Nim See Seng Leasing facilitates growth with new IT landscape

Published on 21-Mar-2012

Validated on 01 Oct 2013

"Because DB2 Business Intelligence tools enable NSS to perform predictive analysis on the business transactions and financial histories of customers above the real-time data flow, loan applications from existing customers can be reviewed and approved in half the original time. " - Customer spokesperson, Nim See Seng

Customer:
Nim See Seng Leasing Co. Ltd.

Industry:
Financial Markets

Deployment country:
Thailand

Solution:
Enabling Business Flexibility, Information Infrastructure, Optimizing IT, Smarter Computing, Virtualization, Virtualization - Server

IBM Business Partner:
A&A Neo Technology

Overview

With a total of 290 branches under the Nim See Seng group, the Nim See Seng Leasing Co. Ltd. (NSS) is one of the largest leasing companies in Northern Thailand. The group has an aggressive plan to grow its business across the whole country.

Business need:
Nim See Seng (NSS) wanted to better respond to customer requests as its operation was expanding. To facilitate growth, NSS needed to improve the efficiency of its IT infrastructure and reduce costs.

Solution:
NSS’s web ERP application now runs on an IBM® Power® 710 Express server virtualized with IBM PowerVM® software. Backup and disaster recovery is handled by an IBM Power 520 Express server, which replicates data in real-time.

Benefits:
All data is managed in the same centralized database. Loan applications can now be reviewed and approved in half the previous time, and automated blacklist alerts have reduced fraud by 50 percent.

Case Study

With a total of 290 branches under the Nim See Seng group, the Nim See Seng Leasing Co. Ltd. (NSS) is one of the largest leasing companies in Northern Thailand. The group has an aggressive plan to grow its business across the whole country.

Addressing the challenges of growth
“Our company relies on a web application called NimSoft, which integrates our loan, payment, legal, banking and accounting systems. In order to reach their growth targets, we realized that we had to improve our operational efficiency,” says an NSS spokesperson.

“Before 2009, the company had a distributed system, but it was not designed to cope with the size the organization had become, nor suited to manage our database transactions. Our customer data resided in a number of different legacy systems, servers and locations, which made it very difficult for branch executives to analyze and manage customers’ financial histories. Lots of errors crept in to the process, slowing the business down.”

“Our business plan is to grow our current set of 290 branches to an expected 500 within three years, so refreshing our IT infrastructure was critical to gain the extra capacity we needed to expand.”

To reach the company’s growth targets, NSS wanted to improve its operational efficiency and respond to customer requests with greater agility. To achieve this, the company needed to improve its IT infrastructure, while simultaneously reducing IT operational costs.

Building a new IT landscape
In the first stage of the project to update its IT infrastructure, NSS purchased the software from IBM Business Partner Aware. The company then worked with IBM Premier Business Partner Computer Union to deploy the software involved, except IBM DB2® which was implemented by NSS itself. Ongoing support for IBM DB2 is provided by IBM Advance Business Partner Hitcha. NSS engaged A&A Neo Technology to purchase the IBM hardware involved at a highly competitive price point. “The decision to choose A&A Neo Technology and IBM as partners in this project was based on a number of factors,” says an NSS spokesperson. “Principally, it was because we had previously worked with A&A to develop our Disaster Recovery (DR) site, and were impressed by their proven ability to deliver a powerful, yet cost-effective, solution.”

NSS is one of only few mid-market business customers in northern Thailand to have established a DR site, as the concept of business continuity has not yet become a key concern to many companies of comparable size. All transactions are replicated to an IBM Power 520 server in real-time, enabling the company to ‘failover’ to the DR site in the event of a problem with the primary system.

The complete solution architecture includes an IBM Power 710 Express and IBM BladeCenter® server virtualized with IBM PowerVM software plus an IBM System Storage® SAN Volume Controller.

Data warehouse and information reporting systems were implemented to support management planning and analysis. All of the solution components are flexible and scalable, supporting future business expansion.

Experiencing the benefit
Since implementing its IBM solution, NSS has streamlined its business processes, enabling it to dramatically cut response times to customer requests. “We’ve had extremely positive results since the new IBM solution went live,” says an NSS spokesperson. “Because DB2 Business Intelligence tools enable NSS to perform predicative analysis on the business transactions and financial histories of customers in real time, loan applications from existing customers can be reviewed and approved in half the original time.”

Now that NSS has centralized its database system, erroneous or redundant data sent from individual branches to the server at the head office has been virtually eliminated. The IBM solution enables employees to access, customize and utilize the business-critical knowledge and content-management tools they need to operate efficiently in a busy office environment.

“A&A and Hitcha’s integrated approach has dramatically reduced the possibility for undetected fraud,” says an NSS spokesperson. “For example, if a customer submits duplicate loan request at two different branches, our staff can then instantly review the customer’s past financial transaction and payment record on the web application. They can quickly identify a request as fraudulent, or detect faulty loan evidence, such as duplicate car registration numbers.

