Next-gen core platform for debt relief and administration

By Banking, Clientcases

What they wanted
With increasing challenges of people struggling with debt, our client asked us to build a next-gen core platform to handle their operations and client interaction. This market-leading company experienced the need to maintain their competitive edge and reducing the costs to assist and help people in debt even better. With a capricious IT transformation past for the last 20 years, fast and high-end delivery was essential. Their financial and client administration process was highly manual and especially the postal and client interaction required a lot of back-and-forth, precious time and lots of information.

What we did
With all the requested requirements already documented, we started with a sizing in OutSystems. With this sizing we made a precise estimation of the work needed to be delivered. After a highly successful proof of concept containing the most important operational functions, we started building towards a first production deployment. Based on a Microsoft Azure cloud we integrated many third-party solutions to innovate and accelerate. By integrating with a new specialised DMS and a new innovative payment and bank accounts provider these processes were improved significantly. Delivery and innovation were the main driver for success as well as, harvesting value and lessons learned, preparing, and realizing the full IT with premium services, process, and organizational change.

What we achieved
Within a few months we build a supreme proof of concept, directly developed further towards a first production release for a small team. Growing in functionality the core platform was deployed step by step in the whole organisation. As IG&H we doubled the given organisational goals. The new core platform not only accelerates the processes and reduces costs; it also provides whole new capabilities. The focus of debt relief and administration changed towards a more people-oriented approach. Administration was the main workload, with the new core platform and innovations that changed, giving the employees more space to dive into the root causes of client and their debt struggle.

What they said
“The highest code quality combined with fast delivery we ever encountered in comparable large projects”

Award winning data driven mortgages

By Banking, Clientcases

What they wanted
To apply for a mortgage, you need to hand over dozens of documents. From salary slip till debt proof and a copy of your passport. The processing of all these documents takes a great deal of time and is more susceptible to fraud and error. This can be done smarter and better with data. To accelerate the handling time and decrease the number of errors, a leading mortgage lender asked us to make several processes fully data driven. In this way the lender became ready for the future.

What we did
We helped our client to implement data driven solutions to automate their mortgage process. Based on our extensive experience of delivering full straight through processing solutions, we helped our client to select the appropriate partners to process the relevant client-data. In short this came down to three main parts. The first part was the selection and integration of a tool (i.e. iWize and Ockto) to make direct data delivery by clients possible. The second part is related tot the selection of the right service provider which could directly process data into the back-office based on HDN-standards. The third part is about using government registers as a source of client data to increase the data quality and thereby complying with ever increasing due diligence regulations.

What we achieved
By taking a step by step approach, digitizing each process at a time, we were able to feed the agile sprints cycles in a controllable way so that the project was finished in time. Next to successfully transforming documents to data, we also helped our client coping with he impact of this change on risk management and compliance. Since most mortgages are applied for with the help of an intermediary, we successfully integrated the solution into an advisory package (in dutch: adviespakket). Now clients only have to use DigiD to log into the app and deliver the required data. After the data is checked, it is sent directly to the mortgage lender. The mortgage provider is now automating more and more processes and is becoming more and more data driven. In 2020 our client received an award for this innovation.

What they said
“A party that really has a lot of knowledge of the sector and knows what the most exciting developments are”. – CEO of a top-10 mortgage provider.

Defining the digital transformation blueprint for a Dutch insurer

By Banking, Clientcases

What they wanted
Our client created a growth strategy for the next 5 years, which exposed that the company needed to make a giant (digital) transformation to implement this strategy. To enable the organisation and IT to realise this strategy a decent design for the business model, operating model and IT were required.

What we did
As no time could be lost, an interconnected programme with three workstreams was created. Each workstream was jointly lead by an IG&H expert and one workstream owner by the client to ensure transmission of knowledge, buy-in, and fun. Deliverables were carefully aligned to create a plan with logic that carefully built upon all components.

