L10 pm for global banking projects

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L10 pm for global banking projects

  1. 1. IS5540- Project Management and Quality Assurance Project Management for global banking projects Prof. Y.B. Yeung 2/4/13 November 2009
  2. 2. Learning objectives <ul><li>Review examples of global IT projects of a major international bank </li></ul><ul><li>Understand the challenges and experience gained from these IT project examples </li></ul><ul><li>Understand the critical success factors of managing global IT projects </li></ul>
  3. 3. Global banking IT projects <ul><li>Definition </li></ul><ul><ul><li>IT projects that have users in multiple countries around the world(user focus) </li></ul></ul><ul><ul><li>IT projects that are developed in multiple software centres in multiple countries(development focus) </li></ul></ul><ul><li>Many international companies have projects that fit both the above categories </li></ul><ul><li>Requires advanced project management skills </li></ul>
  4. 4. Global banking environment <ul><li>International bank group operating in many countries </li></ul><ul><li>Customers need to access their bank anywhere they travel </li></ul><ul><li>Common brand and products worldwide </li></ul><ul><li>Support services sourced from different countries(IT, call centres, data entry) </li></ul><ul><li>Need to face different regulators and government </li></ul>
  5. 5. Study of a major global bank <ul><li>Fact sheets </li></ul><ul><li>Two global IT projects </li></ul><ul><li>Experience gained </li></ul><ul><li>Critical success factors for managing global IT projects </li></ul>
  6. 6. Organisation of a global commercial bank
  7. 7. HSBC fact sheet (1) <ul><li>One of the largest banking and financial service organisation in the world </li></ul><ul><li>Asset = USD2,421 billion as of end June, 2009 </li></ul><ul><li>Profit = USD3.7b for first half 2009 </li></ul><ul><li>Number of offices worldwide = 8500 </li></ul><ul><li>Total staff = 295,610 </li></ul><ul><li>Number of customers = >100m(25m on Internet banking) </li></ul>
  8. 8. HSBC Fact sheet (2) <ul><li>Established in 1865 in Hong Kong </li></ul><ul><li>Head office in London </li></ul><ul><li>Operations in Europe, Asia Pacific, Americas, Middle East & Africa </li></ul>
  9. 9. Asia Pacific region operations <ul><li>HSBC Asia Pacific </li></ul><ul><li>Head office in Hong Kong </li></ul><ul><li>Branches in 20 countries </li></ul><ul><ul><li>HK, China, India, Indonesia, Taiwan </li></ul></ul><ul><ul><li>Philippines, Thailand, Malaysia, Singapore </li></ul></ul><ul><ul><li>Brunei, Australia, New Zealand, Macau </li></ul></ul><ul><ul><li>Pakistan, Bangladesh, Sri Lanka, Japan </li></ul></ul><ul><ul><li>Vietnam, Korea, Kazakhstan </li></ul></ul>
  10. 10. System connectivity branches branches Global Data network Software coe Software support Regional data centres Global servicing centres
  11. 11. Example of global IT projects <ul><li>HUB(universal banking system) </li></ul><ul><ul><li>Central core team, regional customisation, used in multiple countries </li></ul></ul><ul><li>Internet banking </li></ul><ul><ul><li>Multiple development teams, used in multiple countries </li></ul></ul><ul><li>Group project strategy </li></ul><ul><ul><li>Develop once, use in as many places as possible </li></ul></ul>
  12. 12. EXAMPLE 2 <ul><li>HUB PROJECT </li></ul>
  13. 13. HUB project <ul><li>H SBC U niversal B anking project ( HUB ) </li></ul><ul><li>Software that supports branch banking in various countries </li></ul><ul><li>Initial design is for small and medium size countries (eg. Thailand) </li></ul><ul><li>Functionally rich (deposits, loans, time deposits, payments, trade finance, securities, credit cards) </li></ul><ul><li>Now enhanced to handle large countries (eg. Canada, India) </li></ul>
  14. 14. Technology used by HUB <ul><li>IBM mid range computer – iSeries(formerly called AS400) </li></ul><ul><li>Software in-house developed </li></ul><ul><li>Use RPG (report program generator) language </li></ul><ul><li>Front end – intelligent terminal software developed in-house using Unisys technology </li></ul><ul><li>Development started in 1984 and took four years to complete </li></ul><ul><li>First global project for the bank </li></ul>
