The Future of Productivity in the Financial Services Industrydownload.microsoft.com/download/C/0/4/C04A5430-7E15-4B10-98B9... · The Future of Productivity in ... This notion is a

The Future of Productivity in Financial Services: Office 365 2

Productivity Matters

The financial services industry is at a major inflection point. Financial institutions are seeking to address

margin pressures while driving technology innovation to meet new customer expectations, improve

transparency, and stay competitive against non-traditional industry entrants. To win in this marketplace

you first need to win in the workplace - and employee productivity is top of mind. The question is:

WHAT IF you could reduce operating costs while fundamentally improving the productivity of your

people?

The Microsoft Vision

We see the cloud as the future of productivity, providing communication and collaboration tools

across devices and locations, to empower your people in new and profound ways.

Microsoft Office 365 delivers the power of cloud productivity to financial institutions of all sizes,

helping to save time and money, to free up valued resources in a way that works best for your

business. Office 365 combines the familiar Office desktop suite with cloud-based versions of next-

generation Microsoft communication and collaboration services - all backed by the robust security and

guaranteed reliability you expect from a world-class service provider.

This paper is part of a series that illustrates Microsoft’s commitment to the financial services industry

through advances in our product portfolio designed to drive better business outcomes for banks,

capital markets, and insurers across the globe.

Introduction The Big Eye Openers: Office 365 Inside Office 365 Regulation, Security and Compliance Next Step

The Future of Productivity in Financial Services: Office 365

The Big Eye Openers: Office 365


3


Productivity and Cost Optimization

The industry continues in its efforts to improve efficiency ratios as financial institutions embark on

transformational projects to streamline cost structure while improving the customer experience.

Your productivity platform is the catalyst for future success, whether that represents supporting the

decision process, automating processes, better managing data, or implementing new ways to monetize

customer interactions. Now, what if you could radically reduce the costs of managing and maintaining

productivity while getting the very best and latest collaboration capabilities? Moving to a cloud-based

productivity platform fundamentally improves the cost structure for financial institutions from a

software licensing/usage perspective, as well as costs associated with building, managing, and

maintaining the necessary infrastructure.

The cloud is a compelling alternative to upgrading existing on-premises productivity and collaboration

systems. This notion is a game changer for the financial services industry, and Office 365 represents a

tremendous opportunity to dramatically reduce costs while increasing productivity and cost-effectively

making Office functionality more broadly available.

Office 365 ensures you always have access to the latest technology without the need for up-front

infrastructure costs. With an affordable and predictable monthly fee, you have the latest version of the

familiar Office desktop applications that connect seamlessly with best-in-class communication and

collaboration services.

In a recent economic justification report, Microsoft estimates the total cost saving for moving to Office

365 is between $511 and $839 per user. Indeed, we believe Office 365 mitigates most of the cost-

related challenges that financial institutions face in terms of compatibility issues, change management,

software distribution, and updates. These estimated cost savings with Office 365 are broken down as

follows:


“Office 365 improves productivity,

provides IT peace of mind, and

reduces total cost of ownership”

Forrester Consulting, “The Total Economic Impact of

Microsoft Office 365—Midsize Customers.”


Devices Cloud Social Control

Reduce Hardware Costs with

Support of Bring Your Own Device

Initiatives

Reduce License Costs with Per

User Licensing

Save Time on Key Business

Processes (Improve Productivity)

Reduce eDiscovery and

Compliance Costs

$99–$198 $40–$80 $75–$150 $14–$27

Improve Mobile Productivity Reduce Development Costs Reduce Travel Costs Avoid Deployment Costs

$60–$120 $5–$10 $138–$162 $50–$55

Eliminate Video Conferencing

Costs

$30–$37

Total Per User Per Year Savings of $511–$839



Forrester Consulting’s “The Total Economic Impact of Microsoft Office 365—Midsize Customers” report

stated that Office 365 delivered a return on investment (ROI) of 321 percent with a payback period of

two months for the composite midsize organization after which they modeled the study. For financial

institutions, this represents a substantial way to drive down costs and reallocate those funds to support

revenue-generating opportunities.

