LINQ is enabling the financial sector to highlight the cost of manual, inefficient and expensive processes – building the business case for change.
Exposing the true cost of inefficient systems
Banks are using LINQ to model their internal information flows which are often highly manual, inefficient and expensive. Processes such as loan or credit card applications can use multiple systems that lack integration, therefore people plug the gap, manually transposing information from one system to another.
LINQ is enabling business to expose the cost of these inefficient information flows, and to help build the case for change. LINQ has proven that in some cases the cost of current processes, including the latency of the information flow, is so expensive that small to mid-level loans cost more to process than the value of the interest earned against the loan over the repayment period.
Speeding up understanding
An investment management firm was mitigating their risk of regulatory non-compliance by mapping processes using legacy “boxes and arrow” modelling tools. They were looking to reduce the time taken to capture information and increase its value by finding opportunities for re-use.
When using LINQ to put information flow at the heart of their mapping process they found the speed of capture was five times faster than when using legacy tools. They also discovered they were capturing information so universally understandable and relevant it could be reused multiple times across the organisation.
LINQ reduced capture costs by 80% and increased the value of the captured information.
A multinational payment gateway company had grown through acquisition, and as a result had multiple systems which performed the same role across a new business group. This was inefficient and duplicated information and processes. The group wanted to consolidate their operations down to single systems that provided the internal capability needed.
In order to understand the costs and benefits associated with each system, and the associated processes and resources needed to operate them, LINQ was used to model the current state. LINQ enabled the conversation between the group so that a decision could be made regarding a way forward.
By focusing on information that supporting outcomes, the emotion can be removed from the conversation so that decisions are made based on what is best for the business. Change can be described in terms of information, action, system and people. Inputs and outputs supporting critical operational needs can be maintained as systems are migrated.