Ongoing Collaborations with Top Banking Providers Help Banks Leverage Leading Core Banking Functionality Through an Integrated Platform
LAS VEGAS, Nov. 14 / -- Continuing its focus on providing banks the flexibility they need to integrate, migrate and update application functionality based on an integrated platform, SAP AG (NYSE:SAP) today announced an alliance with Computer Sciences Corporation (NYSE:CSC). The alliance will address the growing need for banks to differentiate themselves through strategically optimized product pricing. The collaboration between the two industry leaders will bring together the SAP® Price Optimization application with CSC's Hogan Core Banking System, simplifying CSC clients' access to sophisticated pricing options. The announcement was made at the BAI Retail Delivery Conference and Expo, taking place in Las Vegas, Nevada, November 13-15.
The overall collaboration will complement CSC's Hogan Core Banking System, which is high-performance banking software, with the strength of technology and banking applications from SAP to help banks improve their productivity, manage change and optimize their core processes quickly. The goal of the alliance is to provide banks the flexibility they need to integrate, migrate and update application functionality based on strategies to consolidate and streamline platforms. The joint offering will focus on providing a tool suite that can predict optimized pricing scenarios across banks' product portfolios. SAP and CSC have focused on pricing to help banks find better ways to generate new revenues and increase product sales through improved strategic and operational impact analysis of loan and deposit data. In today's environment, pricing is critical to banks' success, and the traditional pricing models are not sophisticated enough to shift rapidly with frequent market changes.
The SAP Price Optimization application goes beyond traditional pricing offerings. It focuses on critical components of banks' strategy, such as risk management, asset and liability management, customer relationship management (CRM), sales management and profitability to measure the impact of these dynamic factors simultaneously and flexibly. The application takes pricing factors into consideration and statistically determines the price elasticity of a product. It considers pricing factors such as demand modeling, seasonality, customer behavior, current market rate and competitive analysis. The end result is a set of product rates for the various sales regions. These optimized rates align with banks' go-to-market strategies and scientifically support their desire to increase profits, volume or profitable volume.
"Interfacing CSC's Hogan Core Banking System with the SAP Price Optimization application gives a large percentage of the world's top-tier banks easy access to tools to improve their agility and reduce customer attrition with attractive retail banking market pricing," said Jim Cook, president of CSC's Financial Services Sector. "This is another example of CSC's continuous innovation to help our clients generate new revenues from their financial product portfolios."
"In a fragmented market, this alliance will offer pre-integrated components that minimize implementation time and cost," said Thomas Balgheim, head of global banking line of business, SAP AG. "Banks have worked hard to reduce costs and increase revenues, and yet they still struggle to differentiate themselves. Price optimization technology revolutionizes how banks price products in the market and ensures that no money is left on the table in customer sales opportunities."
The alliance with CSC marks yet another collaborative effort within the last seven months that SAP has made with leading banking providers, including Misys and Callatay & Wouters (see September 18, 2007 press release titled, "SAP and Misys Partner to Deliver Integrated Solutions for the Global Banking Industry" and September 11, 2007 press release titled, "SAP and Callatay & Wouters Collaborate to Provide Integrated Banking Solution"). The goal of the alliances is to enable a business process platform for the banking industry, based on an integrated platform to orchestrate industry-specific, reusable enterprise services and business process elements.
SAP is the world's leading provider of business software*. Today, more than 43,400 customers in more than 120 countries run SAP® applications-from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations. Powered by the SAP NetWeaver® technology platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at www.sap.com/)
(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.
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