Sustainable Advantage through Business Intelligence

1. Sustainable Advantage through Business Intelligence Raymond Au Oracle Asia Pacific

2. Your Problem

3. Business Challenges Facing Financial Services Industry Competitive Dynamics Driven Pain Points High Attrition Rates Customer-centric business models Convergence Consolidation & Commodi- tization Reduce Risks & Default Costs External Regulations 1. Manage Relationships Across Products & Channels 2. Maximize Sales & Service Efficiency & Effectiveness 3. Increase Customer Loyalty & Reducing Attrition 4. Identify & Attract Right Customers 5. Turn Compliance Effort into Operational Advantage Intelligent Insight Challenge

4. The Challenges We’re Hearing Grow Business & Cross-Sell to Customers “How can I streamline my business processes to grow wallet share and shorten time to market for new products and services?” “The average cost to acquire a new customer is $3,500 in the US” Compliance & Regulatory Pressures “How can my organization meet the increasing regulatory compliance demands?” “IT spend on compliance will grow annually at 14.1% and reach $3.0 billion by 2006” Scale Costs to Match Market Opportunity “How can I improve cost efficiency ratios while providing greater value to our customers?” “In the near to intermediate term, the industry is expected to continue to experience pressures on its net interest margin”

5. Need for a Complete View of Business Platform Processes People Customers Partners

6. Example: The Value of Customers

7. The Top Concerns of CEOs

8. Revenue vs Profitability

9. Using Insight to Drive Actions and Customer Interactions IntelligentInteraction Relative Value Insight-DrivenAction PerformanceManagement Query and OLAP TransactionReporting Generational Step Here areyour reports I can exploremy data How amI doingvs. goals? What is my best opportunity? What shouldI do next? What shouldI do right nowat the momentof contact?

10. Unnecessary Software Spending Excessive Training Development and Support Multiple Versions of “Truth” Integrated BI Platform • Unified Data Layer • Centralized Tools • Shared Metrics • Complete Customer View Trends in Business Analytics Multi-Vendor BI Strategies

11. Business Intelligence Platform Customer Data Data Warehouse Reporting OperationalData Materialized Views Querying Data Integration OLAP Cubes Partitioning External Data Analysis DataMining Enhanced Analytics Metadata

12. Summary • Executives Concise metrics on KPIs at corporate level Highly correlated with overall strategic plans • Management Focused on Key Performance Indicators for a business unit Report employee performance versus goals Broader scope of business • Employee Users Targeted analytics to improve job performance Broadest scope for ad-hoc analytics • Partners Targeted analytics to improve multi-organization initiatives Limited ad-hoc capability • Customers Highly focused analytics to monitor customer activity and guide behavior Detailed Trends in Business Analytics Empower All Users - Not Just the Few STRATEGIC TACTICAL ACTIONABLE RELATIONSHIP INFORMATIVE

13. Banking Analytics – Range of Solutions Credit Manager Branch Manager Risk Manager Teller Private Banker Commercial Banker Marketer Executives Business User Areas Accounts Analytics Service Analytics Marketing Analytics Sales Analytics Executive Analytics Consumer Analytics SR Aging Customer Satisfaction ResolutionRates Service RepEffectiveness ReferralsAnalysis ServiceTrends MORE… Campaign Scorecard ResponseRates CustomerLifetime Value ProductPropensity LeadsAnalysis Loyalty andAttrition MORE… Product SalesTrends Referralstracking HouseholdPenetration ProductBundling ProductPropensity ProductProfitability MORE… BusinessPerformance SalesPerformance MarketingResults ServiceEffectiveness ProductTrends AssetsValue MORE… Balance Trend Account Openings Share ofWallet DelinquencyAnalysis HoldingsValue FraudPrediction MORE… Call Reports Credit Risk AttritionTrends Customer PortalAnalytics MaturityAnalysis Events Triggering MORE… Functional Solutions

14. Frontend Analytics for Retail Banking • Deliver relevant insight to users across the bank including: • Best-practices KPIs across lines of business • Executive • Consumer Banking • Credit • Credit Card • Private Banking • Marketing • Pre-built mappings to operational CRM for quick alert creation

15. Frontend Analytics for Institutional Finance • 6 Line of Business specific dashboards, for Institutional Finance: • Institutional Sales • Investment Banking • Corporate and Commercial Banking • Wealth Management • Separate Account Management • Investment Holdings

16. Analytic Workflows – Financial Analytics Business Objectives / Issues Maximize Cash Flow • Business Function:Receivables • Role:Director, Credits & Collections • Objectives: • 1) Maximize Cash Flow • 2) Control Risk of Receivables Portfolio Is DPO on target? Is DSO on target? Is Overdue Balances trending up? Are Payment Terms in compliance? Gain Insights How long is the underlying Overdue Balance pending? What is the aging of Due Balances? Who are the Customers and Collectors? Drill to Due Balances by Region Drill to Overdue Invoice Detail Take Action Target collection efforts to reduce overdue balances

17. Analytic Workflows – Financial Analytics Business Objectives / Issues Maximize Cash Flow Is DSO on target? Is Overdue Balances trending up? Gain Insights How long is the underlying Overdue Balance pending? Drill to Detail Who are the Customers? Drill to Overdue Invoice Detail Take Action Target collection efforts to reduce overdue balances

18. Backend Financial AnalyticsComprehensive View of Financial Performance General Ledger Incorporates detail-level general ledger transactions and cash flow analysis across locations, customers, products, sales territories, distribution channels, and business units. Payables AnalyticsProvides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. When combined with Supply Chain Analytics, it allows full procurement analysis from Requisition to Check. Profitability Analytics Identifies the customers and transactions that are providing maximum profits by product, location, department, and geographic detail. When combined with Marketing Analytics, it enables analysis of Campaign ROI and assists in customer segmentation.

19. Backend HR AnalyticsDriving Return on Human Capital Investment Compensation Increase performance of organization by understanding and leveraging pay and performance relationship. Decrease costly compensation errors. HR Performance Objectively assess HR organization’s performance on periodic basis. Drive HR to more strategic role in organization by showing return on HR investment. Operations Reduce cost and time associated with compliance reporting. Increase employee satisfaction and retention by managing overall profile and background of workforce. Drive lower HR costs through reduced recruiting and terminations

20. Summary • Build a robust, end-to-end, integrated BI Platform • Dashboard • Adhoc query • OLAP • Data Mining • Data Integration • Business process integration • Knowledge is your key to success • Customer value knowledge is only half the battle • Customer affinity is not equal to customer profitability • Successful implementation depends on … • Good Technology, Motivated People, Good Strategy

21. Enabling Banking Customers

23. Raymond Au raymond.au@oracle.com +65 8112 7093 Thank You