Expert solutions for regulatory requirements in the banking sector
Basel III
Basel III places increased demands on the capital, liquidity, and risk management of banks. We support you in the efficient implementation and sustainable compliance with these complex regulatory requirements.
- ✓Optimization of capital allocation and efficiency
- ✓Improved liquidity management and stress testing
- ✓Integrated risk management frameworks and processes
- ✓Efficiency gains through automation and standardization
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Basel III
Our Strengths
- In-depth expert knowledge of regulatory requirements and best practices
- Many years of experience in implementing Basel standards at various financial institutions
- Comprehensive approach that integrates regulation, risk management, and business strategy
- Innovative technology solutions for the automation and optimization of regulatory processes
⚠
Expert Tip
A successful Basel III implementation requires not only fulfillment of the minimum requirements, but also strategic integration into your business processes in order to achieve competitive advantages and maximize capital efficiency.
ADVISORI in Numbers
11+
Years of Experience
120+
Employees
520+
Projects
Together with you, we develop a tailored approach for the effective implementation and ongoing compliance with Basel III requirements.
Our Approach:
Conducting a comprehensive as-is analysis and gap identification
Developing a strategic Basel III roadmap with clear milestones
Implementation and adaptation of processes, systems, and governance structures
Integration and automation of reporting and notification processes
Continuous monitoring, validation, and optimization of implemented solutions
"The implementation of Basel III is not only a regulatory necessity for financial institutions, but also a strategic opportunity. With our support, banks can not only fulfill the requirements but also use them to improve their risk control and achieve competitive advantages."
Andreas Krekel
Head of Risk Management, Regulatory Reporting
Expertise & Experience:
10+ years of experience, SQL, R-Studio, BAIS-MSG, ABACUS, SAPBA, HPQC, JIRA, MS Office, SAS, Business Process Manager, IBM Operational Decision Management
Our Services
We offer you tailored solutions for your digital transformation
Basel III Gap Analysis and Implementation Strategy
We analyze your existing processes, systems, and methods with regard to Basel III requirements and develop a tailored implementation strategy.
- Detailed assessment of the current compliance situation
- Identification of gaps and areas for improvement
- Development of a prioritized roadmap for implementation
- Cost-benefit analysis of various implementation options
Capital and Liquidity Management
We support you in optimizing your capital and liquidity management in line with Basel III requirements.
- Development of strategies to optimize capital allocation
- Implementation of improved liquidity management frameworks
- Development and implementation of stress tests and scenario analyses
- Integration of capital and liquidity planning into business strategy
Looking for a complete overview of all our services?
View Complete Service OverviewOur Areas of Expertise in Regulatory Compliance Management
Our expertise in managing regulatory compliance and transformation, including DORA.
DORA Digital Operational Resilience Act
Stärken Sie Ihre digitale operationelle Widerstandsfähigkeit gemäß DORA.
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Regulatory Transformation Projektmanagement
Wir steuern Ihre regulatorischen Transformationsprojekte erfolgreich – von der Konzeption bis zur nachhaltigen Implementierung.
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Frequently Asked Questions about Basel III
How does Basel III influence our bank's strategic capital planning, and what advantages does ADVISORI's approach offer over conventional solutions?
Basel III transforms fundamental capital planning processes from a pure compliance exercise into a strategic instrument of corporate management. For senior leadership, this means a more complex but also strategically more valuable capital allocation with significant implications for the institution's profitability and growth potential.
🔍 Strategic implications of Basel III for capital planning:
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Increased capital requirements: The tightened capital ratios (CET1, Tier 1, total capital ratio) require more stringent prioritization of business lines by capital efficiency.
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Capital buffer management: The various buffers (capital conservation buffer, countercyclical capital buffer, G-SIB/D-SIB surcharges) require forward-looking management with direct implications for dividend policy and share buybacks.
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Leverage ratio as a hard constraint: The unweighted leverage ratio limits balance sheet expansion and forces strategic decisions in low-margin but balance-sheet-intensive businesses.
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Output floor: The restriction on risk reduction through internal models requires a reassessment of the model landscape and business strategies.
💡 The ADVISORI approach to strategic capital planning:
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Integrated capital optimization: We connect regulatory requirements with economic capital allocation in a comprehensive framework that ensures compliance while maximizing shareholder value.
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Scenario-based strategy development: Our advanced simulation models enable the evaluation of various business strategies under multiple regulatory and macroeconomic scenarios.
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Dynamic capital allocation: We implement management systems that continuously and automatically allocate capital to the most profitable business areas, taking regulatory constraints into account.
