e-Commerce Role of Banking Presented by Vietcombank 1/2/2007 2007 Simplified e-business Process Model Business Strategy Product/Service Development Management Demand Plan Supply Plan Supply Chain Management Suppliers/ Partners Real Time Order Management Enterprise Resource Planning Procurement Scheduling Distribution Logistics Direct, Personalized Sales Customer Relationship Management Customer Service Customers Knowledge Management and Business Intelligence Electronic Commerce e-business Enablement 1/2/2007 e-Business Attraction - Interaction - Transaction - Satisfaction Pre-Sale Publish/update catalog, prices, etc Browse catalog Negotiate terms Sale Place order Make payment Billing and inventory Manufacturing JIT, ordering Sales Improving bottomline Marketing Delivery Reaching new customers inventory, shipmenttracking R&D Customer Service .Post-Sale Manage inventory with suppliers Coordinate with shipping company Resolve issues and maintain relationship Increasing loyalty 1/2/2007 E-commerce a key component of e-business strategy General Business Strategy e-commerce Implication Increase exposure through alternate channels Expand to new markets Revenue Growth Develop value-added products & services Increase revenue per customer Provide superior customer service 1/2/2007 Increase customer loyalty Operational Efficiency Target marketing and sales efforts to individual customers Provide consistent customer experience across all channels Consistent processes and information through the supply chain Reduce costs by automating manual, paper-intensive processes The Emergence of e-Commerce Buyers Sellers Store Buyer Issues Time intensive Often times inconvenient Limited selection of products / services Direct Sales Channel Partners Seller Issues Capital / resource intensive Rising operational costs Increasing competitive pressures Catalog Time savings Buying convenience Broader selection of products / services 1/2/2007 Electronic Commerce Internet Web site on-line sales & service Reduces capital / resource requirements Lower operational costs Platform for differentiation E-commerce The Electronic Means of Exchanging Value Merchant (Seller) 1/2/2007 Bank (Payment) Logistics (Fulfillment) Internet Consumer (Buyer) e-Commerce for Financial Institutions Logistics GW Cyber- Mall Internet NTWK Channel E-Apps Information System DB Marketing : Intelligent Miner/ BDS e-Commerce: e-Credit/e-Debit Branch I BM Se r v i c e Ba n k I B M M i c el K o n t o - N r - K a r e n - t 25- 3356 Home User Internet New Concept Branch Authentication : PKI ATM/Kiosk Internet Banking I BM Se r v i c e Ba nk I M B Internet Shopping M i c el K o M n t o - N r - r e n - on ey m ak er t 1234 N r 25- 3356 778812356 Conv enience Store Super Small Branch Office 1/2/2007 BANK CARD 1234 V A L I 5678 D 9012 G D O O XR O X M / T H R U X X/ XX X/ X X XX / F KE N Y AM A DA Internet Banking Unmanned Secured Banking NTWK Service Unmanned/Customer Site Banking Channel Interface 1234 N r 778812356 K a Mainstay System M on ey m ak er Cust Info Risk Mgm't Service Analysis for Credit Bank Cust Mgm't Pricing Marketing Contactl Center Financial Institution Business tie-up Stock Co System Insurance In te r n e t P a y m e n ts D ia g a m C ustom er's B ank Merchant's B ank BANK Existing Financial N etw or ks Pay m e nt G ate w ay Internet Secured Tranaction dial-up or leased-line Pay m e nt S e rv e r C onsum e r W alle t S e cure W e b B row se r C onsum er 1/2/2007 Internet O nline Store Merchant The Bank is a Core Foundation for e-Commerce Electronic Commerce Internet Web site online sales & service Banking Facilities to businesses and consumers Online banking - retail, corporate Approvals for banking products - OD, Loans, etc Payment options - Credit, Savings, Current Trade Finance - Factoring, Discounting, LC, new e-payment Stock Broking - IPO, e-trading, payments Insurance - New products, computation, premiums, etc 1/2/2007 Key e-commerce Applications - The Bank as a Player or Facilitator Web Banking Services Electronic Bill Presentment - Business to Business & Consumers Payment Systems Internet Stock Trading Internet company Storefronts / Malls e-procurement e-MarketPlaces 1/2/2007 10 Banking and Financial Processes Knowledge Management Access Channels Bank Bank Operated Operated Customer Customer Operated BranchBranchbased based services services