IBM Corporation Breaking New Ground IBM SOA for

IBM Corporation Breaking New Ground IBM SOA for Line of Business Customer References 1 Driving Business Value with Service Orientation

IBM Corporation SOA for LOB – Client References TABLE OF CONTENTS Aerospace & Defense ü PLM supplier collaboration Automotive ü Dealer collaboration ü Manufacturing productivity ü Visibility across PDM systems Banking ü Front / Back office integration ü Trade and order management ü Transform back office delivery Government ü e. Forms & records management ü Public safety (aka "Rapid Response") Healthcare & Life Sciences ü Core banking transformation (inc. NEFS) ü Multichannel transformation (formerly Bank Branch Renewal) ü Claims transformation ü Healthcare enterprise portal ü SWIFT net support (inc. WBI-FN) ü ü Wholesale payments integration WBI for Healthcare Collaborative Network ü (SCORE) Solution for Compliance in a Regulated Environment Electronics 2 Financial Markets ü Multichannel management ü Product information management ü Supply chain integration and Rosetta. Net Driving Business Value with Service Orientation w 3. ibm. com/software/xl/soa

IBM Corporation SOA for LOB – Client References TABLE OF CONTENTS (cont. ) Insurance ü Channel management ü Claims management ü (Life) Policy administration Retail ü Master data management ü Next generation e-commerce ü Open POS Telecommunications ü BSS/OSS integration ü Next generation services platform w 3. ibm. com/software/xl/soa 3 Driving Business Value with Service Orientation

IBM Corporation Aerospace & Defense Breaking new ground IBM SOA for LOB References 4 Driving Business Value with Service Orientation

IBM Corporation PLM supplier collaboration Breaking new ground IBM SOA for LOB References 5 Driving Business Value with Service Orientation

IBM Corporation Bombardier Aerospace: Supply Chain Integration Optimizing the purchasing processes Business challenge: ü Management of inventory processes across numerous systems Objectives: ü An efficient way to get visibility into parts supply and demand to reduce inventory costs ü Enable inventory process to span multiple suppliers across multiple manufacturing lines Actions: ü Used IBM software and a service orientation approach to standardize the disparate inventory data and automatically load it into SAP R/3 and Business Intelligence Warehouse (BW) 6 Driving Business Value with Service Orientation Outcomes Business value: ü Able to efficiently handle spare parts, consolidating purchasing and supply chain processes ü Reduced travel investment through new collaborative development environment ü Efficiently handle spare parts, consolidating purchasing and supply chain processes

IBM Corporation Dassault Aviation: Supplier Collaboration Designing a new aircraft Business challenge: Outcomes ü Faced with twin competitive pressures to build a high-performance executive aircraft and to gain market share, Dassault Aviation needed to accelerate its development time for the new plane from ten years to five. Objectives: ü A collaborative, online design process to manage an average of 20, 000 parts updates a week with business partners. Actions: ü Working together with IBM and Dassault Systemes, an IBM Business Partner, created a Product Lifecycle Management platform using a service orientation approach that allows Dassault to design the new aircraft in a virtual, parallel environment with its suppliers. 7 Driving Business Value with Service Orientation Business value: ü Reduced time-to-market plan by approximately 30 percent ü Reduced travel investment through new collaborative development environment ü Increase in productivity with electronic updates to the database ü Elimination of physical prototypes ü Over 50% reduction in assembly time and 66% reduction in tooling costs

IBM Corporation Automotive Breaking new ground IBM SOA for LOB References 8 Driving Business Value with Service Orientation

IBM Corporation Dealer collaboration Breaking new ground IBM SOA for LOB References 9 Driving Business Value with Service Orientation

IBM Corporation Vehicle manufacturer: Dealer collaboration Improve access to information by dealers Business challenge: Outcomes üTo provide accurate inventory and timely delivery information to dealers based on accurate manufacturing information Objectives: üProvide reconciliation of parts data with dealer shipments and order forecasts üVisibility to demand market analysis information by dealers Actions: üImplemented service oriented approach for application integration and data warehouse to improve the sales tracking, order and inventory management processes. 10 Driving Business Value with Service Orientation Business value: ü Dealers have insight into vehicle fit and local demand when ordering parts and accessories ü Visibility to margins and category performance ü Reduced staff days because of reuse of services across production applications and enterprise data warehouse

IBM Corporation Route. One: Auto credit application Fast secure business transactions Business challenge: Outcomes: ü Lower the auto credit application process Business value: time for dealers and their customers while increasing the financing options Objectives: üLink 22, 000 auto dealerships to financing sources üFaster and more secure loan process with field-level encryption and digital signatures ü (Data. Power) outperformed nearest competitor by a factor of 15 ü IBM service orientation helped Route. One redefine and improve the credit application process for its automobile dealers and their customers Actions: üImplemented a new trading network using a service orientation approach that is always available and highly secure and able to support a volume of loan applications projected to reach 40 million per year “Data. Power XS 40 delivers the performance required for comprehensive XML security functions, meaning that we will not have to sacrifice performance for protection. ” – Joel Gruber, CIO, Route. One 11 Driving Business Value with Service Orientation

IBM Corporation CNH (New Holland Kobelco): Dealer collaboration Improve ordering processes for dealers Business challenge : Outcomes üProvide better service to dealers by enabling them to place and manage orders faster and more efficiently than a fax/phone process Objectives: ü 77% increase in dealer satisfaction for whole-goods ordering processes as flexible services üReduce the inefficiencies of fax and telephone ordering system ü Thousands of dollars saved for call center üImprove ordering processes üReuse existing IT assets that can be treated Actions: üUsing a service oriented approach, provided direct access to CNH’s host applications, creating a more efficient ordering process. Worked with IBM and Beaver Creek Solutions, an IBM Business Partner, with IBM software and software services. üExtended implementation with a composite application approach for dealer, supplier and employee portal 12 Business value: Driving Business Value with Service Orientation ü Solution launched on time and under budget

IBM Corporation Vehicle manufacturer: Dealer collaboration Proactively retain existing customers Business challenge: Outcomes üEfficiently and proactively contact customers to propose new financing agreements Objectives: üSimply and quickly analyze whether to propose value added services and better rates üConsolidate multiple business applications into a single view to provide better service for customers with expiring accounts Actions: üImplemented service oriented approach with IBM to more effectively retain existing customers based on contract maturity 13 Driving Business Value with Service Orientation Business value: ü Increased chances of keeping existing good customers ü Improved productivity for analyzing customer information, enabling prioritization on top customers ü Increased sales leads from existing customer base

IBM Corporation Daimler. Chrysler: Drive to flexibility and responsiveness Proactive infrastructure Business challenge: ü Enable a more nimble and responsive business where the environment for deploying and running application supports sharing projects Objectives: ü An ability to create and reuse services, such as: get shipment dates within dealer collaboration to check inventory within manufacturing to get BOM level within PLM ü An integrated infrastructure with built-in means to respond dynamically, requiring flexible systems and integrated processes Outcomes Business value: ü Nearly 50% reduction in installation costs for applications deployed via the new application development platform ü Nearly 30% reduction in ongoing operations costs (Gartner Group) ü Reduction in overall application lifecycle costs and average application development cycle time ü Standardize to made the company’s processes faster and more efficient Actions: ü Engaged IBM to design and build a standardized environment for delivering solutions within a service orientation approach 14 Driving Business Value with Service Orientation “The solution … has established the foundation for us to become a nimbler more responsive company. ” – Dr. Seshu Bhagavathula, Director for Technology Strategy, Daimler. Chrysler

IBM Corporation Vehicle manufacturer: Dealer collaboration Optimizing the sales processes Business challenge: Outcomes ü Large Truck Manufacturer needed an integration platform to support the company's dealer portal, extending legacy systems, enterprise applications and other business critical data to their website Objectives: ü Integrate data from its existing legacy infrastructure and provide a seamless flow of information to dealers ü Optimize the order-to-delivery process Actions: ü Implemented IBM Web. Sphere software with a service oriented approach to present a seamless flow of information on its dealer portal with real time interaction between dealers and production steps 15 Driving Business Value with Service Orientation Business value: üProvided real-time visibility of orders üProvider and order change capability, and improved ability to manage high margin truck options üReduced order to delivery span