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Strategic digitalization approach: Our technology solutions transform the capital planning process from a quarterly, resource-intensive project into a continuous, data-driven management instrument.
What concrete competitive advantages can our bank achieve through a strategic rather than purely compliance-driven implementation of Basel III?
A strategic implementation of Basel III goes far beyond mere fulfillment of regulatory requirements and can generate significant competitive advantages that directly affect your bank's market position, profitability, and long-term resilience. While many institutions view Basel III primarily as a compliance requirement, a strategic approach offers considerable differentiation potential.
🚀 Strategic competitive advantages through Basel III:
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Optimized capital efficiency: Through advanced RWA optimization and strategic portfolio management, you can conduct more business with the same capital and achieve higher returns than competitors.
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More precise risk assessment: Improved risk models and processes lead to more accurate pricing models, enabling risk-adjusted pricing and avoiding misallocations.
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Liquidity management as a value driver: Sophisticated NSFR and LCR management can significantly reduce funding costs and increase earnings margins.
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Accelerated decision-making processes: Automated, data-driven capital and risk processes enable faster responses to market opportunities than manually operating competitors.
🛠 ️ ADVISORI's approach to creating strategic advantages:
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Business model integration: We embed Basel III metrics directly into business decisions and product design, rather than treating them as an afterthought.
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Technological transformation: Implementation of advanced analytics platforms that connect regulatory calculations with management information systems and enable real-time management.
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Data quality as a competitive advantage: Building superior data infrastructures that not only ensure compliance but also enable deeper business and customer insights.
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Culture of capital efficiency: Development of incentive systems and performance metrics that promote capital-efficient behavior at all levels and embed it in the corporate culture.
How can we use the substantial investments in Basel III compliance to simultaneously advance our digital transformation?
The implementation of Basel III and the digital transformation of your bank should not be viewed as separate initiatives, but as synergistic processes that can mutually reinforce each other. Investments in regulatory compliance can serve as a strategic catalyst for the broader digital modernization of your institution and generate considerable added value.
🔄 Synergies between Basel III and digital transformation:
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Data infrastructure as a shared foundation: The data aggregation and quality required for Basel III forms the basis for data-driven business models and AI applications.
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Automation as an efficiency driver: The automation of regulatory processes can serve as a blueprint for automating further business processes and promoting operational excellence.
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API ecosystems: The interfaces required for regulatory reporting can be extended to enable open banking functionalities and partnerships with FinTechs.
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Cloud migration: The modernization of risk and financial systems can be the starting point for a broader cloud strategy that increases scalability and speed of innovation.
🔋 ADVISORI's integrated transformation approach:
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Strategic technology planning: We develop a technology roadmap that connects regulatory requirements with strategic digitalization goals and eliminates redundancies.
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Modular architecture: Implementation of flexible, microservice-based solutions that support both regulatory agility and digital innovation.
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Data governance as an enabler: Building an enterprise-wide data governance framework that fulfills regulatory requirements while simultaneously opening up new business opportunities.
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Agile delivery methods: Use of agile methods for the parallel implementation of regulatory and innovative initiatives with rapid feedback cycles and continuous value creation.
What strategic risks arise for our institution if we implement Basel III only minimally, and how can ADVISORI help us transform these risks into opportunities?
A minimal, purely compliance-oriented implementation of Basel III carries significant strategic risks that go far beyond regulatory consequences. These risks can jeopardize the competitiveness, profitability, and ultimately the viability of your institution. ADVISORI supports you in transforming these challenges into strategic opportunities.
⚠ ️ Strategic risks of a minimalist Basel III implementation:
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Capital inefficiencies: Without advanced optimization methods, you tie up more capital than necessary, leading to lower returns and weakening your competitive position.
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Digital lag: Banks that use Basel III as an opportunity for modernization build a technological lead that generates competitive advantages across all business areas.
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Limited business flexibility: Without integrated capital and liquidity planning, the agility to respond quickly to market changes and opportunities is lacking.
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Increased compliance costs: Manual, fragmented processes permanently incur higher operating costs than automated, integrated solutions.
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Strategic misallocations: Without a thorough understanding of the regulatory implications for various business lines, you risk misallocating resources.
🌟 ADVISORI's transformation approach – from risks to opportunities:
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Strategic capital analysis: We identify business areas with suboptimal capital efficiency and develop optimization strategies that can significantly increase returns.
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Digital maturity analysis: Assessment of your technological starting position and development of a prioritized modernization roadmap with quick wins and long-term transformation goals.
