To embrace a customer-centric strategy, companies need to build an integrated architecture that spans customer touchpoints, automates key business processes and delivers a single version of the truth that can result in substantial increases in customer lifetime value.

1. • Cognizant 20-20 Insights
Building a Customer-Centric Business
Via Integrated Information Management
Tools and techniques for increasing customer loyalty and lifetime
value by meeting the needs of today’s more empowered and digitally
savvy consumers.
Executive Summary Customers increasingly expect companies to
have a much better understanding of them as
The way companies must interact with their
individuals, as well as more timely apprecia-
customers has changed, irrevocably. New com-
tion of their specific needs. To satisfy this new
munication channels have provided organizations
breed of demanding and empowered customers,
with unprecedented opportunities that, if tapped
companies must have the right processes and
carefully, could provide a much-needed edge
information available to deliver customized and
for dealing with increasingly empowered mobile
targeted product and service offerings that keep
customers in today’s highly competitive market-
them engaged and loyal. The emergence of loca-
place.
tion-based services offers a tool for combining
These emerging customer touchpoints have also customer behavior (historical and predictive) with
altered customer expectations and purchasing real-time marketing opportunity.
behaviors. For instance, the average response
It is not just the external environment that is
rate for traditional marketing-led advertis-
changing. As the “millennial” generation grows
ing is declining quickly1 as consumers increas-
in stature (i.e., consumption) and influence in the
ingly turn to the always accessible Internet and
workplace, their expectations for streamlined
trusted social networks for knowledge and advice.
processes, intuitive systems and real-time infor-
Moreover, data privacy issues are also increasing,
mation access must be accommodated. If orga-
leading to consumer concerns if not managed
nizations do not adequately meet these expec-
properly. In addition, with the emergence of new
tations, they will find it increasingly difficult to
social media channels that enable customers to
attract talent and, more important, deliver quality
pose questions and voice complaints, companies
customer experiences that drive behaviors
must be prepared to proactively respond to issues
conducive to business success.
before they escalate or, failing that, repair the
damage to their brand equity.
cognizant 20-20 insights | june 2012

2. As a result, companies must reinvent their cus- policies. The Health Information Technology for
tomer-centric business processes to ensure better Economic and Clinical Health (HITECH) Act in
targeting and revenue generation. Improved the U.S. healthcare industry4 and the Basel III
customer insight is, therefore, critical to ensuring compliance standards and Foreign Account Tax
that the needs of today’s younger, more social Compliance Act (FATCA) for the global banking
and mobile consumer are met. industry are just two examples.
This whitepaper lays out the tools and techniques Business agility today is seen as a necessary step
for transcending the rhetoric and helping to increasing the bottom line. This is evidenced
companies embrace true customer-centricity. by organizations investing in on-demand services
It provides actionable recommendations for and cloud-based solutions to increase IT agility,
building an integrated architecture that spans reduce time-to-market and enhance profitability.
customer touchpoints, automates key business
processes and delivers a single version of the These investments, applied across business lines,
truth that can result in substantial increases provide organizations with the power to compete
in customer lifetime value. Finally, we offer a in the market. However, many companies still
tangible example from the retail banking industry lack the much-needed edge to grab a bigger slice
that demonstrates how specific processes can be of the pie in today’s hyper-competitive global
transformed to become more customer-centric. marketplace. Increasingly, organizations are
realizing that to achieve top-line growth, they
The Changing Ecosystem need to increase the lifetime value (LTV) of their
There has been significant and ongoing change customers.
in the global market and consumer landscapes.
First Step Toward Customer Centricity
Incumbent players across industries are
struggling to protect their margins in the face of To successfully transition from a product-centric
ever-increasing competition. This has resulted architecture to a customer-centric business, orga-
in a tremendous need for business model and nizations must first identify their key objectives.
process change. For example, merger and acquisi- This will ensure expectation setting and the
tion activity is increasing as companies seek to necessary business buy-in, which are crucial for
consolidate with the competition, expand their any IT-focused transformational exercise.
global presence or expand their offerings.
For instance, depending on the circumstances for
For example, pharmacy benefits manager change, some organizations we have worked with
Express Script’s push to merge with prescription have highlighted the following objectives when
management and health information firm Medco embarking on a customer-centric journey:
highlights ongoing consolidation efforts within
the healthcare industry.2 The healthcare merger • Realize a “one-organization” structure follow-
ing M&A activity. Use of unified, enterprise-
and acquisition market in 2011 generated 980
wide customer information is a step toward
deals worth $227.4 billion, an increase of 9% over
realizing this goal.
2010.3
• Align marketing strategy and sales force effort
Many industries are additionally facing regulatory with client needs and expectations.
changes with stricter norms and compliance
Key Challenges and Consequences of the Changing Ecosystem
CEO Challenges: 2011-2012 CEO Challenges: 2012-2013
g
• Identify growth areas in volatile economy • Understand the customer is boss
U
• Cut operation costs and must be treated like that
• Reduce cost via greater efficiency Shift in Att
• Attract new customers and expand
• Source fresh capital Focus into global markets
nto
• Ensure regulatory compliance • Keep up with changing technology
• Embrace social media
• Ensure regulatory compliance
Figure 1
cognizant 20-20 insights 2