IBM Corporation Manufacturing productivity Breaking new ground IBM SOA for LOB References 16 Driving Business Value with Service Orientation

IBM Corporation Vehicle manufacturer: Manufacturing productivity Improved product order and bill of material handling processes Business challenge: Outcomes ü Despite multiple systems as the result of acquisitions, this manufacturer needed to create efficient sales and purchase order processes with various plants and dealers across legacy systems Objectives: ü Develop faster, integrated way to check availability, ü 100% consistency between orders and factory manufacturing order status and shipping information ü Keep factory manufacturing consistency with order ü Use across various plants, integrating diverse technologies and leveraging existing applications ü Keep customer data updated at its global sites üIncreased BOM consistency Actions: ü Worked with IBM on a service oriented approach üShortened shipping lead time using IBM Web. Sphere to provide application integration with SAP software and other applications 17 Business value: Driving Business Value with Service Orientation from 88 to 94% üReduced component lead time from 26 to 17 days from 7 weeks to 4 weeks üReused existing applications

IBM Corporation Volkswagen: Manufacturing productivity Improving procurement productivity Business challenge: üTo make its procurement employees more productive to outpace competition, VW needed to integrate its supply-chain and procurement information and processes to become more responsive to a rapidly changing supplier environment Objectives: üConnect employees and suppliers to information and applications and enable an automated, data-enriched workflow environment üSpeed decision making üIncrease responsiveness to suppliers Actions: üImplemented a process driven portal using a service oriented approach with reusable service components serving discrete business functions to provide purchasing economies through more unified supply chain view 18 Driving Business Value with Service Orientation Outcomes: Business value: ü 20% increase in staff productivity ü Significant decrease in supplier and inventory costs ü Expect 100% payback within a year ü Reuse portal platform for every kind of portal

IBM Corporation Visibility across PDM systems Breaking new ground IBM SOA for LOB References 19 Driving Business Value with Service Orientation

IBM Corporation Customer case: Supplier collaboration Reduced development time and cost Business challenge: Outcomes ü Capture significant new share of the European auto market in five years. Reduce the designers, engineers and suppliers reliance on manual information distribution, in order to speed the development process and reduce error. Objectives: ü A collaboration platform that centralizes document management for designers, engineers and suppliers. ü With automated version control, development teams and suppliers can now access one interface to communicate design changes. Actions: ü Built collaborative supplier collaboration solution using a service orientation approach 20 Driving Business Value with Service Orientation Business value: ü 35% projected reduction in the design/engineering cycle ü Estimated development cost savings of 25% ü Automated, real time distribution of production documents to address changes and reduce errors

IBM Corporation Banking Breaking new ground IBM SOA for LOB References 21 Driving Business Value with Service Orientation

IBM Corporation Core banking transformation Breaking new ground IBM SOA for LOB References 22 Driving Business Value with Service Orientation

IBM Corporation Growing the top line while increasing efficiency Commerzbank AG Business challenge: ü Business areas organized in silos with dedicated applications. No common communication or integration vehicle for applications like payments Objectives: ü Adopt a new component-based business model where some components can be handled by external partners ü Move to this new model progressively within a service oriented architecture to increase business flexibility ü Create new services in a flexible and cost-effective way. Actions: üThe firm implemented a reliable messagebased infrastructure to support faster speed to market of new, integrated business functions. 23 Driving Business Value with Service Orientation Outcomes Business value: ü Enabled new service to internal and external clients for exchanging securities trading data and payments over SWIFTNet ü More efficient, effective adoption of new, integrated business applications. ü Increased adaptability to new market requirements

IBM Corporation Multichannel transformation Breaking new ground IBM SOA for LOB References 24 Driving Business Value with Service Orientation

IBM Corporation On-line lender: Electronic delivery and approval service Disclosure documents and beyond Business challenge: üNeed to streamline the disclosure delivery and approval process for mortgages to reduce delay and customer fallout Objectives: üEstablish an electronic business service for disclosure delivery, signature, verification. üEstablish “process” signature to create a legally enforceable end to end transaction while maintaining ease of use for the borrower üReplicate the service to other portions of the mortgage process, such as closing, and other loan products. Actions: üThe lender employed electronic delivery, signature with a service oriented approach. 25 Driving Business Value with Service Orientation Outcomes Business value: Electronic service: ü Mortgage application process reduced from days to minutes ü Increased customer retention and mortgage pull-through ü Reduction of mail, courier, paper costs Service orientation: ü Quickly adaptable to other business areas ü Re-usability of client profile information for signature verification and opening of other loan accounts

IBM Corporation Wachovia: Common business services Harnessing the value of shared services across channels Business challenge: üNeed to support multiple delivery channels for retail banking, including account opening services, in a consistent fashion üReduce cost of maintaining duplicate business logic Objectives: üProvide a single set of business and foundational services to support existing and future delivery channels üReduce cost by leveraging common services Actions: üWachovia employed a service oriented approach and IBM SOA foundation products to provide a common set of re-usable business services in support of it’s delivery channels 26 Driving Business Value with Service Orientation Outcomes Business value: ü Higher adaptability to change. ü Less business logic to change or build for new products, services, and policies to be implemented in support of multiple delivery channels. ü Reduction in maintenance cost.

IBM Corporation Electronics Breaking new ground IBM SOA for LOB References 27 Driving Business Value with Service Orientation

IBM Corporation Supply chain integration and Rosetta. Net Breaking new ground IBM SOA for LOB References 28 Driving Business Value with Service Orientation

IBM Corporation Xerox: Integrated multichannel process Supplier and channel collaboration Business challenge: ü To centralize these programming efforts and bring costs under control by using more efficient methods of application development and integration Objectives: ü Add systems as required without developing point to point code Outcomes Business value: ü 100% payback in 24 months ü Reduced annual deployment costs by $720, 000 ü Decreased system implementation time by 25% ü Integrate and reuse development efforts ü Maximize uptime of all business systems that rely on core data Actions: ü Xerox employed a service oriented approach that integrated multiple applications to enable dramatically faster attachment of applications and processes without recoding 29 Driving Business Value with Service Orientation “With IBM’s help we can move forward with a service oriented architecture that helps us respond to today’s challenges and gives us a flexible architecture to respond to future challenges. " -Ram Sunkara

IBM Corporation JK-Holding: Trading partner integration Supplier and channel collaboration Business challenge: Outcomes ü Providing a real time collaboration system for the dealer network, field service and distributors Business value: Objectives: ü Integrate data from multiple ERP systems ü Eliminate manual tasks ü Reduce reliance on manual tracking and order entry techniques Actions: ü JK-Holding employed a service oriented approach that integrated multiple ERP procurement applications along with portal technology to enable dramatically faster commitment of product data to customers, distributors and field service technicians 30 Driving Business Value with Service Orientation ü ü ü Decreased phone and fax orders by 30% Increased staff efficiency Decreased order reaction time Lowered overall IT costs by 7% Increased Productivity with 350 partners Improved customer satisfaction

IBM Corporation Skanska AB: Integrated partner portal Supplier and channel collaboration Business challenge: Outcomes ü Componentize real time access to product, price and promotion detail to all supply chain partners Business value: Objectives: ü Integrate data from multiple partner systems ü Eliminate manual tasks ü Reduce time to manage and react to orders and inquiries Actions: ü Skanska employed a service oriented approach that integrated multiple partner applications to enable dramatically faster commitment of product data to customers and suppliers 31 Driving Business Value with Service Orientation ü ü Slashed data handling time by days Increased reaction time to customer orders Decreased volume of manual procedures Provide business partners real time information

IBM Corporation Financial Markets Breaking new ground IBM SOA For LOB References 32 Driving Business Value with Service Orientation

IBM Corporation Trade and order management Breaking new ground IBM SOA for LOB References 33 Driving Business Value with Service Orientation

