning applications to enable dramatically faster implementation of new services
Outcomes
Business value:
Provisioning time reduced from 45 minutes to 3 minutes
Developer productivity increased 50%+
Labor costs were reduced by millions of dollars by integrating the provisioning of applications and automating the business process
Unexpected side benefit: identification of stranded assets
“We estimate our savings to be within the hundreds of thousands of dollars, just by reducing that amount of labor."
- Elizabeth Hackenson, CIO and EVP of Information Technology
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IBM Corporation
Radiomóvil DipsaStreamlining backend systems
Business challenge: With customer information located on at
least four different systems, the company found it difficult to deliver a suitable level of customer service. Training for service agents was also costly and time-consuming
Objectives: Improve customer service
Reduce costs
Increase employee productivity
Actions:
By streamlining its backend systems with a service oriented approach, Radiomovil Dipsa was able to improve customer service, reduce costs and increase productivity
Outcomes
Implemented a single interface for all of its backend systems to substantially improve customer service levels
Reduced response time to customers as a result of data being more reliable and consistent
Reduced operating costs due to simpler system maintenance and faster service agent training
Improved productivity by automating previously manual processes
IBM Internal Use Only
100 Driving Business Value with Service Orientation
IBM Corporation
SprintIntegrating customer information
Business challenge: Lacked a comprehensive view of its
customers and the services to which they subscribed
Lack of integrated information made it difficult for CSRs to handle customer issues
Difficult to cross-sell new products and services to increase revenue
Objectives: Improve customer service Reduce costs Increase sales
Actions: Used a service oriented approach to
leverage existing databases, applications, CRM systems and others to provide Sprint with a 360-degree view of its customer base to enhance revenue opportunities
Outcomes
Provides CSRs with real-time view of all of a customer’s products and services
System notifies CSRs of cross-selling opportunities and upgrade options for every customer
Sprint cites a US$8.4 million increase in revenue as a result of deploying solution
“Customers could care less how many functional silos you have created inside your organization. They see your company as a single brand, and they expect that you will be able to talk intelligently about any of the products or services they buy from you. If you are in a position to meet that expectation, then you have a major competitive edge over other providers who cannot."
–Randy Niemann, director of customer insights, Sprint
IBM Internal Use Only
101 Driving Business Value with Service Orientation
IBM Corporation
mobilkom austria Rapidly deploy and meet customerdemand for new services
Business challenge: Improve ability to rapidly deploy and meet
customer demand for new services Ability to connect customers with those
services as quickly and efficiently as possible
Objectives: Reduce time-to-market and internal
operating costs to support new services Provide linkages between sales, marketing,
IT, service creation, provisioning, testing and deployment and customer service
Actions: mobikom austria used a service orientated
approach that allows them to quickly implement and provision the new services demanded by their customers
Outcomes
Time-to-market for new services has been reduced by 30-50%
A powerful revenue generating service was deployed in 3 months instead of the previous average of 6-12 months
"IBM has helped us build an integration platform that lets us develop and deploy new services faster, so we can be more responsive to market demand and move to take advantage of new business opportunities … WebSphere was the most comprehensive technology platform available for what we were trying to achieve: a single solution for deploying and managing services, users and access."
– Head of the Service Platforms Department, mobilkom austria
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IBM Corporation
TelekomAustria: Order-to-cashStreamlining business process to increase efficiency
Business challenge:
Provisioning new long distance service for commercial customers was complex and time-consuming
Objectives:
Automate & expedite the process of customer service requests and billing inquiries
Simplify integration of increasingly complicated homegrown and off the shelf BSS/OSS systems
Actions:
By employing a service oriented approach, TelecomAustria is now coordinating customer and billing interfaces and streamlining business processes to increase efficiency
Outcomes
Synchronizes and processes 4,000-5,000 customer requests and 3,000 billing data inquiries daily
Provides its customers with faster and more comprehensive information from sales and customer support professionals
Reduction of development effort for modification and enhancements
Transparent view of business processes
Centralized control of processes
Less effort in operation by using a consistent solution
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IBM Corporation
Telefónica São PauloIntegrating business processes andprovisioning systems
Business challenge:
The company could not meet its aggressive new business goals as long as it continued to manually handle service provisioning and activation
Objectives:
To automate and integrate its business processes and provisioning and activation systems
Shorten customer delivery times
Actions:
The new service orientated approach deployed be Telefonica offers a level of flexibility that will the organization to scale systems and adopt services as customer requirements change
Outcomes
Business value:
Drastically shortened the time required to deliver new services to customers
Now positioned to maintain a competitive edge in this volatile industry and rapidly respond to customer needs, competition and market shifts
104 Driving Business Value with Service Orientation
IBM Corporation
BhartiStreamlining processes and preparing for growth
Business challenge: Recent growth has resulted in a sharp
division between the mobile and fixed-line organizations. As a result, Bharti has found it difficult to provide customer focused services that would set it apart from the competition
Objectives: To be able to adjust more flexibly –
without high costs and time investments To become an integrated
communications provider that could direct its business activity proactively
Actions: By taking a service oriented approach,
Bharti has been able to improve business process efficiency across the organization
Outcomes
Reduced costs by eliminating many of the duplicate systems and support structures
Now able to activate new mobile accounts for customers in 2 minutes instead of 20 minutes
Account information has been consolidated and extended to customers via a Web site, which increases customer satisfaction
Routine inquiries have been diverted away from the call center
CSRs now have the ability to respond to requests from both mobile and fixed-line customers and cross-sell services to them
IBM Internal Use Only
Driving Business Value with Service Orientation
IBM Corporation
Breaking new groundIBM SOA for LOB References
Next generation services platform
106 Driving Business Value with Service Orientation
IBM Corporation
Swisscomm mobile Service innovation and cost reduction Innovative proof-of-concept
Business challenge: Company needed to bring new,
converged services to market quicker and with reduced effort and costs
Objectives: Provide rich voice and data services to
customers quickly and at a reduced cost Rapid assembly of innovative
combinational services
Actions:
Used a service oriented approach for the rapid assembly of innovative combinational services.
Outcomes
Previously siloed network infrastructure transformed into componentized, reusable services that can easily interoperate using industry standards
Led to shorter product development times, reduced cost and a more integrated services portfolio
“This approach to service creation combined with the power of IMS gives us a much closer interlock between our Business Analysts and Technical Architects allowing us to translate marketing product wish lists to reality much more efficiently.”
– Xavier Weibel, Swisscom Mobile’s Project Leader
IBM Internal Use Only