Edition 2008: Ines Melich, Globb Solution Management Stefanie Lawitzke, Globb Solution Management January 2008

Industry Solution Map
SAP for Banking

Edition 2008
Ines Melich, GLoBB Solution Management

Stefanie Lawitzke, GLoBB Solution Management
January 2008
Agenda
1. Update Procedure
2. Solution Map Banking 2008
3. Demo Solution Map with Example
4. BPP4I - Business Process Platform for Industries
5. What‘s next?
© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 2

Banking Solution Map 2005
=> Banking Solution Map 2008

From Market View to Scenarios
From Market View + Differentiation:

Investment/ Financing
Retail - / Corporate - /
Commercial Banking
Liquidity Financing Demand
Transformation*
ie w = ion
V t To Scenarios,
ar ket ganisa Processes…
M
l d Or
Fie

Starting point for definition of business
scenarios
Value Chain of Banks* (Verticals)
Preparation Sales & Execution & Analytics

Service Settlement
MaK: Market, MaK:

Acquisition „Marktfolge“,
Execution
Financing/
Investment
Area 1 Area 2 Area 3 Area 4
Product/ contract lifecycle (Horizontal)

Have in mind now the banking business from direct customer contact to financial
balance…
* In line with Solution Foundation, added: Preparation

Increased Visibility of the Solution Map with
New Design for Industry Landing Pages
Link to Solution Map

Agenda
1. Update Procedure

5. What‘s next?

The Value Chain of Banks
Findings from consultants‘ talks with customers:
They position themselves differently nowadays.

Operation & Execution

Banking
Customer & Market Product Management Sales & Services Operation & Execution Bank Reporting, Analytics and Stakeholder &
Legal Public Government
Product Management
Definition of New Offerings
Launch of New Offerings
Monitoring of New and Existing Offerings
Price Optimization
Sales and Services

Market Analysis and Campaigns
Providing Financial Advice
Account Origination
Servicing of Customers
Loyalty Management
Cash and Liquidity Management

Current Accounts
Cards
Payments Operations
Corporate Cash Management
Savings and Investment
Savings Account
Fixed-Term Deposit
Retirement Plans
Securities, Funds and Derivatives
Shares, Bonds, Investment Funds,
and Derivatives
Brokerage (Proprietary/Customer)
Additional offering:
and Custody features/solutions for a group
Financing of single contracts (master
Loans (Mortgage, Consumer and contract solutions).
Installment Loans)
Leasing
Remark: additional MC
Trade Finance
features like bundle pricing Execution of IPOs
are not yet incorporated here, Structured Finance
Facilities / Revolving Credits
but available.
Collateralization
© SAP 2008
© SAP / Page
2008 10 Map Banking 2008, Ines Melich, Page 10
/ Solution
Banking
Customer & Market Product Management Sales & Services Operation & Execution Bank Reporting, Analytics Stakeholder &
and Legal Public Government
Treasury
Interest Rate Management
Foreign Exchange Management
Bank Management
Financial Accounting
Management Accounting
Consolidation
Bank Planning
Credit Risk Management
Market Risk Management
Asset Liability Management
Operational Risk Management
Limit Management
Regulatory Reporting
Supporting Banking Processes

Enterprise Management & Support
© SAP 2008
© SAP / Page
2008 11 Map Banking 2008, Ines Melich, Page 11
/ Solution
Banking
Product Management
Cash and Liquidity
Sales and Services Management
Securities, Funds and
Derivatives
Financing
Treasury
Bank Management

Business Partner
Bank Products
Correspondence and Document Management
Archiving

Analytics
Human Capital Management
Corporate Services
Operations Support

Banking
Product Management
Cash and Liquidity
Management
Sales and Services
Derivatives
Financing
Treasury
Bank Management

Business Partner
Creating Business Maintaining Business Searching Business Versioning of Analytical Assessing Business
Partner Partner Partner Business Partner Partner's Creditworthiness
Bank Products
Creating Bank Products Maintaining Bank Products Archiving Bank Products
Correspondence and Document Management
Correspondence Document Management
Archiving
Managing Archives

Banking
Product Management
Sales and Services
Cash and Liquidity
Management
Derivatives
Financing
Treasury
Bank Management

Analytics
Financial Analytics End-User Service Delivery Operations Analytics Workforce Analytics
Human Capital Management
Talent Management Workforce Process Management Workforce Deployment
Corporate Services
Environment, Health, and
Incentive and Commission
Travel Management Safety Compliance Real Estate Management
Management
Management
Operations Support
Life-Cycle Data Project and Portfolio Enterprise Asset
Indirect Procurement Global Trade Services
Management Management Management

Operations Management
Operation & Execution
Scenarios in Operation and

Execution have become individual
business scenario groups.
Goals:
 To show more detail with respect to the
bank products
 To structure the Map along
 the way the banks are organizing
 our modelling, which has already
been finalised in selected areas
 To link „Content“ to scenarios

Operation and Execution
Product Management
Definition of New Offerings
Launch of New Offerings
Monitoring of New and Existing Offerings
Price Optimization
Sales and Services

