Customer Management Architecture Concepts For Business Executives

Booz & Company February 23, 2010
Executive discussion:
Conceptual Architecture for
Customer Management
This document is confidential and is intended solely for

the use and information of the client to whom it is addressed.
Session objectives
 Discuss a business-view of architecture
 Gain familiarity with some of the new concepts and terminology
 Adopt a simple framework to understand solution options
 Understand “technical stuff” enough that business can make more informed decisions on solution
choices
 This is not an exercise in design, tool evaluation, or vendor selection
Contact: Ramesh Nair, ramesh.nair@booz.com, (C) +1 609-577-5005, (W) +1 973-410-7673
Booz & Company

February 23, 2010
Customer Management Architecture Concepts for Business Executives.ppt For Internal Discussion
2
Customer Management typically has a broad, almost-enterprise-
wide scope
Origination
Marketing
Service
Sales
Future Proofing – Growth Agendas, incl. M&A

Segments and LOBs
IT Simplicity
360 Degree View
Insight-Driven
Relationship Strategy
What could the target solution environment look like?

How would it be different from what we did in the past?
Booz & Company

February 23, 2010
3
How do typical systems support business capabilities, under the
cover? A marketing and originations example
External
Prospect Info to Campaign Prospect Update
Prospect
Servicing
Rules Customer Update
Prospect Lookup
Lists
Customer CIX
Customer Update
Customer Update
Scoring
Campaign Analytics
Sent to Origination
Sales
Lists Lists DW
Analytics
Data for campaign analytics

Leads
Scoring BI
Analytical modelling
Rules Engine BI Data
Segment
Rules Rules
Modeling data
Campaign Scores
Campaign
Origination OFAC/Credit Models Analytics
Credit and OFAC look-up
Update to CIX
Booz & Company

February 23, 2010
4
What stands out?
Large Numbers and Types of Challenges

 Applications that contain own data  Enhance business capabilities (processes)
without having to rebuild new systems
 Data flows, information/insight flows each time
 Connections across applications and  Add more and newer data as needed
processes
 Reduce complexity
 Connections across data repositories
 Meet expressed, latent and future demands
It’s about enabling processes, flows, and integration
Booz & Company

February 23, 2010
5
Ideally, how could they be done better? Achieve flexibility across
users, applications and data via a “services” layer
Roles
RM Agent Customer Analysts Ops
Processes
and Services
Services Process Rules Roles
Data
Finance HR Risk Sales
Booz & Company

February 23, 2010
6
Getting to a flexible environment – we now have proven
approaches
 Systems were built-to-last, richly embedded with business requirements and data …
 … built-to-last systems cannot cope with business change – they were not “built-to-change”
 Services Oriented Architecture (SOA) is the modern approach to provide this capability
– Business processes use “services”, that are
– Defined by the business, which are
– Governed by business rules, and
– Delivered by IT
Business processes are freed from the specific IT implementation, and “order” whatever IT
capabilities are required on-demand
Booz & Company

February 23, 2010
7
What is a Services Oriented Architecture? Examples from a non-IT
view
1 2 Search Engine 3 B
Portal A
Multiple Sites
.xls .ppt A
Data Services/Format Services/Data/Format
This is one of the core concepts – independence of application from data
Booz & Company

February 23, 2010
8
So what is a modern Customer Management Architecture about?
Four major areas —Applications, Services, Data and Infrastructure
Applications and
Processes
Services
Identity Management (Security – Access Controls – Authorization – Authentication – Visibility)
Transaction State Management Persistence Synchronization Legacy Arbitration Reference Data Services
Data
structure
Infra-
Booz & Company

February 23, 2010
9
Origination use case: Integrated account opening and cross-selling
across channels
Steps Scenario
 A prospect visits KeyBank online channel and starts a Checking account opening process
1
 System provides info and features on different checking products
 Prospect selects a preferred product and enters the required customer information
 Origination system verifies if this is an existing customer else adds the prospect information to the
2 reference repository
 Prospect decides to go to a branch and complete the application – saves the application and exits. The
information is persisted by system for retrieval later
 Customer visits a branch to complete the application
3
 RM retrieves the application from the origination system with the customer and product information
prefilled
4
 RM checks for other offers that could be made based on additional customer information
 RM is prompted to offer customer a CD product – RM offers product and wins business
5
 RM adds the CD product to simplified single application form and submits the application
6  Accounts created
 Application status information is sent back to the branch interface and customers mobile
Booz & Company

