Business & IT

Validation of the business model

(Inter)national players are still planning to enter the German market. For these as well as for existing companies a future-oriented business model must be well thought through. The focus must be placed on the central business areas, as perceived by the customers while defining the areas of competitive advantages. The entire organizational structure must be aligned to achieve these goals. All criteria must be fulfilled to achieve maximum Only when these criteria are fulfilled a high value-added potential is within reach.

You are planning to expand your future product range? You are planning to obtain BaFin authorization for a service requiring a license? You would like to establish your own capital management company (KVG) to launch open-ended and closed-ended investment funds? In a first step, a feasibility including an estimate of the costs of the formation as well as a profitability and competition analysis needs to be prepared. In case of feasibility (make-or-buy), a GAP analysis needs to follow mainly based on legal grounds and their implementation.

Our many years of expertise in market entry considerations and studies as well as support for start-ups are a great benefit. VIVACIS has supported numerous BaFin KVG or financial services institution licensing processes in real estate/private equity and venture capital companies as well as financial services providers. In doing so, we support our clients in the preparation and review of the necessary documentation for a successful BaFin licensing. Taking advantage of the scope permitted by regulatory law, documentation is newly prepared or existing documents are supplemented where necessary and combined into a written guideline (SFO). In addition, we also support our clients in the selection and integration of service providers (such as fund administration platforms and custodians) and software.

Once the legal requirements have been implemented, we will support our clients in carrying out their future activities in operational business operations. This includes internal audit, money laundering, compliance officer and data protection officer or support services in operational risk management as well as the IPM officer.

A central element of the risk profile of KVGs or institutions is the analysis of the business model. Viability and sustainability of the business model are in the focus of regulatory authorities, this is especially true for the question how the income is generated. It analyses whether current earnings are expected to be stable in the future – despite possible structural changes, strong competition and advancing digitalization – and how the KVGs and institutions may have to adapt their business model. Due to continuously low levels of interest earning risks are of major importance for KVGs and institutions, especially while competitive and cost pressures are increasing.

Our expertise is the analysis of the existing business model forming it into a future-oriented, regulatory-compliant company strategy by utilizing the permissible scope.

Are you aware of the scale of potential disruption and are you prepared to react quickly enough to adapt to it? The speed of technological change, rising consumer expectations and increasing regulation are key challenges that are upending many of the industry’s traditional ways of working. Introducing digital innovations early on enables asset managers and institutions to increase customer loyalty, open new growth areas, reduce costs and minimize risks.

Within a few weeks, the Corona pandemic has forced many companies to a new level on how they collaborate internally and externally. It´s now time to seize this momentum and tap further potential, i.e. to digitalize existing processes.

It is our pleasure to support our clients in defining a digital strategy that is aligned to the business goals and customer needs. Additionally, we assist in adapting or deriving the organizational model alongside the digital transformation. Our approach focuses on the development of a digital strategy, keeping in mind metrics and control mechanisms to accompany and monitor the digital transformation.

VIVACIS has supported numerous clients to change from manual and paper-based processes to optimized and digitalized procedures. For example, VIVACIS assisted an asset manager to change the internal risk report from a highly manual Excel tool into an efficient database-supported solution.

Adaptation/ optimization of the operating model

The management is always forced to reflect on the appropriateness of all processes of the company, not only during the foundation and growth phases.

Some essential services are currently outsourced even though it would be more sensible to perform them inhouse due to increased business volume (make). Additionally, a company can position itself as an insourcing service provider by offering services to others that are successfully performed internally.

Sometimes processes are performed in-house even though valuable (human) resources are tied-up for the handling of very few cases per month. The same applies to IT systems, the set-up and operation of customized software is expensive, complex, and risky. Here, too, outsourcing often makes more business sense (= buy).

In many customer projects, VIVACIS has analyzed the process landscape or selected processes, evaluated them, and made recommendations. It is important to us that the company strives for a balanced landscape for as many processes as possible.

In the case that the Make-or-buy analysis leans towards a Buy recommendation, it is important to find the right mode of operation {(local installation, software hosting, Software-as-a-Service (SaaS), Business Process as a Service (BPaaS)} as well as the selection of the best IT-solution. This must be well aligned with the business model, processes, risk management and the ever-increasing regulatory requirements. With the multitude of standard software to choose from and with increasing complexity and interoperability of systems, this is not an easy task for decision-makers.

For many years VIVACIS has offered specialized services in selecting and successfully integrating software and service providers and supported migration projects.

