Helping the finance industry reach new horizons Ecole de Commerce Solvay GEST 310 : gestion des...
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Transcript of Helping the finance industry reach new horizons Ecole de Commerce Solvay GEST 310 : gestion des...
Helping the finance industryreach new horizons
Ecole de Commerce SolvayGEST 310 : gestion des technologies Etude de cas : éditeur de progiciels
2 mai 2005
- 2 -
Your speaker today
Philippe de Wouters,
Directeur Commercial,
Callataÿ & Wouters SA
INT
RO
DU
CT
ION
- 3 -
Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 4 -
Our agenda in some points
The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
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Mission statement
To deliver innovative IT solutionsfor the financial services industry…
…that help our customersto meet their business objectives
CO
MP
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Y P
RO
FIL
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Focus
280 consultants
with in-depth technical
and financial knowledge
Dedicated to
the finance services industry
CO
MP
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FIL
E
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Activities
Consistent and complementary
Implementationand
development projects
SupportSolution development
Three principal activities
CO
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Milestones
1983
Incorporation
1987
First banking software development at Sogénal
1993
Focus on development and imple-mentation of a software package
1996
Commercial launch of Thaler v.1
2000
Breakthrough: Argenta, Banque de la Poste, NSI, Cortal, Eural, LBK, Rabo…
2002-05
Intensification of international sales effort
CO
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Y P
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FIL
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- 9 -
PresenceC
OM
PA
NY
PR
OF
ILE
BrusselsBrussels
19831983 LuxembourgLuxembourg
19911991
LondonLondon
20002000
ParisParis
20022002
SingaporeSingapore
20022002
GenevaGeneva
20032003
JakartaJakarta
20042004
International expansion
- 10 -
Main Figures (end 2004)
• Revenue : 33.6 Mio EUR
• Net result : 3.0 Mio EUR
• Reserves : 7.8 Mio EUR
• Staff : 320
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Revenue
Consistent, strong profitability
CO
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C&W Shareholders
58,5% 38,5% 3%
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ReferencesV
olum
e (m
illio
ns o
f acc
ount
s)
RetailUniversal
Private Securities
CommercialCorporate
Public Sector
(RNCC)
LA POSTE
1 million
10 millions
CO
MP
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Y P
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E
- 14 -
International GroupsC
OM
PA
NY
PR
OF
ILE
- 15 -
So... why C&W ?
Fruitful partnerships
Sound strategy
Committed people
Relevant solutions
Customer dedicated
CO
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Y P
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So... why C&W ?
Fruitful partnerships
Sound strategy
Committed people
Relevant solutions
Customer dedicated
These have all contributed to C&W’s reputation for
QUALITY and
PROFESSIONALISM
CO
MP
AN
Y P
RO
FIL
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- 17 -
Our agenda in some points
• The company C&W Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 18 -
Some features
• Banks : bigger and bigger• Culture : no revolution !• Belgium : dynamism, competition yet synergies• Tradition of in-house development,
but move to market solutions/outsourcing• Long term relationships with providers
FIN
AN
CIA
L I
T
- 19 -
Large IT consumers
• Global Banking IT market : 125 bio $• External systems market : 15 bio $• Yearly increase : 15 - 20 %• 10 % of total revenue• 16 % of total costs• 17 000 € / year and employee• 40 € / year and customer
A serious issue… but be careful with figures !
FIN
AN
CIA
L I
T
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Is IT strategic ?
Know your customer
Operational productivity
Long term IT choices
Market response
Corporate structure
Management information
IT is a decisive toolfor the implementation
of the bank’sstrategy
FIN
AN
CIA
L I
T
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From home-made applicationsto market solutions
•High costs•Long development•Tests and tuning•IT team master•Vendor independant
MAKE•Lower costs•Short implementation•Proven and stable•Ext. responsibility•Vendor dependant
BUY
Necessary balance between both extremes
A big change, ongoing, and implying :• mature solutions• a new vision of IT• a new role for IT teams
FIN
AN
CIA
L I
T
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Our agenda in some points
• The company C&W• Financial IT The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 23 -
Product familyT
HA
LE
R
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Strong added value
Unique combination of
Large functional coverage
Maximum flexibility
Turns your IT system into a strategic key differenciator
TH
AL
ER
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Product philosophy
Extensive functionality
Open and modular design
Framework based
Integrated Factory
TH
AL
ER
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General Scheme
‘2003-C&W
Thaler-Treasury
Thaler-Loans
Thaler-Securities
Thaler-Deposits
Thaler-Payments
Thaler – Bank Management
TH
AL
ER
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Thaler components
Certificates of dep.
