SAP Service to Cash for BankingIBU Banking Solution ManagementJanuary 2012
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  2
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  3
Drivers         Solution         Value   References            Demo       Summary                                        T...
Drivers       Solution      Value       References          Demo         Summary                                        Cu...
Evolution of SAP for BankingAs the Leader in Business TransformationIntegrated Enterprise Applications                    ...
Drivers      Solution    Value   References          Demo     Summary                                        Hyperconnecti...
Drivers      Solution      Value      References           Demo         Summary                                        Bus...
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  9
S2C - Integration to the Banking Solution Portfolio                                                  Customer & Employee C...
Service to CashEnd-to-End Solutions & Applications                                Relationship Pricing                    ...
SAP Convergent Charging SolutionInnovative Technology: Decision TreesOld: Code-Driven                      New: Business  ...
SAP Convergent Charging SolutionAutomated Management of Revenues & Costs© 2011 SAP AG. All rights reserved.        13
Service to Cash - Relationship Pricing               Relationship Pricing                Consolidated Customer Billing    ...
Service to CashScenario 1: Relationship Pricing                                      What is Convergent Charging when we t...
Service to CashScenario 2: Consolidated Customer Billing“Our customers want a single monthly   statement but we can‟t pull...
Service to CashScenario 3: High Volume Credit Card processing“We need a to be accommodate flexible   pricing for our trade...
Scenario 4: SAP OnDevice Charging: Moving Rating Engine & Business Logic onto Smart Cards Pricing offer is created        ...
Service to CashScenario 4: Benefits of OnDevice Charging                                      Business logic stored on the...
Scenario 5a: Factoring - Ecosystem            Seller (Bank‟s Customer and non-                             Debtor (account...
Service to CashScenario 5a: Invoice Factoring It is a financial transaction whereby a business sells its Accounts Receiva...
Scenario 5b: Reverse Factoring - Confirming                                                            Send Invoices      ...
Scenario 5b: Confirming - DefinitionConfirming (Reverse Factoring) Complete payment services managed by Bank (Factor) ins...
Scenario 5: Factoring & Confirming – Opportunity     Current challenges                            Market drivers         ...
Service to CashScenario 6: Credit Bureau Charging                                                  Charge fees           C...
Scenario 6: Credit Bureau Segment – Opportunity                                        Market drivers                     ...
Scenario 7:Sub-Segments in Capital Markets and Fee Flow                  Buy-side Firms                       Charge fees ...
Scenario 7 : Capital Market – Opportunity        Current Challenges                     Market Drivers                    ...
Service to CashScenario 8: Business Intelligence & Reporting                                Relationship Pricing          ...
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  30
Drivers      Solution       Value       References           Demo            Summary                                      ...
Service-to-Cash - Value Proposition                                   Clients                                             ...
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  33
Drivers   Solution   Value   References   Demo   Summary                                      Service-To-Cash : References...
Drivers          Solution   Value           References             Demo           Summary                                 ...
Drivers           Solution   Value           References             Demo           Summary                                ...
Drivers         Solution   Value           References              Demo           Summary                                 ...
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  38
Drivers       Solution        Value        References           Demo           Summary                                    ...
Drivers       Solution        Value        References           Demo           Summary                                    ...
Drivers   Solution   Value       References       Demo         Summary                                      Service-to-Cas...
SAP Service-to-CashDrivers      Solution   ValueReferences   Demo       Summary                                  43
Drivers    Solution   Value   References      Demo       Summary                                      From Products to Ser...
Drivers       Solution         Value        References          Demo          Summary                                     ...
Drivers     Solution      Value      References         Demo         Summary                                      Service-...
Drivers   Solution   Value   References   Demo   Summary                                      Service-to-Cash : 300+ Refer...
Appendix © 2011 SAP AG. All rights reserved.   48
SAP On-Device Charging Overview &SAP CC relationships The On-Device Charging solution takes our SAP Convergent Charging s...
B2B2C Banking use casesODC – Virtual Wallet vs. Private Payment vehicle In addition to existing offline payment means, su...
Smart Mobile Wallet: General architecture overview                                                                        ...
Smart Mobile Wallet ProposalBuild a SAP-Sybase end-to-end “Mobiliser Smart Mobile Wallet” platform allowing userto deploy ...
Mobile Payment tools overviewPayment performed with a mobile device which can be charged on: Banking card/account Carri...
© 2011        SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explo...
