THE CHANGING ROLE OF THE CIOat banque internationale à luxembourgDecember 17, 2012 - Prepared by Raphaël Henry
WE ARE CIONET LUXEMBOURGCIONET’s mission is to feed and develop top-levelIT executives with the resources they need to realise their fullpotential.CIONET Launch event, October 4, 2013, Hotel Simoncini
Welcome address by Thierry Delroisse, COO and Board Member of BILWhat the CEO expect from its CIO by Lázaro Campos, former CEO of Swi0 CIO Tes:monials : The Changing Role of the CIO • From a full local CIO to a Group head of IT systems & The CIO, a major actor of the company strategy by Christophe Pierron, CIO of Caceis Luxembourg • Bob Kneip, CEO of Kneip • Francisco García Morán, European Commission, Director of Digit The new breed of CIO by Pierre CaEoir, CIO pracFce Leader at Egon Zehnder Agenda : ‘THE CHANGING ROLE OF THE CIO’ EVENT
CIO’s communicationwith CEO and BoardLázaro CamposCIONet Event – 17 December 2012
Evolution of CIO roleFrom ToKeeping the businessrunningDriving businesstransformationEnabling businessinnovationKeeping thelights onDelivering IT-centric changeAligning IT andorganisationalstrategies
ExpectationsKeeping the business running• Availability, Security, Confidentiality, Integrity• Manage risk profile: technology and operations• Technology management (obsolescence vs opportunity)• No surprisesDriving business transformation• Optimise quality/cost ratios• Encourage efficiency and continuous improvement• Act in contextEnabling business innovation• Driver of relevant innovation• Military precision vs Innovation from within
CommunicationÜ « The truth, and nothing but the truth »Ü High level heads-up in advance, then just intime detailÜ Framework for control and completenessÜ External references and benchmarksÜ Approximately useful vs precisely irrelevantÜ Link to the business. Always
Other potential QuestionsÜ What direction should CEO/Board give to the CIO relative to te governanceand management of IT and why would they do it?Ü What does the CEO expect from the CIO?Ü What does the Board expect from the CIO?Ü How and about what should CIOs communicate to CEO and Board?Ü Should CIOs spend more time communicating with CEO/Board? Have youexperienced that after the fact the information from the CIO was notcomplete enough or not sufficiently to the point?Ü Is there a role for the CEO as intermediary between CIO and Board?Ü What can a CEO do to improve the communication to the Board about oftencomplex IT project, technology or IT risk issues?Ü Experiences and examples of good communication and collaborationbetween CIO/CEO/Board
Main drivers of changeÜ From physical to virtual IT deptsÜ Cloud ‘everything’Ü Less humansÜ Cyberwarfare will militarise ITÜ BYOD will be the normÜ CIO’s expected to impact business directionÜ Analytics will be key
CIOnet LuxembourgDecember 17th, 2012From a full local CIO to a Group head of IT systems&The CIO, a major actor of the company strategyChristophe Pierron – CIO Caceis Bank Luxembourg
17.12.12 > 2> CIOnet LuxembourgAgenda1. A few words about CACEIS and myself2. IT department of CACEIS, and what has changed in 3 years3. Some IT trends within CACEIS4. My vision of the CIO roleand IT as a transformation force for the company
3A Banking Group dedicated to Asset ServicingPROFILECACEIS is Europes premier depositary andfund administrator, and is focused exclusivelyon providing innovative asset servicingsolutions that generate a competitiveadvantage for its clients’ businessCACEIS has delivered strong and sustainablefinancials since its creation. As a result, its twoglobal shareholders grant us the independenceto define the most effective strategy to supportour clientsCACEIS is among the worlds mostexperienced asset servicing banks when itcomes to undertaking seamless operationalmigrations and successful insourcing ofcomplex functions with related staffCACEIS has the business agility to give clientsa first-starter advantage in todays changingregulatory environment. And by handlingclients’ non-core functions in an effective andefficient manner, it helps them focus ongenerating investor valueFocus StabilityExpertiseExperience
4Key figuresPROFILE• CACEIS ranksamong the top tier ofasset servicingproviders.• CACEIS has a strongyet steady growthrate in terms ofassets, clients andgeographicalcoverage.Totalheadcount3,30050% at head office, 50% abroadGeographicalcoveragePresence in 10 countries80 markets coveredNo. 1 Depository Bankin Europe€650bnNo. 1 Fund Administratorin Europe€1.1trNo. 9 Custodianworldwide€2.3tr As at 31 December 2011
5Backed by two of the European largest retail banking groupsSHAREHOLDERS• No.1 retail banking group in France• 11,600 branches in Europe• Asset Management, Insurance, AssetServicing, Corporate & InvestmentBanking, Private Banking, ConsumerFinance• No.2 retail banking group in France• 8,000 branches in Europe• Insurance, Corporate & InvestmentBanking, Asset Management, PrivateBanking, Private Equity and SpecialisedFinancial ServicesCrédit Agricole S.A.S&P Moodys FitchA/A-1 A2/Prime-1 A+/F1+BPCES&P Moodys FitchA/A-1 A2/Prime-1 A+/F1+€35.1 bn Net Banking Income€70.7 bn Shareholder Equity, Group Share10.2% Core Tier One Ratio€23.1 bn Net Banking Income€35.4 bn Shareholder Equity, Group Share9.1% Core Tier One RatioAs at 31 December 2011 As at 31 December 2011
