Automation in Action IBM Middleware Banking Solution for

Becoming an On Demand Enterprise ess sin Bu es Business Transformation ess c Pro Innovative business designs that sharpen focus and accelerate growth On Demand Operating Environment An IT operating environment optimized for flexibility and resilience Integrated, end-to-end business processes that are built to change 2 © 2003 IBM Corporation

Key Capabilities Delivered by the On Demand Operating Environment Integration Business flexibility through Integration of people, processes and information within and beyond the enterprise § Access and Collaborate § Business Modeling § Process Transformation § Application & Information Integration § Business Process Management Infrastructure Management IT optimization through managing the infrastructure with Automation and Virtualization of existing and future resources 3 Automation § Policy-based Orchestration § Availability § Security § Optimization § Provisioning Virtualization § Server § Storage § Distributed Systems/Grid § Network © 2003 IBM Corporation

The IBM Infrastructure Management Blueprint is the Foundation Business Se rvice Manag Infrastructur ement e Orchestrati Availability Security on Optimization Provisioning Resource Vir tualization 4 © 2003 IBM Corporation

On Demand Automation is … On demand Automation uses business policies and service levels

IBM Middleware Solutions for Industries Addressing industry challenges Insurance Banking Financial Markets Automotive LOB Retail / Wholesale Consumer Products Energy & Utilities Telecom IT Electronics Health Government Life Sciences. . . 6 Integrated Claims Mgmt Branch Transformation Front Office Insight Integrated Underwriting Channel Empowerment Trade & Order Management Policy Management Core Systems Transformation Financial Info Interchange Channel Distribution Risk & Compliance Post Execution Integration Product Lifecycle Mgmt. Store Operations Systems & SW Engineering Advertising, Mktg Promos Factory to Enterprise Dealer Collaboration Item Management Early Warning for Warranty Inventory Management Item Management Customer Management Consumer Info. Mgmt Brand Management Risk & Compliance … Trading & Settlement Mobile Workforce Mgt Contact Center Asset Operations Regulatory Compliance … OSS/BSS Optimization Product Innovation Contact Center Optimizer Business Perf. Management Patient Centric Portal Healthcare Collaborative Network On Demand Workplace Investigator Recruitment & Trials Mgmt. Government Access Corporate Info Asset Management … … Merchandising Customer Insight Wholesale Pmts Processing Risk & Compliance Mobile Services Partner Content Delivery Enabler Software Supply Chain Lifecycle Mgmt Collaboration Next Gen Network Serv. Risk & Compliance Clinical Decision Intelligence e-Forms & Records Mgmt. Clinical Genomics Payer Services Portal Health Plan Administration Government Collaboration Annotations & Knowledge Sharing Emergency Response Clinical Trials Management … … … Telematics Multi-Channel Management … … … © 2003 IBM Corporation

Banking Challenges Intelligent Growth Re-engineer cost structures, digitize processes Efficiency Operate as a transparent customer-centric enterprise Differentiation Ensure stability associated with all forms of risk Resilience Shareholder Value 7 © 2003 IBM Corporation

The Banking Industry Business Challenges Exist Across All Processes Inability to introduce new products in response to market needs and enhance customer service Banking Industry Processes Inability to present consistent functions and service at point of customer contact; aging branch infrastructure Manufacturing Processing Distribution Declining margins associated with costly, repetitive application function and inability to differentiate customer service 8 Lack of consolidated risk & compliance data and ineffective review processes Insight Risk Management Inability to execute effective, value-based marketing campaigns across all channels © 2003 IBM Corporation

IBM Middleware Solutions for Banking Industry Processes Manufacturing IBM Core Systems Middleware Transformation Solutions Processing Wholesale Payments Processing Distribution Branch Transformation Insight Channel Empowerment Risk Management Risk & Compliance Foundation Branch Transformation enables banks to Transform branches into revitalized financial centers by providing a flexible, scalable and affordable branch infrastructure as part of a wider multi-channel delivery environment. Streamline and integrate your delivery channels. § Establishes flexible, scalable and affordable branch infrastructure § Centralize customer, account, and product data to improve efficiency and customer service § Manage risk and protect assets by ensuring reliability, availability, and serviceability of core processing systems 9 © 2003 IBM Corporation

