IT Mega Projects in Banking
Frank@FrankSchwab.de
These slides are the intellectual property of Frank Schwab,
imacor, copyrighted © 2013, with all rights reserved.
You may ...
Source: Wikipedia
Source: Letters of Plinius the Younger
Pliny to the Emperor Trajan: “The citizens of Nicomedia, Sir, have spent
3,318,000 ...
Pienza, Italy
„You did well, Bernardo, in lying to us about the expense ...“
Pope Pius II to Bernardo (Architect), 1462
Frauenkirche Dresden
Planned: 88.000 Taler (1726)
Actual: 288.000 Taler (1743)
Change of scope
Stone instead of wood/coppe...
Kitzbühel, McKinsey Training Center
10 Years later than planned
14 x more expensive than planned
Reasons for failure
¨  Optimism
¨  Overestimation of one‘s own capabilities
¨  Underestimation of political power
in time
in budget
in scope
Frank Gehry‘s Success factors
Digital models
Realistic
cost estimation
Tight collaboration
with crafts
Organisation of the...
IT Systems
are not
buildings
Projects
in
comparison
Example: financial project risks
Cost increase
Rail IT Olympic Games
Source: Bent Flyvbjerg and Alexander Budzier 2013, Ox...
Source: Bent Flyvbjerg and Alexander Budzier 2013, Oxford University
6 % 18 % 6%
Example: financial project risks
Cost inc...
Prof. Bent Flyvbjerg, Oxford
“The most project
managers are
either idiots or
liars. "
Source: Spiegel Online, 10th January...
Learn from
past projects
IT Mega Projects
in Banking
> 100 Million USD
> 3 Years
> 150 Case studies
Do not repeat
know
mistakes
Better
understand
the
fundamentals
Identify early
warning signs
Learn about
success
factors
Magellan
High Performance CBS Platform
Deutsche Bank
SAP BS 8.0 and Intel GRID
1,3 Billion Euro Program
Project start: Jan...
Lesson 1
„Establish a robust
project leadership.“
Common Wealth Bank of Australia – Budget planning
580
2008
830
2009
1,100
2012
Source: CBA Press releases
Lesson 2
„Do only start an IT Mega Project
once the bank can stand double
the planned budget.“
Feb 2009 Apr 2013
Euro 18.15 Euro 71.45
Source: Yahoo! Finanzen
+293 %
Common Wealth Bank of Australia
COMMERZBANK
Source: manager magazin online, 25th November 2009
Integration of Dresdner Bank
+ 500 Million Euro
Integration of 1,400 IT Applications within 1.000 Days
Target landscape Several releases
Migration
Tests
Governance
Migrat...
Quelle: Frank Annuscheit, Group COO Commerzbank, Finance Forum, Wiesbaden, 2011
Success factors
Strong senior management i...
31/8/2008 30/4/2013
Euro 17.49 Euro 1.07
Source: Yahoo! Finanzen
-94 %
Surgery successful,
patient dead
Lesson 3
„Build a conservative
business case.“
High failure rates in core banking system transformations
Program abortedTransformation
successful
25 %25 %
50 %
Transform...
Lesson 4
„Prepare yourself that your
program will not deliver on all
objectives.“
Why?
Product
Price
Decision
Contract
Collateral
Account
Customer
Transaction
Output
Archive
Booking
Position
Identity
Collectio...
Security
Product
Pricing
Decision
Contract
Account
Customer
Contact
Recovery
Transaction
Output
Archiving
Booking
Position...
Security
Product
Pricing
Decision
Contract
Account
Customer
Contact
Recovery
Transaction
Output
Archiving
Booking
Position...
Credit Banking Customer/Sales Investment Risk Shared services
Access channels
Clearing &
Settlement
Governance & Control
T...
IBM Mainframe
Sun Server
Intel blade
Tandem
Thin clients
Fat clients
AIX Server Server Farm
Every technology
of every deca...
C++
3270
MI
Red
Dot
Cross
Beam
Struts
jsp
PHP
18 Windows!
Example Workflow
NOS öffnen ► Kunde suchen
NOS-Übersicht ► Partner / Adressen ► Anzeigen / Ändern ► Bestätigung ►
Änderung...
