Helping the finance industry reach new horizons Ecole

Helping the finance industry reach new horizons Ecole de Commerce Solvay GEST 310 : gestion des technologies Etude de cas : éditeur de progiciels 2 mai 2005

INTRODUCTION Your speaker today Philippe de Wouters, Directeur Commercial, Callataÿ & Wouters SA pdw@c-w. be -2 -

INTRODUCTION 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… -3 -

INTRODUCTION Our agenda in some points Ø 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… -4 -

COMPANY PROFILE Mission statement To deliver innovative IT solutions for the financial services industry… …that help our customers to meet their business objectives -5 -

COMPANY PROFILE Focus Dedicated to the finance services industry 280 consultants with in-depth technical and financial knowledge -6 -

COMPANY PROFILE Activities Three principal activities Solution development Implementation and development projects Consistent and complementary -7 - Support

COMPANY PROFILE Milestones Incorporation 1983 First banking software development at Sogénal Focus on development and implementation of a software package 1987 1993 Commercial launch of Thaler v. 1 Breakthrough: Argenta, Banque de la Poste, NSI, Cortal, Eural, LBK, Rabo… Intensification of international sales effort 1996 2000 2002 -05 -8 -

COMPANY PROFILE Presence Brussels Jakarta Luxembourg 1983 1991 2004 International expansion Geneva London 2003 2000 Singapore Paris 2002 -9 -

COMPANY PROFILE Main Figures (end 2004) • Revenue : 33. 6 Mio EUR • Net result : 3. 0 Mio EUR • Reserves : 7. 8 Mio EUR • Staff : 320 - 10 -

COMPANY PROFILE Revenue Consistent, strong profitability - 11 -

COMPANY PROFILE C&W Shareholders 58, 5% 38, 5% - 12 - 3%

10 millions Volume (millions of accounts) COMPANY PROFILE References 1 million LA POSTE (RNCC) Retail Universal Private Securities - 13 - Commercial Corporate Public Sector

COMPANY PROFILE International Groups - 14 -

COMPANY PROFILE So. . . why C&W ? Customer dedicated Relevant solutions Committed people Sound strategy Fruitful partnerships - 15 -

COMPANY PROFILE So. . . why C&W ? Customer dedicated Relevant solutions These have all contributed to C&W’s reputation for Committed people QUALITY and Sound strategy PROFESSIONALISM Fruitful partnerships - 16 -

INTRODUCTION Our agenda in some points • The company C&W Ø 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… - 17 -

FINANCIAL IT 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 - 18 -

FINANCIAL IT 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 ! - 19 -

FINANCIAL IT Is IT strategic ? Market response Know your customer IT is a decisive tool for the implementation Management Corporate informationof the bank’s structure strategy Operational productivity Long term IT choices - 20 -

FINANCIAL IT From home-made applications to market solutions • • • MAKE High costs Long development Tests and tuning IT team master Vendor independant • • • BUY Lower costs Short implementation Proven and stable Ext. responsibility Vendor dependant Necessary balance between both extremes A big change, ongoing, and implying : • mature solutions • a new vision of IT • a new role for IT teams - 21 -

INTRODUCTION Our agenda in some points • The company C&W • Financial IT Ø The Thaler software package • What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… - 22 -

T HAL E R Product family - 23 -

T HAL E R Strong added value Unique combination of Large functional coverage Maximum flexibility Turns your IT system into a strategic key differenciator - 24 -

T HAL E R Product philosophy Extensive functionality Open and modular design Framework based Integrated Factory - 25 -

T HAL E R General Scheme Thaler. Securities Thaler. Treasury Thaler. Loans Thaler. Deposits Thaler – Bank Management ‘ 2003 -C&W - 26 - Thaler. Payments

T HAL E R Thaler components Securities Deposits Loans Securities ID Customer accounts Mortgage & investment loans Securities accounting Interest calculations Customer loans Orders Term deposits Overdraft & revolving credits Corporate actions Certificates of dep. Term advances Commitment credits Securities options Portfolio valuation Model portfolios Bank Management Credit files Collateral management Customer Information Credit opening & credit lines Accounting Payments Treasury Risk management National payments Foreign exchange Tariffs & conditions Physical delivery Pension funds Loans & deposits FX options IRS FRA Messaging Tax General functions - 27 - Remittances Standing orders Cheques Direct debits Bank card Agency operations

T HAL E R Design : from needs to choices BUSINESS • Business-lines IT • • variety • combination • customer view • multi-channel • Products • niches • innovation • Corporate • multi-company • munti-country • growth • acquisitions - 28 - Specific coverage Evolution Modularity Openness Connectivity Scalability Availability

T HAL E R Client-server architecture Network TCP/IP 3 -tier Thin client Standards Open - 29 -

T HAL E R Client-server architecture Network TCP/IP - 30 -

T HAL E R Complete toolset Implementation Customisation Release management Documentation Closely linked to the methods - 31 -

T HAL E R Appropriation Thaler. Securities Thaler. Treasury Thaler. Loans Thaler. Deposits Thaler. Payments Thaler – Bank Management Thaler - Framework ‘ 2003 -C&W Thaler is now yours - 32 -

T HAL E R 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 ! - 33 -

Customers Sales Office Counter Multi-channel Bank KYUDO Multi-channel External network B 2 C Direct network B 2 N Back-Office - 34 - External network

