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SAP and SCS offer product pricing system
Las Vegas - November 14, 2007 - Continuing its focus on providing banks the flexibility they need to integrate, migrate and update application functionality based on an integrated platform, SAP AG today announced an alliance with Computer Sciences Corporation to enable banks to conduct optimized product pricing. The collaboration between the two industry leaders will bring together theSAP® Price Optimization application with CSC’s Hogan Core BankingSystem, simplifying CSC clients’ access to sophisticated pricing options.

The overall collaboration will complement CSC’s Hogan Core BankingSystem, which is high-performance banking software, with the strength of technology and banking applications from SAP to help banks improve their productivity, manage change and optimize their core processes quickly. The goal of the alliance is to provide banks the flexibility they need to integrate, migrate, and update application functionality based on strategies to consolidate and streamline platforms. The joint offering will focus on providing a tool suite that can predict optimized pricing scenarios across banks’ product portfolios. SAP and CSC have focused on pricing to help banks find better ways to generate new revenues and increase product sales through improved strategic andoperational impact analysis of loan and deposit data. In today’s environment, pricing is critical to banks’ success, and the traditional pricing models are not sophisticated enough to shift rapidly with frequent market changes.

The SAP Price Optimization application goes beyond traditional pricing offerings. It focuses on critical components of banks’ strategy, such as risk management, asset and liability management, customer relationship management (CRM), sales management and profitability to measure the impact of these dynamic factors simultaneously and flexibly. The application takes pricing factors into consideration and statistically determines the price elasticity of a product. Itconsiders pricing factors such as demand modeling, seasonality, customer behavior, current market rate and competitive analysis. The end result is a set of product rates for the various sales regions. These optimized rates align with banks’ go-to-market strategies andscientifically support their desire to increase profits, volume orprofitable volume.

“Interfacing CSC’s Hogan Core Banking System with the SAP PriceOptimization application gives a large percentage of the world’stop-tier banks easy access to tools to improve their agility and reducecustomer attrition with attractive retail banking market pricing,” saidJim Cook, president of CSC’s Financial Services Sector. “This isanother example of CSC’s continuous innovation to help our clientsgenerate new revenues from their financial product portfolios.”

“In a fragmented market, this alliance will offer pre-integratedcomponents that minimize implementation time and cost,” said Thomas Balgheim, head of global banking line of business, SAP AG. “Banks haveworked hard to reduce costs and increase revenues, and yet they still struggle to differentiate themselves. Price optimization technologyrevolutionizes how banks price products in the market and ensures thatno money is left on the table in customer sales opportunities.”

The alliance with CSC marks yet another collaborative effort within thelast seven months that SAP has made with leading banking providers, including Misys and Callataÿ & Wouters (see September 18, 2007 press release titled, “SAP and Misys Partner to Deliver Integrated Solutions for the Global Banking Industry” and September 11, 2007 press release titled, “SAP and Callataÿ & Wouters Collaborate to ProvideIntegrated Banking Solution”). The goal of the alliances is to enable abusiness process platform for the banking industry, based on anintegrated platform to orchestrate industry-specific, reusable enterprise services and business process elements.

About SAP
SAP is the world’s leading provider of business software*. Today, morethan 43,400 customers in more than 120 countries run SAP®applications—from distinct solutions addressing the needs of smallbusinesses and midsize companies to suite offerings for globalorganizations. Powered by the SAP NetWeaver® technology platform todrive innovation and enable business change, SAP software helpsenterprises of all sizes around the world improve customerrelationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcareand the public sector. With subsidiaries in more than 50 countries, thecompany is listed on several exchanges, including the Frankfurt stockexchange and NYSE under the symbol “SAP.” (Additional information at http://www.sap.com.

(*) SAP defines business software as comprising enterprise resourceplanning and related applications such as supply chain management,customer relationship management, product life-cycle management andsupplier relationship management.

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