David cindric services coverage - 201505

1 1

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

2 2

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 ?

3 3

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

4 4

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

5 5

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

6 6

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)

7 7

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

8 8

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

9 9

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

10 10

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

11 11

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

12 12

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

13 13

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

14 14

Financial Industry

15 15

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

16 16

• COMPETITIVE POSITIONING

- Competition is fierce, global (Private Bank)

Ex: UBS, HSBC scandals…

- New Competitors….in payments

Ex: Apple Pay, Amazon Credit Cards, PayPal,

Facebook

- 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

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.topvelocity.net/&ei=1qcTVbXMGo_B7AbmtIGwCw&bvm=bv.89217033,d.d2s&psig=AFQjCNHLlI7mA7PrrXppE0otwPIHrFUsag&ust=1427437797957025




17 17

Financial Industry - THE“ INFLUENCERS ”

REGULATORY

- AIFMD- Basel III / CRD IV- BEPS- EMIR- FATCA- MiFID 2- SOLVENCY II- UCITS IVAnd next ones…

TECHNOLOGYTRENDS

DEMOGRAPHYEVOLUTIONS

18 18

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

19 19

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


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


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


The solidarity of the state (ex-Dexia BIL and ex-Fortis)

-political and legal stability

Legal evolutions on secrecy

World competition

24 24


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.


« 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 ?


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..


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


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..


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


1) Access your account anywhere

2) Check your balance before paying somewhere

3) No need to go to branch


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


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)


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


- 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


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


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



Operations


Front Office



• 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, …)



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



Operations


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, …)




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



Operations


Transverses Functions(IT, Finance, RH, legal)



• Specific handling(IT : connectivity, developments, reporting, Legal: assembly, ad-hoc documentation , …)

• Dedicated Marketing Costs

• N/A


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


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



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



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

Leadership & Management

David cindric services coverage - 201505