Whitepaper

LEAN DIGITAL
SM

LEAN DIGITAL:
FOUR STORIES,
REIMAGINED

genpact.com/leandigital
 TABLE OF CONTENTS

Abstract............................................................................................................3

Today’s challenge in harnessing digital

technology and analytics.............................................................................3

An illustrative example:
Reimagining the engagement with banking clients............................ 4

Finance and Accounting example:

Order to cash cycle......................................................................................11

Life sciences example:

Pharmacovigilance and adverse event monitoring............................13

Industrial manufacturing example:

Internet of Things (IoT).............................................................................15

Conclusion:
The need for a better approach to digital.............................................17

GENPACT | Whitepaper | 2
 ABSTRACT Digital’s impact is very unevenly distributed. The data
shows that the gap between leaders and the average
The impact of digital technology and analytics is organization is significant, and calls for a better approach
revolutionizing and changing competitive dynamics that enables more enterprises to embrace digital
across industries—from financial services to transformation successfully.
manufacturing. However, a significant gap exists
between leaders and other companies. Many large and
established enterprises with entrenched organizational Only 33% of significant IT

silos and operations that are saddled with pre-existing projects fully successful.
20% for large projects6 53% cost, 72% duration
overruns in ERP deployment8
technology are struggling to leverage digital solutions
Despite Agile coding, operating
to deliver game-changing results. For such companies Enterprise tech adoption takes
model change is long, rigid
a more actionable approach to digital transformation is 4 years longer
required. Lean Digital is one such approach—harnessing Only 35% of operational
than analysts predict9

digital technology and analytics through a business- executives see strong benefits from
digital implemented so far7
domain lens, it uses Lean and human-centered design-
thinking principles to derive solutions that are practical
and effective to implement. Chart 2

The root of these challenges is not necessarily technical in

TODAY’S CHALLENGE IN nature. Organizational and strategy hurdles are the key to
HARNESSING DIGITAL unlocking the potential to capitalize on opportunities. Many
TECHNOLOGY AND companies are lacking the ability to deploy enough of the

ANALYTICS right talent to overcome them. This ultimately results in the

ineffective and inefficient engagement of end customers.
Digital technologies and analytics are changing everything,
creating heightened executive expectations. Advances are
altering how individuals and organizations interact, and 52% state legacy systems are one of the biggest hurdles;
change management is close second10
opening up radically new possibilities for value delivery.
Exploitation of hyper-scalable technologies that enable Only 20% align well the interventions
both exponential growth and a reset to conventional with business objectives, resulting in
scope and prioritization mistakes10
cost-quality-speed trade offs are disrupting and redefining
entire industries. The API1 economy allows companies to 4 out of 5 don’t re-architect
quickly offer new services by expanding and integrating processes end-to-end
the capabilities of existing applications, while phasing out from front to middle and back office

ineffective ones, and eliminating costly rip-and-replace

cycles. Chart 1 shows some key indicators pointing at a Chart 3
very dramatic, yet varied picture. What can be done, knowing that the amount of
available resources is finite, and the complexity of most
Material impact witnessed and expected large enterprises has grown since the last comparable
technology inflections, i.e. the inception of internet and the
3X-10X fintech disruptors’ better ubiquitous adoption of ERP?
cost structure than incumbents. E.g. 1
Application Programming Interface
overall mortgage costs can be cut 70% 45% of activities can 2
Genpact/LinkedIn research 2014; 900 operations executives North America and Europe
be automated today4 3
Innosight/Foster/S&P
$208 million McKinsey Quarterly, “Four fundamentals of workplace automation” November 2015
4
per year expected
Survey in collaboration with sharedserviceslink - 100 executives responsible for business
64%
5
from “radically better use of technology” of companies5 have operations. 71% of companies participating have annual revenues of over $1 billion
on average across industries2
“high” or “very high” emphasis 6
https://www.bcgperspectives.com/content/articles/technology-business-
on digital technology and analytics transformation-technology-organization-largescale-it-projects June 2015
67% of S&P 500 will churn within 10 7
Survey in collaboration with sharedserviceslink - 100 executives responsible for business
years in this environment3 operations. 71% of companies participating have annual revenues of over $1 billion
8
Panorama, 2014 ERP Report
9
Genpact Research Institute analysis of analyst firms data
Chart 1 10
Survey in collaboration with Harvard Business Review Analytic Services, 2016

