DefiningtheAppropriateEMVSmartCard_part2..docVIP

Lowering the total cost of ownership In this section… When starting an EMV migration project, one has to consider the total cost of ownership instead of the component prices. Although the initial investments account for a significant part, operational costs, risks and possible hidden costs should not be neglected. Lowering the total cost of ownership can be achieved by relying on expert advice and methodology, acquiring pre-integrated solutions from vendors and outsourcing non-core processes. Costs savings can be significant. A quick time to market enables to benefit earlier from the advantages of chip cards (decreased fraud and decreased transaction costs). Outsourcing limits the investments in resources and assets while enabling to benefit from economies of scale. Cost-generating factors The costs involved by an EMV migration are made of cards, terminals and systems upgrades, as depicted on the chart below. Although these investments represent the largest part of the total cost, one should not underestimate the possible hidden costs of such a project. The technology complexity implies training costs. Bad project management, due to a lack of expertise or skills, can generate very important delays. Wrong decisions made at the very beginning can have extremely painful technical or business impacts. In order to lower the total of ownership as much as possible, there are five key priorities to bear in mind at all stages of the project planning and development: Reduction and control on investments; Reduction of the project complexity; Reduction of the “time to market”; Ensuring the scalability and flexibility of the solutions implemented; Reduction of the operational risks and costs.  Figure 4 – EMV Impacts on Processing Infrastructure Minimizing the total cost of ownership There is a strong dependence between the various technology bricks impacted by EMV and the smart card technology requires very specific skills. Not being in full control of these t