8 steps to creating B2B products your customers will love

Posted by Mark Brousseau

There’s a famous quote from Henry Ford that Steve Jobs has been known to cite: “If I’d have asked my customers what they wanted,” Ford reportedly said, “they would have told me ‘a faster horse.’” Yes, it reflects a bold product development philosophy. And this closed-door, tell-customers-what-they-want-even-if-they-don’t-yet-know-it approach works well for our modern day King of Innovation (and his development team at Apple, of course). But if you’re tempted to adopt the Jobsian method yourself, Dan Adams urges you to think twice.

“Don’t start wearing black turtlenecks and imagining your blockbuster new product just yet,” advises Adams, author of New Product Blueprinting: The Handbook for B2B Organic Growth and founder of Advanced Industrial Marketing.

“The reality is that the average new product success rate—once the costly development stage begins—is only 25 percent,” he adds. “Generally speaking, for those of us who aren’t Steve Jobs, the practice of developing new products first and then waiting to see if customers buy them is a terribly inefficient use of resources.”

For B2B suppliers, in particular, Adams extols the virtues of first understanding market needs and then developing supplier solutions to meet them. In fact, his New Product Blueprinting—packed full of very practical methods, skills, and tools that have been finely tuned on six continents and in hundreds of industries—centers on this “ask before you innovate” philosophy.

“The good news is that you can conceptualize products you know your customers need before spending a bundle on development and launch,” explains Adams. “And even more good news, this approach does not prevent you from developing exciting, breakthrough products. What’s more, it’s unlikely your competitors are using this approach today, so your competitive advantage can be enormous.”

Here are the key steps to becoming a new product mastermind in your own right:

Remember, Steve Jobs deals in consumer goods—a whole different ballgame from B2B products. In describing his iTunes development team, Jobs said, “The reason that we worked so hard is because we all wanted one. You know? I mean, the first few hundred customers were us.”

In contrast, points out Adams, when DuPont developed Kevlar, they first experimented in applications such as tire cords. They went 10 years before implementing the first field trial in protective body armor, which ultimately became their main market. If you’re selling to other businesses, it’s unlikely you know enough about your customers’ worlds to hit the nail on the head with every product you develop for them.

“Unlike Steve Jobs, who can create successful products based on what he knows he wants and what his Apple employees want, you have to ask your customers what they want,” says Adams. “Otherwise, you risk spending tons of time and money on a product that you think is great, but that ultimately elicits a sleepy yawn from your customers.”

Compare your IQ (Innovation Quotient) to Steve’s and act accordingly. There’s no doubt that you and your team are smart. And in fact, you and your development team may just be as smart as Jobs and his team. But it’s unlikely you’ve worked as hard for as long at mastering the skills needed to develop blockbuster products.

“Just because Reinhold Messner—one of the world’s greatest mountain climbers—makes a solo climb of Mt. Everest without supplemental oxygen, doesn’t mean you can,” notes Adams. “But with training, oxygen, the right team, and an easier route, you might still enjoy the same view. My point is, if you want to win in the marketplace, tip the scales in your favor. Why not avoid unnecessary risks when you can?”

Because these risks can be costly. During a time period that Jobs was absent from Apple, the company had its share of new product flops. You might recall the Newton MessagePad. Or how about the Apple Bandai Pippin, the gaming console technology created by Apple, or Cyberdog, the Internet browser Apple created back in the late ’90s?

“Sure, it would be great if your next three products were MacBook, iPod, and iPad,” says Adams. “But if they are Newton, Pippin, and Cyberdog, will you still even be working at the same company?”

Learn how to attack the right market. When Apple develops a new product for the global consumer electronics market, it can be assured it is pursuing a market that is large, growing, and open to change. Unfortunately, it’s possible—and all too common—for B2B suppliers to pursue far lesser markets.

“If you make adhesives, they could be used in window construction, aircraft interiors, solar panels, and so on,” notes Adams. “Smart B2B suppliers focus their scarce resources on just those market segments with the best prospects for growth, adequate size, reasonable competitive landscape, and so on. You can learn much of this information by doing solid secondary market research. But you often need to spend time interviewing customers in potential market segments as well. Sometimes you’ll find an ‘over-served’ market that is looking only for lower pricing. That’s a good time to ‘bail’ and pursue a different market.”

Uncover customer outcomes. Steve Jobs makes a good point when he says you can’t just ask customers for “the next big thing.” But the next big thing is the “solution,” which is supposed to be the supplier’s area of expertise. The customer’s area of expertise is the “outcome”—what they want to have happen or what they want a new product to do for them. They don’t know how to make it happen. They just know they need it to happen. When you find out what kind of outcome your customers want, you can provide their solution.

“Knowing that these are the outcomes his customers wanted, what kind of products should he develop?” says Adams. “Perhaps something that looks like iTunes and the iPod. I use this made-up scenario to illustrate how the outcomes you hear from your customers might translate into new products. Once you know what outcomes your customers want, you can begin to develop a product that delivers them.

“Research shows there are 50 to 150 customer outcomes for every job your product is hired to do,” he adds. “And the reality is that talking to customers and uncovering these outcomes actually helps your team be more creative. For example, it’s likely your customers will reveal an outcome they need that you and your team might never have thought of without their input.”

Don’t “just ask” customers. When you ask customers for their outcomes, get creative. You need to really get your customers thinking and talking. In-depth. One- or two-sentence answers will rarely give you the information you need—and that’s what you’re likely to get unless you know how to probe.

“You can encourage customers to dig deeper using interview methods similar to those we developed at Advanced Industrial Marketing,” says Adams. “For example, we have special ‘trigger methods’ to get them out of mental ruts. We have fresh ways for probing their responses. And we have unique observation and customer tour tools to let you see exciting new opportunities.

“When someone says, ‘Don’t just ask customers what they want,’ it doesn’t mean you should isolate yourself deep within the bowels of your company to guess what they want,” he adds. “It means you should get innovative about ways to enter your customers’ worlds and understand the needs they cannot easily articulate on their own.”

Prioritize customer outcomes. What will customers richly pay you for? Only for delivering outcomes that are important and currently unsatisfied. That’s why Adams advises clients to get quantitative—to ask customers to rate how eager they are for certain elements of a new product. For example, you might ask on a scale of 1-10 how important it is to “search for a broad range of music.” Then ask that same customer to rate, on a scale of 1-10, how satisfied they are today with their ability to “search for a broad range of music.” Then focus your product development on outcomes that scored high in importance and low in current satisfaction.

“Most suppliers fail to ask these quantitative questions,” says Adams. “The result is they miss two critical points: The first is that it’s a mistake to let your engineers and scientists work on answers to questions customers don’t care about; secondly, to a certain extent, we all ‘hear what we want to hear’ in customer interviews, so quantitative data is needed to drive out internal bias and wishful thinking.”

Take advantage of the profit motive. Many B2B suppliers completely overlook an enormous advantage they have over consumer-products companies such as Apple: the ability to measure value delivered to their customers. How do you measure the “coolness” of a tiny iPod, the convenience of a fast music download, or the bragging rights of owning the latest iPhone model?

But the B2B supplier’s world is different. “I’ve helped B2B suppliers in hundreds of industries,” says Adams, “and their customers are usually in the business of making money. B2B suppliers can help their customers make more money by improving their processes and/or their products. If suppliers are willing to work at this, they can often measure or predict how a new product will let customers a) reduce costs, b) sell higher volumes, or c) sell at higher prices.

“Tools such as value calculators allow attentive B2B suppliers to understand the value their customers will receive from their new product,” he adds. “This teaches the supplier how to precisely ‘tune’ the design of their new product, how to price it, and how to promote it. This may not be as much fun as a new touch-screen phone, but it’s great for the supplier’s bottom line.”

