jrap gc meeting daniel chong, gm for fsi mar 3, 2008
TRANSCRIPT
JRAP GC Meeting JRAP GC Meeting Daniel Chong, GM for FSIDaniel Chong, GM for FSI
Mar 3, 2008Mar 3, 2008
2© 2007 ORACLE CORPORATION
China Banking LandscapeChina Banking LandscapeChina Banking LandscapeChina Banking Landscape
Tier 1 - Strategic4 State-owned Banks(BOC,ICBC,ABC,CCB)
Tier 2 - NamedShare-holding Banks & Policy Banks(BOCOM,CMB,HXB,CMBC,CITIC,CEB,CIB,CPB,PBoC,ADBC,EIBOC,CDB etc…)
Tier 3-Mid MarketRegional Banks118 CCB, 12+ RCB, 30,000+
Rural Credit Cooperatives
(Being Consolidated)
15
4200+ Subsidiaries
200+ Subsidiaries
China Banks
Global Banks
Source: CCID Consulting, Feb 06
3© 2007 ORACLE CORPORATION
Tier 1 & Tier 2 Banks OverviewTier 1 & Tier 2 Banks OverviewTier 1 & Tier 2 Banks OverviewTier 1 & Tier 2 Banks Overview
TechCustomer
Facing
BankDominating Database HCM FMS CRM
Risk / Performance Management Basel II
Core Banking
Industry and Commercial Bank Oracle/DB2 Local Oracle None None None In-houseBank of China Oracle Local Oracle Siebel None None FNSChina Construction Bank Oracle Local Oracle S1 QRM None In-houseAgriculture Bank of China Sybase Local In-house None None None In-housePeople's Bank of China Oracle/SybaseLocal SAP None None None NoneChina Merchant Bank DB2 Local SAP In-house None None In-houseBank of Communication Sybase Oracle PSFT None None None In-houseShangHai PuDong Bank Oracle SAP SAP Local Sungard None In-houseHua Xia Bank Oracle/InformixPSFT Oracle In-house None None FNSChina Minsheng Bank Informix PSFT Oracle PSFT None None SAPChina Ever Bright Bank Oracle Local SAP Local None None LocalCITIC Bank DB2 SAP SAP SAP None None FiservChina Development Bank Oracle Local Oracle In-house OFSA None SAGD development Bank Oracle Local Oracle In-house None None LocalState Devlopment Invest Corp Oracle Oracle Oracle In-house None None NoneShangHai Bank Orcale Local PSFT In-house None None TemenosChina Industrial Bank Informix PSFT In-house PSFT None None LocalChina Post Saving Bank Oracle Local Local In-house None None Local
Back Office Core System
4© 2007 ORACLE CORPORATION
Tier 3 Banks in ChinaTier 3 Banks in ChinaTier 3 Banks in ChinaTier 3 Banks in China
• Regional Banks – 100+ Regional Banks – 100+
- In the process to revamp core-banking, back office systemsIn the process to revamp core-banking, back office systems
• Consolidation activities going onConsolidation activities going on
• Candidates for foreign investmentCandidates for foreign investment
• Listing RequirementsListing Requirements
Regional Banking Program (EBS & OFSA)Regional Banking Program (EBS & OFSA)
- Pre-configured templatesPre-configured templates
- Shortened time to go liveShortened time to go live
- Marketing events with selected partnersMarketing events with selected partners
- Co-sell model (vs pure resell model)Co-sell model (vs pure resell model)
- Reference selling (lighthouse accounts such as Ningbo, Nanjing, Reference selling (lighthouse accounts such as Ningbo, Nanjing, Chongqing CCBs)Chongqing CCBs)
5© 2007 ORACLE CORPORATION
HK Major Banks OverviewHK Major Banks OverviewHK Major Banks OverviewHK Major Banks Overview
TechCustomer
Facing
Bank Database HCM FMS CRM
Risk / Performance Management Basel II Core Banking
HSBC Oracle PSFT PSFT Oracle In-house Fermat In-houseSCB Oracle PSFT PSFT Oracle In-house Fermat Hogan & OtherBOC(HK) Oracle PSFT Oracle Oracle Oracle Fermat Hogan & OtherHSB Oracle Oracle In-house In-house &
Shared HSBCNone Fermat In-house &
Shared HSBCBEA Oracle Oracle PSFT PCCW&NCR Oracle None
Accenture / Alnova
WLB Oracle In-house In-house Genisys&IBM Oracle None OtherCKWB Oracle SAP Other In-house None None Alltel
DSB Oracle OtherSmart Stream Oracle Oracle None In-house
Administration Core System
6© 2007 ORACLE CORPORATION
Taiwan Major Banks OverviewTaiwan Major Banks OverviewTaiwan Major Banks OverviewTaiwan Major Banks Overview
TechCustomer Facing
Bank Database HCM FMS CRMRisk / Performance Basel II
Core Banking
Fubon Oracle Oracle Other Oracle Other ALGO OtherBank of Taiwan Oracle Peace Unisys None Oracle ALGO Unisys Cathay Oracle Local Oracle Other Oracle None FNSTaiwan Cooperative Bank Oracle Local Other Other Sungard None Unisys CTCB Oracle Oracle SAP Other Sungard Other FNSShangHai Commercial Bank Oracle Oracle Other Other Other None OtherSKL Oracle Local Other None None None OtherFuhwa Oracle Local Other Other Oracle Fermat Other
Administration Core System
7© 2007 ORACLE CORPORATION
Go to Market Initiatives in ChinaGo to Market Initiatives in ChinaGo to Market Initiatives in ChinaGo to Market Initiatives in China
• Become a Customer Centric BankBecome a Customer Centric Bank- Customer data management, marketing, sales, service & support, Customer data management, marketing, sales, service & support,
