PREMIUM CSC’S MAGAZINE NO. 015 / SPRING 2011 / WWW.CSC.COM/PT / SOUTH CUSTOMER-COMPANY: A COUPLE HEADING FOR A BREAKUP? CFO BAROMETER: A TIME OF OPPORTUNITIES? PAGE 20 “RETAIL BANKING IS THE REAL ECONOMY” INTERVIEW WITH YVES MARTRENCHAR, CHIEF OPERATING OFFICER OF BNP PARIBAS RETAIL BANKING. PAGE 24 & WEST EUROPE CONTENTS NEWS FEATURE TRENDS 4 Partnership CSC within the SAP Value Circle / Office move The new world of work 8 Customer-company: a couple heading for a breakup? Companies and their customers are couples with a long history, couples that have been through crises and made up again, couples that have been through both melodrama and romantic comedy together. Premium takes a look at marketing in the 2.0 era and examines fragments of this new customer-company dialogue. 20 CFO barometer: a time of opportunities? 5 Recruitment Niko Demeester associate partner for the public sector / Cloud computing Cloud services achieve SAP certiﬁcation / Accreditation CSC obtains the SAP® Value Management certiﬁcation / Volunteer work largest blood drive programme in CSC’s history 6 IT outsourcing Three year extension with Textron / Awards Best Belgian e-gov project 2010 EXPERIENCE 7 Recruitment CSC awarded top employer status in Belgium for the third consecutive year / Challenging insights Is the chemical industry sustainable? 16 French Post Office Financial information system at the heart of business transformation 14 Antalis Triple merger in the Netherlands 22 The Future of Healthcare: It’s Health, then Care. FACE-TO-FACE 24 “Retail banking is the real economy” Interview with Yves Martrenchar, chief operating officer of BNP Paribas retail banking. VIEWS 26 Governance, risk and compliance: Is your organisation taking an approach to mitigate risks long term? 18 VDAB Flemish agency for employment and vocational training PREMIUM / CSC / SPRING 2011 5 2 14 24 FOR MORE INFORMATION: WWW.CSC.COM/PT PREMIUM Silver Top Com 2008 in the “External Magazine” category – SPRING 2011, NO. 15 / CSC, COMMUNICATIONS DEPARTMENT: 10, place des Vosges, 92072 Paris-la Défense Cedex, www.csc.com. DIRECTOR OF THE PUBLICATION: Claude Czechowski. EDITOR-IN-CHIEF: Megan Shaw; REGIONAL CONTENT COMMITTEE: Ute Blauth, Grégory Cann, Stefania Di Cristofaro, Susana Garcia, Montserrat Martinez-Zacarias, Isabelle Wintmolders. CONTRIBUTORS TO THIS EDITION: Coralie Bonnet, Jean-Michel Bouhours, Camilla Brazzelli, Jean-Baptiste Dupin, Luc Hanegreefs, Frédérique Jacobs, Pierre Kalfon, Agostino La Bella, Jean-Marc Lehu, Santo Lombardo, Elodie Martinez, Jean-Pierre Montal, David Moschella, Sarah Motro, Erik Oosthuizen, Francesca Petrucci, Frédéric Pichard, Stefania Pompili, Michel Rébillard, Guillaume Rivet, Frederico Rossi, Paula Rua, Doris Rupprecht, Kate Taylor, Fran Turisco. PHOTOS: Robert Dale/Getty Images, DR, Getty Images, Manuel Lagos Cid, Flora Bonvicini, Jacques Vannerum, La Poste, Antalis, Starwood, Recipharm, Aeroporti di Roma, G&P Net Spa, Eastnine Inc./Getty Images, Peter Crowther/Ikon Images/Getty Images, Ikon Images/Aeriform & Maria Teijeiro/Getty Images.PRINTED BY: Drifosett Printing SA, avenue du Four à Briques 3a, 1140, Brussels, Belgium. REGISTRATION: October 2008. DESIGN-PRODUCTION: . Opinions expressed by contributors are their own. Reproduction in whole or in part without written permission is strictly prohibited. EDITORIAL CUSTOMER INTIMACY 2.0 Every day we monitor the changes underway in the relationships between businesses and their customers. The rise of social media has reinforced the position of consumers versus brands. Having become more powerful, they are also becoming more vocal, easily making themselves heard and aspiring to play a role in shaping the products and services they consume. Better informed, customers are beneﬁting from technologies that enable them to compare everything in real time and obtain highly focused opinions in a global and ultracompetitive world. All these changes indicate the central role that customer relationships will play in corporate performance. The difference will be made by companies’ ability to integrate customers’ need for mobility, and the ability to respond to their speciﬁc needs. We could call this revolution in customer relationships “Customer Intimacy 2.0”. CLAUDE CZECHOWSKI PRESIDENT AND CEO SOUTH & WEST EUROPE PRESIDENT, GLOBAL CONSULTING/ TECHNOLOGY/ERP PRACTICES The goal of our ﬁrst Customer Intimacy Barometer, which is at the heart of this issue’s dossier, is to provide insight into how businesses are handling these changes, the importance they place on customer relationships, and the main ways in which they are differentiating themselves. One statistic seized my attention: despite their differences, 53% of companies have integrated “customer intimacy” into their strategic priorities. Improving the customer experience is becoming a key challenge – one which implies profound transformation in both the culture and organisation of the company. In this context, technology has a formidable contribution to make, in terms of understanding customers, personalising the relationships with them, and measuring their satisfaction. These changes are a rich source of opportunities for businesses – but they need to be approached with insight and pragmatism. Customer Intimacy 2.0 enables companies to leverage the value of their brands, but can also make them more fragile. As they become increasingly active, every customer can be an advocate of the brand, or a detractor: the richer the relationship, the more interesting it is – and the more complex to manage. ABOUT CSC WITH APPROXIMATELY 94,000 EMPLOYEES, CSC IS A LEADING GLOBAL INFORMATION TECHNOLOGY SERVICES COMPANY. CSC’S MISSION IS TO PROVIDE CUSTOMERS IN INDUSTRY AND GOVERNMENT WITH SOLUTIONS CRAFTED TO MEET THEIR SPECIFIC CHALLENGES AND ENABLE THEM TO PROFIT FROM THE ADVANCED USE OF TECHNOLOGY. CSC PROVIDES INNOVATIVE SOLUTIONS FOR CUSTOMERS AROUND THE WORLD BY APPLYING LEADING TECHNOLOGIES AND CSCS OWN ADVANCED CAPABILITIES. THESE INCLUDE SYSTEMS DESIGN AND INTEGRATION; IT AND BUSINESS PROCESS OUTSOURCING; APPLICATIONS SOFTWARE DEVELOPMENT; WEB AND APPLICATION HOSTING; AND MANAGEMENT CONSULTING. CSC REPORTED REVENUE OF $16.1 BILLION FOR THE TWELVE MONTHS ENDED 2 APRIL 2010. PREMIUM / CSC / SPRING 2011 Is the customer-company couple heading for a breakup? Or getting ready for a second honeymoon? With the help of numerous experts, Premium tries to shed light on the matter. 3 NEWS CSC’s new office in Belgium, located at Corporate Village in Zaventem. PARTNERSHIP PREMIUM / CSC / SPRING 2011 CSC WITHIN THE SAP VALUE CIRCLE 4 CSC in Belgium has become one of the four Foundation Partners of the SAP Value Circle. This strategic partnership conﬁrms CSC’s leadership position in the SAP domain and conﬁrms the trust SAP has in our long-standing cooperation The SAP Value Circle is dedicated to bringing SAP technology and business together to share in-depth information, experience, knowledge and ideas. The aim is to forge visionary new paths in business modeling that enable clients to strengthen their market position. Within the SAP Value Circle, CSC will focus on two main themes: • Financial Excellence (focus on developing new ﬁnancial management solutions) • Business Insight & Mobile enablement. CSC is dedicated to work with SAP to make the SAP Value Circle a successful initiative for all parties. CONTACT ISABELLE WINTMOLDERS // [email protected] OFFICE MOVE THE NEW WORLD OF WORK T imes are changing, and they’re changing fast. Technologies that enable increasing mobility, a changing global socio-economic environment, a multi-generational workforce driven by the arrival of “Generation-Y” – a twittering, instant-messaging, individualistic generation – these crucial factors are changing the face of the workplace for ever. And if the way in which we work is changing fundamentally, then the way in which companies buy and use office space will also change signiﬁcantly. When CSC in Belgium recently had to renew the lease on its office space, they saw it as the perfect opportunity to bring their workspace philosophy in line with their employer brand “Freedom Works Better”. In February 2011, CSC moved to the Corporate Village in Zaventem – into an environmentally conscious building. In collaboration with AOS Studley, a leading real estate planning and management company, CSC took the opportunity to use the move to design the office of the future. “The reasoning behind our decision to create the office of the future was simple,” says Philippe Jaeken, managing director of CSC in Belgium: “Happy employees are productive employees. We’ve always believed that you get the most out of people by giving them freedom, that belief is reﬂected in our employer brand of ‘Freedom Works Better’. This vision continues to drive all our strategic decisions and everything we do, also, amongst others, the way we