Issues and Challenges in IT Enabled Business Transformation Programs - PowerPoint PPT Presentation

1 / 48
About This Presentation
Title:

Issues and Challenges in IT Enabled Business Transformation Programs

Description:

Issues and Challenges in IT Enabled Business Transformation Programs Origins of Business Transformation Pre 2000- Technology in Banking Business High Margins No ... – PowerPoint PPT presentation

Number of Views:132
Avg rating:3.0/5.0
Slides: 49
Provided by: iibfOrgI5
Category:

less

Transcript and Presenter's Notes

Title: Issues and Challenges in IT Enabled Business Transformation Programs


1
Issues and Challenges in IT Enabled Business
Transformation Programs
2
Origins of Business Transformation
3
Pre 2000- Technology in Banking
  • Business
  • High Margins
  • No Competition
  • Vanilla Products
  • Low Technology Levels
  • Very low levels of computer literacy
  • Low Levels of Computerisation
  • Resistance to Change
  • Replication of Manual Process
  • Regulator Driven
  • Computerisation only for Accounting Automation

All other Sectors took to IT in a big way while
Banking remained untouched by sweeping changes in
Business Environment
4
Pre-2000 Technology Scenario
5
Evolution of Automation and Its Business Impact
EDP Accounting / Back Office Focus Disabling
Env
  • Pre-1960s
  • Manual Brs, Sellers Mkt
  • 1960s
  • Manual, URE, Electromechanical LPM
  • 1970-80
  • Manual, LPM, ALPM
  • 1990
  • Manual, ALPM, TBM
  • 2000
  • Manual, ALPM, CBS
  • Power Shift from Sellers to Buyers
  • 2002- 2004
  • End of EDP Era, CBS, TBM, Manual
  • Self Service Channels
  • RTGS and Payment Systems
  • Post 2005
  • Foundations for Global Banking

Branch Automation Networking, ATM Fee Income,
Marketing Enabling Env
IT as Business Enabler Disruptive
Changes Consolidation
6
7 Layers of Technology Evolution in PSBs
  • Technology Hostile
  • Technology Averse
  • Technology Tolerant
  • Technology Friendly
  • Technology Enabled
  • Technology Savvy
  • Technology Driven

We are here
7
Drivers of Change
  • Deregulation
  • Globalisation
  • Increased competition
  • Demanding customer
  • Convergence Complexity Banking, Insurance,
    Broking, Commodities Trading
  • Complexity of Instruments / Products
  • Delivery Complexity - Multichannel
  • Compliance Complexity - Basel II, SOX, SEC
  • Economic Complexity WTO, MA, Ownership

Transformation During Disruptive Changes
8
New Challenges
  • Dwindling Employee / Customer Loyalty
  • Plastic Money
  • Electronic Payments
  • Net Banking
  • New Identity Management Issues
  • Security Issues
  • Credit Boom
  • Emergence of Rural Market
  • Growing SME / Retail Credit
  • Cut Throat Competition
  • Increased Risk appetite of the customer

9
Business Challenges - Competition
  • Customer Attrition
  • Talent Attrition
  • Business Attrition

10
IT Challenges Fragmented IT
  • Complexity
  • Machine Proliferation
  • Loss of Control
  • Architecture Management
  • Talent Management

11
Challenges- Case of Four Blind Men and the Bank
  • IT not understanding Business Requirements
  • Business not understanding IT requirements and
    specifying their requirements IT terms, Ownership
    Issues, IT blamed for Business Failures
  • Consultant not understanding ground realities
  • Customer As a consequence , he turns blind eye
    to business and business collapses

12
Business Failure
  • Lack of Technology
  • Lack of Knowledge to exploit Technology
  • Lack of Enabling Processes / Systems
  • Lack of Strategy

Book of Instructions or Book of Impediments
13
The New Wave
14
Why it is called Transformation
  • End to End Deployment of IT
  • It affects all aspects of Business
  • Strategy
  • Technology
  • Process
  • People
  • Brand
  • Premises
  • Business Enhancement
  • Business Consolidation
  • Time to Change is short

Change was always there , it is only the rate of
change that is making us study it as a science
15
Transformation Drivers
  • Business Strategy Architecture
  • Technology Strategy Architecture
  • Behavioral Strategy Architecture ( HR)

16
Change Transformation
17
Business Transformation Final State - Global
Bank
  • Corporate Centre Structure as per Global Best
    Practices
  • Customer Centric Organisation LOBs
  • Service Delivery
  • Technology
  • Market / Brand Positioning
  • Global Culture

18
Agenda for Transformation
  • Strategy Global / National / Niche
  • Organisation Structure
  • Enterprise Business Architecture
  • Enterprise IT Architecture
  • Transformation Program
  • Performance Measurement

What can be measured - gets done
19
Transformation Pre-requisites
  • Top Management Ownership
  • Sponsor
  • Project Mode
  • Business Driven
  • Communication with key stake holders internal and
    external Unions, Associations, Media, Analysts

20
Business Issues Take a Global View
  • Separate strategy from Business and IT
  • Focus on Building Agile and Adaptive Enterprise
  • View of an Integrated Connected Enterprise
  • Enabling BPR Change Mgt Environment

