Helping the finance industryreach new horizons

Ecole de Commerce SolvayGEST 310 : gestion des technologies Etude de cas : éditeur de progiciels

2 mai 2005

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Your speaker today

Philippe de Wouters,

Directeur Commercial,

Callataÿ & Wouters SA

pdw@c-w.be

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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…INT

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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…INT

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Mission statement

To deliver innovative IT solutionsfor the financial services industry…

…that help our customersto meet their business objectives

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Focus

280 consultants

with in-depth technical

and financial knowledge

Dedicated to

the finance services industry

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Activities

Consistent and complementary

Implementationand

development projects

SupportSolution development

Three principal activities

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Milestones

1983

Incorporation

1987

First banking software development at Sogénal

1993

Focus on development and imple-mentation of a software package

1996

Commercial launch of Thaler v.1

2000

Breakthrough: Argenta, Banque de la Poste, NSI, Cortal, Eural, LBK, Rabo…

2002-05

Intensification of international sales effort

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PresenceC

OM

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NY

PR

OF

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BrusselsBrussels

19831983 LuxembourgLuxembourg

19911991

LondonLondon

20002000

ParisParis

20022002

SingaporeSingapore

20022002

GenevaGeneva

20032003

JakartaJakarta

20042004

International expansion

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Main Figures (end 2004)

• Revenue : 33.6 Mio EUR

• Net result : 3.0 Mio EUR

• Reserves : 7.8 Mio EUR

• Staff : 320

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Revenue

Consistent, strong profitability

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C&W Shareholders

58,5% 38,5% 3%

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ReferencesV

olum

e (m

illio

ns o

f acc

ount

s)

RetailUniversal

Private Securities

CommercialCorporate

Public Sector

(RNCC)

LA POSTE

1 million

10 millions

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International GroupsC

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So... why C&W ?

Fruitful partnerships

Sound strategy

Committed people

Relevant solutions

Customer dedicated

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So... why C&W ?

Fruitful partnerships

Sound strategy

Committed people

Relevant solutions

Customer dedicated

These have all contributed to C&W’s reputation for

QUALITY and

PROFESSIONALISM

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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…INT

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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

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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 !

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Is IT strategic ?

Know your customer

Operational productivity

Long term IT choices

Market response

Corporate structure

Management information

IT is a decisive toolfor the implementation

of the bank’sstrategy

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From home-made applicationsto market solutions

•High costs•Long development•Tests and tuning•IT team master•Vendor independant

MAKE•Lower costs•Short implementation•Proven and stable•Ext. responsibility•Vendor dependant

BUY

Necessary balance between both extremes

A big change, ongoing, and implying :• mature solutions• a new vision of IT• a new role for IT teams

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CIA

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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…INT

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Product familyT

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Strong added value

Unique combination of

Large functional coverage

Maximum flexibility

Turns your IT system into a strategic key differenciator

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Product philosophy

Extensive functionality

Open and modular design

Framework based

Integrated Factory

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General Scheme

‘2003-C&W

Thaler-Treasury

Thaler-Loans

Thaler-Securities

Thaler-Deposits

Thaler-Payments

Thaler – Bank Management

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Thaler components

Certificates of dep.

Term deposits

Interest calculations

Customer accounts

Deposits Loans

Credit opening & credit lines

Collateral management

Credit files

Commitment credits

Term advances

Overdraft & revolving credits

Customer loans

Mortgage & investment loans

Securities

Pension funds

Physical delivery

Model portfolios

Portfolio valuation

Securities options

Corporate actions

Orders

Securities accounting

Securities ID

FRA

IRS

FX options

Loans & deposits

Foreign exchange

Treasury

General functions

Tax

Bank Management

Messaging

Tariffs & conditions

Risk management

Accounting

CustomerInformation

Agency operations

Bank card

Direct debits

Cheques

Standing orders

Remittances

National payments

Payments

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Design : from needs to choices

•Business-lines• variety• combination• customer view• multi-channel

•Products• niches• innovation

•Corporate• multi-company• munti-country• growth• acquisitions

BUSINESS IT

• Specific coverage

• Evolution

• Modularity

• Openness

• Connectivity

• Scalability

• AvailabilityTH

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Client-server architecture

3-tier

Thin client

Standards

Open

Network

TCP/IP

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Client-server architecture

Network

TCP/IP

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Complete toolset

Implementation

Release management

Documentation

Customisation

Closely linked to the methodsClosely linked to the methods

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Appropriation

Thaler is now yoursThaler is now yours

‘2003-C&W

Thaler-Treasury

Thaler – Bank Management

Thaler-Loans

Thaler-Securities

Thaler-Deposits

Thaler-Payments

Thaler - Framework

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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 !