Complex
Complicated
Complexity takes a large share
Operation
& maintenance
70%
Regulation 12 %
Complexity 10 %
Innovation 1 %
Business model 7...
Most banks
underestimate
complexity
They just
do not know about
Allied Irish Bank
CBS Transformation
Started: 2007
Stopped: 2010
AIB sues Oracle : 84 million Euro
Do not repeat past failures
STOP Set unrealistic technological objectives
STOP Assign inexperienced program management
Overestimation of
one‘s own
capabilities 	
  
“AIB is post-crash bank with pre-crash cost structure.
The bailed-out lender's loan losses
have shrunk since the crash, bu...
Merger of three banks in 2002:
Dai-ichi Kangyo Bank
Fuji Bank
Industrial Bank of Japan
Technical integration in April
Brea...
Wrong architecture
Programming failures in 2
critical modules
Inappropriate time to test
3 CEO did know about, but
kept po...
Politics	
  
Optimism
STOP Set political objectives.
STOP Inappropriate time to test.
Do not repeat past failures
ING
¨  Wholesale Banking in 35 countries
¨  Planned: 3 Years
¨  Stopped in 2005
¨  Start in 2002
Reasons for failure
¨  Underestimation of complexity
¨  Wrong technological decision
¨  Overestimation of one‘s own
cap...
We will make it
70 % of all car
drivers think they
are the better car
driver
The same:
bankers
and
project managers
Overestimation of
one‘s own
capabilities	
  
Politics	
  
Optimism
Why?
Racket and Ball are 11 Euro.
The racket is 10 Euro more
expensive than the ball.
How much is the ball?
Prof. Daniel Kahnemann
Emeritus, Princeton University
Nobel prize in economics, 2002
“Prospect theory”
The art of war
Do only fight if
you are well
aware of the
terrain
Lesson 5
„Make yourself familiar with your
IT Landscape of your project.“
000100 IDENTIFICATION DIVISION.
000200 PROGRAM-ID. HELLOWORLD.
000300
000400*
000500 ENVIRONMENT DIVISION.
000600 CONFIGUR...
Source: Code City, Dr. Richard Wettel, 2010
What problems are solved?
Regulation
Basel II
Basel III
Basel I
MiFID II
WpHG
BörsG
MiFID I
Dodd Frank
SolvV
SOX
AML
Abgeltungssteuer
Need to forfill
regulatory requirements
Digital Natives
2011 20162012 2013 2014 2015
662
Million
> 4 Billion
Source: Cisco, 2012
Number of Internet enabled mobile devices
New customer behaviour
Number of German banks
Source: Deutsche Bundesbank
1990 20112000
0
2,000
4,500
IT costs per user per year in USD
200
Bank Google
3,4
Facebook
3,8
eBay
7,4
Banks need to be prepared for
further consolidation
Long term competitiveness
Retirement
R I P
Keep the bank running
Lesson 6
„Understand what
problems do you want to
solve with your mega
project.“
Example
Bank plans IT-Transformation across 8 countries
Product management
IT
Head quarterCountry heads
Management
Project...
Corporate
Strategy
All leaders
involved
Assumed solution
Selection
of
standard software
as
strategic platform
for
the future
Complications
Example: CBS replacement
?
Credit Banking Customer/Sales Investment Risk Shared services
Access channels
Clearing &
Settlement
Governance & Control
T...
CBS share of Total IT Landscape
CBS
Minimum = 10 %
Maximum = 100%
Average = 61 %
Standard deviation = 23
CRM
Mobile
Call C...
Chinatrust Commercial Bank Taiwan
Oracle
Retail- and Corporate Banking
210 branch, thereof 70 abroad
Adopt, not adapt
Complications
¨  Low knowledge of standard software
¨  In standard software implemented processes
¨  New implementation...
