CASE STUDY by Xy8P50ek



Team work creates vision and clarity to new business strategy

“The Fujitsu and Rule Financial team has helped Luup to articulate and focus on its
business strategy. This project has clarified our customer targets within various sectors,
ascertained our core propositions and identified the best markets to attack for business
Thomas Bostrøm Jørgensen – Chief Executive Office, Luup



Services delivered
 Consultancy to enhance an on-going business strategy
 Specialist advice for a five-year financial plan
 Consultancy to aid market expansion and business roll-out

Key metrics
 The market is potentially worth £365 billion
 Mobile phone ownership will soon reach five billion
 110 million Europeans will shortly use mobile payment services
 1.7 billion unbanked people will have mobile phones

 Refreshed an on-going business strategy – helps to develop new business
 Developed a market positioning policy – provided vital market information
 Created a market expansion strategy – aids rapid market penetration globally
 Identified major rivals – wins business from key competitors
 Established core offerings – revealed which products to develop
 Produced business scale-up and roll-out plans – shapes the company’s future
 Generated a five-year financial plan – measures and manages financial


Luup, a leading global provider of mobile payment solutions, systems and
infrastructure, provides financial institutions with payment processing, mobile
payment applications and virtual mobile phone accounts. This advanced technology
allows mobile phone users to initiate and manage a wide range of disbursements
directly from handheld devices. Luup partners with banks and other pecuniary
establishments with the aim of creating a universal Mobile Payment Network that
offers mobile payment services to consumers and merchants.
Significant opportunities for cost savings and increased revenue drive the mobile
payments market. In developed countries, innovative mobile payment strategies
enable organisations to transform the way they deliver financial services. The market
statistics are fascinating♦. By 2012, some five billion people will own a mobile device
and, a year later, the mobile payments market could be worth about £365 billion with
110 million Europeans using mobile payment services.

In developing countries, a significant proportion of residents employ mobile
technology but few have access to traditional banking facilities. Estimates indicate
that 1.7 billion people with a mobile phone will not have a bank account.
Consequently, mobile payment solutions could bring banking services to large
unbanked populations.

Thomas Bostrøm Jørgensen, Chief Executive Office, Luup, reveals: “Under a business-
to-consumer model, we have been running a successful business in Europe for some
time. However, to aid rapid growth and exploit new global market opportunities, we
recognised that moving to a business-to-business model was the best way forward. This
strategy allows us to supply mobile payment solutions directly to banks and
telecommunication companies.”

Changing its business model has proved a wise move. Luup already has Deutsche
Bank’s Global Transaction Banking division as a major distribution partner. Moreover,
the National Bank of Abu Dhabi has signed up to the company’s Mobile Payment

“The mobile payments market has massive growth potential. It is the speed,
convenience and ‘anytime-anywhere’ nature of the services that makes them especially
attractive to end-users. For our clients, it is easily the most cost-effective channel for
delivering banking services,” continues Thomas Bostrøm Jørgensen. “Nevertheless,
after changing our business model, we needed a trusted partner to verify our plans.”


Luup chose the Fujitsu and Rule Financial partnership to conduct an intensive, highly
focussed eight week consultancy project. In conjunction with Luup’s senior executive
team, this work involved assessing the company’s target markets; developing a
market strategy by identifying geographic markets, propositions and customer
segments; generating business roll-out and scale-up plans; and producing a
comprehensive financial model.

Explaining the decision Thomas Bostrøm Jørgensen states: “A Fujitsu and Rule
Financial team had already reviewed our IT strategy. Their people therefore had a good
understanding of our business, the skills we required and excellent working
relationships with key personnel.”

From a market perspective, the team helped Luup to identify and differentiate the
business potential of various markets and build assorted market strategies and
propositions. Fujitsu and Rule Financial looked at about 20 important factors
including infrastructure maturity and the tendency to use new technologies. In
addition, it analysed Luup’s competitors by assessing their offerings, target markets
and funding.

