Business cases
Here are some customers challenges and how DEMS solved them
Business case n°1 :
Multinational Energy Sector/Oil & Gas Company – Exploration and Production
Customer Opportunity
- Reduce non-productivity of workforce
- Increase oil well production efficiency
Customer Problem Statement
In the past, our client had implemented a perfomance management system based on historical data to provide insights on minimising oil down time. Looking at historical performance data, engineers in the company focused on increasing uptime of each well with the highest priority placed on badly performing oil wells.
Thanks to DEMS, our client implemented a forward looking prescriptive Key Value Indicator. DEMS established a KVI which included the number of barrels planned to be extracted from the wells over the next 50 days. This KVI demonstrated that the focus should be on improving high production wells regardless of their performance. Needless to say, this was a different way of thinking about production for our client. DEMS was able to make transparent the defects that impact upcoming production. Their by reversing risk of 50% for upcoming production. With these new insights, our customer adjusted operational prioritisation to manage future impact.
GDE Key Value Indicator(s) applied
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Staff Productivity
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Production Volume
Customer Impact
DEMS identified over 50% of upcoming production at risk
Data Excellence Indicator Results 96.8% : 1240 objects impacting the value
Key Value Indicator Results : 1 billion CHF loss avoided
Business case n°2 :
Insurance – Premium Invoicing and Claims handling
Customer Opportunity
-
Improve cash collection
-
Improve customer retention
Customer Problem Statement
Our client, an insurance company, had an issue with cash collection on premium invoices. Via the DEMS application, Global Data Excellence linked the client’s business rules that governed contract values with the companies payment compliancy terms business rules. Via this linkage, a mechimism to correct and recovery these revenues was established.
At the same time, our client was using targets on claims handling (number of days for claims settlement) to drive customer retention (e.g. faster claims settlement = higher customer rentention.) In fact, the customer retention was falling. By deploying the contract claims value to the claims handling times, we established that although the average handling delays were good, this was mainly due to low value contracts and claims at the expense of low performance on the high value contracts and claims, leading to key account retention problem. With this new KVI, the claims handling is now prioritised correctly.
GDE Key Value Indicator(s) applied
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Contract Amount
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Claims Amount
Customer Impact
- GDE identified premium contract terms non-compliance representing 5% of total annual turnover of our client.
- As well, uncovering strategic error in customer rentention targets.
Business case n°3 :
Food industry – Supply Chain Strategic Sourcing
Customer Opportunity
-
Reduce Sourcing Cost
Customer Problem Statement
Before applying DEMS, a global food manfacture had limited transparency to the volume of suppliers providing certain food ingredients. After applying DEMS, our client was able to establish a key value indicator on production cost versus sourcing cost. Linking the two cost in DEMS provided the necessary visiblity to improve the rationalisation of the client’s sourcing of food ingredients. The application of DEMS made transparent the client’s high value streams within it’s supply chain. And, provided the client the ability to determine ongoing consolidation of suppliers and improvements.
Business case n°4 :
Telecom – Post merger inventory management and cash collection
Customer Opportunity
-
Rationalisation of saleable inventory following a merger
-
2B USD in unpaid Invoices
Customer Problem Statement
Following a merger, a telecom giant needed to reduce its’ number of saleable items. By linking, via DEMS, the product sales amount to product parameters such as features, a massive reduction and phase-out plan was delivered for half of the 300,000 saleable items.
The client also had a cash collection issue and had engaged costly collection agents. By linking amount of contractual payment terms from two pre-merger ERP systems, we found that 40% of invoices were wrongly issued and saved significant collection cost.
GDE Key Value Indicator(s) applied
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Invoice Amount
-
Sales amount by product
Customer Impact
-
Number of saleable items reduced from 300,000 to 150,000, reducing global operating cost by 5%
-
Identification of 40% unpaid invoices due to wrong payment terms
Business case n°5 :
Banking – Loan approvals
Customer Opportunity
-
Reduce the number of loans refusals due to data errors
Customer Problem Statement
A (small) bank found that too many loans were refused based on wrong data. Via DEMS, we linked loan approval data such as age of applicant to the disapprovals and identified the losses due to structure data issues.
GDE Key Value Indicator(s) applied
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Loan Value
Customer Impact
-
Identified 20M USD deposit loss due to defecting clients following loan refusal
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Identified 1.5M USD missed loans
Business case n°6 :
Air Transport – Partner Accreditation
Customer Opportunity
-
Effective data migration
Customer Problem Statement
An airline trade association was migrating a partner accreditation database to a new system and realised that the data for determing bad payers was faulty. This could lead to unwarranted partnership terminations or loss of funds through undetected fraudsters. By defining a KVI, via DEMS, on potential and realised settlement losses and associating them with payment history, we were able to locate faulty data for critical cases and fix them. This reduced the data correction load by 95%.
GDE Key Value Indicator(s) applied
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Settlement loss
Customer Impact
-
Avoided 50M USD in future trading losses
Business case n°7 :
Supply Chain – Customer and Vendor Management, Packing and Product Formulation
Customer Opportunity
Customer Problem Statement
The implementation of a new data governance framework and a value based management of data led to the creation of a task force to improve the entire supply chain. For example, custom checks and delays were avoided through way bill quality improvements; customer cash flow was improved through first time-right invoicing and production improved through data quality improvements in resource management.
GDE Key Value Indicator(s) applied
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Invoice Amount
-
Product sales
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Purchasing amount
Customer Impact
-
Recurrent business improvement
Business case n°8 :
Banking – Net Asset Value
Customer Opportunity
-
Identify and correct discrepancy between calculated NAV and real NAV
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Loss of trades due to late or wrong NAV Calculation
Customer Problem Statement
The bank had an almost complete disconnect between the centrally managed NAV calculation and the NAV valuation used in operations. In theory the bank shouldn’t be able to trade but in practice the operations team had developed massive workarounds that took up a lot of resources. By implementing wrong and late NAV calculation KVIs, we identifed the structural cause for this breakdown down to the specific errors and accountable/responsible individuals.
GDE Key Value Indicator(s) applied
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Net Asset Value amount
Customer Impact
-
Structural problems with NAV calcuation with 2000 funds identified
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