Process Orchestration: Benefits for Insurance, Financial Services and Telecommunications


While process orchestration can serve as a critical element in any industry, industries such as insurance, financial services, and telecommunications are playing a leading role in implementing this practice to adopt their digital transformation initiatives — here’s why, says Amy Johnston, Senior Product Marketing Manager at Camunda.

People, process and technology. While these three terms are keys to successful digital transformation, the process part of the equation has often been given less priority than investments in shiny new systems and critical job skills.

But that is changing. More and more organizations are taking steps to automate processes that have hampered their overall efficiency as well as their ability to deliver more engaging customer experiences. In theState of Process Automation 2022report, nearly nine out of 10 organizations plan to invest more in process automation over the next two years. More than 80% say technology is higher on their organization’s priority lists than a year ago.

Why is interest in process automation growing? Part of the reason lies in the processes themselves. The processes are becoming more and more complex. As industries evolve and transformations become more sophisticated, one business process invariably influences and connects to many others. Processes cover many different endpoints, ranging from business rules to RPA bots, microservices, work performed by people, and various types of legacy and internally developed systems.

This presents a challenge for businesses today. To maintain control over complex and interdependent processes, they must embrace an emerging concept called process orchestration. Process orchestration unifies and coordinates individual tasks into end-to-end processes. It enables organizations to move forward with business transformations without replacing the people, systems, and devices they already have.

While process orchestration can serve as a core element in any industry, a few sectors play a leading role in implementing the practice. These include insurance, financial services and telecommunications.

Learn more: Orchestration: the next step for RevOps

Insurance

Insurance has arguably faced a longer road to digital transformation than any of its peers. He struggled with outdated legacy systems and in-house automation software that wasn’t built to scale. Add to that the inherent lack of visibility and strategic oversight of the industry, risks of key process failures, a complex regulatory landscape, and growing demand for seamless customer experiences, and insurance becomes a ripe candidate for the market. process orchestration.

Use cases such as customer onboarding, complaints handling, and underwriting are complex and involved. Breakdowns are usually based on the fact that these processes bring together a wide range of people working in different departments. These software systems are mixed and matched over the years, and the physical devices that capture and manage data along the way.

An auto insurance claim illustrates the complex nature of an end-to-end process that many of us take for granted. After a car accident, your first step is to call your insurance agent and explain the situation. You take a series of photos yourself. Then an underwriter comes out to photograph the cars and assess the damage. You complete a police report and upload the details via a mobile app. Back at the insurance company, a team enters data into a software application and sends the claim for processing.

Each of these steps is part of a chain of processes that could easily break down at any time and delay the payment of the claim. By applying process orchestration, the chain of automation is maintained and the claim follows its course.

Learn more: How Big Data, Analytics, and ML Can Transform Your Insurance Business

Financial services

Financial services face many of the same challenges as insurance trying to scale their

operations to succeed in an increasingly on-demand world. These challenges include moving away from legacy technologies, responding to the rise of cryptocurrencies, and implementing practices to deal with a complex and ever-changing regulatory landscape.

End-to-end process orchestration solutions can help financial services companies perform basic functions faster and with fewer human cycles. These include designing, managing, automating and improving customer onboarding, loan processing, payment processing, SDLC review management, ATM processing, fraud management , fund services, model reviews, trade reviews, Know Your Customer (KYC) processes, trade reviews, lending decision-making, and financial data end-of-day closes.

Fulfilling a loan application is a good example of a complex financial services process that requires automation. A person starts by applying for a loan on a bank’s website. If they are already bank customers, they are asked to log in so that certain data can be filled in automatically. This could trigger an automated credit check. Based on the credit score, the application may be automatically approved or automatically rejected, or there may be a “middle way” that flags the application for review by a loan officer. The loan officer reviews and may decide to approve the loan with different terms. The person is notified and invited to sign documents via a service like DocuSign. Final documents are sent and a hard copy is mailed.

Disconnected processes create the following problems along an automation chain:

    • Lack of end-to-end automation: Local tasks are not chained, leading to crashes in the process.
    • confusion: Stakeholders don’t have visibility into the entire end-to-end process, making it difficult to manage the project and track metrics.
    • Flexibility issues: It is difficult to change the process along the way because a change causes disruptions in other systems.

Telecommunications

Telecommunications is changing rapidly due to growing consumer demand for digitization and competitive pressure from new disruptive providers and business models. To streamline business practices, vendors are automating a wide variety of processes, including customer onboarding, order management, payment processing, claims handling, equipment replacement, network management, customer service and Know Your Customer (KYC) processes.

For an example of process orchestration in action, consider provisioning bandwidth for cable, Internet, or telephone services. Consumers expect services to be allocated quickly, but ultimately much remains to be done to identify how to ensure the availability of multimedia services. There are credit checks, security checks, engineering and billing tasks. Each requires access to databases and services and navigation through complex workflows to execute what, at first glance, may appear to be a simple transaction. Payment systems must be connected to third-party processes and steps must be added to handle transactions when a credit card is declined.

Implementing automated and orchestrated processes can provide secondary benefits. For example, telecom providers can launch campaigns and micro-offers. Process visibility allows suppliers to see when demand will be less than supply. If they are able to provide bandwidth quickly, they can launch marketing campaigns to sell services to maximize their ability to increase revenue.

Orchestrate success

While the technology and people aspects of a digital transformation are still critical to its success, organizations are beginning to pay more attention to process. Investing in automation – and coordinating automated processes – will help them improve efficiency and adapt to new challenges.

How do you use process orchestration? Share with us on Facebook, Twitterand LinkedIn. We would like to know!

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