Customer Acquisition and Retention

As financial institutions drive significant investments into new and existing channels - to improve sales

productivity, build customer loyalty and retention, and optimize efficiency - the need to empower

front-line staff is more critical than ever. Front-line staff need the tools and capabilities to radically

improve the customer experience and turn every interaction into a sales opportunity, whether

interacting with mobile customers or in a bank branch or through independent agents on the road.

Imagine giving your branch staff, advisors, and agents real-time, actionable customer insight and

collaboration tools to drive higher product up-sell and cross-sell rates. Imagine branch staff being able

to connect in real time with product experts, easily access the information and tools to complete

complex product sales, and visually illustrate dynamic investment proposals to customers either in

person or via remote video conferencing. Now imagine an independent agent being capable of

delivering a customized proposal on the fly while on the road. Imagine if that agent could collaborate

securely in real time through video conferencing and content editing with company representatives to

ensure the proposal is the best solution for the customer. Indeed, the probability of accelerating time

to decision and developing deeper customer relationships would be much greater.

Financial institutions need to enable connection and discovery where workers can easily get their work

done, find new resources, and create new relationships with experts and colleagues. This needs to work

seamlessly across devices, locations, and in a format that is familiar and intuitive.



Simplifying eDiscovery to access the critical content you need - when you need it: Providing front-line

staff with the tools to quickly and easily access content by project, legal matter, or business context to

better serve customers and optimize sales scenarios is key. Indeed, your people need laser-focused

search capabilities to get the exact content they need. With advanced search technology, Office 365

unifies the eDiscovery process by letting your people retrieve content stored across Microsoft

Exchange Server, SharePoint, Lync, and even file shares. This enables them to find the content they

need in one place - with a single experience for searching and preserving email, documents, site

mailboxes, and more - and places no burden on your people for preserving and archiving content.

Connecting front-line staff to optimize sales and service: With Office 365, front-line staff can connect

easily with product advisory or other headquarters based teams through high-definition video streams

to collaborate on sales opportunities. A video gallery scales to provide the best experience for a diverse

set of scenarios including point-to-point video calls, small group collaborative sessions, or

presentation-style sessions for larger groups. To achieve speedy resolution to customer issues, while

the customer is present, ‘people search’ capabilities help front-line staff find colleagues with specific

skills and expertise, and chat via one-to-one or group instant messaging conversations to deal with the

issue on the spot.

Supporting remote advisors: When a customer requires personal financial advice from their advisor, or

product experts are required to present more complex products and services, Office 365 video

conferencing enables remote advisors to connect with customers while they visit their branch, or

potentially from their home or office, providing a scalable model for advisors to reach customers

across multiple locations. Office 365 enables your advisors to work from anywhere with access to their

latest documents, files, and personal settings, using the familiar Office applications optimized across

your devices, from PCs to smartphones and tablets.



Mobility and the Social Enterprise:

Today the ability to provide front-line staff with the mobility to engage customers on a personal level is

paramount. Imagine providing branch staff with the ability to receive a VIP alert on their tablet,

seamlessly greet the customer, and quickly fulfill an account opening process via a touch-enabled

device. Imagine front-line staff having the ability to greet customers in long queues, deal with their

queries there and then with productivity tools on a tablet, or identify them so that when they are dealt

with by another employee their requests are already logged in the system.

At the same time, we are witnessing the rise of the social enterprise. Imagine an insurance company,

with a distributed workforce of full-time employees and independent agents, providing secure social

collaboration across departments and geographies. Imagine how that company could accelerate

innovation by nurturing feedback and ideation, test product concepts, surface expertise, highlight best

practices, and share corporate and industry knowledge. Ultimately the social enterprise enables a

widely distributed company, in a highly regulated industry such as financial services, to function as a

more agile, innovative organization driven by interpersonal connections and interactions.

Deeper customer connections through new mobile scenarios: The Office 365 interface has been

reimagined to make it more engaging with a clean, fast and fluid user experience, optimized to work

with touch, pen, mouse, and keyboard. Office 365 works seamlessly across all your devices, but on

Windows 8 it really shines with an immersive, touch-optimized experience to deliver an engaging,

connected, and informed employee and customer experience. Office 365, coupled with new device

form factors, empowers your front-line staff by freeing them from their desks to work from anywhere -

making it easier to access agent portals while on the road or allowing them to visually illustrate

investment scenarios with touch-enabled devices.



