CSC e4 in Financial Services

8/14/2019 CSC e4 in Financial Services

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CSC e4 in Financial Services

Framework for Business and IT Transformation


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HOW QUICKLY CAN YOUR COMPANY

RESPOND TO CHANGE?Each year, financial services companies spend

up to 40% of their IT budgets on systems

integration. IT staff typically suppor t dozens

of software applications across multiple tech-

nology platforms, requiring maintenance of

thousands of point-to-point interfaces.

Changes to these complex IT environments

can be costly, even impractical. In spite of the

investment in these systems, technology can

be an obstacle rather than an enabler of

change for many financial services companies.

At the same time, insurers, banks and capital

markets firms are under increasing pressure

from government regulation, technology-

savvy consumers and a widening field of com-

petitors. In this environment , process thinking

and agility are essential. Business processes

must be well defined, consistently executed

and able to rapidly respond to changing

business dynamics.

Process improvements, however, are difficult

to achieve if they are hard coded into multiplesoftware programs, creating spaghetti-like

integration challenges for IT departments. A

single process change must be replicated

many times throughout the enterprise,

resulting in inconsistencies, errors, time delays

and cost overruns. Companies that continue

to hard code business process logic into

software applications or rely on manual steps

will lose out to more agile competitors.

One approach to overcoming process limita-

tions is replacing all underlying legacysystems with a single software solution . This

big-bang approach is often unrealistic for

many financial services companies.Wholesale

system replacements are necessary in

some cases, but they can be expensive and

highly disrupt ive.

The most practical approach is one that

simultaneously exploits the potential of new

technologies and the embedded value in

legacy systems the fundamental strategy

behind CSC e4SM

.

A PROVEN ARCHITECTU RE TH AT

MAKES CHAN GE PRACTICAL

CSC e4 defines, enables and manages the

open exchange of information between

systems, across enterprises and among

partners in a value chain. With its focus on

business process management, CSC e4

supports change as a fundamental driving

force in financial services and delivers the

agility that is a mandatory requirement for an

enterprise architecture. CSC e4 gives financialservices companies a robust architectural

framework for enterprise integration,

enabling quick and cost-effective design and

deployment of business processes. CSC e4

eliminates redundancies in internal and

external business processes and increases

automation, providing end-to end-process

visibility, control and accountability.

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CSC e4 RESULTS

Improved management of business processes has resulted in operational cost

savings between 25% and 50% for CSCs financial services clients. CSC estimates

that financial services companies could save an additional 25% through the

automation of manual tasks using business process management systems.

CSC e4 IN FINANCIAL SERVICES

In today's challenging environment,financial services firms must pursue the

twin goals of operational agility and costreduction.CSC e4 is a practical

framework for transforming the waycompanies operate. It accommodates

disruptive technologies that enablecollaborative business models and it

protects existing investments in people,processes and technology.

Jim Boyd, director, Financial ServicesProduct Strategy,CSC


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W HAT IS CSC e4?

CSC e4 is a proven, service-oriented architec-

ture that integrates Web technology, legacy

systems and commercial software compo-

nents with a business process management

(BPM) engine, connected by adapters to

middleware services. The adapters expose

business services to business analysts,

software engineers and end users who can

collectively redesign the processes in the same

environment, using a graphical notation.

This approach takes IT off the critical path by

fully involving the business owners in the

design, deployment and monitoring of enter-

prise processes. Business processes can be

tuned or amended with minimal changes

to the base code. A true plug-and-play

solution at the business process level, CSC e4

2

A leading French insurer used CSC e4 to

transform its policy administration process

supporting 600,000 policies.The company

created a Web-based portal for administering

new business and processing policies for 30

products,which shifted 80%of servicing activ-

ities from the companys home office to its

3,500 agents and substantially reduced core

processing costs.

As part of Barclaycards aggressive international expansion,we are

offering our mult inational merchants more flexible,multi-currency

capabilities for cards processing. Combined with CSCs CAMSII

software, CSC e4 is helping us streamline and modify business

processes,eliminate manual re-keying and improve data quality

and consistency.