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  • Compared to other systems the solution uses a very different way of representing pricing and charging logic.This different approach is the primary reason our customers choose our solution.Coding is not required when making changes or designing new pricing models.Instead an intuitive graphical UI is used to allow for business configuration without lengthy coding cycles.Old: Inflexible, Long Time to Market, Poor Performance, Specialized StaffNew: Flexible, Short Time to Market, High Performance, Business Users
  • Although companies often first consider our solution for the Customer Billing or Prepaid relationship, it can also manage other parts of the company’s business model. We are doing this for multiple customers worldwide.Service providers also have to share revenues with content or technology providers (and interconnect and roaming partners for telecoms operators).Other service providers may have more elaborate multi-sided market models where other companies are using the service provider as a platform for their own business. The service provider therefore has to manage wholesale models (i.e. MVNO/MVNE for telecoms) and can offer billing as a service.With our solution, all of these revenue and costs sides of the business model can be managed in a single system, with a single pricing configuration toolset which allows modeling of the often complex inter-linkage between customer and partner pricing.Customer usage transactions flowing through the system will generate a cascade of related transactions so that all partners are properly compensated.And detailed reporting on margins can then be done, per customer, per service, even down to the detailed level of each transaction.Details:The core of the pricing model is built around “business relationships.” Any individual entity in the system can have any number of business relationships with any other entity.  Thus two companies may have a relationship where A sells to B and bills B, while simultaneously the roles are reversed and B sells to A and bills A.This core flexibility is presented through a simple pricing and contract configuration interface which puts one or more Service Providers at the center of the network of business relationships. And the default is the regular billing/prepaid model where the business relationship is customer to service provider. But the full power of the open-ended model is right there, waiting to be activated by just clicking on additional configuration tabs.Consequently one might choose to start by modeling the customer billing relationship, building the pricing models for how services are priced, promoted, bundled and charged.  Then partner models can be added into this customer-centric model: e.g., royalties for content provider partners, commissions for resellers, sponsorships or billing-on-behalf-of.The big advantage of this approach to this area of multi-party rating is that all configuration is done coherently using the same toolset. This means that you have exactly the same flexibility to define partner contract terms as you have to define customer pricing models because you use the same tools to build pricing. Recurring, one-time and usage-based pricing can be used on all partner contract pricing.  Someone trained on using the solution will be able to work on both customer and partner pricing indifferently, they don’t have to learn a totally separate interface.Above all, managing customer and partner pricing in the same place, on the same platform, means that the sometimes complex interplay between customer and partner terms can be faithfully modeled.And at runtime, as transactions flow through the rating engine, a customer usage event will directly trigger the related partner events, potentially firing off a cascade of multiple related transactions between multiple partners. All of these transactions will then get tagged as being related. This means that from a reporting standpoint you then have a very rich data set that allows you to drill down into the actual margin, looking at the profitability of services on a per customer, per segment, per service or even per individual transaction basis.
  • In summary, SAP’s innovative industry strategy blends solution innovations to deliver business value for functional areas, and technology innovations to deliver IT value for the enterprise, and delivery innovations to help businesses be “best run.” Today, we have reviewed SAP’s commitment to being the world leader in business-driven and customer-centric software solutions. First, we discussed what makes an organization “best run” in an industry, with a few examples of the KPIs they track, and a few example of organizations that are “running better.” Next, we reviewed the current conditions of the high-tech industry. What are the drivers forcing organizations to run better and innovate and transform their business processes and IT environments? We then highlighted SAP’s value to the high-tech industry to help companies in their transformational journey. We moved on to discuss in detail SAP’s innovations in solutions, technology, and delivery that are available to help high-tech companies grow and retain a competitive advantage. Finally, we captured a few references and results from high-tech companies already taking advantage of SAP’s solutions to run better.  SAP’s industry strategy is based on our long and trusted relationships with thousands of customers across 24 industries over nearly 40 years. We have consistently enhanced our solution offerings with industry-specific capabilities. Further, we support new business models evolving from simple supply chains into complex ecosystems, and single-industry processes into multi-industry value chains. Together, our solution, technology and delivery innovations uniquely position SAP to help organizations run, grow, and transform their businesses. Thank you for your time, and we look forward to continued discussions with you.
  • In summary, SAP’s innovative industry strategy blends solution innovations to deliver business value for functional areas, and technology innovations to deliver IT value for the enterprise, and delivery innovations to help businesses be “best run.” Today, we have reviewed SAP’s commitment to being the world leader in business-driven and customer-centric software solutions. First, we discussed what makes an organization “best run” in an industry, with a few examples of the KPIs they track, and a few example of organizations that are “running better.” Next, we reviewed the current conditions of the high-tech industry. What are the drivers forcing organizations to run better and innovate and transform their business processes and IT environments? We then highlighted SAP’s value to the high-tech industry to help companies in their transformational journey. We moved on to discuss in detail SAP’s innovations in solutions, technology, and delivery that are available to help high-tech companies grow and retain a competitive advantage. Finally, we captured a few references and results from high-tech companies already taking advantage of SAP’s solutions to run better.  SAP’s industry strategy is based on our long and trusted relationships with thousands of customers across 24 industries over nearly 40 years. We have consistently enhanced our solution offerings with industry-specific capabilities. Further, we support new business models evolving from simple supply chains into complex ecosystems, and single-industry processes into multi-industry value chains. Together, our solution, technology and delivery innovations uniquely position SAP to help organizations run, grow, and transform their businesses. Thank you for your time, and we look forward to continued discussions with you.
