IBM's way to build China's banking cloud

IBM Global Business Services-gbs and ICBC jointly released the white Paper "from cloud computing to cloud-based business model-the future innovation opportunities for domestic banks." The white paper notes that cloud computing, as a new productivity, will help domestic banks build new business models, drive industry transformation and reshape the industry chain. Domestic banks should seize this opportunity to promote the transformation of China's banking sector. At the same time, the White Paper presents seven innovative opportunities for domestic banks from the five perspectives of bank retail customers, special merchants, small micro-enterprises, supply chain companies and banks and partners. At the same time, the paper also proposes that banks should pay attention to the four aspects of industry cooperation, industry and law supervision, bank internal management mode, IT management and it technology, and give the solution idea. This provides a clear direction on how to correctly recognize the value of cloud computing and embark on a cloud-based transformation in the rapidly developing domestic banking sector.

Cloud computing: New business model under new productivity

Cloud computing is a model that provides a convenient, on-demand, configurable computing resource sharing network. Cloud computing is expected to revolutionize the traditional business model of business society, drive business transformation, reshape the industrial chain and industrial structure. In this case, the cloud business model will have the features of realizing multi-party synergy, efficient aggregation and sharing of resources, service standardization, networked access, autonomous services, fast access to services on demand, service scalability, analytical ability/intelligent processing and support according to resource usage (pay-as).

In recent years, China's banking industry has undergone a leap-forward development, the industrial scale has been expanding. But with this rapid development is the market competition is increasingly fierce, rising costs, customer demand increasingly complex, the profit model urgently needed to innovate and other challenges. At the same time, with the increase of the overall industrial adjustment of the Chinese banking industry, the government has put forward a high demand for the development of China's banks, which further increases the pressure of bank transformation. Cloud computing as a new business model, its unique ability is to help domestic banks in changing the marketing model, to achieve cross-sectoral cooperation, improve service capabilities, improve operational efficiency and so on to play a comprehensive role in promoting.

The report shows that the future of cloud computing will be from the Industrial model innovation, enterprise model innovation and Revenue model innovation three levels to radically change the bank's business model, promote the bank transformation.

• Industrial Model Innovation: Redefining existing industrial patterns and game rules, creating new value-added links in existing industrial chains, reducing links in existing industrial chains, or creating a new industrial value chain and diversifying into other industries.

• Enterprise Model Innovation: To make the enterprise more integrated or professional, change the relationship with employees, suppliers, customers, partners and other related parties, cooperation, and achieve the role of innovation in the value chain.

• Revenue Model Innovation: Reconfiguring products (products/services/value portfolios), creating new value propositions, and creating new pricing models for products/services.

Seven innovative opportunities to help China's banking sector transition

Through the close cooperation and system work between ICBC and IBM, this research is aimed at different bank customers and the banking industry chain partners, the white Paper proposed seven cloud business model innovation opportunities for Chinese banking.

For retail customers: Based on the "cloud" industry model innovation opportunity to think. Leveraging the resources of the cloud to efficiently aggregate and share, the characteristics of multi-party synergy will hopefully integrate all kinds of service resources, including product, DOT service and customer account information, which are owned by all the participants in the banking industry chain, and provide customers with more comprehensive, integrated and real-time service information and corresponding banking services, Solve the customer's current information asymmetry dilemma.

For retail customers: Based on "Cloud" enterprise model and Revenue Model innovation opportunity to think. Leveraging the advantages of the cloud, for example, through richer/multi-channel (including external partner channels) of information, process interaction and validation, customers can more readily and anytime, autonomously access to financial services required to change the current banking services in the service channel, the time of some restrictions; The implementation of the cloud's internal and external multi-channel information integration will mean that banks can more accurately forecast customer demand, thereby more proactively providing customers with a full range of financial solutions. In addition, for some businesses, banks can take advantage of the cloud standardization and the characteristics of independent services, so that some of the original needs of banks to complete the business process, by the customer to complete part or all of the process.

For the special merchants: Based on "cloud" business model and Revenue model innovation opportunity to think. Using the standard services provided by the cloud, the core business activities of the special merchants and the business activities related to the Bank are provided to provide the standardized value-added services based on cloud for the common needs of the same type of merchant. Meanwhile, the use of cloud to promote the bank and the Merchants business synergy, resource aggregation and sharing, the bank can obtain the resources owned by merchants, in combination with the intelligent analysis of the cloud, can be more in-depth understanding of business information rather than simple trading flow, and thus provide a full range of solutions for merchants.

For small micro-enterprises: Based on "Cloud" enterprise model and Revenue Model innovation opportunity to think. By leveraging the characteristics of cloud scalability, resource sharing and standardization services, a cloud based business management and financial Management Service platform is provided for small micro enterprises, and the service of the bank is seamlessly connected. In addition, based on the advantages of cloud synergy, we can establish a multi-party process synergy between banks and business administration, so as to provide one-stop service and integrated business management for small micro-enterprises. In addition, the Bank can by virtue of value-added services and the customer's business and financial information in a comprehensive grasp of small micro-enterprises to obtain a comprehensive banking business, and through the cloud to show the customer and customer groups business, financial information analysis, more intelligent to provide customers with the required banking products.