GENPACT | Whitepaper | 3
 AN ILLUSTRATIVE networks and into lower-cost channels, such as web,

EXAMPLE: REIMAGINING telephone and IVR (interactive voice recognition), email,

chat, etc. Results of recent research11 conducted with 7,100
THE ENGAGEMENT WITH adults across US, UK, Germany, Netherlands, Sweden and
BANKING CLIENTS Australia, show that this strategy is still a work in progress,
This example is intuitively understood and can and the majority of end customers aren’t fully delighted
help illustrate challenges and opportunities across with their experience through those alternative channels.
industries and functions. The web, by far the most mature of them, is somewhat
The impact of digital technology is possibly felt the of an outlier, but even web interactions are only effective
strongest in financial services, as those firms are in many in transactional scenarios, such as reviewing account
respects “technology companies that move money”. For a balances and making payments. The customer experiences
long time, banks have attempted to migrate much of the with wealth management, or the purchase of a financial
routine customer interaction away from expensive branch instrument such as a loan, are still far from ideal.

New channels’ limited use and satisfaction

100
UK(18-34)-Web
AUS(35-54)-Web
AUS(18-34)-Web
NED(18-34)-Web
NED(35-54)-Web
US(35-54)-Web
US(18-34)-Web AUS(55+)-Web
GER(35-54)-Web UK(35-54)-Web
GER(18-34)-Web US(55+)-Web
NED(55+)-Web AUS(18-34)-Mob
80
NED(18-34)-Mob UK(55+)-Web

US(18-34)-IVR US(35-54)-IVR US(18-34)-Email US(18-34)-Mob

NED(35-54)-Email AUS(35-54)-Mob
AUS(18-34)-Email
US(55+)-IVR US(35-54)-Email

Web
AUS(35-54)-IVR GER(55+)-Web
AUS(35-54)-Email NED(18-34)-Email
AUS(18-34)-IVR NED(55+)-Email US(35-54)-Mob
GER(35-54)-Email US(55+)-Email
UK(18-34)-Mob
60 AUS(55+)-IVR GER(18-34)-Email AUS(55+)-Email
UK(35-54)-IVR GER(55+)-Email

IVR Email
US(18-34)-Chat NED(35-54)-Mob
UK(18-34)-IVR GER(18-34)-Mob
NED(18-34)-IVR
Use

UK(55+)-IVR GER(18-34)-IVR GER(55+)-IVR

AUS(18-34)-Chat UK(35-54)-Mob
US(35-54)-Chat
GER(35-54)-IVR AUS(55+)-Mob
UK(55+)-Email
UK(18-34)-Email UK(35-54)-Email
40 GER(18-34)-Chat GER(35-54)-Mob US(55+)-Mob
NED(35-54)-IVR

Mobile
AUS(35-54)-Chat
NED(35-54)-Chat NED(18-34)-Chat US(55+)-Chat NED(55+)-Mob
NED(55+)-IVR

Chat
AUS(55+)-Chat
GER(35-54)-Chat
UK(18-34)-Chat
GER(55+)-Chat UK(35-54)-Chat
NED(55+)-Chat UK(55+)-Mob
UK(55+)-Chat GER(55+)-Mob
20

0
.10 .35 .60 .85 1.10 1.35

Satisfaction

Products: Xfer= Money transfer, Check= Checking and savings accounts, Pmt= Payments, WM= Wealth Management,
Mort= Mortgage, CR/DB= Credit and debit services
Channels: Tele= Telephone (non-IVR), IVR= Interactive Voice Response, Branch= Physical branch, ATM= Automated Teller Machine, Web= Online banking website,
Chat= Online chat service, Mob= Mobile device used, Email= Electronic mail,
Post= Physical mail
Regions: AUS= Australia, GER= Germany, NED= Netherlands, UK= United Kingdom, US= United States

11
Genpact Research Institute and YouGov, 2016

GENPACT | Whitepaper | 4
Figure 1 illustrates the challenge with the customer journey and financial reporting through fragmented operations
for the purchase of a retail financial product, such as a often reliant on older systems. In other words, the
loan, where a front-office experience that is now digitally challenge cannot be overcome with digital enablement of
sophisticated and enjoyable clashes with the middle and only the front-office. A successful and satisfying customer
back offices. In the middle-office, decisions about a case journey can only be realized with a focused end-to-
are2 made and risk is managed in a comparatively people-
Challenges end solution that requires a robust, fluid and seamless
intensive operation using older systems of records. Back orchestration of processes that connect the organization’s
offices hold much of the data and perform the accounting front office with the middle and back.
THE ROOT OF MANY SUBOPTIMAL DIGITAL EFFORTS
LACK OF ATTENTION TO MIDDLE AND BACK OFFICE, NO END TO END SOLUTION
EXAMPLE: RETAIL FINANCIAL
Example: Retail financial product operations—no end-to-end solution
PRODUCT

