Connecting the Dots

Business Analytics
Leveraging Analytic Applications

May 2010 enherent

© 2010 enherent Corp. All rights reserved. www.enherent.com
Data Explosion

There is no bigger problem facing individuals

and organizations today than the reality that 59% of managers
they can‘t keep pace with the data explosion. miss
Real time information is not being effectively information
managed they should have used

“85% of business intelligence is

contained in unstructured data” 47% of users
- Butler Group
don’t have
“80% of business is conducted on
unstructured information”
confidence
- Gartner Group in their information

42% of managers
use wrong
information
at least once a week

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One Small Example

 Home Page (news and blog): 675+ comments on MJ stories

 Forum Topics: 36,000+
 Forum Posts: 555,000+ posts

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enherent Focus
A holistic approach to enabling business outcomes
through business analytics

Using advanced analytic technologies to enable analytic

applications

Insight

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 : A Holistic Approach

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Business Analytics – a blueprint for outcomes

B USINESS A NALYTICS
enabling the right outcomes.
Analytic
Prescriptive Applications
Portfolio
A DVANCED A NALYTICS
predicting possible outcomes.
 Domain Expertise
 Knowledge
B USINESS I NTELLIGENCE
 Data Mining
describing and analyzing outcomes.
 Query
 Text Analytics
 Reporting
 Statistical Analysis
 Dashboards and Scorecards
 Predictive Models  Visual Analytics
 Visual Analytics

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Polaris - A Business Analytics Map
TM

Business Outcomes The drivers of analytic applications

The combination of analytical methods

Analytic Applications Portfolio to deliver specific business outcomes

Reporting and Analysis Visual Analytics Methods for analyzing results

Business Statistical Text Predictive

Rules Analysis Analytics Models Methods for forward looking analysis

Knowledge Data Text Methods for extracting insight

Management Mining Mining

Domain Structured Unstructured

Analytic sources
Experts Data Data

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Polaris Analytic Applications
TM

 Fraud Mitigation
 Subrogation & Recovery
 Claim Analytics
 Anti-money Laundering
 Quality & Safety
 Customer Acquisition & Retention
 Call Center Optimization
Analytic  Reputation Management
Applications  Innovation
 Employee Satisfaction
 E-Discovery
 Clinical Analysis
 M&A Due Diligence
 Regulatory Compliance
 Other

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A Fraud Mitigation Application

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Knowledge Applied through Dictionaries

 Represented by a word or combination of words that finds

insight when applied to structured or unstructured data (text)
 Captured by software and applied to claims
 Deployed in two forms: base and compound

Example

Example
Un-witnessed soft tissue injury
where the Claimant:
Soft Tissue Injury  Had no health insurance and,
Stress, Strain, Sprain,  Is unemployed and,
Swelling, Soft, Tissue,  Has a prior injury or medical
Injury history

A base indicator is an idea A compound indicator is the

combination of multiple ideas
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Analyzing for Suspicious Activity

Domain expertise, data and text

mining are used to create LOB
dictionaries and scoring models
No Suspicion
Tier 1
 Claims Database
 Text Sources
All claims are Claims are
All data is
 Internet Content processed and assigned to 1
fused together
 Imaged Content scored of 4 tiers Tier 2 Score

Tier 3
Tier 4
High Suspicion

Claims are Intelligent

reviewed and Workflow
validated

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Analytics Enabled Intelligent Workflow
Appropriate
Claim
Examiner
Claims Investigative
Administration
action plan is For approved
Straight shared with claims, SIU SIU
through examiner who Executes Recommends
processing SIU
either approves Investigative Claim Action
or rejects action plan
action
Insight Intelligent
Workflow

Supervisor

Other

A focus on all data (structured and text) optimizes workflow intelligence

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Other Insurance Applications

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Cash Flow Outcome Framework

The outcome focus shifts to Cash Flow initiatives

 Managing cash balances and reserves is mission
critical
 Investment strategies are dependent upon a real-
time visibility to cash position
 Improved cash flow provides more opportunity for
investment managers

Outcome Framework
Business Analytics Initiatives Outcomes Business Metrics
 Identify Re-Insurance Recoverable  Optimized investment management - Liquidity Ratio
Opportunities  Improved cash flow - Operating Cash Flow
- Net Cash Flow Percentage
 Identify Subrogation Opportunities
- Working Capital Ratio
 Recover Third Party Deductibles

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Claim Analytics Outcome Framework

Focus on Claim Analytics enables several

business outcomes and shines light on:
 Claim frequency, severity, and duration
 Reserve accuracy
 Risk/price relationship
 Other

Outcome Framework
Business Analytics Initiatives Outcomes Business Metrics
 Improved risk/price relationship - Combined ratio
 Expand Advanced Analytics Platform to
include multiple use cases  Improved decision quality - Operating ratio
 Risk reduction - Loss ratio
 Leverage full power of multi-dimensional  Optimized loss reserves - Risk exposure index
reporting capabilities
 Increased profits - Loss reserve surplus
- Capital adequacy ratios

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Underwriting Outcome Framework
Focus expands to include Underwriting - a
critical area of differentiation
 Long underwriting cycle times translate to
lost revenue
 Improvements in underwriting process have
significant bottom line impact
 Improved expense and loss ratios enable
pricing flexibility and customer acquisition

