13 October 2010

1. The Four Waves of ECM InnovationSoftware Group Comes to You 2010Derick DeleoWW ECM Technical Professionals Executive 13 October 2010

2. Instrumented Interconnected Intelligent A Smarter Planet harnesses today’s information explosion for business benefit … • … driving a need for better • Enterprise Content Management • Managing essential content anywhere • Governing information over its lifetime • Optimizing processes that rely on content • Deriving unexpected content insights

3. 1990 2000 2010 2020 The explosion of information 80% of new information growth is unstructured content – with 90% of that unmanaged The volume, variety, and velocity of information is driving unprecedented complexity– and opportunity

4. Today’s reality of ability vs. responsibility How easy is it to research information and documents held on your own internal systems compared to the Web? For 72% it’s harder to find information they own … than information they don’t own * • * AIIM Industry Watch Survey (March 2010) Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, governance and compliance

5. ECM in context: Contract Lifecycle Management Storage & Management Administration & Compliance Renewal & Optimization Draft Negotiate Approve Supplier Legal Automatic Renewal Notification Approval Hierarchy ECM CRM ERP Finance ECM Customer Classification Retention Security Procurement Process & Performance Analysis ECM Line of Business

6. Shifting approaches to maximize the value of enterprise content Traditional ECM Approach Moving Toward … Dedicated and costly to customize Modular, easy, cloud and appliance enabled Siloed, isolated, closed and departmental Collaborative, federated, open, enterprise Manual and reactive Governed, proactive, confident and trusted Process efficiency Process effectiveness Search centric … finding information Analytics centric … uncovering insights

7. Application Type Enterprise Case Management (Claims, Enrollment, Exception Processing) Departmental Content Based Workflows (Accounts Payable, HR, Review & Approve) Scan & Retrieve (Scan, Store and Retrieve) Email/Content Archive, Records Management & Electronic Discovery (Archive, Retain, Search, Hold, Cull, Review) Self-Service Access (Search, Access, Web Content, Portal) Knowledge Worker Collaboration (Team Rooms, Wikis, Blogs) Unknown Negative Break Even Nominal (<25%) Moderate (~25 - 50%) Significant (>50%) 3-year ROI Source Doculabs 2010 Typical ECM return on investment experienced by Doculabs across numerous ECM engagements

8. Wave one … Why content management is foundational and essential to every organization Optimization Trusted Content Analytics Advanced Case Management Information Lifecycle Governance Essential ECM Automation

9. Four foundational Content Management initiatives are key to driving out unsustainable costs and improving Departmental or Line of Business efficiencies Reports and Statements Images and Forms Knowledge Worker Documents Unified Access / Leverage of Valued Content

10. Ball State University improves information access while going green Business Challenge • Provide University faculty and staff with better access to information • Help improve productivity and optimize organizational performance • Reduce production printing costs Smarter Business Outcome • Facilitates intelligent aggregation and delivery of content regardless of where it is stored • Expected to reduce printing costs by 50% • Significant time savings enabling staff to spend more time on student outreach and organizational growth • Innovative learning opportunities that give students a competitive advantage in the job market “With IBM ECM all of a sudden information is available—as it’s needed and where it’s needed.” — Charles Tuite, Lead Enterprise Content Management Architect, Ball State University

11. Goodyear drives invoice processing automation • Doubled invoice volume without increasing Akron processing headcount • Repurposed 12% Akron invoice processing positions (so far) • Increased accuracy of invoice information presented to SAP • Increased efficiency for the Accounts Payable organization and the invoice approval process by implementing workflow on Lotus Notes in conjunction with automated capture • Increased compliance management efforts for Goodyear vendors

12. Challenge Solution Large City Government • Business benefits • Holistic view of citizen information • Improved data quality via MDM cleansing and citizen self-service reviews • Improved security and decreased workload • Standardized data model view without impact to existing agency applications •  time / cost to develop new queries and integrate additional health services •  performance and data quality due to coherent, normalized indexing • Silo’d access to agency specific content systems, unable to share data between agencies. • No single view of citizen, disparate records with different data models • High employee dissatisfaction and turnover • Content Federated Services provides a consistent, unified view of each citizen’s records even though the content is distributed across multiple city agencies • FileNet P8 as a master catalog, leveraging Content Federation Services, Content Integrator and Master Data Management to provide a coherent, normalized index of critical vital records. 12

