SAP AG, a leading provider of enterprise client/server business solutions, and PricewaterhouseCoopers, a leading management and technology consulting firm, have agreed to develop extended applications within the Strategic Enterprise Management (SEM) set of solutions for SAP Banking. SAP Banking contains a comprehensive set of integrated industry-specific solutions that enable line and executive management to have a consistent view of their business. This consistency helps to improve efficiency and competitiveness. By combining SAP’s technology and business solutions expertise with PricewaterhouseCoopers’ SAP experience and banking industry knowledge, the two firms will deliver a robust, flexible solution that will enable banks to become more agile and competitive.
The SEM applications enable a large financial institution to track and monitor the key drivers of profitability from a consistent set of data using advanced technology. The world-class functionality delivered through these applications eliminates inconsistent data and numerous reconciliation points that have traditionally been problems for banks.
The recently announced SAP Banking SEM solution includes Risk Analyzer, Profit Analyzer and Strategy Analyzer. The SAP and PricewaterhouseCoopers collaboration will lead to the creation of new components within Risk Analyzer for Credit Risk, and within Strategy Analyzer for Advanced Performance Measurement. These new components will include:
— credit risk and counterparty limits with exposure tracking Strategy Analyzer
— enhanced business planning and forecasting to build upon the existing Asset Liability Management (ALM) capability
— Risk Adjusted Return on Capital (RAROC), free cash flow valuations, balanced scorecard reporting, and value-based reporting
All of the new components can be integrated within the SAP Banking SEM, the SAP Business Framework. Profit Analyzer, Risk Analyzer for Market Risk components are now available globally and Strategy Analyzer for ALM will be released in August 1998.
“This cooperative venture combines the world-renowned SAP capabilities in delivering business solutions and technical architectures with the excellent Banking industry and SAP expertise of PricewaterhouseCoopers,” said Bernd Dexheimer Director of the SAP Industry Business Unit for Banking. “Together, SAP and PricewaterhouseCoopers will add significant capabilities for strategic management of financial institutions.”
SAP and PricewaterhouseCoopers are currently defining the business and technical requirements of the enhanced SEM solution, including Risk Analyzer for credit risk and Strategy Analyzer for Advanced Performance Measurement, in the spirit of TeamSAP , where SAP, its partners and customers work together to ensure successful customer implementations. Over the next several months, SAP and PricewaterhouseCoopers will work with charter customers in North America and the United Kingdom to provide input and priorities for development. These institutions will have a unique opportunity to help guide the development process for one of the most exciting set of applications for the banking industry.
“We are very excited about working with SAP on this truly revolutionary suite of products. Our extensive financial services industry experience, coupled with our proven track record of success in implementing SAP at large, global enterprises will be leveraged to develop a product that is in direct response to the precise needs of the financial services community” said Steve Watson, financial services partner at PricewaterhouseCoopers in London.
“This functionality provides an integrated solution to meet the ever changing demands of the financial services industry. By leveraging the core R/3(TM) product and SEM functionality, financial institutions will be now be able to deliver enterprise wide information across management-defined dimensions in a streamlined and efficient manner,” comments Dan DiFilippo, financial services partner at PricewaterhouseCoopers in New York. “This platform is envisioned to be flexible enough to provide for the integration of proprietary systems and/or third party components where appropriate.”
SAP is a market and technology leader in client/server enterprise application software, providing comprehensive solutions for companies of all sizes and all industry sectors. Cultivating innovative technologies on a solid foundation of business experience, SAP delivers scalable solutions that enable its customers to continually improve upon best business practices. SAP products empower people to respond quickly and decisively to dynamic market conditions, helping businesses achieve and maintain a competitive advantage.
Founded in 1972, SAP is based in Walldorf, Germany, and employs more than 15,000 people at offices in more than 450 countries who are dedicated to providing a high level of support and service for the more than 15,000 installations of R/3 worldwide. The SAP World Wide Web site can be found at .
PricewaterhouseCoopers ([http://www.pwcglobal.com]), the world’s largest professional services organization, helps its clients build value, manage risk and improve their performance.
Drawing on the talents of more than 140,000 people in 152 countries, PricewaterhouseCoopers provides a full range of business advisory services to leading global, national and local companies and to public institutions. These services include audit, accounting and tax advice; management, information technology and human resource consulting; financial advisory services including mergers & acquisitions, business recovery, project finance and litigation support; business process outsourcing services; and legal services through a global network of affiliated law firms.
The PricewaterhouseCoopers Financial Services Industry practice provides a wide range of professional services including accounting, tax, regulatory and management consulting services to commercial banks, savings institutions, securities firms, investment and insurance companies, and real estate firms. With several key areas of specialization, the practice helps financial institutions manage their growth, performance, costs, operations, information systems, and credit, market and operating risks.
PricewaterhouseCoopers is one of the largest SAP product implementers in the world. The PricewaterhouseCoopers Global SAP Practice is a leader in the market in terms of live implementations, global infrastructure and training to support the consistent delivery of SAP implementation services around the world, and a suite of integrated tools including an on-line integrated methodology. PricewaterhouseCoopers has more than 6,500 trained SAP consultants in Europe, North America and Asia Pacific. The firm received seven SAP Awards of Excellence in 1997.
SAP, R/3, SAP Banking, TeamSAP, SAP Business Framework and all SAP product and service names mentioned herein are trademarks or registered trademarks of SAP AG.