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Operational excellence: Implementation of a target operating model that combines regulatory efficiency with operational flexibility and sustainably reduces costs.
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Strategic competency development: Building internal capacities for continuous optimization and innovation in the regulatory context to avoid long-term dependencies.
How can we use the extensive liquidity requirements of Basel III (LCR, NSFR) to strategically reposition our treasury function?
The liquidity requirements of Basel III – in particular the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) – are often perceived primarily as a regulatory burden. With a strategic approach, however, they offer the opportunity to transform the treasury function from a traditional cost center into a strategic value driver.
💧 Strategic repositioning of treasury through Basel III:
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From liquidity manager to strategic resource allocator: The need to simultaneously optimize various liquidity metrics requires and enables a more active role for treasury in business management.
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More precise funding mix management: The differentiation of funding sources by stability (NSFR) enables finer alignment of the funding mix with business objectives and can significantly reduce funding costs.
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Integration into product development: Early consideration of liquidity effects in the development of new products can establish liquidity costs as an active design parameter.
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Dynamic balance sheet management: Continuous monitoring and projection of liquidity metrics enables proactive rather than reactive balance sheet management with positive P&L effects.
🔮 ADVISORI's advanced liquidity management approach:
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Integrated management logic: We develop management models that connect regulatory liquidity metrics with economic objectives (margin contributions, cost of capital) in a comprehensive framework.
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Scenario-based modeling: Implementation of advanced scenario analyses to simulate the liquidity impact of various business strategies and market scenarios.
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Technological transformation: Building modern treasury platforms that enable real-time data analysis, advanced visualizations, and automated management signals.
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Treasury-as-a-Service: Development of internal service models in which treasury acts as a strategic partner for business units and offers liquidity optimization as a value-added service.
What concrete approaches does ADVISORI pursue to reduce the complexity of Basel III implementation for top management while simultaneously achieving maximum strategic benefit?
The implementation of Basel III is one of the most complex regulatory programs banks face. For top management, the challenge lies in making this complexity manageable without losing sight of the strategic dimensions. ADVISORI has developed a specific approach that enables precisely this balancing act.
🧩 Complexity reduction with maximum value creation:
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Strategic prioritization: We identify the Basel III components most critical to your business model and develop a focused roadmap that concentrates on the most significant levers.
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Executive dashboard approach: Development of tailored management cockpits that translate complex regulatory metrics into strategically relevant KPIs and provide clear decision-making foundations.
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Modular implementation: Structuring Basel III requirements into logically coherent, separately implementable modules that enable faster results and better resource allocation.
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Integrated governance: Establishing a clear but lean governance structure that connects regulatory oversight with strategic management and eliminates redundancies.
🔑 ADVISORI's key approaches for strategic simplicity:
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C-Suite translation layer: We develop communication and decision-making templates specifically designed for top management that translate regulatory complexity into business-relevant implications.
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Rapid impact assessment: Fast, focused analyses that quantify the immediate and long-term effects of specific Basel III requirements on your key metrics.
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Digital navigation system: Implementation of digital tools that allow executives to intuitively grasp complex regulatory relationships and simulate the effects of business decisions.
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Agile regulatory adaptation: Flexible implementation approaches that enable rapid adjustments to regulatory changes without interrupting or having to realign strategic initiatives.
How can we strategically optimize capital costs under Basel III, and what innovative approaches does ADVISORI offer to increase return on equity?
Basel III has significantly increased capital costs for banks – through higher capital requirements, additional capital buffers, and stricter quality requirements for eligible capital. These changes pose a fundamental challenge to return on equity (ROE). ADVISORI offers innovative approaches to strategic capital optimization that go far beyond conventional measures.
💹 Strategic levers for capital optimization under Basel III:
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Risk-sensitive portfolio management: Development of advanced analytical tools to identify transactions with a suboptimal capital-to-return ratio and systematic reallocation of capital to higher-margin activities.
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Optimization of capital structure: Strategic realignment of capital composition with a focus on cost-efficient Tier
1 and Tier
2 instruments, taking TLAC/MREL requirements into account.
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Next-generation balance sheet management: Implementation of AI-supported forecasting models for RWA development that enable proactive balance sheet management and forward-looking capital planning.
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Strategic collateral management: Optimization of collateral allocation to simultaneously reduce RWA and improve liquidity metrics.
🚀 ADVISORI's innovative approaches to increasing ROE:
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Dynamic capital performance measurement: Development of tailored management metrics that connect regulatory capital costs with economic value creation and create genuine performance transparency.