Get creative with the solutions. Truly hearing the voice of the customer is necessary, but not sufficient. Here’s where you can and should emulate Jobs and his team at Apple—in the creativity department. Jobs doesn’t just encourage innovation; he requires it. He wants Apple employees to take risks, give feedback, and constantly think outside the box. Basically, creativity is a must.

“Once your team knows the outcomes customers care about, they need to focus all their creative energy on finding the solutions that result in those outcomes,” says Adams. “This is best done by engaging as many of the right minds as possible. But remember, this often means engaging those who work outside your company.”

“I leave you with a sort of caveat,” says Adams. “The new product development process that I’ve laid out might look neat and orderly, but in fact, it is often like a messy kitchen as the meal is being prepared. It won’t be unusual during the process for your scientists to invent great new technology before finding a home for it—think Post-it Notes or ScotchgardTM. Do you just leave those products quivering on the lab bench since customers didn’t ask for them? Absolutely not.

What do you think?

The alligator and the vendor

Posted by Mark Brousseau

ibml Business Solution Consultant Curtis Williams sees an alligator up-close at Celebration, Florida, during downtime at last week's Fusion conference.

Checks in a 21st Century digital world

By Glenn Wheeler, president, Viewpointe Clearing, Settlement & Association Services, Viewpointe

Is the check dead? You might hear a near-unanimous “yes” to that question; or as others might say more accurately, check usage is simply on a long decline. While check usage has been dwindling in recent years, to paraphrase Mark Twain, the reports of its death are greatly exaggerated. A recent study shows a sizeable segment of the market still writes checks.

As The 2010 Federal Reserve Payments Study, which looks at noncash payments in the U.S. from 2006 through 2009, indicates electronic payments are quickly outstripping check payments; yet checks have remained a significant payment instrument – to the tune of $31.6 trillion in value paid in 2009. While businesses far outweigh consumers in the total dollar value of the checks paid, consumers overall continue to write more checks, according to the findings. And, the study found that while the number of checks written overall has declined more than 7 percent from 2006 to 2009, the volume of consumer-to-consumer check payments has actually grown in that same time period, from 2.2 billion to 2.4 billion.

Where is the consumer-to-consumer check-writing trend heading? Despite its overall decline, there are those who continue to see the value in this traditional payment method. A January New York Times story, Social Security and Welfare Benefits Going Paperless, about the U.S. government’s decision to pay benefits electronically, chronicled how the elderly have continued to opt to receive old-reliable checks versus the government’s proposed electronic deposit of social security payments.

While this one segment of the population alone will not keep checks going indefinitely, technology might encourage some of the smartphone-wielding segment of the population to continue circulating them. According to a recent American Banker article, For Mobile Deposit, Banks Choose Speed-to-Market Over Simplicity, banks are rushing ahead with mobile check deposit technology at the behest of their customers who are using the technology to deposit checks without having to step foot in a bank.

As electronic payments technology continues to evolve – from mobile payment apps to “tap-and-pay” payments using near field communications (NFC), financial institutions and their customers can easily move into a new payments world. Embracing the budding technology will, no doubt, bring new challenges, but with ease of use and the promise of potential growth to the financial institution’s bottom line it could be a worthwhile investment.

Even in our digital age, the old-fashioned check may still stand up as a viable complement to the technologically advanced payment methods.

What do you think?

Make information safekeeping part of your hurricane preparations

Posted by Mark Brousseau

Forecasters at Colorado State University recently announced that the 2011 Atlantic hurricane season will be very active. Before the season starts, it's time for businesses to get ready, while remembering their most valuable asset: information.

"No matter the size of a company, without access to information, clients could be lost and the owner may be at risk for losing the business altogether," said Marshall Stevens, co-owner of Stevens & Stevens Business Records Management, Inc, a Florida-based records management center. "To ensure business continuity, owners should develop a disaster recovery plan to assess how they're storing and managing information. These plans can help keep a business up and running so all business functions could be handled, even without access to your facility or network."

Get prepared by considering the following:

... Location and security of your storage facility – Store information off-site in a location that's been designed to withstand high sustained winds, is located in a non-flood zone, has a secure vault and is also secured with alarms, security cameras and pass codes.

... Accessibility – Be sure you can access your information no matter the time of day or day of week.

... Document back-ups – Whether you make copies or have external hard drives, back-up files of key documents is crucial. Keep back-ups in multiple locations, so if a disaster affects your office, another copy of your information is still available.

... Alternative records storage options – Consider utilizing technology that allows files to be converted to electronic images, which are then hosted on a secure, password-protected website. So, if files are destroyed or you couldn't access your facility, information wouldn't be gone for good.

"Hurricane season can be an uneasy time, but by planning how you'll protect information now, if disaster does strike, you can focus on running your business rather than trying to pick up the pieces after the fact," said Stevens.

How does your company safeguard its information during a hurricane?

Best operations-improving strategies

By Mark Brousseau

During a pre-conference networking lunch at Fusion 2011 at the Gaylord Palms Resort and Convention Center in Florida, attendees were asked to share the best operations-improving strategy that their accounts payable (AP) department has implemented in the past 12 months. Here are the operations strategies that the luncheon attendees said were the most effective during the past year:

... Provided AP processors with two computer monitors, reducing errors and increasing efficiency
... Took the time to better understand AP processes (became "black belts" in evaluating processes) to weed out the processes that don't add value
... Migrated more payments from paper check and wire transfer to automated clearing house (ACH) transactions
... Separated straight-through and exceptions processors
... Deployed a new enterprise resource planning (ERP) solution
... Deployed a purchasing card program
... Became more open-minded to new ideas
... Started reimbursing via a debit card since some people won't take direct deposit and paper checks are too costly and inefficient
... Began measuring and improving input quality, in turn, increasing AP productivity without changing any processes
... Began e-mailing and faxing remittances to save time and postage associated with paper remittances
... Developed a proprietary travel and expense (T&E) reporting system
... Brought AP functions previously done in India back in-house, resulting in savings of $26,000 a month, largely from fewer mistakes
... Implemented an imaging and workflow solution, reducing processing time and enabling all staff to know where an invoice stands in the approval process
... Standardized on one system and one process whenever possible
... Implemented virtual card payments
... Automated accounts receivable (AR) refunds
... Consolidated various overnight shipping and cellular phone accounts into "master" accounts, allowing the company to negotiate discounts of 18 to 50 percent off list prices
... Automated payroll processing with ACH
... Eliminated duplicate vendors, in turn, eliminating many duplicate payments

What is the best operations-improving strategy your AP department has implemented in the past 12 months? Post it below.

Unlocking the value of enterprise content management

By Mark Brousseau

It’s one thing to have enterprise content management (ECM) technology, it’s another thing altogether to get value out of it, Gartner Analyst Mark Gilbert told attendees at Systemware’s user conference, SWUC 11, last week at the Westin Galleria in Dallas.

Companies seem to be getting Gilbert’s message. Many are focusing like never before on ECM applications that provide more value, he told attendees. This trend is being driven by increased expectations from ECM buyers and users, new demands for faster and richer process management and information delivery, increased archiving, compliance and information governance requirements, and the evolution of social media into a tool targeting supply and value chain management.

“The ECM market is strong, and it is reshaping itself as the technology becomes more adaptive and customers make more demands on it,” Gilbert explained, noting that the ECM market now tops $4 billion a year in sales. He added that, “Companies are now relying on ECM to drive business efficiency and achieve better results.“

When it comes to ECM, “ROI matters,” Gilbert said flatly.

Some key elements of the ECM business case that Gilbert identified include:

… Faster, better, processes.
… Better customer service
… Better, less costly regulatory compliance
… Better management decisions
… Better front-line decisions
… Better teamwork

“When we talk to customers, these things come up time and time again,” he said.

