David cindric services coverage - 201505
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Transcript of David cindric services coverage - 201505
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Agenda
Who is David ?
References Cases
Historically & Current Context
The influencers & The Digital impact
Challenges ... as Models from years 2000 are not ready for future
Prospects/Customers to target + Sector SWOT Analysis
David’s Added Value
Financial Industry
Financial Services - Some ideas & Topics to develop Lux market
Topics to develop
Proposed portfolio
How to ? ….. What’s in ?
Applicable case : Linking Costs optimization with Portfolio
Investments & Efforts to prepare portfolio
Luxembourg Competitive Landscape - Big 4 and Target Operating Model
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PERSONAL INFORMATION- Nationality: Belgian + Croatian- Marital status: Cohabitant - 2 Kids: Marijela (7Y) & Adrijan (5Y)- Born in Brussels, 7/09/1971 (43Y)
LANGUAGES- English : Fluent- French : Mother Tongue- Dutch : Bilingual- Serbo-Croatian : Bilingual - Luxembourgish, German : Intermediate understanding- Spanish : Intermediate understanding
PEOLE MANAGEMENT CAPABILITIES- Coaching, Mentoring, Team spirit- Analytical Skills, Empathy- Interpersonal Skills, Change Management- Respectful, Open-minded, Empowering people
SOFT SKILLS - Strong Negotiation capabilities- Problem Solving (able to understand real root cause)- Figures sensibility (revenue, margins, turn over, etc.)- Leader, Creative, Rigorous, self-educated- People Motivator, Good Communicator- Objective Oriented, Determined
EDUCATION- 1999: Marketing Communication
3rd post-academic cycle - with honors at ICHEC
- 1998: Sales & Marketing Management
3rd post-academic cycle - with honors at ICHEC
- 1994: Bachelor in Commercial Sciences
FUNCTIONS EVOLUTIONS- Enterprise Account Manager- Department Manager : Consulting & Managed Services- Managing Director- Senior Consultant (free-lance, owner : Advise & Optimise SA)
TRAININGS- People Management, Talent Motivation & Coaching
- PSF Good Practices / Compliancy, Boardroom selling, etc.
- Methodologies : IT/ Business Alignment (Agile, etc.), ITIL, Etc.
INDUSTRY KNOWLEDGE - Banking : BCEE, BDL, BEI, BGL, Bil, ING, CA, KBL, SGBT- Fund : Alter Domus, BP2S, Caceis, Clearstream, Fideuram, HSBC,
Mizuho, Natixis, Nomura, RBC, Schroders, State Street- Other financial : ADTS, BCL, Cetrel, CSSF, Kneip- Insurance : Axa, Bâloise, CLV, Lombard, Swiss Life, Swiss RE- Others : ArcelorMittal, Cactus, Champ, Ferrero, Hellef Doheem,
Luxair, SES Astra, SNCT
IT SKILLS - Operating System : Windows 8.1 - Mac OSX - Android- MS Office 2013 (Word, PowerPoint, Excel, Outlook), Lotus Notes- CRM & HR Systems : Siebel, SAP, Microsoft Dynamics- Project Management tools : Clarity, MS Project- Cloud technologies : Google, Microsoft, Dropbox- Others : Visio, Mindmap, Lync, Sametime
PERSONALITY- Positive, enjoyable, humorous, passionate, eager to learn…& Geeek
Who is David ?
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David’s Added Value- Large knowledge of IT Landscape/Organisations (How it must work,..)
- Bringing IT as Business enabler (ex: the branch of the future, …)
- Passionate by Projects with Business Value : Analytics, BI, Digital, Cloud, ECM, etc.
IT Transformation/Operations optimization
General Knowledge in Financial Industry
(FA, TA, Retail, …)
Cost Efficiency PSDC / Legal Archiving/ ECM
Analytics (BI, BSC)/ Data Management
Digital / Social Media
Cloud Services / Service Catalogue
Program ManagementBCP / DRP
BPM / Business Rules / Desktop Publishing
Contracts & PurchaseOptimization
Business & IT Alignment
IT Strategy
General knowledge in Risk / Compliance /
Legal & Security
David
Sales Coaching Business Development
Services Company SupportFrom Strategy to Operations
Governance OrganizationOptimization
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BGL, BP2S, Cardif(All 14 Lux entities)
1st BNP Paribas Territory Project • Outsourcing of All Service Desk, +/- 9.000 End-Users Devices (Desktops, printers, Mobiles, etc.) and Packaging activities• Aligning Governance (New Territory Team), Processes, SLA, KPI, Resource Units, Delivery Models, Tooling, etc.• TCV (5 years) : From 14 millions to 9,7 millions• Delivery Team : 30-35 people
David’s role :• Write RFP• Organize qualification meetings (market scan) to define which provider will receive RFP, based on their capacities and added-value to deliver activities• Participate to requirements workshops (Processes review) with main entities and alignment between them• Drive complete Business Case study covering all entities• Build Competition Matrix for provider selection • Prepare all information for Audit department (incl. security) due to outsourced activities and for legal/compliance to respect internal/ external regulations (CSSF)• Project Management + P&L follow up• Deliverables definition on provider side + writing internal documentation (when processes or some activities were missing or not up to date)• Writing Frame contract including 15 schedules (KPI/SLA, Penalties, etc.)• Help within negotiation process : giving information to pressure prices + terms and conditions (text review)
BCEE
Re-writing the Core banking application• All functional domains existing at BCEE were covered: credit cards, loans, investments, private banking, etc. … • Workload : Up to 54 developers (Off-shore)• Duration : 1 year
David’s role :• Write Proposal + workloads review• Participate to all qualification meetings before selection• Participate in negotiation process• Once selected, participate to requirements workshops• Preparing complete "testing" proposal (UAT) + POC implementation follow up (manual Vs automated based on mercury tooling)• Deliverables validation• P&L follow up + Gaps as project in fixed price
Kneip
Transforming the complete IT landscape (OS, Collaborative tooling, Back-end systems including monitoring)• 4 on-site consultants• 250 users : +/- 650 K
David’s role :• Write Proposal + workloads review• Participate to requirements workshops• Documentation & Deliverables validation• Project Management + P&L follow up
BGL BNP Paribas
Program Management : Neos Migration (incl. Compatibility Application testing) • Project size : +/- 3.000 man/days • Scope including different providers to manage• Duration : 2 years
IT Transformation - Reference Cases 1/2
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Natixis
Transforming the complete IT landscape (OS, Users privileges, Back-end systems)• 4 on-site consultants• Duration : 8 months
David’s role :• Write Proposal + workloads review• Participate to requirements workshops• Documentation & Deliverables validation• Project Management + P&L follow up
BGL BNP Paribas
Program "Fold in" : Integrating Business Units coming from BNPP within BGL BNP Paribas (impact on systems, apps, etc.)• Functional coverage : all businesses except Fund & TA activities• Managing directly 3 Project Managers + 1 service delivery Manager - complete team : 18 people
David’s role :• Program Management (2 meetings/Week with Customer due to program size and large number of activities)• Deliverables validation
Zurich
Implementing all Lux IT environment Based on Group Decision• Team of architects, system engineers• Duration : 6 months (starting from scratch)
David’s role :• Project Management + P&L follow up• Technology provider : Dell
Alter Domus
Transforming partly the IT landscape to implement new “standards”, IT base for company expansion• Implement IT infrastructure within new acquired subsidiaries (Netherlands, Singapore)• Team of architects, system engineers• Duration : +/- 2 years with several projects between 3 to 6 months
BGL BNP Paribas
Complete infrastructure redesign due to ESB (Websphere) implementation enabling better processes urbanization (covering web Banking transactions, etc.)• Duration : 3 years • Team of architects, system engineers, developers (to support applications changes due to major migration)• Value : +/- 2,4 millions
David’s role :• Project Management + P&L follow up
IT Transformation - Reference Cases 2/2
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Analytics (BI,...) / Data Mgt - Reference Cases 1/2
Bil + RBC
1 Program to cover different topics:• Budgeting/Planning for Bil and 50 Subsidiaries (incl. RBC)• IFRS• Basel II• Cross-Business Units Customer profitability (Private Bank, Funds, Retail, etc.)• Deal size : 750 - 950 K (Services)….. In parallel, creation of the BI Competence Center (BICC) at Bil
