Sap cloud for banking cxo roundtable bahrain sep 15

Basel Alshawa Eng. MBA

Solution Sales Manager (HR LOB) – SAP Gulf States & Pakistan

Driving Innovation in Banking with SAP Cloud –

For People, Money, Suppliers, Customers, Data and Everything Else

Banking CXO Roundtable – Bahrain, Sep 15th, 2014

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

Innovation In The Digital World

5B middle class

growing to 5 billion

will strain

resources

30B devices wirelessly

connected to the

internet of everything

by 2020

Data Doubling

every 18 months

create opportunities

and risks for value

creation

75% New enterprise IT

spend will be cloud-

based or hybrid by 2016

Millennials

will transform

customer demands

and the workplace

1B people in social

network will rewire

business

and personal

boundaries

New + Disruptive

business models

will accelerate change

and innovation

© 2013 SAP AG. All rights reserved. 3

Dynamics SAP Cloud Innovation

Why SAP? Next Steps

Dynamics in the Banking Industry

Procurement, Operations, and IT Cost and complexity

Risk and Finance Profit and regulation

Sales and Service Time to market

HR Workforce restructuring

• On-boarding new customers

• Lack of visibility into customer

base

• New non-traditional

competitors

• Pressure for greater ROI

• Establish compensation plans

with reduced scrutiny

• Decrease in employee

retention

• Hindered succession planning

• Capital holding requirements

• Regulatory rules and auditing

requirements

• Increasing liquidity and cash

return requirements

• Complex, aging, siloed systems

• Pressure on internal costs to serve and

operate

• Rapid change to payments landscape

• Real-time cash management

Increased pressure on decision makers across the enterprise



Why SAP? Next Steps

Banking is at an Inflection Point

Serve clients and drive

profits while maintaining

regulatory compliance

Cloud

Real-Time

Computing

B2B/B2C

Social

Big Data

Mobile

Personal Computer

WWW

Smarter

Algorithms

Emerging

Markets

Volatility Government

Regulations

Distributed Computing

Internet Self-Service

Multi-Channel

End of Life

Scalability Limitations

Application Silos,

Data Sprawl Service-Level Challenges

Technology

Debt

Technology

Value



Why SAP? Next Steps

Banking and the Cloud Imperative

Of banks surveyed believe that cloud

computing will transform their organization

and/or industry

93%

Of banks expect cloud to amplify and

accelerate other technology megatrends

(e.g., Big Data, mobility, analytics)

76%

Of banks surveyed have “completely” or

“extensively” adopted cloud solutions

14%

Source: SAP Performance Benchmarking, 2012 Cloud Study with Knowledge@Wharton



Why SAP? Next Steps

Cloud Solutions Deliver Agility and Innovation

Faster deployment • Full deployment in weeks

• Mobile-grade user experience = less training

More frequent innovation updates • Multiple innovation releases per year

• Customer feedback a cornerstone of updates

Agile deployment, configuration, and integration • Rapid process configuration

• Faster adoption

• No lengthy upgrade cycles

• Packaged integration

Lower TCO and faster time to value • Lower initial solution and deployment fees

• No maintenance or upgrade costs

• Prepackaged integrations



Why SAP? Next Steps

Sales and Service: Serve clients with tailored products and

services in real time

Finance: Improve margins, respond to rapidly changing

market conditions

Risk: Predict liquidity needs holistically

Procurement: Reduce operating and supply chain costs

Head of HR: Empower employees to meet business goals

Head of Payments: Manage working capital proactively

CIO: Reduce infrastructure costs, increase business agility

The Time is Now: Transform Banking with Cloud


Why SAP? Next Steps



Why SAP? Next Steps

Customers Seek Outcomes Not Products


Dynamics SAP Cloud Innovation Why SAP? Next Steps

SAP Cloud Strategy



Our Strategy helps Customers to focus on Business Outcome



Partnerships: We Deliver Choice to Our Customers



Focus on Business Outcomes to Succeed



SAP Cloud Portfolio

SaaS – Software as a Service (LOB applications)

PaaS – Platform as a Service (HANA)

IaaS – Infrastr. as a Service (Managed Cloud/HEC)