  • In summary, SAP’s innovative industry strategy blends solution innovations to deliver business value for functional areas, and technology innovations to deliver IT value for the enterprise, and delivery innovations to help businesses be “best run.” Today, we have reviewed SAP’s commitment to being the world leader in business-driven and customer-centric software solutions. First, we discussed what makes an organization “best run” in an industry, with a few examples of the KPIs they track, and a few example of organizations that are “running better.” Next, we reviewed the current conditions of the high-tech industry. What are the drivers forcing organizations to run better and innovate and transform their business processes and IT environments? We then highlighted SAP’s value to the high-tech industry to help companies in their transformational journey. We moved on to discuss in detail SAP’s innovations in solutions, technology, and delivery that are available to help high-tech companies grow and retain a competitive advantage. Finally, we captured a few references and results from high-tech companies already taking advantage of SAP’s solutions to run better.  SAP’s industry strategy is based on our long and trusted relationships with thousands of customers across 24 industries over nearly 40 years. We have consistently enhanced our solution offerings with industry-specific capabilities. Further, we support new business models evolving from simple supply chains into complex ecosystems, and single-industry processes into multi-industry value chains. Together, our solution, technology and delivery innovations uniquely position SAP to help organizations run, grow, and transform their businesses. Thank you for your time, and we look forward to continued discussions with you.
  • In summary, SAP’s innovative industry strategy blends solution innovations to deliver business value for functional areas, and technology innovations to deliver IT value for the enterprise, and delivery innovations to help businesses be “best run.” Today, we have reviewed SAP’s commitment to being the world leader in business-driven and customer-centric software solutions. First, we discussed what makes an organization “best run” in an industry, with a few examples of the KPIs they track, and a few example of organizations that are “running better.” Next, we reviewed the current conditions of the high-tech industry. What are the drivers forcing organizations to run better and innovate and transform their business processes and IT environments? We then highlighted SAP’s value to the high-tech industry to help companies in their transformational journey. We moved on to discuss in detail SAP’s innovations in solutions, technology, and delivery that are available to help high-tech companies grow and retain a competitive advantage. Finally, we captured a few references and results from high-tech companies already taking advantage of SAP’s solutions to run better.  SAP’s industry strategy is based on our long and trusted relationships with thousands of customers across 24 industries over nearly 40 years. We have consistently enhanced our solution offerings with industry-specific capabilities. Further, we support new business models evolving from simple supply chains into complex ecosystems, and single-industry processes into multi-industry value chains. Together, our solution, technology and delivery innovations uniquely position SAP to help organizations run, grow, and transform their businesses. Thank you for your time, and we look forward to continued discussions with you.
  • Service To Cash Essential Banking V4

    1. 1. SAP Service to Cash for BankingIBU Banking Solution ManagementJanuary 2012
    2. 2. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 2
    3. 3. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 3
    4. 4. Drivers Solution Value References Demo Summary The Economical World is Under Pressure HYPER COMPETITION CHANGING BUSINESS MODELSDrivers • Prices and margins are under • Product to Services shift pressureUnder Pressure • Multi-sided business • Powerful „new“ market players relationshipsCustomer Centric • Increasing customer demands • Multi ConvergenceImpacts • Immense Cost PressureBanking Scenarios INCREASED BUSINESS COMPLEXITY Companies need to • Companies need to leave their home turf dramatically transform • Highly dynamic markets drive a constant need for their business to survive change and thrive • Shorter innovation cycles and time-to-market © 2011 SAP AG. All rights reserved. 4
    5. 5. Drivers Solution Value References Demo Summary Customer Centric: Retail BankingDrivers • Financial crisis Retain customersUnder Pressure Customers: More • Regulatory pressures (i.e. with a la carteCustomer Centric Product – based offers Demand Basel III, Dodd Frank) pricingImpactsBanking Scenarios • Economies of Scale of Fight Competition Competition: larger bank with faster Time to Global Market • Market consolidation Technology: More measuring • Mobile payments Handle large points, More • Increased flexibility volumes of Data events Leading to Services-based offers Relationship (Tier, Service Level, Profitability based) Pricing Consolidated Charging and Billing New forms of Payments On Device Charging Convenience, flexibility, loyalty © 2011 SAP AG. All rights reserved. 5
    6. 6. Evolution of SAP for BankingAs the Leader in Business TransformationIntegrated Enterprise Applications Flexible E2E Decoupled Processes Integrated Banking Solutions Banking Cross-Industry Applications Solutions Real Time Computing Client Server Web-enabled Enterprise SOATechnology Platform & Architecture ~ 1980 ~ 1990 ~ 2000 Today© 2011 SAP AG. All rights reserved. 6
