Customer 360 Data Hub for Insurance GFT Technologies and Informatica. White Paper

Transcription

1 Customer 360 Data Hub for Insurance GFT Technologies and Informatica White Paper

2 White Paper Table of Contents 1. Better Customer Experience for a Digital Transformation The Value of Great Data for a better Customer Experience The Customer Experience priority Why do I need an improved view of my customers? Total View of the Customer Master Data Management is the core capability Data Governance is built in The Customer 360 Data Hub GFT and Informatica provide a Total View of the Customer The advantages of using the C360DH...7 About GFT and Informatica...8 1

3 Three key drivers of transformation: changing consumer demand, changing technology and changing competition. 1. Better Customer Experience for a Digital Transformation You cannot change what you do without changing how you do it. Digital Transformation, the big challenge Digital Transformation is the buzz phrase of the moment. It is not a new concept but it requires a new approach to do it. The Insurance industry is facing a number of significant, macro-level factors that are helping shape the value propositions they have to offer and influencing how they go about transformation, including: Increased customer expectations means loyalty is under threat, leading to loss of premiums. The need for an omni-channel customer experience to drive customer retention and customer centricity. M&A and an increasing amount of global players causes margin erosion and loss of customers. Changing regulation forces the time, cost and effort of business process re-engineering. Disintermediation by data oriented players means Insurers become more of a commodity. On top of these macro-level factors, Insurers still have to cope with traditional, micro-level factors. Customer retention in a low touch point operating model is a perennial challenge, as is reducing the time and cost of handling claims, and the financial and reputational cost of fraud. Meanwhile the pressure is still on to develop cost effective and highly targeted new products and reduce the time and cost of the underwriting process. Keeping customers and attracting new ones is getting ever harder, so Insurers are being a great deal more sophisticated in how they acquire, use and analyse existing and new sources of data. Transformation is also getting more awareness at the Board level. All of these macro and micro-level factors lead to the convergence of three key drivers of transformation: changing consumer demand, changing technology and changing competition. Customer 360 Data Hub is a solution from GFT and Informatica to provide the great data needed for a better customer experience. Transformation becomes digital when the amount of information created and the ease with which that information is used becomes critical to the success of the business. Digitally transforming a business is not an easy task and not all companies are making a real transformative change: it requires a consistent non-siloed strategy that covers the entire Insurance value chain, including product creation, distribution, customer care, post sales and product retirement. 2

4 A Total View of the Customer ensures that each customer is recognized as they interact with different departments and functions. 1.1 The Value of Great Data for a better Customer Experience Providing great data to the customer experience drives value for both the business and for IT. Business benefits include: o Better segmentation and targeting for increased marketing campaign effectiveness. o Better identification of a customers complete portfolio to identify up-sell and crosssell opportunities. o Provide a better customer journey to increase retention. o Reduce the personnel costs associated within contact centers and branches around customer data access. o More accurate and complete data enables improved risk profiling processes. IT benefits include: o Improved data governance, increased agility and reduced operational costs. o Reduced personnel costs overheads associated with managing siloes of data for cross-business requirements. o Reduced data processing costs associated with remediating data for downstream processes. o Reduced time taken for new project delivery plus faster response to business process change. 1.2 The Customer Experience priority Customer experience is now one of the top-five business priorities for Insurers. It is also becoming a fact that quality master data (customer, product, etc.) is essential to optimize customer experience in areas such as traditional and social CRM. In order to provide a unified customer experience customer service agents, marketeers, digital commerce professionals and sales staff must have a 360-degree view of the customer and all their relationships. The 360-degree view of the customer (we call it Total View of the Customer) is important to ensure that each customer is specifically recognized as they interact with different departments and functions. As interactions progress through sales, customer service and functions providing support to the full customer journey, the customer feels confident that they are known by the organization. It is clear through these interactions that the Total View of the Customer is seen as the first step in most one customer digital transformation initiatives of enterprise-wide scope. The advent of the Digital business and the growing acceptance of big data, as well as the need and ability to integrate data that originates outside the organization, have increased the importance of improved information management. This whitepaper presents how GFT has combined several Informatica Data Integration technologies and built assets to accelerate delivery of a Customer Data Hub (C360DH) for Insurance. 3

5 1.3 Why do I need an improved view of my customers? To understand if your customer experience is adequate, look at how a broken customer-facing operation manifests itself as a broken customer relationship. Examples include: Your customers receive offers for products they already own. Your customers get upbeat marketing messages in the middle of a customer service issue. Customer service agents don t know the customer on the phone has had the same issue three times before. Loyal customers who purchase online are treated like brand-new ones in a branch. Long-term customers get asked the same questions every time they talk to Customer Service. Customers update their address information on your website, but sales and customer service applications still don t reflect it. Marketing analysts take weeks to provide a reliable list of top customers and what products they bought across lines of business, channels and regions. Sales staff don t trust their CRM to give them a complete view of every customer. bounce backs and returned mail because contact details aren t up to date. If many of the previous are true within your organization it suggests that something is missing on how you collect, clean and manage your customer data; your customer experience can be improved by adopting a consistent Total View of the Customer. 2. Total View of the Customer 2.1 Master Data Management is the core capability CRM applications, marketing automation tools, and call center systems all promise some variant of a Total View of the Customer, but generally they offer is a single view of the data in that application only. Without access to the data that lives in other systems, all they deliver is a siloed view of your relationship with Pet Insurance Home Insurance Name Address Phone Mobile T. Smith 23a Main Street London EC1A 4BV smithy@mail.com Vehicle Insurance Are these all the same Customer? Name Address Phone Mobile Anthony J.Smith 23 Main Street Nottingham NG1 5PT smith99@mail.com Vehicle Telematics Name Anthony Smith Address 23 Main Street London EC1A 4BV a.s@mymail.com Phone Mobile VIN 1234AGF5678 Events Figure 1. Customer experience can be improved by adopting a consistent Total View of the Customer 4