use our office space. Our new office reﬂects our culture: it promotes ﬂexibility, mobility and creativity as well as offering a balance between ‘me-time’ and ‘team-time’”. CONTACT ISABELLE WINTMOLDERS // [email protected] RECRUITMENT NIKO DEMEESTER ASSOCIATE PARTNER FOR THE PUBLIC SECTOR iko Demeester has joined CSC in Belgium as an associate partner for the company’s public sector business. Prior to joining CSC, Niko Demeester served as chief of staff to Minister Van Quickenborne, who is in charge of Economic Affairs and Administrative Simpliﬁcation. He also held positions as the general director of the General Directorate for Economic Statistics and Information, as a manager at Cap Gemini and as an advisor to the Verbond van Belgische Ondernemingen (VBO)/ Fédération des Entreprises de Belgique (FEB) (the nationwide Belgian employers’ association). Philippe Jaeken, managing director for CSC in Belgium, said: “Niko has a wealth of experience in the areas of politics, public administration and the world of trade and industry that make him a perfect ﬁt for CSC. His deep industry knowledge of these key areas will further support our clients in the Public Sector as they integrate and modernise their business and public administration processes.” CONTACT ISABELLE WINTMOLDERS // [email protected] ACCREDITATION CSC OBTAINS SAP® VALUE MANAGEMENT CERTIFICATION CSC has completed the SAP® Education training and certiﬁcation in the SAP® Value Management methodology. CSC is one of the few SAP partners to achieve this certiﬁcation. The company supports clients by accelerating the time it takes to derive value from investments in SAP solutions. The certiﬁcation provides CSC with SAP methodologies and resources, including high-impact strategies benchmarking, business case development and value realisation tools. CSC will leverage these program beneﬁts to enhance its “Value Capture Approach”, a systematic methodology based on SAP Value Management tools. This approach serves to deliver CSC clients with the business beneﬁts expected from SAP solutions by strategically targeting areas of business for ROI. CLOUD COMPUTING CLOUD SERVICES ACHIEVE SAP CERTIFICATION C SC is one of the ﬁrst global providers of cloud services to be certiﬁed by SAP AG for delivering SAP® solutions to clients through its Trusted Cloud Services portfolio. As such, CSC can deliver SAP applications via a cloud-based model, enabling enterprises to realise the cost savings and efficiencies provided by its entire suite of services. CSC’s cloud services underwent extensive testing by SAP to validate the operational integration of the cloud-computing platform, assessment of the company’s infrastructure, processes and technical staff. The audit also included a technical review of the physical and logical security processes, as well as portal and underlying infrastructure including servers, software and storage capabilities. CSC has been a strategic business partner of SAP for more than 30 years and this certiﬁcation follows a long list of achievements. CONTACT CONTACT MEGAN SHAW// [email protected] MEGAN SHAW // [email protected] PREMIUM / CSC / SPRING 2011 N 5 NEWS Present in 25 countries, the American Group Textron is active within the aeronautic and the defence industry. IT OUTSOURCING THREE YEAR EXTENSION WITH TEXTRON C SC has signed a three-year extension to its global information technology outsourcing agreement with Textron Inc. The extension is valued at 387 million dollars and extends the original agreement through January 2018. As part of the agreement, CSC and Textron will deploy a series of innovative new technologies to drive value and performance for Textron. Under the extension, CSC will also continue to provide IT infrastructure services including management and support of Textron’s global data centres, technology help desk and network operations, as well as mainframe and midrange systems, desktops and engineering workstations. These services have resulted in continued cost reductions over the course of the partnership, while delivering high quality AWARDS BEST BELGIAN E-GOV PROJECT 2010 PREMIUM / CSC / SPRING 2011 T 6 he Belgian Federal Public Service in charge of Economic Affairs is the big winner of the eighth e-Gov Awards organised by Agoria in conjunction with TMAB and Data News. The award for best IT Project went to FPS Economy in recognition of its renewed way of working regarding the national collection of “Statistical Surveys”. To initiate this new way of collecting data from companies, FPS Economy, in conjunction with the DAS (the Department for Administrative Simpliﬁcation), chose to modernise the Economic Structure Survey ﬁrst due to its solid business case: the multi-stakeholder transformation programme, coordinated by CSC, was expected to yield rapid and signiﬁcant business results for all parties. According to Frank De Saer, CIO at the FPS Economy: “Our new Websurvey is now over 90% pre-ﬁlled with information coming from the National Bank, companies’ accounting systems, etc. Our respondents were very keen to work with the new solution. More than 90% of companies responded to the survey electronically whereas the response rate was much lower previously. This results in a yearly cost saving for Belgian companies of 2.17 million euros. The data are available quicker and they are automatically checked and corrected, which is a great help for our internal services: it’s a perfect example of a win-win situation!” CONTACT ELS BULENS // [email protected] IT services to Textron’s businesses. The original 10-year agreement was awarded to CSC in 2005, and since then the partnership has continued to expand globally. CONTACT MEGAN SHAW // [email protected] RECRUITMENT VOLUNTEER WORK CSC AWARDED TOP EMPLOYER STATUS IN BELGIUM FOR THE THIRD CONSECUTIVE YEAR LARGEST BLOOD DRIVE PROGRAMME IN CSC’S HISTORY C SC is one of only 43 Belgian companies to receive the label of “Top Employers 2011” in the contest organised by the CRF Institute (previously known as CRF). Since 1991 the CRF Institute has been collecting and publishing reliable data on potential employers based on objective research. Based on the impartial study, the CRF Institute examines which organisations distinguish themselves in the ﬁeld of the ﬁve HR criteria: primary and secondary employment conditions, education and training, career On 1 January 2010, when CSC kicked off its GiveBlood.GiveLife programme to support organisations like theRed Cross, it had set the goal of collecting 10,000 units. One year later, the people of CSC broke the ceiling, altogether donating 11,048 units across 27 countries, mostly on their own time. In the United States, more than 90 CSC sponsored blood drives were organised across the country. The programme will live on in 2011 with another goal of donating 10,000 units of blood worldwide. And will undoubtedly be superseded… opportunities, and company culture. Only those companies that meet the very strict selection criteria are allowed to call themselves a “Top Employer” for a whole year and to use this exclusive registered quality label to promote themselves on the labour market. “We are extremely pleased to receive this quality label for the third consecutive year,” said Lode Fiey, HR Director of CSC’s Belgian operations. CONTACT CONTACT ISABELLE WINTMOLDERS // [email protected] MEGAN SHAW // [email protected] CHALLENGING INSIGHTS IS THE CHEMICAL INDUSTRY SUSTAINABLE? or the second year, Chemical Week has teamed up with CSC for a survey on sustainability and regulatory challenges. Based on 200 responses and 15 top executives interviews, the key ﬁndings relate to greenhouse gas (GHG) reporting, product stewardship, the EU’s Registration, Authorization and Evaluation of Chemicals (Reach) law and the US Chemical Facility Antiterrorism Standards (CFATS). Results show that corporate leaders are pursuing a broad sustainability and security agenda and sustainability performance management programmes are being implemented at the corporate and plant levels to better understand how GHG emissions and water are being utilised. But some serious challenges remain: while most companies meet their product stewardship goals, those goals are often not fully integrated into the product development process; and less than half of the ﬁrms intend to launch company-wide GHG reporting. CONTACT MEGAN SHAW // [email protected] PREMIUM / CSC / SPRING 2011 F 7 FEATURE CUSTOMER-COMPANY: A COUPLE HEADING FOR A BREAKUP PREMIUM / CSC / SPRING 2011 COMPANIES AND THEIR CUSTOMERS ARE COUPLES WITH A LONG HISTORY, COUPLES THAT HAVE BEEN THROUGH CRISES AND MADE UP AGAIN, COUPLES THAT HAVE BEEN THROUGH BOTH MELODRAMA AND ROMANTIC COMEDY TOGETHER. TODAY THEIR RELATIONSHIP IS UNDERGOING PROFOUND CHANGE, YET REMAINS THE MAIN PREOCCUPATION OF BUSINESSES. HOW WILL THIS “LOVE STORY” EVOLVE? WHAT ARE THE NEW CODES AND NEW PITFALLS? HOW CAN THIS COUPLE MAKE IT TOGETHER WHILE CUSTOMER SCEPTICISM AND MISTRUST CONTINUES TO GROW? CSC’S CUSTOMER INTIMACY BAROMETER UNCOVERS THE RULES OF SEDUCTION TO BE FOLLOWED IN ORDER TO MAKE THIS RELATIONSHIP LAST LONGER THAN JUST A MEETING AND A PURCHASE. PREMIUM TAKES A LOOK AT MARKETING IN THE 2.0 ERA AND EXAMINES FRAGMENTS OF THIS NEW CUSTOMER-COMPANY DIALOGUE. 