General scheme T E R AN Operational Systems TERAN DATA CENTER Historized data (D-M-Y) Derivated data Calculation CRA P&L IFRS AML B II Reports Reports - 35 -

INTRODUCTION Our agenda in some points • The company C&W • Financial IT • The Thaler software package Ø What is a package vendor ? • What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… - 36 -

EDITOR Editor’s tasks • • R&D Product development Maintenance Hot-line - 37 -

EDITOR R&D On-going R&D effort to ensure solutions meet the needs of changing markets Awareness of business and technological changes Constant review and revision of products - 38 -

Development cycle EDITOR • Development Analysis / design Decision of study Development and tests Estimates Decision of offering Start of delivery Decision of dev. • Delivery Implementation pilot project Module available 3 months Module Go Live - 39 - 2 months Start Integration Standard available

EDITOR Product maintenance Maintenance contract New releases Bug fixing - 40 -

EDITOR Bug fixing Depending on severeness Blocking Non Blocking Patch New releases - 41 -

EDITOR New release contents For a subset of modules New functionalities Patch integration External evolutions (regulatory – technical interfaces) Non blocking bugs - 42 -

Paradox to be managed EDITOR • New clients • • Bug fixing Legal evolutions Market evolutions New functionality PROGRESS • Existing clients • • Minimal evolutions Maximal added value Minimal implementation cost Maximal stability - 43 - STABILITY

EDITOR 3 + 1 Working cycles • Patch development (ASAP) • New minor release (1 / year) • New modules (when decided) 2. 2. a. 2. 2. b. 2. 3. a. 2. 2. x. 2. 3 ® “Full” patch integration ® New Dev integration ® Rev. mod. / new funct. • New major releases (transverse : +/- 8 years) - 44 -

EDITOR 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 - 45 -

EDITOR Editor’s pricing • Licences : • Basic prices per module • Weighting factors (intensity of use) • From 0, 5 to 5 mio € • Maintenance : • Yearly fee • Usually 15 % - 46 -

INTRODUCTION Our agenda in some points • The company C&W • Financial IT • The Thaler software package • What is a package vendor ? Ø What is a service provider ? • Human resources • Sales and marketing strategy • International development • The future… - 47 -

SERVICES 2 services = 2 steps Implementation project Post implementation support - 48 -

SERVICES Projects Product implementation Tailor-made development - 49 -

Go-live Tests Compl. fcts develop. Migration Interfaces Integration Parameterisation Design Analysis of the needs Installation SERVICES Project stages Project Management Time - 50 -

SERVICES Project team (Cortal Consors case) • 1 Project Director (> 7 years) ü Overall responsible ü Principal interlocutor • 3 Project Leaders (4 – 6 years) ü ü Domain responsible : analysis and design Managing the analysts Integration tests User Interlocutor • 3 Analysts (1 – 3 years) ü ü Installation and transfers Parameterization Developments Unit tests - 51 -

SERVICES Post implementation Standard maintenance Customised support - 52 -

SERVICES Support services • • • Maintenance of taylor-made applications Implementation of Thaler releases Outsourcing of operation support Customised help-desk Etc… Knowledge of client’s environment - 53 -

SERVICES Flexible agreements • • • C&W team on-site Dedicated but remote team Pre-booked days On-call (incidents) Extension to 7 x 24 • … and any combination - 54 -

SERVICES Pricing • Basicly, price per manday (time and material) • Commitment according to the risk : • Limited t&m • Fixed price • Help-desk : yearly fee + calls - 55 -

INTRODUCTION 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 ? Ø Human resources • Sales and marketing strategy • International development • The future… - 56 -

Continuous recruitment - 57 - 01 20 00 20 99 19 97 19 95 19 93 19 91 19 89 19 87 19 85 19 83 19 HUMAN FAC T OR Staff

HUMAN FAC T OR 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 turnover - 58 -

HUMAN FAC T OR Staff breakdown R&D Projects - 59 -

HUMAN FAC T OR C&W structure General Management Financial Sales & Market. Internat. dev Resources - 60 - R&D Products Projects

INTRODUCTION 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 Ø Sales and marketing strategy • International development • The future… - 61 -

SALES & MKG 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 - 62 -

SALES & MKG 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 ! - 63 -

SALES & MKG Sales tasks • Prospecting : • • Awareness – information Relationship building Good understanding of needs and context Detection of opportunities • When opportunity, sales process : Appropriate • Presentations, workshops • Offer, negotiations profiles ! • Closing • Account-management : • Relationship • Problem solving • New opportunities - 64 -

SALES & MKG Marketing activities • • • Sales material Web site External events Own events Balloon Press/communication Reference guides, directories Sponsoring Few advertising Criterion : tangible quality ! - 65 -

SALES & MKG Strengths - weaknesses • • Good products Competent people Leading position in home market Capacity of investment • Small size • Still insufficient presence abroad Go international ! - 66 -

INTRODUCTION 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 Ø International development • The future… - 67 -

INTERNATIONAL 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 - 68 -

INTERNATIONAL Development strategy New countries Large banks Groups Emerging banking fields ASP offering - 69 -

INTERNATIONAL 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 - 70 -

INTERNATIONAL Competition - 71 -

INTRODUCTION 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 Ø The future… - 72 -

FUT UR E Our challenge To become one of the 5 worldwide solutions in 2010 - 2015 - 73 -

Thank you for your attention !