3. • Enhance customer experience through system, and it would be impractical to put CRM
channel integration, faster request resolution everywhere. However, a comprehensive customer
and need-based offerings. management solution should encompass more
than just the CRM system; it needs to incorpo-
• Identify and utilize cross-selling and up-selling rate other inter-related components, including
opportunities, improved customer intelligence,
business process management (BPM) and master
targeted marketing and better response rate
data management (MDM). BPM helps with process
per dollar of advertising revenue spent.
automation, while MDM ensures that a complete,
• Improve operational efficiency and transpar- 360-degree view of important data domains,
ency using end-to-end monitoring and process such as customer, product, etc., is available to all
automation. concerned parties.
• Optimizeservice through multiple channels
This combined solution approach helps organiza-
and by addressing customer preferences.
tions gain valuable insights into customer require-
• Create a strategic business and IT architec- ments across the entire organization and various
ture to manage risk and quickly adapt to ever- touchpoints, giving them an edge over their com-
changing regulatory compliance requirements. petitors. (These concepts are further defined and
explained in subsequent sections.)
While customer centricity remains the primary
focus, other important considerations also play a
Solution Components
role when considering a transformational project.
They include: To achieve customer centricity, organizations
need to consider implementing the following:
• Evaluating the return on investment on
technology dollars spent. • A unified and enriched user experience
through an enhanced customer interaction
• Leveraging existing solutions before making platform:
buy vs. build decisions.
• Rationalize and simplify the system >> Contemporary user interface technologies
and consolidated information to provide a
architecture.
superior customer experience via both self-
• Use agile frameworks, modern technology and service portals and interactions with cus-
cloud-based solutions and invest in open and tomer service representatives.
easily upgraded IT solutions.
>> A single platform across all service envi-
Business Transformation Through ronments to deliver 360-degree insights to
Focused IT Strategies sales, marketing and customer service.
For organizations to be customer-centric, they >> Closed-loop marketing, starting from cam-
need a clear long-term strategic view of the paign design, launch, feedback collection,
customer. Organizations should evaluate their sales planning and enablement, through
existing business processes and metrics and campaign result analysis.
develop organizational abilities
Organizations cannot to proactively understand how >> Real-time and effective decision-making
and marketing strategy formulation, based
manage a complex the customerwill enable them to
evolved. This
relationship has
on data analytics.
customer relationship offer customized products and >> Consistency among customer channels, in-
without smooth services that positively motivate cluding the various social media platforms.
integration among the customer and increase
customer LTV.
• End-to-end front-office to back-office
integration:
various business
functions such as Customer centricity is not just >> Unifiedsales and multi-channel-enabled
a front-office activity. Organiza- customer service platform.
finance, legal, supply tions cannot manage a complex
>> Seamless BPM across vertical functions.
chain, etc. customer relationship without
a smooth integration among >> Operational efficiencies by automating and
various business functions such as finance, legal, optimizing business processes.
supply chain, etc. Not all of these functions have >> Visibility of business process performance,
a customer relationship management (CRM) status monitoring and alerts.
cognizant 20-20 insights 3