Term deposits
Interest calculations
Customer accounts
Deposits Loans
Credit opening & credit lines
Collateral management
Credit files
Commitment credits
Term advances
Overdraft & revolving credits
Customer loans
Mortgage & investment loans
Securities
Pension funds
Physical delivery
Model portfolios
Portfolio valuation
Securities options
Corporate actions
Orders
Securities accounting
Securities ID
FRA
IRS
FX options
Loans & deposits
Foreign exchange
Treasury
General functions
Tax
Bank Management
Messaging
Tariffs & conditions
Risk management
Accounting
CustomerInformation
Agency operations
Bank card
Direct debits
Cheques
Standing orders
Remittances
National payments
Payments
TH
AL
ER
- 28 -
Design : from needs to choices
•Business-lines• variety• combination• customer view• multi-channel
•Products• niches• innovation
•Corporate• multi-company• munti-country• growth• acquisitions
BUSINESS IT
• Specific coverage
• Evolution
• Modularity
• Openness
• Connectivity
• Scalability
• AvailabilityTH
AL
ER
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Client-server architecture
3-tier
Thin client
Standards
Open
Network
TCP/IP
TH
AL
ER
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Client-server architecture
Network
TCP/IP
TH
AL
ER
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Complete toolset
Implementation
Release management
Documentation
Customisation
Closely linked to the methodsClosely linked to the methods
TH
AL
ER
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Appropriation
Thaler is now yoursThaler is now yours
‘2003-C&W
Thaler-Treasury
Thaler – Bank Management
Thaler-Loans
Thaler-Securities
Thaler-Deposits
Thaler-Payments
Thaler - Framework
TH
AL
ER
- 33 -
Benchmarks results
Configuration : from 8 to 72 CPUs
• Transactional load : 600 transactions /sec• Interest calculations : 6 mio/hour• Payment processing : 5,5 mio/hour• Authorizations : 1600/sec
More than the requirements of the whole country !
TH
AL
ER
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Customers
Back-OfficeMu
lti-
chan
nel
Ban
k
Multi-channel
B2C
Externalnetwork
Sales Office
Externalnetwork
B2N
Directnetwork
Counter
KY
UD
O
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General schemeT
ER
AN
CRA P&L IFRS AML B II
Reports Reports Reports Reports Reports
Operational Systems
TERAN DATA CENTER
Historized data (D-M-Y)
Calculation
Derivated data
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Our agenda in some points
• The company C&W• Financial IT• The Thaler software package What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 37 -
Editor’s tasks
• R&D• Product development• Maintenance• Hot-line
ED
ITO
R
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Awareness ofbusiness andtechnological
changes
R&D
Constant review and revision of
products
On-going R&D effort to ensure solutions
meet the needs of changing markets
ED
ITO
R
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Development cycle
• Development
• Delivery
Moduleavailable
Implementationpilot project
ModuleGo Live
3 months
StartIntegration
2 months
Standardavailable
Decisionof study
Analysis /design
Decision of dev.
Estimates
Decision of offering
Developmentand tests
Start of delivery
ED
ITO
R
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Product maintenance
Maintenance contract
New releases Bug fixing
ED
ITO
R
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Bug fixing
Depending on severeness
Patch
Blocking
New releases
Non Blocking
ED
ITO
R
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New release contents
For a subsetof modules
New functionalities
External evolutions (regulatory – technical -
interfaces)
Patch integration
Non blocking bugs
ED
ITO
R
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Paradox to be managed
PROGRESS
STABILITY
• New clients• Bug fixing
• Legal evolutions
• Market evolutions
• New functionality
• Existing clients• Minimal evolutions
• Maximal added value
• Minimal implementation cost
• Maximal stability
ED
ITO
R
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• Patch development (ASAP)
• New minor release (1 / year)
• New modules (when decided)
• New major releases (transverse : +/- 8 years)
3 + 1 Working cycles
2.3
Rev. mod. / new funct.
2.2.a. “Full” patch integration
2.2.b.
New Dev integration
2.2.x.
New Dev integration
2.2 “Full” patch
2.3.a.
ED
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Hot-line
• Help desk for customers and integrators• NOT an assistance to users and operators !• Bugs must be identified and reproducible• Output can only be a patch• Case management tool• Dedicated team• SLA-driven
ED
ITO
R
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Editor’s pricing
• Licences : • Basic prices per module• Weighting factors (intensity of use)• From 0,5 to 5 mio €
• Maintenance :• Yearly fee• Usually 15 %
ED
ITO
R
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Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ? What is a service provider ?• Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 48 -
2 services = 2 steps
Implementation project
Post implementation support
SE
RV
ICE
S
- 49 -
Projects
Product implementation
Tailor-made development
SE
RV
ICE
S
- 50 -
Project stages
Project Management
Inst
alla
tion
An
alys
is o
f th
e n
eed
s
Time
Des
ign Compl. fcts develop.