6 Customer service agents can use a combination of big data and master data to reach out to customers to address complaints posted on Twitter. the customer. What s missing is a total view of your relationship with your customers. We define this relationship as having a trusted customer profile that is up-to-date, accurate, complete, and consistent across the company. Master Data Management (MDM) is critical to enabling Insurance leaders to create the Total View of the Customer required for an optimized customer experience. But what are Master Data and Master Data Management? Master Data is a consistent and uniform set of attributes that describes the core business entities of an enterprise such as customers, households, prospects, suppliers, sites, hierarchies etc. Master Data Management (MDM) is the effort made by an organisation to create one single master reference source for all critical business data. Master Data is usually a subset of the full set of data about the customer and a key step in the journey towards enhanced customer experience supported by the Total View of the Customer. The discipline of MDM adds significant value by utilizing its specific capabilities, such as enforcing business rules around the quality of data, in facilitating real-time integration with operational systems and accessing sources of additional data, such as: Purchase history transactions Marketing campaign responses Black box car data Contracts content Customer loyalty analysis MDM plays an important role when it meets Big Data. As big data sources are adopted, there is a critical need for effective, trust-based information governance for master data. Here MDM helps in aggregating useful information from pools of big data and then matching it against master data. The MDM hub can keep a traditional golden record of trusted information side-by-side with a less-trusted view of the same person or product based on what you find among your big data; for example: customer service agents might be able to use a combination of big data and master data to reach out to customers to address complaints posted on Twitter. 2.2 Data Governance is built in Delivering a Total View of the Customer is made more difficult by the increasing number and complexity of information sources, controls and compliance rules; it means that data governance and Master Data Management (MDM) are both critical to enable the organization to achieve coherent digital transformation. GFT and Informatica put great importance on data governance and data quality as key enablers of the Total View of the Customer. GFT has adapted its own Rulebook methodology, using Informatica Data Governance to assure complete data lineage from source to target for any data. The C360DH has been designed and built with data governance and data quality built in it, with a business glossary that contains all the business terms used across the business and a metadata manager capability used to link and trace how data gets changed. Data lineage is provided from all sources and the quality of data is properly controlled. 5

7 3. The Customer 360 Data Hub 3.1 GFT and Informatica provide a Total View of the Customer The collaboration between the two companies has been active for several years during which GFT adopted Informatica s technologies in several enterprise projects. The two companies joined forces to build a solution to enable Insurance companies to create a unique and consistent customer view across all contact channels, to improve the customer experience. The solution, called Customer 360 Data Hub (C360DH), is configured as an accelerator so an Insurance company can start developing their Total View of the Customer quickly. This solution is a combination of different technology capabilities, a set of data and business rules typical of the management of customer data in the Insurance sector. The model applied is the extended Total View of the Customer, where customer master data is enriched with data stored in Hadoop or accessed through integration layers. The main features of the C360DH are: Data integration from multiple enterprise sources Creation of a unique view of customer master data Extension of master data using Hadoop or access through integration layers Data is managed using data governance capabilities and principles Data quality and management of relevant information Analysis of customer data Customer experience touchpoints Total View of the Customer Real time integration layer Customer Data hub CRM MDM Policy Claim Data Lake Figure 2. Extended Total View of the Customer model 6

8 3.2 The advantages of using the C360DH The key technologies are already pre-integrated as the C360DH is an integration of market leading products (Informatica, Cloudera, Qlik). It enables different ways of creating customer views in the customer master data hub and the extension date lake, in real time and provides multichannel access to customer data. It comes with prebuilt business logic, such as connectors to supply the main customer data, rules of access to data according to user profile, separation of master data details from the historical/transactional, complete management of data governance (glossary, metadata, lineage) integrated with Cloudera and initial quality rules and quality monitoring. Finally, it provides data visualization by role such as internal department, agency and customer (widget for customer profile). Authors Umberto Zanchi, Client Unit Director Insurance, GFT Andrew Joss, Financial Services Industry Consultant, Informatica EMEA 7

9 About GFT GFT Group is a business change and technology consultancy trusted by the worlds leading financial services institutions to solve their most critical challenges. Specifically defining answers to the current constant of regulatory change - whilst innovating to meet the demands of the digital revolution. GFT Group brings together advisory, creative and technology capabilities with innovation culture and specialist knowledge of the finance sector, to transform the client s businesses. Utilising the CODE_n innovation platform, GFT is able to provide international start-ups, technology pioneers and established companies access to a global network, which enables them to tap into the disruptive trends in financial services markets. Headquartered in Germany, the GFT Technologies SE achieved consolidated revenue of around EUR 365 million in 2014 and is represented in eleven countries with a global team spanning 3,300 employees. The GFT share is listed on the Frankfurt Stock Exchange in the TecDAX (ISIN: DE ). About Informatica Informatica is a leading independent software provider focused on delivering transformative innovation for the future of all things data. Organizations around the world rely on Informatica to realize their information potential and drive top business imperatives. More than 5,800 enterprises depend on Informatica to fully leverage their information assets residing on-premise, in the Cloud and on the internet, including social networks. For more information, call ( in the U.S.), or visit Connect with Informatica at informatica, and Customer 360 Data Hub for Insurance GFT Technologies and Informatica 2015 Informatica Corporation. All rights reserved. Informatica and Put potential to work are trademarks or registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks. 8