Offer Management - BIAN

OrganizationAuthorsRole Name CompanyChair Norbert Becker Fernbach Software SAVice Chair Dirk Becker SAP AGVersion History:Version Date of Change Author1.0 Mar, 02, 2010 BIAN© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 2 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.docCopyright© Copyright 2010 by BIAN Association. All rights reserved.THIS DOCUMENT IS PROVIDED "AS IS," AND THE ASSOCIATION AND ITS MEMBERS, MAKENO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITEDTO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,NONINFRINGEMENT, OR TITLE; THAT THE CONTENTS OF THIS DOCUMENT ARE SUITABLE FOR ANYPURPOSE; OR THAT THE IMPLEMENTATION OF SUCH CONTENTS WILL NOT INFRINGE ANYPATENTS, COPYRIGHTS, TRADEMARKS OR OTHER RIGHTS.NEITHER THE ASSOCIATION NOR ITS MEMBERS WILL BE LIABLE FOR ANY DIRECT,INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF ORRELATING TO ANY USE OR DISTRIBUTION OF THIS DOCUMENT UNLESS SUCH DAMAGES ARECAUSED BY WILFUL MISCONDUCT OR GROSS NEGLIGENCE.THE FOREGOING DISCLAIMER AND LIMITATION ON LIABILITY DO NOT APPLY TO, INVALIDATE,OR LIMIT REPRESENTATIONS AND WARRANTIES MADE BY THE MEMBERS TO THEASSOCIATION AND OTHER MEMBERS IN CERTAIN WRITTEN POLICIES OF THE ASSOCIATION.

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.docTable of Contents1 Description ........................................................................................... 51.1 Name ................................................................................................................ 51.2 Unique Identifier................................................................................................ 51.3 Place in Hierarchy............................................................................................. 51.4 Rationale........................................................................................................... 52 Sub Domain Definition......................................................................... 62.1 Responsibilities ................................................................................................. 62.1.1 Summary........................................................................................................... 72.1.2 Business Process Context (optional) ................................................................ 72.1.3 Out of Scope ..................................................................................................... 82.2 Capabilities........................................................................................................ 82.3 Delegation......................................................................................................... 92.4 Service Groups Provided ................................................................................ 102.5 Business Objects Referenced......................................................................... 102.6 Comments....................................................................................................... 10© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 4 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.doc1 Description1.1 NameOffer Management1.2 Unique Identifier1.3 Place in Hierarchy• Related to Service Landscape Version:o Version: 1.0o Status: final• Business Area:o Name: Sales & Serviceso Status: approved• Business Domaino Name: Saleso Status approved1.4 RationaleIf a customer wants one or more loans from a bank, the offer is the staple of these loans. The offer is theBank's economic assessment of all current loans. The approval process can be set for either each loan orthe complete offer.The offer is a summary of the current agreements, and provides all necessary operations for the creationand decision-making process. After the signing of the documents (contract) the life cycle of the offer ends.© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 5 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.doc2 Sub Domain Definition2.1 ResponsibilitiesRef# Name DescriptionManager OfferCapture Business PartnerDetermine and CheckFinancing RequirementsProcess Product MatchingThe full lifecycle of the offer is the main responsibility ofthis Sub Domain.Capture new or query existing business partner.Capture rough financing need (basic loan data).Get relevant products that may match the businesspartner’s needs and choose the fitting/appropriate ones.Complete Charges andInsurancesDetermine Product Conditionsand RatioSimulate the Execution of anagreed OfferCheck SubsidyCheck Credit StandingCheck Credit WorthinessProcess Rating (aka Scoring)Capture CollateralRequest Provisional Allocationof CapitalProvide Risk ProvisioningProcess AdjudicationGet Bank Offer DecisionIssue OfferInitiate Agreement PreparationAdd optional fees and insurance.Through selection of a product, the standard parameters(like conditions) are predefined for the agreement.Use a chosen