sire exercises shanghai - june, 2013 prof. gianmario motta daniele sacco, ph.d. student
TRANSCRIPT
SIRE Exercises
Shanghai - June, 2013
Prof. Gianmario Motta
Daniele Sacco, Ph.D. student
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SuperBank Case Study
Super Bank, led by Jean Dupond, Chief Executive Officer (CEO), is a universal bank (Retail and Corporate) with operations divisions across UE.
The Retail Division serves retail and small business customers. It operates in France, Germany, Switzerland and Italy. The Retail Division offers a full range of banking products for consumers (checking accounts, mortgages, loans, personal credits etc.). Alike other large banks, Retail Division includes captive corporations for consumer credit (consumer loans) and life insurance.
The geographical structure of Retail Division is on several levels: country, area, market, and branch. The branch is the atomic unit, and it includes front office, that interacts with the customer, and some back-office activities, that include processing checks, accounting and related processes. However, for the sake of efficiency, back-office activities of branches have been centralized in regional hubs (one in Lombardy, one in Tuscany, etc.).
The branch front office must effectively manage customers in their entire life cycle. Therefore, each customer is assigned to an individual branch clerk. The clerk is in charge of all customer transactions; only larger branches have a manager, who is in charge of loans (although not exclusively).
The size of the branches ranges from 2-3 to 6-9 employees. Most have 5 employees. Each branch is headed by a branch manager. Groups of 8-12 branches are coordinated by a Market Leader. who reports to the Area Manager, who runs a geographical area (e.g. Tuscany).
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SuperBank Case Study
Large banks compete on services offered to the customers. Since the service price (i.e. the interest rate) is essentially market-driven and therefore does not substantially change across banks, customers are sensitive to service levels and switch banks accordingly.
With interests rates set by the market, the costs are the main issue. The first cost is personnel and technology is the second one. To improve financial performances banks should increase staff productivity by optimizing tasks, skills, technology while developing also the quality to customers. For a large bank it is also mandatory to provide services throughout Europe, evolving to a pan European vision.
The customer / market structure, by unifying processes across Europe, allows economies of scale of ICT costs. As matter of fact, a traditional geographical structure leads to islands of automation, with segregated systems for each country (e.g. France, Italy etc.). Conversely, customer / market organization requires common systems for each service class – checking accounts, loans and so on.
This economy of scale can eventually generate resources for service innovation. A strong evolution factor is the fast growth of the digital culture of customers.
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Information Catalogue
Master Event Analysis
Stakeholders
Law
Competitor
Customer
Supplier
Broker
Shareholder
Resources
Personnel
Plants
Raw materials
Cash
Context
Structure
Project
Region
Output
Process
Product
Service
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SIRE Grid- Personalization phaseMaster Event Analysis
Identification DescriptionRegistratio
nCertification Efficiency Effectiveness
Stakeholders
Law
Competitor
Customer
Business
Retail
Resources
Personnel
LoanAgent
Clerk
Cash
Context
Structure
LoanDepart.
Branch
Output
Process
Product
In this phase we can specialize domains and
decompose levels, to further adapt the table
for our purposes.
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SIRE Grid- Refining phase
Master Event Analysis
Identification Description RegistrationCertificatio
nEfficiency
Effectiveness
Stakeholders
LawMortgage loans regulation
Basilea 2 Certification Out of scope
Competitor• Company
data• Business
• Balance Sheet
• mortgage loan
services• Geographic
distribution
Out of scope• Capture rate
• Revenue
• Process duration
• Flexibility• Customer
satisfaction
Customer
Business
• Personal data (name,
surname, ssn, etc)
• Bank account• Credit
limit
• Mortgage request• loan request
• Customer satisfaction• Loyalty• Revenue
Retail
For each class of information, one or more SIRE are requested, with the purpose of
modeling according to our needs.
