Benefits and costs: Business Case Toolkit

Transcription

1 and costs: Business Case Toolkit Slide Universwiftnet_Brussels_v1.ppt 1

2 Methodology Test against 4 French cases Analyse Arcelor and GE cases + 20 users Step 1: Choose your profile Company Step profile 1: Choose your profile Very large corporate Turnover bn per year, 100,000+ employees, sales in 50+ countries, 100+ banks 30 & 50 FX via SWIFT (choose 1, put "x") Large corporate Turnover bn per year, 50, ,000 employees, sales in countries, 50+ banks 15 & 25 FX via SWIFT Company Step profile 1: Choose your Medium profile Very corporate large corporate Turnover Turnover 1-10 bn 25 per - year, 100 bn 10,000 per year, - 50, ,000+ employees, employees, sales sales in 10 in countries, banks banks 5 via 30 SWIFT & 50 FX via SWIFT (choose 1, put "x") Medium Large corporate corporate (FileAct) Turnover Turnover 1-10 bn 10 per - year, 25 bn 10,000 per year, - 50,000 50,000 employees, - 100,000 employees, sales in 10 sales - 25 countries, in countries, banks via banks SWIFT 15 & 25 FX via SWIFT Company Step profile 1: Choose your Medium profile Very corporate large corporate Turnover Turnover 1-10 bn 25 per - year, 100 bn 10,000 per year, - 50, ,000+ employees, employees, sales sales in 10 in countries, banks banks 5 via 30 SWIFT & 50 FX via SWIFT (choose 1, put "x") Medium Large corporate corporate (FileAct) Turnover Turnover 1-10 bn 10 per - year, 25 bn 10,000 per year, - 50,000 50,000 employees, - 100,000 employees, sales in 10 sales - 25 countries, in countries, banks via banks SWIFT 15 & 25 FX via SWIFT needs Treasury Business Company profile Medium Very corporate large corporate Turnover Turnover 1-10 bn 25 per - year, 100 bn 10,000 per year, - 50, ,000+ employees, employees, sales sales in 10 in countries, banks banks 5 via 30 SWIFT & 50 FX via SWIFT - Monitor Receive account statements and advices (MT940, MT942, MT900910) (choose 1 or more) accounts Medium Large corporate corporate (FileAct) (choose 1, put "x") Turnover Turnover 1-10 bn 10 per - year, 25 bn 10,000 per year, - 50,000 50,000 employees, - 100,000 employees, sales in 10 sales - 25 countries, in countries, banks via banks SWIFT 15 & 25 FX via SWIFT needs - Cash Send payment orders ((MT101) and send queriesreceive answ ers (MT195196) to manage accounts company-w ide pooling Treasury Business Medium corporate Turnover 1-10 bn per year, 10,000-50,000 employees, sales in countries, 25+ banks 5 via SWIFT - Financial - Monitor risk management accounts Confirm currencyoptionfixed Receive account statements loan-deposit and advices operations (MT940, (MT ), MT942, MT900910) send payment order (MT101) and notice (MT210) (choose 1 or more) Medium corporate (FileAct) Turnover 1-10 bn per year, 10,000-50,000 employees, sales in countries, 25+ banks 5 via SWIFT orders ((MT101) and send queriesreceive answ ers (MT195196) to manage accounts company-w ide - Confirmation - Cash matching pooling Treasury using SWIFTNet Send payment Accord Business needs - Investments - Financial risk management Send orders Confirm (MT502), currencyoptionfixed receive status messages loan-deposit (MT509), operations confirmations (MT ), (MT515) and send statement payment of order holdings (MT101) (MT535), and notice (choose 1 or more) - Monitor accounts Receive account statements and advices (MT940, MT942, MT900910) (MT210) send settlement using SWIFTNet Send instructuctions payment Accord orders and receive ((MT101) confirmationsstatus and send queriesreceive (540123, answ ) ers (MT195196) - Confirmation - Cash matching pooling Treasury to manage accounts company-w ide Business needs Cash - Investments - Financial risk management Send orders Confirm (MT502), currencyoptionfixed receive status messages loan-deposit (MT509), operations confirmations (MT ), (MT515) and send statement payment of order holdings (MT101) (MT535), and notice (choose 1 or more) - Monitor accounts Receive account statements and advices (MT940, MT942, MT900910) (MT210) account send settlement statements using SWIFTNet Send instructuctions and advices payment Accord(MT940, orders and receive ((MT101) MT942, confirmationsstatus MT900910, and send queriesreceive ISO20022, (540123, domestic answ ) format) ers (MT195196) - Confirmation - Cash matching pooling Receive - Receivables to manage accounts company-w ide suppliers, - salaries, Investments - Financial Send risk payment management orders Send and orders send Confirm (MT502), queries currencyoptionfixed receive status answ ers messages loan-deposit (MT101, (MT509), MT195196, operations confirmations ISO20022, (MT ), (MT515) domestic and send format) statement payment of order holdings (MT101) (MT535), and notice (MT210) - Pay Cash - Receivables - Confirmation matching Receive account send settlement statements using SWIFTNet instructuctions and advices Accord(MT940, and receive MT942, confirmationsstatus MT900910, ISO20022, (540123, domestic ) format) - Pay suppliers, Cash Send payment orders Send and orders send (MT502), queries receive status answ ers messages (MT101, (MT509), MT195196, confirmations ISO20022, (MT515) domestic - salaries, Investments and format) statement of holdings (MT535), SWIFT profile account send settlement statements instructuctions and advices (MT940, and receive MT942, confirmationsstatus MT900910, ISO20022, (540123, domestic ) format) - Receivables Receive Counterparty Registration Treasury - Pay suppliers, Cash salaries, Send payment orders and send queries receive answ ers (MT101, MT195196, ISO20022, domestic format) (choose 1 SWIFT or more) profile SCORE MA-CUG - Receivables Receive account statements and advices (MT940, MT942, MT900910, ISO20022, domestic format) Accord Registration Treasury Counterparty - Pay suppliers, salaries, Send payment orders and send queries receive answ ers (MT101, MT195196, ISO20022, domestic format) (choose 1 or more) Messaging SWIFT profile FINday SCORE sent MA-CUG Registration Confirmations Accordmatchedday Treasury Counterparty (choose 1 or more) (choose 1 or more) Messaging SWIFT profile FileAct filesday SCORE sent MA-CUG FINday Registration Payments Confirmations per file Accordmatchedday more) Treasury Counterparty (choose 1 or (choose 1 or more) Messaging FileAct filesday SCORE sent MA-CUG connection: FINday Private infrastructure, Infrastructure Direct SWIFTNet Access (FINFileAct) or Gateway (FileAct only) Kit Payments Confirmations per file Accordmatchedday (choose 1 or more) Service Bureau: Shared infrastructure, SWIFNet Essentials Kit (choose 1) Infrastructure Messaging Direct connection: FileAct FINday filesday Private sent infrastructure, SWIFTNet Access (FINFileAct) or Gateway (FileAct only) Kit (choose 1 or more) Service Payments Bureau: Confirmations Shared per fileinfrastructure, matchedday SWIFNet Essentials Kit (choose 1) Infrastructure Direct connection: FileAct filesday Private sent infrastructure, SWIFTNet Access (FINFileAct) or Gateway (FileAct only) Kit Service Payments Bureau: Shared per fileinfrastructure, SWIFNet Essentials Kit (choose 1) Infrastructure Direct connection: Private infrastructure, SWIFTNet Access (FINFileAct) or Gateway (FileAct only) Kit (choose 1) Service Bureau: Shared infrastructure, SWIFNet Essentials Kit Identify 4 profiles Universwiftnet_Brussels_v1.ppt 2