On Bil side + RBC side :• Write Proposals + workloads review• Participate to all qualification meetings before selection + functionalities demo related to latest essbase version 6.3 (data traceability needed to comply Basel 2)• Participate in negotiation process with purchase• Participate in negotiation process with IBM(supporting Bil)• Once selected, participate to requirements workshops (how IFRS rules will be implemented within application)• Documentation & Deliverables validation• Project management + P&L follow up
SGBT
Finance Department :• Controlling and ad-hoc reporting on financial data (costs, margins, by activity, etc..)• Budgeting/planning, cross-charging and Consolidation
Private Banking (Customer Profitability Analysis), Custody activities• For all those activities, automated reporting, ad-hoc and simulation/analysis tools were put in place (incl. alerting on KPI)• 5-7 on-site consultants• Deal size : 380 - 500 K
David’s role :• Write Proposal + workloads review• Participate to a limited number of requirements workshops• Deliverables validation• Project Management + P&L follow up
TrefilArbed
For Trefilarbed, Worldwide Sales Forecast • “What if analysis“ enabling Sales & acquisition prices based on Iron stock exchanges evolution, local market prices, types of customers, volumes ordered, etc. • In scope were also covered following financial elements : order (capacity) management, invoicing treatments, costs of logistics, stock management, budgets and
margins calculations.• Deal size : 750K
David’s role :• Write Proposals + workloads review• Participate to all qualification meetings before selection• Building POC to validate project by Management and Business teams• Participate in negotiation process• Participate in some requirements workshops• Project management + P&L follow up
Odyssey Odyssey Asset management (Triple A reporting) : Sub-contracting for all Private Banking customers (BGL BNP Paribas, Banque Cantonale Vaudoise, etc.)
Arcelor For ArcelorMittal Corporate, Consulting activities to review all budgetary processes (including International standards in terms of accountancy)
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Analytics (BI,...) / Data Mgt - Reference Cases 2/2
BGL
BI Competence Center implementation : Governance, Processes, technology roadmap to cover topics such as : • Basel II, Basel III• Funds value (NAV)/lifecycle• All Business Units reporting needs• All financial reporting BICC : Team of 20 FTE (internal + external)
Regarding the BI Competence Center : • Conducting and preparing all workshops/meetings related to Governance, organization, processes to build with business departments (request/change
management process, etc.)Regarding activities to perform :• Mix between customer staff and on-site consultants• 50% of staff for change/delivery + BAU - Other 50% for new projects implementation• For new projects : functional workshops based on other projects implemented at other Customers (regulatory, Customers profitability, etc.), sharing best practices,
products evolution to prepare future technical migrations
Lombard
Reporting Implementation related to Customers, funds, portfolio, etc.Automated and ad-hoc reporting as Lombard decided to migrate core system Application• 5-7 on-site consultants• Deal size : +/- 500 K (services)
David’s role :• Write Proposal + workloads review• Participate to a limited number of requirements workshops• Deliverables validation• Project Management + P&L follow up
Caceis
Audit and review of the complete fund process chain (end-to-end analysis to guarantee NAV delivery on time)• Team size : 5-7 people on-site
David’s role :• Write Proposals + workloads review• Project management (during the complete delivery, 2 steerings/week with CIO at 9PM as they had some issues in terms of NAV delivery) + P&L follow up • Deliverables presented directly to the CEO
ADTSFinancial Capacity Planning, Activity Based Costing and Business Units cross-charging (RBC, Dexia Banque Belgique, Bil, etc.)Deal size : 300K (Services)
RBC Building the team related to mass « reporting » (NAV, etc.)
B Reporting on Lips-Gross to supervise and follow-up all system payments based on Custody Operations
Luxai
Capacity Planning Project and Balance Score Card covering : Optimizing : Route planning, flights filling rates, fuel consumption, link between costs, revenues, margins, etc.• 3-5 on-site consultants• Deal size : 500 K
David’s role :• Write Proposal + workloads review regarding SAP BW implementation and BO reporting creation• Participate to some requirements workshops• Deliverables validation• P&L follow up
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BGL
LCM Octopus Project: at BGL BNP Paribas, Outsourcing of the complete legal archiving environment & Publishing department
David’s role :• As a 1st objective, define if there was a business case by outsourcing bank’s legal archiving to a PSDC company;
All this in a phased approach (on several years) as there were several environments with different technologies (some out of date)Topics such as hardware, software, people take-over where also included within discussions and estimates
• Creation of the RFP and document with qualifying questions to enable Provider selection • Deep work done on the Contract template, KPI/SLA definitions, penalties and elements to guarantee the delivery and close collaboration with legal/compliance
departments (retention period, etc.)• Different visits with bank members were organized to validate working environments (physical security, validate scope of the provided cloud application, Q&A
sessions, etc.)• Complete Scope : outsourcing covering the take over of : +/- 40 people (including "Print shop" teams)
BCEE Cost and ROI study to "digitalize" all (historical) bank papers to decrease physical storage
AXA
For all insurance activities (life, fire, diverse risks, accidents, claims, etc.), reviewing all Business Processes to cover them in a dematerialized way. Therefore time to operate contracts (linked to customers surveys) were usually done in a few days with a customer satisfaction rate above 85%.This also helped AXA to better manage its capacity planning in terms of staffing (activities allocation) and complexity topics to manage (split between teams and people).• Access to the implemented applications was also provided to external partners (brokers).• Number of employees : 150• Value : 450 K
David’s role :• Write Proposals + workloads review• Participate to requirements workshops (Processes review) with Life + IARD entities and alignment with Legal department• Deliverables validation• Project Management + P&L follow up
PWC
New intranet implementation at PWC Luxembourg based on Microsoft SharePoint. The main objective was to provide a centralized area for information/documents collaboration to all 2400 PWC employees.All types of information was covered : from legal information (connected to Documentum) to facilities, hotels addresses, news, etc..To optimize collaboration between people and within Business Units (tax, audit, etc.), functionalities such wiki, blogs and discussion boards were enabled.• Team between 2-5 people • The project took +/- 10 months
BGL
New intranet implementation at BGL BNP Paribas Luxembourg based on Microsoft SharePoint. The main objective was to provide a centralized area for information/documents collaboration and request services to all BGL BNP Paribas employees with a phased approach enabling:• In a 1st phase for IT teams (400 people) of all types of information: service catalogue, all cross-charge costs to business units, audit reports, documentation, etc. • In a 2nd phase, implement processes to accept a maximum of users requests through the portal (request equipment, forms input for different businesses, meeting
room booking, etc.)• Team between 4-7 people (based on roles and responsibilities) • The project took +/- 7 months
David’s role :• Write Proposals + workloads review• Participate to requirements workshops • Deliverables validation• Project Management + P&L follow up
PSDC / Legal Archiving / ECM - Reference Cases 1/2
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BCEE
Study to review internal processes to define Pros/Cons between centralized scanning organization/Operations and decentralized,Main objectives were :• Validating efficiency and people workloads for the complete scanning process (ex : when a new customer was giving its documents for scanning)• Validating the Pros/Cons and costing elements between a centralized and decentralized way of working as decentralized pushed all the complexity to the branches.