Gilbert offered several tips for ensuring your company meets its business case:

… Build a vision for how ECM can transform and drive your business.
… Survey ECM use-cases in your industry.
… Establish roles and an organizational structure to support your ECM vision.
… Set scope for your ECM initiatives by assessing risk and the value of information assets – across the breadth of the content continuum.
… Leverage existing technology and vendors and determine what you have and how it supports the ideals of information infrastructure.
… Accept the fact that technology alone will not succeed; policies and governance models are critical for long-term value.

What do you think?

Inspire 2011 kicks off in Las Vegas

By Mark Brousseau

More than 900 document automation professionals have descended upon Las Vegas this week for Perceptive Software’s Inspire 2011 user conference at the Wynn.

This is the fifth year that Perceptive Software has held its Inspire event.

The attendance at this year’s Inspire user conference is a record, Jeremy McNeive, Perceptive Software’s public relations manager told me yesterday, topping the crowd of about 700 that attended Inspire 2010 in Kansas City. McNeive attributes the growth to the improving economy, the continuing pressure within organizations to improve efficiency, and the value that end-users perceive from the content. For instance, yesterday’s keynote address on the state of the company by Perceptive Software President and CEO Scott Coons was “very well received,” McNeive said.

Inspire 2011 includes more than 60 educational sessions (more than ever before at an Inspire event), with learning tracks dedicated to higher education, healthcare, financial services, the back-office, and product and platform information. There also is a large resource center where end-users can try out Perceptive Software products and get answers to technical and product questions from the company’s experts.

Eight of Perceptive Software’s partners also are exhibiting at the event: Lexmark (Perceptive Software’s parent company), Fujitsu, Napersoft, Scanning America, CSP Group, Docucon, Global Information Distribution, and HyBridge Solutions. Many of these partners provide various components for Perceptive Software’s solutions.

One of the hot topics among attendees is the anticipated release next year of ImageNow 6.7, which will offer “a little bit of everything” for end-users, McNeive said, including records information management and foldering capabilities. It will help end-users move towards collaboration in an even bigger way, McNeive added.

“There is lots of energy here and lots of excitement,” McNeive concluded.

Going to school on workflow

By Mark Brousseau

Kansas State University (KSU) has increased productivity, raised efficiency and reallocated staff by deploying Perceptive Software’s ImageNow enterprise content platform in its admissions office. Rhiannon Englert of application manager and ImageNow client administrator, undergraduate admissions, shared the university’s story yesterday at Perceptive Software’s Inspire 2011 user conference in Las Vegas.

Founded in 1863 and located in Manhattan, Kansas, KSU offers more than 250 majors and programs and serves over 23,500 students. The university’s admissions office has about 50 ImageNow users, and holds about 30 seat licenses at a time.

The university processes about 20,000 applications and 20,000 transcripts per year.

Before deploying ImageNow in 2002, the university previously used a “very large and very loud filing-drawer system” for managing its admissions documents. “It was a very clunky system and took up a lot of space,” Englert said. “By deploying ImageNow, we were able to replace that system with three workstations.”

Until three years ago, KSU used its ImageNow solution primarily for electronic document storage. The school’s workflow was used largely for basic tasks and was centered on an in-house routing slip and back-end document scanning

In this paper-driven environment, the university would date-stamp incoming admissions documents and then send them to its document processing staff, who would perform data entry and make any necessary notations directly on the original documents. The documents then would go to an evaluator-level employee for more processing, and any action that needed to be taken. Once this step was complete, the documents would be scanned and electronically linked to a student ID number.

This process created some challenges, Englert said, starting with the labor involved in manual data entry. “We also were concerned about the location of documents during processing: the only person who knew the location of a document was the person who was processing it,” Englert explained. Similarly, there was no way to quantify the processing workload. “Employees would say, ‘We have a huge stack of transcripts to process,’ but they could didn’t know how many,” Englert said.

That all changed in 2009 when the university upgraded to version 6.3 of ImageNow.

As part of its upgrade to the new version of software, the university evaluated its business process, looking for ways to improve efficiency and eliminate the “vicious cycle” of paper-driven processes, Englert said. Not surprisingly, the university decided to implement a paperless workflow in its admissions office. As a result, incoming documents – including applications and supporting documents – are now scanned upon receipt and then enter electronic workflow queues based on the document type or business process. The electronic documents are then linked to a student identification number in KSU’s PeopleSoft system, processed and archived.

With such a big change in how work is managed, it’s not surprising that Englert’s team had some concerns early on, including: how information would be displayed on monitors; whether they could make electronic annotations on documents: the clarity of document images (for determining the authenticity of transcripts); and the impact on processing turnaround. Some employees also were anxious about the system’s workload monitoring tools, and that someone would be watching them.

The university tackled these issues head-on (i.e. providing all employees with two monitors for easy image viewing) and kept communication to staff flowing.

The benefits have been significant. As a result of moving to a paperless workflow, the university increased efficiency, improved turnaround times, and reallocated staff – all at a time when its budgets are extremely tight. The workload tracking has proven to be a powerful tool for supervisors, helping them better understand staff workloads and turnaround times, and prioritize work when necessary. Englert said it is also easier to locate documents with ImageNow’s search capabilities. .

“During high-volume times, documents are now available in ImageNow within hours or a few days as opposed to several days or weeks,” Englert commented.

Now, the university is looking for more ways to take its processes to the next level.

No end in sight to paper checks

By Mark Brousseau

While the Federal Reserve Bank’s latest figures show that electronic payments continue to achieve strong growth, the data also suggests we’re still a long way off from the eagerly-anticipated “checkless” society.

With 28.8 billion checks written in 2010 -- the last year the Federal Reserve researched -- the number of checks written between 2007 and 2010 declined by about 6 percent per year. What’s more, 92 percent of checks are now cleared electronically between U.S. banks, according to the Federal Reserve’s research.

So what should remittance processors make of this data?

“It’s clear that U.S. check volumes continue to decline at a gradual rate,” says Creditron Founder and CEO Wally Vogel, “But checks are not likely to disappear any time soon.” While those might be sobering words from some paper-weary operations managers, they can take heart in the fact that paper deposits – a drag on costs and efficiency – are experiencing a rapid decline as Check 21 emerges as the method of choice for deposits (Vogel points to NACHA figures showing a big drop in Accounts Receivable Check Conversion volumes). “This is bad news for manufacturers of high-volume check encoding equipment, but it’s a great opportunity for providers of Check 21 remote deposit technology. There are many remittance shops that manually process their transactions, or have outdated solutions that don’t support Check 21. With banks continuing to lower their fees for Check 21 deposits, many of these shops will likely look for electronic solutions.”

Vogel notes that Creditron has recently seen strong demand for its Check 21 remote deposit capabilities. “The market is recognizing the value of remittance solutions that offer Check 21 remote deposit, as well as an image-based workflow. Against this backdrop, I think we are well-positioned for success and growth.”

What do you think?

Same-day ACH suffering from “chicken and the egg” syndrome?

By Mark Brousseau

With remote deposit capture continuing to enjoy strong growth, some attendees at this week’s NACHA Payments conference in Austin, Texas, were left wondering what has become of same-day Automated Clearing House (ACH) transactions – the hottest (and arguably most controversial) topic at NACHA Payments a few years back. The answer may be sobering for those who thought same-day ACH would be a clearly more appealing alternative to the same-day availability afforded by remote capture.

“The lack of same-day availability has always been a weakness of ACH,” notes Affirmative Technologies Chief Technology Officer George Bassous.

“Same-day ACH should be a magic bullet when it comes to turning back the rising volume of deposits made via Check 21 remote capture,” he says. “After all, Check 21 remote capture is a case of moving forward by taking two steps back: in order to get same-day availability, it requires the biller to continue dealing with checks.”