4. • Realizing a “single-organization“ vision available channels so that the customer sees
through enterprise information management: a harmonious and reliable “face” of the orga-
nization.
>> Seamless exchange of data (customer,
product, account) between processes and • BPM: The BPM layer facilitates orchestration
systems. of business processes for different functional
domains within the enterprise. Some of the key
>> Multichannel integration capabilities. benefits of this layer include increased respon-
>> Single customer view across lines of busi- siveness of IT to business process changes and
ness (LOBs) and applications with one ver- enhanced productivity through automated
sion of the truth (i.e., MDM). process execution. BPM also provides opera-
>> Customer lifecycle management. tional flexibility, enabling rapid deployment
of business change and better monitoring of
>> Effective risk and exposure management business effectiveness.
by aggregation, hierarchy and relationship
mapping. • MDM: To enable users to realize the full
benefits of an automated solution, a complete
• Common processes and functions across 360-degree view of customers, products and
products and LOBs:
other key entities is required. MDM helps
>> Common business and data services. provide a centralized database with a single
version of the truth. Armed with key customer
>> Workflow and business rule automation. insights across interaction channels, the orga-
The Unifying Advantage nization can fully understand customer needs,
A unified solution helps reduce or remove bot- which helps it transition its processes from
tlenecks in the process flow. Some of the key product-centric to customer-centric. MDM
advantages of each component of this solution also enables more targeted and personalized
include: marketing, sales and service offerings through
the customer’s preferred channels.
• CRM: The CRM solution acts as the custom- Customer centricity can be realized through an
er-facing infrastructure, providing multiple
integrated architecture that combines CRM, BPM
touchpoints to address all customer interac-
and MDM disciplines, resulting in a seamless and
tions across all possible platforms. Along with
optimized customer management process (see
process optimization, care must be taken to
Figures 2 and 3).
ensure a consistent experience across all
Pillars of Customer Centricity
CRM BPM MDM
• Targeted promotions and e-mail • Process automation • Centralized data acquisition
communications • Centralized process logic • Data cleansing, standardization
• Sales campaigns • Process optimization and distribution
• Send e-mail and track responses • Enterprise-wide and beyond • Data model and persistence
• Sales force automation collaboration • Match and merge
• Customer tracking • Providing real-time process • De-duplication and
• Customer history visibility survivorship
• Appointment management • Automation and exception-based • Cross-reference and hierarchy
processing management
• Time management
• Reporting • Rule-based workflow • Data consolidation, harmoniza-
management tion, alignment and enrichment
• Business activity monitoring • Data stewardship and
• SLA tracking and process governance
analysis • Security and entitlement
• Event management and management
notification
Figure 2
cognizant 20-20 insights 4

5. Integrated Process Architecture
Delivering Customer Centricity
Relationship Web Mobile In-Store Meetings &
Branch Mail Contact Center
Marketing Self-Service Marketing Interactions Forums
CRM
Campaign Lead Service Request Loyalty Case Real-Time
Management Management Management Management Management Analytics
Multi-Channel Interaction Management
Third-Party ID and
Application Forms
Service Request
Decisioning &
Service Level
Credit Check
Origination &
Management
Underwriting
Qualification
Approvals &
Payments &
Notification
Notification
Verification
Application
Enrollment
Eligibility &
Processing
Fulfillment
Fulfillment
BPM
Dynamic
Product
Alert &
-
Business Process Orchestration & Automation
Single Customer 360-Degree Hierarchy &
Product Portfolio Risk & Exposure
View Customer Insight Relationship
MDM
Classification & 360-Degree View 360-Degree View Data Security
KYC & AML
Segmentation of Product of Interaction & Privacy
Centralized Data Strategy & Multichannel Integration
Figure 3
The Unified View system, to generate a list of suitable products
with applicable rates.
The power of the unified solution can be
visualized through a redesigned account opening The relationship manager then uses the complete
process (see Figure 4). The process begins with view of the customer provided by the MDM
the relationship manager using CRM to capture system, linked to BPM and CRM, to complete the
key customer needs stored in the system. The application. The MDM system also helps obtain
integrated approach relies on automated BPM the complete credit history and other information
software, built on a rigorous decision-based required for processing. This expedites account
Integrated Solution View
Decisioning 360-Degree
Client - RM System Insight Operations
RM captures client Displays all eligible • RM fills out application Reviews application
needs and transmits to product offers with based on 360-degree client view. and determines
decisioning system. accurate rates. • Provides credit offer based document needs.
on full client relationship.
Workflow
System
CRM
• Displays real-time
BPM application status.
• Routes document
MDM automatically to the
right person.
Operations Client - RM Operations Client - RM
• Client signs the • RM receives approval status. • Reviews application • Views application
document online. • Sets closing date. and documents. status online.
• Document automatically • Client reviews the • Updates workflow • Sends all documents
routed for processing. application. with approval status. required online.
Figure 4
cognizant 20-20 insights 5