Problem
Vergleich
Mount Everest
Everest
„Take your time – not PPT, but make
use of a test environment of your
target IT Landscape.“
Lesson 7
Survey: Chief architects of banks
Question:
„What would you different if you
would do it again?“
New
Standard-
software
Integration
environment
Migration
programs
New
Front End
„First build some prototypes to
learn about your core challenges.“
Lesson 8
„If you think
it's expensive
to hire a
professional to
do the job, wait
until you hire
an amateur.“
Check list
Quality
people
strong
communication
skills
broad banking
knowledge
solution-
oriented
deep
IT knowledge
convincing
project...
„Make yourself fit
for the target landscape“
Lesson 9
Increasing regulatory
requirements
Chaning customer behaviour
Need for change
Consolidation Legacy IT Landscapes
IT Mega P...
Faster
changing
environment
0
-50
+50
+100
+200
Increase of costs in %
Month36
Example: Project portfolio
12 24
„Deconstruct your IT Mega
Project in several smaller delivery
units, that each create value,
build on each other and help ...
Apollo 11
Uniqueness
Scope ¨  Private Banking
¨  Roll out in 3 countries
¨  18 months implementation time
¨  Accounts, Deposits, Payments, ...
Shared Strategy
New Operating
Model
Executive buy-in
Measurable
Benefits
Phased
Implementation
Established Change
Manageme...
Summary
Learn
from past
projects
10 Lessons
1. „Establish a robust project leadership.“
2. „Do only start an IT Mega Project once the bank can stand
double...
10 Lessons
6. „Understand what problems do you want to solve with your
mega project.“
7. „Take your time – not PPT, but ma...
Do not repeat know failures
Set unrealistic objectivesSTOP
Set political objectivesSTOP
Provide not appropriate time for t...
Overestimation of
one‘s own
capabilities	
  
Politics	
  Uniqueness
Optimism
Shared Strategy
New Operating
Model
Executive buy-in
Measurable
Benefits
Phased
Implementation
Established Change
Manageme...
Success= 1% Inspiration + 99% Perspiration
Frank@FrankSchwab.de
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
IT Mega Projects in Banking
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IT Mega Projects in Banking

  1. 1. IT Mega Projects in Banking Frank@FrankSchwab.de
  2. 2. These slides are the intellectual property of Frank Schwab, imacor, copyrighted © 2013, with all rights reserved. You may use the slides as you would use a book or an article, i.e., in small excerpts (called 'fair use') and only with full and explicit reference to the source. All other uses require written permission by the copyright holders. You may not reproduce or use any part of the slides, including data without permission. © of slides
  3. 3. Source: Wikipedia
  4. 4. Source: Letters of Plinius the Younger Pliny to the Emperor Trajan: “The citizens of Nicomedia, Sir, have spent 3,318,000 sesterces, on an aqueduct, which they abandoned before it was finished and finally demolished.”
  5. 5. Pienza, Italy „You did well, Bernardo, in lying to us about the expense ...“ Pope Pius II to Bernardo (Architect), 1462
  6. 6. Frauenkirche Dresden Planned: 88.000 Taler (1726) Actual: 288.000 Taler (1743) Change of scope Stone instead of wood/copper Consequence: High maintenance costs
  7. 7. Kitzbühel, McKinsey Training Center
  8. 8. 10 Years later than planned 14 x more expensive than planned
  9. 9. Reasons for failure ¨  Optimism ¨  Overestimation of one‘s own capabilities ¨  Underestimation of political power
  10. 10. in time in budget in scope
  11. 11. Frank Gehry‘s Success factors Digital models Realistic cost estimation Tight collaboration with crafts Organisation of the artists On time on budget
  12. 12. IT Systems are not buildings
  13. 13. Projects in comparison
  14. 14. Example: financial project risks Cost increase Rail IT Olympic Games Source: Bent Flyvbjerg and Alexander Budzier 2013, Oxford University 45 % 107 % 219 % Occurance 9 of 10 5 of 10 10 of 10 Benefits -51 % -29 % n/a
  15. 15. Source: Bent Flyvbjerg and Alexander Budzier 2013, Oxford University 6 % 18 % 6% Example: financial project risks Cost increase Rail IT Olympic Games 45 % 107 % 219 % Occurance 9 of 10 5 of 10 10 of 10 Benefits -51 % -29 % n/a