Colin Hudson,Head of Change Management

Barclays Merchant Services

PDA

VoiceXML

SmartCard BrowseriDTV

WAP

Multi-Channel Adapter

SessionManager

Authentication

Screen-fflow Manager

Content ManagementEnterpriseGateway

Security

Distribution

Service

Coordinati

onProcess

M

anagement

Workflow

MIS

Document Production

Policy Administration

CRM

Claims

EnterpriseApplication

External Party Manager

Imaging

Printing

Billing and Collection

General Ledger

Supplier ChainManagement

CSC e4 Architecture

EnterpriseManager

External Party

External Party

eliminates repetitive systems integration

tasks and costly point-to-point interfaces.

Users can access components of CSC e4

through a Web portal with a common user

interface, simplifying training, increasing

user acceptance and improving productivi-

ty. CSC e4 can be accessed globally over the

Internet, a corporate intranet or by the full

range of Web-enabled mobile devices.

CSC e4 uses open standards such as HTTP-

based protocols and standard XML inter-

faces defined by ACORD in the insurance

industry and IFX in the banking industry.

CSC e4 is vendor neutral and brings

together best-of-breed in the areas of mid-

dleware, application server, enterpr ise

portal, process repository and process

server technologies.

CSC e4 provides the framework to help

financial services companies:

Renovate core systems,reducing the need

for full-scale systems replacement

projects

Exploit the use of new software compo-

nents targeted at specific functions

Implement enterprise portals to extend

business services to a wider community

over the Web

Take advantage of emerging business

process management technologies to

model and change complex and volatile

processes in real time

Outsource business processes to third

parties, regardless of differences in

technical infrastructures.

Channel Gateway


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ENABLE TRANSFORMATION OF

COMPLEX PROCESSES

The power of CSC e4 is most beneficial

where processes are fluid, difficult to coordi-

nate across numerous parties and where the

focus of management attention is on

continual process optimization and

improved decision-making. In the insurance

sector, for example, motor vehicle claims

present a daunting challenge to business

analysts and systems architects.

Claims administration is a complex process

with clearly defined outcomes payment or

denial of payment. Each claim must traverse

parallel processes and sub-processes, many

or all of which must interact efficiently to

administer the claim in a timely fashion and

control financial leakage. Unfortunately,

areas in which processes and sub-processes

interact, often called touch points, tend to

interrupt the claims administration process.

All claims must be reported, verified, negoti-

ated and ultimately paid. However, claims

handlers also may be required to manage

other processes, such as bodily injury evalua-

tion, repair shop estimates, salvage and fraud

detection and legal case management.

Although its possible to describe individual

parts of the process in procedural terms,

which can then be automated by an adminis-

tration system or workflow management

system, the real problem lies in the complexity

and volatility between related parts of the

process. In theory, of course, programmers

could define procedural ru les covering how to

manage every claim and how to handle every

exception. However, in most cases, the effort

needed to achieve this level of automation

exceeds the benefits derived because of built-in

system rigidity.

Many companies simply dont try to automate

these kinds of processes and instead restrict

their efforts to automating parts of processes

that are easily defined. As a result, complex

interactions the ones that are exception-

prone and often the most volatile from a

customer service standpoint are left

untouched. Yet these are areas with the

greatest potential for transformation

through automation.

CSC e4 provides a framework that enables the

process complexities and exceptions found in

the physical world to be more easily reflected in

the digital world. Volatile processes are

managed at a layer above the application

software.Automated and manual activities

are combined in an uninterrupted, end-to-

end process.

3

A top-t ier U.S. financial services company needed

to launch new insurance products faster, but the

company was faced with administering a variety of

products on multiple technology platforms.

The company licensed CSCs VP/MS calculation

engine to provide a common product definition

component, and it is applying CSC e4 principles

across the entire insurance enterprise to achieve

unprecedented integration capabilities.CSC e4 is

allowing the insurer to rapidly launch products

without major modifications to its legacy systems.


Framework forEnd-to-End Processes

Microprocesses can be defined asdiscrete organisms, enabling complex

interactions in the physical world to bemore easily managed in the digital world.