IBM Corporation Growing the top line while increasing efficiency Charles Schwab Business challenge: ü Requirement to be more responsive to Outcomes changes in business conditions ü Need to pursue new areas of revenue beyond brokerage üBusiness flexibility and interoperability Objectives: leveraging the Schwab Enterprise Bus ü Increase efficiency in connecting and exchanging messages on trades, settlement, instruments ü Update financial messaging Infrastructure to meet industry standards ü Provide a logical transition between legacy and new business systems Actions: ü Created a service oriented approach to ease migration to new, changing business functions 34 Business value: Driving Business Value with Service Orientation üAbility to scale dynamically driven by business needs üImproved resilience

IBM Corporation Government Breaking new ground IBM SOA for LOB References 35 Driving Business Value with Service Orientation

IBM Corporation e. Forms & records management Breaking new ground IBM SOA for LOB References 36 Driving Business Value with Service Orientation

IBM Corporation Modernizing for speed and improved accessibility County of Santa Clara, Criminal Justice Information Services Business challenge: ü Users of the CJIS system were replacing older systems with pre-built, off-the-shelf software packages due to the slow, screen-by-screen fashion of the current system. If steps were not taken to make it easier and more efficient for users to access the data they needed (arrests, bookings, custody time and probation), the group risked losing its relevance, as users looked elsewhere for the data. Objectives: ü Provide a modern, flexible, easy to use facelift for the CJIS transaction service, evolving them as web services Actions: ü Santa Clara implemented a service-oriented approach enabling its critical data easily accessible for all of its users. 37 Driving Business Value with Service Orientation Outcomes Business value: ü Users and 40 agencies can track and access data on defendants and cases from throughout the criminal justice process ü CJIC has been able to modernize the application-programming interface (API) in its system ü Other agencies can now use, access and receive data from the CJIC system ü The county was able to significantly reduce costs because the solution allowed it to leverage existing skills and technology investments

IBM Corporation Integrating agencies & providers while empowering client State of Utah Department of Human Services Business challenge: ü Integrate service delivery into a model of holistic case management ü Provide a single location for citizens to access government and non-profit service program information ü Replace outdated, siloed legacy system Objectives: ü Flexible, cost-effective and citizen-focused eligibility solution for workforce services and health and human services ü 24 x 7 access to community resources ü More accurate, consistent, and faster eligibility determination ü Faster, more accurate eligibility decisions Actions: ü Utah’s Department of Human Services employed a service oriented approach that significantly improved service delivery and case management and fostered inter-agency collaboration. 38 Driving Business Value with Service Orientation Outcomes Business value: ü Established an enterprise foundation for service delivery that provides flexibility to update and add programs ü Supports holistic case management for all programs ü Fostering inter-agency collaboration with significantly improved service delivery ü Simplified policies; support holistic case management and integration of programs and services ü More accurate, timely and consistent eligibility determination

IBM Corporation Breaking down the silos Miami-Dade County Business challenge: ü Be more responsive to its constituents by building an online experience tailored to their needs – one that breaks down silos providing a seamless e-Government Objectives: ü e-government solution to redefine the way services were offered to constituents ü More convenient access to County services ü Break down siloed barriers Actions: ü Miami-Dade County employed a service oriented approach that significantly improved service delivery and greater access to information regarding services. 39 Driving Business Value with Service Orientation Outcomes Business value: ü Number of overall visitors to the portal increased by more than 50 percent in the last year to nearly 10 million ü Expects to reduce the costs of managing the system by more than 25% ü County processed 60, 000 electronic payments totaling more than $4 million in revenue ü Greater IT flexibility: • Improved availability and diagnostic capabilities with server consolidation • More streamlined publishing workflow, getting information out to citizens faster “Our citizens are truly thrilled with the level of service we’ve been able to provide” – Judi Zito CIO, Miami-Dade County

IBM Corporation Business flexibility and external partner integration IRS e-Filing application Business challenge: üGovernment agency mandated to make 80% of its transactions “electronic” by 2007 Objectives: üRobust, scalable service-oriented system linking external trading partners with new applications üMust deliver new services using existing assets Actions: üThe IRS employed a service-oriented approach to build and deliver an electronic document filing service to speed processing, reduce errors and support new approaches to deliver new services 40 Driving Business Value with Service Orientation Outcomes Business value: Enabled delivery of new services to citizens faster, while reducing operating costs and providing improved flexibility ü Error rates associated with manual adjustments to transmitted data were reduced from 25% to 6% ü Employee productivity increased through online availability of submission data Client complied with government mandate and completed ahead of schedule IBM Internal Use Only

IBM Corporation Transforming business processes with integrated solutions U. S. Army Business challenge: ü The Army had a forms-based business process that was largely a manual one requiring an online integrated forms management solution Objectives: ü Be able to handle the speed and flexibility that is required in the field ü Increase productivity & decrease costs for the Army’s use of forms-based business processes ü Confidential and critical data must be captured and transferred securely Actions: ü The U. S. Army employed a service-oriented approach through greater IT flexibility that allowed it to re-engineer its forms-based business processes with an integrated forms management solution 41 Driving Business Value with Service Orientation Outcomes Business value: ü Saved 1/3 of time required to fill out forms when the system is fully automated ü Improved security of information and provision of auditable records ü Reduction of system redundancies and common user errors ü Total savings of $1. 3 billion annually in administrative processing costs ü Regulatory compliance

IBM Corporation Reliability using Web services Ministry of Justice Austria Business challenge: ü Ministry of Justice Austria had multiple existing application solutions used in electronic exchange with partners and government agencies. These were once easy to use and efficient means to access information. Because of technical advances and new requirements, the solutions needed to be upgraded. However, the data formats were rigid and costly to maintain by the Mo. J and by the users utilizing proprietary technology. Objectives: ü A complete renewal of their automation of judicial proceedings Actions: ü The Ministry of Justice Austria employed a serviceoriented approach that assembled a solid foundation on which to base this and future e. Government initiatives 42 Driving Business Value with Service Orientation Outcomes Business Value: ü Efficient and up-to-date online support for the public ü Provide relevant online information for all lawyers and attorneys in the Austrian juridical system ü Able to monitor increased operational efficiency, functionality and customer service ü Reduced integration implementation more than 60%

IBM Corporation e-government integration framework KDVZ Business challenge: ü Connect local agencies for greater public convenience accessible 24 x 7 Objectives: Business value: ü Potential savings of more than $1 million in business registration process ü 24 x 7, online business network enabling agencies to access each other’s data in real-time ü Low cost solution frees up resources for new e-government applications ü Needed a high-level integration infrastructure that would enable them to share resources with one another on the fly ü 99. 999 percent availability for greater resilience Actions: ü KDVZ employed a service-oriented approach which provided a low cost, easily accessible, integrated infrastructure that provides an online business network enabling local agencies to share resources 43 Outcomes Driving Business Value with Service Orientation ü Significant cost savings over point-to-point integrations Established in 1973, this organization is a fullservice provider of IT services for approximately 50 counties and local governments in a European country, representing three million citizens.