    7. 7. Drivers Solution Value References Demo Summary Hyperconnectivity: Impacts •Time to MarketDrivers New Services:Under Pressure Relationship- •FlexibilityCustomer Centric based pricing •B2C & B2BImpactsBanking Scenarios Massive Volume of •Scalability Real-Time •Performance Transactions Rapid Recombination •Settlement of Value •Commissioning Chains © 2011 SAP AG. All rights reserved. 7
    8. 8. Drivers Solution Value References Demo Summary Business Model Innovation : Banking Scenarios Industry Examples Value Banking Smart fee structures which limit • Avoid “statement shock” → happyDrivers general direct debit overdraft charges customersUnder Pressure Relationship Charge based on customer value, • Improved profitability, fee incomeCustomer Centric Pricing profitability and service level • Increased Customer SatisfactionImpacts Consolidated One „source of truth‟ for customer • Improved Customer Satisfaction, loyalty Fees / Billing in online banking and • Reduced revenue leakageBanking Scenarios consolidated bank statements Factoring Working capital financing, • Immediate Cash flow Collection service, receivables • Reduced operations cost management • Improve Sales volume On Device Smart phones, Tablets, online • On Device Monetization & High Availability Charging payments •Multi-Vendor Services High Volume Credit card issuing to customers • High Volume processing Credit Card for easy accessible funds • Complex partner settlement unsecured loans Credit Bureau / Helping creditors to determine the • Additional service offerings Agencies credit-worthiness of a particular • Improved rating capabilities applicant for credit. Capital Markets Desire to automate fee • Brokers live on the margin & / Exchanges processing, remove current profitability between fees for costs manual processes, move to and fees for revenues more daily processing © 2011 SAP AG. All rights reserved. 8
    9. 9. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 9
    10. 10. S2C - Integration to the Banking Solution Portfolio Customer & Employee Channels Voice IVR E-mail Fax Mobile Bank Channels Mobile Customer Relationship Management Enterprise Business Marketing Sales Service Support Customer Information Management General Ledger Products and Transactional Banking Master Contracts – Product Bundling Cost Management Deposits Loans Leasing Human Resources Service to Cash Collaterals Syndications Analytical Banking Procurement Financial Performance Bank Analyzer Price Optimization Management Corporate Services Information Discovery & Delivery Enterprise Information Management SAP Business Process Platform User Interface/ Business Process SOA Management Connectivity & Integration Shared Utilities Management© 2011 SAP AG. All rights reserved. 10
    11. 11. Service to CashEnd-to-End Solutions & Applications Relationship Pricing Consolidated Customer Billing Business Intelligence Customer Billing & Revenue & & Partner Fee Payment Expense Relationshi Payments Calculatio Statement Manageme p n Engine s nt Manageme nt Accounts Payable / GL SAP SAP Customer & SAPSAP Payment Convergent Customer Partner Business Convergent Intelligence Engine Financials Relationship Charging Invoicing Management Management  Real-Time & Batch  High Volume  Account  Financial  KPI Analysis Transaction Billing Detail Receivable Customer &  SLA Tracking Processing  Configurable  Payment Posting Partner Care  Dashboards  Flexible fee pricing Statements  Dispute Mgmt  Web Channel capabilities  Multiple Input  Credit Mgmt  Embedded Streams  Electronic Bill Settlement Presentment and Calculation Payment© 2011 SAP AG. All rights reserved. 11
    12. 12. SAP Convergent Charging SolutionInnovative Technology: Decision TreesOld: Code-Driven New: Business Configuration© 2011 SAP AG. All rights reserved. 12
    13. 13. SAP Convergent Charging SolutionAutomated Management of Revenues & Costs© 2011 SAP AG. All rights reserved. 13
    14. 14. Service to Cash - Relationship Pricing Relationship Pricing Consolidated Customer Billing Business Intelligence Fee Billing & Revenue & Customer & Calculation Payment Expense Partner Engine Statements Mgmt Relationship Mgmt Accounts Payable / GL“We can create combined statements, but we can‟t Examples of fee-types supported by SAP: combine our fee calculations for relationship pricing…”  One-time or event driven fees: • Configurable flat fee Many banks have acquired systems that can • Fee can be waived per account create a combined statement, but these systems  Periodic – e.g. flat monthly recurring charges: only aggregate the fees calculated by legacy • Configurable recurring charges applications • Charged at service activation date (not prorated) Relationship pricing models are very hard to  Fee per transaction / usage fees: create and control using spreadsheets • Deposit fee - flat fee • Transaction fee - volume/amount * price + percent Manual fee calculations have poor process % (service fee) of computed price controls resulting in very high error rates • Wire fees – threshold tiered pricing© 2011 SAP AG. All rights reserved. 14
    15. 15. Service to CashScenario 1: Relationship Pricing What is Convergent Charging when we talk about Fees and Relationship Pricing?  Relationship pricing involves looking at the customer from the perspective of a bundle of products and services  Typically, each product and service has its own fee structure and pricing logic (also referred to in Banking as “counters” or “calculations”)  Convergent Charging “converges” or settles multiple, complex fee structures for multiple products and services and prepares the fees to be submitted to the accounting sub-ledger. Example of transaction convergence affecting fees:  Scenario 1 - Number/value of credit card transactions determines checking fee  5 transactions or $1000 = fee reduced to $5  10 transactions or $4000 = fee waived  Scenario 2 - Enable loyalty program tracking  Use debit/credit card 10 times and receive 1000 rewards point (points assigned instead of fees)  Reward program assigns small share of revenue to Airline Partner (partner settlement)© 2011 SAP AG. All rights reserved. 15