AXA
Cost and TCO study to "digitalize" all (historical) Company papers to decrease physical storage and review all potential internal impacts in terms of organization, processes, costs, team to work, etc. (Linked to the 1st versions of the PSDC text regulations)• Discuss assumptions to dematerialize company papers based on coming law and taking care of Axa's internal processes
David’s role :• Work on TCO study • Deliverables validation• P&L follow up
LuxairCost and TCO study to "digitalize" all (historical) Company papers • Decrease physical storage and reuse physical space or for internal needs or to rent them
Mizuho
• Writing RFP for Mizuho and defining their needs in terms of legal archiving :- Software solution- Archiving back-end solution- Integration Partner- Replace (some) physical archives by electronic archives- Decreasing future physical archives (i.e. paper documents, box, rooms).- Archives internal & external data flows to be kept, on low cost, but secure and reliable, medias- Manage retention periods of archived documents- Provide search facility- Replace the existing DMS solution (Document Management System = G.E.D.)
David’s role :• Write Proposals + workloads review• Help Company define requirements• Deliverables validation• Delivery + P&L follow up • Team size : 1-2 people on-site
PSDC / Legal Archiving / ECM - Reference Cases 2/2
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BGL BNP Paribas
TCO and Cost study to migrate 500 Blackberry users to iPhones• Analyze Blackberry consumptions and types of behaviors (call, SMS, data) and Define future usage levels, types of profiles and their related budgets/quotas• Study included devices, consumptions, technical environments (Mobile Iron) and people to manage them• Results : Management accepted a total budget increase of 10% as : iPhones cost 3 times more, Telco contract renegotiated with +/- 50% decrease, pooling and new
policies in place
David’s role :• Drive Complete TCO study• Define profiles and their packages (volumes, roaming, etc.)• Define new Bank's usage Policy
Writing RFP to challenge Telco providers• Doing all financial simulations based on subscribed contracts (roaming, data, voice, etc.)• Do part of the negotiation process for the Customer
KneipCost and TCO study to better manage licensing contracts with Microsoft • Financial simulations linked to architecture evolutions and future migrations
Cardif
Managed Services contract Review and Optimization • The contract, +/- 6 million €/year, was pending since several years with BP2S who manages almost all the IT production for CLV. • I had to elaborate a new version, which will be used as the “reference” between both companies.
Main objectives were to find an agreement between parties, decrease pressure between both companies and protect CLV interests, as a lot of elements were missing : • Governance and related organization (steering committees for BAU activities, projects, etc.)• Service Catalogue completeness (Resource Unit for activities, server capacity, storage, etc.)• Operational processes description (who, what, when, etc.)• Contract terms and obligations such as Reversibility, Hand-over, Documentation, Contract termination, etc.• KPI (Key Performance Agreements), SLA (Service Level Agreements) and Penalties aspects • Legal issues and alignment with BNP Paribas group Compliancy
David’s role :• Rewrite part of the new contract or make proposals to be validated by legal department• Challenge content (Resource Units, SLA, KPI, etc.)• Challenge Governance and quality of delivery + clarify some scope of activities, processes, etc.• Challenge responsibilities (RACI tables, etc.)
Alter DomusCost and TCO study to better manage licensing contracts with Microsoft • Financial simulations linked to architecture evolutions and future migrations
Costs Efficiency / Purchase - Reference Cases 1/2
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BGL BNP ParibasTCO Study related to Printing costs and New printing policy definition.• Bank Targets : min. -50% individual printers / -25% in branches• Results : -74% printers (MFP usage) , 400 K economy/year
ArcelorMitta
Several workshops to simplify and optimize IT landscape costs were organized to bring best practices to ArcelorMittalIn parallel, We sold :• 100.000 pc (lifecycle on 5 years)• HP software to standardize IT Management tooling (service desk, etc.)
BCEECost and TCO study to better manage and predict contracts with IBM • Scope : licenses, hardware, software and mainframe usage linked to architecture evolution
BGL BNP Paribas
Contracts Optimization and Providers costs decreaseReview of local major value contracts related to Services, Maintenance, Software and Hardware.• Case by case, or launch of RFPs with a limited number of companies or direct renegotiation with suppliers (quick wins)
Ex: -200 K€/Year for maintenance contract for network equipment, same for security equipment, etc.• On the other hand, sourcing strategy was defined to go from a « best effort » mode to a « committed » fixed price approach
BGL BNP ParibasWithin a team writing an RFP related the Bank’s BCP, I brought input/elements to focus on quality, cost control and guarantees
• Objective : a flat budget during contract duration without bad “financial” surprises
Trefi For a WW project at Trefilarbed, TCO study between BI platforms before vendor selection (BO vs Cognos)
BGL BNP ParibasCost and TCO study to better manage licensing contracts with Microsoft • Financial simulations linked to architecture evolutions and future migrations
ChamCost and TCO study to better manage licensing contracts with Microsoft • Financial simulations linked to architecture evolutions and future migrations
BGL, BP2S, Cardif(All 14 Lux entities)
1st BNP Paribas Territory Project • Outsourcing of All Service Desk, +/- 9.000 End-Users Devices (Desktops, printers, Mobiles, etc.) and Packaging activities• Aligning Governance (New Territory Team), Processes, SLA, KPI, Resource Units, Delivery Models, Tooling, etc.• TCV (5 years) : From 14 millions to 9,7 millions• Delivery Team : 30-35 people
David’s role :• Write RFP• Organize qualification meetings (market scan) to define which provider will receive RFP, based on their capacities and added-value to deliver activities• Participate to requirements workshops (Processes review) with main entities and alignment between them• Drive complete Business Case study covering all entities• Build Competition Matrix for provider selection • Prepare all information for Audit department (incl. security) due to outsourced activities and for legal/compliance to respect internal/ external regulations (CSSF)• Project Management + P&L follow up• Deliverables definition on provider side + writing internal documentation (when processes or some activities were missing or not up to date)• Writing Frame contract including 15 schedules (KPI/SLA, Penalties, etc.)• Help within negotiation process : giving information to pressure prices + terms and conditions (text review)
Costs Efficiency / Purchase - Reference Cases 2/2
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BC Expertise - Security audit on virtualized environments (infrastructure, applications, access controls, etc)
BC Expertise - Audit to review all applications deployment processes (to avoid production issues during deployments)
Od Expertise - Security audit on network and accesses, with a special focus on Wi-Fi
Cactus Expertise - Security audit on new network environments (infrastructure, applications, access controls, etc)
PWExpertise - Based on different .Net Framework, help PWC to define its internal development framework which will be used during several years as base for all applications developments
ING
ING conducted brainstorming sessions to think about :• Its strategy for the coming years• How being an attractive employer especially with the coming "Y" Generation• Define competitive landscape including companies like Google
• To enable such positioning and evolution supported by the implementation of NWOW concept, the 1st brick was covering the BYOD approach.This was the 1st Mobile Iron Implementation in Luxembourg to enable such innovative approach.