February 23, 2010
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Origination capability use case map: Step 1 – Initiate online
channel, Checking account opening process
Analytic
LOB Channel Presentation BPM Applications Analytics Integration BI and Rptg Platform
Intg.
Consumer Branch 1.3 Marketing Insights Decision Legacy  On-line portal provides the
Portal
Support checking products information
New
Sales
from the product reference
1.1 Real-time
Contact Center
Integration repository
Lists Adv Analytics
1.2 Ad-Hoc
Commercial
– Reference data services provides
Origination
On-line
RT Analytics the bidirectional communication
Process
Analytic between the on-line portal and
UI Servicing Prompts Messaging and Adv. Analytics BI Reporting product reference repository
Orchestration
Data transfer
Mobile
Op Reporting
– BPM provides policy and
Dashboard/
Wealth
Monitors Real-Time workflow rules based process
Rules Engines Analytics Content Mgt. orchestration for the interaction
ATM Batch
External between portal and reference
Integration
Other Interfaces
Finance data services
(IM, Chat, eMail) External
KNB Kiosk Risk/Other Triggers Analytics
Planning
Access
Identity Management (Security – Access Controls – Authorization – Authentication – Visibility)

1.5
InfoSvc
1.4 1.6 Interaction

Customer/Prospect Deposits
Reference History
Marketing ODS Loans

Operational Data
Roles
Product Reference DW Payments
Sales
Modeling Collections
Servicing Interaction
Policies Rules Semantics/Metadata BI/Reporting
Credit
Origination Models
Scores/ Docs/Imgs
Workflow Decision Segments
Rules Rules Other/External Reference
Risk/Other Other
External
Infra
Infrastructure Management
Booz & Company

February 23, 2010
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Origination capability use case map: Step 2 - Partial application
saved for completion in another channel
Analytic
Intg.
Consumer 2.3 Marketing Insights Legacy  Customer information provided

Branch Decision
Portal
Support by the prospect through the on-
New
Sales
line channel is verified for
2.1 Real-time
Contact Center
Integration “existing customer” in the
Lists Adv Analytics
2.2 Ad-Hoc Customer Reference repository
Commercial Origination
On-line
2.5 RT Analytics  Prospect has the capability to
Analytic store partial information for
Process
UI Servicing Prompts Messaging and Adv. Analytics BI Reporting
Orchestration
Data transfer
access later from any channel
Mobile
Dashboard/ Op Reporting  Customer information in the
Wealth
Monitors Real-Time application is stored in the
Rules Engines Analytics Content Mgt.
ATM External
Batch Customer Reference repository
Integration
Other Interfaces
Finance
Planning
2.6
Access
Identity Management (Security – Access Controls - Authorization – Authentication – Visibility)

InfoSvc
2.4 Interaction
2.7 Customer/Prospect Deposits
Reference History
Marketing ODS Loans

Operational Data
2.8
Roles
Sales
Credit
Origination Models
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
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Origination capability use case map: Step 3 - Prefilled application
retrieved for completion in branch
Analytic
Intg.
3.1
3.2
Consumer Branch 3.3 Marketing Insights Decision Legacy  Branch portal connects to the
Portal
Support Origination system and retrieves
New
Sales
the partial filled checking
Real-time
Contact Center
3.5 Integration application
Lists Adv Analytics
Ad-Hoc
Commercial Origination  Customer information is prefilled
RT Analytics from the Customer Reference
On-line
Analytic repository
Process
Orchestration
Data transfer  Product information for the
Mobile
Wealth
Dashboard/ Op Reporting checking product is prefilled
Monitors Real-Time from the Product Reference with
ATM External
Batch any updates
Integration
Interfaces
Other Finance  Reference Data Services
Analytics
provides the connectivity
KNB Kiosk Risk/Other Triggers
Planning between the Reference
repositories and Origination
database
Access

InfoSvc
3.4 3.6 Interaction

3.9 3.7
Reference History
Marketing ODS Loans

Operational Data
Roles
Sales
Credit
3.8 Models
Origination
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
13
Origination capability use case map: Step 4 – A CD product offer
prompt is presented based on customer profile and analytics
Analytic
Intg.
Consumer Branch Marketing Insights Decision Legacy  RM’s request for potential
4.1 Portal
Support additional product offers is
New
Sales
passed from the origination
Real-time
Contact Center 4.2 Integration system to real-time analytics
4.4 Lists 4.5 Adv Analytics
Ad-Hoc
4.14
platform for generating offers
On-line
RT Analytics – Analytics Messaging and data
Process
Analytic transfer between Origination
UI Servicing
4.18 Prompts Messaging and Adv. Analytics BI Reporting system and the analytics
Orchestration
Data transfer
Mobile platform
Dashboard/ 4.17 Op Reporting
Wealth
Monitors
4.6
Real-Time
4.11 – Pre-developed analytical
Rules Engines Analytics Content Mgt. models executes on warehouse,
ATM Batch
External 4.16 modeling prospect and product
Integration
Other Interfaces
4.15 Finance data, to generate the offer
KNB Kiosk Risk/Other Triggers Analytics – The offer prompt is generated
Planning
by the rules engine and
delivered to the branch RM
Access
Identity Management (Security – Access Controls - Authorization – Authentication – Visibility) 4.10 portal
4.9
InfoSvc
4.8
4.12
4.3 4.7
Interaction
Reference History
Marketing 4.13 ODS Loans