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Capital-as-a-Service models: Implementation of internal capital marketplaces that enable efficient allocation mechanisms and market-oriented pricing.
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Regulatory arbitrage 2.0: Identification of legal optimization potential through different interpretations and implementations of Basel III across various jurisdictions.
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Digital capital optimizers: Use of advanced algorithms for continuous monitoring and optimization of capital allocation with automated adjustment recommendations in real time.
How can we use Basel III to transform our data architecture and analytics capabilities, and what added value does this create beyond pure compliance?
The extensive data requirements of Basel III can be used as a strategic catalyst for a comprehensive transformation of your bank's data architecture and analytics capabilities. Such a transformation generates considerable added value beyond regulatory compliance and creates the foundation for data-driven competitive advantages across all business areas.
📊 Strategic data transformation through Basel III:
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Enterprise data architecture: The integration of risk, financial, and customer data required for Basel III enables a comprehensive 360° view of the business and forms the basis for advanced analytics.
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Data quality as a strategic asset: Building systematic data quality processes for regulatory purposes creates a central competitive advantage for all data-driven initiatives, from credit decisions to customer service.
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Real-time processing capabilities: The requirement for timely risk aggregation promotes the development of real-time data processing capabilities that can also be used for operational processes and customer interactions.
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Advanced analytics foundation: The statistical models and forecasting approaches required for Basel III form the methodological basis for advanced business analytics and AI applications.
🧠 ADVISORI's approach to strategic data utilization:
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Integrated data strategy development: We connect regulatory data requirements with strategic business objectives in a coherent, multi-year data transformation roadmap.
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Business-value-driven data governance: Implementation of data governance frameworks that not only ensure compliance but actively promote business value creation through improved data utilization.
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Building analytics competence centers: Development of central analytics capacities that connect regulatory models with commercial use cases and systematically leverage synergies.
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Democratization of data: Provision of self-service analytics platforms that enable business units to use regulatory data for their own business decisions.
How does ADVISORI help us use the increased disclosure requirements (Pillar 3) of Basel III as a strategic communication instrument?
The extended disclosure requirements (Pillar 3) of Basel III are perceived by many banks primarily as a compliance requirement and administrative burden. With the right strategic approach, however, these requirements can be transformed into an effective communication instrument that strengthens investor confidence and generates a competitive advantage.
📢 Strategic use of Pillar
3 disclosures:
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From mandatory report to trust instrument: Transparent communication about capital, risks, and governance can systematically strengthen the confidence of investors, rating agencies, and other stakeholders.
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Market differentiation: High-quality disclosure that goes beyond minimum requirements can serve as a differentiating factor compared to less transparent competitors.
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Narrative control: Proactive management of market perception through strategically formulated disclosures that demonstrate your risk management excellence and strategic foresight.
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Feedback channel: Using market reactions to disclosures as a valuable source of information for the further development of business strategy.
💼 ADVISORI's approach to strategic disclosure:
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Stakeholder-centered reporting: Development of tailored disclosure formats that not only fulfill regulatory requirements but also specifically address the information needs of various stakeholder groups.
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Integration of financial communication: Harmonization of regulatory disclosures with investor relations and other communication channels into a coherent communication strategy.
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Digital disclosure platforms: Implementation of interactive, digital formats that enable stakeholders to filter and analyze relevant information in a targeted manner.
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Benchmark-based optimization: Continuous analysis and integration of best practices and market standards into your disclosure strategy for positioning as an industry leader.
What impact do Basel III requirements have on our M&A strategy, and how does ADVISORI support us in evaluating potential acquisition targets from a regulatory perspective?
Basel III has fundamentally changed the dynamics of mergers and acquisitions in the banking sector. The new regulatory requirements influence not only the valuation of potential acquisition targets, but also the strategic rationale and expected value contribution of M&A transactions. ADVISORI supports you in navigating this complexity and optimally using M&A as a strategic instrument under Basel III.
🔍 Basel III implications for your M&A strategy:
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Capital-based transaction valuation: The impact of an acquisition on capital ratios and capital buffers becomes a primary valuation criterion that complements or even dominates traditional metrics such as P/E or P/B.
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Regulatory due diligence: Detailed analysis of the regulatory compliance and hidden risks of the acquisition target becomes a critical success factor for successful transactions.
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Strategic consolidation: Basel III creates incentives for consolidations that can realize economies of scale in regulatory functions (reporting, compliance, model development).
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Changed attractiveness of business lines: The relative capital intensity of various business models under Basel III leads to a reassessment of the attractiveness of various acquisition targets and business segments.
