INSORCETM

Optimality Objectivity On-demand

INSORCETM

For enquiries regarding this document please contact

Shammik Gupta Managing Director +91 98455 48782 shammik.gupta@insorce.com

Jaidev Iyer Managing Director +1 (917) 716-9896 Jaidev.iyer@insorce.com

For enquiries regarding this document please contact

Shammik Gupta Managing Director +91 98455 48782 shammik.gupta@insorce.com

Jaidev Iyer Managing Director +1 (917) 716-9896 Jaidev.iyer@insorce.com

Integrated System to Optimize Risk and Cost for the Enterprise

Automating the design of optimal target operating models for financial services firms

INSORCETM

Need for the objective optimum in financial services

2

Pricing pressures, disintermediation and difficult economic outlook => need to re-organize operational models.

The current process of internal committees - often supported by external consultants – and dealing with multiple threats and opportunities is time consuming, iterative and scenario based.

Organization silos and multiple definitions of success hamper complex and interdependent decision making

Implementation is therefore incremental and expensive Unprecedented Risk &

Compliance Increasing Operational

Efficiency

Expanding and protecting revenue

Committees

Consultants

Lean

Offshore

FMEA

Risk

6-sigma

Shared Service

Onsite

INSORCETM

Enter INSORCE™

3

INSORCE™ is our business process planning, modelling and optimization product that automates points of decision making across functional silos.

It uses sophisticated algorithms; encourages dialogue to generate insight and provides market data to facilitate decisions.

The holistic picture that emerges enables strategic decision making and tactical implementation — reducing time to market, optimizing cost with control, and optimally supporting desired products, geographies and customer delivery standards.

Operations* Business Human Resource* Infrastructure*

What Where Who

Wit

h

Management Risk & Compliance

Why How

Schedule Operations*

How Many?

Finance Implementation Infrastructure* Human Resource*

Wh

o

Ho

w

Mh

ch

Wh

o

Wit

h

When

INSORCETM

INSORCETM

INSORCETM

INSORCETM

Beyond traditional BPM – defining transformation

4

A process-driven approach to operational design, addresses management decision points with speed and intelligence

Service delivery standards

Control and compliance requirements

People and infrastructure costs.

It recommends optimal decisions within automatically created constraints for customized target market operating model

Process Product Organization Schedule Other Activities Arrows Actors

Data Flow Business Rules Volume

Roles Interactions

Time Wait Deadlines

Mode Equipment

Cost Effectiveness

Del

iver

y S

tan

dar

ds

Cost Effectiveness

Co

ntr

ol E

ffec

tive

nes

s

Cost Effectiveness

Sp

eed

of

Imp

lem

enta

tio

n

Process flow Interaction

model State Diagram

Supervision Description Recruitment Training

Objectives Interventions Key Indicators

Actor Shifts Volumes Handle and

Cycle Times

Locations Capacity Equipment

People Infrastructure SG&A

Process People Controls SLAs Infrastructure Cost

INPUT

OUTPUT

INSORCETM

Comprehensive, Consistent, Customizable Solution Set

5

INSORCE™ is designed to work at a process level incorporating characteristics as required on product, business rules, business scale, organization structure, technology, locations and operating models.

Subsequent change modelling is simple with focus on the changed business or environment variables, giving management an edge to handling every type of change.

Some clients think of INSORCE™ as a CAD/CAM tool for financial services

Examples of INSORCE™ usage Definition of an end to end target operating model Implementing a cost-effective risk control framework Improvement in audit ratings Location models for service delivery and reduced cost Configuration for product growth/ de-growth Shared services setup – what, where and how Targeted business process improvement

INSORCETM

INSORCE™ value proposition

Current Challenges INSORCETM Response

Organization silos – conflict among stakeholders & agendas

- Inputs from all relevant functions analyzed as constraints - Neutral purveyor of information to all stakeholders - Relevant to any microcosm of the organization

OB

JECTIV

ITY

Different definitions of transformation and optimality

- Mathematics to compute optimal configuration of global processes, people, infrastructure

- Workflow ensures conformity to business and risk demands - Results are tangible and future proofed to objectives

OP

TIMA

LITY

Pilots the only way to model the operational impact of decisions

- Strategic analysis translated to tactical implementation - Real time impact on each operational variable to change in

scale, strategy and standards - Clear, detailed output of “how to get there” - Fraction of time compared to analogue alternatives

ON

DEM

AN

D

6

INSORCETM

Always on-demand

Non-intrusive and Secure

Standalone planning engine to save technology investment

Designed to be non-system-intrusive, does not require connectivity to native applications

Quick start project creation

Keeps client data secure while providing master information.

7

Fast and Flexible

Respond to evolving demands with ease

Changes to business logic through a simple Microsoft Visio interface, no IT resources.

Complex interactions handled within a single, intuitive interface

Best-practice rules and process-based forms enable rapid data collection with in-built validation and checks for consistency.

INSORCETM

Location Modeling for optimal people, process, infrastructure

The INSORCE™ global scheduling algorithm models operations through global teams depending on process volumes, schedules, deadlines and interactions; optimizing service delivery with cost. The intuitive interface allows simulation of locations and infrastructure needs

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INSORCETM

Objective Based Design for future proofed solutions

Basel risk categories provide a complete, finite list of factors that can go wrong in meeting business objectives. The risk attribution engine provides a comprehensive, best practice framework to identify people, process and infrastructure vulnerabilities that can affect the immediate optimum.

9

INSORCETM

Control Configuration for optimal cost-control

INSORCE™ identifies process vulnerabilities and provides control patterns to mitigate different types of vulnerability. Flexibility and granularity in the control configuration allows organizations to compute and optimize cost of control.