6An extensive product offer for international clientsCLIENTS AND PRODUCTS• Clients benefit fromour fully-integratedproduct offer andhigh service levelswhich arestandardised acrossour entities.Our Clients Our Products• Asset managers• Insurance Companies• Pension Funds• Broker-Dealers• Banks• Central Banks/Sovereign Funds• Corporates• Middle-Office Services• Private Equity, Real Estate& Hedge Funds Services• Fund Distribution Services• Custody• Capital Markets Services• Depositary-Trustee• Fund Administration• Fund Structuring• Fund Promotership• Risk Analytics• Clearing Services• Cash Management• Issuer Services• Online Reporting
17.12.12 > 7> CIOnet LuxembourgA few words about myself…Christophe PierronCIO of CACEIS Bank Luxembourg■ Christophe Pierron, 46 years old, is a software engineer (SupInfo -Paris)■ He starts his career in 1989 as a consultant within Arthur Andersen.n In 1992, he joins the Société Générale Group where he will occupy 4positions : IT manager of Fimat Tokyo (now NewEdge), group projectmanager within Fimat Facilities Mgt (Chicago), CIO of Fimatex (nowBoursorama) and IT manager of ‘open’ developments for SGSS(Nantes).■ After a short but intense period with an ‘online banking’ startup, hejoins in 2001 Natexis Asset Management and became in 2002 theCIO. In 2005, he’s part of the of the creation of Natixis InvestorServicing (fund administration) as CIO.■ He joins Caceis early 2008 as CIO of CACEIS Fastnet Paris, andsince Sept. 2009 as CIO of Caceis Luxembourg.■ From 2011, the Quality / Efficiency is under the responsibility of theCIO.
17.12.12 > 8> CIOnet LuxembourgCACEIS IT> IT includes business analysts, developers, project managers, architects andapplication / functional help desk> CACEIS has outsourced its IT production and infrastructure> About 550 internal / external people, 240 in France and 180 in Luxembourg> Around 75 000 man days of projects, about a third in LuxembourgAround 35 000 man days of maintenance / support / enhancement (third in Lux)> 2 big IT teams (Fr / Lu) that manage the Group information system> Germany has a local IT (especially for Custody) due to the HVB takeover> Luxembourg is in charge of the small entities (US, Canada, Belgium, Netherland,HK)
17.12.12 > 9> CIOnet LuxembourgA lot of changes in 3 years…In 2009, the local CIO was in charge of the full IT of its country with few usage of other systems2010> From a « MOA - MOE » organization to a « Business lines » organizationn 7 business lines (custody, fund administration, customers, …)n Same organization in France, Luxembourg and Germany> Appointment of Group heads of IT business lines (for coordination)2011> Appointment of Group heads of Operational business linesn Start of the cooperation for each ‘pair’2012> Reinforcement of the IT Architecture team for the Group (functional & technical)2010-11-12-13> More and more IT expertise centers centralized in France & Luxembourg> More and more applications convergence to build progressively a Group information systemNow, the local CIO is in charge of a part of the Group information system, he’s a main actor ofthe Group strategy and represents the local entity (regulators, clients, …)
17.12.12 > 10> CIOnet LuxembourgCurrent Group OrganizationBankingDealingFundadministrationInvestmentMgt ServicesClientsArchitecture& supportAdministrationPISMLuxembourgGermany FranceITInfrastructureProduction ITCash accounts, accounting,risks, payments, reconcilTreasury, forex, securitieslendingFund administrationMiddle Office, pricing, financialreporting, master data, OTCClient reporting and portal,billing, CRMFunctional and technicalarchitecture, devlopmentenvironment and toolsIT contracts, BudgetManagement of the productionand infrastructure providersWorkstation, network, mail,file server, …ProductionDistributionTransfer agent, fund executionCustodySecurities custody &depositary
17.12.12 > 11> CIOnet LuxembourgSome IT trends within CACEIS> 2015 IT strategyn Cost reduction (IT & Ops), but (try to) keep the same projects budgetn Spend less on the core business (and streamline it), and spend more on newproducts / new clients / innovationn A strategy per IT business line> A new development framework – Case or ‘AGL’ (Palmyra from Vermeg)UML modeling – JAVA code generation – technology is mostly hiddenà Caceis IT must be specialized on the business, not on the technologyà Use of common components / master data – Standardize the developmentsà Build progressively the application with the users> Agile methodology strongly linked to the processà Collaborative & Interactive : associate from the beginning of the project the differentactors (IT, users, efficiency team)à Iterative & Agile : splits in phases and prototypesà Based on the process and business needs : start from the process, review / adaptthe process at the same time (if opportunity), and facilitate the change management.