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SIRE Grid- Refining phase
Master Event Analysis
Identification DescriptionRegistratio
nCertification Efficiency
Effectiveness
Resources
Personnel
Agent-Manager • Personal data
(name, surname, ssn,
etc)
• Tasks• Skills
• Seniority level
• Career
• Schedule
• Mortgage certification• Loan
certification
Absenteeism• Effort
• Flexibility
• Schedule
• Mortgage request.• Loan request
Absenteeism Effort
Clerk
Cash Movables capital register Money transfer (payment) • Cash flow index
Context
Structure
Loan Depart.
• Head of department• Number of loan agent
• Location
• Mortgage certification• loan certification
• Revenue
Branch
• Head of branch• Number of employee
• Location• Department
• Money transfer (payment)• Mortgage request.• Loan request
• Cash flow index• Capture rate
• Volume of customer
Output
Process• Structure (activities)
• Flow
• Schedule• Collateral
• Process status information• Time to certification
ServiceID
TypeFeatures
Money transfer (payment)Mortgage request
Loan requestCapture rate
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SIRE Card –
SIRE CARD
Importance ★ ☆☆☆☆
Description
MASTER DATAIdentification Name Description
Description Name Description
TRANSACTION DATA
Registration Name Description
Certification Name Description
ANALYSIS DATA
Efficiency Name Description
Effectiveness Name Description
This is a SIRE CARD. Into this kind of card is possible to find all the information about a row of a SIRE Grid
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SIRE Card – STAKEHOLDERS- LAW
SIRE CARD – Stakeholder Law
Importance ★★★★★
This card shows the strategic characteristics of the law in the banking sector
MASTER DATA
Mortgage loan regulation
Describe the national ed international law concerning mortgage loan
Basilea 2
Recommendations on banking laws and regulations published in June 2004, was intended to create an international standard for banking regulators
TRANSACTION DATA
CertificationCertification about european
conformity standards
ANALYSIS DATA Out of scope
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SIRE Card – STAKEHOLDERS- Competitor-1
SIRE CARD – Competitor – Only loans and Universal bank
Importance ★★★★★
This card shows the strategic data regarding to competitors into banking sector
MASTER DATA
Identification
Company Data Company identification data
BusinessThe market in which the competitor works.
Geographical distribution
Description of how the competitor is distributed on the territory
ImportanceActual and perceived importance of the competitors
CompetitivenessCompetitiveness of the competitors in the mortgage loan market
Competitive approachWhich kind of strategy is used by the competitor into the market.
DescriptionBalance sheet
Data about the economic value of competitors.
Volume of mortgage loan
Estimated volume of mortgage loan released by the competitor
TRANSACTION DATA
Out of scope
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SIRE Card – STAKEHOLDERS- Competitor-1
SIRE CARD – Competitor – Only loans and Universal bank
ANALYSIS DATA
Efficiency
CapturationIt indicates capacity of the competitor to capture new customers
RevenueEstimated revenue created by the competitor from the releasing of mortgage loans
Effectiveness
Process durationDetails about the total duration of the mortgage loan process
FlexibilityHow flexible is the bank respect to the customer’s needs
Customer satisfaction How the customer is satisfied
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SIRE Card – STAKEHOLDERS- Customer Private
SIRE CARD – Customer Current
Importance ★ ★★★★
This card shows the strategic data regarding current customer into banking sector
MASTER DATA
Identification
Personal data Customer identification data
HouseholdThe total amount of people who live in the same dwelling.
