Dial In

Location Lines Local Number Toll-Free

Conference title: Australia N/A 1800178517

Austria +43662227399 0800298658

IVN for Banks goes independent: Belgium +3234002849 080074540

Brasil N/A 08008914821

Banking Industry Architecture Canada N/A 18002816133

Network (BIAN) China Netcom N/A 108007490079

China Telecom N/A 108004900066

Croatia N/A 0800222708

Participant access code: Czech Republic N/A 800143195

Denmark N/A 80883083

673299 # Finland N/A 0800914760

France +33172720007 0800 910757

if your country is not listed please dial Germany +496940359100 0800 4556555
the number of the closest location Hungary N/A 0680013752

India N/A 0008001006770

Ireland N/A 1800555065

Israel N/A 1809349046

Italy +390236006349 800788755

Japan N/A 00531490061

Netherlands N/A 08000221946

Norway N/A 80018218

Philippines N/A 180014910003

Poland N/A 008004911556

Portugal N/A 800849174

Romania N/A 0800895028

Russia N/A 81080021291049

Singapore N/A 8004922114

Slovakia N/A 0800 049007

South Africa N/A 0800980959

Spain +34914140993 900984962

Sweden +46850619535 020796829

Switzerland +41445801601 0800561028

United Kingdom +441616010002 08081016355

© SAP
© SAP
20082008
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1 1 USA +1215 689 1085 18663070255
Industry Value Network (IVN) for Banks /
Banking Industry Architecture Network
(BIAN)

Karin Fischenbeck, Strategic Alliances FS

January 16, 2008
 Agenda

1. Current challenges in Banking IT

2. IVN for Banks going independent: BIAN

3. How to leverage SAP’s continued engagement

© SAP 2008 / Page 3

 Current challenges for Banking IT (1)

Mergers
Regulations

New Entrants

“ Just 54% of recent respondents believe their IT systems are supporting or

advancing their strategies”

EFMA/SAP THE FIVE PILLARS OF EXCELLENCE IN RETAIL BANKING 2007

© SAP 2008 / Page 4

 Current challenges for Banking IT (2)

IT is the powerhouse of banks, BUT:

 Perceived as hindering strategic business requirements

 Challenged by the business to deliver more

 Faced with high integration costs

 A major part of integration costs are spent on semantic integration

 No standardized vocabulary
 No standardized landscapes
 No standardized object models
 No standardized services
 …

© SAP 2008 / Page 5

 Agenda

1. Current challenges in Banking IT

2. IVN for Banks going independent: BIAN

3. How to leverage SAP’s continued engagement

© SAP 2008 / Page 6

 Overview: Strategic SAP Banking Communities

SAP for Banking focused communities

Fostering Service-Oriented Architecture
(SOA) through an
open and independent
C-Level

Banking Community
Banking
Advisory
Board

Industry Value
Network (IVN)
for Banks
Architects

Transformation into an open and

Chief IT

Banking
Chief independent community in 2008
Architects‘
Forum

© SAP 2008 / Page 7

 Analyst Quote on SAP‘s Ecosystems

….
IDC:
The Value of SAP’s Customer-Focused Ecosystems

„The network effect of bringing together

suppliers, customers, and partners results
in significant benefits for all parties.“

Source: IDC Study 2007 - SAP Drives Alliance Innovation Through Customer -Focused Ecosystem
by Stephen Graham Julie Tiley

© SAP 2008 / Page 8

 The IVN for Banks in Action

Business Benefits for Banks

Participating in IVN

 Faster projects and time-to-value

through SOA best practice for banks

 Jointly solving current and future business

requirements

 Lower risk through sharing experience

Vibrant community of 20 banks,  Additional skills (“teach-the-teacher”)

along with 16 software and
service providers and  Closer alignment of IT with business

technology vendors

© SAP 2008 / Page 9

 There are many SOA Initiatives –
Why BIAN is Unique
BIAN…

 focuses on semantics

 is open and vendor-independent

 does not discuss technology

 is a best practices approach

 represents an initiative from banks for banks

 enables software and service providers to support the industry

 captures the banking industry

 is based on many useful and rich IVN results

© SAP 2008 / Page 10

 IVN Results: Latest version of the Meta Model

© SAP 2008 / Page 11

 IVN Results: Banking Business Service Landscape

Version 4.2 - Nov. 28, 2007

Reference Data Sales & Service Operations & Analytics Business Support
Execution
Business Partner Marketing Agreements Market Oriented Enterprise
BP Analytics and Resources
Campaign Mgt. Loans Customer Behavior
Relation BP-BP
Lead Mgt. Deposits
Contract Relationship Enterprise Level. Reporting,
Cards
Strategy Management
Structured Products Enterprise Planning
Financial
Instruments Asset Liability Mgt.
Portfolio

of IVN
Sales Internal Rep. and Dec.
Financial Instruments Lockbox
External Reporting
Sales Planning
Intrabank Agreements
Market Data Sales Advise Finance and Risk Valuation
…

s
Market Data Sales Contract Credit Risk Val.

or Focu
Market Risk Val.
Counterparty Data
Generics Financial Acc. Val.
Institutional Data Support
Servicing Payment Execution Liquidity Risk Val.
Corporate Actions
Operational Risk Val.
Agreement-bound S. Cash Recording

No maj
Derived Market Data
Profitability Val.
Non-Agr.mnt-bound S. Token Recording
Product Present Value Val.
Generalized Recording
Product
Authorization Cross Analytical
Data and Methods
Static Information Steering and Reporting Communication Analytical Result Data
Rules Operational Reporting Calculation Services Basic Analyt. Meth.