6. opening processing time and reduces manual • BPM checks to see if the applicant is an existing
data entry. The completed form is automatically customer, updates additional information
routed to all concerned parties through process required, gets the basic know-your-customer
automation, achieved via BPM. The client is able (KYC) checks verified, defines the eligible
to view her current status online and provide an product and arranges for customer account
electronic signature. creation.
The signed form is then sent to the operations • MDM supports both CRM and BPM by checking
data repositories to determine whether the
team for final processing. Complete automation
applicant is an existing customer and then
and transparency is achieved using the combina-
creates or updates the customer record,
tion of the CRM, BPM and MDM systems working
assigns a customer ID and stores information
together to provide a seamless process flow.
on the products mapped with the customer ID.
Key Processes Leveraging
Customer Service Request Processing
the Unified Solution
The process starts with the request reaching the
From here, we will examine four critical customer customer service department and finishes when
management business processes. the request is completed and updated in the
customer master file (see Figure 6, next page).
Customer Onboarding in Retail
Banking Operations
• CRM handles the customer service request,
Let’s examine the customer on-boarding process captures additional information for authentica-
for a typical retail bank (see Figure 5). The process tion and service activation, generates a service
is initiated when an application for a particular request ID, manages turnaround time and
product is received at the point of sale and is updates the customer on service status.
terminated when the applicant is either denied or
converted into a customer. Here’s how our three • BPM sends the request for authentication,
determines whether fees or charges are
critical components should be applied:
required, sends the service request ID to
• CRM receives the application, collects and operations for fulfillment and notifies the rela-
captures all the necessary information, tionship manager for service completion. MDM
prompts the customer to choose a product and ensures whether the customer is genuine,
provides the welcome information and relevant identifies the customer segment or group and
collateral. updates the customer service portfolio.
Customer Onboarding in Retail Banking Operations
Capture additional Select Send welcome
Receive customer Receive customer
information for product/service letter/collateral/
CRM
info/application info/application
authentication requirement service confirmation
Check if existing Send for KYC Send for account
Send for
verification creation/ID number
BPM
customer creating/updating TPP Is product
asset/liability generation
Send for due or TPP?
Asset
diligence
Liability
Compliance
Update KYC Is customer
N
Risk &
eligible (credit
score)?
Y
Product
System
Map branch ID Map assset ID Map investment
to customer to customer product
N N
MDM
Y Create/update Is customer Y Create and store bank
Is customer Create customer ID
customer information KYC compliant? account/loan account/CC
existing ?
number/invoice
Figure 5
cognizant 20-20 insights 6

7. Customer Service Request Processing
Call center Captures Capture additional Inform customer of Mail/text completion
CRM
Create service
(branch) executive information for information/documents charges/TAT and request ID update to customer via
receives request authentication for service take confirmation preferred contact mode
Send service completion
BPM
Send for Send to check Send request ID alert to relationship
verification fees/charges to operations manager/CC
Repository
Product/
Service
Check appropriate
charge for segment
Processing
Operations
Add charges
to current
and
Process service
bucket statement
MDM
N Y Check interaction history
Is customer Check customer Check preferred Update customer
(to see if service request segment mode of contact service portfolio
genuine? exists in history)
Figure 6
Loyalty Management with updates made to the customer’s master file
The process begins with the identification of (see Figure 8, next page).
customers who can be offered loyalty benefits • CRM runs the campaign on the selected set of
(using MDM) and terminates after communicating customers, manages the response, interacts
the loyalty reward structure to customers from with customers and notifies them about new
CRM and updating them in the MDM customer products or services.
master database (see Figure 7, next page).
• BPM manages and designs the campaign,
transfers leads to the sales team and archives
• CRM communicates eligibility norms to
prospective leads.
the customer for loyalty benefits, notifies
customers about their loyalty group and • MDM provides the customer data for the
provides collateral and product/service campaign, obtains segmentation information,
offerings, based on loyalty. targets a set of customer data and forwards this
data to analytics for monitoring and measuring
• BPM maintains qualification standards, loyalty of the campaign’s success. MDM also updates
segmentation, mapping of customers within
the outcome of the campaign in terms of
the loyalty reward structure and updating
new products or services in the customer’s
the CRM system and sales team on customer
master file.
activities following loyalty structure mapping.
• MDM contains all the customer information, Key Benefits
which it sends to BPM for segmentation, Processes implemented using the proposed
providing a 360-degree view of customers to solution will promote the re-use of data services
help create customer loyalty segments, updates and improve overall data quality, while providing
the customer master database with the loyalty business stakeholders with a full view of the
code and loads the customer’s master file with customer, enabling the organization to serve
products and services made available after the customers better. It will also promote business
customer is awarded loyalty status. process governance and ensure consistency of
data in a multi-system environment. The result
Campaign Management
has the potential to drive much higher LTV with
The process is initiated from the data extracted at
increased up-sell and cross-sell opportunities,
the MDM level and ends at the MDM level, again
thereby improving top-line growth.
cognizant 20-20 insights 7