21
Reasons for Poor IT Absorption Avoid IT /
Business Disconnect
  • IT not participating in Business Strategy
    formulation
  • Business implementing IT without involving IT
  • IT by itself cannot provide value
  • Only business derives value from IT
  • IT is concerned only about performance of IT
    systems
  • Business Strategies , Goals , Policies must
    result in IT projects
  • IT Representation at Board Level

22
Business Issues Customer centricity
  • Customer, rather than account, focused business
  • New Lines of Business (Customer Segmentation)
  • Channel Management
  • Customer Relationship Management
  • Re-Brand
  • Marketing Focus

23
Business Transformation Technology
  • CBS
  • Internet Banking
  • Lending Automation
  • Cash Management
  • Global Treasury
  • GL
  • Risk Manager
  • ALM
  • HRIS
  • Multi-Channel Delivery
  • Networking
  • Security Infrastructure

24
Business Transformation Operations
  • Operational effectiveness and efficiency thru
    Technology
  • BPR
  • Shared Services
  • E-Strategy - Multi-Channel Delivery
  • Lending Process Automation
  • Performance Measurement
  • Telecommuting / Working

25
Technology Challenges
26
IT Issues
  • Customer Data - MCIF
  • Data Migration
  • Historical Data Storage / Retrieval
  • Record Management
  • Universal Teller
  • BCP at Branch / Bank Level
  • STP
  • Integrate HRIS
  • DWH / BI / CRM
  • Basel II
  • Testing and Acceptance
  • Security Policy
  • Project Management Tools

27
IT Issues
  • Cost of IT
  • Perishable nature of IT
  • Technology Refresh
  • Need to get ROI Faster

Business needs to Leverage IT investments
Quickly for Survival
28
Business Issues - Ownership of IT Projects
  • Business Owners
  • LOB Heads
  • Technology Owners
  • IT Head

IT Enabled Business Transformation
29
IT Governance
  • IT Business Alignment
  • Old, Transition, Final Models
  • Security Policy
  • BCP

30
Sourcing Models
  • Assets Owned and Managed by Bank
  • Assets owned but FM outsourced
  • Assets and FM both outsourced
  • Onshore / Offshore

Donot Outsource Strategy, Architecture, Design,
Security
31
IT Deployment Management
  • Data Center Rollout Mgt
  • Disaster Recovery Center
  • Business Continuity Plans
  • DRS Governance
  • DRS Drills
  • Transfer Recovery at DRC
  • Return of Control to DC

32
IT Management Challenges
  • Security Management
  • Record Management
  • Channel Management
  • Shared Services Management
  • Risk Management
  • Compliance Reporting

33
HR Challenges
34
IT impacting HR
  • Universal Teller
  • Extended Hours Banking
  • Sunday / Holiday Banking
  • Mobile Banking
  • Mobile ATM
  • Global Treasury
  • BCP

35
HR Issues
  • Skill / Talent Identification
  • Competency Mapping
  • Career Planning
  • Succession Planning
  • Performance Measurement
  • Rewarding Performance / Excellence

36
HR Issues
  • Constant transfers
  • Lack of specialisation
  • Moving to / from Rural to Urban Areas
  • Transfers when LOBs are formed
  • HR policy on transfers

37
HR Issues - Managing Digital Divide
  • Management / Employee Training
  • Including top management training on use of
    digital dash boards , DSS
  • Customer Behavior Monitoring thru Multiple
    delivery channels
  • Product Design
  • Customer Training
  • New Generation Customers can handle complex
    products
  • They can handle self service channels
  • Older Generation needs simple products and human
    touch

38
New Skills
39
New skills - Business
  • Strategy
  • Best Practices / BPR
  • Risk Management
  • Financial Engineering
  • Performance Management
  • Reporting
  • Treasury
  • HR
  • Marketing
  • Branding

40
New skills - Technology
  • Strategy
  • IT Architecture
  • Vendor Management
  • SLA Management
  • Security Management

41
New Skills
  • MCIF
  • CRM
  • HRIS
  • Datawarehousing
  • Business Intelligence

42
New Designations - CXOs
  • CEO Chief Executive Officer
  • COO Chief Operating Officer
  • CFO Chief Financial Officer
  • CTO Chief Technology Officer
  • CSO Chief Security Officer
  • CCO Chief Compliance Officer
  • CRO Chief Risk Officer
  • CMO Chief Marketing Officer

43
IT brings fundamental changes in the style of
doing business. Willingness and Ability of
business to adapt to these paradigm changes is
critical for any technology driven
transformation program
44
Success of an enterprise depends on building
internal skills and competencies on an enabling
(IT) agile infrastructure and govern it wisely
for business results
45
In aligning the organization, communicating the
strategy is not enough - effective communication
is backed up by enabling processes and structures
- that essentially translate strategy into
day-to-day activities. In short, effective
strategy has to be embedded in work.
46
Delivery is all about Leadership, Communication,
Culture and People
There must be someone in the organisation to put
it out of comfort zone on a continuous basis
47
Summary
  • Ensure Sponsorship
  • Identify Change Agents
  • Increase number of believers
  • Create an entrepreneurial environment
  • Encourage innovation
  • Forgive genuine failures
  • Nothing like an overall Feel Good Environment
    Positive Strokes

48
THANK YOU
Write a Comment
User Comments (0)
About PowerShow.com