The base for the decision is always the strategy identification, which leads to a long list that usually includes the potential software manufacturers and service providers (SaaS and BPaaS). In joint workshops we identify the customers’ needs, which are then used to prepare the specific Request for Information (RfI).

After creating, distributing, and evaluating the questionnaire, we distil the short list whose candidates are invited to a presentation. This is followed by a proof-of-concept with a few candidates and visits to reference customers. Finally, based on the knowledge gathered, a final, joined recommendation is made to the board. In this whole process our clients benefit greatly from the seniority of our consultants.

The foundation of a solid and sustainable outsourcing relationship is to ensure the proper execution of all tasks by the service provider within the established benchmark. Components of this benchmark are both (supervisory) legal and economic aspects, tailored to the contractual agreements (service levels). Measurement and assessment of the outsourced service based on defined standards, methods and processes are also a central element of a functioning service provider management. A model consisting of four components has proven to be effective. The link between all four components is the so-called KPI (Key Performance Indicator) control: ICS, evaluation of service reports, evaluation of feedback reports and year-end controlling.

Our successfully designed outsourcing processes help our clients to focus on their core capabilities and to decisively improve their strategic positioning in competition. In addition, both profitability and service quality can be increased as a result. In this context, it is not only clearly structured processes that are important in the outsourcing decision. For a solid and sustainable outsourcing relationship, it is also important to ensure the proper performance of the service provider within the framework of service provider management. If these factors are considered, nothing will stand in the way of a successful outsourcing of your business processes.

Improve efficiency

The various market and regulatory requirements can only be met economically if an integrative approach is agreed upon. Decision-makers still react with cost-cutting and product innovations. However, the goal must be an optimized and innovative process and quality management.

Modern (business) process management includes various activities, e.g., process analysis, modelling, key figure formation and benchmarking, process monitoring or optimization. In the area of process optimization, different approaches and methods have become common in recent years. They can be used independently, but also in combination. These are CIP/ KAIZEN, LEAN Production/ LEAN Management and SIX SIGMA. The driving force behind the improvement of process results is to be able to better recognize and, above all, fulfil the wishes and requirements of internal and external customers. Typical purposes are improvements in yield, error rates, process capability, lead times, on-time delivery, manufacturing costs, but also transparency, customer satisfaction and legal certainty.

It is not always about achieving many small improvements, but rather some significant ones – so talk to us and together we will find the appropriate method for you. This enables our clients to operate more successfully in the market and competition.

 

Architecture/ Equipment IT & Software

The IT architecture and IT organization represents a significant success and cost factor in the financial and real assets sector. IT is the basis for doing business along all value chains, and thus no sustainable and socially accepted business is possible without information security. The official related framework is very detailed and based on various norms and standards, which now comprise several thousand pages.

With the introduction of BAIT, KAIT and VAIT, BaFin has specified how information security is to be implemented: various concepts and plans are to be developed and kept up to date (e.g., IT strategy, information security guideline and emergency concept) and the new role of information security officer is to be created and suitably staffed.

The challenge for the market participants lies in defining the adequate design of their security organization and to live-up-to it.

VIVACIS has supported numerous implementation projects for well-known clients. We assist our clients in developing solutions that meet regulatory requirements but are also pragmatic and unbureaucratic.

Our own certified IT-Security and Chief Information Security Officers (CISO) can take over the role of Information Security Officer (ISB) or support your teams in the technical implementation of these challenging tasks.

In a professional IT architecture, comprehensive emergency concepts are an integral part of business continuity management (BCM), which is also required by various other regulations.

We have developed emergency concepts for numerous clients, which have now been an integral part of the respective process landscape for years. In addition to permanent updating (especially of contact data), regular testing is important to evaluate whether the concept is still suitable.

The test phase in every software development project becomes more and more intense as the range of functions increases. The goal is to reach production with software as bug-free as possible. In addition to the typical tests checking the stable functioning and the implementation according to the specification, other areas are progressively being tested.

In addition to restore and recovery tests, ergonomics (e.g., in accordance with DIN EN ISO 9241) are frequently tested and penetration tests such as comprehensive security tests are conducted.

In recent years, we have planned and executed tests in intensive customer projects, implemented them independently or accompanied and evaluated their implementation. Our customers benefit greatly from the fact that VIVACIS consultants master the test methodology and can also build the bridge between functional and technical aspects. This is a great added value in the business relationship. Our consultants think alongside the client, the test plan is a guideline not a firm method.