Operational Data
Roles
Sales
Credit
Origination Models
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
14
Origination capability use case map: Step 5 – Single application
for checking and CD is submitted and accounts generated
Analytic
Intg.
Consumer Branch Marketing Insights Decision Legacy

5.2 Support
5.1 Portal New
Sales Real-time
Contact Center
Lists Integration Adv Analytics
5.4 Ad-Hoc
Commercial Origination  A single application is used for
RT Analytics
On-line both Checking and CD
Analytic
Process
Prompts
products. Business process
UI Servicing Messaging and Adv. Analytics BI Reporting
Orchestration orchestration and reference
Data transfer
Mobile
Dashboard/ Op Reporting data services along with
Wealth customer and product
Monitors Real-Time
Rules Engines Analytics
Batch Content Mgt. reference repositories provide
ATM External the underlying capabilities
Integration
Other Interfaces
Finance enabling the single application
Analytics for multiple products
Planning
Access
5.5 5.8
5.7
InfoSvc
5.6 5.9
5.3 Interaction
Reference History
Marketing ODS Loans

Operational Data
Roles
Sales
Credit
Origination Models
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
15
Origination capability use case map: Step 6 – Application decision
sent to customer mobile and branch interface
Analytic
Intg.
Consumer Branch 6.4 Marketing Insights Decision Legacy

Support
Portal New
6.6
6.8 Contact Center Sales Real-time
Lists Integration Adv Analytics
Ad-Hoc
RT Analytics
On-line
Analytic
Process
Orchestration
Data transfer
Mobile
Dashboard/ Op Reporting
Wealth
6.7 Monitors Real-Time
ATM Batch
External
Integration  Provide updates to the customer
Other Interfaces
Finance
(IM, Chat, eMail) External in the preferred channel of
KNB Kiosk Risk/Other Triggers Analytics communication
Planning
 Presentation applications like
6.5 6.1
portal, UI, text messaging
Access
Identity Management (Security – Access Controls

6.2 - Authorization – Authentication – Visibility)
provides multiple avenues to
interact and communicate with
InfoSvc
the customer
6.3 Interaction
Reference History
Marketing ODS Loans

Operational Data
Roles
Sales
Credit
Origination Models
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
16
Origination use case integrated view: Integrate account opening
processes across channels and improve customer data collection
Analytic
Intg.
3.1 3.2
4.1 2.33.3
1.3 Legacy
Consumer Branch Marketing Insights Decision
5.1 4.2 3.5 Support
6.8 6.6 Portal
2.1 New
6.4 4.4 Sales Real-time
1.1 Contact Center 5.2
1.2 Lists 4.5 Integration Adv Analytics Main observations?
2.2 Ad-Hoc
5.4 4.14
Commercial Origination  Couldn’t be done well in current
2.5 RT Analytics
On-line environment
Analytic
Process
UI Servicing
4.18 Prompts Messaging and Adv. Analytics BI Reporting
Orchestration  Seamless support for complex
Data transfer
Mobile 4.17
interactions
Wealth 4.6 4.11
6.7 Monitors Real-Time  Multiple processes use standard
Rules Engines Analytics
ATM Batch Content Mgt. functions or “services” -- no
External 4.16
Interfaces
Integration hard-wiring
Other Finance
4.15
(IM, Chat, eMail) External  Process enhancements can be
Planning independent of systems and data
2.6
engineering
6.5 6.1
Access
5.5 5.8
6.2 -1.5
Identity Management (Security – Access Controls Authorization – Authentication – Visibility) 4.10
5.7
4.9
InfoSvc
4.8
4.12
5.6 5.9
3.6
1.4 2.4
3.46.34.3 5.3 3.7
1.6 4.7
Interaction
3.9
2.7 Customer/Prospect Deposits
Reference History
Marketing 4.13 ODS Loans

Operational Data
2.8
Roles
Sales
Credit
3.8 Models
Origination
Scores/ Docs/Imgs
Risk/Other Other
External
Infra
Booz & Company

February 23, 2010
17
Implementation it is easier today to build in a phased manner,
with independence across implementation work streams
Analytic
Intg.
Consumer Branch Marketing Insights Legacy

