Identified
£50 million savings

BPM in government

Identified £50 million in savings, reducing outsourced centre from 900 staff to 150 while improving throughput and quality

Details

  • Unified front end
  • Automated work flow
  • Automated exception handling
  • Visual management
    and metrics
  • Accelerated application development

Challenge

  • Over 5 per cent of all cases are processed manually, as they cannot be handled using the existing IT systems.
  • A temporary solution to outsource this manual work had become a permanent part of the business process. The manual operation is costly and inefficient, providing a notably low value service with frequent and troublesome delays.
  • Most work was being conducted on a reactive basis, with no ability to proactively identify and chase bad debt.
  • Operating costs needed to be substantially reduced in order to bring the agency into line with overall Government spending targets, yet improving end customer focus and delivery.

Project Scope

  • Process optimisation and automation successfully delivered within a 4 week timescale and at a cost of under £50,000.
  • Full solution implementation is expected to go live in summer 2011.
  • T-Impact team used IBM Business Process Manager (formerly Websphere Lombardi Edition) to automate the manual business processes and provide other operational efficiencies.
  • Included real time tracking and analysis of payments processing, implemented in IBM Business Activity Monitor (BAM).
  • Other aspects implemented included Payment Management and recovery, Payment and Account Reconciliation, and Document Management.

Business Benefits

  • Financial savings of over £17 million per year over a three year period, £14 million in year one after investment in process automation. Additional £2 million savings from decommissioning old IT systems.
  • Productivity savings of nearly 80% on a process by process basis - full automation removed around 90% of the touch time and work effort required.
  • Significant improvements to the interface between the department and the public; increasing both the effectiveness of communication and the immediacy of data for public consumption.
  • Proactive communication using SMS text messaging - ability to send reminder texts to both payer and payee as a regular touch point and during exceptions management.