• BYOD had to support 300 smartphones users and in a second phase up to 900 users for the tablets (as the idea was to migrate from fix desktop to tablets which enables you to work everywhere within ING premises)
David’s role :• Define “Vision” and roadmap related to NWOW concept to be implemented (taking care of new ING Building)• Drive Complete Security & Compliancy validation (ING teams and Mobile Iron Representatives were involved)• Support ING to drive its TCO study• Help defining restrictions to enable cost control (through MDM platform and Telco provider)
BGL
• As Digital working is a world wide group initiative at BNP Paribas group, the idea was to provide mobility and access to social media in a phased approach.• The 1st initiative was to bring a broader usage of smartphones and some tablets to specific users.• To support the initiative, firstly a TCO study was conducted to migrate 500 Blackberries to iPhones.
Based on the study, different types of profiles were defined (incl. budgets & volumes) and a usage policy was written.AS iPhones were 3 times more expensive than Blackberries, an RFP and contract renegotiation process with Telco providers was launched to guarantee to the Management a limited financial impact .The deployment was done in a smooth way to guarantee a smooth change
• In parallel, within new Building CBK2 at Kirchberg and existing one (CBK1) some ideas coming from New World of Work (NWOW) concept were implemented(Wi-Fi areas, library with tablets, etc.) to support the mobility initiative
David’s role :• Drive Complete TCO study• Define profiles and their packages (volumes, roaming, etc.)• Help defining restrictions to enable cost control (through MDM platform and Telco provider)• Define new Bank's usage Policy
Digital Working - Expertise/Audit - Reference Cases
Digital Working
Expertise - Audit
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BCL
Implementation of full HR ERP to cover : • Administration and people management • Compensation and Benefits • Career path and management• Recruitments (automated workflow and processes)• Competence management and Trainings• Absence & illness• Dynamic organigram Management • Dashboarding & reporting for all performed activities (Age Pyramid, salaries evolution, illness, trainings costs, etc.)
David’s role :• Write Proposal + workloads review• Participate to requirements workshops• Project Management + P&L follow up• 2 internal consultants + Software provider expertise to implement
SES AStra
Implementation of full HR ERP PeopleSoft• Optimize the administration of HR processes • Improve business processes through web technology• Reduce non-value adding tasks• Reduce the use of excel stand alone applications in order to increase collaboration and being able to share one version of non-redundant data• Centralize employee and job data to support the maximum of reporting queries• Implement a collaborative application• Leverage in-house PeopleSoft Technology knowledge
David’s role :• Write Proposal + workloads review• Participate to Some of the business requirements workshops• Project Management + P&L follow up• 4 internal consultants
Hellef Doheem
Implementation of full HR ERP to cover : • Administration and people management • Compensation and Benefits • Career path and management• Recruitments (automated workflow and processes)• Competence management and Trainings• Absence & illness• Dynamic organigram Management • Dashboarding & reporting for all performed activities (Age Pyramid, salaries evolution, illness, trainings costs, etc.)
David’s role :• Write Proposal + workloads review• Participate to requirements workshops• Project Management + P&L follow up• 3 internal consultants + Software provider support (on-demand)
Human Capital - Reference Cases
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Financial Industry
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Financial Industry - HISTORICALLY
• Activities usually with higher margins
• Mainly driven by turnover (Sales figures)
• Customer retention was in focus, therefore some costs not enough managed :
o Services given for free, Personalization in terms of reporting, etc.
• Usually without tracking in terms of costs allocations (mainly per BU, product)
• Reporting mainly done “a posteriori” or to respect regulations… predictive/ proactive
aspects, mainly not in mindsets
• Sometimes real tariff policy was missing
• Strong Sales Management missing regarding Sales force (Customer makes mainly effort)
• Last but not least, organizations in silos
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• COMPETITIVE POSITIONING
- Competition is fierce, global (Private Bank)
Ex: UBS, HSBC scandals…
- New Competitors….in payments
Ex: Apple Pay, Amazon Credit Cards, PayPal,
- New Competitors….in Direct bankingEx: Hello Bank, ING Direct,
- Need to differenciate with innovative services
and high added-value
- Need to adapt offering and distribution channels
Vs online players (less costs)
• MARKET TRENDS
- Development of Passive investments
(« trackers ») and less risky products
- Customers pressure on prices
- Global Number of market Transactions
decreased
- Online players putting pressure on classical
institutions
- Products standardization and electronic
- Margins decrease on investment products
(savings)
• REGULATORY IMPACTS
- Regulatory pressure to pay the real services
value
- Regulatory Pressure and its EvolutionEx: FATCA, Basel III, MiFID, etc.. Requirement to « block » equity, etc. Impact on liquidity costs
- Costs to implement and run reporting/ control
infrastructures
- Increase in Collateral/guarantees needs
- Pressure on savings products and related Tax
• INTERNAL CONSIDERATIONS
- People, Culture, Talents retention, Age PyramidAverage Age in Banking in France : 46 years
- Central services not ready for cross-channel
distribution (Big Data, Social Media, Digital..)
- Administration Time Vs Commercial Time
- Asset Mgt portfolio review for more coherence
- Need to activate underutilized portfolios
- Improvement in: quality Customer relationship
with more proactivity
- ICT landscape evolutions / automationEx: New Business Apps, manual tasks, etc.
Financial Industry - CURRENT CONTEXT
Margins are
descreasing…
(Transactions) Costs
are increasing…
31
2 4
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Financial Industry - THE“ INFLUENCERS ”
REGULATORY
- AIFMD- Basel III / CRD IV- BEPS- EMIR- FATCA- MiFID 2- SOLVENCY II- UCITS IVAnd next ones…
TECHNOLOGYTRENDS
DEMOGRAPHYEVOLUTIONS
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Optimizing The Customer experience
- More interactivity and Services continuity (on-line portfolio performance followup, orders through the web, …)
- Usage simplification - More disintermediation (no need to lose time through intermediates, Customer
negotiates things by himself to speed up process, etc.)- Seeking ultime personalization
Operational processes transformation
- Process Automation & integration/ data extraction withthird parties (Social Media)
- Dematerialization and non-materialization- Intelligent Data exploitation (Big Data & Analytics)- Seeking ultime personalization
Modification of Organisations and internal Modus Operandi
- Information sharing (Instant messaging, blogs,...)- Home shoring, Humanoid intelligence, etc.- Co-creation, Digital Marketing- Open Data and Open API- New types of organizations, Capacity planning,…
Financial Industry - THE DIGITAL IMPACT
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IT- Transform landscape to enable
multi-channel interactions - Integration of new technological
tools : • Social Media• Analytics / Data Mgt• Cloud services• Mobility
Industrialization + automation to reach: - Intelligent and “self-learning”
information system (with businessrules)
- Efficiency in front-to-back processes
- Cyber and information security
SALES / PRODUCTS
- Re-think : Customers portfolio & portfolio segmentation based on Profitability
- Re-think : Scoping of provided services and related tariff policy
- Re-think : Relationship model for more proximity (+by distance)
- Re-think : Commercial methodologies and standards
ex Sales people Advisers
- Coach / help (channel) partners, ecosystem to manage “changes” and impacts on their side (end-to-end)
STRATEGY / ORGANIZATION
- Review Company Strategy and positioning (ABC/budget allocate)
- Re-think Distribution organizationto support new relational models
- Re-think : Production organizationto better bridge “front to back”
- Re-think : Governance, Roles & Responsibilities, format and workforce (incl. branches if Banks)
- Enable “Orchestration” in terms of Customer-Fin. Institution relation
- Think on how organization mayabsorb future regulations in a smooth way (seen as simple change)
HR
- Prepare and support wholeorganization for cultural change
- Train people on new ways of working (Tools, interactions,..)