17.12.12 > 12> CIOnet LuxembourgMy vision of the CIO roleand IT as a transformation force for the company (1/2)> More « IT fusion » with the business, than « IT alignement »and it must be true at all levels (CIO with ExCo, IT business line leader with Ops leader,…). The CIO has an important role to make it possible and working.> The CIO must be part of the company strategy, in terms of product developmentand cost reduction.> The CIO and IT must be closed to the business and final customers. IT must be abusiness thinker / innovator.> IT must bring value through the technology, its knowledge of the Information Systemof the company and the business. IT must help the business to innovate and tomake it feasible.> The CIO must not be afraid of SaaS solutions, and must play an important role tomanage the project, integrate the solution and have the right data available.> The CIO must take risks in solutions and HR
17.12.12 > 13> CIOnet LuxembourgMy vision of the CIO roleand IT as a transformation force for the company (2/2)> The successful companies are agile : deliver quickly a new product (time to market),win a client, reduce costs quickly and the right ones,… IT is fully part of it and mustthen also be agile :n Develop quickly a new application, and in most cases don’t look for 100% perfection(time to market is more important)n Design applications to change / evolven Innovate (in technology, process)n Be flexible, and have resources work on the company prioritiesn Deliver cheaper> The IT department must also be efficient (not only the Ops)> IT alone doesn’t generate enough cost saving. The Ops process must besimplified / reviewed, especially when it comes to a new application development orbig changes. Once again IT-Business fusion is a must, together we make the bestsavings and create the best products.
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Informatics e- The changing role of the CIO A perspective from the European Institutions CIONET Luxembourg 17/12/2012 Francisco GARCÍA MORÁN Director General of Informatics
Informatics Agenda• 1. Your business/your sector, your company,your organisation• 2. About you, your career, your experience as CIO• 3. What happened the last couple of years at the CIOseat in your organisation ?• 4. Your cook book: the things and the thoughts thatwork... your recent experience and vision• 5. now, how do you see the CIO position evolve ?• 6. the Tomorrows CIO
Informatics The European Union• The result of a number of international Treatiessince the ’50s (end of World War II) (primarylegislation)• A unique economic and political partnershipbetween 27 democratic European countriesaimed at:Creating an ever closer union among the peoples of Europe, withdecisions taken as closely as possible to the citizensAchieving peace, prosperity and freedom for the citizens in a fairerand safer worldThrough its competences in a large number of areas, exercisedthrough secondary legislation (which prevails over national law)
Informatics EU institutions: achieving the aimsThe Treaes set up a number of EU Instuons, Agencies and Other Bodies (EUIs): A “core” of 7 Instuons (European Council/GSC, European Commission, EP, CoJ, CoA, ECB) based in Brussels / Luxembourg / Strasbourg / Frankfurt Various layers of other types of EUIs (40-‐80 depending on how they are counted !) scaUered throughout the 27 Member States Supranaonal character of the EU: the European Commission is the “engine” behind European integra5on.