    16. 16. Service to CashScenario 2: Consolidated Customer Billing“Our customers want a single monthly statement but we can‟t pull the data together…” Some banks are satisfied with their fee calculators, but don‟t have a system that can create a combined statement. Combined statements are often manually generated using spreadsheets and data marts. Manual statements have poor process controls resulting in very high error rates. If a customer makes a single payment for a manual statement, the bank will have difficulty allocating and reconciling the payment.© 2011 SAP AG. All rights reserved. 16
    17. 17. Service to CashScenario 3: High Volume Credit Card processing“We need a to be accommodate flexible pricing for our trade finance and invoice factoring business…” Issuing Credit Cards is an important source of income for the card issuing bank and the most common form of unsecured loans As an example an online Credit Card purchase cycle. Usually there are five parties involved: the consumer, the merchant, a clearinghouse, the merchant bank, and the consumer‟s card issuing bank which could be the same as the merchant bank© 2011 SAP AG. All rights reserved. 17
    18. 18. Scenario 4: SAP OnDevice Charging: Moving Rating Engine & Business Logic onto Smart Cards Pricing offer is created Rating Engine + business logic: The business logic on the device on a centralized system. containing personalized version of calculates price to pay - in offline or the offer loaded onto user’s device. online mode. SAP ODC Server Smart Mobile Wallet / Embeddable Personalizing Offer NFC Service offers Intelligent Business Logic + Charging for = User’s Account Data data / content / + Transactions Apps / Ad venue Set of & Control subscription parameters Convenience / = Real-time cost Embeddable Mgmt / Anti Bill Subscription Shock / Security / MerchantStrength: DiscountsSmart loyalty / SVA – Personalized offersfor online & offline services © 2011 SAP AG. All rights reserved. 18
    19. 19. Service to CashScenario 4: Benefits of OnDevice Charging Business logic stored on the device On-Device Monetization can be executed in both online and OFFLINE modes No single point of failure / Scalable - High Availability central platform does NOT need to be highly resilient – LOW TCO Promotions, discounts etc. from Multi-Merchant Services multiple merchants on the SAME device – allows for special value prop to bank’s merchant customers Enable PERSONALIZED service Customer Centricity offers and charging models, REAL- TIME access to balances & counters Consumer Data Privacy SENSITIVE consumer data remains on the device. Tight Security & Security management PREVENTS corruption© 2011 SAP AG. All rights reserved. Confidential 19
    20. 20. Scenario 5a: Factoring - Ecosystem Seller (Bank‟s Customer and non- Debtor (account debtor, or Customers) customer of the seller) 2 1 Charge a percentage and a Debtor is notified discountsells one or more of itsinvoices (the receivables) 4at a discount to the third 3party Factor (Bank) Collection © 2011 SAP AG. All rights reserved. 20
    21. 21. Service to CashScenario 5a: Invoice Factoring It is a financial transaction whereby a business sells its Accounts Receivable (AR, i.e. invoices) to a third party (factor) at a discount Factor provides financing to the seller of the AR, often 70-85% of the purchase price of the accounts (net of the factors discount fee (commission) and other charges etc.)Advantages: Fast and Safe increase of working capital Improves cash flow without hassle of Commercial Loans Offer better payment terms to customers In addition, S2C allows Factors to create automated combined statements improving process controls and reducing error rates© 2011 SAP AG. All rights reserved. 21
    22. 22. Scenario 5b: Reverse Factoring - Confirming Send Invoices 1 Ordering Party (Bank’s Customer and non-Customers Supplier 5 2 Withdraw amount from their Publish Invoices and credit bank account on invoice due quotation for payment inUpon agreement, suppliers dateinvoices are transferred to advance 4the bank 3 Factor (Bank) SAP Service Accept credit quotation and to Cash receive payment in advance Customer © 2011 SAP AG. All rights reserved. 22
    23. 23. Scenario 5b: Confirming - DefinitionConfirming (Reverse Factoring) Complete payment services managed by Bank (Factor) instead of customer Factor deducts commission/fee for advance from payment Customer (Ordering party) starts the process – usually a large company – choosing invoices that should be paid in advance Supplier verifies need for immediate payment of invoices Fairly collaborative process between the ordering party, the supplier and the bank (factor) Advantages: Possibility of receiving advances on collections Simplified Payment processing Improved Payment terms and cash flow Immediate financing supplier‟s receivables© 2011 SAP AG. All rights reserved. 23
    24. 24. Scenario 5: Factoring & Confirming – Opportunity Current challenges Market drivers Opportunity  Simple and integrated  The factor provides immediate working  Real time quotation architecture to launch capital to the supplier and supports capabilities Factoring LOB better payment terms, immediate cash flow and reliable business transactions  Full auditable revenue  No real-time quotation stream of each single capabilities  The factor provides a durable business transaction (accounts relations and credibility as everyone receivable and  Need for full auditable benefits (ordering party and supplier) accounts payable) revenue stream of each single transaction  The factor consolidates processes for (accounts receivable and the ordering party and presents besides accounts payable) a single point of contact added security and convenience for its banking clients© 2011 SAP AG. All rights reserved. 24