Call centers Call centers for sales/ for sales/ services services Brokers/ Brokers/ Agents/ Agents/ Partners Partners Commercial Commercial & Corporate & Corporate RMs RMs Private Private Bankers Bankers Helpdesk Helpdesk Internet Internet Banking/ Banking/ Payments/ Payments/ Brokerage Brokerage Corporate Corporate Electronic Electronic Linkages/ Linkages/ EDI EDI SelfService SelfService Kiosks Kiosks Telephone/ Telephone/ VRU VRU Cards Cards ATM/POS ATM/POS Others Others Operational Systems Risk Management market market credit credit General Ledger General Ledger operational Deposits/Loans Deposits/Loans Brand Management customization customization mass merch mass innovation/different'n innovation/different'n Payments Payments Customer Management segmentation value value FX & Electronic Mkts FX & Electronic customer intimacy Depositories Profit Management Treasury/Trading Treasury/Trading product profitability customer relationship profitability product customer relationship profitability Cards Service Delivery M anagement Network management Security/standards Staff Functions // Staff Functions Partner Partner Connections Connections External gateways Shared services Business Processes & Data Management Business process re-engineering Data warehousing Proprietary Property Of IBM Proprietary Property Of IBM 1/2/2007 11 V ie tc o m b a n k IT In fr u s tr u c tu r e R e a d y fo r e -C o m m e rc e H Ö t E xè c ug i vte I« Fn gM t iT I Oq u Y Sn El ý ( M I S ) h e n t h N OR A n N S¶ T M M ANAGEM ENT IN F O R M A T IO N S Y S T E M F IN A N C IA L R IS K M G M T M A R K E T T IN G M GM T CRM M GM T D ATAW AREHOU SE C O R E B A N K IN G A P P L IC A T IO N S b a c k o f f ic e TREASURY T R A D E F IN A N C E R E T A IL B A N K IN G M ID L E W A R E IS T S w it c h V C B G a te w a y IB P S G a te w a y S W IF T In t e r f a c e P U B L IC NETW ORK W AN EXTERNAL NETW ORK B A N K IN G D E L IV E R Y C H A N E L S BRANCH SELF S E R V IC E S IN T E R N E T P C /T E L POS SM S p S R m P F V C B M O N E Y V I S A /A M E X /M C I A B e T M O S A I C /V C B C O N N E C T V C B W E B I y I ATM a W e n S E U T E R t 1/2/2007 CUSTOM ER 12 E x e c u t i v e I N F O R M A T I O N CARD-BASED SYSTEM CARD-BASEDProducts Products FULL t i n q OF n l ý ( M I S ) H Ö t h è n g t h « n FULLMEMBERu OFVISA,MASTERCARD, EXCLUSIVE FOR AMEx g MEMBER ¶ VISA,MASTERCARD, EXCLUSIVE FOR AMEx DINER CLUB,JCB M A N A G E M E N T EXCLUSIVE ACQUIRER FOR SDINER CLUB,JCB I N F O R M ACQUIRER FOR EXCLUSIVE A T I O N S Y T E M R IS K CRM M GM T 1,500,000 ATM CARD, 200,000 INT’L CREDIT CARD/DEBIT CARD 1,500,000 ATM L M A R INT’L I N G F I N A N C I A CARD, 200,000 K E T T CREDIT CARD/DEBIT CARD SHARED RUN ATM/POS NETWORK VCB’s Alliance WITH 20 SHARED TRUN ATM/POSMNETWORK VCB’s Alliance WITH 20 GM T MGM MEMBERS MEMBERS DATAW AREHOUSE VCBOnline VCBOnline on-line banking on-line banking on-line based products on-line based products central information management central information management central business management central business managementN G R E T A IL B A N K I C O R E B A N K IN G A P P L IC A T IO N S eBank Products eBank Products HOME BANKING (VCBMoney) M ID L E W A R E IS T S w itc h V C B G a te w a y b a c k o f f ic e TREASURY T R A D E F IN A N C E HOME BANKING (VCBMoney) S W IF T BANKING c e INTERNET In t e r f a IB P S G a t e w a y INTERNET BANKING vcb CYBER BILL PAYMENT vcb CYBER BILL PAYMENT SMS BANKING SMS BANKING P U B L IC W AN NETW ORK EXTERNAL NETW ORK B A N K IN G D E L IV E R Y C H A N E L S BRANCH SELF S E R V IC E S IN T E R N E T P C /T E L POS SM S S p R m P F V C B M O N E Y V I S A /A M E X /M C I A B e T M O S A I C /V C B C O N N E C T V C B W E B I y I ATM a W e n S E U T E R t 1/2/2007 CUSTOM ER 13 1/2/2007 14 ... manual, paper-intensive processes The Emergence of e-Commerce Buyers Sellers Store Buyer Issues Time intensive Often times inconvenient Limited selection of products / services Direct Sales Channel... Foundation for e-Commerce Electronic Commerce Internet Web site online sales & service Banking Facilities to businesses and consumers Online banking - retail, corporate Approvals for banking products... customer intimacy Depositories Profit Management Treasury/Trading Treasury/Trading product profitability customer relationship profitability product customer relationship profitability Cards Service