Today’s Retail Bank Branch Infrastructure is Difficult to Manage and Unresponsive to Customer Demands Traditional Process Challenges § Operating systems approaching end of life § Technology infrastructure is inflexible, unmanageable and expensive to support § Inability to leverage single view of the customer in branch sales activities Branch Limited view of customer Inbound ATM Outboun Kiosk d Branch Devices Access Technologies Inflexible Functions/Process Platform Server Customer Data Obsolete Operating Systems DEPOSITS 10 Web Wireless ARU User Interfaces Teller Poor Collaboration CALL SELF ELECTRON CENTERSERVICE IC LOANS CREDI T CARD S PARTNER S XXXXX © 2003 IBM Corporation

Transform the Branch into Full-Service Financial Center Speeds Time-to-value by: § Improving productivity and collaboration of customer-facing employee team § Providing a single view of the customer Reduces Risk by: § Deploying consistent, multichannel transactions Transformed Process Branch Collaboration Role-based portals Teller Integrated processes Devices Platform Server Flexible Deployment Business Integration § Establishing a flexible, scalable, & affordable infrastructure Reinventing the branch within a multi-channel context 11 © 2003 IBM Corporation

Optimize Resources with Automation Bank Branch Operations § Increased uptime to ensure a positive customer experience § Reduces IT costs by managing, deploying and refreshing branch infrastructure environments centrally from the enterprise § Increased productivity by enabling a more productive work environment § Improves ability to attain peak service levels by dynamically providing resources on demand § Helps enable operation of a resilient secure business 7 x 24 thereby reducing risk 12 © 2003 IBM Corporation

Manage Complexity with Automation Bank Branch Operations § Increases productivity by ensuring new employees have access to the right data, applications, and systems § Enhances security posture by providing a unified view of security administration and policies, reducing risk and raising compliance § Enables employees lifecycle management through identity management 13 © 2003 IBM Corporation

Increase business flexibility with Automation Bank Branch Operations § Out innovate your competition by leading the marketplace with new products and services § Replaces outdated, fragmented and reactive manual processes to improve responsiveness § Helps ensure resources are deployed where and when needed § Helps provide a resilient environment flexible and dynamic to react to changes in customer demands 14 © 2003 IBM Corporation

Bank Branch Operations – Automation Core Capabilities IBM Tivoli solutions help deliver the On Demand Operating Environment On Demand Automation will: § Optimize resources by centrally & proactively managing branch infrastructures from the enterprise § Increase business flexibility with improved resource utilization and insure your business is meeting customer demand providing a positive customer banking experience. § Manage complexity and reduce risk by providing automated security features to enable new employees quickly, and to ensure compliance with regulations & standards 15 § Tivoli Enterprise Console § Tivoli Monitoring for Web Infrastructure § Tivoli Monitoring for Databases § Tivoli Netview § Websphere Network Deployment § Tivoli Intelligent Think. Dynamic Orchestrator § Tivoli Provisioning Manager § Tivoli Directory Integrator § Websphere Portal Server § § Tivoli Configuration Manager Tivoli Identity Management Tivoli Access Manager Tivoli Security Compliance Manager § Websphere Studio Site Developer © 2003 IBM Corporation

NÜRNBERGER Lebensversicherung AG (NLV) Business Challenge Expand customer base and strengthen market position by delivering reliable, available and cost-effective services on demand Business Benefits “Our staff couldn’t do it all — cost-effectively deliver reliable services to both customers and internal staff — without leveraging the predictive and automated capabilities of Tivoli software. Without Tivoli solutions, we would have had to substantially increase our staff if we were to meet our business goals. ” —René Schon Tivoli Senior Administrator NLV 16 § Met stringent service-level requirements for availability through proactive and predictive resolution of service issues § Accelerated response time for issues by enabling staff to quickly pinpoint the cause of a problem § Decreased number of staff needed to manage internal operational processes by 60 percent § Eliminated unnecessary travel to remote offices § Enabled staff to optimize resource utilization through integrated, end-to-end view of services Solution § IBM Tivoli Enterprise Console, IBM Tivoli Monitoring, IBM Tivoli Monitoring for Transaction Performance, IBM Tivoli Net. View, IBM Tivoli Configuration Manager, IBM Tivoli Remote Control © 2003 IBM Corporation