3 Business case approach Step 1! Determine your needs Step 2! Estimate costs Step 3! Estimate benefits Step 4! Financial result Universwiftnet_Brussels_v1.ppt 3

4 4 profiles Medium corporate 1 Medium corporate 2 Large corporate Very large corporate Turnover ( bnyear) Business need Cash Treasury Treasury + Cash Treasury + Cash Banks reached via SWIFT Universwiftnet_Brussels_v1.ppt 4

5 Utsit cases Goldthirdage Paparazar Triangle Gasteel Type Social pension fund Multinational Risk Central Treasury Besoin Central application for payments and direct debits Single messaging system to communication with all banks FX market operations confirmations Receive statements, balance accounts, risk and liquidity management SWIFT FileAct FIN et FileAct FIN MT3xx + Accord FIN + Accord Universwiftnet_Brussels_v1.ppt 5

6 Cost structure % of total costs SWIFT costs Joining Infrastructure Traffic SCORE MA-CUG, Treasury Counterparty, Accord SWIFTNet Essentials Gateway Access Kit FIN, FileAct, Accord matching 6% - 2% 10% - 11% 6% - 7% Total ± 20% Project 3-7 FTE months 29% - 9% Non- SWIFT costs PCs & operations or Service Bureau Application 1-3 servers or Service Bureau fees - None (existing domestic formats sent via FileAct) - SWIFT module on TMS - Financial Application Integration middleware - TMS module + middleware + ERP integration 49% - 43% 0% - 28% Total ± 80% Universwiftnet_Brussels_v1.ppt 6