8 9 PREMIUM / CSC / SPRING 2011 FEATURE F PREMIUM / CSC / SPRING 2011 or a long time it has been companies that have deﬁned the relationship they want to have with their customers, possibly giving them the opportunity – if their operational model allowed it – to express themselves. It was only a possibility, almost a favour. Globalisation, the rise of 2.0 and the intangible economy has changed all of this completely. Today customers can inform themselves, compare offerings in real time, ask their peers questions, speak their mind and criticise. Customers have become more powerful, more expert, more demanding, and correspondingly much less loyal in a highly competitive world. The unilateral relationship between companies and their customers that has until recently prevailed is now changing completely. A new balance of power is emerging: with greater autonomy, customers aspire to play a more active role in deﬁning their expectations and the ways in which companies respond to them. There is a shift toward an interactive relationship more closely resembling a partnership. “All the recent changes herald the central role that the customer relationship will play in determining corporate performance,” concludes Claude Czechowski, President and CEO, South and Western Europe, at CSC. “The difference will be made by companies’ ability to integrate customers’ need for mobility, and the ability to respond to their speciﬁc needs. We’re moving to a personalised approach based on continuous dialogue.” So there is a shift from customer relationship to “customer intimacy” – which is the focus of the latest Barometer survey carried out by CSC among roughly one hundred European corporations. What are the codes in this new relationship? What has changed? Premium offers six seduction tips for keeping the customer-company couple together. 10 C ustomers are becoming nomadic, mobile terminal use is skyrocketing, and the mobile phone is in the process of becoming the primary channel. In an ultracompetitive world in which loyalty cannot be taken for granted, being everywhere your customers are is of strategic importance if you don’t want to be left behind. Being close to them means offering information and services that are accessible every time customers need them. This means having a real multichannel strategy, in particular for mobile terminals (smartphones, tablets with touch screens, etc.), which are currently not being taken sufficiently into account. To be as effective as possible, this strategy has to capitalise upon the complementarity of physical and dematerialised networks, and also on their interoperability in order to simplify the customer experience as much as possible. Let customers I n this time of globalisation, brands are tending to become more distant from their target audiences. There is a certain harmonisation in communication and products. A pitfall, according to Michel Phan, marketing specialist and holder of the LVMH chair at ESSEC, a leading business school based in Paris : “Lost in the masses, customers feel like they are only a number, resulting VIEWPOINT YVES DE BOHAN, CEO OF LAURENT PERRIER BELGIUM “For understanding the customer there is one golden rule: ﬁeld work. This is a constant feature in the luxury sector: the more upmarket the product, the more knowledgeable you must be about all topics – business-related or otherwise. And this can go quite far! In a luxury hotel, for example, you must identify who is responsible for purchases, but also where the “spheres of inﬂuence” are. If the sommelier or the bartender has no connection with your brand, they will not serve it. This knowledge takes a long time to develop.” choose – the key aspect is to always be there where they expect to ﬁnd you. If you stand the customer up, someone else will be there to take your date. in an increased need for differentiated treatment and personalisation.” Seducing the customer means offering personalised products and services aligned with their needs and aspirations. It also means sharing their values, a real strategic challenge in a society which is looking for meaning and points of reference. Although price is still important, it is no longer the only argument that will sway consumers. S haring values and offering personalised services to customers assumes that you know them well. The challenge is to gather and use customer data efficiently in order to understand their expectations. The development of tools for gathering information, databases, and segmentation and behavioural techniques offers vast possibilities for businesses to invest in. Signiﬁcant effort is still needed, however, in terms of listening to messages coming from the ﬁeld. The vision of marketing departments is often focused on their own activity, and the channels for pulling in information are still poorly managed. This is a real loss: players in the ﬁeld that are in direct and regular contact with customers are fundamental information relays, vital for building up relevant customer intimacy. KRIS VERVAET, VICE PRESIDENT MARKETING BELGACOM “We invest a great deal in collecting information that enables us to create a dialogue that is as authentic as possible, far removed from mass marketing, slogans and undifferentiated promotions. In fact, it’s been much simpler since BelgacomTV was launched. Our understanding of our customers’ habits and preferences is continuously improving, and our customer intelligence department analyses its data methodically.” F lourishing relationships don’t cope well with mood swings and manic-depressive cycles. What is the value to the customer of a store that gives a royal welcome but fails to deliver on time? Building a strong bond with the customer depends on a constant preoccupation with that customer, in every step of the relationship. All the company’s departments, staff and processes must be involved. Operational models need to be overhauled to embed this preoccupation with the customer throughout the business. The staff needs to be imbued wit h a genuinely customer-centric culture, while still leaving enough autonomy to those in direct physical or virtual contact with consumers. VIEWPOINT YANNICK GRÉCOURT, DIRECTOR, STRATEGY AND MARKETING, DEUTSCHE BANK BELGIUM “Reinforcing customer intimacy is not just about equipping yourself with efficient analytical tools. Above all, you have to rethink all product, commercial and marketing approaches, as well as the information systems to support the offering. That takes time. It also requires the will to change, because everything evolves much more quickly. Basically, don’t ask customers what they want if you’re not willing to change your offering and way of working.” PREMIUM / CSC / SPRING 2011 VIEWPOINT 11 VIEWPOINT SOPHIE HELLER, W ith the explosion in information technology, people have a powerful desire for freedom, commitment and participation. The emergence of concepts of participative democracy, the liveliness of the social community and even the explosion of social media all illustrate this. In this context, these media (in particular blogs and forums) are powerful tools for information, dialogue and interaction with consumers. In certain sectors, businesses are increasingly involving their customers in the co-creation of their offerings and services. They thus become contributors to the business, cooperating to deﬁne offerings aligned with their expectations, a real partnership that ensures satisfaction and stronger association with the brand. VICE PRESIDENT, MARKETING AND COMMUNICATION, ING DIRECT “We launched a blog to think about how to deﬁne a mobile application. 