4People-Ready Business PEOPLE DRIVE BUSINESS SUCCESSAmplify their impact and you improve business results.A business context that delivers important insightDevelop and strengthen profitable customer relationships.Create innovative products and services.Improve operations and reduce costs.Build high- value connections with partners and suppliers.A strategy that responds to key business outcomesWidely used and supported by the world’s largest community of partners, developers, and support professionals.Familiar and easy to use, maximizing employee impact and minimizing complexity and costInnovative software that continually evolves to meet your needsEasier to integrate and connect with what you have today and tomorrowWith support points for the Microsoft Platform and Software
7Connected by Design XML Web Services Networking UNIX Systems Data ManagementXMLIntegrationIdentityWeb ServicesIndustry StandardsApplications“Building software that is interoperable by design”Bill GatesExecutiveFeb 3, 2005,Languages“72% of IT decision makers ranked Microsoft No. 1 in interoperability“Legacy Hosts
8Committed to Open Standards Financial Services Industry Standards BodiesComputing Industry Standards BodiesActively participating with standards bodies:
9Broadest Partner Ecosystem 2000+ systems and devices2500+ Windows server apps25,000 Certified Partners
10.Net Momentum: The Trend is Your Friend 60+%Flat
11Gartner Magic Quadrants ChallengersLeadersVisionariesNiche PlayersAbility to executeCompleteness of visionEnterprise Application Server (May 2004)Application Integration Suites (May 2004)Host Integration Servers (Dec 2003) Relies on Microsoft and ClientSoft productsWeb Services (September 2004)Meta-Directory (September 2003)Directory Server (July 2003)Enterprise Application Integration (May 2003)Sell-side Commerce Server (October 2002)Microsoft in the Leaders QuadrantA magic quadrant is Gartner’s “snapshot” of a market segment. It identifies vendors active in the segment area and characterizes their roles in the industry. Vendors are positioned in one of four quadrants: Leaders, Visionaries, Challengers or Niche Players.
12What is Microsoft’s Proposition? Best TCOFastest time-to-valueBest cross-platform integration
14Microsoft in Financial Services Vertical industry focus – Banking, Insurance, Capital Markets/SecuritiesGlobal executionFocus on Industry Priority Solutions Scenarios – areas of high value for Microsoft, our partners, and our customersPartner with leading ISVs, SIs, OEMs who add their domain expertise to our platformWork with partners on engineered, repeatable solutions
15Why FSI? It’s Where the Money Is… 20,00040,00060,00080,000100,000120,000140,000BankingConsumerAutomotive and IndustrialCapital Markets/SecuritiesWirelineHigh Tech and ElectronicsDistribution: Consumer GoodsInsuranceDefenseWorldwide IT Spend USD $mTransportationTotal FSI OpportunitySource: IDC
16Total IT market for Financial Services: $202 B (IDC) FS Industry Opportunity is HugeFinancial Services Industry Software Spend ($B) (1)The Great NewsSpending is Up in all three VerticalsInvestment growth in customer-facing new projectsHuge migration opportunities: UNIX, Mainframe, Notes, Sybase…..People-Ready is a perfect fit for Financial ServicesCAGR 03-08CAGR: 6.3%45.142.339.9Capital Markets7.4%37.535.233.2Insurance4.7%Banking6.4%Total IT market for Financial Services: $202 B (IDC)Source: 1) Worldwide IT Spending by Vertical Market, , IDC, 20042) Enterprise Technology Trends (ETT) research program across 18 verticals and three company size segments, 20033) “Market Trends: Financial Services IT Spending, Worldwide, 2004,” Gartner 2004
17Microsoft Today in Financial Services Where can you find solutions implemented on the Microsoft Platform in FSI?Market Data Dissemination System (MDDS). 5K transactions/second, 100K queries / day, running on SQL Server 2005Chooses .NET/Windows over J2EE, Integrates solution.Increased sales by providing the most current value-added price and trading data available, processing 500 messages a second with average latency of less than 300 milliseconds.End-to-end STP Solution for securities processing for a value chain of 80 Swiss Banks. Built with Visual Studio. Great example of “rewiring the financial value chain” through innovation.Built an automated trading system for European equities traders using the Microsoft .NET Framework and based it on the FIX.NET solution. The system was developed and delivered into production in under four months.Margin Trading, Counterparty Risk, Mergers & Acquisition, Pitch Book, Proposal Generation, Corporate Finance, Equity Research, Proposal Generation, XBRL, Work Flow Tools, Trade Messaging, Algorithmic Trading, Business Process Automation, Trade Exception Processing, Pre-Trade Analysis, Market Data, Portfolio Management, Order Management, Clearing & Settlement, SWIFT Connectivity, Messaging Protocols (Fix, Swift, Twist Etc) Asset Allocation, Sales & Distribution, Performance Attribution, Portfolio Management, Separate Managed Accounts (SMA), Security Master, Reference Data Management, Corporate Actions, and Reconciliation.Implemented a Microsoft Windows-based grid-analytics architecture for trading room real time risk management in mark-to-market calculations. Performance, security, reliability and integration with other IT assets were selection factors.Next generation Trade and Positioning System (TAPS) Core Systems replacement for fixed income trading and securities processing based on .NET. 30% performance increase, capacity to process 1,000 trades / second