and analyticsand analytics
• Improve Operational Effectiveness of Corporate AssetsImprove Operational Effectiveness of Corporate Assets- Financials, HCM, procurement, project managementFinancials, HCM, procurement, project management
• Effectively Manage Compliance, Risk and PerformanceEffectively Manage Compliance, Risk and Performance- Profitability manager, risk management, internal controls manager, Profitability manager, risk management, internal controls manager,
EPMEPM
• Mid-Market (Regional Banking Program)Mid-Market (Regional Banking Program)- Simplified packaged deliverablesSimplified packaged deliverables
• HCM / iLearning in InsuranceHCM / iLearning in Insurance- HCM, Learning Management, I-expenseHCM, Learning Management, I-expense
• Transforming to Flexible Core Banking ProcessTransforming to Flexible Core Banking Process- Core banking platform & solutions, consumer lending, lease Core banking platform & solutions, consumer lending, lease
managementmanagement
8© 2007 ORACLE CORPORATION
Best PracticeMarginal Stable
Operating Performance
Hig
hL
ow
Me
diu
m
Pri
ori
ty
Transformational
“Lo
ng
er T
erm
”
“Targets”“Secondary
Targets”
CRM – Loyalty & Marketing
FMS
Key Opportunity Areas Key Opportunity Areas Solution Priority Map Solution Priority Map
Corebanking
Lease Management Wealth Management
HCM
GRC
Basel II
CRM – Sales
Call Center Anywhere
9© 2007 ORACLE CORPORATION
AdvantageAdvantageAdvantageAdvantage
FSI Apps License annual compound FSI Apps License annual compound growth = 58% for last 3 yearsgrowth = 58% for last 3 years
Oracle presence in China market:Oracle presence in China market:
- 9 out of top 14 Banks use Oracle Applications- 9 out of top 14 Banks use Oracle Applications
- 2 out of top 4 Insurance companies use Oracle - 2 out of top 4 Insurance companies use Oracle AppsApps
- Top Tiered City Commercial Banks : Nanjing, - Top Tiered City Commercial Banks : Nanjing, Ningbo, ShanghaiNingbo, Shanghai
A Accounts: BOC, China Construction A Accounts: BOC, China Construction Bank, Bank of Communications, PingAn Bank, Bank of Communications, PingAn Insurance, CPIC, Huaxia Bank, Insurance, CPIC, Huaxia Bank, Shenzhen Development Bank, GDBShenzhen Development Bank, GDB
Maintains >80% win rate against SAPMaintains >80% win rate against SAP
10© 2007 ORACLE CORPORATION
Challenges - ExternalChallenges - ExternalChallenges - ExternalChallenges - External
Growth of implementation resources is Growth of implementation resources is lagging behind the high Oracle license lagging behind the high Oracle license growth rate in China FSI market – both in growth rate in China FSI market – both in OCS and partner communityOCS and partner community
SAP aggressive push to win back FSI SAP aggressive push to win back FSI market sharemarket share
In-house development culture of big state In-house development culture of big state owned banks – ICBC, ABCowned banks – ICBC, ABC
iFlex’s lack of presence and commitment in iFlex’s lack of presence and commitment in China marketChina market
11© 2007 ORACLE CORPORATION
Challenges – InternalChallenges – InternalChallenges – InternalChallenges – Internal
Product Roadmap for EPM / OFSAProduct Roadmap for EPM / OFSA
Pricing Strategy for emerging marketPricing Strategy for emerging market
small but high growth enterprisessmall but high growth enterprises
large enterprises with low HR cost, and low large enterprises with low HR cost, and low usage users (e.g. sales agents)usage users (e.g. sales agents)
Localization – PeopleSoft HRLocalization – PeopleSoft HR
Sales Compensation on PA, EPB & Sales Compensation on PA, EPB & ReveleusReveleus
Oracle / I-Flex engagementOracle / I-Flex engagement
Resources – CCA, LeasingResources – CCA, Leasing
12© 2007 ORACLE CORPORATION
ConsiderationsConsiderationsConsiderationsConsiderations
Separate and larger China investment fund for Apps Separate and larger China investment fund for Apps partner enablement – directed by Industry LOBspartner enablement – directed by Industry LOBs
Certification of multi-levels of consultantsCertification of multi-levels of consultantsAt least 200 additional certified consultants in FSI within FY09At least 200 additional certified consultants in FSI within FY09
OCS investment to triple China resources in two years OCS investment to triple China resources in two years Sales Plans on EPM, PA & ReveleusSales Plans on EPM, PA & Reveleus Pricing strategy for emerging marketsPricing strategy for emerging markets Industry Thought Leadership ProgramIndustry Thought Leadership Program
Overseas customer / speakers on best practiceOverseas customer / speakers on best practiceWin / Go Live StoriesWin / Go Live StoriesSponsorship of Industry Trade PublicationsSponsorship of Industry Trade Publications