70 clients took part in the discussion. Their contribution inﬂuenced the choice of terminal (iPhone) – but also the services offered, the usability and the design. They also beta tested the application. When it was released, it became the number one ﬁnancial application, with one of the best ratings on the market. In parallel, the clients that participated in the deﬁnition of the product felt extremely highly valued.” The responsiveness and smoothness of interactions are becoming elements that deﬁne the customer experience. VIEWPOINT PHILIPPE BERNARD, PREMIUM / CSC / SPRING 2011 EXECUTIVE VICE PRESIDENT SALES & CARE EUROPE, ORANGE 12 T ime is an increasingly scarce resource, and in a complex world, customers continue to seek greater simplicity. The responsiveness and smoothness of interaction are becoming elements that define the customer experience. Today they are priority objectives for businesses. However, perceptions differ signiﬁcantly between the company and its customers. You think your customers are satisﬁed, but are they really? Measuring satisfaction in real time is the preferred tool for rapidly taking corrective action. Responsiveness is essential; in the era of social networks, your customer can rapidly become your best ambassador or worst detractor. Recall: 78% of customers trust ﬁrst and foremost the opinions of their friends and peers. “18 months ago, in an English-speaking country, the ratio of promoters to detractors for Orange wasn’t very good. According to the NPS, Net Promoter Score, we were far behind the market leaders. So we decided to measure the performance of our agents on the front line of managing the customer relationship. The questions were very simple: Have I taken good care of you? Have I solved your problem? And so on. Today Orange is back at the same level as its competitors. This measure enabled our staff to become aware of the need to improve the customer relationship and also to understand how to serve them better.” CUSTOMER INTIMACY: THE DASHBOARD HOW ARE BUSINESSES APPROACHING CUSTOMER RELATIONSHIP MANAGEMENT IN THE ERA OF CONTINUOUS 2.0 DIALOGUE AND NOMADIC CUSTOMERS? WHAT ARE THEIR PRIORITIES? BELOW IS AN OVERVIEW OF THE MAIN INSIGHTS FROM CSC’S CUSTOMER INTIMACY BAROMETER. 3% 30% Customer intimacy 53% Operational excellence Product superiority Don’t know WHAT IS THE COMPANY’S PRIMARY STRATEGIC BASIS FOR DIFFERENTIATION? 53% of the companies surveyed consider customer intimacy as a strategic basis for differentiation for their organisation. Three quarters of companies claim they listen to their customers in order to improve their offering; 30% go further and are counting on anticipation in order to exceed customer expectations. 34% OF COMPANIES CARRY OUT REGULAR SATISFACTION SURVEYS Businesses have set up systems to gather feedback from their customers in order to improve their offerings and the customer experience. However, the pathways for moving this information upwards have remained rather traditional, and do not capitalise upon the channels that enable direct contact with customers. Information originating from physical networks, call centres, and mail is only used to a limited extent, whereas these networks are the ﬁrst point of contact for customers MULTICHANNEL STRATEGY PRIORITY GIVEN TO THE INTERNET: AND SOCIAL NETWORKS: 48% 39% Businesses have understood the need to develop multichannel approaches in order to reach customers that are both nomadic and ﬁckle. Taking the increasingly autonomous and proactive behaviour of consumers into account has resulted in the development of tools for automating tasks on the internet or via extranets, but also in investments in social networks, blogs, forums and other community spaces. PREMIUM / CSC / SPRING 2011 14% 13 EXPERIENCE ANTALIS TRIPLE MERGER IN THE NETHERLANDS PREMIUM / CSC / SPRING 2011 AFTER ACQUIRING ITS COMPETITOR MAP, ANTALIS MERGED ITS ACTIVITIES IN THE NETHERLANDS. THIS BROUGHT TOGETHER THREE ENTITIES AND RESULTED IN THE CREATION OF A NEW ULTRAMODERN WAREHOUSE AND THE MIGRATION TO A NEW ERP SYSTEM AND WMS (WAREHOUSE MANAGEMENT SYSTEM). ON THE BASIS OF A LONG-STANDING PARTNERSHIP, CSC WAS CHOSEN TO MANAGE THIS AMBITIOUS PROJECT, IN PARTICULAR THE ERP AND WMS ASPECTS. 14 In 2007, the acquisition of Map Merchant elevated Antalis to the top ranks of European paper and communication support materials industry. This acquisition enabled the French group to reinforce its geographic coverage, in particular in the Netherlands, where although it was already present, Map had two major subsidiaries. In order to further develop the Antalis brand in the Netherlands and fully exploit potential synergies, Antalis brought together these three businesses into a new legal and commercial entity, Antalis BV. This merger, along with that of ﬁve warehouses, into a single organisation on a single site was one of the largest transformation projects undertaken by the group. With the help of CSC, a long-standing partner, Antalis was able to successfully complete this triple operation – consolidating business, IT and logistics – within eighteen months. The cooperation between Antalis and CSC dates back to 2005, when the group entrusted CSC with the standardisation and deployment of its group information system and its subsequent roll-out to all its subsidiaries. In the course of these projects, the relationship between the two partners Antalis is the number 1 in Europe and number 4 worldwide in the distribution of communication support materials. was built up, and it was a natural choice for Antalis to call upon CSC to support it during the operational merger in the Netherlands. “Today we can capitalise upon our mutual trust and valuable technical and business experience,” explains Philippe Menillet, IT Director at Antalis. Responsible for supporting, implementing and managing this ambitious project, the CSC team started in July 2008 by launching a planning phase that highlighted three major activity areas: Bytes, Business and Bricks. Firstly, the information system, with the deployment of the group’s core model (“Bytes”). Secondly, the business, with change management and total overhaul of all operational processes and the formalisation thereof in the context of an ISO certiﬁcation (“Business”). And lastly, the setting up from scratch of a warehouse and corresponding management system (“Bricks”). EXCELLENCE IN LOGISTICS, A STRATEGIC IMPERATIVE This last area – “Bricks” – is crucial for Antalis, which has placed excellence in logistics, and its ability to deliver to clients on a Day+1 basis, at the heart of its strategy. To optimally serve the KEY FIGURES “Today we can capitalise upon our mutual trust and valuable technical and business experience.” PHILIPPE MÉNILLET, IT DIRECTOR, ANTALIS 2.8 30,000 6,900 2.3 billion euros in revenues orders daily employees million tonnes of paper delivered annually 230,000 clients one, it is indispensable to create real team spirit and customer intimacy in order to be responsive,” emphasises Guillaume Rivet, partner at CSC, in charge of the programme. THREE AREAS OF ACTIVITY, THREE SUCCESSES Each team went on to successfully complete its mission. The information system was deployed on the basis of the best practices of the group and taking into account the speciﬁcities of the Dutch market. The documenting of the ISO procedures enabled Antalis to renew its certiﬁcation before even starting its activities – a rare accomplishment. Lastly, the building was delivered in mid-2009, despite the double conceptual and technological difficulty of conﬁguring the management processes for a warehouse that did not yet exist. The teams were transferred in October, and the solution was put in production in early January 2010. “After a period of adaptation of several months due to the change of system, the users went on to embrace the IT tool as a means to drive operational optimisation,” states Philippe Ménillet, who also highlights the essential role played FOCUS ANTALIS Antalis is the number 1 in Europe and number 4 worldwide in the distribution of communication support materials. The activities of Antalis cover four domains: Print, Office Paper, Packaging and Visual Communication. Present in 51 countries worldwide and with a global network of 3,000 representatives, Antalis places the satisfaction of its customers – printers, resellers, corporations and communication agencies – at the heart of its strategy, and offers them an unequalled range of products and delivery capabilities. by CSC. “CSC was able to mobilise the necessary competences which, in addition to an excellent understanding of our business and culture, enabled us to always ﬁnd solutions when we encountered problems.” New premises, new business processes, a new organisation – Antalis BV used the merger as an opportunity to reinvent itself and is now well positioned to realise the ambitious goals it has set itself for the years ahead. CONTACT GUILLAUME RIVET // [email protected] PREMIUM / CSC / SPRING 2011 Dutch market, the solution chosen was to create a single ultramodern distribution platform to replace the ﬁve regional warehouses. “This meant building a 27,000 m2 warehouse capable of handling the same order volumes as the 45,000 m2 of warehouse space we had previously,” summarises Stéphane Courtot, General Manager Western Europe at Antalis. To achieve this, the solution optimises internal ﬂows and makes use of the most advanced functionalities of the warehouse management module SAP WM, namely the SAP TRM (Task and Resource Management) tool. In order to coordinate and carry out the various tasks, CSC mobilised competences all over Europe by calling upon its different competence centres: the specialists in the Antalis core model came from