  16. 16. Prof. Bent Flyvbjerg, Oxford “The most project managers are either idiots or liars. " Source: Spiegel Online, 10th January 2013
  17. 17. Learn from past projects
  18. 18. IT Mega Projects in Banking
  19. 19. > 100 Million USD > 3 Years
  20. 20. > 150 Case studies
  21. 21. Do not repeat know mistakes Better understand the fundamentals Identify early warning signs Learn about success factors
  22. 22. Magellan High Performance CBS Platform Deutsche Bank SAP BS 8.0 and Intel GRID 1,3 Billion Euro Program Project start: January 2010 First modules Q2/2012 Planning 2005 to 2010
  23. 23. Lesson 1 „Establish a robust project leadership.“
  24. 24. Common Wealth Bank of Australia – Budget planning 580 2008 830 2009 1,100 2012 Source: CBA Press releases
  25. 25. Lesson 2 „Do only start an IT Mega Project once the bank can stand double the planned budget.“
  26. 26. Feb 2009 Apr 2013 Euro 18.15 Euro 71.45 Source: Yahoo! Finanzen +293 % Common Wealth Bank of Australia
  27. 27. COMMERZBANK Source: manager magazin online, 25th November 2009 Integration of Dresdner Bank + 500 Million Euro
  28. 28. Integration of 1,400 IT Applications within 1.000 Days Target landscape Several releases Migration Tests Governance Migration in 2 steps 1)  Customer data first 2)  Product- and balances by Big Bang ¨  High test efforts ¨  Multiple test environments ¨  End-to-end tests of critical systens ¨  Strong IT/Business Team ¨  Permanent adaptation of project management ¨  Transparent decisions Source: Frank Annuscheit, Group COO Commerzbank, Finance Forum, Wiesbaden, 2011
  29. 29. Quelle: Frank Annuscheit, Group COO Commerzbank, Finance Forum, Wiesbaden, 2011 Success factors Strong senior management involvement High transparency for all employees and project stakeholders Fast and transparent decisions Decoupling & equalization Central management & decentral implementation Inform & listen
  30. 30. 31/8/2008 30/4/2013 Euro 17.49 Euro 1.07 Source: Yahoo! Finanzen -94 %
  31. 31. Surgery successful, patient dead
  32. 32. Lesson 3 „Build a conservative business case.“
  33. 33. High failure rates in core banking system transformations Program abortedTransformation successful 25 %25 % 50 % Transformation delivered, but costs and time doubled
  34. 34. Lesson 4 „Prepare yourself that your program will not deliver on all objectives.“
  35. 35. Why?
  36. 36. Product Price Decision Contract Collateral Account Customer Transaction Output Archive Booking Position Identity Collection Loan system in branches CRM
  37. 37. Security Product Pricing Decision Contract Account Customer Contact Recovery Transaction Output Archiving Booking Position Identity Retail Loan Internet CRM Product Pricing Decision Contract Collaterals Account Customer Recovery Transaction Output Archiving Booking Position Identity Retail Loan Branch CRM Product Pricing Decision Contract Collaterals Account Client Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Branch CRM Security Product Pricing Decision Contract Account Client Contact Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Internet CRM Security Product Pricing Decision Contract Account Customer Dealer Recovery Transaction Output Archiving Booking Position Identity Consumer Loan Extranet CRM Product Pricing Decision Contract Collaterals Account Contact Recovery Transaction Output Archiving Booking Position Identity Customer Retail Mortgage Branch Product Price Decision Contract Collateral Account Customer Transaction Output Archive Booking Position Identity Collection CRM Product and Silo Thinking