  15. 15. Challenges faced by the project team <ul><li>Technology is new and evolving(S/34 to S/36 to S/38 to AS400) </li></ul><ul><li>Technology not as robust as mainframe </li></ul><ul><li>Needs rich functionality to cater for all aspects of branch banking </li></ul><ul><li>First Group project – develop once and use many; implies building one software that cater for the needs of multiple countries </li></ul><ul><li>Difficult to gather requirements </li></ul>
  16. 16. Where is HUB today <ul><li>Probably one of the best branch banking software in the world (in-house or package) </li></ul><ul><li>Implemented in many countries (all of Asia, Canada, Europe). Large sites (HK, UK, USA) use selected modules from HUB </li></ul><ul><li>Vancouver development centre is HUB COE </li></ul><ul><li>Local support provided by regional team </li></ul><ul><li>A major rewrite project has started to modernise HUB </li></ul>
  17. 17. Experience gained <ul><li>Set up a Group HUB user coordination department to control scope and user liaison </li></ul><ul><ul><li>Staffed by bankers and not IT staff </li></ul></ul><ul><li>Have clearly defined roles </li></ul><ul><ul><li>Core software developed in Hong Kong </li></ul></ul><ul><ul><li>Sites allowed to make local changes </li></ul></ul><ul><ul><li>Have to retrofit periodically back to core </li></ul></ul>
  18. 18. Experience gained(2) <ul><li>PPCR procedure(program problem change request) </li></ul><ul><ul><li>Change control request vetted by HUB coordinators before passed to IT for evaluation </li></ul></ul><ul><li>Close partnership with IBM to improve the robustness of AS400(logical partitions, multiple processors, speed improvements) </li></ul><ul><li>Strong project manager crucial to success of project </li></ul>
  19. 19. EXAMPLE 2 <ul><li>INTERNET BANKING PROJECT </li></ul>
  20. 20. Internet banking project <ul><li>PIB(personal internet banking) </li></ul><ul><li>BIB(business internal banking) </li></ul><ul><li>Software history </li></ul><ul><ul><li>Base software purchased from IBM(from Integrion project) </li></ul></ul><ul><ul><li>basic functionality </li></ul></ul><ul><ul><ul><li>Mainframe based engine for message routing to underlining applications </li></ul></ul></ul><ul><ul><ul><li>Server(RS6000) software for message handling, encryption/decryption </li></ul></ul></ul>
  21. 21. Internet banking project(2) <ul><li>Components developed in-house </li></ul><ul><ul><li>All the customer facing screens – each country/bank group member is different </li></ul></ul><ul><ul><li>Chinese support </li></ul></ul><ul><ul><li>Hong Kong will not go live without Securities Trading </li></ul></ul><ul><ul><li>Later addition – All corporate banking functions, including imports and exports </li></ul></ul>
  22. 22. Internet banking connectivity Internet FIREWALL FIREWALL Mainframe TDM SAV CUA TD CARD LOAN SEC WEB SERVERS INTERNET BANKING SERVERS APPLICATIONS
  23. 23. Characteristics of project <ul><li>Core engine controlled by New York team </li></ul><ul><li>Each country has variations on </li></ul><ul><ul><li>Web page (language, local content) </li></ul></ul><ul><ul><li>Functionality (products, local interfaces) </li></ul></ul><ul><li>Regional team has to develop local functions </li></ul><ul><li>Parallel development & implementation required </li></ul><ul><li>Global and regional project management office </li></ul>
  24. 24. Hong Kong site – English and Chinese
  25. 25. Korean site – Korean and English
  26. 26. India – Unique NRI(non resident service)
  27. 27. Internet banking project today <ul><li>Rollout worldwide </li></ul><ul><li>Hong Kong has over 1 million registered customers using internet banking </li></ul><ul><li>Fast growing and popular channel </li></ul><ul><li>High customer satisfaction </li></ul><ul><li>The Hong Kong system has won many rewards from trade magazines </li></ul>
  28. 28. Experience gained <ul><li>Constant feedback required for Customer Experience </li></ul><ul><li>Non IT support structure(eg. Call centre) also crucial to success </li></ul><ul><li>Difficult to balance Ease of use vs. Risk </li></ul><ul><li>IT security is a constant threat but no security incidents caused by weak IT defense since launch </li></ul><ul><li>Regulators/media watch like a hawk </li></ul>
