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Case studies .
Target operating model for public sector .
A major public sector organisation required a supplier to manage the collection, administration and enforcement for their BPO operation. Through a re-tendering process, the organisation wished to achieve a step-change in the cost of providing the services; an uplift in revenue (from £3.7b in 2010/11) by improving licence fee collection rates through innovation and process improvement; enhance public acceptability; and ensure collection service continuity throughout transition.
- Partnered with Capgemini to offer a strategic alliance proposition delivering revenue growth, reputation enhancement, cost reduction and service continuity.
- Created an integrated Target Operating Model (TOM) with intelligence at its heart, focusing on customer service, data & analytics, strategy, arrears management, DCA panel management, field sales/collections & enforcement.
- Design of arrears management and field solutions including DataEye® performance dashboard, collections specific analytics and scoring, new civil litigation process and advanced agent training.
- selection of new outsource partners on arrears management and field.
Initial client benefits
- Designed a TOM delivering all requirements and drivers.
- Cost reduction through consolidation of operations, technology drivers, customer insight and extending customer universe.
- Forecast £35m savings benefit per annum accrued through sales & self-service, customer service, back office, arrears management and field & prosecution.
- Further savings delivered through Arum’s influencing of partners, including below average margin and costs reduced by £9m over life of contract.
- Detailed analysis identified a £230m annual revenue uplift after TOM implementation.