Importance of enterprise and customer information management for ...
Importance of enterprise and customer information management for ...
Importance of enterprise and customer information management for ...
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<strong>Importance</strong> <strong>of</strong> <strong>enterprise</strong> <strong>and</strong> <strong>customer</strong><strong>in<strong>for</strong>mation</strong> <strong>management</strong> <strong>for</strong> drivinggrowth <strong>for</strong> an organisation.Dr. Charles LawokoPrincipal Director, Insight2Action GroupEmail: clawoko@ozemail.com.auPhone: 0405 130 559 (+61 405 130 559)www: www.insight2action.com.au (from Feb 2007)©Insight2Action Group 2006
Challenges <strong>of</strong> most senior executives<strong>and</strong> CEOs about (organic) growth…Underst<strong>and</strong>ing <strong>customer</strong> needs<strong>and</strong> preferences really well, <strong>and</strong>using that <strong>in<strong>for</strong>mation</strong> to providethe right products <strong>and</strong> services,in a timely <strong>and</strong> efficient manner.©Insight2Action Group 2006
Executive Challenges …examples1. David Marshall (Executive GM, CBA):• ‘CommSee’ will underpin our fulfilment <strong>of</strong> threemain <strong>customer</strong> needs – know me, deliver what Iwant, <strong>and</strong> do it reliably.2. Mike Pratt (Group Executive, BCB) on Westpac’s‘Customer Focus’ strategy:• Deeply underst<strong>and</strong> (<strong>customer</strong>) needs• Provide value-adding solutions• Build long-term relationships• Group-wide focus on cross-sell©Insight2Action Group 2006Sources: (i) CBA conference presentation (CustomerManagement, Sydney) , March 2006. (ii) WestpacMarket Update 31/7/2006.
How about a large Telco (Telstra)?Sol Trujillo (CEO, Telstra):Strategy <strong>for</strong> re-building Telstra is ‘market-based<strong>management</strong>’:• “..it’s associated with knowing your <strong>customer</strong>sbetter than anybody else <strong>and</strong> executing on what youknow better than anybody else’•“..having the discipline <strong>of</strong> really underst<strong>and</strong>ing<strong>customer</strong> needs”•“..what is….the driving value proposition <strong>for</strong>segment A versus segment B versus segment F”•“…it is that simple.”©Insight2Action Group 2006Source: Australian Financial Review, Nov 2005
How do you get to determine what the<strong>customer</strong> needs?This has been achieved traditionallyvia <strong>customer</strong> segmentation <strong>and</strong>having a robust analytics (datamining) <strong>and</strong> database marketingcapability + good relationship banking(when it exists)©Insight2Action Group 2006
Question is: Can we do this better,given modern interactivity, businesspractices <strong>and</strong> technology capabilities?……..‘YES, certainly’!It is about monitoring what the<strong>customer</strong> is doing <strong>and</strong>/oridentifying changes in the<strong>customer</strong>’s situation…. <strong>and</strong> takingaction to meet changing needsBUT….this is a major challenge!©Insight2Action Group 2006
Comments from previous speakersMalcolm Lister (CA)“…(Modern) <strong>customer</strong> dem<strong>and</strong>slead to increased business <strong>and</strong>technology complexities….”“…Complexity = more channels,lots <strong>of</strong> products, lots <strong>of</strong> microsegments…”©Insight2Action Group 2006
The challenges (<strong>and</strong> opportunities) around <strong>enterprise</strong><strong>and</strong> <strong>customer</strong> <strong>in<strong>for</strong>mation</strong> <strong>management</strong> (eg…. banks)Today – Several (<strong>and</strong> varied) contact channels/pointsPastAll <strong>customer</strong>FinancialPlannersRelationshipBankerCall CentreinteractionsviaBanker orCardsCustomerLeasingLendingServicesBranchCollectionsBankerSupportBranchesCash FlowSolutions©Insight2Action Group 2006Source: Adapted from NAB presentation on CRM, 2003/4
Components where successes <strong>and</strong> failures occur(<strong>and</strong> where technology plays critical role)Capturing In<strong>for</strong>mationIntegration & StorageDeep/ Timely/DynamicAnalyticsDisseminationProcessesActions &FeedbackCorporate Growth Options/StrategyAnd Staff Alignment/Engagement©Insight2Action Group 2006
Example <strong>of</strong> close monitoring <strong>of</strong> <strong>customer</strong>activities0.0%Contacted GroupControl Group-5.0%Footings Growth-10.0%-15.0%-20.0%-25.0%-30.0%Source: Adapted from a NAB conference presentation©Insight2Action Group 2006
Examples• Asian Bank increased insurance by over 10% frommonitoring <strong>customer</strong> events, resulting in tens <strong>of</strong>millions <strong>of</strong> increased revenue•‘Pay as you go’ vehicle insurance (UK): Monthlybills based on car usage, including time <strong>of</strong> day, type<strong>of</strong> road, <strong>and</strong> mileage©Insight2Action Group 2006
Summary <strong>and</strong> main message• Organic Growth REQUIRES Excellentunderst<strong>and</strong>ing <strong>of</strong> <strong>customer</strong> needs• Technology now plays a major role in process <strong>of</strong>banking, <strong>and</strong> underst<strong>and</strong>ing <strong>and</strong> meeting <strong>customer</strong>needs (<strong>and</strong> hence creating organic growth)• CIOs <strong>and</strong> Technology Divisions should startfocusing on, <strong>and</strong> claiming responsibilities <strong>and</strong>compensations <strong>for</strong> ‘growth’ agenda (rather thanfocusing mainly on ‘keeping lights on’).©Insight2Action Group 2006
Contrast with ‘main challenges facingCIOs’ (coming out <strong>of</strong> panel discussionon Day 1)• People (Talent)• Compliance• Prioritisation• Technology Refresh• AML• Innovation• Engaging with Business• In<strong>for</strong>mation <strong>management</strong> (DWH)©Insight2Action Group 2006
CONTACTS:•Charles Lawoko, Insight2Action Group•Email: clawoko@ozemail.com.au•Phone: 0405 130 559 (+61 405 130 559)•Email: clawoko@insight2action.com.au (from Feb 2007)©Insight2Action Group 2006