FRONT-OFFICE
FRONT OFFICE MIDDLE-OFFICE
MIDDLE OFFICE BACK-OFFICE
BACK OFFICE
Now
Nowenabled withwith
enabled digital Hamstrung
Hamstrungby disparate data data
by disparate Fragmented
Fragmented andand
reliant on oldon old
reliant
front-end
digital front end sources
sources systems
systems

Figure 1
© 2016 Copyright Genpact. All Rights Reserved. 3

GENPACT | Whitepaper | 5
Indeed, our research confirms that only one-fifth of centered design). These practices put the end client at the
companies’ middle and back-end processes effectively center and avoid jumping in too rapidly with premature
support the front-end12. This situation results in not only expert or IT-led conclusions. In fact, what often creates
a frustrating experience for the customer, but also in customer delight is not technically complex, expensive, or
significant friction within the enterprise. As shown in figure singularly focused on functional necessities, but instead
2, the results can include a range of outcomes including long clearly aligns with people’s emotions. Simple tools that
cycle times, errors, suboptimal expense ratios, compliance create process transparency and allow the customer to
issues, and suboptimal Value at risk (VAR). feel in control, can go a long way. Mapping a finite number
of such customer journeys explicitly, and running fast turn-
A better approach to digital starts by organizing around experiments, often in lab or “agile development”
transformative interventions through the lens of the settings, is key to unlocking insights to fine-tune the
customer journey, ensuring that all efforts have a clear line solution. Thanks to practices derived from Lean principles,
of sight to the respective business impact. The customer those maps can illuminate the touch points across the
journey is better understood, and potential solutions enterprise, and cost-effectively guide interventions toward
explored, through design thinking practices (a.k.a. human the relevant areas of that experience.
THE RESULT – A DISJOINTED, COSTLY, RISKY EXPERIENCE
ONLY 20% OF COMPANIES’ MIDDLE/BACK SUPPORT FRONT END WELL*
EXAMPLE: RETAIL
Example: Retail financial
FINANCIAL PRODUCT product operations—disjointed, costly and risky ILLUSTRATIVE

CUSTOMER ENTERPRISE

Reconciliation
Forms too long Lengthy issues
authorization CFO/CRO
process for
underwriters
Unexpected
steps and Compliance
outcomes burden

Rework on
Price doesn’t critical steps
reflect the risk Suboptimal
profile VAR
* HBR Research 2016 * Value at risk
Figure 2 © 2016 Copyright Genpact. All Rights Reserved. 4

12
Harvard Business Review Analytic Services, 2016

GENPACT | Whitepaper | 6
Steered by that “true north”, processes can be streamlined the results that were obtained—from a cost, risk (e.g.
before being digitized, and augmented, not just actual default rates on loans), and revenue standpoint.
automated. In some cases, people and not machines are This corpus of data is particularly powerful in large
the most effective way to deliver services. For instance, companies, which by definition run thousands of natural
customer chats can leverage a combination of human experiments every day because of the expanse and
customer reps and artificially intelligent virtual assistants heterogeneity of their products and clients. By identifying
who support them. Machines don’t respond to the patterns, ultimately, through machine learning, and
customer in an unsupervised manner but can make the
harnessing the respective insight, financial services
rep more efficient by quickly finding alternative solutions
firms can continuously improve the way their operations
to a problem—such as the identification of the right “know
predict what will happen (e.g. a default), sense what the
your customer” forms. In this model, data is accessed
and transformed to insight, and then embedded into a client will do (e.g. seek to renegotiate), and act effectively
decision-making process entailing both machines and (e.g. access the collateral asset, or change the terms
people, at scale. This enables the fast processing of clients of the loan). Importantly, this will happen at scale, and
in scenarios or segments that are statistically “safe” and consistently across thousands of touch points.
hence don’t require additional checks and oversight.
This operating model transformation doesn’t only depend
With every transaction, digitally enabled operations can on digital technology, but it also requires analytics, Lean
record how and what was transacted, as well as assess principles, and human-centered, design-thinking practices.
3 Solution

