1. At BA Conference, ThoughtWorks®, Pune
On September 15, 2012
By Lokesh Parakh

2. Payment Industry
Innovation Disruption
Opportunities
Mindset Analysis Skill Set

3. Payment Industry

4. Payments is transfer of money from one party to
another, typically in exchange of goods
Barter system Precious Paper money Symbolic Digital cash
• Premature times metal coins • ~1700 AD money • Soon, we will be
• Exchanging • ~600 BC • Today there
• Provisioning • Bitcoin?

5. Source: Payfirma – Payment Ecosystem

6. …. simple for ecosystem
Source: Australian Payment Association, Low Value Payments, 2008

7. Source: Australian Payment Association, Low Value Payments, 2008

8. Source: Australian Payment Association, Low Value Payments, 2008

9. Innovation

10. Search Payments
Google offers
Source: Google Commerce

11. Apple has potential to leverage 225 million cards through
its Passbook wallet and NFC enabled devices
Source: www.apple.com

12. Source: McKinsey Global Institute

13. Analysis
Possibilities vs Synergies

14. Business
Technology Operation
By working at intersection of conflict and innovation!

15. Wear multiple hats
Disseminate relevant information
Enable decisions
Obtain commitments
Participate at every stage

16. Managing Leadership
•Team
•Vision
•Client
•Inspiration
•Self
•Delegation
Business Need
•Competitive Implementation
•Organizational •Dedication
•Financial Problem Intuition Solution •Reaction
•Operational •Completion
•Iteration
Data
Analyzing Presenting
•Framing •Structure
•Designing •Buy-in
•Gathering
•Interpreting
Source: The McKinsey Mind

17. Case Study
MasterCard’s first Private Label Card

18. Requirement Source Requirement Owners Gather
 Issuing Bank (AUB)
• Based on MoU,
 Merchant (Sultan Center)
prepared a
 Program sponsor (Bait Zakat) comprehensive
External
 Card Association (MasterCard ) business
 Central Bank (NBK) requirement
document
• Retained only
justifiable
requirements
 Business team
Internal
 Operations team
Baseline

19. Interpret Frame Design
• GAP analysis
between • Prepared initial
requirements and • What to offer? hypothesis
card management • How to offer? • Built prototype
system • Degree of flexibility • Conducted
• Prioritized “must walkthroughs
have” and “good to • Finalized framework
have” features
Suitability Direction Roadmap

20. When it’s data or intuition;
Use Decision Support Systems
Intuition
Data

21. Based on priorities developed a framework to evaluate options on
breadth of functionality, technology and commercial viability
Option A Option B
Parameters Weightage
Score Weight Score Weight
Functional 50% 86% 43% 82% 41%
Technical 25% 74% 19% 86% 22%
Commercial 25% 65% 16% 90% 23%
Net 100% 78% 85%
Rank 2 1
Achieve legitimate advantage over competition

22. Particulars Year 1 Year 2 Year 3
Net Cost / benefit B-A
Total project cost (20% contingency) A
Internal Cost
Staff cost
Other
External Cost
Capital Cost (Technology)
Implementation Services
Project Contractors
System Gap-analysis & Enhancement scoping
Operating Cost (Technology)
Annual Maintenance - Hardware / Software
Transaction Telecommunication Costs
Payment Scheme cost
All other costs
Capital Expenditure
Miscellaneous
Total tangible project benefit B
Increased Revenue
Avoided Costs (example: Funding from Partners)
Other (Improved Service)
Postulate return on investment

23. As an Analyst we can help industry
players bridge the challenges
Lokesh Parakh
E-mail: Lokeysh@gmail.com