France, the team in charge of documenting the procedures for the ISO certiﬁcation in Dutch came from Belgium, and the experts in the warehouse management solution were from Spain. In total, people of twelve nationalities worked side by side on the project team. “Competences however are only one element of success. On an ambitious international project like this 15 EXPERIENCE FRENCH POST OFFICE FINANCIAL INFORMATION SYSTEM AT THE HEART OF BUSINESS TRANSFORMATION OF “L’ENSEIGNE LA POSTE” LOOKING FORWARD TO THE OPENING UP OF THE POSTAL SERVICES TO COMPETITION ON 1 JANUARY 2011, AND IN RESPONSE TO DEVELOPMENTS IN REGULATORY REQUIREMENTS, THE LA POSTE GROUP HAS BEEN COMMITTED TO PROFOUND TRANSFORMATION FOR SEVERAL YEARS ALREADY. This transformation involves in particular greater autonomy for its various businesses: Post, Packages, La Banque Postale real estate asset management and, under the name L’Enseigne La Poste (ELP), the network of 17,000 post offices and contact points in mainland France and its overseas territories. Since 2007, each business has had all the management tools necessary and is responsible for producing its own ﬁnancial statements. Following the reorganisation into businesses, the La Poste group instructed its various divisions to restructure their ﬁnancial information system around SAP. Responsible for the network of post offices, L’Enseigne La Poste has made this implementation one of the key drivers of its strategic transformation. In the autumn of 2008, the ﬁnancial management team of L’Enseigne launched its SAP project, with the help of CSC. This programme, Sym onie, will enable it to achieve a double objective in within two years: overhaul its processes and support the strategic development of L’Enseigne. PREMIUM / CSC / SPRING 2011 ALIGNING THE FINANCE FUNCTION WITH THE BUSINESS STRATEGY 16 As a transverse business, L’Enseigne ensures a uniform and reassuring interface is maintained between the vast number of individual and SME customers of the group and the Post, Packages and La Banque Postale activities. Contributing to overall value creation on the basis of the quality of the service provided, L’Enseigne has a strategy based on three main pillars: improvement CÉCILE RÉVILLARD, ACCOUNTING MANAGER AT L’ENSEIGNE LA POSTE. PIERRE SOUSSY, PROGRAMME DIRECTOR FOR SYM ONIE. of the customer relationship, commercial development and economic performance. By enabling the implementation of a management model and greater operational efficiency, Sym onie is a key element of the ﬁnance department’s contribution to this strategy. “The implementation of SAP was essential, but technology should remain a means to realise our transformation,” emphasises Stéphane Zakarian, CFO of L’Enseigne. In the overall roadmap for the programme, which continuously guides its activities, the overhaul of the system is only one of the targets, along with further development of the organisation, its processes and its competences. Having grasped the scope of this project in terms of the business, in particular by proposing the use of the Retail version of SAP, was one of the factors that drove the choice of CSC as systems integrator. “The group chose SAP for its functional richness, guaranteed continuity and FOCUS THE SYM ONY PROGRAMME IN FIGURES 3,400 users, among which 1,400 staff in the ﬁnance department (general and analytic accounting, management control, procurement and sales administration) and 2,000 requisitioners of L’Enseigne (excluding the ﬁnance department). Rolled out in 210 geographic locations (mainland France and overseas territories). 30 months to deﬁne and put in place the solution (September 2008-March 2011). 150 active participants in the programme. 400 training sessions spread across 8 SAP modules (FI, CO, MM, SD, BW, SIM, SRM, Solman). robustness; but we also had to choose the module, and CSC immediately understood the nature of our distribution network,” explains Pierre Soussy, Programme Director for Sym onie. Another aspect which drew CSC’s attention was the enormous scale of the project. With 17,000 offices carrying out thousands of different operations every day, an accounting entry is generated every two seconds which has to be handled by the system. Ultimately it will be one of the largest SAP data repositories in Europe. Sym onie also encompasses six business projects, linked to the major ﬁnance departments. On its own, accounting involves roughly 1,000 users, and the procurement process, entirely dematerialised, encompasses no less than ﬁfteen categories of items, ranging from furniture to fund transport. “Despite the scale of the task, the challenge has always been to safeguard the overall coherence of the solution and to reconcile needs – without devaluing them – with the standards of the software and volume constraints,” stresses Michel Rebillard, KEY FIGURES “The implementation of SAP was essential, but technology should remain a means to realise our transformation.” 17,000 contact points, in mainland France and its overseas territories 65,000 3.4 billion euros in revenues 2 million customers served daily employees STÉPHANE ZAKARIAN, CFO, L’ENSEIGNE LA POSTE partner at CSC, in charge of the programme. FRONT LINE: THE BUSINESS Throughout the duration of the work, the programme management ensured a sustained pace and maintained the interface between all parties involved, in particular where transverse processes were concerned. From the start, the business was the front line for translating the major goals of Sym onie into operational terms. Ensuring the cascade of information from the office network on a daily basis, aligning management and accounting cycles, reducing the time needed for closing, and improving productivity thanks to standardisation of processes and the adopting of best practices. “The functional departments played a key role in the management of change, thanks to a very thorough and participative approach, which made it possible to improve processes and working methods even before the new IT system was put in place,” explains Cécile Révillard, Accounting Manager at L’Enseigne. This meticulous organisation, under the watchful eye of a ﬁrm and attentive sponsor, made it possible to deliver on the promises of Sym onie: run in parallel, and within the agreed deadline, both operational transformation and IT development. In the autumn of 2010, the users immediately adopted the new and particularly user-friendly tool, designed to help L’Enseigne face the challenges ahead of it in the coming years. “This success was made possible by the mobilisation of everybody around strong guiding principles, and – thanks to the competence and availability of our partners at all levels – CSC aligned itself perfectly with this approach,” concludes Stéphane Zakarian. CONTACT ELS BULENS // [email protected] PREMIUM / CSC / SPRING 2011 A French state owned enterprise, La Poste is the second largest postal services provider in Europe. It offers customers of all kinds services in three primary areas: Post, Packages and La Banque Postale. Distribution and the providing of these services at local level is done by the post office network, managed by l’Enseigne La Poste. 17 EXPERIENCE VDAB FLEMISH AGENCY FOR EMPLOYMENT AND VOCATIONAL TRAINING (VDAB – VLAAMSE DIENST VOOR ARBEIDSBEMIDDELING EN BEROEPSOPLEIDING) ADVANTAGES AND PITFALLS OF CLOUD COMPUTING. “CLOUD COMPUTING ENABLES COST SAVINGS AND IMPROVED SERVICE,” STATES PAUL DANNEELS, CIO OF THE FLEMISH AGENCY FOR EMPLOYMENT AND VOCATIONAL TRAINING (VDAB). BUT THAT DOESN’T MEAN THE NEW MODEL IS A PANACEA. ONLY THOSE THAT MAKE THE RIGHT CHOICES GET THE MOST BENEFITS FROM IT. Cloud computing is a new and alternative delivery model for IT services which goes far beyond classic outsourcing. In this model, various services linked to data, infrastructure and applications are made available in a network, the so-called “cloud”. The user can select applications as needed, and is charged on a pay-per-use basis. The VDAB was the ﬁrst major Belgian public sector organisation to see the opportunities cloud computing offered, after a cloud adoption assessment by CSC. PREMIUM / CSC / SPRING 2011 LOWER COSTS, GREATER FLEXIBILITY 18 “The cloud is becoming a hype in the IT world,” admits CIO Paul Danneels. “Many suppliers are hosting their services and products in the cloud, but not always in an equally well-considered out manner. The principle of the cloud is not applicable or advantageous for everything.” Concretely, the cloud is a breakthrough as regards the management of infrastructure and licenses, and the cooperation with suppliers. Software licenses or CRM applications no longer need to be installed on individual PCs. They’re in the cloud, and the client only pays when using them. Data no longer needs to be stored locally, but is instead accessible on a much more powerful platform. The possibilities