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The 8th Continent Guruprasad Gaonkar / Financial Services Industry Leader / SAP South East Asia September 2015
Introducing The 8th Continent
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The World Today Introducing The 8Th Continent
It took hundreds of thousands of years for the world’s population to grow to 1 billion, and in just another 200 years or so it grew sevenfold. Today the world’s population
stands at 7.2 Billion people
Good Life
Worry
Friends
Family
Love
Needs
Work
Wealth
Little less than 1% started migrating to a newly created continent
1995
Migration of The First Billion 2005
The migration of the Second Billion 2010
The Third Billion in 2014 2014
It is 3.2 Billion ( 21% YoY) Today
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The 8th Continent
Some More Facts
2.1 Billion of them are busy connecting to each
other
Social Business Commerce Traded $3.2 Trillion worth
of goods and services with an average order value of $491,
on an average conversion rate of 10%
Commerce 1.3 Billion of them spent $1.47 Trillion on Shopping
with an average order value $147
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5 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
The 8th Continent The world’s largest taxi
company owns zero vehicles
UBER
The world’s most valuable retailer has zero
inventory
ALIBABA
The world’s most popular media owner creates
zero content
The world’s largest accommodation provider owns zero real estate
AIRBNB
Are we waiting for someone to
create The Worlds Largest Bank
with zero bank structures?
Market Insights Data Points
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Market Value Is Shifting to The 8th Continent Digital Market Place
These digital based companies have attracted $1.2 trl (excluding Alibaba)
Amazon
Yahoo
Face book
eBay
Samsung
Netflix
Alibaba
Soft- Bank
Companies defining the digital customer
experience
Baidu
Tencent
Apple
Traditional Bank Digital Level of digital adoption
Bank Ranking (Accenture Banking Digital Index)
These banks attracted $411 bln
$286 bln moved away from these
banks
ICBC
CCB
Unicredit Intesa Sanpaolo
Citi
MUFG
Banco do Brazil
BOC
BBVA
ABC
Santander
BoA
HSBC
CBA
WFC
TD
RBC
Scotia JPMC
Banks leading the transition to digital customer experience
ING
Maybank DBS
DNB
Nordea
ANZ
mBank
First Rand
Data source: Annual Reports, Analyst Reports, Accenture Analysis
Dec. 2007 Feb. 2013
Estimate
Legend ( size of the bubble represent the market capitalization )
Note: All the valuation is in billion of USD
NON EXHAUSTIVE
Growth in market capitalization
+
-
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So, What Did We Understand?
If you replace
with Servers and Algorithms Buildings and Humans
you make Billions
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Adjusting to New Business Models
Exacerbate ongoing pressures and change the ecosystem…
Drastically changing external forces…
Consumer
Technology
Regulatory
Economic
Competition
Pressure on Revenue
Pressure on Costs
Changing Ecosystem
Necessitating changes in the business model…
New Business Model
Distribution
Innovation
Architecture
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Again, What Do We Learn?
Bank Structures were built in
for the physical distribution of Paper The Last Century
in a localized network (The Branch)
New Business Models Architecture, Distribution, Innovation Examples
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Architecture & Planning for Digital
Video
Example
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Distribution Contextual Deals
“Contextual Deals” based on predictive analytics delivers hit rate of
400% increase in credit products 200% increase in insurance products
250% increase in savings products
Branch Online Mobile
Digital first
Example
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Innovation Payments, and Social Banking
Example
Video
Holistic Framework for Digital Technology Innovation
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It Is All About Moving Customer Centricity Beyond Channels Into the Heart of the Bank, to be Best Positioned for Digital Market Place
Logical Operating
Model
Centricity Product Centric
Segment Centric
Customer Centric
Branch Centric
Car
ds
Mor
tgag
es
Cas
h m
anag
emen
t
Cor
pora
te L
endi
ng
Dep
osits
Some shared enterprise
Digital ecosystem Centric
Segment specific distribution
Marketing hub
Extensive shared enterprise functions
Multi-channel
Payments hub
Customer specific experience & offerings
Customer offer assembly (financial offering)
Customer feature manufacturing
Com
preh
ensi
ve v
iew
of c
usto
mer
Ana
lytic
s
Enterprise integration
Brand and marketing
Process & Service integration
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Celent Has Holistic Framework for Digital in Financial Services
Digital is about…
Underpinned by…
And requiring a change in...