13. Wave two … How governing information reduces your legal risks and governance costs Optimization Trusted Content Analytics Advanced Case Management Information Lifecycle Governance Essential ECM Automation

14. Frequency of Access and Use Time A Standard Model for Paper, Data and Content Information has a lifecycle requiring proper disposition Expiration Roughly 95% has a retention policy … very little should be kept forever Born Digital Over 90% of information is born digital … and the rest should become digital

15. Information Lifecycle Governance

16. Expanding the value of your repositories by governing information over its lifetime Automate decisions, clean up legacy data – save up to 17 cents per document Control Growth, remove duplicate data – reduce storage costs by 50%-80% Enforce records retention to reduce eDiscovery and storage costs by 50-80% Decommission unnecessary content, cut costs by up to 80% Optimize eDiscovery decisions to reduce costs by up to 80% Leveraging a common infrastructure accelerates cost reduction

17. French National Railroad (Societe Nationale de Chemin de Fers) SNCF Needs: • Global Unified Archiving Solution of structured data and unstructured content through a common ingest and processing model. • A common policy and software solution for Records retention and management • Ability to decommission legacy databases and fileshares • Reduce database back-up and restore; optimize production servers and storage capacity. • Improve ability to meet Compliance demands for finance and railway transportation authorities. • Single, easy-to-use retrieval interface for ticket sale transactions and all related documents for a customer trip, for over a thousand SNCF authorized users. The Challenge • SNCF has historical transactional ticket databases, file shares of related content (mail, invoices, orders, office documents), and other financial systems that are growing and unmanaged. • Currently unable to address multiple compliance requirements around: • Financial reporting Read-Only Storage of Archived Data • Records Retention & Management • Difficult to find all pieces related to a ticket transaction. • Stored in multiple places, manual process to find and retrieve. The Solution • IBM Optim™ Data Growth • IBM Content Collector for File Systems • IBM FileNet Content Manger • IBM FileNet Records Manager • IBM FileNet eForms SNCF needed a unified solution, with a common records management policy and record retrieval capability, to manage and archive both structured data as well as unstructured content (such as documents, email, invoices and orders). The IBM strategy for unified archiving fits SNCF's requirements, and therefore SNCF selected IBM solutions including Optim, Content Collector, FileNet, FileNet P8 and eForms. We expect that the IBM solution will yield significant cost savings and increase compliance. Pascal Leborgne – SNCF Project Manager 17

18. Halliburton Challenge Business Benefits • SAP running at peak performance • Saved millions by eliminating off-site storage fees • Saved hundreds of thousands of dollars annually in late payment fees • Improved efficiency • Processing over two million invoices annually impacting database performance • Major delays in receiving paper invoices • Online access to invoice image for approval • Audit Solution • IBM FileNet Image Repository • IBM FileNet Application Connector for SAP R/3 ““When you consider the annual cost of off-site storage for backup documents over seven years, which is how long we’re required by law to keep backups of our accounting documents, we’ve saved millions of dollars by archiving them electronically in the FileNet system.” Mark Hickok, System Administrator, Halliburton

19. Blue Cross Blue Shield, TennesseeGain Control: Know, Manage and Leverage Your Content • The Challenge • Quickly adapt to industry and government regulations • Reduce cost and risk of responding to legal discovery requests for email and files • Reduce, consolidate and share information to produce better customer outcomes • Flexibility to quickly scale and expand to meet future business needs The Solution • IBM Content Collector to ingest and dedup Microsoft Exchange and future File System content • IBM eDiscovery Manager to search, cull, and export case-relevant content for eDiscovery • IBM eDiscovery Analyzer to analyze discoverable content previous done via an external firm • Future growth options for seamless integration of IBM Classification Module to determine which content has business value and Records Manager for proper retention/disposition of corporate records • IBM ECM platform for consolidating, sharing and activating information • Business Benefits • Automated workflows aligned to business needs • Archived content is accessible from other applications resulting in better business outcomes and eliminating silo’d information • Improved control over content prior to it being archived • Consistent rules and policies across multiple content types • Over 400,000 daily e-mails and attachments are archived and indexed for rapid search and retrieval • Significantly reduce the size and cost of handling litigation of investigation data “IBM’s approach is simple and straight forward. We now have a solution model that meets our immediate business needs for archiving, retention and compliance and provides a lower cost, lower risk method to expand and integrate key capabilities to meet our future plans.” -- Andy Jacobs, ECM and Collaboration Lead Architect, BlueCross BlueShield of Tennessee 19