  38. 38. Security Product Pricing Decision Contract Account Customer Contact Recovery Transaction Output Archiving Booking Position Identity Retail Loan Internet CRM Product Pricing Decision Contract Collaterals Account Customer Recovery Transaction Output Archiving Booking Position Identity Retail Loan Branch CRM Product Pricing Decision Contract Collaterals Account Client Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Branch CRM Security Product Pricing Decision Contract Account Client Contact Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Internet CRM Security Product Pricing Decision Contract Account Customer Dealer Recovery Transaction Output Archiving Booking Position Identity Consumer Loan Extranet CRM Product Pricing Decision Contract Collaterals Account Contact Recovery Transaction Output Archiving Booking Position Identity Customer Retail Mortgage Branch Products are implemented redundant and inconsistent across product lines and channels
  39. 39. Credit Banking Customer/Sales Investment Risk Shared services Access channels Clearing & Settlement Governance & Control Treasury Corporate IT landscape of a typical retail bank – functional view Cooperation Mobile BranchInternet Call Centre Self service Service Centre Workflow / Order processing Order distribution Product Price Account Contract Transaction Market data Price Order Product Contract Position Insurance Portfolio Brokerage Product Price Decision Contract Collaterals Recovery Position Clearing Booking Payments Booking Settlement Corporate Actions Securities Market Liquidity Credit Counterpart Trading MIS HR Intranet Security Output Documents Archiving Identity General ledger Financial Analysis Financial Reporting AML Legal reporting Compliance MIS Risk Customer Sales Contact Provision Central Products Reporting / MIS Complaints Advisory Service Tax Central Price CRM Rich functionality
  40. 40. IBM Mainframe Sun Server Intel blade Tandem Thin clients Fat clients AIX Server Server Farm Every technology of every decade
  41. 41. C++ 3270 MI Red Dot Cross Beam Struts jsp PHP 18 Windows!
  42. 42. Example Workflow NOS öffnen ► Kunde suchen NOS-Übersicht ► Partner / Adressen ► Anzeigen / Ändern ► Bestätigung ► Änderung der Telefonnummer? ► bestätigen / Ändern ► Ausdruck bestätigen ►zurück zur Übersicht NOS-Übersicht ► Produkt / Ändern ► Einlagen / Termingeldprolongation ► Daten ändern ► bestätigen ► zurück zur Übersicht Einmeldung in KIM ► Starten von KIM ► Anmeldung ► Kunden suchen ► neuen Eintrag wählen ► Daten einpflegen ► Abschluss anlegen ► Daten eingeben ► bestätigen ► zurück zur Übersicht ¨  Customer approaches service desk ¨  Customer informs the bank about address change ¨  Advisor notifies a due “time deposit” in the customer’s portfolio 37 Clicks
  43. 43. Complex
  44. 44. Complicated
  45. 45. Complexity takes a large share Operation & maintenance 70% Regulation 12 % Complexity 10 % Innovation 1 % Business model 7 % Sources: BCG, Datamonitor, McKinsey, imacor
  46. 46. Most banks underestimate complexity They just do not know about
  47. 47. Allied Irish Bank CBS Transformation Started: 2007 Stopped: 2010 AIB sues Oracle : 84 million Euro
  48. 48. Do not repeat past failures STOP Set unrealistic technological objectives STOP Assign inexperienced program management
  49. 49. Overestimation of one‘s own capabilities  
  50. 50. “AIB is post-crash bank with pre-crash cost structure. The bailed-out lender's loan losses have shrunk since the crash, but it's operating costs have risen.” 31 March 2013
  51. 51. Merger of three banks in 2002: Dai-ichi Kangyo Bank Fuji Bank Industrial Bank of Japan Technical integration in April Breakdown of money supply Loss of 1.8 Billiion Yen 6 month to recovery Mizuho Bank, Japan
  52. 52. Wrong architecture Programming failures in 2 critical modules Inappropriate time to test 3 CEO did know about, but kept political target date Main reasons
  53. 53. Politics   Optimism
  54. 54. STOP Set political objectives. STOP Inappropriate time to test. Do not repeat past failures
  55. 55. ING ¨  Wholesale Banking in 35 countries ¨  Planned: 3 Years ¨  Stopped in 2005 ¨  Start in 2002
  56. 56. Reasons for failure ¨  Underestimation of complexity ¨  Wrong technological decision ¨  Overestimation of one‘s own capabilities
  57. 57. We will make it
  58. 58. 70 % of all car drivers think they are the better car driver
  59. 59. The same: bankers and project managers
  60. 60. Overestimation of one‘s own capabilities   Politics   Optimism
  61. 61. Why?
