E-Banking and Payment System
Technology-Driven Demand and e-
Customer Relationship Management
e-CRM
Sittikorn Direksoonthorn
Assumption University 1/2004
Quick Win Agenda
Data Warehouse Model
Data Warehousing Overview
Data Warehousing Characteristics
Banking Data Warehouse
Supply Chain Innovations
Functions of Supply Chain
What is e-CRM?
Why we must Retention?
CRM Infrastructure
E-Banking & Payment System
Data Warehousing Overview
• Abilities to organize and access historical data
• Data can be pulled from multiple sources
• Data can be stored in a format friendly to conduct
ad hoc analyses.
• The process of extracting data from operational
system and transforming, integrating, summarizing
and accessing it is called data warehousing.
E-Banking & Payment System
What is Data Warehouse?
• A Data Warehouse is a solution which enables the
business users to make use of data in organization in
an efficient timely and consistent manner. A Data
Warehouse is usually defined to be a
– Subject-Oriented
– Integrated
– Time-Variant
– Non-Volatile
Collection of data in support of management’s decision-making process.
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Operational Data
Operational and Informational: Data are different
Data
Capture
and UseInformational Data
Data Analysis
•Subject Oriented
•Integrated
•Non-Volatile
•Values Over Time
•Supports Management Decisions Example:
Product Sales Analysis Trends Analysis Ad-Hoc Queries Data Mining
•Application Oriented
•Limited Integration
•Constantly Updated
•Current Values only
•Support Day-to-Day operations Example:
Account Processing Loan Processing Teller Systems Trade Finance
Data Warehouse Characteristics
• Subject-Oriented : Not transaction or system oriented
• Integrated: Cross enterprise view comprising “best” data
• Time-Variant: historic information kept, temporal issues
resolved
• Non-Volatile: Information is stable and not continually
changing after entry into the warehouse
• Support Managerial and Decision support needs
• Contains Summaries as well as limited detail
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Typical Questions & Sample Queries
An Enterprise Data Model which can address business
questions such as:
•
Show me all new accounts opened last month, and sort them by branch and product line•
I want the operating margins for all branches•
What is the product profitability in term of income?•
What is the product / ATM usage figures by site?•
Display the breakdown of households based on product usage•
Display the growth / decline trends in market segmentsE-Banking & Payment System
Banking Data Warehouse
Customer Information
•Activities sorted by Transaction Type
•House holding
•Loans being used to pay other Loans
•Assets pledged & Cash vs Loans
•Comparison against a Pre-defined profiles
Funds
•Cash Flow by branch
•Repayment History, Projected Life
•Credit Exposure vs Actual Limit
•Loans roll over statistics
•Loan maturity by market segment
Product Profitability
•Products usage by region, branch, segment
•Products profitability vs competitors
•Products profitability vs internal products
•Products revenue and average balance
Organization
•Profitability
•Accounts opened / closed by reason
•Total transactions by branch, activities
•Actual vs Target for new accounts,..etc..
E-Banking & Payment System
MetaData is a vital component of the
Banking Data Warehouse Solution
Definition: Data which describes the various components of the
Warehouse (including Data Items, relationships Population
routines, End user facilities, etc.)
Characteristics:
–
Rich Business Definitions from info. Framework Data models–
Rich Functional Display using GUI Product–
Enables Users to efficiently navigate around the Warehouse–
Encourages data and query reuseData Warehouse Model
There are 5 basic activities
1. Data Extraction
2. Data Storage
3. OLAP (Multidimensional data analysis)
4. Data Mining
5. Data Access
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Data Warehouse Model Overview
Trade
Loan
HR
Legacy System
Data Storage
ETL
Warehousing
OLAP/ Data Mining
PC-Data Access
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Data Warehouse Model
• Data Extraction : is the process of moving data from an operational environment into a data warehouse. As operational data is often stored in various disparate non-relational forms, the process of creating a data warehouse includes a number of discrete activities such as modeling, data conversion, data migration, and data management.
• Data Storage : is a relational database management system (RDBMS) residing on a dedicated server. There are three types of stored in the warehouse;
– Meta Data – Detail Data – Summary Data
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Data Warehouse Model
• OLAP (On-line Analytical Processing) : is an architecture for performing complex analysis from a business perspective. OLAP is often referred to as multidimensional analysis such as data analysis which typically involves trends and comparisons that span several business dimensions. A business dimension is a subject s.a. product, sales region or distribution channel.