20. Thomas Miller GroupGain Control: Know, Manage and Leverage Your Content Business Benefits • 30,000 daily e-mails and attachments are archived and indexed for rapid search and retrieval capabilities • 23 million e-mails retroactively archived in case relevant format and eDiscovery ready • Deep compression and single instance storage functionality reduced storage space by 60% • Full search & retrieve eDiscovery capability makes it easier for users to comply with legal demands • Users benefit from unlimited mailbox management The Challenge • Industry and government regulations and legal discovery drove the need for a more effective method of managing, retaining and producing electronic information in a timely manner. The Solution • IBM Business Partner, Neocol, implemented the IBM eDiscovery solution on the existing Wintel architecture and installed a separate 3.3 TB disk array • IBM eDiscovery provides search, legal hold, and export of case-relevant archived email for discovery purposes • IBM Content Manager manages all e-mail content across multiple platforms, databases and applications • IBM CommonStore for Lotus Domino provides e-mail archiving and retrieval, and manages growth for any Notes database or server platform “IBM’s e-mail management offerings provided us with the stability and functionality that we needed to address and meet our e-mail archiving, retention and compliance regulatory requirements.” Rashid Mahmood, Lotus Notes Systems Manager, Thomas Miller Group 20

21. Wave three … takes workflow and BPM to the next level with Advanced Case Management Optimization Trusted Content Analytics Advanced Case Management Information Lifecycle Governance Essential ECM Automation

22. Why Case Management?because new challenges have emerged The volume and variety of information can be overwhelming…and it is arriving faster every day Access to expertise is imperative to quality decision making Knowledge workers in all industries must do more with less… Regulatory or legal risks impose need to consistently adhere to critical policies and rules Flexibility is essential to responding effectively to opportunities or threats Automation has handled the routine, exceptions are now the norm, many automated processes are outsourced …yet business needs to improve service and manage risk while optimizing costs

23. There are collaborative, ad-hoc processes Activities are event-driven Work is knowledge intensive Content is essential for decision making Outcomes are goal-oriented The judgment of people impact how the goal is achieved Process is often not predetermined What is Case Management? bringing people, process and information together … in context of a case A solution pattern where… For challenges such as… That requires unique capabilities from… • Complex exception handling • Complaint or dispute management • Contract management • Lending applications • Benefits enrollment • Rate case management • …that are both horizontal and vertical in nature • Content management • Business process management • Collaboration tools • Social software • Business rules • And analytics

24. A “case” may be expressed differently in various industries Invoice, Contract, Employee, Vendor, Customer, Project, Change Request, Complaint, Exception, Incident, Audit, eDiscovery, etc… However, a common pattern of challenges exists across all industries 24

25. IBM Advanced Case Management • IBM is building an advanced case management platform that unites content, process and people • Customers can start from investments in any of these capabilities and expand into advanced case management • IBM is delivering optimized case outcomes through analytics, rules, collaboration and social computing • Advanced case management supports work management of structured and unstructured activities • Advanced case management delivers trusted information to the case – both content and structured data • Advanced case management can uniquely manage the entire case lifecycle including retention and governance requirements • IBM has the broadest portfolio of case management capabilities and the most extensive ecosystem of case management solutions • IBM is improving time-to-value with better tools, more out of the box solutions and templating capabilities

26. Case Design for the Business Easy to use, wizard-driven Comprehensive across case assets Leverage templates for a fast start Significantly shortens time-to-value for case-style applications Case Application User Experience Roll-based and personalized Flexible and extensible Provides deep context for case work Brings people, process and information together to drive case progression and better outcomes Designed for the knowledge worker