A clear marketing strategy emerged from this far-reaching analysis. Luup knew which
markets to enter, the regions and countries to penetrate and where to expand its
existing presence. The company also established core offerings and established which
products to develop. Moreover, the analysis revealed how Luup should vie with
competitors to win business.

“This market work has been extremely useful and we are using it to move the business
forward. We can gauge different countries and regions and fully understand the
national, regional and global players within highly competitive environments. Now we
have an excellent product roadmap,” says Thomas Bostrøm Jørgensen.

Together, the teams moved on to a business scale-up plan. The scheme clearly states
which countries and regions the company should enter, where it should seek
distribution agreements and how to develop partnerships. In addition, it covers the
future size, structure and operating locations for the Luup organisation. To make
scale-up more effective, the teams jointly generated a portfolio of initiatives and
terms of reference.

Subsequently, Luup, Fujitsu and Rule Financial reviewed the current financial model
including its structure, pricing and how the new strategy could affect financial
scalability. Fujitsu and Rule Finance then built a more detailed plan based on over 100
cost and revenue variables and created a dashboard to measure and manage
financial performance. This exercise fashioned pricing, cash flow and profit and loss
models as well as return on investment calculations over a five-year period.

“The Fujitsu and Rule Financial team has helped Luup to articulate and focus on its
business strategy. This project has clarified our customer targets within various sectors,
ascertained our core propositions and identified the best markets to attack for business
success,” comments Thomas Bostrøm Jørgensen.


The consultancy services provided by Fujitsu and Rule Finance have helped Luup to:

   Refresh an on-going business strategy – win additional clients and create new
    partnerships throughout important market sectors and regions
   Develop a market positioning policy – provided market targets, identified
    geographic markets and customer segments
   Create a market expansion strategy – it is ready to penetrate the rapidly
    expanding mobile payments market on a global scale
   Identify major rivals – effectively competes with, and wins business from, key
      Establish core offerings – revealed which product propositions to develop
      Produce business scale-up and roll-out plans – shapes the company’s future and
       positions it for speedy entry into chosen markets
      Generate a five-year financial plan – includes structure, pricing, financial
       scalability, a cash flow model ,profit and loss accounts, return on investment
       calculations and a dashboard to measure and manage financial performance

“The recommendations will help Luup to deliver its mobile banking solutions across the
world. We are currently active in Africa, Europe, the Middle East, and southern Asia,”
declares Thomas Bostrøm Jørgensen.


During the consultancy work, the Fujitsu and Rule Financial team worked directly with
Luup’s CEO and his leadership team. In the spirit of true partnership, Luup
contributed extensive business knowledge whilst the consultants brought marketing
experience, insight, focus and analytical methodology to bear. The teams adopted a
collaborative and pragmatic approach whilst conducting desk analysis, interviews,
workshops and numerous one-to-one conversations. Fujitsu and Rule Financial
openly introduced Luup to potential customers and partners and proactively created
a financial investment strategy.

“This project made a major contribution to our financial model and helped me deliver a
convincing business strategy to our board of directors,“ adds Thomas Bostrøm


With over 40 years experience of supporting the needs of the public sector and
businesses around the world, Fujitsu has a proven track record in complex systems
integration and application development and management services that reduce
costs, improve productivity and customer services and deliver a compelling return on

Rule Financial helps the world’s top financial services providers to lower costs,
improve productivity and extract the maximum value from existing IT investments. It
offers advice and thought leadership to investment, corporate and retail banks,
brokers, exchange and commodity traders and hedge fund, payment and information

“Fujitsu’s and Rule Financial’s combined skills, collaborative approach and team-
orientated methodology match our organisation well. Everyone was clearly focused on
delivering quality results on time,” concludes Thomas Bostrøm Jørgensen.

    Source: CGAP, the Consultative Group to Assist the Poor, 2009.
Word count: 1,206 (excluding upper bullets and pull-out quotation)

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