product, combined with the individual offerdefinition (amount, fees, …) to simulate the execution.This will include the generation of the payment plan.Check whether a subsidy is possible for the businesspartner.Capture income/expenses and existing commitment.Obtain business partner information about worthiness frominternal and external information systems.This may include an external call to a Credit AgencyInformation (e.g. Schufa).Calling services for fraud detection (Query of ablacklist, …) may also be included. They are delegated toan undefined defined sub domain within the ServiceLandscape. (This subdomain is yet to be defined.)Rate the business Partner using his information(external/internal/personal information).Pre-capture collateral that is consolidated/completed in theagreement.Prepare the liability to cover the needed offer capital.Inform accounting and risk about the offer provisioning.Capture decision-maker votes.Make the offer decision from the banks point of view.After decision by the bank the offer is presentated to thebusiness partner, in the form of a printed offer document.Create an agreement having a status like ‘pre-acceptedoffer”. The agreement will be consolidated in the© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 6 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.docagreement processing.Complete OfferCancel OfferComplete the offer after a positive feedback from thebusiness partner.Cancel the offer after receiving feedback from the businesspartner or after getting a time out having no feedback.2.1.1 SummaryFrom the BIAN Service Landscape point of view this Sub Domain defines the generic content. For thisversion the Requirements are defined by members of the Workgroup Lending and are scoped on thelending demands. Hence the complete lending requirements are not yet defined: Only responsibilities andcapabilities that can be uniquely assigned to ‘Lending’ are described in this sub domain.The Sub Domain 'Offer Management' presents the whole life cycle of an offer. An offer is a summary ofthe agreements, at the current time, which the Bank agreed with the customer. Thus, the offer exists onlytill the decision process. With the signing of the documents ending the life cycle of the offer and thesubsequent activities are controlled by the agreements. At this point the offer is converted into anagreement.2.1.2 Business Process Context (optional)In this version of the generic ‘Offer Management’ specification the content is limited to the requirementsdirectly coming from the lending value chain process.Within the complete ‘Loan Processing’, the operations defined here are used in the first main process‘Loan Front Office Processing’.The following picture gives an orientation where this Sub Domain is focused on.Picture 1 – Process View including Sub Processes for ‘Loan Front Office Processing’Note that activities of ‘Consulting Services’ are still out of scope and will be covered by other sub domainsof ‘Sales’.© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 7 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.doc2.1.3 Out of ScopeOut of scope is the context workflow or business process itself: This sub domain specifies the ServiceOperations which will be used (orchestrated) in one ore more workflows defining the sales process ofLending product.Note: Where to allocate context workflows within BIAN is an open item of AF+F Group.2.2 CapabilitiesRef# Name DescriptionManager OfferDetermine and CheckFinancing RequirementsComplete Charges andInsurancesThe full lifecycle of the offer is the main capability of thisSub Domain.Capture rough financing need (basic loan data).Add charges and insurances.Determine Product Conditionsand RatioSimulate the execution of anagreed OfferCheck SubsidyCheck Credit StandingProcess AdjudicationDetermination of loan conditions that can be only partiallydelegated to the domain ‘Calculation Services’ of thebusiness area ‘Operations & Execution’.Use a chosen product combined with the individual offerdefinition (amount, fees, …) to simulate the execution.This will include the generation of a payment plan.Note that nearly all services referenced in the simulationrun are delegated to sub domains of the business area‘Operations & Execution’.Check whether a subsidy is possible for the businesspartner.Capture income/expenses and existing engagements.Capture decision-maker votes.Note that information about competences is delivered bythe sub domain ‘Employee Competency Management’.Get Bank Offer DecisionIssue OfferComplete OfferCancel OfferMake an offer decision from the banks point of view.Note that some general decision management functionalityis delegated to the sub domain ‘Underwriting’.After decision by the bank the offer is presentated to thebusiness partner. This may be done in the formof a printedoffer document.This acts as the trigger for the creation of the requireddocuments. These documents will then be submitted to thecustomer for signature.Complete the offer after a positive feedback from thebusiness partner.Cancel the offer after a feedback from the businesspartner or if no feebback is recieved.© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 8 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.doc2.3 DelegationRef# Name DescriptionInitiate the Creation of BusinessPartnerFor new business partners, initiate the creation of businesspartner during offer processing.The Creation Service is referenced from the domain‘Business Partner’ of the business area ‘Reference Data’.Query Existing BusinessPartnerProcess Product MatchingDetermine Product Conditionsand RatioUse Operation Contractservices in simulation modeCheck Credit WorthinessQuery Existing CollateralInitiate the Creation ofCollateralProcess Rating (aka Scoring)Query competence of UserExisting business partners are read from the partnermodule. This corresponds to a delegation to the domain‘Business Partner’ of the business area ‘Reference Data’.Depending on the financing request of the businesspartner, products, condition and charge packages areloaded and presented to the business partner. Then, it isdelegated to the domain ‘Product’ of the business area‘Reference Data’.Various ratios of the loan offer, e.g. the effective interestrate, are already calculated during the offer phase. If theoperations are generally applicable, they are located in thedomain ‘Calculation Services’ of the business area‘Operations & Execution’ or in the domain ‘Foundation’ inthe business area ‘’.The sub domain will support a simulation for contractswhich are executed at a later stage. To do so severalservices derived from business area ‘Operations &Execution’ will be used.Required information is determined from external systems(e.g. Credit Agency Information). The services arereferenced from the sub domain ‘Credit Management’ ofthe business area ‘Operations & Execution’ in general.Services for fraud detection (Query of a blacklist, …) mayalso be included. Note that it is not yet clear where thiscomplex functionality will take place within the BIANService Landscape.If the business partner has already deposited collateral atthe bank, these can be referenced from the collateralmanagement. Within the BIAN Service Landscape thisservices can be found in sub ‘Collateral Admin’ of thebusiness area ‘Operations & Execution’.Pre-Capture collateral that is consolidated/completed in theloan contract.The Creation Service is referenced from the domain‘Collateral Admin’ of the business area ‘Operations &Execution’.The business partner is rated using his information(external/internal/personal information).The services are provided by the business area ‘Analytics’.It is not yet clear which sub domain in detail will bereferenced.For processing the adjudication of several decision-makers© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 9 of 10

BIAN Specification Level 1BIAN SubDomain_Definition_Offer_Management_V1.docthe competences of each is important. The services of thesub domain ‘Employee Competence Management’ arereferenced for getting this information.Request Provisional Allocationof CapitalProvide Risk ProvisioningProcess Decision RulesInitiate Agreement PreparationPrepare the liability to cover the needed offer capital.This is done by a delegate to the services of the domain‘Finance & Risk Valuation’ of the business area ‘Analytics’.Inform accounting and risk about the offer provisioning.This is done by using the services of Domain ‘Finance &Risk Valuation’ of the business area ‘Analytics’.Within the offer decision processing general functionality isused referencing the services of the sub domain‘Underwriting’ in the business area ‘’.Create an agreement having a status like ‘pre-acceptedoffer’. The agreement will be consolidated in theagreement processing.This is done by a delegation to sub domain ‘AgreementManagement’.2.4 Service Groups ProvidedRef# Service Group Description2.5 Business Objects ReferencedRef# Business Object Name DescriptionOfferLoan OfferBecause of the generic behaviour of this Sub Domain theOffer object defines an abstract, lending independent basedefinition.The specification includes the business partner objects of anew business partner or references to existing businesspartner objects that have been determined using a query.Within the offer, n-products are held for n-financingrequests which are enriched during the capture.The actual loan offer object that includes all information ofoffer processing. It is a Sub Type of the general OfferType.Collateral information that is generally stored in a collateralmanagement system is also included.2.6 CommentsThe list of Service Groups is not yet defined in this Level 1 Specification. Especially the ServiceOperations derived from several Use Case defined in Level 2 will bring more details about the neededService Groups.© 2010 BIAN e.V.P/O-Box 16 02 5560065 FrankfurtGermanyPage 10 of 10