  29. 29. How to manage global projects effectively <ul><li>Stick to project management principles </li></ul><ul><li>Secure support from senior management </li></ul><ul><li>Have clear roles and responsibilities </li></ul><ul><li>Good project planning </li></ul><ul><li>Setup multi-site monitoring procedures </li></ul><ul><li>Avoid scope creep </li></ul><ul><li>Have common goals for all staff to overcome geographical and culture barriers </li></ul><ul><li>Communicate, communicate, communicate </li></ul>
  30. 30. Stick to project management principles <ul><li>The basics do not change </li></ul><ul><li>Variations for global projects are in: </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Geography </li></ul></ul><ul><ul><li>Multiple teams of IT and users </li></ul></ul><ul><ul><li>Politics and turf war </li></ul></ul><ul><ul><li>Complexity of managing change </li></ul></ul><ul><ul><li>How many balls can you keep in the air? </li></ul></ul>
  31. 31. Support from senior management <ul><li>Essential for: </li></ul><ul><ul><li>Funding – global projects are expensive. </li></ul></ul><ul><ul><li>IT strategy support – core engine plus regional customisation; mainframe hardware at regional data centres plus servers(AIX and unix) </li></ul></ul><ul><ul><li>User commitment – IT cannot do it alone and users pay for the project at the end </li></ul></ul>
  32. 32. Clear roles and responsibilities <ul><li>New York team – hsbc.com </li></ul><ul><ul><li>Custody of core software; interface with IBM </li></ul></ul><ul><li>Regional teams </li></ul><ul><ul><li>User department – content; presentation; user acceptance test </li></ul></ul><ul><ul><li>User coordinator department – control the rollout schedule and user liaison with all countries </li></ul></ul><ul><ul><li>IT department – all technical development, testing and implementation </li></ul></ul>
  33. 33. Clear roles and responsibilities(2) <ul><li>Business departments have to allocate resources </li></ul><ul><li>Work with graphic design companies on web page design and navigation </li></ul><ul><li>Work with IT on how to construct the web pages </li></ul><ul><li>Prototype test with selected real life customers </li></ul><ul><li>User acceptance test </li></ul>
  34. 34. Good project planning <ul><li>Plans have to be prepared at various levels </li></ul><ul><ul><li>Group; region; country </li></ul></ul><ul><li>Seek input from all stakeholders </li></ul><ul><li>Marketing department will also provide input as to market segmentation in rolling out the product </li></ul><ul><li>IT department has to input on hardware procurement, testing time slots, etc. </li></ul>
  35. 35. Setup multi-site monitoring procedures <ul><li>Steering Committee at group & regional level </li></ul><ul><ul><li>All stakeholders participate(IT and business, computer audit) </li></ul></ul><ul><ul><li>High level progress reporting, issues </li></ul></ul><ul><li>Project manager has to work at the detailed level by communicating with local and remote teams </li></ul><ul><li>Periodic progress reports </li></ul><ul><li>Action quickly; escalate if necessary </li></ul>
  36. 36. Avoid scope creep <ul><li>Absolutely essential especially for multi-site projects </li></ul><ul><li>Have a tight change control process on the scope </li></ul><ul><li>One small change may have significant impact to the core infrastructure and other sites </li></ul><ul><li>Project manager needs strong control on scope </li></ul><ul><li>Work with the sponsor and users </li></ul>
  37. 37. Have common goals <ul><li>Differences in culture, geographies and processes must be overcome </li></ul><ul><li>Solution: </li></ul><ul><ul><li>Built into award system </li></ul></ul><ul><ul><li>Communicate often through intranet, working group meetings </li></ul></ul><ul><ul><li>Form virtual teams </li></ul></ul><ul><ul><li>Have escalation process in case of impasse </li></ul></ul>
  38. 38. Communicate, communicate, communicate <ul><li>Share all information using intranet, newsletters, team meetings </li></ul><ul><li>Encourage synergy with other group members in other countries </li></ul><ul><li>Have escalation procedure in case of a communication block or tough issues </li></ul>
  39. 39. Summary <ul><li>The basic principles of project management do not change for global projects </li></ul><ul><li>Complexity on scale, countries, people and politics </li></ul><ul><li>The project manager plays a key role in the success of the project </li></ul>
  40. 40. Reference <ul><li>Hsbc.com website </li></ul><ul><li>All HSBC information courtesy of HSBC Group </li></ul>

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