Market Analysis and Campaigns
Providing Financial Advice
Account Origination
Servicing of Customers
Loyalty Management

Current Accounts
Cards
Payments Operations
Corporate Cash Management
Savings Account
Fixed-Term Deposit
Retirement Plans
Shares, Bonds, Investment Funds,
and Derivatives
Brokerage (Proprietary/Customer)
and Custody
Financing
Loans (Mortgage, Consumer and
Installment Loans)
Leasing
Trade Finance
Execution of IPOs
Structured Finance
Facilities / Revolving Credits
Collateralization

Banking
Treasury
Interest Rate Management
Foreign Exchange Management
Bank Management
Financial Accounting
Management Accounting
Consolidation
Bank Planning
Credit Risk Management
Market Risk Management
Asset Liability Management
Operational Risk Management
Limit Management
Regulatory Reporting


Operations and Execution
Note: Do not allow confusion because of colors differing between

interactive and PPT versions

New scenarios which have been added here are

Cards and Corporate Cash Management.
The latter is in the state of becoming an

independent scenario in our customer base.

Cash and Liquidity

Management
Current Accounts Cards Payments Operations Corporate Cash Management
New Business and Contract Sales and Service: Card Contract Managing Payment Product New Business and Contract
Completion (SAP S10,S11) Origination Configuration Completion (SAP S10,S11)
Payment Management for Current Card Issuing Managing Customer Product Executing Cash Pooling (Cash
Accounts (SAP S10,S11) Card Utilization and Authorization Agreements Concentration) (SAP S10,S11)
Settlement (SAP S10,S11) Transaction Processing Managing Incoming Payment Channels Executing Notional Pooling (Interest
(SAP S9) and Charge Compensation)
Managing Withholding Taxes (SAP S7) Settlement / Acquiring
Enriching and Validating Incoming (SAP S10,S11)
Contract Management (SAP S10,S11 Contract Management and Customer Managing Withholding Taxes (SAP S7)
Payment Orders
P4) Service
Routing of Payments Contract Management (SAP S10,S11)
Contract End Processing Contract End Processing
(SAP S10,S11 ) Clearing and Settlement of Payments Contract End Processing
Exception Handling (SAP S10,S11)
Managing Outgoing Payment Channels

(SAP S9)
End-of-Day Processing
SAP Product Available SAP Product Available with Future Releases Future Focus Partner Product Available Partner Product Available with Future Releases

 Very important in banks

 Potentially profitable business
 All
of the scenarios, esp. Custody and
Trading Operations require
sophisticated software support.

Financing
Treasury
 Very important in banks

 Potentially profitable business
 With a bundle of processes in this

group, we can also show our expertise
in areas which are not explicitly
mentioned, as e.g. big ticket lending.
 There are scenarios in which we are
only starting to tap the market.

Bank Management Bank Management
in Bank Reporting, Analytics and Legal
The analytical applications within SAP for Banking

provide a powerful, comprehensive, open platform for
effectively handling the data and processes involved
in portfolio, risk, and financial management.

Analytics Scenario Example


Business Objectives
Scenario: Business Objectives:

Current Accounts Improving Customer Service
• 24x7 customer self-service
Improving Service Delivery
• Improved quality and accuracy
• Offer multiple points of access
Reducing Operating Costs & Increasing Efficiency
• Reduce administration, improve business processes
• Reduce error rate by use of automated processes
Definition of New Offerings Increasing Revenue
• Develop service offerings
• Develop new markets
Reducing Operating Costs & Increasing Efficiency
• Reduce inventory levels
Execution of IPOs Improving Customer Service
• Improve service quality
Improving Service Delivery
Increasing Revenue
• Develop service offerings

Key Performance Indicators
Scenario: Key Performance Indicators:

Account Origination • Campaign/Event Cost Revenue Ratio
• Percent of New Customers per Year Live Demo KPI
• Percentage of Sales New Products
Brokerage (Proprietary/Customer) and • Revenue
Custody
Cards • Coverage
• Customer Satisfaction Index
Collateralization • Return On Capital Employed
• Time-to-approval
Current Accounts • Cross-Selling Potential

• Cost-Income-Ratio
• Degree of STP
Definition of New Offerings • Time to Market
• Lead times: product development
Execution of IPOs • Cost Of Capital
• Common Stock
Facilities / Revolving Credits • Investment income /Interest rate
Foreign Exchange Management • Earnings Before Taxes