- Review Comp & Ben Model- Talents acquisition & Retention- Transform HR teams to recruit
new types of profiles (digitalmarketing, Big Data specialist, etc)
- Re-think salary grid and job types as new profiles (simulate cost impact on organization and salary evolutions on existing profiles and people to “transform”)
Financial Industry - CHALLENGESModels “2K Years” not ready for future…Change is Mandatory
Main Customers evolutions Financial Industry : Challenges
Main Customers expectations
- “Mass Affluents” emergence (between retail and Private
Banking)
- Rejuvenation of Customers with financial capacities
- Customers financial competences are increasing
- Trust in financial institutions, lack of credibility in Asset
Managers/ Representatives
- Increase usage of Multi-channel and internet
- Assets/ Goods spread over different institutions
- Multichannel and internet usage increase
- Need for diversified types of investments
- More transparency and autonomy (credibility)
- Simplified products to better understand them (Trackers)
- Proactive personalized advice and proposals
- Capabilities to receive services and interact by distance
(mobile)
- Help Customers to increase their competences
20 20
Financial Services
21 21
Some ideas to develop financial market 1/8
ASSUMPTIONS - PROSPECTS/CUSTOMERS TO TARGET
1 2
3 4
PROPOSED SEGMENTATION FORPROSPECTS/CUSTOMERS (to be discussed)
CUSTOMERS TIERING APPROACHMIX OF HUNTING & FARMING
- Retail Banking: >300 employees (TBD: 150-300 employees ?)
- Wealth & Investment Mgt: Based on number of assets/Value underadministration
- Insurance : >100 employees
- If Other ? : Let’s define it together- Segmentation will also be based on Customers financial capabilities(ex: smaller companies with bigger revenues/ margins, etc.)
- Tier 1 : Best Customers (almost blind consumption or open to implement new/trendy concepts)
- Tier 2 : Correct/Good commercial relationship but cyclic (need to strengthen relationship on long term)
- Tier 3 : Greenfield (everything must be build)
Due to relationships, some Customers expect more or less time to be developed. The objective is to balance invested time Vs results.
DEFINE COMPANIESTO DEVELOP FIRST
STAKEHOLDERS TO MEET (to define per Prospect/Customer)
For each domain : - Retail Banking- Wealth & Investment Mgt- Insurance (life & non-life)
In the next slides are proposed :- A list of companies (ranking) to develop- A SWOT analysis related to their respective sectors
- CxO level, all Board members/executives, HR Director
- Main Functions Representatives : Investment/Wealth Mgt, RetailBanking, Corporate Banking, Life Insurance
- Business Units Managers : Compliance Manager, FA, TA, Risk, Credit, Audit, BCP, …
As each organization empowers people differently, approach will vary from one company to another one.
22 22
Some ideas to develop financial market 2/8
WEALTH & INVESTMENT MANAGEMENT
Strengths Weaknesses
Strong professionalism of the local workforce
Stabled legal framework
Solid experience in Fund Migration
Enviable reputation
The Fund industry is the backbone of the country, hence constantly being supported by the government
Highly motivated workers. Thanks to the high salaries and the quality of life that Luxembourg offers
Strong RI Funds Market (28 % of RI Funds in EU – EUR 129 billion )
Increasing Product Demand
Strong influence in neighboring domestic markets (50% of funds are Lux based)
Overlap among financial regulators (EU)
Frequently changing rules – making planning difficult ( EU Directives)
Underdeveloped Fund Management sector
The university of Luxembourg cannot meet demand for the skillset needed for the Fund Industry
The industry relies on foreign workers
Opportunities Threats
Strong demand for servicing Onshore funds in Luxembourg- a new phenomenon
Asset Management opportunities – Law and incentives to support this exists
Islamic funds being absorbed by the UCIT structure
Mergers and takeovers on the increase
Regulatory convergence – information sharing
AIFMD to boost alternative Funds in Luxembourg
New Business wins from Swiss - Swiss-based funds lack EU distribution
Migration of fund families ( Swiss based funds)
The drive for efficiency leading to consolidation
UCIT EU passport will provide more flexibility for non-Luxembourg Management UCITS from abroad, hence increasing competition.
Outsourcing back office work on the increase. Watch out for Lithuania and Poland.
New regulation on IT systems following the Bank systems failure in the UK (2012)
Rivalry with Ireland
The outcome of the current EURO zone crisis could change the fund landscape in Luxembourg
Watch out for massive redemptions when the opting out of Greece is closer to reality
(Source : Monterey Insight (previously Lipper Thomson Reuters)
23 23
Some ideas to develop financial market 3/8
BANKING COMPANIES RANKING 2011
(Source : KPMG)
Strengths Weaknesses
Banks have increased their provisions for general banking and financial risks
Luxembourg banks that are Subsidiaries' are sometimes doing better than their mother house
Overlap among financial regulators (EU)
Frequently changing rules – making planning difficult ( EU Directives)
Underdeveloped Fund Management sector
The university of Luxembourg cannot meet demand for the skillset needed for the Fund Industry
The industry relies on foreign workers
Opportunities Threats
The solidarity of the state (ex-Dexia BIL and ex-Fortis)
-political and legal stability
Legal evolutions on secrecy
World competition
24 24
Some ideas to develop financial market 4/8
INSURANCE COMPANIES - RANKING 2013 Strengths Weaknesses
European insurance passportLuxembourg as a hub to distribute life insuranceproducts among the EU
High product expertise
Investment flexibilityLife insurers can thus offer numerous sophisticatedproducts
Exemplary market stability (political,economic and social), together with anattractive legal baseFor international pension funds, and thusperforming pension funds for European investors.
Neutral tax environment No tax in Luxembourg neither insurance premiums, nor capital gains realized on the surrender or maturity of the contract, nor death proceeds paid to beneficiaries. In the context of units of account linked to Luxembourg life assurance policies, interest, dividends and gains are reinvested gross of any tax
Narrow and already highly penetrated domestic insurance market 11th country in the world in terms of volume direct insurance especially in non-life insurance business.
Local insurers mostly branches of international groups, and thus having low decision-making possibilities.