are endless. “Our greatest expectations are related to cost savings,” explains Paul Danneels. “These are much greater with the cloud than with classic shared services, thanks to economies of scale. Everything here is done for a large community.” The new model is also advantageous for providing services. As users are no longer bound to their internal structures VDAB (Flemish Employment and Vocational Training Service) is the Belgian public authority for the co-ordination of the labour market in Flanders. KEY FIGURES jobseekers choose from “That’s why the VDAB ﬁrst cooperated with CSC to explore what the opportunities were for us in terms of the business and IT. On the basis thereof we deﬁned a clear strategy, and translated it into a roadmap.” employers choose from 98,608 22,064 job offerings cv’s provided 13 million training hours to 55,695 people per year and procurement processes, ﬂexibility increases. “In addition, the quality of the services delivered is just as high as with the traditional way of working,” comments Danneels. A WELL-CONSIDERED LONG-TERM PLAN The VDAB is running an initial pilot project involving the migration of the group email solution to Google Enterprise mail, in the course of 2011. The “.vdab” in the e-mail address will remain, and the storage capacity of the mailboxes will become much greater: 25 gigabytes as opposed to 1-2 GB with shared services. And above all, it’s two to three times cheaper. The long-term plan includes several other projects. The ‘Guide to the Flemish Employment Market’ reporting tool – which contains a wealth of data on population, jobs and unemployment – will be made available via the cloud. The same will be done for training courses, enriched with multimedia applications. And these are just a few examples. The beneﬁts are always the same: thanks to the enormous storage capacity, information is rapidly available and cheaper. Working via the cloud does however imply that organisations have to hand certain data and applications over to third parties. Potential users fear that this may lead to lower security levels and greater risks in terms of conﬁdentiality. “It’s the typical fear of the unknown,” asserts Danneels. “Cloud computing clashes with the usual way of working, and that creates resistance. It is of course true that some components have to be detached from the rest and migrated to the larger platform. That’s why you have to think carefully about which strategic data and applications you want to keep nearby in your own data centre, and which can be hosted further away. It would be wrong to just shift everything blindly to the cloud.” GOOD COMMUNICATION “Think before you act” is thus the key message that the CIO of the VDAB wants to pass on to others that might be interested. The CSC study with its data classiﬁcation was crucial for identifying data and services that can be migrated to the cloud, and whether that is technically feasible within the organisation’s IT architecture. The detached data still needs to be integrated into the internal data centre. “In other words, don’t be too hasty; think ﬁrst about ‘what’s in it for me?’” Responsibility is also an important point for attention. Legally binding and robust commitments need to be put in place for services, service levels and support models in all areas. In the area of privacy, clear agreements with the cloud supplier are a must. Lastly, good internal communication is crucial, bearing in mind that a major change in the way of working is involved. “Everyone in the organisation needs to have a good understanding of what we’re trying to achieve, and what will change for them,” explains Paul Danneels. “That’s why an internal support organisation is so important. For many people, the cloud is something intangible, somewhere far outside their trusted working environment. There have to be people that staff can always call upon for help. These contacts are the real link between the cloud and the earth.” CONTACT ELS BULENS // [email protected] PREMIUM / CSC / SPRING 2011 PAUL DANEELS, CIO OF THE FLEMISH AGENCY FOR EMPLOYMENT AND VOCATIONAL TRAINING 19 TRENDS CFO BAROMETER: A TIME OF OPPORTUNITIES? AS THE CONSTANT GUARDIANS OF PROFITABILITY AND RISK MANAGEMENT, FINANCE DEPARTMENTS NOW NEED TO DEVELOP THEIR VISION FOR THE FUTURE AS REGARDS GUIDING GENERAL MANAGEMENT IN LONG-TERM STRATEGIC DECISION MAKING. THIS IS THE CONCLUSION OF THE LATEST CFO BAROMETER, A SURVEY OF THE CFOS OF 80 MAJOR EUROPEAN CORPORATIONS CARRIED OUT BY CSC IN COOPERATION WITH TNS SOFRES. After having reduced their investments and drastically cut costs and working capital requirements, large European groups have by and large recovered. Proﬁts have returned to close to historic levels, and comfortable cash reserves have been built up. PREMIUM / CSC / SPRING 2011 A STRONG DEMAND FOR RESPONSIVENESS 20 This performance illustrates an admirable ability to adapt to a deteriorating environment with reduced visibility. However, in certain sectors there are still only two to three months of orders on the books, as opposed to six to twelve before the crisis. The cycles of the business (R&D, production, sales, etc.) have also been shortened correspondingly, and time is currently the key factor in decision making processes. This holds true more or less everywhere, and has been felt particularly strongly in the automotive industry, which is accustomed to long cycles and is now having to adapt to shorter cycles, greater variability in demand and high volatility in raw materials prices. Businesses need to be responsive in order to revise their resource allocation at a moment’s notice. And this dominance of the short term of course has an impact on ﬁnance. CFOs are expected to be able to respond to requests for information in real time. In general, they need to rethink and adapt their management and forecasting processes in order to boost their own responsiveness and compensate for poor long-term visibility. This results in an increased need for management tools that make it possible to take strategic decisions in a very short time. In this context, “organisation 2.0” seems increasingly to be the solution that will enable applications and reporting tools to be connected via collaborative portals, and make it possible to gather data while at the same time responding to greater demands for analysis, compliance with standards and norms, and key performance indicators. THE NEED FOR LONG-TERM STRATEGIC VISION Finance departments must of course master all the factors that inﬂuence forecasting in order to provide top management with the elements necessary for decision making. But the crisis has conﬁrmed one fact: managing on the basis of costs and margins is insufficient. More than ever before, CFOs need to be involved in the long-term strategy of the company. Developing the ability to redeﬁne plans for growth and investment is one of the major challenges of the economic upturn. Now that cash reserves have been spectacularly built up again in 2010, they need to be invested in line with the long-term strategic vision of the company. For example, in emerging markets where growth is still to be found. The goal of ﬁnance departments is not only to manage treasury operations and MASTERING THE TIME HORIZON short-term survival, but rather to look beyond the crisis and capitalise upon the opportunities offered by the disruptions currently underway. This implies a new state of mind that could take shape in the form of closer support of operational departments, to help them act on growth opportunities while giving them greater responsibility thanks to a more decentralised organisation. DEVELOPING MANAGEMENT FORECASTING Here too ﬁnance departments need to equip themselves with appropriate tools. In an environment with limited visibility, marked by changes in the nature of risk (increased volatility of currencies, skyrocketing raw materials prices, lack of conﬁdence in banking counterparties, the analytical complexities of hedging operations, emergence of new environmental risks, etc.) and changes in regulatory frameworks, the demand from top management for insight into the future and alternative scenarios is becoming ever stronger. Although the demand for detailed reporting is still present, it is accompanied by the search for forecasting tools that augment the company’s strategic vision. In addition to short-term management in response to accelerating business cycles, management forecasting must enable the business to identify new opportunities and steer an appropriate course in function of ﬁnancial and operational factors. The goal is to support the company in its strategic decision making and judgement in terms of investments, acquisitions and divestments, enabling it to be selective when evaluating projects and to safeguard the return on capital employed. CONTACT JEAN MICHEL BOUHOURS // [email protected] PREMIUM / CSC / SPRING 2011 72% For of the CFOs surveyed, mastering the time horizon in management forecasting is a priority. They need to take into account both short-term risks and long-term opportunities. Top management needs ever greater insight into the future and to be able to evaluate alternative scenarios. Although the demand for detailed reporting is still present, it is accompanied by the search for forecasting tools that augment the company’s strategic vision. It is thus no surprise that major corporations such as Société Générale or Valéo have just unveiled 5-year strategic plans. 