At BA Conference, ThoughtWorks®, Pune       On September 15, 2012          By Lokesh Parakh
Payment IndustryInnovation                      Disruption               Opportunities Mindset          Analysis      Skil...
Payment Industry
Payments is transfer of money from one party to            another, typically in exchange of goodsBarter system       Prec...
Source: Payfirma – Payment Ecosystem
…. simple for ecosystemSource: Australian Payment Association, Low Value Payments, 2008
Source: Australian Payment Association, Low Value Payments, 2008
Source: Australian Payment Association, Low Value Payments, 2008
Innovation
Search     Payments                             Google offersSource: Google Commerce
Apple has potential to leverage 225 million cards through      its Passbook wallet and NFC enabled devicesSource: www.appl...
Source: McKinsey Global Institute
AnalysisPossibilities vs Synergies
Business            Technology         OperationBy working at intersection of conflict and innovation!
Wear multiple hatsDisseminate relevant information        Enable decisions     Obtain commitments   Participate at every s...
Managing         Leadership                                    •Team                                                     •...
Case StudyMasterCard’s first Private Label Card
Requirement Source Requirement Owners                        Gather                     Issuing Bank (AUB)               ...
Interpret                Frame                    Design• GAP analysis  between                                        • P...
When it’s data or intuition;Use Decision Support Systems           Intuition            Data
Based on priorities developed a framework to evaluate options on  breadth of functionality, technology and commercial viab...
Particulars                                            Year 1 Year 2 Year 3Net Cost / benefit                             ...
As an Analyst we can help industryplayers bridge the challengesLokesh ParakhE-mail: Lokeysh@gmail.com
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Payments Domain - Bridging Challenges - Lokesh Parakh

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Payments Domain - Bridging Challenges - Lokesh Parakh

  1. 1. At BA Conference, ThoughtWorks®, Pune On September 15, 2012 By Lokesh Parakh
  2. 2. Payment IndustryInnovation Disruption Opportunities Mindset Analysis Skill Set
  3. 3. Payment Industry
  4. 4. Payments is transfer of money from one party to another, typically in exchange of goodsBarter system Precious Paper money Symbolic Digital cash• Premature times metal coins • ~1700 AD money • Soon, we will be• Exchanging • ~600 BC • Today there • Provisioning • Bitcoin?
  5. 5. Source: Payfirma – Payment Ecosystem
  6. 6. …. simple for ecosystemSource: Australian Payment Association, Low Value Payments, 2008
  7. 7. Source: Australian Payment Association, Low Value Payments, 2008
  8. 8. Source: Australian Payment Association, Low Value Payments, 2008
  9. 9. Innovation
  10. 10. Search Payments Google offersSource: Google Commerce
  11. 11. Apple has potential to leverage 225 million cards through its Passbook wallet and NFC enabled devicesSource: www.apple.com
  12. 12. Source: McKinsey Global Institute
  13. 13. AnalysisPossibilities vs Synergies
  14. 14. Business Technology OperationBy working at intersection of conflict and innovation!
  15. 15. Wear multiple hatsDisseminate relevant information Enable decisions Obtain commitments Participate at every stage
  16. 16. Managing Leadership •Team •Vision •Client •Inspiration •Self •DelegationBusiness Need•Competitive Implementation•Organizational •Dedication•Financial Problem Intuition Solution •Reaction•Operational •Completion •Iteration Data Analyzing Presenting •Framing •Structure •Designing •Buy-in •Gathering •InterpretingSource: The McKinsey Mind
  17. 17. Case StudyMasterCard’s first Private Label Card
  18. 18. Requirement Source Requirement Owners Gather  Issuing Bank (AUB) • Based on MoU,  Merchant (Sultan Center) prepared a  Program sponsor (Bait Zakat) comprehensive External  Card Association (MasterCard ) business  Central Bank (NBK) requirement document • Retained only justifiable requirements  Business team Internal  Operations team Baseline
  19. 19. Interpret Frame Design• GAP analysis between • Prepared initial requirements and • What to offer? hypothesis card management • How to offer? • Built prototype system • Degree of flexibility • Conducted• Prioritized “must walkthroughs have” and “good to • Finalized framework have” features Suitability Direction Roadmap
  20. 20. When it’s data or intuition;Use Decision Support Systems Intuition Data
  21. 21. Based on priorities developed a framework to evaluate options on breadth of functionality, technology and commercial viability Option A Option B Parameters Weightage Score Weight Score Weight Functional 50% 86% 43% 82% 41% Technical 25% 74% 19% 86% 22% Commercial 25% 65% 16% 90% 23% Net 100% 78% 85% Rank 2 1 Achieve legitimate advantage over competition
  22. 22. Particulars Year 1 Year 2 Year 3Net Cost / benefit B-A Total project cost (20% contingency) A Internal Cost Staff cost Other External Cost Capital Cost (Technology) Implementation Services Project Contractors System Gap-analysis & Enhancement scoping Operating Cost (Technology) Annual Maintenance - Hardware / Software Transaction Telecommunication Costs Payment Scheme cost All other costs Capital Expenditure Miscellaneous Total tangible project benefit B Increased Revenue Avoided Costs (example: Funding from Partners) Other (Improved Service) Postulate return on investment
  23. 23. As an Analyst we can help industryplayers bridge the challengesLokesh ParakhE-mail: Lokeysh@gmail.com

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