  62. 62. Racket and Ball are 11 Euro. The racket is 10 Euro more expensive than the ball. How much is the ball?
  63. 63. Prof. Daniel Kahnemann Emeritus, Princeton University Nobel prize in economics, 2002 “Prospect theory”
  64. 64. The art of war Do only fight if you are well aware of the terrain
  65. 65. Lesson 5 „Make yourself familiar with your IT Landscape of your project.“
  66. 66. 000100 IDENTIFICATION DIVISION. 000200 PROGRAM-ID. HELLOWORLD. 000300 000400* 000500 ENVIRONMENT DIVISION. 000600 CONFIGURATION SECTION. 000700 SOURCE-COMPUTER. RM-COBOL. 000800 OBJECT-COMPUTER. RM-COBOL. 000900 001000 DATA DIVISION. 001100 FILE SECTION. 001200 100000 PROCEDURE DIVISION. 100100 100200 MAIN-LOGIC SECTION. 100300 BEGIN. 100400 DISPLAY " " LINE 1 POSITION 1 ERASE EOS. 100500 DISPLAY "Hello world!" LINE 15 POSITION 10. 100600 STOP RUN. 100700 MAIN-LOGIC-EXIT. 100800 EXIT. "Hello world!" #include <iostream> int main() { std::cout << "Hello, world!n"; }
  67. 67. Source: Code City, Dr. Richard Wettel, 2010
  68. 68. What problems are solved?
  69. 69. Regulation Basel II Basel III Basel I MiFID II WpHG BörsG MiFID I Dodd Frank SolvV SOX AML Abgeltungssteuer
  70. 70. Need to forfill regulatory requirements
  71. 71. Digital Natives
  72. 72. 2011 20162012 2013 2014 2015 662 Million > 4 Billion Source: Cisco, 2012 Number of Internet enabled mobile devices
  73. 73. New customer behaviour
  74. 74. Number of German banks Source: Deutsche Bundesbank 1990 20112000 0 2,000 4,500
  75. 75. IT costs per user per year in USD 200 Bank Google 3,4 Facebook 3,8 eBay 7,4
  76. 76. Banks need to be prepared for further consolidation
  77. 77. Long term competitiveness
  78. 78. Retirement
  79. 79. R I P
  80. 80. Keep the bank running
  81. 81. Lesson 6 „Understand what problems do you want to solve with your mega project.“
  82. 82. Example Bank plans IT-Transformation across 8 countries Product management IT Head quarterCountry heads Management Project members Provider Bank
  83. 83. Corporate Strategy All leaders involved
  84. 84. Assumed solution Selection of standard software as strategic platform for the future
  85. 85. Complications
  86. 86. Example: CBS replacement
  87. 87. ?
  88. 88. Credit Banking Customer/Sales Investment Risk Shared services Access channels Clearing & Settlement Governance & Control Treasury Corporate IT landscape of a typical retail bank – functional view Cooperation Mobile BranchInternet Call Centre Self service Service Centre Workflow / Order processing Order distribution Product Price Account Contract Transaction Market data Price Order Product Contract Position Insurance Portfolio Brokerage Product Price Decision Contract Collaterals Recovery Position Payments Clearing Booking Booking Settlement Corporate Actions Securities Market Liquidity Credit Counterpart Trading MIS HR Intranet Security Output Documents Archiving Identity General ledger Financial Analysis Financial Reporting AML Legal reporting Compliance MIS Risk Customer Sales Contact Provision Central Products Reporting / MIS Complaints Advisory Service Tax Central Price CRM Functionality GAPs
  89. 89. CBS share of Total IT Landscape CBS Minimum = 10 % Maximum = 100% Average = 61 % Standard deviation = 23 CRM Mobile Call Center Branch Securities Finance Reporting Settlement Internet
  90. 90. Chinatrust Commercial Bank Taiwan Oracle Retail- and Corporate Banking 210 branch, thereof 70 abroad
  91. 91. Adopt, not adapt
  92. 92. Complications ¨  Low knowledge of standard software ¨  In standard software implemented processes ¨  New implementation approach ¨  Adopt ¨  Parametrisation ¨  New partner
  93. 93. Problem
  94. 94. Vergleich Mount Everest Everest
  95. 95. „Take your time – not PPT, but make use of a test environment of your target IT Landscape.“ Lesson 7
  96. 96. Survey: Chief architects of banks Question: „What would you different if you would do it again?“