Interest Rate Management • Cost Of Capital
• Cost Of Debt

SAP Products
Key Description
S1 Asset Liability Management by SAP and SunGard
S2 DUET
S3 SAP Accounting for Financial Instruments
S4 SAP Basel II
S5 SAP Capital Yield Tax Management (only for Germany and Switzerland))
S6 SAP Collateral Management for Banking
S7 SAP Deposits for Banking
S8 SAP Deposits Management for Banking
S9 SAP ERP
S10 SAP ERP: Sales/Service Order Processing
S11 SAP ERP: SAP Environment, Health and Safety
S12 SAP ERP: SAP Financial Supply Chain Management - Biller Direct, Dispute, Credit and Collections Mgmt.
S13 SAP ERP: SAP Financial Supply Chain Management - Treasury Management and In-House Cash
S14 SAP ERP: SAP Real Estate Management
S15 SAP Financial Services - Business Partner
S16 SAP Global Trade Services - Export
S17 SAP Global Trade Services - Import
S18 SAP Global Trade Services - Restitution
S19 SAP Global Trade Services - Trade Preference
S20 SAP GRC Access Control
S21 SAP Hedge Management for Banking
S22 SAP Leasing for Banking

SAP Partner Products Powered by SAP NetWeaver
Key Description
P1 Alnova Multichannel Technical Architecture (AMTA)
P2 Computer Aided Design
P3 Process Control

SAP Endorsed Business Solutions
Key Description
P1 Health Benefits Management for ERP v.2.0 by VitalSpring
P2 RCMO - Reliability Centered Maintenance and Optimization for SAP Service and Asset Management by Meridium
P3 SPSS® for Banking - Credit RiskModel Validation 1.0 by SPSS
P4 StreamServe for Financial Services
P5 zetControl Corporate Investment Management (CIM) 1.5. by zetVisions

Customer Role View

Solution View

Demo View

Agenda
1. Update Procedure

5. What‘s next?

Storyboard: Solution Map @ Commercial Bank Pitch
Commercial Bank CIO, Mr. Smith, is approaching his SAP GAM, Mr. Miller
 SAP's general understanding of the banking business
 the roadmap of the SAP banking software development
 areas in which SAP is investing
Finally, he wants to know whether SAP can help him speed up the bank's loan
processing business and improve the return on mortgage loans.

Agenda
1. Update Procedure

5. What‘s next?

Enterprise Services Workplace

Enterprise Services by ES Bundles – WIKI@SAP

Enterprise Services in Banking
Correspondence
Business Partner

Agenda
1. Update Procedure
5. What‘s next?

What‘s next? „Follow-Up“
1. Visit the Solution Map regularly and learn the Banking processes
2. Inform Ines and Steffi in case of

 New Partners for individual scenarios
 New success stories available in the Portal (please send the link to us!)
3. Your Part
 Spread the word about the Solution Map Banking
 Use it in your sales cycles and in your day-to-day work (download the Solution
Composer at http://www.sap.com/solutions/businessmaps/composer/index.epx
in order to create your project solution map)
 Try to achieve the same depth of information for all of the
scenarios (already levelled out as much as possible, but still
some information lacking in some areas)
 Give feedback on the aspect of master contract management. How can we best
incorporate it in our solution map so you and your customers can use it?

Any Questions?
Thank you!

Upcoming Hot Talks & Further Information
Jan 15th : Solution Map Banking 2008
Jan 16th : Banking Industry Architecture Network (BIAN)
Jan 22nd : Corporate Connectivity
Jan 24th : Frontend Strategy for Banking
Jan 31st : SAP Financing
…to be continued
Further Information:
 Access to the PS&P for Banking collaboration room: Mariya Nusheva

 Roll-out activities & further information on PS&P : Sakis Tassoudis

Edition 2008: Ines Melich, Globb Solution Management Stefanie Lawitzke, Globb Solution Management January 2008

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Edition 2008: Ines Melich, Globb Solution Management Stefanie Lawitzke, Globb Solution Management January 2008

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Industry Solution Map

SAP for Banking

Ines Melich, GLoBB Solution Management

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 2

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 3

From Market View + Differentiation:

Liquidity Financing Demand

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 4

Preparation Sales & Execution & Analytics

MaK: Market, MaK:

Product/ contract lifecycle (Horizontal)

* In line with Solution Foundation, added: Preparation

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 5

Link to Solution Map

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 6

2. Solution Map Banking 2008

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 7

Findings from consultants‘ talks with customers:

They position themselves differently nowadays.

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 8

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 9

Sales and Services

Cash and Liquidity Management

Supporting Banking Processes

Supporting Banking Processes

Enterprise Management & Support

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 12

Supporting Banking Processes

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 13

Enterprise Management & Support

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 14

Scenarios in Operation and

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 15

Sales and Services

Cash and Liquidity Management

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 16

Supporting Banking Processes

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 17

Note: Do not allow confusion because of colors differing between

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 18

New scenarios which have been added here are

The latter is in the state of becoming an

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 19

Cash and Liquidity

Current Accounts Cards Payments Operations Corporate Cash Management

Managing Outgoing Payment Channels

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 20

 Very important in banks

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 22

 Very important in banks

 With a bundle of processes in this

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 24

The analytical applications within SAP for Banking

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 25

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 26

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 27

Scenario: Business Objectives:

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 28

Scenario: Key Performance Indicators:

Current Accounts • Cross-Selling Potential

Foreign Exchange Management • Earnings Before Taxes

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 29

© SAP 2008 / Solution Map Banking 2008, Ines Melich, Page 30