27. North Shore Credit Union leads with innovation Business Challenge • Streamline business processes so existing staff could manage the increased workload while strengthening customer service. What’s Smart? • Credit Union staff can leverage all forms of information for a complete view of the customer, streamline business processes, and capture documents electronically for easy access and storage. Smarter Business Outcome • $100,000 CAD annual savings due to improved business processes • 70% reduction in deficiencies in customer-facing processes “With IBM ECM, we’ve streamlined and optimized business processes to drive a recurring savings of more than $100,000 annually.” - Fred Cook, Chief Technology Officer, North Shore Credit Union

28. JM Family improves customer service and employee productivity Business Challenge • Lack of visibility into customer service interactions around automobile loans and leases • Bottlenecks due to many audits in approval steps Smarter Business Outcome • Processes cut from days to just minutes • Handle more loans with current resources • Improve customer service and information quality • Customer service associates focused on exception-based processes, with greater knowledge sharing across departments “The major business objectives in our organization are excellence in customer service and increased productivity of our associates. IBM ECM is a key enabler of these objectives.” - Keith Tempinski, Director, Enterprise Content Group, JM Family Enterprises, Inc.

29. Wave four … uncovering unexpected business insights with solutions based on Content Analytics Optimization Trusted Content Analytics Advanced Case Management Information Lifecycle Governance Essential ECM Automation

30. How useful is Content Analytics? • What is most frequently occurring? • Why is there a higher occurrence between these dates? • What are the trends and why are they occurring? • Is this a normal or an unusual result? • What types of people, living where, are saying this and why?  • Can I find an image that matches this one? • Has this been mentioned before in this context? • How can I know what I don’t know? N=484 Non-trade

31. ExtractedConcept Claimant: Soft Tissue Injury Person Injury Body Part Location Noun Verb Noun Phrase Prep Phrase How Content Analytics works Analyzed Content (and Data) John sprained his ankle on the step ... Source Information Internal (ECM, Files, DBMS, etc.) and External (Social, News, etc.) Automatic Visualization for Interactive Discovery and Assessment

32. Optimize Demo Scenario: Medical Device Manufacturer 2 Interactive Discovery (ex: trend & outlier analysis) 1 Source Content (ex: device incident reports,customer emails) Action 3 4 (ex: prepare for recall) Collect / Archive / eDiscovery (collect, classify, trust, archive, retain and eDiscover relevant content) Operational Reporting (ex: BI dashboard including content metrics)

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44. Optimize Demo Recap: Medical Device Manufacturer 2 Interactive Discovery (ex: trend & outlier analysis) 1 Source Content (ex: device incident reports,customer emails) Action 3 4 (ex: prepare for recall) Collect / Archive / eDiscovery (collect, classify, trust, archive, retain and eDiscover relevant content) Operational Reporting (ex: BI dashboard including content metrics)

45. Content Analytics enables business optimization Smarter Insurance Smarter Telecommunications Large Claims Third-Party Administrator Analytics over insurance claim files helps detect fraud faster, reducing costs for their clients by $millions and optimizing the claims-handling process NTT DoCoMo Analytics over Voice of Customer data provides insight to drive customer-oriented decision making, boosting loyalty and creating new opportunity Smarter CPG Smarter Healthcare Plans Kraft Australia Analytics over online customer postings helps Kraft target and deliver new branding campaigns, increasing sales and customer loyalty Blue Cross Blue Shield of TN Analytics over an integrated single view of plans, patients and providers enables better negotiations and improvesprovider satisfaction to over 90%

46. Advanced Case Management & BPM • Content-centric BPM • Advanced Work Management • Case Analytics Trusted Content Analytics • Content Analytics • Content Assessment • Master Content • Enterprise Search Essential Content Information Lifecycle Governance • Production Imaging & Capture • Enterprise Report Management • Office Document Management • ECM Standardization • Content Collection & Archiving • Advanced Classification • Records Management • eDiscovery Management Key Takeaways • IBM ECM will continue to lead and innovate for our customers • Build on core foundation to maximize value • Start today with both case management and analytics for improved ROI • Utilize skilled business partners and IBM resources to accelerate and simplify ECM deployments

47. Let's build a smarter planet ibm.com/software/ecm Derick Deleo ddeleo@us.ibm.com