💡 ADVISORI's M&A advisory under Basel III:
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Regulatory valuation approach: We develop tailored valuation models that combine traditional financial valuation methods with detailed regulatory implication analyses.
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Pre-deal simulation: Conducting comprehensive simulations of the combined entity, with detailed modeling of the effects on capital ratios, liquidity metrics, and regulatory requirements.
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Post-merger integration planning: Development of a regulatory-based integration plan that identifies and realizes not only operational synergies but also regulatory optimization potential.
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Regulatory negotiation support: Advisory on structuring transactions to optimize regulatory approval processes and appropriately address regulatory adjustments in transaction agreements.
How does ADVISORI support us in implementing the tightened risk management requirements of Basel III, and what strategic advantages can we derive from this?
Basel III has substantially increased the risk management requirements for banks – from governance and models to stress tests and validation processes. However, this regulatory tightening also offers the opportunity to develop risk management from a pure control function into a strategic competitive advantage. ADVISORI supports you in this strategic transformation.
🛡 ️ Strategic transformation of risk management under Basel III:
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From risk control to value creation: Development of a risk management framework that not only minimizes risks but actively contributes to optimal capital and resource allocation.
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More precise risk control: Implementation of advanced risk models and metrics that enable more accurate pricing, more targeted customer segmentation, and more effective product development.
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Systemic early warning system: Building early warning indicators and forecasting models that identify risks and opportunities at an early stage and enable strategic adjustments.
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Resilience as a competitive advantage: Transformation of stress testing from a regulatory exercise into a strategic planning instrument that promotes crisis resistance and adaptability.
🔧 ADVISORI's comprehensive risk management approach:
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Integrated risk taxonomy: Development of a comprehensive risk framework that captures and assesses all relevant risk types (credit, market, liquidity, operational risk) in a coherent methodology.
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Next-generation risk data aggregation: Implementation of state-of-the-art data architectures that enable consistent, granular, and timely risk analyses across all business areas.
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Advanced analytics for risk management: Use of machine learning and AI to identify non-linear risk relationships and optimize early warning systems.
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Strategic risk culture: Establishing a risk-based decision-making culture that promotes risk awareness and accountability at all levels and anchors risk management as an integral component of all business processes.
In what ways does Basel III change the requirements for our bank's IT infrastructure and data architecture, and how does ADVISORI help with strategic realignment?
Basel III places unprecedented demands on the IT infrastructure and data architecture of banks – from the integration of various data sources and real-time processing capacities to complex calculation and reporting requirements. This challenge simultaneously offers the opportunity for a strategic modernization of your IT landscape. ADVISORI supports you on this transformative journey.
💻 Basel III as a catalyst for IT transformation:
•
Overcoming data silos: The need to integrate data from various areas (risk, finance, trading, customer management) for regulatory calculations requires and promotes the dismantling of historically grown data silos.
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Real-time capacities: The requirements for timely risk and capital calculations drive the development of real-time data processing capabilities that can also be used for operational excellence and customer experiences.
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Flexibility and scalability: The continuous evolution of regulatory requirements necessitates the development of flexible, scalable architectures that also enable faster time-to-market for new products and services.
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Automation and efficiency: The complexity and frequency of regulatory calculations and reports drive the automation of processes, reducing operating costs and minimizing error rates.
🔌 ADVISORI's approach to strategic IT transformation:
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Regulatory technology blueprint: Development of a forward-looking IT architecture that connects regulatory requirements with strategic business objectives within a coherent technological framework.
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Data lineage and governance: Implementation of end-to-end data lineage systems that fulfill regulatory requirements while simultaneously forming the basis for data-driven business decisions.
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Cloud transformation for regulatory purposes: Strategic use of cloud technologies to manage regulatory requirements with a particular focus on scalability, cost efficiency, and regulatory compliance.
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API-based integration architecture: Development of an API strategy that not only integrates internal systems but also lays the foundation for open banking, partnerships, and new business models.
How can we use the governance requirements of Basel III to improve the strategic management capability of our bank?
The governance requirements of Basel III are often perceived as an additional compliance burden. In reality, however, they offer the opportunity to transform your governance structures so that they not only fulfill regulatory requirements but also substantially improve the strategic management capability and decision-making quality of your bank. ADVISORI supports you in this value-creating transformation.
🏛 ️ Governance as a strategic competitive advantage:
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Risk-oriented decision structures: Implementation of governance processes that integrate risks into strategic decisions at an early stage, thereby enabling better, more sustainable business decisions.
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Data-based management models: Building management information systems that connect regulatory metrics with business KPIs and enable comprehensive bank management.
