© 2015 IBM Corporation Using MDM CE and the Industry Models to Accelerate Product and Product Offer Management in the Financial Services Sector Andy Ousterhout Offering Manager, IBM Software Group

© 2015 IBM Corporation Agenda Define the scope of the problem Review what a complete solution requires Rethinking the data model How it should all work together/demo

© 2015 IBM Corporation From a Product Managers perspective…..

© 2015 IBM Corporation Who Where What When How

© 2015 IBM Corporation Core Banking Lending Cards

© 2015 IBM Corporation Services A,D,E How much does each service contribute? Product 1 Services B,D,F Services A,B,C - Minimum Balance 10, 5% Product 2 Minimum Balance 5, 2.5% Product 3 No Minimum Balance, 0%

© 2015 IBM Corporation January February March April May June

© 2015 IBM Corporation Summary of the problems Product Managers do not have the information they need to make decisions Coordinating what needs to be done across channels is challenging Simple changes become an IT project Everything takes too long

© 2015 IBM Corporation Cards Call Centers Branches Internet Re- insurance Loans Mortgage ATM VRU Other Systems Current Accounts Analysis Customer Master Call Centers Branches Internet Savings Accounts Loans Mortgage ATM VRU Other Systems Current Accounts Reducing total time requires all of the business components to be considered Product & Offer Master Arrange- ment Master Pricing Engine Analysis Customer Master Offer Management Workflow & Rules Reference Data Master Cards

© 2015 IBM Corporation Complete Checking The logical data model needs to be rethought as well

© 2015 IBM Corporation } “Offer” Checking Account Debit Card } “Sellable Items” Mailed Statement Checks Paid Branch Deposits Debit Card Purchases } Product and Offer Catalog “Features” Complete Checking How to market Contract Terms (e.g. pricing) Product and Services Included Minimum capabilities Options Servicing Locations Jurisdictional requirements Transactions Services Events

© 2015 IBM Corporation } “Offer” Checking Account Debit Card } “Sellable Items” Mailed Statement Checks Paid Debit Card Purchases Branch Deposits } Product and Offer Catalog “Features” Complete Checking (GL A/C, Profit A/C, Cost A/C) Complete Financials

© 2015 IBM Corporation } “Offer” Checking Account Debit Card } “Sellable Items” Mailed Statement Checks Paid Debit Card Purchases Branch Deposits } Product and Offer Catalog “Features” Complete Checking Internet Banking Mobile Payments Internet Statement

© 2015 IBM Corporation Checking Release – Set of offers with common messaging where only one can be selected Everyday CheckingRetail Complete Offer Catalog Checking AccountSavings Account Account Deposit Saving Sellable Item Catalog Feature Catalog Check Deposits Statements Everyday Savings Pay Interest Components

© 2015 IBM Corporation Some definitions … Features – Things that the bank can track and act on(e.g. check deposits, monthly statement, intra-day account overdraft) Components – Group features together to simplify including in sellable items Sellable Items - Group together Components, and provide limitations by Jurisdiction. Each Sellable Item will generally be able to be sold by itself. Offers – Takes a single sellable item, and modify it within the allowed constraints for a specific buyer. This includes adding pricing and marketing. It represents what the buyer can purchased under a single contract. Offers may have optional components and components optional features. Bundled Offers – Take two or more sellable items and modifies them within the allowed constraints for a specific buyer. Like Offers, Bundled Offers include pricing and marketing. Generally, bundles offer lower pricing or increased features over individual Offers. Releases – Market Offers and Bundled Offers under a unified theme, which move through the change process together. The marketing message for all of the included offers is set at the Release level

© 2015 IBM Corporation Screen shots

© 2015 IBM Corporation After sign-on, see available catalogues and workflow

© 2015 IBM Corporation Features track events and transactions and are related to a Component

© 2015 IBM Corporation Components enable groups of features to be operated on together

© 2015 IBM Corporation Sellable build on Components to provide building blocks for offers

© 2015 IBM Corporation Each component has a unique set of attributes

© 2015 IBM Corporation Offers contain all of the descriptors, from pricing, to marketing

© 2015 IBM Corporation They are built off of an Item, and bring in the Components and features

© 2015 IBM Corporation List pricing can also be maintained

© 2015 IBM Corporation Marketing can also be coordinated

© 2015 IBM Corporation Product Domain integrates natively with ODM Rules Engine