Convince Finance Management CCM is a Compelling Solution
Each month, we will be featuring an “Ask the SMA Expert” article from Strategy Meets Action. This month’s featured question is answered below by Mark Breading, SMA Partner.
Q: “We are in the process of developing a business case to pursue a new CCM application. Any insights on what we should focus on to convince our finance management that CCM is a compelling solution for our business?”
Business justifications for CCM solutions vary widely, since the technology may be applied to many different parts of the business. The cost/benefit case for finance may be significantly different for an insurer looking for an enterprise-wide solution for digital content creation and delivery vs. one focused on solving a problem for a specific business unit or department. Even so, there are some general guidelines that often prove useful in putting together the CCM business case that demonstrates a strong return on investment to the finance group.
As in any IT project, the business case should link the results directly to key business initiatives and metrics, while also identifying the specific cost savings that are expected. The finance group is likely to look at the “hard” benefits of cost savings first, but the “soft” benefits of contributions to key business initiatives will also factor into the decision. For CCM projects, there are a number of business initiatives and cost savings that could be included in the business case, depending on the scope of the intended CCM implementation.
Linking to Key Business Initiatives
Enabling business users to create and manage documents may contribute to one or more important business initiatives, such as:
- Enhancing the customer/agent experience – by providing well-designed, personalized documents to customers, with the option of e-delivery.
- Improving marketing campaign effectiveness – through the creation, monitoring, and management of digital campaigns and the ability to rapidly revise campaign materials.
- Increasing customer satisfaction – based on customer statements, letters, and other documents that are accurate, timely, and personalized.
- Reducing claim severities – via more frequent communications with claimants to keep them apprised of the status of their claim.
- Improving billing options and accuracy – providing more readable statements and e-billing options.
Identifying Cost Savings Opportunities
Implementing CCM solutions naturally results in improved employee productivity, reduced paper, optimized print/mail operations, and improved compliance. All of these can be translated directly into cost savings. Modern CCM solutions can produce big cost savings in each of these four areas – again, with big variations based on the business area and scope of the project. The design and automated management of templates plus modern composition tools make it easy for business users to create documents that can save significant time for employees. Insurers are beginning to offer more and more options for e-delivery, which reduces paper costs, print/mailroom costs, and postage. CCM solutions that provide advanced tracking of versions and audit trails enable insurers to improve regulatory compliance, which can save tens or even hundreds of thousands of dollars in fines.
Wherever possible, it is useful to pilot a new CCM solution to get specific data on the types of improvements and cost savings that will be possible in a specific environment.
Mark Breading, SMA Partner
Source: Document Solutions