Credit limit
A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit
Description
Relationship with the bank
A collection of data regarding the pregress
RankingThis description of the relationship between bank and customer
TRANSACTION DATA
Mortgage loan request A request of mortgage loan
ANALYSIS DATA Effectiveness Customer satisfaction How the customer is satisfied
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SIRE Card – RESORCES- Personnel Loan Agent - 1
SIRE CARD – Personnel – Loan agentImportance ★★★★★
This card shows the strategic data regarding loan agent
MASTER DATA
IdentificationPersonal data Loan agent personal data
Seniority Level of seniority of loan agent
DescriptionTask Tasks made by the loan agent
Skills Skills held by the loan agent
TRANSACTION DATA
Registration
Career Career made by the loan agent
Education Data about education of loan agent
Mortgage LoanData about mortgages practices followed by the agent
Schedule List of appointments
Certification CertificationProfessional certification held by loan agent
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SIRE Card – RESORCES- Personnel Loan Agent -2
SIRE CARD – Personnel – Loan agent
ANALYSIS DATA
Efficiency Absenteeism Absenteeism trend
Effectiveness
Bad debt Shows the talent of the loan agent
EffortHow high is the loan agent commitment
FlexibilityHow flexible is the agent respect to the customer’s needs
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SIRE Card – RESORCES- Personnel Clerk
SIRE CARD
COS’è
COSA FA
TYPE OF DATA
MASTER DATA Identification
Description
TRANSACTION DATA
Registration
Certification
ANALYSIS DATA
Efficiency
Effectiveness
SIRE CARD – Personnel – Clerk
Importance ★★★☆☆
This card shows the strategic data regarding clerk
MASTER DATA
IdentificationPersonal data Clerk personal data
Seniority Level of seniority of clerk
DescriptionTask Tasks made by the clerk
Skills Skills held by the clerk
TRANSACTION DATA
RegistrationCareer Career made by the clerk
Education Data about education of clerk
Certification CertificationProfessional certification held by clerk
ANALYSIS DATAEfficiency Absenteeism Absenteeism trend
Effectiveness Effort How high is the clerk commitment
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SIRE Card – RESORCES- Cash
SIRE CARD- Cash
Importance ★★☆☆☆
This card shows the strategic data regarding money
MASTER DATA Movables capital Amount of money available
TRANSACTION DATA
Money transferDescribes different type of money transfer
ANALYSIS DATA BudgetingAmount of money available for mortgages
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SIRE Card – STRUCTURE – Loan department
SIRE CARD – Loan department
Importance ★★★☆☆
This card shows the strategic data regarding loan department
MASTER DATAHead of department
Data about who is responsible for managing the department
Number of loan agentTotal number of loan agents which belong to the department
TRANSACTION DATA
Mortgages issued data Data about issued mortgage loans
ANALYSIS DATA RevenueEstimated revenue from mortgage loan released
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SIRE Card – STRUCTURE - Branch
SIRE CARD – Branch
Importance ★★★☆☆
This card shows the strategic data regarding branches
MASTER DATA
Head of branchData about who is responsible for managing the branch
Number of employeeTotal number of employee which belong to the department
Geographical positionData about the place where the branch is located
Territorial incisivenessHow effective the branch is in its territory
Volume of customer How many people are customer
TRANSACTION DATA
Money transactionMoney transactions made to provide loans
ANALYSIS DATAAmount of origination
Amount of origination made by the branch
CapturationIt indicates capacity of the branch to capture customers
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SIRE Card – OUTPUT - Process
SIRE CARD – Process
Importance ★★★★★
This card shows the strategic data regarding the mortgage loan process
MASTER DATA Structure and flowIdentification about the structure and the flow of the process
TRANSACTION DATA
Market research Data from market research
ScheduleList of activity to do, to complete the process
Info on collateral Identification data about collaterals
Process tracking/status
information
Some information that are useful to understand the trend and the status of the process, like real estate appraiser evaluation, inquiry status, risk analysis evaluation, collaterals evaluation
ANALYSIS DATA Process KPISome indicators that are useful to understand the process
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From SIRE to ER diagrams
Entities that are useful to model our application are added during refinement:• Appointment, because we need to manage all the appointment that involved
all the stakeholders.• Collateral, because we need collaterals first in any MGL (mortgage-loan)
request and these should be well manage in order to reduce wasting time.• Real estate, because usually the appraisal result is not computerized and the
scope of our new application is to make everything computerized.• Inquiry request, because we need to track any request and get informed
about the timeline and status.• Customer, because we want to have an overall information of the customer of
the same screen.• MGL request, because this is the principal entity of our system which contains
all information that useful to the loan agent in order to have an overall of view of the file and makes necessary actions on it.
• Loan Agent, because he is necessary to carry out the MGL application.• Notary, because in order to finalize the request the different stakeholders
should meet with the notary to validate the contract
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INTEGRATED ER