Bassous says there are a lot of advantages to same-day ACH. Chief among them, he said, is the ability to know much sooner whether a transaction is being returned. “Virtually any biller would be very interested in same-day ACH,” Bassous claimed.

So why hasn’t same-day ACH had better traction, much less driven back the growth of Check 21 remote capture transactions? “The issue is that the systems used by the ACH banks – particularly large ones – are so tied into old technology that when something new like same-day ACH comes along, they can’t do anything about it. This is the same issue that Secure Vault Payments is having. The situation with same-day ACH is a classic case of ‘chicken and the egg,’” Bassous explained.

Bassous doesn’t buy the argument that some banks won’t offer same-day ACH because they are afraid of cannibalizing their lucrative wire transfer volumes: “I haven’t heard that from banks and I think cards would be the bigger threat there.”

The bottom line is that many banks are not set-up for same-day ACH.

What do you think?

The branch is dead -- long live the branch

By Vijay Balakrishnan of StratEx LLC

That we live in a wired (or perhaps more appropriately, a wireless) world is an oft repeated truism. As I work on this post, I am using the Internet. My mobile phone just beeped with a text message. An intrepid bunch of schoolmates are using Facebook to organize a high school reunion half a planet away. Reunion after how many years, you say? Well, let's just say it is enough for many grey hairs.

If the drumbeat of news is to be believed, consumers are leaping en masse to interacting with their financial institutions through mobile phones and other remote channels. You can now snap a picture of a check with your phone and deposit it in your bank from anywhere in the world. Remote Deposit Capture (RDC) allows businesses and consumers to scan checks from the comfort of their offices or family rooms, and zap across images for deposit. The perfect storm of convenience and technology should mean that very few people visit their neighborhood branch anymore, right? Wrong!

An item (no pun, honest!) in The 2010 Federal Reserve Payments Study caught my eye. Yes, the number of checks written has declined from about 30 billion to 24.4 billion. However, only 13 percent of checks deposited were received by financial institutions as images. That means a respectable 87 percent of checks were deposited physically. So, despite all the noise about check deposits getting virtualized, there still is a healthy number of people walking into branches to make deposits.

Now, your take on the physical branch versus self-service debate will dictate whether you see this glass half full or half empty of your beverage of choice. Proponents of RDC will point to the enormous growth potential in the remaining 87 percent. The same percentage will be looked at by some retail bankers as rationale to invest in branches.

At the risk of being a fence sitter (come to think of it, sitting on an actual fence can be acutely uncomfortable), let me say that both views are correct. RDC will continue its growth, albeit at its present course and speed- I don't see a "big bang" transformation in that direction. I do, however, see an opportunity for investment in technologies like teller capture and enhanced training for tellers to go beyond their current role as deposit takers. Teller capture uses technology to capture images, proof, and balance deposits at the teller station. It reduces keystrokes and data entry errors. It also provides more "heads up" time for tellers to interact with customers, where additional training can enhance the customer experience.

Transformation is a funny thing. Just when you think the new and different will swamp the world, something from the hoary past reaches out to remind us of its existence. Success will go to those who craft strategies to leverage both.

Vijay Balakrishnan is president of StratEx LLC. He can be reached at 770-598-5747.

Municipalities eager to automate RP

Posted by Mark Brousseau

Municipal governments are showing strong interest in purchasing automated remittance solutions, and it appears that the sluggish economy -- and its impact on municipal budgets -- is the primary reason, according to Tony Rapaglia, regional manager for Creditron (trapaglia@creditron.com). Municipalities are looking to automate functions such as tax and utility payment processing, Rapaglia explains, adding that he expects the strong demand to carry over into the new year.

"Especially after the recent elections, municipalities are extremely conscious about the amount of money they are spending on back-office functions such as remittance processing," Rapaglia says. "Many are focused like a laser-bean on cutting costs and improving service to taxpayers. They recognize that they can pass along any savings from more efficient processing to their taxpayers."

So why is remittance processing, in particular, getting so much attention from municipalities?

For starters, Rapaglia notes that automated remittance processing frees up municipal workers to focus on other activities -- which is critical as they look to become more taxpayer-focused and make do with less staff. Automated remittance processing also helps municipalities make deposits much quicker, delivering immediate gains in funds availability. Even greater gains are on tap for those municipalities that deposit items electronically to their banks via Check 21. And municipalities are drawn to the improved security that an automated remittance system provides compared to paper processes. "In an automated environment, less people handle the checks, and there's less opportunity to lose them," Rapaglia explains, noting a recent case where a courier misplaced paper checks.

"Municipal budgets are certainly tight, but more of them are recognizing that they can achieve big savings by spending relatively little money on an automated remittance system," Rapaglia concludes.

Companies Unprepared to Address Risks Created by New Technology

Posted by Mark Brousseau

Less than a third of global businesses have an IT risk management program capable of addressing the risks related to the use of new technologies, according to Ernst & Young’s 13th annual Global Information Security Survey. In spite of the rapid emergence of new technology, just one in ten companies consider examining new and emerging IT trends a very important activity for the information security function to perform.

A significant increase in use of external service providers and business adoption of new technologies, such as cloud computing, social networking and Web 2.0, is recognized to increase risk for 60% of respondents. Yet, in spite of this, less than half intend to increase annual investment in information security.

Paul van Kessel, Ernst & Young Global IT Risk and Assurance Leader,comments: “Technology advances provide an increasingly mobile workforce with seemingly endless ways to connect and interact with colleagues, customers and clients. These advances represent a massive opportunity for IT to deliver significant benefits to the organization but new technology also means new risk. It is vital that companies not only recognize this risk, but take action to avoid it.”

Over half of respondents state that increased workforce mobility poses a considerable challenge to the effective delivery of information security initiatives, due to widespread use of mobile computing devices. For almost two-thirds employees’ level of security awareness is recognized as a considerable challenge.

"As the mobile workforce continues to grow, so does the level of risk. In addition to implementing new technology solutions and re-engineering information flows, companies must focus on informing the workforce about risks. The delivery of effective, and regular, security awareness training is a critical success factor as companies attempt to keep pace with the changing environment,” van Kessel adds.

Among the other findings in the report:

•Half of respondents plan to spend more over the next year on data leakage and data loss prevention – up 7% from last year. To address potential new risks, 39% are making policy adjustments, 29% are implementing encryption techniques and 28% are implementing stronger identity and access management controls.

•For the first time, continuous availability of critical IT resources was identified as one of the top five risks.

•23% of respondents are using cloud computing services, a further 15% plan to use within the next 12 months. For 85% of respondents, external certification of cloud service providers would increase trust; 43% state that certification should be based upon an agreed standard and 22% require accreditation for the certifying body.

What do you think?

Doing "Different" Right

Posted by Mark Brousseau

In today's business world, "business as usual" is likely to put you out of business. If you're using the same old marketing strategies today because they brought in business in years past, you're in danger of being pummeled by your competition. In order to keep your customers happy (and happily spending!), explains Maribeth Kuzmeski, you have to get their attention, and that means your typical tried-and-true marketing tactics aren't going to cut it anymore. To beat your competition, she says you have to stand out and find ways to be you—uniquely!

"With all the noise in your clients' and potential clients' daily lives, it certainly hasn't become any easier to attract attention and appeal to your target market," says Kuzmeski, author of the new book ...And the Clients Went Wild! How Savvy Professionals Win All the Business They Want (Wiley, 2010, ISBN: 978-0-470-60176-1, $24.95, www.AndTheClientsWentWild.com). "But for your business to survive, you have to find ways to cut through that noise. Attracting attention often means that you have to step outside of the current norms and stand out."

If you aren't sure where to get started, Kuzmeski suggests taking a cue from other companies that have taken innovation to heart and used it to successfully win and keep customers.

