COOs: Driving Process Transformation for Growth
Jacqi Levy 270003E0DF JALEVY@US.IBM.COM | | Tags:  business_process_innovati... coo smarter_process bpm change_management banking mortgage_lending operations
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“ Customers expect every company to offer services like web retailers. They want to see everything in real time, putting pressure on our systems and operations.”
If your operations department can relate to this sentiment, you are not alone. The IBM Center for Applied Insights (CAI) recently released a study of senior operations leaders globally. The study, Gearing Up for Growth: How COOs Are Making Their Operations More Customer-Centric, found that COOs are increasingly involved in strategic initiatives to meet top-line growth objectives. Here are a few interesting stats from the study:
The study highlights the need for forward thinking operations departments to work together with IT to deliver customer-facing processes that are simple and unified across the company -- processes the study categorizes as instant, seamless and insightful. So, what does this mean?
A Real World Example: Mortgage Lending
Here's an example from my recent experience setting up an escrow account with my mortgage lender. To initiate the process, I had to sign and mail them paperwork. After 3 weeks, I had heard nothing back from the lender, so I logged into my online account to confirm whether they had processed the paperwork. Unfortunately, although I could view my bill, there was no way for me to check the status of this particular process.
So, I called the lender. Before being connected to a representative, I was asked to enter 3 pieces of personal information into the system. I was transferred several times, each time confirming those same three pieces of information. Well, guess what? When I finally got the representative on the phone, she also could not determine the status of the process. I had to call back several times over the next 3 weeks. My issue was eventually escalated, but even after 8 weeks it has still not been resolved.
The Customer-Centric Business Process: Instant, Seamless and Insightful
Here’s an alternative scenario in which the process that I described above follows the model outlined by the CAI study.
Disparate, legacy processes are more than likely to blame for the challenges that my lender is having in resolving my issue. However, consumers are becoming more accustomed to the instant gratification of the web retail experience, and we’re likely to see declining patience with these types of challenges. In fact, The CAI study confirms that 80% of consumers are more likely to choose a brand because it provides a simpler experience. As operations leaders, the environment is right for you to work with your IT departments to lead this business process transformation. Personally, I am looking forward to seeing what you come up with!
More About the Study
To learn more about this study, check out the presentation below, or download the study itself.
Driving growth through serving empowered customers: The need for an enhanced customer experience from Shubham Jain