Outcome Framework
Business Analytics Initiatives Outcomes
 Automate and streamline underwriting  Improves service levels
processes  Improved customer satisfaction
 Retained customers
 Improve decision quality with multi-
dimensional reporting capabilities  Improved decision quality
 Cost reduction
 Increased profits
Business Metrics
- Customer retention percentage
- Average speed of underwriting
- Customer satisfaction score
- Service support score
- Underwriting ratio
- Expense ratio
- Loss ratio

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Customer Outcome Framework

Customer focus
completes the framework

Outcome Framework

Business Analytics Initiatives: Outcomes Business Metrics

 Analyze reputation risk  Optimized call centers - Risk Exposure Index
 Improved customer satisfaction - Customer satisfaction score
 Drive support traffic to self-service options
 Retained customers - Customer retention percentage
 Automate email response  Acquired customers - New Product/service in market
 Capture customer issues and resolutions  Increased share of wallet - Modified product/services
 Risk Reduction - Customer acquisition percentage
 Improve Sales & Marketing effectiveness
 Cost reduction - Promotion campaign ROI
 Design new campaigns for most profitable  Increased revenue - Marketing spend
customers
 Increased profits - New Revenue percentage
 Improve success of marketing campaigns - Revenue growth percentage
 Identify new product innovation - Expense ratio
- Combined ratio
- Operating ratio

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Voice of the Customer Applications

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A Holistic Approach
Businesses have faced the obstacle that the majority of relevant
information is found in text, outside an organizations databases
Text provides far more insight than transactional information

Feedback Warranty
 Surveys  Claims
 emails  Warranty notes
 Interviews  Customer comments
 Blogs
 Forum postings
 Social media
Internal  News and articles
Information  Online reviews

Internet
Call Center Structured Data
 Transcripts  Call Center Database Dialog
 Call notes  Warranty Database
 Service requests  HR Database
 Complaints  Other
 IM logs

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VoC Related Use Cases
Industry Use Case Business Objective Solution Methods
Accelerate the employee survey
Analyze employee verbatims and
Insurance Employee Satisfaction review process and enable more
categorize employee sentiment
surveys annually

Identify key opinion leaders by

Improve marketing effectiveness by
Pharmaceutical Market Analysis analyzing Internet news articles and
targeting key opinion leaders
Blogs

Analyze call center records and

Increase Call Center productivity by
capture product issues by category.
High Tech Call Center Optimization enhancing the knowledge available
Develop a knowledge repository to
to Call Center Representatives
expedite issue resolution

Identify new value added service Analyze customer surveys and

Healthcare Product Innovation
ideas categorize idea related responses

Reduce the number and cost of Analyze warranty repair notes to

Consumer Electronics Quality and Safety
product recalls proactively manage emerging issues

Customer acquisition, Retain loyal customers by identifying Analyze customer data from multiple
Telecommunications
growth and retention new programs channels including text

Analyze customer sentiment,

Financial Services Customer acquisition, Retain customers by establishing
requests and issues in email, web
growth and retention proactive programs
forms and service notes

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Business Benefits Derived from VoC
 Innovation: analyze customer surveys, email, call center notes, Internet
Dialog, etc. to generate new product and enhancement ideas
 Accelerate new product introductions
 Establish and maintain competitive advantage

 Reputation management: analyze Internet dialog to assess brand impact

 Proactively manage Brand risk
 Identify areas where damage control is required

 Market analysis: analyze data from all customer channels to improve

marketing effectiveness
 Assess the impact of new product introductions and refine messaging early in the
product launch
 Assess the effectiveness of marketing campaigns
 Evaluate offering strategies for market segments

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Business Benefits Derived from VoC
 Customer acquisition, growth and retention: analyze call center notes to
identify product issues and capture their resolution
 Improve customer responsiveness and service levels
 Improve customer satisfaction

 Call center optimization: Automate the process of receiving, interpreting,

sorting, routing, and responding to all incoming e-mails.
 Reduce cost, improve response time, and increase productivity

 Quality and Safety: analyze customer and repair notes to get early warning
on quality and safety issues
 Eliminate expensive recalls
 Reduce cost of recalls with early detection

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Platform Versus Application
A platform approach views VoC initiatives holistically. The right platform
is deployed and each application is delivered via the platform
An application approach looks for the best solution for each use case

Platform
Feedback Warranty
 Surveys  Claims
 emails  Warranty notes Applications:
 Interviews  Customer comments  Survey analysis
 Blogs
 Forum postings  Email analysis
 Social media  Call center notes analysis
 News and articles
Internal  Online reviews  Warranty claims analysis
Information  Social media analysis
Call Center Structured Data Internet  etc.
 Transcripts  Call Center Database Dialog
 Call notes  Warranty Database
 Service requests  HR Database
 Complaints  Other
 IM logs

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Deployment and Delivery Options

Delivery Options
 Hosted option – customer owns the PolarisTM software
licenses and enherent delivers hosting and operation support
services
 On-Premise – customer owns the PolarisTM software licenses
and deploys behind their firewall
 Software as a Service (SaaS) – PolarisTM is delivered as a
service. The customer does not own the software licenses

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