21 TRENDS THE FUTURE OF HEALTHCARE: IT’S HEALTH, THEN CARE PREMIUM / CSC / SPRING 2011 HOW CAN HEALTHCARE PROGRESS TO MEET THE PATIENT POPULATION AND ECONOMIC CHALLENGES IT FACES? CSC’S LEADING EDGE FORUM TAKES A LOOK AT HOW TECHNOLOGY CAN SUPPORT MORE PROACTIVE APPROACHES THAT PROMOTE WELLNESS AND STAYING HEALTHY. 22 Healthcare in the 21st century faces serious challenges. Not only must it cater to an aging population while facing shortages of care providers, an increase in chronic conditions such as diabetes, and growing global obesity; it is also beset by increasing costs and ﬁnancial constraints. To address these major problems, healthcare needs to make signiﬁcant disruptive changes, according to “The Future of Healthcare: It’s Health, then Care”, a new research report by the Leading Edge Forum (LEF). Traditionally, healthcare has been delivered using a physiciancentric model. When people felt unwell they saw their doctor, and if necessary received further care in a hospital setting. This model worked when little was known about prevention, there were few diagnostic tests and limited treatment options. However, advances in medicine on all fronts make this model outdated. For the future, LEF says, the practice of medicine follows a patient-centric care team model with new members and new roles. In addition, healthcare’s reach expands to include wellness monitoring, prevention and earlier disease detection. Of course, people will still get sick and require medical attention, and when they do there are new advanced medical treatments that speed healing, with improved quality of life and health outcomes. This model relies on technology to put medical knowledge and tools into the hands of patients to proactively monitor their own health and wellness. New technologies also improve interactions between clinicians and patients and empower changes in their roles, and are enabling advances in detection and treatment. MAJOR HEALTHCARE INDUSTRY TRENDS AND DISRUPTIVE TECHNOLOGIES Fortunately, changes are already in progress. There are a myriad of burgeoning efforts in laboratories, in pilot studies, in clinical trials and in practice. The changes these efforts represent, and the implications of the key technologies involved, are presented in the context of ﬁve major trends that are disrupting healthcare, as listed below. The trends focus ﬁrst on patient-centric initiatives, and then on new developments, care providers, and ﬁnally on an emerging global health system. 1. Empowering the patient – E-power to the patient Patients take on a larger, more active role in managing their health. They are in charge of their care management on a daily basis, with a ‘shared care’ relationship with their provider. BRAVE NEW HEALTHCARE: SMART STICKING PLASTERS What if a person’s heart rate could be checked regularly by simply wearing a plaster? The US Food and Drug Administration (FDA) recently approved Proteus Biomedical’s wireless adhesive sensor technology, called Raisin, which can track and record a patient’s heart rate, physical activity, body Patients are empowered through the availability of health information, new health and wellness applications and support systems to encourage and monitor progress, all available using smartphones or other Internetenabled technologies (see box). 2. Earlier detection Accelerating diagnosis is crucial to successful treatment for, if not prevention of, a health problem. Supporting technologies range from simple, inexpensive paper lab tests to breath tests that detect cancer and diabetes, to genetic testing for variants aligned to known health problems. 3. High-tech healing New technology-based solutions can improve care and the long-term quality of life. Next-generation implants and ingestibles use a number of technologies to monitor disease position and other biometrics. Raisin is worn like a plaster and transmits the data via Bluetooth to a PC or mobile device. This eliminates the need for medical visits to check heart rates, and since they are monitored continuously, adverse events can be spotted right away. progress, dispense medications, and assist and replace malfunctioning organs and limbs. 4. Resources: more, but different New care models optimize clinical expertise and allow care delivery to be spread across a number of resources. Included in the care team are physicians, nurse practitioners, nurses, medical assistants, care coaches, patients, and their families – all connected by new technologies. Care resources are also more accessible through remote technologies and online communities, for direct care and consultation. 5. Global healthcare system emerges More is better. The increased baseline of information about patient care, outcomes, research study results, adverse events, disease surveillance, and population health will result in better care, and better and faster research. In the future, data are shared among the care team members anywhere they may be located, allowing them to make the best diagnostic and treatment decisions. Through a network of networks, different data sources and larger populations are valuable resources to support collaborative research among care providers, life science companies and researchers to solve the toughest health problems. Healthcare will always be local, but with a global knowledge base to draw from, the local care team is better equipped to make the right decisions, LEF believes. This global-local dynamic will evolve to create a healthcare system that promotes health, well-being and better health outcomes for all. CONTACT DOWNLOAD FRANCES TURISCO // [email protected] www.csc.com/lefreports PREMIUM / CSC / SPRING 2011 FOCUS 23 FACE-TO-FACE BIOGRAPHY PREMIUM / CSC / SPRING 2011 Having joined BNP directly after his studies at the École polytechnique, Yves Martrenchar has spent his entire career in the retail banking division. He set up the ﬁrst “Products and Markets” marketing department and went on to lead the Retail entity of the retail banking division in France. Today he is responsible for Distribution, Markets & Solutions, and is COO of BNP Paribas Retail Banking. 24 “RETAIL BANKING IS THE REAL ECONOMY” Yves Martrenchar, Chief Operating Officer of BNP Paribas Retail Banking. BANKS ARE AMONG THE LARGEST CORPORATIONS IN THE WORLD, BUT THEIR MARKETS, PROTECTED BY CULTURAL AND REGULATORY BARRIERS, OFTEN REMAIN DOMESTIC. HOW TO BECOME A GLOBAL PLAYER IN THIS CONTEXT? CAN THE SAME BUSINESS MODEL REALLY BE IMPLEMENTED IN BRUSSELS, KIEV, ROME OR SAN FRANCISCO? PREMIUM ASKED YVES MARTRENCHAR, CHIEF OPERATING OFFICER OF BNP PARIBAS RETAIL BANKING. YVES MARTRENCHAR: Very few European banks are present in several Western European countries: in addition to BNP Paribas, the other main players are Santander, Crédit Agricole, Unicredit and HSBC. A sort of Champions League, as it were. Today BNP Paribas is the only bank with a signiﬁcant presence in retail banking in four eurozone countries: France, Italy, Belgium and Luxembourg. And our market penetration is considerable: out of a population of 135 million in those four countries, we have 14 million private clients. DO YOU EXPECT A TREND TOWARDS CONSOLIDATION? Y.M.: Since we acquired Fortis, which enabled us to enter the Belgian market, there has not been another major transaction and banks are currently facing new capital constraints. I don’t think that large scale consolidation is very likely in the short term. RETAIL BANKING IS STRONGLY LOCAL IN CHARACTER. WHAT ADVANTAGES DOES YOUR INTERNATIONAL NETWORK GIVE YOU? Y.M.: Having an international network makes it possible to share knowhow and innovation. We can also pool certain resources and investments. For instance, we’re going to standardise the processing of all card operations, whereas we currently have 21 different systems! The challenge is to maintain a balance between horizontal integration – which yields synergies – and the necessary closeness to our clients. When we deploy our integrated model in a country, our goal is to embed ourselves in the local economy, and build rich and lasting relationships with our clients, both corporate and private. IS THERE SUCH AS THING AS A GLOBAL CLIENT? OR A EUROPEAN CLIENT? Y.M.: Every country has its own particularities, and its own banking