A LEAN DIGITAL FINANCIAL

A Lean Digital financialSERVICES ENTERPRISE
services enterprise: a case study
ILLUSTRATIVE

FRONT MIDDLE BACK

Loan or P&C prospect wants Producers/underwriters’ struggle Legacy data structures,
convenience and speed with prioritization and complexity of applications hard to modify
cases from brokers
Uses broker CFO staff requires stability,
Risk teams need transparency standardization, compliance

Lean helps focus interventions: detected crucial end-to-end process idiosyncrasies, interdependencies and
waste across the customer journey; guided org design to scale; enabled agile deployment to adapt over time

Design thinking identified Analytics helped triage inbound Data platform and COE
key emotional drivers of broker requests, allocate cases by industrialized remediation of
behavior of clients and staff, complexity, prioritize by conversion key data (e.g. to avoid
helped iterate early process potential, optimize pricing based on frustrating requests to clients),
and technology prototypes risk and elasticity – and make and compliance documentation
process learn over time processing

Systems of Engagement are the agile technology foundation that harnessed data and work flows,
and industrialized them while minimizing displacement of pre-existing systems

The result: Smart Enterprise Processes that deliver superior client experience, as well as operational
efficiency and effectiveness that drive conversion, price premium, repeat business, advocacy,
conversion rates, cost, risk management, compliance. That’s impact – through Lean Digital.
© 2016 Copyright Genpact. All Rights Reserved. 15
Figure 3

GENPACT | Whitepaper | 7
 DIGITAL SOLUTION processes (e.g. which banker should process a client

PORTFOLIO IN ACTION case) are a significant improvement compared to

simple rule-based workflows typical of older systems
Delving into the tools and practices used, a sophisticated of records (e.g. banking core systems and ERPs). They
yet clear picture emerges that demystifies much of the can also trigger automated actions for machines to
current jargon. Consider the following use of these digital execute (e.g. automated issuance of a notification for
technology solutions, further illustrated in figure 4: the end client).

1. Robotic process automation (RPA) can industrialize 4. Machine learning is one of the most exciting digital
the input of data from customer relationship solution areas. It uses complex analytics to detect
management (CRM) systems, even when obsolete patterns and predict events with increasing accuracy.
or when integration through structured interfaces As an example, in the origination of a loan for the
(API) is complex. RPA can also extract data from acquisition of a productive company asset, machine
documents stored in older or disparate formats, such learning can power a sophisticated and scalable
as those from transactions related to different financial risk assessment – through financial spreading. This
products, or those inherited through acquisitions of encompasses the compilation of information from
third-party books of business. disparate structured and unstructured data sources,
and the creation of reports such as prospective P&L
2. Data science and data governance create an additional statements and balance sheets. Machine learning can
level of data enhancement, but they do so in a similarly help with detecting default patterns in specific
business-driven, focused way to avoid wasting effort on client segments more dynamically than analysts can do
things that are comparatively less material. While this with conventional tools (often Excel worksheets).
sounds obvious and intuitive, the actual “doing of data”
across IT, analytics and business silos often creates 5. Natural language processing (NLP) and natural
information asymmetries that result in effort duplication language generation (NLG) utilizes today’s
or simply in resources wasted on low-impact work. computing power and analytics to extract meaning
from documents containing unstructured text written
3. Dynamic workflows that utilize cloud-based by people (e.g. an email query) and produce narrative
technology and sophisticated algorithms to (e.g. response to a complaint) that is virtually
dynamically decide the sequenced assignment of indistinguishable from what a human could write.

Reimagining outcomes through lean and design thinking

FRONT-OFFICE
FRONT OFFICE MIDDLE-OFFICE
MIDDLE OFFICE BACK-OFFICE
BACK OFFICE
Full understanding of Aligned interventions, streamlined process, augmented by agile technology,
sources of value actionable analytics, global delivery, continuous operations learning

COO
Ad
dit
da iona
ta l
CFO
Robotic Process
Automation
(e.g. CRM data entry, Data science/
document extraction) governance
Continuous (e.g. Intelligent Process
learning Insight Engine - IPIESM)

Machine
Advanced
Learning
Visualization (e.g. automated
(e.g. sophisticated market financial spreading)
portfolio stress exploration,
seamless reporting) CRO Dynamic
NLP/G Workflow
(e.g. data (e.g. banker front
extraction/ end allocation, auto
normalization) letter generation)