14 © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Finance Procurement HR

Marketing

Cloud for

Marketing

Omni-

channel

Commerce

Sales Service

Cloud for Sales2 Cloud for

Service

CRM on HANA

(for Industries)

CRM on HANA

(for Industries,

Billing & Revenue)

Human

Resources

Procuremen

t

Supply

Chain

Managemen

t

S&OP Cloud

on HANA

Suite on HANA

(SD, MM, PP &

PLM)

CFO Office

Simple Finance*

Business

ByDesign

Simple Finance

Suite on HANA

(FICO), GRC

SCM, PLM &

Manufacturin

g

Cloud for Travel

& Expense

Social Media

Analytics

Managed

and

OnPremi

se

Public

Omni-channel Commerce & Customer

Engagement

Collaboration SAP Jam, Business Network

Fiori User Experience + SAP HANA Realtime Platform Application Development, Integration, Database and Analytics, Foundation

Analytics BI (BusinessObjects), EPM, BW on HANA

SAP Cloud Portfolio Power Operations Across the bank Innovation and Agility - delivered in a unified approach

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

*

Adobe executed via partnership

Also available in Managed Cloud

Simple Finance will have a Public Cloud option for new Finance deployments available by year-end 2014

Simple Finance will also have a Managed Cloud alternative to FICO



Challenges in Banking With human capital management for HR lead

Of money center banks

trust the growth of their

organizations to

SuccessFactors

80%

Of an average bank’s

operating expenditure

is spent on employees

70%

Of revenue added back

to profit with adoption of

SuccessFactors

1%

Source: SuccessFactors Benchmarking

Retention challenges after post-crisis layoffs

Establish focus and accountability, resulting in clear

correlation between performance and pay

Branch employees concerned with job security while

being asked to promote other channels

Loss of key talent

Continue 100% workforce compliance to continually

changing regulations and consumer protection acts

Recruitment and training of multichannel workforce

requires multichannel strategies



SuccessFactors – Start Anywhere, Go Anywhere! Delivering better human capital management

SuccessFactors is a “Leader” in Gartner’s Magic Quadrant and a “Leader” in Forrester’s Wave

SuccessFactors Delivers

Complete global solution

across all HR functions

Business applications

designed for how people

work

Data analysis, insight, and

guidance across the

enterprise to help drive

maximum business impact

Flexible and extensible

architecture to start

anywhere, go everywhere

Conten

t Integratio

n

Extensibilit

y

Recruiting

Core

HR

Onboarding

Learning Succession

& Development

Performance

& Goals

Workforce

Planning

Workforce

Analytics

Social

Collaboration

Payroll Compensation



Challenges in Banking With customer interactions for head of sales and marketing

Poorly executed sales strategy

Monetizing the call center

End-to-end sales force automation

Support for omni-channel customer interaction

Effectively managing the many partner channels

Timely management of billing and real-time revenue

reporting

Lack of holistic view of marketing cycle

Of financial institutions have

a unified 360-degree view of

the customer and are able to

provide a consistent

experience

Greater ability to use Big

Data with a well-defined

analytics strategy

27%

Higher portion of field

sales achieving quota

where sales pipeline is

optimized

17%

68%

Source: SAP Performance Benchmarking



SAP 360 Customer – Cloud for Customer (C4C) Delivering better marketing, sales, and service

Retain customers while

converting loyalty into

revenue and profitability

Improve relationship selling

Make selling easier

Make fact-based decisions

Attract more customers

while driving profitability and

growth

Leverage customer insights

Accelerate marketing

Build sticky loyalty

Market

Better

Sell

Better

Exceed customer

expectations and drive

customer loyalty anytime,

anywhere, and on any

device

Solve issues faster and

smarter

Streamline service operations

Provide mobile and online

access

Service

Better



Challenges in Banking With financial management for CFO

Lower financial closing

FTE cost when the

financial system supports

internal and external

accounting requirements

56%

Lower general ledger and

financial closing costs when

general ledger and financial

systems are integrated to

produce accurate data

90%

Fewer days to annual close

when general ledger system

supports multicurrency

accounting processes and

entries

19


Little transparency across the enterprise

Ever-changing regulatory requirements

Slow response to market dynamics

Managing risk in real time

Enterprise compliance management

Fast and timely closing of the general ledger



SAP Cloud for Financials Delivering better financial transformation

SAP Cloud for Financials

delivers:

Complete coverage of end-to-end

accounting value chain

Real-time insights and

collaboration

One single source of the truth

with a central financial data

repository

Trusted reporting and analytics

Streamlined and integrated fast-

close processes

Complying with global

financial reporting

requirements

Overseeing all

accounting operations

Defining and

executing business

plans

Providing strategic

insight across the

enterprise



Challenges in Banking With liquidity risk management for chief risk officer

Million cash flows can be

aggregated and liquidity

profiles calculated in one

second

200

Terabytes of data

storage capability

100

New or amended regulations

between 2012 and 2019

>29


Basel III liquidity rules

Market situation of debt and mortgage crisis

Multiple cash flows orientations causes huge data

volumes

Increasing costs for refinancing

More expensive liquidity procurement

Finding liquidity for high return investments



SAP Liquidity Risk Management on HANA Enterprise Cloud Delivering holistic liquidity

LIQUIDITY RISK

MANAGEMENT

Basel III Market

Data

Volumes

Analytics

Organization and

Processes

SAP Liquidity Risk

Management delivers:

Basel III compliance

Prediction of liquidity needs

Real-time simulations and stress

testing

Drill-down to individual cash flows

Holistic handling of liquidity risk



Challenges in Banking With B2B networks for head of procurement

Improvement in

compliance

60%

Reduction in price

4-15%

Improvement of

working capital

20%

Source: Ariba Benchmarking

Manual paper-based collaboration, point-to-point

EDI, portals, and single process solutions

High operating and supply chain costs

Maverick spending, delayed payments,

overpayments, and missed discounts

Long sourcing and contracting cycles

Wasted time in identification of new, competitive

sources of supply

Manual and ineffective insight into supplier

behaviors and capabilities



Networked Economy with Ariba Business Network Delivering a better B2B e-commerce network

Ariba delivers:

Enhanced buying power and

reduced costs

Discovery of new sources of supply

Reduction in supply chain costs and

risk

Better visibility and predictability

Real-time management of working

capital

Lower system maintenance and

costs; improved availability



Challenges in Banking With corporate connectivity for head of payments

Of banks indicated they

are looking to improve

connectivity

86%

Of banks reported

communication and

connectivity issues

65%

Of corporate finance

executives indicate they

will be early adopters

of cloud

41%

Source: Celent: THE BANK-TO-CORPORATE CONNECTIVITY MARKET, April 2013

Lack of visibility and control into high volume of

financial messages

Difficulties in managing working capital across multiple

banking relationships

Complexity in transacting with multiple financial

institutions

Slow response to market dynamics

Implementation, maintenance and “expertise” costs

Multiple failure points and/or complex infrastructures



SAP Financial Services Network Delivering better corporate connectivity

Issue Invoice

Forecast Cash

Finance Working

Capital

Resolve Disputes

Collect Cash

Check Credit-

Worthiness

Settle and Pay

Reconcile

SAP Financial Services Network

delivers:

Value services

Cloud-based bank-to-corporate services

platform

Trust and security

Rapid services deployment

Low TCO

Standard industry messaging support

Settle and Pay Reconcile Collect

Cash

Platform

On-Boarding

Analytics

Business Directory

Channels

Charging and Billing

Integration

E-store

SAP

Financial

Services

Network



Challenges in Banking With data management for CIO

Of companies have a

360-degree view of their

customers

16%

Greater ability to utilize Big

Data to gain insights with a

well established analytics

and data modeling center

of excellence

40%

Higher operating

effectiveness with ability to

monitor business in real time

39%


Risk data aggregation

Global compliance reporting

Ancient data silos and aging infrastructure

Data cleansing: separating good data from the

white noise data

The need for real-time data

Multiple regulatory requirements

29 © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Simplify consumption with SAP cloud powered by HANA