7 4 profiles - detail Traffic (per day) Medium 1 20 files with 100 payments sent 10 files with 300 statements received Medium 2 20 MT101 sent 60 MT940 received Large 50 MT MT3xx + 10 files with 250 payments sent 150 MT9xx + 10 files received Accord matching Costs Very Large 200 MT MT3xx + 10 files with 500 payments sent 600 MT9xx + 10 files received Accord matching Costs (av.year) 28 KEUR SCORE: 2 SN Essentials Kit: 3 Traffic: 2 3 month project: 8 Service bureau: KEUR SCORE: 2 SN Essentials Kit: 3 Traffic: 2 3 month project: 8 Service bureau: 18 Application: KEUR SCORE, Accord, Tr. Counterparty: 5 SN Access Kit: 24 Trafficmatching: 7 6 month project: 16 2 servers: 65 Application: KEUR SCORE, Accord, Tr. Counterparty: 5 SN Access Kit: 24 Trafficmatching: 19 7 month project: 20 3 servers: 97 Application: 67 (av.year) 52 KEUR.5 FTE reallocated:25 5 workstations * 8KEUR retired: KEUR 1 FTE reallocated:50 5 workstations * 8KEUR retired: 27 2,5 basis points + 2.5% slow down, 10% attributed: KEUR 3 FTE reallocated: bank systems * 20KEUR retired: basis points + 5% slow down, 10% attributed: 100 1,033 KEUR 6 FTE reallocated: bank systems * 20KEUR retired: basis points + 10% slow down, 10% attributed: 333 Universwiftnet_Brussels_v1.ppt 7

8 Utsit cases - detail Goldthirdage Paparazar Triangle Gasteel Volumes (per day) 110 files * 155 payments sent 10 files * 500 statements received 200 MT101 sent and 150 MT9xx received 200 files * 100 payments sent and 50 files received 50 MT3xx Accord matching 550 MT9xx received and 200 MT101 sent 33 MT3xx operations and 10 MT5xx Accord matching Costs (av. year) 70 KEUR SCORE: 2 SN Gateway Kit: 15 Traffic: 5 1 server: 31 Application: KEUR SCORE: 2 SN Access Kit: 39 Traffic: 12 2 servers: 65 ERP integration: KEUR Accord, Treasury Counterparty: 3 SN Essentials Kit: 3 Traffic matching: 12 Service bureau: KEUR SCORE, Accord: 4 SN Essentials Kit: 3 Traffic matching: 12 Service bureau: 24 TMS module: 7 (av. year) 420 KEUR Local connections retired 336 KEUR 50 small electronic banking systems + 3 large solutions retired 70 KEUR 7 EUR per manual transaction avoided 71 KEUR 1 staff position reallocated 1 ETEBAC5 + 2 bank stations retired Universwiftnet_Brussels_v1.ppt 8

9 TCO of using SWIFTNet KEURyear Paparazar Arcelor Very large corporate 150 Large corporate Legend 100 Thoughtware case studies 50 Goldthirdage Medium corporate 1 Medium Gasteel Triangle corporate 2 Utsit case studies ROI simulator Cash Treasury Treasury + Cash Functionality Universwiftnet_Brussels_v1.ppt 9

10 % of total benefits Operational benefits Labour savings Bank systems retirement FTE 5 to 30 systems 50% - 30% 50% - 40% Total 100% - 70% Financial benefits on Working Capital Optimization Growth avoidance 0 to 10 basis points improvement, in function of SWIFT usage and number of banks, 10% attributed to SWIFTNet 0 to 10% slow down on 10% growth, in function of SWIFT usage and number of banks, 10% attributed to SWIFTNet 0% - 30% Total 0% - 30% Universwiftnet_Brussels_v1.ppt 10

11 Financial result KEUR over 5 years Project paid back by operational benefits Operational benefits Financial benefits? Other benefits - Enhanced security - SOX compliance - Costs Difficult to quantify but can be key decision factor Total benefits Universwiftnet_Brussels_v1.ppt 11

12 ROI Over 5 years 500% Goldthirdage Arcelor 400% 300% 200% 100% Paparazar Medium corporate 1 Triangle Medium corporate 2 Gasteel Very large corporate Large corporate Legend Thoughtware case studies Utsit case studies ROI simulator Note: Utsit cases focus on Operational Cash Treasury Treasury + Cash Functionality Universwiftnet_Brussels_v1.ppt 12

13 Conclusion How can we help you, together with your bank, make your business case? Universwiftnet_Brussels_v1.ppt 13