Driving innovation with social collaboration: Unquestionably, enabling social collaboration among your

people, and providing the capability for front-line staff to provide feedback to product and marketing

teams on campaigns and new sales opportunities, is key to improving product and service offerings

and streamlining how you go to market. With Office 365 you can benefit from social networking

capabilities, enabling your people to stay connected with colleagues, speak their mind, share ideas, and

get answers in real time. Your people can follow co-workers, documents, and sites that are most

important to them to speed how they go about sharing customer knowledge and insight.

Business Insight and Compliance

With the explosive growth of internal and external compliance requirements, data privacy, security, and

regulatory compliance are more critical than ever. The ability to examine the entire surface area of

customer retention and acquisition strategy for potential security and compliance risk is essential.

Neither the IT department nor the legal and compliance departments can keep track of all the

information that is exchanged in the course of business. Financial institutions need the tools that

enable self-service and automated compliance wherever possible.

Protect customer data and information assets: Because financial data needs to be secured, particularly

when moving in and out of your systems, Office 365 has built-in controls to give you the flexibility to

manage the passage of sensitive information. Through accurate, automatic, and centrally managed

data loss prevention capabilities, Office 365 makes it easier to monitor and protect your company’s

sensitive and confidential information. For example, policy tips warn your people about unintended

policy violations before they send confidential information in email. By scanning email and attachments

against centrally managed policies, it warns you about sensitive content such as credit card numbers or

social security numbers. You choose whether to alert and log or block. In this way you keep your

people productive without compromising security.



Embed compliance into familiar tools: Office 365 delivers enhanced, integrated compliance

functionality, including archiving and eDiscovery, to help reduce the costs of regulatory compliance.

With centrally managed or user assigned policies you can retain data at the folder, conversation, or

individual message level, eliminating the need to buy and manage a separate archiving solution.

Analyze data faster to mitigate risk: Office 365 supports your people in unleashing insights from your

data. Coupled with Microsoft SQL Server, Office 365 provides a highly interactive, browser-based data

exploration, visualization and presentation experience for users of all levels - from executives to

information workers. This allows your people to create a report in just seconds, transform the ‘shape’ of

data with a single click, and add powerful timed animation sequences to quickly identify trends or

anomalies. However, self-service business intelligence needs to go beyond individual insight. It should

empower your people to work together to share insights and develop them collectively. Office 365

empowers anyone to visually explore data, easily create interactive visualizations, and effortlessly

present and share reports - all within the familiarity of Microsoft Excel and SharePoint.



Inside Office 365


11


The Future of Financial Services Productivity

Microsoft above all wants to provide the most flexible productivity solution to the financial services

industry. We see the cloud as the future of productivity, providing communication and collaboration

tools across devices and locations. Office 365 gives financial institutions everything they need to

optimize cost and improve operational efficiency, manage risk and insights, support customer

acquisition and retention, and deliver the very best experience across devices. In this section we will

take a closer look at these capabilities and how your organization can benefit.

Access Anywhere

Office 365 enables your people to work from anywhere with access to their documents, files, and

personal settings, using the familiar Office applications optimized across your devices - from PCs to

smartphones to tablets. When away from their computer, they can stream the full-featured version of

an Office application on any Internet-connected PC with Office on Demand.

Key features include:

• New Microsoft OneNote (planner/note taking) and Lync (online meetings/web conferencing) applications

designed specifically for the Windows 8 experience that benefit from its ‘touch first’ capabilities, end-to-

end security, and strong power management features.

• Office Mobile available on Windows Phone, iOS, Symbian, and Android phones.

• High-fidelity document rendering across platforms.

• Office Web Apps support for Internet Explorer, Safari, Firefox, and Chrome.

• Sign-in to Office and confidently access personal documents and settings.

• Ability to sync files to devices using SkyDrive Pro for offline access and automatic resyncing and backup.

• Sign-in to Office using a browser to quickly stream an Office application to a Windows 7 or Windows 8

PC for full-experience viewing and editing with Office on Demand.



Best Productivity Experience

Office 365 allows your people to stay connected. They can host and participate in more effective online

meetings with multiparty high-definition video conferencing, screen sharing, and real-time note taking.