Figure 4

GENPACT | Whitepaper | 8
 The unstructured nature of this content based on In the short term, changes to decision making at all
grammar and semantics is not fit for conventional operational levels, from business-line leaders to front-
technologies. The ability to extract and normalize this line employees, can be cascaded in a timely and effective
information to dynamically create text that can be manner, turning the insight derived from the data into
shared at scale, opens the door to many significant scalable action. In the longer term, these insights can inform
enhancements for critical business processes— broader strategy at executive and even board levels, with a
from quick interactions with clients and internal degree of accuracy and timeliness previously unattainable.
stakeholders, to the creation of financial reporting for

TACKLING LEGACY
use with external organizations.

6. Advanced visualization enables the reporting and OPERATIONS

exploration of complex, multi-dimensional data sets
for use by analysts and executives, where machine Unlocking innovative and disruptive opportunities requires
learning is not able or allowed to “finish the job”. For embracing digital technologies and analytics, but that
example, it can help the risk department with stress is not enough. The ability to understand, evolve and
analysis of certain parts of the credit portfolio, and complement pre-existing systems of records at every step
enable reorientation of investment guidelines to of the business process is also crucial. Compared to even a
optimize the VAR metric. decade ago, today’s average large enterprise is replete with
legacy ERP and other core business process technology
All these digital solutions enable the crucial systems. With some rare exceptions, often in front-end
documentation of how and why certain decisions were web interfaces, or CRM, there is very limited green field left
made, as well as the comparison of decisions and for digital solutions. The option to rip and replace existing
actions to business outcomes. The continuous learning systems is rarely fully viable. Older systems and related
and insights produced by operations leveraging these processes may not be fully amortized. IT may not have the
technologies is significantly different in both scale and capacity to support a wholesale change. Older systems
speed compared to what is achievable in most operations may be the host of key master data, or compliance-relevant
today—those reliant on rigid systems of records, poorly control points may be interspersed within these systems
documented standard operating procedures, and people such that any substantive change may generate significant
whose high-end skills are difficult to find. enterprise risk. Additionally, “shadow IT” prompted by the

Systems of EngagementTM leverages existing technology investments to catalyze new value

Business Process

Human
intervention
Systems of
Engagement

IT applications

IT Infrastructure
Figure 5

GENPACT | Whitepaper | 9
deployment of digital technologies in individual business steps instead of just automating them. For example, a
units without the direct purview of IT has the potential to reimagined process might eliminate credit extension steps
create significant risks minimizing effectiveness, efficiency if the respective machine learning analytics identify that
and threatening security levels. the delinquency risk is limited.

As a result, digital interventions increasingly leverage When deploying these types of systems, technologists
a specific class of software solutions called Systems of must look beyond traditional technology deployment
Engagement (SoE, see figure 5). SoEs are thin, nimble capability with a focus on understanding the data and key
solutions that are comparatively easier to deploy than integration points of the pre-existing systems of record
legacy technologies, and that integrate either through environment. Additionally, success will only be realized
by enlisting respective subject matter experts to work
APIs or even at a user interface level through RPA. The
cohesively across functional silos.
focus of SoE is on maximizing the impact of people who
manage those processes, sometimes by automating The impact, illustratively shown in figure 6, can be truly
steps, sometimes by enhancing their ability to execute transformative across a number of dimensions, from
3 Solution
(i.e. prioritizing activities). SoE often reimagines process efficiency to effectiveness.

A LEAN DIGITAL LOAN ORIGINATION (2/2) ILLUSTRATIVE

DRAMATIC IMPACT ON GROWTH,

Dramatic COST EFFICIENCY,
impact on growth, cost efficiency,AND BUSINESS
and business AGILITY
agility

FRONT-OFFICE
FRONT OFFICE MIDDLE-OFFICE
MIDDLE OFFICE BACK-OFFICE
BACK OFFICE
Full understanding of Aligned interventions, streamlined process, augmented by agile technology,
sources of value actionable analytics, global delivery, continuous operations learning

COO
 Operational  Interest rate
 Cycle time for approval cost cut 40% spread
22 days → 5 days 250bps →
 Customer set up first 280bps
time right 50%Continuous
→ 80% CFO
learning
 Losses 0.7% → 0.4% of assets
 Customer satisfaction  Delinquency (90 days past due) cut 40%
dramatically up
CRO
 Market share +20%