To the supply chain enterprises: Based on "Cloud" enterprise model and Revenue Model innovation opportunity to think. Using the characteristics of cloud standardization service and multi-party synergy, around the upstream and downstream enterprises procurement, sales, logistics and other supply chain links for upstream and downstream enterprises to provide standardized end-to-end process processing platform, and to achieve a seamless interface between the banking service platform and supply chain management platform, the supply chain enterprises between the exchanges triggered by the "business flow-logistics-capital flow- Information flow "Online integration, so that enterprises in the supply chain process in any part of the rapid access to the required banking services." At the same time, around the enterprise finance, tax management related to the relevant government agencies, professional institutions, to achieve multi-party process synergy, so that enterprises get one-stop service.

Banking operation Field: the innovation opportunity thinking based on "cloud" industry mode. The use of cloud resources aggregation and sharing, standardization services, the advantages of multiple synergies, around the banking industry common concern and some of the common characteristics of the internal management areas, such as customer credit information, can be used by industry regulators or third parties to build a more real-time, comprehensive, intelligent industry information sharing mode, Different banks and other collaborating organizations can participate in sharing information and get information on demand. For the banking industry to face the various types of industrial management agencies, can establish a standard collaborative process, the formation of standardized services, the original need for banks to invest a lot of resources to do the work of the cloud to complete. and the industry-wide model determines that these internal operations can generate an industry model innovation opportunities, this industry model innovation can be a third party for the entire industry to provide cloud services.

Banking operation Field: Thinking about the innovation opportunity of enterprise model based on "cloud". Use the cloud that provides standardized process services to complete certain types of bank background business processes, or through the cloud to create a more flexible internal back-office operation system to optimize the use of internal operating resources within the bank. In some banking areas, the process interaction between different banks and customers and business partners tends to be common, or the process interaction between individual banks and different customers and partners is common. Therefore, the use of cloud standardization process and the characteristics of multiple synergies, a single bank or several banking alliances can be established with customers, external partners business process Synergy Cloud.

Focus on four challenges and promote bank transformation under cloud model

On the other hand, the white paper notes that banks need to pay attention to four aspects when implementing cloud-based business models.

Inter-industry cooperation: first, the bank can be based on "cloud" strategic planning and implementation of the key, define the cooperation strategy between the industries, open the cooperation window with the participants in the banking industry chain, and identify the role of the bank in the business model, the role of all participants, and the value demands of all parties for specific "cloud" opportunities. The principle of the distribution of benefits to eliminate possible conflicts. In addition, banks must face up to the emergence of third-party banking service providers, which appear to compete with banks in some areas of business, but on the other hand, third party institutions are expected to provide opportunities for banks to expand their markets and enhance their responsiveness. In the meantime, the bank can consider to play a new role in the industry through the way of capital cooperation, and grasp the new value range brought by the cloud. Of course, far-sighted banks, through cooperation with the industrial chain, to promote the establishment of the industry "cloud" standards will not only achieve the maximum value of "cloud", but also have the opportunity to win a greater competitive advantage in the "cloud" era.

Industry and legal regulation: when banks implement cloud-based business models, they need to maintain active communication with industry regulators to understand the regulatory support needed for the new business model and the changes required for the existing regulatory approach. For example, under the cloud based business model in which multiple banks are involved, regulators need to be clear about specific regulatory requirements for individual banks. As for the current inability to perfect timely industry and legal regulatory requirements, in the design of business model, banks need to actively explore feasible measures to control the corresponding risks.

Bank internal management model: banks in the implementation of the cloud based business model, must be profoundly aware of the cloud to the bank's greatest value is to enable banks to understand the customer business and provide comprehensive solutions, so the bank needs to truly establish customer-centric business philosophy. Before starting a thorough operation Management system transformation, the bank in the promotion cloud based business model, often needs to pass certain process, the appraisal and the stimulation mechanism optimization, the staff skill training, the integration different product line resources, realizes to take the customer as the center the Integrated marketing and the service.

IT management and IT technology: for the bank's IT team, to meet the arrival of the cloud era, the first task is to build from the development, testing, release to the operation of the rapid, intensive process, through automated delivery management, shorten the IT delivery cycle, and from the technology and management to achieve development and operational dimension of the close fit. At the architectural level, the bank needs to define the relationship between the cloud platform and the back-end system, and break the current internal isolated silo system to achieve the integration of the architecture, so that the cloud truly becomes a customer service, business process-driven platform. In addition, to the information security, the bank needs to establish the exact information sharing business rules, realize the maximization of the business value while complying with the existing legal requirements, and establish the security control mechanism at the technical level.

On the other hand, it is also pointed out that it is an important step for domestic banks to establish their own cloud model as soon as possible by cooperating actively with relevant regulatory departments and making efforts to participate in the formulation and implementation of cloud standards.

Su Wenli, general manager of Industrial and Commercial Bank of China's Product innovation Management department, said: "I am delighted to be able to carry out this forward-looking study with global cloud computing IT leaders such as IBM." The joint research team of IBM and ICBC has made an in-depth analysis of the opportunities that cloud computing brings to banking innovation and has received exciting results. Cloud computing will bring new changes to China's banking services and management, and its impact will be far-reaching. It is hoped that through the publication of this white paper, the results of this cooperation will be widely shared with the banking industry, giving us more thoughts on how cloud computing can be applied to the innovation of banking model, and work together to promote the transformation and development of Chinese banking industry and to provide better service for the society. ”

"We sincerely thank ICBC for its active participation in the study," said Mr. Pereira, head of the financial industry at IBM Global Business advisory services, Greater China. It is believed that the release of this white paper will bring more inspiration to the application of cloud computing in domestic banking. In the future, IBM Global Business Consulting will continue to work closely with the domestic banking industry, bringing the most advanced cloud model and cloud concept to our customers, and contributing to the upgrading and transformation of China's banking industry. ”