8. Loyalty Management
Communicate loyalty Welcome letter to
CRM
New offerings based on
structures and loyalty club and benefit loyalty to customers
associated benefits structure notified
N
Send for loyalty Customer mapped Update CRM on Update sales
BPM
Does the Update customer
segmentation customer with loyalty and loyalty code and team on loyalty activities post
qualify? reward structure notify customer structure loyalty structure
Y
Analytics
Analytics Create customer
rule engine loyalty structure
Marketing
Sales and
Sales and
marketing creates
offerings based on
loyalty structure
MDM
Create Update customer Update customer master with
Active customer
360-degree view of master with additional product and service
information codes post loyalty structure
customer loyalty code
Figure 7
Campaign Management
Initial
CRM
Run Customer Update Welcome call for
campaign response interaction customer new services
received
BPM
Design Approve Transfer leads Transfer Archive Notify
campaign campaign to analytics leads to sales leads customer
Analytics
Analyze Create target Monitor and analyze Archive leads for
customer data groups campaign success further analytics
N
Marketing
Sales and
Leads Lead Sales Active
Define goals and qualification
objectives assigned Y cycle customer
MDM
Customer Get segmentation Target set of Update customer
data information customer data master
Figure 8
cognizant 20-20 insights 8

9. Raising the Bar on Customer The unified business transformation solution
Lifetime Value outlined above can help organizations achieve this
customer-centric view. It will help optimize and
In today’s rapidly changing environment, organi-
automate processes toward a “one-organization”
zations are looking for ways to remain competi-
view across all channels to achieve a more precise
tive, regain traction, enter and expand into new
and intimate understanding of the customer. With
markets and tap all available opportunities. These
the combined use of CRM, BPM and MDM, organi-
organizations can benefit significantly by moving
zations can enhance their value to the customer
from a product-centric to a customer-centric
by effectively understanding customer needs and
approach.
mitigating customer issues, resulting in increased
loyalty, enhanced brand reputation and greater
lifetime value per customer.
Footnotes
1
The CMO Survey.Org, February 2012, http://www.cmosurvey.org/.
2
Drew Armstrong and Sara Forden, “Express Scripts, Medco Win Approval for $29 Billion Deal,” Bloomberg
Businessweek, April 2, 2012, http://www.businessweek.com/news/2012-04-02/express-scripts-medco-win-
approval-for-29-billion-deal.
3
“Healthcare M&A Finishes Strong in 2011,” The Advisory Board Co., Jan. 26, 2012,
http://www.advisory.com/Daily-Briefing/2012/01/26/Merger-and-acquisition-activity.
4
“HiTech Act,” HIPAA Survival Guide, http://www.hipaasurvivalguide.com/hitech-act-text.php.
About the Authors
Souparna Giri is Lead Consultant in Cognizant’s MDM Advisory Service, with eight-plus years of experience
in the IT field. Souparna has a bachelor’s degree in mechanical engineering from Bengal Engineering
College and an MBA in marketing from Great Lakes Institute of Management. His expertise spans MDM
strategy, assessment and roadmap. He can be reached at Souparna.Giri@cognizant.com.
Karmendra Jain is a Business Consultant with Cognizant’s MDM Practice. Karmendra has a bachelor’s
degree in computer science from The National Institute of Engineering and an MBA in strategy and IT
from the Indian Institute of Management, Calcutta. He can be reached at Karmendra.Jain@cognizant.com.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-
sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in
Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry
and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50
delivery centers worldwide and approximately 140,500 employees as of March 31, 2012, Cognizant is a member of the
NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing
and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
World Headquarters European Headquarters India Operations Headquarters
500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road
Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam
Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India
Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000
Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060
Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com
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