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Role clarity and accountability: Precise definition of roles, responsibilities, and escalation paths that not only fulfill regulatory requirements but also promote operational excellence.
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Cultural transformation: Embedding risk awareness and regulatory understanding in the corporate culture to promote proactive rather than reactive behavior.
🔄 ADVISORI's integrated governance approach:
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Strategic governance design: Development of tailored governance structures that harmonize regulatory requirements with your specific business model and organizational culture.
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Integrated assurance framework: Implementation of a comprehensive audit approach that coordinates various control and monitoring functions (compliance, risk, internal audit) and minimizes redundancies.
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Digital governance tools: Introduction of digital platforms to automate governance processes, increasing transparency, reducing administrative burdens, and accelerating decision-making processes.
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Board effectiveness program: Specialized training and coaching programs for management boards and supervisory boards that combine regulatory knowledge with strategic competence and increase the effectiveness of supervisory bodies.
What approaches to implementing internal models under Basel III does ADVISORI recommend, and how can we use these as a strategic advantage?
The development and implementation of internal models under Basel III (IRB, IMA, etc.) involves considerable challenges – from model development and validation to supervisory approval. With a strategic approach, however, internal models offer far more than regulatory capital optimization: they can become a fundamental competitive advantage. ADVISORI supports you in this strategic transformation.
📊 Strategic advantages of advanced internal models:
•
Beyond capital optimization: Modern internal models not only enable regulatory capital efficiency but also provide deep insights into risk drivers and portfolio dynamics for strategic decisions.
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More precise pricing and portfolio management: Advanced risk models enable more accurate risk-adjusted pricing, customer segmentation, and strategic portfolio allocation.
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Competitive advantage in margin segments: Banks with approved internal models can realize lower capital costs in certain market segments and thus offer more attractive terms than less advanced competitors.
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Innovation and agility: The data and analytics capacities required for internal models form a foundation for further analytical innovations and faster responses to market changes.
🧩 ADVISORI's advanced modeling approach:
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Integrated model development: We connect regulatory requirements with economic risk principles and business priorities in a coherent modeling approach.
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Advanced analytics and machine learning: Integration of modern analytical methods into traditional statistical models to capture non-linear relationships and improve forecast accuracy.
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End-to-end model management: Implementation of a comprehensive model management framework covering the entire lifecycle from development and validation to monitoring and further development.
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Strategic regulatory communication: Support in developing an effective communication strategy with supervisory authorities that maximizes the probability and speed of approval.
How does ADVISORI support us in harmonizing our Basel III implementation with other regulatory requirements (IFRS 9, BCBS 239, etc.) and realizing synergies?
The multitude of simultaneous regulatory requirements poses an enormous challenge for banks and often leads to isolated, inefficient implementation projects. A strategic, integrated approach can not only generate significant cost synergies but also lead to superior business outcomes. ADVISORI supports you in this complex harmonization.
🔄 Strategic synergies between regulatory initiatives:
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Data synergies: The data requirements of various regulations (Basel III, BCBS 239, IFRS 9, AML) overlap considerably – an integrated data strategy can avoid duplication and ensure consistency.
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Methodological harmonization: Coordinated development of methods and models for various regulatory requirements (e.g., alignment of EL concepts between Basel and IFRS 9) reduces complexity and improves interpretability.
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Governance integration: Establishing a cross-cutting regulatory governance framework avoids silos, creates clear accountabilities, and optimizes resource deployment.
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Technological consolidation: Development of a consolidated technology architecture that serves various regulatory requirements, rather than creating isolated solutions for each regulation.
🧠 ADVISORI's comprehensive regulatory approach:
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Regulatory synergy mapping: Detailed analysis of the overlaps and interdependencies between various regulatory requirements to identify harmonization potential.
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Integrated implementation roadmap: Development of a coordinated, multi-year implementation strategy that optimally sequences regulatory projects and takes dependencies into account.
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Regulatory target operating model: Design of a targeted operating model that enables the efficient fulfillment of multiple regulatory requirements and prevents silo formation.
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Strategic stakeholder management: Coordinated communication with various supervisory authorities to harmonize regulatory expectations and address potential conflicts at an early stage.
How can our bank use the stress testing requirements of Basel III to build strategic resilience, and what innovative approaches does ADVISORI offer?
The stress testing requirements of Basel III are often perceived as a purely regulatory exercise with little business value. With the right strategic approach, however, stress tests can become a powerful instrument for developing strategic resilience and forward-looking corporate management. ADVISORI supports you in this transformation from a regulatory obligation to a strategic competitive advantage.