MigrationInterfaces
Parameterisation
Inte
grat
ion
Tes
ts
Go-
live
SE
RV
ICE
S
- 51 -
Project team (Cortal Consors case)
• 1 Project Director (> 7 years) Overall responsible Principal interlocutor
• 3 Project Leaders (4 – 6 years) Domain responsible : analysis and design Managing the analysts Integration tests User Interlocutor
• 3 Analysts (1 – 3 years) Installation and transfers Parameterization Developments Unit tests
SE
RV
ICE
S
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Post implementation
Standard maintenance
Customised support
SE
RV
ICE
S
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Support services
Knowledge of client’s environment
• Maintenance of taylor-made applications• Implementation of Thaler releases• Outsourcing of operation support• Customised help-desk• Etc…
SE
RV
ICE
S
- 54 -
Flexible agreements
• C&W team on-site• Dedicated but remote team• Pre-booked days• On-call (incidents)• Extension to 7 x 24
• … and any combinationSE
RV
ICE
S
- 55 -
Pricing
• Basicly, price per manday (time and material)• Commitment according to the risk :
• Limited t&m
• Fixed price
• Help-desk : yearly fee + calls
SE
RV
ICE
S
- 56 -
Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ? Human resources• Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 57 -
Staff
1983
1985
1987
1989
1991
1993
1995
1997
1999
2000
Continuous recruitmentHU
MA
N F
AC
TO
R
2001
- 58 -
Recruitment and training
• Recruitment :• Mainly young engineers or equivalents
• Sometimes more experimented people
• Training :• Initial (4 weeks) : bank and IT
• Permanent (12 d/y) : bank, IT, management
• Continuous career follow-up :• Growth of competences
• Variety of environments
• Very low turnoverHU
MA
N F
AC
TO
R
- 59 -
Staff breakdown
R&D Projects
HU
MA
N F
AC
TO
R
- 60 -
C&W structure
General Management
Sales & Market.
Internat.dev
Resources R & D Products Projects
Financial
HU
MA
N F
AC
TO
R
- 61 -
Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources Sales and marketing strategy• International development• The future…INT
RO
DU
CT
ION
- 62 -
A market with various actors• Clients :
• Final users• Parent companies
• Competitors• Partners :
• Integrators, manufacturers, third party products• Consultants• Sometimes competitors !
Alliances• Are often useful• Must be convenient to the client• Must remain non-exclusive
SA
LE
S &
MK
G
- 63 -
Our market’s features• Few clients and prospects, all VIP• Big deals, rare deals (3 to 5 / year)• More and more recurrent business• Various selection criteria :
• Product : functions, technology• Price• Long term reliability• Decider’s position !
• Sales process :• Long – several steps• Many deciders (+ consultants)• Costs a lot !
SA
LE
S &
MK
G
- 64 -
Sales tasks• Prospecting :
• Awareness – information• Relationship building• Good understanding of needs and context• Detection of opportunities
• When opportunity, sales process :• Presentations, workshops• Offer, negotiations• Closing
• Account-management :• Relationship • Problem solving• New opportunities
SA
LE
S &
MK
G
Appropriateprofiles !
- 65 -
Marketing activities
• Sales material• Web site• External events• Own events• Balloon• Press/communication• Reference guides, directories• Sponsoring • Few advertising
Criterion : tangible quality !
SA
LE
S &
MK
G
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Strengths - weaknesses
• Good products• Competent people• Leading position in home market• Capacity of investment
SA
LE
S &
MK
G
• Small size• Still insufficient presence abroad
Go international !
- 67 -
Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy International development• The future…INT
RO
DU
CT
ION
- 68 -
Go international ?
• Belgium is beautiful but small !• Made possible by Thaler (1995) :
• A product can be distributed everywhere• Service is limited : proximity, people intensive • Modularity allows easy enhancements
• First strategy : opportunities• Luxembourg (via CGER)• UK (via Siemens BS)• Singapore (via Luxembourg !)
• Since 2000 : structured strategy
INT
ER
NA
TIO
NA
L
- 69 -
New countries
Large banks
Groups
Emerging banking fields
Development strategy
ASP offering
INT
ER
NA
TIO
NA
L
- 70 -
Complementary approaches• New C&W branches :
• Few : LU, FR, CH, UK, SG• Markets with high potential• Local marketing and sales force• Investments for software localisation
• Flying team :• International events, road-shows• Search of partners (global – local)• Detection of opportunities
• Groups :• Head-quarters • Branches
In all cases, with partners
INT
ER
NA
TIO
NA
L
- 71 -
Competition
INT
ER
NA
TIO
NA
L
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Our agenda in some points
• The company C&W• Financial IT• The Thaler software package• What is a package vendor ?• What is a service provider ?• Human resources• Sales and marketing strategy• International development The future…INT
RO
DU
CT
ION
- 73 -
Our challengeF
UT
UR
E
To become one of the 5 worldwide solutions
in 2010 - 2015
Thank you for your attention !