Vehicle

recovery

Private

Motor

Customer

inbound

Property

damage

Driver

Claimant

Verification

Policy

cover

Contents

Approved

repairer

FNOL

Approved

repairer

Repairer

Case

management

Assignment

Workflow

Approved

supplier

Inspection

Estimate

Settlement

Reserve

Image

Loss

adjuster

Salvage

Expert

estimating

system

Fulfilment

Investigation

Fraud

Third Party

Procurement

Medical

report

Bodily

injury

Negotiation

Liability

Negligence

Supplier

Catastrophe

Statement

Payment

Payment

mechanism

Coinsurance

Recovery

Recoveree

General

ledger

Reinsurance

Reports

Document

management

Accounting

Invoices

Payee

Litigation

Legal

management

Materials

Witness

Renewal

MIS

Final

Disposition

CSC e4 allows changes to be made at

the process level, rather than within

the underlying IT infrastructure, so

companies can:

React rapidly to changes in theenvironment

Model new or reengineered processes

Manage exceptions to processes

Collaborate with internal staff as well

as outside vendors and partners.


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EXTEND THE LIFE OF

LEGACY SYSTEMS

Legacy systems contain embedded value, but

financial services companies are often faced

with modifying these systems to address newbusiness and regulatory requirements or fix

troublesome IT processes. The ideal

approach is to extend the life of these

systems, rather than replace them. CSC e4

lets companies isolate and retain specific

functions of existing legacy applications, pro-

tecting their investments in these functions.

System functions are transformed into com-

ponents, which can be easily managed at the

business process level.

This flexibility lets companies switch offredundant or defective legacy functions and

replace them with new components.

Through mergers and acquisitions, for

example, life and health insurers could

inherit multiple commission manage-

ment systems. Using CSC e4, insurers

can choose the best in-house system or

implement a new component, bypassing

the now redun dant legacy functions.

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Managing the Financial Services Enterprise

BusinessPartners

Agent /Consumer

Internet

Enterprise Gateway

BusinessProcessManager

BPM

Enterprise Manager

Adapter Adapter

Adapter Adapter Adapter Adapter Adapter Adapter Adapter Adapter Adapter Adapter Adapter

Pensions P&C Life & Health Banking

Customer PrintingWorkflow

&Imaging

GeneralLedger

HR

Payments Receipts Parity Compensation

Enterprise ApplicationsLegacy Applications

Customer

New Business

Underwriting

Product Mgt.Claims

Actuarial

Commissions

Payments

Receipts

Customer

New Business

Underwriting

Product Mgt.

Claims

Actuarial

Commissions

Payments

Receipts

Customer

New Business

Underwriting

Product Mgt.

Claims

Actuarial

Commissions

Payments

Receipts

EnterpriseManager

CSC e4 allows companies toisolate and retain valuable legacy

system functionality whilereplacing troublesome or

redundant applications such aspayment systems.

Customer

Deposits

Loans

Cards

Credit Ins.

CRM

Servicing

Payments

Receipts

CSC e4 allows companies to protect their

existing IT investment with the ability to:

Install new commercial software

components to replace legacy functions

Switch off unwanted or defective legacy

code

Extend business services through an

enterprise portal

Modify existing IT systems to address

regulatory changes.

CSC e4 also makes it easier to introduce new

functions, for example, to address regulatory

changes such as new guidelines for ant i-

money laundering or on-hand capital

reserves, with minimal changes to the

base code.

Combining enterprise integration and portal

technologies, CSC e4 is the ideal framework

for a Web portal solution; for example, to

expose a banks portfolio of financial services

offerings to multiple distribution channels. A

single browser-based screen can extend core

banking services to customer service repre-

sentatives, branch offices, automated teller

machines, merchants and remote

business partners.

BusinessUsers


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ENHANCE TH E SUPPORTING

SYSTEMS ENVIRONMENT

The traditional approach to enhancing the

legacy systems environm ent is to migrate

both functions and data onto a new

platform. Although sometimes necessary,

full-scale consolidation of multiple systems

onto a single platform is seldom practical or

desirable. Apart from the difficulty and risk

inherent in such projects, this approach

discards years of development effort inexisting systems. In many cases, these legacy

functions are key differentiators in the mar-

ketplace and are closely tied to a companys

brand identity, such as excellence in

customer service or rapid response to claims.