Calendar Analytical View …

Customer Reporting Planning & Control
Scenario Definition
Static Information

Business Area Domain Sub-Domain

© SAP 2008 / Page 12

 IVN Results: Examples Service Definition

Manage Business Partner

 Create Business Partner
Roll-In to SAP Solution Development
 Modify Business Partner  SAP adopted already 14 of 27 defined
 Delete Business Partner Business Partner Services
 Get Business Partner Information  Explicit commitment to use definitions in SAP
Product Definition Phase
 Identify Business Partner
 However no synchronization of projects
 Get Business Partner Contact
Information
Service Definition Adoption of Work
Customer Folder Management
 Configure Customer Folder
 Configure Customer Report
Driven by own Projects / Needs
 Create Customer Folder
 Bank and Partner defined Services needed
within the Bank
Relationship Report
 Need driven approach ensures practical result
Management
 Configure Report
 Configure Basis Report
 Get Report Configuration
© SAP 2008 / Page 13
 IVN Results: Building Blocks

Building Blocks
 High quality documentation of various
topics around SOA in a Bank
 Examples:
 Architecture Management
 The Service Life Cycle Process
 Roles within Business Architecture
 …
 Proposed Usage
 Source of deep knowledge and
experience
 Benchmark for own approaches

 Final Target - A comprehensive

cookbook:
 „How to do SOA in a Bank“

© SAP 2008 / Page 14

 The Industry Value Network (IVN) for Banks
transitioning into an Independent Association

Industry Value Network (IVN) for Banks BIAN

Launch Expansion Independent Community
2005 2006 / 2007 2008 onwards

BIAN

Banking Industry
Architecture Network
(BIAN)
 Launched 2005  Strong growth to
 Collaborative include 20
banks and 16  Registered Association
approach with
several leading software and
service partners  New IP Regulations
banks and SAP
 Strongly supported by
 Initiated by SAP
SAP’s Banking
Advisory Board

© SAP 2008 / Page 15

 What BIAN is All About – The Vision

Lower Integration Cost

Software Provider
Service Provider Bank internal IT & Ops – Enable Make or Buy Decisions
Insourcing Outsourcing – Broader Market for Vendors and
Bank to Bank
Bank to Bank
Bank to Customer
Customers
Bank to Customer
Bank to Corporate Bank to Corporate – Enable In- / Outsourcing, BPO,
Semantic
Value Chain changes
Integration

Supplier Customer
Technical
Integration

Cost
„Bankers new Hype Product“
or
“The new B2B-process”

Enable Innovation by increased flexibility

 Provide granular set of services and
components
Loans Deposits Insurance
 Enable recombination

© SAP 2008 / Page 16

 High level Business Case – Example: Bank

Benefits [€] Cost [€]

 Training for 2 participants: 10.000 €  Membership fee: 20.000 €

 Participation cost (time): 20.000 €

 Access to material6/ days in total
specifications: 20.000 €
 Travel and accommodation: 5.000 €
45.000 €
 Discuss own issue / challenge: 20.000 € Participation of 20 days in total
Usage of one result: e.g.
Service Landscape
 Participation at events (2 participants): 10.000 €
60.000 €
Consulting cost saved

2 Events of 3 days each

BIAN participation pays off

€
© SAP 2008 / Page 17
 What a BIAN Year Looks Like – Example 2008
Timeline BIAN
Public Events Americas / Asia Events
Foundation
1st Meeting European Event

Architecture
Board
Monthly Call Meeting at BIAN Event

Architecture
Team
Ongoing work

Content Work Group 1

Modules
(within diff. Work Group 2
Workgroups)
Work Group …

Work Group n

Independent
Topic Modules

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

presence virtual

© SAP 2008 / Page 18

 Agenda

1. Current challenges in Banking IT

2. IVN for Banks going independent: BIAN

3. How to leverage SAP’s continued engagement

© SAP 2008 / Page 20

 Let us Exploit the Full Potential for SAP

BIAN as a door-opener Support banks’ change their

establishing SAP as a organisations and processes,
trusted advisor improve skills and expertise
C
on
su

s
lti

le
ng
Sa

M
ar

t
en
ke

m
tin

op
g
el
ev
D

Position SAP as open and Better adapt solution portfolio to

collaborative, driving the industry the market requirements
as a thought leader in SOA Shorter Time-to-Market
© SAP 2008 / Page 21
 Who to address this topic to within the banks

Chief Information Officers

 Position IT as an enabler for the business
 Reduce IT complexity through SOA
 Be perceived as innovative IT managers

Chief IT architects
 Learn about innovative approaches
 Share experiences in an open community
 Leverage best practices

© SAP 2008 / Page 22

 How to join BIAN?

Seven steps for companies to become a member

1. Approach BIAN – Contact details see next slide
BIAN
2. Ask for / Download the membership documents
3. Provide a short company overview
4. Approval by the Board of Directors (only for Software and Service Providers)
5. Sign membership agreement and get officially registered
6. Pay membership fees
7. Be part of it and enjoy the benefits from your active involvement!

© SAP 2008 / Page 23

 Your Contact for BIAN Prospects

Oliver Kling
Solution Architect Banking
Line of Business Banking

SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf

T +49 (62 27) 7 47386

M +49 (171) 3085 394

E oliver.kling@sap.com

© SAP 2008 / Page 24

 Key Take-aways

 SAP spearheaded IVN for Banks and re-enforces commitment in BIAN

 Banking Advisory Board and Chief Architects‘ Forum remain unchanged

 Positive impact on analyst perceptions, partners and prospects

Significant potential in BIAN

… let‘s leverage it to further increase our market share in banking

© SAP 2008 / Page 25

 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

© SAP
© SAP
20082008
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 Thank You for Your Interest in BIAN

Questions

© SAP 2008 / Page 27