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Automating the warrantyclaims process
1. Software Group Solution Brief
Automating the warranty
claims process
Using business rules to increase the number, speed and
quality of your automated transactions
Warranty claims represent a significant expense for manufacturers: for
Highlights one global enterprise, approximately 1.7 million claims led to roughly one
billion dollars in payouts for the year. The sheer volume of claims can
● Speed time-to-market and warranty also be a substantial drain on your organization’s resources, and inconsis-
claims process with increased
automation tencies in the warranty claims process can create further, unnecessary
costs and damage customer relations. The increasing role warranties play
● Reduce costs by increasing the number
in business demands a dynamic claims process—an inability to change to
of automated claim payments
such a system can limit your business prospects and future growth.
● Improve the customer experience with
consistent interactions and enforced
eligibility
IBM® WebSphere® ILOG® JRules Business Rule Management System
(BRMS) provides organizations with the means to make their warranty
● Gain a competitive edge with fast, claims process more dynamic, automated and efficient. By lifting the
dynamic rule changes to the warranty
claims process claims-process business rules out of an embedded, static, complex IT
environment and moving into an open, flexible, external repository,
● Streamline compliance processes
ILOG JRules BRMS enables organizations to increase the number of
automated transactions, thereby freeing up resources, speeding time-to-
market and reducing costs. JRules BRMS also gives business users the
ability to make dynamic rule changes, so the warranty claims process
can be rapidly altered and adjusted to meet the demands of an evolving
marketplace.
2. Software Group Solution Brief
Retain your customers with faster claims processed manually. By deploying ILOG JRules to automati-
resolution cally process certain claims based on predefined rules, both time
An organization’s ability to deliver services in a timely matter and manpower are conserved.
can be a key differentiator in a competitive marketplace. If cus-
tomers’ requests are processed within a timeframe that meets or The ILOG JRules BRMS allows you to manage business rules
exceeds their expectations, they will be more likely to reengage guiding the claims process in an external repository that is
with the process in the future. If, however, the process is slow accessible to both business and IT users, depending on their
and cumbersome—even with an involved, multi-step process needs. Simply by making the switch to a dynamic, BRMS, your
such as a warranty claim—the customer will be more likely to organization can reap a variety of benefits, including:
disengage, or go elsewhere to seek similar services.
● Reduction of the time and resources required to change
A primary way for your organization to improve the entire war- decision logic
ranty claims process is by increasing the speed of transactions—
● Reduction of the IT workload
for both the customer and the business itself. And though there
● Increased business involvement in the definition and ongoing
will always be a need for individualized, manual processing of maintenance of business rules
certain claims, the key to a more efficient, faster system is
● Improved business decisions due to precise, fine-grained
automation. decision logic
WebSphere ILOG JRules BRMS features a robust, high level With the improved decision logic and the external, flexible
of automation for a significant number of claims. Automated business-rules repository of a BRMS, even complex decisions
claims processing is faster than manual processing, and based on a number of factors or conditions can be automated.
allows people in your organization to focus on other duties. Decisions can be made on specific, situational contexts, with
Automation can save money by conserving labor, and it also inputs from multiple sources. Each individual order, customer,
has the added benefit of actually improving customer relations: transaction or process is also contextualized within the BRMS,
rapid, rules-based processing means customers get their war- allowing for highly customized decisions while also enforcing
ranty claims processed faster, which makes them happier. compliance—such as meeting a regulatory mandate or internal
service level agreement—if required.
Improve your ability to see and
Finally, an externalized, highly automated BRMS such as ILOG
customize operational decisions JRules is designed to improve the overall visibility and under-
Automation can be applied to many areas of the claims process
standing of where decision logic is used, who is implementing
as well as to different types of claims—particularly, smaller,
rule changes, and how it drives operational systems. Business
simpler claims that consume valuable time and resources when
rules are more easily accessible, allowing them to be imple-
mented and reused across disparate systems. With increased
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3. Software Group Solution Brief
visibility, organizations can better ensure accuracy, consistency submission, the customer will clearly become dissatisfied.
and enforcement of policies, while also fostering a more in- The customer may even be required to repeat a questionnaire
depth understanding of the warranty claims process among or interview about the claim, further increasing the level of
business owners. dissatisfaction.