18Microsoft Today in Financial Services Where can you find the Windows Platform and .NET in the Insurance Industry?Enabling accessAllstate.com and the Customer Care Center to work together while maintaining them as autonomous applications linked by Web services advances Allstate toward its strategic goal of a service-oriented architecture.Leveraging .NET connection software, Chubb added a new billing feature to its broker site and developed a new Web application to improve the way it does business with third-party appraisal companies.Litigation Management, Claims Processing, Fraud Analysis, Adjusters & Appraisers Mobility Tools, Loss Adjustment, Workflow and Process Management, Agency Management, Multi-Channel Distribution, Advisor Desktop / Portal, Company Services for Advisors, Self-Service, Knowledge Management, Workflow, Compensation, Documentation, Collection & Billing, Underwriting Systems, Policy Administration, Regulatory Compliance Insurance Knowledge Management, Policy Administration, Regulatory Compliance, Risk Engineering, Risk Management Advisor Tools & Services, Actuarial / Predictive Analysis, Rating and Quoting, Insurance Product Development, Geographical Systems, Insurance Exchanging, Automatic/Treaty, and Facultative Placement.Balboa Insurance Group selected Windows Platform, .NET and Biztalk Server to manage over 100,000 documents daily and track information on over 14 million loans.Automated, Web-based solution gives Farmers the ability to remotely monitor repair facilities, eliminate manual handoffs, reduce cycle time, and make the claims settlement process more satisfactory for customers..Upgraded an integrated title and escrow system that unified disparate systems into a centralized database hosted on a 64-bit Platform. The centrally hosted SQL Server database, with more than 1 terabyte of information, supports 12,000 users in 1,300 offices.Created a smart client application that brings together an inclusive view of products, reinsurance treaties, and rate tables. The in-house developers used Visual Studio 2005 and Microsoft .NET Framework 2.0 to speed the development and implementation.
205 Microsoft Industry Priority Solutions 1. Channel Renewal2. Advisor Platforms3. Risk & Compliance4. Insurance Value Chain5. Payments
215 Microsoft Industry Priority Solutions 1. Channel Renewal2. Advisor Platforms3. Risk & Compliance4. Insurance Value Chain5. Payments
22Industry Priority Solutions Channel RenewalRisk Management & ComplianceInsurance Value ChainPaymentsAdvisor PlatformsCoreBankingAddresses organization’s complex web of compliance, privacy, regulatory needs, credit management, fraud controls and operational riskA strategic approach to renewing core systems in a phased manner. Enabling reduced risk, leverage component based architecture and best of breed partnersEnables development of re-usable business servicesacross more than onechannel to provide consistent customer experienceConsolidate payment processing, financial messaging and archiving operationsEnables all participants in the insurance process to connect with each other including end customerStreamline end-to-end process from client prospecting thru ongoing relationship managementSolution AreasBranch SellerBranch TellerATMsInternetIVRCall CentersCustomer KnowledgeMobileSolution AreasAudit & ControlsDocument Management and Records RetentionCorporate GovernancePrivacy & SecurityReporting / Business IntelligenceCIP / KYCCertificationDocumentationSolution AreasChannel SalesUnderwritingProduct Development & ConfigurationCore Policy SystemsClaims ProcessingRe-InsuranceSolution AreasATM Payment SwitchCorporate to BankCheck ProcessingSWIFT ConnectivityTreasury / Cash ManagementEBPPMobile paymentsHigh and Low Value paymentsSecurity SettlementFraud ManagementSolution AreasAdvisor Desktop / PortalCompany & Industry Provided ServicesAdvisory ManagementSolution AreasClient Data FileDeposit ProductsLending ProductsCorporate and Wholesale bankingPricingStatement ProductionCredit Decisioning
24Old channels don’t die…they just need to work better together 13.5220.127.116.113.812.79.34.014.013.010.25.614.213.311.37.314.313.612.59.1510152025303540455020012002200320042005OnlineBankingCallCenterBranchATMSource: TowerGroupUS Annual Transaction Volume (billions)
25Microsoft Priority Solution: Channel Renewal What is Branch RenewalTechnology OpportunityNew Business ModelsRecognising the role of the branchFrom service to salesFrom cashiering to adviceRisk mitigationValueRicher customer experienceSales effectivenessOperational efficiencyRisk MitigationService EfficiencyExamplesWachovia: 2600 Retail banking centers integrating multiple back end systems for single customer view across all channels (Argo Data Systems)Bank of Montreal: 18,000 users on .NET Smart Client for Branch (.NET Framework)Standard Chartered: Unisys Transaction ManagerCitizens Bank – Getronics Global FS, 1800 branchesArgo Data SystemsCIBC: CCF PilotAccenture: Alnova front endCommonwealth Bank – CommSee intiative“Updating branch platforms will make your bank branches more efficient. However, this "blinkered" approach to branch renewal does nothing to differentiate a bank and make customers eager to do business with you” – Gartner August 2003