Decision Support
2. Enrich interaction Sales
Portal
Real-time
New
Contact Center
within current Lists Ad-Hoc
Integration Adv Analytics
Commercial
On-line
capability set with Origination RT Analytics
Analytic
UI insights
Process
Orchestration
Servicing Prompts Messaging and Adv. Analytics BI Reporting
Data transfer
Mobile
Wealth
Monitors
Rules Engines
Real-Time
Analytics
4. Operationalize
Batch Content Mgt.
ATM
Other
External
Interfaces
insight with operating
Integration
1b. Model business
(IM, Chat, eMail) External Analytics platforms
Finance

processes and rules, Planning
and service definitions

InfoSvc Access
3. Incrementally Customer/Prospect Interaction

Deposits
History
5. Incrementally integrate insight to the Reference
1. CreateODS more
Operational Data
Marketing Loans
Roles
subscribe to services Sales channels Product Reference DW
insights, Modeling
at account,
Payments
Collections
via new or enhanced Policies Servicing Interaction
Rules Semantics/Metadata then customer,
BI/Reporting then Credit
apps Origination
relationship
Models
levels, in
Scores/ Docs/Imgs
Workflow Rules Decision Rules Other/External Reference Segments
Risk/Other
increments
External
Other
Infra
Booz & Company

February 23, 2010
18
Success Factors and Asks
Success Factors Change in Thinking

 Business processes  Process orientation
– Fully elaborated business processes
with rules  Cross-Process governance – rules,
policies, owners
 Data
– Data models (logical) are generated from
 Data quality and Data Governance –
the process models – utilize modern sustained, enterprise-wide
approaches and tools
 Technology  Information strategy in parallel to solution
– Specific technology decisions do not strategy for information and insight flows
impact end-use solution as much as
architecture choices, and services
specification
 Approach
– Far-Out vs. far-enough – adopt that which
aligns to organizational pace and stamina
Booz & Company

February 23, 2010
19
Key concepts -- summary
 Services construct?
– Think “separation”
 Architecture terms – at least some of them?

– Think “layers”
 A framework to better understand proposed solutions?

– Think “lots of arrows -- not hard wired…”
– …“more vertical arrows, few horizontals”
 Areas of importance?
– Think “process and services richness”
 Business better equipped to make decisions on target solutions?
Booz & Company

February 23, 2010
20
Contact
Ramesh Nair
Vice President, Financial Services, Florham Park, NJ, USA
ramesh.nair@booz.com
(C) +1 609-577-5005
(W) +1 973-410-7673
Ajay Nayar
Principal, Financial Services IT, Atlanta, GA, USA
Ajay.nayar@booz.com
(C) +1 (404) 271-3890
Balu Nair
Senior Associate, Financial Services IT, Chicago, IL, USA
Balu.nair@booz.com
(C) +1 (630) 518-6335
Booz & Company

February 23, 2010
21
End
Booz & Company

February 23, 2010
22

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Booz & Company February 23, 2010

This document is confidential and is intended solely for

 Discuss a business-view of architecture

 Gain familiarity with some of the new concepts and terminology

 Adopt a simple framework to understand solution options

 This is not an exercise in design, tool evaluation, or vendor selection

Contact: Ramesh Nair, ramesh.nair@booz.com, (C) +1 609-577-5005, (W) +1 973-410-7673

Booz & Company

Future Proofing – Growth Agendas, incl. M&A

What could the target solution environment look like?

Booz & Company

Data for campaign analytics

Booz & Company

Large Numbers and Types of Challenges

It’s about enabling processes, flows, and integration

Booz & Company

RM Agent Customer Analysts Ops

Services Process Rules Roles

Finance HR Risk Sales

Booz & Company

Booz & Company

Data Services/Format Services/Data/Format

This is one of the core concepts – independence of application from data

Booz & Company

Identity Management (Security – Access Controls – Authorization – Authentication – Visibility)

Booz & Company

Booz & Company

Identity Management (Security – Access Controls – Authorization – Authentication – Visibility)

1.4 1.6 Interaction

Marketing ODS Loans

Booz & Company

Consumer 2.3 Marketing Insights Legacy  Customer information provided

Identity Management (Security – Access Controls - Authorization – Authentication – Visibility)

Marketing ODS Loans

Booz & Company

Identity Management (Security – Access Controls - Authorization – Authentication – Visibility)

3.4 3.6 Interaction

Marketing ODS Loans

Booz & Company

Marketing 4.13 ODS Loans

Booz & Company

Consumer Branch Marketing Insights Decision Legacy

Marketing ODS Loans

Booz & Company

Consumer Branch 6.4 Marketing Insights Decision Legacy

Identity Management (Security – Access Controls

Marketing ODS Loans

Booz & Company

Marketing 4.13 ODS Loans

Booz & Company

Consumer Branch Marketing Insights Legacy

KNB Kiosk Risk/Other Triggers

and service definitions

Identity Management (Security – Access Controls - Authorization – Authentication – Visibility)

3. Incrementally Customer/Prospect Interaction

Booz & Company

Success Factors Change in Thinking

Booz & Company

 Architecture terms – at least some of them?

 A framework to better understand proposed solutions?

 Business better equipped to make decisions on target solutions?

Booz & Company

Booz & Company