Johannesburg, 10 Feb 2003
Working closely with IBM South Africa, Old Mutual has gained a strategic advantage in the local market by using IBM`s technology to create a single view of any given client no matter which division or authorised intermediary accesses the client`s information.
As with most large financial institutions, each of Old Mutual`s various product business units had its own separate database of clients - even though many clients own more than one product. That resulted in duplication of client information and an inability to get a comprehensive view of the client`s relationship and interactions with Old Mutual.
By consolidating the information in selected databases into one operational data store, Old Mutual`s new Group Client System enables the company to radically improve service to clients as well as design new, highly-tailored products based on a comprehensive, single view of each client.
The decision to create the Group Client System followed research into a possible customer relationship management approach in the late 1990s. Design commenced in 2000 and the system became operational by the end of 2001.
Says Old Mutual`s Group Business Solutions general manager, Frits Vleggaar: "It was an enormous job for many reasons.
Firstly, the high volume of clients and related stakeholders meant that we needed exceptionally powerful database capabilities. We split our operational and analytical databases for efficiency purposes. We also needed a real-time access infrastructure that was robust, stable and reliable.
"Secondly, we wanted to capitalise on a system of such size and power by extending it beyond administration into the customer relationship management (CRM), marketing and sales disciplines. We are now formally reviewing many of these business processes to exploit the Group Client System.
"Thirdly, there were the technical complexities of the project."
Initially Old Mutual wanted to get all the components of the extended system from one application vendor. However, research indicated that IBM`s approach of integrating best of breed components from various vendors into one tailored system was the better option.
The components of the new system include Siebel CRM technology, IBM`s customer information integration solution (CIIS) application, IBM`s MQSeries software acting as an integration hub between the CIIS client file and Old Mutual`s legacy systems, and an adaptor giving MQSeries access to CIIS.
CIIS, based on IBM`s insurance application architecture (IAA), works alongside existing operational systems to consolidate information from various sources.
IBM specialists from Ireland, the US and SA helped the Old Mutual IT and business departments customise CIIS to fit Old Mutual products, processes and CRM requirements.
Collaboration between Old Mutual, IBM (SA) and IBM Dublin in design specification resulted in the MQSeries adapter being built from scratch in Dublin and tested in SA.
And, an IBM specialist from the UK assisted the Old Mutual team with the customisation of the MQSeries integration hub.
The resulting solution is a global benchmark because, while CIIS has been implemented a few times elsewhere in the world, the inclusion of the MQSeries adapater and the principles underlying the Old Mutual architecture are unique.
IBM SA Financial Services Sector client executive, Anthony Faraday, says: "Because no one else has the support skills that we developed on this project, members of the IBM SA team are helping several large foreign corporate financial institutions with proof of concept for similar projects.
"But, a project like this is a team effort. We provided support, product knowledge, architectural and implementation skills, but it was Old Mutual`s team that built the system. And, without Old Mutual`s visionary and coherent approach to CRM, it would have been impossible to construct the right solution."
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