© 2005 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice
HP Financial Services
Competing Through 3
Value Disciplines – A
Customer’s Perspective
Eng Chuan PUAY
Director of Enterprise Sales
Southeast Asia Region
May 2006
HP Confidential
Copyright © 2003 HP corporate presentation. All rights reserved. 2
HP in Asia Pacific & J apan
Korea
1984
J apan
1963
China
1985
Taiwan
1970
Hong Kong
1979
New Zealand
1967
Australia
1967
APJ
HQ
Singapore, 1970
India

Philippines 1995
•
Thailand 1989
•
Vietnam 1996
•
Malaysia 1972
•
Indonesia 1996
3
KOREA
SOUTH
PACIFIC
CHINA
SOUTH
EAST
ASIA
INDIA
HP Key Customers:
INDIA
Bank Of India –
Comprehens ive Outs ourc ing
SBI – Infras truc ture &
Outs o urcing
Bank Of Baro da – IT
trans formatio n
UCO Bank – Core banking
replac ement
KOREA
Korea Deve lopment Bank -

More sophisticated products requires newer systems

Serving new market requires better infrastructure
2. Extending new capabilities

Difficulty to keep up with new market or products

Shorter time-to-market due to greater competition

Limited system functionalities and resources to support business needs
3. Back office consolidation

Back office hubs in Asia to take advantage of lower cost of labour

Better technology infrastructure in Asia conducive for global consolidation
5
Global Trends in Banking Services
5. Merger and acquisition

Industry consolidation for economies of scale

Market liberalization weeds out weaker players

Global economy through WTO
6. Outsourcing of non-core business

Global banks are outsourcing back office operation to Asia

Asia banks are outsourcing non core activities


presentment and payment
Value discipline
Cost leadership
•
Teller productivity
•
Backoffice hubbing
•
Technology innovation
Copyright © 2003 HP corporate presentation. All rights reserved. 7
Winning on Customer Intimacy
1. More granular customer segments
•
Citibank bank – Citigold banking
•
Standard Chartered Bank – Priority banking
•
Lady credit card, platinium credit cards
3. Better infrastructure
•
Internet banking/wireless banking
•
Improved call centre
•
Back office consolidation
2. Cosy modern branch layout
•
Coffee in a branch – Starbuck
•
Branch Investment officer

Copyright © 2003 HP corporate presentation. All rights reserved. 9
Winning on Cost Leadership
1. Consolidation of call centres
•
Regional and global call centre
•
Outsourcing of call centre services
•
Call centre technology upgrade
2. Better infrastructure
•
Measurement on cost to serve
•
Branch network rationalization
•
IT selective outsourcing
3. Consolidation of back office operation
•
Relocating back office to Asian countries
•
Tax incentives from local government
IT Implication : Embark on IP call centres, global network re-design, business
process automation, IT outsourcing etc
Copyright © 2003 HP corporate presentation. All rights reserved. 10
Are Asian Banks rising to the
challenge?
•
What is your core competency?
•
Where is your market segment?

class products and services 24x7
•
Provide customers with a One
View, anytime, anywhere access
capability
•
Compliance with regulatory
requirements
•
Unification of disparate systems
•
Increase process and employee
productivity
•
Robust, scalable network and
infrastructure
Business needs Business benefits
HP solution
The HP difference
•
Comprehensive solutions offering including next generation Core Banking solutions and
Openbank to drive fundamental change within the bank for competitive advantage
•
Domain experience and track record of expertise in integrating and managing
large projects for timely and cost effective deployment of applications
•
Strong alliance with leading ISVs on a global and regional basis
Technology enabled business
transformation through:
•

•
Improved productivity
•
Competitive edge through
world-class customer service
•
360 degree view of customer
•
Single sign-on capability for
employees and customers
Fourth large s t s tate -owne d bank, 2800 branche s nationwide, pre s e nce in 21 countries and more
than 30 m illion cus tom e rs
Customer Intimacy
Cost Leadership
Product Innovation
12
Bank of Shanghai
•
Business agility and
operational efficiency in
core banking
•
Unified view of customers
•
Expanded delivery
channels to enable
introduction of new
products
•
Increased profitability

New delivery channels
•
Product quality
•
Product lifecycle mgmt.
•
Focused customer service
•
Increased profitability of
products and customers
•
Comprehensive,integrated
products and services
delivered quickly and easily
One of the fas te s t growing com m ercial bank with foreign stake s including HS BC, 200 branche s
nationwide serving about 18 million customers
Customer Intimacy
Cost Leadership
Product Innovation
13
Foreign Banks’ Investment in China’s growing retail
banking market
Shorten the learning curve through
global partnering
Product Innovation
14
Profile o f the Winner
In our view the winner needs to
excel in at least one of the 3 value
disciplines but be on par with the