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Customers

Back-OfficeMu

lti-

chan

nel

Ban

k

Multi-channel

B2C

Externalnetwork

Sales Office

Externalnetwork

B2N

Directnetwork

Counter

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General schemeT

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CRA P&L IFRS AML B II

Reports Reports Reports Reports Reports

Operational Systems

TERAN DATA CENTER

Historized data (D-M-Y)

Calculation

Derivated data

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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…INT

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Editor’s tasks

• R&D• Product development• Maintenance• Hot-line

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Awareness ofbusiness andtechnological

changes

R&D

Constant review and revision of

products

On-going R&D effort to ensure solutions

meet the needs of changing markets

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Development cycle

• Development

• Delivery

Moduleavailable

Implementationpilot project

ModuleGo Live

3 months

StartIntegration

2 months

Standardavailable

Decisionof study

Analysis /design

Decision of dev.

Estimates

Decision of offering

Developmentand tests

Start of delivery

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Product maintenance

Maintenance contract

New releases Bug fixing

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Bug fixing

Depending on severeness

Patch

Blocking

New releases

Non Blocking

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New release contents

For a subsetof modules

New functionalities

External evolutions (regulatory – technical -

interfaces)

Patch integration

Non blocking bugs

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Paradox to be managed

PROGRESS

STABILITY

• New clients• Bug fixing

• Legal evolutions

• Market evolutions

• New functionality

• Existing clients• Minimal evolutions

• Maximal added value

• Minimal implementation cost

• Maximal stability

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• Patch development (ASAP)

• New minor release (1 / year)

• New modules (when decided)

• New major releases (transverse : +/- 8 years)

3 + 1 Working cycles

2.3

Rev. mod. / new funct.

2.2.a. “Full” patch integration

2.2.b.

New Dev integration

2.2.x.

New Dev integration

2.2 “Full” patch

2.3.a.

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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

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Editor’s pricing

• Licences : • Basic prices per module• Weighting factors (intensity of use)• From 0,5 to 5 mio €

• Maintenance :• Yearly fee• Usually 15 %

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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…INT

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2 services = 2 steps

Implementation project

Post implementation support

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Projects

Product implementation

Tailor-made development

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Project stages

Project Management

Inst

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An

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Time

Des

ign Compl. fcts develop.

MigrationInterfaces

Parameterisation

Inte

grat

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Tes

ts

Go-

live

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Project team (Cortal Consors case)

• 1 Project Director (> 7 years) Overall responsible Principal interlocutor

• 3 Project Leaders (4 – 6 years) Domain responsible : analysis and design Managing the analysts Integration tests User Interlocutor

• 3 Analysts (1 – 3 years) Installation and transfers Parameterization Developments Unit tests

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Post implementation

Standard maintenance

Customised support

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Support services

Knowledge of client’s environment

• Maintenance of taylor-made applications• Implementation of Thaler releases• Outsourcing of operation support• Customised help-desk• Etc…

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Flexible agreements

• C&W team on-site• Dedicated but remote team• Pre-booked days• On-call (incidents)• Extension to 7 x 24

• … and any combinationSE

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Pricing

• Basicly, price per manday (time and material)• Commitment according to the risk :

• Limited t&m

• Fixed price

• Help-desk : yearly fee + calls

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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…INT

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Staff

1983

1985

1987

1989

1991

1993

1995

1997

1999

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Continuous recruitmentHU

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2001

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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 turnoverHU

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Staff breakdown

R&D Projects

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C&W structure

General Management

Sales & Market.

Internat.dev

Resources R & D Products Projects

Financial

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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…INT

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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

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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 !

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Sales tasks• Prospecting :

• Awareness – information• Relationship building• Good understanding of needs and context• Detection of opportunities

• When opportunity, sales process :• Presentations, workshops• Offer, negotiations• Closing

• Account-management :• Relationship • Problem solving• New opportunities

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Appropriateprofiles !

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Marketing activities

• Sales material• Web site• External events• Own events• Balloon• Press/communication• Reference guides, directories• Sponsoring • Few advertising

Criterion : tangible quality !

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Strengths - weaknesses

• Good products• Competent people• Leading position in home market• Capacity of investment

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• Small size• Still insufficient presence abroad

Go international !

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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…INT

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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

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New countries

Large banks

Groups

Emerging banking fields

Development strategy

ASP offering

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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

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Competition

                      

 

                                     

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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…INT

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Our challengeF

UT

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To become one of the 5 worldwide solutions

in 2010 - 2015

Thank you for your attention !