In order to deliver…
Source: Celent
Delivering a customized but consistent FI brand experience to customers across all channels and points of interaction
Analytics Automation
Products and Services
Organization and People IT
Demonstrable and sustainable economic value
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Deliver customized but consistent brand experience across all points of interaction
Analytics
Automation
Organization, People, IT
Product & Services
Digital requires holistic framework to……….
� Recognizing that customers engage with Banking Services in a broader ecosystem
� Optimising each channel individually � Delivering on the “Omnichannel Promise
Underpinned by………….
and requiring a change in..
………and…
Holistic Framework for Digital What this Means and Components
Online
What This Means? Components
Mobile Commerce …
� Internal Analytics - Cross-sell/Up-Sell, Service Levels, Pricing… � External Analytics – Social, Sentiment, Advisory... � To optimise, in real-time for each customer
Marketing Sales Service
COE
Organizational Change Management
Customer 360
� Process Automation - STP � Document Digitization and Management � Natural Best Friend – Siri,
PFM Customer Insights
Offer Engine Social
� Organizing for Digital Transformation (COE, etc.) � Need for Cultural Change (Business & IT) � Skill and Enablement
Service Delivery Model
Technology Assembly
� Digital Wallets � Card-Lined Offers/Merchant Funded Rewards � Bank account-based Payments � Value Added Services; New Monetization Services
Wallet Core Banking
Cards and Rewards
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Deliver customized but consistent brand experience across all points of interaction
Analytics Automation
Organization, People, IT
Product & Services
Banks require holistic framework to……….
Underpinned by………….
and requiring a change in..
………and…
SAP Financial Services Solutions for Digital Market Place End to End Architecture
� Mobile Banking � Mobile Commerce � Omni-Channel Banking � Context Driven real-time offers � Relationship based pricing
� Customer Information Hub � Customer Engagement & Management ( Sales,
Customer Service & Marketing) � Predictive Analytics � Enterprise Data Warehouse
� Next Gen Human Resource Management � Supply Chain Efficiency ( Paperless Procurement) � Finance & Risk Transformation
� Retail Core Banking
SAP Solutions SAP Customer Examples
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Platform for the Digital Centric Ecosystem
World-class User Experience
Customer Centricity
Core Operations
Risk & Finance Management
Partner Collaboration
Industry Capabilities
People-to-People collaboration
Marketplace
Finance HR Procurement IT
Line-of-Business Solutions Partner | Independent Software Vendors | Startups
Business-to-Business collaboration
Create & Build Storage & Aggregate Orchestrate & Govern Analyze & Predict Go Mobile & Secure
Powered by SAP HANA
Social Network Text Data Structured Data
Public Cloud
Private Managed Cloud
On Premise
SAP HANA®
SAP HANA
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Financial Services SAP Global Customer Base
19,000+ Financial Services Customers
120 Countries 180+ Core Banking
100M + Live Bank Accounts (+75M in implementation)
200+ Mobile and / or Internet Banking 45% of Capital Markets Front and Middles Offices 300+ Core Insurance 400M + Claims Handled 1,000+ Database 160+ Cloud More than 2, 700 SAP FSI customers in APJ
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Thank you Guruprasad Gaonkar Industry Director, Head of Financial Services Industry SAP South East Asia [email protected] Linkedin: http://sg.linkedin.com/in/ggaonkar Twitter: @iGuruGaonkar
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