2. Application of the Design Thinking Approach to Process Redesign at an Insurance Company in Brazil
José Ricardo Cereja
Flavia Maria Santoro Elena Gorbacheva
Martin Matzner

3. Summary Introduction Situation faced Action taken Results achieved
Lessons learned

4. INTRODUCTION

5. The Case Scenario (1/2)
The largest independent insurance company in Brazil (the “Insurer”)
Founded more than 100 years ago
Employs more than 5,000 people
In 2014, the company generated R$16.9 billion of revenue (around US$4.2 billion), serving about 7 million customers

6. The Case Scenario (2/2)
Significant changes in health insurance market in Brazil, especially in the process of purchasing raw materials for medical treatments
Consequence: The Insurer had to review its health insurance information system
Faced challenge: Part of the material-purchasing process was done informally instead of being implemented through the information system
Search for a solution: The Insurer employed ADDTECH, a business consultancy that specializes in the areas of business, management, and technology
New approach: ADDTECH suggested using Design Thinking techniques to collect requirements for the new information system and a new process for material purchasing

7. SITUATION FACED

8. Identified Challenges
The Insurer had to restructure its purchasing process; however, issues were identified with the Authorization Not Required (ANR) materials, which were classified as “basic” and required an immediate release
Over time, four major problems emerged:
ANR materials were purchased outside the information system using a manual process and using phone and for communication and decision-making
ANR materials did not have a standard definition
The share of ANR items increased to 40 percent of all ordered materials
The number of frauds involving ANR materials increased

9. Initial Attempts to Address the Identified Challenges
The Insurer could not handle the development of a new information system through conventional techniques, because the employees could not reach a common understanding of the existing challenges and how they should be addressed in the information system
Therefore, ADDTECH was hired to address the revealed challenges using an innovative approach

10. ACTION TAKEN

11. Application of Design Thinking for Process Redesign
The Design Thinking approach was applied throughout the BPM lifecycle:
redesign the material purchasing process, particularly the purchasing of ANR materials
gather requirements for the new information system

12. Overview of Workshops and Tools Applied at each Design Thinking Stage

13. RESULTS ACHIEVED

14. Main Outcomes
Empathize stage: the as-is process model of the existing purchasing process was designed
Define stage:
A common definition of ANR materials was achieved
The to-be purchasing process was designed, including the sub-process for the procurement of ANR materials
Important aspects of the information system were formalized (including value propositions, direct customers, aspects of user support service, key activities and features, and key partners)
Ideate stage: the requirements to the information system and associated features to be implemented were identified and approved
Prototype stage: the prototype of the new features of the information system supporting the to-be process was developed

15. Examples of the Applied Design Thinking Tools

16. LESSONS LEARNED

17. Final Remarks
Design Thinking added useful instruments to BPM analysts’ tool set, as the case demonstrated the successful application of Design Thinking for process redesign and improvement
The BPM lifecycle phases correspond well with the stages of Design Thinking
The case described here is likely to render a methodological contribution to the Design Thinking approach
Design Thinking techniques could be applied in a flexible way
The case provided organizations with general insights on how to apply Design Thinking for process redesign