  97. 97. New Standard- software Integration environment Migration programs New Front End
  98. 98. „First build some prototypes to learn about your core challenges.“ Lesson 8
  99. 99. „If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.“
  100. 100. Check list
  101. 101. Quality people strong communication skills broad banking knowledge solution- oriented deep IT knowledge convincing project experience
  102. 102. „Make yourself fit for the target landscape“ Lesson 9
  103. 103. Increasing regulatory requirements Chaning customer behaviour Need for change Consolidation Legacy IT Landscapes IT Mega Projects
  104. 104. Faster changing environment
  105. 105. 0 -50 +50 +100 +200 Increase of costs in % Month36 Example: Project portfolio 12 24
  106. 106. „Deconstruct your IT Mega Project in several smaller delivery units, that each create value, build on each other and help to achieve the common objectives. “ Lesson 10
  107. 107. Apollo 11
  108. 108. Uniqueness
  109. 109. Scope ¨  Private Banking ¨  Roll out in 3 countries ¨  18 months implementation time ¨  Accounts, Deposits, Payments, Securities Challenges ¨  Data migration concerning existing silos of redundant and inconsistent data ¨  Ensure employees continued cooperation within the program ¨  Ensure a smooth and complete knowledge transfer ¨  Different tax issues and client reporting requirements of migrated countries Description Objectives ¨  Increase operational efficiency and maximize synergies within the group ¨  Migrate all countries to the same common system ¨  Improvement of CRM, risk management, and compliance ¨  Reduction of complex interfaces and decrease the number of technical and platform skills required Best Practice Patterns Background ¨  Private & Corporate Banking ¨  34 branches in 26 countries ¨  CHF 110 billion assets Temenos T24 at Schroders, Switzerland Big Bang Approach Established Change Management Prepared Business Processes Shared Strategy Open Communication concerning Job Cuts Real Partnership Be the Reference Bank
  110. 110. Shared Strategy New Operating Model Executive buy-in Measurable Benefits Phased Implementation Established Change Management Real Partnership Strong Governance Be On-SiteQuality People Minimum Customization Prepared Business Processes EXAMPLE – Bank specific best practice framework Pre-Design Design Implementation
  111. 111. Summary
  112. 112. Learn from past projects
  113. 113. 10 Lessons 1. „Establish a robust project leadership.“ 2. „Do only start an IT Mega Project once the bank can stand double the planned budget.“ 3. „Build a conservative business case.“ 4. „Prepare yourself that your program will not deliver on all objectives.“ 5. „Make yourself familiar with your IT Landscape of your project.“
  114. 114. 10 Lessons 6. „Understand what problems do you want to solve with your mega project.“ 7. „Take your time – not PPT, but make use of a test environment of your target IT Landscape.“ 8. „First build some prototypes to learn about your core challenges.“ 9. „Make yourself fit for the target landscape“ 10. „Deconstruct your IT Mega Project in several smaller delivery units, that each create value, build on each other and help to achieve the common objectives. “
  115. 115. Do not repeat know failures Set unrealistic objectivesSTOP Set political objectivesSTOP Provide not appropriate time for testingSTOP STOP Assign inexperience program management
  116. 116. Overestimation of one‘s own capabilities   Politics  Uniqueness Optimism
  117. 117. Shared Strategy New Operating Model Executive buy-in Measurable Benefits Phased Implementation Established Change Management Real Partnership Strong Governance Be On-SiteQuality People Minimum Customization Prepared Business Processes EXAMPLE – Bank specific best practice framework Pre-Design Design Implementation
  118. 118. Success= 1% Inspiration + 99% Perspiration
  119. 119. Frank@FrankSchwab.de
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