They can create a mailbox within a site to access team communications and documents directly from

Outlook, and share documents from SkyDrive Pro (professional library) or SharePoint (collaboration

and content management portal) team sites with controlled access.


• Site mailboxes: An Exchange mailbox that is associated with a SharePoint site, enabling users to access

documents and email related to group projects through either Outlook or SharePoint.

• HD video conferencing: Lync uses open standards including H.264 SVC to enable HD video conferencing

across a range of devices. The Lync video gallery allows Lync meeting attendees to simultaneously view

up to five different participants, identify the active speaker, and associate names with faces.

• Lync Video Gallery: Continuous view of multiple video streams in conference displayed in a gallery

format. The gallery shows the most relevant people in the meeting at all times by bringing the dominant

speaker ‘in focus’ and by taking the oldest dominant speaker out of focus.

• OneNote Share allows users to create and share OneNote digital meeting notes within a Lync meeting,

reducing errors caused by later transcription and simplifying communication and follow-up.

• Ability to share documents from SkyDrive Pro or SharePoint team sites with controlled access.

• Newsfeed provides information, notifications, and updates based on people, documents, and tags

you are following.

• PowerView enables rich visualizations for interactive data exploration, presentation, and reporting in

SharePoint and Excel.



IT Control and Efficiency

Office 365 provides a powerful and easy-to-use web-based administration console to add or delete

users, add security for mobile devices, and set document sharing policies. Enjoy business continuity

with the latest spam and malware protection, geo-redundant data centers, and a 99.9 percent

financially backed uptime service level agreement.


• Simplified management with a single, web-based admin center.

• Easily set and managed mobile access and policies to protect company data.

• Enterprise-class spam and malware protection.

• Financially-backed 99.9 percent uptime service level agreement

• Continuous data backup, disaster recovery, globally redundant data centers.

• Remote wipe, which gives a user or IT administrator the ability to remove all organizational data on a

mobile device (Exchange).

• Office Side-by-Side, a Click-to-Run feature that enables two versions of Office to exist on the same

computer to provide a seamless transition for users in supported scenarios.

• Click-to-Run, a streaming technology built on Microsoft virtualization that quickly installs Office over the

Internet.


“ …latest spam and malware

protection, geo-redundant data

centers, and a 99.9 percent

financially backed uptime service

level agreement.”


Regulation, Security and Compliance


15


As your service provider, Microsoft employs state-of–the-art practices around privacy and security

because we care deeply about the valuable data you store in our service. To earn this trust, we operate

Office 365 based on four important principles.

Our first principle is Your Privacy matters. We consider protecting the privacy of your data as one of

the most important responsibilities you have bestowed on us.

The second principle is Be Transparent. We have taken an industry leadership role in providing clear

details on how we handle your data.

The third principle is Independent Verification. Hearing us talk about Office 365 security and privacy is

a good thing but what you really want to know is “How do independent auditors rate our practices?”

and “What contractual terms are we willing to sign up for?”

Last, but certainly not least, is our Relentless Approach to Security. We are continuously improving how

best to secure our customer data. Let us walk you through each of these principles.

Privacy

Microsoft recognizes that privacy is a critical element of a highly secure computing experience. Our

financial services customers have high expectations about how we collect, use, and store their data. We

commit significant resources to enhancing privacy protection and, as a result, privacy has been woven

into the culture at Microsoft as an automatic priority in every area of the company.

At a high level we are clear about three practices we follow regarding our Office 365 service today: (1)

We don’t build advertising products out of customer data; (2) customer data belongs to the customer

and they can export their data anytime; and (3) we offer a choice to keep Office 365 data separate from

consumer services

Your Privacy

Transparency

Independent Verification

Relentless Approach to

Security



Microsoft Online Services Customer Data Usage Data Account and

Address Book Data

Customer Data (excluding

Core Customer data)

Core

Customer Data

Operating and Troubleshooting the Service Yes Yes Yes Yes

Security, Spam and Malware Prevention Yes Yes Yes Yes

Improving the Purchased Service, Analytics Yes Yes Yes No

Personalization, User Profile, Promotions No Yes No No

Communications (Tips, Advice, Surveys, Promotions) No No/Yes No No

Voluntary Disclosure to Law Enforcement No No No No

Advertising No No No No

Operations Response Team (ltd. to key personnel only) Yes Yes, as needed Yes, as needed Yes, by exception

Support Organization Yes, only as required in response to

support inquiry

Yes, only as required in response to

support inquiry.