© 2016 Copyright Genpact. All Rights Reserved. 14

Figure 6

GENPACT | Whitepaper | 10
 FINANCE AND ACCOUNTING interventions, the situation, summarized in figure 7, reflect

EXAMPLE: THE ORDER TO results similar to what was illustrated in the example in
the previous section.
CASH CYCLE
In many Finance and Accounting (F&A) processes, the
order to cash cycle is a particularly good example to In times of slow growth, and once most of the
demonstrate what has been discussed. Order to cash has low-hanging fruit has been plucked in refining
important ramifications into the supply chain and sales. In front-end customer interactions, securing further
times of slow growth, and once most of the low-hanging
competitive differentiation is only realized
fruit has been plucked in refining front-end customer
interactions, securing further competitive differentiation is through tighter handling of supply chain and
only realized through tighter handling of supply chain and order management processes
order management processes. In the absence of deliberate
2 Challenges

THE RESULT – A DISJOINTED, COSTLY, RISKY EXPERIENCE

ONLY 20% OF COMPANIES’ MIDDLE/BACK SUPPORT FRONT END WELL*
Example: order to cash operations—disjointed, costly and risky
EXAMPLE: ORDER TO CASH ILLUSTRATIVE

CUSTOMER ENTERPRISE

Reconciliation
Forms too long
Lengthy issues
decision CFO/CRO
process
Unexpected
steps and Compliance
outcomes burden

Rework on
Price doesn’t critical steps
reflect the risk Suboptimal
profile risk profile

Figure 7 Research 2016

* HBR © 2016 Copyright Genpact. All Rights Reserved. 6

GENPACT | Whitepaper | 11
Similarly, the impact of many digital solution levers cash cycle enabling better decisions on demand planning,
and significant nuances to those solutions was also promotions, fulfilment and collections.
illustrated in Figure 4.
Figure 8, while populated with illustrative numbers,
RPA can perform customer master data setup, including captures the range of positive outcomes that can be
those acquired through mergers and acquisitions, at unlocked by an appropriate approach to end-to-end
unprecedented scale, speed and accuracy without transformation of the order to cash process.
mandating changes to any existing CRM systems. RPA
extracts data from documents that are stored in older or
disparate formats. Dynamic workflows use sophisticated
algorithms to decide workflow sequencing assignment,
Dynamic workflows use sophisticated algorithms
such as which agent should handle specific exceptions to decide workflow sequencing assignment, such
or disputes. Machine learning helps dynamically align as which agent should handle specific exceptions
credit limits and collection strategies to each customer’s or disputes. Machine learning helps dynamically
risk profile and assists order management analysts by
align credit limits and collection strategies to
eliminating manual activities and data lookups. NLP
helps parse contracts and unstructured external data to
each customer’s risk profile and assists order
inform the dynamic credit engine. NLG helps automate management analysts by eliminating manual
and expedite the responses to disputes. Advanced
3 Solution activities and data lookups
visualization then enables a global view of the order to
A LEAN DIGITAL ORDER TO CASH (2/2) ILLUSTRATIVE

DRAMATIC IMPACT ON GROWTH, COST EFFICIENCY, AND BUSINESS AGILITY

FRONT OFFICE
FRONT-OFFICE MIDDLE OFFICE
MIDDLE-OFFICE BACK OFFICE
BACK-OFFICE
Full understanding of Aligned interventions, streamlined process, augmented by agile technology,
sources of value actionable analytics, global delivery, continuous operations learning

COO
 Operational  Master data
 Touchless cost cut 80% accuracy
customer set 80% → 95%
up 60% → 90%
Continuous CFO
learning
 On-time-in-full orders  Past dues 5% → 1%
80% → 95%
 Revenue dilution due
 Customer satisfaction to leakages 10% → 4%
dramatically up CRO
 Market share up 5%
© 2016 Copyright Genpact. All Rights Reserved. 17
Figure 8

GENPACT | Whitepaper | 12
LIFE SCIENCES EXAMPLE: optimal. According to some estimates, up to 90%