Take the Next Steps Now! 1. Get educated ! § Case studies § User groups & Networking 2. Develop your On Demand Automation plan § We provide the capabilities § If needed, get help through services Automation Assessment 17 3. Talk to your IBM sales rep or business partner about a Free On Demand Automation Assessment 4. Approach On Demand Automation in a step-by-step fashion with the overall vision in mind Automation helps you move to the On Demand world © 2003 IBM Corporation

© Copyright IBM Corporation 2003. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, the e-business logo and other IBM products and services are trademarks or registered trademarks of the International Business Machines Corporation, in the United States, other countries or both. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries or both. Microsoft, Windows NT and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries or both. All other trademarks, company, products or service names may be trademarks, registered trademarks or service marks of others Disclaimer: NOTICE – BUSINESS VALUE INFORMATION IS PROVIDED TO YOU 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBM DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE BUSINESS BENEFITS SHOWN. . IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF IBM'S NEGLIGENCE. WHETHER THOSE DAMAGES ARE DIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF OR INABILITY TO USE THE INFORMATION PROVIDED HEREWITH OR RESULTS EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE © 2003 IBM Corporation 18 ULTIMATE RESPONSIBILITY FOR ACHIEVING THE CALCULATED RESULTS REMAINS WITH YOU.

Dexia - Automating to achieve business integration Business Challenge Business expansion caused by a new acquisition presented Dexia with the challenge of consolidating IT infrastructures, in order to support business integration requirements and reduce cost of operations. “ IBM Tivoli Workload Scheduler has helped Dexia to achieve the integration that the business demands of IT, by reducing the complexity of the integration task, optimizing the use our skills, and by reducing the cost of licenses for several tools to one single, automated job scheduling solution. ” — Patrick Van Cutsem Process Analyst Dexia Group Belgium 20 Business Benefits § A single, standardized job scheduler for all environments, driven from a single console, enables Dexia to: Ø Reduce the complexity of the scheduling solution Ø Optimize the use of IT administrator skills Ø Reduce licensing costs associated with multiple solutions Ø Resolve job scheduling issues more quickly § More than 30, 000 jobs scheduled per day in total, over mainframe and heterogeneous distributed environments, growing at up to 10% per year Solution Centralized and automated job scheduling across order entry, operational and Oracle e-business Suite systems using IBM Tivoli Workload Scheduler © 2003 IBM Corporation

Société Générale Corporate & Investment Banking Business Challenge To satisfy customers at worldwide locations that their investment transactions are secure and confidential on a large international network “IBM offered us a complete package: a comprehensive Risk Management solution from Tivoli and IBM Global Services to deploy the solution over our world-wide network. No other vendor could offer us that package” —Christophe Maratray, EMEA Security Manager, Société Générale Corprate & Investment Banking 21 on demand Business Benefits: § Centralized control in Paris, of a world-wide implementation of Risk Management agents eliminates need for costly remote management § Automated alerts following intrusion detection enable real-time response to network attack § Reporting proves compliance with internal audit requirements and proves that SG CIB is protected § A complete IBM software solution installed worldwide by IGS/ITS Solution § IBM Tivoli Risk Manager § IBM Tivoli Enterprise Console § IBM Global Services- Integrated Technology Services © 2003 IBM Corporation

Achieving operational excellence Univé ”With Tivoli software, my employees have a better overview of our environment and now learn about potential problems before the end user. I am seeing greater uptime of my systems and more proactive handling of problems…. Tivoli software has helped me reduce costs. That’s been the most important contribution. ” — Henk Verkolf, Chief Technology Officer, Univé 22 Business Challenge § Cost-effectively distribute new applications and deliver support to 3, 200 employees across the Netherlands § Improve efficiency of data backup operations for business critical applications § Charge back business units for IT services used § Proactively manage environment to learn about problems before end use Business Benefits § Reduced backup window for business critical applications by more than 80% and enabled administrators to bring backups within SLA requirements § Virtually eliminated charge-back queries from business units thanks to accurate data on application usage § Anticipated savings of EUR 50 million annually on remote user support operations § Realized fast time to value through rapid deployment and use of best practices § Improved staff productivity, enabling promotion of two help-desk operators to change management roles § Provided integrated management view of infrastructure components and events to enable staff to identify root causes and resolve infrastructure problems more efficiently Solution § Tivoli Enterprise Console, Tivoli Monitoring, Tivoli Net. View, Tivoli Remote Control, Tivoli Configuration Manager, Tivoli Storage Manager © 2003 IBM Corporation