IBM Corporation Sharing a single view of data for disease analysis Department for Environment, Food and Rural Affairs Business challenge: ü DEFRA had siloed information and independent business processes; the organization found decision making to be complex and time-consuming. Before it could use data, DEFRA had to thoroughly check and cleanse it, a process that required massive effort and inhibited progress. Objectives: ü Share a single view of data with users throughout the organization and test the new system with data where DEFRA employees would be able to closely monitor animal movements and calculate the likelihood and impact of infection ü Provide ad-hoc business intelligence tools Actions: ü DEFRA implemented a service-oriented approach to share a single view of data to provide an environment for deploying applications, such as those used for disease analysis and livestock movement registration services. 44 Driving Business Value with Service Orientation Outcomes Business value: ü After deploying the POC project, DEFRA recognized the benefits of the change to a service oriented approach. For the first time, users and stakeholders could view all information regarding where animals were currently held, and its prior locations. ü Should an animal be carrying a disease, the system can calculate the location of the most probable infection risk area ü Provide visual map information of the geographical area affected and can calculate the severity of the event. ü Business intelligence tools to support the business scenario

IBM Corporation Business integration Dubai Municipality Business challenge: ü Dubai municipality was challenged with internal bureaucracies and single channel customer service facing processes Objectives: ü Be the best e-government program in Dubai ü Remove Internal bureaucracies and improve its customer facing processes and be more responsive ü Demonstrate savings internally and externally to customers ü Increase publicity of the Municipality Actions: ü Dubai Municipality employed a serviceoriented approach which provided a low-cost, responsive and convenient online service that reduced time in processing paperwork and provided multi-touch customer service 45 Driving Business Value with Service Orientation Outcomes Business value: ü Provided multi-channel access integrating people, processes and information ü Reduced cost in terms of paperwork ü Reduction in time (i. e. customer service, transaction processing) ü Reduction in the number of visits to government offices

IBM Corporation Enabling effective integration and data exchange Serbian Ministry of Finance Business challenge: ü Critical business functions were at risk in the customs administration of the Serbian Ministry of Finance due to inadequate IT infrastructure performance Objectives: ü Simplify business procedures while maintaining stability and reliability of the production system ü Integrate with other agencies systems within the ministry of finance (tax administration and treasury administration) Actions: ü The Customs Administration in Serbia upgraded its Information Systems of Customs Serbia infrastructure using advanced open technologies to build a service-oriented approach that supports software development and data exchange 46 Driving Business Value with Service Orientation Outcomes Business value: ü Customs Administration is now able to easily exchange data with the Tax Administration and the Treasury Administration to improve its services ü Since implementing the solution, the Customs Administration has improved the response times of its border-crossing applications by up to 50 percent ü The new IT infrastructure is more flexible and enables effective integration and data exchange with the IT systems of other organizations

IBM Corporation Flexibility, openness to the future Transit New Zealand Business challenge: ü TNZ wanted to provide better access to information to the public, contractors and government agencies but the lack of integrated information stood in the way. Objectives: Business value: ü Greater ability to control costs and manage the growth in information management responsibilities ü Simplify increasing complexity of managing siloed information while providing more accurate, reliable information to multiple constituents ü Reduced administrative workload ü Streamline and optimize business processes ü Better management of information delivery processes Actions: ü TNZ employed a service-oriented approach to connect the public, contractors and government agencies by creating an enterprise content management system with a single portal interface and enterprise-wide search engine 47 Outcomes Driving Business Value with Service Orientation ü Improved quality of information, leading to higher user confidence in timeliness and accuracy of information “Our service oriented architecture is based on a single development paradigm that leverages reusable parts of the existing solution. We can add new functionality very easily and present data in a number of ways, adding value to the services we provide to our constituents. ” - Geoff Yeats, Chief Information Officer

IBM Corporation Improving services while also winning new business Department of Human Services: Centrelink Business challenge: ü All Australian government departments and agencies are under increased pressure to improve efficiencies, deliver better services to constituents and provide alternate channels of service delivery. Objectives: ü Provide more choices in how customers can access services ü Automate routine work ü Enhance existing systems and develop new capabilities to support the delivery of services via the phone, Internet and emerging technologies Actions: ü Centrelink employed an underlying serviceoriented approach that integrated existing internal systems and can easily accommodate new business applications and simplify future process changes 48 Driving Business Value with Service Orientation Outcomes Business value: ü Integration: Integrate existing internal systems with external business associates through a single software stack ü Access: Provide more choices for Centrelink's customers, improving access to information ü Automation: Automate routine administration work so that staff can concentrate on providing customers with more complex tasks a higher level of service. ü Security: Ensure the highest levels of security access and authentication controls to safeguard customer records

IBM Corporation Reducing complexity while improving return on investment Shandong Province Local Taxation Bureau Business challenge: ü The bureau collects taxes 90. 79 million residents, as well as industrial and agricultural enterprises. With multiple offices and over 200 databases in the province, the agency required a unified and integrated view of provincial tax data and city and county tax data. Objectives: ü Process information centrally for general and provincial bureaus ü Handle all kinds of taxes, work links and national and local tax bureaus, and connect with related departments Actions: ü The Bureau employed a three-phased serviceoriented approach that integrated its 200 databases and made it available from a single interface to provide real-time access to its data by users, enterprises and other bureaus. 49 Driving Business Value with Service Orientation Outcomes Business value: ü Information can be extracted on an asneeded basis depending on the urgency of the business requirement ü The agency has been able to develop new real-time applications, including standardized tax receipt management, rewards and incentive management ü Administrators now have unified, up-to-date and accurate views of key metrics ü ROI is excellent by leveraging existing systems investments ü Data is now accessible and more accurate in real time ü Users have direct, simultaneous access to dynamic business databases through a single window

IBM Corporation Simplifying access to Taiwan’s government services Research, Development and Education Commission (RDEC) Business challenge: ü RDEC’s highest priority lies in an ongoing effort to modernize Taiwan’s government, but its infrastructure was incapable of supporting the rapid conversion of an increasing number of services Objectives: ü Make it easier for citizens to find access government information and services ü Transition government services to the web ü Improve efficiency and let staff focus on mission-critical tasks Actions: ü RDEC employed a service-oriented approach built on scalable infrastructure that simplifies and standardizes their web-enabled government services 50 Driving Business Value with Service Orientation Outcomes Business value: ü Cost-effective solution leads to greater increase in citizen satisfaction ü Government agencies and departments can quickly exchange data ü Citizens can easily access the RDEC database to find forms and information ü Improved employee productivity processing 30% more documents while reducing form-processing turnaround by 50% ü Maintenance costs cut by 30%

IBM Corporation Reducing customer service response time Housing Development Board (HDB) Singapore Business challenge: ü With nearly 90 percent of its applications hosted on aging mainframe servers, HDB lacked the scalability and flexibility to accommodate growth and changing requirements Business value: ü Reduced customer service response time from more than a week to a few seconds ü Improve customer service response time ü The business to customer (B 2 C) and business to employee (B 2 E) portal supports access for 3, 500 HDB registered users, of whom approximately 600 are concurrent users ü Automate manual and paper-based processes ü Users access 120, 000 page views per month Objectives: ü Solution must provide flexibility to meet changing business environment Actions: ü HDB employed a service-oriented approach featuring a web-based portal centralizing lessee and tenant paperwork that streamlines processes and workflows 51 Outcomes Driving Business Value with Service Orientation ü Solution eliminates paper-based processes, captures 20, 000 lessee and tenant documents per day and manages unstructured records, scanned images and reports

IBM Corporation Leveraging information for enhanced accuracy Instituto Nazionale Previdenza Sociale (INPS) Business challenge: ü INPS is Italy’s primary social security insurer verifying social security contributions and calculating pension and payment amounts. Different divisions in INPS needed to leverage this data in different formats for different functions; but due to siloed and customized applications used by each division, the data was not easily obtained and expensive to maintain. Objectives: ü Implement a reliable and standardized method to access and maintain information (data). Actions: ü INPS employed a service-oriented approach allowing different departments to leverage the same back-end data eliminating the need to maintain disparate systems leading to enhanced data accuracy with reduced human intervention. 52 Driving Business Value with Service Orientation Outcomes Business value: ü Streamlined the collection and distribution of pension funds ü Modernized and standardized how each internal division and external office access data ü INPS is working toward publishing its Web services into an internal registry so that departments and other companies that interface with INPS can leverage the already-developed technology ü The solution leveraged their existing hardware environment

IBM Corporation Public safety (aka Rapid Response) Breaking new ground IBM SOA for LOB References 53 Driving Business Value with Service Orientation