Read on for some innovation inspiration from companies that found ways to make their customers take notice—while sticking with their values:

The Difference Maker: Buc-ee's
The Dared to Be Difference: Banking on bathrooms. Sometimes what your competitors consider to be "unimportant" may just turn out to be the differentiation that gets customers coming back for more. Buc-ee's gas stations—located throughout Texas—have focused their number-one offering on what people dread most about stopping at a gas station: the bathrooms! Each of the 30 locations has incredibly clean, substantially sized bathrooms, along with full-time attendants to keep them in tip-top shape. Buc-ee's built their entire business around the bathrooms—a feature they knew they could use to differentiate their business.

"This is a great example of how looking at things from a different perspective can really pay off," Kuzmeski says. "Instead of focusing on what clients liked about their industry, they chose to plan their strategy around what customers liked the least and improve upon it. Think about what people dislike most about your industry, service, or product offering. What solutions can you offer? It's a great way to differentiate yourself from your competition and to create some buzz in the process!"

The Difference Maker: Odwalla
The Dared to Be Difference: Juicing with a conscience. Juice company Odwalla was founded in Santa Cruz, California, in 1980 by Greg Steltenpohl, Gerry Percy, and Bonnie Bassett. The trio took the idea of selling fruit juices from a business guidebook. They began by squeezing orange juice with a secondhand juicer in a shed in Steltenpohl's backyard. Their plan was to make enough profit to help fund music programs in local schools.

Odwalla was driven by a corporate conscience and a goal of leading the public toward a closer-to-nature way of nourishing their bodies. The juices were very highly rated for taste. But the true success came in the way that they appealed to their customers. The founders hired marketing and advertising experts and created what they called their "Drink Tank"—a group responsible for developing and managing the Odwalla brand. In building the brand, members of the "Drink Tank" focused on authenticity, alignment, clear narrative, and the value of a strong corporate culture.

"With very little advertising, Odwalla differentiated their brand by extolling the benefits of drinking and supporting a 'juice with a conscience,'" says Kuzmeski. "As a result, people cared and followed and bought. Odwalla appealed to their customers' consciences and it paid off. Essentially, they called their customers' consciences to action. But the strength of that call to action led them to success. How strong is your call to action? Do you frequently tell your customers what you want them to do? It can be an incredible way to drive your customers and potential customers to do exactly what you want them to do."

The Difference Maker: Geico
The Dared to Be Difference: Ensuring brand awareness. When you think Geico, what comes to mind? Perhaps their slogan, "Fifteen minutes could save you 15 percent or more...." Or maybe that gecko with the British accent. Or the stack of money with the eyeballs that seems to distract and attract everyone near it. Or those oft-offended cavemen. Or maybe—just maybe—you think of all four! Geico has done a particularly remarkable job at grabbing attention for their insurance products. And they've done it by frequently and consistently distributing their simple and somewhat annoying messages to establish brand awareness.

"For Geico, frequency of their messages has brought them incredible brand awareness," explains Kuzmeski. "You don't have to have millions to spend on TV, radio, and print advertising to achieve the level of recognition Geico has achieved. What Geico has done is simply repeat, over and over, their message to their prospects. Think about what you can do to repeat your marketing messages to your target market. Do you frequently repeat your core benefits or offerings to your prospects? It's a simple tactic that can yield high results."

The Difference Maker: The Australian Government
The Dared to Be Difference: Offering the world's best job. The Australian Government promoted what they described simply as "the best job in the world" with a creative and extremely successful Internet campaign. The position they were advertising was a six-month contract to be caretaker of a series of islands in the Great Barrier Reef. The government released the story through traditional media (Reuters) and then sustained the buzz over an array of online networks including YouTube, Ning, Twitter, and Facebook. The contest's website received one million hits the day after its launch when the campaign's goal had been to receive just 400,000 hits over the course of the year. Furthermore, the program attracted over 34,000 applicants and generated over $70 million worth of global publicity.

"The lesson here is an important one," asserts Kuzmeski. "You have to evoke an emotion in your customers if you want a response from them. Whether it's hope, love, happiness, anger, or even hate, you want them to feel something. When people are passionate about something, they will act on it, tell their friends about it, and get involved. Think about what messages your company can convey that might provoke an intense reaction."

The Difference Maker: Vistaprint
The Dared to Be Difference: Giving it away for free. As a global company, Vistaprint employs more than 1,850 people, and ships to more than 120 countries around the world. The secret to their huge success? Business cards. Vistaprint wanted to offer their customers something that no other printing company did, so they decided that their hallmark would be jaw-dropping value. By offering 250 business cards for free, with a nominal $5.67 shipping and processing charge, they were able to appeal to their target market: cost-conscious small businesses. Today, 66 percent of Vistaprint's business comes from returning customers. In the first quarter of 2010 alone, they acquired 1.4 million new customers—many who started with a free order.

The Difference Maker: The Bargains Group
The Dared to Be Difference: Teaming up for A-level customer service.Jody Steinhauer began The Bargains Group in 1988 from her kitchen table by purchasing a variety of different clothing and reselling it to discount clothing stores. Today, she runs a multi-million-dollar firm with over 4,000 different items for sale, but the most interesting aspect of the company is its employees.

The Bargains Group is a discount wholesaler of promotional business products, family clothing, accessories, gifts, toys, bedding and linens, personal hygiene products, and tradeshow promotional materials. So how exactly does a small firm with only 20 employees manage to make millions every year without offering prices much lower than their competitors? It's simple: They hire the right people. By focusing on hiring fun, vivacious people who believe strongly in the culture of service, they are able to actually service each of their customers personally. They don't even have a voicemail system!

"While a lot of firms advertise how 'different' their people are, or how they focus on service, The Bargains Group actually proves this assertion," says Kuzmeski. "They don't advertise or employ salespeople—yet they manage to make millions of dollars selling their products. Make sure that your staff is a differentiator for your company. There is great value in good customer service. Happy customers will not only stick around, they will also spread the word!"

The Difference Maker: Dillard's Septic Service
The Dared to Be Difference: Doing the dirty work (literally). James Dillard, owner of Dillard's Septic Service in Annapolis, Maryland, runs a business that most others might consider "beneath" them. Yet Dillard earns a six-figure income doing what many of us would call mundane, boring, or downright disgusting. An October 10, 2007, article in USA Today by Del Jones, entitled "A Dirty Job, But Someone Has to Get Rich Doing It," featured Dillard and other business owners who have entered into careers that many others simply would not. And it is a potential avenue for business owners who are looking for a way to generate more income. In fact, in the Forbes 400 list of the wealthiest Americans for 2009, less than glamorous fields and products—including discount tires, roofing, salsa, lumber, and tequila—have produced extraordinary income.

"You might not consider these to be businesses that would create such great wealth," says Kuzmeski. "But all of these business owners found their niche, and, through it, their differentiation. Think about a product or service that you can offer that no one else will. You don't always have to be wracking your brain to come up with a product or service that is better than anything your competitors offer. You can also come up with a product or service that they simply won't offer. Products or services that others are afraid to touch can mean big opportunities for you!"

The Difference Maker: Man Cave
The Dared to Be Difference: "Manning" up before the rest. Who would have thought a Tupperware-type party for men would be a good idea? Cofounders Nick Beste and Kevin Carlow saw the success stories from female-centric companies like Tupperware, Silpada, and Partylite and thought, why not? As a result, they created Man Cave, an in-home party where hosts throw "Meatings" complete with a set of "Man Laws." For years, thousands of companies have demonstrated and sold products to groups of women in their homes. Now Man Cave does it for men. They aren't just the leader in their industry; they ARE the industry—and they anticipate crossing the $3-million mark by November 2010.

"Don't shy away from an idea just because it's never been done before," Kuzmeski explains. "In fact, discovering an untapped market can be like striking gold in this economy. Instead of following trends, you have to be brave enough to be a trendsetter. It can be the gateway to a big idea and a big payoff."