The web application is utilized by all branches, which connect with corporate headquarters to facilitate leasing transactions. This means that customers can pay their leasing bills at any NSS branch, as the record of all payment transactions is stored in a central database at the company headquarters.

“The system also helps the company to identify blacklisted customers in real time,” says an NSS spokesperson. “Once a staff member enters either the personal information or car registration number of a blacklisted customer on the web application, it will promptly trigger a blacklist warning message on screen. Previously, the lists of blacklisted customers were stored on disparate systems and manually collated from each branch at the end of every month. Using integrated information from our IBM solution, we have brought the overall fraud rate down by as much as 50 percent.”

Since deploying IBM DB2 database software to manage and centralize its customer data, NSS can leverage real-time customer analytics to gain deeper business insights. NSS’s web application delivers a 360-degree view of customers’ financial history and generates predictions about future requirements. This enables customer representatives and managers to make data-driven, risk-aware offers on insurance and loans.

Today, building on a secure, efficient and highly available platform, NSS is free to focus on business innovation as it grows. “We are already looking to expand our financial services offering,” says an NSS spokesperson. “By integrating our information, we have greatly reduced their risk and increased our market-awareness. Since identifying areas of service demand we were previously unaware of, we offer unsecured personal loans to clients with a good financial history, and have even begun to diversify our business by selling car and motorcycle insurance.”

“We have also launched a customer relationship management (CRM) program to elevate the quality of our service by using improved customer information to personalize their services. As part of the CRM, we send opt-in customers automated SMS reminders about repayments, as well as bulletins about new products and services.”

Thanks to the IBM solution, the company can now distribute newsletters, billing reminders and insurance information to customers through call centers and via SMS, cutting its carbon footprint. NSS now operates a near paperless process, and centralized application updates from head office have removed the need to pay expensive travel fares.

Since the implementation of the solution, NSS has seen an approximately 30 percent increase in new customer contracts, and has successfully opened 30 new branches. In creating a totally new software environment with IBM, NSS has achieved its goal of creating new business opportunities and penetrating a new market.

“What we have now is not simply a modernized IT system – it’s an entirely new way of working. We have increased our business agility, opened up new revenue streams, and reduced their overall operational costs,” concludes says an NSS spokesperson. “We are extremely satisfied with the new capabilities gained from the consolidated IBM solution.”

Designed for Data: NSS manages a huge number of transactions every day, from over 223 branches across Thailand. Data on loans and payments from geographically distant branch locations is entered into a web-based user interface and captured into a central system. By combining IBM DB2 with analytical tools, NSS has gained the 360 degree awareness it needs to deliver more relevant customer-focused services.

Tuned to the Task: Using IBM PowerVM for virtualization, NSS can now provision virtual servers for individual workload requirements, tailored precisely to the required processing power, memory and virtual I/O. Because installed resources are matched to critical requirements, the company avoids the need to buy multiple non-virtualized servers, reducing its IT spend.

Managed in the Cloud: The NimSoft web application is hosted in the company’s private cloud at its corporate headquarters, and is used by all NSS branches. Since the solution implementation, process integration, workforce management and enterprise application connectivity have improved dramatically. NSS has gained the ability to quickly provision new services, synchronize business information from multiple platforms, and convert message formats in motion between applications.

Driving Innovation: Today, NSS has an infrastructure that is scalable, flexible and powerful enough to accommodate its targets for rapid expansion nationwide. Since its deployment, the company has opened 30 new branches and increased its customer contacts by 30 percent. The solution enables NSS to uphold its outstanding record of operational efficiency, service excellence and customer satisfaction at every new branch, while simultaneously reducing its overall operational costs.

Products and services used

IBM products and services that were used in this case study.

Hardware:
BladeCenter, BladeCenter running OS - AIX, BladeCenter running OS - PowerVM, Power 520 Express, Power 710 Express, Power Systems

Software:
WebSphere Business Integration Adapters, Workload Partitions Manager, AIX, WebSphere Commerce - Express, System Storage SAN Volume Controller, PowerVM, DB2 for Linux, UNIX and Windows

Operating system:
AIX

Legal Information

© Copyright IBM Corporation 2012 IBM Systems and Technology Group, Route 10, Somers, New York 10589, U.S.A. Produced in the United States of America March 2012 IBM, the IBM logo, ibm.com, AIX, BladeCenter, DB2, Power, PowerVM, System Storage and WebSphere are trademarks of International Business Machines Corporation in the United States, other countries or both. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at: ibm.com/legal/copytrade.shtml. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM’s product, program or service may be used. Any functionally equivalent product, program or service may be used instead. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Photographs may show design models.