Opportunities Threats
« PSA » status
Likely to increase flexibility and to bring about abetter work organisation and optimisation ofoverheads
Strengthening of legal and tax environment abroadAn additional motivation for international investors to be interested in Luxembourg insurance products
Ongoing pension reform
Domestic wealth growth Population still growing together with salary indexation mechanism
High costs coming from Solvency II implementation constraints + and its pending
uncertainties
Cross-border life insurance business linked to financial marketsSensitive and likely to be hit again by financial crisis
Deterioration of local legal and tax environment
Scenario where Euro-zone ceases to existInsurers are important owners of European sovereign bonds + depend a lot from interest rates level
On life insurance side, mainly single premiumsThus business having to be renewed every year
Compagnies / Primes émises en euros Total encaissement Non-Vie Total Vie Total
CARDIF LUX VIE 2 350 456 209 - 2 350 456 209
LOMBARD INTERNATIONAL ASSURANCE S.A. 2 266 509 131 - 2 266 509 131
LA MONDIALE EUROPARTNER S.A. 2 202 511 173 - 2 202 511 173
SWISS LIFE (LUXEMBOURG) S.A. 1 961 141 716 - 1 961 141 716
SOGELIFE S.A. 1 740 966 745 - 1 740 966 745
CALI EUROPE 1 562 246 413 - 1 562 246 413
ALLIANZ LIFE LUXEMBOURG S.A. 1 087 886 086 - 1 087 886 086
SWISS RE INTERNATIONAL S.E. 1 087 880 447 1 087 880 447 -
BALOISE VIE LUXEMBOURG S.A. 874 805 768 - 874 805 768
R + V LUXEMBOURG LEBENSVERSICHERUNG S.A. 791 124 092 - 791 124 092
NATIXIS LIFE S.A. 697 370 742 - 697 370 742
ZURICH EUROLIFE S.A. 621 411 481 - 621 411 481
PRIVATE ESTATE LIFE S.A. 380 608 476 - 380 608 476
FOYER INTERNATIONAL S.A. 354 828 788 - 354 828 788
IWI - INTERNATIONAL WEALTH INSURER 353 667 180 - 353 667 180
FOYER ASSURANCES S.A. 310 068 938 310 068 938 -
SKANDIA LIFE S.A. 299 041 064 - 299 041 064
GENERALI LUXEMBOURG S.A. 259 366 872 - 259 366 872
LA LUXEMBOURGEOISE S.A. 223 027 152 223 027 152 -
VORSORGE LUXEMBURG S.A. 210 324 270 - 210 324 270
SWISS LIFE PRODUCTS (LUXEMBOURG) S.A. 203 985 359 - 203 985 359
ABN AMRO LIFE S.A. 203 858 654 - 203 858 654
THE SHIPOWNERS MUTUAL PROTECTION AND INDEMNITY
ASSOCIATION
177 994 072 177 994 072 -
FOYER VIE S.A. 152 589 963 - 152 589 963
CAMCA ASSURANCE S.A. 150 868 287 150 868 287 -
ING LIFE LUXEMBOURG S.A. 150 287 532 - 150 287 532
THE WEST OF ENGLAND SHIPOWNERS MUTUAL INSURANCE
ASSOCIATION (LUXEMBOURG)
148 499 744 148 499 744 -
VITIS LIFE S.A. 136 629 293 - 136 629 293
LA LUXEMBOURGEOISE VIE 132 865 759 - 132 865 759
ATLANTICLUX LEBENSVERSICHERUNG S.A. 129 536 009 - 129 536 009
ALTRAPLAN LUXEMBOURG S.A. 119 377 965 - 119 377 965
AXA ASSURANCES VIE LUXEMBOURG S.A. 111 823 692 - 111 823 692
AXA ASSURANCES LUXEMBOURG S.A. 102 372 573 102 372 573 -
Total 22 265 705 687 2 654 250 708 19 611 454 978
(Source : ACA - Association des Compagnies d’Assurance)
25 25
ASSUMPTIONS - TOPICS TO DEVELOP
Big Data (Predictive) Analytics
Crowd investing Social Media Cloud Smart Banking (Mobile)
Humanoidintelligence
HR Transformation
Why ?3 simple reasons :
1) Optimize existing financial models (costallocation, margins, etc.) and implement an automated system totreat data more precisely
2) Time to preparedata for reportingsystems will cost more and more (todayregulatory represents~50% of all projects); Big data enables usage of raw data
3) How to be digital, use cloud, social media, etc. if your systems are not ready to treat information in efficient way ?
Why ?3 simple reasons :
1° Based on algorythms, different types of paterns,Anaylitcal solutions help to predict which may be very important, by example, in financial risks analysis (predit credit risk, solvency risk, etc..)
2) Predictability maybe use in every domains : people turn-over in company, regulatory risks, risks of bankrupcy, asset managers efficiency, balanced score cards, etc..
Why ?2 simple reasons :
1) Like cowdfunding,alternative channels to classical banks/ investors are created; therefore 2 possibilities:Or existing players are leading this trendOr they leave this to other players (impact on their revenue to be estimated)
2) Certainly some advisory to beproposed in this field
Why ?3 simple reasons :
1) Interactive, socialmedia help to discover information, to share,to communicate and bring some proximity between people.
2) Companies will capitalize a lot on social media to segment types of customers, prospects as there are a lot of existing communities
3) Within companies, it will facilitate new comers integration by giving them the possibility to build new relations, discover life within company, etc..
Why ?3 simple reasons :
1) IT Resources are shared and payed based on consumtions (so capacity is not paid when not used)
2) Enables to work anywhere, anyplace with different types of applications where access may be distributed in a few seconds(soft.catalogue)
3) For some activities, no need to have a dedicated team to maintain some types of environments, and/or applications
Why ?3 simple reasons :
1) Access your account anywhere
2) Check your balance before paying somewhere
3) No need to go to branch
Why ?3 simple reasons :
1) Contsant quality of work : mood doesn’t change, works based on business rules, always on time , (or battery issue),…
2) Opening a lot of new considerations : working hours, more than 15 languages in 1 body, always connected therefore real-time information, etc.
3) Artificial Intelligence may do a lot (scanning and analyzing people reactions, treat a lot of information) May help to optimize payroll costs
Why ?3 simple reasons :
1) Shock of cultures / generations (C/Z) may be quite hard as technologies will expand the gap
2) Companies will certainly need exernal help to structure all coming changes; or they prepare the change or they will face a tsunami
3) Let’s use those internal changes to promote this service within financial institutions (usually tackling subjects a couple of years later tahn other sectors)
Some ideas to develop financial market 5/8
TopicAsset
ManagementBanking
incl.branchesInsurance Comment
Big data X X X Big Data & Analytics Topics to cover together as strength comes when they are used togetherPredictive Analytics X X X
Mobility / Smart Banking X X XInformation/Content must intelligently thought to be present on any type of device
Cloud/ external providers X X XService approach is key; therefore if provided internally or externally, most important is : secure, reliable and cost efficient
Humanoid Intelligence X Mainly used for contact facing needs
Holographic Displays X Optional today, may be a must have tomorrow to interact … ex: tablets
26 26
- Company Strategy and departmental- Governance & Organization Optimization- Business & IT alignment- IT Transformation- Risk & Security- Cost efficiency - Contracts & Purchase Optimization
- Core Application implementation- Business Process optimization- Operations optimization- Program & Project Management- RFP writing- PSDC / Legal archiving / ECM
Some ideas to develop financial market 6/8
- Big Data- (Predictive) Analytics / Data Management- Crowd investing- Digital - Social Media- Cloud Services / Service Catalogue- Smart Banking (Mobile)- Humanoid intelligence
- HR Consulting
REGULATORY
- AIFMD- Basel III,
CRD IV- BEPS- EMIR- FATCA- MiFID 2- SOLVENCY II- UCITS IV
And next ones…
“ CUSTOMERS ”- CEO- CFO- COO- CIO- HR Director- Legal & Risk- BU Managers, etc..
EXTERNAL CUSTOMERS :
- Channel Partners- Customers
Value ScaleFrom “Common services” to Added-value “Digital Services”
BASE SERVICES
STRUCTURING SERVICES
DIGITAL SERVICES
PORTFOLIO - 3 Pillars:
1) Digital Services2) Structuring Services3) Base Services
27 27
Some ideas to develop financial market 7/8
ASSUMPTIONS - HOW TO ? …. WHAT’S IN ?