• Data Access : Data access tools provide easy access to data stored in a data warehouse. There are data access tools to address unique requirements of end users and professional programmers. Front-end data access tools are often referred to as DSS and ESS.
Data Warehouse Model
• Data Mining : Data Warehousing is the process of creating a centralized stored of information for the purpose of analysis, Analyzing this store of info is called Data Mining. Data in data warehouses are often so large and complex they cannot be analyzed adequately with repetitive queries and reports. In such situation, data mining tools can be used to automate the decision-support process and find facts hidden in databases. Using a combination of machine learning and database technology, data mining tools find patterns in data and infer rules about the patterns, find answers to questions do not know how to ask. The information is then presented in a suitable form with graphics, reports, text and hypertext
E-Banking and Payment System
Supply Chain Innovations
16 Supply Chain Functions
The Internet goes beyond other technologies in providing two-way
Communication between multiple firms offering products and services
with multiple consumers for those products and services
SCM is abilities to collect, store, communicate and forecasting
inventory control
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Functions of The Supply Chain
1. Marketing research / new product development.
2. Forecasting demand 3. Purchasing of raw materials 4. Production, usually at multiple
sites
5. Transportation between sites 6. Storage / Inventory
7. Delivery to end consumer.
8. Breaking of bulk
9. Consolidating / bundling.
10. Information flow and coordination 11. Cash flow.
12. Financing
13. Information to consumer.
14. Display, touch, feel by consumer.
15. Matching consumer with ideal product.
16. After-sales services
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16 Supply Chain Functions
1. Marketing Research/ new product Development
Stores
7. Deliver to End Consumer 14. Display, touch, feel
by Consumer
Distribution Center
2. Forecasting demand 4. Production, usually at
multiple sites
Optimal Supply decision Component
production
5. Transportation multiple sites
6. Storage / Inventory 3. Purchasing of Raw
Materials
10. Information flow and coordination
Consumer
Are All Customers Worth
Keeping?
What is e-CRM?
ERP SCM CRM PRM
E-Banking & Payment System
Customer are number 1?
Stu Leonard, who operates one of the most profitable
supermarkets in the world, advertise two rules to his
employees:
Rule 1st: The Customers always right
Rule 2nd: If the customers wrong, go back to rule 1
But consider that the company’s largest customers tend to get
the deepest discounts and demand the most services.
There is some evidence that medium-size customers often
yield a higher return on investment than the company’s
largest customers.
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20/80/30 Rule
• The 20 percent of profitable customers account for 80 percent
of the company’s profits.
• The formulation has been modified more recently into the
20/80/30 rules, which adds the observation that the poorest 30
percent of the company’s customers cuts the company’s
potential profits in half.
“ All Customers important, but Some important than other”
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Why we must Retention?
• Retained customers buy more over time if they are highly
satisfied.
– Cross-selling
– Up-selling
• The cost of serving a retained customer declines over
time.
• Highly satisfied customers often recommend the seller to
other potential buyers.
• Long-term customers are less price-sensitive in the face
of reasonable price increase by seller.
Business Cycle
Enterprise
3rd Business Intelligent Re-marketing
2nd New Business
1st Retention
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What is CRM?
• Customer Relationship management (CRM) is a business
strategy to select and manage the most valuable customer
relationships. CRM requires a customer-centric business
philosophy and culture to support effective marketing,
sales, and service processes.
• CRM application can enable effective customer
relationship management, provided that an enterprise has
the right leadership, strategy,and culture.
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Customer Relationship Management Infrastructure
E-CRM
Manage SalesProcess
Manage Client Interface Manage Client
Profitability
Manage Client Information
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Manage Client Information
• Financial Objective Tracking
• Derived Transactional Profile
• Behavior / Trend Analysis
• Customer Master File
Manage Client Interface
• Sale Platform
– All services automated – Describes Key services – Open / Close / Transfer, etc.
• Support Platform – Tele-banking
– Administrative Support – Business banking – Commission Sales staff
• Service Platform
– Reduce client impact errors – Improve Productivity – Increase Revenue – Client Interface Devices