PHARMACOVIGILANCE
of side effects from drugs are not reported. New
methods of patient engagement contribute to ever-
AND ADVERSE EVENT growing volumes of unstructured data containing
MONITORING insights rarely analyzed completely for AE. Reliance
on humans to capture, triage and report AE leads to
Effective detection and reporting of adverse events (AE) delays in reporting, inadequate capture of reportable
is critical to avoid breaching pharmaceutical industry events, and even failure to report as required by law.
regulations. The reality is that the pharmaceutical The process is time and effort intensive, and exposes
industry reporting of drug side effects is far from companies to material risks.
Example: ADVERSE EVENT PROCESSING (1 / 3)

THE CHALLENGE: AN EFFORT INTENSIVE, COSTLY AND

LARGELY DISTRACTING
Example: Pharmacovigilance COMPLIANCE
adverse event BURDEN
reporting—intensive, costly and distracting compliance burden
ILLUSTRATIVE

CUSTOMER/REGULATOR ENTERPRISE

Unreported
Ever-growing
AEs Effort data volumes
intensive
process
Timeliness
of reporting Compliance
burden

Duplicate data
Lack of entry
service Most AEs are
orientation not significant

* HBR Research 2016 © 2016 Copyright Genpact. All Rights Reserved. 7

Figure 9

GENPACT | Whitepaper | 13
 FRONT-OFFICE
FRONT OFFICE MIDDLE-OFFICE
MIDDLE OFFICE BACK-OFFICE
BACK OFFICE
Full understanding of Automation solutions, streamlined process, actionable analytics, global
sources of value delivery, continuous operations learning

Natural Ad
dit
Language da iona
ta l
Processing
(e.g. parsing, text
mining, topic mining,
Data Capture at theme identification)
Source Process
(e.g. call center, web, Automation
mobile, social media) Advanced
Continuous (e.g. MedDRA coding,
Visualization
learning seriousness,
(e.g. AE metrics, trend labelledness, causality,
analysis, risk reportability)
stratification, signal
management)
Machine Learning
(e.g. feature extraction,
sentiment engine,
auto-categorization,
self-learning)

Figure 10

NLP can help parse data from many sources such as automated categorization over time minimizing the need
social media, branded properties, mobile apps, AE call for human intervention. Finally, advanced visualization
center records and CRM records. It then organizes helps experts monitor AE trends, detect signals for
the data around relevant themes to identify important proactive interventions and risk management.
events. Automated rule-based
Example: workflows
ADVERSE EVENT categorize
PROCESSING (3 / 3) The benefit of such operations goes beyond compliance
themes by parameters, such as causality or seriousness, and cost, by providing a robust data-driven foundation
determine report-ability, and assign any exceptions to an for new therapies, better patient engagement, and
THE OUTCOMES: QUALITY,
analyst. Machine learning helps improve the coverage of
COMPLIANCE, FOCUS, EFFICIENCY
higher product revenue.
ILLUSTRATIVE

FRONT-OFFICE
FRONT OFFICE MIDDLE-OFFICE
MIDDLE OFFICE BACK-OFFICE
BACK OFFICE
Full understanding of Automation solutions, streamlined process, actionable analytics, global
sources of value delivery, continuous operations learning

 Touchless AEs 0% → 50%

 Data quality ~100%  Operational
cost cut 80%
Continuous
learning
 Compliance ~100%
 Increased vigilance on
high risk products

Figure 11 © 2016 Copyright Genpact. All Rights Reserved. 19

GENPACT | Whitepaper | 14
 INDUSTRIAL takes it through analytical engines to generate insights.

MANUFACTURING Then, the loop must be closed through operational and

EXAMPLE: INDUSTRIAL
engineering processes—at scale. Seamlessly integrating
and analyzing industrial asset performance and health
INTERNET OF THINGS data, with business systems using advanced industrial
The Industrial Internet of Things (IIoT) leverages the internet platforms like GE Predix, enables robust data
interconnectivity of machines and systems with sensors, management and governance across the life cycle of the
data, and analytics to enhance visibility and insights data ensuring its real-time and accurate view. Advanced
into the performance of equipment and assets. IIoT predictive analytics models anticipate asset failure
has the potential to drive significant industrial process and optimal maintenance schedules and costs, while
improvements; enhance quality, productivity, and overall helping trigger an automated machine response, an alert
operational efficiency; as well as increase growth and to an operator, or an indent for spare parts. Advanced
profitability in manufacturing and other sectors. Yet this visualization then provides relevant information to
transformation is slowed by similar challenges to the ones stakeholders across engineering, aftermarket services,
discussed previously. Digital technologies allow for the sales or finance, and allows scenario and simulation-
storage and processing of vast amounts of structured and based decision making. The ability to leverage
unstructured data, but the resulting overload of data in component micro services securely, such as in the
large legacy environments with operational silos makes it
digitally assisted optimization of the dispatch of
hard to generate actionable insights.
field engineers for the assets from multiple OEMs,
The reimagination of industrial businesses must focus on provides operational agility that is impossible in
the “plumbing” that combines usable, relevant data and conventional environments.