Yes, only as required in response to

support inquiry. No

Engineering Yes No Direct Access. May be transferred during

trouble-shooting.

No Direct Access. May be transferred during

trouble-shooting. No

Partners With customer permission. See partner

for more information.

With customer permission. See partner






Others in Microsoft No No (Yes for Office 365 for small business

customers for marketing purposes). No No

How Privacy of Data is Protected



Transparency

In addition to the commitment we are making in our agreements, we believe transparency is more

than just terms and conditions. It is providing you with the details about how we operate the service.

This means letting you know where your data is located, who has access to it, and what we do with it.

Office 365 is deployed in a regional pair of data centers in Europe servicing the Europe, Middle East,

and Africa market; in the United States servicing North and South American countries, and in

Singapore/Hong Kong for the Asia-Pacific markets. The location is based on the ship-to location you

specify when you sign up for the service. As an administrator of the service, you can sign up for our

compliance notification. As we continue to innovate, if these data maps and flows change, you will be

notified. Another level of detail we provide is who and what kind of data is accessed and under which

condition.

Independently Verified

Microsoft uses a framework-based approach to managing compliance-related controls, which enables

our staff to plan, deliver, operate, and manage a customer’s compliance requirements. Microsoft

Online Services undergoes multiple third-party compliance audits annually.

We are proud to say that we are the first in our space to have been certified with ISO27001, an

internationally recognized standard in security practices.

We also have the most complete approach to European data protection, security laws, and obligations.

While most vendors today rely only on EU Safe Harbor clauses, we go above and beyond and offer the

EU Model Clauses as well as a long-form data processing agreement that includes additional EU

Member State data protection legislation. For our non-EU customers, we offer the stand-alone Data

Processing Agreement for our enterprise agreement customers and will be expanding to all customers

shortly.



Certification Audience Office 365

ISO 27001 All customers Available

EU Safe Harbor EU customers Available

SSAE 16 (Statement on standards for Attestation Engagement)

SOC 1 (Type I & Type II) compliance Primarily US customers Available

FISMA US Government Available

HIPAA/BAA All Customers Available

EU Model Clauses EU Customers Available

Data Processing Agreement All Customers Available

FERPA EDU Customers Available

Compliance with Key Standards



Security

The Microsoft Security Development Lifecycle (SDL) is the industry-leading approach to developing

secure software. First introduced in 2004, the SDL is the industry’s most trusted software development

process that focuses on building secure software from the ground up. The SDL infuses security into

each phase of development to protect customers by creating software that is less vulnerable and more

resilient to malicious attacks. The SDL prescribes security activities in each stage of the development

process. The goal is two-fold: 1) eliminate as many vulnerabilities as practical and 2) reduce the severity

of vulnerabilities that slip through. This is why threat modeling, which happens at the design phase, is

considered so important to the effectiveness of the SDL.

Defense in depth is a best practice across the industry, and it’s one that we take seriously. When we do

deploy the software into data centers we look at the controls that we have to apply and at every single

part of the stack, be it the physical controls to prevent people getting access to equipment, to

encrypting data over the network, to locking down the hosts, to installing antivirus software.

Having a rich set of controls and defense-in-depth strategy helps ensure that, should any one area fail

for whatever reason, there are compensating controls in other areas to maintain our customer security

and privacy at all times.

Security is an ongoing effort that combines experienced and qualified personnel, software and

hardware technologies, and robust processes to design, build, deploy, operate, and support the

service.



Next Step


Explore the Productivity Potential

The best way to experience the power of Office 365 is through a

hands-on immersion. The Microsoft Customer Immersion

Experience is designed for business executives and provides a

guided, hands-on walkthrough of the power of the Microsoft

productivity portfolio, including Office 365. Contact your Microsoft

representative to schedule a Customer Immersion Experience.

21


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references, may change without notice. You bear the risk of using it.

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The Future of Productivity in the Financial Services Industrydownload.microsoft.com/download/C/0/4/C04A5430-7E15-4B10-98B9... · The Future of Productivity in ... This notion is a