Title: Arial 28pt'

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FIN952 Incremental Revenue Generation
Infrastructure Into Solutions
Paul Lockyear PrincipalQuadrant Risk
Management paul.lockyear_at_quadrant-international.co
m Jon Simmons PrincipalSybase
BI jonathan.simmons_at_sybase.com August 15-19, 2004
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A Case History In Successful Partnership

• Beyond The Clichés
• Together Sybase and Quadrant built a unique
  product
• Together we have achieved outstanding market
  pull
• Our sales and marketing teams work separately and
  together
• Our delivery teams work together seamlessly
• BUT IT WASNT ALWAYS LIKE THIS

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Background Quadrant Risk Management

• A World Away From Sybase
• A specialist financial services risk management
  consultancy
• C.30 people, all previously bank Board members
• Assets between our ears
• Long on banking domain expertise, but
  technologically dyslexic!
• CHANGE OR BECOME DINASAURS

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The Business Problem Basel II

• Revolutionary Reform of International Bank
  Regulation
• Vastly more rigorous corporate governance regime
• Mandatory public disclosure of risk management
  methodology and culture
• Sophisticated banks can in effect and with
  certain caveats determine their own level of
  regulatory capital!
• IF they can evidence the data to produce robust
  risk models
• WHICH MEANS FIRST CLASS DATA MANAGEMENT AND
  MODELLING

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So We Needed A Technology Partner

• Sybase
• Great Financial Services penetration
• Sybases Industry Warehouse Studio a perfect
  fit
• A sales force and development capability
• A strong vested interest Sybase had tried to
  do Basel II before
• without domain expertise, and therefore without
  success. IWS sales hit.
• REAL FIT, REAL SYNERGY i.e. MUTUAL IMPERATIVE

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The Basel II Solution We Built Together
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Go To Market Strategies

• A Case History In Pragmatism
• Sybase a federal organisation
• Some countries turned on, others turned off
• Some strong in PS, others not
• Quadrant expertise needs to be used judiciously
  best bang per buck
• Local partners a necessity
• WE MADE MISTAKES!

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Handling The Culture Clash

• A Clash of Cultures
• Quadrant 30 domain experts, no beaurocracy
• Sybase 4,000 people in 60 countries,
  matrix-managed
• Quadrant privately-owned management can take
  a view
• Sybase judged by the market on a quarterly
  basis
• Both companies come with baggage
  (preconceptions)
• MURPHYS LAW APPLIES IN SUCH CIRCUMSTANCES

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Lessons Learned 1 The Partnership

• Off-the-Shelf Doesnt Work
• The businesses, products and the relationship are
  all unique
• The temptation is always a quick fix
• But that stores more trouble for later
• If partnership is important devote time and
  resource to it
• if its not, dont bother with it at all.
• Turning Infrastructure Into Solutions Takes More
  Than OEM, VAR, etc. Labels

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Lessons Learned 2 The Market

• Banks To Spend BNs On Basel II
• Est. spend US8-250mn per bank major,
  enterprise-wide implementation projects touching
  corporate governance, compliance, risk
  management, IT,
• But consulting firms dont generally have
  technology solutions and technology software
  firms cant talk to Risk
• So banks are having to piece together the jigsaw
  for themselves.
• But as a result suffering vendor-fatigue
• A Solution Must Include Pain-relief

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The Basel II Solution We Built Together
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Breathing New Life into IWS

• Pre-built Technology Has Massive Advantages
• IWS cut development time of the Basel
  II-compliant Enterprise-wide Risk Data Repository
  by 75
• Its physicality is a clear differentiator
• We can leverage its openness in non-Sybase
  banks
• and leverage its track record in existing
  Sybase customers
• Our Competitors Cant Do This

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The Basel II Solution We Built Together
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A New Competitive Front For SPSS

• SPSS Clementine Decided Not To Compete With SAS
  In The Basel II Space
• But the Quadrant-Sybase partnership enabled that
  to happen
• Now SPSS co-market the solution
• The solution is generating incremental leads,
  market presence and revenue for SPSS
• SPSS/Clementine cut development time of the
  Basel II Workbench analytics module
• A Real Win-Win

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The Basel II Solution We Built Together
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Enterprise Risk Management at a glance
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Specific Front-end Applications

• Business Objects And Others Have Good Generic
  Apps
• But Quadrant domain expertise in Basel II can
  focus on specific issues
• And produce pictures the buyer (Risk
  function/Basel II Program Manager) wants to see
• This vastly increases the appeal of both the
  front-end and the whole solution
• Another Genuine Win-Win

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In Summary

• Bringing Domain Expertise To Existing
  Technologies
• Has extended their shelf-life
• Has increased market penetration
• Has raised the presence of both the products and
  the Companies
• Has brought new partnership alliances as well as
  new customers
• Has produced working solutions not
  slide-ware, vapor-ware etc
• and the customers clearly discriminate between
  the two, given the chance!
• Has Grown Revenue In Return For Little
  Incremental Investment

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Incremental Revenue Generation Infrastructure
Into Solutions
Paul Lockyear Jon Simmons PrincipalQuadrant
Risk Management PrincipalSybase
BI paul.lockyear_at_quadrant-international.com
jonathan.simmons_at_sybase.com August 15-19, 2004