Reduce the costs of high-touch manual ILOG JRules can be used to improve the overall customer
processing experience by avoiding many of the pitfalls that disrupt the war-
As alluded to earlier, the automation of warranty claims pro- ranty claims process. It begins with consistency. With a rules-
cessing featured in ILOG JRules can reduce the number of based system in place, there is a direct path from the start of the
people needed to process claims, which saves money. But process to the final decision about the claim. More consistent
ILOG can indirectly reduce costs in other ways, such as the customer interactions with an improved, dynamic customer
improved alignment between business and IT. With a more questionnaire reduce the time customers must spend repeating
seamless, more automated claims process in place, business an interview due to missed key questions.
units can focus on their core competencies while IT profession-
als can turn their attention to other revenue-generating proj- Once a claim has been made and it has been determined that a
ects. Developers can more easily build and deploy rule-based payout will be made, it is imperative the customer receives the
applications that automate fine-grained, variable decisions used full entitlement of benefits. With a simplified, rules-based
by business systems, while reducing the time, effort and cost of process provided by ILOG JRules, eligibility is consistently
application development and ongoing maintenance. enforced, which helps build customer loyalty and satisfaction.
A more highly automated process can also reduce the number
A sound, efficient ILOG JRules BRMS can also result in of invalid claim submissions, which improves the turnaround
fewer errors during the warranty claims process, which further time to dealers for rejected claim notifications and further adds
reduces expenses arising from penalties, redundancies and to the customer’s satisfaction.
fines. A rules-based system is designed to maintain a high level
of precision and accuracy in the claims process. When regula- Prevent non-compliance and respond
tory mandates or requirements are changed by an outside faster and better to regulatory changes
source, developers need only update their BRMS to reflect the Compliance with external laws and regulations as well as inter-
change—which can be done dynamically, without interrupting nal business and corporate guidelines is a regular and important
operations. part of the warranty claims process. Proper compliance requires
step-by-step thoroughness, and can become a time-consuming
Improve your customer experience and task. Furthermore, failure to properly comply with government
reduce invalid claim submissions regulations can lead to costly fines.
When a customer files a warranty claim, that customer expects
a timely response with minimum hassle. When the process is A robust BRMS solution is ideally suited to streamline your
delayed by an error, or voided entirely by an invalid claim compliance processes, whether they originate externally or
internally. With a well designed interface, business owners
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4. Software Group Solution Brief
can easily gain visibility into the business rules that are being changes promotes consistent eligibility for customers, reduces
applied to your compliance processes, and manage them errors and delivers in a timely manner—all of which help both
accordingly. And, since compliance laws, rules and regulations the customer and the business.
are constantly changing, businesses can quickly and efficiently
update the business rules to reflect these changes. In the end, Why IBM?
compliance processes guided by BRMS can become faster, IBM is a leader in BRMS, with customers around the world
more efficient and more accurate. and across major industries. Beyond its established presence,
IBM extends its leadership position in BRMS through its strong
Impacting your business case with BRMS organizational resources and focus. IBM provides more than
The warranty claims process requires many steps along the just an industry-leading product set, including:
path toward successful completion. Customers expect a process
that is seamless, easy to follow, compliant, and devoid of errors ● Worldwide consulting and support resources to assist cus-
and complications. By shifting the business rules that guide the tomers with BRMS implementation
claims process from an embedded, hard-coded infrastructure ● Well-documented ISIS (IBM ILOG Systems Implementation
and into the open, flexible, external repository of ILOG JRules Standard) methodology and best practices relating to building
BRMS, business owners can make the changes and improve- and maintaining rules-based applications
ments that need to be made—in a timely, efficient, cost-saving ● A rich community support environment (available through
manner. IBM developerWorks), allowing customers to learn both from
IBM professionals and other customers
As global competition continues to intensify, organizations are ● A top-tier set of technology and services partners, ensuring
seeking better ways to satisfy and retain their customer base that WebSphere ILOG BRMS works seamlessly within
while keeping costs down. Solutions that can also improve the enterprise architectures
operational efficiencies of the business will only add to an orga-
nization’s chances to outcompete the others. Organizations have a lot to gain with the deployment of
IBM WebSphere ILOG JRules BRMS, as well as the resources,
With IBM WebSphere ILOG JRules BRMS, your organization research and documented best practices that come with it.
has an opportunity to improve processes across the board. With Simply put, the IBM BRMS solution provides the combination
such a customer-interactive process as a warranty claim, the of functionality, technological innovation and organizational
case for BRMS becomes especially clear: dynamic business rules leadership to help ensure that its customers achieve the value
they seek.
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