The Difference Maker: Realtor and Inventor Jean Newell
The Dared to Be Difference: Recognizing it's not what you know, it's who you know.
Veteran Realtor Jean Newell had an idea for her fellow real estate agents. She invented a personal utility pouch (PUP)—a multi-zippered mini-pack designed to carry all the technical tools, keys, contracts, and more that a real estate agent needs. Judging by the initial reaction she received, she knew she was on to something that people wanted. Her objective was to get on QVC, but she was turned down by gatekeepers again and again.

So she decided to reach out to her network, which consisted of other agents, buyers, sellers, etc., and ask for their help. She sent out an email requesting help to find a contact person at QVC for her new product and received an overwhelming response. Within a few days, she had 40 emails from people providing contacts at QVC. She created a quick video to show how she would promote the bag and sent it off to QVC. Within two weeks, she was accepted! Since her initial appearance on QVC, Newell has become a sales superstar and media darling.

The Difference Maker: Toy House
The Dared to Be Difference: Advertising curiosity. In Jackson, Michigan, a city and state hit hard by the economy, toy store owner Phil Wrzesinski was struggling to compete against local big box competitors like Toys "R" Us, Target, and Walmart. And then he had an idea. In August 2008 he began running ads on the local radio station that had local DJs wondering what was in the men's bathroom of the store. Droves of customers started coming in to see what actually wasin the men's bathroom. (The product in question, by the way, was a nightlight that projects stars on to the ceiling and walls of a darkened room.) The result? Despite the down economy, Toy House has seen a steady increase in both loyalty and sales ever since!

"Just because your product may be ordinary, it doesn't mean your promotion of it has to be," advises Kuzmeski. "Clever advertising can peak interest, create buzz, and get people talking—exactly what you want at a time like this. Don't be afraid to take risks with your promotion. Show that your company has an edge. It will set you apart from your competitors."

"To beat your competition in today's economy, you have to be offering something that no one else is—be it a unique product, promotion, offer, staff, or culture," says Kuzmeski. "You can't expect to keep customers coming back if you are offering only the status quo. Don't be afraid to take risks, think outside the box, and be a little daring. Not only will you grow your business, you'll find yourself inspired, recharged, and motivated."

What do you think?

Book says to get ready for the next boom (really!)

Posted by Mark Brousseau

A bumper sticker popular in West Texas during the oil bust of the early 1980s went something like this, “Please God, just give me one more boom—I promise not to blow it this time.”

Today, millions of people around the world may be having similar thoughts.

In his book to be published in November, Jack W. Plunkett, a widely followed analyst of global trends, writes that massive changes in America and around the world will bring on a sustained period of economic growth. In The Next Boom, he argues that we are on the verge of developments that will boost job creation, investment and international trade over what he calls the “near future,” from 2013-2025.

“The next boom is already rolling down the tracks in the emerging world,” Plunkett says. “America will get on board shortly.”

The book is subtitled, “What you absolutely, positively have to know between now and 2025,” because Plunkett believes that managers, investors, entrepreneurs and leaders need to understand the changes that will soon occur in order to perform effectively. He presents a panorama of developments in areas including energy, healthcare, education, demographics, global trade, technologies and the rapidly-growing global middle class—showing how trends in America and around the world have tremendous synergy that will lead to a surge in business.

Plunkett, who describes himself as a “pragmatic optimist,” explains that “the coming boom will be supported by three building blocks. First, consumers in America are building savings and becoming financially prudent, while population growth is expanding markets for businesses. Next, global trade is about to enter an evolved, vastly higher level while the middle classes in emerging nations are soaring. Third, advanced technologies will boost the global economy in an unprecedented manner that will make the last technology boom seem tame.”

What do you think?

How Technology Came to Rule the Legal World

By James D. Shook, Esq.
Director of E-Discovery and Compliance
EMC Corporation

Ten years ago, few people, even lawyers, knew much about electronic discovery (e-discovery)—the process of finding, preserving, processing, and producing electronic information that is relevant to a legal dispute. Today, it’s difficult to find anyone who is not at least conversant with the concept, thanks to many high-profile cases and countless articles in both IT and legal journals. And yet even with all of the changes that we have already seen, the next ten years are likely to produce even more.

An extra “e” transforms “discovery”
The U.S. legal system requires that each party in a civil dispute provide the other party with all information, both good and bad, that is relevant to the case. This part of the litigation process is called discovery.

In the “old days”—which in technology terms means before 2000—the discovery process focused primarily on paper documents such as contracts, notes, files, and correspondence, including letters and memoranda. As businesses began using more technology, especially e-mail, the majority of that information shifted from paper to electronic format, and e-discovery was born.

The rules of discovery never specifically included—or excluded—electronic data, creating inconsistencies and confusion. To address this issue, the Federal Rules of Civil Procedure were amended in December 2006 to specifically include electronic data, defined as electronically stored information or ESI. Although the FRCP only governs disputes in federal courts, it strongly influences state courts, and the rules spread quickly.

Almost overnight, IT systems such as e-mail servers became concerns for lawyers, many of whom are notoriously techno-phobic. Organizations that failed to meet their e-discovery obligations faced the risk of embarrassing and costly sanctions from the courts. Simply collecting and preserving everything was cost-prohibitive. A frequently cited study found that it costs almost $20,000 to have lawyers review a single gigabyte of data (which may seem reasonable since 1 GB represents about 75,000 pages). Extrapolating those costs across hundreds of gigabytes, or even a terabyte or more of data, scared most organizations—and they started looking for a better way to manage both the e-discovery process and their electronic information.

E-discovery strategies at work, today
Organizations that lead the way in e-discovery best practices are attacking the problem in two ways. First, by managing data more centrally and efficiently, they can responsibly delete data that has no value, or which they are under no obligation to retain. Not only does this practice improve the e-discovery process, but it also creates significant savings for storage, backup, and personnel costs.

The second part of this strategy is to bring some—or all—of the e-discovery process in-house. To do this, organizations are creating cross-functional teams that include both IT and Legal, and then deploying technologies that enable fast and efficient in-place search and collection of their ESI.

Yet even today there are many organizations that have done little to address these requirements. Because e-discovery is not a voluntary process, many unprepared organizations perform “faux e-discovery”—they attempt to meet their obligations, but in reality miss significant amounts of relevant data. In doing so, they are taking on significant risk, without understanding or acknowledging it. Other organizations that fail to prepare are forced to turn to expert (and expensive) third-party vendors, frequently spending several hundred thousand to well over a million dollars to respond to a single case—without any ongoing benefit.

More data, more technologies, more challenges, more solutions
The continuing explosion in the amount and varying types of data will continue to significantly impact the e-discovery landscape. With studies noting that we will have 35 zetabytes of data created by 2020, even good processes may be totally overwhelmed by the sheer volume.

In addition, technologies that enhance the speed and efficiency of communication and businesses processes continue to be developed—and they are usually not e-discovery-friendly. Social media technologies such as Facebook and Twitter are further blurring the line between personal and business data, which can be difficult for organizations to locate and preserve. Cloud computing can put a company’s data in the hands of a third party, sometimes in a different country or jurisdiction, which also makes e-discovery more difficult.

But technology is also likely to provide solutions, such as intelligent filtering and review of data. There are tools today that can classify and determine whether documents are relevant to a case based on their similarity to other relevant documents or other criteria. But those technologies are new and complex, and their acceptance in actual court proceedings is not assured.

With all of these issues on the horizon—and certainly more that we cannot yet predict—the next 10 years in e-discovery will be every bit as interesting as the last.

As director of e-discovery and compliance at EMC Corporation, James D. Shook, Esq. works with customers to help them solve challenges related to e-discovery, compliance and privacy. James is a long-time member of The Sedona Conference, a well-known legal think tank, and is an active contributor on several of its committees.