Design
- Build Content (Concept +Bricks)
- Build Demo environment/ functional POC (if ok)
- Facts & Figures : ROI, TCO, Quick wins, etc..
- Define Approach to sell
- Define approach to implement/Deploy (elements to consider)
Assess
« The Concept » & Portfolio Bricks to address
understanded results
Building the Case :
Show the Concept (+ Bricks) in internal Presentations
- Estimate Target Operating Model
- Estimate workloads andinvestments to buildsolutions + Returns(potential earnings, image, market coverage, etc.)
- Team building up :Who to train, how to increasepeople knowledge, type of profiles to deliver
- Needs to support the initiative (technology, environment, etc.)
Understanding
- Market Trends- Customers needs
- New Services needsrequested
- Competition Evolution
Deploy at Customers
with Monitoring (metrics to reuse to other customers)
Promote on the Market
Test internally with people on the bench
(if feasible)
1-4 days 3-5 weeks 1-5 weeks TBD per Topic
16-24 weeks
Operate & Review
Confirm Business Caseand ROI or TCO
8-16 weeks
Strategy
Processes
People
Technology
Programme & Change Delivery
David will drive and orchestrate complete process :
Internaly - Organisation : Market & Trends follow up, Preparation, building competence center, etc.- Orchestrate people in the delivery : Bid Mgt, proposals writing, project delivery, etc.- Financials : building cases, investments, etc.- Mapping business issues with IT solutions
Externaly - Promote to market/Customers- Manage projects- Drive our teams
28 28
Some ideas to develop financial market 8/8
ASSUMPTIONS - INVESTMENTS & EFFORTS TO PREPARE PORTFOLIO
Big Data (Predictive) Analytics Crowd investing Social Media
Technologies to Benchmark : Usability, management, ease to use, ease to integrate, security, TCO, quality of support, etc.
Big Data OpenSource Platform: Hortonworks, Cloudera, MAPR
Flume, Sqoop, Hive, Pig, Tajo, Spark, Hadoop
Open source : R, Knime, Mathlab,
Proprietary : SPSS, Stata, SAS, Mathematica,
Specific to Customer environment 2 approaches :- Based on existing ones
- For enterprises (yammer, tibbr,zyncro, etc
- Public : linkedin, Facebook, etc.- Tracking raising players and theircapabilities
Types of profiles needed Solution Architect (apps landscape)Solution Architect (IT)Technical profiles (sys. Engineers, data mgt experts, ETL developers,
Business Line experts, assetmanagers representatives,
Solution Architect (apps landscape)Solution Architect (IT)Technical profiles (API integrators, developers, security specialists, etc)
Efforts +/- 5 weeks Team : 4-5 people (Depending scope: multiple sources, data treatment, volumes, etc.)
+/- 5 weeks Team : 4-5 people (depending scope: type of expectresults, type of analysis to drive, number of sources, etc.)
To validate with experts (based on complexity, type of products, technologies to use and integrate, targeted markets, etc.)
+/- 5 weeksTeam : 4-5 people (dependingscope: depending )
Cloud Smart Banking (Mobile) Humanoid intelligence HR Transformation
Technologies to Benchmark : Usability, management, ease to use, ease to integrate, security, TCO, quality of support, etc.
Global : Amazon, Google, IBM,Microsoft, HP, EMC/VMWare,Salesforce, Rackspace, Citrix, Global open source : Cloudera, Red Hat, Joyent, Zoho, Puppet,etc.Local : Post, Telindus,
Specific to Customer environment See what is existing on the marketEx: Pepper Robot
Customers toolsProvider / Market tools
Types of profiles needed Solution Architect (apps landscape)Solution Architect (IT)Technical profiles (sys. Engineers, network & security engineers, developers, API integrators, …)
Solution Architect (apps landscape)Solution Architect (IT)Technical profiles (API integrators, developers, security specialists, etc) Business Analysts/ Business experts
Solution Architect (apps landscape)Solution Architect (IT)Technical profiles (API integrators, developers, security specialists, etc) Business Analysts and experts
Specialits per area : - Payroll- Compensation & Benefits- HR director- All other HR profile necessary
Efforts +/- 5 weeksTeam : 4-5 people (depending scope)
+/- 5 weeksTeam : 4-5 people (depending scope) enough for a correct prototype
Define integration possibilitieswith Customer’s environment
+/- 5 weeksTeam : 2-3 people (depending scope)
CONSIDERATIONS- As technologies are evolving (too) fast, choice must be done on « Market/ Open standards » (XML, XBRL, web services, html5, etc.)- One of the objectives is to use « plug&play » technologies , meaning replace provider/solution whenever you want in « a click »- Ideally, a lab based on Cloud technologies will be created to show the Case
29 29
Internal direct Costs Direct costs engaged by
the Operations to manage Customers and their
Operations
Activities to ManageCost per Team and theirallocation by Customer
Analysis related to all directs costs to manage provided services to Customers
Front Office
Operations
Transverses Functions(IT, Finance, RH, legal)
Market Costs / Stakeholders
External treatment costs for the Operations
• Customer Relationship Management
(call, meeting, …)
• Services & Products Sale
(Research, investments ideas, products structuration, pitch, roadshows, conferences, …)
• Representation Costs• Events Costs• Commercial discount
• Execution Costs (Stock Exchange, market places, Broker, …)
• Operations «Normal» lifecycle handling
(booking, confirmation, Securities transactions, payments, closing)
• Anomalies handling(Customers relaunch, analysis, corrections)
• Exceptions handling (specific reporting, non standard channels, …)
• Specific handling(IT : connectivity, developments, reporting, Legal: assembly, ad-hoc documentation , …)
• Dedicated Marketing Costs
• Generally insignificant
• N/A
• Compensation/ Clearing costs
• Settlement/Delivery costs
(Custodian, Swift…)
• Costs related to collateral
(Cash, Custody, …)
Financial Markets - Asset Mgt - Approach in 2 PhasesCosts identification via Business process reviews with Strong Management implication
• MarketData costs(Terminals, specific subscriptions per product, …)
• General resources costs/Overheads(Offices, …)
• IT Costs(Infrastructure, Operations, Developments, …)
• Central functions costs(Legal, HR, Finance, Control, Compliance, …)
Reallocate indirect costs via key allocations
Indirect CostsGeneral operating expenses
1 2
30 30
Financial Markets - Asset Mgt - Approach in 2 PhasesCosts identification via Business process reviews with Strong Management implication
• Achievements on short term:
o Identify hidden costs
o Spotlight Manual tasks, exception management, bottle necks, …
o Underline abnormal market costs
o Performing Modalities related to customers,
o Pinpoint wrong focus in terms Commercial / marketing efforts (customers allocation and
segmentation)
• Achievements on mid-long term:
o Better adjustments in terms of Mix Product/Price/Customer
o Identify deep transformation programs to drive (organization, process, systems) to enable
costs decrease and expected benefits
o Correctly invoice Customers with real costs of services (and related performed activities)
o Simulate potential impacts due to new tariff policies or organization changes
Common issues (Banking, Asset Mgt, Insurance)
Common solutions SolutionsPortfolio
Need to automate processes and decrease manual tasks Objective 1 : lower cost of transaction or cost of product This also may be used for internal control / compliancy as
all information/data is logged, automated and tracked
Dematerialization & non-materialization Result 1a : Productivity gain Result 1b : Better granularity in terms of Costs allocation Result 1c : automated reporting for compliancy needs (to
internal and external authorities)
BPM, ECM, PSDC Big Data & Analyticsto automate someintelligent treatments and controls
If end-to-end « electronic » processes, Objective 1 : optimize interactions with internal and/or
external Customers/ Partners (asset managers, etc..) Objective 2 : Provide tooling for New Way of working
(NWOW) Objective 3 : manage fraud
Publishing solutions based on business Rules Result 1 : Personalized content (based on risk, product, profitability, Customers with more interactions, etc.) Result 2 : Digital working (mobile devices, digital signature,
etc.)