What we achieved
In five months’ time a blueprint for the entire insurance operation was detailed. Market insights that were previously not available to the client were used, templates that enabled them to structure all blueprints are still used after IG&H has left and most importantly the workstream owners of the client could execute the plans that were created. The total transformation will take over 2 years time, but will result in significant improvement in customer service while decreasing costs by 10%.

What they said
“We are very satisfied. Excellent consistency across the workstreams, all deadlines were met and all stakeholders agreed.”

Go-to-market strategy for a top-5 independent insurance broker

By Clientcases, Insurance

What they wanted
After years of double digit profitable growth to a top-5 position in the market, the firm’s executive board realised a next step in their strategy was required as focus started to blur and key (market) insights were missing. They therefore wanted a futureproof growth strategy that would determine the growth path for the next five years, and in parallel would enable them to 1) simplify governance, 2) focus investments and 3) optimise their operations in line with this strategy.

What we did
We split the project in three phases to enable to cooperate with different stakeholders in each phase. Phase one concerned creation of a strategy based amongst others on unique insights in the Dutch market for distribution through our proprietary tooling “Distributiemonitor”, and the internal context. Phase two concerned the resulting priorities and phase three concerned the resulting actions to realise these priorities. Each phase started with a kick-off to create alignment on the deliverables and key questions, halfway there was a validation session to discuss prelimenary findings, and each phase concluded with a workshop on the conclusions and implications of the former. During each phase different sets of stakeholders were involved to ensure buy-in and a smooth transition after the ending of our engagement.

What we achieved
We were able to determine a growth strategy, with unique insights on the market and their own customer base, in under three months’ time. All resulting priorities and actions were co-created into implementation plans by the management team and IG&H to ensure logic, buy-in and feasibility in execution.

What they said
Client satisfaction, CEO: 8, COO: 9

 

 

Clientcase: AI-driven Commercial Credit Process

By Banking, Clientcases, Data science, News

What they wanted
Our client wanted to improve their commercial credit process for real estate clients and transform it to be more risk-based, data driven and efficient. This market-leading Commercial Bank experienced the need to maintain their competitive edge and contribute to company-wide cost reductions. Also important was the objective of freeing up capacity of their Front Office and Risk team specialists. These experts should focus more on new business, on innovation and on the biggest risks. Their commercial credit process was highly manual and especially the credit risk reviews required a lot of back-and-forth, precious time and lots of information.

What we did
We started by quickly building the value case and aligning the required stakeholders. Next, we introduced AI to largely automate the annual credit risk review cycle that was taking up thousands of hours each year. The client’s credit specialists trained our AI algorithms to assess the need for risk reviews. We used the specialists’ input and feedback to design the total solution in such a way that it was transparent, interactive and customizable. During a pilot the proof of value was highly convincing and the enthusiasm among specialists and senior management grew further. Then we started to use the AI model in practice, harvesting value and lessons learned, while preparing and realizing the full IT, process and Organizational change.

What we achieved
Within a few months the first AI model runs in production and automates >80% of all credit risk reviews. It outperforms the experts consistently in accuracy and helps redirect €500k annually in manual FTE.

AI not only accelerates the process and reduces costs; it also provides whole new capabilities. Using the AI model our client can now monitor risk on portfolio level and case level continuously. The model can also be used for quick scans of scenarios to spot which cases likely need first attention should the real estate market, or an individual client’s circumstances change. Building out new decision models for other parts of the process is in progress.

What they said
“Initially I was doubtful about the benefits of AI in real estate financing. The results have now completely convinced me”  – General manager Real Estate Finance –

Omnichannel distribution network design

By Casestudys, Clientcases

What were the client’s needs:

Due to crucial organisational changes, increasing online sales volumes, and continuous developments in the commercial propositions and product range, there was an apparent need to restructure the distribution network in order to:

  • Accelerate the desired commercial proposition
  • Support the omnichannel fulfilment ambition (for example with entirely interchangeable online/offline distribution channels, shop pick-up, shops storage)
  • Improve the efficiency, costs, and capacity of the distribution centre

What was our approach?