IBM Corporation First response integrated network Washington, DC Capital Wireless Integrated Network Business challenge: Outcomes ü No ability to coordinate emergency response activity between Maryland, Virginia and the District of Columbia ü Incompatible systems preventing responders from sharing information Objectives: ü A robust and searchable directory for public safety and transportation agencies ü Cross-jurisdiction collaboration and communication across 41 federal, regional and local government agencies. ü Access to operational data and resources, including multiple state and federal law enforcement criminal databases ü Secure, powerful system for police, firefighters, and other responders to communicate rapidly during crises Actions: ü CAPWIN employed a service-oriented approach that provides incident management and coordination across agencies, regions, and public safety and transportation disciplines 54 Driving Business Value with Service Orientation ü Significantly greater ability to respond to emergency and disaster situations

IBM Corporation Emergency response coordination City of San Francisco Business challenge: ü Improve ability to plan and coordinate for real property analysis and emergency services ü Replace paper-heavy process and automatically center information from 911 calls and emergency services Objectives: ü Better public safety coordination for emergency services Actions: ü The City of San Francisco employed a serviceoriented approach to leverage legacy data-without replacing or revamping existing systems and to provide visual access to data for pattern spotting and better decisions using up-to-date citywide geographic information 55 Driving Business Value with Service Orientation Outcomes Federated spatial analysis ü Federated enterprise system providing spatial visualization to 61 municipal departments ü Enables more rigorous analysis of emergency events through dynamic mapping ü Enhanced coordination of public safety services for disaster planning and homeland security

IBM Corporation Critical incident volunteers organize to go wireless St. Louis Area Regional Response System Business challenge: ü STARRS needed help developing a rapid response solution to coordinate and plan largescale critical incidences in the bi-state metropolitan region Objectives: ü Solution must be On Demand ü Link with medical community, EMS, fire, police, public health and government agencies ü Must be multi-disciplinary and multijurisdictional Actions: ü STARRS employed a service-oriented approach that developed a platform to coordinate and collaborate with the region’s EMS, fire, police, public health and government organizations in the event of a large-scale incident. 56 Driving Business Value with Service Orientation Outcomes Business value: ü Volunteer organizations involved in a large -scale incident can coordinate and plan jointly ü Wireless enablement allows for mobile access to applications and directories On Demand ü Solution involved teaming with region’s first responders and business partners to enhance capabilities

IBM Corporation Network centric operations (NCO) and beyond Finnish Defense Forces Business challenge: ü Getting a clear and in real-time operational and tactical information picture for better and quicker decision making. Objectives: ü Transform to a network centric enterprise ü Interoperability between branches of their defense forces Actions: ü The Finnish Defense Forces employed a service-oriented approach to create a common operational picture, leverage legacy systems and integrate COTS products for interoperability between branches of their defense forces 57 Driving Business Value with Service Orientation Outcomes Business value: ü Proof of concept demonstrated required scalability of SOA ü Fully mobile, on or off-line mode at the Battalion and Brigade levels ü Delivered synchronization and security – core capability requirements for this advanced Command Control system ü Will include the civilian side of NCO using incident/crisis management capabilities IBM and the Finnish Defence Forces will set up an international Center of Excellence in Helsinki to concentrate on Network Centric Operations* solutions built on Service Oriented Architecture using open standards and generic Commercial Off the Shelf Software components

IBM Corporation Modernizing for speed and improved accessibility Israel Securities Authority (ISA) Business challenge: ü The ISA required an easy-to-use, full-featured solution that would provide employees with the right tools to efficiently process electronically signed stock exchange reports. Business value: ü Implementation of an electronic submission system ü Solution that would allow ISA to process and store electronically signed reports ü Create a reliable, high-performance groupware and messaging environment providing user awareness for colleague collaboration ü Accessibility by 200 internal users and public traders ü Stock report processing took several weeks, now it is down to days Objectives: Actions: ü ISA employed a service-oriented approach to gain a full-featured, flexible and reliable system for processing electronically signed stock exchange reports 58 Outcomes Driving Business Value with Service Orientation ü Compliance with a 2001 Israeli law permitting the use of electronically signed stock exchange reports

IBM Corporation Uniting the people of business, industry and education Cámara de Comercio de Bogotá (CCB) Business challenge: ü CCB’s existing business and development processes lacked flexibility delaying the institutions ability to develop and deliver new products Outcomes Business value: ü Dramatically improve business processes Objectives: ü Streamline end-to-end business development processes to respond to changing needs of the business Actions: ü The institution decided to implement a serviceoriented approach to integrate its business through repeatable business tasks and services in order to offer an advanced portfolio of services to its customers, respond more quickly to market demands and make more effective use of the Internet in offering its applications to its members as well as the general public 59 Driving Business Value with Service Orientation ü Enhance and expand new business and development processes ü New tools will reduce time and costs to bring services to market ü Products and services are now available via the Internet ü Manageability of web content is easy and positioned well for future expansion

IBM Corporation Job information self-help Australia Department of Employment and Workplace Relations Business challenge: Outcomes ü Beginning in 1995 the Department had deployed kiosks nationwide that provided self service job information – linking job seekers with employment opportunities in real time. Objectives: ü Since kiosks were hardwired into the network – relocation to address changing demands was a difficult task ü In 2003, a “wireless” kiosks system deployed to provide greater flexibility in managing the job information program Actions: ü Australia’s Department of Employment and Workplace Relations employed a serviceoriented approach that provided wireless kiosks linking job seekers to employment opportunities in real time. 60 Driving Business Value with Service Orientation Business value: ü Wireless kiosks provides better response to the changing needs of their constituents by relocating kiosks to areas in greatest need ü Allows the Department employees to focus on their core mission ü Reduced the administrative issues associated with the hardwired system.

IBM Corporation Healthcare & Life Sciences Breaking new ground IBM SOA for LOB References 61 Driving Business Value with Service Orientation

IBM Corporation Claims transformation Breaking new ground IBM SOA for LOB References 62 Driving Business Value with Service Orientation

IBM Corporation HCSC: Modernize claims processing Achieving record high auto-adjudication rates Business challenge: ü Optimize auto-adjudication to achieve improvements that increase revenues, reduce costs and increase membership. Outcomes Objectives: Business value: ü Re-evaluate its auto-adjudication processes to find ways to make them more efficient. ü Increases auto-adjudication of claims by ü Predict the outcome of redesigned processes. ü Accelerated time to market for new ü Implement a flexible solution oriented architecture (SOA) that would enable it to simulate process changes and assess their effectiveness. Actions: ü IBM’s service oriented solution helped HCSC pinpoint inefficiencies so it could refine processes to optimize throughput and thus decrease costs and increase revenues. 63 Driving Business Value with Service Orientation 25 percent. products ü Increased large groups enrolled per fulltime equivalent employee by 22 percent ü Reduced application maintenance costs ü Reduced administrative costs ü Improved member satisfaction

IBM Corporation Sistema de Protección Médica: Modernize core system Innovation for claims processing Business challenge: ü Legacy systems impeded the integration of new business applications, making it difficult for SPM to sustain customer satisfaction and competitiveness. Objectives: ü Increase customer satisfaction by accelerating the rollout of new and improved services. ü Improve employee productivity and enable greater responsiveness by speeding internal processing. ü Extended existing investments by integrating old and new assets. Actions: ü Build an integrated, open-standards-based service-oriented architecture (SOA) solution that enables SPM to reengineer its applications. 64 Driving Business Value with Service Orientation Outcomes Business value: ü Increased productivity of administrative staff. ü Significantly improved attractiveness to customers. ü Increased ability to attract and retain members and employers. ü Ability to release and support new products in much less time. ü Added value is helping achieve record cost improvement benchmarks.