30Microsoft Priority Solution : Risk Management ValueReduced CostCustomer experienceBasel II capital reliefEnables early detection and management of potential exposureAssists in complianceWhat is Risk Management?Real time informationAbility to monitor, evaluate and reportCapability to systematically reduce riskComplianceData Management StrategyExamplesCaixa Catalunya - SAP Bank AnalyzerGMAC - Reduces Cost of Sarbanes-Oxley Compliance by 50 PercentShanghai Pudong – SAP Bank AnalyzerCitigroup: Risk Management DashboardNationwide Building Society UK: Data solution encompassing all product linesCBA: IT&E Monte Carlo Risk ManagementNASDAQ: tracks stock market events and issues alerts at the possibility of any abnormal market activity – 200tpsCitigroup Risk Management Dashboard
31Microsoft Priority Solution #4: Insurance Value Chain
32Microsoft Priority Solution : Insurance Value Chain What is the opportunity?Automate the processSeamless integration of dataImprove speedReduced errors and inaccuracyComplianceData Management StrategyValueReduced CostImprove the Customer experienceImproved risk profileLower loss adjustmentAssists in complianceExamplesZurich UKAIGAllstateFarmers – claims settlement 4 hoursNationwide – Tablet PC enables 15% increase in claims completed on siteChubbCNA
34Microsoft Priority Solution : Payments What are Payment Systems?Mechanisms for transmission of instructions between parties concerning intent to payMechanisms for settlement of payment instructionsValueEnables the customer to utilize their money at the time and place of their choosingPermits ubiquitous exchange of value using convenient instrumentsSource of revenue to acquirers and originatorsExamplesCheckFree – next gen platform 24% less TCOSumitomo Mitsui – ATM Gateway, 6000 tpm, %ANZ – Payplus – interbank clearingPan European ACH: Step 2 project requires integration of 80 banksBanco Central: Brazil Payment Backbone for RTGS with 120 banksNordea: SwiftNET implementationCentral Bank of Costa Rica – Inter-bank payments – 1,700 tpsBanesto – SwitftnetUnisys – Payments Utility NetherlandsOpen/N2 Electronic Funds Transfer Solution from S2
36Partners Are Joining Our Community Fiserv CBS is focused on joint sales efforts in US, LATAM, EMEA and APAC to position Aperio, a .NET solution on Windows/SQLThe first fully integrated suite of products on .NET for Insurance Commercial Intellisys (CI), WINS, Intellibank and Claims; over 100 existing customersSungard is planning to make its Common Services Architecture (CSA) built on .NET available to customers in a hosted environmentamarta.ht
37The Partner Community How we help our partners Resources:World wide and regional industry vertical teams offer:Business development resources to help partners access technical, sales and marketing and industry programsTechnical resources to provide technical and architectural guidance for Microsoft products and technologies
38The Partner Community How we help our partners Joint Marketing Activities:Leverage Microsoft market presence:Access to industry marketing programs and initiativesAccess to product marketing programs and initiativesAccess to Industry Management teamAlignment with Microsoft world wide industry solution programs e.g. IPSS and solution areasCross vertical marketing opportunities
39The Partner Community How we help our partners Joint Sales Activities:Access to centralized industry team to help develop consistent industry sales strategy and messaging (IPSS)Access to Microsoft global sales account team and opportunities brokered through IPAM, SSPI, IBDM communitiesJoint sales planning and account identification
40The Partner Community How our partners can help us Develop joint technical and business planDevelop joint value propositionMicrosoft technology stack and revenueAlign solutions with industry initiatives (IPSS)Develop joint solution scenariosProvide insight into regional sales capabilitiesDevelop POC for joint customersCustomer References and Case Studies
41Calls to actionAlign your solutions or services to sales priorities (and industry solution areas), and update PAM. Enterprise Resource Guide: https://partner.microsoft.com/ergAlign your marketing and account planning with people-ready business. Tools available at: https://partner.microsoft.com/global/salesmarketing/rolebasedsellingProfile your software or services offerings using the Partner Solution Profiler at: https://partner.microsoft.com/vertical Develop materials that will make your inclusion easier, and then work through PAM to integrate with relevant industry teams (joint value prop, PSP, battlecard, collateral, marketecture)
46Rude Q&AQ: Microsoft is so spread out, how do I find out whom to talk to?A: Ask me. Or ask your Partner Account Manager.
47Rude Q&AQ: OK, so we’re engaged. Now how do we get Microsoft’s endorsement?A: Make your case. State clearly what parts of your solution run on our platform, and which products are pulled through and how much when we succeed together.A: Indicate why you’re a strategic ally. Is your solution on SQL 2005? .NET? What about Linux? Best answer is: 100% Microsoft.A: Don’t flip. What happened the last time the customer asked “do you also run on Oracle?”
48Rude Q&AQ: How come the Microsoft guy won’t return my messages?