  • In collaboration with the management, we established the scale of the commercial proposition in order to facilitate it by deploying the new distribution network (e.g. the number of SKUs, channel mix, product features)
  • Development of a growth model for logistic volumes
  • Assessment of the current distribution structure, identification of problems/bottlenecks, and the execution of a fit-gap analysis with the growth model
  • Development of future warehouse layout, automation options, detailed processes, and IT/WMS requirements
  • Development of the business cases for every scenario, including the required investments and reduction of costs
  • Facilitating boardroom decisions

What did we achieve?

  • We developed a solid omnichannel concept for the distribution centre where inbound, storage, and picking activities for online and offline flows are integrated and supported by automated processes
  • Substantial cost reduction of 18-20% on the total distribution costs
  • The distribution centre has been structured in such a way that it will not just facilitate the current commercial ambitions but also those in the future

What was the client’s experience:

IG&H pools thorough logistic expertise and combines this with a pragmatic approach for an effective decision forming process based on facts.

4.8% profit margin increase and data-driven approach for leading logistics provider

By Clientcases, News

What they wanted
Our client, a leading logistics provider, had an urgent need to increase margin due to a sudden rise in operational costs. The company, which provides logistics services to over 30,000 customers, has a historically dispersed and fragmented commercial setup. Using differentiated approaches to tariffs components, it substantially lacked transparency on how prices were set across a mix of specific services (e.g. delivery and special parcels) provided to its customers. Furthermore, prices had recently been raised, requiring a new approach to increase prices again.

IG&H was asked to:

  • Leverage detailed insight into existing customer-level pricing and setup.
  • Develop a data-driven pricing strategy, starting with an initial campaign where intelligent logic, benchmarking, and margin analyses are used to introduce a more logical and sound argumentation for price increases.

What we did
Our first major step was to create a bottom-up pricing mapping based on the most important service offerings and surcharge components on a customer-by-customer basis. Additionally, we identified operational and contractual KPIs that could provide a basis for customer-specific price increase suggestions and argumentation. Following this, we classified customers to compare product mix and price components like-for-like. Based on previous insights, we developed a logic to intelligently suggest new prices per customer, targeted towards a top-down 5% margin increase.

The second step involved the launch of an interactive comprehensive dashboard for 140 sales professionals. The goal: benefit from the newly gained insights and enable simulations of the proposed price increases. A thorough argumentation for the negotiations was storylined to support the salesforce. This was further elaborated upon during a two-day sales conference, which we also organized to further introduce the negotiation methodology based on pricing evidence and to increase suggestions made by the tool. Furthermore, we ensured that the salesforce received hands-on training and practiced with the tool, providing a solid foundation for implementation in the field.

Our third step consisted of tracking compliance as well as monitoring progress of the entire negotiation process down to the customer and product levels. This provided a foundation for increasing the effectiveness of sales professionals in achieving their goals. Also, it allowed for timely steering on different management levels. Finally, it enabled organic testing of pricing elasticity and implemented logic to refine our proprietary setup in the future.

What we achieved
Within a short, five-week timeframe, we went from collecting pricing-relevant data from various sources to delivering:

  • A 4.8% profit margin increase.
  • Institutionalization of a more sophisticated, data-driven commercial approach to pricing and negotiations.
  • Increased awareness of the power of data science in an inherently complex setting. This was confirmed by a continued engagement in operations. Also, we kept building the in-house capability for this client.

What they said
“IG&H is a very pragmatic and strongly output-oriented consultancy with a strong data science capability. The consultants rapidly understood our requirements and developed an actionable approach, perfectly integrated with our teams and organization, and delivered great results in a very short period of time.”