SAP HANA Platform

Applications Analytics

BEST PRACTICE

Processes

COMPANY SPECIFIC

Processes

Public Cloud

HR, Customer Experience,

Procurement, Finance

Industry and

Managed Cloud Core, Logistics, Business

Suite, Business Warehouse

© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Extensio

ns

Platform

Partner

&Startu

ps

Simplified User Experience



Best-Run Customers in the Cloud

1.2 million Connected companies

from 190 countries

collaborating on >$600

billion worth of commerce

annually. That’s 3x-50x

the size of any other

business network

30 million Cloud users

2 million Cloud deployments

http://www.google.com/imgres?imgurl=http://www.collegegrad.com/images/company_logo/90.jpg&imgrefurl=http://www.collegegrad.com/topemployers/company/suntrust-bank/&usg=__L640jzXRBjjj6TNnY7U2ygPN5RA=&h=1088&w=1620&sz=109&hl=en&start=4&sig2=G5-1koVwxzAJ2IcQoaqTVg&zoom=1&um=1&itbs=1&tbnid=CprU_0Nn-VZlVM:&tbnh=101&tbnw=150&prev=/images?q=suntrust+bank&um=1&hl=en&tbs=isch:1&ei=I-HzTKLPIIL0vQPT6uSXCg

http://www.google.com/imgres?imgurl=http://bbb4m.wikispaces.com/file/view/BANK_america.jpg/71773067/BANK_america.jpg&imgrefurl=http://bbb4m.wikispaces.com/Bank+of+America&usg=__iGk2KgRPinQzYPCvcYhKo6kcIaA=&h=506&w=1997&sz=193&hl=en&start=3&sig2=C5jDP8CTsi6WkPMCmJ2NyA&zoom=1&um=1&itbs=1&tbnid=9xBY1sHlA_ps2M:&tbnh=38&tbnw=150&prev=/images?q=bank+of+america&um=1&hl=en&sa=N&tbs=isch:1&ei=G9_zTPesBImevQP_5KCUCg



SAP Banking Incumbency and Expertise

Retail Aareal Bank

CBA

Citizens Bank

Nationwide Building

Society

RBC

Standard Bank

UniCred

Commercial Credit Suisse

Deutsche Bank

ING

NAB

Nedbank

Westpac

World’s most admired

banks are members of the

SAP Executive Advisory

Council for Banking

97% of the major banks

in the Forbes 2000 are

SAP customers

Multi-industry support on a

single platform

Deep industry-specific

capabilities

Embedded, preconfigured

best practices

Clear industry roadmap

12,000+ bank customers globally

Banking

97%

Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database as of May 2013



Analyst Sentiment on SAP’s Cloud Offerings

Sources: Gartner “Magic Quadrant for Talent Management Suites”, March 2013; Gartner “Magic Quadrant for Strategic Sourcing Applications Suite, July 2013; Ovum

View, December 2012 http://ovum.com/2012/12/18/saps-financial-services-network-offer-may-provide-lessons-for-ariba/ ; PAC Blog, July 2012 http://blog.pac-

online.com/2013/05/sap-builds-cloud-offering-around-hana/

SuccessFactors is

a “Leader” in

Gartner’s 2014

Magic Quadrant

for Talent

Management

Suites

Ariba is a

“Leader” in

Gartner’s 2013

Magic Quadrant

for Strategic

Sourcing

“SAP’s ERP cloud

should

differentiate its

service from rival

offerings.” Ovum

“SAP HANA

Enterprise Cloud

offers companies

a good way to

deploy SAP HANA

without heavy

investment into

hardware.” PAC

http://ovum.com/2012/12/18/saps-financial-services-network-offer-may-provide-lessons-for-ariba/



















http://blog.pac-online.com/2013/05/sap-builds-cloud-offering-around-hana/















SAP: Your partner for co-innovation

SAP for Banking:

Industry team with over 2,000

resources dedicated to quickly deliver

your solution

Leveraging breakthrough

innovations

40 years of delivering value to banks

Clear roadmap specific to banking’s

unique issues



Experience

it yourself at the next local

SAP event or check out

SAP global events, and

solutions for banking

Initiate

the benchmarking process

with a free value assessment

at

valuemanagement.sap.com

Engage

with SAP in Design

Thinking workshops

Contact: your SAP contact

Contact

your account team to

schedule a meeting

Basel Alshawa

[email protected]

Next Steps

http://www.sap.com/events/index.epx

http://sap.com/banking

http://valuemanagement.sap.com/sapglobal

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

Basel Alshawa Eng. MBA

Solution Sales Manager (HR LOB)

SAP Gulf States & Pakistan

+971-50-5574799