IndividualizedPublishing(Editique) based on business rules
Mobile & Cloud
Based on all internal/external information/data, Objective 1 : rate customer value/profitability, product
value, etc. Objective 2 : define product lifecycle / create new products Objective 3 : Sales performance/ asset managers
performance (margin generation, cost per contact, customers retention)
Restructuring Portfolio, Customers to focus on Validate real margins, refund value, etc.Compare our treatment costs with competition/market
Big Data & (Predictive) AnalyticsSmart & algorythmicbanking
Asset Management Case: Linking Costs optimizations with Portfolio 1/3
Internal direct Costs Direct costs engaged by
the Operations to manage Customers and their
Operations
Activities to ManageCost per Team and theirallocation by Customer
Front Office
Market Costs / Stakeholders
External treatment costs for the Operations
• Customer Relationship Management
(call, meeting, …)
• Services & Products Sale
(Research, investments ideas, products structuration, pitch, roadshows, conferences, …)
• Representation Costs• Events Costs• Commercial discount
• Execution Costs (Stock Exchange, market places, Broker, …)
Common issues (Banking, Asset Mgt, Insurance)
Common solutions SolutionsPortfolio
Try to automate and standardize all operations includinganomalies or custom activities / exceptions to decreaseoperational costs and avoid manual treatment (potentialerrors)Objective 1 : treat as much as possible to decrease the cost of a product, service or transaction
Dematerialization & non-materialization Result 1a : Productivity gain Result 1b : Better granularity in terms of Costs allocation Result 1c : treat anomalies / exception in automated way
based on business rules
BPM, ECM, PSDC Big Data & Analyticsto automate someintelligent treatments and controls
Objective 2 : based on regulatory rules, guarantee that liquidity and credits are well managed to avoid payment defects; also include all the tax aspects
Result 2 : this covers all measures in terms of regulations(Basel, Solvency, Mifid, Fatca, etc.)
Same as objective 1
Internal direct Costs Direct costs engaged by
the Operations to manage Customers and their
Operations
Activities to ManageCost per Team and theirallocation by Customer
Operations
Market Costs / Stakeholders
External treatment costs for the Operations
• Operations «Normal» lifecycle handling
(booking, confirmation, Securities transactions, payments, closing)
• Anomalies handling(Customers relaunch, analysis, corrections)
• Exceptions handling (specific reporting, non standard channels, …)
• Generally insignificant
• Compensation/ Clearing costs
• Settlement/Delivery costs
(Custodian, Swift…)
• Coût du collateral(Cash, Custody, …)
Asset Management Case: Linking Costs optimizations with Portfolio 2/3
Common issues (Banking, Asset Mgt, Insurance)
Common solutions SolutionsPortfolio
Objective 1 : HR : Employee performanceTrend analysis, turno-over, process automation, end-to-end tasks (from job description up to evaluations), simulations, pyramid age, etc.
Objective 2 : IT as a Business facilitator
Result 1a : Employee profitability Result 1b : Talents retention Result 1 c: alignment between resources vs company
strategy and what to deliver
Result 2 : provide all necessary tooling to business and internal people to maximize automation, reduction time in tasks, enable anywhere any place
Business & IT Alignment
Cloud / Mobile
BPM, ECM
PSDC
Analytics/ ECM
Social Media
Internal direct Costs Direct costs engaged by
the Operations to manage Customers and their
Operations
Activities to ManageCost per Team and theirallocation by Customer
Transverses Functions(IT, Finance, RH, legal)
Market Costs / Stakeholders
External treatment costs for the Operations
• Specific handling(IT : connectivity, developments, reporting, Legal: assembly, ad-hoc documentation , …)
• Dedicated Marketing Costs
• N/A
Asset Management Case: Linking Costs optimizations with Portfolio 3/3
All optimizations are normally applicable for transverse functions
34 34
Sector Sub-Sector Main topic Sub-TopicFinance All financial companies (Bank, Insurance) Legal, Regulatory & Compliance (Basel, Solvency, IFRS,etc)
Risk Mgt Credit Risk & Scoring
Liquidity Risk
Data Loss Prevention
Basel 3 / Solvency 2
Stress Test Simulation
Audit - Compliance Log correlation
Fraud Mgt + Trend AnalysisQuality Transactions -Fraud Payment
Insurance - Fraud related to contracts/ damages
Private banking Portfolio (evolution) simulation
Fund Investments Time for NAV calculation optimization
Fund performance
Providers performance
Funds evolution simulation
Margins optimization
Matrix - Some ideas to position Analytics 1/4
35 35
Sector Sub-Sector Main topic Sub-Topic
Matrix - Some ideas to position Analytics 2/4
Cross-IndustriesCustomers Management Customer segmentation
Customer Risks for unpayment
Front-end apps customization based on profiling
People behaviour & trend analysis
Usage of social media and mobile data to have targeted customer approach (marketing, sales, etc.)
Customer value and ranking
Products Portfolio Optimization
Product Optimization
Transverse to companies Performance Management
Company profitability optimization
Activity Based Costing
Projects efficiency
Cross-charging
Cost models optimization and base of its calculation
Real time What if analysis
Business Rules editic reporting/analysis
Text mining to enable digital working --> show concept of NWOW !
Internal teams composition and adequation linked to sales figures and costs
Data Governance, Data Classification & Data Management
Finance & Admin Costs & Budgests simulations
36 36
Sector Sub-Sector Main topic Sub-Topic
Matrix - Some ideas to position Analytics 3/4
Public Sector Finance - Tax DepartmentFraud Mgt + Trend Analysis
Tax declaration optimization (Based on Big data --> info related to taxed people)
Hospitals - Health Care Customer Risks for unpayment
Social Security Sejourn optimization
Capacity Planning
Fraud Mgt + Trend AnalysisFraud Payment/ Costs Reimbursment
Illness trends
Cost Management & organization efficiency
Police People behaviour & trend analysis
Usage of social media and mobile data to have efficient Police activities
Risk & Threat management
Stats Eurostat - Statec Luxembourg - ILRES - Other companies using statistics
Ministries Stats
Cost cutting / Costs Optimization
37 37
Sector Sub-Sector Main topic Sub-Topic
Matrix - Some ideas to position Analytics 4/4
HR - Cross Industries People efficiency & Productivity
People turn over optimization
People motivation degree
Seek & Search People optimization
Telecom Churn
Coverage and bandwidth optimization - Capacity planning
Campaign marketing optimization
Fraud behavior& Usage
web Sales -FMCG Customer and product adequation
Amazon, iTunes, eBay, Gaming companies, other
Post & TransportRoute Optimization
Supply Chain Capacity planning & forecasting
Employee efficiency