CSC e4 allows companies to take a multi-

threaded approach, combining software

consolidation and integration with the

introduction of new software components,

as appropriate.

In the life and pensions sector, for example, a

company may need to completely overhaul

its legacy applications but have an immediate

need for new compensation management

software to strengthen relationships with

agents and brokers. CSC e4 allows the

company to quickly plug in new software for

compensation management and take a

phased approach to the replacement of other

systems, such as policy administration, asset

management and reinsurance.

CSC e4 acknowledges the inevitability of a

multi-application, heterogeneous environ-

ment , and it allows financial services

companies to make enhancements much

more rapidly. IT managers can respond to

immediate business needs and develop a

long-term technology strategy. CSC e4 gives

IT managers the ability to isolate business

services in gradual phases and an overar-

ching blueprint for exploiting BPM capabili-

ties in the future.

EVOLVE BUSIN ESS MODELS

TH ROUGH COLLABORATIO N

Financial services companies are constantly

assessing their core competencies and the

role that business processes play in their

overall value network. While business

process outsourcing and the use of low-cost

offshore resources can deliver significant

savings in non-core areas, the benefits of

these relationships are generally limited to

increases in efficiency.

In the future, greater value will be gained

from relationships that go beyond the scope

of traditional outsourcing arrangements to

allow companies to evolve their business

models.A companys core competencies the

characteristics that are true market differen-

tiators can be extended outside the bound-

aries of the traditional enterprise with CSC

e4. Often, these differentiating characteristics

are manifested in IT systems.

5


Having recently overhauled its software

portfolio through the development of a new

common integration architecture,CSC e4,

CSC goes to market with a strong proposition

for insurance.The key features of the solutionare its openness and component-based

structure which,coupled with CSCs services

capabilit ies, will appeal t o insurers looking to

progressively overhaul their architecture.

Datamonitor

Traditional Modern

Divestiture

Acquisition

Acquisition

Acquisition Acquisition

Divestiture

Alliance

Alliance

Alliance

IPO

IPOCore

EnterpriseCore

EnterpriseJV

JVJVJV

JV

JV

JVJV

JVJV

IPO

JV

Acquisition

Divestiture

Divestiture

Traditional structure: (sector, whollyowned business, stability)

Modern structure:(SBUs, JVs, IPOs, Divestitures, Acquisitions, Partnerships,

Strategic Alliances)

Changing Business Models

The ability to use software applications tocontrol discrete operational components

allows companies to retain only the functionsthat are critical market differentiators whilecollaborating with other parties to gain com-

plementary capabilities.

CSC e4 facilitates the enhancement

of supporting systems by giving

companies the ability to:

Avoid time-consuming and costly systems

migrations

Strengthen systems through a

combination of consolidation, integration

and introduction of new components Meet immediate business needs for system

enhancements

Position systems to achieve long-term IT

and BPM strategies.


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6

In the virtual business model, these business

functions become disaggregated components.

Companies can cease to perform certain

activities by outsourcing them and simultane-

ously offer outsourcing services around theircore competences. Companies can collaborate

in a virtual warehousing, distribution,

servicing and risk management network.

To achieve a virtual model, financial services

companies must have systems that facilitate

the open exchange of information. Through

the use of industry standards, CSC e4

provides the framework for collaboration,

enabling companies to easily integrate with

systems outside the traditional enterprise.

CSCS COMMITMENT TO CSC e4 IN

FINANCIAL SERVICES

Software Based on CSC e4 Principles

With one of the worlds largest portfolios of

insurance and banking software, CSC is

uniquely positioned to help financial services

companies transform business processes and

IT systems. CSCs software is designed to help

firms exploit the full power of CSC e4.

