DAK: Digitalisation promotes modern business processes
The DAK (a statutory corporation providing health insurance) completed within a few month the transition from a purely paper based incoming mail processing to an electronic one. Incoming mail is processed in three ‚DigiCentres‘, using InoTec high-speed scanners to provide ‚just in time‘ digitisation as the mail is received. Largely automatic post-scan processes route the electronic information to the various branches and departments for further processing. Customer service officers have immediate access to the electronic archive. „Digitising incoming mail has given us the foundation for comprehensive process optimisation. This will further strengthen our market position“, explains DAK Director Claus Moldenhauer.
From Generalist to Specialist
For years Statutory Health Insurance Funds have found themselves in a market environment dominated by intense competition and cost efficiencies. New legal framework – for example the creation of the health fund with a uniform contribution level – have intensified pressures further. Most customers look at service, advice and competence when choosing a health insurance fund.
The DAK tackled these challenges early on by initiating the far reaching restructure program ‚ProDAK’ in 2005. Its paramount goal was to further improve the quality of advice and service.
This required fundamentally modernising working processes and structures. Originally a single person handled both customer advice and claims processing, the ‚Generalist’ was responsible for a complete customer file. Today, areas of responsibility are separated. Customer advice is given by service centres, claims processing is handled by specialist claims processors.
The restructure at a process level also called for physical division of the various offices. Once the restructure has been completed some 800 service centres will provide nationwide delivery of customer care. All of a customer’s information must be available to a customer service officer at any time and in any place.
„Document management is an important component of our CRM strategy and forms the basis for consistent process orientation “, summarises DAK Director Claus Moldenhauer.
Own DigiCentres
Digital incoming mail processing proved to be a key component of effective document management.
„Scanning incoming mail as soon as it is received ensures customer service is based on complete and up-to-date information. Additionally, we ensure that customer requests are processed without delay in the back-office area “, explains Kay-M. Schülzke, project manager for the sub-project cross-section at DAK, responsible for all global questions regarding incomming mail processing and mail logistics.
The electronic conversion of incoming mail takes place in three DigiCentres located in Hamburg, Berlin and Essen. Postcodes are used to direct the mail flow to the relevant scan region. In Hamburg alone about 20,000 mail items are received daily, equivalent to approximately 300 kg of paper.
A small part of the incoming items are uniform, mainly items containing 1-2 sheets, that are captured using scanners with integrated letter openers. The bulk of incoming items contain varying documents, i.e. paper sizes and weights like letters, cheques, doctors bills, prescriptions and so on.
These documents are scanned using InoTec 4x2 high-speed scanners, which the DAK selected after exhaustive comparative testing. „Fast, sturdy, reliable and a very impressive price/performance relatioship“, cites Kay-M. Schülzke as reasons why these scanners were selected.
At each location ten to twelve InoTec 412CD scanners are employed. They are capable of scanning up to 110 sheets per minute. The feeder and transport system designed and developed by InoTec allows for automatic feeding of documents of varying sizes and paperweights, intermixed in the same batch. The feeder is even capable of handling very thin paper without any problems.
Apart from the product’s attributes Kay-M. Schülzke values the direct communication with the manufacturer, who continually contributes his expertise to benefit of the project.
Streamlined processes
Work-flow in the three DigiCentres has been consistently streamlined. Twice daily, between 6.30 – 7 AM and about 8 AM, mail is being delivered. The mail is recorded, weighed, mechanically sorted by size, opened via automatic mail openers and prepared for scanning (de-stapled, flattened and sorted into batches). Confidential items are removed and batched separately.
Individual mailings are separated using patchcode sheets. Scanning is done in duplex mode at 300 dpi. Output is bitonal with an image format of TIFF-G4. In conjunction with the capture software the InoTec scanners generate an endorser string for each sheet. This string is printed on the document and contains the scan date together with a unique identifier. Thus, if required, individual original documents can be easily retrieved.
The electronic images generated in the above step are then passed to the next step in the workflow – classification and indexing. The software solution employed performs this task mostly automatically. It recognises the document type (classification) and extracts the wanted information (indexation), like for example the membership number.
The information thus gathered directs the mail item to the correct department for processing and files it in the correct section of the DMS archive. In case automatic classification is not possible manual intervention is required for classification and indexation.
„The parallel processes of the individual digitising steps result in a continuing scan flow without holding loops or time delays“, emphasizes Kay-M. Schülzke and is delighted with the high productivity. „As early as 7:30 AM the first documents are available in the DMS, with the last items being available in the early afternoon at the latest. “.
During the realisation of the DigiCentres the DAK relied on the advice of a mail processing specialist, MailConsult, who also capably supported any conceptual queries or concerns in connection with the extension of the digitising workflow.
Constantly improving digitising processes
The DAK is very satisfied with the results to date of the electronic incoming mail processing. Despite the widely varying form of incoming mail, and its wide subject spectrum, automasition of internal mail distribution could be boosted to 65 % in a few months. „The DigiCentres have proved themselves and made their contribution to the success of the restructure program “, states Kay-M. Schülzke.
Recent health fund comparisons (see Box 1) give DAK top rankings for service and customer advice.
However, Kay-M. Schülzke is not content with what as been achieved to date, eying further improvements to the workflow of the DigiCentres.
Serious consideration is being given to the switch from bitonal colour capture. Amongst other things, this would improve legibility for the end user. Simultaneously, a new form of process automation - shadow processing - is under consideration. This involves extraction of technical data from documents that can be processed and augmented in such a way that core systems of the in-house IT infrastructure are able to automatically process them without manual intervention.
Kay-M. Schülzke is confident great benefits can be gained from the process ‚Scan and Sign’. This process involves the application of a secure electronic signature to the images prior to them entering the classification and indexation process. This process certifies that the scanned image is absolutely identical with the original, negating the need to maintain a paper based archive. Given the sheer volume of incoming mail and the retention periods required by law mean that this process would result in significant cost savings.
„We are entitled to constantly improve digitising processes and thereby increase the performance of incoming mail processing“, states Kay-M. Schülzke as the motto for the future of the DigiCentres.
The DAK – Enterprise Life
The DAK, a statutory corporation with self-government, is a modern nationwide provider of health services. With about 12,500 employees the DAK services six million customers through about 800 service centres across the country. The quality of DAK’s customer advice and DAK service has been certified by several test bodies and magazines like TÜV Rheinland, ÖKO-Test and Focus Money. With health competence since 1774 and know-how in the area of social security does not only assist in cases of illness but is also actively engaged in health promotion and well being. Further information can be found at www.dak.de