    25. 25. Service to CashScenario 6: Credit Bureau Charging Charge fees Commercial Customer Retail Customer Customer Credit Profile SAP Convergent Credit Bureau Charging Prospects Customer Credit Profile Customer Credit Profile Charge fees Banking & Insurance SME/Microfinance (automobile collision and comprehensive insurance, life insurance, loan insurance and Enterprises accident and disability insurance.)© 2011 SAP AG. All rights reserved. 25
    26. 26. Scenario 6: Credit Bureau Segment – Opportunity Market drivers Consolidation, recombination, increased competition, adjusted business models Opportunity  New value-added-services such as risk-based scoring, address verification, alerts…  Requirement for a flexible relationship pricing engine  Process fee / pricing calculation in real time and batch  Real time quotation capabilities  Rapid fee structure changes, quicker time to market for new products  Scalability to handle large volumes of records per second© 2011 SAP AG. All rights reserved. 26
    27. 27. Scenario 7:Sub-Segments in Capital Markets and Fee Flow Buy-side Firms Charge fees Mutual Funds, Hedge Commercial Firms. Funds, Insurance Companies, etc. Buy through Buy through Sell-side Brokers Prime brokers, Inter-dealer brokers, Banks, Futures Commission Merchants, etc.SAPConvergentCharging Trade through Clear & settle throughProspects Charge fees SAP Convergent Clearing Houses Charging Exchanges Clearing houses, Settlement Customers Systems, Custodial Services (CSD)© 2011 SAP AG. All rights reserved. 27
    28. 28. Scenario 7 : Capital Market – Opportunity Current Challenges Market Drivers Opportunity  Existing systems are  Potential customers and  Brokers live on the margin typically homegrown technology providers agree that & profitability between fees systems fee management is a pain point for costs and fees for revenues  Requirement to manage  Discounting & bundling to retain  Opportunity to innovate by fee structure complexity favored customers proposing that total cost of  Possible move to using fee trade becomes a factor in  Desire to automate fee processing, desire to pricing as a strategic part of choosing a venue for a remove current manual business model innovation trade (making it visible in processes, move to less (e.g., Exchanges charging for the front-office) month-end bandwidth instead of just per processing, more daily trade) processing© 2011 SAP AG. All rights reserved. 28
    29. 29. Service to CashScenario 8: Business Intelligence & Reporting Relationship Pricing Consolidated Customer Billing Business Intelligence Fee Billing & Revenue & Customer & Payments Calculation Payment Expense Partner Engine Statements Management Relationship Management Accounts Payable / GL Service-to-Cash Analytics Dashboard“Our customers want to be able to analyze their monthly account activities and fees to better understand their expenses.” Now banks can offer easy to use reporting tools to their commercial and retail customers instead of basic data downloads. Customer data analysis needs to be intuitive and easy to use, and should be available in real time or near-real time. S2C offers integrated Business Intelligence© 2011 SAP AG. All rights reserved. 29
    30. 30. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 30
    31. 31. Drivers Solution Value References Demo Summary Service-To-Cash : Value ProposalValueFlexibility Business Flexibility Price, package, Bundle, promote your services and share revenue with partnersDeployment while maximizing profitability and reducing Time-to-MarketLow TCOUnified View Deployment Flexibility Set of componentized software which can interoperate amongst themselves and with legacy and third party systems Low TCO Market-leading high performance on cost effective hardware and dramatically reduced OPEX Enhancing Customer Experience Unified view of customer‟s services, subscriptions, balances and usages© 2011 SAP AG. All rights reserved. 31
    32. 32. Service-to-Cash - Value Proposition Clients Client Satisfaction Clients Demands New Innovative Services Relationship Based Pricing On-Demand Price Quotes Real-Time Analytics & Reports Consolidated Statements Client TransactionsBank/Broker Business IntelligenceDemands Bankers/BrokersClient Satisfaction Customer & Profitability& Retention Fee Billing & Revenue & PartnerAutomated Straight-Through Calculation Payment Expense RelationshipProcessing Engine Statements Management ManagementAudit-ability, Accuracy& TransparencyPlatform Consolidation Accounts Payable / GL Financial Services Partners Value Chain Demands Real-Time Revenue Management &Sharing Flexible SLAs Real-Time Analytics & Reports Partner Loyalty © 2011 SAP AG. All rights reserved. 32
    33. 33. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 33
    34. 34. Drivers Solution Value References Demo Summary Service-To-Cash : ReferencesReferencesHigh TechTransportationPostal &LogisticsTelecom Media Financial Services Other© 2011 SAP AG. All rights reserved. 34
    35. 35. Drivers Solution Value References Demo Summary Q2 2011 LATAM S2C in Financial Industry : Banco Popular C2C Customer Business Issues solvedReferences • Need for a solution to support the roll out (full automation) of a new line of business calledBanco Popular “Factoring” – a customers accounts payable operationsLCH.Clearnet Banco Popular DominicanoGroupama BPD is the largest private bank in Why SAP Service to Cash - Benefits the Dominican Republic, with a • Allows BPD to act as the customer‟s payment agent significant market share of 23% in in front of suppliers and contractors, providing them terms of total assets at end 2010. with an effective and low-cost way to make their payments. Suppliers will additionally be able to BPD is the main subsidiary of manage invoices that are covered by the customer‟s Grupo Popular, S.A. (GPSA), a payment orders at any BPD branch. holding company for mostly • Ability of C2C / S2C to support the complete financial subsidiaries in the business process. Dominican Republic, Panama, and the U.S. • Capacity to handle supplier real time quotation and with consolidated assets of more credit generation, invoicing and account receivable than USD5.9bn at end 2010. and payable Solution • Full Service-to-Cash Platform (SAP Service-to- Finance Cash)© 2011 SAP AG. All rights reserved. 35