Drawing on CSCs experience in architectural

frameworks and reusable components, CSCscore processing engines, work management

tools and expert systems can be easily config-

ured and rapidly integrated with other

mission-critical applications. CSC has worked

with organizations such as ACORD in the

insurance industry and IFX in the banking

industry to develop definitions of open

standards for XML interfaces. CSC applies

standards, best practices and integration

methodologies to deploy pre-built adapters

that in tegrate CSCs software, other vendor

software and legacy applications in a single,

logical environment.

Process Her itageAs the firm that pioneered business process

reengineering, CSC has deployed process-

based architectures since 1998, well in

advance of todays marketplace for popular

BPM solutions. CSCs heritage in process

reengineering and our process-centric

methodology Catalyst have contributed to

the development of CSC e4 and our capabil-

ity to deliver it. CSC plays an active role as

co-founder of the Business Process

Management Initiative (BPMI.org), a leading

group defining process technologies. CSCalso contributed to the development and

adoption of Business Process Modeling

Language (BPML).

Consulting and Systems

Integration Services

CSC provides comprehensive systems engi-

neering, software engineering and process

engineering services. In addition to business

strategy, IT integration and process architec-

ture design, CSC can assist with the selection

of components, process models and project

management. CSCs consultants suppor t

CSC e4 projects with process analysis and

re-engineering, and they can provide

training to build process expertise. Unlike

other approaches that generate only

diagrams, processes developed using CSC e4

tools are directly deployable due to the

process semant ics inherent in CSC

e4 components.

For more information about CSC e4,

call +1.800.345.7672 or send an e-mail to

[email protected] and refer to CSC e4

in financial services.

CSC e4 allows financial services

companies to:

Evolve business models by extending

core capabilities beyond traditional

boundaries

Collaborate with a broader range of

companies in the value chain

Rapidly integrate systems to establish

new outsourcing relationships

Achieve greater value from IT systems.


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Computer Sciences Corporation

Financial Services Headquarters

Global/Americas

200 West Cesar Chavez,Austin, TX 78701

+1.512.275.5000

Fax: +1.512.338.2341

Asia

139 Cecil Street

#08-00 Cecil House

Singapore 069539

+65.221.9095

Fax: +65.6223.0305

Australia

26 Talavera Road, Macquarie Park

Sydney NSW 2113, Australia

+61(0)2.9034.3000

Fax: +61(0)2.9034.3999

EMEA

Royal Pavilion

Wellesley Road, Aldershot

Hampshire, GU11 1PZ

United Kingdom

Tel: +44.1252.534000

About CSC

Computer Sciences Corporation helps clients achieve strategic goals and profit from the use of information technology.

With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core

businesses, collaborate with partners and clients, and improve operations.

CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them.

CSC is vendor-independent, delivering solutions that best meet each clients unique requirements.

For more than 40 years, clients in industries and governments worldwide have trusted CSC with their business process and

information systems outsourcing, systems integration and consulting needs.

The company trades on the New York Stock Exchange under the symbol CSC.

About CSC in Financial Services

CSC distinguishes itself through its time-tested ability to plan, build and operate highly reliable, efficient and secure business

and IT solutions for leading financial services firms around the world. To complement its capabilities in consulting, systems

integration and outsourcing, CSC brings financial services industry knowledge and experience, a comprehensive portfolio of

financial services application software and an extensive network of industry and technology partners. More than 10,000 CSC

employees are dedicated to serving financial services clients, including more than 1,500 major banks, insurers, healthcare

organizations, and investment management and securities firms.

Designed and produced by CSCs UK Marketing & Communications department.

2004 Computer Sciences Corporation . Printed in th e U.K. 03/04.All rights reserved.

Worldwide CSC Headquarters

The Americas

2100 East Grand Avenue, El SegundoCalifornia 90245. United States

Tel: +1.310.615.0311

Europe, Middle East and Africa

Royal Pavilion

Wellesley Road, Aldershot

Hampshire GU11 1PZ. United

Kingdom

Tel: +44.1252.534000

Australia and New Zealand

26 Talavera Road, Macquarie Park

NSW 2113. Australia

Tel: +61.29034.3000

Asia

139 Cecil Street, 08-00 Cecil House

Singapore 069539. Republic of

Singapore

Tel: +65.6221.9095

CSC e4 in Financial Services

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