Informatics Customs Union Compe55on Monetary Marine ressources Commercial policy Interna5onal agreements (AETR) Human Health Industry Culture Tourism Educa5on, voca5onal training, youth and sport Civil protec5on Administra5ve coopera5on internal market social cohesion agriculture and ﬁsheries (except where exclusive) environment consumer protecon transport trans-‐European networks energy freedom, security and jusce public health research and technological development space development cooperaon humanitarian aid SUPPORTACTIONSEXCLUSIVECOMPETENCESSHAREDCOMPETENCES
Informatics The 2020 Challenges The 2020 Challenges Economical recovery Transport eﬃciency Jobs, …… Climate change Ageing society Energy consumption Inclusion Empowering patients Security Europe 2020 Innovation Union Youth on the move Digital agenda for Europe Resource eﬃcient Europe Industrial policy for the globalization era An agenda for new skills & jobs European Platform against poverty
Informatics • own IT team & organisation • Responsible for the delivery of their IT services and the development of their information systems they need • Varying degrees of IT maturity • Shared services on a voluntary basis Each Institution • "Comité Informatique Interinstitutionnel" ensures global coordination on: • ITC infrastructure • Common IT services (e.g. product management, IT architecture, Calls for Tenders & Contracts, etc.) • Information Systems Hosting • Shared Applications CII ICT in the EU • Corporate IT services • IT Strategy and Coherence • Development of Corporate Information Systems (IS) • IT Support (2nd level), Corporate Logistic Services, Corporate Contracts and Budget Management • Development of policy oriented IS on request • (approx. 450 oﬃcials and 850 external staﬀ) DIGIT • Management of local IT infrastructure • IT User Support (1st level) (except those in ITIC) • Development of Information Systems in support of EU operational policies • (approximately 650 staﬀ) Local Org. ICT @EC: Hybrid model • We deliver digital services to enable EU policies and to support the Commissions internal administration DIGIT
Informatics Agenda• 1. Your business/your sector, your company,your organisation• 2. About you, your career, your experience asCIO• 3. What happened the last couple of years at the CIOseat in your organisation ?• 4. Your cook book: the things and the thoughts thatwork... your recent experience and vision• 5. now, how do you see the CIO position evolve ?• 6. the Tomorrows CIO
Informatics Agenda• 1. Your business/your sector, your company,your organisation• 2. About you, your career, your experience asCIO• 3. What happened the last couple of years at theCIO seat in your organisation ?• 4. Your cook book: the things and the thoughts thatwork... your recent experience and vision• 5. now, how do you see the CIO position evolve ?• 6. the Tomorrows CIO
Informatics and 2. EC – IT Rationalisation 1. The new world out there… New IT corporate governance structure with more involvement of business IT Rationalisation @EC A new « diﬀerentiated IT Strategy » taking into account value, risk and cost è economies of scale. IT rationalisation (absorb, integrate, do nothing, best practices) 17 domains started What has changed in the last years?
Informatics Informatics 2007 Complexity Level 1: Simple website Level 2: On-‐line government Level 3: Integrated government E-‐Commission 2001-‐2005 2008 Level 3: Integrated government 2009 2010 3 2015 Lead by example -‐ EU Policies -‐ Internal Admin. E-‐Commission 2012-‐2015 New paradigm E-‐Commission 2006-‐2010 New strategy Level 2: On-‐line government
Informatics Action plan • Break barriers between EU PA &converging systems • Strengthen operational eﬀectiveness and eﬃciency • Improve transparency and accessibility of information • Reduce admin burdens & streamline processes • Enhance IT Security • Exploit innovative technologies • Convergence of IT systems Goals • reduce costs and create value • eﬀectiveness & eﬃciency • business continuity • streamlining administrative processes • improve transparency • eliminate digital barriers Deliver user-‐centric digital services for EU policies and COMs internal admin. To Europe 2020 Guiding principles User-‐centricity Eﬀectiveness and eﬃciency Simpliﬁcation and proportionality Security and privacy Transparency and accessibility Openness Reusability Governance Focus on corporate priorities Monitor key investments Transparency and visibility Accountability
Informatics Agenda• 1. Your business/your sector, your company,your organisation• 2. About you, your career, your experience asCIO• 3. What happened the last couple of years at theCIO seat in your organisation ?• 4. Your cook book: the things and the thoughtsthat work... your recent experience and vision• 5. now, how do you see the CIO position evolve ?• 6. the Tomorrows CIO
Informatics IF YOU ALWAYS DOWHAT YOU ALWAYS DID,YOU ALWAYS GETWHAT YOU ALWAYS GOT.IM POSSIBLE
Informatics Agenda• 1. Your business/your sector, your company,your organisation• 2. About you, your career, your experience asCIO• 3. What happened the last couple of years at theCIO seat in your organisation ?• 4. Your cook book: the things and the thoughts thatwork... your recent experience and vision• 5. How do you see the CIO position evolve ?• 6. The Tomorrows CIO
Informatics Un professionnel capable de gérer un boîte IT qui aune très bonne connaissance du business combinéavec une excellente expertise technique afin depouvoir jouer un rôle stratégique permettant àlorganisation de développer des solutions innovatricesfacilités par la technologie.