IBM Corporation Independence Blue Cross: Modernizing member services Convenient access to information Business challenge: Outcomes ü Respond to customer demands for real-time access to claims and benefits information. Business value: Objectives: ü Accelerated time to market for new ü Provide self service capability to members to review their benefits, account information and competed claims in one secure, convenient location. ü Provide ability to re-use common infrastructure components. Actions: ü IBM’s service oriented solutions provide members secure and convenient self service access to benefits, account and claims information. 65 Driving Business Value with Service Orientation products. ü Speeded and simplified access to information assets. ü Reduced application maintenance costs. ü Reduced administrative costs. ü Improved member satisfaction. “We realized we needed a single integration platform that would allow all our applications to access and share information. ” – Mildre Wampler, Chief Architect, IBC Enterprise Systems

IBM Corporation Aetna: Improved business flexibility Core systems modernization Business challenge: ü Become more competitive by respond to market changes and simplify doing business among constituents Objectives: Business value: ü Flexible, responsive infrastructure to increase business effectiveness and improve customer satisfaction ü Improve business responsiveness with end-to -end integration across and beyond the enterprise ü Faster response to market changes and ü Build, deploy and run applications in a proven, secure and flexible environment ü Major savings in payback of health ü Leverage legacy applications and information in new business processes ü Ability to release and support new Actions: ü Expose and deploy business services for reuse by customers with a service-oriented architecture. 66 Outcomes Driving Business Value with Service Orientation customers. management costs. products in much less time

IBM Corporation The Regence Group: Innovation for claims processing Business challenge: ü Become more competitive by responding to increased consumer demands and lowering administrative costs. Objectives: ü Flexible real-time claims system. ü Shorter time to market for new products. ü Reduced cost and time per claim. ü Streamlined integration with providers and financial partners. ü Integrate data from multiple disparate legacy systems. Actions: ü IBM’s service oriented claims modernization solution improves processes, claims cycle time, ease to do business with and competitive edge. 67 Driving Business Value with Service Orientation Outcomes Business value: ü Significantly improved attractiveness to customers. ü Increased ability to attract and retain members and employers. ü Ability to release and support new products in much less time. ü Added value is helping achieve record cost improvement benchmarks.

IBM Corporation Healthcare enterprise portal Breaking new ground IBM SOA for LOB References 68 Driving Business Value with Service Orientation

IBM Corporation Ball Memorial Hospital: Improving clinical care Driving clinical collaboration and agility Business challenge: ü Improve clinician access to critical decision making information while reducing access time. Objectives: ü Easy, secure, single sign-on access for clinicians any place, any time. ü Consolidated information resources in a unified and personalized work environment. ü Messaging and team workplaces allowing clinicians to quickly collaborate for better decision making. Actions: ü IBM’s healthcare enterprise portal solution was used to provide clinicians a service oriented customized view of critical patient information and collaboration capabilities. 69 Driving Business Value with Service Orientation Outcomes Business value: ü Enabled delivery of services to clinicians faster, while reducing operating costs and providing improved flexibility. ü 100% payback of investment costs in 5. 8 months totaling $720, 000 in annual savings. ü Streamlined information access for clinicians improves medical decisions. “We’re seeing that the IBM portal platform is flexible and practical, with tremendous potential for helping improve our staff’s productivity by providing them with responsive, personalized online work environments. ” –Christina Fogle, Manager of e. System Support, Cardinal Health Systems, Inc.

IBM Corporation UNC Healthcare: Improved care delivery Transforming medical decision making Business challenge: ü Improving quality of care, clinician satisfaction and medical decision making capabilities across entire seven-hospital healthcare system. Objectives: ü Enable rapid connection and integration of disparate systems. ü Deploy medical rules engine for selected user actions including triggers for potentially hazardous medication orders. ü Provide electronic medical record for complete and accurate patient information, anyplace at anytime. Actions: ü IBM’s service oriented solution integrated care delivery systems and processes in order to improve clinician productivity and reduce medical errors. 70 Driving Business Value with Service Orientation Outcomes Business value: ü Replaced the paper chart for almost one ü ü million patients. Secure, single sign-on to access multiple applications. Synchronizes all patient information from both the hospitals and ambulatory care areas. Dramatic improvement in patient safety and clinical efficiency. Real time electronic transmission of prescriptions to participating pharmacies.

IBM Corporation AO Foundation Global clinical education and collaboration Business challenge: ü Information overload was making it increasingly difficult for surgeons to quickly identify and access relevant knowledge. Objectives: ü Deliver relevant articles, videos, lectures, images and instructions to surgeons at their workplaces ü Enable researchers to collaborate with each other any place, any time. ü Connect global staff with the latest AO-approved instruction materials to promote standardized, controlled certification. Outcomes Business value: ü Global Online Collaboration and access to best practices formation. ü Effective, real-time method providing relevant materials and training to surgeons located anywhere, anytime. ü Innovative way for field researchers to collaborate. ü Deliver cost savings through automation of manual processes Actions: ü AO Foundation employed a service oriented approach for clinical best practices 71 Driving Business Value with Service Orientation “We’ve made a significant step in the direction of improving medical treatment. ” – Michael Redies, head of knowledge services, AO Foundation

IBM Corporation WBI for Healthcare Collaborative Network Breaking new ground IBM SOA for LOB References 72 Driving Business Value with Service Orientation

IBM Corporation Canadian CRTI Bio-surveillance Real-time response readiness network Business challenge: ü The Canadian CBRN Research Technology Initiative (CRTI) needed a real-time biosurveillance and response readiness network for the City of Winnipeg, Manitoba. Objectives: ü Provide a demonstration of real-time biosurveillance and response readiness using an interconnected electronic infrastructure. ü Quickly respond to biological events. Actions: ü IBM’s service oriented Healthcare Collaborative Network (HCN) solution was used to collect pertinent clinical data from hospitals, clinics, pharmacies, and labs, and route them to Canadian public health agencies for analysis and action. 73 Driving Business Value with Service Orientation Outcomes Business value: ü Facilitates rapid response to bio-terrorist events. ü Provides real-time data collection and integration required to assess extent and progression of the biological event. ü Provides a foundation for a potential country-wide bio-surveillance network. ü Helps to improve hospital quality of care.

IBM Corporation No alignment with priority projects Breaking new ground IBM SOA for LOB References 74 Driving Business Value with Service Orientation

IBM Corporation Large pharma company: Driving innovation cycle time Improving clinician productivity Business challenge: ü Needed a way to improve clinician access to critical decision making information while reducing access time. Objectives: ü Ability to transform and integrate messages between its internal manufacturing and enterprise resource planning (ERP) systems. ü A way of rationalizing duplicate and common functions across systems. ü Ability to deliver reusable new services using existing assets. ü Reduce maintenance costs across its information technology projects. Actions: ü IBM’s service oriented solution provides clinicians faster access to information and reduces operating costs. 75 Driving Business Value with Service Orientation Outcomes Business value: ü Streamlined information access for clinicians improves ability to improve quality of care. ü Clinicians easily access critical information; productivity and decision making improves. ü Use of common services across the corporation. ü Integration of disparate applications.

IBM Corporation Aventis Developing new and innovative products Business challenge: ü Complexity and cost of securing new drug approval, involving simulations and coordinated execution of dozens of data collection studies by teams around the globe over many months. Objectives: ü Improve time to market, drug approval cycle, increase revenues and decrease costs. ü Allow users to upload research data files into a central repository through a simple, browserbased graphic application. ü Secure role-based real-time data validation and access to ensure that all data complies. ü Ad hoc reporting of all test data for new products. Actions: ü Employed a service oriented approach for developing and bringing to market new drugs quickly. 76 Driving Business Value with Service Orientation Outcomes Business value: ü New drugs to market two months faster. ü Additional US$3. 6 million in incremental revenue per year. ü Massively expanded the group's capacity to test and approve many more drugs. ü Reduced drug approval time.