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INSORCETM

Customized Competency vs. Cost

Competency mapping, catchment selection and training assets information is provided and customizable to organization requirements so the human resource supply chain can be optimized for objectives of cost vs. time to market and can differ for different skills and teams.

11

INSORCETM

Infrastructure Calculator

The infrastructure module computes the total cost and time taken to acquire the infrastructure per location to ISO 27001 standards. Hardware, software and communications equipment can be computed either at a granular level or through the in-built INSORCE™ wizard.

12

INSORCETM

Rapid delivery and deployment

Initialization Support INSORCE™ or its partners can provide accelerated initialization support as required • review of existing documentation • template creation to enable process enrichment • use of our process map library for customization • solution creation workshops (included at cost)

Training While INSORCE™ is very intuitive, proper training will help accelerate use of INSORCE™ features through models that help meet your timelines and budget • extensive on-line support on process modeling (included) • process enrichment for INSORCE™ (included at cost) • bespoke client training in multiple formats • advanced LEAN and process re-engineering usage

Distributed Deployment Deployment of our 3-tier architecture should ideally follow initial installation and training.

Consulting Support INSORCE™ can recommend trained external analysts to ensure that different parts of the organization are contributing to and using INSORCE™ to deliver the best results.

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Datacenter

INSORCE datacenter

Distributed User Base

INSO

RC

E n

etw

ork

Cu

sto

mer

’s n

etw

ork

Public Internet

IIS Server

Line of Business

SQL Server

INSORCEMaster Data Servers

INSORCE PortalOnline Help

SupportProcess Map Library

Secure communication (HTTPS)

Pull and refresh Master Data Periodically (optional)Push anonymized master data (optional)

Licensing ServerFor license validation

INSORCE License Server

LDAP/Active Directory

SSO

Geography Function

Distributed users for global target model

Secure, authorized organization data

Seamless software and upgrades training

Access to information masters for speed

INSORCETM

INSORCE™ – key features and benefits

Objective Works at the enterprise level or any slice of it (business, product, geography, process…). Considers all re-engineering levers simultaneously (location, centralization, LEAN, functionalization,

automation, control) Produces outputs that are relevant to decision makers (strategic) and implementers (tactical) Standardizes design and change methodology across target and specific operating models

Optimal Models all operational design variables (people, process, controls, locations, infrastructure) together Improves effectiveness by providing the cost-benefit risk and robustness Highlights trade-offs and synergies for organization strategy

On-Demand Models change-impact and trade-offs in near real time (minutes instead of days/months) Standalone product with no native applications integration required for rapid deployment Scalable and iterative to changing environments and objectives User-friendly, based on existing Microsoft tools

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INSORCETM

Vladimir Baranovsky Math Algorithms Algorithms for global, cyclic, non machine scheduling. Teaching at UC Irvine

Previously: PhD. in Mathematics from the University of Chicago; CalTech, Princeton.

Hank Blumenthal User Experience Managing complex data challenges into intuitive user dialogue.

PhD student at the Georgia Institute in Technology in Digital Media

Abhay Agarwal Director Early-stage venture capital specialist at Piper Serica Advisors Passionate at building businesses such as Dominos, HDFC Bank

Previously: Citibank, JP Morgan

Hitesh Sarda Chief Technology Officer 12 years in systems architecture, project management, agile development with focus on Java & .NET frameworks

Previously: COSL, Polaris, Citibank

Narayan Ramamoorthy Director Implementation 14 years in outsourcing transitions, program management, transformation consulting, implementation

Previously: Mphasis, Wipro, TESCO, AbKya

Shammik Gupta Managing Director 25 years in banking - trading, business, product, operations, and risk management; and consulting.

Previously: Citibank, Societe Generale, Progeon, Artha Shastra

Jaidev Iyer Managing Director 30 years with global positions in trading, operational and market risk: trading, business, product, operations, and risk management.

Previously: Citibank, GARP, J-Risk, UBS

About INSORCE™

INSORCE™ has been providing consulting services since 2007 and developing the methodology that has gone into its technology enabled version in 2012. The methodology has been tested in a variety of situations ranging from offshoring to shared-services and from operational risk diagnostics to industrialization projects for banks, service providers and consultants.

INSORCE™ offices are located in New York, Bangalore and Hyderabad.

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INSORCETM 16

Annexure

INSORCETM 17

INSORCE™ alternatives

But, wait a minute, isn’t this what

committees and consultants do ?

INSORCETM 18

From educated guesswork .... to optimum answers

In-house committees INSORCETM IT Firms Strategy Consultants

”The way it’s always been..

Improvise, don’t fix”

”The best you can be.. Every

time”

”The Paradox, sponsor

viewpoints pieces have

different results”

”Automation is game

changing but can have

unintended results”

Minimal planning cost Participative Representative

Considered action Effectiveness measures Process framework

Multi-disciplined Hypothesis based testing

for insight Brand reputation Benchmarking data

Optimization, not experimentation

Across operational levers Result tailored to goals Internally consistent

cost, control & capacity Close linkage between

design and delivery Quick deployment with

little upfront investment

Person/silo dependent High risk for new

situations and ideas Reliance on the past No process science to

the approach

Focus on routine and “factory”

Operations metrics only lever

Production costs as primary driver

Focus on cost or control Specialization & sponsor

silos High on time & expense No implementation detail

INSORCETM

INSORCE™ Mathematics

INSORCE™ uses sophisticated mathematical algorithms to combine broad decision sets into extremely granular and consistent data; NOT trial-error, statistics or scenarios …

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Engineering Principles

Operations Design – theory of constraints

Multivariate computing

Graph Algorithms