    36. 36. Drivers Solution Value References Demo Summary Q4 2007 EMEA S2C in Financial Industry : LCH.Clearnet CC (HD) Customer Business Issues solved • Looking for a group-wide safe, effective and reliableReferences fee billing system; • Flexibility to accommodate current and foreseeableBanco Popular future fee structures, markets and Trade Sources;LCH.Clearnet LCH.Clearnet is the leading • Effective reporting to both internal users and external independent clearing house Clearing Members;Groupama group, serving major international • Provision of daily billing data to Clearing Members to exchanges and platforms, as well enhance their reconciliation processes and as a range of OTC markets. It allocation of costs to their own customers; clears a broad range of asset classes including: • Reduce operating and development costs securities, exchange traded derivatives, commodities, energy, fr Why SAP Service to Cash - Benefits eight, interest rate swaps, credit default swaps and euro and sterling • Flexibility for new product introduction denominated bonds and repos; • Add new members easily and automatically and works closely with market produce detailed monthly invoices participants and exchanges to identify and develop clearing • Handle millions of transactions per day with services for new asset classes. robustness, reliability and low TCO Solution • SAP Convergent Charging (Highdeal Charging & Billing Platform) Finance© 2011 SAP AG. All rights reserved. 36
    37. 37. Drivers Solution Value References Demo Summary 08 2011 EMEA S2C in Financial Industry : Groupama CC (HD)References Customer Business Issues solved • Replaced in-house commissioning systemBanco Popular • Manage targets, calculate payoutsLCH.Clearnet Established over 100 years ago • Allow for short-term commission plan changes in the French farming • Management of life & annuity productsGroupama community, Groupama is now a major European insurance and • Lifecycles of commissions as client accounts vary banking group with over 39,000 over time and as agents trade contracts employees worldwide, serving over 16 million customers in 14 countries. Why SAP Service-to-Cash Benefits Groupama generates revenues • Ability to handle core commission modeling and of €17.6 billion, has assets payout calculations under management of €88 • Providing functionalities to ensure full traceability billion and profits of €398 of all transactions and management of historical million*. The group reinvests its contexts profits into the business for the ultimate benefit of its members and customers Solution • SAP Convergent Charging (Highdeal Charging & Billing Platform) Finance© 2011 SAP AG. All rights reserved. 37
    38. 38. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 38
    39. 39. Drivers Solution Value References Demo Summary Service-to-Cash DemoDemo Convergent Charging Demo #1DemoTestimonial Accounts Receivable Pricing, Invoicing & Revenue & Customer & Rating, Payment Expense Partner Charging Statements Management Financial Care Accounts Payable SAP Convergent SAP Convergent SAP Customer Financials Management Charging Invoicing  Pricing & Charging  Convergent  Revenue Management  Financial Customer Care Model Design Invoicing  Credit Management  Collections Management  Pricing Simulation  Online Bill Presentment  Dispute Management  Converged Prepaid, Postpaid & Hybrid Charging© 2011 SAP AG. All rights reserved. 39
    40. 40. Drivers Solution Value References Demo Summary Service-to-Cash DemoDemo Convergent Charging Demo #2DemoTestimonial Accounts Receivable Pricing, Invoicing & Revenue & Customer & Rating, Payment Expense Partner Charging Statements Management Financial Care Accounts Payable SAP Convergent SAP Convergent SAP Customer Financials Management Charging Invoicing  Pricing & Charging  Convergent  Revenue Management  Financial Customer Care Model Design Invoicing  Credit Management  Collections Management  Pricing Simulation  Online Bill Presentment  Dispute Management  Converged Prepaid, Postpaid & Hybrid Charging© 2011 SAP AG. All rights reserved. 40
    41. 41. Drivers Solution Value References Demo Summary Service-to-Cash TestimonialDemoDemoTestimonial “SAP Convergent Charging gives us the freedom to react quickly to market demands and be very creative with our price plans and bundles. “We can adjust our price plans in real- time without disrupting service. Giving us a real advantage in keeping ahead of market demands.” Akan Ismaili CEO of IPKO© 2011 SAP AG. All rights reserved. 42
    42. 42. SAP Service-to-CashDrivers Solution ValueReferences Demo Summary 43
    43. 43. Drivers Solution Value References Demo Summary From Products to Services EverywhereSummaryBusiness Trends Service based Industries Service based IndustriesService-To-Cash New New Telecommunication TelecommunicationValue Pricing Pricing Models Models Media MediaReferences High Tech High Tech Manage Manage Transport & Logistic Transport & Logistic Uncertainty Uncertainty Postal Postal Finance Finance Changing Changing Massive Massive Value Chains Value Chains Volumes Volumes And… elsewhere!! And… elsewhere!!© 2011 SAP AG. All rights reserved. 44