Information, Please!

Posted by Mark Brousseau

After years of discussion, plans to expand the Automated Clearing House (ACH) Network to facilitate the electronic transfer of supplemental remittance information may finally gain traction.

Initiatives to use the ACH rails to transfer information associated with business-to-business payments and healthcare payments were among the hottest topics at WesPay's Payments Symposium this week at the Renaissance Hotel in Long Beach, California, notes Leilani Doyle (ldoyle@usdataworks.com), product manager at US Dataworks (www.usdataworks.com), a Houston-based solutions provider.

"The ACH Network has proven to be a stable and successful payments channel," Doyle explains. "But as electronic transactions continue to gain acceptance, it is clear that the ACH Network needs to be expanded to more efficiently carry remittance information, as well as payment instructions."

Doyle notes that several initiatives already are underway to allow information to be passed along with payment instructions. The most notable effort is the new International ACH Transaction (IAT) format. "It was necessary for OFAC [Office of Foreign Assets Control] reporting that international payments include enough information with ACH transactions for proper screening. To accomplish this, addenda records were added to accommodate the required information," Doyle explains.

Now, NACHA is extending this concept to business-to-business payments, hoping to eliminate one of the largest remaining obstacles in electronifying business checks: the need to communicate remittance information. "This is not a new concept," Doyle says. "NACHA's CTX [Corporate Trade Exchange] format was a start. But the ANSI standards it relies on are too complex to be effectively used by mid-sized businesses." As an alternative, a plan is under consideration to combine standardized addenda records with XML tags that could be interpreted by both sending and receiving ACH systems. "This approach may be a real solution to the B2B ACH trade payments problem."

Another big opportunity for an expanded ACH Network lies in the healthcare space. "Imagine an ACH standard record format that allows EOB [explanation of benefits] information to be linked from within the payment," Doyle says. "Using this approach, there would be no need to send all of the EOB information around on the ACH rails. Instead, an addenda record would provide secure and specific access to EOB information in an XML format," Doyle explains, adding that this "simple and extensible" solution is designed with the healthcare market's fast-changing requirements in mind.

NACHA is hardly standing still as it puts the finishing touches on its information initiatives. The organization introduced Secure Vault, a payment system that allows consumers to pay for goods and services over the Internet, without disclosing their bank account information. "The Secure Vault payment method connects directly to a bank's online banking application where the customer enters their ID and password, and money is then transferred to the merchant using the ACH Network," Doyle says. After a lengthy pilot, Secure Vault is now "ready for primetime," Doyle says. "The Secure Vault concept is sound, but only time will tell whether the adoption rate is high enough for it to become as ubiquitous as credit card and e-check payments for Internet transactions," Doyle adds.

What do you think?

Meaningful RE-use

Posted by Mark Brousseau

Jim Thumma, vice president of sales and marketing at Optical Image Technology, says insurers can pick up the pace in underwriting, claims and more by re-using data meaningfully:

Recycling is vital as society seeks solutions for sustainable living. For insurers, however, the relevance of recycling lies in reusing valuable information meaningfully. Consider the information you collect from policyholders and others, and how many decisions are contingent on what they supply. How can you extract more value from what you have?

Understanding information value
Technology today is about building bridges so insurers can work efficiently, provide quality service, and compete successfully in a challenging marketplace. Trying to bridge existing gaps in the information flow isn’t new; insurers have discussed it for years. Business process management software tied to ECM is an effective enabler, but technology alone doesn’t guarantee meaningful use. Typically, gaps arise from a failure to understand—and manage—our information and its multiple uses.

Defining meaningful use
To make astute decisions, information must be accurate and timely. Knowledge workers need it whether they’re in the office, traveling, or visiting clients. If you want to capitalize on information value as it’s harvested, it should be captured digitally at the source and shared efficiently everywhere within your business where it could influence processes or outcomes.

Ideally:

Incoming mail, data captured via online forms, and email attachments launch pertinent business processes and advance appropriate actions.

Pertinent policyholder data feeds automatically into billing software as new policies are approved and issued, expediting billing and ensuring accuracy.

Data captured in rules-driven voice mail and faxes launches appropriate business processes.

For information to be worthy of reuse, it must be accurate and readable. Front-end capture makes it instantly useful, restricting human involvement to tasks requiring analytical thinking and decisions. Even the smartest knowledge workers are prone to mistakes when information must be gleaned, copied, or re-keyed.

By implementing rules-driven business process management software as part of your content management strategy, accurate information can be re-used logically, promoting actionable intelligence. Many clients of well-deployed ECM/BPM solutions that re-use meaningful information wisely underwrite upwards of 35% more policies; cut claims turnaround from weeks to days; and handle 30-40% more work using the same staff, increasing profitability significantly.

Discovering where meaning lies
Virtual communication can connect people and processes by enabling the seamless transfer of information to every place it has value. Yet like physical bridges, virtual conduits have requirements that plead to be satisfied. You need to:

... Understand the types of information that flow into your company ― which data is critical, in which business areas, and for which specific decisions.
Know all of the sources where that information is found (email, documents, eForms, faxes, handwritten correspondence, voice mails, images).

... Discover every place within your organization where the information has value.
Identify individuals who require access.

... Ensure the business rules you establish with your enterprise content management (ECM) software reflect your governance policies and controls.

Swift, seamless communication doesn’t happen by accident.

Masterminding meaningful use with BPM and smart integration

Consider the interrelationship between policy administration, claims, and accounts payable in a standard claim submission that is aided by a well-planned ECM and BPM implementation and integrated across all business areas:

Selma, a policyholder, returns from work. Someone has broken into her home, stealing valuable jewelry and small appliances. She contacts her agent to submit a claim.

Agent

· The agent completes the First Notice of Loss (FNOL) and faxes it to the insurer. The fax is imported automatically into the ECM system and key data is used to automatically index the document for immediate, secure retrieval. BPM assigns a unique number to the claim and sends the FNOL to the appropriate reviewer based on information detailing staff roles, current workloads, and schedules.

Claims reviewer

· The assigned reviewer sees the job as the top task in his queue. He clicks on the link to the FNOL and views policyholder’s information, selecting the policy pertinent to the claim. The next click packages the documents and sends them for supervisory review along with the appropriate, automatically generated email message.

Claims supervisor

· The supervisor views the policy via a link in her email. She compares it to the FNOL, verifies the match, and forwards it to the adjuster.

Adjuster

· The adjuster adds relevant photos to the file. He requests police reports. As they arrive, they are imported and indexed. When the file is complete, BPM packages the field survey, images, and reports, linking them to the policy and FNOL, and the folder is returned to the supervisor.

Claims supervisor

· The supervisor receives email notification the claim is ready for final review. She approves it for payment.

Accounting

· Relevant claim information is extracted electronically (name, policy number, contact information, deductible, payment due) and pushed by BPM into the A/P software, ensuring accuracy and expediting payment.

Customer service

· The claimant calls to inquire about the claim’s status. The answering service determines from voice response which claim is in question. The call is routed appropriately. Support views the up-to-date claim status, assuring the customer the check has been sent and providing details.

By integrating policy administration, claims, and billing with ECM and using BPM to orchestrate the flow of information wherever it’s needed according to business rules, Selma’s claim is processed quickly and cost effectively. Work is more efficient. Resources are used wisely. Fewer mistakes are made. The company gains financially and reduces its risk to legal exposure and unhappy clients.

Evaluate your routines
Contrast this with your everyday routines. How many opportunities for meaningful use are overlooked? How much time is wasted? How many customers are underserved? How much money is lost because of inefficiency?

Are the shortcomings acceptable, or are you ready to change?

