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The World is Changing2006

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Digital Business Networks (DBNs) create specialization in the ecosystems

January 20, 2006, Forrester Big Idea “Digital Business Networks”

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Technology Infrastructure is Strategic

New Demands of Value Creation

The Need for an Experience Network

The Need for Intelligent Products/Services

The Need for Dialogue, Access and Transparency

The Importance of Consumer Communities

The Need for Real Time Action

The Need to Cope with Heterogeneity and Complexity

The Need for Alliances

The Need for Rapid Reconfiguration of Resources

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The Basic Transformation

Suppliers The Firm Channel

SCM ERP CRM

NodalFirm

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The Systems Implications

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Business World TodayComplexity

Rapid Consensus Building

RapidReconfigurationOf Resources

ContextualKnowledge

OrganizationalInformation Silos

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The Line Managers’ Problem

Complexity:– Intensity of competition, # of models, # of suppliers, cycle

time, global logistics, plant configuration, recalls, …

Rapid Reconfiguration of Resources– costs of coordination, Interdependencies

Contextual knowledge– Where, what, when; Actionable Insights

Rapid Consensus Building– Multiple organizations, levels, Decentralized Resources

Organizational and Information Silos

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The Emerging Disconnect I

Value CreationUnder rapidly

evolving markets:Need for Innovation,

Flexibility and Speed

Line Managers

Legacy Systems,Transaction Orientation,

Quality of Data, “Efficiency” of Infrastructure

CTO/CIO

Value Creation System Efficiency

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The Emerging Disconnect II

Pressure forNew Applications,Unique Solutions,

Speed ofImplementation,

Real ROI

Line Managers

Prepackaged Solutions,Expensive

Customization,Cost, Time Overruns,Multiple Standards,

Application Software-Battle Ground for Large IT vendors?

CTO/CIO

Value Creation System Efficiency

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IT is expending everywhere

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IT is expanding everywhere !

MICRO-COMPUTERERA

MAINFRAME ERA

NETWORK ERAENTREPRISES

MOBILITY

OBJECT

3270 C/S

HTTPHTML

XHTMLCSS

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Internet evolution – Web 2.0

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Internet evolution – Web 2.0

Source: http://upload.wikimedia.org/wikipedia/commons/2/21/Web20_en.png

Real-time interactions

Self-perpetuating

A new Generation

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SOA is key to Financial Institutions

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SOA is key to Financial InstitutionsAfter : Customer centric model

-

Distributor

ProducteurP

Before : Product centric model

Customers Customers Customers

MO

RTG

AGE

Third

part

yC

ON

SUM

ER

LOA

NS

PER

SON

AL

AC

CO

UN

T

New customers can be acquired and served at a marginal cost

Reduce cost

Customer

Real time intelligent interaction

Third partyConsumer

Loansfactory

P

P

Mortgagefactory

DifferentiateProducteurP

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E-mail

Standard business processes and off the shelf web-services

Message

Validation

Workflow

Authorization

Reporting

Logging

Generic Services

Audit trail

Printing

Com

munication

managem

ent

Service busHDN GIM

Mid Office Back OfficeChannels

Client

(CR

M)

Contract

All finance services

Productengine

Loan

Collateral

Mortgages & Loans services

Credit check

Savings

Broker

General

ledger

Risk

Payment

Batch

Other domains

Insurance

Investments

√ √ √ √ √ √

Notary

√√ √ √ √ √ √

√ √

√

√ √ √

Commercial Off The ShelveStandard component√

Incidentalredemption

√

Paymentmanagement

√

Orchestration

Contract continuation

√

√

Collections &

Disbursem

ents

Mortgagecontract

√

Contracttermination

√Mortgageproposal

√

Riskmanagement

√

Arrearsmanagement

√

Mortgageadvise

√

Mortgageapplication

√

√

√

Re-use off the shelf

web-services

Gap analysis made on standard business processesTarget: from 3000 loan approvals analysis/year to 10 000/year Component > 70% covered

by Capgemini √

Productmanagement

√Client

management

√

Intermediarymanagement

√Mortgageexecution

√Mortgage

application

√Contract

management√

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Platform Specific Model(PSM)Platform Independent

Model (PIM)

InformationSystem Model

UMLClass & Sequence

Diagrams

SystemCode

Database Model

DDL

Marking

Model

InformationSystem Model

UMLClass & Sequence

Diagrams

Complex

Behavior

CoreCode

Data Access Layer Static StructureSimple CRUD

DB

MS

ResourceComponent

ServiceComponent

UML2DDL

DB Create

Review

Capgemini NL Capgemini INDIABusiness OperationsResponsibility :

• Review for performance

• Review for syntaxand completeness

• Technical mark-up independentof model versions & patches

• Bridge for code generation• Logical 2 technical naming

• Hand coded medium & complex methods

• Independent of (re-generated) Core Code

70 % of total code is generated from Platform Specific Model

100 % Generated from Platform Specific Model

Deployed components and database

Structural quality of system is enforced by generator

WebComponent

1

2

3

4

6

7

Use automatic code generating engines

ESB

ProcessComponent

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UML2Codedeploy

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Distributor: differentiate by leveraging your business expertise thanks to technology