Nedcor Technology & Operations Business Challenge To reduce cost of systems management operations and improve quality of service and responsiveness to needs of the business on demand Business Benefits: “IBM Tivoli products are enabling Nedcor to implement a single, integrated, process-driven management approach across our entire IT management infrastructure. This approach has already proven successful through reduced operational costs and improved levels of service to our customers” —Dave Ruger Senior Systems Integrator Nedcor Technology & Operations 23 § Cost of systems management operations reduced by 24% over 3 years; return on investment plan fulfilled; ongoing savings finance further projects § IBM Tivoli products were flexible enough to meet the pre-defined process model based on ITIL § Faster, automated software configuration management has enabled more time for QA, and more opportunity to meet business deadlines § Worm anti-virus and MS Security patches rapidly rolled out to 26, 000 PCs, ensuring minimal infection Solution § § IBM Tivoli Configuration Manager IBM Tivoli Remote Control IBM Tivoli Enterprise Console IBM Tivoli Net. View © 2003 IBM Corporation

Commerzbank Business Challenge Maintain the bank’s high standards of customer satisfaction by ensuring maximum availability and performance of online and in-branch banking applications “Integrated, proactive Tivoli event management provides us with an automated way of being a ‘step in front’, and ensures that our branch and internet customers always have a pleasant banking experience” —Bastian Steubing Team Manager Commerzbank 24 on demand Business Benefits: § Web-based applications for 1200 branches and 70, 000 users per day are available and responsive § Reporting demonstrates service level compliance to lines of business for each individual application § On demand flexibility for the IT Operations team as the TEC Web-based console provides ability for roaming or remote support, 24 x 7 § 20% improvement in development, and easier deployment of log file adaptors with new TEC adapter features Solution § IBM Tivoli Monitoring for Transaction Processing § IBM Tivoli Enterprise Console © 2003 IBM Corporation

Halifax Bank of Scotland (HBOS plc) Business Challenge To ensure that HBOS customers have an excellent banking experience, 24 x 7. on demand Business Benefits: “For HBOS plc as an established IBM Tivoli Enterprise Console user, version 3. 9 brings even more automation possibilities via the webbased console, which also offers better desktop resource utilization and faster, simpler deployment. ” § 99. 97% availability of mission critical banking systems ensures systems § Central correlation of 83, 000 events per day from 4000 servers and 4000 network devices, result in up to 3000 events to the operations console § New web-based console offers more automation via customization features, and better resource utilization § Tighter integration with IBM Tivoli Net. View has encouraged transition to Net. View as standard for network management Solution —Mark Wityszyn, Senior Infrastructure Technical Developer, HBOS plc 25 § IBM Tivoli Enterprise Console 3. 9 § IBM Tivoli Net. View © 2003 IBM Corporation

SIGNAL IDUNA Gruppe Business Challenge To bring Insurance products to market faster via remotely distributed agents; improve customer service and reduce expense, to meet business goals. “Tivoli automation software from IBM has helped to empower our mobile sales force and at the same time has brought significant cost savings to the bottom line, giving Signal Iduna a powerful competitive edge in the German Insurance market. ” — Anja Seeringer Leader of Systems Management SIGNAL IDUNA Gruppe 26 on demand Business Benefits: § Faster, more reliable access to up-to-date sales data and applications for the mobile work force at 80 remote branch office locations § Improved quality of customer service enables the Sales force to be dynamic and competitive § Estimated savings of € 313, 000 per year through reduced processing expenses for policies Solution § IBM Tivoli Configuration Manager 4. 2 § IBM Tivoli Enterprise Console § IBM Tivoli Monitoring § IBM Tivoli Remote Control © 2003 IBM Corporation