🔬 Strategic repositioning of stress testing:
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From regulatory ritual to strategic radar: Transformation of stress testing from a retrospective compliance exercise into a forward-looking early warning system for strategic risks and opportunities.
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Scenario-based strategy development: Use of stress test methods and infrastructures for the systematic evaluation of business strategies under various economic and competitive scenarios.
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Crisis preparation and resilience planning: Development of granular action plans and contingency measures based on stress test results that enable rapid and decisive action in a crisis.
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Management of capital flexibility: Identification of capital reserves and levers that can be activated in stress situations to maintain strategic room for maneuver even under adverse conditions.
💡 ADVISORI's innovative stress testing approach:
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Reverse stress testing plus: Extension of traditional reverse stress tests to include strategic dimensions that consider not only financial viability but also the preservation of strategic options and competitive positions.
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Dynamic stress scenarios: Development of complex, multi-stage scenarios that dynamically model feedback loops, second-round effects, and strategic adjustment measures.
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Digital twin for stress testing: Building digital twins of your bank that realistically map complex interdependencies between various business areas, risk types, and external factors.
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AI-supported scenario generation: Use of artificial intelligence to identify novel, non-obvious stress scenarios that complement traditional expert methods and uncover blind spots.
What implications does Basel III have for our product development, and how does ADVISORI support us in developing regulatory-optimized financial products?
Basel III has profound implications for the economics and attractiveness of various banking products – through differentiated capital requirements, liquidity regulations, and leverage restrictions. Strategic product development that integrates regulatory requirements at an early stage can generate significant competitive advantages. ADVISORI supports you in this regulatory-optimized product innovation.
💼 Regulatory-intelligent product development:
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Regulatory design thinking: Integration of regulatory requirements already in the conceptual phase of new products, to avoid costly adjustments after market launch.
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Capital-efficient product architectures: Development of product structures that minimize regulatory capital and liquidity requirements without compromising customer value or margin expectations.
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Smart balance sheet management through product mix: Strategic adjustment of the product portfolio to optimize regulatory metrics (RWA, LCR, NSFR) while simultaneously meeting market and customer requirements.
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Pricing with regulatory foresight: Development of pricing models that precisely reflect regulatory costs while remaining competitive and transparent.
🔍 ADVISORI's approach to regulatory-optimized product development:
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Regulatory product analysis: Detailed assessment of existing and planned products with regard to their regulatory implications and identification of optimization potential.
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Regulatory product innovation lab: Interdisciplinary workshops that bring together product management, risk management, and regulatory experts to develop innovative, regulatory-optimized product concepts.
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Dynamic product simulation: Development of simulation models that analyze the effects of various product configurations on regulatory metrics under various market and customer scenarios.
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Regulatory product governance: Implementation of governance processes that ensure regulatory aspects are appropriately considered throughout the entire product lifecycle.
What change management strategies does ADVISORI recommend for a successful Basel III transformation that brings about not only technical but also cultural changes in our bank?
The successful implementation of Basel III requires far more than technical and methodological adjustments – it demands a fundamental transformation of corporate culture and working practices. Without effective change management, even technically excellent implementations often fail due to organizational resistance and cultural barriers. ADVISORI supports you with a comprehensive transformation approach.
🔄 Comprehensive change management for Basel III:
•
Cultural realignment: Promoting a risk-aware corporate culture in which regulatory considerations become integral components of all business decisions, rather than being perceived as external constraints.
•
Leadership alignment: Developing a shared understanding at the leadership level of the strategic importance of Basel III and empowering executives to act as credible role models and promoters of change.
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Competency development: Systematic development of the necessary skills and knowledge at all levels, from technical expertise to changed decision-making behavior and risk awareness.
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Sustainable embedding: Integration of regulatory excellence into performance management systems, incentive structures, and career paths to promote long-term behavioral change.
🌱 ADVISORI's transformative change approach:
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Stakeholder-centered design: Tailored change strategies that take into account the specific needs, concerns, and motivational factors of various stakeholder groups.
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Digital change accelerators: Use of digital platforms and tools that enable interactive learning, collaboration, and continuous feedback, accelerating the transformation process.
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Change impact mapping: Detailed analysis of the effects of regulatory changes on various roles, processes, and systems as the basis for targeted change measures.
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Agile change management: Flexible, iterative implementation of change initiatives with continuous adjustment based on feedback and evolving requirements.
How should we prepare for future developments in Basel III, and how does ADVISORI support us in securing competitive advantages through forward-looking implementation?