Marketing

Pricing and

Offer configuration

Simple-complexofferring

Multi-channel

Loan approval

Approval

Scoring

Simulation

Pricing

Proposal

Front End

DistributorMiddle Office

Back Office

Branches

Marketing

Factories

www

@Call Center

Risks

Customer database

Third partydatabase

Contractsmanagement

Partners

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Business Rules (JRules) – Easy configuration

8 months, start January 2006, 2000 branches deployed YE 2006,150 000 loans approved to date

A Consumer Loan Bank launched, with outstanding resultsExtension to Europe signed…. 14m€ for Capgemini

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Front Office Customization

Before After

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Customized and real time intelligent customer service

Existing New

-

Index

-

Secured Site

Filter URI

Profiles+Dataagents

ServiceWelcome

ServiceIdentity CRL

Service Query

ServicePersonal space

Service AutorisationLogs Audit

CertificatsGeneration

Plug-in acces Plug-in acces Plug-in acces Plug-in acces

CRM BUSINESSAPPLICATIONS

HR APPLICATIONSINTRANET

SERVICESFINANCES &

ADMINISTRATION

MESSAGINGSERVICES

REFERENTIALS

Workstation

Branch

DAB / GAB

Cashier

localServers

Backbone Gigabit IP

SERVICES

Personalization

DeliverySales force

users

CUSTOMERS

CUSTOMER

TOOLS

PUSHPUSH

Orchestration

local servers

Retired

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Customized and real time intelligent customer service

Existing New

-

Index

-

Secured Site

Filter URI

Profiles+Dataagents

ServiceWelcome

ServiceIdentity CRL

Service Query

ServicePersonal space

Service AutorisationLogs Audit

CertificatsGeneration

Plug-in acces Plug-in acces Plug-in acces Plug-in acces

CRM BUSINESSAPPLICATIONS

HR APPLICATIONSINTRANET

SERVICESFINANCES &

ADMINISTRATION

MESSAGINGSERVICES

REFERENTIALS

Workstation

Branch

DAB / GAB

Cashier

localServers

Backbone Gigabit IP

SERVICES

Personalization

DeliverySales force

users

CUSTOMERS

CUSTOMER

TOOLS

PUSHPUSH

Orchestration

local servers

Retired

Technology brings real time dataTechnology Services transform data into intelligent information at a lower IT costenabling customers to win market share

SOA is not in the early adopter phase anymore,the risk is to be left behind

Most customers will look for the Safe Buy

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“Business” Model Driven Solutions (MDS)

Businessmodel

Informationsystem model

Technicalmodel

Coding/Testing

Future business

needs

Technologysolutions

Faster

Classical

10%

30%

20%

40%

100%

Offshoremodels

10%

30%

15%

30%

80%

Ref models

3-5%

10-12%

10-15%

20-25%

45%

Effort

• Cheaper - Rightshore- OSS

• More accurate through integrated models

• Re-usable models

• Differentiation: “Intentions”

• Client buys:

1.Business Models &

2.Factories to generate source code

Cheaper, more accurate and re-usable

Consultingservices

Technologyservices

Inte

rdep

ende

nce

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A DBN view of Software EcosystemsA Hypothetical Software Vendor’s Networked Ecosystem

Ultimatecustomer

Hardware platform

certification from, Dell, EMC,

HP, IBM, Sun

Middleware platform from

IBM WebSphere and Microsoft

VS.NET

Analytics and reporting platformfrom BO Cognos,

Hyperion, and SAS

Office productivity

integration withMicrosoft and IBM

Database relationship with

IBM DB2, Microsoft, Oracle,

and Sybase

Storage technologiesfrom EMC and

IBM

Vertical application development from

Infosys, Satyam,TCS and Wipro

System integrators partnerships from

Accenture, Bearing Point, Capgemini, Deloiitte, EDS, Fujitsu, Hitachi,

Infosys, Satyam,TCS and Wipro

Managed application

services provider

Indianbusiness process

outsourcer

Major softwarevendor

Third party financing fromKey Financing and Siemens

ISV partner or resellers

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Design Capgemini’s DBN EcosystemA Hypothetical Scenario of Capgemini’s Networked Ecosystem

Ultimatecustomer

Hardware platform

certification from, Dell, EMC,

HP, IBM, Sun

Middleware platform from

IBM WebSphere Oracle Fusion

Middleware and Microsoft VS.NET

Analytics and reporting platformfrom BO Cognos,

Hyperion, and SAS

Office productivity

integration withMicrosoft and IBM

Database relationship with

IBM DB2, Microsoft, Oracle,

and Sybase

Storage technologiesfrom EMC and

IBM

Vertical application development from

Infosys, Satyam,TCS and Wipro

System integrators partnerships from

Accenture, Bearing Point, Deloiitte, EDS, Fujitsu,

Hitachi, IBM Global Services Infosys,

Satyam,TCS and Wipro

Managed application

services provider

Indianbusiness process

outsourcer

Capgemini

Third party financing fromKey Financing and Siemens

ISV partner or resellers

Capgemini, Lead the packCapgemini, Lead the pack

Conclusion: it's time for 2.0

…and transforming the employees of our clients into salesmen.

…while decreasing the cost of production…

We enable our clients to answer the needs of their own clients…

Capgemini is their gate to the Intelligence economy

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Capgemini enables its clientsto transform and performthrough technologies.

Our Mission :

28The World is Changing2006