Take steps toward improvement
Whenever you collect information from applicants, policyholders, staff, or third parties, it likely has value in more than one place. Analyze and understand the value of your business information. Use ECM and BPM to maximize the meaningful use of it. Your business will profit measurably.

What do you think?

Optimizing document scanning

Posted by Mark Brousseau

In spite of the tremendous growth of document imaging over the past decade, half of the companies that responded to a recent TAWPI Question of the Week (www.tawpi.org) admit that their organization images 30 percent or less of their documents and forms that could be usefully scanned.

Based on the survey results, these organizations are badly lagging their peers that have adopted document imaging in a big way: 17 percent of survey respondents indicated that they scan 75 percent of their documents and forms while 33 percent of respondents said they scan all of their documents.

Overall, the survey results illustrate that there is plenty of potential growth for document imaging, explains Derrick Murphy (dmurphy@ibml.com), president and CEO of ibml (www.ibml.com).

Murphy attributes the slow adoption of scanning by some companies to the perceived (or actual) complications of deploying an integrated document imaging solution, and the change management associated with it. "Process change scares some people more than new technology," he explains.

But Murphy believes that more companies will take a fresh look at their document imaging initiatives as the economy emerges from the recession. "They'll re-evaluate imaging for all of the reasons vendors like ibml have talked about over the years: accelerating access to critical information, re-balancing their labor force, improving customer service, and lowering operating costs," Murphy says.

"Now is a good time to invest in capital assets that better position your organization to take advantage of the inevitable economic turnaround," Murphy concludes. "Companies that aren't prepared to take advantage of the turnaround risk falling behind their forward-thinking competitors."

What do you think?

Nailing Down Resource Allocation

Posted by Mark Brousseau

Resource allocation may be the key to IT project investment. Mike Kerrigan (mkerrigan@laurustech.com), vice president of business applications for Laurus Technologies (www.laurustech.com), explains:

The economic downturn may finally be changing directions but it still has a damper on every aspect of business, including IT departments. Even with some of the recent signs of recovery, businesses remains keen on cost savings, and spending is still prioritized around maintaining operations versus new initiatives and challenges. With budgets and resources remaining limited, companies need to be mindful of projects of significant value going by the wayside.

Businesses can recover by working smarter with fewer resources while maintaining high levels of quality and service. This is no easy task, but if everyone – from top down to bottom up – carefully considers what they’re implementing – the dollars spent will go toward the most worthwhile programs. To best allocate available resources, you’ll need to break down the type of information you have, identify the tools needed to pull that information together and focus on document management and workflow.

Breaking Down the 4-1-1
To start with, no matter what type of IT task it is, there is one common element – information. Information about what you want to do, information about how you are going to do it, information about how the plan is progressing (or not) and information about the end result. So a good place to start is a breakdown of the definitions associated with project information.

By Use
Project Governance: This type of data is used to steer individual projects at a high level, such as program and project portfolio management. It is typically referred to as “master data” or “status” information. This is mainly used by project owners or steering committee members on the single project management level, the portfolio manager, portfolio owner/ portfolio management team or other stakeholders.

Project Collaboration: These pieces of information are mainly used to deliver expected results. Major interest groups are Project Managers or Project Team Members. This data enables the whole team to carry out program tasks.

By Type
Project Management: This contains everything used to keep things running smoothly and in an organized fashion. It is strongly project-independent, but is similar across the board. For example, it may include meeting minutes, action item lists, open issue lists, schedules with delivery status information, timesheets, etc.

Project Content: Items needed to reach goals and attain desired results fall into this category. This may include technical plans, construction plans, ingredient lists, recipes, letters to third party suppliers, contracts, etc.

Getting a Grip on the Data – Tools You’ll Need
Now, how do you facilitate the governance of all of this information? It has become essential to manage, monitor, and assess the status of all projects through Enterprise Project Management (EPM). This is a set of uniform processes, methods and application packages. Typically, organizations that adopt EPM set up a Project Management Office (PMO) and select and adopt a specific Project Management Methodology (or create a proprietary method). They might even select and implement software tools to support Enterprise Project Management and collaboration.

EPM Tools: Enterprise project management tools focus on supporting single projects, no matter what type of program or content is involved. Also, this single-project information can be used for multi-project management or project portfolio management based on the master data and status information of all the work in an enterprise. Examples are pure tools for planning and controlling such as MS Project (Microsoft) or sophisticated solutions for managing the lifecycle of a single project. It may bring idea management, approvals, etc. to program and portfolio planning and control, like Clarity (computer Associates), MS Project Server (Microsoft), Primavera, etc. It includes components such as a project master data database, a workflow engine or a reporting engine.

Collaboration tools: These are often developed for various purposes, not just for project management. Facilitating collaboration within groups, these tools allow users to store documents, set up group folders and enable other features like group calendars and forums. Examples are eRoom/ Documentum (EMC) and SharePoint (Microsoft).

De-clutter Your Documents
The next step to optimal resource allocation is to review your document management. Have you ever stopped to think about how much time is wasted searching for documents? It doesn’t matter if you use a shared drive or document management platform – unless standards are in place, you are wasting resources to find what you need. The same can be said for saving documents. You spend time sifting through folders to figure out where something belongs. In the end, you wind up creating a new folder to add to the rest. This is computerized clutter at its finest!

The purpose of document management is to move information from individual computers to a shared space for broad access. By learning from historical data, you can reuse instead of recreating and stop flooding email inboxes with documentation. If project teams use a business process to create, access, and edit information in a centralized location, the need to constantly email documents would decrease tremendously. Only accurate versions of documents would be used. Best of all, team leaders and top management would know how and where to check on progress at all times.

Shared drives, which are just virtual filing cabinets, are very limiting and not so user-friendly. It is too easy to bury information in the multiple layers of folders. A document management platform (DMP) has many more features for easy navigation and searching. DMPs bring the ability to create wiki pages, a knowledge base, shared calendars and document version control. However, like the virtual filing cabinet, DMPs can be just as burdensome unless the following items are addressed:

• Blue Print: Plan a layout of how the tool will be used within the company
• Appoint: Name a Project Manager(s) to manage various areas within the tool
• Architect: Devise a structure and naming standard
• Instruct: Document and teach how to use the system
• Broadcast: Formally communicate the new way of saving and retrieving information
• Verify: Conduct reviews of the platform and hold people accountable

Workflow
Once you’ve taken care of the document stream, it’s time to work on overall project flow. You need to reach consensus on the methodology and process to be used for ALL efforts. If this is already defined, then review how well it is working, make any adjustments and communicate the process to everyone. Next, decide on baseline criteria for project selection – if it doesn’t meet the initial baseline, stop. If you do proceed, plan for continual assessments to ensure business alignment. We all know business needs, goals, and strategies continually change. And there’s no need to continue investing in a project that doesn’t fit in with your overarching business goals. Moving forward in the planning process requires many steps but there are two critical elements to include:

1. Breakdown Structure
2. Risk Register

A Work Breakdown Structure (WBS) is a graphical representation of the entire project with a forecast from beginning to end. By being graphical, a WBS fosters ease of communication of all the details. Think of a WBS like the instructions that come with a “do-it-yourself” kit. If you take time to review the instructions and lay out all of the components in advance, you minimize interruptions caused by searching for parts or tools that were indicated up front.

A risk register contains an ongoing list of anything positive or negative that might cause changes. An owner should be assigned to each risk and this “ownership” should continue throughout the project’s lifecycle. With proper risk evaluation, the team can get a probability of the threats that could cause the greatest impact. Based on this, contingency plans can be created. If needed, the risk owner – not the project manager, takes ACTION by putting the back-up plan in motion. It should have a minimal effect, since the risk was identified and built into the project timeline and budget.

Even in times of fiscal frugality, you can implement successful programs by applying a disciplined approach to all of your resources.

What do you think?