Predicting sales using data

By Casestudys, Clientcases

What they wanted
For our client, a large non-food retailer, promotional folders are essential: a significant revenue share originates from folder products. But sales forecasts were on average off by 100% (volume weighted MAPE) resulting in excess stock, tied up working capital, sharply increased operational complexity and added discount pressure. Our client wanted to move away from an opinion and anecdotal-evidence based forecasting system toward a rigorous historical data driven estimate.

What we did
Using our proprietary data engineering algorithms we started by unifying data from 35+ disparate data sources into an automated and centralized database with a complete end-to-end product level view incorporating 100+ product characteristics, e.g. size, color, and type.

Using our database structure we deployed a collection of gradient boosted regression trees and additional statistical techniques to make product-level predictions of folder sales. We improved forecast accuracy by 60 percentage points. Key predictive variables were seasonality, markdown amount, price, article category and location of the product within the folder.

What we achieved
Given the significant improvement in forecast accuracy, our algorithm was implemented in core business processes. Today, roughly 80% of our model forecasts are used as a final sales estimate. Because of this, the supply chain management team can focus its attention on the remaining forecasts where the math just doesn’t cut it. In these predictions the value is provided by retail sector insidership and other unique human insights.

Our applied combination of human expertise and mathematical precision results in a reduction of 22% in handling complexity, a 20% reduction in excess stock, and – most importantly – the start of a data driven culture.

What they said
“This is pure gold.”

 

Taking master data management capability and awareness to the next level

By Casestudys, Clientcases

What they wanted
For its new online platform, this organization wanted to have all product data available and improve data quality. Furthermore, a shift in mindset was required to become data-driven: the value of data should be seen as a relevant topic within commercial business lines and commercial programs.

What we did
We adopted a two-phased approach: while building the fundament, it was also possible to realize short-term impact. Our program was set up around four must-win battles with high client involvement. There was approximately 50 FTE involved, and we needed to enable a cultural change. Furthermore, we encouraged the business through a hands-on supportive approach, creating a highly constructive atmosphere. For example, we organized many workshops and sessions. Finally, our Agile approach provided a solid ICT fundament, focused on prioritized deliverables in sprints. This was combined with the realization of quick wins in the form of process improvements.

What we achieved
Data processes have gone live and product data were 100% ready to enable the online platform. Revenues were around €1 billion in 2015. Four key processes have been redesigned and implemented, resulting in a uniform way of working. Moreover, reports are being generated, and there is reporting governance: operation is steered through both operational KPIs and data-quality KPIs. Also, a clear cultural change has been established, facilitating a data-is-revelant-for-all-attitude.

What they said
“IG&H gave structure to the approach and thus increased throughput significantly. It contributed considerably to establishing the necessary cultural change and attitude towards data and data quality

Strengthening #1 market position of GAMMA in a fast-changing retail landscape

By Casestudys, Clientcases

What they wanted
GAMMA has been dealing with a >20% shrinking market since 2009. Furthermore, new competition – from online to discount to foreign traditional players – has been entering the market from all directions. Meanwhile, the organization needs to meet fast-changing consumer expectations and needs all the time. The question was: “How do we ensure a future-proof business considering these circumstances?”

What we did
Based on data-driven market and customer insights, we realized a clear repositioning by placing focus on where to dominate, differentiate, or follow the market. Moreover, we translated the positioning into assortment strategy and category business plans. Together, we also redefined and simplified 23 functional categories, bringing them back to 6 customer-oriented experiential worlds. Finally, marketable service propositions were defined, followed by an Agile implementation approach.

What we achieved
We have realized a repositioning strategy in a mere 50% of the regular lead time. The assortment strategy has been renewed, leading to 8% revenue growth. Furthermore, the marketable service propositions de-risked the potential market share decline. Also, the first result of the pilot store has been a revenue increase of x%.

What they said
“We feel that we have full ownership of what we have co-created. IG&H has taken the lead by setting a direction, but has also adapted by listening carefully at the same time. Working with them on the project has been a pleasure.”