Sterling Commerce an SBC Company INNOVATORS: CREATING THE DIGITAL EDGE

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Sterling Commerce an SBC CompanyINNOVATORS
CREATING THE DIGITAL EDGE

• São Paulo - April 19, 2001
• Francisco Tabuzo
• francisco_tabuzo_at_stercomm.com

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The Market

• Market Changes Quick
• Where We Are Now
• New Vision
• Where Are We Going

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Banks E.Business Challenges

• Lack of critical Customer mass
• Large Customer focus - low market penetration
• Narrow E.Business focus - payments only
• High infrastructure and operational costs
• E.Business enabling of Customers is costly and
  time consuming.

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What does the Bank need?

• Grow revenues and profits
• Establish strong relationships with small
  business Customers
• Expand on-line financial portal to include
  non-traditional bank products
• Reduce small enterprise turnover
• Expand the E.Business service offering for medium
  and large business Customers to grow revenues and
  add Bank value.

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Key Customer Initiatives

• Create a Customer
• Retain a Customer
• Improve the profitability of a Customer

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USA Relationship Banks and Small Business
Customers

• Current scope of a typical USA banks on-line
  small business offering
• 43 generic information
• 27 core banking products
• Account information including payments and
  transfers
• 17 financial portal
• Insurance, tax preparation and advice
• 13 no online service

Source Forrester Research
Interview with 40 Banks
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USA Planned Relationship Banks and Small Business
Customers

• What will be the scope of future banks small
  business online offering?
• 82 of their offering will focus on an expanded
  financial portal for non-traditional bank
  products.

Source Forrester Research
Interview with 40 Banks
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Small Businesses Online Banking Relationship

• What do small businesses want in their online
  banking relationship
• Save time and money
• Discounts and deals
• Bank that acts as an agent.
• Security and access.

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Current Small Business Companies Pains

• Missed discounts
• Late payment penalties
• Labor intensive processes
• Errors are costly
• Existing payment processes are costly, but often
  unknown
• Vendors want paid on time
• Ineffective cash management and forecasting.

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Value to Bank

• Internal costs for indirect procurement will be
  reduced
• Multiple channels for revenue growth
• Small Enterprise relationships will grow via
  value-added service offering
• Small Enterprise retenction factor will be
  corrected via sticky service offering
• Customer base will grow adding to long-term
  revenue stability.

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Large Customer Value

• Procurement Costs
• Significant cost savings due to process
  automation
• On-line account reconciliation of Purchase
  Orders, Invoices and Payments for improved cash
  forecasting
• Duplicate payment audit.
• Reduced costs of goods through aggregation and
  volume discounts.

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Large Customer Value

• Trading Partners
• Cost of implementing Trading Partners
• Minimal for E.Marketplace
• Implementation is reduced by 70 for traditiional
  EDI.
• Time for implementing Trading Partners
• Can be instantaneous for small Trading Partners
  on E.Marketplace
• For traditional EDI, reduced significantly the
  implementation time. Testing responsibilities are
  off-loaded.
• Return on Investment
• One year return in excess of 100 is not unusual
  for E.Marketplace
• Improved return on EDI investment through
  expanded Trading Partners Communities.

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Small / Medium Enterprise Customer Value

• Eliminates manual invoice processing
• Increases revenues across new geographic
  boundaries and time zones, and new sales to
  existing Clients
• Automated Reconciliation of Purchase Orders,
  Invoices and Payments, resulting in increased
  productivity and reducing costs
• Provides EDI enabling for new and/or increased
  revenues from major hubs
• Customer has trusted partners to implement low
  cost, secure, user friendly E.Business solutions.

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E.Business could guarantee

• Improve predictability of cash flows
• Leverage full use of the electronic delivery
  system
• One pipe for all transactions.
• Ensure delivery of remittance advices regardless
  of Banks capabilities
• Significantly reduce financial accounting
  administrative costs
• Build communities with relationship management.

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Small Business with Banks help
We must move in the same direction
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What Will You Do?

• Do or Do Not. There Is No Try.
• Yoda, Star Wars

http//www.starwars.com/characters/yoda/1_bg.html
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STERLING COMMERCE DO BRASIL

• Http//www.stercomm.com.br
• Tel. [phone]

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BACK-UP SLIDES
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B2C Purchase Process
INet
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Supply Chain
Mkt 11 Balance product-time-price Real Time
Services Fidelity
Supplier
Manufacturer
Dealers
Consumer
Actual
Future

• Collaborative Chain
• Flexibility to agregate partners
• Quick answers
• Non commodity

• Sequential
• Unsuitable Time
• Non collaborative

• N ?? N
• Real Time
• Shared Processes

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E.Business Evolution
CONSUMER PORTAL
B2B
B2C

• Nike.com
• PG

e-PROCUREMENT PORTAL
SUPPLIERS
MANUFACTURERS
RETAILERS
CONSUMER
Source Publications Industry Interviews BAH
Analysis
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Generating Opportunities
SUPPLIERS
RETAILERS

• More Efficient Operationback-office, sales,
  logistics, distribution
• More efficient and effective promotion actions
• Reduce stocks costs
• Dealers-Deeping the knowledge about sales channel
  
• Time to Market
• Bbetter Purchase

• More Efficient Operationalback-office
• Stocks Optimization
• Purchase Order Tracking
• Extend Business Network
• Quick access to Product Catalog, faciliting
  updates, promotions and suggestions

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Integration Challenge (EAI)
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Integration Models - B2B

• Data Exchange Documents Electronic Exchange
  (files or messages) - non interactive.
• Web Extension Documents, Informations and
  Processes Electronic Exchange using Web as an
  interactive media (Web Forms)
• Application-to-application Data Exchange
  between Applications, in Real Time - partially
  collaborative
• Shared Processes Business Processes Shared
  defined through relationship rules between
  Companies, which involves multiples transactions
  total collaborative
  (ex. RosettaNet - Partner
  Interface Processes (PIPs) define set of
  documents (XML) to be shared for all the Supply
  Chain of a specific segment

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Data Exchange
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Web Extension
Server/
-
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Application- to-Application
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Shared Processes