Example: Industrial Internet of Things—lack of end-to-end solution, not IT, leads to suboptimal results

TECHNOLOGY ANALYTICS OPERATIONS

Poor data
Ever-growing
quality
data volumes

Reliant on
legacy
systems

Effort
intensive Fragmented
processes

Figure 12

GENPACT | Whitepaper | 15
 SOLUTION: ORGANIZATION TRANSFORMATION
CROSS-FUNCTIONAL DIGITAL ENABLEMENT OF FRONT, MIDDLE AND BACK OFFICE

Asset Data Engineering Operations

Specific data delivered via Asset data gets aligned to respect business process, analyzed in context and
Industrial Internet platforms integrated within business operations, closing the Data-to-Insight loop.

CTO
Data management
(industrial data life cycle
management, from machine
to plant and enterprise)

Data integration
(securely connect to a Advanced
variety of machines
analytics
sensors, control Advanced COO
(predictive analytics for
systems, data sources,
and devices) Visualization failure forecasting, asset
(real-time alerts and reliability, service costs
insights delivered to etc.)
authorized users, at
workstations and on
personal devices,
worldwide)
Secure apps and Process
CFO Automation
component micro
(outage alerts,
services scheduling, spare parts
provisioning etc)

Figure 13 © 2016 Copyright Genpact. All Rights Reserved. 20

Such cross-functional digital enablement through through their use of digital technologies, $530 million
the holistic use of IT, analytics, process redesign and with IIoT-specific process redesign, and $446 million
advanced organizational structures can provide significant through advanced organizational models that leverage
competitive advantage and business agility. the IIoT. Those that are less advanced expect to achieve
a dramatically lower business impact from IIoT. These
Our recent research13 shows that more advanced users outcomes stem from a variety of benefits, such as asset
of IIoT technology and related analytics anticipate uptime, better data reliability, increased revenue, and
an average annual positive impact of $526 million obviously operational cost reductions.

13
Internet of Things critical to industrial firms’ success, yet many still unclear on execution strategy, says Genpact Research Institute

GENPACT | Whitepaper | 16
 CONCLUSION: THE NEED implementation methods that often leave both business
and CIO organizations dissatisfied. Lean DigitalSM
FOR A BETTER APPROACH harnesses digital technology and analytics through a
TO DIGITAL business-domain lens, and uses Lean and human-centered
design-thinking principles to identify solutions that are
There is a great opportunity to generate business impact practical and effective to implement.
with digital by connecting the dots across the enterprise, The result can be an intelligent operating model, where
between the front-end and the middle and back office business processes are able to predict and sense the
processes, rather than by focusing on the front-end environment, act appropriately at scale, and continuously
alone. A Lean Digital approach goes beyond traditional IT learn from the impact of their actions.

LEAN DIGITALSM
UNIQUE APPROACH THAT DELIVERS DIGITAL’S FULL POTENTIAL

PROCESS- DESIGN THINKING LEAN PRINCIPLES UNDERPINNED BY

CENTRIC DIGITAL METHODS FOCUSED FOR AGILITY AND DOMAIN EXPERTISE
TECHNOLOGIES, AND ON THE END CONTINUOUS
ANALYTICS CUSTOMER EXPERIMENTATION

GENPACT | Whitepaper | 17
 genpact.com/leandigital
About Genpact
Genpact (NYSE: G) stands for “generating business impact.” We are a global leader in digitally-powered business process
management and services. Our Lean DigitalSM approach and patented Smart Enterprise ProcessesSM framework reimagine our
clients’ operating models end-to-end, including the middle and back offices – to deliver growth, efficiency, and business agility. First
as a part of GE and later as an independent company, we have been passionately serving strategic client relationships including
approximately one-fifth of the Fortune Global 500, and have grown to over 70,000 people. The resulting domain expertise and
experience running complex operations are unique and help us drive choices across technology, analytics, and organizational design.

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©2016 Genpact. 82494_WP_LeanDigitalFourStoriesReimagined_US_062916