    44. 44. Drivers Solution Value References Demo Summary The Service-to-Cash PlatformSummary Financial Deliver Price & Bill & Collect & Offer Order Customer AnalyticsBusiness Trends Service Charge Settle Pay CareService-To-CashValue SAP Service-to-CashReferences Accounts Receivable Pricing, Invoicing & Revenue & Customer & Rating, Payment Expense Partner Charging Statements Management Financial Care Accounts Payable SAP Convergent SAP Convergent SAP Customer Financials Management Charging Invoicing© 2011 SAP AG. All rights reserved. 45
    45. 45. Drivers Solution Value References Demo Summary Service-to-Cash : Value ProposalSummary Business FlexibilityBusiness Trends Price, package, promote your services and share revenue with partners while maximizing profitability and reducing Time-to-MarketService-To-CashValueReferences Deployment Flexibility Set of componentized software which can interoperate amongst themselves and with legacy and third party systems Low TCO Market-leading high performance on cost effective hardware and dramatically reduced OPEX Enhancing Customer Experience Unified view of customer‟s services, subscriptions, balances and usages© 2011 SAP AG. All rights reserved. 46
    46. 46. Drivers Solution Value References Demo Summary Service-to-Cash : 300+ References WorldwideSummaryBusiness TrendsService-To-CashValueReferences© 2011 SAP AG. All rights reserved. 47
    47. 47. Appendix © 2011 SAP AG. All rights reserved. 48
    48. 48. SAP On-Device Charging Overview &SAP CC relationships The On-Device Charging solution takes our SAP Convergent Charging solution andproduces a "light" version running on secure elements such as smart cards, SIMcards, ...” This can then be embedded into end devices such as mobile (NFC) phones, multi-services cards, EMV cards, smart meter, on-board-units in vehicles, set-top-boxes, M2Mdevices, tablets, smart phone ..., thus allowing billions of devices to performpricing, rating, charging, balance-management, business logics and loyalty functionslocally, in an off-line mode (but also in an online mode or both). The SAP On-Device Charging is completely based on SAP Convergent Charging datamodel. Thanks to a patented compiler, ODC will be able to transform and adapt thebusiness logics defined and stored in SAP CC by the service providers, for generating onthe fly the related program running on the secure element. SAP ODC supports the SAP CC main features :  Rate/charge any kind of service,  Implement some flexible business logics,  Cascade and compose price plans for multi-partners business models© 2011 SAP AG. All rights reserved. 49
    49. 49. B2B2C Banking use casesODC – Virtual Wallet vs. Private Payment vehicle In addition to existing offline payment means, such as Credit (Smart) Cards more and morebanks provide some prepaid card based on wallet and eMoney. A wallet can be viewed as abalance which is debited at purchase time ODC could be used to control the usage of such virtual wallets and banks could proposevirtual wallets services to companies / institutional org / third party: Example 1: A virtual wallet could be offered by the bank to local / federal government to aid in controlling the usage of funds i.e. social benefits according to specified rules. ODC can implement those rules to authorize or reject the usage of funds belonging to the related „social wallet„. Example 2: A virtual wallet infrastruture offered by the bank could also improve third party services i.e. payment devices related to healthcare benefits, city/citizen, companies, student, transportation card, military etc. © 2011 SAP AG. All rights reserved. 50
    50. 50. Smart Mobile Wallet: General architecture overview Mobiliser Platform NFC Handset Wallet Content Mgt Mobiliser Smartphone Wallet Server OTA Interface Proxy Wireless OTA Security Debit Banking Loyalty Integration Services Pay Bill Retail Network Transfer ODC ServerODC Application Processing Env SmartTrust TSM Enabler Rich OS SWP Drivers & Stacks SIM NFC Sec El TSM hub SmartTrust Delivery Platform Sec-Elt 2 Sec-Elt 1 Global Platform Card ODC Cards (SVA Management System + BizLogic Cards (loyalty, paymen t, …) Offers Service Providers NFC Controller Payment Payment Merchant Loyalty SP Systems Network Contactless POS Coupons Banks & NFC Tag Payment Terminal Aggregator Financial© 2011 SAP AG. All rights reserved. 51
    51. 51. Smart Mobile Wallet ProposalBuild a SAP-Sybase end-to-end “Mobiliser Smart Mobile Wallet” platform allowing userto deploy online services but also NFC services with the following characteristics:• end-to-end common services (remote and proximity): mBanking, mPayment, mRemittance, loyalty, couponing, vouchers• Complements existing Sybase Mobiliser front & backend.• Integrated ODC for smart SVA, loyalty with real-time management/redemption, offer personalization, offline charging• Includes Mastercard Paypass NFC payment service developed by G&D.• Interfaces with G&D SIM/OTA solutions (SmartTrust NFC Enabler, SE, TSM hubs)• Open to support external cards from other service providers (transportation, etc.)• Ability to host future SAP mobile business applications requiring a Secure Element. © 2011 SAP AG. All rights reserved. 52
    52. 52. Mobile Payment tools overviewPayment performed with a mobile device which can be charged on: Banking card/account Carrier bill Electronic walletThree categories for mobile payments: Remote payment Proximity payment – connection with a merchant payment terminal / POS – Mobile to mobile money transfersSeveral technologies can be used by mobile payments according to usage Communication: SMS, USSD, Vocal server, mobile internet, NSDT, NFC, Bluetooth, QR-code Security: Secure Element, Cryptographic server, Trusted Execution EnvironmentCharacteristics of mobile payments Online/Offline payment: requires an OTA connection at payment time Synchronous/Asynchronous payment: the account transfer is done later © 2011 SAP AG. All rights reserved. 53
    53. 53. © 2011 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. 54

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