The continuous evolution of the Basel framework – often referred to as "Basel IV" or "Basel 3.1" – presents banks with the challenge of preparing for regulatory changes whose final form and timing are still uncertain. A forward-looking, strategic approach can, however, not only minimize risks but also secure competitive advantages. ADVISORI supports you in this future-oriented positioning.
🔮 Strategic anticipation of regulatory developments:
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Regulatory early detection: Establishing systematic processes for the early identification and analysis of emerging regulatory trends and consultation papers.
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Scenario-based planning: Development of robust business strategies that remain viable under various regulatory scenarios and ensure strategic flexibility.
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Adaptive implementation architecture: Building IT systems and processes that can be flexibly adapted to new regulatory requirements without requiring fundamental restructuring.
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Proactive supervisory communication: Building a constructive, continuous dialogue with supervisory authorities to gain insights into regulatory expectations and influence one's own positioning.
🚀 ADVISORI's approach to regulatory future-proofing:
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Regulatory intelligence hub: Continuous monitoring and analysis of global regulatory developments with a focus on their strategic implications for your specific business model.
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Quantitative impact analyses: Early simulation of the effects of potential regulatory changes on capital, liquidity, and business strategy under various implementation scenarios.
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Strategic regulatory dialogue: Support in developing a proactive strategy for participation in consultation processes and dialogue with supervisory authorities.
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Regulatory innovation pipeline: Continuous development and prioritization of initiatives to optimize regulatory processes and systems, aligned with anticipated future requirements.
How does Basel III change the relationship between risk management and business strategy, and how does ADVISORI support us in optimally integrating these functions?
Basel III fundamentally transforms the relationship between risk management and business strategy – from a traditional "check-and-balance" model to an integrated, value-creating partnership. This repositioning requires not only structural and process-related adjustments but also a profound cultural change. ADVISORI supports you in this strategic realignment.
🔄 Strategic repositioning of risk management:
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From controller to strategic partner: Transformation of risk management from a primarily controlling function to an active co-designer of business strategy and value creation.
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Risk-based strategy development: Integration of risk considerations already in the early phases of strategy development, rather than subsequent risk assessment of already formulated strategies.
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Value-oriented risk control: Aligning risk management toward the optimization of risk-adjusted returns rather than mere risk minimization or compliance.
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Collaborative governance: Establishing decision-making structures that promote effective collaboration between business, risk, and finance functions and overcome silo thinking.
🧠 ADVISORI's integrated business-risk approach:
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Strategic risk framework: Development of a tailored framework that systematically links business and risk strategies and creates a common language for dialogue between business and risk functions.
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Joint strategy labs: Conducting interdisciplinary workshops that bring together business, risk, and finance experts to develop integrated strategies and constructively address conflicts of objectives.
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Integrated performance metrics: Design of KPIs and management metrics that reflect both business and risk perspectives and enable a balanced assessment of overall performance.
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Cultural alignment program: Implementation of targeted initiatives to promote a shared risk and business culture that combines risk awareness with entrepreneurial thinking.
Success Stories
Discover how we support companies in their digital transformation
Generative KI in der Fertigung
Bosch
KI-Prozessoptimierung für bessere Produktionseffizienz
Fallstudie
Ergebnisse
Reduzierung der Implementierungszeit von AI-Anwendungen auf wenige Wochen
Verbesserung der Produktqualität durch frühzeitige Fehlererkennung
Steigerung der Effizienz in der Fertigung durch reduzierte Downtime
AI Automatisierung in der Produktion
Festo
Intelligente Vernetzung für zukunftsfähige Produktionssysteme
Fallstudie
Ergebnisse
Verbesserung der Produktionsgeschwindigkeit und Flexibilität
Reduzierung der Herstellungskosten durch effizientere Ressourcennutzung
Erhöhung der Kundenzufriedenheit durch personalisierte Produkte
KI-gestützte Fertigungsoptimierung
Siemens
Smarte Fertigungslösungen für maximale Wertschöpfung
Fallstudie
Ergebnisse
Erhebliche Steigerung der Produktionsleistung
Reduzierung von Downtime und Produktionskosten
Verbesserung der Nachhaltigkeit durch effizientere Ressourcennutzung
Digitalisierung im Stahlhandel
Klöckner & Co
Digitalisierung im Stahlhandel
Fallstudie
Ergebnisse
Über 2 Milliarden Euro Umsatz jährlich über digitale Kanäle
Ziel, bis 2022 60% des Umsatzes online zu erzielen
Verbesserung der Kundenzufriedenheit durch automatisierte Prozesse
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