IBM Corporation Hoag Memorial Hospital – Sarbanes-Oxley compliance Solution for Compliance in a Regulated Environment Business challenge: ü Hoag did not have any tools in place for Sarbanes -Oxley Act (SOX) compliance, nor did it have the ability to audit its compliance with the act. Objectives: ü Needed one easy-to-use solution to manage, assess and improve business processes, controls and reporting. ü Establish and maintain adequate internal control structures ü Assess the effectiveness of those internal controls for financial reporting. Actions: ü Deploy a turnkey compliance portal with flexible, automated and powerful reporting capabilities to provide a service oriented foundation for the company's current and future business control needs. 77 Driving Business Value with Service Orientation Outcomes Business value: ü SOX compliance. ü Centralized information can be accessed by Hoag's internal staff, auditors, external legal counsel and others as required. ü Positioned to re-use SCORE services for: - State and federal licensing - JCAHO accreditation - Treatment protocols - Clinical trial management

IBM Corporation Schering: Collaborating with research partners Driving innovation cycle time Business challenge: ü Costly and time-consuming process to pursue new and promising research programs. ü Integrating acquired systems and research partners with Schering’s systems to facilitate data sharing and collaboration. Objectives: ü Reusable integration components to provide ability to adapt quickly to evolving research efforts. ü Open standards infrastructure ready for business applications and partners to “plug in” —regardless of their platform. Actions: ü Schering employed a service oriented approach that integrated applications to enable dramatically faster implementation of new services 78 Driving Business Value with Service Orientation Outcomes Business value: ü Shorter drug development processes, faster time-to-market. ü Agility to pursue research that promises competitive advantage. ü Simplified integration yields IT cost savings used to reinvest in R&D. ü Innovative way for researchers to collaborate instantaneously. “Introducing IBM portal technology substantially eased global distribution of information and use of Web-based applications. ” – Dr. Walter Beck, Global Head of Medical Data Sciences

IBM Corporation Insurance Breaking new ground IBM SOA for LOB References 79 Driving Business Value with Service Orientation

IBM Corporation Channel management Breaking new ground IBM SOA for LOB References 80 Driving Business Value with Service Orientation

IBM Corporation Improved distribution channels Standard Life Insurance Business challenge: Outcomes ü To maintain its competitive edge, Standard Life wanted to simply the process of doing business with multiple channels Simpler business channels with increased customer satisfaction Objectives: ü To make internal systems directly available to their distribution channels Actions: ü Expose and deploy business services for reuse by business partners with a service oriented architecture approach 81 Driving Business Value with Service Orientation ü Reuse of 51% of services, resulting in savings of over £ 3 million in development costs ü Increased transaction rate by 900% without increasing operations staff; improved responsiveness to market change and customer needs ü Improved quality and manageability of business applications

IBM Corporation Claims management Breaking new ground IBM SOA for LOB References 82 Driving Business Value with Service Orientation

IBM Corporation Delta Lloyd: Tackling claims handling process Lowering claims payout Business challenge: ü To maintain its competitive edge, Delta Lloyd wanted to reduce the time and cost of processing claims pay outs Objectives: ü A faster process with better access to information vital to decision making Actions: ü Implement a new claims system based on IBM’s business integration software and FINEOS’ claims administration system 83 Driving Business Value with Service Orientation Outcomes Business value: ü One percent annual reduction in total damages paid out ü 2 to 2. 5 million euros a year improved risk assumption and pricing ü Less staff turnover, leading to increased productivity and reduced hiring and training costs ü Reduction in maintenance costs

IBM Corporation Retail Breaking new ground IBM SOA for LOB References 84 Driving Business Value with Service Orientation

IBM Corporation Master data management Breaking new ground IBM SOA for LOB References 85 Driving Business Value with Service Orientation

IBM Corporation Helzberg Diamonds: Master customer data Proactive, personalized marketing programs Business challenge: Outcomes ü Real-time access to centralized master customer data Business value: Objectives: ü Improvement in sales and customer ü Institutionalize and automate the high-touch marketing habits of top salespeople ü Create a complete and accurate view of customer interactions ü Optimize the effectiveness of its marketing programs by targeting as precisely as possible Actions: ü HBC employed a service oriented approach to develop a new process and system that utilizes near-real-time data to reduce fraudulent returns and clerical errors 86 Driving Business Value with Service Orientation satisfaction levels due to improved customer interactions ü Increase proactive selling by allowing sales associates to look up information on family names, birthdays, anniversaries, and purchase history and tendencies customer in real time ü Store associates can look up a customer's past purchase history in real time while that customer is actually in the store browsing merchandise

IBM Corporation West Marine: Product information management Getting products introduced faster Business challenge: Outcomes ü Increase reuse and bring product to market faster by leveraging information provided by vendors Business value: Objectives: ü Reduce costs by eliminating duplicate data entry ü Reduce implementation time with pre-defined workflows ü Improve product data quality Actions: ü West Marine employed a service oriented approach to allow merchandising managers to share information with vendors and reduce the time it takes to introduce new products 87 Driving Business Value with Service Orientation ü Reduced time to introduce new products by 80% ü Improved overall product data quality and established a single enterprise wide repository for product information ü Leveraged product information templates to reduce implementation time

IBM Corporation Next generation e-commerce Breaking new ground IBM SOA for LOB References 88 Driving Business Value with Service Orientation

IBM Corporation REI: Multichannel gift registry Flexible, cost-effective and customer focused Business challenge: Outcomes ü Maximize revenue across store and Internet channels and provide customers with a more rewarding shopping experience Business value: Objectives: ü Accessible across multiple channels and touch points ü Consistent catalog and transaction data ü Timely information in each channel Actions: ü REI employed a service oriented approach that integrated catalog and transaction systems into a single “system of record” across channels 89 Driving Business Value with Service Orientation ü A single gift registry solution across multiple channels and touch points ü The same catalog and transaction platform as the single “system of record” across channels ü Customers receive the most up-to-date information no matter which channel they were shopping ü 6, 000 gift lists and thousands of new customers in the first 8 weeks

IBM Corporation IKEA: Next generation e-commerce Multichannel integration Business challenge: Outcomes ü Web site was not capable of supporting a move from catalog-based to Web-based retailing Business value: Objectives: ü Increase availability and performance of website ü Drive customers to its website rather than shipping catalog to reduce expense ü Integrate seamlessly with other business for easier management and upgrades Actions: ü IKEA employed a service oriented approach to open up a new sales channel, and is already seeing increased revenue, customer satisfaction and web conversion rates 90 Driving Business Value with Service Orientation ü Increased availability and scalability of the website to handle increased traffic ü New sales channel driving increased revenue, higher customer satisfaction and increased customer conversion rates

IBM Corporation S. Oliver: New on-line sales channels Maintaining competitive advantage Business challenge: Outcomes ü Company risked losing business to other online textile shops if it did not revamp its Web site Business value: Objectives: maintained competitive edge ü Maintain competitive advantage ü Realized additional revenue through ü Increase revenue by opening up new sales channels ü Capitalized on other marketing ü Add new customer centric functionality to their website Actions: ü S. Oliver employed a service oriented approach to allow customers to use online coupons, create wish lists and receive recommendations based upon past purchases 91 ü Opened an additional sales channel and Driving Business Value with Service Orientation other channels opportunities like online coupons & promotions

IBM Corporation Open POS Breaking new ground IBM SOA for LOB References 92 Driving Business Value with Service Orientation

IBM Corporation Home improvement: Master data management Centralize product information Business challenge: ü Centralize product information into a single repository and collaborate across merchandising, store and suppliers Objectives: ü Create workflow for new product introductions ü Speed time to market for price changes and new products ü Create cross-sell, up-sell and service/SKU relationships Actions: ü Employed a service oriented approach to share information and integrate activities inside and outside the organization 93 Driving Business Value with Service Orientation Outcomes Business value: ü A single product information solution for 3 million products ü Accessible by 3, 000 users and 10, 000 suppliers as the single “system of record” ü Integrates cross-sell, up-sell and services across channels to help drive multi-channel commerce

IBM Corporation Pep Boys: Comprehensive store solution Service, inventory and point of sale Business challenge: ü Implement a comprehensive store system that combines auto service management, inventory management and traditional point of sale (POS) Objectives: ü Faster checkout and increased responsiveness to customer needs ü Enhanced employee productivity and efficiency ü Flexibility to incorporate new technology Actions: ü Pep Boys employed a service oriented approach that integrated different store systems to create a faster, more efficient customer-centric store operation 94 Driving Business Value with Service Orientation Outcomes Business value: ü Employees can serve customers from a single workstation whether the customer is in the store or the service bay ü Employees can scan receipts for greater speed and efficiency in the returns process ü Flexibility to quickly enhance and make changes without disrupting critical systems

