Mizuho Bank: Reengineering the processes of a global corporate business
Optimize by going paperless
Reduce work processing time
Increase business quality by "visualizing" operations
"Paper was once at the center of our global corporate business. Now we have incorporated Pega to reengineer our procedures in order to automatize our operations without relying on tacit knowledge. We are now able to develop applications quickly using agile software development which enables rapid implementation in the United States."
The Business Issue
- Revise the paper-based mode of operations dependent upon tacit knowledge
- Implement global operational excellence
- Automate internal operations
- Remove the need for manuals or training
- Global standardization
Mizuho Bank built the key principles of “Customer First” and “Operational Excellence” and is currently advancing their medium-term management plan known as Progressive Development of "One MIZUHO" under 5 In-house Company System.
The Global Corporate Company, one of In-house Companies which is developing global business are expanding their operations overseas by establishing new offices in numerous locations and actively engaging with major foreign financial institutions and government agencies.
Along with their international expansion brief enrollment staff has increased in their overseas offices. This has resulted in a number of issues due to cultural differences in operational procedures as well as differences in work culture.
Specifically; difficult to understand rules and procedures, unclear systems of authority and delegation of duties, and a lack of assistance for employees with less experience or tacit knowledge, have left operations functioning poorly. This has then resulted in an increase in cost, business bottlenecks, and a decrease in employee motivation. An inefficient paper-based system was especially problematic and a burden on decision makers within the company.
The company urgently needed to reduce dependency on some employees and enable automatic operations and decision making on a branch and regional level. They would do this through reorganizing their target operating model and establishing new business guidelines.
Simply implementing a workflow was not enough, going completely paperless and removing the need for manuals was necessary in order to reorient business procedures. After careful examination of customer feedback and regions that showed operational excellence, sixteen out of twenty global mega-banks switched to Pega.
The Pega platform is not only used for documenting organizational regulations and methods, but also used to define processes and business rules, implement user interfaces, and removes the need for manuals and training, which enabled intuitive operations. The DCO (Directly Capture Objectives) was also used to implement requirements defined by feedback and requests from on-site staff to successfully build a user-friendly system. The direct input and validation of data, as well as the distribution of necessary digital documents, has resulted in successful implementation of completely paperless operations.
Speed is key with digital transformation. The cutover for the first phase of American implementation took three months to complete. Functions were then expanded upon during the following months which led to successful early implementation. With the use of Pegasystems' Situational Layer Cake technology regional and location specific definitions could be laid on top of shared global definitions, allowing for quick and simple development of applications for the regions of East Asia, Europe, Asia and Oceania.
Many achievements were brought about thanks to the project's speedy success. The pursuit of paperless operations has resulted in a significant reduction of workload and work processing time, as well as increasing the overall business quality.
User satisfaction has also increased and regional requests for further development are on the rise.
Global Corporate Coordination Department as the center of the advancement of this project were able to balance the standardization of operations on a global level as well as delegate authority to staff onsite. They were also able to successfully build a visualization of the company's global position and a system for monitoring it.
Pega's business process management and case management systems serve to build business applications which provide desirable results and improved end-to-end customer experience.
Pega's low code makes developing applications faster than conventional methods. With the business model users can quickly grasp what their business needs, and automatically generate applications and document audit trails, reducing development costs by up to 75%.
Industry: Financial Services
Product Area: Platform
Challenge: Business Agility
Challenge: Operational Excellence