culture. We can distinguish between developed countries and emerging countries, where the middle classes are beginning to have access to the banking world. However, the studies we have carried out highlight many common elements. In all countries, clients want an offering that is both competitive and safe – and ﬂexible, to respond to the increasing demand for personalisation. The relationship aspect is important: clients value competence, responsiveness and proactivity. They also want stability: they don’t like it when their contact person changes too often, and they expect their own customer history to be taken into account. These are the basic characteristics of a global client, even if certain traits are more strongly emphasised in any given country. For example, the acceptance of banking costs varies considerably from one country to another. AND CORPORATE CLIENTS? Y.M.: For companies, the model is centred on business centres – we have 150 of them in 23 European countries. The initiative “One Bank for Corporates in Europe” is the expression of our determination to support them in all the markets they’re present in, by building close relationships around a complete range of services: cash management, leasing, factoring, credit, trade solutions, etc. We also deploy personalised information systems and sales support tools on the workstations of our advisors and call centre advisors. HAS THE ROLE OF ADVISOR CHANGED? Y.M.: Today advisors are operating within an increasingly directed environment, and using leading edge decision support tools. That said, initiative and commercial talent remain determining factors. Being able to listen to the client, and daring to ask the right questions in order to propose a tailored response: that’s the key competence! Availability is another: you need to be able to juggle leads, appointments and unexpected calls from clients… And that’s a talent that depends on more than just an information system! WILL THE BANK OF TOMORROW BE VERY DIFFERENT? Y.M.: Not fundamentally. In recent years the internet has become important, and mobile banking is accelerating – in terms of information and services, but also in commercial terms. However, this isn’t really a revolution for us. Given that we have a genuinely integrated multichannel model, the main challenge will be to shift our offering in response to market developments and customer needs. Our ambition remains the same: we want to be the best multichannel player, in particular in online and mobile banking. YOU OFTEN MENTION AN “INTEGRATED MODEL”. HOW DO YOU DEFINE IT? Y.M.: Our model for retail banking is that of a multichannel bank, which manages all services and customer contacts in an integrated manner. In the physical branch, via telephone and via the internet site – and clusters all the offerings and specialised services of the group around them. This requires high performance tools that enable us to understand customers and contact them at the right moment – and to respond in an appropriate manner when they call us. FOCUS BNP PARIBAS RETAIL BANKING 55 countries 7,300 branches (of which 6,500 in Europe and around the Mediterranean basin) 148,000 employees 22 million clients (private and corporate) PREMIUM / CSC / SPRING 2011 BNP PARIBAS CHANGED SCALE AFTER THE FORTIS ACQUISITION. WHO EXACTLY ARE THE MAIN RETAIL BANKING PLAYERS ON THE EUROPEAN SCENE? 25 VIEWS GOVERNANCE, RISK AND COMPLIANCE: IS YOUR ORGANISATION TAKING AN APPROACH TO MITIGATE RISKS LONG TERM? T he continuity of headlines related to regulatory actions and ﬁnes, corporate fraud, and data breaches highlight that signiﬁcant assurance gaps exist in most corporations. To address these shortcomings, integrated governance, risk and compliance (GRC) has emerged. information, methodology, process and technology. By taking this interconnected approach organisations can replicate improvements in one GRC area across other GRC areas with the goal of competitive advantage and maximising shareholder value. and technology across all assurance groups. This creates a seamless body of knowledge about regulations, policies, risks, controls and issues throughout an organisation. Integrated GRC is about creating the environment and system whereby GRC professionals work. Organisations that have been most successful in GRC have beneﬁted from a strong “tone at the top” and executive sponsorship in support of the collaboration between assurance groups. Successful GRC projects also embrace the following: 1. deﬁne the organisation and process context; 2. establish a common language for policies, risks and controls; 3. implement consistent, reliable methodology; 4. develop transparency, reporting and monitoring; 5. leverage a common technology platform. THE CURRENT STATE PREMIUM / CSC / SPRING 2011 WHAT IS GRC 26 Many deﬁnitions of GRC have been published. Whilst every organization needs to deﬁne what GRC means in their own organisational context, a great start is the deﬁnition provided by the Open Compliance and Ethics Group (OCEG), “ … system of people, processes, and technology that enables an organisation to: • understand and prioritise stakeholder expectations; • set business objectives that are congruent with values and risks; • achieve objectives while optimising risk proﬁle and protecting value; • operate within legal, contractual, internal, social, and ethical boundaries; • provide relevant, reliable, and timely information to appropriate stakeholders; • enable the measurement of the performance and effectiveness of the system.” The deﬁnition highlights that GRC activities are interconnected and rely on a common set of Due to increases in regulations and ﬁnancial reporting requirements, companies have increased spending in the areas of audit, risk and compliance over the past ten years. To honestly assess where your organization is on the GRC maturity curve, ask your company key stakeholders if the following is true of your organisation: • a common, consistent language to describe risks and controls exists; • consistent processes are in place to identify and assess all the issues impacting business performance or exposing us to unnecessary risk; • management has identiﬁed the levels where accountability for GRC resides; • an understanding of the signiﬁcant business processes that create value in our organisation; • adoption of a standard, and consistent assurance methodology; • internal audit department evaluates and reports on the reliability of our risk management framework continuously and it is maintained. Few, if any, companies could GRC INFORMATION AND TECHNOLOGY ABOUT THE AUTHOR DEBORAH ROBERTS HAS BEEN WORKING IN THE ENTERPRISE SOFTWARE GOVERNANCE RISK AND COMPLIANCE MARKETPLACE FOR OVER 15 YEARS. SHE IS A CHARTERED MANAGEMENT ACCOUNTANT AND IS BASED IN LONDON AT THE HEAD OFFICE OF THOMSON REUTERS GRC DIVISION. credibly prepare such a representation. The barriers to integrated GRC for most organisations come down to one or more of four activities: working in silos, lack of executive sponsorship, conﬂicting methodologies and disparate information and technology. THE PURSUIT OF INTEGRATED GRC The discipline of integrated GRC and the value proposition of GRC information and technology must combine best practices, skills, intelligent information, methodology Organisations on the leading edge of integrated GRC rely on comprehensive information technology that addresses all GRC stakeholders. GRC technology enables organizations to break down the walls between audit, risk and compliance groups and provides expanded value as organizations deploy the software across the enterprise. By unifying the many GRC process owners, a comprehensive software solution can eliminate information silos, redundant data entry and improve information transparency and communication. SUMMARY GRC represents one of the most signiﬁcant advances for audit, compliance and risk professionals in many years. However, unlike most changes in these ﬁelds, it is not being driven by regulators and professional standard setters, but by leading-edge practitioners and solution and service providers. Article taken from BUILDING A BUSINESS CASE FOR GOVERNANCE, RISK AND COMPLIANCE originally prepared by Bruce McCuaig and Mike Rost and available to download at www.grc.thomsonreuters.com ABOUT CSC The mission of CSC is to be a global leader in providing technology enabled business solutions and services. With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients, and improve operations. CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor-independent, delivering solutions that best meet each client’s unique requirements. For more than 50 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integration and consulting needs. The company trades on the New York Stock Exchange under the symbol “CSC”. 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