IBM Corporation Hudson’s Bay Company: Point of sale solution Protection from fraud Business challenge: Outcomes ü Protect its stores from professional thieves who return goods multiple times Business value: Objectives: ü Virtually eliminated incorrect and ü Streamline its returns process by moving from nightly batch process to a near-real-time solution ü $1. 6 M in documented savings from the ü Integrate store data with the central enterprise ü Create a better balance between loss prevention and customer satisfaction Actions: ü HBC employed a service oriented approach to develop a new process and system that utilizes near-real-time data to reduce fraudulent returns and clerical errors 95 Driving Business Value with Service Orientation fraudulent returns while actually improving customer service new system within seven months of rollout ü Clerks at any store can validate a return item with the original transaction in real time, even if the purchase was made at a different store just 10 minutes earlier

IBM Corporation Telecommunications Breaking new ground IBM SOA for LOB References 96 Driving Business Value with Service Orientation

IBM Corporation BSS/OSS integration Breaking new ground IBM SOA for LOB References 97 Driving Business Value with Service Orientation

IBM Corporation Verizon Business: Provisioning and activation Integrated order provisioning Business challenge: ü Speed the provisioning of products to its customers and improve employee productivity Objectives: ü Speed implementation of new services ü Deliver cost savings through automation of manual processes ü Integrate data from multiple disparate legacy systems Actions ü Verizon Business employed a service oriented approach that integrated six different provisioning applications to enable dramatically faster implementation of new services 98 Driving Business Value with Service Orientation Outcomes Business value: ü Provisioning time reduced from 45 minutes to 3 minutes ü Developer productivity increased 50%+ ü Labor costs were reduced by millions of dollars by integrating the provisioning of applications and automating the business process ü Unexpected side benefit: identification of stranded assets “We estimate our savings to be within the hundreds of thousands of dollars, just by reducing that amount of labor. " - Elizabeth Hackenson, CIO and EVP of Information Technology

IBM Corporation Radiomóvil Dipsa Streamlining backend systems Business challenge: ü With customer information located on at least four different systems, the company found it difficult to deliver a suitable level of customer service. Training for service agents was also costly and time-consuming Objectives: ü Improve customer service ü Reduce costs ü Increase employee productivity Actions: ü By streamlining its backend systems with a service oriented approach, Radiomovil Dipsa was able to improve customer service, reduce costs and increase productivity 99 Driving Business Value with Service Orientation Outcomes üImplemented a single interface for all of its backend systems to substantially improve customer service levels üReduced response time to customers as a result of data being more reliable and consistent üReduced operating costs due to simpler system maintenance and faster service agent training üImproved productivity by automating previously manual processes IBM Internal Use Only

IBM Corporation Sprint Integrating customer information Business challenge: ü Lacked a comprehensive view of its customers and the services to which they subscribed ü Lack of integrated information made it difficult for CSRs to handle customer issues ü Difficult to cross-sell new products and services to increase revenue Objectives: ü Improve customer service ü Reduce costs ü Increase sales Actions: ü Used a service oriented approach to leverage existing databases, applications, CRM systems and others to provide Sprint with a 360 degree view of its customer base to enhance revenue opportunities 100 Driving Business Value with Service Orientation Outcomes üProvides CSRs with real-time view of all of a customer’s products and services üSystem notifies CSRs of cross-selling opportunities and upgrade options for every customer üSprint cites a US$8. 4 million increase in revenue as a result of deploying solution “Customers could care less how many functional silos you have created inside your organization. They see your company as a single brand, and they expect that you will be able to talk intelligently about any of the products or services they buy from you. If you are in a position to meet that expectation, then you have a major competitive edge over other providers who cannot. " –Randy Niemann, director of customer insights, Sprint IBM Internal Use Only

IBM Corporation mobilkom austria Rapidly deploy and meet customer demand for new services Business challenge: ü Improve ability to rapidly deploy and meet customer demand for new services ü Ability to connect customers with those services as quickly and efficiently as possible Objectives: ü Reduce time-to-market and internal operating costs to support new services ü Provide linkages between sales, marketing, IT, service creation, provisioning, testing and deployment and customer service Actions: ü mobikom austria used a service orientated approach that allows them to quickly implement and provision the new services demanded by their customers 101 Driving Business Value with Service Orientation Outcomes üTime-to-market for new services has been reduced by 30 -50% üA powerful revenue generating service was deployed in 3 months instead of the previous average of 6 -12 months "IBM has helped us build an integration platform that lets us develop and deploy new services faster, so we can be more responsive to market demand move to take advantage of new business opportunities … Web. Sphere was the most comprehensive technology platform available for what we were trying to achieve: a single solution for deploying and managing services, users and access. " – Head of the Service Platforms Department, mobilkom austria

IBM Corporation Telekom. Austria: Order-to-cash Streamlining business process to increase efficiency Business challenge: ü Provisioning new long distance service for commercial customers was complex and time-consuming Objectives: ü Automate & expedite the process of customer service requests and billing inquiries Outcomes ü Synchronizes and processes 4, 000 -5, 000 customer requests and 3, 000 billing data inquiries daily ü Provides its customers with faster and more comprehensive information from sales and customer support professionals ü Simplify integration of increasingly complicated homegrown and off the shelf BSS/OSS systems ü Reduction of development effort for Actions: ü Transparent view of business processes ü By employing a service oriented approach, Telecom. Austria is now coordinating customer and billing interfaces and streamlining business processes to increase efficiency 102 Driving Business Value with Service Orientation modification and enhancements ü Centralized control of processes ü Less effort in operation by using a consistent solution

IBM Corporation Telefónica São Paulo Integrating business processes and provisioning systems Business challenge: ü The company could not meet its aggressive new business goals as long as it continued to manually handle service provisioning and activation Objectives: ü To automate and integrate its business processes and provisioning and activation systems ü Shorten customer delivery times Actions: ü The new service orientated approach deployed be Telefonica offers a level of flexibility that will the organization to scale systems and adopt services as customer requirements change 103 Driving Business Value with Service Orientation Outcomes Business value: ü Drastically shortened the time required to deliver new services to customers ü Now positioned to maintain a competitive edge in this volatile industry and rapidly respond to customer needs, competition and market shifts

IBM Corporation Bharti Streamlining processes and preparing for growth Business challenge: ü Recent growth has resulted in a sharp division between the mobile and fixedline organizations. As a result, Bharti has found it difficult to provide customer focused services that would set it apart from the competition Objectives: ü To be able to adjust more flexibly – without high costs and time investments ü To become an integrated communications provider that could direct its business activity proactively Actions: ü By taking a service oriented approach, Bharti has been able to improve business process efficiency across the organization 104 Driving Business Value with Service Orientation Outcomes üReduced costs by eliminating many of the duplicate systems and support structures üNow able to activate new mobile accounts for customers in 2 minutes instead of 20 minutes üAccount information has been consolidated and extended to customers via a Web site, which increases customer satisfaction üRoutine inquiries have been diverted away from the call center üCSRs now have the ability to respond to requests from both mobile and fixed-line customers and cross-sell services to them IBM Internal Use Only

IBM Corporation Next generation services platform Breaking new ground IBM SOA for LOB References 105 Driving Business Value with Service Orientation

IBM Corporation Swisscomm mobile Service innovation and cost reduction Innovative proof-of-concept Business challenge: ü Company needed to bring new, converged services to market quicker and with reduced effort and costs Objectives: ü Provide rich voice and data services to customers quickly and at a reduced cost ü Rapid assembly of innovative combinational services Outcomes üPreviously siloed network infrastructure transformed into componentized, reusable services that can easily interoperate using industry standards üLed to shorter product development times, reduced cost and a more integrated services portfolio “This approach to service creation combined Actions: ü Used a service oriented approach for the rapid assembly of innovative combinational services. with the power of IMS gives us a much closer interlock between our Business Analysts and Technical Architects allowing us to translate marketing product wish lists to reality much more efficiently. ” – Xavier Weibel, Swisscom Mobile’s Project Leader 106 Driving Business Value with Service Orientation IBM Internal Use Only